dayal news 24 hours a powered by over 2600 journalists and analysts in 120 countries around the worldis bloomberg news. yvonne: thank you. with no clear winner in the us train election, malcolm turnbull might need to work with independent lawmakers now to stay in power. what is at stake for him and his party? great to have you. is brexit allit over again. do you think this is a fundamental shift in australian politics, similar to the u.s. and u.k.? look, you have a comparable populace amongst part of the population. you don't have a general rejection of the major parties. we have 70% of major voters aiming for the major parties, but a major portion have shown their distaste and dissatisfaction. the two major leaguers are not that popular, but still it is not on the magnitude of brexit. let's put it that way. even if malcolm turnbull wins, you will have to rely on independent lawmakers to form a government now. what does this mean in terms of the friction we have already seen in the conservative party? is it only going to get worse? >> yes, yes. for the media and academics like myself,

dayal news 24 hours a powered by more than 2600 journalists and analysts and more than 120 countries.'m mark crumpton, this is bloomberg. we want to recap the earnings right now from earlier in the hour. the burrito chain still reeling from e. coli and other things that drove customers away. the stock is moving somewhat higher in after-hours trading. let's move on to starbucks as well. expectationsling there. joe: another company moving lower, pandora. a narrower loss that expected but $343 million revenue in the order was shy and was estimates. and of course paypal is doing well in the after-hours right now. in line withn bang earnings of $.36, but boosted its third quarter and full-year revenue and earnings forecast. or the full year, paypal now 10 $.85 billion in revenue. the estimate was only for 10.7, so better than analysts had been looking for an better than previous estimates. the estimate is $.35, so that is a range that includes numbers below the estimates, but still you can see a jump as high as 6% in afternoon hours. scarlet: i wanted to correct something i said yesterday

dayal news 24 hours a powered by journalists in more than 120 countries. dities news, west texas oil close lower at about $45 per barrel. government data shows u.s. crude and gasoline stockpiles were at the highest seasonal levels in at least a decade last week. hammillionaire harold spoke earlier on bloomberg. hamm: we're going into a period where we will not quite have enough supply coming on for production. we will be pulling out of inventory for the balance of the year. and means higher prices that is what we predicted for the end of the year. is notthe next question if prices go higher, but when and under what circumstances? michael, you write in your latest note that it will be a rocky road to recovery. enumerate what some of those hurdles are on the road ahead? >> one thing the markets has to contend with is the very high levels of inventory. that inventory, when it is adjusted even for consumption or the level of demand right now in the market, it is still very much higher than where we should be at this time of year. now, coming out of the summer,

dayal news 24 hours a powered by 2600 journalists and analysts in 120 countries.estigated by the fbi. a person says a preliminary probe has begun into whether hillary clinton campaign was hacked. the security war world is comments from donald trump that russia should find 30,000 e-mails missing. some have dismissed the comments as a joke. donald trump says he was being sarcastic. many say it is an unprecedented move to see a politician asking for help from a foreign government of hackers. >> joining me now, a longtime counter intelligence and ,errorism operative for the fbi what do you imagine is happening in the russian hacker community over the last few days since these comments? we need to change the way we are describing it. what i would like to say is the russian spy community. this is espionage. going after a political campaign, the dnc, hillary's server or her campaign, it is espionage. there are secrets a service would like to know. getting newe headlines about this new investigation into this additional hack on the dnc. the clinton campaign saying hackers

dayal news 24 hours a powered by 2600 analysts and journalists. this is bloomberg. vonnie: global markets are hitting polls. international monetary fund scrapthis is bloomberg. the forecast citing the brexit vote outcome and warned of the damage could worsen as confidence falters between investors and companies. the cohead of global investment management solutions at j.p. morgan asset management, where he was even more than $170 billion. thank you for joining us. affected brexit, not so much the rest of the world. world growth is going to come down substantially in the next year? >> we're focused on the long-term. seen, it has been a good environment for risk assets. theover the course since brexie have seen the rally quite a bit and it has proven time and time again, these political and economic events which tend to be isolated to a particular region, generally do not cause larger impacts in the global economy. vonnie: at the same time, you are saying 6% is the new 8% for returns. 6% a little optimistic? >> we do not think so. a balanced and diversified investor go

dayal news 24 hours per powered by more than 2600 journalists and analysts and more than 120 countries is bloomberg, back to you. shery: markets close in under 30 minutes. let's go live to the nasdaq with abigail doolittle. : really outperform in the dow and s&p 500. behind that outperformance, technology. hugely strong, up 1% with a lot of big names participating. this includes apple, alpha but -- alpha, facebook. a greed to be has bought by softbank. today isss well monster beverage. shares are lower, having their worst hastens february 29. then -- saysays the near-term potential -- sears of monster beverage are up about 4% year to date. perhaps she will be correct, thinking the near-term potential is limited. >> how will this set the tone for tomorrow? abigail: great question. of course we will know soon. investors are looking at nine cents per share on $1.2 billion. we have lots of messy quarters out of netflix this year. one analyst who has been dead on is corey at m science. he carries consensus numbers in the quarter. now he did e-mail our team earlier, saying he's very cautious

dayal news 24 hours a howard by more than 2600 journalists and analysts in more than 120 countries, i am emma chandra. vonnie: getting back to the u.s. jobs report now, unemployment repl rebounded i june. payrolls climbed 287,000, more than forecast. the made jobsthat creation was revised lower to anomaly.an joining us on the phone is mohamed el-erian, bloomberg view columnist. you wrote yesterday that the immediate effects of an upbeat jobs report would be to add confusion to the market. this was upbeat in some ways, but also there were things about this report that may be might give us pause. does the settled the market or add more confusion? is isd: with this report more like a goldilocks report for the markets. they are welcome. they will welcome the job creation and the uptick in the labor participation rate. they will also note that wage growth remains sluggish. ist you sit should see short movement at the end of the yield curve. equities is doing well because goldilocks report shows that wealth is ok. up sectors, particularly banking, will get some short-term relief because on

dayal news 24 hours a howard by 26 such a journalist's and analyst and more than 120 countries.his is bloomberg. vonnie: thanks. warning there are clouds on the horizon, including the from the brexit vote. saying if it is confined to just kingdom,and -- united if it leads to greater questions about the stability of the european union, it could have more significant concert is. deeper within the federal reserve coming out of this than investors -- 2:00 p.m. eastern, may shed some light on what they're thinking. an equity strategist at bmp. we did see the trade deficit and economic saying a quarter of that widening is asked down and at u.k. are down. >> really, there is a negligible as far as the referendum on the u.s. what is important in our review is potential financial contagion from the eu, the u.k., and the u.s. one of the most surprising moves has been in the u.s. race, substantially lower. that is supportive of growth. when you look at financial assets helping growth, lower rates are supported. we have offsets from a stronger dollar, lower equity prices, and a wider credit

dayal news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries.his is bloomberg. vonnie: thanks. arms holdings is surging after softbank agreed to buy a chip designer for $32 billion. it is the biggest takeover of a u.k. company -- company since they voted to leave the european union. welcomingt was issued the deal saying it shows the strength of the british economy in the wake of the brexit vote. for more, let's bring in our executive editor for bloomberg news. gets outhat softbank of the holdings? company -- mobile phones made in the last several years. her iphone's and samsung out sees, but they also make the semiconductors also in your homes. is banking andk betting on the future of's march -- smart cars, that might drive you or help you parallel park. you will need more software there. do notlliance is they make semiconductors. they design and create it, but they do not have to send billions of dollars on a manufacturing plant. the margins are pretty robust and that is something i think softbank is looking forward to getting. vonnie: he has b

dayal news 240 hours a powered by journalist in more than 120 countries, i'm alisa permitting.e: revenue from wealth management and bond trading beating expectations. net income came at $.75 a share. it beat forecasts of just $.60 a share on average. now,s are up on the news so let's dive deeper into the numbers. we're joined now by security analysts who has a neutral rating on the stock. given that most big banks have reported, what is your take away overall? what does this hold for future quarters? >> i think that you take away is that while better bond trading had a little bit better balance sheet expansion drilled beats relative to what were reduced expectations coming into this. returns on equities or the key measure of profitability remains pretty compressed. in the absence of a more robust revenue environment, cost-cutting is going to be a key strategy to improve profit ability. vonnie: trading revenue has been good at the major banks, much better the next rotations. can that continue? what was that a factor of? eric: i would say it's a little unclear. one of the key dri

dayal news 24 hours a powered by more than 2600 journalists and analysts in one 120 countries.crumpton. this is bloomberg. matt: thanks very much. let's get a recap of the markets today. all new record high for the s&p 500. you can see 2137 being the closing high and intraday high for that index, even as we see 10-yearow rates on the and global bonds. the dow jones industrial average closing at a may high of 2015. not hitting a new record but up there. the nasdaq also the highest since december of 2015. >> on the nasdaq, that is outperforming the embassies. on top of that, the russell 2000 small caps were up. the real standout winner in the equity market. up with associated risk. the fact have been doing better is impressive. >> "what'd you miss?" the japanese prime minister said he planned to add fiscal stimulus following the ruling party victory in the upper house elections. japanese shares posted the biggest gain in almost five months. how much can he accomplish after the vote? joining us from washington to discuss his tobias harris, political analyst. and also with us is be

dayal news 24 hours a powered by more than 2600 journalists and analysts and 120 countries. tom: thank you so much. it has been an extraordinary morning, folks. with the news flow. which means we have to get back to some foundations of things and for many that is something called gold. our single best chart shows you the history of gold. i call that the mepass chart. here is 60 years of gold. the blue circle is the nix release. the surge of the 1980's of the great deflation. up we go again. our "surveillance" authority is james steel. news thisl, the morning is of japan. japan were short-term is 10 years.you've talked often about india and china always demanding gold. does japan demand gold? james: historically, japan was a good buyer of gold. in the 1980's, 1990's, the gold accumulation plans built up considerable stock. since a large proportion, the largest proportion in the western world is over 65, we have seen japan is the only that non-producer of gold has been an exporter and the last two years, and that is because the over 65 population has been selling off their gol

dayal news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries.omberg. act to you. shery: the pound surged, touching its highest level in two weeks versus the dollar on news the bank of england has kept its interest rate steady. this has helped extend the rally from a 30 year low, though the currency is 10% lower since the nation opted for brexit. our next guest says fundamentals continue to point lower for the pound and recommends not just holding positions but increasing sterling's store. it's rate to see you. let's get started with the pound. i was thinking the markets had already priced in -- the negatives that could happen for the u.k. economy following brexit, but you are thinking the pound has more to go lower? guest: if you think of the context of what is out there in terms of policy stimulus from the central bank, you are obviously going to get some unorthodox easing which is hard to determine if this point. also from a fundamental aspect, when you look at the u.k.'s current account structural deficit, a lot of that is financed by externa

dayal news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries.m taylor riggs. this is bloomberg. shery: thank you. it is e.t.f. friday. here to discuss the outlook and what the flows are saying is david and eric balchunas joining us from london. dave, let me start with you. u.s..'s in the attracting more than $60 billion in the first half. what does the second half look like? what we have seen a significant amount of money move into bond e.t.f.'s. s will continue. there is a significant amount of uncertainty and volatility. leading to investors looking for safety in the bond market and e.t.f.'s. matt: i wonder about the regional flow. it shows you the regional flow in and out of e.t.f.'s. what we have seen over the last three-month is a massive inflow for the u.s. and massive outflow in china and the eurozone. i get europe, right? why china? what is going on? >> there are lingering concerns about the economic growth situation in china and what impact it has on asia broadly and the entire global economy. something not as significant. now it is. wh

dayal news 24 hours a powered by over 2600 journalists and analysts in more than 120 countries. some of the big events we are following this week. tuesday brings arbitration on disputed waters in the south china sea. an international court in the hague is to rule on the philippines claim to the islands , which are also claimed by china. also on tuesday, leaders from the eu and china meet in beijing for their 18th bilateral summit. the premier as the host with donald tusk and jean-claude juncker representing the eu. they will focus on economic relations with the fallout from the brexit decision set to dominate. korea announces its latest rate decision on thursday. analysts expected to hold at the record low of 1.25 percent after a surprise cut we saw last month with the central bank governors signaling the chance of further easing to come. latest economic data may show china's growth slowing even further. economists expect gdp to have risen 6.6% last quarter compared with 6.7% in the previous three months. that china gdp figure going to be a big one this week. coming up, getting

dayal news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries.rtainment is learning from past mistakes. sixthill mark the consecutive year they have added a new instruction to each of the parks. -- construction to each of the parks. ofn duffy is with us, ceo six flags. john: it is great to be here. amanda: let's talk about your number increase. you want or guests in the park. -- more guests in the park. where will that grow? john: we just released our second-quarter earnings, and we , 11% in revenue, 19% in even.. we are seeing a nice trend of increased attendance. that is fueled by a number of things. one is we believe people are feeling better about coming out and spending more money. one of the things we have seen is that when they do come to the parks, they are spending more money. this has something to do with lower gas prices, more money in their pocket. maybe they feel better about the economy. we are seeing a nice pickup and park spending. sydney open a theme park in shanghai. aside from where you made those deals thus far, where you look