markets." covering stories out of san francisco, philadelphia and london. central banks in focus as that that kicks off its two day policy meeting. the yen with its biggest gain since brexit. it is dnc they too -- day two. david: apple and twitter set to report results in a little over an hour. we've been bouncing around in a tight range today dow has been the underperformer because of mcdonald's, now down when 3%.

look at the s&p 500 over the see seven days, we will again, not much changed, only a .1% move. only mid-cap stockse performed better go. the small caps a little lower, but the mid-caps are higher by 3%. we have allegheny technologies, with demandker from aerospace contractors. crane also beat estimates and raised its forecast for the full year as well. fallingtexas roadhouse

after jefferies says we have reached the top in the restaurant cycle. cadence missed estimates. it's also worth mentioning what's going on in the bond market today. five-year notes, $34 billion worth, showing the weakest demand going back to 2009. this decline in yields we've been seeing is starting to have an effect. , a bit of action turnaround. popave seen the yields go and a bit of an extension of that after 1:00 p.m. an increasing trend recently and something to pay attention to. vonnie: a theme for the week. let's get a check on the first word news this afternoon.

president obama will be hitting the campaign trail this fall on behalf of senate hopefuls according to the political director of the democratic senatorial campaign committee who says the president will be deployed to help in close races. the dnc wants to get michelle obama more involved and it is reaching out to bernie sanders to get his supporters to the polls. anald trump received enthusiastic response from veterans today as he criticized democrats and about to reap the department of veterans affairs. gathering in charlotte, north carolina "our politicians have totally failed you." he criticized hillary clinton and the democrats gathered in philadelphia. the turkish president has accused the eu of taking an agreement on refugees --

breaking an agreement on refugees. the eu has not given turkey all the money it promised in return or stopping refugees from entering europe. at least 85 athletes from the 387 strong russian olympic team have been barred from the real games due to the country's doping scandal. due to thegames country's doping scandal. the ban was upheld last week. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. vonnie: thank you. u.s. economic outlook, home prices continuing their steady climb, but less

than estimated one year ago. 5.2% after climbing 5.4% in the year through april. for more, we want to bring in stuart hoffman from pittsburgh today. another indication of good data, maybe not quite beating estimates, but still pretty good. what is your assessment of the u.s. economy overall? stuart: the u.s. economy had a very good spring. you mentioned homebuying. around 5%,were up but homebuying was very strong this spring. samesales up 15% from the three months last year. with mortgage rates at record lows, more jobs, more income, credit availability improved, house prices going up and even

first-time homebuyers are coming back into the market. homebuying is one of the bright spots. this friday, we will get the gdp report. i think we will get around 2.5-3 percent with revisions from the last three years. i think the economy is doing pretty well and almost all the data we've had for quite a while has been on a positive. housing, industrial production including unemployment claims, have been earlier today, robert schiller was on bloomberg tv. they asked him about these prices. >> normally, prices would be if youat this time

correct for seasonality, home prices are just about what. that's just about flat. they're not looking quite as strong as they have been or the last year -- for the last year. weakening --of the it is all relative you were talking about home prices on a year-over-year basis, which gets rid of some of that seasonality. home prices have recovered in many markets. they are above were they were at the peak and affordability is becoming an issue. we are seeing less appreciation i do thatrices, but is good news because they were rising so fast for the last several years and a lot of markets, they are pricing new homebuyers and even some existing homebuyers out of the market. statement will get a

from the fed tomorrow. if things are surprising to the , why is the bond market not pricing in a rate hike this year? stuart: the fed funds futures markets don't have a rate hike priced in until next spring. the odds have risen. no one expects the fed to do anything tomorrow. things to look for, their statement on the economy, particularly the job market, and whether or not they put in this balance of risk assessment. for the last four meetings, they said we cannot make an assessment. if they put it back and come i think that would be a sign the fed is becoming more comfortable post brexit with the economic outlook.

it still has those low-end negative yields throughout europe and japan and that is what i call a gravitational all -- gravitational pull on the bond market and that's why rates have stayed lower. david: one more piece of data this morning, consumer confidence. 97.3. what is your sense of the strength of the u.s. i consumer? stuart: based on retail sales, consumer spending in the spring quarter probably had the biggest increase we've seen since the andth quarter of 2014 before that, you have to go back to 2010. consumer spending, gasoline prices moved up a little in spring, but not as much as usual.

jobs still pretty good. consumer confidence was pretty flat in june, but a solid level. i think consumer spending was the star, the highlight of the spring economy. i think that will be the case as we go through the second half of this year. don't count out the american consumer. david: we believe that there. thank you very much. stuart hoffman joining us from pittsburgh. apple reports after the bell today. why some analysts have downgraded the company in recent weeks. we will bring you highlights wrong -- highlights from gene munster's forecast. ♪

vonnie: this is "bloomberg markets." with reports apple fiscal third-quarter earnings after the bell today. thirdsf the iphone, two apple's revenue. gene munster is optimistic. is a time to be particularly optimistic because what is unique about owning apple is you get to shots on goal. typically, you get one shot. anticipation of numbers going higher into a product cycle. in this case, you get low expectations for the 7 and this anniversary phone coming out in 2017. there is an added safety level in terms of owning shares that has nothing to do with the report tonight. vonnie: we hear about this google backed chinese smart

watch. they can own the asian market and that puts apple in trouble. a small part of their business is the watch, about 6%. it will be about 1.5 million units. the wearable category should have an inflection point higher when the watch is decoupled from the iphone. you will be able to use the watch as a standalone to do text messages and phone calls that's right now, you have to have your phone with you. this suitedd some of of features, the technology will change. tom: i have cash build over the last or years -- quite for years -- four years.

will they this time around with the use of cash? gene: probably not much of an update until the report in march. you might see a slight shift to more of a did then best dividend. -- more of a dividend. buy?what would they gene: i cannot comment, speculate about m&a myself i can tell you what most investors netflix and tesla. netflix makes sense because it beats up their services segment. up their services segment. and tesla with the future of cars and what apples play may be there.

if they do some kind of acquisition on content and software, it helps with bringing out an iphone 8? gene: that is just on the side as far as growing the services business. investors looking at how the iphone 7 is going to do. the 10th anniversary phone coming out later that year, a slightly different form factor and looking a bit more futuristic. eventually, your phone will flip open to be a tablet. hard to say when that is coming. that is one of the trends, apple will be there. was gene munster. afternoon at 4:00 or a full breakdown of apple's earnings after the u.s. closing bell.

improveds new and offer for sab miller comes after the british pound drop in the wake of the brexit vote. aboutked to duncan fox the revised offer. they've done everything with regulators to get it through. mark: you've got this new cash offer, 45 pounds. the cash and stock offer has been week did it that week -- has been tweaked a bit. duncan: that is because of sterling. that deal was put in place in october. brexit. simply

the cash alternative was put in ofce to please shareholders sab. the structure of the deal was quite important at the time. events have overtaken them. >> a simple chart of sterling versus the u.s. dollar. we have seen a stabilization. time for an even bigger move to force money out of this deal? they are trying to squeeze as much as they possibly can from it. there's only one major regulator left, the chinese. that should come relatively quickly. it comes down to shareholders. if you don't ask now, you are not going to get. sees dustel-erian

sees chancesrian of recession in the u.k. next year. duncan: if you are going to buy wantbal beer business, you a young, growing market. we've seen consumer goods companies rise by 15%. that 44 pound cap has left sab behind. it wasn't that big a premium. argument?valid duncan: if you look at the , you look at the

countries in the assets they are buying. pricing would be quite difficult in those emerging markets. it is certainly an argument yourtors are going to use desk are going to use -- investors are going to use. visio -- a acquiring leading consumer electronics ran in smart tvs and sound bars. vizio for $2ng billion. ♪

vonnie: this is "bloomberg markets." david: a bit of the landgrab going on in vermont. mormon billionaire from utah looking to buy up land to create this billionaire based in utah with a grand vision to create a small city with a big population in vermont. how did they come up with the idea? >>'s name is david hall, he is an engineer, also a lifelong mormon. he was researching mormon history and he came up with this document the church never paid much attention to. a vision joseph smith had back in 1833. studying an old testament prophet -- joseph smith had his

foundsion and david hall that an lance now to build a community. -- and plans now to build a community. vonnie: this one, the apartment soundproofedo be with roomba sized robots rearranging the nature. >> these communities will be mostly pedestrian, high-tech, .igh density he made his fortune in drilling is father is credited with -- his father is credited with creating the synthetic diamond. he finds these plans and

comes up with the dream of doing this. how far along a is he? million, spent $100 plans to spend $150 million more. he has 100 engineers already working on this. 25 companies developing technologies for these communities. he has one developing a toilet -- one developing these robots that will reconfigure furniture and then go back into their little nest, he says. he plans to debut this technology and use that money to fund the first community, which will cost $3 billion. the most talked about

stories on bloomberg television. stocke: analog devices' linear-- the deal for could be announced as soon as today. analog up 4.5%. in advanced talks to acquire linear technology. stay tuned. more "bloomberg markets" coming up. this is bloomberg. ♪

?c+sv

david: this is "bloomberg markets." vonnie: let's check on the headlines. mark: bernie sanders said today

he's hopeful his supporters will stop doing hillary clinton and --cept the reality that stop hillary clinton and "accept the reality." >> donald trump is a danger to this country, he is a demagogue. i've talked to some of his republican colleagues who perceive he does not understand the constitution of the united .tates david: trump repeatedly drawing leaks of dnc e-mails. president finds a lot of called on french citizens to be united in the face of terrorism --

president francois hollande said the terrorism threat has "never been that high in rants and in europe -- in france and in europe." the majority of the 20,000 people who fled to southern who fled from the southern california wildfire will be allowed to return home. at least 18 homes have been destroyed. the world's first around the world solar flight has ended in be -- abu i would not dhabi. it made 16 stops, not using a drop of fuel. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries.

i'm mark crumpton. this is bloomberg. david: the headlines continue to cross. considering a $5.5 billion stock sale and exit from poland. -- and exit from poland. -- arow, if that statement fed statement will probably a knowledge better news on the economy. oil trading below $43. one notable player still feeling the heat, bp. shares tumbled in london after it posted a 45% slump in earnings. guest helpedext break new ground with the launch john lov, john love.

thank you for joining us. how do you deal with an etf aced on oil -- based on oil in a down market? john: we track our etf, the closest to the physical month -- highly correlated to the daily returns for crude. vonnie: you would imagine that investors would be investing for the long run. john: if people are looking at oil, we see a trend, you want to play it tactically, be smart to know the market you are getting into.

we have a fun that has 14 commodities at a time -- a fund. david: what has changed in that 10 year period since you started the fund? john: we were around 350 in terms of etf's, it is now over 2000. we were the third commodity etf, the first oil etf and the first single commodity etf. there's numerous commodity etf's. mlps, real estate. it's given the investor all caps of ways to play the market. low-cost and strong convenience in terms of etf structure. 12nie: you've launched specialty etf's. how do you attract smart beta

money? john: are broad commodities etf's rules-based, it does the same things as smart beta products. it is rules-based, using selection methodology in terms of which commodities it allocates to. how do you manage the rebalance here to avoid hedge funds run running you -- front running you? john: that was a concern when we launched. we typically have not seen it happening. we are very transparent. etf's have to be transparent. it is not unique to us, but we

have not seen a strong affect. having been in commodities the last 10 years, using a lot of ups and downs. give us your assessment of where oil prices are going. john: the oil prices are under short-term pressure. i'm not surprised to see the downturn we've seen the last couple of days. my optimism that the excess inventory was going to start to decline -- we had some optimism. short-term, we still have pressure on oil. 2017, we will start to bounce around a little higher ending closer to 50 or over. balances, the market and we started see spaces where supply is not enough to meet

demand going forward. david: the world bank sing the demand for commodities will strengthen -- saying the demand for commodities will strengthen next year. john: it is hard to say on the broader end. i won't contradict an economist that i will say commodities have been under pressure for a long time. we have definitely seen an upturn this year it is a space that is due for correction. not homogenized. vonnie: what will be the winning commodities? john: a broad allocation is the winner. i think that is the way to go. .onnie: that was john love coming up, turning to the 16

race --t to the 2016 .urning to the 2016 race this is bloomberg. ♪

vonnie: this is "bloomberg markets." an update onas m&a news. alex sherman and at hammond reporting that analog devices in advanced talks to acquire linear technology. when you're has a market cap of

$12 billion. we are talking a pretty sizable deal here. of $12ar as a market cap billion. linear due to report earnings after the close on tuesday, today. representatives did not immediately respond to requests for comment, but we have seen market reaction with linear here.logy spiking analog also spiking as these headlines came out. we've seen a broad gain throughout semiconductors. semiconductor makers had already been trading higher. texas instruments rising, now 9%. ti was already trading at the highest and's 2000 -- since

2000. it is seeing strong demand from the auto industry. microchip technology spiking. the semiconductors have already performed be well this year -- pretty well this year. 17%, seen a gain of outpacing the gains in the market. here you have it for the , over thetor industry past couple of years, a substantial uptick, the blue is the amount of deals with the green line is the number of deals. this has been a very, very busy area and we are not done. david: julie hyman at the markets desk. the dnc started with bernie

sanders supporters lingering in , showing he cannot completely control the movement he started. roll call vote is expected to get underway in two hours. bernie sanders: if you were campaigning for me for six , vote forght months bernie sanders. you cast your vote, the other side gets more votes and you accept that and support the winner. let me ask you about the amount of time we will hear from bernie sanders. sahil: he gave his speech last night.

his delegates were very antsy and anxious. his supporters are slowly moving to her. we will be filling his presence throughout the convention but not seeing much more of him tonight. vonnie: it was a very jittery crowd last night. much larger crowd than the rnc. should we anticipate that going forward? sahil: i think so. you have bill clinton today, the president tomorrow. hillary clinton will give the keynote speech on thursday. a variety of celebrities and entertainers will be there throughout. packed be a pretty arena. an ansi crowd not fully in agreement.

does that come now that we've had the bernie speech? or do they continue to chance different things -- chant different things? sahil: a lot of the delegates probably got their main beef out of their systems yesterday. the endorsement he gave last night was very emphatic, very vocal, nothing equivocal about -- his supporters realize the election will ultimately be a binary choice between hillary and donald trump. how many of them will decide she is so an acceptable -- and unacceptable so that they will not vote?

the chairman of clinton's campaign talked about what we might expect from the former president tonight. sahil: he will serve as a character witness for his wife. he will talk about the kind of hurts and that kind of person the kind ofout person she is. theill be hearing about personal side of her that is not visible when the cameras are on. she is a very private, secretive person. asetimes to her detriment people across the country say they don't trust her. we will be hearing a lot about the historic element, the first

woman to be nominated for a major party. vonnie: will the party come out of the convention unified? sahil: that is the $1 million question. we will see steps in that direction. thing ernie was asked about come are your supporters going to ultimately support hillary clinton over trump? he suspected there will be some people who will support from -- support trump, but they will overwhelmingly support hillary. thanks.sahil kapur, for more coverage, tune into "with all at 5:00 p.m. eastern at"with all due respect"

5:00 p.m. eastern. a hedge fund announced a short said theation that unit from dupont had been designed to fail. great flacco global has a leeco global has agreed to buy vizio. they will be owned and operated as a subsidiary. volkswagen's settlement has gotten the green light from a u.s. judge. the move opens the door to objectors and sets the stage for final approval this year. buybacks covers the

u.s. government and 44 states. , twitter has up millions of fans around the globe but investors are looking at the company with a critical eye. this is bloomberg. ♪

vonnie: this is "bloomberg markets." david: let's talk about twitter which reports second one earnings after the bell. investors looking to see if an active political season and the

push for life streaming content have led to a growth in users. , want to pull up a chart pricer versus the stock the sentiment and blue, the stock price and white. blue, the stock price in white. disappointing -- anything different today? >> analysts have been pretty down on twitter. every few weeks, there's another person saying twitter will be -- will not be independent for long. there's a lot of negativity coming into these earnings. on the flipside, we've seen a , like into live

video. a different use case for twitter it self, a place you can go to watch the rnc or watch an nfl game. a lot of those deals will come to fruition and the fall. -- in the fall. for twitter, they probably won't be able to show a lot of rye grass from those deals yet, but they can talk about what they expect from the future. -- a lot of progress from those mlb nhl gamesie: will be streamed. sarah: their basic social media , the budgets from

they are not- writing bigger checks to twitter because the user base has not grown significantly. advertisers have to be able to tell their bosses that they are reaching a larger audience. twitter says maybe we can give them a different use case, compete more with the likes of opposed to hulu as competing with facebook for that money. cane out of market games help in terms of the user growth. the live video will be a marketing vehicle for people who , theynormally use twitter might get linked to the video from another site and see the alongside it and then get

interested and sign up for an account. of nottwitter accused have we seen any more movement on that front? sarah: absolutely. last week, they permanently milo, who was leading the abuse against leslie jones. we are blocking you permanently and we are also trying to figure out a way to do this better in the future. they had spoken a lot this year about trying to decrease the amount of harassment on twitter, but it is a difficult problem to solve. people can come back on with different e-mail addresses and user names. and theh profile block

other moves can really help twitter keep people. onid: you can catch more "bloomberg west." tomorrow, tune in to bloomberg television for a special edition of "bloomberg markets: the fed decides." s roundtable of great guest must starting at 2:00 p.m. eastern time here on bloomberg television and bloomberg radio. this is bloomberg. ♪

e vonnie: i'm vonnie quinn. welcome to "bloomberg markets."

we are live from bloomberg world headquarters in new york. covering stories out of san francisco, washington, and tokyo. earnings extravaganza. seven members of the dow are reporting today, we will bring you the highlights and set you up for apple after the close. analog devices in advanced talks to inquire linear technology. linear spiking as much as 28% on the news. shares of both companies are now halted. we will have more on the bloomberg inclusive reporting in just a moment. noted short seller andrew left is weighing in on yahoo! and they spoke. can his forecast the as explosive as his on valeant? we