Overnight 8 slump in chinese shares. The s p 500 is down. 5 . Lets take a look at the shanghai composite. It has lost 17 over the summer. Can see the drop their over the past three months over 18 . Oil and gold, oil extending losses in the bear market, signaling producers may continue adding supply to a global glut. Own one and a quarter percent gold futures are on the rise, even though it fell last week. Speculation Interest Rates will rise this year. Over to the treasury market. We have the yield continue to come down. For a while we have seen , the 10 yearyields yield down to. 32 . We have lost a list 9 on the 10year note in the yield. Markets, wency continue to see the dollar index up nearly 50 in the past six months. You are seeing companies claim that the dollar is a headwind in their earnings. Cuba and malaysia are no longer on the u. S. List of countries that fail to combat modern day slavery. Are being removed from the Human Trafficking blacklist. Governments need to strengthen and enforce the laws that they have on the books, and prosecutors must take tried in turning todays traffickers into tomorrows visitors. Prisoners. The private sector needs to be a part of this effort. By blowing the whistle on companies that use labor that is underage, underpaid, and under coercion. D aty they recently playe role in the thousands of reviews that is myanmar. Refugees that escaped myanmar. A rare appearance this fall for russian president vladimir putin. He will address the 70th annual United NationsGeneral Assembly in september. The u. S. Issued its first draft list of biggers for what could be the largest gathering of world leaders. Lso is the chinese and iranian leaders. It set the stage for the landlord nuclear deal, announced earlier this month. Third teenager u. S. Corporations are investigating 140 billion to reduce their carbon footprints. Today at the white house they will lead to cut emissions and water use. They will also to finance environmentally focused companies. Mark president obama is focusing on human rights today in their historic trip to ethiopia. Second mostfricas populous country. Militant Group Alshabaab is an even bigger threat. Infield hit faces serious threats, and with contribution to the African Union has reduced hearing under else control. But the Prime Minister noted, yesterday the holding in , offer nothing but death and destruction and must he stopped. Second stop, his he earlier visited kenya. Donald trump is still leading the u. S. Republican president ial pack. Ands ahead of Jeb Bush Scott walker nationally. The numbers come into play soon. Only 10 of the 16 candidates will qualify for a 12 minus debate on august six, and fox will choose which full to use. There is another big takeover in the help care industry. An israeli drug or half agreed to buy allergan generic drug business or about 40 billion in cash and stock. At the same time it is withdrawing its over from another generic drug maker. Buyawhill has agreed to Financial Services provider s l financial. Capital owned by the and members of management. Those are your top stories of this hour. Investing in chinese stocks are not for the faint of heart. Havehe last few weeks may caused motion sickness even among the most savvy. Mark as we have reported the ternational Monetary Fund rolled back is used to problems letl popup stocks, and the stock moves as investors demand. Join us now with our analyst. You for your time. Talk to us about this delicate balance that china is trying to strike between allowing the market to discipline itself and showing confidence in the market. As always, policymaking in china is a paradox. It is front home by what is happening in the stock market. The government is very keen to and i strongly believe this committed to move forward the Financial Market and broad markets into this. But the problem is any sign that such market volatility in the key Financial Market, that creates a problem because that reduces both the economic space as well as the political support. Been with paradox centers. In order to continue the process they are forced to do things in the shortterm. , so direct intervention they are hoping that the individual will be temporary. Markets are losing confidence that the government can stop the flood, theres going to be very difficult to take that contain the damage. I suspect they will have to do more than next couple of days or weeks to stem the brought. Terrible spiral a to find yourself in if youre in the government they are. Creating these rules in the intervention. Credited forely the 60 rally since we saw july 8. Once they pull away, you see the stock market fall. How do they get out of that cycle . To bethe moment is going very difficult because the problem is one they have created for themselves. When the stock market started rising about a year ago, essentially they let it go because of health and in terms of propping up investment. The consumption would do better if the house. They were well fear. Fear feeling the effects of that right now. Great knowledge with the rarely conservative side. Side, if youve look at the indexes at the beginning of the year, so the certainly take some hits, and the amount of capitalization in china, if you look at the free flow somewhere in the range of 35 percent to it is not currently a major hit in direct terms on the economy. But the economy confidence will be crucial. They will have to step in and a big way to restore government confidence. Mark what about the peoples bank of china . What role does the bank have in all of this . Did they let the escrow to quickly . A combination of missteps from the bank and regulations overall. News not like you do not have the resources to support growth. But they have not done that. What they could have done the winkrket with accounting, auditing standards, and technical infrastructure for training could be strengthened. All of these are things that they could have made progress over the last june, but they let it run because the stock market was doing fine. They thought these problems could be tackled later. Betty nothing like a good to ask the problems under the surface. Markets to mask the problems under the surface. Recently, our views about chinas have changed, there are now no safe places to invest. Do you agree with that,places at all . The china growth story and the china equity market are not the same thing. The chinese economy has been slowing over the last year in the stock market took off. It is suspected now that the economy is showing stabilization. Retail sales are beginning to stabilize, how the process are beginning to stabilize the market is falling prey lately different that of reasons. This is the problem, they do not have deep and broad Financial Markets that they can go to. But what is happening in the aock market could have impact. Investment, that is going to be very different the economy in the short term, but not involved in china, or the World Economy in the long run. Former head of the China Division at the international Monetary Fund. Always a pleasure to have you on. Coming up in the next half hour of the bloomberg market day, a leave the euro. Greece had one in place, and the former finance minister spoke about it on a call with investors. Betty Mike Huckabee is not backing down after likening the Obama Administration to iran. Betty welcome back to the bloomberg market day. Mark lets go straight to our senior correspondent, julie hyman. She has a look at the markets right now. Mentioned just a moment ago, quite a bit of action there today. Speculatedl in love on action, which i will get to in a minute. 33. 75 billion dollars in cash. Are higher today,irer following the trend of acquirers in higher the day after they announced the deal. From another takeover situation that was attempting. Allergan shares are higher as well. It has been engaged in a hostile. Akeover bid for mylan labs they have been rebuffing his efforts, so the mylan shares are down sharply today. A has been trying to acquire drug maker based in ireland. Now will see what happens after this latest deal is done. Take a look at my bloomberg terminal. We have this deal flow going back in the pharmaceutical industry. The blue lines are the amount of deals, the dollar volume of deals. Even though we have had fewer in ,erms of the number of deals the dollar amount has gone up to a record. Who could be the next to come . Take a look at the pharma stocks on the rise. Am j rising significantly. Maybe leading to a potential target. Allergan is selling off this generic business and getting 40. 5 billion it is week to continue to make acquisitions. It has been very inquisitive thus far. The other stock were talking about is via jen. The shares are arriving today. Take a look at my bloomberg tarbell. It would make me a good acquisition chart. They announced a study of alzheimers treatment, but it has been coming down from that seaurge. I have generally had its forecast was sending the shares down more than 20 in a weaker sales of its ms treatment. All of this means that the stock is a lot cheaper than it was before. That is one of the reasons now that folks are talking about it as a potential target because over the past week or so, it got a lot cheaper in terms of tires looking at it. Betty thank you so much. Now a look at some of the top stories of this hour. Three Public Workers are serving new jersey for billions of damages. The filing is the latest folly in a more than yearlong over contributions. Decision lasts year to beer from a funding plan peasized into law in 2011. A site plan to revive the Export Import Bank is to the house and some House Republicans opposed the bank, which helps for companies by u. S. Product. There is a race half the hiring of which runs out on friday and other rich getting richers . Worth of the worlds top 400 millimeters rose by nearly paid the topn in gainer this year jeff bezos. Stories isour top our. You can lose that much. Oney, and still be on top it is interesting because of where we were and where we are. Sometimes the charges not to get numb about it because ugeare talking about her sums of money. Can go fast. Coming up on the bloomberg market day, the former greek finance minister reveals de tails of the secret plan to leave the eurozone. Mark welcome back to the bloomberg market day. Betty well talks with creditors were going on, greece was secretly making plans to leave the eurozone and started parallel currency. Former finance mr. Can be heard talking about it on a call with investors. Listen to this. Createere planning to surreptitiously the reserve every taxtached to file number, just to have this system that could function under us and at the touch of a button, to allow us to give the numbers to taxpayers. 10k the recording happened days after he resigned his post. The question is, are those plans till active . Joe weisenthal joins us in studio. Did he know he was being recorded . I am sure he did. Did not, the idea that he was talking to always investors and this would not get out there is kind of silly. Slain what he is talking about. These reserve accounts being attached to each taxpayer id. Anyone knowshink exactly, but the just is that if a making the system is shut down, you come over to be an victim underwear we have all her face and information on a spreadsheet. And if i want to pay you, just numbers transferred from one to another. Theoretically when the big system reopens and all those transactions are reflect the event happened while the tank was closed. I think that they have the idea. Mark is that a little sneaky . It is very tasty. But they would say you have to be sneaking a situation, because you cannot reveal that your planning for an exit. Will be your responsible to not plan for annex said. He is arguing that you have to be sneaking in this situation. Thinking, theye were that close to about leaving the eurozone. He wouldve had to continuously find the space. What is it about hacking into the system . Is sexually, this database of all different tax identification numbers, which they were going to use for this system was not something which they had easy access. Therefore he sat on the call to they were going to have to hack into it in some way in order to death of this banking system. Thinking of the baking system, went through almost a month where the eggs were closed. Where there were caps off controls in place. Catches the situation look like now . They have office of a of a they are obviously capital controlled. They do not lift very easily, because what you said the message that the money and youre vaguely not be accessible easily, they want to take the money out. Be a slow process, completely restoring the Financial Systems and a little bit. Thank you. Well see you on what you miss. You miss . Yod coming up on the next halfhour, about half the candidates raising her head for president next year says they will bring their focus is state governors to bear if they win the oval office. Budget governors really make a good president . Betty welcome back to the bloomberg market day. Thank you for staying with us. Lets take a look at some of the top headlines crossing the bloomberg terminal at this hour. There has not been a dealing this and 2007. The benchmark shanghai 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, the president on the council of Foreign Relations called it a serious political problem for beijing. Areais is a nightmarish an for the chinese leadership. In the economy slows, the markets all, and you start to have political unpopular push back. That is what they are worried about. Mark the Chinese Government has a lot more than working hundred companies to quit trading. And major shareholders from selling their stakes. Airline in the major shares. A major Pilot Shortage may cause stakes for american and united. They have hired an advisor to explore its options. The shortage got worse after the federal leaving a Mission Administration increase the amount of Flight Experience six fulton 5600 oh tfold. Has been ae there rise in durable goods, that reflects a surge in orders for planes. Ial air more than 100 best buy stores will begin selling the watch a week from friday at an additional 200 stores will give the Vice President holiday season. The change website will also sell it. Coming up, the bloomberg Vice President biden new York Governor Andrew Cuomo are about to make a major announcement at look 40 year or laguardia airport. Will it be enough to eat crowds ease crowds and delays . We will get the latest on form of mergers. 2016 president ial field includes 10 sitting and former governors, gige policy to fight for the entire nation as they did their home state. This includes the Top Republican candidates after donald trump, scott walker of wisconsin and jeb bush of florida. Former senator from New Hampshire oh endorses Ohio Governor john kasich and believes that governors to bring more to the table than other lawmakers. Thank you for joining us on bloomberg market day. We appreciate your time. That experience, being a chief executive, how does that translate into the oval office . I think it translates to the role of the presidency. , i havely its chief in dealt with legislators, ive dealt with cabinet. Ronald reagan, bill clinton, george w. Bush, even fdr, they were very sick all what you agree with them or disagree with them. To manage the levers of government and really push forward. Consent they just gave you the former governors have said regardless of whether you have been a chief executive on any level, nothing can compare you truly are being president of the united states. Theres no question that having the job is the best experience of all. But we do not have that luxury in america because we have a twoterm limit on president s. I think you look at it entire record experience. I support john kasich on espn in congress as well as the governor. He is been in the private sector, and he looked at the other candidates in the race who have served as governors. Some governors have been less successful. We elected jimmy carter, many people what are you we had a very successful residence the. You to take the entire record of experience, and success. Just because you have the governor does not mean you to be great at balancing budgets for promoting your state. Mark lets talk about the overall u. S. Economy. Hashis been something that basically been handed off to governors because of interaction in washing to . Ton . Of state lawmakers doing what washington cannot and will not. They may be,ses but i would argue that this is the administration that has taken power away from the state. They have put requirements and mandates and attached strings. Rograms taking power away from the states, from the individuals families, and that is one of the things that has hurt our economy as a result. You will see republican candidates for president , and those who served as governor in particular, is going to give more power and control back to the eighth. Get rid of the strings of a granholm of this Education Funding to states to move more flexible. Get washington bureaucracy out of leases where it does not belong. Washington and is president of particular likes to put his finger in almost everything that we are doing. At some point, if a governor were to become the next resident of the united states, is it incumbent upon a person to understand that some policy just has to be uniform . Think there is a role under an opportunity for that. At the experience with education standards, with trying to create uniform texting for state and child in the country, and has been a disaster. Every day and have already pulled out of that uniform Testing Program because eurocrats in washing to fails to do a good job, and because people in local School District do a much better job. Look at the experience in health care and the attempt to drive a onesizefitsall across the country. See that rates are going up in tennessee, michigan, and other states that its not the right direction, we want health care. Ost to manage how is, deliver health care to the needy, but together in education regular. We understand that. You talk about the right direction less time about the direction of the rhetoric we have heard so far during the campaign. We heard comments from the former arkansas governor that again will they. The iranianout nuclear deal, and he said it is so naive, he president obama would test the iranians. He will take the israelis to the door of the oven. Doubt a reference to what happened during the holocaust. Rebels of the politics involved, is there any place for that in the american political discourse . I do not think that is helpful rhetoric and all. This they have great concerns about the Iranian Nuclear deal. There are ways for your audience to delay install wave alone supposed to 24 hour time there is no harm at all for them to come the proud their previous history of Nuclear Research for military purposes. I think there will concerned about that type of hyperbolic. Hetoric mark senator, i must ask you about the size of republican field. Does it concern you that some of the back and forth as the democrats do as well, that some of the backandforth will not lift the party, but the goal is to tell your oriented down on the way to the nomination . It is such a big field, you opponents out. R it will be incumbent on republicans to set themselves apart. Strong, deeper mulligan field. That is a good thing. I came out of her primary may vary for selection, and my primary from the house, i one very narrowly. It made me stronger, better candidate. I have had tough primaries in the past, be strengthened by then. Will have been easy victory, as you behold server for it. But being fact that she was the only one out there for so long protected her. Lawsxposed weaknesses and that just became to come to light. Many people do not think Bernie Sanders is getting a serious candidate. Seeming to clear the field is not guarantee you the nomination. Johnson in joining us this afternoon. Thank you for your time. Still ahead on the bloomberg market day, our italian Luxury Companies headed. Or to bewelcome back bloomberg market day. Lets get straight to a check of the market. Julie hyman is standing by on this last monday trading day in july. Ent by very whe quickly. It is not a good trading day, it looks like we are near the lows of the session. Really interesting action, if you look at the intraday chart of the s p 500 in the euler. Take a look at my bloomberg terminal. Assist the constraints session we have fallen in the s p. Look at the various moving averages, 50 day moving average, the 100 day moving average, these are various momentum indicators that technicians watch. The notable thing right now is were below all three of those moving averages. What tends to happen is you get a bounce off of these levels. Today we have broken below it. It will be significant if we close below it, that is something to watch here. Interacting action as we have watched it. Right now we are up about half a percent for the s p. The unchangedng line . Anytime we have fallen below this line, we have been down here. We have fallen below it quite a bit. Has been a volatile wine year. The moving averages are seeing get in terms of the bouncing around but we have seen. About something that has been driving some stocks, that is the commodity market. Out toay is pulling back get this losing streak that weve seen for commodities and gold is rebounding today, but oil has not yet. Pretty deeply below 50 a barrel. After we saw a huge a lot of oversight in china, the big consumer of copper, we can see it is down 1. 4 . Aching of losing streaks, this is a seven session losing streak trace that. Ue to lets take a look of some of the top stories were following at this hour. Disney ceo says yes and will eventually be sold straight to consumers without a cable subscription. With cnbc, bob iger was quick to act that it will not be happening anytime soon. It would mark a big change for yes en, which is pretty big moneymaker reduce the. Big blow to bostons bid to hold between 24 summer olympics games. Day are says he will sign a he is referring to the host city contract, the susskind the prospect of boston. Fox sports is making a bet on Fantasy Sports. Is Fantasy Sports website adding 300 million in new investment. Half of that will come from talk sports which is taking hot increasingwhich is their investment. Those are your top stories at this hour. Many investors expect the blitz to wear off a tolerating italian luxury stocks in the few months. Shares of kuching l. A. Have been shoulder short. Scarlet fu is joining me for the next hour. Consider they want to punch of a flied out asian. Argaret market in addition, these italian stocks have gotten a big list of the past year, a rally has sent the revolution to above average level. You are seeing a little bit of money being taken off the table for that. With any kind of shorting there be some terror going long it is difficult to say. They are not necessarily pessimistic. We said in the set up this but one of the big reasons recent run ups in the share price, what is the significance . Easing hasantitative driven a lot of people into european stocks. Particular, these luxury names that have done so well with their sales overseas in terms of their sales. They have beat analyst estimates. The question here is because of you asian. It has estimated p ratio if you want in the Short Interest in a share, which can see the full street right there, the average share is 1. 3 in a big divide. Mark i would have thought ferragamo. Hear italian luxury, but only the first things i think of. Scarlet a lot of analysts are thinking why it is a warm short stock. The biggest comeback reregulate the biggest business is shows luxury, leather luxury goods. To be a little bit more bearish on the outlook for a company. In the next hour we have and have Bloomberg News reporter about the big drug deal in the formrate and talk to us a little bit about how regulators might see this as well. I want to get the vexed story from him on how this happened very especially when they were chasing the same company at the same time. Mark thank you. Still ahead on the bloomberg market day, look have any list of the worst airports in the world, the Guardian Laguardia is sure to be there. Should it effect or just shut down . Mark welcome back to the bloomberg market day, i am mark crumpton. Late lights, crowded terminals, horrendous traffic. Problem and look for the airport here in new york city scores high on the list. Inuardia ranked number one the airport frustration index. Vice President Joe Biden did not mince words about what he thought about the airport. If i blindfolded someone, and took them at 2 00 in the morning to the airport in hong kong, and said where do you think you are, they say you must be america, it is a modern airport. If they took them to the laguardia airport, they think i must be in a third world country. Mark the Vice President not mincing words. Things may be looking up, in the next hour he will join new York Governor Andrew Cuomo to announce a billiondollar renovation. Our reporter is there now. Good afternoon. Good afternoon. Every time i hear Vice President talk about la guardia and comparing it to hong kong, it makes me smile and shake my head because it is one of the best airports in the world it comes in over one or number two relative to singapore. Here we are, laguardia, dead last. In the next 40 minutes or so, we ,re expecting that announcement talking about what could be expected, which could give hope to a lot of new york and new jersey passengers. A brandnew central turmoil, right now i am in terminal b. This is the Central Terminal building where people check in. You can see the ceilings are pretty low. Were expecting something along the lines of the great hall. You know how can has grand central, this could be the Great Central or here. You can also have a rail line going straight for manhattan as well as the fastest fairy service. Is no airporte hotel, that could very well be the case, and we will only know within the next 20 minutes or so. 40 minutes or so. For we know the timeline these improvements . Were looking ahead to the First Quarter of next year. That is when the groundbreaking and construction might start. But as you can expect with something as you just this, the 4 billiondollar project, we are not really sure on where that is going to happen a lot people have been taken to social media saying i bet that this will not even happen. It might take several years. Looking at it, there is a consortium that is backing this. It is interesting that the Top Three Companies that are listed are not even american companies. Company is aion swedish company, and there is the operator which is from canada, as well as an Infrastructure Company which is from france. All told, they will be putting will bebillion, just funded by bonds that will be sold in the order of about 2 billion, as well as 1. 5 billion coming from transit fees. Mark thank you. Theng up next half hour, bond fund manager advice chair will be speaking to my colleague alix steel. We will be right back. Mark if 11 00 a. M. In San Francisco and 2 p. M. In new york. There is more drug company m a to tell you about. Could the hospitals be next . Worries about us own economy in china. How long will Government Intervention work . Mark are you analytical or more of an advertiser . Athizer . Emp[ mark i analyzing the script. Scarlet i guess we have a spoiler here. This is the longest losing streak since midjanuary and it is part of a global selloff. Weve got the msci