The month of july. The month earlier, jim, was 99. 8. It was at the second highest level since the recession. 100 was the economists estimate. 90. 9. We are seeing Consumer Confidence worse than estimated. Im looking at the s p 500 on the screen behind me. It looks like we are not seeing a huge effect. If anything, stocks have rallied off of the lows of this early session. We will continue to watch the reactions, and the read through to the fed which begins its meeting today. Matt thank you. Lets go to the market. Right behind julie you saw the market rallying from a low. It was coming down a little after the Consumer Confidence number. He s p is up one third of 1 earnings surprises helped the market. The dow added. The nasdaq is unchanged at 5000 43 at 5043. Saying i rally that we have seen in treasury. It is being interrupted with a selloff in chinese equities. The treasury is a little bit weaker on your screen, the yield on the 10 year is up for basis points. The meeting begins today. Now some of the top stories. Home prices in 20 breaks cities lower slower point pace in may. It rose by 4. 9 from a year ago, less than projected. The slower rate of appreciation may make it better for firsttime homebuyers. Two big drugmakers reported earnings meeting estimates. Expectations. Sales of its new cancer drug rose. Rc earnings were still better than expected. Not a huge impact in either stock. Merck wased 1 , down 1 . The big bet on gold is looking more ill advised by the minute. He has been bullish on the precious metal for years. The price of gold has fallen since the end of 2014 and is heading for its Third Straight down year. The green Light Hedge Fund is slumping to reassure. The Obama Administration is back to selling the Iranian Nuclear deal today. Secretary kerry is on capitol hill to testify before a committee. The secretaries of the treasury and Energy Department will join him. Congress has 60 days to review the agreement. They can approve or reject the deal. President obama has said that he will reject the tell any move to reject the bill. The economic progress rests on a ingile investigation south africa. Besident obama we will not able to meet the challenges of facing down violent extremism, combating climate change, ending hunger and extreme poverty without the voices and contributions of one billion africans. Matt the president return to a theme that he hit on it 10 year that africa must fight the culture of corruption. Donald trump is worth 2. 9 billion. The president ial hopeful has said that he was worth more than 10 billion. The bloomberg billionaires index calculations. The majority of trams fortune comes from real estate. The Bloomberg Index does not value the trump grande toward cash link to his licensing deals and business partnerships. Aftermight actually fall this whatever he is doing. Olivia the take away is that donald trump himself values his own personal brand is 7 billion more in bloomberg analysts do. Matt he is leading New Hampshire by 24 . Selloff in another chinese equities. The chinese composite fell more and volatile trading after suffering its biggest oneday decline since 2000 seven. Investors wary that Government Intervention will not be able to shore the market. Olivia joining us with more on china, and what the selloff could mean for the Global Market is peter, the head of macro strategy at green capital. Lets start with the Economic Data that just came out. Consumer confidence coming in at a reading of 90. That was below even the lowest forecast. What do you make of that . A briefe have had bounce, and now it seems like the economy is rolling over again. I think the myth that oil is good for the economy, lower oil is good for the u. S. Economy is good, it is actually bad. The ubs ceo, who we will speak to an hour, said the same thing. He lowered his forecast for u. S. Gdp this morning. Matt i wonder to the extent these consumer confident , or are are trailing not accurate. So often they come at an unexpected level, and do not seem to jive with anecdotal evidence that we hear. It is not a data point that we put a heavy reliance on. The home was more intere sting. It is things like that that i put more reliance on. Matt we had Housing Starts that were positive. People were buying cars. Buying at an ok pace. The realization we are going to get the biggest tax hike ever when the fed to raise rates after so many years of not raising them, that will way on consumers. They worried about what this will do to their debt. Matt how you translate that into the biggest tax hike ever . See some changes to monthly payments. The problem is they will not be. Ig, but people extrapolate the fear factor might be worse than reality. When people first hear their friends are having higher pavements, they react. Olivia it will take steam out of the u. S. Economy . Peter i think it will. They are trying to say it is a good time and brush it over, but i dont think it is. It will create a brief pop then we will say it is bad. Layer chinese equity markets cratering . Why are they slinking on government involvement . Peter you had the Immediate Impact of the intervention. Was i found last night interesting was that we had three moves of 5 or more. You had huge up and down swings. Everyone is confused. You have the propping up on one side. People want out, and theyre using bounces to get out. Matt we just spoke with milton berg who said that, though he is obviously not sure, this looks more like a Market Correction compared to 1929. At the time in the states we had a fed fighting against raising rates in the market until we had the crash. In china you have the opposite. The central bank is working with the market and trying to be more accommodative. Peter we are getting this back, and i think it will lead to the Chinese Government and not having some kind of stimulus. So far theyve only thought it on the stock price front. Sometime this fall we will see some kind of stimulus based on green energy or pollution cleanup. Something to clean up some of their past mistakes. That will see growth to turn it around. Whata my question is, at point does chinese volatility, the asian market selloff, make janet yellen ring twice about raising rates . Peter in the past equity selloff in china meant lower rates in the u. S. What is happening this time around is that china has been such a domestic buyer treasuries , you combine that with the Oil Companies that are net sellers, you see selling pressure. There is discussion that china will have to use external debt to fund the stimulus. They could be trying to take treasury investors. It will remain weak even if janet pulls back. Matt china had smaller Gold Holdings in the market anticipated. We are seeing gold fall. We get to precrisis levels . We have not have any catastrophes that gold bugs have been holding the precious metal to edge against. Peter all the sudden everyone is on the antigold bandwagon. All of a sudden it almost has a religious quality. People either really like it or really hated. That makes it difficult for me to get comfortable trading with it. We will see a bounce, but not a high confidence. Olivia thank you. Matt coming up, the ford f150 profitis driving the engine. What it could mean for the second half of the year. Olivia good morning. Welcome back. Im olivia sterns. I am here with my friend matt matt miller. I want to get to julie hyman who was looking at the biggest movers in todays session 45 minutes into the open. Tons of earnings. This must be one of your favorite days. Julie i do like earnings. Lets look at some of the bigger ones we have not talked so much about. , the company that makes different fixtures for your home like delta faucets. Their shares are doing very well, even after the company predictions. They rose by 7 . Underlying demand should increase the rest of the year. The remodeling environment will continue in proving. That is the line was some of the housing numbers. Formaker of small jets businesses is up 2 after this inpany also Beat Estimates terms of earnings. Earnings missed estimates, but textron expects Higher Aviation sales later in the year. Lets look at some of the weak performers. This is one of the worst performers in the s p, down 6 . Providesrand Different Services for office buildings. Like airconditioning units. Finally, dupont has a big drop. They are spinning off of its Performance Chemicals unit, but also the underlining agriculture business. They are seeing tencent of the cut attributed to the weaker expectation for agriculture. The maker of is komoris catomores. Thank you very much. Look at theve you a top story. Ubs cashed in on a new pricing on the delivery service. Pricing estimates covering deliveries outside of the u. S. Their fullyear profit would be at the highend of what they forecasted in april. I researcher found a massive security flaw in the android mobile operating system allowing hackers to disable an android texte by sending a message. Google has notified its partners and provided a patch to fix the problem. Microsoft has a debut tomorrow, but windows 10 will not cause long lines or spark sales like years ago. It will be a Free Download for anyone with the home or pro version of windows seven or eight. Tech washers say it will be like apples ios system. That is some of the top stories. Ford shares are moving higher after stronger than expected earnings report. 44 in the quarter. I spoke with automotive analyst jeff schuster, and we talked about the role that f150 has in driving profit, even though they sold fewer units then it before. With the f150 story, there is a slow ramp up. Ithas been expect it, but continues. That will not resolve itself until the third and fourth quarter. When you look at the surprising earnings, that puts pressure on ford and some of the critics that have been talking about the launch of the f150. There is still a competitive segment and market. s still out on the overall picture, and we will have to wait until the fall. Get 44,000say they dollars apiece. That is a great selling price. They offer 30 6,000 in incentives. They offer 10,000 in incentives on some trucks. In general, had you see ford going aspires Pricing Power . The pricetion that things in the margins they are commanding will be strong. You can see that in the results of the earnings. Son vehicles that have those high incentives. Segments,ook at those those are the most competitive segments in the industry. Gasoline prices at the stage that they are at have helped. If you look at where it is positioned, ford is positioned well in it, and they should pick up steam as the year progresses. Olivia the run the risk that it is a race to the bottom if you are the automaker . There is always that risk. Right now, this is a very loyal segment, and the fact the trucks have not only gotten to the dealerships, that is a concern and a risk for four. They are trying to make sure they are keeping their customers happy and keeping buyers in the truck. Truck the ford right now it is doing what you can do to keep your share as stable as possible. They have stabilize the share even though the volume is down. Matt it was up 1 10 of 1 in china. That is an important market. Gm has a stronger foothold. In the last couple of years, they have seen huge growth. Will that come to a halt . Is interesting. We are seeing the market slowdown. It has been expected, and it is happening. Read about gms recent investment in china. I think they are making a push overall or the chevy brand, and on additional pressure. Looking at the markets around the world, they are highly competitive. Show thatat that will you cannot take your on off the ball, and you have to keep moving forward, and you have to protect your share. Do not do it at a stage that hurt your profitability. With these earnings, ford is positioned to end strong. Matt that was jeff schuster, the automotive senior forecaster. You will be here, i will be here, and the cfo of ford, option, will be here. We will talk to him about earnings. I have a lot of questions. I went to ask him about the incentives, Pricing Power on china, hises in outlook on that region, about south america, he said they had not seen the bottom there. I want to ask in if he sees a move up in europe where they broke even. To hear about gasoline prices. I cannot figure out the impact that cheaper fuel in the u. S. Is happening on the automakers. You were telling me it is not having that big of a bump. Matt we say that based on anecdotal evidence. Ford will say that it helps a little, but they do not model on gas prices Going Forward. The endal opinion, at of the day, if you are getting 30 miles per gallon on the f150 doesnt it matter if gasoline is . Hree dollars or 3. 50 all of their vehicles are very fuelefficient. Dont go away. Lots more to come, including matts interview with the cfo at 11 00 p. M. Going highend in tokyo at mcdonalds. Take you to mcdonalds in japan. Coming up, next. Olivia all right. When you think of restaurants, one name that doesnt come to mind for being fancy is mcdonalds. They are trying to temporarily change that. Are getting ahes little bit more illustrious. Theyre rolling out a new experiment popup concept called restaurant m. It debuted in tokyo to highlight the new order line pete the new burger line. It includes five courses. It will have sitdown sessions for people that were selected. It is pretty highend. It is meant to highlight the new freshman you in japan. Fresh menu in japan. Matt i like fresh food. Olivia theyre doing this in tokyo, a city with a higher start restaurants than any other global capital. Mcdonnell has had a difficult time with his reputation in the country. This is intended to boost the brand. Tens of thousands of people applied to be chosen. Matt i only go there when they occasionally bring back the mcrib. Apple piego for the and i regret it for about five minutes. An hour. E you in half matt i will go prep. Olivia still ahead, coming up next, i will be speaking to the ceo of ups. Dont go away. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Olivia welcome back. I am olivia sterns. Now top stories across the bloomberg terminal. Any reading of the Consumer Confidence shows a drop off. The index and board fell to 90. 9 this month, down from june which was 99. 8. It fell short of the average forecast. Honeywells spending 5 billion on a british maker of gas, electric, and water meters. They are buying the elster unit from melrose industries. The deal will expand offers and create a new platform for acquisitions. Investors dont appear to be discouraged by bps that was Quarterly Earnings in a decade. Shares are rising. Bp has made progress in cutting costs, and they say the bp breakdown of 6 billion in assets in a libya was a onetime event. Ebay is raising the white flag. Theyre telling the same Day Delivery Service in the u. S. In acknowledgment the country cannot match amazon Speedy Delivery project. Sameday service was york, dallas,ew and chicago. Jeff bezos has to be smiling at that. Still to come in the next hour, the s p 500 is trying to come back after a fiveday slide. Rally is a lot shallower than you might think. Only a few stocks are holding us up. I knew dr. Seuss book called what it should i get is topping amazons bestseller list. We will talk about the dr. Seuss economy next. Americans are smoking, but Tobacco Companies are still raking in big bucks. Ups reported secondquarter earnings showing that they beat oflysts estimates outside the u. S. Ups shares are up the most in four years. They are up over 52 . The Second Quarter from the International Businesses were up 17 , and that was the strong point. The ceo, david abney, said he was cautious about the u. S. Economy. He joins us from atlanta. It is great to have you here. David thank you. Whata lets start with was going well. The international business. Growth . Driving european are you able to pick up market share as a regulatory uncertain tea hovers over whether fedex will close a deal with at t . David we have been picking up market share in your for a while. This is our paneuropean network and as moretched, sippers are sipping across borders in europe, they are taking advantage of our network. We havee of the reasons so much momentum in our international business. Olivia what is causing the slowdown in the u. S. . Avid i dont overplay that we just said we were being cautious. About theoncern strength of the u. S. Dollar and how that will impact exports. Other factors show that it is not going quite as quickly as we were thinking earlier, but is still growing. We just had a good first half of the year, domestically. We expect that to carry on. We do have a little bit of caution about the u. S. Economy. Olivia you were talking about less than truckload freight slowing. Why do you think that it is slowing in the u. S. . David i think that part of it is the market. We see the industry as a whole slowing down. Discipline. Here in we are stepping away from low revenue and unprofitable business, and that is causing us to increase the bottom line. That does have a little bit of an effect on the top line. Olivia we hear so many different forecasts about the thinkf which retailers ecommerce is growing. As your view as a shipper, what is your forecast for ecommerce growth in the u. S. . David we expect ecommerce to continue to grow. Most experts think that it will grow probably four times gdp. We are seeing it being a little inconsistent with the last few months. June was not as strong as we expect it. We expected. Were watching that closely for the remainder of the year. Olivia ubs access point is where you turn local Convenience Stores into dropoff point. I think you have rolled it out into cities. How is the experiment going, and what portion of your business do think Access Points could be Going Forward . Points wills continue growing. We had taken it further than an experiment. We did an acquisition in europe three years ago, and we have organically grown the access point strategy in europe to the point now that it has allowed us Million Dollars a month out of our cost. Our Customer Satisfaction has been very positive, because they times on packages more the first day than they had in the past. In the u. S. We piloted in five cities and have expanded to 100. We think we will have the same and the Customer Satisfaction rate will again be very hot. Very high. Olivia what do you do to prepare for the holidays . To prepare for the internet surge in shipping volumes . David we have a three prong strategy. To provide unique solutions, which is what we have done with the access point, and refocus on Revenue Management to make sure we charge customers or the value thosee bring, especially customers that surged during that point of year. Then we focus on technology to focus on efficiency to take cost out of the network. It is a combination of those things that give us confidence. Willa any chance you charge a holiday surcharge for shipping . David we trade pricing on a customer by customer basis. We are having customers discussions with customers that we feel the cost does surge in the number of packages does surge, therefore driving up our costs. We will continue to have those conversations. Olivia im sure you saw amazon teaming up with minions to put the movie logos on their boxes. What you make of that . Any plans for ups to team up with a content company and use the exterior of the parcels as an advertising space . David i wont tell you that we wont do anything, but i will tell you that when we take a good look at opportunities, talk to customers, and we see with the opportunities would be, we then make decisions accordingly. We have not made that decision, yet, but we do look at all possibilities. For your time. Ou the ups ceo, david abney, joining us from atlanta. Coming up, a look at the stock market rally. The s p trying to rebound from a fiveday slide. Why the market is having such a hard time holding on. Olivia welcome back. Where one hour into the trading day. It is time to get you caught up on the Market Action around the world. Lets go to london. Hello. Is deal activity and corporate earnings driving the rebound in europe. These are the three biggest gainers on the stoxx 600. Rsa and insurance, melrose, and engineering company, gaining on reported deal activity, carrying the most in 2013 after firsthalf earnings Beat Estimates. Gucci sales rose for the first time in two years. I want to highlight these two Oil Companies. Brent crude is continuing its slide after entering a bea market yesterday. They are reporting their lowest quarterly profit in 10 years. They have a drop of 64 in. Uarterly profit analysts have been saying that they are making progress on their cuts, that is why the stock is rising. Stock oil beat with its secondquarter profit. There are concerns over commodity. There are concerns over china. That is not stopping the stoxx 600. What a difference a day makes. Almost every Industry Group gained. Green. Ned to you have basic materials and oil and gas doing well. Rising for a second day against the dollar and gaining against the euro is the u. K. Gdp data, a straight quarter growth for the economy. Inwe have the next picture the United States as the dow rises on strength of earnings, and the nasdaq falls. If the nasdaq close a slower, that would be the six straight session of decline. We havent seen that since the fall of 2012. ,ooking at the nasdaqs 100 following the most in a single day since 2008 after the company came out with its earnings sales thatuarterly missed estimates. This is the google of china, the biggest Search Engine provider. It has been expanding into other services. The chinese economy is not strengthening, it appears to be weakening. That is falling for the second allergan. After crude oil prices are rebounding. They had been lower. On the outlook for the economy in china and for supply. On my bloomberg terminal, icy oil is going deeper into a bear market. I made this before oil rebounded. Down run june 10. It is still in a bear market, just not deeper. Copper prices have been rebounding. We have copper having its biggest oneday gain in two weeks. Futures have turned lower after rebounding yesterday. Allergan used to be called activists. There are a lot of as. Thank you very much. In the meantime, asia, selloff is continuing, but not quite so bad. The csi 300 fell by 2 10 of 1 , paring a loss of 5 earlier. The ek also slipped. We have more on that from hong kong. Keep up withd to the shanghai composite on tuesday. The benchmark chinese index opened lower than 5 following the biggest oneday loss since 2007. The buyers moved in around lunch time with the market higher by 1 . That there is one after there was a concern that Government Intervention was not sustainable and that china injected capital to shore up confidence. Government Officials Say the chinese economy is stabilizing with the foundation for a healthy market. They say that now is the time to buy. Olivia that was reporting from hong kong. Boston will not be the u. S. The 2024 olympics. The Olympic Committee made the joint decision to withdraw from the bid yesterday. The boston mayor said he would not agree to a deal that that taxpayer money on the line for an olympic cost overrun. Volkswagen is in the lead to be in best selling automaker the world. They edged out toyota in the First Six Months of the year selling more than 5 million vehicles globally. They benefited from stronger demand in europe, helping to slowdown in china. What a way for Alex Rodriguez to celebrate his 40th birthday. He marked the occasion by hitting his 24th home run of the season. The yankees beat the Texas Rangers 62. Hit three homee runs against the minnesota twins. Happy birthday. Now the s p 500 is trying to rebound him a fiveday slide. Theres not a lot of action. The selloff is only off 3 from the record high that it hit in may. If you look under the hood, you will find that one quarter of stocks are down at least 20 high. Heir 52 week at least one quarter of stocks in the s p are in correction territory and bear market high. Ory from the 52 week that is how shallow this rally has been. We will look at what is causing the weakness in the market. The equityrs markets. What are investors telling you . It is crazy. If you look at the market, it is basking a lot of weakness. There is a recent slide in oil from Energy Company selling off quite a bit. A lot of companies in the s p bam market our energy companies. Stocks with a lot of exposure to china had been down, like micron for example. A lot of sectors are pulling us down. Tech Companies Like apple, google, amazon we have charged in the handful of stocks versus the s p overall. You can see to the extent that they are pulling up the s p. The yeartodate gains are up 9 to date. Livia it is basically flat those companies are pulling the rest of the market with them. Which sectors are doing well . Tech is doing well. Health care is doing well because of m and a and the Affordable Care act. Utility is definitely the weaker performer. Retailers are also holding us up. That does not bode well for the market. Sayia what do analysts about which way the market is headed . Callie you know, people are too worried. John krinsky wrote something yesterday saying that while he mentioned that bandaids do not a pagelet holes, taking from taylor swift, he says that it is not a sign of doom and gloom. Signa and might not be a that we are headed for a broader correction. The s p 500 is already in the correction territory. Callie it could be good. We could be self correcting. While the market is flat, there could be a correction in the midst of the sectors. We could avoid a correction. Olivia we have gone 10 years without a correction. Joining us on a shallow valley that we have seen this year. I will pull up the s p. 8 up by a tense of 1 10 of 1 . Netflix has doubled since the started the year. Facebook, and the s p has been moving sideways. Here you have it a very shallow rally. Still ahead, a new book on the late, great, dr. Seuss. It is rd number one on the amazon the seller lists. Olivia welcome back. I am olivia sterns. The newest book from dr. Seuss hits stores today. It is called wet pet should i get . What petit is called should i get . Is already the number one seller on amazon. Com. Dr. Seuss widow found the book in 2013. Know you have read it. Vid random house has printed one million copies. What is amazing about dr. Seuss is how he drives the children publishing industry. Old 650 million books in his life. What is fascinating about childrens publishing is the backlist is so important. Before thisbooks one. They are all still available. What a book like this will do, someone will hear about it, buy it, then go by other dr. Seuss books. Booksf the bestselling them this year are dr. Seuss books. And that is pretty regular. Does that mean for publishers . For a bestselling author . Defined a manuscript . A van it was like finding gogh painting. They came across this two years ago. This was found in a box of manuscripts by the dr. Seusss widow. It is remarkable. No one thought this would be the case. He will make a good deal of money off of this Going Forward. Thana dr. Seuss died more 25 years ago. What is his legacy . David if you look it to the big isldrens authors are, he among the big ones. Ands popular with children adults. It is striking how random house figured out how to make his work have a long life. They have had a real success finding collections and selling isms. As seuss olivia postmortem, it is not only books, it is an entire franchise. Dr. Seuss enterprises. His widow is the president of works closely with broadway producers and movie producers. There are crews lines that have adopted dr. Seuss. Olivia im sure you are dying to take your daughter on a dr. Seuss crews. How is childrens publishing doing in 2015 . David recordsetting. Young Adult Fiction is driving that. You have the twilight series and books that teenagers are reading. The interest in books among teenagers is very high. Thee is a lot of growth on digital side, just 10 of childrens books are consumed in a digital form. Kids like to share books, and that is hard in the digital form. J. K. Rowling has a very cool digital book. Im sure you will read this with your daughter, are you getting a pet . David not yet. It is not allowed in the building. Olivia a number one bestseller already on amazon. Com. I would like a dog. Dfo on shankrd will join us cfo bob shank will join us speaking with matt miller. Olivia 11 00 a. M. In new york city, 8 00 a. M. In san francisco, 4 00 p. M. In london. Matt a recordbreaking quarter for ford. Consumers are in love with the new aluminumbodied f1 50 pickup. Olivia class, what is donald trump really worth . Maybe not as much as he thinks. The business of broadway. Do hit shows make up for the big flops . We will show you how it all works. Olivia good morning, everybody. Welcome back to bloomberg market day. I am olivia sterns. Pimm i am pimm fox. Lets look at how stocks are performing right now. Moving higher. Dow jones adding 0. 5 , the s p 500 also posting a gain of over 0. 5