defraud banks to get loans. gates testified today, manafort kept his name off foreign accounts he used to receive payments for consulting work in the ukraine. any gates is at fault for wrongdoing that occurred at the global political consulting firm. president trump passes national security via -- advisor says removing sanctions against iran are meant to pressure the government into a broad retreat for its support for international terrorism, military activity in the middle missile andllistic nuclear weapons programs. john bolton was asked if he has concerns that countries like china and india and russia might employ a strategy to make u.s. sanctions less effective. >> no. actually, we're working with -- to reduce oil imports from iran to zero. we are making progress on that. we think the sanctions are

biting already and will continue to bite. mark: in the meantime, iran's foreign minister tweeted, it is not the first time a war monger claims he is waging war for world peace. at the u.s. treasury force minute menstruation the dea, says the percentage of that coin transactions involving illegal activity has fallen. about 90%rent from five years ago to about 10% today. an analysis of blockchain data shows that speculation has become the dominant driver of bitcoin use. but the cyber task force says the total transaction volume with unlawful uses of cryptocurrency has surged since 2013. three more cases of the deadly ebola virus have been confirmed in congo's latest outbreak here the world health organization said today the latest -- latest section the northeast

of the congo is unrelated to last month's outbreak in the northwest region. the who says vaccinations could begin as early as tomorrow. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ >> live from bloomberg's world headquarters in new york, i'm taylor riggs. scarlet: i am scarlet fu. >> i'm in for joe weisenthal. >> 30 minute's from the u.s.. >> the question is what did you miss? >> shares of tesla, stock halted after elon musk tweeted he is considering tweet -- taking the , plus, a final

decision has not yet been made. trouble remains over turkish assets. their president remains silent as they plummet to record lows. and, merger on the mind for disney investors, the media company set to report currently -- quarterly earnings after the bell. watching for any details of its acquisition of 21st century fox assets. what did you miss? --n musk trolling tesco tesla short centers, teasing the possibility of taking the company private at 400 12 -- $420 per share. he said funding secured. this comes after a report from the new york times at the sovereign fund has a massive stake worth as much as $2.9 billion. that report sent shares soaring before they were halted about one hour and a half ago. with more insight now is the equity research analyst for u.s. and european autos at jefferies who joins us now by phone from london. i just wanted to take you through the blog posts tesla

posted moments ago in which elon musk says he announced he was taking tesla private at a price wanted to share and let everyone know why this is the path forward. the key sentence is a final decision has not yet inmate. he goes on to talk about why this would be best for tesla because being privately held would help the company make long-term decisions and not be at the scrutiny and tech and call of these results. given that a final decision has not been made and elon musk tweeted the fact that he is considering taking the company private, is this a way of pushing up the stock or do you think this is for real? >> i would think if there is a written statement from him, there is something real behind it. funding has been secured. he has got to have at least 37 billion available credit to potentially die out --

post, thereog actually is no mention of financing at all. though he tweeted that funding has been secured, it is not anywhere in the blog post that would allow people to see how this has been financed. there are a lot of questions. >> absolutely. we can all agree with what he said in the past, that tesla should not be private. how you go about this would you know, remove stocks from the screw into of the market. maybe profitable near-term, but resources and cash, funding the growth for the business, it would make a lot of sense to be private -- at this stage, we can only take whatever has been said so far with a grain of salt because it is not part of an official announcement. >> i want you to know that the nasdaq has said tesla will resume trading in about 10 of 3:40 5 p.m.

eastern here in new york city, so we will await that. i want to talk a little about devaluation. you are a fundamentals analyst. -- we spoke with an analyst who said his price target of 450 make sense. in a blog post, elon musk says it is only a 20% premium to our share price following the second quarter earnings call. how do you get two for 20 per share? is that evaluation for the model? >> we have a target price of $250, so we do not have the same view. we could see tesla becoming more profitable, but we struggle to see how they could actually fund growth. we do not know exactly what the underlying commands are, and we do not see how the cash flow right now is in a position to

fund growth, and then it goes along. it suggests you need more capital to fund growth. stops bet for 20 target price in his comments. actually justify tesla even looking for any sort of a premium in a buyout? is it is considering all of the issues you just laid out and i'm also curious about the medication strategy that musk continues to take, where he seems to circumvent some more standard ways of communication the shareholders. >> yes. we should be ready by now, to see thisnow, from elon musk. the question of course is, at what point does a regulator look at the outside of the normal bounds of reality. but i think we should not be

surprised at his comments at this stage because we have heard so many of them. we have heard him complain many .imes >> to go back to what remained had mentioned as well, do you think tesla deserves a premium? 420 is a long way from the current 347 and away from your price target of 250. >> for us, we will go through a phase of between two and five or tesla will need a much judgment more capital. musk refuses to raise equity, understand that he does not want to raise capital in this situation, but at the same time, we look to the growth as being insufficient to fund the business. he is in a situation where he needs capital to aspire to that premium valuation. we think tesla will probably be for a number of years, a low-margin and low return on

investment capital. what keeps the valuation a high level is the expectation of growth. right now, the problem is one, we do not necessarily see in the trading,evelopment, we do not think tesla has the capability of funding growth implied in the valuation. that is the whole story for us doesn't support the 400 plus the 400 plus share price. >> when you talk about that, what immediately comes to mind to me is free cash flow. massive negative free cash flow. $3.5 billion. i know he had talked about trying to turn that around by the end of the year, but it is a lot of volatility. i think some analysts and maybe some investors even wondered, should they be a public company, perhapse volatility, maybe from some of his tweets, are they better off as a private company?

>> i think right now, it looks like in the next few quarters, it becomes a viable company because they generate sufficient cash to pay the bill. what they do not have is good cash flow generation we think to fund the growth that supports the multiple p is the situation at this stage. either they remain public and raise a lot of capital, which musk does not want to do, or they find a way of going private in which case, they could do that without the eyes of the and withoutem having to suffer potentially high volatility as they go through funding growth. >> i want to remind everyone we have about five minutes to go before tesla shares resume trading, halted about an hour and a half ago after elon musk tweeted he is considering taking the company private. i wonder what needs to happen before a final decision could be made on whether tesla could be taken private? meet all ofpany

elon musk's's goals such as becoming profitable in the second half in terms of getting profitable, in order -- in order for the deal to even be possible? think at this stage, we need to see that the funding is in place for a bid for the company. we can be reasonably confident that the larger number of shareholders will be half to continue to invest in tesla and if they can remove them from tesh remove themselves directly's, some liquidity, but they will also get rid of some volatility. what we do not know is the floats,-- kind of free a price which -- in which case, we need to see how much funding is really available. investments to reach a high also releasing, two years down the road.

i shoul -- >> short-term expectation, going tompany, even the buyout, he's does has quite a few stakeholders to answer to. will that really be a different type of pressure? will definitely be behind closed doors pressure, i would think some of the institutional investors who potentially agreed to go into a private equity to have a will need timeframe and potentially some form of dividends to keep them sustained in what could take five years or more. the pressure will be away from public markets, but i didn't think it will be diminished in any way. >> on want to read something elon musk wrote in his blog. we can just put into perspective

everything that has happened so far. there was an initial tweet in which he said he would take the company private, funding and maybe 40 minutes afterwards, the companies come out with posts on the blog. elon musk said i'm trying to get asoutcome where it is free asthma debt free of as much distressed thinking as possible where there is -- for all investors including employees. about two minutes to go before tesla shares resume trading. ask one moreo time. we talked about it funding was available. he tweeted the funding was secured. i want to know if we could tie in the announcement about saudi arabia making it a building or two or 3 billion investment in tesla as well. is that the funding that i'm conflating together?

>> i am start. i could not hear you. >> let me repeat my question for you. there was a news report from the financial times that saudi arabia made a big investment, they made a big investment in tesla as well. i am wondering if as part of the funding or if i'm turning those two together and they should not the? >> it could be. we do not have information to back it up but it could be that the announcement could be part of the funding to take the company private. we have seen a lot of large sovereign funds make a lot of whichment in companies, does not mean that it will necessarily be successful but certainly, it is a strong price. for the share >> let's bring in harrison, who covers autos and deals for us

here at bloomberg. thank you for joining us. you have monitored all the headlines as well and looking different developments. we are of course about 10 seconds away from tesla shares resuming trading in new york. this is fairly unusual to we have never seen anything like this. >> it is one way to describe it, yes. from the way the news was delivered over twitter to dealver type of private elon musk is proposing, and it is still unclear that we how one thing that, is unusual is you have a company that is still in growth company and still valued on what it will taking privatee, as opposed to a company that is already past the growth spurt. amazing reaction. >> yes. there is a flat line in the stock is moving higher and higher almost 10% coming back down a little bit. but this is building on gains

from trading. >> yes. we know that stock sort of trade to a certain extent on speculation rather than fundamentals. it seems that so much of price in the paste stocks year or so has been almost all speculation. essentially a squishy outlook, what do you make of that? >> what you have seen throughout the trading day, it has been a little abbreviated by a sort of initial reaction of, is he kidding? you put a price out right away. the number 420 is funny to people so he thought he was a joke right away. the letters out in the blog post, you know, some of this reaction is people going, ok, maybe he is serious. i guess he is serious. still a hefty discount because there is a lot to go in the story. >> it is so interesting. you talk about how it is all

about value and the company based on future expectations of start to when do we see those? when do earnings, and you see some growth prospects start to play out? >> it depends on where you value and the outlook that you want to tie the company to but generally speaking, this company talked about the end of this year being cash flow positive. you're not valuing based on this year's number but if you see trajectory go right way, that is how even out -- where you value the company. >> taking a look at shares now, we are soaring 12%. trading as much a 13.3%. remember, you a musk taking it private at 4:20 per share.

420 per share. ,, you and european autos have a price target -- changell this, to you your rating or your price target? >> we are an institution where there is potentially a company where the price can have --damentals, >> what would it take for you to change your rating, not anymore details, getting more every once in a while for elon musk. thinki said before, i tesla becoming profitable, is visible near-term.

to understand the level of the lower-priced car and the companies they want to provide, a lot of uncertainty around the demand. they growth, of course know how tesla today, we think is not able to lay the foundation for capital requirements for growth. without raising capital, it will not able to take the company to a high-level growth given the underlying profitability of the existing business. >> we talked about changing analyst estimates but how do you

even model this going forward? what are we comparing tesla to a this point? you cannot compare to four or gm, or pick your tech company. this is in a class of its own? >> that has been the big challenge. more, aou model it disruptive company or do you -- it is sort of a debate -- and of course like phil says, the capital needs of the company. >> we monitoring tesla shares, looking at the trade, the stock is up 12% now. looking at the bloomberg here at the volume analysis, you can see that before the tweets and before the report, tesla shares were trading below the average

share volume. then a report that the saudi arabia saudi wealth fund a taken a hit. then you have the elon musk tweet. that is where volume sort -- spiked. once is the pop in volume the exchanges had let the stock go again. >> we had talked a lot about equity markets are i am a bond girl and will switch to bonds. there with me. ago,w that a few months they were not sure if they could even raise debt. he does not want to raise equity to dilute his stake. i am looking at a bond in my terminal and doing it in real time so bear with me. looks like it is $.92 on the dollar. does this sort of help them be able to raise more money from the debt markets if they need to? any of this, changing the outlook for financing scenario? >> in addition to potentially

the fundinghares, for the transaction, they provide equity so that they reassure the equity bondholders. logically one of the attractions for this being private is they could run a more leveraged structure. i think you would need to reassureome today to bondholders to refinance bonds. i can see why the spreads are closing on the bonds. market >>hing on the the executive editor of global what as we look back at has been a very interesting afternoon for elon musk and tesla, it is very

unconventional, considering taking company private. exchanges are letting the stock trade after being halted 70 nymex later. the blog post coming out indicating no decision ever gets made. case for why tesla ,eing a privately held company is there any, if you look at different stories we could be chasing on the bloomberg news side, how much are we looking into the extent that perhaps there is trouble with the way he andunicated to investors exchanges about what he's thinking? this is not conventional, the route of tweeting something and then posting a blog post, saying this is final and i put a price tag out there. about the way elon musk cleaning case with various constituencies is what i would consider to be traditional. he is a very unconventional kind

of person. an unconventional punch in or. he is trying to do outlandish things. populate mars. do some very unusual things are a lot of people say they can't be done. conventional communication is not his forte. we have historical precedent for ceos and other executives using nontraditional means to communicate,to reed hastings from netflix, elon musk, it is hard to say exactly whether or not the fcc will come down hard on him for this. he deftly frustrates a lot of people but look at what the share price is doing. it is going in a direction one would expect it to go. he did communicate this to everyone at the same time. meets the basic criteria for conventional communication. this is not a selective

disclosure if you will. it is unconventional but not selective as far as i can tell. who is being heard here. -- hurt here? these are sophisticated investors and they know the risk they take on when they take on elon musk. he said he's considering it, not that it is a done deal. i know a lot of reporters elsewhere, secured financing. what does that mean? who lined up to do this? this report that came out a couple of minutes suspiciously right before he sent his tweet, is that emboldening him? we know there are tens of millions of dollars looking for interesting places to be invested, is some of the money going to end up going to tesla?

do the investors have the patience it will take in order to fund this investment long-term? >> can you give us insight about spacex? we talked about potential running tesla's's private company. do we know about the success he has had financially runnings they sex this way? ofwe do not have a lot insight into tesla -- spacex's numbers. but what we have is the result we see out. the company is successfully making strides in terms of reproducing rockets and winning contracts, in terms of their constituencies and would she customers that there is something viable about what they are doing, it is a well-managed company. colleagues recently profiled signswho by all

outwardly, is running the company very well. i was one of the people who interviewed elon musk several years ago, where way back then, he was talking about some regrets he had about taking tesla public, comparing it to the way he was able to run spacex. , employees, the way they scrutinize, the way they are publicly traded. he talked by running tesla this way. >> david, thank you for joining us. you cover the autos.

it seems to go back in court. >> how surprised were you, you heard tom from san francisco saying if you have been following tesla, this wasn't surprising. he talked about wanting to take this private. are you in the camp as well? >> yes. this is in a traditional tech startup. this is a company, and automotive startup. they really haven't had a real one of these that was credible since world war ii. a lot of tech startups, they may have set -- product -- upgrades over six months or 12 months, they started making money much sooner. elon musk just does not want the kind of scrutiny that shareholders will give him when he has been trying to put out cars for 10 years.

during that time, currently going back to the street. doesn't like it being questioned, by his own testimony, a manager i interviewed years ago from business week. he said tough question here, people say you are a micromanager and he said that is not true, i am a nano manager. he is really hands on. the guy runs through different companies right now. with his boring company with spacex and with tesla. he does not want a lot of questions and he will get that p are what burns him is he has a vision here to put panels on up a wall oncharge your garage that will keep your car powered with energy from the sun, and there are a bunch of investors who are gambling on tesla's's failure, who want him to fail. that just drives them over the edge. i think if he could get away from that and get away from the scrutiny of even the long shareholders, he would ask the

-- absolutely love it. the question is can he get the money to do that? closing you have the bell of stocks getting ready to close in about 10 seconds. the dow up about 125 points and the nasdaq gaining four points thank ourwant to roundtable. joining us from stafford sisco harrison here in new jefferies joining us by phone from london. thank you, gentlemen for so much. they keep her keeping us on task here as we look at tesla. shares are front and center as we look at what happened. telsa'ss shares -- shares closed up about 11% to $379. that is short of the 400 $20 price elon musk had put out there on twitter. analysts are almost divided.

buy and cap ourselves. i loved the question earlier you had about whether this is the tech company or an auto company. if you are an analyst with a spreadsheet, you have to throw it out. scarlet: let's get you to our market minutes where we have gains across the board for the major u.s. stock indexes. volume is very interesting here because it is higher than average on the nasdaq up 28%. you can thank tesla for a lot of that. a-shares got a big pop in trading activity following the , but for theport day, it is a generic gain on the three major indexes. >> when we add -- and we had other stocks moving up as well.

tesla stole the show a little bit toward the end of the day. take a look at this. back to an all-time high. this is an amazing turnaround story. the shares have quadrupled over the past year since they have wanted a new ceo. kind of have zillow, the reverse of this. they are making a shift into house flipping for some reason. is up about 18% today, but it is really basically more than doubling in the past few months. a lot of optimism coming back under the stock under posting a couple of really big earnings quarters. we want to show the 3, 10, and 30 year yield. we had a $34 billion auction today at 1 p.m. theratio is well below average of 288.

dealers get stuck with 45% of that. the three year yield rose three basis points. it is better than my check yesterday. the 10 year, we are up for basis point as well. becauseo flip to turkey , before retarded talking about tesla -- before we started talking about tesla, take a look at the tenure yield for the turkey bond. it is up to almost 7.5%. that is interesting. may whenement in july, you had record lira weakness. it looks like that is continuing again. of course i will follow-up on what you said and take a look at the turkish lira. gains for the lira, if you just the recoveryday, is barely making a dent

following yesterday's 4.6% plunged to a new record low. so far this year, the turkish valueas lost 20% of its -- 28% of its value. chinese currency is on this list as well. it lost about 5% of its value. this is very painful for turkish companies that borrowed in foreign currencies. every 10% drop in the lira could erode bank capital levels by 50 basis points. we're going to talk more about turkey later on with brown brothers harriman. an is rising. we also had data showing china's reserves rose more than expected in july. we had gains in energy and metals as well.

saudi arabia production cuts are continuing to feed concerns. $70 per breakout above metric ton. we'll continue to keep an eye on that. that does it for your market minutes. we are watching tesla and what happened there. the calm has returned -- forget the calm, disney reported earnings. disney third-quarter adjusted eps of $1.87. the consensus among analysts that we surveyed was $1.94. that is higher than what it was a year ago, but coming in like a than expected. revenue is $15.23 billion. lighter than expected and analysts were looking for $15.36 billion. topline,ttom line and disney third-quarter numbers missing the consensus estimates. taylor, you are going through numbers, did i miss anything?

>> those are it. third-quarter revenue is $15.23 million versus estimates $15.36 million. adjusters earnings-per-share is coming a little slower as well. i like the topline because it is less hard to manage. the topline revenue numbers look good here. we're seeing more things, out. a big they were expecting sale business because disney has completed the acquisition of talks -- fox assets. i know the domestic box office was expected to grow 60%. 68% was in this quarter -- in this quarter. i do use your revenue to offset the costs from espn and at some of the other things eating into the profits? >> some of the cable network revenue, it is a little light.

that has been a weak spot for them. you look at their parks revenue and this was the bright spot for a while. that looks a little soft as well. they had new attractions opening, they were expecting a lot of visitors. boosts giving another big . scarlet: i'm glad you bring up cable network revenue because that was part of the business that houses espn. we will see how this shakes up. right now you're looking at a thumbs down reaction from investors, at first blush at least. ,> we got a quote from bob iger from walt disney company, talking about the merger. wellys "having earned means of support of shareholders, we are more enthusiastic about the acquisition than ever. we are confident in our ability to fully leverage the assets

along with our own incredible brand, franchises, and businesses to drive significant value across the entire country. -- country." i'm sure we will get more on him on the call in just a few minutes. that is at least what we heard from bob iger so far. let's bring in our bloomberg intelligence media analyst. disney does not tend to be a big poster earnings mover. we are looking at a drop in extended trading in reaction to the top and bottom line. what a look at the numbers coming out, which one are you focused on? is a cable networks? is it parks and resorts where a lot of the growth -- that is where we are seeing a lot of the growth and prospects for the company? >> i think romain was right. the big focus is going to be on the cable network business. this is the segment that spooked investors a lot to her three years ago. they are seeing a constant hyper ofutiny on the sub number

espn. i'm wondering what exactly they'd said in terms of subscriber numbers. the overall topline number seems light. there will be focus their. in terms of parks, there will be -- there were new attractions coming late in the quarter, so i'm assuming that the not have a big impact as far as the topline is concerned. they also had unfavorable timing from the ship of the easter holiday and refurbishment's, and things like that. scarlet: scarlet: i'm reading through the release -- scarlet: reading through the release. disney points out there was an increase at espn because of affiliate revenue growth very costing was offset by a drop in advertising revenue. that was partially offset by decline in subscribers. a lot of offset and partially.

not hedging but explaining through the different moving parts. romaine: i didn't notice anything in the release offhand with disney flicks. do we know the time table for them to get this up and running and have a viable competitor? suggested it will come out sometime in 2019. probably the second half of the year. that is when they are pulling off of their content -- pulling all of their content off of they are beefing up their content library. they have best in class ip and ,hey are making it undisputedly absolutely the best they can offer their to consumers -- th ere to their consumers. firstt: snap reported its ever sequential daily active user decline.

the growth declined and it's a less quarter as well. as for the actual financials, second-quarter adjusted loss per share of 14% -- $.14 was narrower than estimated. revenue does beat analyst estimates. the daily active users, the number so critical here is 188 million. analysts were looking for 193 million which is down 2% from the first quarter. >> we joked about kylie jenner in the last hour, but the ceo says the decline was privately driven by the slightly lower theirncy of use among user base due to the disruption caused by that redesign. the redesign of the app, that is according to the ceo evan siegel. they say what we feel we heard. we're talking about the redesign their really caused some users to be frustrated there.

-- redesign there really caused some users to be frustrated there. we are up about 6%. that could be it. i'm also looking at the outlook for the third quarter. snap sees third-quarter revenue up to $299. million.ate is $289.9 wonder if average revenue per user increases. they did also peel back the redesign and put it back where it used to be. that seemed to draw a lot of people back to it or lots more eyeballs. >> as we go down, the income

statement and loss was lower than estimates. millionnly getting 169 versus the estimated loss of 208 million. you see that reflected in the share up more than 10%. scarlet: let's turn back to disney. do -- githa, what will you be looking to hear from tiger? -- bob iger? >> what is happening with the cable networks. we've seen fairly positive numbers come out. we want to see with disney has to say and any early data points from the streaming service which was espn plus. it happened in early april. information any

surrounding the sky acquisition, a few hours ago, fox formalized in their bid for sky. they did not revise it. comcast,ll lower than but it is looking for guidance there. i'm not sure bob iger will address that. romaine: can you talk to us about theme parks and how they are doing, and whether or not they will be rushing into some of these issues with regards to some of the slowing economic issues worldwide? geetha: i don't think so. quarter after quarter, at least over the past few years, we have seen good momentum in themes part -- the parks. they have been adding -- theme parks. they have been adding new attractions. the avenue -- the avatar one did really well. they added toy story in june and fixed are based attractions -- and pixar-based attractions.

they had really good numbers come out of shanghai. we saw healthy demand as the european park resorts -- demand for the european park resorts. they have been able to counter any economic recession well. scarlet: i remember let couple of years ago with the big question on every earnings call was who was going to secede bob iger. who could he hand the baton off faded out.s he is staying put for another couple of years. are we any close to getting an answer on that? is that a potential drag on the share price and the company's prospects? geetha: i think so. disney had the greatest succession plan in place, and it has continued to be a pain point ever sense.

we have seen his contract extended until 2019 at least read we will have to see how this whole fox deals plays out -- deal plays out. it will then resurface the major issue and major concern for investors to see who drives the commodity forward. geetha. you, scarlet, you have breaking news from papa john's. scarlet: reporting second-quarter eps of $.36 a share. second quarter revenue is missing the lowest estimate as well. 408 million was the reported number. forconsensus estimate was 424.5 million. eps is $.36 a share as we mentioned. comparable sales for the quarter are down a tenths of 1%. that was an unexpected drop because analysts were looking -- 8/10 of 1%.

that was down an unexpected drop because of analysts looking for other numbers. they're slightly worse than anticipated. the big question with papa john's is, john schneider, and what happens with management. tothey have been fighting stop him from getting controlling interest. i've a quote from the new ceo. he says earlier this year we began implementing key changes in how we operate in market -- and market our products to focus on quality and better connecting with customers. this is the new president and ceo papa john's. while results have been challenged by recent events, we are committed to the strategic priorities they say. been blamingtly the nfl for declining sales. it has been a tough road. romaine: the sales were

declining long before that of happening -- that was happening. and it is not is happening. you look at all of these fast pizza target companies, they have been struggling. scarlet: papa john's is down 4% in after-hours trading. live from new york, this is bloomberg. ♪

mark: i'm mark crumpton with first word news. trump's preferred congressional candidate and his chief legislative achievements are about to be tested in ohio in the season's final high-stakes special election. none of the states had a bigger race then kansas.

for the second year in a row, california is battling the largest wildfire in history. the twin fire system north of san francisco has burned 75 homes and more than 440 square miles of forest lands. it is the largest of nearly 20 big fires burning in the state. they're so big they are visible from space. the blaze has been burning for larger thanis 50% the size of new york city. hurricaneafter katrina, power has been restored for nearly all of the island's residents. puerto rico's electric provider tweeted service has been for all but 25 of its 1.4 million customers. into thes two months start of the atlantic hurricane season. kenya and tanzania marked the 20th anniversary of the al qaeda bombings of u.s. embassies in

nairobi and another country that killed 224 people and injured more than 5000. one u.s. investor was among those attending a ceremony at nairobi's memorial park. >> today on the 20th anniversary, [indiscernible] , that clearly and loudly although we have suffered, we're not beaten. defeat never let those us. mark: the bombings brought al qaeda to the attention of the american public and the world for years before the 9/11 attacks. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. scarlet: let's give you a recap

of some of the earnings we got in after-hours trade. disney shares are falling 2.2%. their profit and sales numbers both top and bottom line fell short of analyst estimates. the studio had to write off projects as well. cello was not as big of a hit as o was not as big of a hit as they thought. romaine: and you wonder what they are going to do going forward. if one of the franchises go south, that tanks the quarter. scarlet: and snap shares up 11% after they reported their first ever sequential daily active user decline. we saw a drop in user growth compared to the first quarter. in the first quarter, there was a drop compared to the fourth quarter. the revenue topped projections as demand increased for the mobile ads. he also heard from the ceo saying most of the tweaks around

the user interface people were so frustrated by has been fixed. the princelearned has put $250 million in a 3% stake. you potentially the saudi arabia wealth fund intends love. romaine: romaine: they have been busy -- romaine: they have been busy. 9%,nd papa john's is off by greater than 9%. and the missed the lowest analysts estimate. they are in management turmoil. >> the board and new ceo are in a fight. they are looking to rewrite the culture there now and fix the sales slowdown that you cannot just blame on the nfl. scarlet: let's get more with a snapshot on snap, get it?

sara, we paid a lot of attention to this user decline over at snap, but clearly, that is not bothering investors right now. the immediate reaction is not move higher in the stock but possible a pop in the stock. sarah: revenue has far exceeded expectations and, beyond that, snap says in the third quarter it will give guidance that revenue will be within the expected range. this is the first time investors are getting any sort of future look at what snap expects for itself. ans is been -- has been extremely volatile country -- company. for them to come out and give some broader picture about what they are looking at, that signifies to wall street that despite the sequential decline in use, they still have an idea of where they are headed.

we've talked a lot about the redesign and user base. we know the ceo of one company talked about that it was an important evolution of the product and they fix some problems people were frustrated about. anything else we got on the user face and if that helped drive the mobile advertisement? sarah: it certainly did not help. he blames the redesign for the decline in daily active users. he is sticking to it though. he still believes that is the best thing for the future of the company. the increase in revenue is more due to increased demand for snap's mobile advertising. areight indicate they seeing advertisers who want an alternative to the facebook and google of the world. this is a moment where snap and perhaps take advantage of facebook weakness. providebe show they can

return investment for advertisers looking to reach the market that they dominate, which is a lot of younger users especially in the u.s. and canada. romaine: i know tim stone has only been on the job for a few weeks, but how much of an impact can he had to get the company to the next level? sarah: if you look at the earnings release, it is a whole lot more amazon-y. they give bullet points on the quarter, give guidance, and for the first time, they are talking whichmonthly active users is a metric that we have seen a lot from facebook and twitter. snap has never disclosed, and they say it is not important to them. this time they say they are not disclosing it, but a say they are -- say it is growing. company ise for the still growing is a message despite the problem. scarlet: sarah frier, thank you

so much. line,eating on the top and that is why the stock is popping. ♪

mark: i'm mark crumpton with first word news. some africans for temporary employment visas are being asked if americans can do the job they are applying for. immigration attorneys say the question has been posed at various u.s. consulates following president trump's higher american order. a new line of questioning has brought more scrutiny to the , but is not necessarily translated in higher denial rates. the wall street journal reports federal prosecutors in york are examining whether michael cohen committed tax fraud. people familiar say authorities are assessing whether: underreported income on federal tax returns -- whether cohen

underreported income on federal tax returns and obtained bank loans without proper documentation. the philippine your president today threatened to kill corrupt police officers in his country. expletiveent's address was directed at more than 100 policemen who are facing administrative and criminal complaints. he said a special unit would monitor any officers involved in drugs or corruption for the rest of their lives. the former treasury secretary says a trade war with china is a bad idea. he said i would bloomberg. >> this is a trade war that will make ironically -- make america poorer. our producers are going to be less competitive and paying more for inputs. mark: he's on the advisory board

of the bloomberg economy forum being held in beijing. and the topicsm that will be part of the discussion can now be found at bloomberg.com/new -economy-forum. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. scarlet: let's get a recap of the earnings after the close. disney, profit and sales are falling short of analyst estimates. the studio had to write off projects as well. summer box office performance, nonetheless, all of it soured investors a bit on the stock. you do have earnings from the conference call and everyone is desperate to hear details on what happened with fox and sky. romaine: that you have snap

here. he missed on the daily active users, but for the first time, they put out the monthly active users. they're also making more money off of the users. this is the first time they have given a forward guidance for revenue. we are already seeing an impact with the new cfo. atwe are also taking a look papa john's who are extending the decline in after-hours trading off 10%. this shows the company was struggling to sell because even before the controversy broke out with its outspoken founder. even before july they had trouble. we have north american sales off 6.1%. most analysts had expected 5.1% decline. revenue also came in lower than analyst estimates. all of that still continues. scarlet: stock plunging in after-hours trade. "what'd you miss?" shares of tesla closing 11% higher, but it was a hardly --

it was hardly a straight line up. elon musk is considering taking the company private to ease the pressure. let's keep the chart up for a second. what you will see is a very unusual horizontal line. that was when the stock was suspended from trading for about one hour and a half. timehappened during the when the stock was halted from trading? normal thing is you stop trading in you announce news. you let investors announce it -- digested. elon musk tweeted, they stop trading, and a statement came out an hour and change after it happened. then they resumed trading. my something is he wrote the statement in that amount of time. clearly this was something he was talking -- we still do not know who the investors are.

it feels like this is something that came together very quickly. you even wonder about the choice of 420. some people thought it was a joke. >> over the last two hours, we have been speaking with a lot of analysts. one said for 20 seems fair. the jefferies analyst was in a 250 range. he said we do not know how to get to 420 so we are back and forth all over. max: what is crazy about this, aside that this would be an enormous leveraged buyout is a slow -- as a throwaway comment on put there, is that company -- tesla has needed to raise money. public markets are good if you have a business that needs a lot of cash. a car company that wants to build factories in china, compact suvs, you normally think being public would be good for

that. musk hasher hand, elon a number of wealthy friends, so maybe he thinks he can swing this on his own. romaine: the public market is good for that. the trade-off is there has to be accountability. max: absolutely. romaine: what oic so many people being an apologist to him being a visionary. there are plenty of visionary ceos of public companies. max: it is interesting. tesla is super bowl arising. as you said in the reaction to to other and reaction things, this is a way to see the work of a madman, or you can see it as work of a mad genius. the stock is up since he made the announcement. who do you think is elon musk important -- most important constituency? he has its shareholders,

bondholders, board of directors, --y of the members are whom many of whom are members of his family and friends. believe it is the s&p 500, but the shareholder base looks like a lot of big companies. these banksthink are going to be looking at this closely. employees is an interesting constituency. one advantage of a public -- being a public company is easier to recruit. -- it is easier to recruit. a lot are not psyched about this because you have to ask permission before selling a stock. right now they can sell their stock on the open market. he is going to have to raise a ton of money.

people ate with google, apple, and you can imagine softbank. maybe one of these big tech investors putting up a lot of money. about profits and losses as well. oni was reading on twitter spacex where he but the man on the moon driving it has love. he said it is hard to bet against a guy who is literally putting things up in space. that aside, with the funding question, iva chartier which is the triple c plus 2025 bond. we're back up to $.93 on the dollar. he would not be able to raise money. now those concerns fallen about being able to raise money? max: no. talking with skeptics, the concerned about debt and the

capital market are still there. production wise, things look marginally better than they did three weeks ago, but the same analysis of tesla applies. this is a bet on the future. either you believe it or not. if you believe this is a company that will swallow the entire or you canindustry, believe it will beat -- it will be beaten by other car companies. scarlet: in this time -- in this era, you are either a believer or not. max, thank you. with the headline here saying the trump administration will 25% tariffs one $16 billion worth of chinese goods. it is delivering on its threat it has made before as it looks to reduce the u.s. trade deficit with china. the tariffs were due to kick in

-- a could've kicked in wednesday, but it needed the administration go ahead and he gave the go-ahead 60's after it needed to. contains 279 of the original tariff line. we can probably expect to see china retaliate. from new york, this is bloomberg. ♪

scarlet: "what'd you miss?" as demand in the u.s. housing market dampens, you'd expect dependent companies might take ahead. that is not the case with the next business. it is up more than 100% this year. and it recently split its stock in june. jim, thank you for speaking with

us. there is concern that the u.s. housing market is rolling over and you can measure it a number of ways. one way we have been looking at is the gauge of home price expectations falling to a two-year low. what is the link, if any with housing and people's willingness to upgrade your spend on their dax? jim: the big link is consumer confidence. consumer toward confidence and selling -- treks is more toward consumer confidence and selling. scarlet: you're also have a lot of homeowners and blue states seeing they can no longer deduct their mortgage taxes where they could before. how does that play in confidence and willingness to spend on their homes where they cannot get the duction they once could? jim: the deduction is one thing.

if they are making a bet on the tax returns, on what they are seeing in their paycheck, a lot of people with lower incomes are seeing benefits in their paychecks. that dries more confidence and that is where we are seeing more >> talk to me about earnings. you have 11 straight quarters of revenue gains. six tres quarters looking at it on an earnings per share basis. what is driving that? consumer confidence? is a brushing away some of the housing concerns? had you measure that? jim: it is a multitude of that. it is brand loyalty and taking share from what. we're focused on gaining share from what. we have been up 13% compounded. earnings have also gone up 25%. we're focused on delivering for shareholders good return on investment and also on customers

to make sure we are servicing the market. romaine: what about awareness of the brand from a consumer's perspective? when you became ceo, i look at the stock and earnings and revenue. it is pretty clear the correlation. what did you do over the last couple of years that drove this to where it is today? jim: beginning in 2015, the followedsteps we indicated would was ripe for movement to take share from it. we focused a large portion of the advertising campaign on different varieties of what to encourage people to move from what 2-wood alternative products. it has been effective. scarlet: we have seen lumber prices move quite a bit speaking of what. a lot of volatility and prices. and's the three-year chart it soared through 2016 and 2017. the tumbled by about two thirds since the peak. how does that show up and what your competitors are able to do

and offer? is that a headwind for you now or was it through 2016 and 2017 and is now -- was it a tailwind sorry, getting confused. jim: it certainly was a benefit. .e are seeing higher prices for example in the pac northwest, pressure-treated lumber is a southeast product. out west it is cedar and what would -- and redwood. winning at the kitchen table. >> i wanted to talk about your cost control. andhe residential commercial side, your margins are expanding. is that part of your strategy with taking the certain type of what that happens to be higher-quality and cheaper at any given moment? jim: we started a process in

2010 where we changed the product offering and introduced a second generation of product. able to useare different recycled materials then we could before. that has given us a competitive advantage is all of the other manufacturers. scarlet: and you also sale railing as well, it is not just dax -- decks. i wonder about the threats on chinese imports and what the tariffs have meant for you. is able to plan for that or it causing unexpected headwind? jim: we saw headwinds just like other people. we have modified what we are doing with regard to alumina purchases and found ways to avoid most of that impact. momentarily, yes. over the quarter we saw adverse impact, but our cost savings initiatives have offset that. , thankklein, --jim cline

you for joining us. we are moving overseas to turkey. drove speculation over extreme steps at a possible bailout by the imf. are the rumors being met by radio silence? we will get that next. this is bloomberg. ♪

scarlet: "what'd you miss?" a crisis in turkey is stoking speculation over extreme steps and a possible bailout from the imf. the turkish 10 year yield jumped to a tenure high. the lira declined to record lows. it rebounded on a fit that turkish officials are heading to the u.s. to discuss the ongoing tensions between the two nato allies.

the possibility of sanctions remains a looming threat for turkish.- from the we are joined by the global head .f strategy let's start with the most basic. the currency is in freefall and it stable to little bit. what is more concerning to the central bank of turkey? the level at which it is at or the speed of decline? >> the speed. it is starting to go exponential. the issue is that, what can they do about it? the central bank has been compromised read we know that everyone has been on this for erduon.years -- he installed his son-in-law to head up economics. there is a real nervousness about -- nervousness and

credibility problem with policymakers. needs to things turkey do to stabilize sentiment and we are not near that. romaine: what i've heard is analysts and strategists want to have a couple of things, imf intervention along with others. possibility of an imf bailout? win: they would not agree to the first two things. imf has conditionality. they dispersed month -- dispersed money in -- disperse money in waves. erduonne of today -- the

of today is different than the previous one. >> you talked a little bit about the central banks and i want to direct the viewers and listeners into the bloomberg care. as inflation continues to go higher, the central bank is in catch mode. we talked about the effect on the lira. at which youvel would feel comfortable buying the lira? do you feel there is a floor anytime soon or do you think this is a little too difficult to touch right now? win: i would say stay away. [laughter] if you are a hedge fund, it is easy to short the lira because you can have the central bank come in and do some measure that would cause a big drop in the dollar turkey. you have to be careful of the volatility.

when you look at argentina, i was on here a few months and it was a most the same thing -- months ago and it was the same thing. argentina hiked rates to 40% and entered an imf program. that is textbook. the peso has stabilized and from the little bit. when push comes to shove, i've seen some em crisis is best crises -- crises. we're doing this, going big, and let's see what the chips fall. >> they took the medicine, swallowed it, and dealt. win: we see unorthodox policies coming.

scarlet: what about the businesses that have foreign loans in different currencies? win: that is the other issue. many emerging markets have issued to take advantage of the low rates. that's good when the currency is stable. all of a sudden, your currency is 50% less worth and that means your debt servicing costs double. >> will have to get you back on to get into china. that was win thin from brown brothers harriman. this is bloomberg. ♪

scarlet: "what'd you miss?" disney earnings cause underway and abigail doolittle has been listening. what are the highlights? >> taylor -- take a look at the future of the shales -- shares of disney. at the lows, they're down 2% and up 4/10 of 1% or 3/10 of 1%. they had to deal with the fact that the myths seems to be driven largely by unreleased movies and writing those off. enthusiasticis

about the fox acquisition. the dtc business is leveraging fox for everything they will be able to do. in addition, it looks as though there was some weakness for domestic parks. perhaps investors are looking past that's a little bit. shares of disney are up 6/10 of 1%. at this percent, they just started to hop back onto the call to see what is most positive at this point any shares around. scarlet: abigail, watching disney headlines and listening in. that does it for way miss -- four does it for "what'd you miss?" -- that does it for "what'd you miss?" this is bloomberg. ♪ ♪ two, down and back up.

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emily: i am emily chang in san francisco. this is "bloomberg technology." tesla shares surged after a surprise tweet from elon musk saying he is considering taking the company private. why he wants to take them off the public market. back to life and we talk to the ceo about his turnaround strategy. and more staffing intrigued at uber. the man who cofounded auto trucking with the