Ordered the National Guard to restore peace in ferguson. It was another night of violence sparked by the killing of a black teenager by Police Officer just under two weeks ago. We begin with the top story over the weekend, defiant rick perry says he will overcome what he calls a political prosecution after being indicted on abuse of power charges. The legal fight threatens to undermine the texas governors political makeover since his disastrous president ial run in 2012. Peter cook has more on the case meanst perry and what it for his future. Peter, how big of a hit is he facing . How serious are these indictments . This is serious, and certainly damaging. The president ial candidate wants their name in the headline with the word indictment written soon after it but that is what rick perry is facing in texas. It is damaging shortterm. At the same time, ive heard from some democrats that think the case against him maybe flimsy. Because of that, ultimately, this could end up being a plus for rick airey because it could rally republican support around him. At a minimum, it is a distraction. It will be talked about every time he goes to one of those early primary states. Here he is over the weekend defending himself and taking on this case. Im confident that we will ultimately prevail, that this will be a prosecution revealed for what it is. And those responsible will be held accountable. A very confident sounding rate area over the weekend. The reality is, he could have his mug shot taken as soon as this week and also fingerprinted. These are not the kinds of things you want to be happening if youre thinking about running again for president. What exactly has he been accused of doing . Two specific charges. The first is coming is accused of trying to coerce another public official and the other is basically abuse of his official capacity as governor. On the charge about coercing another public official, what were talking about is the Travis County district attorney, who happens to be a democrat, he was asking her to resign after she was busted for drunk driving. She did not resign so he first threatened in the followthrough on a veto of more than 7 million in funding for her office because within her office is a unit of that investigation public corruption in the state of texas. He said he did not have confidence in her ability to carry out that responsibility going forward. That is where this all happened. In light of that, a Watchdog Group filed an official complaint over rick perrys actions. It was into republican judge. He appointed a special prosecutor. It is the special prosecutor that brought this case. A Travis County grand jury approved these indictments and moved this case forward. That is where rick areas right now. But i love the video of the wasted da, by the way. Very embarrassing moment for her. Very embarrassing, im sure. Run for kerrys president was in nursing for him and the entire state of president was embarrassing for him and the entire state of texas. Debate was just awful. How could he think about running for president again . The oops moment from the debate was his real low mark. Surprised when he started putting the wheels of motion to run again. In particular, says rick perry has been a much better candidate this time around, much more comfortable on the stump, much more polished and some of his policy discussions. He has concentrating behind the scenes. The political makeover has been working pretty well. To be fair, this is going to be a longshot challenge for rick perry to be in the front tier of candidates in 2016 given what happened in 2012. He hasnt officially jumped into the race. Certainly, these indictments are going to be a new curveball, if you will, in the equation as he considers a run and how this will play out. This will probably take at least a year to resolve itself is the normal core process takes place in texas. He will be talking about this for a while. Those glasses make him look so much more intelligent and trustworthy, dont you think . I should get some. I will get some by tomorrow morning. In washington, thank you so much for that. Moving and shaking this hour, wikileaks founder Julian Assange for the last two years has been holed up in Ecuadors Embassy in london, now says he will soon leave his refuge. In 2010, with leaks published thousands of lead military and diplomatic cables including u. S. Communications about Foreign Government and the wars in iraq and afghanistan. Julian assange sought asylum in the Ecuadorian Embassy over another legal issue. He doesnt want to be extradited to sweden for questioning in a Sexual Assault case. Caroline hyde is outside the embassy now and joins us with more. What can you tell us about julian and his hideout there . Extraordinary scene. I am about a stones throw away from the Department Store luxury harrods in central london. Media, police are camped outside the Ecuadorian Embassy, waiting to get a glimpse of Julian Assange. Will it happen today or tomorrow . Were not sure. But we understand potentially due to his ill health, this is why he will eventually leave. Why he was confined. He faces perhaps immediate deporting to sweden where he faces allegations of Sexual Assault dating back some four years. That is why he has been here for two years, trying to avoid that the tension. The key areas, what he says he really faces is being sent back whene United States wikileaks did leak thousands of documents, classified documents, of the United States and its interactions with other governments, interactions to do with iraq or afghanistan as well. We want to know the key issue is, when will he leave . Will police swoop immediately and take him immediately to sweden where he faces those allegations of a sexual nature or will he be left for the time being . We also want to get to the bottom of why on earth yesterday seeing choosing now to go. Takenhe more likely to be first to sweden for Sexual Assault charges or would the u. S. Try and bring him here to face charges over leaking classified documents . I have been questioning some of the police and they say they cant really even give us an insight of whether he would be arrested the minute he walks out of the embassy behind me. I might add, it cost about 10 million for 24 hour surveillance of the Ecuadorian Embassy to ensure he would not be swooped upon if you ever did leave. But we understand that probably what would happen, he would immediately be escorted and taken and sent to sweden, first of all the faces allegations of sexual nature, Sexual Assault case that is currently been going on for some four years in sweden. Then he claims it is. The swedish law he fears, but the u. S. Law. He feels once in sweden he would be extradited to the notice its where he would face some key concerns about the documents he leaked. Bradley manning, the member of the army who gave him some of those documents, already in jail in the United States, facing some 35 years. Thanks very much for that, caroline hyde. Maybe pop into harrods and grab yourself a doughnut from the krispy kreme. Another one of our top headlines overseas in iraq, Kurdish Forces have taken control of this dam, the largest in the country, with the aid of u. S. Airstrikes. It has helped rybak the islamic isis, better known as which has been seizing ground in north iraq. For more on the battle to recapture the territory, im willem marx. What is the latest on the dam . For the longest time and there was a dispute on what is critical infrastructure, who actually is in control. Are we sure now that the peshmerga have got it . If you listen to the iraq he ministered offenses book about an hour and a half ago, he said kurdish and iraqi soldiers are now in charge of the dam. If you listen to some of the local officials here, theyre saying it is not entirely true. There are still pockets of resistance. I was watching a live feed on local kurdish tv earlier showed some of the plumes of smoke still on the far side of the dam from where they were filming. There is still some fighting. Most reports indicate these guys have quit the ground. What is the importance of this dam . Ive heard a lot of reports that a4 opens, it could flood as far as baghdad that if it were opened, it could flood as far as baghdad. I think both the u. S. And iraqi ministries over the past have conducted tests that show the ruby a substantial volume of water as far down as baghdad. It is more about the water supply to the region. Some of the forces happen upon the dam earlier today, were finding some explosive devices on the water dam that had been left by some of these militant fighters. It seems to be something everybody really cares about. Issident obama saying, this something we need to do. We need to go on the offensive against this group and drive them back from this piece of critical infrastructure. Many would say the real reason we went into iraq a decade ago was because of oil. How the oil business is being affected in that region, and kurdistan, right now . Numbers, less the than one quarter of the countrys oil comes out of this northern region. But that is still pretty significant given iraq is only behind saudi arabia as an exporter. They say in july, about 3 Million Barrels of oil came out of iraq. The majority from the south. Around seven wells in this morning kurdish region of iraq and not far from your having taken over by isis. The larger ones are still under kurdish control. That does mean some of these local operators have been peering back and pulling some other nonessential personnel out of the country. One i spoke was that it is still business as usual, trucking oil over to turkey. The thirded to sell shipment of oil, which will provide a lot of much needed funding for them given their not getting much from the Central Government in baghdad. Thank you very much, oh willem marx. Coming up, theres never been a classic car auction like this one. 350 million in sales over six days. Plus, you can make your models different than any other on the road. Cinnabon president later this hour will weigh in on mcdonalds franchise fight amid a ruling that could make it easier for employees to unionize. It is time for the bloomberg big number today. It is 152,000. The starting price of the new tricked out tesla model s, about double the price of a standard model if you get the cheapest standard model you possibly can. The ceo of corona california based automotive is known for beefing up usually american muscle cars. It marks the First Electric model the company has worked on. The front and has been upgraded to more aerodynamic shape. Celine also upgraded the drivetrain itself for quicker acceleration. The model is called the 416, im a measure because it i imagine because it generates 416 course power. This announcement can, pebble beach. A place where the wealthiest collectors in the world gather to show off their favorite vehicles as well as buy and sell them. As result, a place where records are broken for prices paid. This year, a record tally of more than 350 million in sales over just six days. Joining me now, someone who is at the event, motoring Department Specialist at bonhams , the auction house that sold the ferrari gto for more than 38 million last week. Tell me first off about the show this year. It is exciting im sure every year, but what were some of the highlights . It was a big year this year for us. It is always a big year for the collector market, a big place for the Collector Car market in general. Augustine cartmell is were the largest volume of cars trades hands ever in the world. This year was especially important with sales of the ferrari gto we had that set a world record for the most viable car ever offered at auction valuable car ever offered at auction. What is it about the ferrari 250 . It is a spectacular machine. They made only 36 of them with the three liter engine. They had prolific race history, every single one of them did incredible things. They just combined the incredible beauty of ferrari road car with the racecar. It is one of those things where it is a purposely designed machine to race and win races. As a result of the way it came out, it looks stunning. Absolutely gorgeous. And for 1954 as well, its just shockingly beautiful. It was more toward the early 1960s. They made them from 19611964 they made the 250 gto model. It was part of the 250 series they started making in the early 1950s and continued nearly to the mid1960s producing that model with a three liter v12, refining it a lot or the way. This is the perfect car to get in, drive to the race track from race and went and drive to the bar is a lot of racers did. I wonder why the 60s seems to be an error that is unbeatable and car design an era that is unbeatable and car design and at auction. Is this the heyday of car building . Nostalgia collecting has always been a pretty strong factor in the Collector Car market. If you think about 50 years ago, people who have reached their peak earning years are now retired. They have a bundle of money sitting under them. They were teenagers when this car came out or they had pictures of it on their wall. This is the car they wanted. So now theyre going out and buying them. There are ready is an increasing trend toward people spending a lot more money on cars from the 1970s, cars we really did not think people would spend as much money on. Had a lamborghini and june that sold for 1. 2 million, which bested our for 1. 8 million. The mid70s supercar. Cars even from the 1980s are doing really well. We had won an auction that sold for 1. 4 million. The last one we sold that i can remember off the top of my head sold for about one quarter of that. It really increased in value and that wasnt too long ago. Got it. Excellent talking to you. Thank you for joining us. Motoring Department Specialist coming to us from california. May fire therint next shot in the mobile wars. You are watching in the loop. Streaminglevision and online. I am matt miller. Bloomberg top headlines this hour, china says theres evidence mercedesbenz has manipulative prices for auto parts and maintenance. A number of foreign Auto Companies are being investigated in an antimonopoly probe. Among them, microsoft and qualcomm. Credit suisse has been caught up in the controversy over the collapse of portugals bingo. According to the wall street journal, Credit Suisse helped sell billions of dollars of securities that played a role in the bangs crippling losses. The journal is also reporting sprint pots new ceo is preparing to roll out new price plans for mobile customers. He took over last week. No word on what his place prince will look like, but sprint has talk, text,limited and data plane for 50 a month. We are on the markets. Scarlet fu has more. Our focus is copper. The directionast of the Global Economy. So far in 2014, copper is the worst performing base metal. For more, ken hoffman who covers metals and mining for Bloomberg Intelligence and joins us from princeton. Here withnder us. Inper has not done well 2014. It has been struggling. What does that say about the fate of the Global Economy . Copper is down about 8. 7 on the cme. Anything that is pretty good because if you look at the other Industrial Metals that people look, iron ore is down 30 . The reason for that some say is one copper has had some pretty bad markets, which was in march and again in june, the Chinese Government has stepped in, the Strategic Reserve board them and they bought about half a million tons of copper, about 3. 5 billion worth of copper. Many believe that has kept the market where it is today. The big question for traders in the second half is if we continue to see any weakness, will the Chinese Government stepped in again and keep prices high . That is been a really big question for copper and copper traders. Bring you into the conversation. What is your take on copper . I think copper for the last couple of years had a biggest collision, has been stuck between three dollars and four dollars. It is really showing the Global Economy is weaker. However, the chinese to use it as a lending vehicle. They put copper up as collateral, which is why they want to keep the prices higher. That is why when it gets down, they come into buy copper. Hink the chinese would be a lot of their loans are based on the price of copper. That is what is used to collateralize a lot of their loans. The overall economy itself looks very weak. Were not getting a lot of growth in the developing countries, which have big use for copper. I think china will try to artificially hold this price up here because of the loan value its got in their country. And i think 3 is probably a pretty good level if youre going to play to get involved in copper on the long side. Looking at it to go back to 4 level. Lets dive into how that trade might pay off. One copper contract controls 25,000 pounds of copper. So of trade makes a profit of . 10 per pound, that is two point 5,000. We think about futures and commodity futures, one that pops up. Give us an example. Andhen you look at copper how traders traded, you can basically go out every single month and buy copper contract. So i can buy for june of next year, july the year after, etc. When you take all the different points on the curve and what those vices are paying for, that is your commodity curve. If it is headed up, that is called contango. If it is headed down, that is called backwardation. There are Different Reasons for that. The is interesting with copper curve, your boat. The price is expected to rise. From three dollars . 10 a pound today after round 3. 15. Thereafter, the curve head sharply down from going down to around three dollars a pound over the next few years. That is where traders like to look at the curve, understand the market, and make their bed. Because back to what todd was saying at three dollars to four dollar range. Thank you so much. We will be back on the markets once again in 30 minutes. International travelers and Financial Markets have been rattled by the spread of the ebola virus. The often fatal disease that is spreading four countries in africa, killing over 1100 people and affecting more than 2000. The outbreak also reflects how well or how poorly the World Health Organization and Drug Companies are prepared for the spread of some diseases. To discuss this and more, im joined by dr. Ezekiel emanuel from the university of pennsylvania and a former adviser for the office of budget rahmement and budget and emanuels brother. Thank you for joining us. Lets talk about ebola first. There has been a lot of panic, i would say, about this. Does it warrant panic . This is the biggest outbreak weve seen and it has killed over 1000 people, but it doesnt seem to be spreading as quickly as may be was feared a week or two ago. We have to remember the disease is deadly. Over 50 of the people have died who have been infected that we have known. But it does not spread very easily. You need to be in contact with bodily fluids lead or urine. So it is not like the flu that can easily spread from persontoperson via air droplets. That is why it has not spread too wide. Usually, these Ebola Outbreaks just burn themselves out because it is so hard to spread. In this case, Contact Tracing has been hard because of urban air. People have been traveling and that is why it is in for countries. You have among the poorest countries in the world with very very bad health infrastructure, no masks or gloves, things that would really help reduce the spread. You also have these dead bodies being handled by family and Funeral Directors who dont really know how to handle them, therefore, contracted disease and then pass it on. One of the things people need to keep in mind is, it is very hard to spread ebola and it is not like a situation where one dates in africa in the next will be in europe or the United States. What you think about the World Health Organizations preparedness . But they madend, a fair amount of money available. Say, infficult, as you these countries with little or no infrastructure to get there and set up the facilities necessary, but how are they doing . Look, one of the big problems here is that you have not seen ebola and this part of the world. ,ou saw in congo and uganda that in west africa, it was not there. That is why it is taken many to identify this was ebola. You do have the problem of poor infrastructure. When i was in the office of management and budget, one thing we try to emphasize in the president s Global Health initiative is the importance of investing in Health Care Infrastructure and Health Systems. One of our key mantras, we need to strengthen the Health System not just focus on this disease or that disease. A strong Health System can address lots of diseases, including ones that come up unexpectedly. I think what this outbreak really emphasizes is we should stop focusing on these new saveiment all drugs as the all, because they will be. We need to work on strengthening the Health System with good facilities, things like gloves and masks and teaching people how to do those things. That will be important both for containing this outbreak and for the longterm. Will that get done in africa . That is a huge plays. That sounds like an incredibly expensive endeavor. I think we need to think about the longterm here. It is a big tragedy for the countries that are involved, but we also need to keep in mind that ebola has killed 1000 people. Africaeally diseases in diarrheal diseases kill hundreds of thousands of people. I think the focus here has to be on addressing the problem in the best way possible. Public health measures, stronger Health Systems are going to be good for the Ebola Outbreak and for the longterm you already see the whole Health System or the world really identifying this need for isolation wards and getting more people who are trained in how to implement universal crossans so dont spread this thing. So we will be good hopefully for general infrastructure in africa. What about here in the u. S. Looking for a cure, some sort of you mentioned the experiment all drugs, that maybe we should not focus on it that much. But they inevitably are going to do that. Apparently the blood of survivors will help to find that. We have a vaccine that had been in preclinical testing and they were eating at doing safety testing later they were looking at doing safety testing. We have these experimental drugs, which are basically cocktails of in a bodies antibodies that have been modified at attempting to neutralize the ebola virus. Outave been trying them into passionate use. It is very hard given the way we use them to know if they work. As i have argued, these compassionate use efforts are really very or not very productive because you give it to very welloff people. They may be survived or doubt. You dont know whether the drug is made a difference or not all stop we need to test them in Clinical Trials if were going to use them, and do so in an orderly way so we get data. So at the end of the day, we know this works or not. What is the right does. What are the side effects. I think before just passing it out to whoever happens to be important, we should really think about deploying them only in the context of a Research Trial so at the end of the day, weare much smarter for if pursue the struggle or drug and if it will work. I think we also need to be aware that these strikes, given the short supply and the fact they require big infrastructure, are not really going to solve this particular Ebola Outbreak. Youre going to stick around with us. Doctors eagle manual sticking around. We will take a look coming up, speaking of disease issues and fighting them, the rich and famous take a pledge. Buckets of ice dumped on their heads for a good cause. Plus them another shot has been fired in a takeover battle for Family Dollar. Dollar general with a new offer will bring you all the details. Stay with us on in the loop. The ice bucket challenge to raise funds for als has gone viral, obviously, im sure you have heard of it. Participants are challenged to dump a bucket of ice over their 100 to fighte the disease. No it is about taking and i see bath. Icy tim cook has done it. Also, Mark Zuckerberg from facebook doing it. Jeff bezos there is bill gates doing it. Bucketat is a serious set up he has there. That is actually an awesome video. Jeff bezos has done it as well, which surprised me. Many celebrities have doused themselves to raise awareness for the cause and a lot of normal people. The effort has helped the Als Association raise more than 13 million in less than three weeks. I am back with dr. Ezekiel emanuel from university of pennsylvania. Have you taken the ice bucket challenge . Lets get serious, im a social media. I dont do twitter. I dont instagram. I dont do facebook. Until you guys called me, i was pretty unaware. I live in a certain kind of bubble. We maybe should have challenged you to do it, but i wont put that on you. A lot of people are doing this. Im sure Mark Zuckerberg and jeff bezos can afford to donate the 100 as well. They could afford to donate that 13 million, lets be serious. It is not a heck of a lot of money, but it is more than a raised in a fundraiser last year, three times as much no, eight times as much. So theyre doing a lot better than they were. As you point out, 13 million is just a drop in the proverbial ice bucket for people like jeff bezos and Mark Zuckerberg. I dont want to pour eyes on this whole thing, but one needs to put this in context. As an example, social media and viral marketing, this is amazing. As an example of transforming by medical research and lou gehrigs disease, one needs to be a bit more hesitant and skeptical. I have some very dear, dear friends who spouts and father died of als. It is a horrible way to die. It is a disease in great need of interventions that work. But there is a long road to go. 13 million is very unlikely to be transformative. We need to put this in a much larger context. The National Institutes of health that funds a lot of basic research in this country, over 30 billion per year. So 13 lindo as is. 05 of that kind of investment. This is very unlikely to be transformative. I have to say, i am a little skeptical it is likely to raise a lot of awareness about als. People may be dumping ice buckets, but do they know with the disease is about . War will this be another case where it just sort of disappears after a few weeks and everyone has had her ice bucket moment on facebook but it is very hard to sustain. Hopefully, we can get people to read more about the disease and think about it together, sort of raising awareness as you point out. Dr. Ezekiel emanuel, thank you for joining us. We are back in two. Stay with us on in the loop. It is a decision that is shaking up the franchise food system. I donald has taught responsibility of its franchisees mcdonalds has responsibly of its franchisees of how blizzard treated. Le whatiu asked kate co she thought of the ruling. My first reaction was not with unionshe nrlb or the sei you, it is, wow, what are this for the implications of franchise law . And the implication for the likelihood that future franchisees would want to continue to grow with the business . Franchisees have very different points of view about franchisors. How large they are, how small they are. Franchising as a whole is a very interesting and dynamic world. It cant be described as just one thing. There are good and bad on both sides. It is not as if every relationship is good, by any means. There are lots of tensions there. There can be. The question is, if the employees of a franchisee are being essentially called the de facto employees of the franchise or, why would a franchisor continue to franchise . They have to go to the liability and expense and a more detailed handson management of ensuring the employees are falling under their management purview, then why bring a Small Business owner into that mix . Why not just owned opened giantlyolly owned owned corporations . That would play into the Union Argument that Companies Like mcdonalds use their franchisees as cover to escape labor laws. It is crazy. I dont think a franchisor, or one would hope, that they would not use a fundamental as this model to escape taking good care of employees who deserve to be taking care of or complying with state or federal law. Franchising is a particular Business Model that allows a prospective Small Business owner to connect with an established friend, and if fit from that guidance, not have to go to the hard work of a brand of their own, and the failure rate of starting a business on their own is significantly greater than someone joining a franchise. Intohiseors dumped it franchise to separate liability. Theres plenty of liability even as the laws stated it. They do it to expand the brand and business typically more quickly, but also for people the opportunity to be in business for themselves but not by themselves. Do you feel like your business would be in jeopardy by this decision . It could be depending upon how far it goes. This decision. Ut it is about how far the legal arms reach between the franchisor and franchisee and what are the implications of connecting the businesses. It is supposed to be, by law, disconnected. But a franchisor absolutely has to manage its franchisees to protect the brand which protects the investment of all the other franchisees. The franchisee has the right to hire their own employees, pay them what they want to pay them within the parameters of the law, and run their business. We just heard burger king pull their satisfries. Im not surprised. Why not . Im sure a lot of Research Goes into things like that come up with ultimately, at least from the cinnabon point of view, we have experienced success in sales and brand affinity with our fans because we are who we are. We are honest about being indulgent. We tell people, we are an overthetop treat. If you want to give yourself discretionary calories, do it with something that is worth it, and that is us. If we were to say, we found a recipe for a fatfree cinnabon cinnamon roll. About 10 people a day would probably come to the counter to see it will stop when they looked at it, compared to the real thing they would say, i think if im going to treat myself, im going to do it was something really worth it will sto. If youre going with lower calorie and other Market Positioning to attract l the consumer, you typically have to offset your traditional ingredients with artificial ingredients. Artificial sweeteners. You fix one problem that create another. I dont know if that is the case with the statusfrie satisfries. When i go there, im going to treat myself, not for a salad or fruit parfait. You can say that about a cinnamon bun, but people go to burger king or mcdonalds for food. It is almost in unwinnable battle for them. It is tough. In any business if you want to win with your brand, you have to be honest. You have to pick a path. It is impossible to please everyone. The high and indulgent or highquality and healthy or very fast food. Value so when you start to broaden it, i think that is a business risk. If you are running a mcdonalds, would you say, forget the zealots, only 2 of sales. , only 2 et the salads of the salads. They open up or broader potential demographic. The potential demographic, which when i gete way, but there i smell the fries and i get the fries. Mcdonalds knows that. They know i get the fries. They make the money on the fries. The salads are important. It drives awareness and consideration of a new consumers that. It is also important for them to be a good Corporate Citizen and their community. Thinking all your money to try and become a salad chain or healthy chain, that is a giant expense that probably has a lot of brand risk associated with it. That was cinnabon president withl. Coming up, up to zero now poor are at odds with money gore claims he is owed from the sale of his network. Stay with us. We are on the markets. Take a look at features. We have about 30 minutes to go until trading, up about half a percent across the board to kick off this week. It has been an incredible bulbul time incredibly volatile time. Stay with us. We are back in two minutes time. We are 30 minutes from the opening bell, you are in the loop. I am matt miller. Futures indicate stocks will be higher at the open. S p 500 coming off its biggest weekly gain in a month. China says mercedesbenz has manipulated prices for auto parts and maintenance. The chinese have also investigated microsoft and qualcomm for possible antitrust violations. Takeover battle for Family Dollar stores. Dollar general offering 9. 7 billion for beating out an earlier bid made by dollar tree. For more on Dollar General offer, i want to welcome richard farley. His firm has done a good deal of work on mergers and acquisitions. Mccracken. Jeff, i will start with you on this dollar deal. Is it going to heat up even more . Is a deal going to get done . We see these battles back and forth and it seems to take a long time. In some ways, he reminds me of the cable industry earlier this year where we had time warner cable, number two, being pursued by the number three, charter. In the end, comcast can in. Dollar general is the number one. They had laid back and let Family Dollar float along, knowing they could buy it at some point. When dollar tree come along and bought the number two, suddenly, Dollar General is interested. They had an opportunity for a long time to get the girl at the dance, if you will, never took the opportunity. It is a pretty serious did in his it is all cash. A jumped up by four dollars a share. I think it will make things difficult for dollar tree to come back. How we seen a complete turnaround to m a . Were seeing so many deals. Not all are getting done lately. There are real premiums being offered. The animal spirit seems to return, which is good for all of us to make our livelihood from transactions and deal activity. None of the other big ones have come to fruition yet. Time warner and some of the phone transactions. This thingwatch closely because we have a vested interest, are excited when this sort of activity happens. Despite the volatility and disruption in the markets in the past two or three weeks, i think the market is receptive to these types of transactions. None of the big ones have been finished. Is that a problem . How do you see the spinning out . Why is that . I would dispute the notion that none of them are getting done. At t is buying directv. Comcast is buying time warner. Rupert did not get his deal done with time warner. His reputations, of being aggressive has worked against him. On, thet we pick up animal spirits are alive and well. There are large of dust a lot of large transactions in the pipeline. Regulators, could that be an issue . Is antitrust a concern in this deal with Family Dollar . I have a look at this deal specifically. And every transaction, it is an issue. You would think this has been pretty well vetted at this point. It is not like these are the only three lowend retailers out there. And andcompetes at this a lot of other smaller retailers also that compete. If your dollar tree, the number three, there is an opportunity to pick off thousands of other stores. It seems to me there are a lot of other competitions. Onlines thinking maybe retailers as well. That is how you define the market as well amazon, the ultimate discount retailer. That is a great point. A lot of times you see people crying antitrust when it comes to brickandmortar takeovers but the truth is, so much of the market has moved online that you really cannot be as concerned about that. People just dont go to brickandmortar stores that often anymore. I guess for food, you really have to list your ordering fresh direct. Dollar general has been looking at Family Dollar for a long time, even before dollar tree come along. They considered or anticipated they might go after them someday. I think they felt pretty confident they can get a deal through. Ors is an area like Telecom Media where there is a lot of scrutiny. 10 million deal. Jeff mccracken, thank you. Richard, youre going to stay with us here on in the loop. Jacksoneet probe said hole is the event of the week for investors. Maybe the event of the fall. Michael mckee says it depends on what janet yellen decides. For years, jackson hole was an academic exercise. For markets, largely, it is the margins. That all changed after qe. For three years in a row, boomer nagy used the keynote address out there to lay out big policy ben bernanke use the keynote address out there to lay out the policy announcements. Janet yellen was there but did not make any speeches. We dont know which she will take this year. What is most likely . A lot of people on wall street are expecting some policy talk. The speech title is labor markets and she is tied Monetary Policy tightly to labor market developments. I know the Kansas City Fed people would like to get back to the old days when the focus was on a symposium and not the speech. It is not clear what she could say that is really new. What would she say if she did . You can rollout any policy change. That is locked in. To maybe shents gives an update on her labor market dashboard and put that in the context of the papers that will be delivered there. She has focused a lot on parttime employment, how it has elevated. A good story on bloomberg. Com today on that. Longtermill above average, percentage of all workers who could find only parttime work because of the economy and the percentage of parttime workers who can fill much higher than the decades before the recession. Also the longterm Unemployed People who have gone a half euro more without being able to find a new job. Also coming down, although that decline stalled in july. The big focus for janet yellen and others has been wages rising. I just finished talking with pimco and he says, she may say, we are going to let wages run a little hotter than emac otherwise expect then you might otherwise expect. One prediction, at least. I will believe that when i see it. Mike mckee, thank you for that, economics editor. Richard farley, youre going to stay with us. I saw you nodding your head a little bit or shaking your head. All of the symposiums and papers and every thing for public consumption is nice. What the fed has to do, do leverage the Balance Sheet do leverage the Balance Sheet. Is the elephant that janet yellen is to wrestle. That is what shes doing. That is her plan. It doesnt look like shes going to change that. What i find interesting, it is possible she could let wages inflation got a little hot. I have not seen any wage we are a long way from wage inflation. The only way he could inflation is by people going to work and production increasing. Right now we have a huge debt fueled economy and the fed is tapped out. She needs to de leverage the Balance Sheet. And production increased so much and one point two in a financial crisis that i wonder if he can increase anymore. Richard farley will stay with us. M a lawyer for Paul Hastings, democratic fundraiser. Coming up, former Vice President al gore goes to court, suing the company that bought his tv channel al jazeera. A challenger to Action Sports camera gopro, what polaroid has come up with. Stay with us in the loop. Al gore has to the Al Jazeera Network for fraud and breach of contract, claiming the satellite news provider owes him and his partner 65 million from the deal to buy his Network Current tv. He claims the family that owns the network oh he and his partner that much money in escrow funds tied to the deal. For more, i want to bring back Paul Hastings and richard farley. It is an interesting story for for the both called al first game, but i find the whole story of al jazeera fascinating. I was actually watching it last night. I think was a very welldone program. I dont see how the American Public is going to start watching this network. That is not the point in any case. What is the deal . We dont know a lot because last time i checked the complaint, it was still sealed, which is not unusual. That is done in cases for a variety of reasons. One is the information, the complaint may be subject to a confidentiality undertaking. Al gore doesnt what to breach that, so hes being careful. The other thing is, you may want to appear to be reasonable to the judge and say, we want to be commercial and not taint anybody with a tar brush, just get this resolved. The other, and may well be the case, this is one more ratcheting up of the intensity of the negotiations to come to a settlement. Once you hear all the dirty laundry, that creates less incentive for some to say, let me settle before the genesis of this dispute comes out in the public domain. It sounds like a runofthemill m a dispute. Normally, these moneys and askaris to backstop the warranties made for the sale or there could be some kind of a it performs x,if y, or z i will get more money for this sale. We just dont know the details. If it doesnt settle, we will certainly know. It was a big enough deal to begin with. The number was a bit of a surprise to everyone. 500 million . In a neighborhood. Should you do click, if youre al jazeera and you want to get on all the cable networks, youre going to have to pay a premium. I think that was the strategy. There were not buying current tv to use the program they were buying pipes, so to speak. They have done that. Theyre in tens of millions of homes across the country. And theyre buying talent and take in this endeavor to get some penetration in the u. S. Very seriously. Although it is called al jazeera and it has the arabic letters scrolling run the bottom lefthand corner, that has to be offputting, especially for red state americans, even if it has nothing to do with any kind of terrorist organization. It has got to be a hard sell. Bbc has their letters down there with. You cant use your indigenous letters . Im just thinking of the Japanese News Agency bought u. S. Channel and decided to make an American News network, would they still have japanese characters . Im assuming, and i kind of know what youre referring to, im assuming that is their logo. And maybe for branding purposes i dont know, changing the logo becomes that they need to figure out. I dont know. Obviously, if you raise it, it is an issue. It is fascinating. It is a fascinating story. I watched american tonight and it is a pretty fascinating show. It does stray from bloomberg. Joining uso much for this morning. We appreciate you swinging by. Coming up, teenage mutant ninja theles are kicking butt at box office, shockingly, to reconsider roe. Another summer block buster falling short. If youre considering having children, you may want to listen to the story. According to a government study, middle income familys cost to raise a child is on the rise. For child born last year to age 18 it is estimated it will run 250,000, i assumed that is if youre clipping coupons. Nearly 2 increase from the previous year. Married and expecting her first child, our guests. I guess they have looked into this. 250,000, seems like youre getting off easy, to me. Is that just because i am here in new york where things are a lot more expensive . If youre in new york, you will pay much more. 225,000 for 18 years, for middle income family. Just to be clear, we are not including College Costs because it is only until age 18. What is the biggest spend . Im assuming schooling is the biggest cost. Youre making a key point. Were dealing with a nationwide average of 240 5,000 year through age 17. It doesnt include college or Government Programs or contributions from relatives. What it does do is it takes a look at the different factors, which amazingly, housing has remained a largest factor for about the last 50 years. It is about 30 of the income. What we have seen rise in the last two decades has been child care and education costs. Inot of that has been a rise two income families. Ins rising and home lieu of home cost. I dont have children of my own, but i have raised a young rottweiler. To 15,000 is0 about what i was putting out for him the first couple years of his life. The most expensive word. Walkers and vet bills and the like. Childcare has to be huge when if you have a baby, right . Are both of parents working. See have to have someone thing after the little kid. Exactly. Both parents are working, especially in the city and theres no family to look after the child. They have to pay for child care. That is the secondlargest cost after housing. Isand lower income, food number two. And food is getting more and more expensive. People who say theres no inflation dont buy bacon and milk. Health care costs, for this country, their rising at an unbelievable pace. This is the same for children . A small piece of good news, Health Care Costs are rising, but not as fast as it used to in the past years. All right, thank you so much for joining us. You can check out their story on this on bloomberg. Com. Were just minutes away from the opening bell. We have the top 10 traits you wont want to miss right after this break. We are back in the loop. I am matt miller. We are on the markets. Heres the latest on futures in the final moments. The final exciting moments before the opening bell. Still looking at gains of more than half a percent on the indexes across the board. Theyre easy crude down 1 . Wit a pretty good week last week. They be we will kick off this week with a solid monday. Were back on the markets in 30 minutes. Marketse always on the because this is Financial News television and that is what we cover. Lets get the top 10. These are the only stories you need to know about today. Numberkick it off with 10. Credit suisse. The company has been caught up in the controversy over the classic portugal. Credit suisse helped sell billions of dollars of securities that played a key role in the banks crippling loss according to the wall street journal. Number 9, 20 First Century fox. Increasing production of local in which shows in foreign markets. It is part of an effort to boost International Profit past 1 billion. Semiconductors, shares falling in the premarket after the company was downgraded to sell from neutral by goldman sachs. The firm expects estimates to move lower due to cyclical headwinds and also said difficult with growth and handsets. And actual sales. Performer, not underweight. Number seven, tesla shares higher after saleen automotive has begun accepting orders for its first highperformance version of the model s. Price tag can get as high as 200,000. If you go on the cheap, 150,000. Still more than what tesla charges. Number six, sprint. The companys new ceo preparing to rollout new price plans for mobile customers according to the wall street journal. No word on what they will look like but sprint has tested an unlimited talk, text, data plan for 50 a month. Are you a buyer . Maybe. If they have decent coverage. That is why they need a big deal so that money to invest in a for structure. Number five thomas Seaworld Entertainment hitting a boost after Credit Suisse initiated coverage on the stock with an outperform rating singh shares are likely your bottom after suffering very negative publicity from the blackfish documentary and disappointing overall results. Dont you worry about the killer whales that are kept in cages . I do. Seaworld entertainment said theyre going to come up with new fish pins. Looking to give carmax a run stores money, echo park will directly compete with a usedcar retailer and are part of a larger 350 lindo wing essman to revamp how it sells its cars. The used car market is huge. By subprime lending, actually. Lets go to number three, Monster Energy drinks. Jeffries is downgrading it to a buy. Jeffries has downgraded it. Exploration of oil off the coast of australia could be one of the world and one of the countrys largest Oil Discoveries in decades. [closing bell] you dont have to hurry. I dont feel constrained by the issues likely opening on the closing bell. I worked on the New York Stock Exchange for a time. They start work long before the opening bell and they continue long after the closing bell. Dollar general plans to pay 7,850 78 and . 50 per share. Lets bring in jonathan colin, u. S. Market strategist. He says consensus estimates are on the rise, making stocks even more appealing right now. Is it fair to say you are a raging bull . I dont know about a raging bull, but i think we will continue to see stocks do well for the next couple of years. I saw you when i come it came in this morning, and there was so much concern, so much worry over the 2 pullback that we saw over last week or the week before. Everyone says im excepting expecting a correction. But when it happens, they just freak out. But that is true, but the more important as had a 1000 calendar days without it pullback. And everyone says, oconnell my god, youre going to have one. But when you have historically low volatility like we have, you could go longer. We went 1600 days in the 1990s. When you have low volume, markets dont pullback as you think. Almost everyone agrees that weve had some blowout numbers when it comes to earnings per share. The gross was 9. 9 yearoveryear when the estimate was 6 . Sales growth also grew. Sales growth is going to come down according to this chart, and the coming quarters. Is this too pessimistic echo i do think so. If you look at the economic forecast, which is roughly 3 of gdp starting now through the end of 15, we should see sales growth 1 to 2 higher in the next year. And more importantly, analysts by the story. Analysts have started high and wretched their numbers down. Since april, analysts have been raising their numbers for all 14, all all of 2014, all of 2015, all of 2016. Jonathan over at barclays is kind of arguing the opposite this morning. He said its been so long of having earnings and the topline growth. How much can shares rise thanks to buy backs and cost cuts . He is saying we have had five years of a 17 and we will go back to the historical normal. You are asking several questions. Arst, when you look at fiveyear, 17 number, you get ridiculously huge Earnings Growth numbers off of a low bottom at the end of it at the end of the financial crisis. You have to try what you had in 2009 and 2010 and look at the last three years. The last three years have been really weak. Youre talking 4 , five percent, 6 Earnings Growth or even weaker. In a high numbers singledigit doesnt sound so heroic, but it should be enough to push the market higher. The second issue is, cost of capital. If you look at what the yields are on bonds and with the p is on stocks, what the p e is on stocks, stocks look incredibly terrible. I think the valuation should be much higher than they are. Is the only game in town. Whature concerned about is going on and the economies overseas as far as their equity markets are concerned, youre getting paid nothing over there and bonds, and very little here. The only choice the size the mattress is equities. I82 overly simplify it, but that is basically what it is. I hate to overly simplify it, but that is basically what it is. Tell me what the discount rate is on a companys cash flows and show me what the valuation of the stock is and you can drive a truck between the two. Stocks are just too cheap. They are just too cheap. We are facing a record headwind against the s p. Increase in George Soross hedging on against the s p 500. But that is very good. If you get, for example, a ton of shortsellers in a stock or people hedging of against the market, that is a cushioning tissue do have a correction. But as we were talking about before, the fact that we have gone so long without a pullback, angst im feeling over 4 we pullback 4 off the peak planets as if there was a disaster going on. Now look at where the market is opening. We are about 1 off the peak and the level of thanks just not make sense to me. Is the pullback over the rest of the year . Green flags from here on out until the Midterm Election . Wei dont know whether retrace 1 or 2 , but if you d will you be between 3 will we be between 3 5 but in of the year, yes. More importantly, between 5 and a year, yes. What are your thoughts on dividend . This goes back to the point of what is driving up shell yields. Almost five this is in the Second Quarter yearoveryear. High dividend stocks, particularly utilities, but even in general, they will stay low if her Interest Rates stay. I think they will rise, but very, very slowly. You want to be in banks and more cyclical companies, industrials, things like that. Only if you have Interest Rates fall further do you want to be in dividend payers. A little bit of insight from jonathan golub. Thank you for joining us. Coming up, go pro has some competition. We will talk about the competition with the ceo of one of those companies, polaroid, about how the company reinvented the camera and it is taking on the leader of the action camera market. They look pretty cool. Challenge ice bucket has gathered huge attention, pulling in about 13 million in three weeks for als. It has been a marketing success. It is something Erik Schatzker has been watching. And participating in. But i cannot believe you did that. Why not . It was for a good cause. I suppose that is true. But if you just gave them money wouldnt that be i did that, too. Here it is. How did that happen . Who challenged you . How did it work out . Who filmed it . Tell me the details. That is my friend, and jerry qb, who was been on Bloomberg Television a few times. He networks at blackrock. The challenge is, as many people know, you get up bucket of ice water dumped over your head, or dump it your, self. Or make a 100 donation or more. I chose to do both. Ice to get dump this donationnd i did the this morning. I think a bucket of smirnov would be better. [laughs] the point is, it has gone viral and it shows youre ways to raise money for charitable causes and there are ways to raise money for turbo causes that go beyond the conventional. That is what we are talking about this morning. Is this a concept that others should embrace . This ice bucket challenge has been used before in britain and new zealand. The idea that you can draw attention to your self by crafting a campaign that has this viral potential on social media. Like the thing is, this happened just by chance, right . Absolutely. Can a charity think of something that will hit this big echo this big . Like that is the question. We are putting into thomas consumer come up the Public Relations director at one of the largest Public Relations firms in this country. Can it be more deliberate . Possibly even contrived . We hope so, for the good of charities around the world. 15 million as of this morning. Can you believe it . I wish them well. This is lou gehrigs disease. But for those who do not know what als is, yes, its a neurological disorder. 13 million is great. 15 million its not a heck of a lot of money, but he hopes it raises awareness. Healed people go and rate and read about lou gehrigs disease. Identifiable disease. Lou gehrig forced the horse out thehe game, out of pinstripes for the new york yankees. It is a herbal disease. You can see more about this on Market Makers at 10 00. The eus justice chief says google is milking a union court ruling that creates the right for users to be forgotten. He said google was exaggerating its results. Results,emove search people been asking them to take them down, they have been doing this to some extent. Nintendo jumped into tokyo trading. The company also said a new online Pokemon Trading Card will be released as an application for the ipad. An app, we call that. And teenage mutant Ninja Turtles lead movie ticket sales for a second straight weekend. The michael bay film, featuring megan fox, brought in 28. 4 million in the u. S. And canada. Disneys guardians of the galaxy held onto second place again with 24. 7 million. And whether you want to capture what its like to ride a wave or a free fall to the earth, the google pro has been the goto choice the go pro has been the goto choice for cameras. I even took one myself. I did not realize we were going to do dig up this video. It is not exactly an extreme sport, but you get the idea. A new player threatens to unseat the camera action king. I may soon be wearing that one. The polaroid cube undercuts the giant on price, and you could argue, on design. Ceore joined by polaroid scott hardy from minneapolis. Thanks for joining us. You have, i must say, a much better looking cubeish camera. You an advantage over the go pro, which has had such huge success in this market . If you look at the design, we uniquebring a fresh, perspective to the product. It is 35 millimeters square, which 35 millimeters was the classic camera format for analog photography for decades. We want to have some unique design attributes put into the product specifically, and to engineer and design something that is this tiny and the small is truly unique. We dont think its just about going after more of the extreme sports enthusiast, but really going after the broader demographic and taking this category and growing the pie, if you will, by thinking more of a lifestyle action camera, as opposed to something you only do with extreme sports. What about the quality . Or i think of polaroid as the company that made those cameras we loved to use as kids. Its so great when someone finds one of busted out at a party. Pictures. Viewable they come out instantly. What about the quality of this, which is arguably new technology for the company . This camera actually shoots in 1080 p full High Definition video. It has a 124 degree wideangle lens. It actually takes a six megapixel digital still image if you want to capture that. The quality is great. You are shooting in full High Definition. Having a really about lower price point at 99. It makes it much more affordable. You push a button and you go. To use, which is what the lord has always stood for, fun, easy to use, instant sharing. Alwayshat polaroid has stood for, fun, easy to use, instant sharing. What about accessories . You have to have a wide range of accessories come and we do. We have everything from a helmet mount, a suction cup mount, bike mount. It has a magnet built into the actual product, which you can magnetize and stick to a surface. Durable as the subject mount, for example, but for everyday use the suction mount, for example, but for everyday use it works. Monkey head even a where it sits on a shelf on the head of a monkey. Accessories are key. I will buy anything having to do with monkeys. Already inthem stores . It will be available this fall. In september slice september october to time frame. For 99, its a Great Holiday value. Thank you so much, scott from minneapolis. The only female executive to make it to the top earner list of the nikkei to 25 last year is the president of Sony Corporation america. Time now for global outlook. For the first time in eight months, prices of homes dropped in much of china. Survey prices showed prices fell in 50 of the 70s surveyed cities last month. Cities lastrveyed month. And only one female made the top earners list in the japan nikkei to 25 last year. She lives in new york and lives in america. That does it for today. Legos joinse ceo of us in new york. That is at 8 00 a. M. Eastern on in the loop. It is 56 past the hour. That means Bloomberg Television is on the market. Im scarlet fu. Lets get you caught up on how european stocks are trading. We begin there with the stoxx 600 up more than 1 , building on last weeks 1. 5 advance. We are also watching the british pound rising at a fourmonth low against the dollar. Mark carney, the governor of the bank of england has said that an expectation of recovery in wages could prompt an Interest Rate increased. He has been waffling back and forth and his comments has caused have caused some turmoil in markets. And brent crude is down almost 2 as Kurdish Forces seized control of iraqs largest dam. A critical move for that group. And u. S. Markets, in terms of how stocks are trading here on wall street, some gains. The s p 500 adding more than. 6 . A homebuilder conference result is out at the top of the hour. Forrofit growth of over 17 the last five years, but barclays and others see that changing, forecasting the index only advance 1 between the rest of this year and next. We are taking a look at all of this. Are we looking at a sea change potentially . 500 is coming up and it comes down to companies exhausting all of their options. We have seen expansions and ive asked, things that are artificially inflating earnings. Things that are running their course and valuations are a bit overstretched. People are thinking it may not be time for a correction, but a bit of a slowdown. Lexis Profit Growth of almost 9 in the Second Quarter yearoveryear and sales growth of about 5 , has that peak . Is that what you are hearing . People are thinking that the valuations as stretched as they jobs,nd Companies Cutting they are on their last legs in terms of things that will expand margins. Once that is reinforced, people will be looking for Earnings Growth as well. Having said that, many people have come out and warned that things will be dire for a long time and it has not exactly panned out. That is true. In the beginning of 2010, there were calls for the end of the bull market, and in 2013 as well. And in both of those years we saw doubledigit returns in the smb. It is kind of a boy cried wolf situation. In the s p. It is kind of a boy cried wolf situation. There will be a raising of the Interest Rate theoretically at some point next year and i will put him down pressure on the stock market. Anytime we see anything from the Federal Reserve hinting at that, we see a reaction in the market. And there are clinical concerns in the ukraine and middle east. That has also stirred reaction from investors. And you are seeing investors buying protection. Tell us about that. Bank of america did a survey of a bunch of money managers. They manage about 600 billion. They are buying Downside Protection at the highest rate since 2008. Eople are wary of valuation they dont want to be the last out the door if the market starts going the wrong direction. Calls every 100 bullish on the cboe, money has changed hands. That is the most since 2013. We are on the market again in 30 minutes. Market makers is next. Plex live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Dollar stores,n two of the biggest players in the industry are bidding in a bidding war for Family Dollar. And Mark Zuckerberg is just one of the big names to take the ice bucket challenge. And sticker shock. The real cost of raising your kids. Good monday morning, everybody. This is Market Makers on Bloomberg Television.