We continue to grind a little lower. Can i say that . Matt you may. Take a look at the Dow Jones Industrial average. The nasdaq, no, it looks like it is actually putting up some gains. That is interesting because apple has taken a hit. Apple stocks are down 2. 3 right now, almost three dollars. 115, 75 per share. Alix 104 million shares are trading in apple. A huge amount of volume youre seeing in that stock. Matt absolutely. Were headed toward a death cross on apple stock when the 50 Day Moving Average would come down below the 200 Day Moving Average. You technical traders, do not completely freak out. Alix i want to show you what is really moving right now. Aroundt big pop we saw 1 30. That was really dennis having an effect on the treasury market. He said in an interview with the wall street journal it could be appropriate to raise rates in september and that there is a jump in the shortterm yields that are very sensitive to any rate hike expectations are he did say there was a high bar to not acting. They are holding onto these gains here. Matt very interesting. You obviously want to Pay Attention. Our participants need to Pay Attention to that. Take a look at currency trades. Do we have we have the u. S. Dollar spot rising on the day gets currencies at a level of 9791. Near a four month high. That spike hearing commodities gained little bit of steam and then it went right out there. Matt can you say that . Stories making headlines at this hour. An unsolicited offer to buy back in hopes of creating a biotech about 30id the price billion in stocks. It represents a premium of 36 and values the target Company Stock at about 45 cents per share. Says they have declined to engage in substantive discussions over the proposal. Matt Health Holdings is expanding in the medical field. The allcash deal is worth about 1. 6 william dollars, a premium of 37 over the closing share price yesterday. Team Health Holdings the takeover expands the ability to staff hospitals and other medical facilities with doctors. Who has been overseeing the fortune will be leaving at the end of the year to start his own hedge fund firm. He is performing with a 2 billion investment, which will make his firm one of the Largest Hedge Fund startups ever. He will continue to advise the Family Office and after he leaves, Asset Allocation will be managed by the existing committees that robert soros investments put into place. David einhorn said Greenlight Capital investment dropped in july and that they were broadbased. He spoke in a Conference Call earlier today. He overall market environment has become unfavorable for our investment strategy. While we could have done better in a couple spots, we do not do not expect to do well we have experienced this type before and the short form shortterm results have been painful for us. We expect the environment to improve and we will recover. Sail is the worst month for the company pocket portfolio since 2008. Cbs health narrowed its full cat forecast. The new forecast overshadowed in secondquarter profit report, excluding onetime items Companies Come in two cents above the average of analyst estimates. Matt remember the tv advertisements for viagra . Cbs health is trying to do it is dropping the dysfunction medication. It comes to years before this kicks in. Patients will no longer be able to get viagra, but they will him willss biggest competitor continue to cover viagra. Those are just some of your top stories. Alix was met a commercial where theyre playing in the car . The baby boomer couple is sitting in a bathtub outside or maybe it is he does bathtubs. Outs coming up, donald trump used to be an outlier candidate that is now leading the polls. What Republican Voters want out of tromp, and the much anticipated debate coming up. Matt alibaba making plans to become a more global brand. A wellknown Goldman Sachs executive. Showing strong numbers in earnings today. Questions remain on whether the deal will actually go through here the ceo joins us later on. All that and much more is coming up. Yes. Ubers recent war with new york blasio was bill de not the first battle and probably will not be its last. Uber and other disruptive startups face hurdles in one company is stepping in to help. Firm a political advisory that launched monday, the founder of task ventures and an early advisor to uber joins us now from seventh scope with more. Thank you so much for joining us. What is your criteria when you look at companies that you want that is a great question. Couple of things, the first and foremost thing is, can we help them . A regulatory or political problem or opportunity. It does not have to be about fighting. Also, are they a company we think will have realtime that has potential and will grow . Lot over then a last couple of days so we have got to make decisions on finances for that company and their prospects and regulatory status and whether or not we could make a difference. Matt how important are the prospects . You have taken a stake in the to bey rather than asking paid in cash or some other monetary form. We have got to do the same kind of due diligence. The regulatory standpoint, political standpoint, can we make a real difference . If all of the things come together, and we can make economics work, we go ahead and take them. Alix you are the man behind it were winning in new york city against bill de blasio when he wanted to limit the number of uber cars on the road. What can you take from their . Sit is pretty rare you get the client so willing to do what it takes to win. You have a ceo who is just so smart and fearless that he could get things done that most people cannot. We were given a mandate of, do what you have to to win. That is great to hear when youre someone like me. There were a few good openings we were able to dig and manager. I think take advantage of. Think it is really broad in places like new york both because we have created over 20,000 jobs and because we had 2 million customers in our database. They have a long history of racial discrimination. You have got a Company Really beloved and another industry it was a problems, winning dynamic for us and we were able to base our Campaign Around jobs and access and do it from a lot of different digitalnts, from tv to and rally Community Leaders and bring in elected officials. That was enough to win this thing. Matt for those who do not know, you helped mike bloomberg. You are his Campaign Advisor when you ran for mayor. Field or one was really a campaign and it took on all the of the campaign. The object is to tell a story and achieve a particular goal. Wasas to help ensure that able to remain as mayor. Luckily, that worked out. The goal may be to bring back a proposed law that could be harmful or sell into government or could be regulated. Thatee a lot of Companies Want regulation because they want to legitimize marketplace. The markets are different in one jurisdiction. The underlying goal is the same thing. Political tactics and techniques. You fighting the good fight for any companies right now . Yes. Another one in about an hour. We will hopefully have one or two in the next week or two. Unlike a lot of start us who just want to be left alone with their business, some Bitcoin Companies do need an established marketplace. It is a different approach, one that would would be very interesting. To you aope to talk lot more often in the future. Very interesting. Matt loves everything about bitcoin. Up, donald trump is trumping his competitors in the race for the republican nomination. We will have the results in our exclusive bloomberg poll. Oft sometimes i just course, i was queued up in the prompter. Always on the move. Stocks are trading ahead of a record ahead of that are 25 for the year to date. It is enough to put it at a record. In terms of what folks are looking for with earnings, theyre looking to have any commentary on the us in and offering over the top service not connected to a caber Cable Network. Any forecast on star wars, the next installation coming out in september. Of the prior 12 earnings announcements, we have seen stocks go up. Over the past year for disney when we see stocks climb and client. Performance mixed the day after its reporting death reported earnings. The general trend has been decidedly upward as you can see. The company has beat or met earningspershare in the Second Quarter of 2011. Will a very different story here because ahead of its numbers, although it was down as much as a percent earlier, down about 5 . Much more pessimism as evidenced in the stocks going into the numbers. Analysts have talked about the effect of the dollar so they are focusing on that. A Competitive Landscape in with amazon watching its handmade offering. We will see how the numbers look given all that. Just to put a fine point on the youreerformance, looking at mid april, and this gothe ipo line, we sought public at 16. We see it that below several times and are heading back as we go into the Earnings Report tonight. If we can look at some of the winners and losers today, reported,that already all out with numbers that beat estimates. We have some that beat and some that missed, not equaling a lot of change in overall averages today. Thank you so much, julie hyman. Orders increased in june. The Commerce Department said factory orders advanced 1. 8 . Manufacturing has been held back this year by a rising dollar. Another level. Cutting the Energy Industry investment spending. To stand their ground against a massive wildfire, the task is daunting. The blaze has jumped a containment line and grown 97 square miles. Some temperatures and higher humidity. At least 13,000 people have been advised to evacuate and two dozen homes, 100 miles north of san francisco, have been destroyed. Matt this has been a typically busy day. 54th birthday. Like most president s, more gray hair than when he took office years ago. Became the fifth youngest president to enter the white house. He still seems pretty young to me. Those are your top stories were following for you right now. Alix hubble him president ial contenders will find out if they will get to be on the fox news stage. Set only by the candidates who finished the top 10 in the average of national surveys. Donald trump dominated the field winning 21 . Jeb was second winning half of that and Scott Walker Mike huckabee followed him. Bloomberg politics managing editor, were you surprised by these numbers . Not so much the rankings, but just the size . There is no doubt our polls are showing what a lot of polls are showing, just far just how far ahead. It was not shocking. We pay more attention to them than any others. He is in a strong position. Jeb bushetween him and is growing and set of shrinking. Bush seems to be fading a little bit. The other big surprise, everyone has been focused on these polls to figure out who will be thursday night to surprise everyone. The question is who we debt who death that slot . Rick perry . The governor now seems wellpositioned to take that slot. He is number 10 in our poll. That is surprising given how late he made it into the race very good news for him. To movehat is the power the polls in either direction . We will see. This is the first one. The firsthis will be time for a lot of Republican Voters and voters more generally. They have gotten a chance to look at the candidates and look at them sidebyside or generally, National Media attention helps. All of these guys would get the same degree of attention. Who performs well and who performs poorly . They are just kind of figuring out how to do it and getting interactions with their rivals. It might be a lot more fireworks. Matt i am looking at their opponent pollsters who also think candidates should be nice to each other. Surely at least the 21 who think donald trump should win here do not really care if he is mr. Nice guy on the stage. Alix or want him not to be. I am not sure what they would tell donald trump. There is a really deep split about what the other candidates. Hould do should they ignore him and be nice to him . Should they fight back . Should they make fun of him . This is all on the table. The question they are debating is how to debate donald trump. We know we will be watching that. We will be watching with all due respect to cohen they will be speaking with donald trump. The president ial republican ahead in the primaries. Alibaba. Avenue we have been as we have been telling you for years, they have now tapped Goldman Sachs to help do something about it. Stay with us to find out what it is. Alibaba has global ambitions. The giant is turning to a former goal Goldman Sachs executive to make that happen. Evans has been an advisor to inbaba since he went public december. Emily, what do we know right now that evans . Vice chairman of Goldman Sachs for many years. In 2013. D along the way, a very strong relationship in china. He has been on the board since the ipo and has been building those relationships not only in a show but across between the united states. To help develop jack mas global strategy and we know jack ma want to get 50 revenue. To increaseut Global Brands to the chinese consumer. About building relationships between united states, europe, asia, and helping to increase those brands. The ceo of alibaba said globalization is alibabas most important strategy in the goal is to help 10 million global businesses and 2 billion around the world. I can think of no one better than michael to help alibaba become a truly global company. It is interesting to see more executive from goldman , now coming to technology the ceoe as cfo there, cfo google, and interesting 20 trend were seeing. Matt alibaba has long wanted to be a global player. Emily chang, thank you for that. Alix thank you so much. Coming up on the bloomberg it bone to pick with bank of america. We will tell you why. Get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swifts music videos, interviews, and more. Xfinity is the destination for all things taylor swift. Alix welcome back. Lets get straight to a look at the top headlines. Escalated as the suspended deposit fund pays its obligation bond. One of its agencies defaulted for the first time. The come in play less than one that paid less than 1 million for a 68 billion payment. Bill rhodes talks about it earlier on bloomberg. Law thatis a 1968 caps medicaid and medicare. Others are much wealthier and you look at what they are getting and what the states are getting. It is basically not fair. That is why they should have another referendum on statehood. Government officials have yet to say which bondholders may be affected and by how much. Major trade deal to overcome their differences. The Transpacific Partnership would that if it people of all nations and serve as a model of global industry. Every participant will have to comply with environmental standards. Making sure the state owned companies are competing fairly. Everyone will have to fight. Ensure free and open digital trade and safeguard intellectual property. Alix russias foreign minister said it is submitting a bid to ,he u. N. For large expanses claiming more than 463,000 expanding 350 nautical miles from shore. A quarter of the planet passes oil and gas undiscovered. That is a look at some of the top stories for this tuesday. Corporate america has governance issues. It has not been this bad since the precut precrisis days. Agreed to buy him out last month and raised the fullyear forecast. The latest earnings after the bell, we will get a preview at a look at what the company may say about esf espn as a standalone service. One of the top analyst has a bone to pick with bank of america. The Bank Released a proposal urging the ceo and chairman. The ceo says it is a bad idea document. Ly flawed he spoke with Stephanie Ruhle earlier today. Qualifications, faulty process, its own best evidence. Lets start with cherry picked data. This is the data they used to support the notion. Exactly. Its year, the bank of america in these ways. Depending on the statistics. Now, think about what since october 1 at all the sudden, that is the relevant criteria. Last nine months, what is bank of america on the lunar calendar . An example of cherry picking data. In terms of inflated qualifications, bank of america described the ceoss abilities as unparalleled. Unparalleled. Move over jpmorgan. Who you have been critical of in the past. Still qualified. Move over wells fargo. These skills are unparalleled, as if he is a superhero or something. We know how you feel about Brian Moynihan. Would you work there . This is beyond just Brian Moynihan. Lets assume Brian Moynihan is a superhero, as implied. Even if he is the superhero they have a major governance issue. That means either changing the Governance Committee an important point that i want to emphasize to her your issue is not with moynahan, necessarily. He is same guy taking the stock almostrom six dollars to 18 today. He is restructured a Balance Sheet and gotten rid of tens of thousands of employees. It is with the board. This is a governance problem. Bank of america has the worst performance of any other bank citigroup. How they fix that evidence issue is up to them to fire the orbit Governance Committee, make we do not the top, care. But this needs to be fixed. Hink this new electorate director, we have this new lead director. They say he has got regulatory experience could what they do have saidhich they elsewhere, is that the regulatory experience comes from running hospitals. Not banks. What are you going to take, the head of the subway system and make him a director and say he has regulatory. That iser thing offensive to shareholders, the new lead independent director in the opening lines of the new regulatory submission, says bank of america conducted a thorough and thoughtful process when they recombined the ceo and chairman positions last october. That is incredible. What took place in 2009, the shareholders voted in a proposal to separate the chairman. That hardly ever happens. Then last october, they raise a measured want and say, lets recombined them without talking shareholders are the director says, that was a thorough and thoughtful process. Not by a mile. One think it will need to understand, why is this happening . Because aboard truly believes briney by needs to be the chairman and ceo, or is it he wants to be like almost every others eeo on wall street who do have those combined titles . Most angst have the position of ceo and chairman. Just got this combined role. Say he was one of the things he wanted city could be in the club. Theyre not in the varsity club. The returns are still toward the bottom. Theyre in the same club at citigroup. The assistance and oversight that they needed. If youre in the citigroup cloak, he should have a separate ceo and chairman role. The way, before the financial crisis, it might have helped to have an independent set of eyes at the top that say, are you sure you want to buy countrywide . Alice culinary impassioned. Coming up, aetna is coming off of a healthy Second Quarter. Will the deal actually go through . Alix welcome back. Time now for a look at the markets. 15 minutes before the closing bell. Julie hyman. Lets be honest. Crazy story of the day. Not a lot of movement on the averages. Were seeing a little bit of a decline as we see the Earnings Report offsetting one another. We are seeing it fall for 10 of the last 11 sessions. Down 3 right now. Not really anything particular triggering this decline were seeing, one of the incredible things about it. Apple is linked to china. Were seeing chinavery turbulent pair not a lot of catalysts. The 200 Day Moving Average. We checked on this yesterday. This is the second day it is below, a range where looking at here. Apple is so heavily weighted in the major averages, consisting of about 3. 6 of the s p 500 and 4 of the Dow Jones Industrial average. Lets take a look at volume for apple. A little hard to spot. Volume here is considerably higher than normal. Right now, 114 million shares hands, relatively unusual here. The oneyear year average volume is 53 million shares. More than double the average volume for an entire day. We still have 15 minutes to go. The volume spikes we intend to see, this is an Earnings Report. We do not tend to see volume spikes of this magnitude very often appear that is what were looking at today. This becausetion it gets a lot of attention. It does not have nearly the weight apple has. Netflix was 7. 5 . What appears to have sparked it was a death was an analyst note. A price target of 150,000. The highest target for any analysts on wall street. Analysts say the paid International Subscribers should rise by an annual compound gross , an annual compound growth rate of 35 through 2020. The average price target for netflix, 114. 160 his way up there. Good stuff. Thank you. A company were watching today is aetna. Job a sixth straight quarter, and the results come as a no work through a billiondollar deal with humana. ,e are joined now from hartford connecticut. You have to look at it at the local market level. At each level of the market, the department of justice looks at anpetitors, etc. , opportunity for consumers. Markets, thereur are seven or eight competitors that is an important thing to consider. In addition, the combined companies would only have 8 of the medicare market price. It is not like we are at 40 and having an a monopoly. What level of departures are you anticipating . We have been fairly conservative with in our analysis. We will have to talk about that with the department of justice. Strict when ity comes to emanate. Two other deals in the health care space. What do you think that does to your chances . I do not think it does anything to the chances and the opportunity. It will be a complicated analysis at a market because you will now have as many as six competitors in one market team evaluated as to whether or not that reduces competition for the whole marketplace. That may or may not allow certain investor just on the part of any of the parties. It makes a threeway conversation versus a two way conversation. If one does not go through, none of them go through . I do not think it necessarily means that. Alix d feel they are mostly separate . Are veryhink they different deals and that is how they will be evaluated at him level. Alix the probability was put at ut. 5 million investors Medicare Advantage members in markets. Would you say that would be an incremental loss for you or you could handle Something Like that . Half a million members . We have put them in a conservative way as we conveyed them to wall street and investors. I do not want to put any numbers around this. That is a conversation to have with the department of justice. Alix why do you think it was the right time to expand havana . A different agreement with cigna going to insurance. I think the real issue is, what we have seen is the model for insurance changed. It is no longer creating balance across markets. It is now taking on risk appropriately, getting paid to manage the risk, and getting it positive outcome. It changes the marketplace to very much a retail market. Humanas strengths are not only the Medicare Advantage portfolio, but more importantly, the ability to understand a consumer german retail market. Consumer driven retail market. They become very strong in the retail marketplace, the individual marketplace. The only way that market is sustainable is if the provider system, which is the vast majority, 85 of the structure of our business, that provider system can sustain its cross structure overtime. Partnerships with dividers at the local market level was the only way they will have the ability to put a cap on premiums Going Forward to keep the product. You take a look forward to the next six months, what has your relationship with the doj in in this merger process . Mark we are sharing data with them and analyses as big and that will be the first stage of the conversation, how do we consider the data, what are we looking at and what are they look cap, and that will set the stage for a conversation about what we think of Market Dynamics are. Where the products we will consider, what do we consider the market to be. That will set the stage for where, if anywhere, do we need to make the best teachers, how do we go about doing that, what kind of competitors do we need in order to make the Market Dynamic and continue to be competitive. For now the talks seem to be progressing. Thank you very much, chairman and the all of aetna. Thank you for joining us. Now to the top stories making headlines this hour. Valued at one 500,000, including a 2010 rollsroyce and a chevrolet coupe. That is some of the details being revealed in a bankruptcy rapper . 50. His property is his most valuable property listed in papers filed monday at 8. 3 million. The rapper filed for bankruptcy last month after he was ordered to pay money to a woman who said he posted a sex tape online. For renowned grades of the onion world. Nolesser violation and paid fines. It did lose onions valued at more than 100,000 when they rotted. Mexico, to in western does miles into the sky. Not noo does evacuations so far. Those are your top stories. Still ahead, we will dig into what to expect from the Worlds Largest company and hopefully play a trailer for you. Worldsses of the Largest Entertainment Company up almost 30 this year, trading read around a record high. Joining us now is paul sweeney, hey. The number one metric you are watching . Paul cash flow out of the Cable Networks. Espn has been a cash flow driver for this company for as long as people can remember. There is investor concern a little bit around Cable Networks. Erosion aen audience little bit at espn. The question will be for a lot of investors, what can we count on for espn and the Cable Network segment . It will still be the major cash flow come contributor. Is there any way to quantify the stock . Importants the most part of the company parity thing about the film business. So much success with the marvel films and we have got star wars upcoming. These bigbusiness for entertainment stocks tends not to drive them very much. It does not matter if they have a big hit or a flop. Ist really moves the stocks the Cable Network business. That is the biggest cash flow generator. Also the theme parks business has been excellent business for them. Theme parks and cruise ships, their opening Shanghai Disney in 2016. That area has been throwing up a lot of cash flow. It over the top agreement, or what might we see the opposite . It is interesting. They are experimenting with a lot of these packages. Disney has been a Big Media Company of embracing technology. They have always been out there trying new things. They are continued seeing what they do. They have seen the success of netflix and have seen hbo go direct to consumers with hbo now. Nickelodeon and some of these other providers. I think theyre thinking of espn, the big asset. And what program did they put to consumers and what did they charge for . We might get some news tonight on the earnings call. Revenue for the industry has been softer than what people would like. Conclude overt to the last several weeks. It does not bode well for broadcast television. The market is just ok. The were finding on broadcast side is that ratings are week across the board, whether it is that programming or people leaving the broadcast and infrastructure and going into the netflix of the world. Atings are down advertisement dollars are flat at best for tv. Not much on the advertising front so far. Think you can get the frozen song out of your mind or there will be sequels are no one does it better than disney. Alix good stuff. Thank you so much, paul sweeney and director of north American Research for bloomberg intelligence. Much more ahead on what you missed. Do touerto rico needs to shore up its economy, we will have the three charts you need to know that the housing recovery and what it says. We will be right back. Alix were where closing bell. I steal. Joe i am joe weisenthal. Alix u. S. Stocks closing down with the s p 500s slipping below its average price for the last 50 days. Joe question is, what you miss . Puerto rico 72 billion conundrum. The territory groans under enormous and misses a key payment. What is ahead . Alix Real Estate Interest rates set to rise. In the Housing Market ready . Joe disney is about to open up in show its earnings for star wars. You were looking at the s p relatively flat on the day. But it is closing below its 50 and 100 Day Moving Average. Eight of the 10 sectors all below