scarlet: live from our world headquarters in mid-town manhattan, we're covering stories from san francisco to buenos aires. here's what we're watching. oil prices are sliding, continuing a wave of volatility as investors focus on central banks and interest rates. bloomberg is live at the argentina investment forum. we sat down exclusively with the president of argentina. spoke on how the economy will play out there and how they will get out of possibly recession. in a rare sit down, marc benioff joins us live this hour. he has thoughts on the future of the cloud. i am here now with the

moves. a summer a very small moves, we have resumed normalcy once again. you are looking at some sizable moves in the s&p. oliver: it's a good reminder that normalcy is volatility. that is kind of the way it supposed to be. this board might be a positive. we have been looking for interest stock relations to break down. at the moment, this is pain indeed. we're looking at the dow jones. everything from the biggest stocks to the smallest, everything is in the red. it's in the red by quite a bit. small caps are leading the way down. this is the risk off mentality we have had since friday. it's a different kind of selloff. the contour is different when you look at what's happening across the sectors.

thees pretty much a racing -- the racing the gains from yesterday. intoe looking at getting 2% down since friday. this is your today move from yesterday. we had a big jump yesterday on the comment from brainerd indicating she is a big. i don't think anything there was terribly surprising. maybe the dark it is revisiting things. that struck a lot of people is obvious after the fact. i would like to look more into the chart you have behind you. clearly, you have a situation where we had a steady advanced are trading yesterday. the friday selloff wasn't going to last. this is the norm. now you are rethinking that again. oliver: yesterday a lot of people were waiting to see if

the market would turn red after a big selloff friday. this comes into account when you have such a steep move down in markets, maybe some of that is getting oversold overbought at some point. there was a return to that negativity today. we're looking at one of the big stocks here. apple is one of the few points of positivity. today and yesterday, it's the biggest rally since july. they are up 2.5%. those are big moves. this is not quite the epic market mover that used to be. as apple shares have gone a little bit weaker over the past year or so, that contributes less to the s&p. it's one of those days where it's not enough to keep the market afloat. when you look at what's been happening, one of the biggest things is oil of course. that has been pretty far down today. it's not quite driving the market to the correlation of stocks and oil.

it is back and play again today. scarlet: we will focus on that as well. thank you so much. matt: let's go to the first word news. mark has more from the newsroom. mark: hillary clinton says she did not discover -- disclose her pneumonia because she did not think it was a big deal. video showed her stumbling as she was helped into a van by staff and secret service agents following an event in new york city. she told cnn that once she set down had some water, she felt better. she will release more medical information in the coming days. her edge over donald trump is dwindling. in the latest survey, 40% of registered voters favor mrs. clinton and 44% mr. trump. her lead is smaller in a four-way matchup. she leads trump by two points. and jillson gets 11%

stein gets 4%. the dalai lama is calling for talks with the islamic state extremist. the tibetan buddhist spiritual leader spoke today in paris. he said dialogue is the only way. he did not explain how that should take place or with whom. he insisted islam should never be linked to terrorism. edward snowden says president obama should pardon him. he told the guardian it newspaper he has benefited u.s. citizens. is facing contractor at least 30 years in prison for leaking government documents in 2013. he now lives in moscow area he is confident of returning to the united states one day. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries, this is bloomberg.

scarlet: thanks very much. argentina has been much of the news since the president won a tight election and started undertaking major reform. some of those reforms include lifting currency reforms and settling along running dispute. he is inviting business leaders from around the world to argentina to see firsthand the impact of those changes. erik schatzker has an interview with the president earlier today. they talk about plans to cut argentina's debt to gdp ratio this year. >> we are trying to go around 4%. >> 4%? >> we have to go gradually. socially, we can assume to go another way. we have to accept this has been a disaster in terms of increasing debt in the last 10 years.

everybody has to understand that we have to do it step i step. we are committed and we are going to fulfill that commitment of reducing every year and reducing inflation. we have high inflation. we are cutting down inflation. we are using to half of what it used to be. we are going to continue working until we reach one digit inflation in two years or more. we will cut the deficit. >> what will inflation be by the end of next year? >> 15%? >> bringing down inflation and controlling physical -- fiscal spending is important for your creditors, the people who bought your bonds. you have to balance that with the demands of the government. how'd you know with the right

number is? you are heading into an election year. they have midterm elections. the people, if you want the majority in congress, the people are going to want you to spend it, aren't they? >> i am so proud of my people. even though i have been taking , they werecisions not very popular. they are still backing our government. more than 60% of the cities of argentina have a hope in the future. i appreciate that. ,hat means we are understanding we have to put our best effort to go in the right direction. i believe that in the next year, we will have a wonderful election that will confirm we are in the right correction and its not a government decision. it's an argentinian decision.

>> let's talk about corruption. many people would say it's institutionalized in this country. you must agree that it's critical for your government to be above reproach and suspicion. yet, there are two cases in your own cabinet where we see questions being raised about cash at the house of your vice president, shares held by your energy minister. don't they undermine the standard you're trying to set for the country? confident cases, i am there is nothing strange. they are the right people. in the past government, they did not want to give explanations. the department of energy has already sold the stocks.

>> he sold it. >> that addresses that problem. in argentina, we can pair that with activity. the forms are important. damage theheal the corruption did. we are working on that. i promised my people i was going to put in place the best team in the last 50 or in terms of capabilities and all honesty. -- and honesty. i believe in argentina. we have huge changes we are going to cut corruption. that is the best partner for poverty. we have to cut corruption. >> how'd you dismantle the

legacy of the corruption institutionalized throughout the bureaucracy, in the police, in the judiciary? you are talking about a cultural change. can you do it in one term? >> we are doing it every day. things will not change in one year or one presidency. every day, we are doing changes in the right direction. what's important is what i do. a president is like a father. understand what you do and not what you say. i try to act in consequence. >> you can afford to make a mistake. i expect that god will help me. he will have me in the right direction. i love this country.

i believe in my people. i am sure we can do it much better than we did in the past. argentina is ready to take its place. it's a big country. we have a lot of talent and we messi andore than the pope. we know how to do things right. i am trying to help them. am a facilitator of the future. i am trying to help everybody to do better as possible. scarlet: that was our interview with the president of argentina. coming up, we will speak to the ceo of bp. ♪ this is bloomberg.

matt: you're watching bloomberg markets. i am matt miller. scarlet: i am taking look at increased all until it. global financial stress is making a comeback. the blue line over here is the bank of america merrill lynch stress index. it measures risk across asset classes. what you will see is its come way down since february when everyone was worried about a global recession that didn't come to pass. back on thursday, it started moving up. the white line is the daily rates of change. what you will see on friday is we saw a massive jump and i

circled in red. it jumped 112% it has come back a little bit and you are talking about a sizable increase. that is the biggest advance when chinat 2015, suddenly devalued currency. we talk about this a lot. people have a hard time adjusting to rate of change. that's the surprise element. lines, the spikes are what surprise investors. alix: that's what happens when you have a stock market that doesn't move for almost two months and then all of a sudden it drops 2.5% and then gains 2.5% and now we're back down again. volatility is back there and it's hard for companies to deal with because it creates uncertainty. what i have is a chart that , it'ss in a good way

adding something central bankers are trying to get. none of them have achieved it. this is inflation and a sense, the blue line is actually you k -- u.k. input cost. if i am going to make a radio and i need to buy the metal and transistors, those costs are rising for producers in the u.k. it's not just appliances. it's food, clothing. they are continuing to rise. meanwhile, the white line is the reason for that area the white line is inflation. you can see it down below zero. they were looking at deflation for a moment. now it has come back up. the reason is the falling pound. the big drop we had at the brexit vote cause disinflation to start picking up again. it's essentially a devaluation. the markets did it for them.

there is no call from other governments to label them a currency manipulator. they just voted to leave the eu. scarlet: that's not the way investors would have wanted given the brexit was such a surprise. it raises questions if the economy of the u.k. will fall to the way people predicted. mark carney is under a lot of pressure in recent months by lawmakers in the u.k., that he was exaggerating the brexit vote. matt: he tried to help the economy. maybe it will stumble, but not collapse. scarlet: we are tracing donald trump's rust belt route. this may determine our next president. this is bloomberg. ♪

scarlet: this is bloomberg

markets. path to the trumps white house may depend on his journey through the rust belt. how does he need to play the battleground states? totals arech essential in the swing states of ohio and michigan. steve, thanks for joining us. you had a great story today. he needs to go out an appeal to his ask it of the deplorable's? steve: my colleague and i looked at the rust belt states we thought were the most important for donald trump. we did the real election map and this is what campaigns do. you hear a lot of numbers that change every week. we looked at how many voters are there? how many independent persuadable voters are there? what is the landscape by which they are fighting this battle?

that's what the story was. every campaign uses this. you have the base voters, the people you know will support you and they will turn out. they are in the bank. then you have the geo tv, that stands for get out the vote. they are unreliable voters. you have a ground game that will turn them out. you need to make sure that they get there and support you. then there are the persuadable's. these are the people that your ads are focused toward. these are what the campaign events are focused toward. you need to change their minds. -- much of that is depend isrlet: how much of that based on money? steve: the math doesn't change. money does matter. the more money you have, the more you can invest in a grand game -- ground game in turn out

voters. you can invest more in tv ads. you can persuade a fraction more over the airwaves. particular,nia in we found that this is a key state for trump. he wantsto win this if to win the white house. it's really hard. if hillary clinton's race of democrats and target voters is so large, if she turned them out, she could forgo independence it's the win. the thing that trump needs to do in pennsylvania is turnout everybody he needs to turn out and persuade all the independent voters. he needs to start converting democrats. he's got to do that in michigan as well and ohio. ohio starts more even. he can afford it to not really worry about the converting democrats game if he focuses on

independence -- independent voters. he may be able to pull it off there. romney the obama by 10 points among independent voters in ohio and he still lost the state. there is give-and-take here it obama turned out more of his target voters because he had a superior ground game. matt: i read a lot about people saying it's the angry white male vote that is going for donald trump. if you have democrats who are angry white males, you can persuade them. you can say hillary was talking about you. steve: if donald trump is going to persuade democrats, who would be most likely? maybe not women and minorities. we looked at white working class men living in areas of high economic turmoil. factories are required by federal law to report layoffs.

we were able to map the layoffs and count how many white working-class men who vote democrat win -- live. we found about 700,000. in pennsylvania, that could be enough. in ohio, it could set clinton back and make the game easier. scarlet: what evidence you have a donald trump is following this formula? this is what conventional politicians use. he does not to use the word. he is a disruptive candidate. could he go another way? all, this isof where he is spending his money. this is where he us ending his time. the two major candidates and their running mates, he is spent more than 40 of events in these three states since the convention. it's almost averaging one a day

or one every other day and then some. the other reason why is donald trump's new campaign manager is a veteran pollster. she knows this stuff. cruz's super pac. knowing that she has donald trump's year, this is what they think is the easiest path to victory. matt: thank you so much. i highly recommend checking out the website and checking out his story. scarlet: leaders from canada are meeting for the fixed and, congress. that next.r about this is bloomberg. ♪

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markets.s is bloomberg let's get the bloomberg first word news. for that we go to mark crumpton. mark c.: bill clinton is filling in for his wife i campaign events in california and nevada for the next two days. she is resting at her home in a new york city suburb. she has been diagnosed with pneumonia. bill clinton spoke last time with -- last night with charlie rose. mr. clinton: she had a good nights sleep. she is doing fine. she just has to be hydrated. mark c.: you can watch the entire interview with former president though clinton tonight new yorke rose at 7:00 time here on bloomberg television. donald trump will unveil proposals to make child care more affordable for working families. during his speech tonight and suburban philadelphia, he is expected to call for giving new mothers six weeks of paid maternity leave.

a is also expected to discuss savings account that would allow families to set aside money for their children or elderly parents. anti is mer cite past taiwan on thursday. u.s. warplanes are sending a message to north korea. two american bombers capable of carrying nuclear weapons flew over south korea, accompanied by south korean fighter jets. the u.s. pacific command said it was a show of solidarity after the latest and test. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg.

so much.thank you political leaders and investors are meeting today i bloomberg world headquarters here in new york. the gathering is looking in-depth at the market of canadian bonds and what the future holds for that industry. a man delaying spoke with the canadian financial minister earlier today. >> we are now into position, for 2016, we will be publishing public accounts soon. there will be a surplus. not just a balance, but a surplus. it is a significant surplus. we have to turn it around from a position of systemic structural deficits to a place where he gives us a lot more comfort going forward in these very troubled times we live in. >> if you were a country, you

would be basically the size of sweden. you are, though, not independent. you are attached to the federation. the finances of the federation, maybe not quite as strong at the moment. not quite the gold star of quebec. howning a federal deficit -- much of the dry is that on your economy? >> at this stage, i do not view that as a drag. perhaps one interesting to point out is the canadian federation is unique federation. it is flexibility in the way operates. leewayhas quite a bit of . i, as a finance minister in quebec, and might colleagues in toronto and other providences, have a lot more discretionary power, if you will from my

cousins and other countries. we do have sources of revenue that the government can levy taxes. it is a decentralized federation that functions well. it is a monetary union that actually works very well. we have all kinds of transfer payments. it is a rather well functioning desensitized -- decentralized federation. in that context, quebec can prosper. the fact that, as you pointed out, the canadian federal government is in a deficit position, it actually benefits the provinces. i don't think it is the role of provincial governments to provide fiscal stimulus. we are in the business of

providing proximity services, health care, education, family services. that is what we do. fiscal stimulus, that is more the federal government's role and what they are doing now. the deficits, we could discuss whether or not they are sustainable, but again, the federal gdp ratio is fairly manageable. scarlet: a man delaying -- us now.ang joins he was everything in town for this conference, but also here to drum up some business. aanda: certainly, when financial minister goes anywhere, but especially new york, he is talking to potential investors. it is in their interest to spin.t the best of the provinces and territories and kader, this is one of two that is in zero deficit, we even surplus, position. they have done a good job of

turning the fiscal ship around. thought it was interesting, the term, canadian federation. i have not heard that before. >> i may have used the word federation before he did, but it is one of the political risks you take in quebec. it seems like young people are less keen on separatism, but it is still a risk. scarlet: speaking of risk, you have to wonder what his stance is on the elections taking place south of the border. we have a very kind of protectionist rhetoric going on, whether it is from donald trump or hillary. let's see what he had to say. of protectionist sentiment being raised, that is very distressing. clearly, our standard of living depends on access to the rest of the market.

also, the united states itself relies a lot on canada. scarlet: did he say anything specific about donald trump or hillary clinton? amanda: he did not say names. he said that manufacturing -- you cannot build a wall, it is actually in north america wide phenomenon. he said, we do a great deal of business in mexico. he did not state-run, but i have heard many american busy leaders, if they are tilting one way, they are definitely more worried about a donald trump presidency. scarlet: he is not a career politician, is he? amanda: he was an economist at one of our biggest eggs for a bankstime -- biggest for a long time. when he says it is a $1.8 billion surplus, he is saying as an economist.

it is an interesting angle. it brings a great deal of credibility to the role. scarlet: thank you so much. you are taking a look at the equity market. what are you seeing? i'm seeing losses across the board. we're not down as much as we were on friday. 238 points.dow down the s&p following 1.5%. the nasdaq down. this is mainly led by energy companies. you will show us more about the glut hurting the price of oil. i will go now to abigail doolittle, live from the nasdaq is more on the market. abigail: we do have a decline here for session lows. the big story today is really the return to volatility. we are now looking at three days of a row and 1% or greater moves

for the nasdaq. we see this volatility, the first bout of volatility since june. we have five lower highs, typically there is. if the nasdaq should close -- we could certainly see more downside ahead for the nasdaq. over at bt ig, they believe we see a continued pullback. matt: what amazes me, and we really see this, the nasdaq is down 1.3%. and looking at apple, apparently up 3%. it is worth such a huge chunk of the index, you hardly ever see the movie with such force. abigail: that is a great points. think about how much the nasdaq would be down if apple were

lower as well. apple is higher, in fact, for the second day in a row. the cause for the bullish action today, the ceo of t-mobile tweeted that iphone seven preorders are at an a all-time high. apple said they would not release the preorder figures. investors must believe that everything is ok for the iphone seven. matt: what we see apple generate as much revenue growth as they have in the past with such a similar phone to the last one? is a greatat question, the biggest question for apple. in the march quarter, apple had a revenue decline for the first time in a decade. we had to decline for the june september quarter. whether or not the iphone seven will be the phone to do it --

analysts right now believe it will. see think that we could apple return to revenue growth into december quarter. there is an extra week in the quarter, plus, this positive early report on the iphone seven. the bar is set pretty low. matt: maybe it will spur more consumers to get out there and buy one. back to you. scarlet: coming up, we'd hear from -- we will hear from kevin irsh. this is bloomberg. ♪

scarlet: this is bloomberg markets. i'm scarlet fu.

matt: it is time now for the bloomberg is this flash, a look at some of the biggest business stories in the news right now. samsung is blaming a minor battery manufacturing fall for of itsldwide recall galaxy note seven phone. word today that atlanta said think president, dennis lockhart, will step down at the end of february. it says a search will begin to find his successor from a diverse group of candidates. that is your business flash update. scarlet: staying on the federal reserve, kevin warsh says that he favors extended blackout periods for doing more listening and less talking.

he explained breaking down the -- the danger of breaking down fed policy into a science. >> to believe in these forecasts that have only been wrong consistently for seven years is a bad way to make economic policy and dangerous for markets to follow. mark b.: what are the outcomes then? this line here shows the 20% appreciation of the dollar through january of this year, it is the equivalent of a 200 basis ike.t h what you make of communications like that coming from the fed? >> i take as a judgment. the judgment is they want the dollar to be weaker. that is not a hock or a dove, it is u.s. policy. it is not a policy that i would favor. the fed is in the business of establishing short-term interest

rates. there is a free flow of capital. this needs to move to the highest and best project. in the depth of the financial crisis, maybe we have to exert more influence. that was a long time ago. >> the other story of this is chair janet yellen -- what you make of the fed shifting away from domestic factors and putting in statements that there is a concern about global risks? how has that thought evolves in the last five years and why? >> i think the truth of the matter is the fed has huge second and third order impacts to every other economy in the world. it is almost impossible for other major central banks to make the right decision for the central policy if they have no idea what the federal reserve will do. if we have plans that change with the seasons, i think the truth is when the fed

establishes a plan with the strategy, if it sticks with the plan, we may call it hawkish or dovish, and then others can make the right plans for their country. whether we like it or not, the u.s. and u.s. central bank are the most important inside of it. >> are we looking at a stand chart coming back? i mean this in all seriousness. we saw janet yellen show a fan chart. is that kind of communication something we will see from the fed? will it more helpful? >> i can get would be useful if they shared the kind of modesty that a. chart suggests. it means we don't know and we will no longer pretend to be so precise. that is the direction that the bank of england has long gone. they have had fan charts to suggest, why don't you inform rather thans

saying, you should follow us. >> the other side of the fan chart -- you go through the inflation report and try to work out what on earth is going on. you would you waiting for the bank of england to tell you. that is kind of the feeling right now, waiting for the fed to tell us, almost as if it were .ospel, but with an asterisk have they lost their credibility by trying to seize the market information that they essentially cannot deliver on? >> they made to use market prices to inform their decisions. instead, in the depth of the crisis, they learned that they can push markets in which every direction they want. we need a more healthy dialogue markets. that is why i am in favor of extended blackout periods. scarlet: that was kevin warsh, federal -- former federal reserve board governor.

ride onming up, a test a scenic route in northern italy. it was not me driving the car. i will judge. i will watch and judge the reporter who did it. this is bloomberg. ♪

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just 3000 bottles of wine are way per year in the classic . >> we turned the bottle upside down. the wind stays in the bottle for three years. >> beautiful. i will drink to this. >> cheers. >> drinking a rare lovely rose rose at twilight, the perfect and to the day. bloomberghat was pursuits' hannah elliott. not a bad way to spend her summer. matt: a fantastic way to spend the summer. the car is gorgeous. scarlet: $72,000 as a base price seems reasonable. matt: it does seem fairly reasonable.

she said it is a ferrari v6. i don't believe that ferrari makes a v6, and if it did, it would cost much more than $72,000. scarlet: it does not even look like an suv. matt: it is gorgeous. i cannot wait to drive one, and i want to visit all of the places that hannah recommended. scarlet: you can read more on bloomberg pursuits on the bloomberg. matt: coming up, we are sitting exclusively down with salesforce.com ceo and founder. this is bloomberg. ♪

scarlet: it is 1 p.m. in new york and 6 p.m. in london and 1:00 a.m. in hong kong. matt: welcome to bloomberg markets.

scarlet: from bloomberg world headquarters in new york on the air covering stories from north carolina to zurich and tokyo. u.s. stocks are retreating along with sovereign debt from europe to america. plunging prices and the dollar is higher. theou are worried about paper tantrum, the bond markets. duke basketball legend coach k will tell as what he thinks of the ncaa decision to move the tenement out of north carolina and we will ask you about his move from the locker room to the boardroom. we are halfway into the day. oliver renick has the latest. oliver: no matter where you

look, the major averages are a little bit worse off than we were at the top of the hour. the s&p 500 is down with weakness in the dow. than 1900tting more on 2000 stocks in the small-cap space, down almost 2.5%. terms of then stocks being oversold and levels don't show a lot of signs of relief if you are looking for a bounceback rally. we looking across everything getting sold off quite a bit. in the dow, the only mover is apple which is up. you see the big industrial companies pretty weak. matt: it's amazing apple is

doing so well and the indexes are doing poorly. apple makes up for percent of the nasdaq? if you look at the s&p 500, apple is not quite the savior but it's having its biggest two-day rally since july. it looks like the numbers in terms of the fanfare for the new iphone seven, people are getting pretty excited about it. providers for a telecom are coming in pretty strong with the iphone seven. telecoms are taking a hit today? liver: four point 6% dividend in the telecom group so that's getting hit quite a bit today. -- 4.6% dividend in the telecom group so that's getting hit quite a bit today. the iphone numbers are looking pretty solid. matt: oil is the other big problem. it's the second biggest loser

after energy. er: the correlation with stocks have not really been there and oil has been going back and forth while the s&p 500 has been pretty much flat through last friday. it's not the same indication is looking as oil as a predictive measure of stocks. macro trendarger that has dissipated and maybe it's not a reflection of the world economy. going on inot stocks right now that is still independent of oil. with earnings crashed in that sector, valuations are high in oil but whenever there is a saying the the iea supply glut will stay there, they are still pretty pricey stocks because of their earnings. those earnings have eroded but it does not make up as much of the market.

matt: thank you very much. scarlet: let's get to the first word news. the cease-fire in serious civil war appears to be holding. activists andon monitors say there is only my -- minor violations. the goal is for it to you for seven days. israeli warplanes shot artillery positions. israel says antiaircraft missiles were fired at the planes missed. singapore says that number of locally transmitted zika cases rise.the researchers concluded the strain found in patients in singapore was not from south america that was similar to those found in the region decades ago. there areicials say 30 -- 333 cases of the virus in singapore. news, 24 hours per day,

powered by more than 26 hundred journalists and analysts in over 120 countries. matt: thanks very much. let's go to the tech crunch disrupt conference in san francisco. brad stone is sitting down for an exclusive interview. thank you. i am here with mark benioff. weeks, you've gotu2 playing but salesforce einstein may be getting most of the attention which is your artificial intelligence product so what is it? >> we have dream force coming up and it's already sold out. almost 200,000 people coming to san francisco so it will be exciting. u2 playing and we have einstein coming which is the salesforce new artificial intelligence platform.

it will give all of our customers the power of artificial intelligence which is machine learning and deep learning inside the salesforce application. >> i followed you guys long enough to know you it -- you do a good job every. year of sterilizing some themes you talked about the internet of things last year. this year, artificial intelligence, why is it real and what can we expect? >> ai is a huge movement in our industry. the one thing that's been great for salesforce is about a dozen lastmpanies over the two-three years in that include spending about $300 million. we took those employees and stitched them together into an incredible team and we are delivering this amazing new platform based on the technology at an includes the best ai capabilities i have ever seen. >> what is your pitch to these

companies? them to comenvince into your company? >> we are the largest tech company in san francisco. we are one of the fastest-growing software companies of the top 10 software companies. we are committed to improving the state of the world. we believe this is a platform for change. model.ve our 111 we give them 1% of the equity publicfocusing on a schools which is critical in san francisco and oakland and our children's hospitals and our homeless and that's important to them that they want to give back and be able to create products. companies have not made that shift but salesforce has so we are attracted to the entrepreneurs. >> you talk about that

commitment at disrupt. you made $4 billion in acquisitions recently. why has salesforce been so acquisitive. ? companys to be a great to buy with great technology and entrepreneurs and the price has to be right. coming into this fiscal year, i did not think we would buy any companies. it was not part of our business plan a series of things started to happen which opened the door. the biggest thing is we got a hade call that demandware an offer from a major software company and asked if we would be part of that process and we said yes. we love those guys. this is an amazing product used by so many of our customers already. companies like louis vuitton and adidas and under armour. when they saw the ability for toesforce and demandware

come together, a gave us the ability to sell online. you can see the software in action and they will probably sell more than $1 billion year on that platform which is amazing. the technology is incredible so he knew that is the right thing for us. >> i want to talk about one of the deals you did not do which is linked in. microsoft acquired them. would you do anything differently going back? >> yes but you cannot win them all. our industry, that's true when you are going up against microsoft who has all them out -- all the money and power and resources. are at a disadvantage but we gave it our best shot. we wish them the best. does it make microsoft a more formidable competitor? hp inc from the

former hewlett-packard. are they a more serious threat now to salesforce? >> i don't think so. we are the fastest-growing software company in the top 10. we are faster even then microsoft and we are number one in crm. we are never going to win them all but this is good for salesforce. >> oracle is another competitor. >> i know them very well. >> all your former colonies, what does that deal do? are they a stronger competitor? >> i don't think so. i think it's a desperation move to boot their -- to boost their cloud revenue. they want to make their $10 billion goal. they may not still be able to make it. will you get a call or text

later in the day from larry? might relationship with larry ellison is far more enduring. he taught me this. he does not pull his punches either. >> you get on the court and play with your friends and you played as hard as you can and you say crazy things and you go off the card and have lunch and a glass of wine and you say how much you love them. larry ellison has been a great mentor. there is no one in the industry who has done more for me than larry ellison i am very grateful to him. . as you mentioned, salesforce has had a tremendous growth trajectory. the last quarter had some softness. how much of that was seasonal? >> last quarter was amazing.

beat on the top and bottom line and we also raised for the year. the second quarter, in the middle of it, things happened to us. brexit happened which took the euro and dropped it down. a significant d acceleration of our european revenue. it has given us $150 million of headwinds in foreign exchange for the year. the second thing is we saw some softness in the u.s. at the very end of the quarter, specifically only in the united states and those two things combined give us a quarter that was not optimal but we still had a great quarter. >> were their execution issues? >> i think so. the thing about running software orpanies, you go for six

seven quarters and there is always something that seems to happen and you need to repair it. in the last six or seven quarters for salesforce, we have grown the company dramatically and we have almost 25,000 employees. when we see there was a small execution issue at the end of the second quarter, we can get in there and work on repairing that and making the company stronger than ever which is our goal. will that ed morris, by the way. >> you have been an outspoken supporter and back are of hillary clinton's presidential campaign. with of the week we are having, do you think the possibility of a trump possibility and how would you plan for it? >> the reason i supported hillary clinton is because she is the candidate is most focused on education which is something very dear to me. you probably saw salesforce just

gave another almost $10 million to the public schools here in san francisco and oakland as of our drive to make a san francisco and oakland public schools the best in the world. that is something where we are a partner with hillary clinton. we were partners with her before she got into the presidential run. we introduced a program where we are trying to help newborn mother's talk to their kids so they will have great academic performance in public school. that's why i am attracted to her. she is working with the kids. do you think about a presidency? what would it mean for silicon valley? i think whoever is the next president of united states will have something amazing to work with which is the greatest country in the world which is what we have here. i think we have an unbelievably

economy. look at this show with incredible innovation and incredible people. whoever comes in and i think will be very grateful to have that resource available to them. >> marc benioff, thank you very much. great to talk to you. matt: thanks very much. that was the salesforce ceo, mark a benioff. let's take a quick check on the market. today is downck 16%. the rest of the market is down and salesforce is off as well. but they are down for the year as well. it has fallen about 7% but over the last five years, i think including0% reinvested dividends. stocks are down across the board with the dow jones losing 250 points.

the nasdaq is down the least because of the game from apple scarlet:. we are also seeing oil selloff as well. you are seeing a one-day chart of oil off by 2% but it was dropping as much as three .3%. the international energy agency says the global oversupply picture will persist into 2017. that is longer than anticipated. around $45 per barrel. when you look at a one year chart how it compares to the supply picture, you see the big oil rally off the february low. there is a big advance but a little bit of stumbling after that. it lost steam over the summer. it cannot get to that $50 level. the orange line, that is the total inventory in the u.s. there was a little drop at the

tail end bear. a storm disrupted imports and that was early september. the delayed imports are arriving now so that's leading to market expectations that you will see a big buildup and inventories which helps put pressure on the price of oil. what does this mean for opec because they were mean -- they will need it later this month. one strategists says the opec discussions appear to be more difficult with these revised forecasts. the projected cots, you wonder how much that will happen. what will it take to rebalance the market? have not been steadfast as a cartel in the past. people are taking money out of stocks, and out of people are taking money out of bonds as well. if you look at treasuries, yields are up in the two year, the 10 year and the bund.

there is a little bit of money b's but we have an auction in the u.s. to minelael bbrainard says a september rate hike is far away from the table but people are selling bonds today. it has been said it's time for fixed income investors to get more defensive. the move up in yields may be the beginning. it's not that the selloff will continue at the same pace at the start of this month but certainly the great bond rally we have seen may be in the final stages. matt: that is something to watch especially when you get the fed decision. we are in the official quiet period tomorrow. scarlet: in the meantime, we on the techch more

crunch disrupt conference. the ceo of pokemon go, make sure you catch our interview at and other ceos.r from

scarletvonnie: you are watching bloomberg. mark: this is your global business report. carson block says companies in the euro are a ticking time bomb. the short seller explains in a moment. there's an anti-poaching being accused of keeping wages down. wants foreign oil companies back. the government is offering international companies their biggest role since 1979.

we will examine the situation. short seller carson block's as investors in europe need to do their homework about companies planning on debt. the founder of muddy waters research spoke to bloomberg tv. >> i think one of the major issues in europe is what made it interesting to us and still remains is that investors in europe are not doing the hard work of really trying to dig into the financial statements and understand the economic reality that lies beneath. meanwhile, companies are borrowing at extremely cheap pressures just pulled up until one day, they become a problem. he describes some european countries as ticking time bods -- bombs. the chief executive a barclays sees parallels between

the u.s. presidential race and the brexit vote. he says the presidential candidates can have a substantial impact on the world economy because of their skepticism of free-trade agreements. he says the rhetoric is globalization. he calls that similar to the brexit campaign. increased since a brexit could the average price of a house in the u k rose just of 1% in august. prices grew at the same pace in july. as shown prices are up 4.3% which is the weakest increase in three years. a tax increase gets some of the blame. two electronic giants in hong kong and of agreed not to use -- have agreed not to steal each

other's employees. tens of thousands of u.s. workers are involved in the companies are not commenting. last year, apple, google, and other companies reached a settlement over similar anti-putting claims. our quick take. revenue to feed its economy, the third-largest in the middle east but they have years of sanction and the government is offering deals for international oil firms. there are plenty of risks. oil output is almost returned to its pre-sanction level after iran reigned in its nuclear program. they want to boost production by 20%. to reach his goal, the government is called on foreign companies to invest $100 million in the oil industry. the cabinet up the template of companieswere outside

in early august. for most of the 20th century, iran had almost no control over its oil production. the state received the lion profits.the the parliament nationalize the country's oil fields in 1951. islamic revolutionaries overthrew the shot in 1979 and they re-nationalize the oil so inforeign companies operated iran. sometimes came back in the 90's but most of those companies stopped operating there right 2010. political risks outweighed the benefits. -- big oilmpanies companies and know that the oil is cheap to extract the list is long. regulations in iran are complex and investors have to enter a joint venture with a local totner making it harder

comply with anticorruption legislation and the u.s. sanctions. next year could change things once more. you can read more about this on the bloomberg. bloomberg.com for more stories.

matt: this is a live shot of new york city.

this is bloomberg markets. want to get a check on the headlines. mark crumpton is in the newsroom. former israeli president shimon peres has been suffered a stroke and has been rushed to a hospital. the 93-year-old is stable been fully conscious. he was speaking with elliott gotkine in his video is a polish born israeli statesman and has held virtually every senior political office in israel over seven decades. he stepped down as president after serving a long-term. should pardona edward snowden, says edward snowden. he lives in moscow but he says

he is confident of returning to the u.s. one day. the founder of linkedin is the latest silicon valley mogul to get his money involved in politics. reid hoffman says he will donate as much as $5 million to trumpns if donald releases his tax returns. he says he cannot because he is under irs audit. moving events out of north carolina in relation to the bathroom bill aimed at the lgbt community. seven events the relocated including first and second round games the division i men's basketball tournament. global news, it did for hours a day, powered by more than 26 hundred journalists and analysts in over 120 countries. so much.thanks our next guest is the duke university basketball coach mike krzyzewski.

questions thatof we want to get his thoughts on the ncaa decision. the policyics said is discriminatory and n.c. state say they are disappointed. is there more the schools can or should do? -- the firstinning thing, and our athletic director and i agree, it's embarrassing for our state and it has cost the state an immense amount of money. and jobs. even more so, it has put our image. have aes it cost of great image? it takes a long time to build. i support what our athletic director said yesterday. i said this when we were in the olympics, it's embarrassing. matt: the tournaments bring in a ton of money to the state and a ton of visitors and that will be gone.

this is not just basketball. what about the acc? they have not come out with a decision yet so do you expect them to go as well? >> i am not good at predicting but i hope that they would get that way it would be in concert with the insert -- ncaa and indolence to visual -- an individual institutions. they would be lockstep with the institutions in whatever the item is. with this item, i'm glad the schools have stepped forward. doeset: to what extent this decision help the duke athletic department? the schools in the ncaa tournament will be good enough in the first round games but would normally be in greensboro but that means we will travel.

things like women's lacrosse and other championship events -- our school has 27 different sports so whatever events the ncaa would have in those sports are taken away in that means more .ravel we are proud of our state and we wanted to come there. we have some of the best institutions in the world and some of the best sports programs in the country and want to showcase them in our state. hb2 seems like it is fixed . most of the country is against this kind of discrimination and it's fairly one-sided nationally. there is a split on the colin kaepernick decision not to stand during the star-spangled banner. a number of athletes have joined concerned about what they see as racism and problems they policing in america.

where do you stand on that kind of protest? i am glad we are in a country that allows us to protest. that's not alive and well all over the world so we should be forever grateful for that. whoever has the right to do that. for me, i will stand for the national anthem. i am in the military, i graduated from west point, i know our olympic team stood with their hands on their hearts but a big part of that as we a great relationship with the military. we kind of supported, in this tragedy, taps, assistance program for survivors were kids and family members who , they brother or husband were with us every step of the

way. it was our way of saying we are with you. that was a statement. in other words, we used the anthem for that type of statement and god bless our country that we can make those statements. scarlet: when you are coaching the team usa basketball team, did any of the team come to you for advice on this issue? what would you say to them versus the college athletes you coach ernie the regular season? we will stand for national and in every time we play and figure out what they feel about it. as a group, we talk about it. we would stand and we would have our hands over our hearts but if somebody felt differently, they have the right to do that. we never had that issue the u.s. team and part of it is you have wounded warriors coming to speak to you and help learn about

selfless service and you will stand with your hand on your heart because you know that person is watching you. that's your way of saying thanks. -- it's an individual decision got bless our country for allowing us the opportunity to make individual decisions like that. scarlet: i'm thinking of athletes like andrew jones have an issue for more diversity in sports and less applicable toward baseball or hockey. what you think about that? >> we have a common factor, it's all human beings. i would rather not good sport by sport. the percentage of african-americans it out is the greatest. -- inr it's in rural response to that specific issue,

all those people have a chance to react to any issue in that way. this is my personal thing. the one time that we as a country can show solidarity is with our anthem. someone could say uart nationalistic or patriotic and i just like the fact that one time , no matter what our differences are, we stand under one flag together. let's solve the issues. idealistice me being but i am not opposed to people are using it to protest. that is their right. you are someone that many people go to for advice. guests talks about advice he had never gotten as

far as picking hedge fund managers so it similar to what you do >>. >>it's all about people. people change depending on the culture they are written. i am 69 years old but i always coach 18-22 years old and i keep having to change and cultures -- change in how you communicate. choose and educate, the value stay the same like loyalty and trust and teamwork but how you teach them and how you changes.te to them whenever i have an opportunity to speak or teach, i try to make to? -- who are you speaking are you speaking to people 20 years ago or today? it starts with communication. communication leads to trust and if you have those two things, holy mackerel, we've got a chance to do something pretty good. scarlet: many people are getting

a chance to do a lot with your leadership skills. talk about your leadership development platform and its got some pretty big names. tell us how this new venture came about. caa forrepresented by the last four or five years. i wanted to make sure -- i will still coach. coaching for the u.s. pilot coach for duke for a while. -- i stopped coaching -- for the for team but i will coach duke for a while. they had an idea about a platform, video-based, thath hr from all the different companies can use.

how do you teach leadership? how do help emerging leaders learn about leadership? i am fascinated by it. platform is basic storytelling. you have leaders from different walks of life and they take a case study of 15 minutes. you can look at it and it's a story. you asked what would you do and what decision would you make the tumor --? as a group, you can study it. when it's not just the top people who are leaders but if you have leaders throughout your company. if you help people learn about help them make on the spot decisions, your group will be better. i am excited about it. matt: it's like an interactive so you get people who

have achieved great success and you have put together a multimedia package? takingr forward is about a word-adaptability, trust, these areourage -- powerful words that if you own them, you develop character. it talks about that word. it's a story about that word. to do you make the decision be adaptive? how would you be adaptive? how would you show courage? how would you show empathy? i love it because instead of giving a speech which i love to .o, it's intimate it's you and that person and .hen that person can take it you might be in a battalion in

the military but how do you teach a squad later? the squad leader may be a better leader and your battalion will then be better. a great points and you are always working with -year-oldss old ---year-olds so you are always changing. what is the fastest way to create teamwork from a group of different individuals? >> the first thing is to get on the same page and you do that by having standards, not rules. when we talk to each other, we look each other in the eye. some people don't know how to talk to each other anymore. the second thing is to tell each other the truth. if we do that on a daily basis, what we will develop is a relationship of trust. the new build everything else from their. i try to do that with the olympic team, the national team, the duke team and if i were in

business, i would do it with the business team. matt: are you aiming this at just businesses? is the military going to be able to look at these power forward presentations? can retail -- >> it's not just the business at -- environment. i would like it to be interactive and schools eventually. teacher, i'm an adjunct professor at our school of business and i would like for every student there to be a part of it. the owning of words is a huge thing. that's what it is based on. influential people in different walks of life to tell their story and have it be hour, youe, in one would get a lot out of it. then you might be able to share that with the other members of your team. whenever you can do that with your team, it can develop some

cohesiveness. how good would it be if somebody makes a decision at this level that doesn't become a problem that has to be solved at that level? that's kind of what we are trying to build here. you might see something wrong or you have an idea but you were afraid to step forward. scarlet: the technology here is in the platform but it's not approach how you -- but it's not about how you approach teamwork. what to people get wrong the most when they try to work within a team? >> i think they categorize themselves. i'm not supposed to do this. they put themselves in a box. we do that with organizational charts. what i like is someone who does not himself or herself in a box

but rather the situation warrants of this action right now and as a leader, i will take action. that's who i would want on my team. i would want my team to learn that, not just assume they know it. this program, power forward, it's a way that the overall leader can say i want you to be better and make those type of decisions. --rlet: coach mike krzyweski he has done a lot, military, adjunct professor and now power forward. we have live pictures right now a president obama who is campaigning for hillary clinton at a rally in philadelphia. she is of course arresting at her home in westchester, new york after she announced she was suffering from pneumonia. the president is speaking and we will monitor it and give you any pertinent to news. chartt: coming up, this

has been the subject of many strategists in wall street and you would expect this to go upside down after the selloff on friday but it's one of the few market indicators that looks normal. this is bloomberg. ♪

matt: this is bloomberg markets. i'm here with oliver renick on his mystery chart. we just set it up. i noticed that it starts in october of 2016. 2017.t climbs up to is it a future chart? er: i thought you were going

to say some kind of futures curve. this is basically looking at contract betting on where volatility will go next. stocks are selling off for a second day to day, 25%. -- 2.5%. vix is up 44% since thursday. at isou are looking something that does not typically happen in the stock market is selling off. vixnormally see the spot and the front one or two futures jump up with it. that happened in january and august because wall street is betting that volatility will be

reduced. maybe because it's been low recently, it's hard to get that or these different v strategies but it's looking pretty normal. ix matt: thank you so much. coming up next, do we still have more to go in the bond market? we have the charge of cannot notice ♪. this is bloomberg. ♪

scarlet: this is bloomberg markets. remember the taper attention? it's sort of making a comeback. youweisenthal is here and coined this term and you put together a chart that illustrates itjoe: i saw this on twitter and it shows the japanese 10 year yield versus the u.s. 10 year yields in 2013

when we had the taper tantrum. that was perceived to be the result of the fed policy error and suggested that tightening in maybe happening quicker than people thought. japan ahead of this evaluation of their monetary policy framework and what started their is having -- there is having global reproductions -- repercussions. they are hitting new short-term highs. with all these charts, when you them,y and timeshift of they are always a little bit dicey. there are always shenanigans you can do is charts. you have to be intellectually honest but it's interesting in the sense not that one will repeat but that's a similar theme. we have been here before.

people say it's not normalized as one criticism. i still normalized and it looks like it's tracking pretty well. joe: it's not too bad. you can always play around with lines to make them look similar. you got this chart from someone else but in all the research you read, has a -- has anyone else brought up this idea that these are similar? joe: i have seen that theme a lot. bund, it was the bund tantrum when we got decent inflation data that made it look -- it caused a selloff. is thereesting thing has been nothing out of the fed so they are not calling the shots. matt: very interesting.

the idea is maybe what is japan is maybe what we will be. lots of anxiety that japan is a glimpse of us. scarlet: we will see you back at 3:30 p.m. when we will take you through the market close. matt: we will continue our conversation on greece. 4:00 p.m. eastern. this is bloomberg. ♪

vonnie: 2:00 in new york, and 7:00 in london. i am vonnie quinn. julie: i am julie hyman. welcome to bloomberg "markets." ♪

julie: clear live bloomberg wrote headquarters in new york over the next half-hour, covering stories from washington, when is a red, and istanbul. vonnie: market volatility is back. -- when is a red and in the -- instanbul.s and julie: hillary clinton on the sidelines as she recovers from pneumonia. questions remain around her health disclosures. >> the inaugural argentina business investment forum underway. bloomberg tv has been there all day. bob dudley along later in the hour. >> markets close