hery: welcome to bloomberg markets. vonnie: we are live at bloomberg headquarters in new york. covering stories of los angeles, london and china. we are on record high watch with white volume. disney is set to report third-quarter results in just a couple of hours. we are raking down the strengths and weaknesses out of the company's tv, film and resort units. is making ald trump big effort to win over support after a major economic speech. but susan collins says she will not vote for trump. markets close in two hours. let's head to the markets desk where julie hyman has more. julie: it is not clear whether

we are going to close at records because stocks have then losing a little ground as we head into the last couple of hours of trading. the s&p 500 trading at a record intraday, but we will see if a regularp there on basis. the street going back until july 11. we have not set a record every day but it has been steadily upward in a very tight trading range. i keep repeating this stat -- the 22nd straight session the movement in the s&p has been less than 1%. where we haveys set new highs, volume has been below average. bloombergk at the here -- here is the volume on the s&p 500 highlighted in blue. these are the days when the s&p set new records on a closing basis. this is the one year average of

volume. so volume overall has in below the one year average going back to the beginning of july. even on these record days, it did not get to that one year average. it did not get to that even when it exceeded. sometimes, traders want to see confirmation of records even though the index has continued to push higher. as we see the index move forward, here are some of the best performers. lot of that game coming on the back of that pharmaceutical earnings report. vonnie: any other reactions? we have seen more of a movement in some of the other asset classes. earlier, we were seeing buying in treasuries and that has accelerated as we see the major

equity's average come down. we see similar movement in the japanese yen. the safety trade has been catching more of a bid us stocks come off their highs for the day. we saw the dollar falling versus the yen and that accelerated to some extent as stocks started to come off of those highs. shery: thank you for that of eight. let's get a check on the bloomberg first word news with mark crumpton in the newsroom. mark: hillary clinton has a double-digit lead it -- over donald trump in the latest national poll. clinton lead trump 51% to 41%, a two-point bump from one week ago. face of anks in the four-way race with clinton edging trump 43% to 38%. libertarian party candidate gary johnson gets 10%. the green party's jill stein has 4%.

mrs. clinton has agreed to take part in all three presidential debates. there was little question she would show up. it came in response to complaints from donald trump. magazine says donald trump wants to renegotiate the terms of the debate. on prothe debates are football game nights, which is likely to reduce viewership. delta airlines is struggling to come back from the computer failure that grounded airlines. they are trying to reset. it meant the cancellation of more than 500 flights after 1000 were canceled yesterday. delta is waiving fees and differentials for those whose flights were delayed or canceled. migration to europe has dropped sharply this year. the international organization 260,000ation says refugees and other migrants have mediterranean. one year ago, there were 355,000. there were more this year than

last, almost 3200 so far. scotland is appealing a ruling blocking offshore wind farms. the court ruled the scottish government failed to properly assess how the wind farms would affect migratory seabird. the farms would cost about $13 billion to rebuild. 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. shery: now back to the markets were the s&p and nasdaq set intraday record earlier in the session. off those highs right now. discussed what is listing the markets. barry: when you have lower for longer interest rates, you can elevate the p/e ratio. some of the data has been coming

in no can and you have the indices up year to date and that has helped lift the market directly. when you have a flattening dollar, you will start to see better earnings comparisons and some u.s. and chinese growth and inflation data have been better. david: how much lift could we expect to see in earnings because of the dollar? flat, if the dollar is earnings should be up 4% or 5%. s&p, so at 2044 on the a single digit gain would he in the offing and that has been our view. take ithat might further? what needs to happen to get the s&p even farther up and it is now? are going to have to see some fiscal policy because the central banks are beleaguered. some of them are almost out of let's. we have to get through the concerns like high-quality collateral concerns and there

are structural issues that have never been resolved like the eu's lack of a transfer union. how will the central banks go about exiting their central policy of negative interest rates, we just don't know. there's a lot of political uncertainty, so we need to get some clarity there. >> you have a flattening yield curve now that is good for utilities and dividend proxies. what sectors do you need to rotate into? on the shortft off and would not occur until we have some traction on the long end and that would help financials. likes siliconiary valley bank corp. for asset sensitivity and invesco for their margin potential and product expansion. financials would be the greatest

beneficiary of a normalization of the yield curve and we are a long way from the kind of yield curve that would cause a recession. give 1%would have to before i start inking about a recession risk. david: two extent do we need global growth to get the yield curve steeper? barry: when you have a deeply negative term on japanese and german debt, when you have negative interest rate policy, you are dragging down our long and and keeping the fed anchored at the short end. what we do need is global growth and that's why i'm watching italian banks or chinese ppi data. david: take us to india because we focus on growth in china, which is still good growth but is slowing off. can india help drive the global gdp growth you need?

closedindia is more of a economy and their problems are more internal. they have a lot of that -- a lot of had bank debts, a lack of investment, bureaucratic red tape -- they cannot rely on consumption. but they have tremendous strength in certain areas of the tech industry. they have grown and they are growing, but india is coming off a very low base. but it is a largely closed economy in terms of its financial impact. vonnie: that was there he bannister appearing earlier with on bloomberg alix steel, david westin and jonathan ferro. up, the company missed some of its results but shares of valiant are jumping after the company maintains its full-year guidance and announced a massive sale of assets. we will break down the results. shery: sticking with earnings, disney will be reporting results

after the close today. its movie studio has had big ,uccess the past year offsetting challenging times in its cable business. our investors ok with the status quo? vonnie: the time in new york is 10 minutes after 2:00. let's see -- the dow unchanged. did hit an intraday high but is unchanged as well. i've been looking at the yen today. its weakest of the session. the yen strongest in today's session. nymex crude off $.27. the content of the yield curve is down about one basis point. gold futures continue to climb even as stocks climb and oil has

been climbing. this is bloomberg. ♪

shery: this is a bloomberg markets. i'm shery ahn. vonnie: and i'm vonnie quinn. shery: time for a look at some of the biggest business stories in the news right now. vonnie: eight of the nation's largest banks are joining forces to fight cybercrime. the "wall street journal" says the plan is in the early stages but banks will share information about threats and prepare detailed responses for when

attacks occur. the banks include j.p. morgan chase, bank of america and goldman sachs. the judge in the massachusetts case involving sumner redstone has set a trial date for october 3. the trial over the ouster of the viacom ceo will run for five days. at issue -- whether he was ousted from a trust that would control viacom. that is your bloomberg business flash of they. now to the surprise from valeant -- they reported earnings that fell short of estimates -- of estimates that shares are climbing. and optimisticg view of the companies or action. guest: i'm looking forward spending more times -- more time -- vonnie: are bloomberg reporter

spoke with him after the report. we have had many positive earnings reports from valiant. what makes you think they can turn things around in the second half? guest: i'm not entirely sure. they have a lot to do and they have to drive earnings growth and they have to drive it out of his this is that are declining more persistent as leader may have in the past. but what he has been sticking to is that there is a seasonality to their business and a natural pickup they will benefit from. some of the problems plaguing them in the first half they have started to deal with. the issues they have had with walgreens, the new distribution method they are using that they got into hot water for last year. product -- some of the progress is quite recent.

his's what he is basing confidence off of and he must be confident, reiterating that was a big surprise today. shery: i can't help but be amused at the share price soaring after they left the guidance unchanged. the bar has been lowered so much for valiant and stocks have just surged. what are the risks ahead? there are so many challenges to maintain this guidance and not cut the forecast. guest: they said they would work on renegotiating that. the biggest problem is making sure they have enough cash to be compliant on the covenants of their debt. they would get more breathing room and that should take a big load off, but they have to do it and get investors to agree to it. i think there's appetite to support valiant.

their bonds are trading in an 80 sent range and it does not look higher yet. did lay out a plan to say we have up to eight billion dollars in assets to sell. vonnie: where do they get the $8 billion worth of assets? they are still $80 billion in debt. where is that coming from? looked all said they over the portfolio. they are not ruling out any one thing. they are ruling out things like selling auch in long and the reality is they have $31 billion worth of debt that they really have five that needs to be dealt with by 2018. that is what we are looking at -- the debt that is more eminent. -- more imminent.

even if they only sell a couple of alien, they may be able to get themselves out of trouble. shery: if you look at the results, dermatology is still a disaster. what do they need to focus on? guest: dermatology. that's where they need to turn things around. the declines are mounting. this is what they are doing with walgreens, figuring out how to get more cash in the door. they say they have reached more agreements and i think again, the third quarter and fourth quarter number is where we will know how much stabilization may have on that front. shery: thank you so much for joining us. still ahead, disney earnings out after the bell today. results could signal what would happen in the media industry through the rest of the year.

we will break down what not to miss. this is bloomberg. ♪

shery: disney reports earnings after the closing bell today. three items to focus on -- theme parks, movie studios and tv networks, especially espn. .et's dig into all of those first, the theme parks, with openfanfare, rob eiger shanghai disney, adding to the impressive arsenal of parks. disney attracted fewer than 140 million visitors last year. attract 3.5 million people through the end of this fiscal year. the shanghai park is critical to help boost its international business. reported a profit

on its international park investment since it again breaking out the business in 2004. as for the movie business, disney could see a record box office this year. operating income jumped 27% thanks to a star wars induced boost in the preceding quarter. , there could be big boosts. "finding dory" is the top docs office movie this year while " captain america" is the number one movie internationally. and there is another "star wars was quote to be released later this year. espn and the cable network are a big profit driver, making up 45% of total revenue last quarter. this quarter's results may be a mixed bag. cable advertising growth is expected to rise, while subscriber losses still weigh on affiliate fees. -- 2.4st two point

million subscribers, translating into nearly 10 million fewer customers and 2013. because of the high demand for sports programming, espn charges a high affiliate fee, four times its nearest competitor. the problem is disney is vulnerable to people unbundling cable packages or cutting the cord. we will look for numbers when disney result cross after the u.s. close. shery: let's continue with bloomberg's avon weston. he will be talking with bob iger later today. great to have you on the set. i know you have a big upcoming interview, so what are the things we should vocus on? david: numbers don't lie and those numbers tell the story. i would start with the television networks because 45% of revenues come from that. half the operating of the company comes from that. the critical westjet is media networks.

-- the critical question is media networks. subscriber numbers are going down but it doesn't mean subscriber revenue is going down. long-term contracts, they have increases. the critical question is where is the trend headed? vonnie: you know an awful lot about the media side of the business. david: bob was my former boss. vonnie: what about the hulu question question mark what do they plan to do doubt that time warner is involved? it's not necessarily small in terms of the strategic vision. disney bought into hulu when i was working there. they were not one of the founding harder. disney came in and it was a plan on biker's part to say we need to get egg and i'm not sure we can do that on our own. he has always been an early adopter of technology. especially with young people going to computers to get to television programs.

with time warner joining, the question i have is is this going to be a new netflix or a new amazon? shery: any updates on a bob iger ceo's succession? david: that is the biggest question. he's done such a stellar job -- not just because i have worked for him, but i think anyone in the industry would say that. the one stumble he has had was with tom staggs who was the coo and that did not work out. he has announced he will be stepping down but remaining as chairman in the not-too-distant huge her. we will see whether we get any guidance on that today. is lovely to hear from a ceo that voice so many people to figure out a little bit about a u.s. consumer. david: that is something i want to ask him about. this is a large, successful consumer company that employs over 100,000 people. when we talk about wage

pressure, one of the questions is are you feeling wage pressure at your theme parks? also consumer spending. you see millions of people come through your gates. are they as willing to part with your money and come to the theme parks around the world? vonnie: looking very forward to that interview. i'm sure it will be hard-hitting and will be very revealing. forget, david will be igerng with disney ceo bob at 6:15 eastern time right here on bloomberg television. ♪

mr. trump: i happen to think they have lengthy of money. vonnie: donald trump holding a rally in north carolina, a critical battleground state.

it's being hosted by the college at the university of north carolina wilmington. you can watch his speech on the bloomberg at live go. shery: commodities are closing in new york. oil trading near $43 a barrel after opec said it was planning to hold informal talks next month will stop members plan to discuss the market that the international energy form at algiers. no plans to revive the proposal that failed in april. metals precious regaining it today. investors are optimistic that global banks will keep interest rates low. low barling costs are a boon to gold. silver and palladium also rising today. copper resumed its decline on speculation chinese demand will weaken.

prices fell in july to the lowest since august of 2015. shery: donald trump's economic advisory council boasts a number of billionaires. among them, fracking king harold hamm, ceo of continental resources. bloomberg businessweek profile him. david gura asked about the story. -- guest: he grew up dirt poor, started his own business at the age of 20, out on his own as a land man. , he's the 76th richest man in america, worth tens of billions of dollars, depending on what the price of oil is. he is as self-made as they come and is as responsible as anyone for the shale revolution. david: we saw oil enter a air market once again. what did he say about the low

prices that affected his business? they have forced operators like continental to become more efficient and do more with less. at the same time, the finances are terrible. there's an industry loaded with debt that needed higher prices to make a profit. now that we are skirting around that, the case going forward, it seems they will have a lot of problems and what is interesting glut problemsupply and he wants to talk more about the regulations the government puts on operators like himself that keep him from tapping more oil. but that's the least of their problems. david: you sat down with him in cleveland. what did he have to say about why he thinks donald trump would

be the best person for that job? : he's basically going to get rid of all of these out -- onerous regulations and that only trump will truly unleash the potential of u.s. energy. what is ironic is as much time as they spend railing against the obama administration for how bad they have been for the american oil industry, over the past seven and have years, this industry has doubled american oil production. so you wonder what it is you wanted that didn't happen and how much more production could we have gotten if you had a more classically republican, pro-industry president in office? vonnie: you can read the article in the latest bloomberg business re--- bloomberg businessweek.

check the headlines on the bloomberg first word news at this hour. mark crumpton has more from our newsroom. mark: search efforts to recover a black box from a sunken ship 15,000 feet below the surface of the atlantic ocean. freighter sank in october of 2015. the national transportation safety board's mission had been on hold because resources needed for the effort were not available. all crew members died after the vessel lost propulsion and sank. a federal judge has upheld rob ugly vision's prison sentence on corruption charges. agovich plus prison sentence. an appeals court struck down five of his convictions and ordered him to be re-sentence. in brazil, the senate will again voting tonight on whether to put the suspended president on

trial. she is accused of breaking the budget law and is expected to lose the vote which requires a simple majority. opponents would need a two thirds majority to keep her from resuming office. china is warning the u.k. that relations between the two hang on the fate of their hinkley point nuclear power plant. china has a minority stake in the project. times" the"financial chinese ambassador said it could affect trade with written's second-largest trading partner outside of europe. the british government says it will decide next month whether to build it. 15 gold medals are up for grabs at today's rio games. michael phelps and katie ledecky headline swimming events. the u.s. women's gymnastic team will also be in play today.

global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i mark crumpton. this is bloomberg. turn now to event out of the u.k., the sterling falling against the dollar for the first time in almost a month. the currency is on a five-day losing streak. to u.k. politics with a bloomberg exclusive -- when theresa may start breakfast -- start brexit talks, she could be hit with a daunting series of demands. bloomberg news survey to officials from 27 other nations in the eu and the concerns cover everything from free movement and security to fishing rights and stopping the spread of other separatist movements. alan crawford talk about the survey earlier on bloomberg markets. across clearlye was the disparate and sometimes

competing demands that these governments will bring to the table. 's governmentsa may is starting to formulate this position, so are the other 27. these concerns, the priorities, theou like vary hugely from balkans to the baltic states across spain and britain's nearest neighbors. what came across is that overwhelmingly, the disparate demands there's a huge array of concerns these countries will bring and the u.k. government will have to address in some form or another. >> what does this mean for theresa may's government. is it the challenge of trying to fit in with these demands or are there certain things that some countries and what they think on

the free movement of people that will have the biggest impact? guest: what is starting to come through is there are friends of the u.k. such as ireland, it stands to be the most effective -- most affected economically. it is determined to make brexit as soft as possible, to make it amenable to the u.k. as possible because ireland stands to lose. equally, some unusual findings that greece and cyprus, they are determined to avoid any further impact on the pound because that affects dish tourists and their willingness to come to greece and cyprus on holiday. there are potential big hurdles ahead with currencies such as germany, italy, and france, the three big euro area countries.

at least in the public positions, to hold the u.k. to the rules on freedom of movement . there are only three countries that mentioned immigration as priorities. >> it seems like it is more urgent for some countries than others. there -- are some of the country's putting it on the long finger? we did not go into that much detail as far as we are aware. in some capitals, some of the bigger capitals, they have appointed people in some of the smaller capitals frankly, one of the interesting things was in slovenia and croatia, they have yet to express major concerns around this issue. it extremelyng seriously. shery: that was the bloomberg

european government reporter, alan crawford earlier today on bloomberg markets. vonnie: coming up, we are turning to politics in the 27 -- 2016 race. donald trump is pushing ahead despite lag in the polls. will a third-party candidate shakeup the stands question mark -- shake of the stands? vonnie: bloomberg gas light digs into how uber fell trying to dig into china. let's check in on the major averages. 500 hit an intraday record and is now down to points. the nasdaq is still higher by just more than .1%. this is bloomberg. ♪

vonnie: this is bloomberg markets. i'm vonnie quinn. shery: and i'm shery ahn. donald trump is counting on his speech on economics to turn around a campaign embroiled in controversy. a new poll shows trump down double-digit to hillary clinton and some members of his party are turning their backs on him. republican senator susan collins has announced she will not some or trump. was his speech in detroit enough to get his campaign back on track with mark mark halperin joins us now. great to have you here. we are hearing that clinton is tied with trump in florida and up in ohio. trump seems to be losing support , not just on the polls but also from gop leaders. where will he be able to get the vote?

we know he is meeting with evangelical leaders. mark: he's going to have to rebuild. he's going to have to convince people that this race is winnable. when you see poll after poll showing hillary clinton has a wide lead and state polls were trump needs to do well and is not, that is demoralizing for republicans. he has 90 days to do it. about half way through the 90 days, we will have debates and that will be the best opportunity to turn things around. he's going to have to figure out more of what he did on monday, which is talk about issues voters care about. he had his best news day in a long time yesterday but it was offset by the polls and the defections we have seen, including from senator susan collins. vonnie: i have two underscore with these numbers -- in florida, clinton 46 and trump 45 -- are you surprised at how close they are? mark: i think the trump campaign

will see those as good news. national polls get attention and are interesting, but this is a state-by-state poll. i'm not surprised that they are close. trump has put in effort there. the trump say the clinton campaign has spent a lot of television money there. it's closer than i thought. clinton's numbers higher than i thought, but the trump campaign will probably be heartened being within the margin of error. the status of student -- of susan collins -- does this pick up speed? mark: it hurts him in terms of every day you want to win the news cycle. susan collins is a respected senator. republicant officeholders will wait until the first debate, see where things stand then. but it is the kind of thing that other republicans will look at and say susan collins is doing

this, maybe i can do it and that dangerous for the trump campaign. shery: you have an independent candidate on your show today, his presidential campaign -- what impact will that have on the race? an open question. i've been impressed by him so far. he is a guy with an interesting resume. the proof is whether he can get the virtuous cycle going. if you are running for public office, you want to get press coverage, your people to give you money, you want reporting on how much you are raising and you want hold numbers to go up and people to see the poll numbers and put you back on tv. fundraising, pull standing, media attention. he is getting a round of 80 attention now, but does he have things to say people are interested in? he ultimate question is can he get high enough to get into the televised debates?

that will be huge, including getting on the ballot in many states, including states where the deadline has passed and he may try to get on the a a lawsuit. vonnie: if you are advising trump or clinton, where should they be campaigning? mark: i never give advice to presidential candidates. , these are theio states that are going to get attention because trump will have to win some states mitt romney lost and the ones at the top of the list are obvious. he has to figure out a way to get to 270 electoral votes and there are just not that many paths to do it. vonnie: mark halperin, be sure to tune into "with all due respect" where they will be interviewing presidential candidate evan mcmullen. this was the theme last

weekend we see this repeated itself because we have fresh news from retailers. gap coming out with its comparable sales. banana republic with a decline 4% and even though it was not helping shares. there was a lot of concern about gap possibility to execute on a turnaround. retailers under pressure after july same-store sales were softening. you see that spreading to the teen retailers as well. they are lower along with other retailers. then we have news on the handbag acres with coach forecasting sales roughly in line with analyst estimates. however, analysts looking for a 4% revenue gain for the year. still looks like it could be

below what some analysts are anticipating, however, the company is indicating it is confident with the progress it is making. analysts still concerned about the outlet channel. it's only down a little more than 2%, so not as much as gaps and the other. kate spain and michael pours down as well. i want to look at the johnson read the measure of comparable measures. this is for the specialty retail channel and johnson read the tracks month to date sales and week to date sales and year over year. the weekly numbers the line in are thehly number golden bars here. you can see the drops we have seen in these comparable stores sales. not only do we have individual stores like gap as sources of

concern, there's broader concern in the industry about these numbers. coming up on bloomberg, uber joined other tech giants like google and facebook who have hit a wall in the chinese market. can outside tech companies break out in the country? this is bloomberg. ♪

shery: this is bloomberg markets. i'm shery ahn. vonnie: and i'm vonnie quinn. shery: time for a look at some of the biggest business stories in the news right now. down thes throwing welcome at two global technology companies looking to operate in

china. the country's largest e-commerce market is opening a increasingly hostile to foreign companies. they hope to help comply with regulations as they seek new areas of growth to offset china's slowing economy. u.s. electricity consumers could end up paying $2.5 billion for nuclear plant that never gets old. duke energy and the menu resources are being allowed to charge $1.7 billion for reactors at only exist on paper. that is based on company is closures and regulatory filings. the plants proposed are under construction -- at least seven states allow billing before construction starts. shery: municipal bond investors in illinois, pennsylvania, new jersey and connecticut have good reason to be concerned. s&p global ratings have deemed them to have only a limited

capacity to withstand the effect of a moderate recession, according to a report published by the credit ratings company. that is your business flash update. uber has found out what when he -- what many other countries have learned -- that china is an alluring trap. many other companies are either banned from china or have flopped there. the odds of success are only getting slimmer. we have this explanation of why it right be time for u.s. web companies to give up in china. ♪ u.s. web company has cracked china and it's time day's top trying. , amazon,acebook microsoft and ebay have either been shut out of china or are barely treading water. latest loser is uber, which sold its chinese operations after it lost ilion's in the country.

apple has done well but has struggled recently. why can't american internet companies succeed in china? three reasons -- china's web makingare big and broad, it tough for foreigners to compete with them. e-commerce website handled more sales than amazon and ebay combined. and government interventions favor local companies. for example, facebook and twitter are banned in china and google pulled out because it's the target of massive cyber attacks and did not want to comply with censorship rules stop and three, chinese technology has become really good. make smartphones as good as iphones but with features tailored to chinese taste like guessing your age from selfies. and the technology is being copied elsewhere. the might of chinese internet

superpowers, their tech prowess and government help has hardened china into an online economy where locals rule. china seems too big to ignore, but it's also too hard to crack for america web powers. you can read more of those columns and other commentary by going to gad f go on the bloomberg. coming up in the next hour, one of the weakest names in the corporate world out of brazil -- andceo of brazil -- of azul jetblue airlines will join us. this is bloomberg. ♪

welcome to markets.

we have live from bloomberg world headquarters in new york for the next hour plus we are covering stories that of los angeles, brazil, china. it's the final hour of trading in the u.s. stocks are still flirting with record levels both that most traders are betting volatility is behind us but is the market in the clear? turn to brazil. they host the olympics while sorting through political turmoil. what does this mean for their economic future? we will be speaking with david needleman. china, factory dated today signals improving conditions for the nation's manufacturers and adding to evidence the world's second-largest economy is stabilizing.