they will ask band that to the beats wireless product line. beat product line that will incorporate the apple technology. again, if you want to think about this from a wall street perspective, what this means, the expectations were the expectations of wall street. now we know there is an f8 with the waterproof capability, branding and with nike. i think that is important, particularly with nike because the best case use thus far has been what we've seen with fitbit. not waterproof unlike the new watch. beats, new the product announcements from

there. i did not read any note from wall street that noted this section of the market for apple. that could be positive beyond what wall street expected, and also positive for what the business might get. the notion this could start as early as friday this week. that is earlier than anything i felt on wall street. that means this will be the calendar fourth quarter to the calendar of third quarter. that could be good news for fourth-quarter sales. the declines we have seen an iphone sales. >> we shall see. version, thates is no more. cory johnson, we will speak to you later. one hour to go until the closing. julie hyman has more. we are seeing stocks

little changed at the moment. a lot of the declines have to do with one sector in particular. take a look at the bloomberg here. it is real estate and energy doing the best today. group you could say is consumer staples. , which ism is sprouts not even in the s&p 500. they came out and cut the forecast because of competition and food deflation and pressuring other grocery stores as well. sprouts down 13.5%. meet johnson-- nutrition maker of baby formula also came out with a disappointing forecast ahead of a presentation at an analyst conference today. general mills falling along with that group as well. as for viacom, a story out

according to people familiar with the company plans, the revamped toward will meet next week to discuss it she just options, including the possibility of deals including paramount pictures. is philippe damone, the ceo who is just exited, that is one of the possibilities he pushed for before he was pushed out. i do want to get to the apple shares. you cannot necessarily judge the reaction to the iphone announcement in today's action. shares have been bouncing around as each new headline comes out. we went back over the past five years and looks at how apple has reacted on the product launch days. it is all over the map. the one takeaway at had is the second day reaction as always in larger in percentage terms. go back to 2011 in the first day was down a little bit.

that has been the consistent team here. if it continues, the quarter percent decline could turn into something bigger if history is any guide. the other quick reactions i want to point out have to do with fitbit as apple announced it is partnering with nike. shares down. big tendo with the other mover related to the apple announcement on the news that mario and his brothers will be coming to the newest iphone. shares are up 25% in u.s. trading. david: luigi. mark crumpton has the first word news. the nation's intelligence chief says russian hackers attack u.s. computer systems all the time.

james clapper says cyber security will continue to be in his words a huge problem for the next president. he did not comment on whether the russian government is responsible for recent reaches against the democratic national committee and other political organizations. donald trump proposing an increase in military's vending on personnel. the republican presidential nominee laid out his lands in this in philadelphia, asking congress to fully eliminate the defense sequester that has reduced the military budget. he also wants an active army of i've hundred 30,000. and maybe approaching 350 ships , and an air force of at least 1200 fighter planes. trespassing and vandalism charges in north dakota. accused of spray painting construction equipment during a protest against the defoe that -- the judge has temporary stopped construction on some of

the nearly or billion dollar for state highflying. saying this would violate sacred -- culturally sensitive lands. people are in custody after gas canisters were to ever did set a in notre dame, paris. no detonators were located in the vehicle. dayal news 24 hours a powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david: turning back to the economy and empty picture of the u.s. economy. ferro as the chief economic advisor, a 20% probability of a fed rate hike. >> that is way too low. it is weaker but it does not mean it is that week.

us,ean williams reminds employment is doing well and they are starting to catch up. is a tricky situation. i would put it higher than the 20's but it is not done by any chance -- yes, the data is soft but it is not ugly. the fed is saying we might do something. the market is just watching the data because they were told to and saying you are not going to do anything. >> the market has been conditioned that it is data dependent. we see week data. secondly, the moves cannot simply be justified by a change of probability. liquidity is the other thing going on. why you see smart moves in response to incremental data that should not have such an impact. >> is the fed losing some of its clout?

and not just the fed, the bank of england, the ecb, are they being listened to the way they used to be? >> in general, the central bank is becoming less effective and within that, there is huge variation. is not justjapan ineffective but counterproductive. the other one is the fed, still effective but not as effective as it was before. england andbank of the ecb between those two. >> does that change? negativeinterest rates tendencies the currency appreciate because it is starting to trigger counterintuitive reactions of individuals and companies. it tends to happen at extremes. negative interest rates at some point, they encouraged savings, capital repayment. a counterintuitive reaction to have gone too far and is.

>> this does not just have to apply to the bank of japan, but a low interest rate, the problem now and not a solution. does there need to be a complete rethink on the effectiveness of low rate environment? >> ultralow rates and negative turning from being part of the solution to part of the problem. in some countries, they are a problem already. japan being one of them in europe also being an issue there. banks --us on central less focus on central banks. imagine? , the numbers they're just coming out, put together with the fed, are those two really connected? the central bank demonstrated getting asset prices up. getting the economy's going has

not been shown. are they designed to stimulate economies? >> they're not designed to face economies facing headwinds or to compensate for the lack of no, theyscal policy can borrow and i stress the word , growth from the future, hoping that you can pay back with a bit more, but the careful, because at some point, you can over borrow. central banks are not made for this and we have an dependent on them for too long. david: that was on earlier today. about exxon mislead climate change? that is next on bloomberg. ♪

david: scientists understood as early as anyone how they have -- we're joined now from washington. journalismestigative here, another by inside climate news. the lay out what organizations discovered. doing a lot of research into effects of carbon dioxide on the climate, on man-made burning of fossil fuels and the the business.s to

the question is whether the --lic message misrepresenting what they knew internally. >> what do the conclusions show, do you think? >> that is the ultimate question paired it is difficult to prove as most scholars will tell you that some sort of security fraud took place. is the attorney general eric snyder had at his act, whichthe martin allowed him to look at whether these companies were able to basically defraud investors. what your piece outlined so masterfully is, they seemed

caught off guard. -- talkingt about bit about what they have done since and how they responded to the charges from the state's attorney general. >> they were very reactive to this. they initially tried to poke saying they had a lot of financial backing by environmental groups. a lot of the claims to not really hold water. then they tried to lobby congress to push against it, they were successful in getting the house science committee to push on subpoenaing the attorney general in new york snyderman, and whether they were able to constitute fraud here. great story. thanks to you. >> time now for a look at the

biggest business stories in the news now. you will look at at the 10 -- pen -- pen -- the at the the epipen. responding to questions from charles grassley about at the pen -- epipen prices. word his hedgeer fund has taken a 10% stake in the struggling restaurant exchange. they anticipate meeting with bill ackman soon. that is your business flash update. let's explore more on the possible options for chipotle. takingea that he is now eighth -- will this is their

concerns about the future? classy has had a tough year. everyone hates bill ackman right now and everyone hates chipotle. there are still a lot of questions. a lot of the criticism has been levied at its fourth. to have any sense of what they hope to do? thee kind of do because pension has already kind of weighed in on the subject and they think investors that own 3% to 25% should elect up of the board. to add ackman could look a few seats to the board and get a few operators on their, people who have had similar experience is in know how to run a restaurant. it gets results in a lot of cases.

>> he manages $12.5 billion. sohas had restaurant brands he can talk business. kuester -- to pull it has not managed this in the they stopped so you know, maybe this is a management they need. >> it could light a fire under them. they have slow to react and take labor out of the restaurant, slow to cut back out of food in the restaurants. running way higher than they restaurant an, margins have been down 16 percentage winds in the first half of the year. underestimated the impact e. coli and the holes and all had on the customer base. canng an investor

definitely light a fire on management changes. >> this company has run in a very consolidated way. do you expect that to be a point of tension here? struggle witha the way this is set up. >> you never know. it depends on what he pushes for and what they are willing to accept. the restaurant level margin is one of them. that one may be a little contentious. re-franchising will really generate a lot of cash that can back shares,to buy it will improve the margin profile and create more stable .ash flow and higher valuation

>> we appreciate it, michael. coming up, shares lost half of the value this year. we will traded in the options insight report next. ♪

david: this is bloomberg markets. vonnie: timeout for options insights with julie hyman. julie: joining me is david, a stock strategist joining us from the cboe out in chicago. we have seen the odds of the fed .ate increase come way back how is that playing out in the

options market as far as you have seen? david: what i like to call the indilocks payroll report last friday, where we did not get a huge number that caused the fed to raise rates and have us buying here, we thought the economy would fall apart. what we see now is a lot of complacency here in the market with near all-time highs. the nasdaq yesterday, staging a little bit of a rally. pretty much sideways. we are under 12 right now on the volatility index. there is not a lot of activity going on, we are not place bets in one direction or another.

it is a slow kind of rotation out of some large caps and into some higher beta names the internet back as well as small cats that have -- which have room to rally. off of its all-time highs. a less than 1% move in the s&p. david: this stock had a 98% quarter last year. we had supply chain issues there.

i'm betting on gary friedman here. it is not just because of the but because ofd anybody is going to write the ship, it is because of this guy. i looking for things to turn around and a lot of analysts are as well. it is going down as the stock is tumbling from 106 2105. i'm very optimistic in this restoration hardware. , a 38ct this morning, , but i can make to 60 on the upside. it is a good role of the day. with the options market right now, it is pricing in oversight -- over 10% move. this'll work out in my favor.

julie: we will watch it. david, thank you so much. coming up yet -- coming to us from the cboe. click thank you. still ahead, china'stock while slipped to the lows that let -- lowest level since 2011. $4 trillion in its june of 2014. we will explore what that means from the global currency market. this is bloomberg. ♪

scarlet: you are watching bloomberg markets. a check of theh

first word headlines this afternoon. mark crumpton is in the newsroom with more. holds allary clinton slim lead over donald trump in the new national poll. in the george washington university battle down survey. 11%time, gary johnson has support among likely voters. jill stein has 3%, 5% are undecided. president obama had a brief before the dinner and the holding station. white house officials says the exchange consisted of pleasantries between the two. using foul language while to reporters about president obama. he expressed regret over his comments. syrian activists say at least 10 civilians including a child were killed today. yesterday, the same neighborhood was hit by a suspected chlorine

gas attack. the people were -- u.s. secretary of state john kerry and russian foreign ministers will be in geneva tomorrow to discuss a possible deal. it is a key ally of peshawar al-assad, carrying out airstrikes to bolster his forces for nearly a year. him to step down. powered by more than 2600 analysts in more than 20 x hundred countries. back to you. matt: let's go live to the nasdaq or abigail doolittle is standing by with the latest. abigail: the nasdaq right now is on a -- on pace to finish with another record is a high. it seems as though this will happen again. a lot of that stuff.

one reason why, we will get to that in a minute. at or the boost that has been steady all day rate -- trading higher, facebook on the nasdaq today, plus western digital, shares are up sharply more than 10% on pace for the best in nearly a year. earnings by as much as 23%. a part of this is the acquisition that we had an interesting conversation with miller and analyst over at benchmark company earlier today. he really understands the science behind the ship and he says he understands that backers here. first, pricing, the recovery there, and second, a tight supply due to delays around a new 3-d chip. for these reasons, he has been recommending to clients to aggress of levi the shares of western digital. on westerntarted digital of $100 per share, stock couldhe

nearly double. we look at btv, 3367, we're looking at a bullish chart. there is a down trend into effect -- in effect but it is starting to reverse. the buyers are very much interested. a potential bullish reversal pattern there. if this stock should climb a bit higher, western digital main act be on its way to the price target of $100 per share. matt: those are beginners on the nasdaq. abigail: just a few minute ago, apple made a big turn, up half of 1%. the stock typically traits down by .75%.

and hashat is dragging been dragging all day, we're looking at farmers market after brochure -- for the full-year fiscal year 2014, -- 2016, it looks like inflationary pressures are very much at work. analyst at rbc also said the brochure -- for the full-year fiscalslowdown likelya decline in traffic and he is saying he thinks the shares are attractive. another stock he thinks is attractive, whole foods, down sharp week, he said the two pressures are a bit different. they should really be passing those along in the price of whole foods, those customers could withstand a higher price point. going to bloomberg, it is interesting. investors on whole food, btv, 33 six, we see that the stock has been stuck in the range in the last year right now and this guy

down, the stock is closer to the bottom of the range and it will be interesting to the weather that can send whole foods higher or maybe the stock goes a little lower. time will tell. abigail, thank you. scarlet has a fantastic chart on whole foods. later on the program, projects, notably the new iphone seven. a fast terror -- faster processor. the apple watch got an upgrade, water resistance and gps tracking. especially happy about this. >> there is someone missing and i am so happy to announce today he is coming to the app store.

[applause] matt: the nostalgic joy. andthe new project features mario enough to excite insist -- investors and consumers? joining is cory johnson. ever the skeptic, there is a lot for you to dig in today. i am a skeptic where skepticism is wanted and i think skepticism is always wanted. so there is that. an apple product announcement and apple wants devices to look great. we've got to go with apple's track record in the matters as it relates to how it eases things out. lest we get too distracted with it is a solid upgraded

all of these things are true, if it is twice as good as two years some traction of the headphone jack gives a little more space for battery. the battery life is expected to be a lot better for this phone. ship with every iphone. no one will lose the accessories we arty have here. we're looking at is a solid upgraded, which is what needs to be done. i think when they refer to , i think that is a fair statement in terms of incomeogy let alone the statement that works so well. they make so much money with their phones. sounds more like an episode go upgrade than a dozen iphone 6 or iphone seven upgrade here in

curry: josh upgrade. >> i think that is fair. the forum they have got right now is the best for a phone. not actually improvement in the phones themselves. thes a center phone for same price. managing inventory so strongly. i think what we see is a pretty in the currentse quarter. that is faster than expected by a lot of investors and faster profit and who would not like that? scarlet: apple accidentally leaked its own iphone news on

twitter 45 minutes before it started. apple is new to twitter and they are still getting the hang of it. why do people upgrade their iphones? phone and i will get the latest one or do they just hold on to the point where ory think, this is something i need a new camera or something like that? what drives it? cory: that is a great question. the answer of that is the funneling to companies a dell making computers. across the spectrum, the problem has come up in the last year or so. there is a phrase he used, peak thewe may have reached all-time sales three years ago that used to be the driver of -- the oldthe new

stuff did not work anymore. what we have seen with is managingis it enoughhone 5, strong with existing stuff. maybe the slight change in the operating system would be enough -- i think we will see a lot of exciting stuff around the use of with the new operating system that might accidentally start to drive users to upgrade a little faster than they were. the upgrade cycle is different. the watch is being notably better, perhaps, and how i think the technology in these earbuds, how much they put into the stupid little things, check this out.

>> apple earbuds are the most popular headphones in the world. cory: maybe the look of these things is enough to drive more advanced. matt: it looks like you left your schedule jacket at home today. what about with the software out,se scarlet pointed they have got to grow on that side and are trying to go out on social media. are they moving in that direction? they talk about that at this event? cory: the twitter thing is great irony. apple struggled with social

media and integrating social media. they are doing this about two blocks away from where twitter headquarters are. we have seen the struggles to grow users. apple still gross users faster than twitter. from unclear but i think tos standpoint they have got drive the upgrade cycle shorter and shorter and that will make the biggest difference. joe: thank you very much. up, currencyng wars slipping to the lowest levels since 2011. reserve members next. this is bloomberg. ♪

scarlet: this is bloomberg markets p or i'm scarlet fu. interest is heating up with a private act or better lining up for a potential ipo that could -- more than $2 billion according to people familiar with knowledge of the discussion. more information going out later this month. blackstone group said to be weighing bids. snapchat instructing local stories with video of everyday activities in specific cities like new york and paris. is shifting focus to events like the super bowl. about 15 people are expected to lose their job as a result.

an eventual ipo. the largest technology deal in history, the combination creates a $74 billion business that serves 98% of fortune 500 companies. 140,000 employees. the founder said it was more about revenue growth. the european commission has until september 20 to answer antitrust objections. google has make use of wielding competition.crush android is said to be designed to lead is good for competition and consumers. that is your update. : lowest level since 2011, a record $4 trillion in june of 2014.

outflow pressure has increased again as early as this month and -- 9.2% after% climbing 37% previous 10 years. guest says capital flows are less phone or both. joining us now is the founder falleo and author of the of the euro. let's talk first of china. you say a lot of the sources for capital outflows have run their worst. and how do you see the currency working with less and less intervention? panichad another round of in january of this year. paying backchinese their dollar liabilities.

that will not continue to be a source of pressure. the bottom line is there is intervention. wheni think is interesting you look at the data where you can go down week to week and day today, is to say when we had all about the fedn raising rates soon, there was very little intervention. this is very different. degree related to a we had when the fed raised the first time. >> the blue line in the chart has been genuinely weakening.

surged at the beginning of the year but to your point, it really calm down again. it seems to me the volatility another weakening it self. >> of us like they are broadly under control. the second thing you want to do is what is actually going on with the economy. to have a big challenge ahead. that could generate volatility and that is what we have to watch all the time. >> you mentioned last august and january, paying back u.s. dollar loans, that has dissipated the

pressure. >> is doing the selling now? it can also be foreign investors, taking some currency off the table, it could be more of a retail attempt to get out of the country. the bottom line is it is pretty moderate and alice is pretty low right now and not the same cause for concern as less several months ago. scarlet: coming up, on the list of the world's five companies on the market cap. thetech is dominating people companies. this is bloomberg. ♪

>> let's take a look at chart that illustrates entrance. sprouts having its worst day since going public after cutting earnings forecast. whole foods is also down. what you are looking at here is salesfoods same-store versus the number of its stores. a record high in 2013, that is when the company announced a tripling of stores. ,lue bars have italy increased having gone down, down, down. it has gone below the negative line, right around september of last year. she celebrated a little bit here but clearly whole foods aggressive expansion plan means it is going to a lot of locations losing some of its premium.

>> going to location for cannot afford a 29 pounds take. >> you can see the effect it is having. >> i do not know if i've ever paid $29 for a pound of steak. >> to go out for the stake. matt: i have a chart here that , and the tech stock interesting is that the $500 billion line there any see google, more than half of $1 trillion. it is an amazing number. you know microsoft was always big. amazon and facebook have surpassed the likes of berkshire hathaway, exxon mobil,. these are the five biggest companies in the entire world. no other public traded company

until the saudi ipo, worth this much. apple was up to almost 800 and dollars. >> that will be crazy when it had. index, back inhe 2015, back in february, that was his lowest level since october. that is a fairly impressive comeback that on the other hand, it has taken a while to come back. it speaks to how unimpressive europe has been this year. europe isow "the tightening. it is the beginning and we finally got back to even. a good come back but in the

grand scheme of things, it talks about what a disappointment european talks have been and the story for this year. scarlet: big cap stocks recovered much faster whereas europeans talks finally recovered. next year. scarlet: maybe something else for mario draghi to focus on. the market closes next to her let's look at major averages. the nasdaq would -- looking to build on the record close. the s&p 500 off by two points. this is bloomberg. ♪

scarlet: we are moments away from the closing bell. i'm scarlet fu. joe: i'm joe weisenthal. matt: and i'm matt miller.

♪ [closing bell] scarlet: u.s. stocks closing little changed this afternoon. joe: the question is -- "what'd you miss?" scarlet: hewlett-packard's earnings are due out in a few minutes. we break down the results as investors look were near-term growth. unveils the new iphone seven in san francisco. the highlights, it's water resistant, faster, and has a new camera. plus they are killing the headphone jack. matt: and we have a conversation with jen aldridge. climbing to nasdaq, a second straight level in as many days. a lower close for now, at this point it remains unchanged.