before the 2008 financial crisis. are sayinglawmakers his past inaction makes him a poor choice. facing criticism at his senate confirmation hearing today, he said with the benefit of hindsight, we could have been more aggressive. secretary of state rex tillerson looking to freeze, working at the national security council. this comes after a month-long feud with the white house that undercut his way on foreign policy. tillerson will allow as many as 33 state department employees at a time to work at the white house office for a minimum of one year. a british judge has ordered that critically ill infant charlie gard should be moved from a hospital to a hospice where he will inevitably die. tillersonthe order was made afta deadline passed when charlie's parents on the hospital agreed to an end of life care plan. the judgment that meant charlie,

who has a rare genetic disease, shall now be transferred to a hospice and taken off life support. live at the white house at this hour, president trump and vice president pence are honoring the capitol police at the alexandria, virginia police were involved in the terrible incident on june 14 when congressional members practicing for a softball game where shot at in alexandria. one of the most critically republican louisiana scalise who was released from the hospital yesterday. the president's remarks praised the bravery of those who helped bring down the gunman. powered by more than 2700 journalists and analysts in over 120 countries, i'm mark crumpton, this is bloomberg. ♪ scalise who was released from the hospital yesterday.

from new york. joe: we are 30 minutes from the close of trading in the u.s.. julia: u.s. stocks sliding as volatility fights. joe: what'd you miss? scarlet: house speaker paul ryan talks about imports and talks about moving forward on tax reform. nevertheless, get ready for a marathon of amendment votes on health care. what does the skinny obamacare repeal look like? the world's richest person or not? jeff bezos has investors on edge after earnings. is the company poised to take over the consumer economy? let's dive into the battle over tax reform. republican leaders conceded the border adjusted tax does not have support to continue

negotiations to overhaul the tax code. members of the big six, including steve mnuchin, economic council director gary cohen, mitch mcconnell, senate finance chairman orrin hatch, house speaker paul ryan and aside they are to set back tax in order to advance the tax reform efforts. our bloomberg national political reporter on capitol hill. the problem with abandoning this is how they raised revenues and they want to cut taxes. they saw the line in the statements that they want a lot to be permanent. how are they going to do it? >> they don't know yet. after months and months of them kicking around this border adjustment tax which has been pushed primarily by speaker ryan as a way to create a system where u.s. companies do not have to incentivize the move overseas -- they have had an enormous

onck of support capitol hill that they would not put it in the tax bill. what they will do remains a question. the result clarity on what the alternative would be or if the bill would be revenue neutral or permanent. they say they want to do that, it is a priority for them, but how they get there is less clear. joe: let's talk about the imminent legislation, legislating that is going on. if i'm understanding things correctly right now in the e building up to vote for a skinny repeal and the condition upon may 20 senators will vote yes is that it never becomes law. can you explain that? saihil: that is correct. it sounds like a very bizarre statement but it is true. many senators are willing to support this skinny repeal bill. it is not out yet. some mandates on

employers to cover their employees with specific kinds of insurance and repeal of the medical device tax. a number of republican senators say they will support this bill as a vehicle to get a conference in the house. that want this to become law. some want assurances that it will not become law before they can vote for it. it is a strange sequence of events, but senators want to move forward. they don't want to be blamed, they don't want this to be their last when the so-called obamacare repeal effort dies. they see this as perhaps the only vehicle to that. sahil joining us from capitol hill. julia: another thing strange -- nothing is strange. joe: every possibility, every road. what if anything is the impact of health care reform, tax reform on the economy?

chief economist at morgan stanley is here to answer that. the question is how do you factor in something like tax reform into your forecast if you don't know what it is going to look at morgan stanley is here to answer that. like? >> the answer matters greatly for where the economy goes, where monetary policy goes. if the u.s. remains a leader in the global economy, it is huge. i can tell you we know the effects we saw already on just the so-called survey data with the hopes and relations after election on what congress may deliver. now the way i would look at it as an economist is luckily markets have adjusted to the election on what congress reality that market predicting is difficult and we may not get what we wanted in terms of magnitude as early as we wanted. what i would like to see now is the economy is standing up on its own, the global economy is standing up on its own and bootstrapping u.s. activity, to invest inreality that market prg

activity and that is coming from fundamental growth in the economy and not just from smoke and mirrors of what congress may deliver. joe: what is the economic differences if congress passes a tax reform, making the taxes the more efficient and smarter, versus just a tax cut? ellen: in terms of economic theory, tax reform has a sense of permanency. if i am a business and just get a tax cut, but i know it could expire some years from now. that might not change my behavior today because my investment horizon may be beyond .hat tax cut for u.s. households, we talk about the permanent income theory that if it is permanent income, meaning a permanent tax affect thecan behavior over the longer run. i would argue a little bit with that is that it will react to more money in their pockets and affect the tend to be more ignorant -- in a

kind way -- of tax cut may not last forever. joe: is this same principle of uncertainty have an effect on decision-making of july 2 households wondering what their health insurance status will be like over the next year or two? exactly.d to be more if we had charts of the day, i would buy income group. in february, when we saw this all over the media, you are going to lose your health care. we saw consumer confidence numbers come out and the lowest income groups tanked by 15 points. it was incredible. we saw it bounce back as soon as the health care vote came and went and it turned out you still have your health care. it makes a big difference. just an undercurrent of worry. if you are worrying about future expenses and finances, it dictates how you spend today. julia: the confidence survey as

well, it is more abstract indicated it is more politically driven with ties with policy outlook. i think it is the worst that has been in two years in terms of the drops. at what point does it become a problem for the fed? ellen: for the fed, they are orking on at what point, hit the hard economy, the reeling data? if you look at all the underlying macro indicators, nothing is really changed for the household sector. the money in my pocket i get from my paycheck is the same. i might feel good or bad from day to day depending on what congress is doing and what might be delivered or not delivered. at the end of the day, my paycheck is the same and my wealth is rising. i'm not just talking about financial aspects. i'm talking about housing equity

which has just popped into positive territory for the first time in the quarter of this year. that is starting to take over the driving the middle income groups confidence where before it was solely election outcome driving the confidence of the middle income groups. alsoet: what could up help is better data. we are getting second-grader -- second-quarter gdp on the 28thth. . does that pave the way for faster growth in the second half? ellen: let's get something in the range of 2.63. biggest an annual revisions that can make that different. it will make that first half growth look a little better than 2% and i think that is great. that means the economy has not afteramaged anyway by the election because congress has not moved on tax reform. it shows we are doing just fine. i think that is setting expectations. peopleickly, you can see

making over 75, blue line. people notons with people not making $75,000. it is how they move together generally -- it is interesting gap.g that ellen: it is interesting if you were to take the highest income groups, it matches nearly one-for-one with the s&p gap. 500. you take the lowest income groups and maps a little closer with wage growth, because that is what matters more for those households. scarlet: that has not been a pretty chart. ellen, chief economist for morgan stanley, we will tal keep you around. from new york, this is bloomberg. ♪

scarlet: morgan stanley chief economist ellen is still with us to break down what to expect from the jacksonville congress -- conference. this is 60.19. it looks at the security, balance sheet of the big three central banks. that is in blue. the yield average, the 10 year yield average, and how that moves in relation to the balance sheet. will be whatn mark they say with regard to easing off on some of the stimulus. on whether tapering is tightening. are central banks coordinated? ellen: i like to think of it as not coordination. coordination is what happens in times of emergency, but correlation and conversation. a lot of rhyming words there. a lot of conversation that goes

on and we get a lot of conversation. i would love to see that global theme come out of jackson hull because we have a good deal of developed economies, global central banks planning to pull back on a combination, in concert because the economies are finally starting to cycle together in concert. what does that mean? that is a sea change in global liquidity possibly coming and i don't know if investors are comfortable yet on what they could expect. when the fed is reducing its great. sheet, what happens when the ecb johnson, the boj? what happens? i think that is wide for discussion. scarlet: it is not there yet for ecb and the boj, but it is conversations. ellen: exactly. that is what markets will react to. they are thinking more seriously, wait a minute,

economists have been begging their fists on the table about better global growth and we are seeing a sick -- a cyclical upturn in investment. they were supposed to bear the roots of all of that policy stimulus. that is coming through, therefore central banks can pull back. if that pickup in global growth is durable, maybe i should be listening to that as an investor, maybe global central banks are going to start coming back on liquidities. julia: even if it was not coordinated, it is synchronized accidentally by a broader recovery. if investors are looking at this wea glass half empty way, are afraid of what the retraction a stimulus means rather than the glass is half-full which is things are improving and we need to recognize that -- what is it that convinces them it will be ok? just seeing it work through. ellen: having it happen and waking up the next morning to see if it is ok. i think investors, at the same

time, that they should recognize that there is a change in the cycle, where liquidity is going to be coming out of the system. at the same time, you cannot be complacent and assume central banks know what they are doing and that we are known to know what will happen. it is not like this is not totally talked about all the time. is there a gap between what you see happening and what markets perhaps are seeing happening? ellen: i think markets do care -- we have seen markets react on announcements or hints from central banks but then we had draghi come out with more resident talk after it sounded more certain they would move on the balance sheet in the third quarter. that was enough uncertainty built into the markets. i think we did see markets react when the fed gave a more definitive, relatively soon signal in their statement yesterday.

interestingly about yesterday, there was a certain percentage of investors that thought they might make a balance sheet announcement in yesterday's statement. on net, it didn't look like there was a big market reaction. it is interesting. i think we are getting -- globally, central banks have lost a lot of credibility in the wake of the financial crisis, so i think what they say is not necessarily what the markets are assuming they will do until they do it. scarlet: ellen zentner, thank you for sharing your thoughts. julia: time for bloomberg business flash. ups delivered a strong second quarter thanks to higher prices and fees. the company reported revenue for packages sent in the u.s. at 2%. closingany said retailers means less deliveries between businesses. 350 benchmark for $

trillion of products will be phased out by the end of 2021. british regulators and banks are trying to replace it with a more reliable system. it became about spyware from corruption after some were caught trying to manipulate it. that is your business bloomberg flash. there we go. scarlet: that's go on to the final part of the trade. it is amazon. it has been a pretty volatile day for shares of amazon. it has been as up as 2.9% this morning. briefly making jeff bezos the more -- the world's richest person but then it has lost its way. what are investors looking for in the upcoming earnings report? here is abigail doolittle. it is a pretty ugly day.sal on the people would say that is a bearish omen of what would come. expectations are definitely high. day. people would say that isinvesto% growth on the bottom line.

the stock is up 40% year to date. it is a question of too far, too fast. focusing on the contributions from the cloud versus the retail. i did speak because to a bloomberg intelligence analysts earlier and he said if there was going to be a mix, it margins.youh cloud take a look at 7740, we are all used to amazon missing on margins to spend and invest but the cloud margin could compete with google and microsoft. this is a five-year chart. blue we have gross margins. when gross margins trended down, the stock followed thereafter. the last consolidated date was 2016, a 30% drop. so if they miss somehow on margins, it could be a pain for the stock would otherwise, who knows? maybe it is bearish volatility ahead of a high profile report. scarlet: thank you so much.

we will look at those margins from amazon web services. coming up, taking a look at other companies reporting after the bell, starbucks included. from new york, this is bloomberg. ♪

scarlet: dunkin' brands out with its latest earnings reports. it came in softer than analysts anticipated. here with more is nigel travis to discuss the results as well as his outlook on the political environment and what kind of in-store.nge our he joins us from boston. joe: in-store. he joins us from boston. joe: thank you very much for joining us. many of these restaurant companies or companies in your area, really some of them feeling the pinch of rising wages. the very important macro for the fed. what is your perspective on what is going on with the tightness of the labor market and how that is feeding futa wages? -- feed through to wages?

nigel: two years ago, i may have agreed. finding people. big franchises are concerned with not finding the people they need. in the northeast, we have unemployment down to about 3%. new hampshire is below 3%. that shows a very prosperous economy and a tight labor market. so much ofnk it is these days the rising wages, it is the inability to find people. one of our most prominent franchisees said to two massachusetts senators, he can only find 60% of the people he needs. joe: what is the uncertainty of a health care reform legislation mean for your organization? nigel: firstly, we would love to have certainty. it has not been a big issue. variousbeen talking to

administrations over the past few years about health care. the thing we want to do get rid of the bureaucracy and reporting which is the biggest issue. it is not really an economic issue. we would also like to see a change in the definition of part-time workers, from 30 hours to 40 hours. this has been something i have been campaigning on in washington and talking continually about for about five years now. i'm hoping it is something that will get changed. julia: can i ask your views on the administration's attempt to have tax reform here? what we learned today is they want to enact tax cuts, but they seem to have abandoned the border adjustment tax which was a way to finance them. what are your views and what do you think is optimal? nigel: i think what is optimal is obviously -- we have two interests in tax reform. one is corporate and one is our franchisee.

our businesses is what happens with our franchisees, that is what i'm really focused on. that is why i would like to see corporate tax reform for the business, for the organizations, for their companies. i would also like maintenance for the ability to deduct the cost of, capital immediately, because one of the things that franchisees do is they grow by building new stores. they would like to have, as they have now, instant depreciation. they like to see a reduction in the corporate tax rate which i think is coming out of washington two weeks ago, i believe there will be movement on that. you have to balance it as well. time, taking away something that has been very helpful for our franchisees to develop. it is really about small business. from that point of view, we want to maintain the interests. time, taking away something that has been very scarlet: nigel travis, joining us from boston. thank you. the market push is next and we

have the dow at a record high right now, up 55 points. the s&p and nasdaq giving some way. nasdaq losing three quarters of 1% before earnings. this is bloomberg. ♪

-- what'du miss tha

ya miss? rising slightly, and of session. >> i am joe weisenthal. we want touning in, welcome you to our closing bell coverage. awaiting a slew of earnings from amazon, intel, and elsewhere. the dow closing up a record high, but the nasdaq losing two thirds of a percent. the nasdaq rising early but giving up those gains by the end of the afternoon session. joe: that masks what was that one point a much deeper selloff

in the nasdaq which helped at some context going into those earnings. bought the dip and that worked out. interesting to note the huge gap between the dow and the nasdaq's real rotation. people buying into the finance and energy. julia: we have amazon results. $0.40.looking at quarter, in the second $38 billion. analysts were looking for $37.2 billion. it looks like a beat. 39.2 $.5s of outlook billion -- $39.25 billion. just under $40 billion. eps, we have a print of $.40.

analysts looking for a gap average of $1.42. are keeping an eye on amazon web services. >> they announce second-quarter sales as well, up 25%, just to issure that the estimate 37.1%. do we have the eps? >> we do. $4.1n web service sales of billion. for the quarter. this makes up 10% of revenue. joe: it is important to bear in mind that amazon has seen earnings very widely. they often get guidance that is wide. investors have become accustomed to the idea that jeff bezos does not try to maximize margins. you can have these huge swings.

thans a little bit higher the estimates of $39.9 billion currently. us now is theng director of research for bloomberg intelligence and scott galloway. paul, as we try to figure out the correct eps, it might not be so surprising that amazon misses on the bottom line, given that it is all about revenue and growth. what sticks out for you? >> the stock is trading down i nthe after hours, but the revenue did come in slightly higher. it has been up 40% year to date. the story here continues to be the top line growth story. it looks like the company delivered again. when you think about the profitability of the company, it

is not about the e-commerce business. jeff is us demonstrating that he will make whatever investments that he needs to make to drive the top line. services has been a profitable business for them. that has some very strong operating margins. earnings headline comes in short of expectations. wildly.d to fluctuate investors have been trained to look at what jeff bezos wants them to look at. >> whenever there is a strange print on the earnings, investors pile in and try to look at that as an opportunity. story isterm lish online retail sales and amazon is the dominant player. scarlet: amazon spending a lot of time highlighting prime day.

scott, talk about what we know about crime and time membership. amazon does not tell us how many members there are in the u.s. versus internationally. >> more households have prime then go to church, voted in the election, or have a landline phone. if the trends continue, more people will have amazon prime in their home than cable television. amazon has a commercial relationship with the wealthiest households in the world and it is growing faster than any other relationship will stop there taken this horrible business where we have to wake up january 1 and re-create our business and turn it into a software current revenue relationship in the form of rhyme with a can spread everything out and cling streaming and use that relationship that is unrivaled.

they don't release renewal rates. in software if you're over 80% you are doing well. i bet amazon prime is in the 90's. scarlet: amazon video receiving 16 emmy nominations. this is something the company is spending a lot of capital on. netflix,lywood, after amazon has one of the biggest checkbooks in hollywood. they are not afraid to get a list talent. the economics of a prime membership over the lifetime of a user is extraordinary for netflix, said they will do whatever it takes to fatten up prime membership roles, including making multimillion dollar bets on content. julia: on the earnings call we will will have questions about what they expect to achieve. i am and amazon prime customer

and i got an imo about free delivery about what i would like. what do you expect to see from amazon? >> investors will say that $15 billion is a big number but for jeff bezos, it is not a big number. i think they felt that they had to change the model a little bit. they needed to get close to the customer, so they needed to buy bricks and mortar. the retail is trying to figure out their distribution. >> we have talked to you a couple of times about these numbers. there is one company that investors are not very worried about amazon and that is netflix, whose stock is searching despite being in direct competition.

>> netflix is amazonian in terms of their ability to attract more users. and nbcon are what abc are spending. amazon is spending four and a half billion dollars on content. $2 billion when they heard amazon's footsteps behind them. netflix is not showing up saying next year we will be number three in the world of e-commerce whereas amazon wakes up and goes, that is an interesting field that might create intensity across prime relationships. within 24 months, we will be the number three player. company, evenen a in adjacent categories. whole foods is about to become the fastest-growing off-line retailer. it's the largest market in the

world called grocery. i'm sure a lot of people shop at whole foods and would more if it were less expensive. it is about to become a mercedes for the price of toyota. on e-commerce and willie dominant on brick-and-mortar grocery. i'm looking at the latest numbers here. reporting, andr was a net sales are up 42% year over year and it looks like the revenue growth has been slowing down. in the first quarter, revenue .ose 46 points -- 46% deceleration of amazon's most profitable unit. >> this is a large business growing very quickly. it is a competitive business.

microsoft is in the marketplace with a compelling product. google is on the cloud business. this is a business that is competitive and is subject to severe price cutting. a lot of these companies are going for share. long-term, it is a real estate game. they are trying to get as much real estate as they can because this is a long-term secular story. >> absolutely. i am looking for a reason to doubt. important, but 42%, are we going to do other earnings? >> we will get it installed. the director of north american visas, professor of marketing at nyu. we have intel results coming out

, $14.8 billion. analysts anticipated $14.4 billion. the stock is gaining by more than 4%. eps coming in at 55%. softer.nue is a touch they are saying they're going to cut 3000 jobs. the estimate there is 4.8%. a bit of disappointment on that. it has to do with china, sales, and america's weakness. -- we willo close talk through more of these items are the earnings very shortly. from new york, this is

bloomberg.

mark: it is time for first word news. presidentrning for trump. the best -- nebraska senator telling the president not to try to push out attorney general jeff sessions or special counsel robert mueller. >> i've come to the floor to keep my promise and to offer a word of humble advice for the president. if you are thinking of making a recess appointment to push out the return in general, forget about it. the presidency is not able and bull, and this country is not a china shop. mark: earlier lindsey graham said if sessions were fired,

there would be "holy hell to pay." a source says there are too many unknowns associated with this policy. which started a 20% levy on domestic sales and imported goods has been a center cut of the tax plan endorsed by speaker paul ryan. they rushed to play for the first time in two weeks following his removal on security advices. -- following an 11-date muslim prayer boycott. the arab foreign ministers met today at the arab league headquarters in cairo egypt. news 24 hours a day

powered by more than 2700 journalists and analysts in over 120 countries. >> let's dig deeper into starbucks earnings. we're a touch weaker on the revenue front here. the estimate is 4.8%. it's a touch softer. to bring in jennifer barter who covers starbucks. i had trouble with your name scott. what do you make of this. we were expecting a bit of concern about what is going on. we have a bit of a weakness here . >> numbers came in ok. what is important about this is

the have been able to overcome the operational issues they were experiencing in some of their u.s. stores. >> when we were talking before about amazon you are pointing out the depth of brands. we went from greeting greek yogurt to icelandic beer. how does starbucks avoid that and it leading all of their customers to the blue bottles at all the other coffee shops that are more trendy. >> traditional advertising is effectively becoming a tax that only the poor or technologically illiterate have to pay. or advertising or marketing is still very important to the store level. as evidenced by probably the most valuable app in history. starbucks is the original

gangster. they said we are not going to advertise, we will pour all of our money into this point of branding called a store. it continues to be some of the most incredible branding in the world. i would be interested to know if any of your analysts had any data on their mobile app which is the most successful mobile app in history. app, their mobile transactions are at a higher level than almost any other qs are type player in the industry. what is impressive is that 30% of their transactions are paid for over their mobile app. it indicates how they are resonating with people and being an on the go transitory type of brand. >> we also see the third-quarter sales disappointed on weakness in china and the americas. i found this interesting given that starbucks made its biggest deal ever.

necessarily not hitting china on all cylinders. >> this is the perfect earnings release. 4% year on year and we are getting rid of 3300 people. that seems like the perfect release for the earnings race. there one of the few western brands that has in the sugar high of growth in china continue. brands got anrn initial bump and now they are struggling as local players move in. realizes continues to its aspirations unabated. >> is about knocking out the competition and broadening the brand. this is a huge one for starbucks if they can mail it. >> these are the bigs in the basket long-term for starbucks.

one of the reasons they brought it in-house is that it is a technology incubator for them. overs like social gifting we chat is revolutionary. why they have been able to stay ahead of local competitors. if they can bring those earnings back to europe that makes the brand globally much stronger. nyu's earning school of business, professor scott galloway. the original gangster. >> we will be speaking with the ups cfo on their earnings and how global trade alice's are affecting their business. this is bloomberg. ♪

scarlet: what'd ya miss? some retailers breathing a big sigh of relief. fromon has been cut ongoing investigations -- negotiations. joining us for more is matthew shay will stop taking a bit of a victory lap. this is something that they had been pushing for. my question is what will they push for specifically in the tax overhaul? >> none of us can to take a victory lap until we get tax or form done for the american people and our economy. we engaged in a thorough and deliberative process. the ways andy and means committee were open to our perspective on this. we ended up with a

statement that we would not impose new taxes on consumers it reflects the strong commitment from the house leadership and the administration to deliver on your commitment to do middle-class tax relief. it tries the economy forward and creates jobs. we will take a victory left with everyone else and we will not do that until we take fashion to get tax reform for the american people. >> it is clear what you don't want, but what do you want from the perspective specific to retailers? >> the way to look at this from the perspective of a retailer is at the corporate tax rate is 35%. virtually all retailers pay the maximum rate. all of the other taxes you can stack on top of that. up close to 40% and there isn't really anything we would like to keep. we would like to see things simplified, the base broadened.

there will be other things that would be good to make the u.s. more competitive. to repatriate offshore earnings. those things are good for the economy broadly and will be good for the industry as well. >> it was a financing issue to raise financing and other ways to a lot -- to allow tax cuts. who would you like to bear the burden? you make is that that tax reform is about choices and it is a difficult challenging thing to do. about the factde that we have not had meaningful tax reform in this country for 31 years. outdated and needs to be completely rethought. we need something that is competitive. something that will make it competitive is a lower rate. it will make it a more attractive destination for the

investment of capital, business formation and growth. it will be lots of winners in the should not be many losers. we are trying to find a way forward where everyone will benefit. the things they have talked about in terms of core principles is really going to drive a lot of growth for the economy. if you grow the economy you can solve a lot of other problems that does not add more burden on .ther sectors of the economy julia: this speculation that it may be woven in under a different name -- what is the risk of that? or is it dead and buried? >> think if you read the joint statement put out by the administration and senate and house leadership, they said clearly that they have looked at the border adjustment tax and that while there are some

progrowth perspective if completed the complexity will make its of the take off the table and they made an affirmative statement about consumption tax more broadly and they made it clear they will not pursue a consumption tax. perspective itl is highly regressive and if you think about the people that went to the polls and elected president trump the people that put the folks into the white house a lot of those people would be hurt by anything that is regressive and eight consumption tax can be highly regressive. there are a lot of reasons not to pursue that. those are not things we need to talk about. we talk about how we go forward together. >> will have to interrupt you because we are going to+++

these days families want to be connected 24/7. that's why at comcast we're continuing to make our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service.

it all adds up to our most reliable network ever. one that keeps you connected to what matters most. mark: during weekly press conferences today, both house leaders of the democratic and republican sides touched on the ongoing senate choice to rewrite u.s. health care legislation. the american people are in mortal danger is the senate continues on trumpcare. a it skinny,ake but it is huge in terms of the cost increases and coverage losses. reserven: i'm going to

judgment until i see what they actually produce. it is anybody's guess what they come out with. we will reserve judgment until we see what the senate actually produces. >> gop leaders remain confident they can push a bill through. police say there are reasonable grounds to suspect local authorities of corporate manslaughter in the tower fire according to the associated press. at least 80 people died in the high-rise blaze last month. authorities say that they informed the regions of chelsea and kensington. the investigation could last until november. president trump presented the medal of valor to five of the first responders endured in that shooting on a congressional a small practice that critically wounded congressman steve scalise. alexandria, virginia police

officers and two u.s. capitol police officers received a standing ovation when they entered the east room of the white house. dayal news 24 hours per powered by more than 2700 journalists and analysts in over 120 countries. >> let's get you a recap of the big earnings after the closing bell. you can see amazon shares are down by better than 2%, profit missing analyst estimates. sales topped estimates and the sales outlook did not beat the consensus estimate. disappointment from amazon. >> we can see intel up over 2%. nicely ahead of estimates. the revenue line is ahead of

14.41 -- $4.4 billion of data center revenue. is liking what it is seeing from intel. >> starbucks at 0.8%. comparablemiss on store sales. bang in line in terms of the adjusted estimates. pfoou look at what the is spfo said, itthe was the accommodation of retail -- three -- 3300 job cuts. >> a quick mention on amazon that i declined to add. on baidu,ping an eye the chinese internet search engine. expedia earnings are out.

this stock is up 3.7%, coming a little bit shy of estimates. the range of estimates was very large. total of q2 growing 29%. this is another stock that has done phenomenally well. beneath the radar of these number two tech stocks, there are companies doing extremely well, expedia being one of them. >> at one point the stock was suspended and it has resumed trading in blowout second-quarter numbers. the estimate there is four cents. they have been a host of upgrades to their forecast.

the earnings-per-share and operating cash flow guidance. investors are really liking what a are seeing. they have gone from $.25 to $.75, to two dollars, to $2.50. >> this is a company's whose stock has moved drastically as a result. first solar had moved by at least 8% following the earnings report. that 15% gain. >> volatility is the name of the gain. nicolas maduro's government is hoping in -- the sunday vote for a new constituent assembly will pave the way for a rewrite of the constitution. the united states government announced it was sanctioning 13 government officials as a response. the u.s.ied before senate about the crimes in

venezuela last week and he joins us now. i want to ask you about these sanctions. do anything asto far as president maduro's behavior is concerned question mark >> there is international pressure we can apply. we are in favor of these sanctions and we should keep the door open for sanctions that could be more general are can affect the regime anymore serious way. we should start with these individual sanctions and take a look at the collaborative effects of foreign sanctions applied to the country. it is a starting point and i think we should go farther after the national constituent assembly is established. >> mr. attorney general are you talking about sanctions on the oil sector in the country?

there are those who believe if that happened and the united states did embargo oil, it would hurt the people and the economy more than it would pressure the government. >> the government is not spending anything on the people. what it is doing is selling national resources up along to the people to hurt and attack the people. if you see what they have been doing in the last three months it is just buying more equipment in order to make the repression harder. they are doing investment in that secure -- sector of security. the money is not going to the people at all. everybody should have studied the collaborative effects. >> speaking on national tv, this

evening, president maduro called on the opposition to engage in dialogue ahead of this vote. what should people pay attention to in terms of now and the end of sunday? >> a call for dialogue is not facing the we are operations that have cured 100 people in the streets. the proposal should have more intent. in his general elections to free the political prisoners, to establish the different branches of the government and to establish an emergency plan in order to fix the critical humanitarian situation in the country. held an- opposition

unofficial referendum. what happens if the government gets less than the 7 million votes that the opposition achieved? that make president maduro think again and perhaps reflect and think again and change his views on what he was intending to do? not an consultation was official consultation. it was something established in the constitution. is something within the power of the national assembly. against thevoted constitution of the -- to stop the national assembly. the voting on sunday is another farce of the government if you see the conditions on which the population will be carried in

order to vote. the pressure of the government using the national assistance of the people who have less in order to curry people to vote. all of that is trying to force the numbers of the vote. consultation that was made is obligatory. the people have said but also the government and their position. >> you represent the organization of american states. what more needs to be done collectively to put pressure on the government? >> they have not been silent about the venezuelan case. solution to declare order and venice when the this past april and we should increase our pressure after the

international constituent assembly is established. we should work harder, we cannot give impunity to this government. they are violating the constitution, they have political prisoners and are killing people in the streets. we cannot let them go and we cannot let them be impugn. >> thank you for joining us today. the --up, we spoke to for his take on the price of noble group of the company .laims has no value this is bloomberg. ♪

julia: the noble group crisis is escalating. the hong kong-based company's shares slumped 45% in singapore after a quarterly loss of $1.8 billion. i spoke with the muddy waters capital chief investment officer about noble group. i asked if there is any value left in noble after their restructuring plans were announced. guest: probably not, but to be fair, i have not tried to model out the cash flow or do liquidity analysis on this company. previously was that a more sober look at the various offtake agreement and contracts they have would yield a book value below zero. i think we are getting toward truing up, but i don't know that

they will ever true it up to that level. it might not even be relevant. at the end of the day, liquidity will determine for how long this country survives. julia: they have $1.5 billion of debt coming to you over the next year until may of 2018. do you see this as a systemic issue? somebody owns the loans, somebody owns the bonds. it is quite likely to be the singaporean banks. do you see the potential for greater systemic fallout? guest: i would be surprised if this presented a systemic risk. happened and was bailed out, that was a situation in which the markets were not prepared for a large asian commodity trader to hit the wall

and run out of liquidity. i think the olan situation is different from noble which has had a glide slope down to where it is now. i expect that banks and counterparties are well prepared and can absorb losses. julia: do you think that bankruptcy will be the end game? guest: if i had to pick an outcome, yes. i think that noble files -- i don't know if it files in the next two weeks, or it could take longer. it is difficult from the outside to figure out how much value is in the company. it does not seem to be able to generate cash. piece of biggest the puzzle is how long the banks keep rolling loans. that is something to ask them.

when did you close your short on this bond? 2015. we close it in that was the year we went from only managing internal capital to outside capital. out our we had to close entire book as we started a new book for the fund management firm. julia: that was my conversation with carson block of muddy waters earlier today. scarlet: it is time for the bloomberg business flash. earnings season is in full wing with several big names reporting after the bell. amazon, second-quarter eps missed estimates. they also projected a potential loss. expedia's adjusted eps missed targets, but revenues were higher. easily beatmates

estimates. -- earnings easily beat estimates. the digital software maker electronics arts -- the first quarter scoring by more than 12%. second-quarter eps and net sales beat estimates. mattel and starbucks are both lower. mattel adjusted third-quarter share came in larger than expected, and starbucks third-quarter sales grew, but were disappointing due to -- china. julia: next we had to london's bond street, where we look at rolls-royce's eighth generation phantom. don't miss our interview with the ceo, next. this is bloomberg. ♪ [applause] [laughter]

julia: rolls royce just unveiled the phantom 8. the latest version and a sentry-long line of luxury vehicles. av 12 engine to it's all aluminium and deeply customizable options. it is the most technologically advanced and most silent motorcar in the world. i am excited to say that we have the rolls-royce ceo here. he joins us with the new phantom on bond street. great to have you on. you likened this to a magic carpet ride. demented because that is part of the system. tell us more. guest: hello, first of all. a magic carpet ride is what rolls-royce is famous for. we have set ourselves some ambitious targets when it came to engineering, designing, and

defining the phantom 8 generation. the magic carpet ride was a fundamental element of that. you will be surprised when you ride in the car. this steps up the phantom to a new level. i call it flight on land. joe: it sounds amazing, but how many of these do you think you can sell in 2017? start 2017, we will production for the phantom by the end of the year. probably the first customer deliveries will happen in the beginning of 2018. a little time to wait. scarlet: it will be worth the wait for those rolls-royce phantom fans. i want to get your take on the most technologically advanced features in the car.

what is a tech person going to see that will impress them? when a look inside the car at the dashboard, does it look like a computer? guest: the dashboard is something unique. for the first time, i would say, unseen and unheard engineering. we put the whole -- board behind glass, and we collect the gallery -- the whole dashboard behind glass, and we call it the gallery. many of our customers are collectors of art. they always asked us, is any chance when it comes to these phantoms, to integrate my art pieces. that is what we have done. that is unseen before, and is one of the masterpieces we have created in our home base clean thesefor manufacturing

lovely galleries of art. we collect the gallery. julia: how many piggy banks do i have to raid to finance one of these purchases? how much does it cost? would be inn, you probably when you start with $500,000, then it depends on what you commission after, and what kind of content you ask to put into your piece of art. a fair start is $500,000. joe: i feel like it is a thing where if you have to ask, you are not getting one. one of the big things in all automotive is the market for autonomous vehicles. every car company in the world has to figure it out. how does rolls-royce think about the trend, and does rolls-royce want cars driven by a human? guest: first of all, all of our

clients have access to a chauffeur. very important. ,henever they want to go driving not themselves, but being driven, they have a human being doing that for them, but long-term, midterm, autonomous driving is something we are considering when the technology is at a level that is appropriate for us. you might remember that we have launched last year, also in the united states, our vision car, which captured autonomous drive in its most perfect form. for that reason, long term, it is a choice. it is not something that customers are urging us to implement in our automobile. julia: thank you for joining us. the rolls-royce ceo, looking very "james bond" like.

something tells me that will be a great party tonight. guest: it will. definitely. see you soon. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg.

scarlet: japanese inflation did it out: 30 p.m. et. julia: and barclays earnings out tomorrow. joe: i will be watching revisions for the q2 gdp out of the u.s.. have a great evening. this is bloomberg. ♪ whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices from over 200 booking sites... ...to find you the lowest price...

...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. washington, and you are watching "bloomberg technology." let's start with a check of your "first word news." vice president mike pence says the senate should, quote, "step up to do the right thing and repeal and replace obamacare."

republicans are said to be pushing the so-called "skinny repeal" that would undo a few affordable care act provisions. the border adjustment tax has been cut from ongoing negotiations to overhaul the u.s. tax code. a group of lawmakers said today there are too many unknowns associated with the policy. attacks would have imposed for 20% levy on domestic sales of imported goods -- the tax would a 20% levy on domestic sales of imported goods. defense secretary james mattis has not received policy direction from the white house. the chair of the joint chiefs of staff says they will continue to treat personnel with respect. hillary clinton has unveiled the title of her new book, "what happened." it hits the shelves september 12. she says, for the first time, she is letting her guard down