>> from bloomberg world headquarters in new york, i am david gura. manda: i'm amanda lang and here's what we're watching. ands said day in the u.s. investors are expecting them to do what they have done so far this year -- nothing could could set the stage for a possible rate hike in december? david: deutsche bank signals another round of belt-tightening as a rate slump wipes up the second quarter profit. ♪ david: we're halfway through the trading day. let's get a check on where the market stand now with julie hyman. julie: want to talk about news that broke in the past half hour or so regarding that big beer deal there is questions about whether it may happen.

our reporting, apparently the team at sab miller is set to order a halt to integration with ab inbev. according to reporting by thomas buckley, sab miller management has asked employees to stop work on integrating its operation ./ this is according to people familiar with the matter. the cash portion of its offer for sab miller, but there were investors not content with the level of that offer. you can see anheuser-busch shares falling off as these headlines across. sab miller had already closed in london trading when the story came out. it is not as heavily traded -- that is the disclaimer here. we also sought reaction in multiple cores. that is the company expected to get the remaining portion of its joint venture with sab miller and united states if this deal

goes through. we saw those shares falling off as well. we will bring you any develop its that we have, but it would obviously be a big deal at this deal did not go through. what about the broader market? seems as stocks were shrugging off economic news. julie: we have durable goods missing estimates and pending home sales missing estimates. stocks initially held up relatively well and then started to turn downward here. investors are still weighing a lot of earning reports. that is helping to keep the nasdaq afloat. after apple's, the numbers have turned lower. if that was not enough, we have the conclusion of it today fed meeting of which there is expected to be no change in rates. there will still be attention paid to commentary. here's the 10 year yield pulling back this morning to 1.54%. speaking of those earnings, apple shares are still on the rise.

they are up 6.5% after company sales beat estimates and its sales forecast is ahead of estimates, even though it will be the third consecutive decline in sales for the company. you are seeing corvo on the rise and analog devices. we yea learned yesterday that it was in bidding for lltc. on the downside in terms of earnings, we have coke, who sales outside of the u.s. fell. ultra or falling as well as monde police. david: julie hyman, thanks so much. amanda: let's check on the bloomberg first word news this afternoon. mark crumpton has more from the newsroom. mark: a judge has ordered that ronald reaganot 35 years ago be freed from a government psychiatric hospital . john hinckley wounded three others when you try to kill the president in 1981. a jury found him not guilty by reason of insanity. once he is released, he will

live with his mother in for virginia. prosecutors have dropped the rest of the charges against officers in the death of freddie gray, a man who died after injuries from being placed in a police van. a judge has acquitted three officers including the van driver and another officer, who was the highest ranking of the group. pope francis says the world is at war, but he says it is not aware of religions. where hewith reporters began a five-day visit. ask about the slaying of an 84-year-old priest in normandy, he replied, "the real world is war. this holy priest died at the moment he was offering a prayer for all the church." eight years ago they were rivals , but tonight, president obama will tell the nationwide hillary clinton should be the next president of the united states.

theobama will deliver keynote speech in prime time for day three of the democratic national convention in philadelphia. he is hoping to cement his legacy by having his fellow democrat succeed him in office. also scheduled to speak tonight is vice president biden, tim kaine. three of theday dnc, bloomberg politics joins us now from philadelphia. did the democrats turn a quarter yesterday -- corner yesterday? they are trying to unify the party after bernie sanders supporters are still not sold on helical and. hillary clinton. >> a lot of bernie supporters were letting off scenes and were booing and interrupting hillary clinton supporters as much as they could. day to felt different. it felt different and part because of bernie sanders enthusiastic endorsement of hillery clinton on the first

night and the historic vote that took place on tuesday. it was the first time into 40 years that the united states nominates a woman from a major political party. die was a huge moment and sanders put the nomination and to file. -- that was a huge moment and sanders put the nomination and to file. mark: what was the impact of former president bill clinton speech last night? toil: bill clinton tried humanize his wife and tell a personal story about her in a way. and tell a personal story that people do not think or hear about because she is a very private and secretive person. he went all the way back to the time they met, story that goes all the way back to spring of 1971. he talked about how they got to know each other and how they ended up getting married, their personal relationship. he glossed over some the obvious troubles and their relationship, but he gave a rousing endorsement of her character and perseverance and toughness. it was an unusually personal

speech that try to provide a counter narrative to hillary clinton's biggest weakness, which is that she is seen as dishonest and untrustworthy. she is seen as an agent of the status quo. bill clinton at least three times last night called for a change maker. what he is trying to do is counter but her biggest -- what her biggest perceived weaknesses. mark: tim kaine, the virginia senator, will be speaking tonight. what type of reception might he get from bernie sanders supporters who have problems with senator kaine because they believe he is to moderate and his endorsement of the tpp, the transpacific partnership? sahil: it will be a mixed reception. some supporters are not fully on board. he has switched on things like calling for a repeal of the hyde amendment, which limits abortion funds. what we will hear from tim kaine

is an endorsement of hillary clinton. democrats for the most part are supportive of tim kaine. he is very well respected across the spectrum. there is work to be done among bernie sanders supporters. you.: sahil, thank mark: global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries, i mark come an mark crumpton. back to you. david: it is tough times for deutsche bank as profits were almost wiped out due to restructuring costs. john cryan has been freezing dividend payment and slashing about 9000 jobs. those cuts could even deeper. joining us now is michael moore, based in london. in that letter from john cryan, two words stuck out to me. they were more ambitious talking about what these cuts might be.

what more can deutsche bank do going forward? michael: you could definitely see them cut more jobs and try to speed up the pace of the cuts. they have been continuing to try to cut costs on the technology side and trying to synthesize the banks, simple by the structure of the bank. you may see more progress there and selling off assets, whether it is postbank or the stake in the chinese wonder. they have assets they would like to get rid of on both the capital side and cost. amanda: want to call it the decline in revenues. unlike many banks, they do not have a lucrative wealth business. they do not have a retail business to fall back on. that is getting tougher and tougher. what is the prospect for deutsche bank and how long are investors going to give them? michael: that is the big issue for them. while they are continuing to do

this restructuring, the revenue side has not held up. as you mentioned, they are disproportionately exposed to the investment banking and trading side. they did worse than rivals in that area this quarter. all the u.s. banks sawn increase in their debt trading whereas deutsche bank was down about 20%. they chalked that up partly to between the u.s. and european markets, but also because they are getting out of some of these businesses. they are scaling back in your starting to see that impact the revenue. it is certainly making john cryan's job tougher that you have this extra headwind. david: there's also been a crisis of confidence when he been looking at the capital of the bank on hand. as he addressed how legitimate those concerns are? michael: he did mention that some clients call them unsettled by the amount of negative news around the bank and the amount

of people questioning the banks capital and financial strength. he says those are unwarranted and they're going to continue to try to convince the marketplace that they are on solid footing . that is obvious the going to take some time. david: that is michael moore from bloomberg news joining us from london stay. amanda: more on our developing story -- sab miller asking employees to stop working on integrating operations with anheuser-busch inbev. this is bloomberg. ♪

amanda: you are watching

"bloomberg markets." i am amanda lang. david: we are following breaking news today on the potential deal to combine sab miller and anheuser-busch. sab miller has asked to stop work on integration with ab inbe v. more, let's bring in thomas buckley who joins us from london. ?hat happened here thomas: this is a twist and turns that infuriated ab inbev. sab miller is making the point that admit all the uncertainty that it included hedge funds and aberdeen with regards to the appeal of the deal. they said, listen, maybe we are going to leave things for the moment as they are until we find out more from our shareholders. there may be separate efforts

that could be made to get it back on track. amanda: when we think that leaves the potential for a deal happening? thomas: i do not think the deal is off the table by any means. i think that we had the most ab inbev atr from 80 an 45 pounds per share. they were maybe saying that was unattractive for shareholders and it may be important to see other shareholders come out and support the deal for come out may be against the deal. based on the number of shareholders for against, they have a chance of reviewing as to whether it will go on further to shareholders. david: they released a statement yesterday saying that the revised deal remains unacceptable. the company continues to they've or the shareholders. what role is aberdeen playing threat the process? thomas: aberdeen made a point in the statement that they have been looking at the disparity between the value of the commercial shareholder

alternative and the holding company for the billionaire family of columbia. other shareholders such as aberdeen themselves think that we will see that 50 pounds per share this the cash offer of 45 pounds per share. $.30 premium is really alarming. , including investors aberdeen, so they would be working with sab miller or to find an attractive solution for shareholders. amanda: what is the next step for companies here? what is next? thomas: so often we have seen it has been on the side of miller integrating moldon coors. maybe the next step for ab inbev is difficult to say. they said their offer was final. on the u.k. takeover rules, they said there needs to be at least

six months before they come back with a fresh offer. sab miller made it clear that they would wait to get approval from china. david: has thomas -- that is thomas buckley joining us from london. amanda: for to the check of the markets ahead of the fed's decision at 2:00 p.m. eastern. it is a mix session and apple is really driving the nasdaq. it looks like the stocks are responding to weaker durable goods numbers and possibly waiting up the fed. let's get now to abigail doolittle, live from the nasdaq. what are you watching? abigail: we're watching facebook. we are in the heart of earnings season. today's big earnings report will be facebook. the social media giant reports after the close and the question is whether or not facebook can do it again? can they beat street estimates for another time? they beat estimates eight out of the last eight quarters. investors are looking for adjusted earnings of $.82 on a little more than 6 billion in revenue.

the bar and expectations are really high here for facebook. that means investors will be looking at important metrics, including the percentage of mobile advertising revenue as the amount of total advertising revenue. the street is looking for 82.6% to the mobile advertising. monthly average users will be important. the street is calling for 1.6 9 billion in monthly average users. facebook has to hit or beat all those metrics for the stock to perform well after the report. and we take a look at the longer-term chart, we see that investors have really rewarded facebook for executing so well over the last several quarters. a big bullish uptrends. this consolidation produced a huge move up. currently facebook is about the top of that. it is not to say that it cannot drop back down, but it facebook does put up another huge performance, it could send facebook nicely higher yet.

david: it is safe to say that facebook is the big earnings report today. yesterday was apple. how are we seeing that company report on the nasdaq t today? abigail: the bar was pretty low for apple and they beat it pretty nicely. the stock is up 6.5%, having its best day in more than two years. they did beat earnings revenue and iphone estimates for the june quarter. they also guided higher in revenues for the september quarter. the big question ahead is the upgrade cycle around the iphone seven. it producing aee super cycle and others say an opposite case. there is uncertainty on the long term for what could be had for apple. today, lots of strength for the iphone maker. amanda: still ahead, we're going to take a look at currency markets ahead of the fomc decision in our fx roundup. this is bloomberg. ♪

david: this is "bloomberg markets." i'm david gura. amanda: i'm amanda lang and we are less than two hours away from the fed decision. be sure to keep it on bloomberg tv and radio for our live coverage. let's look at the currency effects. let's look at a hawkish tone and what it means for the dollar. vincent joins us today in the fx roundup. in terms of what we are looking for, we know with great certainty that there will not be a move, but the statement itself. you think they need to get a little more hawkish in order to start to move the dial for december rate hike. vincent: they keep saying that every meeting is live. you cannot have a live meeting if expectations are so low. expectations for september 2015

were down around 35%. that may have tied the fed's hands and taken that meeting off the table, which move them to december. when december came around, they had the dollar right at 50%. if they want to keep's attempt to live, i think they need to do the same thing. david: what are currency traders doing in advance of this decision t today? vincent: not a lot. [laughter] it's pretty much a coin toss. to buildnot be able consensus and to the statement a message that will carry that tone. it may just come out that exactly what most people generally expect, a pretty flat statement. amanda: i'm going to the terminal here and taking a look that all the expectations for a hike have come up recently, they are still in september looking at 26% or so. you are saying that needs to go to 50% after today's meeting? vincent: between today's meeting and the september 2020 meeting.

-- them to not shop markets shock markets, i am in the camp that they should not raise at this point. they're still a lot of questions on the table economically. if they want to sell that message that september is live with 25% or 30% of the world expecting it, and they do it, then it's a big problem. david: we are focusing on the bank of japan later in the week and we're talking about estimates package. what are you expecting their? re? vincent: the devil is in and details -- is in the details and the prime minister is not given us much in the way details. you have one expectation of down around three trillion. not only a big difference, but how the money is going to be spent. amanda: our currency traders

worried about the need to get creative on the stimulus front? run out of traditional options. vincent: the next thing that i think the boj can do is up the buying program and expanded a little further into etf space. i'm not a big fan, but they are already there. it's another step in that direction. david: there's been so much concern about the stability of italian banks. what effect does that have on the euro right now? vincent: it sits at 1.10. i think it's taking a little bit of a backseat as to what is going on with the fomc and the boj. i think we m may see it further down the road with german and french elections. that might be where the euro gets really interesting. david: we appreciate it. amanda: time now for the bloomberg business flash, a look

at the biggest business stories in the is right now. pending home sales were up just 2/10 of a percent. there is a lack of homes on the market and prices are rising. that is offsetting historically low mortgage rates. david: the owners of sound club are considering a sale that could value the company at a billion dollars. investors are exploring strategic options. they are said to be at an early stage and the company maybe against pursuing a deal. that is your business flash update. amanda: we will talk exclusively with the six flags ceo and how it dug itself out of bankruptcy. this is bloomberg. ♪ [hip hop beat]

♪olympics 2016, let me get you on my level. ♪ so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to wrestling. track and field to basketball. ♪ fencing to cycling. diving to balance beam. ♪ ♪all you have to sa♪ ♪ is, "show me," and boom it's on the screen♪

♪ from the bottom of the mat, ♪ ♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. ♪ live from bloomberg world had quarters, i am a man delaying.

david: let's start with first word news. mark: president obama will tell america why hillary clinton should succeed him in the white house. his speech comes a day after democrats formally nominated mrs. clinton as the party convened in philadelphia. the president said the choice between mrs. clinton and republican nominee donald trump is clear. president obama: what i think is scary is a president who doesn't know their stuff, and doesn't seem to have an interest in learning. what they don't know. mark: the president also said mr. trump is someone that likes donetion, and he may have this far that way. james comey warns hundreds of terrorists will seek to infiltrate western europe and the united states to carry out attacks as the islamic state is depleted in syria.

terrorist diaspora, indicating the future has already emerged in places like brussels and paris. he added the attacks will be carried out on a wider scale. in france, one of the islamic state reporters who stormed a church and killed an elderly priest was put on the terror watchlist. the associated press said he was forced to wear an electronic tag that let people track his movements. he saw and killed the two attacks. angola merkel is facing new criticism over her handling of the refugee crisis. forward tax in germany in the last week shows that her refugee prophecy -- policy is not working. none had arrived in the last year. dayal news 24 hours a powered by more than 2600 journalists and analysts in more

than 120 countries. i am mark crumpton, this is bloomberg. six flags entertainment is learning from past mistakes. sixthill mark the consecutive year they have added a new instruction to each of the parks. -- construction to each of the parks. ofn duffy is with us, ceo six flags. john: it is great to be here. amanda: let's talk about your number increase. you want or guests in the park. -- more guests in the park. where will that grow? john: we just released our second-quarter earnings, and we , 11% in revenue, 19% in even.. we are seeing a nice trend of increased attendance. that is fueled by a number of

things. one is we believe people are feeling better about coming out and spending more money. one of the things we have seen is that when they do come to the parks, they are spending more money. this has something to do with lower gas prices, more money in their pocket. maybe they feel better about the economy. we are seeing a nice pickup and park spending. sydney open a theme park in shanghai. aside from where you made those deals thus far, where you looking regionally by country? amanda: -- john: we are building a sixth park outside of north america. ,ne in dubai, two in vietnam three in china. most recently announced to parks in chongqing. we are excited about all of those opportunities, but if you

look at all of those areas, particularly the chinese market or you have a great , growingn-based population, growing disposable income, growing middle class with very few entertainment options, it is the perfect opportunity for our companies to come in and build parks. we are excited about that. david: you are looking at saudi arabia? that.we announced of we just ordered discussions with saudi arabia. because of the strength of the six flags brand across the world, we get multiple inquiries from people. we have a lot of great opportunities in the pipeline in addition to those six. amanda: one that people are watching is licensing fees, 41% increase in this quarter, 132% international. a small piece of your business, but how important is growing fast in your strategy? john: we've seen tremendous growth. we are still in the infancy

stages. .e affixed a deal we will get fees for each one of those licensing deals, and ones that park opens up, we will get even more fees associated with revenue stream. of onto that the multiple other deals in the pipeline, we think this could be just a great opportunity for us. david: there have been all of thesedavid: scare attacks. you have people going to the parks, spending money. are you worried there will be some fear or reluctance to go to a place like six flags? john: that is always a possibility. as ae look at theme parks place to escape, go out with friends and family, have a great time to escape those things they see within the world. safety is our number one priority. we make sure all of our parks are safe both to guests and

employees. we put a lot of safety features in place to make sure that they continue to be a safe environment. we have not seen any impact on attendance associated with some activities that have happened in the world. i don't expect to see that. competitorsee investing in their properties. is that behind your decision to go back to that market? john: yes, we have seen over the years where we have invested into our parks, we continue to do that. 9% of revenue back into the parks in new capital, that has been the strategy to have something new and exciting in every single park that will attract and bring people on. added to that are the virtual reality, which we sought launch recently, which has gone over very well. guests love it. we have a lot of new investments, new and exciting things in the park. we did recently take on some

additional debt used for share buyback, a robust program. we believe, i am bullish on the stock, we believe it is a great investment for us for a good return. david: do you foresee expansion in the u.s.? john: i don't really see any expansion in terms of new parks coming on board. most of the markets in the u.s. are covered. so that is one of the beauties of six flags is, we'll is a it is a great investment because it is high barriers entry. -- $4 million, $6 million in a market that already have a theme park, we don't see any expansion here in the u.s.. but with our brand and expertise to design, build and assist in the running of parks gives us great opportunity outside. amanda: is this driving up the revenue of guests or the numbers of guests?

you must get a maximum number of customers you can serve. john: is a combination of both. we have roughly around 29.5 million guests that come to our parks every year. we have additional capacity within all of our parks to continue to add that. areas like season pass and migrating people away from one-day tickets to a season pass to come multiple times has been successful. it has helped us go from 23 million in two dozen 11 up to 29.5 million, but we could take that further. we have been increasing our prices both on one day and season pass. we are in the middle innings, so we think there is great opportunity as well. there is accommodation of both the increased in attendance and per capita. amanda: thanks for being here. john duffy of six flags.

david: home values in the bay area sword. this may help buyers in san francisco. ♪

♪ you are watching bloomberg. mark: this is your local business report. here's what we are watching, stumbles for the european banks. prophetsbank some as plunge, highlights in the industry subtle -- struggle. vonnie: british consumers are cautious. they are wondering where the races are going. mark: the u.s. dollar he's

flexing, but just keeps flexing, but corporations are talking about it. we talk about the pros and cons of a strong greenback. vonnie: we begin with disappointing earnings from the european banks. deutsche bank has second-quarter profit almost wiped out, trading at the largest investment bank. and they set aside money to cut jobs. the ceo has been telling risky assets -- selling risky assets, freezing dividend payments, and losing 900,000 jobs. saw a fullsh bank 15%. they absorb cost from closing jobs and cutting in the home market. tells us they will focus on u.s. operations. >> the u.s. is strategic for us. we can help in the u.s., and given our processing in america

and europe, there is lots of trade flows between u.s. and these economies. we cannot accomplish individuals in the u.s.. mark: consumers turned cautious after the country voted to leave the european union. retail sales in the u.k. fell in july at the fastest pace in more than four years. stores expected similar decline next month. on the positive side, sales were better than expected at the biggest luxury goods maker. the wine and spirits business was up 13% in the second quarter. goodsmh's leather rose. nintendo posted us that -- bigger than expected quarterly loss. it has been helped by a stronger yen and the we you gaming console -- wii u gaming console.

they had a runaway success with pokemon go, but it is wondering how much nintendo will benefit from it. mercedes-benz is challenging tesla motors with a promise to sell an electric truck in about five years. the. company says the heavy-duty truck will have 120 miles per battery charge. elon musk says this is part of a one of expansion in the master plan he unveiled last week. vonnie: time for the bloomberg quick take. we will look at issues of interest. dollar.ty u.s. other countries are driving currency down and making goods more competitive on the world market. the u.s. stands out as the one nation that prefers is money superpower strong. it is a mixed blessing. they put the greenback against six major currencies.

2014 to 2015,om and the move to higher interest rates is making it more attractive. major corporations have blamed the dollar strength for printing profits. andry goods, automakers, the yellow space. the u.s. economy became the largest in the 1870's, but the british pound held on is the dominant currency. the preeminence became official in 1945, becoming the standard exchange rate. the economy strengthened, so did the dollar. it was dominant, used by countries to pay international debt. the crisis in 2008 strengthened the dollar as there was sanctity in u.s. debt. the rise in the greenback has made it tougher for the federal reserve to raise interest rates with janet yellen saying it has

harmed u.s. manufacturing and exports. the problem is, there is no good solution. as the european central bank and japan by bonds to stimulate their liking economies, there could be more money into the u.s. and i quick more at on the bloomberg. k on the bloomberg. ♪

♪ [please stand by] ♪ global refining markets continue to have lower estimates as inventory glut could turns into a product glut. it is a concern for middle oil companies and the market. alix steel asked the goldman sachs head of research curry

about supply and demand issues. >> think about the context of the global market. we have seen a build in the east coast oil, but when you look at the context of the global market , look at the context of draws of crude inventory in canada, nigeria, saudi arabia. we estimate in the second quarter we have upwards of 35 million barrels of crude oil inventories drawing down. when you look at the global in thes, it is a shift surplus from crude to products, but also accrue shift in the deficit around the world. if you look at the broader picture, it has not changed much. asx: we will get finer cuts they go into maintenance in the fall. i am seeing run cuts in asia based on using crude, and then the inventory builds up. what is the risk profile? >> your risk of having containment issues, meaning when you blow out storage prices in

october -- but look again at the context of the global market. we have lost a lot of supply out of nigeria. we had supply disruptions out of canada. we had lost supply out of venezuela. put that into the context of weak demand in china and india. the position does not change much. and you have the question, what caused the decline in prices down to $42 a barrel? because fundamentals are not distinct right now, the market is trading off the dollar. you can paint a picture of the dollar and oil prices going back to june 1 trading lockstep. the fundamental picture in commodity is not given much direction. alix: something i have been wanting is the time spread of dubai from one to two months, and now prices are much lower for the two-month prices, and that is due to the oversupply. the reason i mentioned the dubai spread is that has reference in asian demand to read are you

worried about asian demand as referenced in that quote? >> it is slow whether you look at the most recent number -- give an idea of how the biggest is, the numbers in india were 600,000 barrels per day quote, but it came in at around 250,000. that is a big price to the downside. china is slowing given the stimulus is beginning to back off. we have seen weakness in demand in asia. setting that situation in nigeria, worse today than any other point -- alix: no credit in the market right now. >> what i think goes on, the oil price is trading off of the dollar right now lockstep. dollar is strengthening, doyle price is going down. so we focus on the bearish news. price is higher, we focus on the bullish news. to make a bullish case, i can also make a bearish case.

the passionate bulls in the market have backed away. the passionate bears have backed away. and thearket fundamentals are not going to be significant. $45 to $50 for range of oil. maybe the boj stimulus over from japan as well will come out. will you revise the downside range? >> you have to look at the fomc. do they come up a more dovish or hawkish standard? the modestly accommodative language in the second paragraph? if they do, you can go back up to $45 or $50. we look at all of the risk and relatively balanced. i don't want to take a real strong view on what is going on in that fight refining market, because it means a shuffling of inventories versus a distinct shift in fundamentals.

amanda: that was jeff carried from goldman sachs. he spoke earlier on "bloomberg ." just over an hour until the interest rates decision. look at where stocks are trading ahead of the announcement. we have seen stocks move off the lows of the session. the nasdaq is still positive. that is driven by the 6% crude higher, the heaviest weighted stocks. the biggest five are negative. david: the odds of a future rate hike happening today very slim. looking at wirp, very small. i have some charts going back basically to the last time when we got the may numbers. see how the odds of that hike happening into plan -- july to september, a little editorializing. a lot of people say that was phenomenal.

the brexit vote of course at the end of june, june 23, we saw a real decline. goingg at w.a.r. peak now, the odds of one happening or 27.8%. rotationhere is the x -- expectation, they've got to get those odds up to 50 by september. david: i imagine we would hear more from that. amanda: the managing expectations. there is more than one. i want to bring up a chart, putting the size of the balance sheet over the bed and some context. the bank of japan had a two day meeting ending on friday. take a look. that is the fed holding u.s. debt on its balance sheet. compare that to the bank of japan. the bank of japan owns the majority of the country's treasury. i can shut that market down, it

had to get creative in terms of if it wants to expand that balance sheet. we are not talking about buying stocks. in terms of what the fed can do, it has leveled that off. it is one aspect of the so-called shadow funding rate. rates have gone up 3% from -3% to 0%. we have already seen a move from the fed. david: i will have to keep watching this. there could be additional stimulus. not sure what that will look like. this was described as $20 billion, pretty sizable. you will see what happens with the fed and the bank of japan later this week on friday. we have special coverage of the central bank decision. television and radio, scarlet fu, tom keene, and john legen call are looking at this -- joe weisenthal are looking at this. jeff rosenberg will be on as well from minneapolis. the currency expert as well.

it is one hour from now on bloomberg television. ♪

david: welcome to bloomberg markets. ♪

david: from bloomberg world headquarters, i am david gura. lang.: i am amanda we are covering stories from washington, toronto, and beyond. here is what we are watching. the federal announce its decision on interest rates. much investors will do what they do every year, which is nothing. there could be a possible rate hike in september. david: shares of apple's soaring today. concerned about growth with news of the iphone as the sun better than the second. -- iphone se selling better than the second. we break down the results. david: we await that statement from the equus building. let's turn to julie hyman. julie: in advance of hearing

from the fed and the commentary, we are not seeing much decisiveness being expressed, which is not unusual. on said days, before the decision and the statement even if no decision is expected, he sort of have a little bit of a range if you will. that is what we are seeing. the dow trading lower, the s&p off a quarter percent. the nasdaq is the winner, up 0.3%, on the strength of apple numbers. we will discuss that later. let's talk about declines we are seeing, the pressure we are feeling. we are watching that big beer deal that may not happen. according to bloomberg news reporting, a person familiar with the situation says sabmiller management has ordered police to seek integration efforts with anheuser-busch operations. fall, seeing those stocks and they had been set to receive the remaining stake in its joint venture with smb miller --

sabmiller. we are watching health stocks. wyndham worldwide out with numbers that missed estimates of forecast. hilton cutting its forecast, and hyatt being caught in the downdraft. and the french hotel company also out with numbers mixed. oil rises putting -- prices rooting mixes. below $42 aumble barrel after this unexpected build in the weekly inventory number. hess cutting its production number. we have other technology earnings aside from apple. many clients have been providing their own internet networking service, internet traffic services also that is taking a toll on its numbers. juniper as well, and twitter again that once again disappointing with a sales

forecast. stocks treading water ahead of that decision. , what are theeek effects of the dollar? bloomberg dollar index, we see a lot of volatility. overall during this time, a quarter percent gain. in today's session, a lot of that coming from a decline in that japanese yen. that is with speculation about the stimulus. you can see the dollar reacting not as much to what we may hear from the fed, but what we are seeing other central banks do and speculation about what they may do. david: thank you. amanda: let's check in on first word news this afternoon. mark crumpton joins us with more. mark: the democratic national convention was formed to last fall, the computer network was susceptible to attack but not the security advice was given. that is according to people familiar with the matter. they found thousands of e-mails

that had instructed the convention and led to the resignation of debbie wasserman schultz. president obama will tell the nation tonight why hillary clinton should be the next president of the united states. mr. obama will deliver the keynote speech in prime time for day three of the democrats convention. he is hoping to cement his legacy by having a fellow democrat succeed him. donald trump lit into the president at a press conference in florida. donald trump: i think president obama has been the most ignorant resident in our history. he has been a disaster as a president. he held me down as one of the that he will go down as the worst presidents in the history. it is a mess. mark: vice president biden and senator tim kaine of virginia will speak tonight. theresa may is trying to lay the groundwork for the u.k.'s post brexit relationship with the

european union. they spoke with matteo renzi. she says she will be responsive to u.k. voters wishes to restrict the free movement of eu citizens to britain. theresa may: he had a clear message in the brexit vote that we wanted to bring in some structural -- some control on movement from the european union into the u.k. to as they have done in the past. and we will deliver on that. may saysme minister she is not wedded to any together model of the uk's trading relationship with the eu. the man who shot president ronald reagan and three others in 1981 will be released from a government psychiatric hospital. he -- a judge of rules he does -- pose a threat to himself or others. he will live with his mother in williamsburg, virginia, but they both be subject to treatment and

monitoring up to 18 months. global news 24 hours a day part by more than 2600 or less than analysts in more than 100 20 countries. this is bloomberg. david: shares of apple are on the rise, up 6%. they lowered cost of the iphone as the, gaining more traction than expected. we have john butler who joins us in new york. good to see you. john: thanks for having me. david: we were talking yesterday about the news and the degradations of good news or bad news. >> tesla has redefined the auto industry by proving to play the role in autos that apple played in computers. they have all this cash and cash flow, why couldn't they have gotten to cars earlier? you want to review crescent company -- impressive company,

that is not the time to do it now. i was curious about sales declining, two quarters in a row. it is that news, he says. maybe not what investors were expecting, but generally bad news in his opinion. what is your read? john: it was a mixed quarter time -- friday. they hit its peak. and the concern is that we are beginning to see that very slow ride down. whether or not that is true, it remains to be seen. but the reality is there is a lot of concern surrounding the iphone. when i think apple failed last night, they had the opportunity to talk about their future, to talk about what they are working on, and we did not hear any mention of virtual reality. we heard very little on artificial intelligence, digital insistence like amazon's alexa. these are places amazon should

be looking at -- apple should be looking at. i am not hearing it yet. amanda: building on concerns apple may transfer from high-growth company to of value slow growth company, there is the deterioration in the quarter ahead. a bright but would be the sales of the lower cost se, stronger than expected. but that drop off, how worried are we about that? is that inevitable? john: longer-term, the margins are a bit of a concern. but i would not want to read anything into it. you and i probably both saw the ads for by one iphone, get one free at at&t or sprint. that is working down channel inventory. that process was last quarter. it is all done now. that is behind us. it is ad to the se,

lower-priced phone, lower margin because it is new, but i bet they get that up to the corporate average. less of a concern longer-term. david: we are still talking about the iphone cycle to replace -- we are talking about apple's desire to move more towards software, and yes, around andrter rolls they focus on the phones in the next front coming out. john: that is my concern for apple. we are not during about the future, what is next. we are not even during hints about it. so as i look at apple, they need a sequel to the iphone. they need it badly, and they need it now. we might see the watch play that role. clock, theat the ipad should have had better legs. david: it has to be hardware? john: it could be virtual reality, a digital home assistant. i only said it should be content or software, really.

amanda: we had analysts saying apple had peach. -- peaked. the selloff is overdone. but the big question for apple -- been, kennedy without it can it be what it was without steve jobs? john: i have been concerned for a while in the sense that tim cook came on at apple at the right time. he is a logistics guy. he is a genius in that regard. the apple iphone was going straight north and volumes were building. so they really need to manage the supply chain. does he take apple where needs to be? there is a lot of questions around that? david: we have seen them focus on china, a less expensive smartphone to get into the chinese market more fully. does that stand up to reap a lot

of rewards? john: i think product line expansions are the right way to go. globally, you are expanding where the incomes are lower than they are in the developed world. if you are selling a premium priced smartphone, is that the , supplementingh the growth drop off we have seen in developed nations? i am not so sure. i personally think they ought to ,e pushing into new services content, hardware categories. again and again, the question is asked with very little answers from apple. amanda: senior analyst, thank you. up, we raised the forecast for the third time after a strong report. the stock surge may be an appeal to a younger customer base. the mystery stock coming up. ♪

amanda: you are watching bloomberg markets. david: it is time to go to the markets desk. we have the mystery stock. a healthier beat is nothing new to today's pick, which raised the forecast for a third time in the row after a strong surge. this may be an appeal to a younger customer base. julie: you have a heartbeat here. david: something pharmaceutical? julie: it is not a household name. this was written by peter j harris. he received one of the product. it is edwards life sciences,

which makes the house that are -- aortic valves that are implanted without open-heart surgery. the company is raising his forecast for the third time this year. you can see the stock is performing quite well this year. the shares are 47%. and they are surging again today. is calledest valve the safety in three, reducing a broader group of patients with suffer a stroke. alternative to open-heart surgery. it is fueling demand for this company's product. shares were up 7%. one of my favorite things is it is easy to remember on the ticker. that is one of the companies we are easy seeing rise. david: julie hyman, thank you. amanda: canada's largest residential landlord has a shortage of sellers. this is the single most shortage

company in north america. let's go to toronto. great to see you, mark. let's start up with what the company is saying. mark: good to see you as well. this is from the real estate reporter catherine. she spoke to the president of boardwalk real estate. we have been talking to investors for about a year about the short position, and operationally, it does not affect us. we are not worried about 37% short position on the outstanding shares. be mostlyumed to hedge funds. a few years now, we have seen this targeting various canadian companies that are related to the housing sector. boardwalk real estate investment , apartment0% units units in alberta, 70% net operating comes from there. so the perception is that housing prices are in a bubble

in canada. you have overleveraged consumers, the canadian dollar under some pressure, oil prices under pressure. and actually, i should add that forhave got vacancy rates the company. they are not that bad. and calgary, one of the bigger cities, 4.8%. the company is defending itself, saying it is not justified and their fundamentals are fine. david: the counter argument, what is it? mark: one of the largest shareholders in boardwalk is sentry investments, and michael is a portfolio manager over there. he says this does not make sense. on defense in levels are fine. -- occupancy levels are fine. alberta had a difficult time because of a downturn in energy. or theyjob losses then

say what they were then are double what they are now. it should peak around 8% and stay there. this is not nearly as depressed as it was in the early 1980's. that is one thing to point to. maybe the short sellers have this wrong. amanda: thank you so much. that is mark wind mtv canada. david: coming up more on the fed as it approaches the meeting, the decision on interest rates, we are tracking that closely. we hear from stephen friedman. that is coming up. ♪

♪ marketshis is bloomberg , i am david gura. amanda: the federal reserve bank will announce his decision on

interest rates. there is no chance of a hike today, but the chief investment strategist stephen freeman says the economy keeps growing even at a sluggish rise -- pace. september is likely. he spoke with cory johnson. >> thank you so much. we welcome everybody on bloomberg tv. from friedman is with us, investment partners here in the new york studio. let's talk about the fed. coming in, he said it was like a snoozer today. >> i don't expect very much from the fed today. i think they have to be happy with how the economy has performed in the second quarter, but they are concerned about downside risks, weak corporate earnings, low expectations, not much of an advantage at this time. cory: some of the concerns were for example brexit. we spoke with corporate earnings, which is not happening

, that cause of apple. -- pod's of apple. they predicted a pause in iphone sales. that was not the case. we spoke to british companies who are getting more money spent because people are looking for deals. so people wonder as we start to evaporate, the fed has left to worry about. is a sense of it a relief compared to june. it is very strong consumer pickup, but even beyond brexit, the global outlook is not particularly strong. they are very aware at this point in time if the economy does weaken, they don't have good policy at their disposal. >> the global economic environment is not their mandate. it is for the united states. when do they go door it will always be macro. we do they just go look at the domestic market? steve: the momentum could be

decision -- sustained, we could get a raise in rates. if it is september and it is ,till chugging below the trend there are signs that inflation is rising, i would expect them to raise rates in september. >> even with elections? steve: generally i am not concerned with that. this is a different type of election, and the fed does think with a risk management framework. if they are concerned about election outcomes, that could give them reason to pause and wait until september. cory: so you are saying it is not that the fed is worried about the propriety of affecting the election outcome, but they volatility about the that this election, the old reference to donald trump and the ever-changing policies, telling the russians they should [indiscernible]

which is unusual from a major presidential candidate. does that volatility change the fed? think it does. the risk management is concerned about outcomes that can lead to economic uncertainty. if there is not a clear case for raising rates, it is another factor they would take under consideration. if we get to september and the economy is doing well, that i would be less concerned about the election laying a role. >> do you think the economy will seem different? steve: there is a good chance we will see a type of momentum, we could see growth in q3 around raisenough to gradually inflation, eat away at labor market slack. we get that type of outcome, and again we have to think about the election outcome. we have to see what the polls are saying in september. cory: bank of japan, what is your take? a new noveluld see

thing for policymakers in japan. it is not just about the bank of japan but fiscal authority as well. they are aware that while the economy needs stimulus, fiscal policy alone cannot do it. fiscal numbers in japan, if you have a fiscal stimulus program, households like to save the money. they know taxes will have to go up in the future to pay for stimulus. the way around is to show a close coordination between monetary and fiscal authority, make it look like a helicopter drop, even if no one called it that. you can create that perception. expectionsk -- chalk . make consumers feel more comfortable. cory: so is it different messaging? it is showing coordination. we are not seeing information out of japan today about the stimulus package. that is one way you show closer coordination. announcement around the same time, a joint statement. it look likee

monetary financing even if you don't call it that. >> that could be forgiven to? steve: there is no reason to do that. it is permanently on the central bank. >> thank you so much. senior investment strategist of bnp paribas. back to you. david: thank you. amanda: a look at the credit markets ahead. mark cecil. ♪

♪ you're watching "bloomberg markets." david: mark crumpton has more

from our newsroom. president obama tonight little to hillary clinton cut his one-time rival, should succeed him. his primetime address at the democratic national convention will seek to convince skeptical voters including some democrats that mrs. clinton is trustworthy, prepared, and ready to lead. it is a far cry from eight years ago when their campaign for the democratic nomination was at times a bitter. also scheduled to speak, vice president biden and virginia senator tim kaine. prosecutors's have dropped the remaining charges against baltimore police officers in the death of freddie gray come a black man was critically injured in the back of a police van in april of 2015. the decision comes after a judge has army acquitted three of the six officers charged in the case including the driver and another officer who was the highest-ranking of the group. a new report says shooting deaths of law-enforcement enforcement officers as byte 78%

in the first half of 2016 compared to last year. the national law enforcement officers memorial fund says 32 officers died in firearms related incidents so far this year including 14 were killed in ambush-style attacks. the data shows the deaths are still lower than a wording previous decades like the 1970's. british lawmakers are warning the brexit vote would lead to a spike in immigration. that is according to a report by the house of commons panel. it says that previous attempts to tighten immigration rules have led to a surge of immigrants. the u.k. vote to be the european union has raised the prospect of limits on eu nationals wanting to move there. global news 24 hours a day powered by more than 2600 journalists and analysts and more than 120 countries. i am mark crumpton, this is bloomberg. that to you. amanda: analyst do not expect the federal reserve to raise rates but markets may care more

about revisions to the economic forecast or the forward policy guidance. here to discuss trends and other factors important to the decision is marc gasol. great to have you with us. seeing we're not excitations were great hike anytime soon. i want your bet on when the fed does move. >> we think they will potentially move once this year. either zero or one times this year. there is reason to believe the fed can move this year, if you look at the domestic economy, you have added 2.4 million jobs. wages of 3.6%. services, inflation in the u.s. is now 3.2%. brexit really is not all that impeccable for the u.s. economy and if you look at the second quarter numbers you will see real consumer spending growth of 4%.

basically the consumer, which is 70% of the economy, is doing well. the global factors in brexit are keeping the fed on the sidelines. david: i want to put up a couple charts, and i will describe them. looking at brexit as that pivotal moment, maybe not as pivotal as we initially thought, but looking at high-yield returns they were investing high-yield consumer returns pre-brexit come in and we saw a reversal after the june 23 vote. high-yield consumer edging past regular high-heeled. when you look at the consumer sector, do you worry it is getting too crowded because two evaluations at this point? mark: no. if you look at corporate bonds, they are still relatively attractive. we are in a situation right now which is really unprecedented. you have 11 trillion government bonds at negative yields and have over 80% of japan and german government bonds at

negative yields. investors are going to corporate bonds. you can still earn 3% to 6%, that is not what you could thought we can earn at the beginning of the year but it is still decent. within the high-yield market, we are definitely favoring the consumer. early in the year we were buying energy at the lows in january and february. now we are starting to rotate out of some of those more risky energy names into consumer come into sink -- into sectors like gaming, telecom, powers of health care where fundamentals are robust. these companies are doing well, a lot of free cash flow. there organically de-levering because the fundamentals are that strong. we still think in high-yield you can earn 5%, six resent in consumer related names and relative to government bonds that is actually very attractive. amanda: it is a lot lower than you could have gotten not that long ago. what parts of the market you find her likely to be the most protected as rates normalize? eventuallye fed

raises rates, you will likely see corporate bond spreads tightened. deadly the fed is raising rates because the economy can handle it. we think 2% real, 4% nominal. the default should only be about 2%. in that environment where the consumer is still doing well, we think that these housing related areas will do quite well. we are very favorable towards building materials. we like nonagency mortgages a great deal. combinedng home prices with rising rages and job growth, we are averaging literally 200,000 jobs a month. the housing market still looks very good. the overall economy, we are in the second half of the economic expansion. several of these sectors like housing are more midcycle. there's still room for growth in those areas. david: i wonder if the pharmaceutical sector is something you are taking a look at right now. mark: we are.

it has come under significant pressure, particularly and no pharmaceutical. but one of the things we like about health care overall is the demographics. as people age they will spend more of their discretionary spending on health care. what is important about these businesses is that they throw off significant free cash flow. you have very high margins, very robust free cash flow which can be used to pay debt down. over time these are actual companies that can organically d lever the balance sheet spirit we like that, and we like the tailwinds of the aging demographics, and also barriers to entry. a lot of these companies have very strong patents and also growth in terms of no -- new development down the road. we like hospitals, we like medical device companies. amanda: the you expect the fed to do or imply it will do anything with this balance sheet anytime soon in terms of normalizing their? -- there?

mark: it is unlikely. the first step will be raising rates again. right now the market is pricing in 25% chance of september, 25% chance the end of december. basically 50-50. slant a little bit towards them going more than what the market is pricing simply because women look at the domestic factors, you look at the consumer, they should be raising rates relatively soon. pets arely we think very attractive. if you get 10 year breakeven is on its the inflation rate is 1.4%. service inflation is up 3.2%. we think tips are very attractive in the market right now. we were few minutes ago talking about the earnings report from deutsche bank earlier today. live her concerns about that bank, other banks in europe in italy especially. when you look at junior -- ofties of union being

european banks, do you see anything attractive there? david: u.s. -- u.s. banks, u.k. banks and swiss banks. our philosophy is simple. we are looking for where capital's highest and most robust. we are looking for the strongest asset quality. and organic profitability. one thing about u.s. banks, which is why we are favoring u.s. over europe, is you're looking at the big four -- jpmorgan, city, wells fargo and bank of america. they will make up to $25 billion. the interest margins of 2.4% to 3%. they make so much money that unless you have a significant housing correction they will organically build capital overtime. tier one capital ratios in u.s. banks have doubled in six years. because of much lower profitability in europe and much weaker capital, you cannot grow capital organically near as fast

as in the u.s. and is why we're favoring u.s. markets. go back insideto the bloomberg terminal a look at the lending rates. it is external factors that are driving negative rates and other countries. what you think is going to happen from the bank of japan on friday and how much these days are you watching everybody else? mark: i think that is a great point. the u.s. rates are clearly being driven by what is happening overseas. next week you'll likely see the bank of england cut rates 25 points. you also likely see the ecb expand the deadline for qe from 227 17017 to september and accordingly the bank of japan, which just mentioned, will be friday and we will likely see more qe, more asset purchases, and we could even see a rate cut. right now it is priced and is 8 .80 market.

that will be combined with the fiscal stimulus measure. there are rumors that is could be as high as $28 trillion. the reality it is probably $13 trillion, half of which is direct spending into the economy. loans,ll be subsidized and other loan guarantees. with us, nation can be powerful. where the interesting things i noted this morning was announced that they will try to increase minimum wage by 3%. way to get the consumer online in japan, you have to increase their wages. all in all this could actually be somewhat stimulative and help the global economy. we had ant last week economist on talking of the world -- the role politics is playing in the economy. downplay the effect it might have on decisions rid large. as we inch closer to november, how much risk you see their in the outcome in the election? mark: the word of this year is

uncertainty. all investors have been humbled on this. thathing that is clear is with both candidates, clinton and trump, we will likely see more fiscal expansion. that is something that will go through. i think the fed will so focus on what is happening enough so much the election. it is not as big of a deal. what they're really focusing on is they want to see inflation at 2% and they have confidence it will move above 2%. the want to see a stable dollar, more weight growth. where a lot of those factors are really set in play right now. we could see a fed move by the end of year. amanda: great to have you with us. mark: thank you. coverage ofave full this afternoon's decision on both television and radio. it starts at 2:00 p.m. eastern and as coming up. we'll have jeff rosenberg. gordie howeert jens

probably spirit it kicks off at 2:00 p.m. the on bloomberg television. coming up will be talking with the cfo of t-mobile usa. this is bloomberg. ♪

♪ t-mobile topped estimates in the second quarter in raised two-year outlook for subscriber growth. the wireless carrier did not had one million new postpaid customers. joining us now is emily chang, she is in san francisco.

emily: thank you so much for joining us. overall another strong quarter when it comes to revenue, subscribers, profit. what does the runway for growth look like in the second half of the year and beyond? guest: such a pleasure to be on. this was another incredible quarter for t-mobile. first i want to point out we captured 100% of the growth in in thetpaid voice market united states in the first quarter. it is our 13th quarter in a row of adding over one million additions on. actually put on 1.9 million. and the 13th quarter in a row where we recorded positively against every major u.s. carrier. it has been an incredible growth story. the momentum continues, the outlook is rosy. one other highlight of this quarter was record low turn. customer retention.

customers are flocking to us and we are keeping them come emily. them, emily. that streak ended. what probe he cycle? sprints half up pricing, free pizza and frosty's come are those not working? everything is working very well and our momentum significantly continues. on a macroe seeing basis in the wireless industry is lower overall switching among carriers. t-mobile all and reported lower turn and that is not as many people out making the decision. what drives that is iconic handset launches. we do have a significant one coming up with the apple iphone. does a recovering sprint

threaten t-mobile's underdog favorite status that you been writing on the last couple years? -- riding on for the last couple years? braxton: sprint doing well or poorly has nothing to do with the momentum of t-mobile. all of our growth is based first ef all on the fastest 4g lt network in the country. we put over $20 billion over the last four years. if you have not tried a slightly, you have not tried us. we have one incredible network that is highly differentiated against all the other carriers. that is the foundation. of our vast majority consumers are primarily coming from at&t and verizon and sprint, just due to their relative size of the marketplace, does not make much of a difference to us either way. emily: interesting.

verizon, the market leader, made a big deal this week. they are building out. the goal is to build up mobile video in advertising. are they getting ahead of the curve or are they taking their eye off the ball? they certainly have a strategy they are aggressively pursuing. congratulations to them on another acquisition. i think this now totals $10 billion in acquisition in the states. we are totally focused on wireless. we are completely focused on providing mobility as the internet goes completely mobile. the you just see the most in phenomena with pokemon go? that is just a taste of what is to come. and that why our focus on mobility and being the fastest growing company in america and wireless is so important. emily: you're giving away free data just for pokemon go users.

this, on top of the other promotions. how can you continue to a for this? -- to afford this? braxton: is incredible. what a marketing differentiation, to take something that will change the landscape, the mobility and the integrated -- and innovation that pokemon go presented to the u.s. consumer is amazing. but from a financial perspective , that is the other part of our story. at the tremendous growth statistics that we just went over, and another one over three years a while -- three years i row where the only carrier who has grown in post made in prepaid, but all that is translating into incredible financial performance. our total revenue was up 12.8% year-over-year. he without was up over 35% year-over-year. we are very solidly profitable with a nice speed against

consensus with earnings-per-share. very highly ramping cash flow coming out of the company. we could not be more pleased with the financial results of the company. the foundations in network and on top that we apply explicitly -- extremely innovative marketing, being different from all the other national carriers. been athere has noticeable slowdown in subscriber growth across the industry. do you think in the second half of the year with the iphone seven coming outcome of the new devices coming outcome of will that change things? braxton: phones are fashion today. when something iconic comes out, it definitely drives people making a decision. because these are very expensive devices. one of the innovations we drove into the marketplace was transparency of the true cost of these very high-end smartphones. what happens is when a new model

comes out, people want that. then they look at the landscape and you want to save money? you want the most innovative company america? you come to t-mobile. we are very much looking forward to the iphone launched and the other launches out there. samsung out the has been an incredible success with the latest iteration. a tremendous amount of really positive things that we have seen in the future from the handset lineup standpoint. emily: 5g is shaping up globally. what is your view on that? ,e think we could see it 2020 does that sound reasonable in what is your plan for 5g? braxton: that is absolutely reasonable. we are at the forefront of testing 5g. we have the fastest 4g lte network in the country. we are way ahead of the pack on

technology, like voice over lte. very far ahead of all the competition. already doing trials in working with the whole ecosystem , be it handset manufacturers, increment manufacturers, participating in the definition of the global standards for what will become 5g, and we are very excited about the future. emily: thank you so much for joining us. david, back to you. david: you can catch more on t-mobile's earnings tonight at 6:00 p.m. eastern, 3:00 p.m. pacific. amanda: special coverage of the federal bank decision on both television and radio. breaking down the rate decision with a roundtable with great guests.

that is coming up right now. you are watching bloomberg. ♪

>> welcome to a special report. ♪ >> from bloomberg word headquarters, i'm scarlet fu. where minutes away from the july decision where the federal reserve is expected to leave interest rates unchanged. it's around the table to and get first thoughts here on this momentous decision. >> you're going to try to make a live meeting? it is a dead meeting. i do not buy it.

i think they can surprise was a wants in language here. i want to get first thoughts here before we go to that. to me it is about september 21. it seems pretty clear they're not going to raise rates, nobody thinks there's any real possibility of that. but how they view the outlook, how they see the international situation, how they see -- it has clearly been a run of improving u.s. data on all the things they view as important. i think it is still fairly unclear. live in a sense they will be a lot of interesting stuff in terms of how they see the rest to the outlook. scarlet: we'll be going through all the words in paragraphs. i think it will be a snoozer. the boj is what you want to watch. --y may have put the ball when he announced plans for the fiscal package. no details of course but the pressure is probably on the boj to deliver some kind of stimulus

on thursday night/friday morning. tom: i'm still their u.s. centric. -- just the drop in oil continues the trend of one of the core commodities of a nation. this oil dropped 18% down from peak? does that play into discussion? joe: a could go back to 2011 when oil was surging and bernanke was wise enough to see through that and he used transitory and people made fun of him. what of course he was completely right. i do not see any particularly reason why cannot -- tom: as we do across all of our various shows, we were green, we are not now. it little nervous. us that i'mse of here at the crack of 7:00 a.m., you're looking at 157, 153.

oil under $42 a barrel. a little bit of flattening, that nervousness in the market. to your point on yen, earlier this morning was a major story. a good set of guests today. jeffrey rosenberg with us quickly before the meeting. you and i talked this morning. i guess the simple idea here is will there be language the statement that dries the discussion forward? jeff: yes. the economic data has an better so we look for the fed to it knowledge that. the fed acknowledging that the data is getting better will keep that narrative in the markets i spirit you talked about the boj going the opposite direction, this might come out at the end of diverges. a bit that is a battle to the dollar in the currencies. does it mean your --

does mean lower yields of the u.s. making the fed job difficult? jeff: the big expectation around the boj is what do they do and we certainly had support in terms of the flow of assets from japan into the u.s.. it makes the job a little bit sense, but in some it makes financial markets more uncertain because we're not exactly certain where along the yield curve that impact will fall. joe: we have seen strengthening in the dollar lately i have a chart here shortly bloomberg dollar index rising a lot since it bottomed in early may. how much does that affect how the fed sees things going forward? the: it is a big part of story. and i will be dollar is responding to is the shift in the fed's rhetoric, strengthening of u.s. data, easing of concern as rent brexit which is brought the fed back into play and brought divergence back in the story. visit limited how far they can go because you are seeing some

of that dollar commodity price risk show up again. the dollar appears to be leading but we have to watch that. scarlet: limit is a good keyword here. at of that we're looking at stocks, and a little changed. the dow off by -- no commit is unchanged. : no change in policy, no change in rates, only a few changes in economic assessment. activityn of economic overseas or the dollar and no timeframe for future action. if you're feeling hawkish there is this. thattement noting near-term risks to the economic outlook has done it. -- has diminished. more favorable and investors may take that if they want to as a sign september could be a live meeting. as far as the assessment, the fence is specifically that the labor market has strengthened, noting with a call strong job