u.s. tech companies to chinese companies that are looking here? >> i think it is largely strategic. 1930's, gm to sell cars outside the u.s. citibank going global. probably in the 1970's and 1980's. in that sense, many of the they areompanies, andsting in u.s. companies want to see cutting-edge technology to bring it back to china. to starto, they want dabbling into global expansion. is,reat a market as china you see a lot more now. cory: you are saying that as much as they might be interested in technology, they would be more interested in a beachhead where they could have a sales team and to know a company that they would sell their products to? teams, i was part of the that helped to recruit hugo barra. it was a collective team effort. he joined because he saw this interesting android product emerging that could be more than just a smart phone. it could be beyond just china. and the team, google or microsoft, they have the ability to shock. it is not just regional. we are both invested in a company, where it's most recent new mobile app -- cory: is this china-based? it is based in shanghai.

it is not just about the u.s.. gm'sal operations outsold north american operations 4.5 million vehicles in total. it's important for them to do well in this world, and that can be a problem. in europe, where general motors has struggled to make a profit, the company did post earnings its first lacking in the market since 2011, but europe is going to have a bit of a problem because of the brexit. the plan to exit the eu could cost the company $400 million in the second half of the year. we will be following this stock throughout the session as it touches its highest level in three months. shery: thank you. still ahead, are stocks close to hitting the peak question mark this is bloomberg. ♪ scarlet: this is bloomberg markets. i'm scarlet fu. shery: i'm shery ahn. u.s. stocks are trading from record levels, but they have been on a hunt since the brexit vote. but our valuations keeping pace with reality or are equities due for a letdown? what's join cory johnson and carol massar on the radio. carol: this is the bloomberg ad

u.s. tech company's the chinese companies that are looking for m&a. >> i think it is largely strategic. much the way in the 193'gmed to sell cars outside the u.s. citibank going global probably in the 1970's and 1980's. in that sense many chinese companies, whether it is bidu, tencent, they are investing in u.s. companies wanting to see some of the cutting-edge technology and to bring you back to china. number two, they want to start dabbling in global expansion. as great a market as china is -- >> you see a lot more now. cory: as much as they might be interested in technology, they would be more interested in just a beachhead where they can have access to sales teams and know some of the companies that sell their products? >> i was part of a team that helped recruit hugo barra. there was a collective team effort to do that. hugo joined because he sees this interesting android platform emerging that can be more than just a smartphone. it could be beyond just china. a lot of former google and microsoft folks have it in their dna to have a shot at becoming more global. both of us are investing in a company. it is a

gm set 19 financial records last quarter. many due to strong sales in the u.s. where demand for new pickups and suvs is not slowing down. not only that, people are paying more for the models they are buying at chevy, buick, gmc and cadillac dealerships. personally because they are asking for features to keep them connected behind the wheel, but also because certain models, like gm's mid-sized pickup trucks, are connecting with buyers right now, but gm is also profiting because of its decision to cut back on less profitable fleet sales, vehicles that are sold as a lower price to rental car companies, government agencies and corporations. it's a move that has lowered gm's dominance in market share, but gm would rather sell fewer vehicles at a higher profit. after six straight years of rising sales, analysts worried consume remembers running out of gas, but gm's cfo doesn't see that happening. >> we still expect to see strong industry performance in the u.s. for the foreseeable future. clearly the results in june were a little bit less than what we expected, but th

in response, gm more than inbles its larger trucks july to get americans into the showrooms. but it is not just about the u.srationsnational sold more than the company sold in north america. though the unit level trailed in volume, gm north america did produce $11.1 billion of the automakers $10.8 billion total adjusted earnings before interest and taxes, offsetting losses, although that math would not work in other regions. we will be following these numbers. on thursday, bloomberg will be talking to gm's cfo chuck stephens at 8:00 a.m. new york time. scarlet: we will stick with earnings, intel predicted third-quarter sales that beat analysts estimates. we will have the latest on emily chang in san francisco. intel joining me now from intel headquarters. stacy, thank you so much for joining us. i would like to start with the pc market. but there are reports out there that the decline in the pc market is slowing. what is your read, based on the results, how is the pc market actually doing? relative to the second quarter, with we came right in line on revenue, and get a little better in profit from our e

u.s. as consumers move from passenger cars to trucks and suv's. gmreported sales in china improving, as well as conditions in western europe. we finish now in the united states, where two traders at hsbc have been charged with fraud. local head of foreign exchange at hsbc and a -- the global head of foreign exchange at hsbc and a former colleague have been charged with using insider information to profit from a transaction. the case is connected to a three-year long investigation of the manipulation of currency markets globally. they are the first individuals to be charged with reading the markets. hsbc -- with rigging the markets. hsbc and its competitors have already paid over $10 billion in civil penalties in the probe. we are going to hear about this sort of thing for a long time to come. emma: will hilderbrandt with all the business news. stay with us. we are taking a short break now, but coming back in just a few moments with more of today's news. a a a bq 07/21/16 07/21/16 [captioning made possible by democracy now!] amy: from the republican n

u.s. and canada are affected. the recall covers models from 2009, 2010. gms there is a problem with the front passenger airbag detection center. two crashes with injuries have been reported. dealers are going to fix the problem but there's no schedule on when those repairs will be made. >>> roger ailes is out as chief executive at fox news. resigned today amid sexual harassment allegations. his 20 year career building the network came down when former anchor gretchen carlson filed a lawsuit earlier this month. she says he forced her out of her position after she rejected his advances. since the lawsuit was filed, at least 6 other women have come forward with similar stories. fox news founder rupert murdoch will step in as acting ceo. >>> mcdonald's now says it's going to offer garlic fries at all bay area locations. the company tested the special fries at four south bay spots. they were big hits prompting a larger rollout that actually started today. should be in all the restaurants by next wednesday. and yes, the garlic that mcdonald's is using is grown in

u.s. market. that will affect all of the players. gm going up because of fantastic earnings. is falling because analysts are skeptical about its master plan. a little bit of a role reversal today. vonnie: keith naughton in detroit. the company known for its frisky is hoping to boost profits by brewing its own craft beer. that story is next. ♪ >> japanese liquor company itsntory is launching ring in beer brand in hong kong. >> our focus is on building a premium position in asia including market like taiwan, korea, and malaysia. our target volume is to sell .50,000 liters by 2018 that would become the benchmark for expansion into china for which hong kong is a gateway. things standing perhaps in your way. we have seen changes in the industry. shifted to ae craft beer. flavored beer is another. some have shifted toward whiskey and spirits. >> when it comes to overseas expansion, a boom in craft beers and bourbons are a plus for us. many people are not familiar maltsuntory plus premium see it as a product of japanese craftsmanship. , our brands are very popular. customers become

or i as you know, i think a lot of people are thrilled at the gm numbers, thrilled to be separate from -- >> get to nose. at the nasdaq the u.s. navy marine corps and captain john mustin rang the bell. phil lebeau, give us gm now. >> david, june is shaping up to be a month with few surprises. gm sales last month falling 1.6%. that's basically in line with expectations. the estimate out on the street was for a decline of 1.3%. two pieces of information we need to focus on today. first of all general motors its estimate for the industry sales rate last month, 17 million, a little on the low end but basically looking at a relatively strong month in terms of the pace of sales. the other thing people will be focused on today what do the automakers say during the sales conference calls about production schedules for the second half of this year. if we start to see inventories backing up a little bit, are they going to start trimming those production scales. as you know in the auto industry, as production goes, so goes sales. that's going to be the focus as we get more of these numbers and the conference calls. guys, back to you. >>

in the u.s., for did well, better than gm.nal automakers and within the auto making industry as a whole, very different results. for analysts, this is a concern because it may prove that there are clouds ahead. yvonne: thank you so much. let's stick to autos, mitsubishi iniors resuming making many cars. production was halted after the company admitted falsifying test. what is the state of play at the factory right now? >> the factory we are talking plant that faced a huge setback in april when the company admitted to manipulating its fuel economy figures for two cars and its lineup and two models it makes for nissan under a joint venture, so this was a huge blow for this factory and for the surrounding economy. town in whichc ,he factory is at the center that town and civilization built around it. sinces the factory open 1943 and was where mitsubishi motors built its first car. where thisuation plant was already an trouble before the scandal broke. in 1993, when production at this factory peaked, it was almost 725,000 vehicles

gm tried to shield itself from losses over faulty admissions. they were barred when the csx topped earnings expectations, a third largest u.s. railroad oper commo prices lead tog a sharp decline in shipments and while this quarter was no different, profits did earned 47 cents a share, were for just 47 cents. it was down 11% from a year ago. the stock took off on the expected eat, which this afternoon. we have more on csx's quarter. >> earnings from csx surprised the upside of the second quarter indicating the railroad's operators plan the starting to pay off as it continues to grapple with the ongoing lower commodity price, which has resulted in increased demand from railroad operators. in the second quarter, volumes did decline while volumes dropped more than 30%. longer term, they say that stronger u.s. dollar, prices and energy market transition continue to challenge its fin report. >> young brand raises its profit guidance and that's where we begin tonight's market focus. strong firstf results in china prompted the chain to lift outlook. the owner of kfc and pizza hut saw quarterly profit rise, beating expeck tase, but r

gm talking about the move out west. >> sports is next. but first here is jimmy fallon. >> men and women of the u.s. military, we have adam sandler and know you can keep your financial big picture under control. know you can see how much you have to spend and whether you should transfer funds. know you can easily keep track of what you're putting away. and know you're budgeted for the great escape. thanks to virtual wallet by pnc. ♪ >>> this is the xfinity sports desk. >> and just like that, lebron james is an underdog and everybody is playing. >> that is right. that is exactly it. that is the biggest nba free agent decision sce lebron james gave us his decision in 2010. durant, we waited for him to tell us where he will be playing basketball next season. not heading to d.c. or back to okc, the seven-time all-star heading west where he will help form one of the best lineups we've seen on an nba floor. the warriors already had the back to back mvp steph curry and now adding durant gives them two of the top scorers with curry and durant. a decisi

gm. people were saying we're seeing really strong demand in showrooms particularly here in the u.s. and then we got these numbers from ford and these were way worse than people were expecting. they were expecting to make 60 cents a share. when you look at the two main causes for them to fall shorts of earnings expectations let's start with china. ford lost $8 million in china and asia and one of the big drivers of that loss the fact that it's seeing more competition particularly in suvs from local auto makers in china. when we were there earlier this year we talked about how the chinese auto makers are driving the lower end of the suv market. i believe that's playing a role in terms of more competition hurting ford in that market. then come back to the united states and you look at what's happening with incentives in u.s. showrooms for ford. they were up 20%. 20% in july. now a lot of that is because you've got the new f series and there's an increase in sin se sentiviv sentivives. the bottom line is 20% increase in incentives and a billion more dollars spent that's what mark fields

gm in rio.. the nba streams will featureille u.s.a and other countries.ountri >>> folks in japan trying to catch them all.ll. pokemon go is available forab players to download in japan.ap the country of the characters'hr birth. the game was released mored than two weeks a ago in australia new zealand and the at united states.tate my kids what to play ity it caitlin. we downloaded the app.he a they could sign up for it yet.tt there's still so many people trying to get online.nlin >> i know. >> that yeah you can downloadu l the app but they have not been e able to actually register andtea start playing yet. trying to play.ng >> there is.>> >> not available for everyone.ry >> servers are overwhelmed.revew crazy.crazy. >> literally swept the countryht and all we could talk about is s pokemon go. >> and i predict it's going tono fall as quickly as it rose.s its >> i would be okay with that. b >> you're right it is one ofokht those things iyou catn'tn't possibly imagine.ne >> let's hope temperatures doop the same ttehing.hing >> that's so

u.s. general motors, ford, fiat chrysler moving higher today, up by 1.5%, but the interesting thing, for gm and fiat, their sales rose less than expected. some of them were a miss. general motors sales fell 1.6% year on year. the expectation was a fall of .7%, but it is still up. fiat chrysler, sales rose by 6.5%, but the estimate was for an 8.9% rise. lightold more suvs and trucks, and those have a higher revenue. netflix, best buy, staples also up. best buy securing more funding from banks on the order of one and a quarter billion dollars. let's take a look at what is happening in the safe haven of gold. up to 1.4% right now. it is seeing its biggest jump in a week, also its highest since july 2014. year to date, it has rallied 25%. off of that, some of the gold miners are on track for their highest since 2013. vonnie: those are the winners, a few losers. let's take a look at one of the losers, the safe haven of treasuries. this is the u.s. 30-yield. we do not often look at this. ear yield hit 2.18%. it is down six basis points, the lowest since february, 1977. some other notable losers,

gm has beat estimates by at least 50% for five straight quarters. one of the concerns for investors was slowing growth in the u.sles are expected to fall short of 2015's record. if that were to happen, it would mark the first annual decline in seven years. there were still able to post growing income based mainly on truck sales. americans preference for trucks over cars is more lopsided than ever as crossovers and pickups outsold coupes and sedans for 39 consecutive months. ford has been the pickup sales leader for more than four decades. ford is on pace to keep that title this year. the gm international operations sold 4.5 million vehicles in 2015, more than the company sold in north america. in europe, where gm has struggled to make a profit, the company posted earnings of $137 million. europe is looking strong, gm did say that the uk's plan to leave the eu could cost the company $400 million in the second half of the year. a stock up about 1.3%. we want to move on to earlier on bloomberg we talked with gm 's chief financial officer. we're going to have a listen now. >> we had outstanding results in the s

gm says sales dropped 2% in june. ford says sales rose 6%. meanwhile a tesla model s driver has become the first u.s. fatality in a wreck involving a self-driving car. joshua brown of ohio was killed in may after the car's cameras failed to distinguish the white side of a tractor-trailer from a brightly-lit sky. the intelligence report will be right back with intel on a new attack against fox news from democrats who say the network broke the rules at the republican debates. howie kurtz is here. ♪ amazing sleep stays with you all day and all night. sleep number beds with sleepiq technology give you the knowledge to adjust for the best sleep ever. don't miss the lowest prices of the season sale, with the c2 queen mattress now only $699.99. plus 36 month financing. know better sleep. only at a sleep number store. trish: democratic members of the federal election commission voting to punish fox news over allegations the network broke the law adding under card stage for their first republican debate back in august. the commission vote split 3-3 and therefore did not pass. however this raises some concerns

gm's ignition switch crisis was part because of this system. the ceos of those systems are trying to change that. but if you look statistically all u.s.inesses across all industries get five times as much revenue today from financial services as they did in 1980. so it's like we're all bankers now. >> on that note, rana, pleasure. >> thank you. >> next on gps, my exclusive interview with the man who the turkish government says was the mastermind behind the recent coup attempt, fethullah gulen is a 77-year-old cleric who lives in self-imposed exile in pennsylvania. you will want to hear what he has to say in response. >>> just over two weeks ago, all eyes were on turkey as that nation's government fought off a coup attempt. it was a dramatic night during which it was unclear to observers just who was in charge. with morning it came clear. president erdogan was still in command of the nation. the bridges east and west and asia. since then president erdogan has presided over a severe crackdown. since the coup, more than 15,000 people have been detained including 10,000 in the military, more than 8,000 have been arrested including 5,000 i

u.s. players did, with their june auto sales and they as many in as well helped. their stock prices are rising today. general motors up one point 5%. gm said its sales fell 1.6% year on year but it is still up. the estimate was about 7%. the company sold -- .7%. let's take a look at what is happening in some other stocks. up because of the news it once to buy a supply chain company. harley davidson up 14%, the in the consumer discretionary sector on the s&p 500. there is speculation that he might be interested in a takeover. jco.looking to buy they are expecting to add one month of that. vonnie: what about the losers? >> let's look at the bonds. the 30t often look at year treasury but we are today because it hit it's a record low. it is till down six races points still down six basis points. becauseown nearly 6% merrill lynch says its outlook is negative. not new news to us because we have been talking about this the entire year. six of 13 directors have decided to call it quits because they failed to oust their ceo. ourie: mark crumpton is in newsroom. mark: a group as many of nine gunmen holding several people hostage inside a bangl

u.s. plants they are running 24/7, 100% capacity. the company raised guidance and also announced it's diving into self-driving car business. gmd $580 million for the start-up cruise automation. already invested about $500 million in lyft as well, but shares jumping about 1.75% to $32.04. >>> to cleveland where donald trump will officially accept the republican party's nomination for president. look, it's been a slightly bumpy couple of days at the convention. last night a little bit more bumpiness here. a dramatic night filled with boos, chants and jeers. the long and devisive 2016 primary season played out in one final hurrah, although for texas senator ted cruz it was one final boo last night, overshadowing in a way vice presidential nominee mike pence by taking his moment on the stage to rip open fresh republican party wounds, failing to endorse donald trump, encouraging voters to, quote, vote your conscience. trump all but interrupted cruz's speech, wading into the crowd. but just hours from now the true test, this final night of the republican national convention. we are getting a parade of speakers on the docket, but on

u.s. supreme court. >>> former cavs general manager mcphee introduced as their new first general manager. the team will begin playing in 2018. he spent 27 years as the gmcapitals fired after the 2014 season. he knows exactly what type of team he wants to build in vegas. >> i built really entertaining teams, teams that entertained and won. we'll build a brand of hockey that people like. i never enjoyed that sit-back style of hockey. >> very happy for him. twoont talk about golf and the open championship. you inferred -- >> game or sport? >> it's a sport. >> i'm -- you know, like i said, i'm just asking. i'm getting old, too. i got no opinion. >> i just wonder if it's a game or sport. >> it's a sport. let's talk about another sport. basketball. wizards soon to be highest paid player bradley bill watching the young guys play in this offseason. front office didn't let them hit free agency. they locked him up right away. >> it's not about the money. it's about being part of something bigger than just basketball, you know, in terms of being part of the city and what the city brings, and i'm just excited for the year, continue to expand my game, put my heart

u.s. automakers are going to release their june auto sales this morning. ford and fiat chrysler expected to post increases of better than 6%. gmreporting a drop of a little more than 1%. >>> new jersey gasoline prices will remain among the cheapest in the u.s. for now. the state senate tabled a bill that would have hiked new jersey's gasoline tax which is now the second-lowest in the nation by 23 cents a gallon. governor chris christie wants to raise the tax while lowering the state's sales tax by 1%. we'll talk about gas taxes with americans for tax reform's grover norquist and joe biden's former economic advisor jared bernstein at 8:30 a.m. eastern. but if having someone pump your gas and the second-lowest taxes in the country, if that doesn't induce you to move out to the garden state, i don't know what's going to. you actually could have land. think of -- land where you have something that you actually -- the grass is yours instead of -- >> sometimes when you're driving down the turnpike, there's that wafting sort of -- >> you know what? you know what that is? you see this big city with like -- >> yes. yes. >> -- like a zi

gm says that two crashes and two injuries may be related to the problem. the front passenger seat can rub against wires causing an airbag failure. the recall is happening in the u.snada. some 2009 and 2010 models were affected. >>> the national retail federation says families are expected to spend about $8 billion more on back-to-school shopping this year. their annual survey reports k through 12 and college spending will be up to $76 billion. they say consumers are willing to spend more but, of course, are still looking for bargains. >>> time now 5:56. in the next half-hour, warriors star steph curry reacting to the nba's decision to move the all star game out of the city where he grew up. >> reporter: and you can't miss this. a full-page ad in today's "chronicle" that's sending a message against mario woods remembrance day. ,, ,,,,,,,,,, when consultant josh atkins books at laquinta.com. he gets a ready for you alert the second his room is ready. so he knows exactly when he can settle in and think big. and when josh thinks big you know what he gives? i'll give you everything i've got and then some... he gives a hundred and ten percent! i'm confident this 10% ca

u.s. car sales reported a mixed bag, stoking concerns the market is slowing and consumers are putting purchases on hold. board be rejections that toyota, gmestimates. may saw the fewest jobs created an almost six years. offeredralian election no clear results in the -- over the weekend. let's get over to paul and city. australia, what is going on? when we have an idea of what the next government will look like, what is the mood right now? that i mayl tell you be a resident of us try it am a citizen of new zealand so i'm not allowed to vote. i can happily step above all this freight but the situation is a real mess, i'm glad i do not have to take responsibility. currently a 57 seats, the opposition on 71. the key thing to be recounting counting of the pre-polling and postal votes which resumes on tuesday when a may be 13 days until we have a clear result. you might see those numbers shift quite a lot. look at those smaller parties, independence, they'll say they haven't taking calls from both labour party and the ruling coalition but none are saying they would support either side in a minority government at the moment. what we had here is

gm near live went bankrupt then. ramshackle company. henry ford had 56% of the u.s. market. nobody could make a car cheaper than henry ford, the model t. getting cheaper and cheaper. what do you do? your company, ramshackle, disorganized, can't compete on price. so sloan just changed the rules of the game. he introduced, thanks to his gifted engineers, introduced the annual model change. he recognized a car just wasn't a contraption to go to point a, point b. it was reflection of yourself. it was a fashion statement. all the things we now take for granted. this guy looks like an accountant, he was, recognized the importance of fashion, annual model change. excitement. what will be new in this model? he segmented the market from chevy to cadillac. set up a car for every purse. allowing you to choose color. henry ford said you could have any color you want as long as it is black. sloan let you choose the color. buying on time. no ad is complete, six years financing, blah, blah. in those days you put the cash up front. ford thought sloan was going to destroy general motors allo

gm. at the same time, the focus in north america is increasingly on truck and suv sales. sergio marshione confirmed they ultimately plan to only makes trucks and suvs in the u.sexpect that to happen by the first quarter of 2017. you're looking at an industry with higher incentives and those are cutting into the most profitable vehicles, which are trucks and suvs. >> so they're not going to make any cars -- the challenger made in canada. the dodge dart. they're not going to stop making the cars, and no one's going to lose their job as we know it. they're simply going to replace the u.s. production with trucks or suvs, right? so no one's going to get a pink slip from this, that we know of. >> right. in fact, they're adding jobs. so no jobs are being cut. it's simply sergio realizing what are the most profitable vehicles i am going to sell? trucks and suvs. what's the hottest brand going right now? jeep. how do i leverage that? i put that production into north america. you take the low margin vehicles, which are cars, you don't make much money on cars in the auto business. so you ship that production, or you contract with an outside firm to sell those cars. it's