i have no idea what donald trump will do in november. what ts said the past is not a basis for what he would do in the future. has said in the past is not a basis for what he would do in the future. is so low.n if you look at the outlook of inflation expectations, for example, in the eurozone, they hit pretty much a record low recently. we are you underweight? >> are underweight because while we are bond investors and still think they play a very important role to protect you against bad finding bettere values in other sectors of the bond market. to the fact we want government bond exposure. thank you for joining us

from pimco, head of asset allocation. we are going to now take a check 2:00.kets at a couple of hours left in today's trading. for that we go to abigail doolittle. lots of chinese internet stocks on the move based on actions i jp morgan. baidu shares are down sharply, one of the worst drags on the nasdaq today. after j.p. morgan downgraded to underweight, they say the core internet search business is under pressure as advertisers are looking to go to mobile platforms. a stock already down 10% this year. well. are lower as j.p. morgan has downgraded this stock to neutral. margins could be under pressure despite strong cash flow.

position on the sidelines or the sensel stance makes more with a $29 price target, which does suggest some upside potential. traded, so itdaq is not influencing the index. j.p. morgan called alibaba the chinese amazon.com. 30% upsidere dead with a price tag it -- price target of more than $135. that is what is happening at the nasdaq. doolittle at the nasdaq. thank you. i am vonnie quinn. cohost is iny washington, d c . c. >> getting ready to interview the undersecretary of international affairs. going to mark crumpton in the newsroom. mark: dilma rousseff is the second president to be impeached

in the 31-year-old democracy. the senate vote was 61-20. him fromded not to ban seeking public office in the future. she was accused of using count -- accounting tricks to have the signs of a budget deficit. she sent a tweet that read today is the day that 61 men, many of them charged and corrupt through 54 million brazilian votes in the garbage. the u.s. agency leading the butt against the zika virus run out of money to do so in the middle of next month. the center for disease control it event -- prevention says is there. republicans and democrats have not been able to agree on a zika funding measure. the obama at the station will distribute at the $3 million to 44 states in an effort to curb

opioid abuse. it will make sure the antidote is widely available. the administration is calling on congress to provide $1.1 billion in new money. it will reauthorize 100 eight when million in new spending. unemployment continues to fall in germany, a sign that europe's largest economy may not be hurt the u.k. decision to leave the european union. the number of people out of work fell by 7000. the unemployment rate stayed at a record low of 6.1%. news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. stocks have been relatively flat. vonnie: stocks have been relatively flat. the beaten-down financial sector

is looking up. for other market trends, i want to bring in marco -- mark reagan. come back.sizable >> if you look at the major industry groups, the real defensive dividend plays performed the worst. utility stocks down 6%. financials, the biggest companies stand to benefit from higher interest rates. thanks -- banks, especially kbw, up 6%. that has continued to be the case post jackson hole. now we may be only looking at one interest-rate increase. >> to me, a lot of this goes back to brexit. the s&p dropped about 5.3%.

kbw bank index dropped way more than that, 12%. the rest of the market bounced back pretty quick. bank index took a lot longer, until early august, to really get back to where it was. it took those stocks to get more comfortable with the idea that brexit was not going to be a major problem for them. that helps to explain the rotation. brexit would keep interest rates a lot lower for longer. part of the rotation, to me, is a delayed reaction to the market normalizing after it became clear brexit was not going to be as big of a deal as people is worried about -- had worried about. >> that make sense to me.

we are dealing with a real downturn in telecom stocks and utilities. what accounts for that? idea it brexit the would be known for a long time. much cherished for dependable, high dividend yields. that is why they are described as bond proxies. it makes the dividend look attractive. kind of normalizing now. what is interesting is yields have not jumped too much since jackson hole. 10 year yield 20 basis points brexit.fore the stock market seems to be ahead of the bond market and anticipating where rates will go. >> i am here in washington today, so had have to ask about politics. what are they saying? what are the conclusion about the upcoming elections?

>> a very interesting phenomenon. fromstruck me was a note raymond james saying he had gotten a lot of e-mails from clients and friends of his do you think it is donald trump candidacy that is causing this rollback? reason iss say the more that it is a blowout. looking like a blowout in terms of hillary clinton. -- in favor of hillary clinton. what very hard to say exactly politics is doing at this moment. i am not sure there is a whole lot there that you can conclude based on that. all of this is over in an hour of 52 minutes or so. downgradedbusy with

to all sorts of things going on. >> trade volume was very slow. the average before august was 7.7. that is a noticeable drop-off. last august there was a frenzy of treating around china's evaluation of the currency that in the markets. the average daily volume was almost a billion shares last august. naturally is there is skepticism involving any market trends when market is low like this. so take that for what it is worth. vonnie: we will. we do have breaking news out of europe. the caretaker prime minister of spain has lost the first attempt to take office for a second term

. more than 175 lawmakers voted against him. once again, losing a confidence parliament.ish david: investors are keeping a close eye on the federal reserve next move. here is matthew four and block, head of interest rate strategy earlier today. >> the labor market is just fine. i think the fed participants believe that as well. a strong number could increase the market implied probabilities in september, but we think the fed will look through that and focus on inflation numbers that from our perspective have been somewhat disappointing. not only in the united states that outside the united states where you conceive the inflation numbers disappointed in europe, and last week they disappointed in japan as well. there is a global inflationary

trend that we think the fed will not be able to ignore when they come together in september. >> it is so difficult to read from the coming different views from the fed. >> i think you have to look at the data. the fed will be data dependent. think the fed will focus on the inflation data as they come together around the table in september. >> i know you have a call of five-year treasury that didn't pan out. how low can yield actually go when foreign investors keep liveg in? >> yields can go -- quite low if you'll go elsewhere are low. that is what we are seeing outside the united states. the last time the treasury was

sitting at this field level, yields in japan were 100 points higher. the environment is low yielding. we see and investors reaching for yield almost everywhere we look. we think the five-year treasury is sitting around 1.2%. we think there is plenty of room for the yields to fall as we move forward into the end of the year. david: that was earlier today on bloomberg. vonnie: more breaking news out of brazil, dilma rousseff lawyer they will appeal her and peach meant, and that will be entered as soon as today. the impeached president from brazil. that was the impeachment vote earlier today. this is bloomberg.

♪ \ >> this is bloomberg "markets."

i am david gura and washington today. -- in washington today. vonnie: the u.s. government has filed an antitrust lawsuit between monsanto and deer. the u.s. says that when a limited competition and raise .osts twitter jumping in wednesday's trading. after the cofounder told

bloomberg television that twitter must weigh all of its options amid ongoing speculation the company could be a takeover target. >> mike davis high. -- my faith is high. >> we have seen a lot of m&a. do you see twitter remaining an independent company? we are in a strong position right now, i think, and as a board member we have to consider the right options. the stock is down with than 17% so far this year. sell -- will the specialized genes or via and to other parts of the company but the change will not affect yesterday -- next year's plan. latest bloomberg business flash. david: donald trump is in mexico

ahead of his immigration speech tonight. to take lace he is meeting with the mexican president at any moment. i want to bring in carlos rodriguez. the trip came about very quickly. not a whole lot of plan -- time to plan. do we know more about how it came about? to bothnt an invitation candidates friday, and the only candidate to except so far was from. he is landing in the mexico city airport to take a helicopter to meet. david we have not learned much about what they're going to talk about, at least from donald trump. have we learned what they may be noting about today? >> really. we have heard from people close to the president, such as the finance minister.

said that this meeting needs to take place because they have to have a dialogue with any political force in the u.s., regardless of the chances for one candidate or the other given the commercial and socioeconomic between these two countries. vonnie: how will just reflect on the president? >> the reaction, especially on social media has not been that 12 for the president. there is a lot of anger. a lot of people are asking why are you meeting with mr. trump, and why are you meeting with him now? the day before -- day he is expected to do a speech on immigration. there is no reason for why, except for the ones i just mentioned from the finance minister. the truth is, he has a very low approval rating. it is 23%. tomay see this as a chance

turn the table, and he makes a big flash and get something positive from the meeting. he can probably get some points on the ratings. expert we have talked to today, the downside is very big. more likely to have a downside than the upside. outs downside is put percent. that is the chance of trump being the u.s. president. something he is thinking. the nextstill president, i still have to keep a healthy relationship with mr. trump. what things will he look for? >> it is very likely we will have two people giving a monologue, rather than a conversation. on the one hand, will be talking about logistics, how much it

will measure, how it will cost. on the other side you will have the president talking about trade, how the relationship between the companies are. how trade goes both ways. and how mexican and u.s. companies are getting the benefits from trade such as nafta. going to beainly one of the more interesting events of the day. our thanks to carlos rodriguez in mexico city. here jeffex and ups bezos plan for prime air just ahead. this is over. ♪ -- bloomberg.

vonnie: this is bloomberg markets. i am vonnie quinn in new york.

now to amazon, which earlier this month unveiled the prime air boeing 767, the order -- the customerst orders to even faster with its own plane. some are wondering what this will mean for ups and fedex? break it down for us. amazon had been using ups and fedex, and now they will use less? growing soa company quickly. they are expected to ship 7 billion items this year. they cannot depend on traditional carriers to handle peakity, especially at time, holiday time. they are having to take more of these packages themselves to people's homes.

it is the people who are carried all the packages to those that have carried out the package for a long time. vonnie: it is one plane right now. >> know, they have 40. i think they already have 10 in service. -- no, they have 40. 40. have leased make a it's still cannot dent on that many deliveries. >> there is an argument for that. i don't think amazon is always the easiest customer to have. they are very demanding, and like the low prices. at the same time, they are

leasing the planes but building facilities and sorting hubs around the world. they have bought all of these trailers. the question is they will fill them all up at peak time, but what about the rest of the year? they have a history when they have access capacity, let's bring in customers from outside and build that into the business . that is what people expect to happen here. also, those companies are not growing as quickly, ups and fedex, as the wholeleasing the g facilities and sorting hubs around the world. they have bought all of these trailers. e-commercen is they market and amazon market is. investors are worried about that. whether or not amazon will just killed them right now is a different question. i've or 10 years, 15 years, we will see what happens. david: the keyword is ablaze on the side of the plane, prime. this is a company investing a lot of money in that service and cutting down the link the time it to get your product from amazon. reading your piece how long it has been a dream of jet -- jeff is owes. is there areys

three pillars of the way to think about amazon. -- jeff bezos. a number of times, he can never imagine customers not wanting lower prices, not wanting a bigger selection, and not wanting faster delivery. he started out delivering -- driving packages to the post office in the chevy blazer. are testing drones in switzerland. that could happen. : great piece. read his story in the upcoming issue of bloomberg " business week." up, diplomacy and action. the ambassador for argentina to the u.s. ♪

vonnie: from bloomberg world headquarters in new york, this is "bloomberg markets." i am vonnie quinn. david: i'm david guerrero.

the case for short and long-term. >> the market is receiving a lot of reasons to be short and a lot of reasons to be long. which is going to be right? a lot of this is whether the focus is on opec for the u.s. and the rebound in supply and therefore damping -- chart -- ient crude usually don't do the 200-day, but it works here. what is the citigroup call? ed: 48 for this quarter. 50, 52 for next quarter, and 65 brent by the -- tom: so it works higher? ed: should work hard. tom: francine, jump in, please. francine: does it mean there was no shell cap on the price of oil?

that a false analysis or does it change if you see brent at 65 five years from now you go -- five years from now? ed: it is a moving target. one of the things we don't talk about all the time, how much does it cost to produce oil in the united states. that price keeps going down. we are in a cost deflationary environment and that really muddles the picture. we have never been in a situation where we are in the cost deflationary era and we have u.s. shale. it is a big experiment. francine: given that my don't understand why there isn't a cap . oil can break decisively above the 50, which can be at the moment made up, but it is the price of extracting oil goes lower in the workmen than the price of oil will be capped. and my wrong -- am i wrong?

ed: they looks at the moment that the initial $50 target is one which leads to the completion of wells that have been drilled but not completed. the $60 numbers associated with , and kick up and drilling the months worth of the drilling level increases, the u.s. still at a low level. seems to be tapering off because the price movement is there. vonnie: those that head of commodity research ed morse earlier today. david: let's get the "first word" news at this hour. mark crumpton has more from the newsroom. rousseff's attorney says she will appeal her removal from office today. she became the second president to be impeached in brazil's 31-year-old democracy. legislators decided not to ban her from seeking public office

in the future. rousseff was accused of using accounting tricks to hide the signs of a budget deficit. in response, she sent a tweet which read in part, "today is themate 61 men, many of charged", through 54 million brazilian votes in the garbage." she will serve until general elections -- temer will serve until general elections in 2018. u.k. prime minister theresa may's cabinet said there is no reason to hold a parliamentary vote before starting the process of pulling the country out of the european union opposition parties believe lawmakers should cast with before may trigger's article 50 of the lisbon treaty. the first fight between the united states in -- flight between the united states and cuba and half a century has landed good the jetblue flight opens up new era of

u.s.-cuba travel. mexicansump has called rapists and threatened to build a wall along the border. today the republican presidential nominee is in mexico for a private meeting with president and rick opinion yet so -- enrique pena nieto. nieto offered to meet with both trump and hillary clinton. mrs. clinton is blasting mr. trump for referring to the american military as "a disaster." she said in a sharply worded speech that it is "an insult to the men and women serving today and altman served before." the democratic presidential nominee reiterated she would send american troops into harm's way only as a last resort , calling it a bedrock principle. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries.

i am mark crumpton. this is bloomberg. vonnie: mark, thanks. now to south america and argentina. when mauricio matt wieters over as president, investors cheered as a turning point for the troubled economy. macri asked. just how different -- macri moved to make it easier to invest. just how different is the climate today? first, let me get the political uncertainty out of the way. today we just had this announcement that there is going to be an appeal to the impeachment process for brazilian president dilma rousseff. how is this impacting argentina? >> it doesn't help that's for sure. ands an issue, a challenge, a good part of the argentine economy is tied to brazil. that said, there is a silver

lining. i traveled to the four manufacturing facility outside buenos aires and because of result air force find new markets -- because of brazil they are forced to find new markets. you see a forced situation where they are very tight to resolve that they are looking for new markets now. vonnie: you are trying to help with that in some ways it there is a big farm -- four of -- there is a big forum in the middle of september. explain what they want to see from argentina. noah: thousands of executives from around the world coming. theyovernment is doing all can to promote predictability and stability and this conference is one indication of that good we have over 500 u.s. companies who operate in argentina, many for years, like ford and citibank. many of them are reinvesting. coca-cola has a billion-dollar investment. dow has $2.5 billion

reinvestment. you see what is happening right now. everything is not perfect. there are challenges ahead. but the government is trying to grade a more business friendly environment. vonnie: currency controls have been taken away. that was really hampering argentina's progress. nevertheless, the economy is pretty dire straits. what would it take for businesses to actually move in in a bigger way for argentina? group ofecently took a california to see what is happening on technology, renewable energy only 1% of the energy in argentina comes from solar and wind, huge opportunity. you have conventional and unconventional energy. exxon is one of the big companies that has announced investments in the country hit number one is human talent.

it is a great place for people to consider and that is what the government is trying to do, change the macroeconomic so businesses feel comfortable investing even if they've been waiting for a number of years. vonnie: there are $2 billion of renewable energy projects up for auction and you will be trying to ensure that u.s. companies are bidding in the process. i know several already that are very involved in trying to win these contracts some of the best sun in the world, you can see it on their flag, and some of the best wind in the south. we are trying to get advice from the state department and department of energy and others on smart grid technology to capture wind and solar and put it on the grid. they have had a lack of investment for a number of years. they are trying to catch up at this point. wants: president macri money to come back into the

country that is left him stashed away in places like the u.s. and switzerland. what is the u.s. doing to aid the process? noah: last year i said that the new president, whoever it is going to be, has a few places to go in terms of investment. now, as you said, the holdouts are over, they can go to the markets. number two, foreign direct investment. and to your point, are argentines themselves reinvesting in their own country? somewhere between $200 billion and $300 billion of money overseas. part of the strategies to get argentines to reinvest in their own country. vonnie: very quickly, ambassador, would the u.s. consider in terms of direct trade deals with argentina, how far away is that? noah: we do a lot of trade just because of the history, 100 years of going back and forth on trade and commerce. we need to increase travel and tourism and there was a lot of things we can do right now. vonnie: ambassador to argentina

from the u.s., noah mamet. david: coming up, democratic congressman sandy levin weighs in on apple's record of bill announced yesterday. this is bloomberg. ♪

david: this is "bloomberg markets." i am david gura in washington, d.c. today. vonnie: i am vonnie quinn in new york. abigail doolittle has the latest. abigail: the nasdaq is trading modestly lower. one stock tracking on the nasdaq today is alpha that could could be on speculation that off of it may buy twitter.

some investors think this is not a good fit. ironically, twitter is sharply higher, best day since august 15. there is news that apple that has teamed up with mitsubishi ist financial group around android pay and this is another example of a big tech firm tapping japan's growing digital payment market. there was news that apple may be paynering with sony for technology could speaking of apple, shares are slightly higher today, snapping a five-a losing streak. of course, the news yesterday that sent shares spiraling down was the fact that the company had been ordered to pay up to $14.5 billion in back taxes. ireland had given the company some tax breaks. ie,ortunately, vonn this overshadowed at the iphone announcement.

apple is having a decent month, up, david, 2%. david: thank you very much. abigail doolittle in midtown manhattan. congress and send 11 of michigan wrote -- sandy levin of avoidan wrote, "we must legitimizing practices of and additions rigging the system."he joins us from detroit. we can talk about the arguments legitimizing this but we heard from the treasury department and companies that it is up to her and asked -- up to congress to make changes to the tax laws to close the loophole. congress goingis to do something? rep. levin: long overdue. it depends on the election we have legislation to take on

inversions and republicans stymied all these efforts. same with transfer pricing. we have had in action while companies have essentially rigged to the system. they have moved overseas. that is something the typical citizen cannot do. i was just reading mylan inverted some years ago and set up shop in europe. they have paid very little taxes, relatively speaking. we need to get at this problem. the republicans so far have civil he said we are not going to do -- simply said we are not going to do anything now. we until later when we can put forth a proposal. the answer to that come i didn't agree with much of it -- republican chairman, was blah blah bablah. david: you may not have had a time to talk to your colleagues, but do you think this may be a turning point?

this $13.5 billion tax bill is going to change people's minds? rep. levin: it better. look, the typical citizen, as i said, can't rig the system. they have to pay taxes without changing the system or manipulating it. when it is done in europe we criticize europe but we really should look at ourselves and when we criticize europe and some of the retroactive part of what was done may be questionable. we have to be clear, we don't condone the system that allows companies to shift overseas often in name only and essentially avoid paying taxes almost anywhere. levin: representative what are your thoughts on retroactively taxing a company? the tax benefit would go to ireland since it is already headquartered there. rep. levin: i think it is an

issue, but there is a deal between ireland and apple. it is called technically transfer pricing. there are real issues as to whether apple is going to end up paying a fair share of taxes anywhere. they keep all of their profits in europe, they don't bring them back here. the typical citizen, this is what i hear. we pay our fair share. we want multinationals to paid a fair share. and we should not say anything to condone when that doesn't happen. vonnie: is the answer potentially other were corporation tax in the united states? rep. levin: i think we have to lower it but it has to be done in a responsible way and we have to do it in a way so that everybody is paying their fair share. that isn't happening today. that isn't happening today. we need real tax reform that really is a progressive tax in the sense that everybody pays their fair share, and with these inversions, i mentioned mylan,

which inverted some years ago. they kept most of the operation here and they get the benefit of all tax research incentives and then essentially they soak the customer. systemhat kind of uneven that people are rebelling against, and republicans essentially have rubberstamped any efforts, opposed any efforts to get at this problem. david: we had at the treasury department send an on is amended -- sent an unprecedented why convert to the european commission head of the decision. wonder if you squarely have criticism on the commission here, if you have any criticism for colleagues in congress or how this was done in europe. rep. levin: look, some of us has tried to change the system getting and issues like inversion. we have introduced legislation

on the democratic side and all that has happened is republicans have buried these bills. when it says congress is to blame, let's look at who has tried to address these issues and who has student away. the republicans continued to say tax reform, but it is often --air and often deadly dela simply delay. we have tried to change the system and republicans have stood in the way and i hope after this election we can sit down and it will have to be done in a bipartisan basis and change the system so there is fair taxation for everybody including multinationals and there cannot be the kind of rigging of the system that has been going on. ofid: congressman levin michigan saying wait until the election. much more on apple and the treasury's response at 4:15 p.m. eastern time the undersecretary for international affairs at the treasury department will join me for next list of interview in a couple hours.

vonnie: time for the "bloomberg business flash." the maker of call center software is buying interactive intelligence group. two dollarss say and $.50 a share in cash, 7% premium yesterday's closing price. withdrawing this mission for emergency clearance of a diagnostic blood test for the zika virus come after regulators found problems with how the tests gathered patient data. the controversial firm has been cited by regulators for failures to run its laboratories up to standard protocols. david. david: coming up, we will be talking about salesforce, reporting earnings in a little over an hour. it has been stepping up dealmaking to keep up with rivals in the cloud. this is bloomberg. ♪

vonnie: this is "bloomberg markets." i am vonnie quinn in new york. inid: i and david gura washington, d.c. today. now to salesforce. the coming has been on a spending spree completing deals to the tune of $3.5 billion in february. brian, before we get to the m&a strategy of salesforce, let's get to the numbers. what are analysts expecting? brian: this is a company that is widely loved but there is actually a little bit more concerned, you might say, in some runners about how they did in this quarter that wrapped up. a lot of folks are looking at how they are continuing this effort to bring these cloud-based services to a lot of businesses. growth has slowed a little bit but there are people who like this stock. little concern around q2.

how is the outlook? what does salesforce think it is going to be doing in the future? with this kind of company that is what people are looking for. david: help us understand what the ceo is thinking. he has made a lot of acquisitions. when you look ahead to what sectors this company might be interested in, where do you think of salesforce is looking? brian: well, we talked to some folks about that and you can see some trends already. they are looking beyond this court customer-relationship management staff they have been doing for some while and maybe even looking at financial stocks, more accounting. they could be doing things are on billing. they could be doing things more about getting users. they just bought a company that is sort of word processing, that has slack capabilities. they're looking apparently other

arena, so we will see what they do. but it doesn't seem like salesforce is looking beyond what it has traditionally done. how careful, brian, does he have to be come and his team, i suppose, on the conference call, that they don't disappoint investors in some ways? as much as we can tell the stock is pretty much at an all-time high. really, it has never disappointed investors. that the biggest danger? brian: they have been feeding quarters for a long time. salesforce, again, has this sort of aura on wall street. many, many buy ratings on the stock, and mark benioff is very smart and knows how to manage all this and will be listening very carefully about how to keep driving growth. this has been a growth stock for a long time. cannot continue? -- 10 that

continue? can it go even faster? investors want to see what mark benioff can do to keep this going. david: brian come appreciate it. that is brian womack in san francisco. 6:00ll dig in deeper at p.m. eastern time, 3:00 p.m. pacific. vonnie: u.s. markets wrapping up the final trading day in august. doubt is down about one third of a percent. the s&p 500 down about a third of a percent. the nasdaq only index in the green, up .8%. this is bloomberg. ♪

it is 3:00 p.m. in new york. i am vonnie quinn. david: i am david gura. welcome to bloomberg markets.

vonnie: live from bloomberg world headquarters in new york, covering stories out of boston, south africa and japan. here is what we were watching. a five-month rally as oil tumbles. the market at the end of the month, signaling headwinds. ousted from the brazilian government for breaking the country's budget laws. appealing that verdict. we will bring you the latest fallout on this developing story. >> fighting to keep their economies going. we will speak with a goldman sachs senior economist. one hour from trading