Composite, spread to europe, and spread to the u. S. The u. S. Holding up much better than we thought. You may want to buy some weakness in the next day or two. Scarlet that is what people are doing given the losses have moderated overtime. 75 stocks fell for everyone that really you are not seeing that much negativity here. Take a look inside this terminal put the s p into perspective. What you are looking at is how long until the s p gets a 10 correction. Is the third longest stretch. The first since 97 and 2007. Do you want to be associated with this . Scarlet come inside my bloomberg terminal here. A 200 day moving average. Within the bloomberg terminal you can see this. The purple line as a longterm trendline for the market. We bumped up against it three times this market. Three times. You can see the purple line has been at support level consistency level consistently over the last year. We bounce right back and now we are touching it again. Brenda a lot of traders want to work around this level. Lets look at some stories crossing the bloomberg terminal. Day likent been a this in chinas stock market since 2007. The shanghai composite index falling 8 . There is growing concern a threeweek rally sparked by unprecedented government in Government Intervention can be sustained. Called a serious political problem for beijing. This is a nightmare scenario for a nightmare scenario. That is what they are worried about. Brenda the government has allowed 400 copies to quit trading. It has banned major hit banned major shareholders. Scarlet secretary of state john kerry announced both countries are being removed from the traffic came back trafficking blacklist. Is not justthe job one for government. Secretary kerry prosecutors must take pride in turning todays traffickers into tomorrows prisoners. The private sector also needs to be a part of this. Blowing the whistle in companies underpaidabor that is and under coercion. Scarlet cubas upgrade as part of the normalization of relations within the u. S. Mining,tries such as construction, and domestic service. Brenda Vladimir Putin will and will it rests the United Nations in september. It could be its largest ever gathering of world leaders. Also on the list is private is chinese president gigi ping. Chinese president xi jinping speculation of a rapprochement between u. S. And iran and set the stage for a landmark nuclear deal. Scarlet the companies include apple, goldman sachs, and berkshire hathaway. Plans to cut emissions and water and water use. Brenda donald trump is still leading the republican president ial pack. And scottd of bush walker nationally. The numbers will come in to play very sue only 10 of the 16 candidates will qualify for a televised debate. Takeover. Nother big the price was 40 billion in cash and stocks. Brenda mcgrawhill has agreed to by snl financial to buy snl financial. The price is 2. 2 million 2. 2 billion in cash. Owned by new Mountain Capital and members of management. Scrubbing federal safety regulators are imposing their biggest fine on an automaker. Fiat chrysler will pay for failing to complete safety recalls in over a mill in over 11 million vehicles. The company will hire an independent monitor. It will buy back over half a million vehicles with defective since pensions defective suspensions. It is a good example of how not to conduct a recall. Is a matter of omission, the reality is consumers were not protected in this situation. Brenda best buy will become the first retail chain to sell the apple watch. More than 100 best i stores will sell it a week from friday. An additional 200 stores will get the invite will get the device by holiday season. Scarlet those are your top stories. We have much more coming up in the next half hour. Mike huckabee sounds off on the iran nuclear deal, saying president obama has not taking the threat to israel seriously. Brenda and bugs bunny turns 75 years old, we will tell you how much he has made. Scarlet on that and much more coming up on the bloomberg market day. Brenda the Trading Market is pushing the 10 year yield into the lowest level in 10 weeks. Scrubbing with over 242 billion under management how much of this is a safe haven play and how much of this is reaction to anticipation of the fed is actually going to move . Guest those are the two main drivers there. The anticipation in september and possibly december is coming from members of the fed. And a look at the evidence. The seat haven part is a complicated. It pushes money toward each of the major five reserve currencies. Swiss is actually a bit more pressure. That is from eastern europe. Rest of the world tends to push money toward the dollar. Now what happens if the fed on u. S. Dollar obligations . Starting with treasuries . We are getting a push and the moneys of the moneys in the area of the world are coming. It complicate that particular part. How much of that is technically the feds consideration . Technically not a very much. Realistically, quite a bit. There is the catch 22. Thebbing how much of decline under 3 do you believe is related to actual deflationary concerns and real worries about Global Economic growth . Guest it is slow and estimates are coming down. In the u. S. Estimates are not coming down. From an economic viewpoint you can say this is the big growth area of the world. The safe haven is i dont know any way to measure that, but it is very real. I have anecdotal and partial from our own activities. It is sizable. What is the number . I dont know. Why did they want to be here . Safety. Is not a yield induces over their whole market by any means. But it is a yield inducement among the other majors. I doubt if the fed knows how to decipher they have a domestic mandate and their principal worry is international. Scarlet that is not a good spot to be in. To take yount inside the bloomberg terminal to show you a chart. Rate of the annual inflation investors are pricing over the next decade. Below 1. 7 5 is from 1. 9 in late june. What is likely to come out of the meeting tomorrow. What are they delivering tomorrow that we should expect in september or december . pricesjust guest are down yearoveryear. Without the cost of labor . Hard to measure. That adds up a couple of percent. Things are going this way and that way. The one that is rising cost to labor is based on the utilization of the labor force. Less people in the official labor force, but the participation radio is starting to come up a little bit. You know that the jobs are there. Cast back in your memory to 50 years ago. I was alive and well in the business. Not 50 years before that, contrary to that. It is 10 overlay with a replay of that time, and the fed got caught with political pressure on one side and they could not react. People have learned that lesson, they dont want this to happen domestically. What about the rest of the world check rest of the world you go what about the rest of the world . Brenda wheres the biggest opportunity that you see on the stock market in the bond market . Case thatis not the you take all your money and go along in the bond market. I think the pressure will mount on the fed and they will have to let that shortterm rate come up. When the shortterm rate comes of the longer rates will come up somewhat. I could be wrong in this, i dont think the curve is going to bend over, the yield curve. That is the dominant pressure. And the only bargains i see right now are where you take a high risk, and it is in the energy area. Past so much in the materials area. Not so much in the materials area. Whatever you want to use to measure getting down into the 40s and stays put, it is a bad that except for the few. You arent going to make as much money that goes to an hundred. Thats not going to be a survivor at a lower price. The whole group is for sale. Moneyyou can take some and take your aspirin. Scarlet vice resident and rman at portfolio president obama is not taking irans threat saying president obamas not taking irans threat israel seriously julie hyman is looking at all the movers, especially in the Health Care Sector. Julie you talk about that 40 billion deal buying the generic business from allergan. Lets take a look at these two stocks. Commentedrequently that the acquirers have been rising more frequently. We are definitely seeing it again today. As this sells 6 off that generic business. And teva increasing his bargaining position. Teva was in the process of trying to buy mylan. Mylan had been quite resistant to being acquired for about 33 billion. Shares are trading sharply lower. Para go has been rebuffing mylans efforts. We will see if the latest deal changes anything and tries to get bigger among these drugmakers. Getking of the drive to together, take a look at my bloomberg terminal at m a. They greenlight the number of fields and them sorry the symbolic number of deals. The number of deals, relatively small, this is an announced deal, but their big deals that we are seeing is so large in this particular case. Who is going to be the next to fall here . Our again said it is going to look to potentially use the proceeds from this sale to make other acquisitions. A couple of names have been mentioned by analysts. We are looking at bio chen. Gen. T bio an acquisition by the company can help resume help restore consumer confidence. I guess we dont have time. Selling very sharply last week after the company cut its announcingd disappointing results. Thank you so much. Mike huckabee making headlines. Come brenda, brenda it was part of a general pattern that was considered ridiculous if it werent so sad. Joining me is Bloomberg Politics editor mark halperin. To thent obama opportunity to challenge the namecalling portion of the laquon party. Mark on the one hand he doesnt really like to get involved in politics and what he calls the hand season on the other he is going to turn the white house over to someone in the next 18 months, and he wants it to be a serious person. He decided to tell the world he thinks that is beneath the to replace him for the job of commanderinchief. Brenda do we expect this to continue for the next couple of days . Mark huckabee hasnt back down. Republicanf candidates that spoke of yet. I assume more of them will over time. Dont think president obamas going to weigh in on a regular basis. When there is an acumen nation of things he wants to weigh in on. He thinks its to the advantage of his party. Is watching this, as he made clear today. Scroll think they will have charlie black. Brenda you dont want to miss it. Scarlet absolutely. Still ahead, you can probably call him bugs money. Scarlet bugs bunny coined one of the most popular greetings in american culture. Whatsapp. Whatsapp whats up, doc . Scarlet things he won an oscar as well. Brenda this bugs bunny was not the original. In 1940, starting around 1938. It was voiced by mel blanc. Warped over the years. He has gotten longer. He has battled elmer flooded, he has a lovehate relationship with daffy duck. Sometimes they are friends, sometimes they are enemies. Brenda my favorite one was opera. Whats opera doc . Scoping the next person may be lebron james. He teamed up with one of brothers to work on television, film, and original digital content. On james did filek warner bros. Trademarks for space jam and there is reports that the studio is working on a new spring on a new screenplay. Space jam is the biggest basketball movie of all time. 232 230carlet million globally. What to what this secondplace . White men cant jump. Space jam. Michael jordans acting chops are cemented in space jam. Brenda always a pleasure. Lots more coming up on the bloomberg market day. What is going down with gold. The price of gold at a five year low. Mom has always been one of those people who needs to keep busy. If shes not working in her garden, shes probably on one of her long walks with bailey. She was recently diagnosed with a heart condition. I know shes okay, but it concerned me shes alone so often. So i encouraged her to get a medical alert button. Philips lifeline offers the best options to keep her doing the things she loves in the home she loves. If she ever falls, or needs help, i know we can get to her quickly, and with her condition that can be critical. And even though she doesnt typically go far from home, the button always goes with her. These days, shes still as busy as ever. Just the way she likes it. Innovation and you. Philips lifeline. Lifeline is americas 1 medical alert service. Visit philipslifeline. Com caregiver today or call this number for your free brochure and ask about free activation. Some top stories cross the bloomberg terminal at this hour. Shares of republic airwaves are taking a beating today. There may be more disruptions in places of a large carriers like american and united. The carrier the shortage got worse after the faa increased the Flight Experience sixfold. Restaurant brands added new sandwiches and brought back burger kings classic chicken fries. The company also owns the tim horton restaurant chain. Orders for durable goods increased 3. 4 . It was the first time in three months there has been a rise in durable good orders. By the rich getting richer . New figures from bloomberg say yes to get latest index shows the world of the word the worth of the worlds top billionaires rose 195 billion. Delegates dropped more than 2 billion in 2015. Increased by nearly 20 million. Your top stories. Coming up in the bloomberg market day, the sense of calm that has fallen over the Chinese Market has been shattered yet again. We will hear from richard haas. And when will the companies behind the sharing economy changeover from freelance workers . We will discuss that and the initial report on secondquarter gdp comes in later this week. All that and much more coming up. Morgan stanley commodities analyst tom price says it could even go as low as 800 per ounce in a worstcase scenario when he spoke to Olivia Sterns and pimm fox earlier today. Tom we are struggling to find a benchmark we can believe in. The number is based on the marginal costs of production for that particular metal. That may have people talk about fundamentals in gold. A lot of people dont believe in fundamentals. When you see a scenario like this it is probably worth thinking about. Olivia we have seen some new moves in anticipation of raising rates. Why is the gold market moving now . Tom they have been looking for reasons the benefit gold has raised in months is a large selloff of other commodities. I think some investors and commodity have traced it into gold. Think cold can hold up much longer. I think it is going to be a departure for the gold space as well. Tell us your price perspective. Tom we are thinking of prices of 15 through 16 over the next six to 12 months. Above probably 10 to 15 spot prices. They are really being hammered at the moment. The pressure is really china centric. The there has been closed between the equity market and in china. Being commodity rich, they are seeing some evidence of having losses and of having losses in the equities can is one of the shortterm pressures. Floor foreres the iron ore . Tom right now the trade should remain stable. Stays very stable between may and august every year. Back. T should pull steel prices will come under pressure there. An could be a risk of of a correction. There can probably be a. Hortterm price 50, expect the price at that level. Pimm wheres the next trade right now . Tom probably the commodities that would be most insensitive to current selling pressure would be the cold space. The coal space. Steel production has been harris so hard in the past two or three years. Coming up on the bloomberg market day we will take a look at the employees behind the sharing economy, when will Companies Take them on all time. Alix the shanghai composite plunged by more than 8 . Hong kong index slipped more than 3 . Showing aeports decline to a 15 month low. And a sense of calm as foreman over the Chinese Markets since Government Intervention seems to prop up stocks. Bloomberg Surveillance Team asked richard haas for his take on the Chinese Governments response to the selloff. Richard so much of the legitimacy of the communist party depends on one thing, delivering ever higher levels of Economic Growth and improve standards of living. Does thison is where government, where does this party get its legitimacy yeah come they cant quite figure it out. These are probably participated in markets. They have a real problem on their hands. That is why you see massive intervention. This is a serious political problem. This shows things are working. Things this a discrete with a wall around the market . Their legitimacy rests on 7 growth. What does that have to do with the underlying growth . Richard there isnt 7 growth. What this shows is the stock markets have become rod markets. A lot of Chinese People are investing in them. Is going to contribute, i would argue, to greater political tightening. This is the nightmare scenario. The economy close the economy slows. Then you have push back. Many started saying it really does overvalue. Is this something that can be contained . Richard they have to be nervous about it. They tied themselves to it. They want to avoid the political costs. Alix that was richard haas on the council of foreign relations. Time for a look at the markets, just 15 minutes before the closing bell. Julie, it could have a lot worse. I was my feeling when you saw the chinese stock market selloff today. Julie we are seeing the selloff here. It are saying exactly the same thing matt miller said this morning when we got underway here. This is where, as matt pointed what investors and traders of you has the appropriate level given the information that we have today. The nasdaq is now at the lows of the session. Not down more are today, take a look at what we have seen over the past five days. A selloff of nearly 3 . The first we have seen since midjanuary. It is only the worst fiveday performance since late june. Take a look at my bloomberg terminal. Lines are moving averages. The yellow and green are in the 100 day and 200 day. Right now we are trading below those averages. We will then see if these triggers are for more selling. That is a wise line. We are seeing them diverge. The high beta stocks are down about 11 from their highs earlier this year. The s p 500 is down only 3 . She says when we have seen this in the past, we have been seen the s p 500 catch up to the downside fall even further. We will see if that happens this time. In terms of highly cyclical names, they are selling off. A lot of them tied to commodities. Commodities, about underlying continue to selloff the slump accelerating as they went on. Copper futures down seven day in a row and treating at their lowest still in six years. No recovery. Gold accepted in the commodity. Alix im not convinced. Good stuff, thank you so much. Julie hyman. A look at top stories this hour. The 22yearold daughter of what houston has died. Found unconscious in her home. Was found dead in a Hotel Bathtub in Beverly Hills in 2012. Disney ceo says espn will be sold straight to customers without a cable subscription. Add thatwas quick to it wont be happening anytime soon. It would mark a big change for espn, which has been a big moneymaker for disney. Fox sports is making a bet on fantasy sports. The daily website draft kings is adding 300 million in new investment. Half of that will come from fox sports. The nhl and Major League Soccer are also investing and Major League Baseball is increasing its investment. Those are your top stories. Regulators are looking deeper at how startups like bloomberg classify employees. Silicon valley is also taking note. Companies reclassify them than employees. I am joined by emily chang in san francisco. What does that mean. That would that mean . What does that mean . Emily chang this is a company has this 10i9 economy debate. Looking into countries like bloomberg to determine whether goober drivers should be can it fulltime employees and get fulltime benefits. There are also companies on the other side that have said we are going to take freelancers and make them fulltime. Ship is a company that comes to your house or business and will package up anything you want to shift for a five dollars flat fee. Withhey have partnerships various shipping companies and various retailers to bring down some of those rates. Incidentally they have insert themselves in this debate. We will be speaking with the ceo to talk about why they are reclassifying their employees, what he thinks makes the company any different, and i dont know if you have used it but i am a big ship user. We are going to talk to them about how much the company is growing. Julie i would assume they also would lot alex thing i assume they have heavy overhead in terms of their shipping. Emily im going to deep im going to data deep down. All of them are already. We are going to talk about, you guys are taking on extra costs that Companies Think they can avoid. Why . Alix you are going to be talked about the square ipo. What is the latest . Pretty busy. I must say. Emily 100 . The interim ceo of twitter as well as between Kim Kardashian over the weekend. Asking if he could enable the ability to edit tweet. There are a lot of questions about jack dorsey cost future. Can he really neat twitter fulltime . We Search Committee said want someone who can focus on this fulltime, which would eliminate him as a candidate area a lot of people think he already is ceo. We are going to be digging into the timing here. Why is square filing to go public right now . What is on the table . House how well is square actually doing . Venture capitalists who worked as square for many years. He will talk to us about how he thinks the company is doing. Isthinks the environment premised protect ipos. Alex thing you can catch more of emily m bloomberg west coming up at 4 30 p. M. Eastern. Still ahead, china continues to be the big concern today in the markets. Investors worldwide wondering how much that damage will spread. Alix the shanghai composite index falling 8. 5 . The volatility jumping 300 and three points. It was an unbelievable move. , the ceoe now is dan of pfizer investment, which has 3. 4 billion assets under management. How you view china. China . China view dan it is messy. Theeek that my feeling on way the market has rebounded and wipe them out in one day is investors are very anxious about the fact that this is such a controlled environment. The Chinese Government allows over 1000 stocks to trade. It plays around with the margin rules. It tells big investors do not sell. Have a free market if the central bank is always getting in there and saying we dont like what is going on. Doesnt mean that with the government did it didnt work . All of a sudden you turn around and went out. Dan saying something does or doesnt work in china it is a joke. This is a country that two weeks after the end of the quarter is able to tell you that growth was 7 per annum. Economy and we are not going to get our first read on secondquarter gdp until later this week. China doesnt revise its numbers. What it says happen at the end of two weeks, done. Say are doingey is working or not working, it is hard to tell. Alix i was oppressed he was not down more today. What do you make of it . Dan chinas market is this on free market. It is a controlled market. Europe was down two point was down. I think what is going on in the u. S. Is companies are much more solid. They are generating earnings. In general earnings are growing. Industrial, the durable report might change that a little bit. Every secondquarter first estimate of gdp has been higher at the end in the last seven years since the financial crisis. Every single one of the secondquarter reports we have gotten, the final numbers for the final numbers are always higher. We are constructive on u. S. Stocks, but we have still down we have sold down. We are almost double the market weight in health care. We are buying in foreign developed markets. We dont by individual companies, we buy a fund run by fidelity. We had the manager to talk to us a little bit about what he sees and where he is going. This is one of the best managers. Lot. We do have a m a is in this Health Care Sector . It is one of two sectors that let this rally in the s p. Dan it may have to unwind at some point. Anytime you see huge amounts of mergers and acquisitions, at some point they started realizing they cant make all of that work. Im not concerned about how much longer it can go on. A little concerned about the size of some of these companies and whether they will be a will to right side of the companies and Balance Sheets, right size all the Balance Sheets and make these things continue to be juggernauts. Alix double their debate is the hottest among the gold. What was richard saying . Dan gold is most valuable when it is hung around the neck of someone who is very beautiful. It is not an investment. You do not i have an investment. The people that say gold is in inflation hedge, gold hit a high. F 2200 back in 19 70, 1980 we are half of that today on an inflation adjustment basis. You can go through the litany. It has no intrinsic value. Alix what should it be worth . Worth what of the people in the market determine it is worth on that particular day. Andust trades on demand demand for itself to not even use it. Alix one thing you are watching this week. I am watching the gdp numbers. I think will give us a sense whether this recovery from the First Quarter is real. The durable goods reports. This is one piece of a very broad number that we will get. It will get revised. I will be thinking it goes a little higher. Alix thank you so much. Thank you for coming in. Ceo of advisor investment. Much more coming up. Keep it right here, we will be talking about the fed, talking about china and oil. We are moments away from the closing bell. I am alix steel. Joe and i am joe weisenthal. U. S. Stocks falling along with global equities, and treasuries rise, as chinese stocks suffered their biggest slump in eight years, and a bear market. Joe the question is, what did you miss . Call it the chinese route, the shanghai composite plunging. Alix and the former greek finance minister caught on tape area we will drill down the extraordinary caught on tape. We will drill down the extraordinary phone call. And six years ago, there was talk of a bailout, but now does itgolden state, finally have its finances in order . Alix you are looking at stocks falling for a fifth day. This is the longest losing streak we have