matt: from bloomberg's world headquarters in hot, hot new york, i'm matt miller. .liver: i'm oliver ran it here's what we are watching. stocks taking a break after hitting new records this week. treasuries are rallying. andppointing retail sales the likelihood of a fed rate interest ike. matt: we have breaking news. it looks like hillary clinton is forasing her tax returns 2015. we see that the clintons say they paid 34.2% tax rate for the last reporting year. are going to continue to get headlines on this and bring you all the news on hillary clinton's tax returns.

we will have more on it with bloomberg politics. definitely stay tuned for that. we are halfway into the trading day. let's head over to julie hyman. julie: thanks, guys. we had economic data later today. we see the 10 year yield taking a leg lower earlier. that is when we got the retail sale data lower than estimates. ,etail sales unchanged overall but if you include auto sales, they fell. we also saw inflation falling. 1.49% is the yield on that 10-year note. after we got these earlier numbers, we got consumer confidence that came in a little worse than estimated. the dollar fell. it is lower on the day. it had a sharp move in the wake

of that earlier data. we are watching fed futures. the way we track that and the probability that is baked into that that the fed is going to raise rates. you see how that economic side affected it. what is the read through two stocks? not much changed today. dipped today. at the moment, not doing much at all. we are also watching the commodities complex. we have beenrices, watching those closely. it is hot, it is very hot. a lot of people are running air-conditioners and losing -- using a lot of power. natural gas is up 2.5%. oil prices have been rising on

increasing talk led by saudi arabia that there will be some kind of discussions on oil price stabilization's among opec members when they meet in algiers next month. oil continues to rise on that speculation. we see how that is playing out among oil stocks. finally, some latebreaking news from the justice department over the acquisition of anthem and cigna --, that deal i should say. the justice department is willing to hear settlement offers from the companies. a little bit of optimism on that front. cigna and anthem shares both rising. matt: jewels thank you for this. and historic day. oliver: all kinds of history being made. let's check in with first word news with mark crumpton. mark: donald trump thinks some

of the news media does not get him. the republican presidential nominee repeatedly called president obama the founder of islamic state. in a post on twitter today, he called out cnn for reporting the story so seriously. sarcasm?"t get former penn state a football coach jerry sandusky is back in court, saying he has proof he was wrongfully convicted. sandusky testified for an hour in a pennsylvania courthouse. the 72-year-old was convicted of 45 counts and is serving a 30-60 year sentence. in brussels, belgian police on an anti-terrorism case have arrested three people for questioning. no weapons or explosives were found. a judge will decide how long they will be kept in custody. global powers are calling for calm and the latest confrontation between russia and ukraine over crimea. there is no confirmation

ukrainian troops killed russian servicemen. those deathsn said would trigger a very serious response. russia annexed crimea in 2014. global news 24 hours per day powered by 2600 journalists and analysts. this is bloomberg. matt: thanks very much. as we have been talking about breaking news on the clintons releasing their tax returns, it was expected that hillary clinton would release her 2015 tax returns. she has released all of her tax returns, together with her husband, since 1977. oliver: about $140 million they made. a lot of that came from speeches. we know that this is one of the biggest revenue-generating enterprises they have.

they talk at various places. that has been one of the criticisms from her opponent, that she is close to wall street. it will be interesting to see where the money came from. we have details on her charity contributions. hert of things to contrast with her opponent, who has not released anything. matt: that is probably the most important part. they made $140 million. they paid about 31.6% of that in taxes. a sizable amount. although we don't have anything to compare it to. we don't know what it is relative to donald trump's earnings or what he has paid out in taxes or given out in charity. oliver: i wonder how much this is going to put the pressure on him to come out and release some of this information. we will talk about that. first, let's talk about the markets. matt: let's do that. oliver: when will the bears in the stock market finally be right?

rjh us to figure that out and lisa -- joe and lisa. i'm biased because i'm a stock sky. this is a pretty big week for stocks. newindexes are hitting highs. what are traders making of it? joe: there is this groundswell of bearishness. billion pulled.2 out of the s&p 500 etf. afraidare starting to be of the valuations. there is a little bit of a bearish groundswell, but we keep hitting these new highs. we keep getting economic data that seems to be trending in the right direction. i think that is probably

the mantra of markets. i wonder what you think about conviction. matt: to talk about the conviction that traders have in this rally. joe is saying that a lot. does that show through? one of the bullish arguments people have been looking at is that hedges have been at their lowest since 2015. they are pulling money out of etf. there are a lot of mixed factors going in there. it is something that people will be keeping an ion, to see whether hedge funds and speculators are starting to back up. matt: before we get all the way to bonds, i want to talk about

-- are people still using the fed model as an argument that stock returns, earnings returns with stocks are so much higher than the yields on the 10 year? >> i think it is a justification people do use. lisa can talk to us about why bonds keep going lower and lower. lisa: i think that we have come to an inflection point. some bonds are going lower, some are starting to creep higher. in japan, yields across the board have started to tick upward ever since the end of july. feelingy, there is a and a growing fear that if the bank of japan comes back in a arele weeks and says, we out of ammunition, we can't go any further, that this will pressure deals further across the board.

in the u.s., yields have been taking up a little bit until today, until the bad retail sales number or the disappointing one. , perhaps the foreign bid will not be ending. the european union, it has decided to break away, britain, u.k. gilt is breaking away from everything and the divergences are historic. you are seeing record divergences. matt: can i just point out? i've been giddy like a high school girl today because i have been playing with curve finder. lisa: you looked at little giddy like a high school girl. if you want to take my screen, i can go through and find united kingdom. and takee their curve

the u.s. and our curve and i can .ut them out together you can see the spread between them. here you see u.k. gilt yielding a lot less than u.s. treasuries and green. really great function. crvs the bloomberg. i'm sure you use it a lot. oliver: the bank of england had a little bit of trouble this week and we talked about that in terms of trying to get investors to sell them some of their bonds. what impact did that have on the broader market? initially it caused yields to drop further. there was a feeling that the u.k. would have to pay a lot more, the bank of england would for the bond. analystsetting some for goldman sachs saying that the fears were overblown, it was

just the summer of the slowdown, they were able to complete bond purchasing. oliver: got it. joe, one last thing. trying to figure out what is going on. what are stock investors looking at? joe: earnings are winding down. they are focused on the fed and when it is going to move. december seems like the best possibility right now. with the election, they are not going to do anything before that. r they will beiding -- they will be riding this upward wave. it is possible you will see institutional investors piping money out. it is important to watch those hedges. we will keep you posted on those. matt: joe, thank you very much. we will bring you more on hillary clinton's tax returns for 2015. she made $10 million, together

with her husband. they paid 34% of that in taxes last year. bloomberg politics is going to tell us all about those returns. ♪

matt: breaking news. bill clinton and hillary clinton have released all their tax returns going back to 1977 thanks to releasing their toy 15 tax returns this morning -- 2015 tax returns this morning. are there any surprises in these tax returns? >> we haven't seen a lot of

surprises. hillary clinton put up tax returns for multiple decades earlier this year. this is another return that shows a similar tax rate above 30%. we are seeing that the clintons are very lucrative and their different business efforts. they do pay a pretty hefty tax rate of about 30% and they give a good chunk of that to charity. obviously, they knew that hillary clinton would be running for office, so i'm sure they prepared this tax return knowing that they did not want there to be a lot of surprises. oliver: call me a senate, but i feel like everything -- cynic, but i feeling everything and in election cycle has a motive. is this to further distance herself from donald trump put pressure on him to do the same? toluse: this was definitely a coordinated campaign. put out an campaign

video highlighting concerns about donald trump not putting up his tax returns. this is very much a politically coordinated effort where hillary clinton saying she is being transparent and her opponent is continuing to block efforts to describe what is in his tax returns. matt: we know they gave away almost 10% of their money to charity in 2015. that may not be politically motivated, they made a lot, as well. surely, they are charitable people. what do we expect from donald trump? do you have any idea about his earnings over the same period? about his tax returns or whether or not he gives money to charity? toluse: those are huge questions that have been posed to the campaign.rump he has climbed to be charitable toward veterans and other groups

, but there have been multiple reporting efforts that have not found that level of charitable it he among donald trump's efforts and his family. it is a huge question and there are several questions about whether he pay taxes at all or whether he paid a very low rate. different options for lowering your tax rate in real estate and one wonders whether donald trump has taken advantage of those. he has said in the past that he tried to pay as little taxes as possible. it is hard to say whether we will see his tax returns before the election. oliver: surely donald trump's team and critics of ms. clinton will be touring over this thing. what will they be looking for? is there anything they can use against her in some way? toluse: one thing they have pointed out is that hillary clinton said she was dead broke when she left the white house. she is not dead broke now.

who will be pouring over paid her the speaking fees, what those different groups may want from government, why they pay for those fees. we have heard from the donald trump campaign attacking for not releasing the transcripts of the speeches to these different groups, where she made sometimes over $200,000. that is an area where they will continue to hit her and she will continue to be on the defensive. oliver: thanks much for coming on. and helping us breakthrough that breaking news of hillary's tax returns. we will cover that continuing. coming up, we will talk about u.s. corporations. getting a little less shareholder friendly. i will walk you through what that means. ♪

matt: welcome back to "bloomberg markets." oliver: here to talk about shareholder friendly activity or the lack thereof. the biggest support pillars are showing signs of erosion as u.s. corporations are getting a little less shareholder friendly. showies are beginning to signs of turning. when you think about what has been happening throughout the bull market, it has allah been -- it has been all about low interest rates. but that is beginning to get a little bit cramped. let's look at the chart breaking down some of the important corporate aspects. you are looking at a chart showing the price of the s&p versus the price ratio. we can also look at the bottom chart which shows you profit margin. they're are going down and down and down, which means the

margins are getting smaller. companies are getting tighter on the balance sheets, smaller profit margins, they're basically getting pinched. companies have to think about whether they will he able to use money in the same way that they have been the past several years. you can see that this is starting to show up in meaningful places. how it is affecting money available for dividends. this is showing you the payout ratio, the dividend divided by the premium. this is going up because dividends have been increasing, however, the extent to which it is climbing is due to the fact that profit margins are getting areler and the dividends accounting for more and more of the free cash flow. how much of this activity is going to be able to continue when you have less money on hand? a lot of the stuff we're looking at here is the highest since 2009.

you are starting to see some of the effects of this. you can look at what is happening in terms of where investors are putting their money. this chart shows you buyback stocks versus companies that do dividends and those that do a lot of. line is showing you companies that do a lot of buybacks. the companies doing those share repurchases have been getting a smaller and smaller bump to the share price. investors start to wonder whether don't have more money to put elsewhere into the. the buyback programs are actually slowing. we talk about executed buybacks which move the markets on a daily basis, but when you look at companies planning to further shared purchase plans, they are getting smaller. this is where it is all connected. companies are raising the thedend at a cost because bottom line is smaller and investors are looking for a dividend whatever they can get it because they want that cash

payout. that has been a big part of the stock market payout. it is all connected. when you think about profit margins and were companies are putting their money, this has been a pillar of the bull market over the past seven years now and that is not going away anytime soon come as a do have to think about what happens if companies need to cut back on their expenses and the corporate largess and whether the bull market should be able to survive without that. it is not happening now, but it is starting. matt: fantastic stuff. thank you. it is time for the bloomberg business flash. a look at some of the biggest business stories in the news. toshiba shares climbed today. buoyed by the first operating profit in six quarters. they also kept the outlook for the fiscal year unchanged. the stock is up nearly 10% for in year after a 51% slump 2015. they posted record losses after an accounting scandal last year.

there is all you need to know on toshiba. surged highestgs in seven years today. post" reported a takeover bid for the company. special thated carl icahn is building a personal stake in the lack -- the like u.s. holdings and could be preparing to take ownership. that is your business flash. we are going to take a quick break on bloomberg television and come back with all you need to know on dnc hacking. this is bloomberg. ♪ [ hip hop beat throughout ] [ fans cheering ]

♪ 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 say 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. oliver: life from bloomberg world headquarters, i'm oliver

renner. start with bloomberg global news with mark crumpton. mark c.: the tylan bombin attacks have targeted the tourist industry. tourists were among those injured. the thai government says they do not know who was behind the attacks. president putin says he is replacing ivanoff at his request because he has been in the job too long. he was once considered a likely successor to putin. donald trump has vacated headquarters in new jersey and has not paid some staffers since early june. that is according to politico. fec filings say the campaign last made a rent payment in may

for the property. nbc will make it up to viewingers who say that of the olympics does not make it up to expectations. they promised advertisers free advertising. viewing is down from the 2012 olympics. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. this is bloomberg. back to you. federal courts are hanging out the help wanted sign as judge vacancies take a large toll on business litigation. in key cases.s here to talk more about it is she joins us more from washington.

thank you for your time. me about the problems caused by a shortage of judges and business litigation. a we talking about it takes a lot of time or do something's not get through? nancy: perhaps both. what we found is there are 90 vacancies from the federal judiciary and 30 of those are considered emergencies. we're talking with the federal district court and the appellate courts, but mostly the district court. what happens is the cases that cannot be heard languish on the back burner and it takes longer longer for them to be resolved, potentially many years, maybe 3-5 years. it depends. we have found, of course, criminal cases are given priority because criminal defendants, under our law, are supposed to get speedy trials. when that happens, they go first. business cases will likely languish if there are not judges

to hear those cases. oliver; who is in charge of resolving the problem? nancy: it is the senate leadership, for the most part. we took a look back at this year and last year and found that there were only about 15 judges confirmed this year and about 15 last year. they are not all for the district courts. districtsome from the court of columbia, of course. what is going on is mitch mcconnell has made his decision not to move the judges that quickly. what happens in a presidential year? there is an unofficial role that the publicans have been following for the most part that after the convention, they are not likely to confirm judges that were nominated by the president of the opposition party. oliver: is this all going to get worse now? is that what will happen? nancy: is very well could. when the senate comes back, we

have heard nothing to indicate that the judges will be confirmed. in the more time, more vacancies are created, but no new judges necessarily. matt: thank you very much. nancy talking about a shortage of judges. a little-known website called d.c. legs started posting secrets from atop nato and eveno official philanthropist george throws. for more on the story, michael o'rielly from washington. what is the latest here? this is kind of an ongoing saga. and>> i think there are tentacs going out all over the place. "the new york times" reported yesterday that intelligence

officials have confirmed at least 100 entities and officials associated with the democrats have confirmed they were hacked. they had an information operation running prior to the from a website confirmed to be from but really, under the way for them to get information into the narrative. matt: why does it matter who the hackers are? if we get information that one group or another is improperly influencing an american election, shouldn't we be more concerned with that information than the source of the information, as long as it is reputable? >> i think that is what the

hackers are counting on, that the u.s. media will take a secret is a secret is a secret. wikileaks operates on the same principle. there is an assumption that if another government has hacked into the dnc, for example, and is releasing those secrets to change the dynamic of the election, you cross an entirely new territory which is often called information warfare or information operations. i think that is what we are seeing now. matt: there has been this running story that some of clinton supporters have been targeting trump, saying he is in bed with putin, and they get along well. and he, saying, go ahead, russia, hack clinton. have we found out where the source was or where the information came from? >> i think it is pretty clear

that the russian intelligence are the ones who hacked the dnc. both the private security firms and the fbi and u.s. intelligence have confirmed that they think it was the russian intelligence behind the hack. the question is what do you do with that? i don't think trump has helped themselves by making jokes or hacknts asking russia to hillary and find the missing e-mails. what the russians are apparently doing are making some sort of calculus. it does not mean necessarily that they want to put trump in office, but if they can disrupt the elections, it creates chaos. matt: it is almost ironic that they would disrupt the election by revealing that the dnc was trying to disrupt the process of

the election. >> yeah. could the tables turn? could we see hackers somehow get donald trump's tax returns? you probably could. when the head of u.s. intelligence briefed congress on this not too long ago, he pointed out that activist -- hac triedts have also getting into the campaign. the problem is everybody's security is pretty lousy. in the case of a general, hackers hacked into his e-mail account and found conversation

with colin powell. it is like, he is a guy that should know better. does trump have any security around his tax returns? that is a good question. we don't know. the bottom line is there could be more of this to come and it could circle back to the trump cap as much as the democrats. does the u.s. government do? all conspiracy and jokes aside, it does not seem like it will stop anytime soon. not only is it political leaders, it is billionaires, philanthropists. what do we do from here? keeping in mind also be talking about a gmail account. i don't know if the dnc was using government service. we certainly know that hillary was not. these are private e-mail accounts, right? absolutely. we know that the u.s. intelligence spotted the russians hacking the stuff almost one year ago, but were not able to tell the democrats themselves because it was classified information.

it is an interesting question, what does the u.s. government do now? on some level they already leveled a whole lot of sanctions. what about if u.s. officials keep report -- repeating is there is a message that will be both seen and unseen. they might dissuade russia, but if they are, we will not necessarily see them. the question is cut to full. is there anything they can do to change russia's calculus, or have a already given a lot of information to wikileaks and is now in their hands. that is an entirely different piece. oliver: thank you so much. matt: coming up next, we'll bracel banks and bitcoins? we have the story. this is bloomberg. ♪

>> you are watching bloomberg. this is your global business report. here's what we are watching. more brexit fallout in the u.k. construction shrank for a second month in june. there assigns of worse to come. economicy flexes its muscles. its growth slowed less than expected, signaling the country may be able to handle the fallout from the brexit of the european union. take,, in the quick russian, not the first achieved,

and not the last. we begin in britain where construction shrank for a second month in a row in june. building output declined. the worst may be yet to come. companies have started to put spending plans on hold. meanwhile, in germany, growth slowed less than predicted in the second quarter. it is a signal that europe's largest economy may be strong enough to handle the uk's decision to leave the eu. a different story in italy. stalled.my unlikely auto sales soared in china last month. they were up twice six percent from one year ago. among the excel's, sports utility vehicle sales were up 47%. >> time now for our bloomberg quick take where we provide

context and background on issues of interest. -- drug testeked for , a bloomberg quick take looks at how some of the world's top athletes dope and what is being done to catch them. strychnine, heroin, cocaine, blood transfusions. all of these have been used to cheat in sports. there is lance armstrong in cycling, adam rodriguez in baseball, and russia in, well, just about everything, it has been proven that athletes are willing to gain an edge in ,ports using banned substances even when it means the risk of

getting caught. here is the situation. the international olympic committee began prohibiting drug taking in the late 1960's. because of advances in pharmaceuticals, doping has thrived since then. russia's olympic track and field entire paralympic squad has been banned from the rio olympics. this stems from a whistleblower who outed the russian program and who vladimir putin called judas. the world anti-doping agency called for the entire team to be games.from the .he testing won't stop in rio more than 50 athletes from beijing in 2008 and london into

for dopingcaught years later. here's the argument. critics of the existing system say the anti-doping crusade failed. the world anti-doping agency would not have even caught the russian conspiracy if it were not for a whistleblower. some say athletes should be a will to take drugs that pose no health risk. on the other side, anti-doping activists say that in order to ,atch them, more support financial or otherwise, is necessary. >> you can learn more about doping and all of our quick takes on the bloomberg. that is the global business report. had to bloomberg.com for more stories.

oliver: this is bloomberg markets. i'm oliver bennett. matt: a quick check on u.s. stocks right now. we see losses across the board. not huge losses. just a reminder, in case you are living under an equities rock, yesterday, we hit all-time highs on each of the three major indexes. the dow, the s&p 500, and the highs, the first day that has happened since 1999. oliver: you are a full if you don't think that we'll hit green by the end of the day. it has been fluctuating a bit. as was pointed out earlier, the sentiment is very negative on the street. stocks have tended to climb when things are mixed lately. that is how it is. is good if yout are long stocks.

let's go now to abigail doolittle, live from the nasdaq. abigail: we are floating around important levels at the nasdaq. the most important level for a recordnot actually high at this point. it is last week's closing level . could close higher for seven weeks in a row. if below that level, a six week level will be snapped. one big influence or piece of the puzzle will probably come down to apple. the biggest number waiting well off of its highs but still boosting the index. pretty interesting here, to give a sense of how important apple is to the nasdaq. acaciathe imilar

communications up 30%. some analysts think the strength will continue. he sees a super cycle in china. however, there is a short interest here. some of this could be a short squeeze. oliver: thank you very much. abigail doolittle down at the nasdaq. but central banks and brace bitcoin? according to our next guest, it could be just a matter of time until things around the world introduced their own currency. ise to talk about the risk max. great to have you on here. we have known each other for years and years, ever since i bought my first bitcoin. >> in the studio, you bought it. wonder ifny case, i

we hear all central banks talking about this, or who is asking about the possibility for digital currency? forefrontow, the players have been the bank of england, the bank of canada, and some south american banks have expressed interest. as we know, in the op-ed, the u.s. has not taken this idea very seriously or had any proposals about this. the fed, they are not interested or have not shown any interest yet. why would they though? what are the benefits that a single -- a central bank would get. >> one of the immediate financial benefits is they don't have to print money anymore. that is one of the immediate financial benefits. one of the other benefits is you will have more targeted my trade policy. you will about the central bank to directly control the finances country, directly pay

interest on people's accounts and target policy that way. matt: for example they could have a different monetary policy in some areas of minnesota than they do in some areas of arkansas? or different monetary policies for people over 70 and people under 20 because that is the amount of control they would have on those accounts. a it would be really mediation of big banks. it would be the fed doing get directly. oliver: why is bitcoin the mechanism through which that become so much more easy to do? >> really what they would do is create their own form of digital currency. they don't want to be messing around with something that was probably made in someone's mother's basement. they will come up with something from scratch and figure out their own way to do it. matt: using block chain

technology? >> yes. they will use underlying technology, block chain technology, but do it in their own proprietary way. the thing about bitcoin is it is very open to the public. anyone can see the amounts. right?t is democratized, the miners keep the controls. they have their own miners. >> yes. i don't think the fed would want to democratize monetary policy. they would not want the kind of people we know running monetary policy. matt: this is a serious longshot, very long off. interesting to talk about. we could do it for hours. what about actual bitcoin? we see a fluctuating so much lately. it had a huge spike earlier this year. how do you explain it. more buyers than sellers or more sellers and buyers. i think the market cap is a

couple billion dollars. who knows why does the things it does. matt: the volatility we see in bitcoin. does that have anything to do with them not moving into a currency they are not familiar with? also security and privacy concerns that people have. people don't necessarily want the government knowing how much money they have who they are giving it too. oliver: great chat. morgan stanley and has a great article out in "the wall street journal." ♪

york,it is 1:00 in new 6:00 in london, and 1:00 in hong kong. "bloombergcome to

markets." from bloomberg world headquarters in new york, good afternoon, i'm oliver renick. matt: i'm matt miller. we are covering stories from washington, rio de janeiro, and london. oil on track for its biggest weekly advance since april after saudi arabia signaled it prepared to discuss stabilizing markets after crude tumbled into a bear market last week. we will hear from the eia administrator. something president obama, hillary clinton and even donald trump can agree on, corporate tax versions need to stop, so why isn't anything being done to stop them? exclusive interview with the ceo of manitowoc foodservice. the company reported lower-than-expected quarterly results. we will ask him why the brexit

vote are hurting the company's bottom line. we are halfway into the trading day. let's go to the markets desk with julie hyman. losses accelerating a little bit after that trio of record yesterday for the three major averages, the first time in 1999. all three major averages now around the low of the session. the dow jones leading losses down by nearly 60 points. pretty volume is lackluster on this summer friday, down 18% on the s&p 500 over the 20-day average. i want to look at it over of .tocks on the move we have been watching alibaba om, as both reported earnings that beat estimates. alibaba is trading at a 20-month high. to extend itsng

games, so some strength or these chinese online retail companies. alibaba, going back to the lows of the stock, which were incidentally the lows of the u.s. stock market, have risen by 57% since then to this 20-month high that we see today. elsewhere, best performers for the week have to do with earnings. health solutions was out with earnings that beat estimates earlier in the week. lp also beat estimates, up 18%, as did nordstrom, who reported yesterday. strength atey saw the rack in particular, where sales were up 11%. macy's having a strong week after its earnings report. looking at some of the other asset, commodities, the dollar, crude oil rallying on this talk in saudi arabia that there could

be discussions to stabilize prices. natural gas rallying on the heat mideast.ddl this morning, after we got the worse than estimated retail sales and wholesale inflation data, we saw a drop in the dollar but has since recovered. right now only down .1%. oliver: a little bit of weakness but overall, lots of green on the screen. let's check in on the first word news. mark crumpton has more. hillary clinton has widened her lead against donald trump in three battleground states. secretaryll finds clinton with a bigger lead in colorado, virginia, and north carolina, while maintaining her advantage in florida. here are the numbers. colorado, clinton has 46% to trump's 32%. in virginia, clinton has 36% to 33%.

mrs. clinton's presidential campaign says she and her husband made 10 point $6 million in 2015 and paid in federal tax rate of 34.2%. they also donated 9.8% of their income to charity last year. clinton is trying to undercut the trustworthiness of donald trump. he says he will not release his returns until the irs completes audits. the clintons have disclosed returns for every year since 1977. updating its zika numbers, saying there have been more than 1900 new cases over the past week. that brings the total to 10,690. the newest statistics were released a day after the u.s. surgeon general visited the island and said he expects a quarter of people there to be infected by the end of the year. the international monetary fund sent the first heart of its loan to egypt will be $2.5 billion.

the executive board is expected to approve the loan in the coming weeks. initial accordn with the imf for a $12 billion loan over three years. it is designed to restore investor confidence and ease a foreign exchange crisis. 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. thank you. crude oil is heading for its biggest weekly gain since april, trading near $44 a barrel as saudi arabia signals is ready to discuss stabilizing markets at an informal opec meeting next month. this comes after oil fell into bear market territory last week, and natural gas is also rebounding, snapping its longest losing streak since december as the weather heats up. this morning, the u.s. energy administration adamson minsky joined tom keene and francine lacqua to get his take about the state of supply and demand in the energy market. >> on the demand side, let's

talk about oil and natural gas. we have record high financial gas, we areith burning up a lot of gas. that is starting to slow down the decline in gas inventory. generating a lot of electricity in america from natural gas. side, we are seeing a lift on demand on the global bases, the numbers will be well over a million barrels a day. we are starting to see supply and demand rebalance. by the end of the year, into early 2017, i think oil markets on a global basis will be much more balanced. 200-day moving average on brent. the bounce. at him, tell me what the demand doom and gloom gets wrong. they say there are older prices

going lower because of weak demand. ? where are they wrong ? >> they are not looking at the supply side. the problem is not demand but too much supply. as applied in to taper off, and we are starting to see that the saudi's cannot go much higher, as well for iran, iraq. libya, things are not going well there. so the supply is not growing as much now as it was a year ago, with demand continues to inch up on economic growth and population. it will rebalance. would say it is the dynamic between the micro and macro view but also the upstream and downstream dynamics, particularly in the u.s. the market is going to rebalance, but when will it come into balance? it keeps on getting pushed back by a couple of months. >> it is trying to time the exact nature of both the supply

and demand side, which is an impossible task. you can look at the trends, which are taking us in the direction toward rebalance. on the consumer, -- side, things look good. gasoline down to $2.20 a gallon this summer in the u.s. that should help, too, to keep those miles driven up. >> do you expect some of the oil exporting countries to stabilize the markets? is the wishd this of saudi arabia, and yet they are pumping. most of the opec countries that understand the global markets have been pretty clear. what is going to fix this is more demand than lower supply. lower supply is more likely to the impact of less a drilling, than it is to come from political deals to cut production. that when he

administrator adamson minsky. matt: we want to walk you through a little bit of terminal action here on the bloomberg, show you how you can prepare or the heat and humidity that we are experiencing your in new york. is a great way to pull up a weather forecast, believe it or not. let's put in the new york area code. current temperature right now, only 90 degrees outside. when you can see a seven-day forecast as well. oliver: it is burning up here. raining, but it is humid. six to 9%. -- 69%. matt: take a look at a roof shot from 731 lex. butrgeous look at the city,

one where you want to find an air conditioner.

oliver: you are watching "bloomberg markets." i'm oliver renick. matt: i'm matt miller. the bloombergor business flash, a check on the top stories in the news right now. evidence rose less than expected in august. a three month low of 90 in july. payrolls have shown strong gains for two months and wages are slowly increasing. shares of h&r block on the move after on confirm speculation that the company is on the block itself, for sale.

the article says h&r block is getting ready to sell with management targeting $35 a share. that article cites unnamed sources within the company. oliver: anglo american's attempt to sell a nickel mine in brazil has stalled because the bids are too low, according to people familiar with the situation. they have not formally ended the sales process. the ceo has repeatedly insisted the company is not running a sale and will rebuff offers that do not meet his expectations worried matt: matt. the last few days, we have had a lot of talk about dow theory. we have it all time highs on all three major indices. but we have not had a very good load -- good-looking transportation index. ,t may not seem important today

but it is important to technical analysts. what i have on the bloomberg is a chart that you can see in our library, 2695. this shows you the dow jones transportation diverging with age.nternet each of the past two times that we have had the dow transports diverging down from the nasdaq, the two have come together by the nasdaq falling, rather than the transports rising. what do you hear when you talk to investors about dow theory, is it too? old school oliver: it has been a positive weight or the markets, but there have been a lot of savvy people to look at this. various technical indicators, it is arguably one of the stronger ones. even if you don't think about

if you keep it to the fundamentals and realize what the companies are that you are talking about, it provides an important lens into the economy. for that reason, a lot of people watching it. matt: trucking, shipping are key to growth. i am looking at the gold rally, or the lack thereof. it has been stalling out recently. gold is in a bull market. speaking of technical indicators, this is looking at a moving average, the divergence. basically looking at momentum, where things are slowing down. matt: what are we seeing? panel, the bottom basically what it is showing,

momentum is slowing down. the story that i found interesting was the idea that gold basically has two sources of demand. one is for investment, one is for the input into the jewelry economy. you are seeing a drifting downwards in the jewelry part of the demand. gold is getting more and more expensive, harder to justify buying at these prices, but people are using gold as an investment now. i think we have seen that from a lot of investors, talking about getting along on gold, gold speaking about the economy, but there is a shift underway, for sure. a lot of people in mining, i don't know if they are unhappy, but they have noticed a shift. using them asthey a proxy for gold, but they are using etf's. interesting look at a couple of charts. you can access both of those in

the btv library. ahead, volatility has not been kind to tech ipos this year. what are the headwinds preventing companies from listing? let's take a look at where stocks are trading. moves here one-week in the major averages. we hitttle changed, but all-time highs yesterday for each of the victory. .ow jones at 18549 this is bloomberg. ♪

matt: this is "bloomberg

markets." i'm matt miller. oliver: i'm oliver renick. deal activity for starters continues to decline after hitting record levels a year ago. so where are the ipo's? fox and cory johnson are with us now on bloomberg radio. that was acquired by salesforce.com. also companies such as football fanatics, which was later , which was later acquired by ebay. welcome to our bloomberg television watchers. joining us to talk about technology investing is the managing director of insight venture partners. in different correct, thank you for being here. tell us about your background. some of the companies you were invested in that have

been acquired. tell us how you got started and when you look for in a tech investment. >> i started my career in investment backing at the data banking and the blackstone group. then i worked at another company for 10 years. i have been at insight since 2000. technology has always been a passion for me. want large, addressable managementperior teams, and something that actually has a defensible mode. the challenge in a lot of businesses, whether technology that the competitive landscape is complicated because it's too easy to get into the business. we look for things, that once you have a business, it becomes harder for competitors to replicate the product offering. we see these trends, i was talking yesterday with someone about the identification of

mobile cloud of mobile cloud social, the dominant trends in tech investing. hasou get a sense that ai stepped in and machine learning is a new trend that is getting a lot more focused than it was five years ago? earlyolutely on the stage. we are more later stage, growth investors. the business models around ai are still at the early stage from an evolution standpoint. likeu look at technologies magically, others in that space, that raises significant amounts of capital because there is a significant potential for applications starting in things like gaming, but over time, lots of interesting industrial applications as well. if i were giving this interview three years from now, my guess is it would be a very active area for growth equity investors. >> what is the worst investment

you've made? investment, which is appropriate, being on this show. >> i hope not. >> we bought a company a few , which was a05 print business and online business focused on the i.t. sector. happen, the print business, not surprisingly, declined faster than we expected it to. then the recession hit. advertising dollars dried up quickly. very, very difficult, and people see you today in constant business today generally to build a scalable business model. if you look at our portfolio, you will not see a lot in the way of online content, even though we are all consumers of online content, we think the ability to monetize it in a way

that is scalable is very difficult. wins, youas big prefer to sell the company to a salesforce.com, in the case of buddy media, or prefer an ipo? >> it depends on the market conditions. there are points in time when the iq markets are very robust, willing to put valued businesses significantly higher than strategic investors. --other times matt: we have breaking news, fox news has announced a new senior leadership team after roger ailes was -- left the network. copresident are being appointed, seniorernathy and executive vice president bill shine. those two will serve as copresidents of fox news, according to a statement

released by fox news, by rupert murdoch. it was unclear how long murdoch was going to stay in that role, which is an atypical thing to. this was clearly his decision to do this. saying, jack abernathy has been critical to the success and launch of fox news nearly 20 years ago, so these are not newcomers. this does not surprise anybody that he is choosing people that have been in the company for a long time. also worth noting, a lot of other executive shifts going on. matt: suzanne scott was appointed to executive vice president of programming. a lot more to comb through. we will do that for you. this is bloomberg. ♪ [ clock ticking ]

time. you only have so much. that's why we want to make sure you won't have to wait on hold. and you won't have to guess when we'll turn up. because after all

we should fit into your life. not the other way around. ♪ everything is cool when you're watching a screen ♪ ♪ everything is awesome, ♪ when you're sharing a meme ♪ ♪ a voice remote, "show me angry kings" ♪ ♪ you know what's awesome? everything! ♪ ♪ apps that please, more selfies, ♪ ♪ endless hours of the best tvs ♪ ♪ brand new apps, shows to go, ♪ ♪ awesome internet that's super whoa... ♪ ♪ everything is awesome xfinity. the future of awesome. oliver: from bloomberg world headquarters in new york, i'm oliver renick. matt: i'm matt miller. this is "bloomberg markets."

let's start with first word news with mark crumpton. airstrikes in opposition areas of serious all of the province struck a market, hospital, and village today. rescue workers said 18 people were killed including children and to hospital staffers. government troops have sealed off the main run into aleppo, effectively trapping 300,000 residents. in thailand, a series of bomb attacks have targeted the countries tourism industry. exploded into resort towns, killing four and wounding 20. foreign tourists were among those injured. the government says it does not know who is behind the attacks. vladimir putin has hired one -- fired one of his closest aides. he says he is replacing sergei ivanov as chief of staff at his request because he had been in the job too long. v is a former defense minister, once considered a

likely successor to putin. the state law targets more than $1.4 million in funding that planned parenthood gets through ohio's health department. the law would bar the fun that goes to entities that perform or promotes abortions. general motors will try to shield itself from $10 billion in liabilities from its faulty ignition switches. gm says an appeals court made a mistake when it ruled the automaker could not use its 2009 bankruptcy to protect itself from hundreds of potential lawsuits. gm says the lawsuit could permanently damage the bankruptcy process that saved it from collapse. 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. thank you. restaurant earnings have disappointed this quarter, and it is not just the usual chains that are feeling the pain.

take manitowoc foodservice, a major supplier of commercial restaurant with it. the company missed second-quarter estimates saying in part to a 9.6 sales drop. it lowered its guidance and has plans to goes -- close up some plans by next year. joining us now is the president and ceo hubertus muelhaeuser. thanks for being here. i see a bit of a discrepancy, the stock has been up huge since the spinoff. the outlook is being cut down. are you resetting expectations? story isvestor completely sound. this year is a transition year, we are cleaning up our balance sheet. we are focusing on profitability. the new management team and the leadership has taken over and every corner we have improved profitability. this quarter was a very strong profitability quarter. we achieved 16.1 even. margins.

16.1 margins. we have lowered a little bit by one percentage point the topline outlook for the year. we have done that because we see some softness in the qsr. matt: being -- >> quicksort restaurants. -- quick service restaurants. we have seen some softness in the last few months. matt: why is that, because people are eating at home more? the trend for millennials and everyone else is eating out, so that is there. of course, restaurants are confronted with rising input costs. labor gets more expensive, minimum salaries, energy costs

are rising. the only thing that has not risen is the food cost, but waste is an important element. that pressure right now is helping our business long-term because we are providing the right equipment to fight those input costs and bring those costs down. we are all about applying a food systems solution to the kitchen, changing the kitchen, increasing the output with less footprint. the outlook for us is good, and help the investor this year. we have a guidance of 70% profitability, and we are keeping that firm. oliver: let's take it back to your comment at the beginning, doing some cleaning up on the company side, talking about getting profitable, looking at the margins here, about 37%. that is pretty big. when you look at the expectations for this company, improving on your profits, is it

by cutting cost, cleaning house, on a growingon economy? thing about the food service agreement industry is it is driven by innovation and total cost of ownership rather than price competition. this year for us has been traditionary. in the sense that we have had to clean up. we have had overcapacity and we announced a tough restructuring program last year. by the end of the year, we will reached 50% of our overall targets. cutting away product that is unprofitable in moving into more profitable. are at have that and we the profit margins where we want to be by the end of the year, we focus on the topline. that is all driven by innovation. right now, we introduced nitro-infused coffee with one of

the largest chains on the planet. that these innovations will make changes in our organic growth going forward. for thel solution occasion is another area where we can grow, so we think positively about the future. oliver: talking about the profit margin, what is that? >> if you see us this year at tda margin, we want to move them into the 20's. this will happen over a strategic planning cycle, three to five years, but we are confident we can achieve that brande we have a strong and we have all the equipment needed in the professional kitchens. you talk about how innovation dries your topline, but you supply restaurants and the american consumer. how cyclical is your business, when you look at the numbers on the economy?

are in a stable business. in the last 50 years of the industry, it has been constantly growing by couple of percentage points. in 2007, one blip 2008, but it is constantly growing. player. global we have very strong growth .eported in europe, for example we are also in asia. we are a true global company. we do not see this as a cyclical business. the interesting thing is we have a natural hedge in our business. half of our business is with a large qsr, and the other half is with the general market. what you see is the economy is booming, people tend to a great eating out. the general market is profiting from that.

matt: we had a retail sales numbers today that were flat for the entire economy, ex autos. what makes you confident? people are concerned about the restaurant business. what makes you confident that it will continue to grow? people have to eat outside. eating outside is still cheaper then eating at home. the world population is growing, millennials like to eat out. there is a little bit of pressure right now, interestingly, with the soft commodity prices coming down. it gets cheaper heating at home, hence the input cost pressure on also help us. we have just lowered our guidance because we see some growth in those markets. we have evidence that

productivity is slowing down because companies are hiring people and not willing to spend yet on plants and equipment. when you are saying, in the restaurant business, it is the other way around because minimum wage is pushing up the steep costs. >> the industry has been we see thisd continuing. there is a need for a large segment of the fast food to reinvent the kitchen. productivity increases are desperately needed. minimum wages are in the kitchen. automation needs to happen. bettern only happen with machinery and more sophisticated technology, which we provide. that is going to grow the spending of the fast food chain and general restaurants. could not have ui without talking about one of your mouse -- most well-known investors, carl icahn.

there is a function here where we can see the ownership. what i'm looking at is about an 8% stake from carl icahn. you also have some pretty big stakes in there. as the leader of a company, do those largehave ownership stakes by very active investors, are you beholden to them, do you want them on there? >> without carl icahn, i would not be her today and the company is not doing as good as it is. to separate the crane business from the food business was absolutely the right thing to do. i am very thankful that he put that pressure on. thatquently, it was clear the manitowoc foodservice needed new management. he supported the hiring of myself as ceo, but also a new cfo, coo. secondly, i do not see him as a short-term investor.

his holdingat patterns, if he likes an investment, he stays there for a couple years. see him as very supportive on our long-term strategy, and we are happy we have him. carl icahn is not on the board, represented by his general counsel. .e talk from time to time as i say, we are happy to have them. at our other investment base, we have some interesting names. abrams, who is a long-term intelligent investor. o. have knesic -- kensico. matt: fascinating stuffmatt:, great to get your take. we appreciate your time. muelhaeuser, president and ceo of manitowoc foodservice. matt: almost everyone condemned conversions. theer: so how can one of

biggest inversion companies continue to score government contracts in the millions? this is bloomberg. ♪

matt: we have breaking news. stepping down as chief investment officer or george soros's family office, less than a year in the role. k had been the head of promoted before being to this role. he will remain in his current position until a replacement is found, then he will return to

running a credit portfolio at the firm, according to people familiar with the matter. a spokesperson or george so was declined to comment. there is a great tidbit in that story as well. this will be the seventh time that there is a new chief since he by soros scaled back. obviously, a lot of turnover happening. maybe there is a conflict of direction. maybe soros just changes his mind a lot. time for the bloomberg business flash, a check on the top stories in the news right now. u.s. retailers were little changed in january. americans flocked to car dealers at the expense of other merchants. excluding cars, sales fell .3%.

june was revised upwards 2.8%. oliver: jcpenney is making progress to rebuild its business unit retailer posted a smaller quarterly loss than a year ago as sales rose 1.5%, in line with estimates. we feel good about the state of the consumer. we feel the onus relies on the retailer, to give the customer a reason to shop. we had an event a couple of weeks back, and it was significantly successful for us. we know that when we have the right message with the right product, the customers show up. oliver: the chain still has a way to go to regain the stature that it lost during a disastrous reinvention attempt about four years ago. shares of nordstrom rose 13%. departmentark -- store chain reported earnings that beat estimates. they were help i hire sales at its rack stores.

and its annual anniversary promotion. oliver: another sign that inflation is not likely to spite soon. wholesale prices fell by the most in almost a year. the producer price index fell .4%. in big reason was a drop food and energy cost. clothing and jewelry also fell. matt: tax and versions are back in a news after donald trump are new to his criticism of the financial maneuver this week. hillary clinton and president obama also disapprove of the practice. but what is being done to prevent u.s. companies from shifting their legal addresses abroad, in order to lower their tax bills? joining us now is zach mider, bloomberg money and politics reporter. everyone seems to be against it. is anybody actually doing anything to stop tax inversions?

>> president obama has done a few things to tighten up the tax code around the edges, to make toharder for companies actually carry out an inversion and become a foreign company for tax purposes. matt: to this reminds me of the soviet union, when it wanted to get its citizens to stay, it just built walls and said we will shoot you. instead of making the soviet union a better place to live. zach: the underlying incentives are still there, strong as ever. the republicans take the view, let's just change the incentives, so companies don't want to leave. democrats agree, but also want to do things in the short-term to make it harder to leave. the story we wrote about today is about one of the ways democrats and republicans came up with to make it less pleasant to be an inverted company. back in 2002, they said you could not get federal contracts if you carry out an inversion. stake throughs at

the political cycle for a company that is either inverted, or intends to have a corporate inversion? will they cast their ballot one way or the other, is there a clear difference between ms. clinton and mr. trump's plans? donald trump is talking about a lower corporate income tax, repeat treating that money. from a corporate tax perspective, he is -- he would do more to remove the incentive that companies have to shift their legal addresses abroad. matt: it's interesting because he has no problem filing bankruptcies in order to maximize his profits but has a problem with inversions, which are completed within the law. seems like your duty as a ceo, a needed to shareholders to do something like that. you hear that a lot from ceos. why should we be held at a disadvantage against our competitors who do business in

the u.s. but do not have the same restrictions? they pay a lower tax rate on u.s. businessman companies in the u.s. do. are they doing a tax inversion, have they gotten a contract? zach: they were one of the originals, they did it in 2001, during the first big wave of inversions. after that, congress and we cannot allow this to happen. federalke away their contracts. they passed a law targeting ingersoll and other companies. ingersoll is allowed to have contracts, and we have not gotten a good expedition as to why that is. matt: lobbyists. if there is one guy that we can count on to do some good reporting on tax inversions, zach mider, thank you. matt: coming up, we hear from an expert who says the brexit may well spell the end of the european union. this is bloomberg.

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oliver: this is "bloomberg markets." i'm oliver renick. matt: i'm matt miller. brexit turmoil may have into support for mainstream politicians and the eu. the london school of economics and political sciences visiting fellow philippe legrain says this is unlikely to last, and could end up destroying the european union. we spoke with him about the eu elites response to the brexit vote. what i think is likely to happen is that brexit is going to come as well as damaging the uk's economy, we can the euro zone economy, which is already pretty fragile. that will exacerbate political polarization. britain leaving will exacerbate the dominance of germany in the

eu, and in turn, will provoke a backlash against germany and the eu. with this research of desert resurgence of nationalism across , a weekend, divided eu in capable of dealing with all the many crises it faces, i think, the risk of further unraveling is very great. >> is there anything that can be done to counter the rising nationalism? happening but is it does not look like any of the leaders committed to the eu project have any particular ideas on how to keep the eu project together, or strengthen does not alsohat exacerbated the countervailing forces of the anti-eu movement. is there a different approach they should be taking? philippe: the eu ought to be doing less, and the better.

in the eurozone, there is this obsession with creating new institutions. the real priorities should be on better economic policies that deliver higher living standards for everyone. looser things like fiscal constraints, more investment, lower taxes on wages. politically, the focus ought to be on what is the biggest concern of europeans at the moment, which is cross-border cooperation on terrorism. instead of trying to force governments to take refugees they oughton't want, to be focusing on a voluntary scheme for willing governments. better, i think, is the right way forward. >> what have been the shared economic benefits of the eu so are -- so far? how we ended up at this stage if the eu was a good idea

for all the countries involved economically? benefits the biggest is the eu single market, the increased trade -- what has been brought to all the countries that are members, what do they have to show, for all the great things? made them muchs richer. nobody is aware how much richer they are thanks to the eu. they just now see their living standards stagnating. legrainat was philippe matt:. coming up later today, more on retail sales with jack klein chief economist of the national retail federation. this is bloomberg. ♪

>> it is 2:00 in new york, 11:00 in san francisco and 7:00 in london. julie: "bloomberg markets." welcome to.

in new york. we are covering stories out of san francisco, rio de janeiro, and china. closed ataverages record highs after pulling back. the best materials and financials are leading the decline. are talking with ason schenker. and the clintons have revealed they have made $10 million. does this put the heat on donald trump to reveal his tack returns -- tax returns?