david: we are live in bloomberg world headquarters in new york. stories from san francisco, chicago, and washington. stocks circling in a holding pattern as investors await write a speech from janet yellen for clues on when to ask that higher borrowing costs. then a big surprise on the housing front. raise borrowing costs. does not have many fans among silicon valley -- silicon valley leaders. talking to an early investor in twitter. about twoose and hours. update.want to get an the news with hillary clinton and her campaign saying a 400%

price increase. shares are at the session low, down 2.8%. a look over the past four days. this is a story that has been going on since this past friday. now down by more than 9% on the news. so far, no comment regarding hillary clinton's comments on the outrageous prices. taking a look at what is happening in terms of the majors. off of the losses here. the dow, s&p, and nasdaq are off by a quarter percent. commodities pretty much down across the board. copper also falling. inventory report with 2.5 million barrels. oil is now near the session

lows. taking a look at what is happening with the s&p. right now it is down by only nine points -- five points. we saw it falling with energy stocks pulling down the s&p. i want to show you exactly what i am talking about. is basically the a tradingerms of range on the s&p. the biggest trading range just for today is six points. this is for the entire year to date. , when you talk about the dog days of summer, this is it. food stocks are coming up. and part because of commodities

that have been falling. we are expecting a bump or yield . those falling prices are giving a push for food stocks. starbucks is higher. coffee prices are falling. the parent company of outback steakhouse is up by 1.4%. breakfast stocks -- breakfast-related stocks are down right now. down .7%. if you want to eat breakfast by yourself, it is getting cheaper. >> a check of the bloomberg first word news. dead and person several others wounded after militant attack at the campus of american university of afghanistan and kabul.

mark english told the associated press that security forces were on campus, and " we are trying situation."e they also cite a spokesman who say authorities are trying to evacuate all personnel from the campus and search for the terrorist. rescue crews in central italy are in a desperate search for survivors following a powerful earthquake that left scores of people dead. puts the death toll at 120. 3:30 localound time. vice president biden calling on authorities to be patient with the u.s. legal system. a cleric accused of masterminding the failed military coup. turkey has commanded the u.s. extradite the islamic cleric it blames for the attempt.

of wrongful death lawsuit brought by michael brown's people ineking ferguson, missouri. the court rejected a request by brown's mother to let three more attorneys see what the judge called highly sensitive information. the fatal shooting set off days of unrest. news 24 hours a day powered by more than 2600 analysts andnd more than 21 -- more than 20 countries. david: journey to the main event, janet yellen speech on friday in jackson hole, wyoming. she faces great expectations. the next guest says she may take a page book from ben bernanke's playbook. good to see you. i want to get your sense of what

you expect from janet yellen friday. i think of the role in this conference. she was not there last year and the euro for was a very academic-performance she gave. >> i do not think she will provide that kind of fixed with it guidance. part of the strategy right now is not to give guidance like that. every meeting is life, and if the data comes in stronger, then the fed will hike. i think that is the kind of framework they are operating under. they are operating under a challenge where i think the case for raising rates the sheer is growing. the unemployment situation is growing. labor markets are healthy. time, the fed does

not have much tightening to do in the longer run. i think yellen will speak more about that. when i say ben bernanke's playbook, what i mean is the recent blog post where he talked about declining neutral interest rates. about thealking strength of the dollar and how that impacts monetary policy and the globalized world that we are in. david: looking at my bloomberg, i just want to pull up this chart. looking at the odds of a september hike. -- last year his when stanley fischer spoke. he began to talk about employment being at the right place, focusing more on the rest of the fed mandate. what do you think that will be the subject of conversation cap

down john williams talking about what the gdp target should be. what is the monetary policy required to keep that? if you just look at it from a early is ?he fed at its full day full employment, the fed getting to 2%, then the fed would hike. that is why i think the of neutral interest rates, strength of the dollar, i think that is the argument that yellen has become more and amer with. she talked about productivity being weak because of technological innovation. that is clearly monetary policy is not equipped to deal with that. yellen believes a lot of

the weakness is a function of very weak capital deepening. monetary policy can deal with that. if you are able to boost psychology about longer run , that could get business to invest more today. that includes capital deepening capital.rn boosts i think they're finding themselves outside the core. you have new housing yesterday beating by a very large percentage. that was a bit of disappointment here. give us a sense for how that factors into the health of the economy. >> i think the housing market is unambiguously improving. i think that is what you would expect. we are seeing that.

important to remember this represents close sales. sales are an indicator for activity. existing sales are always going to be a larger share of the market the new home sales. that is good for homebuilding stocks. that is good for home furnishings as of late. thank you for joining us. a quick programming note, we starting full coverage tomorrow and continuing through friday. full analysis of janet yellen 10:00 eastern time at 3:00 london time. don't miss one of the biggest voices friday, including james bullard, robert kaplan and dennis lockhart. new home sales dropped. discusses homebuilder

what this week's data is about the industry recovery. an exclusive interview coming up next. this is bloomberg. ♪

david: this is bloomberg some of the look at biggest business stories in the news right now. drivers for amber's food foodery service -- uber's delivery service in london are vowing to strike this week. the strike is scheduled to begin friday. buying 9.9% of the empire state real of tea trust. wealth acquisition translates to a $622 million invested it. the sales of previously owned

homes in the u.s. fell from a nine-year high. they fell to an annual rate of 5.4 million homes. the first time they are declined in five months. the national association of realtors said inventory is told tight and would take less than five months to sell out the current supply. businessour bloomberg flash update. a homebuilder join mark orton and myself to speak with us exclusively. we asked him if the housing market can withstand a higher rate. >> absolutely. the key measure is affordability . there is an affordability index that measures average house payments compared to median .ncomes it is a very good ratio right now. there is opportunity for a little more house price appreciation and mortgage price appreciation so to speak before gets into troubling territory.

>> can we talk about your own company. you are foregoing revenue gains to pay down debt. tell us the rationale behind this right now in the cycle. >> because the high-yield market has been a little more $320enging, we paid off million of debt over the past werer seven months that we planning on refinancing. as it turns out, we were planning on paying off even more debt but we are able to push out maturities. overall we do think it is the right time to be leveling off the debt, revenues, and continuing to focus on repairing the balance sheet. >> when you look at the united states, what are the regions that are most appealing? , the texasingly

market, which everyone has been understandably worried about continues to be strong, including houston. texas is very strong. southeast florida is a very strong market, a lot of demands. diverseave a very portfolio as you look at where things are headed and where you always take resources. -- are theresex particular sectors that are of greater interest to you? >> we play the whole field, and that is part of our strategy. are focused on the aging baby boomer, the markets over 55, a rapid growing sector. it happens to be a good niche for us. that is one we will probably

wait a little bit more. david: speaking to us earlier on bloomberg markets. 55, a rapid growing sector. it happens to be a good niche for us. that is one we will probably wait a little bit more. reshapechnology that could the global economy. facing the issues framework behind digital currency, governance. this comes as companies look to it drop -- adopt a block chain in order to revolutionize the way business is done. peter quite has been following this door he enjoys us now. you have looked into the wider implications of block chain. there are easy applications for banks for the financial sector, but tons of other companies are interested. how could it revolutionize the economy and business? >> it is a trust protocol. away to take the internet and build a layer of trust so that when you do a transaction with somebody, both sides have a read on what has occurred. thanks love it because it can eliminate a lot of the paperwork doingople that go into

transactions. there are much bigger opportunities where people are just beginning to get a glimmering of. imagine airbnb without the company in the middle of the transaction. he or two. renting out rooms to each other or uber, drivers and passengers meeting online in a very trusted way because every transaction is right there. people can come together through the mechanism. david: it makes me wonder what the future is for regulators. for lots lose the need of regulatory apparatus if you know someone gave eczema the money to someone else. >> i think regulators like this because it eliminates the tedious part of the job, bedding paperwork. it allows them to focus on the that is nothe stuff

easily put into a smart contract. the real criminality versus just one more transaction after another. david: we are going to get viewers a preview. it strikes me as technologically. . it is fairly simple. with soas been viewed much philosophical and political input. a lot of the people behind block chain are computer programmers, but that is a very -- libertarian community. the thought has been, keep the government out of this, code will rule. the group you mention the meeting starting today in ontario. i just talked to them as they were driving to the summer

compound. they are thinking we need some sort of government mechanism, even if it is only hours, because we have had some bitcoin and hacks, questions about which block the right one and wrong one. there needs to be something for that, the same way there is for the internet. you.: great to talk to as we had to break, donald trump peaking at an event in tampa, florida, at the florida state fairgrounds. he will be speaking later in jackson, mississippi. later tonight. you can watch the speech on the bloomberg. this is bloomberg. ♪

david: this is bloomberg "markets." fighting crime from

10,000 feet. a surveillance plane has been circling the city of baltimore since january. from chicago. now the company is persistent surveillance systems. you top picks and sibley with the company's founder. what is this plane able to do? the plane is a regular cessna but it is outfitted with a very sophisticated array of cameras. basically 12 high resolution cameras that are all fixed together. that produces an image of the city of baltimore that is 30 square miles. it creates a real time constantly updated google type consult,the police can and if an incident happens anywhere in the 30 square miles,

analysts on the ground get that image and consumed in on the exact location. the thing that really makes this attractive to the baltimore likee is it has a tivo capability where it can fast forward or rewind. the baltimore police have images of the city taken by the plane, and they keep those for weeks. they can just go back to them.nts and investigate they see it as a really powerful tool. david: there is a robust conversation here about privacy. baltimore did not come out and tell citizens that the plane was going to be up there. what legal ground stuff but company had to do this? >> there have not been yet, because it has not been known. likes to cite a

couple of supreme court cases from the 1980's and 1990's that ruled police and helicopters and planes, for example, and one of the cases the plane went up to see over the fence of someone's backyard in a plane to see if that person was growing marijuana. that case went all the way to the supreme court, and they aled the police did have right to do that, because from public airspace they were seeing what anyone else could have seen. isthe company's view, that it to happen. there is some privacy experts who take issue with that and say that the persistence of the technology, that it is up there for hours and hours of the time is a whole different ballgame, and those supreme court decisions they say should not apply. just wonder how well it

is working. does the company say it has led to any reduction in crime? >> a do not have data yet. they can give examples of crime they have worked on. i think they are working to put together hard figures. it is really hard to put a number on that. david: the cover of bloomberg businessweek. an incredible video about the .rogram you can hear from reporters in the week's most talked about stories every saturday and sunday. coming up, the commodities close. this is bloomberg. ♪

from bloomberg world headquarters in new york, this is bloomberg "markets."

we're taking a look at nymex crude down two point 75% or so. -- 2.75. 2.5 million barrels added last week. mining giant glencore posted the worst happier your profit since listing in london five years ago. the question, will things get global head of commodities research, as morris, was asked whether there is merit and all the miners calling the bottom in commodity prices. we actually called the bottom in february. it is a supply-side story, and every commodity has a different supply-side story unfolding. >> that leads me to copper. mineore saying a copper will come on in the first half of 2018, and that has been the question, when do projects sanctioned a year ago, online and delay the rebalancing?

>> copper has certainly been a supply-side story. it is a china demand that story. but the supply was the story of the year. haveis like copper prices gone nowhere. we had a 6% increase in supply globally. peru not known to be a major copper supply your. copper is lurching toward about balancing point. 2018 or between now and 2017. we expect a couple of thousand dollars bounce and copper. guys who have production shot in can really benefit by that. >> what is a copper bounce in dollars? >> you just look at global supplygrowth and where has gone and added of the potential minds that can come

back, and it will not be enough to balance market. that can comeines back. you don't not know when it will start, but it will be system gained inventory. he will have some projects , and it is probably not enough to get us into a supply market. alix: diesel imports of china and -- copper into china. exports are still really high. they are still turning out copper production. does that wind up getting the heat like the glencore's of the world? they will be losing market share to the biggest buyer. it will be a timing issue and when for certainly has a role to play. zincnk this think -- market will be more telling. prices have gone through the roof so far this year. our outlook.ised

glencore is sitting there with 5000 tons of capacity that could be brought in to the market. that was the work for a lot of people. the easy way to define the market was tuesday oversupply. you told that story in a bar youwere talking about zinc, would be wrong. why hasn't the supply come back up in a material way? >> because there is uncertainty? you do not start up unless you are confident you are going to profit by it. if you think the price increase is a temporary phenomenon, and the best example is thermal coal. the export market was not ready for it. you have a 35% increase in the underlying commodity. the underlying momentum is not

sustainable. much supplyt too that can come readily into the market. that is not the case with industrial metals. we have not seen a drop in the cost of production. we see no increase in orders that could be mined. it will be a deficit story for the last half of the decade. david: ed morris speaking earlier today on bloomberg . a check of the headlines. mark crumpton has that. much supply that can come readily into the market. that is not the case with industrial metals. we have not seen a drop in the mark: the prime minister of italy says 120 people are confirmed dead following an earthquake in central italy. he to her the area and pledged government support. the area that took the brunt of the quake, he said the town is not here anymore. a powerful earthquake shook my several peopleg and destroying buddhist pagoda is. the powerful earthquake had a preliminary6.8

score. south korea says a missile fired from a north korean submarine. miles, theut 300 longest such it -- distance achieved by north korea. that means all of south korea and possibly parts of japan is within distance. the olympic flag is now officially in tokyo. tokyo is now counting down to hosting the 2020 event, the second time the city has had the 1964.after bidding for 2024 underway, and contenders include test, rome, and los angeles. the winner will be announced next year. global news 24 hours a day powered by 600 journalists and analysts and more than 620 countries. david: just ahead, we are

sticking with politics. we will speak to george zachary who wrote a post criticizing donald trump's immigration policy. we will discuss that and then silicon valley negative impression of trump. donald trump speaking at the florida fairgrounds. you can watch it on the bloomberg. be speaking in jackson, mississippi, a bit later. ♪

david: this is b the hillary clinton campaign is on the defense. this is bloomberg "markets."

the ap saying the majority of non-sanctioned individuals met funded she or her husband campaigns. the cacophony surrounding the clinton foundation continues him at the fact that bill clinton has said this is the shape the foundation will take going forward. is this something that voters we called it not that long ago in the national poll a couple of weeks ago. people who said they were bothered a lot by the fact that foreign governments and foreign entities give money to the clinton foundation. there is still a small majority who carry about her recklessness or what they see as her recklessness. democrats do not care. i don't know how much people in the middle of the electorate

care. but from the clinton campaign standpoint, they sort of thought after the fbi director said i will not in that you, they thought the politics of this was .ow behind them this has now put the foundation, moving away from the home server, as put it back in the news at a time when it felt like hillary clinton was leaving dust. trump in the it has put them on a position where they are on defense for the first time in a long time. david: what do you make of how the clinton campaign is dealing with this? was what isd getting lost in all of this, the foundation accepted money from foreign governments but it went to good use. i've heard that over and over again, let's not lose sight of what the clinton foundation does. >> the clinton foundation does , evenork, and most people

people who buy the argument will say the clinton foundation does good work. that is not the point. the point is we thought donors, foreign and domestic have had what they were not supposed to have, which was by means of the foundation and foundation staff, toirect line of access hillary clinton. now the question for people, do you care about that? donors for charities,nd everyone is trying to get access. if you cannot show a quid pro quo, that policy was changed, i don't care. other people think this is a little unseemly you get a million dollars to the

and now you are setting up a meeting in the next morning you are in hillary clinton's office. i think people have different opinions about that. what obamais not intended when he made her secretary of thought that would the clear wall between clinton foundation and the secretary of state office. david: i saw in the new york times, 60% thoughts that democrats would retake the senate. what are you seeing their? >> it is the case because of the state in play in the number of republicans who are defending and purple or blue states, it was always the case republicans would have a tough, 60% thoughtt democrats would retake the senate.

senate cycle in 2016, just as they were structurally favored in 2014 because of the way the map laid out. trump is in the 30's and many polls, he is a weight around the neck of a lot of senate candidates. there is not a republican in washington who does not think the republicans will lose. were held today, democrats would probably retake control of the senate and would gain some seats in the house. republicans inof washington scared and wondering when comes numbers will get low enough that they had to cut the cord and say we are done with you, no more money or focus. always great to talk to you. the former governor of michigan will be a guest and a hillary clinton's order. staying with politics, immigration continues to be a big clinical issue.

something proponents talked about. interestingly, he will join donald trump at a rally in mississippi. the partners of charles river ventures have had enough with donald trump and his rhetoric on immigration. one of them, george thackeray, joins us. you wrote in a strongly titled op-ed, entrepreneurship begins and ends with a powerful immigrant spirit. it is about knocking down walls, and creating the unthinkable from scratch with a small auto of winning. we have had enough. the crv united rejects donald trump's candidacy for the president of the united states. why do this, and why do this now? do noto this because we believe in what donald trump is saying about immigrants.

immigrants basically formed the --kbone of technology, companies. why do this now? two weeks ago we talk about our strategy and tactics of building the firm and building startups. we realized what we were all talking about after that is that donaldus were against trump policies on immigrants. not just as individuals but as a firm. we would talk about this as a and we needed to be authentic as a firm. david: i should say you are using this as a springboard to founders like these up. you have the off-site. partners are talking about it there. have you talked to other colleagues? also talking about this issue? >> we have not talked to other specific firms.

i am sure other individuals do talk about it. we have talked to individuals that are firms and do not like what donald trump is talking about. we hope we inspire other firms to take a public stance about it. silicon valley depends on having immigrants to build startup companies. silicon valley really forms the backbone of technology companies. if you look at the most viable companies in the world in silicon valley, quite a few have immigrants in them. speak ander thiel did voiced his support for donald trump. i wonder what you thought of the argument he was making in favor of donald trump? >> peter is certainly entitled to his opinion. i do not have much to say about what peter wants to do or say. opinion endorsing his

or against his opinion. i am not sure if he is doing himself any favor with immigrant entrepreneurs. david: what i think a lot of people took away from his appearance is how much of an outlier he is in silicon valley. in the statement you put on the website you said you and your partners reject donald trump's candidacy. >> we are not endorsing any specific candidate. what we are saying is we are against donald trump's values against internet -- immigrants, specifically immigrant entrepreneurs, the spirit of building something from scratch, which is what this country has been based on. and we're havere seen the obama administration make a more concerted effort to engage with and work with silicon valley. ahead to the next

administration, what more could washington do, should washington do to make the divide less last >> i think been? continuing to encourage bringing immigrants into the country, specifically technology-focused immigrants, versus rejecting them. if we continue to reject them, we will lead to building technology centers outside the .nited states we will build silicon-valley centers outside the u.s. and inken the u.s. as a leader technology and weaken the u.s. as an industrial leader. that would just be catastrophic. great to speak with you. that is george thackeray, co-author of a piece on donald trump. check it out. time for a look at the biggest business stories in the news right now. royal bank of scotland has a message or 3000 of the clients, go find a new bank.

-- u.k. andhe u.s. ireland acquired the business in an ill-fated takeover. getting out of it. that has for some multinational companies to find new banks. let the ratings drop on the $12 billion in debt or let -- take steps like flashing dividend or selling off assets. and best -- investors are looking for signals from the board on how to proceed. the borrowing costs could be higher. we will be discussing this in a few minutes. is recalling more than 88,000 cars in north america. the reason, a fuel pump problem that could make the engines stop warning. ford taurus and the flex wagon, thelincoln mk t suv's from 2013-2015 model years.

that is bloomberg business update. coming up, more on the boardroom battle. you getting ready for a bond battle coming up next. this is bloomberg. ♪

david: this is bloomberg "markets." looking at beautiful new york city. 86 degrees here in new york. for viacom with the ratings drop on the debt or take steps like slashing dividend or selling off assets. executives are looking for signals with the revamped board on how to proceed.

analysto bring in our was been covering this story. how strained is the balance sheet? >> it has $12 billion in , which is not great, but not the end of days. i think 2 billion plus they have to pay over the next few years. they wouldnough cash be able to pay off the debt from continuing operations. i think the concern is they would not then have money to spend on investing. it is a company that really needs investment. the movie studio is not performing well. is to spendest ways on new programming you think will reverse the fortune. >> what kind of rating does the debt have? >> it is at the lower end of the investment grade.

the rating agencies who of looked at viacom recently have either reduced the rating or have reduced the outlook that if they do not do x, y, and see, they will downgrade them. it is up to the new board to decide which route they want to take. people we spoke with did not seem that scared of being downgraded. they felt the company would survive in that case and just have to spend more to borrow money. the board may not want to do that because it would be another negative indicator of the status. selling the 49% stake in paramount creates $4 billion. is it likely that any members of the new board will have sympathy or want to think about doing that? >> it would be surprising because most of the board members are loyal to or suggested by the redstone family, which had above the

opposed the sale of paramount pictures and used that as a reason to go after philippe. the other thing is they train -- change the bylaws so you would need unanimous approval. all of the old board members and the redstone's would have to approve it. that seems like a big ask. david: there has been conversation about merging with cbs. are the august greater with that?-- odds greater with that? theret gets tossed out all the time. i don't know that the new board changes anything. i think the real question is when the board goes over the state of the business, which they are doing right now and will continue, they have to come up with a plan for how to fix the company and how to improve the network.

if they think the best way to do that is to put viacom back together again, there will be conversations between shery redstone, the cbs board and the ceo about all of that. we have gotten no indication so far that is the path it will take because it is so new. david: thank you for joining us. has bouncedantas back. the australian airline announced its first dividend since 2009 after record profit. during hear from the ceo the next hour. the major indexes all in the red, but narrowly. narrow trading here. this is bloomberg. ♪

>> it is 3:00 p.m. in new york. welcome to bloomberg market. ♪

david: we're live from bloomberg's world headquarters in new york for the next hour. silicon valley, washington, and australia. the final hour of trading but no sense of urgency for the market. titrating range waiting for news from the fed later this week. ridenuing a roller coaster waiting for the opec meeting next month. a surprise gain in u.s. stock piles last week. many airlines are struggling to impress investors this year. reporting record profits and paying dividends to we will hear from the company's ceo. just about one hour away from close in the trading here in new york. matt miller has a look at the latest. matt: yes, let's look at the majors. looking at the s&p, checking to see whether the range of trading is