olivia sterns is here. return sometime in august. >> joining us right now, "in the loop" anchor betty liu. >> yesterday we had the first aid for the sprint ceo. brian cornell, the guy who ran frito-lay americas at pepsico will be starting his first date on the job, the we have got a big target focus roundtable canasta biases think of i am not going shopping, i'm not here to talk about the company itself. , who formerly worked at j.crew, he is joining gromek,ll as joe the current chairman of tumi. two big retailers. >> instead of a cheeky move for all of these executives to come in, what tom keene should be going on vacation, give us a sense -- what is on a new target ceo's to do list? >> there will be a lot of things. number one obviously is getting over this whole hacking scandal from last year. the second is dealing with canada. canada has been a big problem for target, as you know. the third is looking at the inventory. now you can go to target and buy groceries, back to school supplies. the groceries ha

with me, it is olivia sterns at brendan greeley.arlet fu and adam johnson boycotted this morning. just tragic, but we're here with olivia sterns and brendan greeley. >> we are very happy to be here. there's a lot of news. vladimir putin is praising axon is an old unreliable partner. they began drilling in the ar ctic this weekend, unaffected by stricter sanctions. retalix ory measures are affecting europe. we have a global strategist from jpmorgan who joins us now. so, the question is, to what extent wind lease -- will these sanctions work? >> that is highly unlikely. i was looking at a financial times on friday that showed the huge surge in russia's food imports. pretty much when president clinton took office in 2000. -- president putin took office in 2000. if you look at it before that point, it was absolutely anemic. there -- they are light years beyond where they were. it is bringing up the harsh realities about russia in the 1990's. also, we are light years beyond that. because russians are so used to the hoarding behavior and

right now, olivia sterns.ning about 100 meetings over three continents in two weeks. raise ups expected to to $20 billion. that would make it the largest ipo ever. and raising as much as $345 million to expand its operating business at the huffington post. -- at aol. and the maker of candy crushed saga, it shares go sour. afterigital stock plunged the company cut its outlook for this year. kenya developing new games -- king is developing new games to attract new players. everyone is concerned it will be a one-hit wonder. >> the dynamics of the united kingdom, the consensus call of spring. u.k. forever. u.k. booming. u.k. doing great. and then there is august. is the head of the bank of -- as therk carney head of the bank of england, mark carney, signaled he would not raise rates. ferro joins us from our london newsreel. i think of carl weinberg and i making verynomics clear the consensus call is wrong here. is mark harney with the consensus, a better u.k., or with carl weinberg and those more cautious? >> i th

olivia sterns, thanks.ake a quick break and check in with trish regan for a look ahead at "street smart" at the top of the hour. we will be right back. ♪ >> "street smart" with trish regan comes up at the top of the hour and she joins me now with a preview. earlier today, you spoke to eric schneiderman. >> about the almost $17 billion bank of america is paying. a record fine. i talked to him at length about it. we had an interesting conversation because some of the things i asked him about, you know, he may not have entirely wanted to deal with. for example, the question about what critics have said, is this really fair that you are targeting bank of america at its time this many years after the fact? >> they said you're mike came out. -- your mike came out. covered, newround york and california will get this money. >> new york will get $800 million but a lot of people have raised the question whether or not eric schneiderman -- rather, whether the government in general should be going after bank of america

at my passport and it clearly says olivia sterns.told me that they love my new show pillow --. >> clearly, an emmy has the ability to help make something hot. it makes something that is new even hotter. what about a show that has been around and has low ratings like "30 rock." >> i don't think it adds immediate audience. player, ita new helps you out a lot. i don't think it does that much for you. >> does it do anything for the show for overseas audiences? these are very popular overseas. they watch it both legally and illegally. doesn't that give some sort of cachet? >> not everybody has access to it. watch this. they need to watch. forhe emmys or on monday the first time in 40 years. seth meyers is hosting. what do the emmys do for seth meyers? >> >> he hosted the sp's. this is the first mass-market awards he has done. deal forbecome a big him. it could be great for his late-night show and his brand. >> i will be watching live. berg, thank you. up, alibaba's dealmaker behind the scenes. ♪ >> you're watching "market makers" on bloom

olivia sterns looks at option plans for sotheby's. let's begin with phil mattingly at the white house with the latest on those airstrikes in iraq. good afternoon. >> good afternoon. wasted littletion time making good on president to get rid ofed artillery pieces and iraq. fighter jets dropped 500 pound bombs targeting a single or tillery peace. the reason why? a president related out last night. take a listen. >> in recent days the terrorist 's have continued to move across iraq and have neared a city where american diplomats and civilians serve at our consulates. , i havethe advance directed our military to take targeted strikes against isil convoys, should they move toward the city. we intend to stay vigilant and take action if these terrorist versus threaten our personnel or facilities anywhere in iraq. officials say that didn't fact happen. artillery was targeting kurdish ground forces in an area where u.s. personnel were. that cause the u.s. to launch these strikes. this is the second heart of a multipronged push, the second part

olivia sterns is standing by with details. >> good afternoon. see the equity market drop another bits in the last half-hour. down about 1% or more right now after comments from the polish foreign minister saying that russia military is poised to invade ukraine. couple ofo watching a individual movers for you. mgm, the largest owner of the casinos on the last vegas strip reported second-quarter earnings that beat analyst estimates. gambling rose 6%. macau's unit is losing ground. high rollers are taking cables there. the brand behind share house posted second-quarter off the -- second-quarter profit that missed estimates. we will be on the market again in 30 minutes. more "bottom line" coming up after the break. ♪ >> welcome back to the second half-hour of "bottom line" on new -- on bloomberg television. i'm mark crumpton. thank you for staying with us. let's get a ticket top stories. u.s. service industries such as builders and retailers grew in july since -- at the fastest pace since 2005. the nonmanufacturing index increased to 58.7, exceeding

thank you, olivia sterns. overseas, a controversial russian convoy is on its way to isaine, and russia says it carrying humanitarian aid and is not part of a military operation. joins us from london. tell us more about this convoy. 280t is a convoy of about trucks making their way from moscow to the city of look on task -- look. , if this were a simple matter, in the early hours, tomorrow morning local time, late-night in new york. the only thing is this is not a simple matter because in between moscow and lujan's, the create -- ukrainian border, and that is where things get tricky. >> ukraine has said they will not allow the convoy in. what will happen at the border? >> the russians say it is important to get this aid to the people. this is a city of about 500,000 people that has been surrounded by ukrainian forces for 10 days now without electricity or water. the russians say the aid has to get there quickly. it is not with military accompaniment. they say they have coordinated this with the international co

olivia sterns looks at tax shelters used by the ultra-wealthy. alan mowbray down the -- alan will break down the food and import ban on russia and the u.s.. it is imposing a sweeping ban from the u.s. and europe. joined on the phone with the very latest. how are the russian people reacting to the news? are they are likely to see food shortages? >> the government reassured the russians, saying that there will not be any food shortages. russia would not be going back to the soviet or the early 1990's type shortages. there are concerns that one of the biggest and publicly traded , whichant holdings manages the tgi friday's franchise in russia said the government a on food imports would cause difficult situations for restaurant businesses. there is concern. >> do we have ideas of how investors are reacting? index fellian market to a three-month low, led by the biggest russian retailers. some of them falling more than 5%. investors are concerned about this. that the import ban would hurt the earnings of the biggest russian retailers as they scramble t

olivia sterns of lumbered news.ill meet the co-owner of one of the world's most famous philly restaurants in the country. how he grew his brand from one store to a national brand. philly cheese steaks. that is next. ♪ >> this is "taking stock." i am pimm fox. according to the department of homeland security, nearly $2 billion worth of counterfeit goods was seized in 2013. that is a fraction of what enters the country and is sold. document security systems can combat this. it has launched authentigard. it can scan websites and telephone are selling counterfeit -- and tell if they are selling counterfeit goods. and growing every day. it is something like number --5% all manufactured items are counterfeit. it is a huge market and it is growing. it is growing every day. you hear stories all the time of 95% of luxury items on certain websites are counterfeit. >> where are we seeing these? >> it is absolutely everything. goods but it is an absolutely anything that you buy. if you're willing to buy it, they are willing to

i olivia sterns that's good you caught up in the final hour of the session.ure across the benchmark indexes. the s&p and the dow in the red. the s&p within four points of its record close yesterday. the dow still holding above 17,000. the nasdaq up by about .25%. all this comes as we heard from janet yellen this morning, the much-awaited speech on the labor market, saying there's still remains some slack that she is still worried about. to test it is friday, and we're looking at the ongoing drought in california and subsequent water spending plan helping to lift water etf's up by 5% this month. but it is more complicated than it looks. we have our expert here to explain. ?ow does one invest in water we do not traditionally think of it as a commodity. it is not something you can trade on the cme. how does this work? >> it is not like oil or natural gas. there could be someday futures on water. it is not out of the question heard it could be called the ultimate commodity eventually. as of now, this is like oil explorers where you go to the stock market and i ca

i am olivia sterns. inning you caught up on where stocks are trading.higher across the board. the s&p and dow both within one percent of the all-time record highs as tensions appear to ease over the tensions in iraq as the kurds moved to retake the mosul dam./ ukraine easing. overall equity markets higher. not just equity markets higher. this morning we got a report that confidence among homebuilders is that the highest level in seven months. joining me on what this means joins us fromho princeton. the numbers show the industry is making headway after weakness earlier this year. should we stick this is a time -- take this as a sign of a turnaround? >> this is a group looking for anything positive to drive them. you have to remember that confidence index measures builder sentiment. we are looking at a time now versus a couple of months ago when it was really well. i think the gains the past couple of months were driven by improved the for market. confidence is improving. still patchy recovery and housing increased did increase in the midwest and northeas

i'm olivia sterns.ets are higher, the s&p edging towards its all-time record high this morning. inflation numbers this morning showing inflation is pretty much some dude, lowest level in five months. good news in the housing market, housing starts jumping to an eight-month high. one stock we are watching is bhp billiton, the billion-dollar mining company has announced a spinoff of its aluminum, coal, and silver assets. the new company could be worth $15 billion, which would make it the mining sector's biggest spinoff in a decade. for more, i am joined by our market correspondent alex neil. so why now? -- alix steel. >> sanford bernstein came out and send that this could mark the end of the super commodity cycle. it is different when it comes to an actual company making a choice. 35%.n on invested capital, in 2013, 13%. we havethat is because seen lackluster demand, oversupply coming on the market from years of investing so much capital into these resources, creating a glut in the market. there is no dem

olivia sterns, thank you so much. only a few days left of the annual burning man gathering.es it take to pull off the event here after year? that and more when "bloomberg west" returns. ♪ >> i am emily chang. this is "bloomberg west." is showing big growth. shares are soaring after revenue was up 53% and the company posted a gain in profit. cory johnson is back with more. >> i think of viva as the salesforce as the pharma industry. right -- is that the right way to think about your company? >> the way to think about it, we are delivering the industry clad for life sciences. our customers are people like pfizer, novartis, and we are delivering cloud solutions to help them with their critical problems. these companies are trying to extend human life. them do that by helping them with technology that helps them develop drugs faster and bring them to market more effectively. transform anto industry, a specific industry with clouds technology. study thata demonstrated this notion of how the software industry works. it really blew my mind about the specificity. industry specific s

olivia sterns joins me now with more. mark, you arel, probably thinking, is this about tax inversion? it is not. it is really a big bet on one drug, which treats a rare type of lung disease, the so-called orphan disease, and that means it has a lot of pricing power. it has the designation from the fda and is already a drug that has been approved by regulators in canada, the u.k., europe, and in japan. it is a big bet on this one drug with a lot of pricing power. it is also a push into holman ary -- pulmonary. the company wants to push more into their respiratory business. they already have a few business start.th intermune to finally, this is the kind of acquisition we have come to expect from the pharma industry that roche has indicated they are looking to do, instead of companies spending billions of dollars to invest in their own research and development with no guarantees of striking gold. that is what they are getting here, this drug that is on track to be cleared by the fda later this fall. >> talk to us about that

i am olivia sterns in for adam johnson.down -- exclusive interview with bob benmosche about stepping down as head of aig after staring the insurance giant through the financial crisis. what happens when the cost of a nation's central government services are shifted to the poor? the gop has the house and control, so what has speaker john boehner so worried? in motors, the 2015 mustang

julie hyman and olivia sterns joining us this morning. let's start with number 10, lions gate.st-quarter earnings that beat wall street estimates. thenue fell short as company only released two movies during the quarter compared to three the year before. >> number nine, gap. i was talking about a peril not being a strong back to school, but cap -- i was talking about apparel not being as strong back-to-school, but they reported a rise last month. they forecast second-quarter earnings above wall street estimates. >> number eight, we are all worried about ebola. they may have a cure. the fda paved the way for the vancouver company to possibly give its experimental drug to people infected. shares surging in the premarket and up nearly 62% over the last water weeks. >> number seven is exxon mobil. sanctions against the russian oil industry having no impact on the company. they will start drilling a well in the arctic ocean tomorrow according to the russian government. sanctions restricting the export of equipment do not import -- affect their plans because they signed the contract

to olivia sterns and matthew g. miller very we are a few minutes away from the opening bill.pening bell. stocks you will not want to miss, right after this break. ♪ >> welcome back. you are "in the loop." bloomberg television is on the markets, and we want to give you the latest in futures in the final moments before the opening bell. we saw jobless claims come in about half an hour ago -- excuse me, an hour ago. an 8.5 year low for jobless claims. the markets again in 30 minutes. let's count down to the opening with the top 10. these are the only stories you need to know today. julie hyman joins me, and our markets reporter, olivia sterns, as well. 11 --al corporation zones carnival corporation owns 11 cruise lines. the firm cited valuation improving trend in expectation for yield improvement. >> number nine is viacom, despite eating behind the biggest movie of the summer -- this -- despite being behind the ,iggest movie of the summer m talks office revenue dropped more than it had anticipated. >> number eight is when these -- is wendy's. they reaffirm the 2014 earnings and

for more, i want to bring in olivia sterns.w about the spending jpmorgan and other companies have put in place to try to defend themselves against the cyberattacks. >> jpmorgan has made a rare move going public in saying how much they are spending on cybersecurity. very few companies disclose that number because the thinking is any information public about how much they are spending to protect themselves or anything they are doing could make them more vulnerable. jpmorgan has been attacked. they are saying they will up their security -- spending on cybersecurity this year. they will have spent about $250 million by the end of 2014 on cybersecurity. that sounds like a lot, but for jpmorgan, it is about 1% of the net income this year. it is about .5% of the total global staff of jpmorgan. they will have 1000 people working on it. quite paltry considering they're paying out $13 billion claims to the government. >> should they be spending more? >> they are spinning a healthy amount. companies don't disclose it individually. i did f

olivia sterns crunches the numbers. of the criticsry and millionaires. we begin at the white house with peter cook and late developments on ukraine and britain where -- raising the terror level. >> good afternoon. the terror level from severe to substantial, the second-highest level and the u.k. terror threat system. we are not doing the same here according to jeh johnson his says there is no credible threat but clearly u.s. officials have talked to u.k. counterparts about what is happening there. the british prime minister talking about the decision today and talking about the general generational struggle. the particular worry, the 500 or its war so that have gone to theory a and a rock. worried they could come back to the united income. talked about this is the biggest terror threat phrasing -- facing the u.k. ever. >> we are facing a terrorist organization not being hosted in a country but seeking to establish and violently expand its own terrorist threat. extending credit to the turkish border, we could be facing a terrorist threats on the shores of

. ♪ >> coming up at the top of the hour here on bloomberg "elevision, it is "money clip, with olivia sterns give us a glimpse of what is coming. >> i am sure you are aware of the meeting on the sidelines between the presidents of ukraine and russia. it made for a lot of awkward photo ops. you see one there. a lot of gesturing, trying to get the men close to one another. earlier today, ukraine's army said that they captured several russian paramilitary numbers -- >> that wandered across the border. >> perhaps they were paragliding and accidentally got -- >> blown over. >> you would think they would be pretty clear on where that porter was. -- border was. >> you would think. we will also be talking about your favorite story, our favorites story. to canada. moving why is warren buffett getting involved? we will have excerpts from your conversation with the occasion -- the canadian economist jack minsk. we will find out why warren buffett is getting involved -- >> y? he is getting a 9% dividend. that is why. >> and we like to have a little fun on "money clip." we have the best video of the day

i am olivia sterns. 30 minutes into the trading day.e rise amid optimism that tension between russia and ukraine could ease. optimism that american air will push back militants in iraq. this comes after a strong rally friday. let's show you but is having on the treasury markets. selling off a little bit with yields ever so slightly higher. ten-year trading at 2.43%> approaching the lowest level in nearly a year. is easy to think treasuries are overpriced if you look at yields historically. they look cheap if you compare them to their peers across the pond. and have a bonds look at why some of the biggest bond buyers think u.s. debt yields could go lower. help me understand. conventional wisdom is that if the fed is tightening, yields could go up. why are people betting they could go lower? >> you have central banks around the world that are trying to boost growth through similar kinds of stimulus measures. you have the european central bank, you have china, they have been increasing stimulus. there isink about it, a lot of extra money t

bloomberg's olivia sterns spoke to the 38-year-old charged with guiding the company transition. what he had to say. we have many types of players approaching us to partner with deep waters, shallow waters, shale plates. >> come on, name a few. >> there are dozens and hundreds of companies we have met over the last year and we look forward to landing some business opportunities that are profitable for mexico, for our partners, and for the company and the next year. >> is already public you have been in talks with chevron. how are those talks going? have mou's with all the major international oil companies. areously, the majors interested mostly to invest in the deep waters of the gulf of mexico. x, we have had exploratory success. withve been very efficient our exploratory wells. but we do not necessarily have the expertise to develop those projects and bring them into production in a relatively quick period of time. done up onnies have the northern side of the gulf of mexico, the american side, and these are players suitable for us to work with on this. joins us now.ns it is int

joining me, olivia sterns. scarlet fu is off. adam johnson is on assignment. are both on vacation. let's get the morning raid, here is brendan greeley. >> germany is underperforming spain. the engines buttered in the second quarter. have deemed food and cisco out before the bell. pace one of my favorite companies not based in the valley. >> no idea what he said. >> they host websites. so, they h

pemext was the ceo of speaking to olivia sterns. coca-cola gets an energy boost.t. ♪ >> welcome back. coca-cola has shelled out more than $2 billion to buy a stake in monster beverage. it has turned the owners of the company into billionaires. what do we know about these billionaires who bought this business? they backed into this business and purchased a publicly traded company that was indebted. it was a juice company. they added monster beverage to the mix after they saw the success of red bull. they eventually change the name to monster because they had seen the product was doing so much better. >> there is an argument that they are not billionaires. tracking down their fortune as challenging. >> they are a publicly traded company. wealthy people have elaborated holding structures. , approximately 9 million shares, it is under dispute. you have to do your research well. do control the shares. how many of the shares they control -- you have to do your investigation. they claim if they sold the shares, they would be taxed, so they are not really worth a billion

>> welcome to "money clip," where we tie together the best stories and video in business i am olivia sterns in today for adam johnson. here is the rundown. in tech among hello as a new -- intech, paolo has a new shirt. businesses heading up north to avoid taxes. is canada the new hotspot for inversion? julia louis dreyfus gets a wet one from the star of breaking bad. flying cars seem like a an

thank you very much, olivia sterns. i was pausing for the moving and shaking intro there.ballmer is our mover and shaker. he made his public debut yesterday, paying $2 billion for.the low scentless clippers he talked about basketball -- for the los angeles clippers. he talked about oscar ball with trish regan but was also asked about microsoft's future. >> there are things that the company has to do for its future. of that under the role mobile-first, cloud-first. to do that will require new skills, hardware sales, hardware new places to go. he will describe how he wants to get their. >> bloomberg news managing editor tom giles is here with more on microsoft. he has our tech coverage. what do you think about ballmer's comments about microsoft? we will show the entire interview on "street smart." trish regan is flying back from l.a. right now. >> socgen nadella has come in with a very different management style and different outlook on things. very understated. you don't have the bombastic running around just a condition that you had under ballmer. different executive and y

i am olivia sterns. we are about 30 minutes into the trading day.where stocks are trading right now. equity markets are broadly trading a little higher today after yesterday's decline with investors focused on retail sales that came out a little soft this morning, showing they are barely growing in the month of july and amidst tepid wage growth. investors are focused on earnings. this morning, soft growth from both deere and macy's, and keeping an eye out from -- for reports from cisco after the bell. the yield on the 10-year treasury note down by about two basis points, trading that 2.4256%, the lowest level in a year. sticking with bonds, it is a tough year for the so-called bond king him bill gross. his total return fund has lagged peers and seen 13 months of stalled growth. joining me now if they look about what this says about sherry g is bloomberg news -- strategy is bloomberg news' susan walker. he has been betting on the short end of the curve. what does this tell you about how his strategy has changed? >> his strategy has not changed, per s

i am olivia sterns in for adam johnson. rundown -- our exclusive interview with bob benmosche about stepping down as head of aig after staring the insurance giant through the financial crisis. what happens when the cost of a nation's central government services are shifted to the poor? the gop has the house and control, so what has speaker john boehner so worried?

olivia sterns has been looking at the cost of cyber security and joins us from new york.gan had been preparing. they were spending like a quarter of a billion dollars. >> it will be a quarter of a billion dollars by the end of 2014. up 25% from they're going to 2013. have about 1000 staff specifically dedicated to cyber security. it is rare that they have gone public with this type of information. companies very rarely break down specifically with their spending on cyber security because the thinking is any information just makes them more vulnerable to an attack. i did find some information , how much by sector different sectors are spending on cyber security infrastructure. it turns out that financials spent more than $10 billion, information technology companies just behind them. health care, energy, defense all lower. a fraction of that is spent on water and waste. financials are clearly a popular target. also spending the most to defend themselves. >> this was detailed in a bloomberg businessweek story. it appears that these hacks are all related, that this was a lar

i'm olivia sterns. let's get you caught up with where stocks ended, the s&p 500 closing above 1992.ow jones closing above the 17,000. nasdaq nearly at a 14-year high. more "bloomberg west" after the break. ♪ >> you are watching "bloomberg west." we focus on innovation, technology, and the future of business. i'm emily chang. the race to dominate mobile payments is getting more intense. last week amazon announced local register, a new mobile payment device, to compete with square, paypal, and intuit. paypal may not be part of ebay for much longer, according to a report. ebay is reportedly telling potential candidates for the paypal ceo job that it may be spinning off the business next year. joining me now is the former square coo, also a member of the paypal mafia. what do you know? is ebay telling people they will spin it off? >> i don't have unique information. i think it is a good idea. i think i have a better solution, which is to rebrand the company, change the logos, change the paint and the t-shirts. you get the same value as spinning off to paypal. change ebay to paypal. just

olivia sterns has the details of his latest holdings. >> carl icahn, the billionaire activist investorannounced gannett, then media company, and his urge splitting the company. they have already decided to split off their publishing from their broadcasting. if they do so, they would be following in the footsteps of other media conglomerates such as news corp. and tribune that have split publishing from broadcasting. carl icahn says this steak was bought in gannett before the company announced their plans to split it up. the thinking being if carl icahn supports the split, that will increase the likelihood that if a deal is done that gannett up. carl icahn announcing nearly a 7% stake in gannett, saying he will hold talks with management and will urge the splitting of the company. >> carl icahn one his 13-f filin gs. according to one researcher, there are over 31,000 private aircraft worldwide. many of these planes go unused for a long time. to help withants that. they offer private jets anywhere in the world on a moments notice, even with discounts. i am joined by the founder, sergey p

. >> olivia sterns joins us now. this is a major landmark. why now?point where they felt like the energy industry had hit a breaking point. oil production is back down to where it was in 1990. 2.5 million barrels per day. this is despite the fact they have been investing more and more money into extraction and exploration and they have been hiring more and more people. they have realized that they need the money, the foreign expertise to try to trap these -- cap these unproven reserves. of the entirehird mexican federal budget. it is the largest company in mexico. they feel they had a breaking point. they feel there are 115 billion dollars of potential reserves in the country. they have just begun to scratch the surface. >> or the ocean floor. [laughter] >> what are their immediate plans? >> they hope to get plans -- started right away. they are hoping to have 10 joint ventures in place by 2015 with some of the major foreign oil companies we just mentioned. in total, they hope it will add $50 billion in foreign investment by 2020. they said it will ad

[laughter] olivia sterns, alix sherman is sticking with us.ers" will be right back. ♪ >> coming up. how to become a millionaire in 1000 days. "getuthor of the book stuff done." it is not really stuff. my producers tell me i cannot say the s-word on cable television. stay with us. ♪ >> welcome back to "market makers." us heresherman is with this hour. is what alex and some canadians call thursday. >> that's right. what is wednesday? >> hum day. founded a social media company and now he is finishing up his tour. the title of his new book "getting stuff done." is that really all it takes? , matt, has ad here hard time getting things done. >> i procrastinate. there is a lot of lessons in notbook but one of them is being scared of failure. it's all about taking more risks and thinking about life a little bit differently. >> you live an interesting life. you are a celebrity chef for billionaire -- yes, i am 34 although i may look a little bit older. i have cooked for billionaires. >> how did you land that gig? >> a bit of the luck of the irish. i we

olivia sterns is with us. scarlet fu is off today. what did you do? out of control. unbelievable. >> did you have oxygen? you do look like tom cruise. >> yeah. >> i will admit, there was one point in the middle of doing multiple loops, we did for loops , i said, can we go steady here for a second? he said, yeah, me too.

joining me is adam johnson and olivia sterns. the morning brief. >> nothing reads about this. starting with signs of we -- weakness across a jeff. drops. gdp -- weakness across europe. contraction since the tsunami. >> half of america. >>

olivia sterns has more on this. >> i am not sure that he lives he was thereit, for the heydays from 1996o 2010. this is when the stock peaked. since he left, the stock has fallen 80%. this is a very troubling tenure for thomas johnson. thatnalyst tweeted out this is the worst 10 year in specialty up peril retail history. margins shrank from 16% when he left to -8%. they are losing money now. trish said that american apparel lost $20 million, they lost $37 million. this was better than analysts had expected. sales were down 13%. wonder, what a sign of desperation is pointing to when what other tricks you have in your bag is bringing back your old ceo when things used to be better and it is an entirely different retail environment now than five years ago. >> shares are up about 10% today. investors are excited that they are taking a page from the book of jcpenney. they hope that the former ceo has the magic touch. a lot of analysts are skeptical. one said that the ceo of change may not help much. but were known for basics, consumers don't want basics anymore. the market has changed. teenag

olivia sterns. >> i should make this about food prices, but it is about geopolitical concerns. in asia we saw asian stocks broadly lower on the news that president obama has authorized airstrikes against militants in iraq that are fighting against the iraqi government. in europe, stocks are fluctuating right now, but we are down for the week. this is the first time we've seen back-to-back losses in european stocks since march. the dax is down 11% since hitting a record high. in paris, down from a six-month high in june. russianct of the sanctions and also the fact that italy has slipped into recession , we learned this week. we got out of germany as well. in the u.s., stocks are a little higher. again, this looks like it is on geopolitical news. a russian news agency is reporting that russia is seeking a de-escalation over the crisis in the ukraine, some perhaps that is helping. afterp is down right now hitting its record high two weeks ago on july 24. alix, you like to talk about below the- it is 100-day average for the first time since april. the dow is trading at its 200-day

olivia sterns has been digging into the retailer.ansition the company is trying to make here? >> they are doing what a lot of retailers are doing. traditionally, you think ralph lauren is a department store staple. we know football is falling in malls. if you sell wholesale -- footfall is falling in malls. if you sell wholesale, you lose margins. the majority is not coming from retail. a couple euros, we will see 60% of sales coming out of retail -- years, you we will see 60% of sales coming out of retail. >> is america a high street culture? you know what i'm talking about. people walk the street and stop in at stores in england. years and years, america has been a mall culture. new york is a high street culture. parts of los angeles are. is over there.it >> this gets to the big issue. realized,lers have spend big on the flagship. they are opening the first polo flagship store in new york. >> does that mean they wind up producing real estate somewhat and putting more money into the big locations? money into big locations and more in

. -- olivia sterns joins us live more. welcome. good monday morning. so nice to see you. why intermune? big bet on a drug that treats a rare long disease. the fda has already designated the breakthrough category. it has got a lot of pricing power. it is a disease that kills about 40,000 americans per year. the other reason is this is -- gets roche further. the asthmao build jokes a section of the business. the third reason is this is exactly the kind of old on acquisition we knew that roche and a lot of other players in the industry are looking to do instead of paying a billion dollars without any guarantee, they want to buy up their pipelines and buy jugs in late stage development. that is what they have got here. this drug is already on the market. it is a guarantee for you much that it will yet the green light in the u.s. about a billion dollars by 2020. >> what does that say about the price? what are people paying lately? what struck me was all cash. that is interesting. >> yes. roche has a lot of cash. their cash flow for the first half of the year. they have got ple

olivia sterns, thank you. >> our twitter question of the day. we go back to the president.he faces in this august. what is the president's biggest crisis? this is incredible. adam, sixe had, months ago was totally different. >> completely. >> and you can add domestic issues to the table as well. ferguson, missouri. the nation watches the military police response to protesters. ♪ >> this is "bloomberg surveillance." i'm scarlet fu with tom keene and adam johnson. let's get you some company news. there was a second player in the running for ge's business. electrolux would like to buy the unit. quirky iscalled interested as well. the unit is profitable, but they want to focus on other areas. employees will not have to work opening and closing shifts back to back anymore. thanompany notified more 130 thousand u.s. employees about the change in any mail today. ,000 u.s. employees about the change in an e-mail today. carl icahn has taken a 7% claim in gannett. >> i have something i have to talk about. a classic car has been optioned for a classic price. this is unbelievable. geo

i want to bring in bloomberg's olivia sterns, digging deeper into retailers numbers. lauren?h >> sales are expected to grow by about seven percent. that is good. it has been an issue for the past year. the stock has been an issue today. margins will continue falling further. think aboutback and why margins are falling. in the bigger picture of the past couple of years, this is a staple of department stores. we know nobody is going to the mall anymore. department stores are struggling to what ralph lauren has been trying to do is shift the balance in the revenue stream. from ave been going majority wholesale business to a majority retail business. in a couple of years, he thinks that portion will be 60% of their business. that is better because you get much better margins than selling directly to consumers. they do toe will fatten the margins up? >> they are actually trying to price up. they're trying to push further in the higher end. raising prices and in particular, they are taking a cue here and trying to push forward into luxury accessories and handbags. they now have a b

olivia sterns joining me here. i want to start with american eagle at number 10.-quarter earnings fell, a slump in same quarter sales. also issued a forecast in line with estimates. a tough environment right now. take it away. , walgreens.ne the shakeup was caused by a $1 billion forecasting error. this is according to a story in the wall street journal this morning. the cfo reportedly cut the forecast for earnings by more than $1 billion in july. both the cfo and chief of pharmacy were out the door. at&t, theeight, carrier out to beat google in the race to get the fastest internet speeds in silicon valley. it is working on his giga power service, the first city in california to get the service. >> number seven is microsoft. steve ballmer resigning from the company's board eight months after stepping down as ceo. the move ends more than three decades of direct involvement. ballmer still remains microsoft's top individual shareholder. 30 seconds after in an exclusive phone interview and he said, i still want to remain a really strong shareholder at microsoft and i

olivia sterns and julie hyman join in.the retail giant announcing this morning it is opening a fulfillment center in hell for you. the company opened its first center in the state less than 10 years ago. amazon shares are down nearly 20% so far this year, olivia. >> number nine, mark, the second-largest u.s. drugmaker won u.s. approval for a new insomnia drugs. the sleeping pills would have fewer side effects than review spells like ambien. i am also hoping they have fewer side effects. >> a lot of people do. >> number eight is kohl's. second-quarter earnings beat analysts' estimates. lower incentives make up for decline in sales. ceo kevin marshall said sales improve as the quarter progressed. fax number seven, -- >> at number seven, the fuel cell company sales more than doubled. plug was better than a year earlier. >> and the bio jet firm announcing disappointing results for a late stage trial that the blood cancer treatment. the recall involves lots of -- lots that were distributed in 14 countries. plunging five, noodle

bloomberg television is on the markets and olivia sterns has more.raight into derivatives. it is time for today's options in sight. joining me now is baycrest partners derivatives strategist [indiscernible] betweenfluctuated today gains and losses ahead of the fed minutes due out at 2:00 p.m. what do you see in the options market? >> vix options are active. the september 22 calls [indiscernible] vix trading around 12. anticipated,what because the geopolitical risks have not really escalated. jackson hole this friday. i think some players are looking at the september fomc meeting. this is not surprising. >> perhaps volatility would pick up this afternoon? >> that might be the case. particularly we are looking at the next september meeting. >> and perhaps simply holding their breath for the jackson hole meeting. and that labor market, which we can't wait for from janet yellen. apple shares hitting a high since -- for the first time since september 2012. what response are you seeing in actual options -- apple options? >> calls, almost twice as many. >>

olivia sterns joining us.eems to be one of really big companies really invested in finding a vaccine or cure. >> is great news they're going to be the first big pharmaceutical company to be testing their vaccine on humans. let me run you through what is out there so far. simple answer is there's nothing that has been approved or proven to work. there is no vaccine. on the drug side, the drug that is front and center is called zmapp, that is what was given to those two americans who were discharged from the hospital after being infected with ebola. we can't say they were cured from ebola. mapp is made by pharmaceuticals. of can see all of the list companies on the screen. on the vaccine side, a comedy based in iowa also -- a company based in iowa also working on the vaccine. simply, the economics do not work. this is a very rare disease that treats a very poor patient population and remote parts of the world and there isn't a lot of money in it. >> is that to say the work that alexa smith kline is doing in its