Company could file for accuracy as early as monday. At the end of the day, this is a fascinating story gone wrong. Set aside some money to fix the land from its production, basically. They do the thing where they say, we will take care of it ourselves. In note on their balance statement. They had 90 days to get more money to get insured. It could be a potential reason for why the money thats why they had declared bankruptcy. That is might we see more like this . He could be the domino effect. Alix they could also be under pressure as well. Betty much more ahead. Top stories. Alix this high with funding bill. Transit money will continue and we to three states will pay the bills until the end of october. 91four. Proved by bill there are roadblocks standing in the way increase in Interest Rate. They say they want to see some additional gains before raising rates. The former fed governor said there is a scenario in which the fed may hold off for a little while. Inflation has been quite low recently. Either moving downward because of lower Commodity Prices or if energyip out the sectors, much below the feds target of 2 . Slowing and concerns about china Going Forward, Commodity Prices in general have been lower than they have in. It puts downward pressure on inflation. It might make the flip the fed delay little bit. Has not beeny rate raised in nine years. The u. S. Economy picked up haze in the Second Quarter. Gdp rising to an annual rate of 2. 3 , slightly less than expected. At the same time, the Commerce Department revised the First Quarter figure upward and instead of contracting, the economy grew. 6 the first three months of the year. A new reading indicates americans are increasingly worried about money. Its biggest decline in five months last week. That dropped the index to its Second Lowest level since november and sentiment among those making more than 100,000 to that hit a 10 month low. One economist share the concerns of consumers. Explained his worries about growth on bloomberg surveillance. 1. 82 percent. Weak first very quarter. The Second Quarter, [indiscernible] the deal will be slightly that. We will be doing great. Betty the Consumer Index gauges attitudes about the economy overall. Firsttime claims for unemployed benefits rose last week. Claims andple filing the fed may decide the economy could withstand an Interest Rate hike if the number stays low 300,000 and hiring picks a. Universal will reduce the value to about 1. 5 billion dollars. The company had revenue of more than 100 million asked year. Start of a spending spree for nbc universal. It is also negotiating to invest in box media. Blame the commercial debut of a new business jet by two years. The global 7000 is one of the companys cseries plane. Cost overruns and sales problems. But when it is ready, the 73 million will be able to fly nonstop through london to singapore. Betty that is long. It andike, lets google find out. Ahead of the republican president ial field by a wide margin. Trump was backed by 100 20 of voters. With 10 . As third would no way ever vote for this guy. The poll also said Hillary Clinton would beat trump in a head to head conference. 13 hours. Speaking of republicans, they cannot complain about a lack of choices in a president ial campaign. A 17th candidate is now in the race. Jim gilmore. No telling whether he will get into next weeks televised debate. His name was listed in only one national poll. Those are your top stories. A Referral Incentive Program to to buy a newales model asked before october 31. The current owner will also get a 1000 discount that could be applied to a new car, service, or accessory. Joined with more what is the reaction so far to this . 1000 on a car that could cost almost 200,000 . What is the thinking behind this . Lawyer odel s owners are a loyal group if you into the tesla users forum the conferences they hold every year, this is something people have been asking tesla about for a while. Does not do traditional advertising and most of the sales are wordofmouth already. You have a lot of owners out there who are alike, i gave my friend a ride and they ended up buying a car. This in be rewarded for some way. Now we see a program that attempts to do just that. What if you do five or 10 or 15 . 10 referrals, you win a model s. A lot of model s you owners are eager to see what is due out later this summer. Some have reserved it as another car in their family. Seeing owners on twitter sending out referral links and trying to win that. If you sell five, you get a ticket to the party in april. Betty the giga factory party. So dana, some say this might he a warning sign. Is this a sign that maybe demand is not as hot as expected in tesla . Nowre they unrolling this because sales or weak . I think this is an effort to a viral Customer Base already doing virtual market on behalf of the company and why not reward them for that. We will not know until a guidance on the earnings call. Tesla said it would sell 55,000 cars this year. It has to sell that both of those in the back half. I think this is an effort to see whether Virtual Marketing is a stronger avenue then advertising with a retail operation. Alix talk about how important the tesla drivers are versed is the drivers of a full slate or a bmw . It is usually important. It is still relatively new for most reporters. Still on the rose today than they were a decade ago, it is new technology and it takes people a long time to feel comfortable with it. If your neighbor or boss or friend or mom at your school has a tesla and gives you a ride in it, or lets you borrow it for a day, that is huge. I have been at conferences where owners have stood up and asked elon musk directly, i live in atlanta and i personally know i sold five cars. This is a company realizing they could make betty thank you so much, dana hole in san francisco. San francisco. Coming up betty welcome back. Alix we want to go straight to julie hyman with a look at the markets. We are around the highs of the session for the smb. 01 . The highs were up it has not been a very exciting day if you look at the macro level. There has been some feed through from the fed statement yesterday. Yes, absolutely correct, near the highs for the session for all three major averages here lets get some of the individual movers. Western digital is one of them. They are up 10 today. A couple of things are going on. If earnings per share Beat Estimates even though revenue missed, it seems as though the increase has more to do with commentary coming out from the company. One of the few companies to express optimism about the pc market in the second half of the year, saying we could see some improvement. Part of the part of that had to do with optimism over windows 10 in particular. It has been waiting for a long time for Regulatory Approval over china. Onhas been in the process of the call as well. Getting closer to that Regulatory Approval. According to analysts, that could help cut its operating costs. Those two things helping boost shares. Wynn resorts has to do both with earnings and really with outlook again. The chairman of the company says he feels confident for the opening day in the second casino and why is this significant . Macau generates 70 of the companys revenue. Take a look at the bloomberg terminal. We have gaining revenue, which we saw a peak in 2014 and ever since then, it has been slumping dramatically. Corruption has not allowed people to visit as often for the frequent gamblers. To signals seems haps it will indeed confident enough to open up a casino there can we have those two up movers related to earnings and now we have a couple of down movers we want to look at as well related to earnings. Watching whole foods tumbling 12 right now after the companys earnings came in below analyst estimates, the slowest since the First Quarter in 2009. This goes down to competition. Whole foods invented or really mastered the organic grocery model. A lot of others are copying it at lower prices. This is the chip may or maker for smartphones. Emerge happened in january. His biggest decline ever. A disappointing forecasts in this has to do with the outlook for china. We have gotten mixed results out of the semiconductor industry. Semiconductor investors sifting through all of that today. You so much. Just as you were talking, some headlines are breaking out. ,f you are someone who studies growing in the last week or so, one of the young, hollywood titans, so to speak. Filing for bankruptcy now. This is something to watch closely by everyone in hollywood. Quickly imploding and filing for bankruptcy. They will be for cutting 75 fulltime convictions. Looks like in june they hired lack stone to advise on financing. Clearly there were hints that this was a troubled company. Relativity media says they will continue with Business Operations throughout the whole process and that is sort of where we are at right now. Betty exactly. Ryan was a very colorful figure and is a very colorful figure in hollywood. Reports that as investors up his imploding, he put california mansion for sale and is starting to sell assets or it is inevitable. Alix a look at some of the top stories right now. Betty soul cycle filing for an ipo. The underwriters include goldman sachs, bank of america, and citigroup. The cycling chain caters to specific workout messages. Announcing today the coo will become the chief executive officer. The roless Largest Consumer products maker reported profits that Beat Estimates. The ceo has been cutting costs and streamlining operations since returning to the company years ago. Png announced years this week they will step down in november. Betty those are your top stories at this hour. President ial candidate donald trump says he is the one who can beat Hillary Clinton. A new poll suggests otherwise. The real estate mogul gets support from 36 of registered voters nationwide in the height that it will match up against clinton era there is good news in the polls for trump. He was backed by 20 of the Republican Voters ahead of scott walker. Our Bloomberg Politics team conducted a focus group with reporters and heres a little bit of that conversation. He speaks the truth. He talks about especially immigration control and the border, he does not care what people think. On choreographed. Choreographed. He is not a politician. Like you said, he will not be bought off. He does not fit in the same box all the other republicans are in. He is like one of us. Besides the money issue, he is selling tuned with what everybody is always wanting. When he referred to some Illegal Immigrants as rapists, that bothered people. It did not bother people. What are your reactions . It did not bother me. He said he would put a wall down on the southern border. Talk about common sense, that is the common sense thing to do. I knew he was a wealthy and successful man. I remember i asked my mother to ask him how he made his money so i could do it. The word trump meant rich to you. It meant success. He is a successful person. I want to be a billionaire. He worked hard. Tell me what you think a trump president would look like . He. I think we could be a proud america again. To the american people, he would be a presidency of hope. John joins us now. What was your reaction to some of these answers . John it was an incredible group. We spent about 100 minutes with this group. Of them were republican and six were in attendance who leaned republican. Six men and six women. Lot of income disparity there were bankers in the room and everything in between. Prevailinging, the theory among a lot of people in politics is, this is a summer fling. Pollsters heo tell is like herman cain or michele bachmann. It does not seem like that among these trump supporters. They know him very well. I asked people, did you first come into contact with trump by watching the apprentice . They say no, they watched trump from years and years back. They like him, the trump tower, and they think of him as the embodiment of tycoons it. He is a big and successful american businessman who build things. They know some of his Companies Went bankrupt and they do not care about that. He built himself back up. Very admiring and very durable. There with him until the end. As you mentioned, some critics say it is a summer fling. Others believe he has got endurance. Could he really last for the longterm . Defineepends on how you the longterm. He is a 20 in national polls, new hampshire, florida, and other places. For his be the feeling support. He may not be able to get much more than that. A lot of republicans will never vote for him. Highly negative rates on the other hand, 17 candidates in the republican field. If you can get 20 in iowa or new hampshire, you can win those days. To commands ability media attention, the loyalty of those supporters we talked to last night, that is it decent chunk. He could last through a couple of primaries. He could be a factor Going Forward for quite a long time. Why is it a positive that trump is rich question mark for mitt romney, it seemed like a detriment. John a very skilled Democratic Campaign on the part of obama were able to demonize the campaign and portray him as someone who did not build things. That was, private equity is different from being, what these people see donald trump asked p are they see donald trump as a builder. A guy who puts buildings up. Portrayed as being a financial manipulator. He did not create jobs or make things. He shut factories down and put people out of work. Those are different kinds of capitalism. Im sure if donald trump were the token nominee, they would do the same thing up as donald trump. The most interesting thing about is somehow the paradox is they know he is rich, they know he lives they totally different life from them, but they all say he is one of us. Why, the way they explain it is, he is not one of them. Not one of them, and who is them . Professional politics. That group, the creatures of washington, they loathe him. They see themselves as being a lot more like a billionaire and a private jet. They think that person is more like them than a congressman or a senator in washington. Betty so interesting. Thank you very much, john. Tune in at 5 00 p. M. Eastern time. Alix a lot is ahead. We will be right back. Back. Welcome sadly, i must say goodbye to betty liu. Betty youre in able hands. With definitely looking at s p, tired of all the moving averages. All in all, flat on the day. Much more is coming up on the bloomberg market day. We will talk about energy, earnings, chevron coming out tomorrow morning and if we will cm and they had their you know i love that. We will be back. Alix welcome back. Top stories crossing the term not this hour. The democratic president ial hopeful Hillary Clinton said she hopes her emails will be released as soon as possible. Yesterday,ters a judge chided the state department for being too slow to respond to a lawsuit over the emails. The former u. S. Congressman and his lawyers say they reached a withrary resolution accusations. Tied to the Illinois Republican failure to produce campaign and congressional records. Specifics were not immediately available. He resigned in march. He is under federal over taxpayer and campaign money. If president ial grand jury has been hearing testimony. The lawn for an arm of the u. S. Wildlife service protected line. The protesters gathered outside walter palmer. R. The agencies in the circumstances he believed the hunt was legal. The days of free cheese sticks are over. For employees at craft headquarters. According to a review by bloomberg news, the company is rolling out policies. Craft has started to cut jobs removedre said to be from the companyss near chicago. Cheesely needs the kraft sticks question mark keeping the characters a rocky and rambo alive onscreen. Selling memorabilia from those move movies. The system nineyearold actor is putting hundreds up from his career. Portions of the proceeds will go to charity and those are your top stories. Chevron, exxon mobil, scheduled to report earnings tomorrow morning. A preview with what wall street is expecting plus, what is store for them and they. President of mercks blog and the author of shale books boom bust. That is wrong. I meant to say shale boom and shall bust. Sales are down between 25 and 55 . Werepstream realizations down, both gas and oil domestically and internationally, driven by weak wti. The support from the downstream side. Betteril leads to refining margins given the u. S. Benchmarks. Probably of year over year by 20 . To offsett be enough the negative impact from the upstream. Alix exxon is different from the other companies we have seen reporting. They can cover the dividend. They have the free cash flow. They do. I think the dividend others have a spot here. I have been waiting here in june the next thing i am looking to it is for some of the m a to have been the industry. It looks like the perfect time to start. Some of the players have gotten insanely cheap. Betty alix who would be the potential takeouts i am with you for the kinds of things we saw in the late 1990s. N texaco got bought by pp bp. There may be a little too much baggage for Something Like that. Someone who has tremendous acreage, theyre really under the gun and their stock price is , it is a very good buy. Very cheap. Eog resources coming to 75 per share would present for the majors the Production Growth they could buy, instead of trying to trying to develop Production Growth over the course of the next decade. Alix you think that is in the cards . The day of reckoning comes in 2016. After the hedges rolloff and Bank Redetermination in the fall, and into the spring, where liquidity for some of these operators could be an issue and something has to give. Alix in your looking at sector, whatn the evaluations are low enough that it make sense . Up until now, you had a disconnect between seller and buyer because operators have had the ability to stay in the game. They have been able to raise equity. They have been able to raise debt. They have been able to push, kick the can down the road up until now. Therefore, in 2016, when you take a look at the hedges rolling off, the liquidity on the balance sheet, that will be a significant issue for them as they going to 2016. In all likelihood, Capital Spending will need to come on down and that will just create that cycle. Seeing more at least now is that the bondholders are running out of patience. There has been a great amount of capitalization chasing shale players up until now. Bond offerings in that kind of thing. The spreads start to widen. We are seeing the bondholders run out of patience. That has to take place in the industry. It is something we want to be in front of. To start taking places. Another way we take a look at the stock prices and take a look and say, well what would it take for exxon to buy 40 million 40,000 barrels of the day from one of these two or three or four of these in the next five years. Continental resources getting close to 30. It is very tempting not only for investors. Alice why would a company want to sell itself if we do see these prices coming down the road . Not have the time. It will not be bound in time to save most of them. We will see a lot of the bondholders really start to shake the can, telling people i really need my money back. There will be recapitalizations. Hat will not be done on the back of the mother frackers, the problem with recapitalization we have going on. We have seen 19 highyield Companies Get downgraded slate april. That gettingee closer to that day of reckoning. Inx i was waiting for it april. The just did not happen. Everything takes time to play out. It started in august of last year. We are getting to the oneyear anniversary and the timing is right. Alix this made my day. Vincent. All the juicy details of the oil industry. Joing up, ibm and cvs forces. What the pharmacy giant has planned. Alix welcome back. Look at theor a markets. I want to head to julie hyman on it they were nothing is happening. Julie i want to look at fixed income. Yes, 15 minutes before the closing bell come i will look at fixed income and buck the trend here. We are seeing an interesting move today. Its highest in six weeks. The last time it was at this level, it was june 17. At least when it comes to the 2year note and the readthrough. Also, if you look at the fed funds futures, take a look at the bloomberg terminal. The likelihood he will see an increase in rates in september. It is now around 46 , about 39 yesterday. Beyond that with the assumption seeming to be on the part of most investors and economists that it will then be slow. All this being felt in the currency market as well today. It is trading near a fourmonth high, about. 5 today. Gaining on that perception. We are closer maybe to these higher rates here it is also being felt not just in the dollar. Index bloomberg developed of the emerging market currencies. Past year for the indexed to we are seeing that route continue with this particular index down at a record low. The various currencies, many of them are by commodity countries that are commodity producers. That in addition to the perception that we will see a rate in test rate increase. A lot is happening but not necessarily with the s p. A good disclaimer. Thank you. Planning to sell its first contingent capital securities. The riskiest type of bank debt. Britain passes biggest tax owed lender said it will market as much as he million dollars. Rbs reported an unexpected profit in the Second Quarter. It jumped in trading revenue more than offset higher legal expenses. The banks new coceo is moving ahead with plans to improve profits by cutting costs. He signaled he may shrink the operation. An average longterm u. S. Mortgage rates fell for the second straight week with a key threeyear rate slipping below 30 . 3. 90 this week from 4. 04 a week earlier. 3. 17 from 3. 21. Those are your top stories. A major partnership, the pharmacy plans to bring ibms technology into its 78th 7000th stores. Personalized care for each individual, and prevent unneeded, costly care interventions. For more on the partnership, we are joined by steve gold, ibms Vice President for what appear think you for being here. We really appreciate it. Be exploratory for now. Is evolving very quickly to we will be in market with the first pilot and by this time next year, we will introduce the first wave of solutions. Alix how does ibm get paid when you wind up with these solutions . It is a win win win. With these individuals, we benefit from these information is. Surely from a Provider Network in a Health Plan Perspective and a major employer perspective, that is a great thing to we are productive and contribute to the economy. Good in terms of driving outcome. Certainly for the practitioner paramount tot is this process. I go into cvs, i will pick up my out in medicine. What happens . How do you fit into that scenario . Visit your doctor, they prescribed that particular allergy medication you head over to cvs and pick up your treatment. They explain side effects and you go home. It does not take into consideration the more holistic view. Think about individuals like you that suffer allergy. Think about an earlier outbreak of pollen in the area. Think about the data that could be collected, the fact that you have a wearable and it is being downloaded to your apple health ,it and shared to your provider which cascades the amount of information we could truly have available to make better decisions. In that particular case, when youre talking to your pharmacist and you are being discharged, he will be able to draw on a much greater bit of information to ensure that you get a higher outcome that you are seeking. Alix i would love that. Let me tell you. How does it literally get paid for do you deliver a bunch of software to cvs and say ok, goodbye or are you involved in steve y relationship . The Business Model and the way that watson itself has to is delivered is through the service is you and i have access to various services and this on chronic conditions, ultimately will be exactly what that solution will take, whether it or a mobile device the individual will utilize, or something that will become part of the cvs system. How big could the partnership be . You have johnson johnson, and sales have been following for ibm. What is the potential here . It is huge. It is our next step in the strategy in april. We announced partnerships at j j, electronic. Andxtended our partnership we really turn the major milestone extending into the arena. As you point out, 7800 retail outlets, almost 1000 clinics, plus the affiliate networks, you can imagine 70 Million Networks and patients and individuals they serve, they stand to benefit from this. Growth initiatives, just for currency, of which watson is an integral part of that performance. We do not break out the individual watson numbers. The growingk at shift of technology, that this really represents the third era, to programmatic computing in the 1950s, those were dramatic shifts in the ways we as individuals and the organizations operate. Ofs represents a third area computing in which systems are capable of navigating, justin, understanding vast amount of information. Then theyhey wrote learn. The potential for technology is almost limitless and it will have a Significant Impact on our strategy moving towards valuebased delivery alix . A lot of money but he is not willing to tell me how much. All right, steve. Still ahead on the bloomberg is the last of the big social Media Companies to report this week and what you need to watch for . We will tell you. Alix were watching linked in. Shares trading lower ahead of Second Quarter results. Ofdoes not really have a lot big shoes to fill pair twitter, yell, and facebook are all in the red since announcing earnings mostly because it investors did not like what was said on the conference calls. Also with us is bloombert west anchor emily chang. Paul, what is the difference about linkedin, the expectations that they are dirt low after the quarterly miss. Stock that isa public. I put up very solid numbers investors were very cost will with their. Risky perceived as a less story in the social media space. That said, very weak guidance last quarter and the stock. Crushed 20 on the news. That was a real reason for the company and investors. I think expectation is a little more muted. The company will probably try hard to make this a nononsense kind of quarter. Just get it done. Is the main what metric we have to watch out for . Iily the number one thing will look at his mobile. Lincoln had more mobile visitors than desktop visitors. Investors why gauge the health of the company as a mobile company p linkedin has been making a lot of upgrades to its mobile app. It is still working on mobile upgrades. Is of the things it is doing sort of a signaling thing, like we have seen with facebook, buying a company like whats app, it seems like linked in could be moving in that direction. The other thing they set earlier this week, i do know if you have been on the receiving end of a lot of linked in emails, but linked in is notorious for sending too many emails. They are hoping that will increase engagement rather than ds crit rather than decrease it. Alix what about the recruiting products . It seems like it was a little dicey for them in the First Quarter. Paul i think generally they are pretty solid performers. They date they did take guidance down last quarter. Gets them into the professionalized cajun business, it is something investors did not really have a good handle on. Last order, the Company Really had to reset expectations in terms of how that fits in strategically. It is simply a question of how it will add to financials in the next several quarters. That is what investors were not were on. Concern a cause for last quarter. Expectations have been reset. I think expectations on the street from the south of and my side is probably little more in line with havings will go in the next several quarters. Hopefully, no surprises one way or the other. Investors are looking for a a baseuarter to reset for stocks and investors to take things higher. Everyone will want to hear about International Expansion plans. 800 money dollars overseas at least according to last year. What do we expect there . Emily linkedin is a company where twitter and facebook are blocked in china are linkedin found a way to china through a joint venture and that is something they have very much been for the on. Mentioned,lse paul the solution business has also been overhauling that business, which now, the greatest portion of the revenue comes from these services that they gave to recruiters. They it will be interesting to see if there are any signs of improvement there. Also, advertising the Marketing Business solutions, it is about 20 of the company. We saw twitter and facebook have big revenue numbers and most of their revenue comes from the talent business. So much, emily chang plus Paul Sweeney A Bloomberg intelligence. Be sure to tune in today at 4 30 p. M. Eastern for more on linkedins results. We will be looking at todays gdp. Alix we are moments away from the closing bell. Im alix steel. Joe im joe weisenthal. [closing bell ringing] u. S. Stocks fluctuating throughout the day with the s p closing slightly higher and the dollar lower. Joe the question is whatd you miss . Progress but slow progress the u. S. Economy spins gently. What is a mean for the market . Alix mood matters why such a gap between the performance of americansets and social moods . We will ask the experts. Joe linkedin is about to announce its earnings as a push into education. Begin withnt to stocks a wishywashy day across the board. I should point out the dow closed between close above the 200 it closed below the 200 day moving average. Onlities the best performer th