david: we are alive and bloomberg world headquarters in new york and covering stories out of san francisco, trinidad, tokyo. stop trying to hold onto gains as traders await key decisions with a fed decision exactly 24 hours away. there are big lines for the new iphone seven but one of the product is not the huge blockbuster is expected to be? we look at how the new phone will be impacting the telecom giants like verizon and at&t. and the oracle ceo is our guest from oracle world. markets close in about two hours. let's turn to julie hyman. bouncingocks have been around as they were yesterday and a tight trading range. investors are waiting for central-bank action or commentary tomorrow from the fed and bank of japan. we have the major averages up a fifth of 1%.

investors against what of waiting care to figure out what we are going to hear. i should point out we are watching the banks stocks today. we are still seeing this gain in stocks. the shares are rising with upgrades over morgan stanley, shares are looking an expensive right now. .hat bank index is up algeria saying that opec meeting could be transitioning from informal to formal. that appears to be raising hopes potentially about what it will mean for some kind of production freeze. despite on those

headlines. they are coming back down a bit but still hanging onto a gain of .5%. we have an intriguing deal with me pharmaceutical industry today. with allergan buying this little as $1.7pany for as much billion. even if the experimental drug it will meet goals, still get a 498% premium with an $89 million company as of yesterday. it all has to do with this experimental drug, which is to treat a kind of fatty liver disease in people who are not drinkers. apparently this is a growing area and other companies are also rising today. interesting of an side story today.

that premium definitely bears watching. david: thank you. now let's check on the world news. mark: donald trump is don't -- campaigning in north carolina. he took exception to hillary clinton's assertion that his rhetoric serves as a recruiting tool for islamic state. it's ause i'm tough, recruiting tool? it demonstrates a level of ignorance about the terror threat that really is for a person seeking the presidency. we know that hillary clinton has once again demonstrated that she is really unfit for office. mark: clinton said recent violent attacks that to defeat

the terrorists, we need experience, steady leadership. prosecutors are still deciding to charge. they're also tried to figure out

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tools and shrink their balance sheet and that would be taking action. toestly, i don't expect them take any action tomorrow. they will probably look at all their data and stay quiet. >> give me a rule of them here. where do they need to get their expectations? december is about 57% right now. what do they need to say to really get december insulative that is what they want to go? >> a need to have some hawkish comments. you will have alan greenspan later on this week. when he was fed chair, the markets never really could so this is really

unique that the fed suddenly has to worry about the market expectation. >> chris takes us back to interesting point. we have had an array of fed presidents coming out and speaking on quite different things. most people thought they were really disagreeing with each other. will there be unanimity tomorrow? >> we definitely have heard a variety of opinions. the whole way across us that term, some people coming out with a really dovish tone and urging the fed to be patient. heard really hawkish comments. there is a real possibility of dissent.

>> thank you. i want to continue with you on this. >> premarket my gyrate, the bond market will react the most. there's not a lot of news going on for stocks so you could see something this week. soon, we will end up with this quarter and then we will get back to earnings. the fed has a september and december. they haven't even followed that at all. does the fed need to be

thinking about what the other central banks are doing? we thought central-bank convergence would be the theme this year. i think the fed has to play -- pay attention. their job is inflation and employment in the usa.

david: this is bloomberg markets. tonie: let's get back capitol hill. john stumpf testified before the senate banking committee about the banks opening of andthorized accounts in -- said he was deeply sorry wells fargo was too slow to tackle abuses. richard shelby said the consumer financial protection bureau is in the hot seat also. with you again. he said i accept full responsibility. i want to get your interpretation of that. >> i think there were a lot of questions asked of mr. stump today. answer ag he will

record. we will go from there. but it seems to me from the hearing and what i've read that there is not a lot of accounting here, especially in the isher-ups for the somebody responsible, someone has to be accountable. it can just before thousand or 5000 low entry workers. somebody created the condition someone abetted it. somebody was rewarded. this took a hit on wells fargo. wells fargo has had a good reputation. trust and integrity is very important for the banking business. >> that is not up to me, that is up to the board. the food is responsible to shareholders full's them we will

see what unfolds. >> elizabeth ward was also part of the committee questioning today. she said you should resign and give back the money you took while the scam was going on and be criminally investigated by the department of justice and the securities and exchange commission. how much of that is fair? what would you look for? what would you like to see happen in this case? would like to see a thorough investigation, some more answers, and some more accountability. and try to find out if this is widespread in the banking system. >> an investigation system on the part of wells fargo or an outside agency?

>> this was brought to light by the consumer financial protection bureau. they relate to the party. -- they were laid to the party. >> you said 5000 people have lost their jobs, somebody above them has to be held accountable. there will be people who say this is further evidence these banks are too big to manage. what do you say to them? >> i do believe in the institution is too big to fail. that includes banks, industrial companies, and so forth.

>> what do you intend to do next about this, senator? most republicans confessed to leaving around two to senator warren. what do you plan to do now? >> we will see what turns out because there are some investigations going on and a lot of unanswered questions by mr. stump today that said he would answer for the record. should the 5000 plus employees have been fired? >> that a lot of people fired for wrongdoing and no executive officer was fired to my knowledge. you have. to have accountability

in any organization, especially a bank. let's see what happens in the next few months. david: there has been a conversation about clawback, whether or not the executive in charge should be paid what he was paid. another executive retired with a substantial pay package. >> i think clawbacks resist for a reason and whether it's wrongdoing or mismanagement, the got to go after that money and bring it back to the system and not reward somebody for wrongdoing. 200 million dollars has been paid by wells fargo in relation to this breach of trust. would you like to see more fines levied? >> that's not up to me to do that. i'm not in a position to levy fines, i don't have the

information. one thing that did strike me, .he consumer agency yet, what about the victims of all of this? have they been adequately compensated? i don't know that, but the number seems staggering. see whatou say let's happens. there's still stuff to learn. we are learning this could go back as far as 2009, 2000 10. give us a sense of what you took away from today's hearing. >> my biggest take away is some unanswered questions. did this start? did it start in 2011, 2008? was it widespread with some other big rigs? i hope it's not but it's indicative of a lot of things that have gone on with some of the biggest banks in the country

and a lot of people just don't trust them. , thank richard shelby you for your time. david: brazil and argentina trying to boost their economies. which has the best opportunity for attracting foreign capital? we will discuss next. ♪

vonnie: a look at the biggest stories in the news right now. fraud.accused of they have been under the spotlight for weeks over the escalating hike of the life-saving allergy shot. the case comes one day before mylan ceo testifies before congress.

seaworld is facing shrinking attendance at its theme parks. about 83,000 people they expect for the shopping season. will work at macy's or bloomingdale's. the retailer while people are call centers. that is your bloomberg business flash. david: brazil stocks are gaining today as the president enforces his commitment to reforms. he spoke to eric with his back to push ahead with the unpopular measures. >> it all depends to a certain extent on the way we are able to communicate, or the way we are able to properly explain the reforms and at this point in time, we see the brazilian population beginning to understand these reforms are key and essential to resume hope and

trust in the country. the seniors is executive of bloomberg news who spent years covering latin america. let me ask you about these reforms. what is on his plate exactly? >> michelle timer came to new york with this huge entourage. he brought a lot of government officials with him to make the message clear that he's here legitimately and empower legitimately and will push through these reforms as soon as the end of this year. especially given the political pushback he's seeing. david: there's still a great deal of sourness in the country about what happened.

>> it's still a very divided country. even in his own party, there is opposition to these reforms. he was vice president of the previous government, now the opposition, and they will not be nice in supporting his reforms either. there's also still the corruption probe. three of his ministers have already fallen victim to the corruption probe. that is a potential pitfall and we all know lula very well. he will be on satellite at an event in new york today, reminding everyone a witch hunt is going on in brazil. david: a lot of latin america leaders here in new york. largely informal country. a lot of small businesses that are outside the tax system, outside the credit system.

we will change that and lower their taxes so they become part of the foreign economy. this will be a credit revolution in peru that will give it a big push and i think you are going to see a lot of investment in the financial sector in peru. vonnie: he has inherited a country doing very well. it is a machine right now. >> is the fastest-growing growing economy in latin america. they face a lot of problems as well. they are dependent on commodities. a lot -- commodities prices have not been doing so well. he is trying to attract foreign investment and at a time when argentina, a bigger economy with a higher potential for investors, is also trying to convince the world it is open for business. david: i'm not note, argentina and its new president has been traveling in the u.s. and europe trying to attract that investment. is it working?

but i think you are seeing the most enthusiasm we have seen in 15 years. companies are ready to invest there. it's just a question of whether he can be convinced enough about the reforms that need to happen at a time when inflation is high and opposition to his government is strong. david: great to speak with you. still ahead, can drilling companies like transocean recover from the oil slump? we will hear about some of its problems with tankers next. this is bloomberg. ♪

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bloomberg world headquarters in new york, this is bloomberg markets. commodity markets are closing, so let's check in on some of the days egg movers.

it includes soybeans. the production estimate has been raised. from researcher oil world. soybeans up 1.7% as a result. rubber futures rally in, up 2.5%. disruptions in thailand not helping the rubber market. natural gas rising with a late-summer heat boosting usage. 1.3%, $.55 for wti, making more gains there. 12 miles up the coast of trinidad and tobago, you can find deepwater drill ships with the finest drilling equipment bobbing in the water.

crews have been gone and engines have been shut off as they wait for the market to recover. transocean is taking a huge risk because it ships like this have actually never been shut off. story here. how did transocean make the decision to shut off these ships completely? comes to they it just brought in a new ceo who brings this new, fresh thinking. one of the things he had to get his arms round was we have a lot of ships in our fleet, we have the largest fleet of offshore drilling rigs. right now, the demand is not there with oil prices being so low. we have two either scrap rigs entirely or decide we want to keep them in our fleet. if we do that, do we want to in casem ready to go other contract comes or do we want to cut costs completely? the problem is you have never turned off these most expensive

rigs, the drillship's. you have never turned them off completely, so that has forced him to make a big decision. he decided to cold stack them to get the most cost savings possible. what point do they see if it was a success or not? .uest: that's a good question as of right now, they can say it is a success because they are in the second quarter to cut costs so dramatically that they reported a small profit when analysts were expecting a loss. in that sense, things are good. they are cutting costs and reporting a profit. the question comes down the road when demand service to come back from customers and how much is it going to cost to put these rigs back to work? how much maintenance have you deferred on these things? it's like owning a boat out in the water. if you don't take care of it, there is work you have to do.

with these complicated computer systems, what is it going to take to put these back to work? that's an unknown right now. david: what about transocean's competitors? are they taking a different course? guest: most of their competitors are taking a different course. a small number have followed suit, citing what they call preservation stacking. turning off the engines entirely to save as much money as possible. among rigbig debate owners as far as what to do and so far, many of their competitors say we cannot shut the engines off. we don't have a rig to offer customers. we have to have a rig warm and ready to go. most guys are looking to hold off and have higher costs in the meantime, having the rigs warm and ready to go. vonnie: who is paying for the storage? what about people who buy etf's,

the underlying barrels of oil in those etf's. the cost to store these rigs are purely borne by transocean. what it means is they are going to need a certain price from their customers, exxon and bps of the world to bring the rigs out of mothball and put them back to work. we have heard they need a contract of about $250,000 a day to put these drill ships back to work. that is with operating costs themselves at about $150,000 a day. short of that, they can't really bring them out of mothball, so you have this wait and see time. based on geography, why have they decided to situate

ease 12 miles off the coast of trinidad and tobago? guest: it is one of the call must days of water in this western half of the world. its closest to the gulf of mexico, brazil, and other places where they might get done working. so it just has to be a nice, calm and tranquil spot. vonnie: that's a great story. it's like having the airplanes in the mojave desert. david: thank you very much. president obama about to announce a campaign blitz to elect hillary clinton. will the strategy pay off? and oracle's ceo is our guest. that is next. this is bloomberg. ♪

this is bloomberg markets. i'm vonnie quinn. david: i'm david dora. president obama is throwing himself into the 2016 race today. in his final speech to the un's general assembly, he talk about attacks on tribalists and populous. while he never mentioned donald trump by name, the subtext was hard to miss. he says those -- aides say he will focus on key battleground states stop whitebring in our senior house correspondent here. what can we expect? can he be expected to be on the trail or doing ads? maybe a couple of times a week we will be seeing him. he will be making the case that

hillary clinton cannot. it's always more impactful when somebody says good things about you. but he can do what she can do. he's a red rotation and speech ever and that is what laughed at him to prominence and that is her weak spot. we know that, especially compared to donald trump. vonnie: whose team will decide what strategy takes? will be his team or her team? clinton team has been driving this so far in the president and white house have to say thatpains this is his legacy he's trying to protect. to them going to come and talk about that and there's a couple of folks at the top of the clinton campaign, john podesta and the communications director who were high ranking officials in the obama administration. what is the importance of the un's general assembly to

these candidates must work you have two people vying to be a world leader. donald trump is meeting with leaders and so is hillary clinton. guest: we saw them both yesterday trying to get some visibility in these meetings. to show sheclinton, has these long-standing relationships during her time as secretary of state. she has the respect and ties with many of these folks. by contrast, donald trump doesn't. it's just to have the picture with the world leader to legitimize them. all of the meetings have been very controlled and the press corps would love the opportunity to shout a question at the whatian president to say do you think about donald trump's muslim and/or hillary clinton's handling of benghazi? showingwe have a poll -- should hillary clinton's lead

be larger there? guest: what she has to do and what her campaign has been trying to do is not just to register but erin t the turnout of the puerto rican communities around orlando -- but to guarantee the turnout of puerto rican communities around orlando. just putting people and the infrastructure on the ground to organize folks. donald trump toss support in florida is like what people see on tv -- it's not the campaign to get and using traditional measures. for clinton, it's about the traditional machines of democratic campaign work and trying to turn out with tried and tested operation. to turnes an opening the public speculation and media attention into something real that can translate into an important swing state. our senior white house correspondent in new york today. great to have you in the studio.

let's head to the markets desk where julie hyman has today's sector spider reports julie:. julie:we are focusing on homebuilders because we got housing data that is not fantastic. housing starts fell more than anticipated -- that is the white bar that you see. he also have building permits, an indicator of future construction falling and that was an unexpected drop. it has been uneven. that drop is concerning to folks who invest in homebuilders. if you look at the etf that tracks the housing industry, you can see it is down by three quarters of 1%. that etf, lennar is the stock falling the most in today's session. those shares are down even after lennar reported net income ahead of estimates. a couple of pieces in its report look to be disappointing. company ofhave the

8% but analysts were looking for a 9% gain. it is the one-to punch and then lennar specifically. something is happening that is a bit of a divergence. interesting to point out that one economist pointed this out today. these two indices look at new housing starts and new home sales. theory, you want to see new housing starts rise at the same pace as sales. if you see at the end of the screen. hees continue to trend up says something has to he says something has to give. it seems as though he

thinks we will see a pickup once again in the start. the south was the big area of weakness. the ceo ofng up, oracle joins us. this is bloomberg. ♪

david: this is bloomberg markets. i'm david gora. vonnie: and i'm vonnie quinn. oracle plus event is underway in san francisco. us theay, the ceo told lead is over. cory johnson is standing by with

the other ceo. : i am here with .tumpf -- with safra catz you recorded last week sales up about 8%. i suppose india is a big part of that. is a bigdia opportunity. i personally believe the potential for us is 10 times what it is now because the market is so enormous. sayad the chief minister the state alone has 110 million people in it. can you imagine? needny of them still technology and the opportunity for some a young people to adapt and pull in technology and become consumers.

it's an enormous opportunity. that focus on india -- i know you've been there personally and have put a lot of effort into it, but is there something about where oracle is now -- the focus on the cloud and where india is now? safra: that is exactly it. with cloud technologies, you can deliver much more quickly and at a much lower price. both of those things are very important in india because you can scale fast and they are on a very short timeframe. the chief minister wants to have things up and going throughout his state in three years, not 15 years like plans usually are. we can get a reading going in next year and be delivering to the citizens right away. additionally, what cloud technology allows you to do is benefit massive quantities of

scale. for india, that infrastructure in that size, the match between what they need to do to empower their citizens and the technology we bring is a perfect match. cory: i imagine the size of the businesses are different. safra: absolutely. you can handle industries from all sizes, from very small come of farmers in remote villages, all the way to some of the largest industrial companies in the world are based in india. we can cover all of it and scale it all the way to full size with the cloud. there's also a governmental digitization strategy, unlike other countries. got me started was the prime minister came here to silicon valley to talk about digital india and i saw real

vision and real ability to bring everyone forward. go and inve to february, i was there and met with prime minister and the chief minister and many other officials. what i saw was unity in intent. they very much had a vision and they were going to make it happen and they were going to make it happen fast. us and iey embraced knew oracle could make it a reality. softwarethe world of and the world of the cloud, is the database still the center of that for all of those companies? what is the database? that's where all the big data exists. all of these things all go somewhere. for oracle, the foundation, our platform is the database.

but have all the analytic tools and the infrastructure under it. all the applications, so though it is our foundation, it is not all there is an there's so many new technologies enabled to risk this type of foundation that enable your mobile phone, that enable sensors, that enable analytics and much better decisions. about kidst to talk and the things you are do with -- think you're doing with getting girls focused on technology, coding and thinking about math and things. talk about what you are doing -- here you are as a woman leading one of the guest businesses. safra: it is very important to to bring asf oracle many people into the job market and give as much capability to everyone. the issue with girls is so many

girls leave the math and the sciences. you have two daughters. you know what it's like. somewhere between middle school and high school, we start to lose them. if we lose them, it is impossible to get them back as masters in computer science. that's why it was so important to me that we build this high school on our campus and we got originally involved doing programs that were both coed and some especially for girls. girls came into these programs where they learn to do things and, at first, if you watch, we ask them questions and they say they didn't know anything. two-week course was over, they thought they were a 10 out of 10 and wanted to do more. that's the type of success we are looking for. and you are doing that on your campus? safra: yes.

we have construction equipment outside my window and by school year 2017, we will have a public high school on our campus and andkids design the school they will be graduating from the school on our campus that we paid for and the taxpayers did not have to pay a dime. i want to ask them business questions. you have a big deal you are trying to get done. is there a limit to how high you would go? offered $109. the board accepted that an every shareholder has to make his own decision but we believe that the price. cory: you are drawing the line there? safra: i draw the line. cory: i feel like there was a moment when so many of these talks were revalued and cloud

software companies were revalued after one bad quarter from linkedin. do you follow the market in terms of valuation when you are thinking about things you want to go after? safra: we look at two things -- first, is it a good thing with oracle? we are not a stock picker. is it a good fit? is it a price good for our shareholders? that's how we move forward. sometimes, there are opportunities. we bought a couple of cloud companies recently. we feel we got a good price for those and we are looking forward to closing that. one analyst criticized the acquisition saying that you are buying growth. safra: that's funny for them to say. we are growing faster than they are by a lot. year, it's at last

82% and i'm sure he would like to see that. do you feel an increasing article is asian of software solutions that will be of more interest in the future? what's important is to meet all of our customers needs and make sure these products work well together. i'm sure there will be areas in in$5.6 billion a year research and development spending did not build it. in which case, we will probably buy it. cory johnson there. you can catch more tech stories on "bloomberg west." looking at the indices as we near the close of trading for the day. the s&p 500 up a quarter percent. the nasdaq up .3%. vix is below 16

again before the bank of japan and the decisions tomorrow. a dollar index is now above 96. and just aeek this little yen strength in today's session. but we are range bound when it comes to the 10 year treasury. the spread 90 basis points. coming up, where will stocks move? this is bloomberg. ♪

david: i'm devendra. vonnie: i'm vonnie quinn. welcome to bloomberg markets.

we are live from bloomberg world headquarters in new york. we're covering stories add of brazil, washington, paris and tokyo. the countdown to the federal reserve and bank of japan decision is on and markets are in a wait and see mode. with stocks hovering around high valuations, where are the opportunities? we will tell you why health care maybe undervalued. and the new brazilian president is barring red tape as he tries to lead brazil's economy out of the worst recession in a century. less than an hour from the close of trading. let's go to julie hyman who has the latest. it isai