company that there is still bank accounts. he withheld financial 10 or 11 million undocumented immigrants. information as he tried to borrow three and a half million scarlet: so there's plenty of dollars against a property in market share to be gained here. downtown manhattan his family rob urban, this is straight out was offering for rent through of oranges the new black. [laughter] this comes up commonly. airbnb. he is accused of unlawfully securing $20 million in loans. postedate judiciary has one money manager comes back document it's from brett around after a weak performance. kavanaugh's time working under president george w. bush. we hear from their ceo next. the panel says they expect to this is bloomberg. ♪ toduce 125,000 pages related his stint in the white house counsel's office. president bush's team determined the documents do not contain information covered by presidential records act exemption or applicable privileges. secretaryor former boris johnson and his conservative party will investigate him for ridicule and muslim women wear burqas.

the chairman of the conservative party have called on johnson to apologize. vice president pence is the time has come to establish a new united states space force and president trump is asking congress to allocate $8 billion over five years for that program. joined by jim mattis. he said what was once peaceful and uncontested is now crowded and adversarial and america supremacy in space is being challenged as never before. >> nations from russia and china to north korea have pursued weapons to jam, blind and disabled navigation the electronic attacks from the ground. our adversaries have worked to bring new weapons of war into space itself. >> jim mattis has endorsed plans to reorganize the military's

space war fighting forces and create a new command. close -- previously up he previously opposed a new service. 2700 journalists and analysts in 120 countries. >> live in new york, i'm julie hyman. minutes from the close of trading. stocks are mixed with weakness scarlet: earlier today we spoke in oil and energy. scarlet: what'd you miss about the ceo of janus henderson question mark tremors between . turkey. and russia and at last count, bill manages $200 billion for us. you have about $370 billion

spreading through other countries. u.s. announce new sanctions overall. against russia. lira,ain for the turkish it is not a question of flows in his area tainting the picture. sinking to another record low as it is a smaller part of the concern about sarah and overall picture. relations from runaway inflation we care about those clients and overshadows efforts to stem that. care about his business. bill has been one of the world and paying the price for a trade investors for years and failed merger. suing in a lawsuit accusing under performance is seeing now is challenging and disappointing sinclair engaged in belligerent to him more than any of us, but certainly to all of us. negotiations with the fcc. we are not where we need to be. emerging market currencies have if you look across his 40 year been feeling the sting of politics. record, that is the anomalous. , and in time, he will come back in order for sanctions to be period-- all novelists effective they have to have an immediate economic impact that iod, and ins per is dire and causes the kremlin to think about the cost of whatever is doing to take a different course of action. neither of these time, he will come back around. bills a terrific investor and a are of size that they impact others. terrific strong player. >> whether it is tariffs or as we have said, he has gone

nafta, it makes our job more through a tough and disappointing time. interesting. he is working incredibly hard to earn that's back. >> investors are being driven by that will to happen overnight. political factors and that has he has gone through a difficult. -- difficult period. had a major impact on the flow >> and you a long track record of emerging markets. dealingtors have been together. you are together with him for 15 years and you saw his fantastic with geopolitical risks more than economic risks. returns and great years firsthand as we all did. >> how long can russia continue to hold its ground? markets will ultimately decide. these things go in waves. as for waves, right now we are ofa wave of the popularity >> what it means is these currencies end up with a higher risk premium that it would normally have. passive funds. >> it has been a tremendous overreaction. in particular emerging markets. i will point did they get too big and they lose the advantage with active fund companies like what we will see, it will yours? richard: that is a great continue beyond labor day. question. please keep asking it. a lack of impact in a comic the question is what really will activity within emerging markets over the next few months. drive the pendulum swing. for performance, we have a lot it is going to be benign. of our company outperforming. julie: will it? with a lot of investment teams

doing a terrific job of doing a great job of performance. thank you for coming in. that is not the only pace -- we heard a lot of different voices there on the effective peace. geopolitical events on these markets. the other piece of the puzzle is i want to get specific. getting better at messaging half it is market by market. of it is the marketing battle to some extent we have to fight let's start with russia. we just heard yesterday about a back a little more effectively i new round of sanctions having to think it will have an unrealistic expectation of do with the chemical attack in active and passive. the u k. not just those sanctions but ♪ two, down and back up. cumulatively what affect will they have? we arecase has been that going to see more sanctions on russia and therefore we have been cautious in -- cautious on russian assets. we still believe sanctions on sovereign bonds are more of a .ast resort measure russian individuals and companies are likely targets. scarlet: had you factoring the possibility the president might

intervene with what the state department announced? we have not heard from them. there is always that possibility. >> the idea of sanctions in play, it is not just the state department. the senate is also contemplating bills that could bypass the president if they are passed in the form they are in. we believe the president has ability to reduce the impact of sanctions but the prospect of escalating sanctions are likely in the near term because it is our phones are more than just phones. the senate and state department. they are pocket sized personal trainers... u.s. policy is moving in that direction. you are not in russian last minute gift finders... assets how concerned should you siri: destination ahead. be about this? i look here and see the wood -- and discoverers of new places. see the yuan is up. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hunreds of dollars a year. they are not really feeling the pain in the same way turkey and plus get $150 when you bring in your own phone. russia are. its a new kind of network designed to save you money. >> absolutely.

that is a key point. click, call or visit a store today. these are country specific factors. retail. under pressure like never before. not necessarily something that could cause contagion across and it's connected technology that's moving companies forward fast. emerging markets. e-commerce. turkey has a bad policy miss. real time inventory. virtual changing rooms. that's why retailers rely on comcast business most of these are not suffering from the same factors. to deliver consistent network speed across multiple locations. we think there is value in emerging market athlete -- every corporate office, warehouse and store areas. julie: is there a bottom in near or far covered. sight there? >> the bottom in sight, a leaving every competitor, threat and challenge outmaneuvered. prospect of policy change which comcast business outmaneuver. we have not seen. the sanctions are not the problem. they are a symptom of the problem. policy, the central bank has mark: i am mark crumpton with first word news. been compromised and pursuing the associated press that the growth at any cost. leads secretary of state's you need to change the policy come you need a credible has shrunk to 91 votes in the economic team. the idea solution would be to go republican primary. to the imf, similar to what that is after election officials argentina did. scarlet: feel at we have been discovered a mistake of the

results of one county in the talking about turkey on the tally. brink for a while now. roughly even 11,000 votes were what is going to be the trigger cast on tuesday. were this turns into something bigger? one california congressman suggests the republican party needs to maintain control of the >> it is getting closer to that. house to protect president trump 5% most down days of and special counsel robert mueller. every day. that is not sustainable. nunez, the chair of the house intelligence community -- that could lead to a confidence crisis. turkey has never experienced a committee, made comments first aired on msnbc. bank run. because jeff sessions recused they will have to make a choice himself from the ongoing russia of a tail risk like capital probe, it is up to republicans control. scarlet: how likely is that? to keep the majority. the special adviser to the u.s. special envoy for syria says "we >> unfortunately that is more than a tale risk at this time. the longer they wait more are entering a new chapter in this very long, very bloody, very bitter war in syria." extreme the measures might be required. they continue to quote saying >> what is the way out for turkey? is there a clear path? hopefully we are seeing the beginning of the end. >> there are things they can do. he was speaking to reporters in geneva and said the big worry is they can go to the imf and change the team and their the province in their area. >> this area is screening for policy. at this time that does require

diplomatic solutions. the president changing his mind best yearning for the and we have not seen signs of that. diplomacy, the best military turkey has been a value trap and negotiators to sit down between it continues getting cheaper to each other and come to see value in turkey, you need to agreements. see a change in policy. >> you are watching argentina as knowing there would not be another location to evacuate to. well. mark: edwin called on expanding it is a situation that turned out better and gives us hope to humanitarian aid to the homes of folks in turkey at this point. where are we in argentina's nearly 4 million people and 3 million are women and children. in yemen, dozens of people were trajectory? >> argentina took the right killed after saudi led airstrikes on a busy market and a bus carrying civilians. policy actions. they tightened fiscal policy. more than half of the casualties they got a large program. were children under the age of 10. they covered most of the financing they needed. a coalition spokesman said it was a retaliatory attack against they have seen volatility rebels and was carried out in because there has been an accordance with international outbreak of corruption scandals. humanitarian law and customs. 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 that is important to watch. bloomberg.

in some way it could be beneficial if it boosts popularity because it is staggering corruption. scarlet: let's get a recap of what we need to see him if it in snares a lot of business leaders today's after the bell results. it could have an impact on up 23% and hadas growth and impact the ability to meet fiscal targets. gained as much as 25%. >> these are idiosyncratic they signed a term sheets to stories, is there anything within the e.m. world that could invest $375 billion to get equity in the e-commerce website cause a widespread effect? as well as the blockchain subsidiary. a contagion? julie and i were saying overstock is becoming more of a something to do with china, for instance? >> china is always systemic. cryptocurrency blockchain company more than its e-commerce website. julie: for good and for ill. any concerns on growth can have an impact on risk markets in general. depending on what we see with flexibilitynt has the cooked a crazy process -- prices that is. on the fiscal and monetary policies trying to mitigate impacts from growth even if revenue beat the highest analyst estimates and that is as the there is an negative impact. chief operating officer is told e.m. we were pardoning -- parting the with the trait of the decade. company. we are basically back to the the executive team is taking on

levels that caused folks to make that call. is this still the trade of the his responsibility. decade? the company does not plan to attractivessets are hire another coo. aopbox plans to give you have to be careful. it is not just owning e.m.. financial forecast on its earnings at 5 p.m.. keep an eye on that. you have to be doing your homework and understanding the risk to certain countries where the policy is just not sustainable. he was a former google employee >> where would you go? brought into dropbox. >> many in the frontiers a, middle eastern countries that corp. earnings out have benefited from oil. and they are a smidge of what -- war, not invented by trade a smidge above what analysts certain countries in africa. were estimating. the emerging market is a big set they're making a pretty good of countries. transition into the digital there can be opportunities in space which seems to be paying off. other areas. >> thank you so much. scarlet: "what'd you miss?" we note steve mnuchin has pushed coming up, the new galaxy note tax cuts and sanctions, and has nine isn't the only thing samsung announced. they have a deal with a major captured america's attention we -- attention when he signed the

music streaming service. dollar bill. all the details coming up, next. we're getting a deeper look at his -- at the trevor secretary. devin leonard has been examining deeply in bloomberg businessweek. did he agreed to be interviewed or talk to us? >> it's funny you mention that's. my cowriter did interview him at the g20 meeting in argentina. she talked to him for about 35 minutes. much of the conversation was fairly innocuous. everything had to be cleared. they barely let us use anything. there are two quotes from him. did he cooperate when we talked to him? sort of. julie: the take away from the story is that he has been a survivor in this white house. and, maybe an unlikely survivor that had not been predicted in the beginning.

one of the defining qualities of steve mnuchin that have made him work ins white house? devin: i guess there are two things. the thing that really made him he has acuteat sensitivity of staying in his bosses good graces involving doing things, defending trump in cases where a lot of other people would not. there has been times where he is made racially inflammatory remarks. then the stuff that trump said about the nfl players who wanted to neil during the national used variousrump words to describe him and steve mnuchin said the president can say whatever he wants. i think that says something in his credibility, but it enables them to keep his job. romaine: when we talk about credibility, how much credibility to see have with trump? much does trump listen to him?

devin: [laughter] i guess there is sort of credibility in terms of what the odds are. credibility with trump just means being loyal to trump. if you are disloyal to trump, you are out of their -- there. maybe sacrificing credibility to remain loyal, that is how you survived read he is done a good job of that for better or for worse. we'll see how long it lasts. julie: talk more about credibility with the outside world. gary cohn felt like wall street's guy in the white house. julie: time for the bloomberg not so much mnuchin. he feels like a creature of business flash. trump as we have been capitalareholder discussing. how is he viewed in the wider business community? he is an important figure. talking -- taking on carl icahn. he supports the acquisition of express grip. he is one of the key guys when glenn who said the company is it comes to the economy there. to get someied paying a cheap price for the pharmacy benefits manager. pillars of wall street to talk about him. was louisy who did

spending $1.1 and part of why he did it was billion to keep price -- key place with the biggest oil was because he was loyal to the goldman guy. producer in the basin. look at some of the things he they expected them to put more has done. he talked about how the strong dollar is hurting our economy cash towards a share buyback and dividends. the ceo called the performance and the great goldman sachs greatrman, is the of bill gross disappointing. prophesies are of that and for two decades, everybody believed it will take time for the fun to it and it seemed mnuchin was recover from losses and tossing it out the window not too long ago. outflows. the bond fund has lost 7% this can't say the market year. does not like him, but he has credibility in the market. scarlet: how instrumental is he in the trade talks? that is your bloomberg business flash. scarlet: spotify has a new ally i know he comes up time and again when it comes to the trade in its competition with apple. rhetoric and war with the company announced a deal at negotiations, and at the same its event in new york and that time, the president sent five sent shares up by 5.2% to $188. principles to beijing were talks end of a publishing nothing. is he having much of an effect

spotify is our stock of the hour. -- end up accomplishing nothing. here, i guess the thinking is he having much effect? devin: he is one of the few is you introduce more people to spotify to convert them to the moderates in the white house. this is the one guy trying to premium version. and keeping way >> this is a case of the enemy of my enemy is my friend. samsung and apple are competing away a global trade war. is he effective? i do not think so. to be the biggest smartphone he thinks -- he keeps getting overruled by bob lighthizer and services in the world. others. music service and a trump was two ago, phone. endorsing a deal that mnuchin you have to pay for it. is free that it did the framework, and two days later, he threw it out the window. marketing for people to buy the i think the evidence speaks for service. itself. julie: devon, thank you so much it is one of the reasons it has been successful. for your time. they have tried to be neutral and available on every devise. you can read that story on bloomberg.com, and on newsstands forming a partnership, making at well -- as well. sure you buy a phone, when you are installing it, do you want to add spotify, people are going video killed the radio star but who killed the cable tv bundle? it turns out there is plenty of blame to go around.

to have spotify right in front of them. that's coming up. this is bloomberg. ♪ is bloomberg. julie: what do we know about the ♪ numbers for the music subscription services in terms of subscribers? how is apple stacking up? >> spotify is the market leader. more than 80 million paid subscribers. combined paid and free. i forget the numbers. apple has not broken out the exact number. north of 50 million paid subscribers. buts a strong second-place 20-30,000,000 buying spotify. they are closer in certain markets. japan the u.s., canada, that apple may be number one. spotify is strong in europe. >> when you look at the , howcials of this company

does spotify continue to justify the spend rate and how long are investors going to forgive them for these losses? in terms of spend rate, they don't have a lot of options. they could spend less that almost all the money they spend goes on getting rights in those are deals they sign with labels. apple different than with and other services. tends tospotify pays be lower because the labels want to make sure spotify continues to succeed. ok with theve been fact it loses money because it has continued to grow. it is the same story as netflix. investors are going to be fine with this company operating at breakeven as long as it is growing and there seems to be progress in margin or cash flow.

>> more than ok in fact. going back to what you are saying about growth, and know scarlet: "what'd you miss?" a busy week for media earnings. anything about how quickly spotify can convert to premium 40 new hits about the blockbuster merger, here is to users. walk us what we learned -- here >> in terms of the speed, i am is gerry smith to walk us through what we learned. not sure. m&a and we learn about the rate at which they have converted free to pay has gotten how these companies are jockeying for position? better. >> a lot of the attention on the that has been a priority. they want to make sure spotify disney earnings is what they will do with the streaming is converting. services and what content will spotify makes more from paying be on there. a lot of people are looking at subscribers and free. this streaming service that they will put out in 2019 that will be sort of a netflix like service. what you have seen, majority

we are looking closely at what content will be on their -- there. julie: the reason behind all of free, much closer. scarlet: lucas joining us from los angeles. these amid a jockeying to create taking stock of spotify in their the entities is that the cable tv bundle has died. accounts. you dig into this on the bloomberg and you look at the >> i'm still on the free plan. prime suspects behind the death i have to paying accounts in my house. of the cable tv bundle. coming up next, a media into that, why has it triggered this m&a remaking make a deal goes bust. of the industry that we have seen? are any of these where did the tribune merger go wrong? this is bloomberg. traditional companies in entertainment, comcast for example, you are looking at the decline of your cable subscribers and thinking you either need to get bigger and do deals like disney buying fox or look internationally like comcast interested in buying sky. the u.s. tv business is slowly declining. forces really driving behind these mergers we are seeing in the media now. romaine: it still seems like there is a lot of great content,

it is just about how people want to consume it. who is the prime suspect for killing the cable tv bundle? who are we blaming? gerry: reed hastings deserves a lot of credit to= -- for building a very successful business. he had a lot of help from traditional media companies. -- they licensed some of his big hits. in the early days, the industry was not sure if netflix would be a big thing. all of a sudden, a few years later, netflix became much bigger. they started thinking this was not such a great idea and now they are starting to clawback some of those shows they have licensed because they want to create their own netflix like service. the question is, is it too late? scarlet: the genie is out of the bottle. you cannot stop it now. in 2009, you said comcast and time warner cable saw what would happen.

they had a sense this would not go well. they tried to rally the rest of the industry around them to create what was called tv everywhere, where people can watch whatever shows they want, wherever they want, and they could come up with a new model. that's went nowhere. gerry: i think that is one of the big regrets talking to tv executives. the ones who thought -- who saw the threat early on had another anywhere. the idea was that you could send off netflix -- fend off netflix in the early days to offer people a netflix like service for cable subscribers. there is tv that still exists, scarlet: sinclair stumbling in but the industry cannot get on the same page with this so there its bid to acquire tribune. were some companies that did not offer their apps as tv everywhere -- as part of tv everywhere. sinclair. now suing everyone wanted to see how to make more money off of the

walk us through what happened rights rather than offering them here. federal regulators are unhappy. to everybody for the good of the industry. julie: and there is also the >> that is how this unrivaled. issue of sports rights. everybody thought this was going to be a shoo-in. you can place blame on disney and bob iger as well because part of the problem with the cable bundle is how much they they were trying to take cost. costs toe cutting the advantage with attitudes towards mergers and broadcast television save money. espn, and companies and this was going to be the big gambit by expanding its lead. targeted represents about a dollars of your cable service. they have the trump it is the most expensive administration, the fcc channel, that they are not the only one shelling out bills and's -- out billions of dollars commissioner relatively favorable. for sports. many companies are spending enormous amounts of money on the all of a sudden, we get at the sports rights. that gets passed on to the distributors who pass it on to consumers in the form of higher bills. fcc, they have recommended this we are some services like at&t goes to a full review. who introduced a sports free it is going to essentially block bundle. the deal or make it move slower. there are others out there like this and there are other ideas that was the end of the deal. out there showing that people do interesting political

not want to pay for channels they are watching. implications. you have at&t time warner, which so the industry is starting to slowly come around to this idea the government has been fighting strongly, and suggestions that there are consumers who do perhaps influenced by the not want to pay for sports. it is a big reason why the president's displeasure with cnn bundle has gotten so expensive. scarlet: one of the best quotes . you have sinclair broadcast leading network of is the former cofounder of espn stations not getting the approval. to know anything about what is going on behind the scenes? saying that to fans wanted more sports so they are driving the price. [laughter] julie: a bloomberg exclusive is >> i would never show accuse them of acting politically but coming up. we hear from the ceo -- coo of at&t and sinclair have a common softbank. enemy, rupert murdoch. what he says is the most important trend in tech. this is bloomberg. ♪ i will throw that out there. fox and sinclair are partners. some sinclair stations are fox affiliates. they do business together. they have been at each other's throats.

that is an established fact. . he is not the only enemy of the president, enemy of sinclair who has the president's air. >> we are down $35 on tribune. let's look at what their future is going to be. this is where the deal became public knowledge. where does this leave tribune? what do they have to offer? >> they have a variety of interesting markets. they are in the biggest markets in the country. they could still be a candidate for consolidation. i think that is likely. there are others out there.

so, i'd think a lot of people think, whether this lawsuit is an overhang and people might wait before doing deals, since we are talking about a lot of money here. >> doesn't get courted by someone else? >> sinclair is another matter. again, the trend, the regulatory trend is to lift the caps on these things. >> plenty more to come in this stock. thank you very much. we have the market close next. we are less than formats to go scarlet: "what'd you miss?" before the close. time for a bloomberg exclusive.

30 minutes ago it was a mixed trade. and hammond spoke with the coo the nasdaq little changed. of softbank and executive chairman of sprint. they talk about softbank's s&p 500 losing four and a half points at 2853. investment strategy in the big tech names now. from new york, this is >> artificial intelligence will bloomberg. be one of the unified themes, if not the most important theme. and weplayed a key role moved into internet, then broadband, and we believe the next enormous wave of disruption will be powered by artificial intelligence. about thelso talk clustering of number ones and the ports talking to each other. how do you facilitate that as coo? marcelo: that is my primary goal. and oured a group question is how do we help? if you look at the entire portfolio, it is hundreds of billions of dollars, and how can we make our companies work better for better returns and how can we help these

entrepreneurs grow faster, expand faster. that is one of our primary roles. it's fascinating to be able to say we do have financial capital and we other largest stake investor in the world read the same time we will help the various ones. but you look at our portfolio of companies we have, it is incredible. we have the world's leading technology companies, emerging companies together. our entrepreneurs love to do business among each other so we help them. we also see entrepreneurs doing an incredible job of bringing technology to one specific country. them expande help their business to the world? lastly, how can we help them grow their business. a lot of these companies are new companies that might be i feel ready soon -- that might be ipo

ready soon. we try to help our entrepreneurs unleash their full potential. that is one of my primary roles. ed: this notion of transition and evolution talk a lot about this. it makes sense for softbank to be doing this, but if i'm an investor in softbank, what is my holding? the company today is going to be different than in five years. how do i quantify my investment? marcelo: the best way to look at it is look at the track record of softbank. when you look at the track record, as an operator, we have done an outstanding job. of turning -- the turnaround the japanese business has been one of the best turnaround in history of telecom. [applause] when you look at what we've done in sprint, it has also been remarkable. when you look at the track records as an investor, the amount of money invested in the return it has generated is julie: "what'd you miss?" probably the best in the world.

we decided, why don't we put sharp take a small but and focus in replicating leg lower at the end of the session. nasdaq is still up for an eight straight day, the longest streak putting our money to work in since october. i'm julie hyman. areas we have done well in the past and invest in this scarlet: i'm scarlet fu. joe: and i'm remain -- entrepreneurs -- in these romaine: and i'm romaine bostick entrepreneurs. ed: in the last 48 hours, elon in for joe weisenthal. musk, how interest -- how much scarlet: let's begin with market minutes. interest did you haven't has we took a late dip for the final left? marcelo: we will never comment on have -- on whether we have 15 minutes of the session. had conversations or not. it's not like the indexes were moving to begin with a whole that would not be fair to anybody. lot. they moved definitively into the red. most entrepreneurs today that want to do a big transaction or the nasdaq with a time being hired us to help them expand does look to secure its eight straight day of gains which is their business, we will help them. the longest winning streak since october. i'm not sure if that's what ever happened with the lawn or not but we would not comment in any not, weith elon or dow lost about 74 points and the s&p 500 is losing 1/10 of would not comment in any way. 1%. minutes ofthe final if there is any chance, we will

be formal and part of the conversation. ed: so if that company fit the trading, it was energy, industrials, and financials. romaine: romaine: let's look at bill in terms of various on the the small caps -- romaine: let's look at the small with softbank?rs caps. we want to look at some of the individual stocks. in the: that is more centurylink was the biggest gainer today in the s&p 500. a lot of optimism off of the earnings. area of finding entrepreneurs that will trump the way we work, we have has like giving back about 5% from that buyout. the way we live, the way we move there's a lot of euphoria fading , the way transportation gets there. then, roku. disrupted. amazing been an it is showing it can go toe to toe with apple and google's of the world. entrepreneur and one a lot of people admire. then, yelp is having a monster day. best percentage gain for the there are so many incredible areuptors today that stock since 2012. they made a big able by going to leveraging artificial intelligence to change the way pretty much everything in the short-term contracts in business. world. it seems to pay off. julie: i want to take a look at that is where we put most of our focus on. those the coo of softbank the bond market. there is a big on sale on the day of -- on the day. and executive chairman of sprint speaking earlier with us today. scarlet: it's now time for the bloomberg business flash. a look at some of the basis -- biggest stories in the news. it is trails slightly on what -- unveiledashed

estimates were looking for. the 30 year yield on the day is down by four basis points. its most expensive phone now. the two-year yield is 2.65%. it will start at $999 and max out at $1200. the 10 is getting a little further away from the 3% they are hoping this will rejuvenate sales. level. scarlet: let's look at it also needs to fend off the emerging-market currencies under upcoming iphone the holidays. pressure. look at the turkish lira. one entertainment technology is selling some of its it is losing 5% versus the u.s. dollar. this is another record low. business. the stock is down 19% this year. the south african rand is getting caught up in this. that is your business flash update. theome contagion from the etf industry likes to think of itself as breaking new situation in turkey and russia. ground's. in this week's "there's an etf -- andargentinian peso for that" we show how it does just that with one fund. look at the argentinian peso, ♪ >the global expert lies are etf perhaps we are getting a repeat of what we are seeing in brazil trades under the fittin ticker of soil. with a down 1.7% versus the dollar. julie: moving on to commodities. with only around $15 million in assets, the fund has

let's take a look at oil prices concentrated exposure to continuing to push lower here. fertilize producers on a play on global agriculture. quoted on theer a quarter of soils waiting comes from the u.s. -- weighting comes bloomberg terminal put it well, from the u.s. for every comment on the trade war, there is a comment on iran. they cancel each other out to a soil has plenty of exposure to certain degree. international mid and small caps including oci and taiwan we saw that once again in fertilizer. today's a session as traders -- expensects ratio paid attention to those two key issues. ratio of 69 basis points, they gold futures not much. are far from dirt cheap. -- not much going on. they are trailing the s&p 500. onper is holding onto again speculation that china will come their signs of recovery in in with stimulus if the trade commodity prices, soil has let war bites a little further. -- yet to close the gap. that is keeping copper prices up they get the green light in the traffic light system. for tenths of 1% -- 4/10 of 1%. scarlet: "what'd you miss?" you can watch that and myself on causing investors to bloomberg etf iq which is the turn a blind eye to global risk like escalating trade tensions. says the terminal only show specifically focused on etf funds.

emanating from washington could coming up is what you need to be the final blow that brings know to get geared up for volatility to the market. [over talk] tomorrow's trading day. this is bloomberg. ♪ s is bloomberg. ♪ has $2.7michael trillion of assets in management. great to see you, michael. thank you for taking the time to see us. there might be volatility down the road. we are not seeing much now. there is a little at the end of the trading day. as we grind through the final weeks of summer, what will be moving prices? events in overseas turkey or russia, or china's response to the trade war? what could be the driver? michael: certainly the incredible earnings season we had are in the books -- is in the books. investors are looking on the horizon to determine what will drive rises next. what we see out there are a number of growing risks. whether it be the geopolitical tensions with turkey, with , anda potentially and iran

there is some backing away from easy monetary policy whether that to be the federal reserve, the bank of japan or others. this has folks concerned. we cannot forget about the game of tariff chicken that the u.s. and china continue to play. that certainly had a big impact on prices today. you mentioned volatility measures have not moved much. the vix is below 11. treasury yields caught a bit, gold is up a little bit, and the gold -- in the dollar caught to -- treasury yields caught a bid, gold is a little bit, and the dollar caught a bid. julie: we're looking at numbers scarlet: coming up tomorrow, or from overstock which talks about investment in blockchain luminary numbers for japan subsidiaries. second-quarter gdp tonight. romaine: and don't miss the u.s. we will get more details on that in a moment. numbers for u.s. cpi tomorrow

there is private equity over morning. fusion into that stock as they julie: and that the negotiations continue tomorrow in washington dc. are surging by 18%. scarlet: that does it for "what'd you miss?" . tech --loomberg like we areseems "bloomberg technology" is up next. romaine: have a great night. big individual moves on the back of earnings season. companies that are this is bloomberg. ♪ not doing well are getting punished more, and those beating are getting a more dramatic lift. what does that tell you about the backdrop of the market? michael: one of the things that has been interesting is that we have noticed the reward for beating estimates has been a bit lower compared to past history. out, inightly point terms of the penalty for missing, it has been more severe. what this tends to tell me is that we are getting a bit later in the stages of the economic cycle, the business cycle. perhaps even this bull market. has notrd for beating

been as great in the past few quarters than it has been before. the penalty has been much more severe in that regard as well. typically, this is a sign that the cycle is getting long from that standpoint. i would suggest a balanced approach for investors. investing in parts of the market that can continue to grow revenues and beat earnings like in technology and consumer discretionary makes a lot of sense. also, balance that out with things that may benefit from building inflationary pressure at a later stage and parts of the economic cycle. material -- energy, material, and others did not do well, but if we get past the ♪ discussion, they are likely to do well. romaine: i can't remember of time or we have had so many tailwinds and having some he headwinds with regards to trade and iran. emily: i am emily chang and this is bloomberg technology. a blow for uber. smart to be overweighted

new york city cap's new in equities or be in this market licenses. could other cities follow? in any sort of aggressive way right now? michael: i think it is still prudent for investors to be jack dorsey is on the defense overweight in u.s. stocks. about twitter's platforms about the u.s. economy is growing at a content -- twitter's policies reasonable rate. about content. in fact, it is accelerating some. 9 forg unveiled the note andorate stocks are strong the public they are higher than we expected this quarter. coming in it was expected around 21% earnings per share. we are likely to get closer to 25%. earnings continue to be strong. the other interesting thing is the return on capital continues to outpace the cost of that capital by a sizable amount. with that, it makes sense to be invested in equities. scarlet: i want to jump in as i saw a headline from campbell that there's a 5.7

stake. by .7% i want to look at m and day and it tends to pick up at the end a, and it -- m and tends to pick up at the end of the cycle. do you see these deals as strategic? what does it tell you about the environment we are in and the sense of urgency on companies parts? michael: campbell has been struggling for a while. if you look a consumer staples specifically, the margins there are under significant pressure and have been for a while. those sales are more strategic in nature. they're trying to monetize the position from that standpoint. m&a activity and capital expenditures extend -- accelerate at the end of a cycle.

although we see some growth accelerating, it is not likely to persist into 2019 as folks are trying to buy that growth through m&a or expend the growth through other means. add in the fact that credits continue to be tight. that is another telltale sign we are in the later stages of the cycle. julie: michael, good to see you. michael arone is from state street global. we want to bring you more earnings news. dropbox is reporting its numbers. earnings-per-share are beating the highest estimate. hadn cents is one analyst expected and they are at $.11. the company is also reporting dennis woodside is stepping down. he will remain with the company until early september and will serve as an advisor through the end of the year.

they are naming a chief customer officer who is currently the vice president of operations. perhaps that is something that they are changing with the their company. not sure what could be contributing to the numbers dropping. that is the only company coming out with earnings. scarlet: overstock reported earnings as well. there was a lot in the second quarter as well. the revenue was $483.1 million. the reason why you see a huge move in the stock is because overstock also announced a gr millions of buy shares of their stock. it will make an investment into the company. millioning to buy $30 of security tokens from overstock.com. they have become kind of a play

on the blockchain. julie: a proxy if you will. scarlet: yeah. where youa website buy other things that you find another websites. romaine: it's working for them. julie: it is. who is footing the bill next. we have more ahead. this is bloomberg. ♪

mark: i am mark crumpton with first word news. the grandfather of a missing georgia boy said today the child's remains were found buried at a desert compound in new mexico months after his mother reported he disappeared with his father who said he

wanted to perform an exorcism on the child. documents, -- in court documents, a father was arrested as he was training youngsters to commit school shooters. they say the suspect was conducting weapons training with assault rifles at the compound near the colorado border which was rated by authorities on friday. puerto rico has conceded hurricane maria killed more than 1400 people last year. the local government has previously reported an official death toll of 64. the higher number was revealed submitted to congress this week. the report also details a $139 million reconstruction plan for the island. saysngton, d.c.'s mayor the nation's capital is ready to rally it hasa

received a permit for this weekend in washington. the mayor says she has activated the city emergency operations center. >> we the people of washington ,c say we denounce hate denounce anti-semitism, and we denounce the rhetoric that we expect to hear this sunday. whether they are spewing hatred and racism online, on the nations capital, let us be one voice and tell them they are wrong. mark: peter newsom says both sides will be kept apart and guns will not be prevented at --t event -- prevented permitted at that event. one company says the committee on foreign investment to the u.s. raised concerns about the

location of its third building. they denied a report that the trump administration is poised to seize a majority stake in the building. 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: we have breaking news. news corp. is the holding company for the wall street journal reporting earnings. beat thet revenue that highest estimates. for the fiscal fourth quarter, $2.69 billion, analysts were looking for $2.65 billion. as i realize, news corporation has exposure to broadcast media as well. through australia.

the stock is moving up 1.25% after trading. julie: "what'd you miss?" the big business of american incarceration. it is being funded by taxpayers while the irs is allowing private prison drinan's -- prison giants to legally dock paying taxes. the trump administration provides another boost spending $3 billion on expanding immigrant detention capacity, derailing obama era efforts to phase out those private prisons. here with more is bloomberg's urban.an -- rob this is the business side of prisons, which looks to be a different situation than the public prisons. what is the tax structure look like? >> the two biggest operators in america are investment trusts means the corporation has two

pay taxes and a profit is paid out in dividends and the shareholders are paying taxes they have a number of taxable subsidiaries as well. one geo group has a contract with ice, the immigration people for ankle bracelets. scarlet: what standards do need to meet to be considered a real estate investment trusts? do these private companies also manage the prison and oversee the operation? rob: they have been owning the property. if you run a prison and own a prison, and say you run it under contract as they both do for many places, almost all of the things that go into running a prison, person doing the laundry, transportation, intake, picture andof the

tax exempt. the incentive, and you see it has been happening a lot, to own the properties, and more and more they want to let someone else run it, but they are building one for the state of kansas. that is in leavenworth county. that is to replace an old one. scarlet: so their outsourcing that part? rob: their building and financing it but state employees will work there. -- a lot of people do not know that private companies run the prisons and that avoids that risk. scarlet: they do if you watch orange is the new black. toaine: you talk about

best-performing stocks out there since the election. if they have a business model that is heavily tied to public policy, and maybe that public policy changes with the new administration or congress, what happens? owninge of the reasons real estate is good because they saw on -- they sign a long-term lease. geos opening a facility in texas as a 10 year lease. they are ok for 10 years. you can change administrations twice. ceos we quote makes the point that the ice budget pretty much does not -- it only goes in one direction. risk --s there any there has been a drumbeat of reforming the prison system.

is there any investment risk that relates to that? rob: i've not releasing details on it. the obama administration released a lot of people for nonviolent drug offenders. that has happened and is over. the prisons don't seem to be hurting for match. side, one of the questions i asked at the