Morning. It is so vast that the Vice President of the united dates jumping into help here we will hear that plan coming up. Stephanie until then, ill give you the top news stories for the morning. I mentioned it earlier. Stocks in china earlier today. The benchmark shanghai composite index, 8. 5 , the most since 2007. Investors are growing concerns the Chinese Government may end those unprecedented steps it took to prop up share prices. Earlier this year on bloomberg television, the head of the council on Foreign Relations call that a nightmare scenario for chinese leadership. Where does the government and this party get its legitimacy . The answer is that they cannot quite figure it out. They have got a real problem on their hands and they do not quite know what to do it that is why you see massive intervention. This is a serious political problem. Stephanie let me break it down. From july 8 through this past friday, the shanghai rebounded 15 , more than 1400 stocks, were allowed to stop trading in the government banned big shareholders from selling. Talk about changing the rules in the middle of the game. It has been challenging. Another big takeover in the health care industry. An American Drug maker agreed to by the American Drug is this from allegan. The price below more than 40 main dollars in stocks. Also withdrawing the stock oh stock offer from another. Matt president obama arrived in ethiopia last night. That was ethiopias Prime Minister. They have in a u. S. Partner in the fight against terrorism. President obama made it clear he raised concerns. President obama we do not approve cooperation and advance the very interests you talk about by staying away. It has to be a conversation. I think the Prime Minister will indicate i do not bite my tongue too much when it comes to these issues. Matt human Rights Groups accuse ethiopia of using security concerns to stifle basic freedom. A record fine for failing to complete safety recalls involving more than 11 million vehicles area the automaker will pay more than 105 main dollars, the most ever in a civil case. Fiat chrysler will have two hilar higher in independent model and bracelet and from the outside the the government will buy back one half a million vehicles with defective suspensions. And crisp room of great chris brom dominated the race and ended up winning, more than 2000 miles in three weeks. I do not know to pronounce his name because he is a cyclist. Stephanie i know who Lance Armstrong is. Matt i feel like that is a different name to other pro cyclists. Just two. Stephanie cant do that right now. Matt that is my point. Lets get to the five stephanie i do not think i can mention i will move on. Not because i cannot think of other ballerinas, but because i need to get you to your file top five things of the morning. I will rattle off ballerinas and bicyclists cyclists, like it is my job. Number one, it all started in china today. Stocks in the region tumbled the most since february 2007. The shanghai composite index launched 8. 5 on concerns that recent intervention by the government to prop up markets is unsustainable. The newsletter equities in europe lower which is weighing on the dollar and u. S. At your spirit for more on this situation, we have got to take you there. Our beijing bureau chief is on the phone in beijing. Talk to us about what is going on. What is what is the sentiment and what are investors telling you . Anyone who says they know what is going on in china, they are either really deluded or they are probably lying or what we know is on friday, a senior government officials as it looks like things were stabilizing in the government decision now was how to get out of the market. The wisdom on the street now is maybe they used often little bit and this was the result, suggesting the rally we had seen in the last couple of weeks was backed by the government and there really was more room for this market to keep going down. Stephanie forget buyers and sellers aired if you are saying anyone who knows what is going on the market is delusional or lying isnt that enough of a reason to simply get out . Collects the government stake a lot of credibility on this. The media several months ago basically said the market had a long way to run very you are an investor any see them saying Something Like that. It is safe to say Warren BuffettsValue Investing is both have not gone down into the chinese market. When things start to fall, they panic and rush for the exit. Matt i will point out the shanghai composite is still up 15 year to date. There is still a big game and we have seen a big trap in the last few weeks and last couple of months, though we saw massive clients. Stephanie if you saw an iron that and see, look at how email he cracked this point and you can ride it out, but if you are like most investors, you do not want to go through the right. You can the big issue people look at is the ratio. 72 was last week. The rest hundred was 20. If you look at the fundamentals here, you have to have still in your gut to hang in the market. There are heavy on leverage and they put people in here looking for quick games. Just look at some of the fundamental numbers and it makes you worry there is still a lot more room to go for this market to keep going down. Matt they made a lot of money last year. Stephanie thank you for joining us. Matt a big 40 million deal this morning, green to bother generic drug business of allegan for cash and stock. We turn to hammond, who has been all over this story. We knew another big one was coming here. We did know another big one was coming. There is always another big one coming particularly in this picture the generic pharmaceutical world where we see sale after sale. Matt everybody wants to nurse because this is where you make the catch . . Is a business where the markets are not huge but you have these existing distribution networks. You plug the new product into the network and increase yours your position in the market and their scale. Another big Generics Company and allergan is now by a huge 45 billion. Matt where does this place the israeli drugmaker . Based in israel, most of the customers are in the u. S. Cbs it gives them a large footprint here and actually brings in i think it is about 1000 new generic products allergan already has in that portfolio. It also means it is an even figure competitor to them, who has a very tortured relationship. Stephanie bigger is better in this industry because then he will control the market. Exactly. Allergan is two companies. Hugely profitable, something worth make margins, then it has generics. Very hard to make huge margins on it. Yes, it is all about scale. Very open for a number of years. This really takes them from being a great player to one of the very top players. Matt thank you very much. Talking about the maker of botox getting hot. Fear chrysler getting a big slap on the hand here federal regulators are finding them 29 and it is a record penalty for a civil case for failing to complete 23 safety recalls covering 11 million vehicles. The come is trading lower in the premarket and is also having an outside monitor installed, an independent monitor. The trust is broken down so much that they will stick someone in from outside like you are iran china to make Nuclear Weapons and she will watch to make sure you do things oks far as recall her spirit recalls. Stephanie julie hyman is in the newsroom with this. I have talking earnings here. Ubs, swiss Bank Reported secondquarter profits that beat analyst estimates and Management Funds for the wealthy, more than doubling. Also equity trading roast to the highest in three years. 1. 26 billion in u. S. Dollars. Ubs is the world pluss biggest manager of money, focusing on expense expanding that. All of this said, shares are trading lower switzerland and it also looks like the u. S. Shares are lower in the premarket. I was losing track because i was focused on my favorite cyclist as well as theater really whenever two. Stephanie i have got to take you from that to number five. Goldman sachs, berkshire hathaway, and apple are few of the companies coming together for the sake of Climate Change. Executives from 13 major u. S. Corporations will announce today at least 140 billion in new investments to decrease their carbon footprint. The president of the council for relations spoke. This is a lot about china and india. If Neither China nor india adopts serious national programs, global efforts will be obliterated. Would like for them to meet political professionals to make sure they are all aware Climate Change exists. Matt are they not allowed to talk about it in official members . Coming up, look up any list of the worst airports in the world and it is sure to be there. Stephanie stick with us. Matt late or canceled flights crowded terminals. You name it, laguardia scores high in the list. It ranked number one in the airport frustration index. Vice President Joe Biden did not mince words about what he thought about the airport. Joe biden, if i blindfolded someone to want to talk in the morning to the airport in hong kong and said, where do you think you are, and said, this must be america. It is a modern airport. If i took you blindfolded to water you the Laguardia Airport in new york, you would think you were in a third world country. Matt george is at the institute for mobility. Apple ardea, we want to start with you. What to expect to hear Vice President biden and andrew cuomo say today when they talk about this . I lived in hong kong for four years and i have very good memories of the airport there, nice and clean. Everything is the opposite of here in laguardia. Vice President Biden and andrew cuomo will talk about four different things. They will get a whole new revamped, who knew whole new building. There will be a highspeed airplane we expect them to talk about. Also a new hotel and business center. This will be to the tune of about 3. 6 billion in we are looking at about 4 billion here scheduled to have that 2 30 p. M. Eastern time here. We will and you that live as well. Stephanie is this the key to the future to save laguardia . I wish the Vice President would ring it back. He to pay for this. I do not know how we will pay for four dollars there is someone else will a sword in the future, that is the Financial Plan i was told would be happening. The message from hong kong we ought to take more closely, they abandoned it and built a new airport. We need to fix the kennedy, a huge airport. Is kennedy have enough capacity . They would have more. Laguardia is a postage stamp sized airport. If you build larger terminals how will the planes get there anyway . This is like we mixing the thing it does just fixing the thing that does not make sense to fix. Matt i would think an airline say delta would want to have a better terminal at jfk. They have a pretty good one already but, dont the private businesses that make money off of ticket prices fund these kinds of praises . They want to expand it. Matt it is great. They have two shake shack spirit i actually think the footprint of kennedys enormous and canada, and he what we need whether another third runway or a parallel one or a second one. Matt but you have to go to new jersey to get there. We are separated by a bridge. They are always stopped. It takes like hours to get over there. Stephanie you think it is easier to get from jfk airport to newark . We are going to year from government officials today. In the shortterm, what messages do they need to convey . They need to say how we will work together. We need to have an entity that will put the pieces together. Stephanie fingers crossed. We will be back with more. Julie welcome back. Today, we are taking a closer look at gold. Phone to the lowest since 2010 last week, the biggest monthly loss in two years. Gold took prices to a fiveyear low a head hedge fund slumped for the very first time in that happened at the end of last week. Joining me now to discuss the next move, the chief strategist at bullseye options out in chicago. Allen after this huge slump we have seen, it feels endless. Is there an end in sight and do you see any bottom for gold . It depends on a view of the dollar, which put gold under pressure. It is backing off a little bit. That is the day Million Dollar question. You did see a bit of capitulation last week. New relative lows in gold at the end of the week after what we saw sunday night. The volatility we may see something here. Everything is heavily short. There is some sort of a squeeze. How far it goes, that is the big question. Julie what are you doing in terms of your strategy in regards to gold . Gold is at 300 back in 2000 and it got up to 1900. The midpoint is right at this 1100 level here that if the midpoint basis to lean on for the longterm. If you can look longterm. A few years ago, everyone was worried about the dollar losing all of its value that the dollar was going to continue to decline. The dollar is continuing to move higher as they cut Interest Rates as they raise Interest Rates. We will see if that happens in the reality. In the near term, i would be looking at some options. So you have limited risk in time to ride through ups and downs, see if you could get a modest bounce of 1200 in the gold market. Julie we have had a lot of strategists come out and say they expect gold continue lower below 1000. Putting aside your shorterterm trading strategy for a moment do you think that is likely at this point . It is possible. Momentum in the trend is down. Last week was rather interesting. Gold was down nearly 50 on a weekly basis. The way it made its Double Bottom thursday and friday is interesting. In the shortterm, youre fighting an overall trend that it depends on what happens with the dollar. Will the dollar back off and give gold markets relief . That is an ultimate question. I think risk and reward favors bullish play here. To sell gold expected to get out to 1000, how much Downside Potential is there . I think there is more upside potential if conditions change. Julie thank you for talking to us about gold, coming from chicago. Stephanie time now to give you our top stories of the hour. We have got to start with china. The benchmark stock index fell by the most in more than eight years. The shanghai composite index more than 8 . In the last few weeks alone china passes government has been propping up stocks with unprecedented measures. Concern that a rally sparked by those moves could not be sustained fear the senate voted to resurrect the exit or import tank. The senate added an extension of the thankss charter to a bill shall have as an mass transit for three years. Many republicans opposed the bank, which provides loans and guarantees overseeing sales matt . Matt greece is set to have talks on a new bailout this week. The imf, the ecb, and the European Commission have agreed to let up to 94 billion. Austerity measures they agreed to last week. We could read the same script literally every week. Best i will become the First National retail chain to sell the apple lot. Besides apple itself, more than 100 best buy stores will sell the watch friday. The website will also sell it. Those are your top headlines. Lets get right now to vonnie quinn with breaking news on the economic front. How do durable goods look today . Vonnie better than forecast. 3. 4 percent for june. Economists were expecting a rebound from may and may was revised lower. All told, it is a mixture. Mais down 2. 1 . 3. 4 is the overall number. Underlying demand for manufacturing for factory work here that was better than forecast of 8 . A half percent increase. Good news on that front. The previous month was lower. Lets take a quick look at capital goods as well. That is important for Business Investment and future investment for businesses, better than forecast once again. Economists were looking for a gain. But that was down 1 and that feeds into gdp, the shipment of capital this. Back to you guys. Stephanie thank you. Looking at the big list. When we return, meet the big private equity powerhouse. Harrys and Kayne Anderson energy to form a 113 billion company. We will discuss that during the commercial break. Ranking it. Stephanie there is a new private equity powerhouse in the house. Capital advisors are combining to create an alternative investment group. The president and cofounder joins us now. You guys were kicking it on your own. Why do this . Why bigger and better . Were seeing a big consolidation trend. Shrinking the number of gdp relations they have around the world. They want broader platform to offer them better solutions. The ability and opportunity to scale up in energy and at a fifth very exciting rainout. Stephanie you look and want to get involved in deals, you say there is no chance i could be a player because Blackstone CarlyleEats Everything up . Aries today we are not property centric that credit but credit centric. We do have a middlemarket private he just private could leave this is that we do not see ourselves competing headtohead with some of the folks you just named. What is so beautiful about the merger, we are taking 20 of energy and a tease, predominately at energy space it almost drops in vertical for us. Matt i know people who invest a lot in real estate. Real estate in those sectors student housing, school nursing, it is a very niche business in energy come about as good as it gets. To get diversification in energy, it is pretty unique. Stephanie as far as investing in energy march, april, may of this year, they got killed. The littleknown secret is kanes office is right next to ours in los angeles. It depends on who you talked to. Some would say we were talking for six months. Matt interesting to get involved in right now. Stephanie im saying the timing. Many invested in energy this is quite the opposite. Exposures actually tied to gas energy and Power Infrastructure we think we have got deep domain expertise without taking commodity exposure. We have to think about the longterm trend. The longterm trend is undeniable. 650 billion of infrastructure investment. Matt you are not concerned about the job we are seeing in commodities prices because that only represents about 1 9 or 1 8. Stephanie or David Einhorn reminding us that fracking is wet and get out of the fracking business . Get in the core dna, we have grown our business longer and more robustly in down than up market. In markets like this where there is a lot of volatility it really speaks to the expert domain and expertise and you have to participate in both markets. Our personal view is the timing and structure is right. We have more upside volatility than downside. Matt will build will there be any issues . You are next to each other in los angeles for a long time. Stephanie every day in the parking lot in l. A. , they highfive each other and say, we are doing this in our way, and every child is in new york city. He talk about large mergers all the time. What assets go, how it will work the ability to integrate would be pretty easy. Stephanie you could potentially lose investors because you make the argument, you are jumping the shark, getting out of your core business, you are not concerned . Most of us whether it is retail want to invest in broader platforms, more diversity of choice. One of the most compelling things about the merger is actually energy. Ares has been in the Institutional Investment market. 100 relationships with sovereign fund, pension funds, endowments insurance companies. 2100 relationships with Family Offices and highly net worth individuals. Almost no institutional marketplace. The ability to bring the two investment puts together we think is pretty powerful. Roughly 1000. Stephanie what redundancies will you have . Very little. Most 250 employees. None of which do what we do. We colocate so we will have that discussion. Stephanie the sun always shines in los angeles. Matt a merger is great. Stephanie thank you so much for joining us. Ares management president. Still ahead, president obamas visit to kenya was not all business. We will have that story next. Matt coming up in the next hour, a good idea to buy gold now . We will discuss with an economist. Really what we will talk about is, do you buy minors. He will say no. Miners. He will say no. Our senior markets correspondent julie hyman joins us for a look at the individual movers ahead of the open. Stephanie i will just let her say it. Julie you guys take it outside. Being upgraded to buy from neutral. Very negative on this stock. The company could possibly sell a big noncore asset and could possibly sell itself entirely in a sale of either its basin or midcontinent assets could generate about 500 million in assets. 69 this year. Chuck maker being cut to neutral over goldman sachs. Goldman is lowering its few overall from neutral, looking at the effect of commodities downturn on the machinery cycle and the machinery injury industry. Qualcomm is being upgraded over at Morgan Stanley to overweight from equal weight. The shares up a little bit from three quarters. 75 . Cutting costs and returning capital. The analyst says the separation between the chip business and the tech licensing business is value destructive. Not a very good outlook. Otherwise, an upgrade. Stephanie thank you for giving us the breakdown as we approach the open. Time now for one of my favorite moments of the day. Lets take you to our favorite. Lets take a look at this groovy president. Our own during a statehouse dinner saturday night. President obama joined the band in performing a traditional kenyan dance. He made history as the first sitting u. S. President to visit kenya. He is also the first u. S. President to dance in the country passes capital. In the press conference he condemned the ban on homosexuality. Im guessing along with performing the dance, he probably had the National Beer of kenya. I studied in kenya for six months and lived there. I tried more than a few. That was like a kenyan shuffle. Matt he did a good job. Like every mom we let makes her son jacob nutritious meals. She turns the food into his favorite cartoon characters like Spongebob Square pants and his pal, patrick. Stephanie that is amazing. You kill. I love him from monsters inc. And the lion cub from lion king. The best part for us matt he documents each on instagram. Stephanie outstanding at i would love for my children to eat better. I do not plan to do that. I would never do spongebob because i do not like him and i think he is fresh. Coming up, real estate in the hamptons. Home prices keep falling you will look at the Housing Market next. How are these ball is going to pay for their helipad . Stephanie home prices in the hamptons are falling. Compared to last year, prices are down 6 . Increased choices in most price ranges, shoppers are able to take their time on deals. Jonathan miller is the president and ceo of Miller Samuel and he joins us now. Walk us through. The hamptons have been joined at at the hip. A boom in record Sales Activity last year. Sales fries and most of that ended with a fiscal cliff. What has happened this year is all the excess demand and absorb. We are now at a in an aboveaverage activity. It is not that we are going in a downward trajectory. It is a reset from a couple of years record. Matt would it be safe to say prices rose to a record and their topping out . Yes. I high plateaus where it is. The thing out east, the level activity being high still, even though it is off the records, is a second home market and it is not behaving like one. It is behaving like a primary market. We see activity that is all of the. 5 in the Second Quarter above any other Second Quarter since the financial isis. It is not at a record level. Stephanie many of us thought things were a mess after lehman and once they got their footage again they chased Prices Higher and higher. That is exactly what happened. She is good. The thing is in real estate, we tend to be linear. When prices go up, they go up forever. When cells come up, they go up forever. It is more of a reset. The level of growth we have had in the last couple of years is not animal. This is almost a relief we are seeing this moving sideways right now. Stephanie does this have to do with the fact so many people bought homes and moved out. Many said it takes too long to get there. Matt people are starting to realize there are places to go besides the hamptons. Are you really going to long island or the mediterranean . You look at markets like i cover south florida and palm beach market. It is all new yorkers. It is the same commute. The plane flight from new york it is maybe a little bit longer. There is definitely competition. Matt what about people who are going to [indiscernible] people are going other places. Is the hampton the beall and endall destination . I think it is. Still well above average levels. The market has not gone out of favor. Really pentup demand has been absorbed. We are back to a little above average. Stephanie it is not that people do not have the money. They are just getting more rational about the prices they are willing to pay . Youre getting that in new york as well, the sense of urgency has left. Which messi the panic we felt a year ago. Your study activity. Stephanie we have got to leave it there. Stephanie welcome to the second hour of market makers. Matt i am matt miller in for erik schatzker. Futures are down the worst day and china passes market in eight years. I was shocked when i heard this on Bloomberg Radio earlier this morning that the Chinese Government allowed this big slide, a. 5 . Stephanie matt was also shocked of it 00 a. M. Hour when i referred to a ballet dancer as a ballerina. Matt ballerina would be a female. Stephanie but i said ballerino. That is a male. Matt you were right. Stephanie the chinese stock market. Remember what happened in 2007. The benchmark composite index fell more than 8 . There is growing concern that a threeweek rally sparked by unprecedented Government Intervention cannot be sustained. Early on bloomberg television, the present of the council on Foreign Relations called it a serious political for Chinese Government. This is a nightmare scenario for the Chinese Government. Push back is what they are worried about. Stephanie when i hear nightmare in 2007, i get concerned. 1400 companies simply quit training trading. An Israeli Pharmaceutical Company is about to become one of the worlds biggest drugmakers. It has agreed to by the generic drug business from al again. 40 million in cash and stocks. It is withdrawing his office from another generic drug maker. Matt orders from for durable goods came in higher than expected. The first time in three months that there has been an increase in durable goods orders and that reflects a surge orders for emerging aircraft because it had the Paris Air Show during the time. 13 major u. S. Corporations will invest 140 billion to reduce their carbon footprint. Apple, goldman sachs, berkshire hathaway. Theyll place pledge to cut emissions and water use and will help finance environmentally focused companies. Those were your top advice. Stephanie the shanghai composite fell more than 8 today to we had to bring back simon, head of asian equities to put all of this in context. I am under the covers come under the bed, under the table. What do you make of this . The key issue is china cannot have it both ways at the moment. You cannot have a market and an economy that youre trying to liberalize and open up to Foreign Investment and at the same time intervened when the results of that do not fit your agenda. The agenda in this instance is the encouragement of a stock rocket rally. A stock market rally designed to allow companies to raise capital and allow securitization of debt. Do not forget that the way thing supporting the market at the moment has in the police of the public that the government will support the market. Matt which they have been doing. The government has been buying stakes and they suspended trading shares of most of the Smaller Companies and they ordered all major shareholders not to sell. That is why when i heard this on Bloomberg Radio this morning, i thought, why would they dropped the ball like that . They cannot do it indefinitely. One of the great phrases i heard when the markets were going up was the person who does not believe in the greater fall, the government is setting it up as a fool. They do not want to make the market a oneway bet. If they do that, you risk reigniting a bubble. Stephanie what options do the Chinese Government have at this point . To realize the impact will not be that serious. There will be High Net Worth individuals were hurt and consumption will be hurt. But if you look at the effect on the overall man on the street, it will not be that great. Matt that would be my main concern as the party leader. Stephanie when i think of who would make a great party leader in china, i think matt miller. Matt the average people. Make sure they do not get hurt by this and i would not be worried if a couple super rich guys did. The concern is ultimately social stability. 75 of Household Wealth and china is property. 10 of that, 2. 5 of the total, is in the stock market. If you look at what will affect the wealth effect and a man on the street and china, it is the property market. Matt over one year, including todays drop, the stock market is up 71 . Your today, it is up 15 . Last year up 52 . This stock market is still doing incredibly well after a 6 drop. A lot of people have financing to the top of the market. We are looking at the effect of the overall economy. I will say the effect on the overall economy will be relatively limited. We go back the growth we saw last month,. 5 of that was a result of a frenzy of activity we saw this rally. We will see weakness. We see Interest Rates coming down and we start to the the stabilization of the economy as a whole. That will create interesting 6. 5 or 7 growth. Not that in a global context. You have to look at from a stock market perspective that some stocks are starting to over discount that affected you are starting to see a discount because of trying consumer sentiment. That could create interesting opportunities. Stephanie what doesnt mean for the companies who stocks he cannot trade . Concerns that many of these companies have pledged their own stock as collateral. They hoped by suspending their own chairs for trading, they will not go down and therefore margin will not be called. It is clearly not a great situation. Matt you realize you need to call a margin. A lot of people are saying the banks and finance companies, the impact on profits in the collapse of the market will be 2 this year. It is entirely manageable. If you look at chinese race now, the trading there is actually some value appearing in the market. The problem is many of the shares that have been the subject of most speculation are still trading at 70 times earnings. No one really knows in china what the earnings are. In the u. S. Earnings, we have a deep securities industry. Earnings are more of a concept analysis of equities is at an earlier stage. Matt thank you for joining us. We appreciate you coming in this morning. I know we called the late. Coming up, when can we expect to see a rally for crude . Matt where would you say . Stephanie i would not like to live in San Francisco. Not for me. You go there in august and it is chilly. I do not like that. Matt lets talk about oil. Stephanie oil is falling for a fourth consecutive day now in bear market territory with rates continuing to decline. Are there any catalysts to beat the price of oil . And analyst joins us now from london. Here we are in bear market territory. What do you make of this . You have got to look at the moment and the path of least resistance is downward crisis p or we have got liquidity and a few factors weighing. The market is something to look at. Running really hard in order to generate more gasoline and gasoline demand have been good. That has left us with a surplus of diesel. Built to maximize the so yields and they are not able to observe that. The most important thing here is we have not yet seen the slowdown on tax applies. Fridays data has told us that once again, the members have come off hugely, we are not yet in the market in terms of slowing by growth. Matt what could push the price of oil backup. 47, 50 five dollars a barrel for west texas intermediate back down to pretty low. The demand is high. As long as opec and the u. S. Producers continue to pump it out of the ground, what could happen to push the price back up . We have got to remember rebalancing is coming. Even with more oil, we are seeing a big fall in investment in places like canada and around the world. Places like brazil. All of this will weigh on production. Probably more visible in 2015 once u. S. Production data has a slowdown, we could see data pricing in production. Production needs hard data points to start to get a sense of how rapidly. Stephanie investors are looking at for a signal. People follow north dakota very closely. Texas data, monthly statistics. People are saying maybe we will see a slowdown. There are countries like mexico declining. I think the market learned when it tried to track numbers in the u. S. It was not that simple. The fall has not translated all of that has broken the link. It will come at the market is looking across the board rather than at any one data point. Stephanie thank you for joining us this morning. People are trying to make sense of the market. Thank you for joining us. Matt long coveted by captains and kings gold, tumbled to a fiveyear low. Is the decline an opportunity . Do you want to get the minors while they are cheap . Stay with us for the answers. Matt wow. Stephanie if that is not a San Francisco treat, i do not know what is. A gorgeous matt a gorgeous shot of San Francisco there. Have a live. I feel like i belong there. This is barry. Stephanie you are not allowed to say any words until we officially introduce you. I would say this is my favorite Chinese Restaurant located in San Francisco. Matt he is blocking cam eight. Move it over. Gold bonds are getting squashed out the window. Flirting with a fiveyear low though intrepid investors by when it hurts. You have to tread very carefully. Talking about an important distinction, we are not talking about the metal so much as the miners. Question early speaking, any sector you want to take a close look at here the miners have for a long time much more than gold. The miners are down almost twice as much. There was a relationship between gold and the miners. That relationship seems to have become unhinged mostly since the introduction of the spider trust etf. Matt a lot of investors wanted exposure to gold but did not feel like holding the bars or whatever. Barry they were always easy substitutes. Which created the World Gold Council essentially a trade group of the miners, because they had inventory, and since then, they have gone into debts separate directions. Matt lets back up to the underlying commodity. I like probably everyone else gets 10 or 20 emails telling me the world will end and centralbank surrounding everything. They have been telling me this since before the crisis but it has not happened. Why doesnt gold fall back to the precrisis levels of 600 . Barry the opposite has happened. The economy is slowly hearing healing. The dollar is at multiyear highs and instead of inflation, we seem to have deflation. These things do not happen right away to answer your question. Why dont we definitely back to precrisis levels, but it certainly seems to be working in that direction. Morgan stanley came out with an 800 price target. The cost of production was about 660 or a little higher. That could be a target. A little late to the party. Already down 40 in gold. But it is just a function of where buyers come out. It has gotten very punish. Stephanie is there such a thing as a body catcher . Nobody wants to be. It is time for a commercial. We will not let you go anywhere. The opening bell is coming up. Stephanie welcome back. Just a few moments from the opening bell in the u. S. Tracy is here, bloomberg intelligences at negative editor. Also with us is josh, a portfolio manager. Guess who we did not let out of our death grip . Barry reynolds joins us from bloomberg view. Lets find out what tracy likes. Tracy tracy likes oil markets. Matt one female singersongwriter. Sarah mclachlan. Tracy no. Matt i saw her and she was fantastic. Stephanie we will give you a pass but tomorrow, you will need to bring your favorite. Jessica simpson . Katy perry . Tracy i will not be insulted peerless talk about oil. Oil is below 50 again. Pain in highyield energy. You can see it is dipping alone the oil price now. It is not my us on chart and does not look as dramatic. We have seen the pain spread from energy to include the miners as you are discussing. We have a lot of emerging markets today as well and a whole bunch of emergingmarket issuers in the u. S. Highyield market, which a lot of people do not realize. 8 outstanding now comes from emergingmarket spirit all that pain and commodities, it flows through to the u. S. Corporate bond market. Stephanie making its way to corporate, what you make of that . It depends on why the Energy Sector is as soft as it is. Is it because we are heading into a recession . That is a different scenario than a huge amount of supply overwhelming the demand and prices going down for that which more or less seems to be what we have been looking at for the past few years. It is a good lower price as opposed to a bad lower price. Josh i would agree with that but the commodities are being affected by china here with the china market going down everyone is worried about how much more commodities they will be using and that is affecting the market. Matt i was filling up this morning for three dollars 64th 3. 64. Classless take a look at the s p 500. A few worries there about the bull market. The theoretical bull market. It is true that we have had three years now without a 10 correction in the s p 500, which is pretty thats if you think about it. It used to be a sign of health and the bull market is that you get all the stocks moving up at once. That is not happening so much anymore. We arewe get to big sectors, retail of health care that are basically propelling the s p 500. For a lot of people that is reminiscent of what happened in the 1990s with the internet bubble. We had a handful of big tech firms that were really pushing the bull market. Some nervousness there about the lack of breath. Erik i noticed Mark Andreessen tweeted tech bubble . Tracy theres constantly concern about a tech bubble. M a is driving the tech bubble. Theres been over 1100 deals announced for over 7 trillion, and massive amount. Dont underestimate ongoing consistent profit levels. They are not a percent, 10 12 , but 4 to 6 , you can propel a bull market a long time with those earnings. This quarter we have seen a lot of softness from industrials of the rest of the market seems to be doing pretty well. Its still early, but early returns are not too bad. Stephanie it doesnt concern you when you look at the earnings numbers over the last week or so, they looked very soft. Shouldnt we be worried . Barry they are not growing as fast as some people want, but they are still doing pretty well. I dont mean to suggest the weekend or just ignore it the industrials. Thats clearly the weakest point. But when you look at the rest of the s p 500, including energy which over the past few quarters has gotten really flat, its not as bad as a lot of people were expecting. Stephanie there is so much talk about market action, specifically china. Im going to give you a free pass. You think about your favorite single female singersongwriter. Lets get to julie hyman. Tracy did she write her songs . Julie lets look at what stocks are doing. We are seeing major averages selloff yet again, for the fifth straight day and weve seen major averages lower. We havent seen that since midjanuary. The selloff now is an official selloff focus. Five days in a row we see steep declines during that time. Something to track as we go throughout the day. In terms of the individual stocks were watching, we have to talk about the big drug deal happening with teva buying the generic business from allergan. 617 5 billion worth of shares. 6. 75 billion worth of shares. Allegan trading lower by 2 . We double checked the numbers and make sure these trades are right. But definitely this has been an interesting turn of events cents teva had been pursuing mylan rather perspective aggressively. Mylan is down that is not happening anymore. Mylan has been trying to buy pair ago, and tevas consumers mylan pursuit of mylan consists of dropping that. Its been quite a cop located a complicated day with ease. Both of those stocks are gaining thanks to josh for pointing that out. We are not seeing huge declines our wait . Are we . After europe we saw 2 declines we are still seeing stocks down 2 . Euros stocks down exactly 2 right now. Mary re even off alltime highs in the s p by 5 . Its amazing how much consternation there is no major corrections in three years. Markets barely off and people wailing like its the end of the world. Stephanie josh, does he wailing . Josh we are not. Global markets are going to increase fueled by industry globally. Theres no other place to take your money. You see a little selloff, every time we see a selloff, people buy in the markets. Interest rates are too low right now. Equities of the best place to be. One of the reasons i think the s ps and office much as europe is because after europe close on friday, the s p one down. Europe is catching up to the s p as well. Stephanie this is a fiveday losing streak weve seen for the dow and s p. The longest losing streak we have seen since january. You dont think this is a reason to cry, panic, worry . Markets go up and down no stephanie not in the last three years. Mary barry people say the fed is manipulative everything. Once it begins to normalize rates, i think its pretty clear thats going to begin sometime this year, you should expect a return of normal volatility. We are in a fivemonth low, but not down 5 from the highs in may. We are down 4. 5 from the highs on the dow, we are down less than 3 from the highs and the broader s p. Stephanie while people are panicked about china, theyre not looking at the broader picture and the great run weve seen. What are you most concerned about right now . Josh im more concerned about when the fed raises rates, water investors reactions to that. Stephanie shouldnt investors be prepared . Its not like it to tsunami you werent expecting . We sought in 2011 investors are medially started selling stocks. If that happens, the fed is going to be slow to raise rates next time. I think investors will come back in and by the market. Didnt we already do this tantrum. We got it out of our systems. Josh if youre not prepared for rates going up now, you havent been paying attention. The key thing to keep in mind, when the fed is raising rates from high levels when there is high inflation, that is terrible. When you look at what happens when fed raises rates in years of relatively low inflation starting from relatively low levels, that doesnt seem to be all that bad for equities. We can adapt to a quarter point each quarter. It doesnt seem like were getting killed all today. Tracy i promise you this is good. Its the most real story regarding greece youve ever heard. Resist former finance minister had a phone call a few weeks ago with hedge funds. Setting aside that fact that he is having secret phone calls with hedge funds, what was that of a call is absolutely amazing. He revealed the greece had a plan in place to create a parallel Payment System should its Banking System collapse or not be able to run efficiently. And part of that plan involved hacking into the countrys own sort of virus equivalent system because those systems are currently controlled by the creditors. Stephanie is he living in a parallel universe . Tracy they were going to create a parallel Payment System and everyone would be able to get money by iphone using digital payments. They recorded this . Tracy you can listen to the recording. Its amazing. The most incredible thing ive heard out of greece forever. Grexit he drive to moscow . Did he get on his bike and drive to moscow . Tracy he bribed a friend to hack the systems, they hacked the systems. Stephanie what do you make of this . Barry nothing surprise you and greece anymore, honestly. Doesnt it seem like it would break a whole bunch of laws . Tracy who knows . It is a teeny, tiny country with 11 million people, im not suggesting it is so small it doesnt matter but im saying when you compare the giant world moving things that have been going on greece is really back of the list. Stephanie here on market makers, we try and start are we got a positive note. Motivation monday. Josh, what are you excited about . We cant be crybaby soup to start the week. Josh the great opportunities infrastructure globally. We need to spend more on infrastructure. Stephanie like what gloria Laguardia Airport. Josh Congress Proposed bill, they want to extend 34 shortterm extensions for 8 billion in five months. The Senate Proposed a sixyear extension which would be funded for three years. A 337 billion extension. Hopefully they will pass it this week and send it back to the house and i will get approved. That would be beneficial for the companies we invest in in the global of the Structure Fund as well importantly the u. S. Economy. Do we see private money as well . Ppps, publicprivate partnerships, is going to happen. The norv turner expressway in texas, and of a Structure Fund has built two to three additional lanes. And those have something called congestion pricing which means they get to change the toll or tariff every five minutes based on traffic patterns. The existing lanes are free, the new lanes charge money. I would avoid traffic all the time or how much it cost, and you dont have to sit for half an hours which to those lanes. Stephanie last time we talked about congestion pricing you were talking uber. We have to leave it here. Barry the gas tax hasnt gone up it has not adjusted for inflation, and thats why the state of american roads is so visible. Index it to inflation and the roads here wont be and spend it on roads. They use the gas tax revenue for a lot of other things. A small percentage goes to mass transit. Stephanie the sounds of a super sexy dinner party conversation. We have to leave it there. Matt isnt going anywhere. The next time i see you all we need a full breakdown, when houston, Christina Aguilera adele, celine dion, mariah carey. Tracy i work on my list. Im not really a female soul artist can a person. Im more of an aerosmith person. Stephanie there you go, steven tyler. They have their own roller coaster. Matt he has a loose scarves. Exterior concerns about current truck safety have led you to worry. Dont. Nhtsa is on the case, they have a record penalty for Fiat Chrysler, the largest in history following a government investigation into vehicle defects that place lives at risk. Weve been following updates all weekend. Another bloomberg reporter had to work all weekend. Janey, talk to me about this number. Jamie talk to me about this number. Is a lot to get find it. Jamie its the most ever for an its a penalty. Plus 20 million efforts to follow the order. Another 15 million that an escrow that may be given back. Its really up to the monitor who is going to be hired by chrysler and install that house. They see anything else that a life they will say this money goes to the treasury instead of back to the company. 100 million, youre talking about toyota, volkswagen, even for gm is not necessarily that big a deal, they make money by the billions. But Fiat Chrysler does not make nearly as much money as those companies. Thats why they are looking so hard at getting consolidation emerging up with somebody bigger. It does take a bigger bite out of them. When youre talking about the cost, his idea of buying back at above market value 500,000 vehicles or more even if those arent high value vehicles at this point because they have been on the road for a while, we are talking about billions and billions of dollars. Matt this is separate from the hacking story, the you journalist that hacked into Chrysler Automobiles that led to a recall, this is not related to that fund. Jamie its not directly related. Its not one of the 23 slowmoving recalls that knits it was beating up chrysler over. Youll get tougher lawenforcement agency making it very clear that they are not going to be questioned round or be ignored. Fiat chrysler, you heard them initially saying no one has ever really hacked one of these cars other than these guys who had their friends car and were able to get into it and look at the cpu and all that. Feeling the pressure of an renewed aggressive regular made them feel they needed to be responsible. They identified vulnerable vehicles they said they added one million to it because they dont look at their not being responsible. Matt one more question before move on. Did wire to other vehicles they could do this to . I talked with people at General Motors and they all said we are very concerned, were looking into this. We have hardware walls that stop it, its a different system then what happened in the jeep in question at chrysler. Jamie they said their other systems they think are similarly vulnerable. They werent able to demonstrate them or execute been. Some automakers have said what they said was vulnerable, we changed since then. Its not very transparent. Its always a bit of a cat and mouse game, you want to tell people why they can feel safe but you dont want to tell the bad guys how do you change the locks . Nothing else demonstrated nothing proven. Clearly it is an industrywide concern. Matt jamie butters from detroit. When you get back to julie hyman, we have a. 75 drop. Julie its a matter of the street we have been on. Matt i expected a bigger decline. European stocks stocks down chinese stocks. Com and we are only down 0. 72 on the s p 500 . Julie im just calling up the numbers now it looks like over the past few days we are down by about 3 . Matt which is what we are off from the highs on the s p 500. Julie we have this selloff continue in, maybe it should be bigger or smaller, i dont know. But its five Straight Days we have seen the major averages fall, youve got the dow over the past week actually falling a little more. On a percentage basis. If you look at whats dragging us down, china has of the to do with it. If you look at the etf to track china, thats one way to track it. This is the fx i which looks at the large cap chinese shares the trade overseas or i should say out of china and hong kong. You can also look at the a share etf that tracks the shares that actually trade in china, its down quite a bit, nearly 10 here as we see this big selloff. Oil is down again today, Energy Shares are a big drag once again. Matt im not saying it should be bigger or smaller, it should be exactly what it is. This is a pricing mechanism, right . We are looking at the markets decision, the markets take on china. The markets as i think thats what the drop of 0. 72 on the s p 500. Not that much. Stephanie julie, thank you. Stay on hand, were watching the markets closely going in one direction. When we return, we are talking bigtime pictures. J jill and halls latest picture taking a punch at the u. S. Box office, but it is not a ko for the movie just yet. Why the film may find hope in china . Stay with us. Matt Jake Gyllenhaals latest movie Southall Congo southall, got beat by enhanced. Its not over yet, as it readies for a chinese debut. He saw the movie and let me ask first before we get to southpaw. Adam sandler has made the worst movies in the world the last 10 or 20 pictures he has made. Why do people continue to come see these things . Stephanie what was the is movie where he was an israeli hairdresser . Hes had a rough time. He just signed a multipicture deal with netflix. Maybe people will see them at home. They are not going to the theaters. His pacman movie beat southpaw. It actually looks pretty good. It has the guy from game of thrones. But it be southpaw. Jake gyllenhaal, Rachel Mcadams how is that not do well . It did reasonably well, according to what we were expected for a film of that nature. It is an rrated drama in the middle of the summer. Pg rated family animated films with adam sandler are always going to have more of a draw with a wider audience. Stephanie this movie was financed by a chinese company. We know, especially in china, they love american branding, they love big name stars. Thats what this movie has. Is this the new trend were going to see . Chinese cavities finance u. S. Films . Companies finance u. S. Films . We have people interested in having a presence not only in Movie Theaters, but also the type of movies coming out. Its a content driven business. That really helps get the sort of films the chinese audience that you are looking to see not only here in the u. S. But also in china. Matt when we say 16 point 5 million, we are talking about the u. S. And maybe canada, probably not that important. What about in china . We have a chart. We have Massive Box Office takes, they are getting bigger and bigger. You see the estimate going out for 2016 and 2017 when they overtake us. We saw 34 growth in china last year alone. We are seeing staggering growth on Movie Theater space about 10 new screens every day being built in china. It makes a lot of business sense for china to also be involved in making content and producing content. Stephanie for anyone who hasnt seen southpaw, i recommend you go to youtube to perform where adam saylor performs sloppy joe. Thank you. Matt adam sandler was a genius and he made pretty bad films. He doesnt seem to care. Stephanie thank you for joining us. Earlier in the show, matt asked me to name some prima ballerina has in addition to pro cyclists. Ira member movie breaking away. I love this ballerina, i dont want to butcher her name, but some of the worlds most amazing dancers. Instead i will focus on the one and only misty copeland. Matt said she had a limited range. She spoke with charlie rose. About how sponsorship helped her career. Misty copeland i think the power gives me is for people to see me and hear me. Charlie and want to see you and hear you. Misty copeland right. I wanted my voice to be heard for so long and this is a platform. Those opportunities to be seen, thats the platform for people to know what it is im saying and here it very. Charlie when people see you dancing, do you think they see a black woman or they simply see you the ballerina . Misty copeland i would like to think they see me as a ballerina, as a dancer. My experience is in the reality of this world is that there are some people to see me as a black woman up there, or that have thought or think i dont fit in. But i try and be the best dancer in the best artist that i can be. Because when it comes down to it, thats what im working so hard for, day in and day out. Stephanie catch the full interview on charlie rose this evening at 6 00 and 9 00 p. M. For now, im going to sign off. That wraps up mondays edition of market makers. I am back tomorrow, and so will this handsome devil. Matt stay with me, i will bring you into the bloomberg market day. Not seeing massive declines after china stocks are falling 8. 5 . We are still in the red. Stay with us. Good morning, it is 10 a. M. In new york city 10 p. M. In shanghai. Welcome to the number market day. Worries of a slowing economy, they wonder how long Government Intervention will work. Matt Health Care Consolidation not just for the insurers. More drug company news to tell you about and the hot vneck. The incredibly expensive egg. Prices on eggs pushed to record highs because of an avian flu outbreak. Olivia good morning, im olivia sterns. Matt and im matt miller. We saw an eight map drop in china overnight. Europe in markets are down 2 . Here in the u. S. We are not faring too badly relative to those moves