>> good monday afternoon. amanda: there covering stories from san francisco, washington, tokyo this hour. u.s. stocks remaining conscious at a policy decisions from two of the world's major central banks this week. yahoo! was $5 billion sale put an end to the company's two decade run. we sit down with the global chairman a jpmorgan and a banker on the deal. amanda: nintendo shares are plummeting after the gaming company warned that this smash hit pokemon go whatever limited effect on the progress because it does not actually produce the game. ♪ >> where halfway to the u.s. trading day, let's head over to the markets where shery ahn has been tracking the movements. shery: it is down across the

board right now. we have not only corporate earnings, but also central-bank decisions including the fed as well as the doj later this week. we are seeing some pressure today. the s&p 500 down half a percent halting four weeks of gains. the dow is also down as much halting nine days of gains. the nasdaq is also down a quarter of a percent. take a look at the s&p index in context. we are seeing some losses today. the fact is the market peaked twice at 2175. 2159 arounda low of tuesday and thursday. today, with the losses we are seeing above that. the nasdaq, the blue chips on the nasdaq take a look. ground, they are losing we have to say that they are not performing peers.

we are talking about the s&p 500 and the dow. we are trying to pitch some one meters. that is related to the adoption of it was until they announced on friday after the markets closed. tesla is also up more than 2% as we hear more impending news of a merger with solar city. whole foods market also up. they upgraded the stock saying that the stock is the best. >> where are the obvious drags? shares, because oil is down so much. it is now at the lowest since april.

we are seeing oil companies dragging the index down. also, a share rundown of more than 2%. take a look at what oil is doing right now. is losing more than 3.5% of the last couple of days. as moved lower. there adding more rigs for a fourth consecutive week. >> good stuff, shery will be back later on. let's go now to the bloomberg first world news. up, elizabeth ward will deliver the keynote address at the democratic national convention which starts today in philadelphia. the messages it senator was a favorite of liberals and will speak in a line of it also includes michelle obama, and vermont senator bernie sanders. anders will deliver the closing address. controversy is overshadowing the start of the dnc.

national committee chair, debbie wasserman schultz of florida will resign at the end of the week following leaked e-mails. heckled at a and breakfast today with protesters shouting "shame." >> debbie wasserman schultz. [booing] >> those messages showed staffers favoring hillary clinton and tried to undermine the campaign of bernie sanders. are questioning a teenager who went on a shooting rampage last week. there is speculation they may have not of plans for the attack. the 18-year-old killed nine people before killing himself. he was described as a loner of sass with playing killer video games. vladimir putin will not attend opening of the rio olympics.

the country's entire track and field team has been barred because of a government-backed "program. but russian athletes in other sports may take part if they have clean records. scarlet: it is time now for the bloomberg markets report every monday we zero in on the m&a business with insight and analysis with big players behind the deal. today we're examining the deal of the day, verizon's purchase of yahoo!. ourlways, we're joined by editor and i were special guest with insight on this particular deal. he helped to make it happen. >> welcome. >> great to be here. >> are you surprised that came to this? they had different plans in the past.

in january, february the decided to sell the core business. i surprise this was the end result? >> you know, i need to go back to when they started. when that became something that i give the board a lot of credit for saying what else is on the table. this option became the most attractive to shareholders. >> was that the previous plan didn't work? >> it was an independent decision. this was a decision the board made on its own. this is being seen as a change of strategy over the recent history. people have expressed that it could be a failure of terms of how yahoo! ended up. can you comment or characterize what you think about that? >> i think was a great transaction for yahoo!. i think verizon to be a good asset. seven oras going back

eight months, this was a leaky deal whether it was us or cnbc. we were fighting from every development. didn't gilbert was bidding, then verizon, how did that impact not just this deal but any deal? >> just turn on a look at the computer. think it was harmful. you never really want leaks and a process. that was harmful. it had an effect on other bidders. they did much more on that, ultimately. i would say in general it was harmful. it also give a lot more uncertainty to the employees. a private learn equity firms were very much a part of the process. how did they exactly, with a that gotrtain demands

folded into the final sale? >> i can't comment on any specific names. i would say it was a very competitive process. ofthere's a great deal sticking around for the company and ultimate strategy. how does that fit in from your point of view and you're looking for a price and looking for strategic and financial fit? jeff smith and eric brand who were along with management the real unsung heroes. you've no idea on the outside looking in the number of calls every day we get that they were on. and set a lot of direction strategy here. also into price uncertainty. >> how is jeff smith? this must be an interesting time to be as inside as he was on the deal. >> i would say along with the

other two members, they drove and a lot of value. they did a tremendous job. >> one thing about this whole process, and pedroia yahoo! sale process is that the company lacked a clear identity for that no one knew had to pigeonhole it. they couldn't define with the company did or what it was after. what is verizon buying? >> it seems like they're going after, obviously the own aol. it will go after google and facebook any mobile ad space. whether this will be enough for , or if a look at twitter and a year or two that is what everyone will wonder. they would have to digest this and figure what to do. down the road, will this be enough to go after the mobile technology space? >> it is hard to talk about some of these details but we will keep asking you anyway. in terms of marissa mayer, the

thinking and early indications are that she may be out. taking over the strategic of the combined entity. how does that fit into the deal? i am sure she will work tirelessly to get this thing close. no doubt, she will land on her feet. >> how is verizon? the awesome and a good party to be copied to come in for a professional and very big. >> i think so. >> does this fit with them? think about with the most synergy is coming and they clearly had the most. your point about the end market a number three player in the digital advertising market is a good thing. it is a very attractive market. attract!'s web services a billion users. is there any way to generate this -- generalize this

demographic? >> we can talk about finance, or sports and lifestyle. older,ew a little bit but it is a good demographic. it is a letter reach. -- a lot of reach. don't want to talk about past history. i'm sure others don't want to either, but there was a deal on the table in 2008 $450 billion. it is hard not to think what does this valuation say but the company today? what is your take? i would say this is a great value today for the asset. if you add up all the sum of the parts it is about $40 million -- $40 billion to buy yahoo! today. if you do you think, were verizon, what do you think they would do from here? what will they do with yahoo!, and aol?

>> there is a company mentoring fit in the assets. i assume there is some operational synergy. long-term, they will continue adding scale may be competing with facebook and google with the digital advertising space. work we shouldis mention that was a termination fee of $145 million if the deal does fall apart. that may be applied in certain circumstances. walk us through what that could be? >> i can't go there. is a friendly transaction was of the things of that list would be regulatory issues, presumably? >> normal stuff, sure. yahoo! shareholders being the most important. >> everyone stick around, we've more deal reports coming up. ♪

amanda: you are watching bloomberg markets. scarlet: we are back with jeff mccracken with a special guest. the global chairman of mergers and acquisitions at j.p. morgan who has worked on the biggest deals intact that includes dell and the silver lake acquisition of emc. and intel's acquisition of all tara, where all the big tech m&a deals this year? know, the big deals are what drove 2015. the $10 billion plus deals. we are down almost half this year. not just in tech but in all the species -- spaces.

why have we seen that? >> it is a multi-industry phenomenon. this is probably the most challenging military process you saw a couple of deals last week it denied. i think regulatory is a big part of it. think put ayear i downer on activity. >> we talked about how this is happening globally. decent regulatory concern around the world, not just the u.s.? >> no question, china's process can be very challenging. >> why is that? >> governments are just more proactive than they were five or 10 years ago. it is a good or bad thing but as a more active regulatory environment. >> how much of this is truly jeff and by valuation? we are seeing some of that trap for smaller companies. >> valuations are high, but at

the same time financial markets are at an all-time low. dealsies and strategic will be there. there are offsets to just value. when you look at the gdp growth environment, m&a will be important. >> what are you seeing within tech? the focus is last year, software versus semi conductors. what is the change? >> last year was a lot of additional tech -- traditional tech. this year we're seeing more on the software side, cloud, things like that. semi's have more room to go here. have a look at 2016, semi's are be the one of the areas with the most activity. >> what you expect to see in the media space?

yahoo! in some ways is a tech company and a media company. it works mulligan media company. at the media will be active. evaluations are down, look at what media company trades versus a food company there is a big difference. i think media would be active. certainly postelection. trends, are looking at you're talking about vertical integration and maximizing profit margin. that will continue. >> no question. >> about the media, you have some potential new interests. on the west coast, amazon, google, those could be buyers. you have some interesting possibilities in that space. >> how are the elections impacting m&a? donald trump is a candidate unlike any we've ever seen as unpredictable as in a candidate. when you talk to the board in ceos, to they talk a lot about

the election? >> they are starting to. not much about donald trump, but we want to see a very stable, certain, protectable environment. a lot of volatility created by an election does not help the environment. anything that adds volatility heading into the fall will be challenging to the overall level of activity. >> whoever becomes president could give ufos as an ambassador. you just described the hillary clinton president -- could give you a role as an ambassador. you just described the hillary clinton presidency, didn't you? >> even with her shift towards a more progressive platform. >> it is easier to predict what her administration might look like. you want really know until who was the head of the doj, there are some important jobs that determine policy. we are stillpact,

in july. in october, or september, is that when it really picks up and when m&a will slow down? >> probably september, october. >> you can tell me on my television whether i'm completely wrong, is that you are watching this for more than usual. this is an election that has -- >> i think there are more comfortable outcomes in this one than in the past. take who is going to win? >> not going to, not going there. >> have any of your clients talked about the presidential race as a factor at all? do they think ahead? >> i think people look out and you can see volatility and uncertainty in the fall. it is on people's minds. >> i feel at the window is closing. >> what about brexit? is that something you and your clients are really worried about?

we are still trying to figure out short-term and long-term what it means. it is hard to really know. long-term a think it is more challenging. anecdotally, the level of defense dialogue with had with our u.k. clients has got a got meaningful sense brexit. >> a big opportunity for you. >> thank you very much first of thanks to our editor. still ahead, we are staying on election volatility. hillary clinton critical of the rnc assert convention gets underway. ♪

>> this is bloomberg markets.

as we know, the dnc kicks off today after the rnc wrapped up. present to nominate hillary clinton spoke on 60 minutes last night. >> ifo very sad. -- i felt very sad. i don't know what their convention was about other than criticizing me. unifying be the only theme that they had. there was no positive agenda. it was a very dark, divisive campaign. the people who were speaking were painting a picture of our country that i did not recognize. on whatusly, reflecting was happening as their own convention gets underway. unity than people had hoped. >> absolutely, they're dealing with their own fallout with the dnclations and leaks at the chairwoman was trying to push

away from bernie sanders and putting all the chips and hillary clinton side. money race isal fascinating, hillary clinton has raised almost three times as much as donald trump year to date. >> here are the top employers and each of their donors. i think that is revealing both in terms of whom they work and also the dollar amounts. million of clinton donors, there was morgan stanley in the very top four. if you look at the trump donors, self-employed is at the top of the list. lock automotive group, -- is ais suggests that there grassroots level of financial andort for donald trump they can removal -- mean more voter turnout. the campaign to be rich in donors but maybe not so rich in

the level of support that will actually show up in the polls. >> we will talk with one of her top and donors in the next hour. he played a big role in the 2004 presidential election. nextill join us in the hour, the next gen climate president. you'll join us live. ♪

hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business.

you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. amanda: scarlet: i'm amanda lang. and i'm scarlet fu.

>> thanks very much. first, we look to florida. the victim positively attack -- the victim's in the attack have -- two of them have died. fromands of e-mails leaked the democratic national committee. trump joe -- russia leaked the e-mails that should never have been written, stupid because of vladimir putin likes me." an attorney for dennis hastert wants a breach of contract lawsuit against the house speaker. brought by a victim of sexual serving at or is sentence for violating banking laws. he was trying to pay $3.5 million to silence victim, who says that faster still owes him

1.8 million. the number of children killed or hurt in the afghanistan conflict surged. a human report finds that 400 children died and 1200 were wounded, an 18% increase compared to the same time the year before. the u.s. is giving $127 million and eight two southern african countries where the worst drought in decades is affecting millions. growing health crisis. one third of the world's hiv-infected population lives in southern africa and the u.s. says that people cannot take treatments on an empty stomach. day,l news, 24 hours per from 120 countries. this is bloomberg. back to you guys. the mindsd rallies on of most investors, many asking how long it will last. let's get some insight now from the western asset management folio manager, where he runs a

$15 billion core plus bond fund. he was the runner up last year and joins us from pasadena, california. so good to speak with you. when you look at the bond rally, the 10 year yield has come back 1.6%. certainly a long way for recovery in terms of yield from earlier this month. is that it? or are we taking a pause? tough to say, but it is a big conundrum right now with risk assets, high-yield, stock markets at all time or your highs. coupled with rates at cycle lows. what is telling us the right story? it's probably somewhere in the middle. the risk markets might be bondhooting, but the market might be overshooting as well. scarlet: one of the stories we are waiting to hear is the feds

doria and whether they will change their rhetoric a little bit. what is your expectation for wednesday? carl: i'm not being heroic in saying that the fed will not change policy on wednesday. that's baked into the cake at this point. the more important question, the rest of the year, september, our view is that they have made a dovish shift and in march they made a shift to be dovish. but the question that you should ask is -- how can you make money with that view? thanutures market has less a 50% chance of any fed hike this year. ironically, although we think the fed is on hold more likely than not this year, you can make more money heading against it. good point. inside of the bloomberg, we can back up what carl is saying. say, julyf you go to,

13, a week and a half ago, the 50% of a rate increase over did not exist at all. you could argue that the market has gotten more hawkish. is that increased hawkishness justified? carl: for sure. the last set of academic -- economic data is tracking to the upside. the last limit data was extremely strong. jolted strong. i think the market is justified. >> to your point, you've got to invest in money, without knowing which way or when, so what are you favoring at the moment? carl: easy money has been made from risk assets. there are still some great subsectors in the u.s. high-yield market, u.s. investment grade financials for example, but i think that maybe

it would be imprudent to begin to take a little bit of profit in these areas. >> have we seen the worst from ?he post brexit fears there was this rush to safe haven that act off of it. is that time over, now? early tohink it's too tell. this is a multiyear process. lots of negotiation. really uncharted territory. the knee-jerk reaction from the market was probably too negative, but on the other hand the trade is almost euphoric today. i think the jury is out on long-term implications and it wouldn't be imprudent or crazy to sell some of these risk assets that have rebounded so much. cash,er than going to what is your next move, if you are selling things that have done well for you? are you starting to look globally at other attractive assets? emerging markets were the

stepchild of 2015. if your view is that china is not a black hole, a lot of the emerging markets are tremendous organs. select countries around the world, we really like to invest in mexico, indonesia, india, for example. fed does not the operate in a vacuum. we have seen that time and again with its statements. how will the statement this week and it's telegraphing informed what the bank of japan eventually does on friday? what do you think? carl: i'm sorry, we are in a very situation here. dental markets are going in the same direction or at most 90 degrees opposite. we are in a situation for the fed is moving 180 degrees. that is a bit unprecedented. all centralhat banks are taking into account what the other one is doing. >> talking about the short end, we have seen some relatively

weak options. do you expect that to continue as we wonder if the fed is going to move? carl: we also have something else going on, money market on coming this year, causing a lot of dislocations on the front end of the curve. whether it's dislocation or treasury bills. those funding pressures have clearly picked up. again, it's not clear what exactly will happen in october, but that's another factor. >> we have seen libor moving higher since the financial crisis. of course, in the longer term the charges don't look as comparable. still. everything's relative. >> on to ask you, how much cash are you in at the moment? lot. not a you want to keep a little bit of dry gunpowder, but on a historic basis we are on the lower end. >> all right, our thanks to carl eichstaedt, joining us from

pasadena, california. >> coming, gamers are still caps on pokemon go, but investors have turned their backs on nintendo. ♪

you are watching bloomberg. mark: this is your global business report. verizon is the winning bidder for yahoo!, with 4.8 billion dollars against a big share of the nearly $200 billion digital advertising market.

vonnie: one company looking for a new ceo after the previous was ousted. mark: dodging fans from the picks, we will look at why sports agencies are dealing with doping scandals differently. yahoo!'seah -- vonnie: to decade run as an end of pendant -- as an independent company is over. it started as a stamford start up and became a dominant player in the early years of the internet age, but they failed to keep up with competitors google and facebook. still, verizon is mining services that draw one billion monthly users. their executive vice president and aol ceo say that they intend to use it to capitalize on the digital advertising business. probably the most important time in global

advertising. a 600 league and dollar industry, a fraction of which is digitized. eventually advertising will be as easy as e-commerce. the same way that you buy things online, we will be building with yahoo! to really attack that $600 billion industry. vonnie: meanwhile, yahoo! will change its name. they retain their stakes in alibaba. mark: another business transaction to report, amc has resumed its movie theater shopping's the by purchasing carmike cinemas. the price tag is $1.2 billion in cash and stock. amc had to sweeten the offer after shareholders rejected the initial bid. it comes after the purchase of the european theater operator ocean.

erickson is looking for a new chief executive. invest word is leaving after six point five years. it's been a turbulent time for the company. they said they would speed up cost cuts after reporting disappointing results. he is being questioned about probes into alleged corruption in europe and in asia. international has a new owner again. lvmh has agreed to sell the fashion label after failing to turn it around. the buyer is the g3 panel group. as stepped down last year chief designer of the label that she founded in 1984. vonnie: time now for the bloomberg quick take, where we go into background on issues of interest. for some of the best athletes in the world, doping has turned into a long-running cat and mouse game.

being of abusers are called out who thought they had gotten away with it. the world anti-doping agency called for the entire russian team to be banned from the 2016 olympics after the report highlighted state elect did -- state-mandated doping. they decided not to go ahead with a full band. -- ban. athletes have been exposed for doping years after the beijing and london olympics. the international olympic committee began prohibiting drug taking in the late 1960's, but thanks to advances in pharmaceuticals, doping has thrived anyways. cycling, baseball, and track and field have seen decades of scandals and high-profile tumbles from grace. including alex rodriguez, lance armstrong, and then johnson and marion jones -- ben johnson and marion jones.

they say they need more power and financial support to keep notching up small victories. according to the long serving head of the world anti-doping agencies, they said that there is categorically and unpersuasive denial. too many people involved don't want the system to work. you can read more about our doping quick take on the bloomberg. that is your business report. head to bloomberg.com for more stories. ♪

amanda: this is "bloomberg markets." scarlet: the major indexes are retreating from record highs. crude oil prices sinking, dragging things lower with a coil names getting ready to report earnings this week terry let's head over to abigail doolittle, live at the nasdaq, where she is looking at some tech names.

big tech storys is yahoo!, selling its operating 4.8 ilyato verizon for and dollars. on this the stock is down slightly, verizon down even less. somewhat anti-climatic to the month-long sales process with speculation about who would win. now we know it is verizon. brian and pivotal research saying that this is a good outcome for shareholders, especially those who got in back in 1996 when the company went public. shares of yahoo! are up 7000% since that time. as compared to the nasdaq, up 364 percent. i say just, but a huge outperformance by yahoo! and an interesting dynamic considering that paul sweeney says the fundamentals for yahoo! have been week for a decade. he says that they have only had strong business cycles. first around the tech boom and

more recently into the ipo of alibaba. that -- this is interesting -- yahoo! is down 10%, the nasdaq is up 11%, a little bit of a correction around that dynamic. >> certainly. you can see that apple sales are down 1% right now. we know that the company's reporting earnings tomorrow. what can you tell us? abigail: big selling pressure has the news hit the tape the gc arbors has downgraded -- bgc downgraded apple. he says the company has under tim cook and he sees risks to the upgrade cycle that he believes the iphone seven may show more weakness as opposed to .he last upgrade cycle of course, as you mentioned, the

company is reporting tomorrow after the close. looking for big declines year-over-year in earnings and revenues. on the one hand you might say that the bar is set low. on the other hand you have somewhat bearish supports coming from skyward, saying that it could be worse. what seems very likely is big volatility. taking a look at a one-year chart there is a huge range going up and down reflecting the different views on the iphone, positive and negative. right now we are looking at a more negative trend. since the last or they have --solidated in a tight range since the last report they have consolidated in a tight range. the trading action today suggest it could be down, perhaps towards the bgc partner blueprint at $85 per share. >> thank you so much. >> time for the bloomberg business flash and the biggest

stories in the news right now. staying with apple, they have reportedly tapped these and executive to shepherd its automobile project. bob men's field has been said to be taking over their car project, code-named project titan. he has led the development on things like the ipad tablet and mac took care. >> everglades financial exploring a sale after receiving interest from a potential suitor two months ago. the bank has been working with ubs to solicit offers from possible buyers. >> if banks want to move employees out of the u.k. after the praxis vote, -- brexit vote, it may not come cheaply. that includes the cost to relocate, hiring and firing, and setting up new office space.

that is your business flash update. nintendo's shares falling by the most since 1990 today. hopes that pokemon go are disappearing as investors realize the company's limited stake in the game. with us now with more, jeremy k ahn, good to have you here. how much of a shock should this have been to investors? should nintendo have spoken up sooner? said that itndo was never a secret that they had only a 13% interest in pokemon go. but they obviously got concerned about the weight that their stock had gone up since the release of the game. i think they wanted to deflate the hype, so they put out a statement on friday sort of reiterating the fact that they only have a 13% economic interest in pokemon go through theyus other companies hold investments in.

>> what's interesting is that they will be reporting earnings soon as well. why did they not wait until their formal report to clarify everything? why do this on a friday? >> it's a bit of a mystery. i think they were very concerned about the run-up in their stock, there may have been concerns about potential action from shareholders in the u.s. lawsuits, perhaps. but it's a bit of a mystery. analysts say they don't really know why the company waited. -- didn't wait. >> in fact, they haven't revised their outlook in any way. they are still on track for the increase in profit, not exactly a company on the brink. at all.not some people are saying that they are being misleading with this. while they say there is no immediate need to revise their earnings estimates upwards, a lot of people saying that long-term if the game can

maintain its momentum, it's going to be a huge hit. they have already signed all of these licensing deals that will redound to nintendo's and if it. >> licensing deals, isn't that something that nintendo is a bit wary of? licenseen't run much to super mario brothers, for instance. >> this is a joint venture and they have done licensing deals with a number of companies to put these poke stops, where people can go to capture the creatures, at various retail locations. >> of course, this is the opening of a new sphere for nintendo. if you were looking optimistically you would not say that this is like farmville. not just a hyped game. the beginning of ar, it's the are, an important point in gaming, is this important

regardless of what's happening to the stock right now? jeremy: absolutely. people will look back at it as a breakthrough in augmented reality. nintendo is also playing around with things in the virtual as well.pace people are expecting more in the coming months. >> begin of, amanda mentioned 37%.profit would be up the thing is, pokemon go was released after this earnings iod. 36% seems to indicate that everything is ok. business isink the doing fairly well and people are expecting them to come out with a new game console, which they said will be released in 2017. people have high hopes for that. i think that at, con they just announced that they are doing a super sonic the hedgehog game.

people have high hopes for that game. we have got to leave it there, jeremy. great to have you with us. coming up in the next hour, billionaire environmentalists and big-time hillary clinton willter, tom steyer be joining us with what he sees for the democratic party. ♪

>> it's 1 p.m. in new york, 1:00 a.m. in hong kong. >> welcome to "bloomberg markets." ♪

>> from bloomberg world headquarters in new york, good monday afternoon. >> covering stories from san francisco, toronto, philadelphia, and beyond. stocks fall from record highs as oil slides and the u.s. dollar gains, and head of this week's fed meeting. for survivalight comes to an end. verizon purchase the court -- purchases the core assets. marty waldman.om >> as the dnc kicks off, we will billionairee environmentalists, tom steyer, one of the biggest donors. what does he want to hear regarding energy policy? >> first, shery ahn has been in u.s. the moves down

stocks, really tracking the drop in oil prices. shery: yes, energy shares declining all the way to that feeling downward pressure. the dow is also down as much, reversing nine days of gains. the nasdaq is down one quarter of 1%. remember, investors were cautioned ahead of policy decisions and then we have about 200 companies reporting earnings this weekend. although it seems like there is optimism over the results, we are expecting a fifth straight quarter of earnings declines for s&p 500 firms. we are seeing the s&p 500, if you can bring up the intraday chart, declining steadily throughout the session. now down half of 1%. 21.64. halting four weeks of gains, the

longest run since march. >> where are the big kleins being seen? shery: as i mentioned, energy shares were some of them, but apple is a huge loser today. and this of course ahead of earnings results tomorrow after the close. they were cut to underweight, cut to sell by bgc partners. $110 to $85. they are saying that apple has peaked under the leadership of tim cook. before they were hurt by stealing market share from chinese competitors, so we could see more of the same according to analysts. also, express scripts and united health are all down. saying now that they could be hit when big corporate clients try to crack down on price

collusion. of course we have the newly formed health transformation aliance that encompasses dozen companies, including verizon and american express. they could try -- they could try to hold on the cost of health benefits, saying that they could see prescription plans that face resistance area as i mentioned earlier, crude oil is the big drag today. energy shares are down. oil at the lowest since april. we are seeing these energy shares just leading the kleins -- declines in u.s. markets. is saying that grain prices are expected to remain weak, putting pressure on farmers and their profits. caterpillar is down 1% there.

we are seeing that they reported retail machine sales down 12% in three months, ending in june, so a lot of pressure for u.s. stocks. >> thank you so much. we have got a live shot of hillary clinton, the presumptive democratic nominee speaking live from charlotte, north carolina, at a campaign event. ifwant to alert anyone that anybody wants to check out the proceedings, you can check it out at my go on bloomberg. the fbi is investigating those leak that led to the resignation of debbie wasserman schultz. showing that the dnc favored hillary clinton and tried to undermine bernie sanders.

meantime, elizabeth warren will deliver the keynote address at the democratic national convention, which starts today. a favorite of liberals, she will speak tonight in a lineup that includes michelle obama, cory booker, and bernie sanders. mr. sanders challenged her during the primaries and will deliver tonight closing address. a new poll indicates that donald trump. of postconvention bounce, with him leaving hillary clinton 44% to 39%. libertarian gary johnson is at 39%. he saw a big gain among independents. powered by 2600 journalists in 120 countries, this is bloomberg. amanda? amanda: staying on politics, the democratic convention begins today. just that they started with

internal drama, the democrats have their own. so, bernie sanders is scheduled to speak tonight at the convention. the big question seems to be -- how will he respond to this controversy? stir it up? to stir itxpect them up further. he has endorsed, gotten the concessions he wanted on a policy platform out of a number of leftward shift. he and elizabeth warren will try to smooth things over. there are many who are very dissatisfied and angry with debbie wasserman schultz. it's not clear that they can be criticized -- why did. a lot of democrats want her to resign right away, to avoid

being a distraction and to help the party show unity. >> right, and you also see that with the protest from the sanders supporters, not letting this issue die? projecto get them to unity. >> it will be a difficult and we spent many months painting clinton as a corporate sellout. it is a tall mountain for him to climb to get his supporters on board, but we are seeing it happen. there will be a faction that is still disgruntled. we will be hearing a lot from them, especially on the streets this week. but we should expect bernie sanders to try to smooth things

over and unify the party. interest toown eventually help hillary clinton at the moment. >> to that point, what's relevant for all of them is what happens in november. how damaging is it to clinton? there are grassroots folks in the party that tell she was the establishment choice and wanted something new and different but did not go to trump. what do you have to say to those who think that this is what they thought it would be or what they now it's aright nuisance, headache. there will be anxiousness from democrats looking at the polls and saying -- how is this happening? postconvention bounces happen. we will see what the race is looking like in several. ifalso remains to be seen the sanders reporters will

ultimately sit on the sidelines. there is clear movement and there is expected to be more of and november. now but it looks like she is going to get a decent amount. >> still ahead, tom steyer will be with us from philadelphia. how much is he willing to spend on the youth vote? ♪

♪

>> time for look of the biggest business stories in the news right now. ever bank financial courting a sale. that is according to people familiar with the matter. the bank has been working with ubs. firm will beequity acquiring red box and coin star kiosks, a deal valued at 1.6 in

dollars. they will get cash for each share, a premium of 51% over the march 14 closing price. is betting big on mexico. notes maturing in 2025 in the top fund holdings in the gym is bond fund according to the website. three months earlier he had unloaded all of his mexican government debt. upt is your business flash eight. -- update. >> coming up next, tom steyer joins us from philadelphia. this is bloomberg. ♪

♪ >> this is "bloomberg markets." amanda: president obama -- jinx -- [laughter] one the youth folk in his campaign and the democrats want to keep that streak alive. ishelp that goal, tom steyer spending billions to mobilize the youth vote. great to see you, thanks for joining us today. tom: thanks for having me. >> let's go brought here. what needs to happen for hillary clinton to get a pump in the polls, like donald trump after the rnc? the point of a convention is to explain to the

american people who we are, who the democrats are, what our values are, and the kind of future we envision. i think the you get four days on prime time tv to lay out with the most eloquent democrats that vision of the future and our basic values. so, here we go. >> one of those democrats is bernie sanders, taking the podium this evening. any concern on your part about a move to the left for this party? a more socialist move? >> i think that senator sanders did a great job this year of raising issues and problems in the united states. i think you did a huge service to the democratic already and to the american people. subsequentlyhe has endorsed secretary clinton and is pushing hard to have a united democratic front in november that will defeat mr. trump and

the republicans. he is part of united effort to stand up for democratic values and the american people. >> you have been active for decades in the democratic already, starting with your work for walter mondale. you were an early supporter of hillary clinton as well. does the democratic party reflects the u.s. electorate better now than when you first got involved? i think that they have done a very good job of trying to get to the actual broad-based american people. a big part of that, and i give senator sanders a lot of credit for this, raising the issue about inequality. about the fact that even though the country as a whole has gone gains from that, the benefits from that have not then distributed fairly or equitably.

that is something that we're looking at, 25 years where working people in america have not really had an increase in their wages. i think the democratic party is trying to reach out broadly to , listen to them, understand their concerns and address them. >> by contrast, what has been the biggest missed opportunity of the party? i think that, as democrats naturally very enthusiastic and passionate about the needs of americans. i look at us as a family, where people really work hard to understand that and push for it. this point the point of a convention is to come ofether behind the ideals the democratic party and push for it. so that's what were doing. i don't look at this as something be dismissed, we are at the stage where we've come together and have pushed for it

through november 8. >> you are personally passionate and have but a great deal of capital behind the environmental movement. how do you hope to see that play out? what do you hope to have a clinton presidency do? true that i'm someone who's very worried about climate change and environmental justice. look at the platform of 2016 and what we have agreed on, it is a quantum leap forward from four years ago. i think we have the most progressive environmental platform in the history of american politics. i think that what is most important, when we look past the are going toow we address energy, clean energy, the environment, renewing the american economy through good distributed jobs and energy, it

is important that we prioritize it. what's really happening is if you look at young people, millennials, this is their issue. they need to know that we are going to address the key issues andmerica proactively successfully. it isn't a question of any one single silver bullet. it's an attitude where we basically put it into every discussion we have so that when we are talking about jobs, we are also talking about clean energy and fighting climate change. the idea that all parts of this fit together.enda >> the kind of rhetoric that many countries are now employing. a coaltough sell, to miner, that there is a job waiting for them when the coal mine gets shut down. where do you see that going? will those commitments be validated? anwe think that that is

important and valid question. when we talk about accelerating the move to clean energy, which 94% of democrats support, understand that that will create millions of net new jobs, but there will be people like coal miners who haven't done anything wrong, or working hard and took a job in an industry on the down slide. it's important that as a people, party, and government, we recognize that and support them. if you look at what secretary clinton has talked about, i just transition, it's about supporting the people being replaced in the industries through whatever means possible in the government. whether it's through retraining, pushing new industries, making sure that they are not the scapegoats. we have an inevitable move to clean energy that will create jobs, but we need to take care of the people in the industries that are in a decline.

>> campaign finance is one of the big concerns in the american political system and the degree to which these candidates are in this way individuals and super pacs. sir, your belief, your ardent, passionate view of the environment has been called pat -- policy plagiarism when the clinton policies are reviewed. in other words, according to the american energy alliance, your views on the energy. is that important -- appropriate? can you purchase policy, even if it's the right policy? >> you absolutely cannot. we believe that citizens united was a terrible decision and that it should be overturned. that there is too much emphasis on money and politics. at the same time, we believe deeply in the importance and success and value of the american democratic system, even though we recognize it is not

perfect. we must work within the system as it is. looking at money in politics, this is a david and goliath situation. the other side has a lot more money. it's money that not transparent, self interested, and much more sizable. we are working within the system that exists. what we have tried to do is we are working based on our values. old-fashioned, held american values. we don't profit from it. we try to be as transparent as possible. but really this is a value question, trying to give a voice to empower americans to have their voice and to vote. in 2016,eally our push on the issue,ica registering them and encouraging them to vote. we believe that if americans are educated, it tightened did, and

informed, we would get the best possible outcome. >> i like what you said about translucencymost within the system. what is the tally so far in donations? a few things.: we are really working on a millennial, direct voter to voter contact with millennials. under 35 with person-to-person contact, providing information, making them as knowledgeable as possible, encouraging them to vote. because in effect people in your position feel a lot more comfortable if they can parameterize things on a dollar basis. we are working with a number of to go door-to-door

to make those same old-fashioned contacts. to do that you have to spend money. plays off of it really plays off of is a conversation between the people in the community for years with credibility and contacts who can talk to voters and they know who they are and why they can trust them. the other thing we are trying to do is to do a get out the registration engagement in our home state of california. toeach case, you guys want talk about money, but we really want to talk about the conversation. >> we've got to leave it there, tom. we are going to lose you, but we were so happy to have you. ♪

. .

>> you are looking at bernie

sanders began during the democratic national convention. he remarked in an resignation of debbie wasserman schultz, saying will help then party to better serve people. they have tosays build on their successes. inocencio is in the newsroom. ramy: the party's national committee chair, debbie wasserman schultz, will resign at the end of the week over leaked e-mails. breakfastckled at a of florida delegates earlier today with protesters shouting shame. >> we can continue to build our economy. and we must make sure to make sure our economy is works for everyone. ramy: committee staffers favored

hillary clinton and try to undermine the campaign of arrival, senator bernie -- her rival, senator bernie sanders. if the presidential election were held today, donald trump have 50 present -- a 57% chance of winning, according to 538.com. 45.4% ofump would win the popular vote. the epa says jet engine exhaust is adding to climate change and endangering human health and needs to be regulated. it will impose- limits on aircraft emissions starting in 2020. aviation accounts for about 5% of global greenhouse emissions. the number of children killed were hurt in afghanistan's conflict a surge in the first six months of this year. a new yuan report finds that nearly 400 children died and more than 1200 others were wounded. that is an 18% increase, compared with the year before.

the olympic village in rio de has flunked a stress test. australia will not let its athletes stay there. officials say they found blocked toilets, leaking pipes, and exposed wiring. the limbic officials say repairs will be completed later this week. repairsic officials say will be considered later this week's. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. amanda: another top story we've buy following, verizon will yahoo! for $440 billion in cash. the president of product innovation and tim armstrong, aol cochair and css to bloomberg later today. >> the accommodation of aol, verizon, and yahoo! is a substantial partnership and a landscape where people are constantly focusing on facebook and google. is, if you look at

the hundreds of media companies in the world and hundreds of internet companies in the world, the number three with an opportunity to gain market share is what the deal is about. for the verizon site of the house, it's a very smart deal. the top five internet companies in the world, their evaluations are in the hundreds of billions of dollars. verizon in 12 months has gone into the space port investment of around $10 billion. when you look up and say we are number three at a very reasonable investment size overall compared with the upside valuation is, and you have a very hard-working team of people yahoo!, aol, and verizon that are going to work well together, this is a very strategic deal and a very important deal for the future. the market share today is only going to grow, based on her opportunities to scale. >> in a long way to grow to catch up with the big guys. do need to buy more companies? in order to get the scale, order more acquisitions in the future? >> we will never say it is the

end, but we think this is a really good start for us. as i said, we have been assembling in making investments in content. it's been the millennial content that is growing that record paces. we will continue to do that and workll also continue to with our partners. without a number of people reach out to tim and i this morning, who all are excited about the deal. through partnership investment, we will continue to scale this business. i think verizon hasn't been shot i had scaling businesses. i think you will see us do it again. when we do something, we plan to compete. we plan to be successful. >> talk to me about the process. you identified other acquisition, who is driving that i verizon? do you have a blank check? >> i don't have a blank check, but i would tell you it's a team effort. we have several things that we always continue to look at, and we have a team that helps support that.

tim and i will continue to talk about how we scale this business, he plays a huge role. active,continue to be but it's got to be the right things at the right time. to her threet years. let's assume this is a really successful deal. what made it successful? the advertising side and the content side, or because you are selling more wireless? i know you are going to say both, but what drove the steel? -- drove this deal? >> i will step back and let tim comments, but one of the charters i have is not only to build products and services for the three core businesses, that the board has asked that we stand up businesses that can generate multiple billion dollars of revenue in the future. the goal for this is to create an incremental opportunity. we want core businesses to grow, but this is about standing up a business that will generate that kind of revenue in the future.

we hope those grow, we believe they will. this is a new stream of business for verizon. say that culture you to strategy for breakfast. culture is the number one thing we want to get done with the yahoo! team and with marissa and her team. one of the things we're taking a lot of time with, with verizon is integrating the cultures together. today we are much different company. we did the millennial deal and the microsoft deal, now we are announcing the yahoo! deal. we have many cultures coming together, it's really important that the yahoo! team who bleeds purple, they love yahoo!, it feels like our commitment to the yahoo! brand in the future is an important aspect of this. forward three years, i think you have to see revenue growth, profit growth, but more importantly, culture growth. from our standpoint, the people coming together and working properly together and excited for the future is the most important aspect of the deal.

>> considering there is so much pressure from yahoo! shareholders, and she was not able to turn the company around, had to resort to a sale, makes a case for want to keep her in any kind of role side of transitory? >> this process has been completed different than what we did with tim and the aol team. it's important we spent time with her and the leadership team. she will be key to successful integration. i'm going to leave it at that for now. as i mentioned, we will come back when the time is right, but it's premature to talk about who will be and what roles. armstrongat was tim and marty walden, verizon's executive vice president and president of activation. scarlet: the rise and yahoo! deal ends the turnaround efforts of marissa mayer. she spoke with emily chang earlier today. overall, one of the big challenges we have had is we have been reinventing our products.

we try to make yahoo! mail perfect for the phone, we are proud of where yahoo! is today. they made it through for news, weather, sports, finance. we have about a cornerstone eightations -- cornerstone applications that they use every day, and we need more distribution. for us, verizon has tremendous mobile distribution. we are very excited about it. overall, i think it represents a huge amount of scale and opportunity for verizon. >> you said you plan to stay. what world are you envision for yourself? future,he immediate it's expected to close in q1. two priorities. seeing this transaction through to close, and watching for the value of our asian assets and the equity stakes we have. moving forward, we will ultimately figure it out. unlikeblem is different,

round one acquisition, reason a long time doing the actual acquisitions process, design integration plans, we have been an auction process. we are to sit down with marty and start to design those integration plans. i love yahoo!, it's really important to see it into the next chapter. was so muchhere possibility of hope, you wanted to restore yahoo! to greatness. how do you personally feel about this outcome? >> i feel very good about it. i feel yahoo! is a company that changed the world. not many companies get to change the world. if you think about it, before yahoo!, the internet was a government research project. they humanize the web. that we of the reasons all have e-mail accounts. it popularized to search and real-time media. that's really amazing. to me, it was how to we take all

of those historical moments and influences we had a harness that in the paradigm shift to mobile. we are really proud of our products are, that we transitioned our users. we have more than one billion users each month on our properties, 600 million of those are coming to us through mobile. that has tripled over the past four years. in large part because of the quality of the products and investments that we have made. powerfulhis incredibly transformational company that has changed the world and help see it into this new era is incredibly important. obviously, this transaction isn't just about the strategic picture for yahoo!. it's also about unlocking value for our shareholders. in the remaining equity stakes. this is really an opportunity to kill two birds with one stone, so to speak to we feel the we really achieve that with this outcome. scarlet: that was marissa mayer

sticking with emily chang. amanda: in the last hour, we spoke with kurt simon at j.p. morgan. he helped make this $5 million yahoo! verizon deal happen. here's what he had to say about the end result. back, with all the spin that was plan a. doable, ibecame not give the board a lot of credit for saying what else is on the table? this became the most actionable and most attracted to shareholders. >> was that due to shareholders? >> this is an independent decision. this is a decision the board made on its own. it is being seen in some places is a bit of a change in strategy over the recent history at least. and even seen commenters suggesting a bit of a failure in terms of how yahoo! ended up over the course of its history. can you comment or characterize what you think about that? great day free

out of. a great transaction for the company and shareholders. i think verizon is a great home for the asset. >> this is going back seven or was leaks.s, there >> you guys were all responsible. gilbert, it's at&t. how did this impact the deals? >> you to turn on the tv look at the computer. in general, i figured was harmful. you never really want leaks in the process. if you look back, there was an article before round to stating verizon was going to bid proximally $3 billion. that was harmful. you don't know how that affect other bidders in strategy. we bit much more than that, ultimately. i would think in general, it was harmful. it created more uncertainty for employees that we would've wanted. >> private equity firms were patch -- part of the process.

they making certain demands that eventually got folded into the final sale? >>, nonspecific names. i would say was a very competitive process all the way till the end, to the 11th hour was very competitive. >> in a deal like this one, there's a great deal of thinking around company and ultimate strategy, about the goals of the transaction. how does that fit in from your point of view, when you are looking for price and strategic as well as financial fit. >> we had a committee of the , they with three members were, along with management, the real unsung heroes here. the average those three individuals did was heroic. no id on the outside looking in the number of calls every single day, weekends, 45 calls everything will day that they were on. they said a lot of direction and strategy here. ultimately was about price and certainty. scarlet: i was kurt simon at

j.p. morgan. breaking news, according to the sun sentinel, debbie wasserman schultz, the outgoing to write national committee chairman will not open the dnc in philadelphia. she was booed and heckled this morning at a free conference delegate breakfast. she will not open up this convention. she has said she would resign because of these embarrassing leak e-mails, but that she would wait until after this conference was over. scarlet: we will continue to monitor that story for other headlines. coming up, the mystery stock of the day, the pic is printing new money from an old business and buyers are lining up to the other result. a board change led to a buyout. this is bloomberg. ♪

scarlet: before we get to the mystery stock, we want to show you the dollar yen intraday chart. yen was at the session low, meaning the dollar was at its weakest versus the yen,bout 10583 versus the just before report crossed in the nikkei that indicated japan plans to double its planned spending in the stimulus package to ¥6 trillion. we saw the yen gained a little bit -- the dollar gain a little bit, the yen weakened briefly. work --ement seems to reversed. we will monitor this. amanda: let's head to, where shery ahn has a big reveal. it's printing new money from an old business, buyers are lining up to visit the results. them to keeping the change after a board change led to a buyout. : i love being on the side

of the equation. rentals. do with video i cheated. i read earlier. its outer wall. they are the owners of red box dvd rentals and coinstar exchange kiosks. now apollo global management is going to buy them for $1.6 billion. we are seeing the stock performing like this. they are down for the past year, but today, you can see they had a huge surge of about 12% and one point, today after the news broke. is quite an interesting company. you can see that they get more than 80% of their revenue from video rentals. they also get up to 15% from corn exchange and about 5% from cell phone trading. mix is see the revenue

pretty interesting. given that most of their revenue comes from video rentals, you can imagine the challenges that they face. now investors will get $52 in cash for each outer wall share, which is a premium of 51% from their closing price on march 14. scarlet: pretty impressive pop for outer wall. thank you, shery ahn. oilda: north american stocks of shown decent resilience to the renewed weakness in crude prices. the big question is, can they keep it up? with this is jamie sturgeon. of the chart. if you take a look inside the bloomberg, you can see the fall in oil we've seen is in direct down oil stocks. they tracked for the consistently here. let's see why canadian crude stocks are not followed the crude risk back down. what are traders saying about that? jamie: the--

operative word is yet. are gettingy shares hammered found out about 3%. for fully a managers i have is being with today saying this renewed weakness is rattling some of the outlooks. what looked like a temporary blip or flirtation with $45 keeps grinding lower. repressing several stocks in pushing their estimates to oil to get back above $50 for the road. the supply disruption we have seen from nigeria and elsewhere, of course, here in canada, where things are back to nearly 100% have receded and people are reevaluating market fundamentals. it looks like we were tilting perception about valuation, which until now, they've been holding a pretty firm. amanda: let's talk as we head into the second quarter earnings about canadian producers. are we feeling bullish? surprisingly, it

has been minimal. most of the disruption fell on only a few companies. husky showing on the minor impacts from those fires. the reports everyone is focused in on will be this week. suncor, the biggest oilsands freezer in the world reports on wednesday. that will be followed up on friday by imperial oil, the exxon affiliate. you could drive a truck through these estimates and occasions, they are so far apart. no one really knows how deep this is going to hit those firms. suncor has multiple facilities around the side of the blaze, and the majority of the production that was knocked off-line belonged to wit. will alsof the sector report in the coming days. but they are excited to show much of an impact. scarlet: jamie sturgeon, thank you. we are back after this. you are watching bloomberg. ♪

isrlet: the london interbank moving higher, and it has little to do with financial institutions and a lot to do with the 2008 financial crisis. here is joe weisenthal. high of 72st crisis basis point is a last week, still a far way off from where was in 2008, 2009. what is going on? joe: it's been rising lately, as the chart shows, it is nothing like it was. it surge in 2008, 2009 due to concerns about banks, the measure of bank stress. the new thing that people are talking about is our colleague wrote a great thing for bloomberg about this -- regulations are pushing out some of the natural overnight lenders to banks. money market funds, which were kind of at the center of the crisis in 2008, 2009, people remember when the reserve fund broke the book, regulations are

pushing them out of this area. that means that that's less credit overnight for banks. they are switching to less risky assets. someone needs to come in and fill the place. amanda: maybe a less useful immediate gauge for the risk in the market between banks. joe: selling a something different. it's not that it's completely benign and we can ignore it. but it seems to be driven more by regulations on the supply of credit as opposed to a gauge us how credit worthy the banks actually are. scarlet: very little linkage to the fed and what it does next. amanda: it does imply the cost of credit is going up. >> exactly. because of the lending is tied towards libor, and everyone knows with a significant rate that is, the fact that he goes up does matter. even if it doesn't necessarily mean some issue with the banks themselves. it's elegant can be ignored. scarlet: this is something we

will be digging into with tracy alloway. perfect. amanda: thanks, joe. later on today, we will be previewing the big fed meeting on wednesday. mccarthy, whoward will come completely armed with charts. that's a four car p.m. new york times eastern. oil is below $40 a we have the president and ceo of united states commodity fund, this is bloomberg. ♪

david: i'm david gura. vonnie: i'm vonnie

quinn. welcome to "bloomberg markets." david: live in new york for the storiesr, with tort -- from across the world. yahoo!'s fight for survival comes to an end, agreeing to a deal for nearly $5 billion. mercer mayer's future in question, well marty walden continues to be a powerhouse. vonnie: the democratic national convention underway, and an e-mail scandal rocking the boat in the city of brotherly love. the party pushes the most progressive platform and generations. turkey's prime minister says life is back to normal. highlights from exclusive tv interview. david: -- vonnie: