That wages are not necessarily increasing the way economist anticipated. Pimm the worst performance in wage growth ever on record back to 1982. Scarlet the Consumer Confidence number was a little lighter than what economists had anticipated. Look at oil companies. That is the s p 500 intraday. The s p 500 taking the worst hit exxon taking the worst hit. Was not far off. Lots of superlatives and none of them positive. Lets get a check on oil prices and gold. Nymex crude down. Brent down 1. 5 . Gold up by 0. 5 . Pimm lets see how the wage report reflected in the bond market. A little bit of buying at the 10year and the 30year. Look at theemonth 10 year yield. Yields are down. Prices up. People interested in buying the 10year. Lets take a look at the currency. The dollar is unchanged against the euro. The dollar weakened against the japanese yen. The dollar continues to increase in value. All at stake a look at something youve got in your terminal. Scarlet we want to end things off with how the indexes have closed out the month of july. You might not be up to see it at the very bottom, but the shanghai composite is off by nearly 15 . By hang seng index is off just over 14 . You have chinese equities. Commodity related companies and Chinese Companies dragging things lower for Global Equities overall. Venezuela, you are highlighting, up 20 . Pimm take a look right in the middle. The cac 40. It is up 5 . The swiss market indexes up 4 . Those are two european markets. What are you doing now . Go ahead. Scarlet i want to mention this, as well. The Greek Stock Exchange was closed. Pimm it is going to open august three, i believe. Scarlet resumption of trading will happen once again. Things are slowly getting back to normal in athens and the rest of greece. Pimm lets take a look at some the top some of stories. Hiring is improving, but pay is not. That is the bottom line in a new figure from the labor department. The growth in wages and benefits was the slowest in nearly three decades. Privatesector salary and benefits were unchanged. The weakest showing since the government started tracking this information 35 years ago. Scarlet Consumer Confidence falling to an eightmonth low this morning. It did hold above 90, which is a relatively high number, for eight straight months. What goes up must come down. Pimm that is gravity. Scarlet Hillary Clinton is calling on congress to end the u. S. Trade embargo on cuba. se endorsed president obama call to normalize relations. That puts her at odds with republican president ial candidates. Congress is unlikely to pass a change anytime soon. One house member said she is ready to rejoin the global economy. It is a country in transition. The government, once calling themselves communists, now refers to themselves as socialists. We want access to free markets. You talk to people on the street. Out of the 11 million population, there is almost half a million who are involved in private business ventures. Scarlet in a recent Pew Center Poll come in nearly three quarters of those surveyed back to normalizing relations with cuba and ending the embargo. Pimm the Swiss National bank is reporting a record loss in the first half of this year. This is sparking criticism of the bank and its president , thomas jordan. Of bank posted a six month 52 billion. Bank officials blamed the swiss francs surge against the euro. The bank is not required to turn a profit, but it does need income to support the central and local governments. In greece, the Prime Minister said he never had plans to leave his country out of the euro. Alexis tsipras responded to reports that said his former finance minister had a plan for a parallel currency. But tsipras did say he was ready if the situation got worse. Course, i issued personal instructions to the finance minister to create a team that would work on a plan of defense in the event of a national emergency. It would have been politically naive and the responsible to do so. Does that seem mean i was seeking an emergency . Pimm for the First Time Since tsipras took office, the troika has returned. Representatives from the euro paean centralbank, the International Monetary fund they are negotiating terms of the bailout. Greek Financial Markets are set to reopen on august 3. Scarlet beijing will host the Winter Olympics come 2022. The decision was announced by the International Olympic committee. They held a secret phot during their meeting in malaysia. The only other finalist was kazakhstan. Ballots after a glitch stalled the computer programs. Plenty of critics point to chinas pollution as a negative. Kazakhstan was pushing to become the first Central Asian nation to host the games. Its president posted that they can offer boasted that they can offer real snow. Booze will be sent to the International Space station next month to see how time and zero gravity environment affects the flavor. The whiskey will stay there for at least a year. Entauri suntory for relaxing times. Pimm make it suntory times. Lost in translation. Go with scarlett johansson. Pimm those are your top stories at noon, new york time. Soul cycle is bringing the cardio party to wall street. The are talking about Indoor Cycling chain wellknown in places like new york, los angeles, it wants to go public. Scarlet soul cycles notorious haslike following propelled their meteoric climb. Will this initial Public Offering help with you into shape . Joining us is leslie picker, who covers the ipo market. Equinox owns 97 of the company. The founders have already taken a step back. Wire the going public . Equinoxif you belong to , you dont get free soul cycle. This is the perfect time for Health Companies to go public. They are one of several seeming to tap the public market. Planet fitness is next week. Brands is going public. They are the makers of skinny pop and other snack brands. Pimm they making money . Leslie they are making money. They are expanding net income by 42 yearoveryear. Forty significant margins each of those little studios. Scarlet this is an exercise chain, but they also sell expensive clothing. Mickey drexler is a nominee to the board. What does that mean about soul cycles retail ambitions . Leslie it should signal that they are serious about retail ambitions. If you enter any soul cycle studio, you will see their merchandise. It is not cheap. You see 78 sweat pants. Headbands. It is part of their brand. You see these loyalists or cult members, as people call them, walking in a door and with all of the soul cycle attire. People are certainly making money from it on the side. Pimm it looks a little like a roman galley. Leslie this is also a real estate story. They are operating expensive compensation. About 9te was only million. They do say that if they are not able to achieve appropriate lease prices and able to renew their lease is that appropriate numbers, then that could cause a problem for the company. Pimm steve roth. Properties. Good point. T is a you bring up compensation. Their instructors are incredibly wellpaid. Companylicly traded beholden to shareholders, who will be looking at the bottom line, wouldnt that be a risk . Some of the classes are impossible to get into because an instructor is so favored. Once every pressure on that . Leslie there could be pressure, but it is the price that attracts the most talented instructors to soul cycle. It is part of what they offer to customers. They train them very well. They have sole university soul university. They want to make it inspirational and aspirational and they devote a lot of time to these instructors. The goal would be to retain instructors and you may have to pay up to do so. Pimm what is the likelihood that this does better than Planet Fitness or the other companies that have gone public . Leslie what soul cycle has the Planet Fitness does not have and the owner of new York Sports Club does not have is it is more of a niche studio type product. That is the new disruptive model we are starting to see. People will buy 34 45 minute sessions at soul cycle and not join gyms. Class pass is the service it offers for 100 per month, unlimited niche type classes. This is the new highgrowth method for people to work out. With the life Trend Fitness is of the world, people are starting to abandon those types of Business Models and opt for the studio niche. Scarlet thanks so much, leslie picker. She was here late last night writing all the stories about soul cycle. Which are among the most read stories at bloomberg. Shameless plug. Next thursday, the ceo of planet thickness Planet Fitness will be on bloomberg market day. Still ahead, soul cycles ipo proves there is the potential for growth in indoor fitness. We look at the popularity of another sport rockclimbing studios. What exactly is the draw . Pimm a little shot of the empire state building. Scarlet last day of july. Pimm it is another scorcher. It is summertime. Welcome back to the bloomberg. Arket day scarlet lets start with a stock hitting an alltime high. Expedia. Hey are up by 10 they reported an increase in bookings if you exclude a company that is in the process of selling. A lot of people are still putting their travel on expedia. Elsewhere in technology, we are seeing linkedin. Company raised its forecast, but said a lot of that was from the proceeds of its education website. There is concern. Those shares are down by 9 . Electronic arts we are also watching. They have in making a transition the company was short of analyst estimates. They will introduce games related to star wars. Fact has to do with earnings. Go pro is rising after citigroup upgraded it to a buy. Flying cameras or drones could generate 5 billion to 10 billion in sales by 2020. We are seeing sentiment improved on go pro. This goes back to when analysts initiated their coverage. We saw an even distribution of cells and buys sells and buys , but now we are right around back to those levels. We are at the smallest levels of cell ratings. Is not, a company that out with earnings, but is set to report them next wednesday. Im talking about priceline. Recommends owning shares of that company. European travel trends remain strong. If expedia is any indication, we will see similar commentary from priceline. Scarlet julie hyman, thank you so much. Pimm lets take a look at top stories. The the European Commission is investigating the takeover of tnt by fedex. European regulators say the deal may lead to higher prices. Regulators have previously stopped ups from buying tnt two years ago. Scarlet investors are suing American Express for losing its deal with costco. They said they failed to inform importance ofhe that relationship. Pimm federal inmates could get Free College Courses thanks to a new pilot program. The department of education is offering prisoners limited access to pell grants. These are typically for low income students and do not have to be repaid. Congress banned such aid to prisoners more than 20 years ago. This program goes around that ban because it is only a trial period. Scarlet this is the obama in stray shin administration moving unilaterally. There is a lot of hubbub in congress because of that. Pimm it also plays into the spotlight that the president has been putting on the prison system with his recent visit to a person system. Scarlet did you know the value of a health grant changes annually . Is adjusted. The government 34 billion on health grants overall. Philip at the top stories. I didnt mean to jump on. Pimm no, by all means. Scarlet Falling Oil Prices pushes down profits at the biggest oil producers. China falls in again. Capping the biggest monthly drop since 2009. We will tell you what the government is doing to try to halt the slide in stock prices. Pimm in our friday good life segment, we have been talking about soul cycle filing for an upcoming ipo. Planet fitness is also talking about an ipo. Scarlet there is another branch to the indoor sport craze and that is rockclimbing. There are hundreds of rockclimbing studios in the u. S. And they can attract a different demographic than soul cycle. The rock club was founded in 2006 outside new york city. Full disclosure, i have gone to the rock club with my boys because they were attending a Birthday Party a couple of years ago. One of your key demographics is children. They are driving a lot of this. They are. It is a phenomenal sport for kids. It is multiple businesses. We have adults, kids, we have a traveling team that climbs competitively and travels all over the country in competitions. Pimm tell us you started this business. I retired from another career and i want to to do something a little more interesting. And kind of fun. It is hard to find places to do it. My family climbs and i got into it. Pimm how did you get this space . It is hard. You really have to scour around. Scarlet it has got to be big enough. We built the space. Typically, climbing gyms will be in old warehouses. Pimm 15,000 square feet . Hours is about 10,000 square feet. And we have 40 foot ceilings. You need the headspace. You need the headspace. That is not so easy. Scarlet indoor climbing appeals to a lot of kids and young women are doing very well with this. What does that mean for the sports future. Doesnt need male participation to be mainstream, to have scale . To the contrary, it needs women to participate to become mainstream. It started as a march oh guy thing. These oldschool guys climbing entirelywere almost men. As women have gotten into it more and more, it has taken off. Women realize they can do it and there is no sex advantage. You dont need strength. Were talking specifically about the difference between Upper Body Strength and the strength in your legs and saying that you dont need a lot of Upper Body Strength in order to do this. It is more legs and balance. It is like yoga, in a certain way. We call it yoga on steroids. If you look at some of the videos, that is what it really looks like. Scarlet yoga was very hot and faddish before it got taken over by crossfit. We have been talking about soul cycles ipo. What indications do you have that this particular sport is more than just a fad . The way that some people might accused soul cycle of being just a fad. It is different in that it is really a sport. One of the misconceptions that beginners or nonclimbers have is that they are going to an Amusement Park or that it is very dangerous or Something Like it is not. As you quickly get into it, you realize it is a sport. It is something you can continue with forever. I dont think you hear of people doing soul cycle or these home,se fads, taking that or looking for places to do that. Pimm how much cost to get good and enjoy it . Immediately. It cost 20 for a day pass and that is about it area you can get people up and down safely. Scarlet we love instant gratification. To be good right away, im in. You so much. Come owner of the rock club in new rochelle. Pimm, you are off for the weekend. We have much more coming up. Results. Il and chevron we will reflect on those after the break. Welcome back to the bloomberg market day. Im scarlet fu. Lets get you a look at these top stories this hour. Criminal charges in the Fukushima Nuclear disaster. There were meltdowns in three reactors after an earthquake. That caused radiation leaks, forcing tens of thousands of people to evacuate. Fornd was strongest january. 90 million in Treasury Bonds were issued. We search comes even as expect an Interest Rate increase sometime this year, potentially in september. One prominent Economist Says the is moref the hike crucial than the timing. On whether hinges the first rate hike is in september or december. A lot hinges on what rates are going to do between now and the end of 2016. Are there going to be one another 100 basis points . Whether the starting point is september or december is really of minor importance. Scarlet the Federal Reserve has held its rate near zero cents 2008. Last year, seattle quarterback Russell Wilson play for 662,000 in base salary. Now, he signed a deal that will pay him almost 80 million. He led seattle to the super bowl the last two years. Rare precivil war Baseball Card fetched over 179,000 at auction last night. It was sold at heritage auctions. It has been a big week for tech earnings. First, we have to focus on big oil. Reported severely weakened profits. They hardly kept pace with the drop in oil prices. They are reducing rig counts, basically anything to cut back production. She says this environment is the most worrisome and 25 years. Let me start with you. Lowest in 20e years because of the breakdown in oil and gas. With ouroke earlier guest, he said we are only in the second inning. Do you agree . Are we that far away . This is just the beginning. I think what we will continue to see our asset rundowns, layoffs at the sales and as i mentioned to one of your producers, this is the perfect storm and energy bear markets. Besides the drop in crude oil prices, the industry has to contend with the downturn in china and the price war with opec and i do not see that letting out anytime soon. Letting up anytime soon. X, what struck you with the numbers . 12 Oil Production was year on year and production in terms of priority is way down on the list, but they increased quarterly dividends. They are providing what investors want and they are growing production. It is a huge deal. They also announced discovery right near venezuela. They put up 40 billion. They have 100 million perils and reserve, which raises a question about m a. They have 100 Million Barrels in reserve. If inflation is going up, why would they need to do that . Nna, what do you think . Is an environment for buying. It is a buyers market. Companies with deep pockets, yes, they are absolutely key or consolidations. This is the perfect environment for consolidation and i think we have seen that with shell, bg, and will continue to see consolidation in this sector as remain up. Rices we may continue to see more, but companies with large cash reserves absolutely are the prime candidates. Saw it shell and bg, but that was a natural gas deal. We have not seen the highend we gasd expect in the oil and industry. What you think will be the turning point and do you think a company like exxon will be among those buyers . Gianna i would like not to speculate on specific companies, but what i will say is, as we come into the end of the year, the companies will look at their portfolio of assets, and i think the writedowns are going to , and as writedowns continue all over the globe for all of these companies, they will look at what makes the most strategic economic sense for their businesses. What fits with their portfolio what projects will remain on the back burner until the economic environment improves. They will look at the economics, the strategy, determine where they want to grow and how they want to grow . Areink that these companies very deliberate in their transaction. I think it will unfold over the next 12 to 18 months. You had numbers earlier 150,000 cuts across the industry . Alix that is pretty much what we are looking at. 150,000 across the board. Halliburton, 9000. They are getting squeezed on Lower Oil Prices and are making less for their services, 10 and 30 . Een it has been a brutal time for the industry. More firings are to come because these Companies Need to preserve cash. Is it similar to the Banking Industry that they overfire when times are bad, leaving them honorable when there is an upswing and they have to leaving them vulnerable when there is an upswing and they have to overhire . They are at the mercy of the larger producing majors. When the majors cut back, that has a trickle down effect on the oil service sectors. These Service Companies will field it harder and before the producing companies. In terms of layoffs, it is hard to say, and it is a Fair Assessment that all of these companies will be looking for ways to preserve cash. Alix look what happened in the 1980s, scarlet. To recover thes labor force that resulted in a labor shortage and higher work force cost. You wonder if big oil will be more conservative, cutting more nonessential personnel, contractors, versus guys who really make their business function because of the risk of losing the workforce permanently for the next few decades . Scarlet right, having learned the hard way. I want to play for you what Michael Cohen said earlier. Here is what he said. The market has this impression that we think is false that the market is extremely overweight. In reality the next couple of weeks and maybe the next of and of the year the market will be waking up to a picture that is vastly tighter than where we are right now. Teach. so, you aboutll your students misperceptions. What is the biggest misperception you are correcting for them . Ianna what i would say for Commodity Markets is it is like anything else. This is a bull market for net gassing crude oil. The markets, i think, are going to come back. It will take time. The dynamicer china downturn, it may be the better part of 12 to 16 months of commodity come back. They do even the worst markets, 19 98, the 2000 market, i think this trend is more concerning than the 20082009 downturn. Commodity markets are volatile. It is the nature of the sector. Will return, but it will take the better part of two years to return. We have opec playing itself out. Which, we have never seen anything like a price war with opec. It looks like they are digging in their heels, so this could be prolonged. Alix, you say a lot of this depends on what nonopec members do . Alix we have not seen brazil cutback. That is what the iea is betting on. Alix steel, our resident commodities expert, thank you so much, gianna, joining us from chicago. What can the price of sushi tell us about the overall economy . That is coming up. Is the bloomberg market day. I am scarlet fu. Down theing day up and east coast. It looks ok, but when you go outside you just get hit in the face with humidity and heat. Lets go to julie hyman for a look at the big market stories. What is hot in markets . Into it is perfect to go the weekend, to get hit in the face. There is not a lot hot in the markets. We saw a soso session. More or less the dow is less. Take a look at my bloomberg terminal, the different sectors here. Pretty even green and red today. Resenting this little slice, the biggest drag. Utilities are up the most in todays presenting this little slice, the biggest drag. Utilities are up the most in todays session. This is where the drag is coming on stocks. Again, setdown once up for the worst month of the year, exxon and chevron falling. High. D gas slice of that as for the utility slice of the pie, that has to do with rates in the treasury market. When you get falling rates, you get those stocks going higher. Rates thatvidend look relatively attractive. It is the lowest in about three weeks time. You saw the big drop earlier. Then you have the cost index showing growth lower than economists had predicted your the outlook for the fed changes once again. Roundt of have done a trip in terms of the fed Fund Features and pricing in the probability of a rate increase in september. Its right back to where we were before we got the feds statement. Have, for little bit. A little bit. Me up the eci, it is up 10 . You, julie hyman. There is a report the next generation Apple Television will next september. It is an improved settop box that will have more storage, a touchpad, and for his control. It would be the first major change in the apple settop box and the 12. Windows 10 out of the starting gate. It is already on 4 Million Computers two days after its release. Goal. Setting a lofty it is a Free Download for those updating. When amazon announced a push to order button on april 1, we thought it was a joke, but it is here. 4. 99, users can order a dash button. There are brands participating including easy mac. Matt miller was asking if there was a beer button, too, because that is something people like. Mark crumpton is laughing. Food, the price of sushi can tell you a lot about the u. S. Economy. New yorkers are getting a bit of a raw deal because the average price of two standard sushi menu items and we are using california rolls and spicy tuna rolls art 8. 68 in new york, the highest of 20 major cities. Mark crumpton joins me in now. Mark, what is your favorite sushi . Mark california rolls. I am very hungry now. I know what im doing at 2 30. You will be15, having ice cream. But if you are on the west coast, sushi does not have to travel that far. They ship it overnight. Here in new york, some restaurants will decide, lets placed our order together so it is cheaper for all of us. But if you are one of these restaurants that has sushi is not so that wellknown, they probably want to make the order by themselves and it will cost more money. Scarlet and you wonder to some extent whether sushi gets shipped everything tonight. If it is not, then you might have threedayold fish, which we do not want to get into. Is just 2. 2 rice this past year, which is actually a little behind inflation. The yen must be part of that. Mark absolutely. You know what . When i was told about this story, there are a couple of indexes. The sushinomics costofliving index scarlet you cant make this up. Mark there is also the sushinomics premium price index in 30 cities. Wow. Look at that. Greenwich, l. A. , dallas, boston. Scarlet greenwich, connecticut make sense. Mark it absolutely makes sense. They have the highest income per capita, so you figure they will pay a lot for sushi. But our story on bloomberg. Com by claire boston and way lou, what they point out, some of these restaurants they also take into account rent your if they cost a lot of money and some of the cities to rent that space, especially in new york, especially in los angeles. And san francisco. Mark some of that will get passed along to the customer because it is not so much the delicacy of the raw fish, at the delicacy of we have to pay a least. So, some of that cost will be transferred to you as well. Scarlet all right, i am in the mood for hamachi don. What you have coming up . Mark sushi. The Nuclear Agreement between the world powers and iran. We are looking at what this will whatfor the iranians and the International Debt markets are going to embrace, should the politics of all of this find his way to what we would call fruition and normalize relations between iran and world powers. The ceo of greylock capital. He was recently in tehran. He sent us pictures. And his son went on nature of their. He had interesting things to tell us about whether the irani and debt market is ready right now. We will look at that, coming up next. In the Mark Crumpton next hour of bloomberg market day. Cruises next tom star power comes under scrutiny as the latest Mission Impossible film hits theaters. Scarlet this weekend, going rogue has a whole new meaning. Can you open the door . The plane. Ing can you open the door . Maybe. Open the door years old and still engaging in risky business, but he may face his toughest test yet as the new Mission Impossible its theaters. Joining me, my guest who met up with tom cruise at the World Premiere of rogue nation. Give us your unvarnished opinion. I know you just met with tom cruise. Is it goodbye Mission Impossible standards or any movie standards . Guest yes, all of the above. I think it may be the best in the series. Sharks script. Tom cruise is at the top of his ite here and i got to watch twice in vienna. My opinion is a little stronger having seen it multiple times. Fantastic film. Are beyondsequences reproach. Tom cruise just goes for it. And he told me that. He just went for it. He holds his breath underwater for six minutes scarlet he is known for performing his own stunts. Is that part of the draw . Guest i think it is. I think when you go to the theaters, youre looking for an actor or actress giving all of themselves to the movie. Two and a half hours before the premiere, he is signing autographs. They started the movie late because tommys to talk to everyone about the movie. He is a pro. That is why people turn out for his movies because he sacrifices a lot. He sacrifices a lot and there is an authenticity about. Ow far he goes for the roles but his personal life is a twist. Have people gotten past that, the were jumping on the couch . Are pastthink people that. I separate somebodys personal life on the movie. I do not go to the movie to watch their personal life. I go to watch them entertain me. I think a lot of people feel the same way about that. Scarlet who is his fan base . Anybody you is a fan of action movies, but people who grew up with tom cruise, who have always been entertained by tom cruise. My father told me a lifetime ago, tom cruise is a guy who gives you his moneys worth. I think they are bringing their families now. One of my friends took his whole family to see Mission Impossible last night. They had a great time. Scarlet thank you so much, erik davis, managing editor at fandango. He gives this is taking stock for tuesday, november 26, 2013. I am pimm fox. He gives Mission Impossible rogue nation two thumbs up. Ethan hunt in Mission Impossible rogue nation. Scarlet good friday. 1 00 p. M. In new york, 1 00 a. M. In hong kong. Mark welcome to the bloomberg market day. Linkedin shares plunge over growths over slowing while facebook surges. Sanctions being lifted we look at the potential with a Hedge Fund Manager who just returned from tehran. Mark game on for a beijing. The Chinese Capital chosen as the host of the 2022 winter of choking spite pollution and little natural snow. Scarlet good afternoon. In scarlet fu. I am Mark Crumpton. Thank you for joining us on this last friday in july 2015. Little change