welcome to bloomberg markets. ♪ we are live from bloomberg world headquarters in new york for the next hour, covering stories out of san francisco, chicago, the united kingdom. here is what we watching. stocks are under pressure. the fed will move soon on interest rate. shery ahn: a key measure of inflation, the price that came a change -- unchanged for july. vonnie: ford just announcing is a big invest in driverless cars, expanding its facilities. we hear on the ceo on his will have a fully autonomous vehicle available in 2021. like we said, it is one hour on the close of trading in the u.s. let's head to julie hyman.

julie: it does not look at the any change in the past our big as we had a remarkably consistent day today. pulling back from yesterday's gain, a pattern that has typical and also a pattern that has become typical is lack of the moves once again today. take a look at this chart we keep up dating and extending as this streak has an extended, 27 straight sessions without a move of at least one sent. here's the last one back on july 8. now is the 27th day the s&p has not moved i at least that much your -- much. thosee seen after we got ill dudley comments, that at least a september rate increase would be on the table. he said in an interview with fox business. we saw a yield on the two-year jump at that point also helped by data that came out better than estimated this morning.

definitely a key reversal there. also we have an watching the u.s. dollar, which has consistently been heading lower today despite that data as we saw the yen reach 100 versus the dollar for the first time going back to late june. crude oil price is on the website were rising. that is the classic inverse relationship we tend to's eight. shery ahn: still a few stragglers coming in today. it is centered a lot on the retailers. the hp, another company as well that came out with its numbers. the company also indicated that the worst of the commodity downtrend is behind it . that accounts for the increase in shares today. depot withil, home

its earnings. positive year-over-year gain, on the flip side, it is only matched at mitts. that may account for the weakness in those shares. coming out with numbers that missed estimates, earnings per share raised its estimates for the full year but still below what analysts had been anticipating. dick's sporting goods continuing to benefit from the bankruptcy of competitors, so though shares are up by 8%. that,nk you so much for julie hyman. mark crumpton has more from the newsroom. mark: a donald trump's spokeswoman is denying a report that roger ailes is advising trump's campaign or helping with big preparations. the new york times reported earlier that roger ailes is helping trump prepare for his first date with hillary clinton. the newspaper also said his role in the campaign could be extended beyond the debates here

and mrs. clinton has jumped to a big lead in virginia. the washington post gives her a 30 of 52, 38% lead among registered voters here the lead shrinks to 7.1 third arty candidates are included. trump's negative image is helping clinton overcome her own liabilities. kathleen kane is resigning a day after a perjury conviction at a grand jury case. also announced in a statement she will step down at the end of the work on wednesday. accused of leaking grand jury egrets to embarrass a rival cuter who she blamed for a critical news article. her lawyers say they will appeal her conviction. the united nations says it is bravely -- gravely concerned about civilians, of particular interest is the fate of thousands of children. violence there has worsened in recent weeks. syrian opposition monitoring group sent a wave of airstrikes

in parts of the city, killed at least 15 civilians and wounded many others. news 24 hours a day powered by more than 2600 journalists and analysts say more than 120 countries. this is bloomberg. back to you, vonnie. you, now to the economy taking center stage in this election and trade. both candidates oppose the transpacific partnership and donald trump wants to pull out of the north american free trade agreement. agreement on the decline for the past few years according to a pew research center survey. chairman at wl ross and company and trump supporter and donor, book about trade, politics and the breadth and vote. >> balance the books, i'm not sure the books will ever be set rebalance. the trump plan calls for

simulating the economy and thereby generating more revenues for governor. so i will give you a couple of examples. reducing the corporate tax rate will have amean huge effect on our ability to export because now a company could reduce the profit margin by 20% and yet still make the post tax profit. >> most companies do not pay that 35% rate. >> we all do, it is just that some of them have other deductions and it's from it. exporters areajor the second thing is

freeing up the bondage from the bed trade agreement. our death that in trade is over half of $1 trillion a year. could just cut -- cut that in half, that is $250 billion per year more for the economy, more tax productive revenue, more job, -- more jobs. mark: carry on. advantage ofaking our natural energy sources, and not imposing all of attack burdens and other regulatory burdens on them or those are great trains on the economy, as is overregulation in general. a noneconomic question, but i know it is when our viewers would eager to hear. it is a we also asked tom yesterday. how do you marry the fact that

you're a donor to trump and you are an economic adviser, how'd you marry that was some of his more outlandish views, whether on the second amendment, on obama and isis, whether it is on muslims, whether it is on the in's, how do you marry your economic interest with some of the more contentious statements that are coming from the presidential candidate? >> his rhetoric is a little more exotic than my own. you have entered meet -- interviewed me a number of times and you know that here and i think a lot of what he says is taken out of context and out of portion. isedia have an saying, he going to start a trade war by them posing warty five cent tariff on china. what he actually said in his trade beach was, if it turns out that china is distorting its current he by as much as 45%, we

might threaten something like a 45% tariff. that is a far cry from saying he is just going to slap his 35% tariff on. so i think a lot of the feeling about his rhetoric is generated by the media as opposed to by the man himself. to ask you, though, could you have done your job as chairman of the company that made auto-parts and had 20,000 employees and 800 countries if it were not for things like gas? but -- a peculiar problem. all the countries in it have the same boat. smallest one has equal power to us. as a practical matter, that means we are regularly out voted ivs 40 nations. i will give you the most glaring example. every big competitor we haven't trade has evaluated tax,

refunded on export. we do not have evaluated tax. the wto will not permit us to rebate on next or the corporate tax paid by x orders. i want to move to your investments and we can continue the trade assessment another time. europe at the moment and particularly post brexit vote, britain, have you a lot of investment are now? >> we sold one of our larger ones here in we had the largest railcar leasing company in europe. fine, good company, doing but we think both the eu and britain will be heard by the brexit. vonnie: that was ross, company chairman speaking to us this morning. , i want to have a look

the trade balance with eu 27, versus see that here non-eu countries, 28 of them. the deficit is made up i about two thirds with eu companies. the gap is widening, 12.5 billion pounds in the second quarter. they need to make sure they can do that, policymakers hoping a weaker pound will give exports. buying a lot more from europe and other countries outside of europe. that is not good. >> it does not help that the sterling is just weakening. help and thisoes is an interesting chart i have for you today, it is helping the fine wine index. not miss saly there is a those out he, but you can see cheaper

sterling has made it easier for people to invest in fine wines as an alternative invest. we are seeing the fine wine index, the white line there at the highest since november of 2010, representing a price movement of 100 of the most sought after fine wines, in the index, it has been interesting, that alternatives are getting this kind of attention. that is helping so many investors in asia and the focus on alternatives in order to get has yield out of the market returned and we are seeing more folk is in fine wines. cheers to that, i guess. coming up, our exclusive number interview with carl icahn. what he says about the presidential debate. this is bloomberg. ♪

shery ahn: this is bloomberg markets. to a bloomberg exclusive, r.o.i. con is seen taking prominent positions in the company to herbalife and netflix among others. with carlzker spoke icahn about a variety of including trump and why he's considering running a super pac. considering itm at this moment in time to what i'm doing is really moving against some of the regulations the epa has, like under the rug.

i think they are completely and totally illegal. we're going against refineries. you will see in the country a lot of smaller refineries going bankrupt as a result of the regulations where these are minor is, you can make it simple on this tv show, penalized for something that i cannot do. asy are saying they are possible for blending with ethanol. that is finding kept nobody will the gasoline we blend with ethanol. i own refineries and i obvious he had been agenda here, but it does not matter. really standing up to what the epa is doing. that is one little in them all of what is wrong with our economy and that is alliance they. i'm really getting involved in that this moment in time. i did not go on the economic committee because it is me the room to do a super pac and we are considering that and i think we will do one, but i do not

want to say i am definitely doing it until i am. but i am saying we came out with a big paper and we will continue. i think it is reprehensible. >> it is one thing to write a letter to the epa and it is another thing to write a super pac bell challenge some of the regulations that you find so chafing. it is another thing to conflate some concerns you have about the civic and arcane regulations that are in place governing refineries, and we knew fields, with a whole presidential campaign, isn't it? is butt certainly they're are not mutually exclusive, obviously. i do not want to say on the program that i will test plainly dollars in a super pac, until, to thepeak, i am talking people that would be working with me on the super pac. that said, i do not want to say

something your that you call me back in a month or two from now and say, why didn't you ever do what you that you will do? but i besaying to you that we will in an argument with epa. do you -- do not get me wrong. do,eve in some of the they i think it is necessary. but what they are doing here, i can honestly not understand it. i was business life, there doing his wrong and dysfunctional, but there is always a good argument. there is no good argument for what the epa's doing. i thought with so many companies --, you know, at the risk i've made billions and billions and billions for investors, but what i'm trying to tell you is i have never seen any as absurd as

with the epa's doing here. >> let me ask you this. what matters more right now as we seek, making or somehow forcing the epa to eat these changes whether it is through the power of your pen, the people who might be watching this conversation, or a super pac you start, or, on the one hand come i am asking you, what is more orton, to change the rules, putting downtrodden office? carl: they are not mutually asked us if you then again, i would very much like to see donald trump when this because i think he is the only hope to save his is in america the way we know it. vonnie: -- shery ahn: carl icahn speaking exclusively with erik schatzker. go ahead and today houses options in eight, our trade and frequent shares recent a share. this is bloomberg.

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shery ahn: it is time now or options in with julie hyman. julie: joining me today is david, a stock strategist joining me from out in chicago at this the boe. have stocks bouncing around at the highs here. we have seen a pattern where every time over the past month, a close at a record, they did the following day. is there anything we can take away from the last couple of days? away the metl take is at the technical aspect. my levels.ng and extension levels. i look at the viewer a low of

1810, then i look at the june highs ran around 21 and 20-ish, and a draw a retrace meant, and they happen to be where the support was. through thosens june highs, now i use in tension going in the direction in the first is 100 and 3.6 m which puts us at 2190 p.m. the s&p hundred. so i think a little bit of technical pressure at that level, that is what we're seeing, to push us on to the other side. >> yes, we will deal of the more than in his from there. we are also winding down the earnings season and getting a lot of retailers here and and it has been a mixed bag. last week, some strong numbers from department stores. today in the trading of a lower on the tjx trading a little lower. lastyou're looking once again, s

something you have talked to us about before. look at yournd trade-in looks like that one where how well. it will also keep on going -- going up and it did. >> that is right. i'm in shares and if i am looking at the option here, there is a lot of volatility price in here and i'm looking at like 8% move on earnings. i feel like a magic -- the magic is there for you can only sell 15.2%h and i eventually, same-store that they had less order, i do not a hit with the righteous this quarter. i think i put a call spread on last time. i'm going back to old this time. case, i will say the options market has it right with

the move, and i think they are maybe a little overcooked and i will put spread on the end of that range. long as it is between 285 and two for five duration on august that will make $390 so sounds pretty good to me. >> that is a wide range to target. is that a relatively trade put on as a result #-- result? >> yes, i'm selling the options premium so i'm getting 390 into my pocket. what i have to have as a margin on either side, what i will have as a risk here will be 610 on the -- on the trade. when selling a premium, you will not hit a huge home runs as you would with the call spread, so

, in you flip it on its head will take in 390 that it will not be a monitory you to put it potentially did the. >> all right. thank you. great to talk to you as always. and i will toss it back to you ladies and i do not know finds eking out a turn but after today, shery ahn is leaving and returning to hong kong. yes. ahn: thank you so much and i will see you at hong kong though. thank you for everything. much more to come up on bloomberg markets. prize-winning economist paul krugman. this is bloomberg. ♪

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mark crumpton has more from the newsroom. mark: hillary clinton's campaign says her transition to the white house if she wins in november. the unveiling of the transition project marks and intensifying of preparations that began months ago. a new wildfire has a rep did in the mountainous area of southern cal one in your interest rate. the main highway to a vegas. you are looking at live pictures now, san diego county department spokeswoman tells the associated press the place is in a sparsely populated area. dusty lanes and loads immunity. loss 50 miles these of angeles. an agency is proposing tougher medical exams for pilot. drug and out half screening,

inc. is a mental health assessment and a better for evening cap for mental on this. the history of depression crashed a train, killing all 100 and 50 people on board. 15 prisoners at guantanamo bay have sent to the united american emerson desperate this -- -- some have been held at guantanamo bay for more than 14 years. doesn't of those prisoners are from yemen and three in afghanistan. in global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. oliver: about 30 minutes until markets close here in new york. let's go live to the nest where we have abigail doolittle. a down day all day.

off session lows just slightly but nonetheless down. let's look at what is dragging today. big story all day has been shares the organic company plunging, on pace or their worst drought on record after the close, they said there are accounting issues. the reaction has been bearish. there are some defending the stock. we wanted to get to the bottom of this. this afternoon, we were fortunate enough to speak to anthony, an analyst who did cut his ratings and his estimates of the main take away here is uncertainty. until the company finishes an internal audit and there is an independent audit done in young signs off on this, we will -- we will not know how badly the revenue recognition issue is. a lot of nt there. as for whether or not this makes the company more chat if, some

analysts say no and some say yes. at a this is a hugely attract acquisition for the brand and and acquirers are probably celebrating in order to pounce once there is more clarity as far as what revenue record-ish and actually is. is an interesting story and one we will pay attention to in the league ahead. >> quite a bit of red on the screen today. what else is dragging the and as back down? is an interesting story and one we will pay attention to in the league>> another stock toda, along.com. shares are down sharply dragging on the nasdaq. a good second quarter, they offered a fine forecast as well. one downgrade out there to market perform siting evaluation, it is rare to see a doctor dropped so much more than 9% on valuation thomas ashley in the text of a good order. we spoke to an analyst who follows it as well.

he is saying that he thinks what could be happening is investors were looking for a blowout quarter. it was a good quarter but not a blowout. plus, one of the biggest investors in the stock, they have been on the board as of yesterday, no longer shareholders, they fear there are no longer restrictions around how they sell shares your it that could pressure the stock. as for howard smith at first analysis, he's the lunch on the stock. he has an overweight rating and he said his is an -- a company in the infancy stage of a high-growth area and they are executing well. another want even eye on. oliver: all right, abigail. thank you. cpi, price pressure seemed absent among much of the economy that two areas see momentum. medical costs and rent.

our next guest says nothing is soothing about that. michael.s now is thank you very much joining us. on the surface, it looks like inflation was subdued with core cpi coming in later than expected. you pointed areas that continue to show inflations are building in the economy. it looks like this is a complete and total victory, the lower we have seen it in a while. when you get down into what changed, what you see is a rate down into whether a particular category is stick inc., which means it tends to trend, or whether it is for all, meeting it moves around a lot. if you look at the stuff that is trending, those is continue to move higher. care. like housing and

medical care in particular was disturbing and today's report. things dragging down core were things like new cars and trucks, apparel, things that move around a bit. >> how much of that, when you look at health care, how much has an attributable to the affordable care act, how that is spinning and now cares days, and is that something you can change at all with this election? >> i mention that will be a topic of debate this. a couple of things coming whole bunch of things going on in medical air. we think is a rebound from previous low levels of inflation from what a medic patient were restrained temporarily and that caused medical care to die for some time and part of what we're seeing is that is coming back.

all the five major subcomponents of medical care, doctors and half dose, equipment and drugs, all of those things, each of them make celebrated -- accelerated this month. >> really gatherings theme from a couple of years ago. >> that is right. p are the insurance cost are going through the roof. >> obamacare would change the direction of that question mark -- that? >> there is no reason to think with the affordable care act, if you are going to increase the demand for health care, it is not clear why that would cause the rate of health care inflation to decline. >> you talked earlier about flexible stuff versus sticky stuff.

does the flexible stuff 10 to follow the stickies? -- sticky stuff? >> we look at the important part of vince laois. we're seeing now, we have younta fed broke inflation can tell it tends to move around quite a bit and the reason they did that is they believe the sticky stuff is to what leads an overall trend. heart -- another chart is the year-over-year change. this is a tenure chart. you can see the line. what are we seeing here and what is ultimately from your takeaway, what does it mean from the fed? >> it is the same story, that most categories are accelerating.

things like housing, the rings you buy. 60% rising faster than 3%. what is tracking core cpi and all the headlines down our large negative changes jump around about. if you're at federal reserve, and thefocus on that fact that they are high and rising. it is now probably second-best time. forichael, thank you showing us how the report may not have been what it appeared at first look. coming up next, we will

talk about the latest investments in ridesharing to knowledge he. this is bloomberg. ♪

oliver: this is hundred markets. , thed the technology death

automaker will be making additional investments in ridesharing and autonomous vehicles and doubling the other workforce at a silicon valley technical center. for hopes to have a fully autonomous vehicle by 2021 available. mark feels is standing by with emily chang intel a lot to -- emily chang. emily: we are at two new buildings at board adding to its location. mark, thank you for joining us. how many for itself driving cards -- cars are on the road? >> we will start messed losing a level or via, fully autonomous, it will not have a hearing will title,s pedal or a break and we see the first commercial applications am a a ridesharing service, in major cities. 2021 is where our intent is to launch. modest,start off fairly

as we start, you know, signing up customers and also be able to populate some of the cities with his vehicles but we see it growing over time and we see it eating a good business for us in providing a lot of societal benefits or folks. emily: you are doubling your workforce and investing in technology companies. this suggests a more go it alone toroach to -- when it comes self driving cars. >> we asked three important questions when it comes to the development of autonomous equals and a lot of different areas. one is where do we want to play and second is how we want to win and third is what are the capabilities we need. we look at autonomous vehicles be at we have been at this for over 10 years and have a lot of engineering know-how. you can you from him of the partnering we are doing with great technical partners, we have said in some cases that we cannot do it all ourselves. we are partnering with a lot of different companies to allow us to realize the vision of getting fully autonomous vehicles on the

road. emily: a lot of small deals rather than one or two big one spirit why? you want to avoid sharing the wheel with another big company? >> not at all. we are not in a race to make announcements. we are in a race to do what is right for our customers and do what is right for our business. looking at the technology roadmap for delivering fully autonomous vehicles and speaking out -- seeking out partners that will help fill in the spaces for us that we have worked on for the last 10 years. emily: we have seen so many big invest its in the car industry and the tech industry. gm is buying for $1 million and investing in lift. apple is investing $1 million in volkswagen. why have we not seen you do deals like that? >> we are not in a race to make announcements. we are in a race to do what is right as we want to serve our customers. we have always said that we are open to everything and every thing is on the table for us.

we thinks to make, as about those things, it has to make sense for our brand and create how you for our company. that is the lens we look through . we talked with everybody just like everybody else does. emily: how do you imagine working with a company like uber without a deal like that? >> we are doing some pilots right now. we have done some ridesharing for the past year-and-a-half thomas him with vehicles and somewhat shuttles and we will continue to do that. at the same time, keep talking with others and he what makes sense from a business model standpoint in terms of how we can make a good business opportunity but also at the same time, facilities sidle need. emily: google remains a big fire in this space. ford and deal with google not work out? could it happen? >> those conversations are private but again, we always rent to the lens of, whoever we talk to, would this make

business sense for us, does it help build our brand, it is there a cultural fit as well? emily: google and apple are approaching this as building selforms for the car, for driving cars, rather than actually making cars? >> i cannot speak for google or whatever apple is doing in clearly that is their approach from the business they have now. i think there is an underestimation here. a lot of will think the tech companies will just come in and do better than the car companies p are we respect our competitors but there is the brains of the vehicle, the virtual driver system, and then there is the vehicle platform. we are the ultimate systems integrator and we have an doing this for over six figures. -- over 100 years. and you look did, at the technology and the roadmaps, there are things others do better than we do. we are open to partnering and just as we have announced today, four new partners.

emily: tesla is focused on a more semiautonomous model. there is an invest edition going on related to one of the ashes in which one died using autopilot. you are focused on fully autonomous. your car will not have a's hearing will. why not go the semiautonomous way? >> i cannot speak for tesla and we are in a leader -- a leader of euro to driverless features that will review in your lane, back to you in stop and go traffic and we will continue to invest and be a leader there. at level four, we have a lot of confidence and we believe in the plan that taking the driver out of the loop is important because the no man's land of at what point do you have to reengage the driver in a level the type ofof the loop is the, we are sth understanding, how do you do for the on sibley driver and that is why we're focused on level or.

emily: someday once you get your cars on the road, a ford sell -- self driving car will get into an accident. it will be rare but it will happen. who is liable? mark: we have to have a discussion with regulars and consumer advocate groups and insurance companies. this is clearly one of the areas where we will have to all work together and him up with the policies, regulatory but also legal policies. emily: one investment you are making, i spoke to the head of a self driving car company who said they want cars on the road by 2021 as well. will this investment help you get for self driving cars on the road in china? >> lee coel led the next series of invest for bella dein. we were not partners with my do. they are just one of the financial earners there.

i would not read anything more into that. our china strategy, we have a good is in china and it is growing and we think about mobilities aleutians there, we're thinking about, how do we play a role in that in addition to the orbit of selling great cars and trucks. emily: thank you for joining us. joe: thank you, emily. up, out ofming style? investors are no longer holding gold etf. this is bloomberg. ♪

scarlet: let's take a look at some charset illustrate interest in friends in the. i want to start with brazil, home to the best-performing stock index this year. take a look at this chart. is up 69% ine

dollar terms in 2016, 30 7% gain over the past 12 months, which is what we have illustrated here. it is now bumping up against the average -- the blue line highlighted here in yellow. the spread between the two is now the narrow with its april, indicating analysts see less room. pushing of all kinds of brazilian assets, for that yield on the hope that the interim president will be able to affect economic changes and turn that country around. a chartminds me about that oliver showed about the u.s. rising interest dictations pretty much everywhere you look here at >> may be conceptually. i like that of someone who does, that does not happen very often. down.ime, it went back it will be interesting because it has in such a bullish market.

i will look at a stocks related chart but commodity looking at gold, a good -- quite a bit of a drawdown in the past couple of flows areme of these slowing. we're largely talking about the spider etf's. you can see how positive those have been on a daily basis year to date. a lot of big-name investors have been talking about getting into gold, a rough start to the year. a little bit of a drawdown in the past couple of days, part of it is the risk on rally were equity prices have done well and also is in -- it is interesting that you have in this name thing happen with gold etf. specialist had a great point about this today. million outflows in the inverse etf. >> the miners have had an insanely good year. -- if you owning gold

look at the levered minor ones, some are like 1000. but yes, i guess not surprising you see these come out of that. all right, i want to point out some data that came out today. we got the latest installment of the wage growth track. people have looking at this one a lot. it showed wages and -- accelerating. i still thought it was worth pointing out that if you zoom 3.6%ith a tape down from to 3.4% here in july. the atlanta fed tries to adjust the average hourly earnings and tries to replica it that and tries to extract away some of the distortions you get some demographics is tough like that. i do not think there is a petite and the reason to panic but there is a lot of excitement. it is worth pointing out that the trend today wasn't enough. cite thedo more people

wage tracker or do they look at the average hourly earnings and the monthly jobs report? people citing see the employment cost index as evidence that it will take up here they say look at the measures. they are probably signaling higher wage growth in the future. but the average hourly earnings is probably the key benchmark. scarlet: that does it for "blo omberg markets." after closing at record highs, the dow, s&p, and the nasdaq on course to finish lower. this is bloomberg. ♪

scarlet: we are moments away from the closing bell. i am scarlet fu. joe: i am joe weisenthal. "what'd you miss?" ♪

stocks closing lower, slipping from all-time highs. joe: "what'd you miss?" the take on the election, fiscal stimulus, and the fed's next move. ways in on magnus the economy and trade after the brexit vote. washingtonpdate from , going dark in colorado and pennsylvania. scarlet: we begin with market minutes. stocks retreating from record highs. housing starts beat estimates, , but iter than expected is the commentary from fed officials that may have changed the tone in the market. joe: