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. markets closeie:

in two hours, let's head to the market desk where shery ahn has the latest. pressureeing downward across the board, seeing the s&p 500 halting four weeks of gains to lose .4%. much ofjones falling as the last nine days of gains, and the nasdaq down .2% ahead of central bank decisions later this week, including the fed and more corporate earnings results. take a look at the imap function on the bloomberg. you can see that most sectors are in the negative, and who is leading the declines? energy shares leading the declines, down 2% for the sector. we are seeing oil at the lowest in more th two months. factoralso seeing one that is up today -- retailers. that's on news that lvmh is selling. karen for $650 million. they are seeing nordstrom, gap, urban outfitters, all the retailers gaining momentum.

wheels are heard from analysts saying that gap is seeing more favorable conditions, up more than 3%. wynn resorts moving today after j.p. morgan last night said that the macau gaming revenue should turn positive finally in the fourth quarter year on year. when results -- wynn resorts gaining. citye also seeing solar moving today, we have that impending merger. tesla motors gaining more than 3%. movers?any other big the dollar is still strengthening, up for two consecutive days. little change right now, but on friday, touching the highest level since may 30, right now the highest level since may 31. of course, hedge funds and large speculators are increasing their wagers that we could see the fed

move, and that could benefit from the stronger dollar. the un's currency against 10 major currencies has been gaining ground. fed funds futures, don't signal the probability of a rate hike in this coming meeting. they only price the chance and at 8%. but still rising on 20 take a look at go on the bloomberg. david: shery ahn with the market desk. matt miller has more from the newsroom. the fbi is now investigating the leak of those e-mails from the democratic national committee. the leak led to the resignation of debbie wasserman schultz. e-mail show that committee members favored hillary clinton and tried to undermine bernie sanders. the cyber security firm that looked into the breach found traces of hacking groups with ties to the russian government. deliverh warren will the keynote address of the democratic national convention,

which starts today in philadelphia. the massachusetts senator, the favorite of liberals, will speak tonight in a lineup that also includes first lady michelle obama, new jersey senator cory booker, and vermont senator bernie sanders. sanders, who challenged clinton during the primaries, will deliver the night's closing address. the national football league says it found no credible evidence that peyton manning was provided with hgh as alleged in a documentary i also zero america. the league said the quarterback and his wife only cooperated -- al jazeera america. the links of the cornerback and his wife fully cooperated. they are investigating other allegations. police in munich are questioning a friend of the teenager who went on a shooting rampage last week. the speculation that friend may have known of the plans of the attack. the 18-year-old killed nine people friday, before killing himself. a has been described as loner, test with playing killer

video games. not attendd will next week's opening ceremony of the summer olympics. the kremlin says the decision to let russian athletes compete of the games is a welcome one. the entire track and field team has been barred from the lyrics because of a doping program. russian athletes may take part if they have clean drug records. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am matt miller, this is bloomberg. bigd: let's turn to the deal news, verizon's $4.8 billion purchase of yahoo!. walden andom marni tim armstrong, they talked about how the companies would fit together. >> the yahoo! brand is an excellent brand, the yahoo! team is an excellent team. they really fits into the larger strategy that verizon has. i think from our standpoint, if you look at where we announced

12 months ago our original deal to what's getting announced today, you will see an absolute line of straight focus and strategy focus for us overall. david: yahoo! has been in decline, and losing money. how quickly can you turn that around by putting it together with aol another verizon assets? >> it's going to take a lot of work, we have confidence in the leadership and him and his team and all of the talent that yahoo!. we understand it will take some work to integrate, but we are confident that they are brands that people love, and there are billions in terms of audience that we can bring to the platform. number of assets across verizon that we will continue to use to strengthen this business. work, puttinghard two companies together always is. we feel it would have the right talent and the right leadership to make that happen. david: you are number three, but a distant number three to google and facebook in the mobile advertising business. what you need to get to that scale?

and what does verizon give you the google and facebook don't have? >> mobile in terms of media consumption has radically change the way consumers are in taking media and advertising. took a step back and said today is my first day on planet earth, what do you think the most important aspect to focus on will be and who would you partner with? well,rtnership of a verizon, yahoo! is a very substantial partnership in a landscape where people are causally focused on facebook and google, the reality is if you look at the hundreds of media companies in the world and hundreds of internet companies in the world, being number three with an opportunity to gain market share is with the steal is about. i would say for the verizon side of the house, it's a very smart deal. walden att was marni verizon and tim armstrong, chief executive officer at aol earlier on bloomberg "go."

something tim armstrong was talking about was this race , andst facebook and google this is an opportunity for them to grow. talk about with that's going to be like this company? >> there is some runway here for verizon to take yahoo! and potentially mobilize it. yahoo! still gets a lot of that revenue the old-fashioned way, which makes sense. it's a legacy company that had older users. there is some runway to put these two together, both legacy assets, and turned towards what facebook is a really good job of, which is getting more and more revenue for mobile digital advertising. , and is a pathway certainly verizon feels like maybe this isn't the end of things. if you look at what they were saying, they both hinted this is not the end. another big

acquisition of the broad world mobile digital advertising, even after yahoo!. they excite interview -- integrate yahoo! first. in the verizon is a distant third, you can envision a world whether able to roll up some other players that are currently in the game and maybe really be able to challenge both google and facebook. vonnie: when integration is complete, does there exist yahoo! in silicon valley anymore? alex: it will exist similar to aol. a lot of those questions are to be determined. we didn't get as many answers as i thought we would today, because what the verizon executives said was that because this was an option process, they weren't able to do the typical back-and-forth, here's how we envision your company living within our company that you would do in a sales process where there was sort of exclusive one-on-one negotiation.

do due diligence in a more fragments away. than are coming, rather already happened. david: when you look at the landscape and see consolidation, does it portend more mergers like this? was a special because of what yahoo! is? special for a number of reasons. of its makes almost all money doing something that really isn't this. it's a mature company in its core business, it has decided to someone augment its current revenue by buying up these once enormous tech apps that still have a lot of users, but that are declining, aol and yahoo! and trying to do something a little bit different than how they make most of their money. the general landscape of m&a is not your, deal you see, where

you sort of see a company that maybe is a current legacy provider, doing something buying new or assets to think about oracle buying cloud, that's the more difficult playbook. this seems to be working in reverse of that. vonnie: there's going to be a lot of discussion about meyer. inyou take a look at a chart the library, and you look at yahoo!, this is where she took over two years ago. she didn't do nothing for the stock, but does that eventually gets old? with alibaba.s that's where the values come coming from. marissa mayer can be credited with not missing out up, i suppose. she can't really be credited that much with the rise in the share price. you argue one way or the other, could she have done more? not many of decisions she made worked out all that well. she could have moved sooner. she could have made distant -- different acquisitions.

acquisition she did make didn't work out that well. that said, in the end, the core business was valued by the market at nothing. as far as what yahoo! in the end. today gets monetized. vonnie: alex sherman, thanks. coming up in the next 20 minutes, is a crucial link for the federal reserve. expected the fed will hold the rate study. more may be on the way from the doj. david: that it would could turn into a potential target and have personal information exposed in the wake of the dnc hacking

scandal, we discussed how to protect yourself. vonnie: time in new york is to 12 -- 2:12, the dow is down about half percentage point, and the s&p 500 down .4%. this is bloomberg. ♪

david: this is "bloomberg markets," i'm david gura. vonnie: i'm vonnie quinn. but the bank of japan and u.s. federal reserve are holding policy meetings. fed members kick off a two-day meeting tomorrow. they will refrain from the action on industry policies members willl bank consider the possibility of a hike sometime this year. mckee, bring in michael

we may not get a hike tomorrow, but we may get some change. right now, the markets are pricing in no move until 2017, and that is not where the fed wants to be. the numbers have been better than expected, but you look at the jobs report and how low jobless reports are, the idea that they wouldn't move it all for another six to eight months is probably beyond what they are thinking. they wouldn't mind bringing that's not in a little bit, but the question is to win. the november meeting is off the table, it's two days before the election. if either september or december. easier to talk about possibility of december, maybe would like to get some option alley on september. how you do that is an interesting question. that getting people to excited. what have we heard from members of the committee, what have they been saying? michael: that the economy has

been coming in better-than-expected. because it was lower, it was performing about as they had forecast. we don't get new forecasts, but the forecast in june is about where the economy is. it always is that, if the economy develops according to forecast, we will raise rates. that may be the way they can phrase it, and you read into it what that means. japan meetingf this week, they are expected to increase stimulus. about the only central-bank that finds it necessary to move. we got a report from the nikkei they might increase to ¥6 trillion, which is more than people were looking for. michael: that's on the fiscal side. the fed in the bank of japan are tied together by their currencies. what has been happening is the u.s. got weaker and the money flowed in here and to japan. the end got stronger, and that has hurt their economy. they've seen exports, and i were led economy, declined for nine months in a row. -- an export led economy,

declined for nine months in a row. they will cut their main rate to .15 basis points from -10 the fiscal side is what everyone is looking for. they spend more money, this premise are on a -- does prime minister oblique -- it would add to the economy. how do they finance it? does the bank of japan monetize it? that's the helicopter money everyone is talking about. , according to the governor of the bank of japan, they won't. japanese economic data has been going the other way, deteriorating. at some point they decide to bring out the bazooka. david: the governor saying helicopter money would be illegal, reiterating that stance. talk to us about the relative surprise. with themiliar surprise. there is a bloomberg surprise index. how does that play out? the fed says they're

going to do something, they don't. that has people in the markets questioning their credibility. it's one reason they have to be careful in what they say. bank of japan has tended to surprise at times. this time, because everybody sees where they are, and the fact that it seems to be falling short, the end is getting stronger. it probably won't be a surprise to anybody if they do something. if they go beyond additional qqq e bond buying, that may be a surprise in terms of the amount. if they do additional bond buying or lower their rates, is not going to surprise anyone. that's mike mckee joining us in new york. mohamed el-erian will join us tomorrow on bloomberg television for what he expects from the fomc later this week. still ahead, how to protect yourself and your e-mails from russian hackers. this is bloomberg. ♪

vonnie: this is "bloomberg markets," i'm vonnie quinn. david: and david gura. if you are watching the e-mail leaks and worried about russian editor joinsdeputy us now. yourselfays to protect from hacking. vonnie: with apologies to the former and as a contractor. david: let's talk with a less extreme end of things. all, at a very basic level, authentication and how you protect yourself and your e-mails. jillian: you can set up to factor a dedication. the first is a password, the second is a one-time only code the gets texted to you. unless someone has access to your cell phone, they're not

have access to your e-mail or your facebook or twitter. david: that's easy to do. vonnie: but you have to download an app to do it. you are giving someone the information. jillian: that's the next level. apps apps -- there are that only exist on google servers and your cell phone, so there's not that transit said that someone could intercept. . david: you caution against using public wi-fi, a great line in the piece saying using public wi-fi is like your computer having a one night stand. you don't know what you're going to walk away with. why is it so treacherous? areian: even if you browsing on a secure site, there's a connection your computer has to make with the internet service before you even get to that website. that leaves you open to attacks. vonnie: how can you not use free wi-fi if you don't want to be paying several hundred dollars

for your phone every month? is certainly in the middle of the scale of what you can do to protect yourself. if you are not a high level government official, you're probably not going to be an individual targets. these are things you can do, but they are not all necessary. david: you have corporate executives as well, you point out there was a famous photograph taken of mark zuckerberg, the facebook ceo in front of his macbook. he put tape over his webcam. this is something a lot of people are doing. not necessary, for sure. it's also very easy to do. stick it up your webcam and your that if anyone is find out trying to find out if you are to rob you, they will be able to. -- they won't be able to. vonnie: what if i'm not too concerned, i don't have that much privacy. is there something that can hurt me down the road? is it worth it?

jillian: it depends on how involved you want to get. things like to factor identification will cost you five seconds when you want to log into your e-mail from a new source. where is buying a bug scanner, investing in audio jammers and stuff like that for your equipment -- that is not something that most people have to do. david: the executive who wears sunglasses cousin he will have a photo of his retinas. the distance between your eyes, there's a lot of data there. vonnie: are you on facebook? jillian: minimally. vonnie: is there any point to any of this? jillian: every thing is out there already. vonnie: our thanks to jillian goodman. you can hear more about the talked about stories every saturday and sunday on bloomberg television. still ahead on "bloomberg markets," let's take a look

where oil is trading right now. wti on the- downside. when dollar three cents of a loss. this is bloomberg. ♪

>> from bloomberg's world cutters -- world hecklers in new york -- world headquarters in new york.

red todayties in the being dragged by oil, now at the lowest level in more than two. you see the past two days, a loss of more than 3.5%. u.s. producers drilling for the fourth week, adding to that supply. we are also see natural gas reversing the gains we saw last week, especially on friday when it surged more than 3% on scorching weather across the eastern united states, helping boost air conditioner use. we are seeing natural gas give back those gains. take a look at gasoline prices, which have also been hit by markets over surprise. we are seeing that gasoline has fallen since june. only one day since june 11 when prices actually rose. beginning of june, we

are prices fall more than 7%. ofecord seasonal levels storage tracking down prices. look at gold as well. declined for the third time in four sessions. we had the fed meeting tomorrow and growing speculation that the .ed will move this year copper futures also down half of 1%. analysts are saying the dragon is being reflected in base metals. iron or though is seeing some bounceback and rebound after we are seeing the g-20 meeting. hope that iron ore prices will bounceback as well as steel demand. >> thank you. let's check in with matt miller in the newsroom. matt: police in florida say an overnight shooting in a nightclub was not an act of terrorism. ,t least two people were killed

12 to 27. three people have been taken into custody. hillary clinton is offering a scathing critique of donald trump passes foreign policy. clinton spoke at the conference of veterans of foreign wars in north carolina. >> i do not understand people who trash truck -- trash talk about america, talked about us as if we are in decline who act as though we are not yet the greatest country that has ever been created on the face of the earth for all of history. recent polling has shown active-duty troops, trump backing clinton by more than a to-one margin. donald trump is dismissing as a joke claims from hillary clinton that russia is trying to -- by leaking thousands of e-mails from the democratic national committee. trump wrote, the new joke in town is that russia elite the

disaster dnc e-mails, which should have never been written, because putin likes me. the number of children killed or hurt in the first six months of this year, a u.n. report finds that nearly 400 children died and nearly 1200 wounded, and nearly 18% increase compared with the same time from your before. minister wantsme to push through new laws on terrorism. jailed terrorists to be held indefinitely and wants territorial officials to .ntroduce laws global news 24 hours a day as hundredover twice journalists and analysts in more than 120 countries. this is bloomberg. >> it is said it would be a mistake to do a donald trump

said he would do. mistake to think we cannot do some of the trade deals and have the economy perform as well as they did before. it improves the overall economy. we talked in the overall segment about what they will do. the number one thing is trade. improving the free trade deals. arguingpeople have been a couple of money ago, every century we seem to have the same argument, is productivity good, is trade good, and every century we learn the same lesson spirit we some town the -- somehow need to shift the psyche of the american people to recognize trade is a good phenomenon and these are good deals. psycheeels the american is shifting the other way. you talked to leaders in the democratic and republican sides of the aisle.

how difficult is this for them politically to support free trade? is difficulty it to intellectually, most support and understand it. the problem is the negative argument is so much easier to make than the positive argument. whether it is productivity or trade, you can show the plan that is not there anymore that used to be, a visual reminder. but you cannot see the benefit to everybody else, you cannot see the jobs that end up occurring, because of the growth than before. the fact that that benefit far overwhelms what you see with that plant, people can see the plant. it is a much tougher argument for them to make. it is still true, trade is a good phenomenon. >> the ceo's is like you who understand this and experienced it firsthand, do you have a role in planing to people there are employees we have because we can export things?

>> we do make that argument. i'm supportive of trade with my own employees, where a think i have some credibility based on 16 years of performance. we make those argument there. we exported for $5 billion last year. it is still important for us. be able to have better relationships in these countries, that is important. it is also important geopolitically p are you have to do something like ttp even if you want to establish world worlds for how you will handle labor, these environments, and to make sure the people have the freedoms they think they deserve. you do not do that by advocating, you do that by participating. >> overall structural globalization come over the weekend, donald trump gave an interview in which he said just he was step back when they got his way. how dangerous would that be? >> i was surprised to hear that.

i would like to think it was a comment made off the cuff rather than something that was a serious pursuit. that would the a mistake. >> how badly would it hurt your company? >> it would hurt our company in the sense it would hurt the entire global economy. you would end up seeing a point of overall global economic decline. we are out of the wto, others will exit. or even worse, they will stay in and we will be excluded. not a good phenomenon. >> what sorts of things are you looking for in the siding who you would like to be president? >> i want somebody reasonable and logical who is kind of in the middle like i feel 70% of the american population is, and just says, can we all get along and just do something to advance arguingtry rather than ideologically and come rushing

absolutely nothing at a time when the world is changing with the growth of china, population growing from 7 billion until 10 billion, and the digital age and the digital centric and i would like somebody who focuses on that and says, how do we get things done >>make the country better? coming up in the next 20 minutes of bloomberg market, the democratic national convention this week, already going off script as the fbi launched an investigation into the hack of the dnc e-mails that may be linked to the russian government. vonnie: after announcing sales to horizon, marissa mayer's discusses. >> let's take a look at where the u.s. majors are trading ahead of the meeting we are about. , 8.5 thousand 91 and the essence -- s&p 500, half

of 1%. this is bloomberg. ♪

david: looking here at where the democratic convention is scheduled to kick off. vonnie: time now for the someberg business flash, of the biggest business stories in the news right now. private equity firm global management, the owner of red box , 1.6 billion dollars.

investors would get $52 billion in cash for each share. 51% over the closing share price. the consulting firm estimates it will cost $64,000 per employee. to relook at employees and hire and fire other ones. ansi entertainment resumed its shopping spree. stocks.lion in cash and shareholders rejected an earlier bid. earlier this month, ansi agreed to buy operator -- and uci cinemas. ansi is owned by a chinese conglomerate. that is your bloomberg business flash update. david: the democratic national

convention is starting with a cloud hanging over the party. scholz announced she would decline and hillary clinton -- international intrigue to the democratic discourse. a potential culprit. >> that is true. i do not know. >> we're joined now from philadelphia. it sounds like they are saying unequivocably that the russian government is to blame. >> that seems to increasingly be the trotter in -- among democrats. a mystery as to what spurred the dnc e-mail hack. we know the fbi is investigating it. decisions among law enforcement officials.

know for sure but there is a lot of chatter about this right now. what has already been a topsy-turvy, unusual election so far. >> is there any way of getting proof that the russians hacked into the dnc account? fbi is is what the investigating. part of the conversation, it is due to the fact that donald trump us his campaign manager had ties to pro-russian politicians. morehad democrats talking about an added element of mischief. not goingections are unnoticed. >> let's talk for a minute here. gavel andshe will not

the convention at 4:00 p.m. eastern time rather saying the mayor of baltimore, debbie spoke at a florida breakfast this my hand let's say it did not go well. >> it did not. >> leave make sure. hillary clinton. >> it did. this was a disastrous opening moment for the democratic share. are showing their, this led to increased calls from sanders supporters. and democratic strategists, that she should step down immediately and not wait for this to go on. it distracts from the message of unity and putting on a united front and it heightened disk is and divisions for the party. bernie sanders supporters did not think she was cutting a fair

shake in the primary. they thought she was biased in favor of hillary clinton. theils at legitimacy to claim. growing calls to step down immediately. seen, a safe be andyou'll have people going that will be bernie sanders supporters. >> in the interest of starting a high note and not gavel into the convention, the first two gavel into a beast in his reporting, we readetary, should anything into that? take over now? >> i do not know about takeover, as a risingiewed star and an effective messenger for the party. i would not lead too much more into it than that. they need somebody, and i am

pretty sure they found somebody to do it. >> bernie sanders have been calling for the resignation of scholz. let's have a listen. bernie sanders: we have got to defeat donald trump. [applause] bernie sanders: and we have got to let hillary clinton and tim kaine. >> boo! expectwhat should we from bernie sanders tonight in philadelphia? >> bernie sanders do everything he can to smooth anxiety. a lot of concessions out of hillary clinton in terms of the democratic left form, arguably the most progressive platform in the democratic already history to yesterday he got another thing he wanted, the resignation of the dnc chair. right now, bernie sanders is fully onboard with bernie

sanders although some of the delegates are not. it is an bernie sanders interest to make sure she gets elected. we will hear him communicate to delegates why they should support -- they are not the type to fall in line but that is what we will hear from him. be an: it will interesting night. reporting this morning that the according to 538 calculations, donald trump, a percent chance of winning -- 42% chance. all the momentum following the convention, with hillary get a >> it is common after the conventions for the candidates to get a bump. donald trump has done that. given the amount of chaos and discourse we saw, not only

within the party ranks and among and disgruntled people, but top-tier rivals, ted cruz famously did not endorse donald trump. highest ranks of the republican party in cleveland. in the democratic party, it is not quite the same. they are united and working hand-in-hand moving floor but there is a sense among the a fair bet if is history is any indication, they will get a bump out of this. is thing that is clear, this a clear election than anyone could have predicted a month ago. vonnie: they will gavel in in an hour and 10 minutes or for more coverage and all of today's big headlines, tune into "with all due respect" at 5:00 eastern. marissa mayer will -- the transition of the sale to for eisen.

this is bloomberg. ♪

ceoie: semi wants to remain of yahoo! or what is left of the company. emily chang spoke with her earlier in california and joins us now with more. what was your main takeaway? emily: the first question was how did you arrive at the decision that this was the best home for yahoo!. this was the best place at the moment and they were also

maximizing volume of access to spin off the core vision. also. that would scale that horizon brings to the table -- for eisen brings to the table. just verizon brings to the table -- verizon brings to the table. >> overall, i think it represents a huge amount of opportunity for verizon. emily: we know mercer mayer came into the job years ago with tremendous hope and possibility and people were out there who said she was taking on an impossible job. she is proud of what she guns and she feels personally very the outcome. people out there said yahoo!'s business was worth less than you zero. -- less than zero.

she believes she can still see the path to growth. now verizon accelerates the path. david: she intends to set yahoo! and reiterated that. might,?le of think she -- what did she have to say about the future? emily: she said she was yahoo!, on todaym armstrong and they reiterated the so was day there and is vital to making sure this all worked out. next for yous after this. i know this is not the end for you and take a listen to what she has to say. in theve to be involved companies. i got that at google and here again at yahoo! and i love all faces of companies.

i was at google from tens of thousands, i managed hundreds of , i have loved the effort and the energy and the hard work required that we have had here at yahoo! emily: some people might forget before she went to this job, when she was at google, she was an investor on the side and gathered a lot of opportunities at google, companies that have become the company and spotted those early on and i think she loves diving deep into the products side. certainly this is the end for her. vonnie: her profile will skyrocket now. she is the all caps. producthe head of business opportunities ever

eisen and she is in the wireless industry for her entire career. she started out selling at a hardware store or a kiosk. instrumental in the a a well acquisition. she was instrumental in driving this acquisition of yahoo! and she will be eating this integration. thank you, emily. we appreciate it. tonight at 6:00 p.m. eastern time and 3:00 p.m. pacific. chief global investment strategist from charles schwab joins us to give his outlook in the earnings season. ♪

david: i am david gura. vonnie: i am vonnie quinn. welcome to bloomberg markets.

♪ vonnie: we are live for the next hour. here is what we're watching. u.s. stocks are in retreat with energy shares leaving declines. the central bank policy meeting and a slew of corporate reports. verizon agreed to by yahoo! for nearly $5 billion. what is the roadmap going forward? vonnie: we are speaking with tech. apple set to report earnings this week. in risinge competition? david: