guy: we will weigh on glencore's numbers. we speak to the ceo of glencore. i in guy johnson.nesday. are at $4.6 billion, just shy of the settlement. guy: we are starting to get a breakdown in the detail. we will work our way down in the next few minutes and bring you what you need to know. 1.6.versus the adjusted line looks like it missed. the income line looks like it is ahead of the level. the asian story, front and center. it is a related story, in some way. china is the dominant force in both of these stories. glencore, what is happening in the equity markets, both related to china. caroline: they are traded at a low since 2002. we are still seeing the shanghai composite continuing to deteriorate. guy: we will show you how it is deteriorating. you.od morning to we are in the last hour of trade in china, on the shanghai composite. it is down by 2% at the moment. it has been down by as much as 5% during the trade. it was at this time yesterday that we started to see the biggest selloff occur as a lot of funds started to exit out of their position. we will be watching the ch

how is glencore managing it? jesse: a big concern.ebt,anaged to reduce net which was a little bit unexpected, so they are paying attention to that -- i asked the ceo about the credit rate, and what they thought about it. he says they got going to walk and chew gum at the same time. they say they will continue to pay the dividend, which investors will be very pleased with. mark: the trading business is the important business -- it underperformed in the first half. what was the reason for that? can they turn it around? jesse: premiums of copper and aluminum were down. they reported a 29% decrease in earnings, 1.1 billion, below their internal forecast. so they had to readjust that forecast down $1 billion, which has been a big concern for investors. a lot of them by glencore on the strength of that trading business. they think they can turn around in the second half, agricultural trading will pick up. so they see some improvement. mark: jesse, cheers. bloomberg news a senior independent nonexecutive director at glencore. at's bring in j

up next, glencore gets battered by commodities. we will find out just how bad things are for the miner. a reminder for you can follow me on twitter. we have had alberto gallo with us from rbs. up next, we will -- we will talking not only commodities but china. back in two. ♪ francine: welcome back to "the pulse" live in london. i'm francine lacqua. here are the top headlines. oil is on the slide after two opec members vowed to keep pumping. iraq says it is needed to meet the needs of a growing population. is down 30% from its june peak, dragging emerging markets stocks to a four-year low. the central bank of vietnam has devalued its currency for the third time. it weakened the reference rate of the dong by 1%. it cited the devaluation of the yuan. and a federal reserve rate increase. carlsberg shares have plunged after the world's fourth biggest brewer missed estimates for second profits. the company says it expects 2015 organic operating profit to drop as western europe and rush away on sales. earnings before interest and taxes an

i am fascinated by glencore. am looking at the terminal, you are the most bullish analyst on glencore stock. that thereyou think will be numbers coming out of glencore next week that justify the price market. paul: we are looking at a tricky market. we have metals close to the bottom of the cycle. what happens with the base metal prices recover? at the moment we are not close to recovery. the demand growth will continue, the depletion rates will too. it is an equilibrium position. as soon as we get a recovery in demand, we will see the leverage to that in the base metal prices. , we willike glencore see that sort of response. immediately it looks tough. jonathan: talk to me about the trading business. it is meant to be up to weather the storm. the analysts are not expecting decent numbers. what do you expect, paul? you know what to put into analysis to get an output in terms of earnings. in the trading business, it is harder to do that. put concernsially into the glencore numbers. we are looking at the bottom ran

shares in glencore are currently trading lower in london by around 1%. let's get straight out to ballgate. paul, a pleasure to have you on "worldwide exchange." what do you make of this activist investor building his stake in glencore? >> i mean, look, to be honest, i think this is just taking the opportunity of a very weak sort of glencore share price on the back of very weak commodity prices over what the performance of the trading business will be following noble group's results earlier last week. to take a sort of positioning glencore, what seems to be rock bottom prices. in terms of sort of the activism around rio tinto, look, there's been a lot of talk around that and a lot of speculation. but given where the exchange ratios are, i think that deal is itself some way away. so if that is the motivation rather than just being a great sort of value point for an entry, i think it's somewhat premature. >> glencore expected to report a slump in earnings this week. should that be a big surprise, paul, given the volatility that we've been seeing in the comm

is glencore the way to do that? >> in this particular situation the debt level in glencore is a problem. we like other players a little bit better. >> i want to talk a little bit about m&a. because the big purchase a couple of years ago, that looks pretty ill fated now because they're taking a lot of write downs and selling the assets they require. there's been a lot of talk last year about acquiring or splitting them up. do you think that bid would still make sense? given the low prices now? it could be bargain. >> the situation with anglo american is still one which is influx at this point. it isn't clear that they have their ducks in a row as far as operationally and the kind of margins they should be able to sustain going forward. i would suspect it's ill timed or would be ill timed at this point. >> okay. so no m&a for glencore right now. paul, thank you for that. chief geologist and mining analyst at vsa capital. wilf, how are the markets looking? >> let's have a look at them carolyn. we saw europe and the u.s

i'm talking particularly about glencore. what you are looking at here is hold on.news -- i'm getting there. there we go. this is the good news. this is the free cash flow glencore was able to generate. andcan see it is rising increasing to $4 billion. let's compare that to its net debt and the picture looks different. yes, you see it come down a little bit. it's about $47 billion right now. the best spread is still significant and therein lies the problem. joe: you flagged glencore earnings as something to watch yesterday, but they said something interesting -- everyone knew china was going to be week and it was weaker than they thought and nobody can get a good read on china. alix: they also blamed short-sellers. that part was weird. i want to look into my terminal and talk about stocks for minute. you saw the last segment here -- the divergence breaking -- momentum stocks have in on a tear. people piling into these strategies where they buy stocks just because they have been going up. this is a citigroup index of momentum

how likely is it glencore will out?fford paying jesse: i asked about the credit rating of the dividend and those two things combined, he said we can walk and chew gum at the same time. i am not sure the market is buying that at the moment when you see the market price today. thata: i appreciate expression by have not met anyone that cannot walk and chew gum at the same time. awesome interview. awesome story. our thanks to jesse and andrew. cory: on behalf of the two of us. olivia: you cannot walk and chew gum at the same time? cory: some people can do it with great coordination. olivia: the chairman of bloomberg lp is a senior independent director at glencore. cory: pass or fail? bank of america is the only big backthe stress test came week. -- bleak. ♪ olivia: welcome back. let's take a look at this morning's headlines. explosions and gunfire as were heard outside of a palace now used as a museum. twowith automatic weapons were arrested. there have been a number of attacks in istanbul by allegedly kurdish and islamic m

when glencore went public, six executives became billionaires.three still have that status. two of them may not be billionaires much longer. shares are down 70% and the ipo. glencore fell almost 10% yesterday after reporting that first-half earnings plunged. tweets, peoplees listen. each of his twitter messages is worth $140,000. that is $1000 per character. we did the math. he has more than 23 million followers. no other sport star is even close. i wonder how they got to that figure. they are a media campaign company. brendan: yes. [laughter] brendan: i applaud your skepticism. vonnie: thank you. brendan: yesterday, the german bundestag voted to support a third greek bailout. the same day, nsa appeared dead titled "what if the troika came to berlin?" appeared . clarida understands the german economy. germany would be subjected to the same structural reforms, what would it have to do? richard: what is interesting to me if the imf and the troika went there, they would point out that germany has a huge current accounts surplus. they are relying on

i am trying to keep up with glencore -- it is the biggest gainer on the ftse 100.atile market. you are trying to keep up with glencore and shanghai is trying to keep up with greece. hang seng -- the prospect of back-to-back elections -- unless there is a majority in the snap vote. that came from the leader of the opposition river party in an exclusive interview with bloomberg. >> we should not be having an election. the government could have tried to solve problems first -- a denver, october, november -- then hold elections. jonathan: let's speak to me niklaus. how do already disillusioned voters feel about the prospect of the second election, and what are the polls doing at the moment? and are we expecting a low turnout this time around? niklaus: there is obviously is fatigue among voters. changed toalready six prime minister's since the debt crisis began, including the caretaker who was sworn in yesterday. today the country will get its ninth finance minister, also a caretaker since 2010. published today showed that 64% of respondents say that alexis tsipras's de

led european markets lower after glencore reported results. this was mining giants and commodities trader posted a loss of 620 million euros and is grappling with lower oil prices and an economic slowdown in china. glencore says monte losses have not in as weeks since the financial crisis. shares in carlsberg had their worst day in four years, ending $.90 lower. the danish rumor slashes earnings forecast. the new chief executive cited challenging market conditions, especially in eastern europe. beer sales in ukraine and russia were down during the second quarter. to profits dropped by 28% 213 million euros. the world's biggest sovereign wealth fund filed its first loss in three years. the value of investments dropped by 73 billion norwegian kroner or nearly eight in euros. the fund is run by norway's central bank and it's where the scandinavian company puts its profits from the oil sector. the overall value of the fund is still worth 790 billion euros. france -- last year french vineyards squeezed out 4.7 alien 4.7 billionine -- liters of wine

pimm: glencore just went public last year. glencore's stock is in half. take a look here.rly 60% in the last 12 months. olivia: the stronger dollar not helping any of these commodities. what'sonnect that to going on in emerging markets and you see what's happening in the iron ore business, the shutdown of iron ore mines. we have seen that happen in brazil and we know that's not doing much for the brazilian economy either. incredibles is some mining video we are showing. looks like a bhp commercial. it for me. stay tuned for the bloomberg market day. pimm: much more coming up. stay right here. ♪ pimm: welcome back to the bloomberg market day. i'm pimm fox. let's take a look at the top stories this hour -- more signs of growth in the housing market. citiesices and 20 u.s. rose 5% in june, compared to the same month one year earlier. robert shiller, nobel laureate and professor of economics at yale university spoke to us about housing and the possibility of a recession. been: i have not predicting a recession in 2016. it would not be a surprise if there was one, but i don't t

glencore reported a 46% plunge.cdonald's could see a sales boost from a simple change to its menu. that is on bloomberg.com. check it out. the eurozone has given greece a new lifeline, signing off on the $95 billion bailout. athens should receive some cash today in time to pay off debt. reporter: the third bailout in five years. 63 lawmakers opposing the package, three more than in the last vote in july. after a three-hour debate, 453 in favor, 140 in the gates. the chancellor voiced confidence on tuesday that the international monetary fund would help provide loans. merkel's coalition, by the way, has consistently backed financial rescues during europe's debt crisis. dissent has grown with each bailout. germany has been the biggest contributor to euro area bailouts -- euro era bailouts. -- euro area bailouts. , bloomberg london. shery: time now for a look at some of the top stories on the bloomberg terminal. here is young von. -- yvonne. softbank is buying a stake for $453 million. while he admits it is a risk, he

big falls and glencore, a lot of selling coming through on those commodity-based players.too much support coming today. numbers china's new thousand.be 3.5 levels sewing -- showing losses will continue. >> you know, the battle that is theg on is between government shoring up the market at a particular level while technicals and fundamentals are painting a much gloomier picture for the stock market. we are seeing china's richest traders have been pulling up to the market. we know that our capital outflows coming out of china. $7 billion worth of shanghai shares have fallen in the last few weeks. the concern is that the state is becoming the buyer of last resort. rishaad: why is that number so important? > because 3500 is the new level. they managed to save that level, yesterday was before the occasion where the index stated a sharp rebound after approaching that level. what we of scene is when the previously indicated a certain level will hold and failed we see in scouting -- we saw accelerating losses. rishaad: the chinese index, how are they faring? what we have here is t

index.he lid on that glencore down, it is getting brutal for the miners.ll update you over the last 24 hours. we look ahead to the pulse with him. we do that after the break. ♪ >> if you compare that to what brazil or japan has done, it is miniscule. it was shocking, and unexpected because of their own past. fundamentally, they will take it back to the state we had before 2007 -- unlikely. that is not essential fundamental driver behind the move. >> i think that china is very clever. chinapart of stability in is their exports. there been trying to increase their imports. ok, but theg exports are tough. china is not like it used to be. it is still quite expensive .ecause of their revenue we see it as an opportunity to improve margins. china has no respect for president obama whatsoever. got the take strong action. how can we compete? they continually cut their currency. they have a doing this isn't just starting. this was the largest evaluation they've had in two decades. they make it impossible for our businesses to compete. they think we are run by a bunc

glencore billionaire?he was quoted as saying that please find me the man that can display what is happening in china. they do not know what is going on. glencore has been hit hard. the world's largest commodity trader. he is down from $9 billion to $3 billion. one third of his fortune. other billionaires created after that merger, there were six of them, 4 have fallen off of the billionaire status. wealtha dissipation of for the commodity billionaires. thank you very much for joining us. a little bit more to come over the next couple of weeks from the billionaire team. coming up next, some of london's biggest names in the restaurant industry. they are about -- do they really value their mission and stars? find out after the break. manus: welcome back to "the pulse." live on bloomberg tv from london. our michelin stars a blessing or a curse? veterans of the restaurant business know that receiving the coveted star can have a major impact on business, but is it always positive question mark is it really worth

glencore does not trade in the u.s.ade in london and came out with their half-year commentary. their cash flow was down 30%. this is one of the biggest commodity companies in the world. they talked about hedge funds shorting the commodity space as one cause of the decline. we know the slowdown in china is the main cause. that stock has been in freefall since june. it is no coincidence, carl that june is when the notable slowdown in china happened. glencore is essentially down almost 30% since china really started sliding. so it's the global commodity, global slowdown story weighing on the markets. >> we'll come back to you later, bob pisani. >>> as far as tech goes, apple playing defense this morning the a new survey from research firm music watch found that 48% of people who tried apple music have since stopped using it apple is refuting that number. telling cnbc this morning that 79% of people who signed up for the trial are still using the service. joining us this morning. 9 to 5 mac senior editor mark gemram who is

glencore closely. activist investors want to get in. would you be interested in any of the commodity play because you think they happen over and? interesting.is it is difficult to get a handle on where the balance point is for the price. it is under some pressure. the indications are that supply is adequate, and that where -- there will be more. the chart for brent is suggesting we are about to see a golden cross, which could imply that the oil price might start to rally. it might not be a big rally, but it may be the beginning of consolidation. so, that could be interesting. francine: manus: beginning of the bottom. you will stay with us a little time longer. that brings us nicely to our twitter question was his -- francine: are stocks due a correction? #thepulse. a lot of people saying, they are starting to correct. it depends on how big that correction is. tweet us. manus: ok, the shockwaves are spreading from yesterday's bomb blast in bangkok. aat has weekend. all of this can only hurt a slumping economy. francine: let's get the lat

we were just talking about the glencore reporting that we are going to be seeing.are getting at 8:00 a.m. it is not jonathan ferro. mark barton taking the helm. mark: good morning. big day today. china currency stabilizing. further intervention from the people's bank of china. the exchange rate could go either way. intervention could go either way as well. japan's economy contracted not as much as expected. do we need more abenomics? ?ess focus on nuclear energy and of course military spending. antonin joins me. he says, don't fight the chinese central bank. the european equity market will outperform the u.s. equity market. earnings fell in the second quarter. we know why, the declining price of gold. gordon tells us he's bullish on gold. gold on track for its third annual decline. see you in a second. caroline: thanks very much indeed. let's check in on those futures. guy: looks like we are going to see the euro stoxx of by around 0.8%. the cac looks like it is going to outperform the ftse and the next. that is it for "countdown." caroline: "on the move" is next.

i'm thinking, when do i buy glencore or rio tinto? not sure i want to buy into bhp now. should be looking for an opportunity to buy. and probably you choose august where we are now or wait until october which is a wobbly month for markets. manus: are you going to have to whether a little bit of near turn -- near term pain? miners, do you pick -- you have to take a longer-term view. or are the dividends secure? john: good question. they have increase the dividend. bhp have a progressive dividend policy. i would be worried with glencore. manus: how long is that progressive and can they hold it? john: they have cut back on capex. they need to spend more there. so probably they can, considering that very stable margin may have got. so, as much as prices come down, that is -- good at cutting their costs, it is petroleum division that worries us. i think they will continue to do reasonably well in copper and iron ore, although we have seen pullbacks in those prices. bhp is not my favorite of the bunch right now. francine: you are waiting for an opportunity to go into glencore.

olivia: they have been buying back glencore stock. corey: not afraid to buy other u.s. stocks.lse will looking will be looking a little more bearish and we will figure out why, next. ♪ coming up later today on "bloomberg market day," real estate mogul will be here to talk about live manhattan property owners are cashing out ahead of schedule, plus, his possible run for mayor of new york city. the shoes to fill from our founder of bloomberg news. corey: indeed. markets are luring investors equities but. our next guest is optimistic. david joy, happy at scene of the market, cheap market overseeing 815 billion in a $15 billion -- i am a glass half empty guy always, david, but i'm getting dated to support arguments lately. what is the single most bullish thing you think people are overlooking right now? david: i think it is the strength of the u.s. consumer. the sentiment is a little bit cautious but if you look at balance sheets, they are in great shape. the strength that has been restored since the recovery consumer toshed the a very healthy position. we have created 12 million j

this time of year last time we were talking about glencore going after rio.you look at the business right now is or anything you like about it right now i think you have to be brave to get involved with any of the minors at this time but glencore is a trading is us on top of the extraction business. jon: which you hoped would offset the extraction business. ask if you picture that as a commodities investment bank you look at the investment banking franchises you can see what happened to revenues. jon: brave to hold minors and commodity currencies that is the sum up a run bloomberg tv. chris turner head of effect strategy think you for joining us this morning let's bring up the afc for you. the athens stock exchange down by 1.6%. the banks getting battered again down by 14.78%. limit down monday and limit down tuesday. where are we wednesday? pre-much limit down on perea's bank again. that is getting ugly. i will bring you an update right here on bloomberg tv to still to come. is apple losing its shine? the company falls below its 200 day moving average. plus,

glencore is out with earnings tomorrow. harris associates upping its stake in glencore.iseen trading lowest level since its ipo. is one of the big gainers as well. wire card, the biggest gainer on the stoxx 600. that processesny payments. a good set of results today. downve commodity companies 2%. a big copper miner down as well and the greek banks, the national rank of greece down 7%. greece is waiting for five european parliaments to approve its third bailout before it can get its hands on that money. pimm: thank you very much. coming up on the bloomberg market day. has burnedup's sequa through half its cash in just months. we will try to explain what happened. new jobs numbers showed getting a college education still pays, but is it worth the cost to mark the fda will vote on a drug being called the female viagra. we will look at why it has been causing so much controversy. the selloff in commodities continued under concern of global growth with oil trading near its lowest level in six years before west texas intermediate futures reversed its outlook. they say opec ca

glencore off the best of 5% after disappointing results this morning. now german lawmakers are preparing to cast their ballot an an 86 billion euro greek rescue package approved by euro zone finance ministers on friday. as you can see live pictures in berlin as we speak. >> let's take a look at u.s. futures alt this moment. lower across the board. this after stocks closed lower. the dow indicating a lower open by 48 points plus july fed meeting minutes. let's get you a run down of what to watch. consumer prices expected to inch up 0.2%. at 2:00 p.m. the minutes of last months fed meeting. lowe's hormel, staple, and target before the bell. >> meantime, jeff gundlach said it would be a bad idea to raise rates next month. if the fed does move it opens the lid on a pandora's box of a tightening cycle. it's driven by worries over the growth outlook should be a big concern. last year he predicted bond yields would fall because inflation was non-existant. >> the 50 day moving average falls below the 200 day moving average many say that's a sign the bull market

it glencore earnings are out tomorrow. traders ofe biggest commodities in the world.u have to look at margins. take a look inside my terminal. you're looking at the aluminum premium over the last year. you could see the huge debt down. joe: and the german the on the greek bailout. they are going to pass the vote. how many party members will merkel lose? that is the one to watch. watch. alix: ha ♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. emily: tech investors get worried about china. thed the following u.n. be tip of the iceberg? i'm emily chang. this is bloomberg west. comcast and nbc reach for a younger audience with buzz feed. theal media is ripping up election playbook. all of that ahead on bloomberg west. first of our. turmoil returns to

joe: check out the glencore's five-year chart. it turned six people into billionaires overnight.ay, only three are billionaires. has lost 70% and has stolen every year since it went public and 2011 was not terrible for copper. joe: baby when they write the history of this, they say that is how we knew. some really big damage done to the company. alix: despite the fact it is putting out money to pay dividends to investors. julie hyman is that the breaking news desk with headlines from hewlett-packard. the hewlett-packard forecast looks to be a little short. it is going to be splitting up as well. one business will offer technology and services to business, the other will be consumer facing. the fiscal fourth-quarter forecast is the one falling short. the company for the year brought up the lower end of its forecast for earnings. coming out in beating analyst estimates. they have been working to revamp the company and try to bring back sales. a profit of $.64 a share. the're closing out 175 of gap stores. joe: the greased prime minister announced his resignation, clearing the way f

glencore ipo minted six billionaires. it is now down to three, sadly. to 2.8 billion.ssic glencore fall yesterday was amazing. another fallout from the markets. guy: what do you take out of the numbers yesterday? stephen: even the smartest people get it wrong. i am interested -- guy: he says he has no visibility. stephen: it is not just about china. it is about the spillover effects globally. they will tell you much more about what is really going on in china. and i think the explosion, call me a cynic, does that again show the pressures of safety standards? guy: we will leave it there. ♪ . policy makers fears about raising rates before inflation picks up. the dollar and stocks have been dropping. they have been downgrading their expectations for the september move for the fomc. greece making a payment later today. it is 7:00 in london. good morning, everybody. so with the fed front and center still, what's happening in emerging markets still very much being talked about as well. but the fed, let's talk about that. let's show you the u.s. close. let's show you what hap

jonathan: to talk about another company glencore though stocks are trading at a record low.have a trading arm when commodities fall, this will offset us. kind of like the energy business. has that happened? jesse: it is hard to say. we will know into weeks. you can get a bit of a read through from the share price. perhaps the market expects they will not outperform. it has been a tough market for all commodities. we have seen some commodity trading companies share prices be hammered -- get hammered. jonathan: if we have the opportunity to talk to them in last number -- glastonbury i'm sure we would know. how long can sam walsh do that? jesse: as he talks about the new normal for commodities, the higher cost producers will exit the market. jonathan: when you see the market share, what are we pushing, 70%? jesse: yes. we will see higher prices in china, australia, perhaps with america -- north america. rio tinto said they had 110 million tons of new supply. jonathan: thank you very much. coming up we will speak first with the rio tinto ceo sam walsh. stay tuned. back after thi

glencore sayss -- that sink denies selling from chinese hedge funds have pushed prices too low. .na its economy is slowing down and less copper for construction. finally, let's take a look at treasuries. treasuries right now around where we started on the day, yields had risen higher, around the 9:00 a.m. mark. investors pushing in here. the fed is what we are looking to and about 15 to 20 minutes time. about 15 to 20 minutes time. matt: in july they saw conditions for a rate rise nearing -- not sure if someone has broken the embargo, but i have seen things coming across that look like they are from the fed. i just sent a message to michael mckee and i will get to the bottom of this. >> spillover from emerging markets, stocks on two days of gains declining on this wednesday session. those companies with exposure to china leading the declines. i'm talking the automakers. the miners. the european commodity producers trading at the lowest level against rotter markets since 2002. it's very much the case in europe following the emerging markets, which have of course fall into four-year

bhp, rio, glencore getting whacked. all down. this is about purchasing power.es, it might help your exports to what does it mean about imports? spilling over into commodities for the aluminum getting whacked. knee-jerk reaction. what happened in china. investors we had a rebound of the commodity markets a late in the session. it is the opposite, the flip side 90 -- 19 minutes into the trading day. not just how the chinese situation is playing gow but greece. the government and creditors agreed on terms of the third bailout. the parliament must require -- must pass the measures that is required. bloomberg news reporter joins us now for little bit more. the news, the headlines, what is the latest? reported bank indeed, -- reporter: indeed, the third bailout. onhave details remaining this agreement as the greek find mr. -- finance minister and terms and the greek government will give the bill to the greek parliament as early as today. lawmakers will coving tomorrow and then maybe thursday. lawmakers will vote for the deal. given the meeting on friday to weekss the

out of theget way, goldman sachs this morning on the future of noble resources and singapore in glencorey need?to go into a full-scale restructuring will we see that in august? jeff: the timing is depending on how severe the commodity market is or is the environment. it is pretty hostile right now, but we need to see it much more and energy. even though oil back down to $41 a barrel on a spot basis, oil traded below $50 a barrel. that tells you that financial stress is a lot harder. not only do we see the back oil price coming down, but it is going around 9% instead of 20 -- 25%. tom: so they are on edge and were exposed as we go into autumn. jeff: exactly. brendan: green of the dynamic between china and commodity countries, you look at indonesia, malaysia, what is the linkage between those economies and our economy? much the linkage is not so directly a trade or something of that nature. the way i think about it is what happens of the u.s. dollar? as it begins to strengthen, it puts downward pressure on those currencies. let's take the example of the recent devaluation in china. it lowe

glencore, one of the worlds biggest minor seeking 5%. two-day drop in two years, 16 billion euros of value has disappeared from the european mining industry in the past couple of days. it is not just about china today. three other big movers across europe, henkel lowered today. they reported second-quarter earnings that missed estimates. 8% lower today. fearing they will need to raise more funds from shareholders. soap? goldmang sachs recommend they sell shares of unilever. -- dove soap. because of china, all 19 industry groups on the stoxx 600 finished the session level or. that is the story. back to you. pimm: thank you very much. coming up here on bloomberg "market day." the international energy agency says global oil glut will last through 2016, at which point it will reach a 17 year high. the dating app called tender creating a social media fire. suggesting it has caused a dating apocalypse. we will give you details. we will talk about the shakeup in the financial technology business. fidelity will buy software maker sungard. deal e

here is one thing investors ask when a look at a company like bhp billington, or the competitors, glencore. why maximum involvement? why not leave the higher cost reduction in the ground? theew: we don't have highest cost production of iron ore. we have the lowest. this is a great business for us. even greatere is than 50%. all of the production we are getting at the moment is because we are running our business better. it is to productivity. we are not having to invest any money -- any more money. therefore we have gross margins of 50%. it is a logical thing for us to do. in a free market, the lowest cost producer generally has the right and the opportunity to continue to produce. in thee is a reduction growth of demand, it is up to the highest cost producers, not the lowest cost. means they will be delivered more securely and we get at a profit for our shareholders. saudi's are trying to do the same thing in their market. andrew: i would say that is near identical. i think they have woken up to the fact that i feeding -- by feeding market share, they are actually losing more than they mi

glencore which makes it's profits in china down better than 5%. randgold one of the bright spots. >> let's have a look at luxury. the last decade has seen luxury companies really increase their sales to china. swatch group a big loser yesterday. today down 2.5%. 37% sales exposure to greater chi china. all down sharply once again and it really is a route for all of these exporters to china. >> yeah, you think about the impact of the currency devaluations on the consumer. you looked the luxury names but let's look at food and beverages. if you look at the danish beer company they make about 8% of their profits in china. one of the losers yesterday and a similar story in today's trade. down about 2.2%. nestle down about 1%. as you can see at the bottom at the end of the wall right there, the french maker of liquors and spirits, they make about 30% of their profits in china. they could suffer as this has an impact. >> to see more pronounced moves is is interesting. this is a one off devaluations. the fact that we've had a second and people say is it

the headlines is the really beaten-down minors and we have talked about how much company is like glencore and those have been crushed the day after day after day. finally, they seem to have caught a bit. obviously, oil is having a monster day, one of its biggest days in years. so after so much pain, finally, eventually you get the day that you get a spike in today was it. alix: but it's still about the it isne read your oil said is pushing for an opec meeting. is it really going to happen? sorry we didn't cut the last time. why would this time be any different. so this bounces either technical or on the headlines could be short-lived also. joe: the fundamentals of supply and demand are going to change rate quickly, and a matter what. though we could be in a situation where selling in commodities was overdone, even giving the fundamentals. it was just down everyday with those stocks. now the whole commodity-oil-materials index is doing very well today. will be back in 20 minutes to help me get through the close. don't forget to tune into our show, 4:00 p.m. eastern standard time. markets.t

glencore, miners in the last two days, have had their biggest fall since 2011.air from the mining industry in the last couple of days. the cousin of this, this chinese to valuation. where's the money going? i tell you, it is going into the european bond market. one bond market you want to watch today is the german bund, the 2-year note, the yield intonuing to head deep negative territory. in fact, fl to a record low today. the u.k. bond market is worth watching as well because rate expectations in the u.k. have been pushed out by the chinese news from april to august next year. that is ensuring bonds are well in the u.k. this is fascinating, the euro is up for the sixth consecutive day against the dollar. it is one of the haven currencies. that is its best run since april. that rise, that 1% rise is the biggest rise in two months. matt: thank you. in new york, we're hitting session lows, extending losses as you were speaking following europe as well as asian shares. this is in large part a reaction to china's currency devaluation over the past two days. the dow

splashesone of our this week -- one of our frequent guests taking a substantial position in glencore, trying to get out in front. brendan: that is deception that if you are looking to commodities, you are looking to growth in emerging markets. we had brian bilski on last week as well saying that we have been looking at the wrong growth engine. we should be focusing on the u.s. adam: u.s. consumer is the most game in the whole world. i think the u.s. consumer is ok. jobs are improving, housing is improving. i think the latencies aren't growing, they're coming down, in terms of mortgages and credit cards. obligations are somewhat low because of low interest rates. i don't think the consumer is in bad shape. when the savings rate goes up, that is an expander of the cycle. the risk wasc that due to the positive for u.s. equities. scarlet: adam parker is clearly very bullish on stocks. mark, you were saying earlier that stocks are caught in the never was strange in nine decades. arrowest rangeron in nine decades. 90 years. this is the past month. we have moved quite a bit, but it is within

we heard from glencore that they are having trouble because of corruption investigation and they cannotet programs off the ground because people cannot do business. we heard last week, on the radio, i heard from the ceo of mclaren. they say it is completely dried up and the culture of conspicuous consumption is gone from china because of this corruption investigation. combine that with what we are hearing of the slowdown of manufacturing and the consumption of raw goods is down substantially. michael: all of those are unassailable facts. it is not in the last month or the last week or the last three months. that has been going on. when mr. xi came into government, he said they would crack down. if you are running the company right now, you do not know if you are being indicted. he is going after political enemies. everything has slowed down. conspicuous consumption, guess what? they had a huge amount of corruption and they were buying all kinds of crazy stuff. stopped. there is a major transition. the transition has been going on since this guy took over and that's in addition has gone

i'm just trying to ask how you figure out whether you should sure the producer, glencore, or just thet's has been fixed the audio issues and get back to this, because it's a fascinating conversation. olivia: you cannot wait to hear what he has to say about u.s. equities. ♪ cory: over the weekend, disney used the force. newcreating a jaw-dropping world that represent our largest single theme land expansion ever. [cheers] dry: that is bob iger at the 23 expo in anaheim. planswhere he announced to expand the star wars universe at disneyland in california and disney world in florida. star wars is set to take over the box office this holiday season. is there a dark side? us --paul mary joins l.a. palmeri joins us from this is fascinating to me because this is such a big expansion. before we know it, this movie will be a hit, let alone the franchise. are nothing if not patient. it could be 2020 before this star wars in land opens -- themeland opens. wars atwill star disneyland and disney world be able to compete with harry potter hogwarts? it will definitely be able to compete whether you a

there is a big glencore report on wednesday.e've also got oil dropping this morning as we've seen opec production may hit a record. they are producing more and more. francine: look at crude. it is 41.7. it is also about a lot more production coming online from the u.s. drillers. the big question is iran and what opec will do about that. you can tweet us. we are back in two. ♪ great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. tand that's what we're doings to chat xfinity.rself, we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time.

glencore is below two pounds a share. the debate is output. output andthings are reduction output.mood has changed. and dividends and the risk for dividends. is it too big of a risk for holding commodities at the moment? howael: it is a question of much they cut commodities by. it could still be the best game in town. instead of getting 5% it could be getting 4.5%, which is still good. the situation will be a it of a squeeze. in technical terms -- technical terms, prices are oversold. are going to get that sort of process. you have problems in brazil as well. -- of these issues ultimately it comes down to confidence. a lot of investors have an at which the speed shanghai composite index fell away. that could happen, we have seen knockoffs from the shanghai market directly to people in trading and commodities. we have seen commodities come out of the woodwork. francine: thank you very much. to stay with us. we will be talking about rbs and other companies, next. the u.k. government has a 78% stake in the bank of scotland. they unloaded their share of the stock. taking a loss on sale

tom: one of our frequent guests is taking a substantial position in glencore in mining trying to gethat if you are looking to commodities, you are looking at growth in emerging markets. last week come a we said, we are looking at the wrong growth engine. we should be focusing on the u.s. adam: the u.s. consumer is the game in town and the world. jobs are improving, housing is improving. delinquencies are not growing, they are coming down in terms of mortgages and credit cards. obligations are low because of low interest rates. i don't think the consumer is in bad shape. when the savings rate goes up, that is an expander and lengthener of the cycle. tom: where are you on gold? do you have a cold call within mining -- gold cal within mining? adam: i don't. 1% of the s&p is metals and mining. most of the companies have not been standouts. tom: it is monday. [laughter] want some in my personal life, but i think it's going to be my crazy grandfather left it in my shoebox rather than a good investment. tom: adam parker. brendan: adam parker is on team america. yeah! let's take a look at th

manus: you would say that the oil majors,he glencore, bhp billiton, it is still nowhere near enough.stion would be what is capitulation, what does it look like. 5% lower? when a few more highly -- youed players go bust mentioned that commodities were at their lowest levels. that was at the end of a 25 year there market. snapback.here's a unless global growth picks up demand pickssupply up. until we get some significant changes, we want to be wary for an asset that produces no income. does that mean you are expecting a hard landing in china? we talk about a supply glut but if you are seeing a chinese economy falling off a cliff, that would explain weakness in commodity prices and that might stay with us for four or five years. andrew: did anyone really believe that china was growing at 7.1% per annum? when i visited china, everyone was talking about point -- 4.5% and was anticipating the ben would beat revalue. -- devalued. it was not that long ago that some forecasters were saying 12% per year. the chinese, we are coming to the end of a five-year plan. there's a big restructuring goi

one stock that really is glencore. down 12.5% in just two days.s earnings next week. this was the darling of the mining sector 12 months ago. it was supposed to weather the storm of a commodity market route. will besector that we dealing and. do not miss that conversation. then we have to talk about greece. german resistance. as ever nothing changes to guy: it depends on who you talk to but i take your point. it is going to be a difficult story to navigate for the germans and the greeks. looking forward to it, thank you indeed. on the move is coming up in the markets are very much on the move this morning. caroline: popping that is annexed as jonathan said. high this on a morning. popping something else. you can see that we stayed here a little bit. the cac 40 in the dax are 1.6%. the ftse 100 up around 0.5%. caroline: we are coming up -- that is it for us on "countdown." "on the move" is up next. see you tomorrow. ♪ jonathan: good morning and welcome to "on the move." we are moments away from the start of european trading, let's head straight to

they had this advantage that glencore does not. they sell in u.s.lar terms, and they have expenses in china and in russia. where fortunes have gone up the cause the dollar is so strong. and collecting a lot of dollars, they may not have a cap this year. but they have operating costs in low currencies selling dollars. so if you billionaires have gone up. the aggregate is pretty bad. perspective,m your does it get any worse anytime soon? or is it safe for the time being? i think we have to concede that the cycle has come to a premature end. but that was very much a side effect of quantitative viewing. the wrong the price signals increase capacity so much that we have an overflow. demand is growing, but business supplies are a problem. i'm afraid they're not going to get their riches back. but it was always paper money on their anyway. caroline: do not sell assets to quickly? a surprise, anybody else we should keep an eye on? industry, a related but it is a surprise in retrospect. there is a billionaire you have never heard of. a german billionaire, he

i wonder if you could elaborate on that a little bit and tell us about glencore which has been an area. secondly, too, how about chinese internet stocks? where do you stand at the moment? >> good questions, although they both seem to hinge on china. glen core has a tremendous amount of debt. they're levered to base metals including copper, which keep falling. we believe is now becoming understood better. although, really, it's not a very shorted company. mining does not have a lot of upside, we think. although, it's very different in the way it's traded in the last 6, 7 years. it's the consumption part of china that keeps growing, but the sentiment is terrible and close to bottoming in my opinion. it could bottom in the next 1 to 2 months. >> last question before we let you go, then, sounds like for everybody trying to figure out the direction of the u.s. stock market here, they're looking to china. you seem to be saying, they shouldn't be looking to china's market so much as maybe just watching, quite simply, the u.s. dollar. that further dollar rallies will be a head wind. is that ri

glencore with a gain of around 4%. over to you. >> thank you for that. in the meantime back here the global market turmoil hitting many hedge fund investors including bill ackman. he was one of last year's best performing hedge fund managers but now the firm is down for the year after the markets dropped. three weeks ago he told clients the firm was up about 10% for the year through the end of july but despite the sharp moves they have made no meaningful recent changes so it's current portfolio holding. it believes the value has not changed but diversity is not his thing. he likes to have a basket of half a dozen, a dozen stocks and he's betting on those stocks and that's the deal. >> that's a company that i happen to cover, the stock is down 10% since he announced the stake this month. 80% of their business is overseas. they have ton of business in emerging markets. >> i always wonder how many of a macro take he looks at. how macro he's thinking when he's looking at a stock like that in terms of the value. bank of america and other lenders were issuing

i think of glencore's comments over the last 72 hours. we could go all day. thank you so much.ur 20 question, is jeff curry involved? vonnie: always. our first answer, i think know because corporate earnings are returning more than 0% interest available elsewhere. tom: interesting. pushing on that earlier saying he asked if things were ok in the united states? vonnie: how long will that continue? second answer, yes, unless unlimited qe has gone wild. tom: is that from an oriole? [laughter] know the money question, brendan, from this week's what does japan do next? as a percent of gdp, it is an enormous. brendan: my question is, when will we learn that what changes dynamic is actual fiscal policy? vonnie: third answer, no, the bull market is like #trump, what does not kill it, makes it stronger. #trump 2016. tom: does he really have a live eagle in his office? brendan: i was wondering about that. he was looking nervous in the shoot and i am thinking yes. vonnie: speaking of politicians, time for the agenda and mine is that i will be watching korea. tom: let me get that out of th