Earnings. Olivia take a look at those declines, you are seeing major benchmark indexes in europe all up 2 or 2. 5 . And the broader continental benchmark off by 2 . Sour sentiment coming over from asian markets, but also Economic Data coming out of germany this morning, perhaps. Pimm there was market moving you cant out of germany. Olivia german Business Confidence is up today. You would have thought that would have produced pimm maybe theyre looking at china. Everyone is looking at china. Top headlines, stocks lower in china. The shanghai composite falling 8. 5 , the most since 2007. Investors are concerned the Chinese Government may hold the steps it has taken to prop up share prices. Earlier, the head of the council on Foreign Relations called a nightmare scenario for chinas leadership. The question is where does this government, where does this party get his legitimacy . They cant quite figure it out if markets cant work. These are broadly participated in markets. The real problem. They dont quite know what to do. Thats what you see massive intervention and other times they are backing up. If this is a serious political problem. From july 8 through friday, the shanghai composite gained 16 , more than 1400 stocks were allowed to stop trading and the government banned big shareholders from selling their stakes. Israeli firms will company is about to become one of the worlds biggest drugmakers. Tivo eva teva is withdrawing its offer for mylan, in that sense, the shares of mylan promoting down more than 13 . Orders for durable goods came in higherthanexpected, rose by 3. 4 . It was the first time in three months there is been an increase in durable good orders and that reflects a surge in demand for commercial aircraft. President obama has become the first u. S. Leader, the first sitting president to visit ethiopia. The president met with human ethiopias prime minister. That hea made it clear raised concerns about the countrys record on human rights. Discussedobama we steps that ethiopia can take to show progress on promoting good governance, protecting human rights, final freedoms and strengthening democracy. This is an area we intend to anden our conversations consultations because we strongly believe in ethiopias promise and its people. Olivia human Rights Groups accuse ethiopia of using security concerns as a next used to stifle opposition and curtail basic freedoms. Fox is making a big bet on Fantasy Sports. Daily Fantasy Sports website draft king is adding 300 million in new investments, half of that will come from fox sports, which takes an 11 stake. The nhl and make a big soccer are also investing in draft gangs and the Major League Baseball is increasing its investment. Those are your top stories this morning. Pimm in the next hour of the bloomberg market day, Bloomberg News reports that square, the electronic Payment System company has filed for an initial public offering. The question becomes what is jack dorseys mobile payment startup really worth . He happens to be the interim chief executive of twitter. Plus, Laguardia Airport gets a 4 billion renovation. The question is, will it be enough to cut down the chronic delays and congestion at new yorks airport . Those stories and more ahead on the bloomberg market day. The slump in gold the tip prices to a fiveyear low may tumble further amid speculation the u. S. Will raise Interest Rates this year. Commodityan stanleys analyst tom price says the price of gold could go as low as 800 an ounce in a worstcase scenario. He joins us now from london. I didnt want to steal your thunder, but why do you think the price of gold my go to 800 . Time. Ts a tough they are really struggling to find a benchmark. Wasnumber i came up with based on the marginal cost of production. Peopleuld upset a lot of , you talk about fundamentals in gold, but a lot of people dont believe fundamental supply. A scenario like this, its probably worth thinking about. Olivia is this all in anticipation of higher rates . So many different Asset Classes move in anticipation of the u. S. Fed raising rates. Treasuries, prices in many months ago. Why is the gold market moving now . Up onold prices held extraordinarily wide range of drivers. Everyones thinking about the impact of the great debt risk and also some conflicts from europe. They have been looking for reasons. I think one of the benefits the gold has had in recent months is a very large selloff. In oil, forls example, they come up about 20, 20 5 since the local high back in may. I think some investors and commodities retreated into gold. Now that we are getting closer to a point of Interest Rate hike in the u. S. , nothing gold can hold out for much longer. I think theres probably going to be a departure from gold as well. Us through the commodity complex and begin with oil intelligent is perspective. And tell us your price perspective. Prices are in a range of 48, 55. We are thinking of prices of about 50 to 60 a barrel over the next six to 12 months. 50 re probably about 10 to above what spot prices are for copper, nickel, and zinc. They have been hammered. Gold has come off about 5,200 an hour. An hour. Hour to 100 the catalyst weve seen in the past few weeks has been the equity market collapse. Theres a crossover between equity markets and Commodity Trades in china. I have trouble start selling equities, its been commodity rich, and we are seeing some evidence that they are selling commodities just to cover losses. That is dump some product in the market. Thats probably shortterm basis. Olivia where do you think the floor is for iron ore . Is currently trading about 50 a ton. Now, the trade should remain stable. Usually stays very stable between may and august every year. Backhen it should pull after august come around september, october, they will cut production and iron ore and steel prices will come under pressure. It could be a risk of a correction event around september, october, happens every year. He can probably see a shortterm price of 40 during that time. The price available over the next couple of months. Pimm what is the best trade right now . Defensive one. There are jiminy places to hide in commodity world. The commodities that would be most insensitive to the current selling pressure would be the cold base. Coal thatetallurgical is used in Power Production have been hammered so hard, if you can find in equity to invest in their order pickup coal, itself, i would probably recommend that. Joining us. You for our thanks to tom price, commodities analyst at morgan stanley, joining us from london. Olivia still ahead on the bloomberg market day, much more aware square is heading for the public markets. It have an impact on his new interimerim of ceo twitter. Dont go away. Olivia welcome back to the bloomberg market day. Im olivia sterns. Pimm i am pimm fox. Lets check in with julie hyman. At health looking care particular, declining sector despite the big deal in health care. A is buying the generics business from allergan. They had been pursuing rather aggressively the whole company of mylan. I theirad been rebuffed rin efforts. The endless commentary has been relatively positive. Major stingley, the guy that runs the generics business at teva used to be in allergan. Hes quite familiar with that business. We see both stocks go up quite a bit. As for mylan, which is left out in the situation, its shares are down sharply by 13 . Pursuing turn been para go for 33 billion. Para go has been rebuffing mylans efforts, we see with this latest of element does for the prospects for that deal. Overall weve seen a lot of drug m a this year. Take a look at the bloomberg terminal. We are seeing the United States m a among the pharmaceutical makers for really the last several years going back to 2010, you can see there has been , surge in activity this year it looks like we are on pace for record year for pharma deals. The blue lines are the deal amounts. The green lines are the number of deals. As we head into the third quarter, there havent been that many deals. But this 40. 5 million deal really pushes up that line because of the size of it. Another Health Care Stock we watching today is biogenic, in of thek in the wake big decline we saw in stock last week, theres mixed analyst commentary today. An interesting note coming from j. P. Morgan saying a meaningful acquisition could help restore Investor Confidence in the company, speaking of acquisitions. We will see will buy agendas from here. If you take a look my bloomberg terminal, have a chart of biogenic of the past six months or so, its tumbledown year to date because of what happened in the last week or so. In march the Company Released data from a study of one of its experiment will also rose medications that was promising. We saw the stoxx bike. Since then, it has been coming down. Last week the Company Released new data about the dosage, a lower dosage that didnt necessarily show is promising information, so consummated complicated that dosage. It tumbled about 22 after the company cut its forecast saying the ms drugs were also weaker that have been estimated. We are seeing a bit of a rebound, but to put it in perspective and context, that is on the back of very steep declines. Olivia its interesting about the m a. Now that the Supreme Court has held upheld the Affordable Care act. Weve seen consolidation and health insurers, this weeks Drug Companies and hospitals may be next. Pimm from health care hospitals. Olivia julie hyman, thank you. The topts look at stories. Mcgrawhill has agreed to buy the Financial News and data l financialovider sn for 2. 2 billion in cash. Mcgrawhill is the parent of standard poors, snl financial is owned by new Mountain Capital and members of its management. The owner of burger king posted Second Quarter earnings that Beat Estimates in the credit goes to chicken fries. Restaurant brands added new sandwiches to the menu and brought back a burger king classic, chicken fries. The company also owns the tim hortons restaurant chain. Will become the First National retail chain to sell the apple watch. This is besides apple stores. More than 100 best buy stores will begin selling the apple watch a week from friday, and 200 stores will get the device in time for the Holiday Shopping season. Best buys website will also offer it for sale. Those of the top stories of the morning. Olivia Tech Startups like uber raised billions of dollars from private investors, so why go public . Square filed confidentially recently for an ipo, they did so on friday. Thats according to people with knowledge of the matter. Pimm under the jobs act, but is can file fly the file quietly if they have less than 1 billion in revenue. Cory johnson joins us now from san francisco. Tell people what is square, and whatever itlued at might be valued at, and white people want to buy it . Cory we dont know what the valuation will be, we have a clue because filing of the job act, it limits companies to less than 1 billion in revenue, which is of course, just about every company that goes public without some notable exceptions. As a result we know the company has less than 1 billion in revenue, which is notable because in the private markets the suggestions of men valuations of upwards of 10 billion for this company. We dont know anything about profitability or customers. We do know that square has processed over 30 billion in transactions. This is anus Important Company in this very rapidly changing world of payments. The thing that square is allowing is really disturbed distant or mediating some of the Payment Companies partnering with Companies Like visa and mastercard and american express. But charging much less in fees to those merchants. Its a very big deal to merchants, its also the competitive threat to their partners. Olivia what do you make of the fact that they are going to the market . The story coming out of the west coast has been you can raise so much money in the private market be worth 10an billion and they dont need to get public money. What do you make of the fact that they want to go public . Pimm why raise the money that way . They go will see if through with it. They have to go through this process in order to do an ipo. But given the choppiness in the markets and what happened in china this morning, and happened to the ipo market could be very different, even 60 days from now that what it is right now. One of the things about square veryat it has a capitalintensive business to grow with this. They may need to be part public to do so. The benefits of being public go beyond just raising money. Indeed, it helps some companies, we talked to many copies over the years that say when you sell to another business, it helps quite a bit to have a stock out there so you can save your potential Business Partner or us, wer, hey, look at are traded on the New York Stock Exchange on the nasdaq, we are a real company and this is not just the future of a business, its a solid business is heavily traded, its when to be here to be her partner. Pimm is jack dorsey going to be their partner forever . Jack dorsey already has a fulltime job as the interim ceo twitter, more than a fulltime job. To join also Manager Company is going public is certainly an enormous risk to investors. If hes important to this company, youre not getting him fulltime because of all the time you spending try to fix the problems at twitter. Mind you, hes been trying to fix the problems of twitter for many, many years. Source ofa constant distraction for him, as much now as it ever has been. The square investors, when they start to look at this deal, i can we do see this filing when and if it becomes public. There is so much you want to know. Business isnow the profitable, have a customer has, with their growth rate is. Pimm i know you are going to tell us all a valid when you actually get to read the filing. Thank you, cory johnson. Olivia still to come here on the bloomberg market day, from third world the first. Can new york city modernize what many call the countrys Worst Airport . The laguardia revamp coming up next. Late flights, crowded terminals, horrendous traffic. Name the problem, laguardia highs on the list. It ranked number one in the airport frustration index. Vice President Joe Biden didnt mince words about what he thought about laguardia. Vice President Joe Biden if i blindfolded someone and took them to 2 00 in the morning in the airport in hong kong and said where you think you are, they would say this must be america, the modern airport. If i took him blindfolded to Laguardia Airport in new york, he must think i must be in some third world country. Olivia things may be looking up today. Announced all renovation of the airport. What can you tell us about the governors plans to make over the Worst Airport in the country . There, olivia. Good morning. Want to hear the Vice President s chat about hong kong, i lived in hong kong for four years. Coming from their airport to hear laguardia is really not in day. Not sure if its going to be third world, but he definitely drives home the point. And perhaps that is why we are here today talking about this revamp. His Major Overhaul he is talking about. The Central Terminal building, terminal b, the Main Building for laguardia. And what is expected is that we will have a whole new building that potentially could have soaring roofs and ceilings here. In addition to that, we might also get an air train going straight from manhattan to the airport in addition to that, there might also be fairies from manhattan. And a lot of interesting things that might be happening. Were looking ahead to 2 30 p. M. When Vice President biden and new York Governor Andrew Cuomo will be making the announcement. Initiativeis a state rather than a federal initiative . It seems that right now. For the airport in laguardia as well as new yorks jfk, as well as newark liberty, those are all controlled by the port authorities. Right now were looking at something that is contained originally. We dont really know what the money is going to come from, but earlier today i did speak to tom keene on surveillance and we thatd about potentially could come from the taxpayers to the tune of 4 billion, the Central Terminal here could cost as much as 400 million. We will have to wait and see what happens later on this afternoon. I know you have Actual Research about laguardias performance. Im wondering whether or not this perception a cousin new yorkers like kim and myself like to complain. Or things are really bad, if the data holds up . According to our own Bloomberg Survey from 2014 14 even for us Walking Around today, things really could be better, to be perfectly honest. I stepped into the restroom, i will describe what i saw because it might not be appropriate for the air. Survey,he bloomberg restrooms, for example were ranked 36 out of 36. In addition, something else, shopping was the worst here. Just walking along the Central Terminal area, you can see eddie bauer, but compare that to other airports. Get london heathrow, you highend shopping. Even hong kong, singapore, its major luxury retailers. Here, definitely not so much. Another thing, commute times lga and scored, 32 out of 36 airports, the commute time during rush hour was 69 minutes and security was also 29th out of 36. Itd be jfk and newark. Jfk is further. They should only take half an hour to get to laguardia. Forward towe look hearing with the governor and Vice President have salience afternoon. Pimm moore is coming up on the bloomberg market day. Pimm welcome back. Im pimm fox. Let us take a look at the top stories at this hour. The israeli drugmaker is bolstering its position as the Worlds Largest maker of generic drugs. It has began to buy the drug in cashying 40 billion and stocks. The chief executive calls the deal a smart move for his company. I certainly believe it was the right deal at the right time. This generics Industry Needs to consolidate. We have always maintained that we were not going to be a consolidator, but rather focus on consolidating on our fastgrowing brand business. This deal will further enable that. Pimm another generic drugmaker has been left out. , down of myelin plunging more than 13. 5 . Areshares of Fiat Chrysler lower this morning. The automaker has been hit with a record fine for failing to complete safety recalls involving millions of vehicles. Tot chrysler will pay up 105 million. This is the most ever in a civil case. The company will hire an independent monitor to evaluate how it handles similar safety issues. It will buy back more than half a million vehicles with defective suspensions. The shares of Republic Airways are in freefall today. They were down more than 50 at one point, now down more than 49 . They say the shortage of pilots may create more disruption in the flights that it operates for larger carrions carriers such as american and united. They have hired an advisor to explore its options. The pilot short and worsened after the faa increase the amount of Flight Experience sixfold to 1500 hrs. And greece is set to begin talks with creditors this week on a new bailout agreement. Says sippers is running out of cash. They have agreed to lend up to 94 billion the dollars 94 billion but only if Greek Parliament agrees to austerity measures. Those are your top stories of the moment who markets are closing in europe. For the latest, let us go to ejra. W shape histo nejra we are seeing a selloff on concerns about a slowdown in china. Take a look here at the map. You can see lots of it pretty much across the board. It is in italy that has led those losses. Let me show you some of these stocks that we have been watching in europe today. I will start with a couple actually. Fiat chrysler taking a hit after that record 105 million fine. This is about luxury stocks declining again on concerns of luxury spending slowing in china. No surprise that that is down to the new slumped of the commodity and particularly oil. Oil and gas couplings have been leading the loss on the stoxx 600 today. Up the stoxx 600, you can see that it is down on the day. Biggest fiveday drop this year. This comes after that nineday rally, which of course was its longest rally since april 2014. Even some of the betterthanexpected earnings that we have had, they have not been able to overcome those concerns about china. Interestingly, we have seen miners rally today. That is more of a bit of a relief rally. Overall, it is serious about china. It is what one called a commodity complex that is driving stocks down. Much thank you very reported from london. Coming up here, the foreign greek finance minister apparently had a plan to go back to the currency. I will tell you about a leak phone call between him and investors that has just been released and made public. The under armour commercial that future Misty Copeland are no mostly and or mislead popular. The dancer tells charlie rose how the sponsorship has helped her career. Home prices in the hamptons in rhode island are falling. That is compared to last year. Prices are down more than 6 . That means more choices and more price ranges. The chief executive of Miller Samuels spoke to the Market Makers team about why a hampton homebuyer can take their time. The hamptons has always been joined to the hip with manhattan. Activityeen a boom in last year. We have seen prices rise to most of that was a relief of pentup demand that started with lehmans and ended with the fiscal cliff. What really happened this year is all that extra was doe absorption now we are at above average pace of activity. We are not going in a downward trajectory. It is almost a reset from a couple of years of record action. Its, isi were to chart it safe to say that prices rose to a record and they are topping out. Plateau like a high of some sort is where it is that. East, theybout out are crazy about the level of activity being high still even though it is off the record. It is a secondhome market. It is not really behaving like one. It is behaving more like a primary market. What we are seeing now is 11. 5 ty that is actually in the Second Quarter above any other Second Quarter financial crisis. It is not at a record level. Buyingie was there a flurry in the last years because of an emotional sentiment . Many of us were thinking, oh my goodness, its a mess after lehman. People were in a race after these deals and chased prius is that Prices Higher and higher. Jonathan thats exactly what happened. She could work for you. Real states that tends to be pretty linear fit when prices go up, they go up forever. One sales go up, they go up forever. Its not. Its more of a reset. The level of growth we have had the past couple of years is not sustainable. This is almost a relief that we are seeing this moving sideways behavior right now. Stephanie does any of it have to do with the fact that people who bought homes out there without . Many have said it takes too damn long to get there. Other locations are becoming more acceptable. There are other places to go besides the hamptons. Hanie if you are a true ball or, are you going to the island or the mediterranean . Jonathan its no international buyers. Its all new yorkers. Hanie they dont want to pay the taxes. The ride from new york is longer so its a lot of competition. people are going other places. The endallons beall destination for bankers . Jonathan it still is. The market has not gone out of favor. We had just excess demand over the last couple of years. It is pentup demand that has been absorbed. Now we are back to a low bit of a matt coming back to an average hundred thousand dollars. 900,000. Stephanie are people just getting rational with the amount that they are willing to pay . Jonathan there is not that panic of being left behind, which we felt a year ago. Now we are feeling the study activity. Pimm that was jonathan miller, chief executive of Miller Samuels talking about real estate. Yannis and his secret strategy leave. What he says about currency and hacking. That is all next. Pimm welcome back. Im pimm fox. I want to begin to look at some of the top stories crossing bloomberg right now. U. S. Corporations will invest at least 140 billion to reduce their carbon footprints. The companies include apple, goldman sachs, and berkshire hathaway. They are planning to cut the missions and their water use. Able agree to help finance environmentally focused companies. And a big blow to bostons bid to host the 2024 summer olympics. Mayor marty walsh says he will not sign any document that makes taxpayers liable to cost overruns. He is referring to the host city contract that is considered crucial to any successful olympic bid. The u. S. Olympic committees board is meeting later today to discuss bostons prospects. It is one giant leap for Neil Armstrongs stacy. The Kickstarter Campaign to to save his space to raise 540,000. Tois going to be displayed commemorate his spacewalk. A plan was linked with the approval of this author, the former finance minister yanis varoufakis. This according to the International Monitoring terry finance institution forms. Take a listen. Createere deciding to reserve accounts attached to every taxpayer number. To have the system function under us. At the touch of a button, to allow us to give the numbers to tax Filing Number holders, taxpayers. From this recording comes a telephone conversation between the former greek finance minister and investors 10 days after he resigned. Joemore, im joined by weisenthal. Described for the people what he is saying. Thati find it very amusing 10 days after he resigned from the finance ministry that he is on the phone with hedge funders. But anyway, basically what he is saying that he apparently concocted a plan that if the Banking System were to shut down, and it was, that they could have a Payment System, and electronic Payment System linked to peoples tax id numbers. Although i cannot give you my money from my bank account to your bank account, i would have this electronic ticket cap associated with my tax id number. You have that number. I transfer money from my tears can you cannot take it out in cash theoretically could wear the Banking System to reopen, you would basically get credit. It is basically a spreadsheet that we keep track of payments while the Banking System was down. Pimm according to reports, this all has to do with the system in isece in place of the time really being run from brussels. He said imagine if for example the irs or the u. K. Inland revenue were being run out of brussels. There were eyes on them all the time. Joe it is a Crucial Detail in the story. Its not be planned that they just had to use the tax id numbers in the Payment System. He is the word hack in mccall hack into it to build the system. If they had told the creditors that we want to have access to the system, that might have given up wind of their plan. Pimm theres also a political element, too. German finance minister what his plan was after a greek. Xit joe according to varoufakisjoe , he wanted to push greece out in the pretense that they could show that they could dominate europe and build a fiscal integration that Everybody Knows needs to happen for the eurozone to work it according to verify this kicking greece out was the first step. Then they could convince the french that we all need to pool our money together. Joe it is good that you brought up that position. Pimm it would force the french to this. Joe that was the plan. Good people believe this . That there believe was a subtext of germany versus frances whole time and that germany going after greece was about sending a message to france. I do not think anybody knows exactly what it is. Nobody has stated it as clearly as varoufakis did, but one there is smoke, theres fire with this one. Pimm does he have a career advising hedge funds . Joe i think thats the amazing story. He is sitting on this call and reveals secrets to them. I find that incredible. Pimm youre going to fall this for us. Thank you very much, joe weisenthal. Still ahead, you can call it linkedin for athletes. A new business that connects Young Players directly with potential teams. And that might crowd out those expensive sports agents. Pimm the ballerina Misty Copeland signed a multiyear deal with under armour last year. Back then, she seemed like an unlikely choice. And then she made history, becoming the first africanamerican female prime dancer for the american ballet theater. She spoke with charlie rose about how the under armour sponsorship has helped her career. Misty i think the power that it gives me is for people to see me and hear me. Charlie and one to see you and. Hear you. Misty right. Its a platform for people to know what im saying and here at. With all the extraordinary gifts that you have, do they see a black woman or simply a ballerina . That theyike to say see me as an ballerina, as a dancer, but my experiences and the reality of this world is that some people see me as a black woman of their or thought or think i do not fit in. But i tried to be the best dancer in the best artist that i can be because when it comes down to it, that is what im working so hard for, day in and day out. Pimm that was charlie rose speaking to mr. Lee copeland mystics you can watch the entire interview tonight on bloomberg tv at 6 00 eastern and i 00 eastern. Inrts agent may be for a rude awakening. Sportjobz has signed up more than 500 athletes. Profilescreate free listing their statistics are recruiters can find them in the hopes of finding their next target betty liu joins me now with details. How does this work . Betty Jerry Mcguire does not have to worry yet. Pimm thats just dating us all here. Betty when my favorite films, by the wicked this is genius one of my favorite films, by the way. This is genius in my humble opinion. What linkedin has done for the job market matching employees to jobs and being a place for recruiters in the Business World is what they are trying to do with this Company Called sports jobs sportjobz. Lebron jas is not going to be on this. He is not going to be on this kind of platform. This is really going to be for athletes that cannot get regular agents to Pay Attention to them. A regular agent would have no bearing on who theyre going to play for and how much money they are going to get. They would rather negotiate directly with the team. Betty indeed. So far what this company has done is that it matched up a few athletes with teams in europe. Pimm big traveling basketball. Betty huge. You know this more than i do. Many of them want to recruit american players. They are not going to be recruiting the top tier. They will be recruiting third, fourth, and below. When we are talking contracts here, we are not talking multimillion dollar contracts. Were talking contracts worth 50,000 a year, but there is still a need. That is what this company is doing. They are fulfilling this need and playing the middleman here. Also, pimm,sting this Company Comes from tel aviv. Its an israeli startup. We have seen over the last several years many startup come from israel and over to the United States. And to be able to penetrate the market. It is again a testament there is a second story here. A testament to the big startup culture. Pimm we will have to see if they can expand this operation beyond what is going on in europe. 200 teams participate and 3000 players. Betty and beyond basketball. Its not just about basketball. Pimm its time for todays options inside. Lets go to julie hyman. Julie we are approaching the top of the hour. Lets look at the major averages and how they are performing i know. We have a major selloff continuing today with the major averages down for the fifth straight day. Joining me today is a derivative strategist at m campbell and camp holdings. We have this selloff going on. Commodities have been a part of it. What do you make of it. . Is it a reflection of negative sentiment on earnings . Jim they have or seem to knocked down stocks over the last week have come in a bit better than expected. They are tracking around 2. 2 . Prior it was down like 2. 5 . Julie are they always above estimates though . Higher, butlittle yes, they always be there and usually miss on the sales line. About 52 . Our take away is that even though people want to point to earnings as the potential catalyst for stocks being lower, to your point, i do not really think that is the catalyst. It is really commodities. Its china. Julie Going Forward because you are playing auctions start by stock on a stock by stock normal. Ou have to go we are looking ahead to twitter and facebook. One of the other options guys pointed out that we have seen this dichotomy within tech earnings so far between the older line stocks like ibm and microsoft anymore newer social media focused ones. Well twitter and facebook continue in that same line of being better performers . Jim yes and no. Twitter, yes. Facebook, no. Last week, we talked about them playing alongside. There are different ways to play earnings. Its not always about going in and buying call. We had two different trades in twitter and facebook. Twitter is really a stock that we want to hedge on the downside. Talks hit stocks hit about 30 since they last reported earnings. Down relatively sharply today as well. There are a couple of risks here. On the monthly active users front, that is really the critical number. That could be the downside for our analyst. Also, the second half guidance from the Company Looks a little heavy as well. There is definitely a risk to the downside. Can twitter does not have a permanent ceo as well. Jim this is a stock that we want to hedge out long trading positions. We want to sell upside call, in this case 40. 5 strike call. Ideally, we want to do that for no cost. Cost call. You have plenty of upside. Protected onu are the downside in the event that they guide lower for the second half of the year when the stock comes in. Julie twitter is tomorrow. Facebook is wednesday. And you said youre more positive. Jim it should be a strong quarterly across the board. Some the new targeted ad products should drive pricing. We expect nice traction in Advertising Sales probably. Looking for a strong quarter, but you have stock of significantly. 25 plus percent since the beginning of the year. We want to mitigate risk. We like selling some of that long stock and replacing it with the call spread. Go out to september and by 115 call spreads and get about four dollars for that. You still have the upside closure, but you have taken down some of the risk. Julie thank you so much. More bloomberg market day is next. Pimm good day. It is noon here in new york and midnight in hong kong. Betty welcome back, tim. Pim stocks plunge in china withm. Equities lower worldwide. The dollar falls. Pimm we talk about the friendly dealmaking in the pharmaceutical sector. For 40 is bought billion. Betty a big week for tech earnings. A preview of what to expect. Pimm good afternoon. Im pimm fox. Betty im betty liu. Look at the markets trading here at midday. Stocks are paring back from the session lows. Remember that they were really taken down overnight by the overnight slump we saw in chinese shares good stocks hig