olivia: what you have in your house? brian: solar. olivia: all solar? am not off the grid, but there is a letter in my house. olivia: i lived in a rental in manhattan. i am all plugged into the grid. thank you so much, brian. the world'sto come, largest sovereign wealth fund. ♪ olivia: was biggest sovereign wealth fund reported its first loss in three years. 8.8 billion dollars. in a dismissive interview this morning, bloomberg spoke with the ceo of the current investment environment. >> looks like a very quiet market. interest rates crept up again after going down. i think the most interesting thing has been the currency and the currency volatility. >> those currencies are moving constantly. my question is can we expect bigger moves, more expensive moves? the chinese have depreciated the currency. perhaps you can define for me what word you would use. >> volatility in the currency markets is likely different. some can move out of the fixed income markets and into the currency market. >> you also mentioned during the news briefing that less money overal

a great week with you, olivia sterns. olivia: yes.t people on the , but great for me. we are going to cover this market selloff all day long. cory: i will be back next week. i'm going to bloomberg radio right now. olivia: don't go away, much more to come on the "bloomberg market day." julie will continue breaking selloff. global currencies, commodities, equities are all headed south. ♪ ♪ >> we've got a market selloff going on. we can't forget about etf friday, folks. let's talk about housing. the housing market is on fire. this is selling -- sending home-building etf's to their highest values in years. i would imagine the highest level in years is probably a couple days ago. now we are seeing a little bit of a pullback with the rest of the market. >> sure. we have seen about a 2% pullback. but etf's are up about 13% this year. this is an interesting industry. it has a lot of assets. there were two main ones. the assets are split. on difference really depends what your definition of homebuilder is. on one side, you have a conservative

olivia: nobody. wreckage has found the of a planet lost contract -- contact with air traffic control in cloudy weather. jason golf, australia's day set a major tournament scoring record to win the pga championship, finishing 23 under. i know you are passionate about watching golf, but this was about as exciting as golf gets. jason day, 20 under par. boyfriend,th, my even though he came into second place, he is now the number one golfer in the world, taking the spot from rory mcilroy. cory: what a year he had. he had a shot at every major auto into sunday. olivia: a solid guy. cory: you are so lucky. you guys are cute together. olivia: we are happy together. cory: five things you need to know. the economy is growing slower than data suggests and policymakers have stepped up stimulus. curran,let's go to enda who is in hong kong right now. talk to us about why we are suddenly recognizing the official data might not be the actual data. : good morning, china sets an annual growth target, a hangover from t

olivia: are they wrong?wo-year yields, talking about small money, how much could it be of a problem. lost --overnment debt had huge losses. what does this mean? buying this debt now, you are paying the german government for the privilege of being able to buy their debt. olivia: tube -- to lend them money. lisa: you see it all across the german curves. when you get these levels, you see more volatility because they are not making sense from an investor logic perspective. olivia: euro gdp out weaker than expected. kicking in.tarts what happens to the european debt then? lisa: this is a problem. these people will not do well. back tosee a reversion the 4.5% losses and a couple of months. work, you easing should see an excel ration in the economy. yields starte the to rise again. ahead, if you were a fan of "the wire," you will want to hear about new project. it debuts sunday night on hbo and is called "show me a hero." ♪ now to discussus his recent conversation with the tv series. how does a public housing figh

olivia: erik: -- olivia: thanks. we had the ism report just about 45 minutes ago.eds into the rate expectations in the u.s. seems as though the odds are increasing for rate increases in september. you see the three major averages higher, particularly the nasdaq. look at the sectors in my bloomberg terminal. a broad-based rally. all groups are higher except consumer discretionary. is leading the game, as our materials and energy. we will get to commodities in a moment. the best performer in the s&p tech index is first solar. a renewable tech company. the biggest u.s. solar manufacturer. the company recovering from a loss last order. sales up 65% because of a newly formed joint venture with sun power, a so-called yield co. that holds energy generating assets of the companies. freeport mcmoran leaving gains on the materials front. deferring oil and gas investments. doing a big structural review given the collapse in commodity prices. oil remaining higher after the inventories report a little while ago. olivia: above $46. consumer discretionary is in the red, the reaso

olivia: apparently. three -- number three, tech earnings parried to really interesting, really controversial companies, salesforce and hewlett-packard recording after the bell, i guarantee both will be interesting. hewlett-packard i think probably is down off of the 52 week low which would make it a new 52-week low. olivia: why is this interesting? corey: totally different stories. hewlett-packard is a disaster. they have been having so many problems and they are restructuring. one-time restructuring charges for more than one decade. olivia: because they have printers and desktops and nobody buys those anymore. mean: no, that would declining sales. restructuring means that whatever they are doing at the corporate level is so tumultuous that they are taking special charges, laying people off, changing their business. now they're completely remaking the business for the second time the last 15 years. the last time they made a remake of the business was a merger and now they will split it up into different

olivia: carl riccadonna, thank you for joining us. ♪ olivia: this is the bloomberg market day., ash carter was in silicon valley and on the heels of that visit, emily chang got a chance to sit down with mark and treason -- mark injurie he has set up a unit of dod assigned to build more bridges. defense 50 years ago was the first customer of all the technology companies but over the last 25 years, the defense department focused on the large federal contractors. there is a bigger focus on working with early-stage companies. i think national defense has become synonymous with technology. warfare istional heavily influenced and the future is being shaped by new technology. is early-stage companies can play a role. emily: what is your ask? c: it is very hard -- there is no natural fit for companies that small and that -- organizations that small and that big. pathwaysg without fundamentally changing -- having a way to get involved early is critical and that is what this new unit is set up to do. emily: what is the biggest risk to our cyber security right now? marc: the biggest risk

olivia: yeah. indeed.le, here in the u.s., speaking of things changing, we had a revision to last quarter's g.d.p., substantially higher, 3.7%, more than economists estimated. julie: that's helping to sustain a rally for the second straight day. all the major avenues on the back of the big gain yesterday are having their best two days since 2009. cumulatively. the rally over the past two sessions. definitely notable on that basis. what's also notable is what has happened to the nasdaq in particular. look at michael bloomberg terminal, today the nasdaq had been the best performer percentagewise. it retained that measure. in addition it is positive once again on the year. it's the first of the major benchmarks to go positive again after the big drop. as you can plainly see we have not recouped all of the losses over the past few days. in terms of today's session, let's look at the groups in the s&p and where they are headed. again we are looking at a broad base rally today with energy leaving gains. material

olivia: good morning everybody. i'm olivia sterns. matt: i'm matt miller. just a half hour into the trading day. markets down across the board. the s&p 500 down 2/10 of 1%, as is the dow. 3/10 of a down percent. take a look at oil. crude actually trading up a little bit but still holding under $42 a barrel. brent.e a look at well under $49 a barrel. said, we cannot be expected to cut production and hold the oil price up. but they are not doing it at all. then we had another drop in chinese stocks overnight. olivia: a little bit of demand pressure. also the fact that we are opec countries pumping near record levels. rigs in keep adding the u.s. as well. let's take a look at what's moving in the news this morning. iny was the best month almost eight years for new home construction. housing starts last month reached an annual rate of 1.2 million homes. single-family homes led the way. themortgage rates and greater jobs picture are encouraging buyers and builders are stepping up because there is a shortage of homes on the market. walmarts second-quarter results

more on bloomberg in just a minute. ♪ ♪ olivia: welcome back. i am olivia sterns.look at how markets are trading. we go to julie hyman. julie: we are continuing to see a bounce, such as it is. 1089ow fell as much as points when we started. now it is a little under 400. the s&p 500, which was down 2.5t 5.5%, now down about percent. still shortselling but not as sharp as earlier. i want to look at you fix volatility index. we watched as it had its rest week ever -- best week ever. we site upt today, by a record 90% in one single day. the increase in the vix. we call this the fear index. it shows clear updating as we see major averages bounce off the low. if you look at the five-year stillof the fix -- vix, relatively low. we were about 40 earlier, which was the lowest in some time. since is at its highest 2011. not as sharp as earlier. back as weake a step talked to participants and strategists to look at what wall street has to say about the selloff we have seen and the lack of reaction to it thus far. this is the average of the strategists on wall street. 2232.at 2

olivia sterns pulled the short straw. olivia: they called me. tom: now we will take a look at our top headlines. olivia: president obama is taking his bid for the iran nuclear deal to the american people today. in a speech at american university in washington. jewish leaders are still afraid that iran can build atomic weapons but the president how speech is unlikely to change benjamin netanyahu's mind. benjamin netanyahu: no matter how good your intelligence is, no one can credibly make such a claim. how can you block what you do not know? iran can keep the deal or cheat on the deal. either way, it gives a clear path to iran to get the bomb today or hundreds of moms tomorrow. olivia: you can see the president how speech live on bloomberg television at 11:20 kentucky republican voters will not start picking their presidential nominee for nearly six months. but the field of candidates is already being split into front runners and also-rans. rick perry and six other candidates have been pushed into an earlier event. donald trump will be front and c

olivia: coach.ut don'tvice mess up, don't break the law anymore, he sets the right tone at the top. having said that, i think jpmorgan is a lot more than jamie dimon. that is just the defense. the offense is almost $5 billion in expense savings. they have extra earnings leverage that not every bank has and they have gained market share when competitors and markets have been tough. this is the ideal environment for jb morbid try to get additional share in asia, for example. mark: who are some of the other mortgaget have steady streams? been wells fargo has stable. if you look at the earnings report from wells fargo from two decades ago, it is consistent. consistency of strategy has led to can see of earnings. -- has led to consistent of earnings. i think you will be seeing more of jpmorgan and wells fargo. olivia: the only bank you have a higher rating on is citigroup. why is citigroup ahead of jpmorgan -- why is citigroup ahead of jpmorgan? mike in this low rate environment and that seems to be in c

olivia: olivia likes cookie monster.me but he walked up to me on the street and said -- are you -- hans: statler. cookie. tom: four years to learn how to do that. coming speaking of hbo, up, no more muppets are sesame street. if you are fan of "the wire," we will tie you what to expect from "show me a hero" after the break. this is bloomberg "surveillance" streaming on your tablet, phone and bloomberg.com. tom: give me some more cookie monster. olivia: cookie. ♪ tom: good morning. emerging market currency dash to a weaker level. let's get to our top headlines. u.s. officials say islamic state militants probably used mustard gas this week against kurdish forces in iraq. it is the first indication the militant group has obtained banned chemical weapons. the officials say it is likely that islamic state got its hands on the mustard agent in syria. is therent el nino second strongest on record. it could increase rainfall and drought stricken california. el nino is warming pattern in the pacific ocean. it can change when pand

olivia: good morning. i'm olivia sterns. pimm: i'm pimm fox.utes into the trading day. let's take a look at equities -- the dow jones industrial average lower by 26 points. the s&p 500 lower by two points

olivia: good morning, i'm olivia sterns. pimm: i'm pimm fox.at how markets are trading right now. let's look at the u.s. stock market and begin with the s&p 500. again of more than 2%. best buy, netflix and michael kors all leading the as the 500 higher. the dow jones estoril average adding more than 2% right now. olivia: it certainly looks like a bit of a relief rally since we saw the biggest two-day drop in the drop -- drop in the dow. that is bad news for treasuries. yields are creeping up -- the yield on the 10 year note of

i am here with olivia sterns. olivia: i'm in the passenger seat. a quick look at the markets.ally again today under way. the dow is now on track to poses biggest two-day gains since 2008. nasdaq and the s&p also on track, their biggest today games since 2009. a lot of this is on the back of the better than expected reading of second-quarter gdp. the revised numbers showing the economy grew at 3.7% in the second quarter, better than even the top estimate. you're also seeing the move playing out on a treasury market. you can see treasuries are rallying, a turnaround. two point 16%, we started off a week below 2%. the story today might have to be oil. look at the huge surge. i do not think i can recall in on percent move in the price. now back above $42 per barrel. i believe it is the biggest move in three years. indexthe commodity climbing nearly 3% today, now let's take a look at some of the top stories we are following at this hour. the u.s. economy grew faster in the second quarter than previously estimated their gdp rose at an annual rate of 3.7%. the government passes first

olivia: this is the bloomberg market day. mark: good afternoon and thank you for joining us on this market day. this is mark crumpton here with olivia sterns. >> what a turbulent day has been -- a selloff across the board, even if we are off the lows of the session. julie: turbulence indeed. we are seeing stocks move back down a little bit with a loss of 2% across the board. we saw them make a run at recovery and then fail at that. let's look at the s&p 500 to get an idea of what we have seen. we saw it fall as much as about 5.25%. now it's turning back lower. person that bloomberg crunched the numbers and found the last time we saw an intraday swing of this type of magnitude from a loss into a gain was back in 2008. andas down more than 4.5% ended up recovering by 4%. just a little market trivia -- that's when oil below $70 a barrel and bond insurers were trying to submit plans to treasury for a bailout. we have not seen swings like this since that point in time. take a look at the s&p 500 to see where we are on the correcti

olivia: the traffic. matt: if there is an olympic games there -- olivia: questionable whether hosting the olympics translates a real economic growth. stocks firmly in the red this morning after ending last week with slight gains. the s&p is up 2% this year, by hedge funds to oversee $550 billion spent the past month and on trades that would profit from equities. matt: how should you be investing your money right now? joining us to discuss from his office in new jersey is chad. welcome and things for joining us this morning. sentiment has turned negative. even if you have stopped only was it a little bit of gain your today or move sideways. it seems everyone who does not make money off of people buying stocks have soured on equities. chad: good morning. absolutely. the deceleration of global growth is will reported. growth is at 3.3% to 3.5% in 2015 and then expanding. we take a little exception to that. within global growth today is around 2.75% to 3%. it is all based off of the china growth engine that h

olivia:! too! diane: -- me, go. it must be where we this demand on inflation, there are some in the fed that are ok with inflation for longer and others who want to see overheating and overshooting on the target and catch up after cool period. matt: thank you. talking about the possibility of an increase in braids, but maybe if we called it something else -- olivia: such as? matt: rate reduction preparation. olivia: you never like lift off when i use that. matt: lift off sounds too aggressive, don't you think? up, improvement. a tale of two housing improvement chains. we will look at home depot and lowe's. ♪ olivia: good morning. welcome back to "bloomberg market day." i am olivia sterns. matt: i am matt stern. let's get a check with ramy. amy: target posted second-quarter earnings that beat analyst estimates and the reaction is positive, up 4.4%. profit was one dollar -- $1.22 a share versus $1.11 according to data compiled by bloomberg. ceo brian cornell has aimed to cut costs and target says it aims to cut $2 bil

olivia: can i live there? matt: only part your car. olivia: double digits.ould pay $20 or $30. ♪ as parking in major cities is becoming increasingly scarce, developers are charging record prices for spaces in luxury condos. arenew spaces in manhattan charging $1 million for a spot. that is four times the median price for an average home. olivia, you just bought a new at in manhattan. did you get a parking spot? olivia: i did not. maybe i should have tried to negotiate one. clearly it is a hot commodity. $1 million? matt: i can't imagine. some of these condos cost like $47 million. carriver takes care of the and hopefully takes it home every night if i make that much money. aivia: you could probably pay driver on salary to sit outside in the car and drive around looking or a parking lot and whatever the gas costs. matt: i would personally drive someone around and sleep in the car for a whole year for a million dollars. that, too.ould do if anyone needs a driver, call me or call matt. matt: the nanny may be drives to work. olivia: we are speculating. that is a

olivia: thank you so much. for running appeared to help us break it down, that monsanto is no longer pursuing is fit for syngenta. still ahead, tiny eyes in the sky are helping investors make more informed decisions. we'll tell you about the outerspace adventure. i will be back with pimm fox in just a moment. ♪ ♪ olivia: pimm: welcome to "bloomberg market day." ♪ olivia: good morning and welcome back. pimm: we are 90 minutes into the trading day. let's take a look at how markets are trading right now. a rally going on in stocks. the s&p gains 1.5%. dow jones also adding more than 1.5%. the nasdaq up one and three quarters of a percent. also moved higher for monsanto. olivia: before we get to the broader markets, let's check in on monsanto and vi syngenta. men cento is walking away from its bid for syngenta. they were higher on news that bloomberg reported that they had upped its offer for syngenta and syngenta shares

olivia: don't miss it. ♪ olivia: this is the "bloomberg market day." stocks are rallying today. following yesterday's big move higher. julie hyman joins us with a look at what is going on right now. olivia: hang on, julie. we are having a bit of a problem with your audio. pimm: the dow jones industrial up nearly tobout session highs. s&p 500 is up nearly 2%. julie: we figured it out. ok. we are seeing stocks rise to the highs of the session. you see the two-day chart of the s&p. this is yesterday when we saw that latter day part of the surge in the s&p that took us much higher. today, much higher by 6% over the two-day period. the two-day game is set to be the biggest -- gain is set to be the biggest since 2009. let's take a look at some of the best performers. gold. and copper is rebounding. at one point today, it was having its biggest one-day gain ever. let's to go look at my bloomberg terminal. here is the last year for this stock. it is down 75% over the past year. copper is falling, gold is falling, but freeport's decline has far exceeded. one of

olivia: huge. julie: favorite game? olivia: i am more of a nordstrom girl.hought nordstrom was an interesting juxtaposition when you compare their results to what went on at macy's. revising down their forecast for the year, saying they see no sale store growth. pimm: a lot of it has to do with promotional issues related to west coast holdups? olivia: jcpenney is partnering with sapporo. -- sephora. let's take a check of some of the latest headlines. al gore is not running for president. despite a news report on the internet website buzzfeed, to .he contrary motors recalling 73,000 chevy cobalt sedans. may have been built with improperly routed side impact wiring that could prevent .hese airbags from deploying etsy is taking advantage of an irish business law. the online platform for artisans, craft makers, and small businesses is asking users outside the united states to accept a terms of use agreement with etsy in ireland. a change in registration allows the company to shield basic financial information about the units. google and linkedin also use the unl

olivia: good morning. what a wild day on the markets. i'm olivia sterns. pimm: i'm pimm fox. let's take a look at what's going on in new york. u.s. stocks continue to fall. i looked up at our monitor and i saw the dow down more than 1000 points. indeed we are seeing the decline as the day goes on. it fell as much as 100 points. the dow was down 1089. back at least to some extent this morning. all of this means that on a closing basis, we might not technically enter a correction today. unless you are rounding. it is just a amazing the bouncing around we have done during the session. take a look at commodities. i want to point out the movement we are seeing. energy stocks continue to sell up sharply. oil has been trading below $39 a barrel. rob materials is trading at its lowest since 1999. gold futures are even lower. you would think people would be looking for safety. olivia: that's incredible. pimm: i want to bring up a chart to show what started today as a rout. apple shares opening at $92. right now they are trading lower than the close on friday around $104.11. it bounced

i'm olivia sterns. pimm: and i'm pimm fox. olivia: makers of memory chips are sliding today.ulie hyman has the details. micron is affected by the downgraded its the worst performer on the s&p 500 today. downgradingica is the group, saying they are spending too much money on capital expenditures and that they lack discipline on. this is amidst a tough environment for these chipmakers. this chart comes to us from bloomberg intelligence. this is the price to sales ratio of some of the memory makers versus the semi conductor index, say broader measure of the chipmaker. lagged. it has really so you have micron in the blue and pink. held up well and then has fallen as the semi conductor index continues to go higher. memory chipmakers have been hit hard because they are more exposed to personal computers. we all know what has been happening in the market for personal computers. some are also very exposed to asia. company -- the solar initially the stock was higher after it formed an investment deal with goldman sachs to tap a billion dollars in cash and loans, but the stock turned l

olivia: it is hard to keep track of. talking about volatility can live to look at the currency market because it had a crazy move today. 110 -- 1:10 a.m. it the biggest drop in 30 years. currencies are not supposed to act like this. that raises a lot of questions of do we have liquidity in the currency markets. olivia: we have a lot of dollar strength off of the back of this. nasa the stories making headlines at this hour. the u.s. budget deficit will be lower than previously forecast begins octobert 1 brady the shortfall will shrink to $426 billion this year , down to 14 -- $440 billion. situation will get worse by 2018 because of more entitlement spending. olivia: new home sales rebounded in the month of july. that is the biggest gain this year. it comes after new home sales now almost percent in june. is expectedew homes to keep growing because of stronger employment, low mortgage rates are at a lack of homes that are available. alix: on prices in 20 u.s. cities rose in june, and ashley prices rose 4.5%. a limited num

olivia: good morning. i'm olivia sterns. pimm: i'm pimm fox. we are 90 minutes into the trading day. let's take a look at equities -- the dow jones industrial average lower by 26 points. the s&p 500 lower by two points. i would say that has a little to do with the manufacturing reports. but not much movement. olivia: a big earnings day with 30 s&p companies reporting today. earnings numbers are coming in pretty mixed. a little more action in the currency market -- that is pretty much flat also. , the dollarndex dropping from a four-month high and the euro a little stronger but under $1.10. perhaps the real story is the the royal bank of australia left benchmark interest rates unchanged. little movement on oil prices, perhaps a rebound from yesterday's selloff, but a commodity driven currency like the aussie dollar and canadian kurt the taking a hit in recent months. more health care companies are making deals. today, one is excepted while a much larger one is being turned down. team health holdings agreed to aboutc health care for $1.6 billion.

olivia: 22%? when i got on there it was 28%.imm: like many stocks the other day. >> we get some solid data. pimm: is it of it at all possible that the federal reserve raises rates 25 basis points? >> whenever they want. october a wednesday in or thursday in november that nobody has any plans. will it not be a surprise? a it will certainly not be on date that is not a fed meeting. is either the september fed meeting, october, december, what not. they can make emergency moves on an unscheduled basis. they are not going to raise rates. olivia: what is the number one thing you are listening for from jackson hole this week? >> the fisher speech on inflation on saturday. if he says we are a lot longer timeline away from getting our inflation target, that will be a compelling signal to the markets that the fed this not have the gumption to get off of the zero bound. pimm: just to mention that kathleen hays is winding her way, and michael mckee is winding their way to jackson hole. we will have full coverage about the jackson hole meeti

olivia: that is legitimately terrifying. alix: absolutely. olivia: it is that time of year again. back-to-school. it is that time when members of the federal reserve hangout to -- head out to jackson and whole and hang out at the cowboy bar. we are joined by the vice-chairman of the federal department vice chair. erik: as you can see, the mist has burned off of the top of the mountains. we have tom ponied with us. you have been talking recently about something that is very dear to the hearts of our audience, which is changing the way banks are regulated. you are focusing on smaller community banks. hoenig: what we have said is that dodd-frank is a significant piece of legislation. it brings more relation forward. and it does fall unevenly across the banking industry. smaller brinks are more disproportionately affected. they should be exempt from some of the regulatory burden. that is important to dodd-frank and related rules. reporter: it also means how you define a small bag. what you said recently is that size is irrelevant. how do you find the kinds of banks that would be grant

olivia: yes. popcorn.will eat some coming up on the bloomberg market day, president obama is expected to come to the podium any minute now. he will be speaking about his support for the newly negotiated in iran nuclear deal. welcome back. i'm olivia sterns here with pimm fox. we are waiting for president obama to take the stage at american university. there you see a live shot. we are waiting president obama's arrival and his defense of the iran agreement. us about the potential fallout from the iran nuclear deal, if in fact it does go through. is it inevitable saudi arabia starts to develop its own nuclear weapon? that is a possibility. if the agreement stands, the president will have an absolute obligation to help continue to give israel a qualitative up they edge and build gulf states and make them part of a regional effort to combat the spread of iran. iran is not going away as a revolutionary country. that is one of the consequences if the deal goes through. prime minister netanyahu had three

olivia: four at least hope.olatility, breaking through 50 last week that nobody saw coming, it shows a buying opportunity. that manyasset investors are buying as a safe haven is the euro r. the currencies are moving up in tandem with the highest correlation is 2007. the dollar not participating as much in that. you can see that the yen is up and the euro is up versus the dollar. nonetheless, striking the highlights. olivia: let's take a look at this top stories we are watching for this hour. earlier on bloomberg we asked where u.s. stocks are headed, and this is what they said. >> we need time. what happened last week was reflexive. if the market should decline faster than we expect from you will probably need the bottom liquor. but we are in that time of year where the market is u susceptible to decline. olivia: chinese stocks have not yet bottomed out. walmart is spending $1 billion to raise employee wages and give them more training breaks the world's largest retailer has been cutting some workers hours in or

olivia: good morning, i'm olivia sterns. pimm: i'm pimm fox. let's look at how markets are trading right now. let's look at the u.s. stock market and begin with the s&p 500. again of more than 2%. best buy, netflix and michael kors all leading the as the 500 higher. the dow jones estoril average adding more than 2% right now. olivia: it certainly looks like a bit of a relief rally since we saw the biggest two-day drop in the drop -- drop in the dow. that is bad news for treasuries. yields are creeping up -- the --.d on the 10 year note of oil finally catching a bid thomas still below $40 a barrel, a bit least we are seeing of respite to the commodities. pimm: the dollar gaining in value and stocks moving higher. economic eta out this morning -- new homes sales theng in july, a sign market is continuing to grow. seasonally to a adjusted rate of 500-7000, the biggest gain this year. sales account for about 10% of the overall home purchase market. americans are growing more optimistic about the state of the economy. the consumer confidence index c

i heard, olivia, is that okay? >> yes. greg: the thing that freaks out the contestants, the questions, the thing you nailed. >> they are scary, yes. >> look at how miss rhode island did. i'm not sure what happens here. hit it. >> >> we need the people to remind us especially politicians to remind us what to do right and when to do wrong. >> greg: she was trying to describe whether or not the political correctness craze is out of hand and to explain it. what coaching do they give you. >> i think she had the nerves got to her and got a little intention intention intention -- intense and crazy. greg: do you have to wear the crown all of the time? >> i don't. greg: do people make a big deal walking down the street. this is international coverage? >> it just started to get recognize. people are like i know you from some where. did you go to boston university or go to oklahoma and they'll go no. greg: you stand out, you have the blond hair and how tall are you? >> 5-11. greg: and you like the shoes. >> yes. >> where'd you go to

olivia: good morning everybody. i'm olivia sterns. matt: i'm matt miller.rading day. markets down across the board. the s&p 500 down 2/10 of 1%, as is the

olivia: let's get over to julie hyman at the breaking news desk.ulie: the numbers are coming out better than had been estimated. 5.59 -- 5.4 3 million is what economists had estimated. we are seeing the highest level since february of 2007. with some ofstent the other housing data we have gotten recently. it is a 2% increase. this toread through other kinds of spending as people buy things to fill new homes. we talk about new home sales in traction, but existing home sales is still the vast majority of home sales that happen here in the united states. -- to mention and lead economic indicators. worse than estimated. different economic indicators fell and economists were estimating a gain of .2%. i think we will go to a live press conference, jimmy carter and he is speaking right now about his battle with cancer and how he intends to confront it. carter: had a very bad cold. for a physical examination and the mri showed there was a chance and they did a pet scan. that lights up a bad place and it lit up. so they're pretty sure they are onlynce -- th

olivia: perhaps. tom: olivia, thank you so much.s their forecast, the stock is down, it is night and close to what home depot did an hour ago. a really difficult performance. we will see how they do on a conference call. -- i ame they were be sure there will be a lot of questions. of's go to carl riccadonna bloomberg intelligence. where is the american consumer? e american consumer is the core driver of economic activity in the second half of the year, so if more -- if walmart is seeing something that other macroeconomists are not seeing in terms of the second half outlook, that is a troubling prospect. we are three years out in front on this, i do not understand the bifurcation we see in american consumption. it is two americas, and walmart is not getting it done. carl: absolutely, and wage growth has not picked up yet. this is a story that has been well advertised. brendan: certainly don't raise interest rates. carl: once we get later in the cycle, economic recoveries are not evenly distributed. it will trickle down to the part of

greg and olivia, back to you. greg: thank you. i need your help. first, check this out, miss usa, in tulsa, oklahoma do you treat your mayor like this. he was booed at a parade. chime in, olivia. no. i'm neutral on this. he was booed at the dominican day parade. the cheers resumed after he went by. they are upset with mayor deblasio in the dominican community. there is a push to remove the haitians from the dominican. they like fox 5. >> they love you guys, look at that. greg: have you ever seen the mayor of tulsa being booed? >> i think, you know, it is one way to get the point across and hopefully he'll look at the

but $1 billion, olivia? olivia: $500 million cash upfront, $500 million later.runs valeant has been on an acquisition spree. this is just the latest. it is interesting because it takes them from their base of cancer drugs and brings them into the women's medicine. vonnie: and eye treatment has been especially. tom: i would just listen to doctors. i have never seen a drug so ill- received. brendan: the next question is whether it will be covered by insurance. tom: fair. agreed. olivia sterns, on "market makers" this morning on this transaction of valeant and sprout. look at black rock as well with peter hayes. stay with us worldwide. ♪ tom: good morning, everyone. "bloomberg surveillance." a lot going on. futures, -14. -17 was below. i'm watching the russian ruble. jaw-dropping. let's get to top headlines with vonnie quinn. vonnie: islamic state is for a caresponsibly bombing in egypt. 29 people were hurt in the explosion at a government building in cairo. islamic state's message said the attack was vengeance for the execution of six militants. commodities firms

olivia: they have even devalue the currency.he devaluing of the currency of the time was good in the medium-term beverly that in the short term, because it added to the instability. you have to understand the regime we have been in. that is until banks repressing volatility. the minute you have essential markets doing crazy things it becomes very difficult to keep that from spreading to the system, and that is what has happened. the reason why i tell people to be cautious, because i do not think china can come up that easily with a solution overnight. they face a very complicated situation. the financial radar -- the financial economy is not the only thing on their radar. at a muchring adam oate lower level than people have expected. olivia: some say investors were out of their skis on investment, this will what happened to a rate hike. other status of volatility coming out of china. people thattell a caused the global selloff. >> number one repricing of global. people recognize china with weaker. china, brazil russia, turkey. v

olivia: absolutely.s originally from things like health and safety, where it is much more widely accepted. someone out in a construction field, are they suffering from heat stress? people on the battlefield as well. there have been experiments with the u.s. military. area, mclareng applied technologies have done some really interesting experiments. what they've done is try to link jetlagged to concentration levels. these guys are traveling all over the world. whether they are in the pits changing tires, or looking at preliminary data, they need to be completely on it. they analyze their sleep patterns, flight times, and ged when they flew. francine: i'm a little bit creeped out by it and a little bit obsessed. we look up metrics all the time. even ourselves, looking at wearable devices. why is there so much secrecy, because it is a little creepy? olivia: the creepiness, definitely. the second thing is, it could potentially give these companies competitive advantages. they don't want to give their trade s

. >> and one of olivia newton-john's songs gets an update with her daughter. >> you made sure i didn't dress like too much of a stripper. >> now, "e.t." with the latest on today's top stories. >> we are learning more and more about jennifer san on the and justin theroux's new life. >> they kept us waiting a long time. they were engaged three years ago. >> it was worth the wait. here are the new details. >> jen and justin headed to bora bora and brought a lot of friends. they have been together a lot of friends and are much older. why not continue the celebration in the honey mood. jen in the stripes, and justin looks relaxed in shades and a tee and courtney cox who was maid of honor at the secret i dos. the newlyweds getting cozy landed at 5:22 local time. we're told that everyone then said here, to stay at the four seasons bora bora. the villas can cost 12 grand a night. they have a spa that gives couples treatment, a sanctuary, water sports and infiti pool perfect for tossing back dirty martinis. friends crashing the honey mood is a new rule. another rule, if you are going to throw a

also caught up with ice cube and olivia munn.as always, kevin hart was kevin hart. >> you guys get that on camera? do you need that light on? >> this is how kevin and olivia like to mix it up. >> let me pick you up, come on. >> and it didn't take long before he took shots at her nfl super star boyfriend, aaron rodgers. >> you know what the worst part about the packers is? their offense. >> digs. that's a dig. i'm joking. i'm joking. >> i found out that that's just how it is onset. >> yeah. you're my golden nugget. my golden nugget. >> i got to go inside the $16 million mansion in atlanta for this over the top party scene. >> i'm not your servant. >> you are what i say you are. >> olivia, kevin and ice cube are undercover cops. they're trying to catch drug lord benjamin brat. >> again? >> my nerves is bad, man. >> first movie had so much comedy, we had to go and reshoot more action. this time, universal was like, that's not happening. the action has got to definitely keep up with the comedy. >> that's really kevin up there. >> got

." >>> olivia newton-john and wait until you see her new music video with her daughter, chloe. >> here's a peek. >> good-bye, everybody. >> chloe remaking mom's hit song into a strip tease. >> just make sure i didn't dress too much like a stripper. >> behind the scene

." >> and the new remix with olivia newton-john. >> and jennifer aniston's wedding was different than marriage to brad. we look back and see how much jen has changed. plus a marley and me reunion. >>> closed caption provided by -- >>> can you believe it was 35 years ago that olivia newton-john hit number one with that song. her daughter chloe wasn't born yet and she is all grown up. they remake the hit and we take you behind the scenes of their music video. >> he just made sure that i didn't dress like too much of a stripper for video. it was challenging in that area. and i made sure that she sexied it up a little bit. but other than that we're good. ♪ >> the thigh highs and contacts it's a transformation for chloe. it looks like there is more of her these days and nothing like her mom's image. >> she is much more beautiful and she is so talented and has her own sound and i see elements of course. other people see it more i think. >> i do see -- >> she's the modern version. much more with it. >> i feel your breath behind me. >> the once troubled teen who struggled with addiction is ju

you. >> congratulations, olivia.ese kids pulled it off for $75 which is all remarkable and you are all winners because we will give you all the clothing that you chose. you get to all go back to school with a little bit of a head start for day one. congratulations to everybody. thank you all for being a part of it and thank you, june. head to our website, goodmorningamerica.com on yahoo! for some more back-to-school fashion tips and next on "gma," we are not done. country star kip moore is here performing live. ♪ speed don't need no sleep tonight everybody is bopping to the beat just right worry about tomorrow when tomorrow comes tonight we're just worrying about having fun ♪ ♪ because we're the wild ones >>> "gma's" "operation back to school bret brought to you by visionworks. find mor what's happened to snacking? how did it become absent-mindedly eating one after the next, after the next? so predictable and so unsatisfying? what about pulling up a chair, a stool, a beanbag, and actually tasting our food. we are a c

i'm mark crumpton here with olivia sterns. bit of a relief rally, but stocks are off session highs. the dow of 240 points. or 1.5%.f 28 point in the nasdaq up the mos

." >> and up next, olivia newton-john's hit remix with daughter cloe. >> and jennifer aniston's wedding was different than her marriage to brad. we look back and see how much jen has changed. >> i can see it now. >> plus a marley and me reunion. we have our first look behind the scenes at jen and owen wilson's newest comedy straight ahead. >>> closed caption provided by -- wod lloromhi swt.nnspt atno.soouc fa.. dot ghyo ititswi 1 cors ch y rw ch camchsekebeon believe we are magic >>> can you believe it was 35 years ago that olivia newton-john hit number one with that song" magic" from the movie xanadu? her daughter chloe wasn't born yet and she is all grown up. they remake the hit and we take you behind the scenes of their music video. >> she just made sure that i didn't dress like too much of a stripper for video. it was challenging in that area. and i made sure that she sexied it up a little bit. but other than that we're good. right? >> the bustier, the thigh highs, and contacts, it's a total transformation for chloe. it looks like there is more of her these days and nothing like her