david: good afternoon. vonnie: we are covering stories from san francisco, chicago and new york today. david: an exclusive interview with alan greenspan. what he is most worried about following the fed decision yesterday not to raise rates. vonnie: groupon shares surging by the most in five months. we will hear from the ceo. david: they four of the dnc. hillary clinton will accept the party's nomination tonight. markets close in about two hours. julie: stocks were trading a bit

lower, now trading a bit higher. there hasn't been much movement overall in today's session. there hasn't been much movement lately on a daily basis as investors have shifted their attention to individual stocks and earning stories. the dow is off about 41 points. earlier, it was down by 60. the nasdaq back in the green after briefly dipping into the red bi. the s&p 500 has gone largely nowhere, only up about one point. not a very big range. last week onrecord the s&p 500 and have been drifting along. in addition to earnings, we have a decent amount of dealnews to talk about today. oracle by netsuite 45 $.3 billion, acquiring the cloud $5.3 billion.

acquiring a company that he controls separately. yet another development in the big beer deal. shareholders have signaled that they favor the deal from ab inbev. the idea that these major shareholder support the deal giving more credence to the idea that perhaps it is going forward after all. also watching the drugmakers today. astros and a cover reported its earnings today. -- astrazeneca. the ceo said the pipeline of products could attract buyers come opening the door to a potential deal.

u.s.ng up 8% in the e has been a frequent target of takeover chatter or speculation. it is a sector security stock and those have been in focus in recent days with the hacking of the e-mails of the dnc. if you did a word search on over theand fireeye last year, you would find it very frequently. vonnie: let's check in on the first word news this afternoon. hillary clinton will take center stage tonight, hoping to convince americans that she is the person best qualified to run the country. the former u.s. secretary of state and former u.s. senator will make history, becoming the first woman in american history to receive the presidential nomination of a major political party.

as is clinton will be introduced by her daughter, chelsea. donald is dismissing heavy democratic criticism as "mostly false stuff." the interview was released after russia toencouraged make public missing e-mails deleted by hillary clinton. syriaader of serious that -- the leader of syria's front levant renamed the conquest group. forced the cancellation of part of the torch celebrations that prompting police to disperse the crowd. 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. news, sharesrnings of groupon surging the most since february. the ceo is looking to transition the company from a daily deal e-mail provider to a destination for bargains. congratulations on the quarter. what is left in the restructuring plan? rich: thank you for having me. there's a lot of work left for us to do over all. our approach has been pretty simple going in, we have four key priorities, focused on growing our customer base and streamlining and simple fighting the business, improving our

shopping margins and improving the customer experience. they are basic things that will take real-time to flush out -- flesh out and we are pleased with our progress today. we've seen in the company's performance, some of that progress starting to take hold and move on. david: so much of this can be attributed to the marketing plan you put in place. what will your spend be next year? rich: our focus is on getting toough 2016, continuing we arehe customers -- about eight months into our initiative to really ramp that up. we still have some time to go, sometime to watch. getting those customers into a healthy buying pattern before we

think about what we are going to do when 2017 comes by. still looking to have 9000 employees. rich: we are at 8600 employees. vonnie: they continue to look for deals every single day and form partnerships with his nurses desk with businesses. -- form partnerships with businesses. at our core, we are a technology company. we have product managers, product developers and software engineers and thousands of who are sales folks who connect with merchants around the world. we craft offers for them to live on her platform. david: you've been making your focus more on the u.s.

is there something about your model that does not work internationally? rich: at the core of our , the focusxercise has been an important piece of our progress over the last eight months. makeimportant for us to sure we are operating in countries where we think we can win, where we have an opportunity to tap into the benefits of local long-term. days, we expended very quickly into 48 countries in what was known largely as a big landgrab and ultimately, we moved into some places where we felt we either were not in a winning position or winning was not going to be material to unlocking long-term shareholder value. we have found strategic exits and opportunities, or we have exited the country overall.

vonnie: the shares did surge, but you are still trading under five dollars a share or so. bloomberg,est on my it is up around 12%. does that concern you at all? rich: what we are focused on more than anything is building a great company, that we are executing against our strategy and delivering great value for customers. i don't get wrapped up too much in the short interest because ultimately, folks betting against our ability to execute and deliver results from our goal is to deliver results. will focus on providing value for our customers and building a great business. david: what these a few investors who are worried about -- what do you say to those investors who are worried about profitability?

our investors are interested in seeing us unlock the growth engine in our company. we can generate significant profits, even today while we are entering into a significant investment cycle. we are on a good solid track to continue to generate free cash flow over time. folks have wanted to see us unlock growth potential in the company and tap into that potential and local overall. that is our focus right now, getting that machine back up and running and doing things that long-term set up the organization to be more scalable, more sustainable and ultimately profitable over the long-term. sites: so many daily deal -- do youthe way of

diversify your income stream? rich: there is a moat around groupon. we know the daily deals business really well. , we areentioned transforming this company and we have been in a marketplace transformation for a long time. just ago, we saw that being a daily deals company was not going to provide the kind of opportunity or value creation long-term that we believe can be provided in a local space. a have started to build bigger and bigger marketplace of offers. it is unmatched in our core market. our customers love it and we have an extremely strong brand recognition in this country and around the world and customers that love the brand. we do have a moat around the business now. we continue to build that boat with product development. --esting in stuff like

vonnie: groupon ceo rich williams. david: alan greenspan says he is worried about frothy bond prices. this is bloomberg. ♪

david: this is "bloomberg markets." vonnie: time for the bloomberg business/. flash.mberg business the board of directors will be replaced by the interim ceo. the vitamin and supplement financialuspended its

guidance for saying same-store sales were down 3.7%. chipotle is branching out burritos and plans to open its first burger restaurant. they have already opened a pizzeria and asian inspired restaurant. alan is nervous. he said the u.s. may be heading towards stag inflation. : neithernspan political party has been willing to come to grips conceptually with what the problem in the economy is, namely. that entitlements are rising at , it is crowding

out domestic savings which is crowding out domestic investment in domestic investment is a crucial statistic that determines productivity and productivity in the u.s. and indeed throughout the rest of the developed world is exceptionally low. three fourths of the world's economies have had less than a growth.l rate of output economy cannot go anywhere under those conditions and we are getting a state of stagnation which is not only evident in the u.s., but pretty much throughout europe and the far east. as a consequence of that, it is difficult to see what the next step is. except what i'm concerned by mostly, stagflation.

very early signs of inflation beginning to pick up as the issue of deflation fades. david: let's talk about those two elements. the stagnation part -- how acute is this problem with proximity -- with productivity come the lack of growth? : i don't think you can describe the world economy in terms of the old conventional issue of inflation, recession and the like. what we are dealing with is a population that is aging very rapidly. that is inducing a major increase in so-called social benefits or what we in the u.s. call entitlements. that is dominating the whole financial system. understandome to

that we have got to slow the whichf growth in the u.s. ,as been 9% per year since 1965 we are now down to the point where it has taken so much thatgs out of the economy we are not getting enough investment. i think we are just in stagnation state. i don't see the speculative aspects that usually characterize a recession. we could get a brexit postrecession issue in europe i don't think that's where the real issues lie. david: what are the things you are looking at that would indicate that inflation may be coming back? : we are beginning

to get a pickup in wages. ofond the rate of growth productivity that is usually the best indicator. just as important now, since money is what causes inflation, we have been seeing since the beginning of the year a significant pickup in the rate of money supply growth. it is the ratio of money supply provided by the real gdp capacity to produce which ultimately determines the price level. it is a very rough indicator. in the long run, it has never failed. we are in a situation now where i'm looking at the interest rate , itls and inflation rates is very clear that we will be moving reasonably shortly into a

totally different phase. david: former federal reserve chair alan greenspan. zuckerbergt mark says is facebook's next big thing. this is bloomberg. ♪

vonnie: this is "bloomberg markets." shares climbing today come investors betting on better than estimated quarterly revenue and users. is more focused perhaps on what facebook may be five to 10 years from now and he virtual reality a central play. talked to him about this.

he's very interested in virtual reality. been writing 3-d code, thinking about this kind of world ever since he was in middle school or maybe younger. seesis something that he as the future. he told us it is very easy to imagine what our world might look like in 20 years. what is more difficult is making the path to get there. oculus will do, make virtual reality something that is not just a gaming device, but something that is inherently social, the next communication device like mobile phones. interactivee is an installation where you see the oculus and you have all these notifications from facebook. you can manipulate the screen and go different places and so

forth. for $2erg but oculus billion. what can you really do with them? sara: zuckerberg wants us to think of oculus right now as the palmpilot before smart phones came along. big and has tod be connected to a desktop computer. over time, that extra baggage will fall away. it will become something that is easier to tie into your daily life. david: you mentioned the $2 billion price tag. this is the tip of the iceberg here. making aeing facebook sizable investment into developing virtual reality technology. sarah: this is a hardware play. facebook is never built that has

never built hardware to sell to customers. this is new territory for this company. it will require a lot of investment. not to mention the amount of investment into research. facebook being able to bring virtual reality to their ideal they need to invest in eye tracking technology and mouth checking -- mouth tracking .echnology that will take people who are scientists who they can set up and a lab to really try to tackle these problems that are maybe unsolvable, maybe they are not committed it will take longer than expected. 20% of facebook's budget for oculus is going into these research initiatives. vonnie: you have to check out

sarah's story. you can read it in the latest "bloomberg businessweek." david: and this sunday on bloomberg television. we will talk america's energy future as the presidential election heats up. joins us from philadelphia. this is bloomberg. ♪

david: this is "bloomberg markets." vonnie: commodity markets close

in new york, wti trading below $42 a barrel. u.s. stockpiles unexpectedly climbed last week. oil is now approaching the 20% drop from early june. could this market be a tipping point for oil? we will rebound. the question is timing. there are a lot of noisy factors at work. the data was terrible in terms of imports. that led to a tanking of oil, but i think it is temporary. david: joining us now from the dnc is louis finkel. i listened to president obama speak last night. i assume you did as well.

a long speech, retrospective speech. there might have been one line about energy. are you disappointed about the degree to which the democratic party has been talking about energy at the dnc this week? he talked about it twice, once in the context of climate and the second in the opening minute or so when he talked about how we have reduced our imports of foreign oil, which almost assumes the president was taking credit for that when in reality, it was built on the innovations of american oil and on companies producing federal lands. by thee of the efforts federal government. vonnie: what are you longing for? i think what we are really trying to do and what we've done here in philadelphia

and last week in cleveland is making sure that energy is our candidate. recent polling we've done came back saying 69% of american voters are more likely to vote for a candidate that supports more oil and gas production in the u.s. our candidate is not a republican or democrat. it's really what is in the best interest for american consumers. vonnie: one of the candidates is going to win. which one of the candidates does represent more your position? louis: i'm not really about which candidate represents our position as making sure both candidates are talking about it. they will start talking about energy more and more. one of the unfortunate aspects of energy pricing, when energy , as a result of

overreaching government regulation, it has a regressive impact inregressive that the costs incurred by consumers are worse at the bottom and then at the top and. we talk about lifting of all americans. we had to see candidates of both parties talking about how we will keep energy prices low and how natural gas will continue to lower carbon emissions faster than any government regulation can do and we've already seen that were as carbon emissions are at 20 or lows. -- 20 year lows. david: we have platforms from the democratic party and republican party -- are you satisfied with what you see? i think the democratic platform is a missed opportunity in a lot of ways.

four years ago, the democratic platform calls for an all of the above oil strategy. if you remember back to some of those debates between governor romney and president obama, they were talking about who will produce the most oil in the u.s. we have to get back to that conversation. about producing everything here in the u.s. more renewables, more clean coal , finding cleaner technologies across the spectrum. as the energy information administration has continued to say, we will continue to need more and more energy in the u.s. to fuel our economy. vonnie: jpmorgan came out with their assessment of the west recent quarter gdp and found energy was down .6%. the problem is negotiation each politician is from

a state and if it's an energy state come how do you negotiate with those politicians? they have different positions. part of why we are seeing the economy as an oil-producing state is down -- it is not necessarily policy driven. the consumer is the one who is benefiting the most from this. the average american household is having $3000 per year because of the prices of natural gas and oil, resulting in low gasoline and diesel prices. it's important that we get past the sharp, ugly rhetoric on both sides, both extremes of the spectrum. we have to get to a conversation about what's in the best interest of american workers and american consumers and start bringing people together. vonnie: louis finkel, thank you so much.

david: let's check on the first word news this hour. mark: chelsea clinton take center stage tonight from introducing her mother, hillary. in and in a view with nbc news, chelsea explained what she wants people to know about her mom. >> i want to talk as her daughter. it is a unique position i have. i hope people understand even a about why i love her so much and admire her so much. says shelsea clinton would be willing to speak to her friend, ivanka trump to discuss the tone between their parents. threeicholson says soldiers were evacuated from the

area and to have been returned to duty. pope francis tripped and fell during an open-air mass in poland today. the pontiff is making his first visit ever to eastern europe for the five-day trip to poland for world youth day. spain's king philippe a the sixth is trying to end political deadlock. the king spoke with the leaders of the country's other major parties. if there is no agreement, spain could beh forced to hold a third round of elections. building britain's first nuclear power plant in more than 20 years, the company's board voted earlier today to give the ceo the mandate to sign contracts to build two nuclear reactors at

think we point in the u.k. -- hinckley point in the u.k. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. taking a look at the major indices now, the dow is lower by about .1% and the s&p is down .1%. this is bloomberg. ♪

vonnie: this is "bloomberg markets."

julie hyman has an update on the yen.- on the julie: it is heading lower as the dollar heads higher. it is over a little changed, but it is that change in direction that caught our eye. the ministry of finance in japan has prepared a statement for release if the bank of japan eases policy. the bank of japan meeting is tomorrow and there has been a lot of anticipation about potentially increased stimulus being announced. triggered some intraday shorts and that is causing the dramatic movement we are seeing their -- we are seeing there. you've seen the dollar fall considerably against the japanese yen. going into this bank of japan

meeting, we've also seen a big uptick in volatility. this is overnight volatility, which has been spiking ahead of this bank of japan meeting. the spike to the highest level in several years now. for thathe stage here meeting. there's a lot of bouncing around in the eyen. another item of breaking news having to do with a stock -- and equipment maker. anres of spiking -- equipment maker. shares spiking. the company called an undervalued and attractive investment. pretty sharp moves here. david: time for the bloomberg .usiness flash

bb&t will cut jobs and insecurities unit while scaling back training activity. -- jobs in its securities unit. they are cutting 61 employees. seneca could be a takeover target for novartis -- astrazeneca could be a takeover target for novartis. using investor concerns about the drugmakers pipeline. --using investor concerns averaged subscribers over the second quarter slightly exceeded the bw's forecast -- wwe's forecast.

isnie: hillary clinton getting ready to make history tonight as the democrats wrap up their convention in philadelphia. speaker after us vouched for mrs. clinton. tonight, she takes the stage to make the case for herself. sahil kapur joins us now from philly. couldre something hillary do wrong tonight after the last three days of speakers? ahil: i would not expect her to miss a step tonight because she tends to be very practiced and reversed in these situations. night, shea.m. last was still working on her speech. she is expected to be working on it throughout the day. she will polish this up. she's not really known for being

spontaneous or at living. -- add living. bing. lib. david: what you expect her to speak most about? sahil: there will be a continuation of the post-partisan message that she and her top surrogates have been putting out there president obama last night gave a remarkable speech where he painted the selection not as a battle between liberalism and conservatism but between american democracy and authoritarianism. he painted trump as a homegrown demagogue preying on people's fears and prejudices. he had a line about hillary clinton being more qualified than any other presidential andidate, including him bill clinton. she will portray donald trump as dangerous and unsteady.

sahil: vonnie: what tone will she take? she could appeal to the hearts or minds of viewers at home she could be the next president. ,he cannot be all three at once can she? sahil: it will be a combative tone. she will also strike themes of slogan,ou can hear her "stronger together." she has to excite the democratic base and appeal to swing voters. her campaign strategy has been consistent for a while. for trying this as a larger battle of who is qualified and who is fit to serve. it will be tricky to balance. david: about that theme of

unity, it seemed lacking on monday, there on tuesday and , leon panettaht gets up and we hear a chorus of boos from the audience. supporters of bernie sanders chanting "no more war." how will hillary clinton get the unity back? sahil: the convention has become less divided as it has gone along. there were moments yesterday, but overall, compare monday to test day -- compare monday to tuesday or even yesterday, bernie sanders supporters are less on edge. they've been chanting bernie's name less than they were on monday. there are a lot of disgruntled committees satisfy people who believe the nomination was stolen from bernie sanders. the dnc internal e-mails to not help -- did not help.

there has been a shift since monday when things were much more on edge than they are now. a head-to-head contest between 85 and 90% of bernie sanders supporters will vote for hillary clinton. it is happening. the question is to what extent. vonnie: what is donald trump's next move to counter any momentum the dnc will give the hillary campaign? for one month trump invited russia or anybody else who might have access to hillary clinton's deleted e-mails to release them. his campaign tried to clean that up. he will continue hammering this message that she is not trustworthy and is an agent of the status quo. theme has worked very well

for him in terms of making the selection competitive. -- this election competitive. vonnie: we heard that donald trump was being sarcastic when he was telling russia to look -- look intoails hacking those e-mails. last night, president obama made the note that donald trump cozies up to putin. maybe we will hear democrats this. more of an issue of sahil: i think we will see some of that today. yesterday, we had a lot of people talk about national security and that came up in a number of speeches. it certainly is an overarching theme here, raising a lot of suspicions and intrigue, this trump-putin connection. his campaign chairman has some past professional ties to pro-russian politicians in

ukraine. campaign --e trump there is an interesting web of connections between the trump campaign and russia, the russian government, that has raised suspicion and intrigue among democrats. it almost sounds like a movie, but that is what some people are suspecting. from the dnc kapur in philadelphia. dnc onverage on the "with all due respect" at 5:00 p.m. eastern. alphabet and amazon reports earnings after the bell today. this is bloomberg. ♪

david: this is "bloomberg markets." up of thehares rising company reported better than estimated earnings after the bell last night. -- after the company reported better than estimated earnings after the bell last night. emily: the main thing she said is this success of this particular earnings report was based on strength across all of their verticals come all of their sectors. they are killing it in all of their regions. in particular, they focused heavily on video and especially live video. increasing time spent on the platform. it is part of the overall bucket that facebook can advertise against. when do they start making money on their other services like messenger and whatsapp?

they are starting to experiment with monetizing here. we are doing some very early testing to see how we can monetize and drive those engagements between business and consumers. right now, it is the organic activity we are looking for. they are now seeing one billion messages a day between businesses and users. they believe that organic growth is happening and ultimately, this will be a huge advertising opportunity for them. vonnie: we get earnings after the close today as well. emily: alphabet and amazon. money in theire other businesses outside of their core business? search and google are the main driver of alphabet. e-commerce is the main driver of amazon. we are constantly looking at the cloud and eight of u.s. debt aid

of u.s. business. -- we arekilling it constantly looking at the cloud and aws. amazon far and away is king here . with google, slight deceleration in paid search spending. 10% compared to 13% the last quarter. again, with google and alphabet, how do they expand beyond their typical search ads? what is happening with youtube in particular. ads on google maps, that might be coming. how much money with that bring in? can google continue to make this

transition from desktop to mobile? andd: amazon looking more more at third-party sales. amazon does not break out a lot of specifics. we don't even know how many people are using amazon prime. we do know that they are expanding incredibly fast. they've added 13 fulfillment centers in the last month. this always concern about the profits being squeezed. they have had hit products like amazon echo. david: more on alphabet and amazon's earnings on "bloomberg west" tonight. this is bloomberg. ♪

>> welcome to bloomberg markets.

on bloomberg world work coders -- headquarters in new york, good morning. facebook and groupon shares surging after recording better than estimated earnings well amazon and alphabet continue to trend. we will preview their results after the bell. weekacle agreed to by next 49 $.3 billion are one hour from the close of trading. let's head to the market disc. >> yer