Earnings and we are seeing mixed trading right now. The dow down just about. 10 . Up. S p 500 is the nasdaq up the most by about. 25 . The market near alltime highs. Earnings driving movement and speculation from traders there might be some central banks. I want to show you the state of the health. We are seeing a bit of a creep with the green going ahead just in the last 15 minutes or so. Industrials and health care into the green. Telecoms have been the biggest laggard in most of the day down. 6 . In terms of earnings, ford right coming in with Second Quarter that missed estimates and down by nearly 9 . The company is warning that the u. S. Auto market is stalling out after six years of annual growth. Facebook rising. Mastercard also secondquarter earnings beating estimates there. Upare seeing mastercard right now. 2. 2 . Big move in currencies and commodities as well. It definitely easing off but its pulling back. Just about at the flatline right now against the gauge of about 10 million peers. U. S. Currency headed toward its biggest twoday slide. This as the fed did know some improvement in the economy. Lets get a check of the headlines on the bloomberg first world news. Mark Hillary Clinton is ready theake history tonight for fourth and final night of the nationalcratic convention. The former u. S. Secretary of state will become the first woman in American History to accept the president ial nomination of a Major Political party. She will entered be introduced by daughter chelsea. Speaking tonight, retired general john allen and senator sharon brown of ohio. Mrs. Clintons leading trumpet in the battleground state of pennsylvania. Clinton maintains that lead even when libertarian gary johnson and jill stein are included. Clinton leads with 46 . Vice President Biden in u. S. Attorney general Loretta Lynch louisiana at this hour attending a vigil in honor of the three lawenforcement officers killed by a lone gunman outside a Convenience Store earlier this month. Morris johnson made his First Official visit to paris as the new British Foreign secretary. He met with his french on thepart for talks fight against extremism. Johnson surprised supporters by speaking. Global news 24 hours a day powered by ivan 2600 journalists and analysts. Im mark crumpton. This is bloomberg. The feds left Interest Rates unchanged yesterday. The s p 500 has fluctuating today. Tooke u. S. Treasury yield a fall after yesterdays central bank announcement. It has been about 24 hours since we got this but let me ask you the most material words have diminished. What is your sense of this statement . I think they are getting a bit more optimistic but arent there yet in terms of saying we are ready for the race hike. Impact willeconomic play out over time. They are cautious about how much the dollar may move. They are probably wondering what the bank of japan will do as we all are so i think they are getting ready to hike rates but they are not there yet. Is their potential with the economy . I just mentioned how we get the gdp data but the Energy States where the once dragging it down. Otherwise, we are fine. Things are moving in the right direction. We have Unemployment Rate moving down. They had a sentence in there about the slack diminishing or something close to that. Wages starting to pick up. All looks pretty bright but we have been here before. We have had these upturn give way to downturn. Global economy is still very soft so i think they want to be absolutely sure the economy is ready for another rate hike. Be more of course. As you hear those speeches, what will you be listening for . That will be really important speech because it comes right before the september meeting. That, i will be watching James Bullard who had this miraculous conversion. Im interested to see if there are other fed voters who have this direction in terms of a longterm prospect for the economy. The to attend spread. Does it continue to get dragged further lower by european yields . Does the curve invert . I dont know about conversions. But we do think it will continue to flatten. In a world where the nearest rate is 50 italy and that is the low u. S. Rates. Its really hard for long rates to move. Right before the rate hike in december, they ticked up to about 100 basis points. Could drag up the long end of bit but probably not a whole lot. You will be looking at the dollar as well, i imagine. Last time when the dollar appreciated ahead of the rate hike, we saw that really tight in financial conditions. They can tolerate a modest up move but i dont think they will see anything close to that gained we saw in 2015. , thatthink the core bonds should comprise most of the portfolio. You get the maximum return per unit of risk. If you are worried about inflation, you can add some tips. They are not priced for a big uptick in inflation. Right now, the breakeven rates are below 2 . Kind of cautious on nonu. S. Ectors and dollar denominated international bonds, theres not much compelling reason there. David you mention the bank of japan meeting taking place one never knows. I know the market is expecting a on thegood package fiscal and monetary side. We will wait and see. David coming up, oracle agrees to buy the firm for 9. 3 billion. What it could for oracles chip to the cloud. David this is bloomberg markets. Vonnie oracle buying netsuite for 109 a share. Weeksmium over next closing price. Its one of oracles biggest acquisition and steps up competition. For more, we are joined by cory johnson. Many questions i could begin with. Im curious about the sales force. Salesforcebe no a behind netsuite or the other way around . it is the most legendary seal team in the history of technology so those people will be out there pushing the product. The deal will be created in the first year. Surely they have seen the opportunity for a lot of growth. As you gauge the simpatico of these two companies, you have to acknowledge they know each other well. Yes. These companies are very much and in glove. I very thought the company did an outstanding job of aching sure the corporate issues are. This deal. Ure in this deal. They are asking that the majority of shareholders vote for this deal. They have get it got to get a majority of the shareholders that remove a lot of those problems. The stock goes up more than 20 the last couple days. I think was interesting is you had a number of acquisitions from Software Companies and private equity firms. You have a lot of interesting consolidation here. I think its worth looking at. This is another similar business where microsoft is looking at linkedin saying we can architect mightre around this that be similar. I think its important to look at these to salesforce. I also think its important to look at the size of the customers. Netsuite has a lot of Small Businesses running their operations on netsuite and that is different from the giant corporations that attend oracle. You listen to mark speak at the Conference Event and its a time ordered practice for him to. Ake known the salesforce should salesforce be worried at all . I think everyone in the sector should be worried about everyone else in the sector. I think customers are showing they want to operate in the cloud. Heres a lot of criticism it makes for entertaining journalism but customers are wanting stability to not have to buy software and not have two in three years appointments that would cost hundreds of millions of dollars and take many years and thousands of consultants to do. They want a software thats easy to use and quick to download. I know if you businesses running netsuite. Who are the other dominant areas in the field and what will give them the competitive advantage . Answer a different question, which is to say i think was interesting what oracle is doing is they are going after niche is right now. Netsuite has a broad range but what a lot of their other acquisitions have shown is them going after a special Cloud Solution and i think we will see more of that Going Forward where we have companies that built around iraq testing. I think those companies are more attractive than big cloud layers as they want to broaden their portfolio. Vonnie we are lucky to have you here in new york. I wonder in san francisco, what is the sense of dealmaking in the tech sector . Do we see it picking up steam more and more . Fix its an interesting time. Growth,weve had this these companies raising lots of money, billions of dollars of rough and companies. We havent had many venture backed ipos this year. Riches, the exit plan for a lot of these companies is murky now. A lot of people dont know how they are going to get out. We were just talking to the groupon ceo about all those companies that just went the way of groupon. David thank you. Cory johnson joining us here in new york. Shares of astrazeneca on the rise today. Speculation it could be a takeover target. Ceo told astrazeneca plans to boost sales to as much as 41 lien dollars, easing investor concerns about the drugmaker pipeline. Shareholders have signaled they favor anheuserbusch takeover. The board will meet in the coming days to vote on whether it supports the deal. Are said to be among those prepared to back the offer. Vonnie mastercard post a profit that beat estimates. The firm is investing in new technology. And that is your Bloomberg Business flash update. ,avid still ahead caterpillar just lowered its fullyear guidance this week in todays options insight. Prepare to protect yourself from any potential downside. Vonnie this is bloomberg markets. David its time for options insight. Joining me for todays opons insight is tim victim, lead option strategist at delta in he joins me from cboe chicago. Im looking at the markets now and it looks like we are on track for another mixed flows. Close. Do you think this is a hangover effect from the policy meeting yesterday . There was no prize that there was no rate hike. Has been a hangover for the past week and a half. We have been mired in this low volume trading range. No one really wanting to take it out convincingly to alltime highs but no selloff on the other side of that. Today provided a perfect microcosm of that. Atlanta fed came out in low word gdp. Then the chatter about the boj coming out with the bigger stimulus overnight rallied that market. Kind of that tradeoff at these levels. Lets talk about industrials. The industrial sector for the s p is up eight year to date. It has been returned to Short Interest so what is going on here . More importantly, implied lowestity is at the level of the year, which indicates no one selling off that level of complacency. Payout ratio on that dividend is well over 100 . And the Business Model is a lot of its tied to oil poking toward 41. That divergence between the normal correlation between can and oil is taken down so im taking a guarded position. The fact that we are at valuation. Just need about a 1 pullback to get these things moving. Walk us through your trade. It is going on for the regular august monthly premium. Just looking for a pullback on the stock. Thank you very much. The focus shifts to the boj after yesterdays fed meeting. This is bloomberg. Vonnie lets begin with a check on the headlines. More Chelsea ClintonTakes Center Stage tonight, introducing her mother hillary who is set to take her place in history as the first female nominee of a major american party. Chelsea explained what she wants people to know about her mother. Im going to talk as her daughter. Im an only child so its a have and ition i feel that people understand even why i love her and admire her so much. A Chelsea Clinton said she would be willing to meet with to friend ivanka trump discuss the tones of their parents campaigns. Have told foxnews i guess i take it a little personally but you cant let it get you down the interim released trump called russian president Vladimir Putin a better leader than president obama because obama is not a good leader, hes doing a better job than obama. Newt gingrich heading back to fox news. He will return to his role as a contributor on august 1. The former House Speaker cut ties to the network while being considered as a possible running mate for donald trump. Turmoil in turkey raising concerns about operations of the coalition. That according to a senior u. S. Military official. Joseph vogel says the crackdown will have an effect on u. S. Efforts. The coalition is dependent on turkey for basing resources. And a board has approved a to buildsial project britains new Nuclear Power plant in more than 20 years. The companys board voted earlier today give its ceo the mandate to find contracts to build two Nuclear Reactors in the u. K. The decision dismisses concerns that construction will impose financial strains on a state run utility. Global news 24 hours a day powered by 2600 journalists in more than 120 countries. Back to you. Scarlet we will check in live at the nasdaq with abigail doolittle. Aboutay has been all gains up and down. The nasdaq is up ever so slightly. Face for its third day in gains if the index can hold on. When we started the day, we aboutt it would be all facebook. Facebook posted a monster quarter, beating across the board at that rally has cd. Now up a little more than 1 . Facebook leading now, apple. This could reflect the quarter apple recently did report but another Company Reported yesterday after the close. It looks like raising the guidance came on the possibility of a strong iphone seven straight cycle. Investors may be taking up apple on that data. Higher, the is biggest point boost for the nasdaq. Investors adjusted earnings on 29. 6 billion in revenue. Services to watch, the revenue number. Investors are looking for 2. 79 alien dollars. Investors and analysts will be watching margins. Prime membership growth and we do have my compactor saying it butikely amazon will beat its interesting. This has been a company interesting around its quarterly reports, and the yet over the last two years, amazon is up more than 130 . Facebook has beaten the nine out of the last nine quarters. On the year, facebook is the winner of the stocks, up about 19 on the year. Amanda another big company reporting after the bell. This has been all over the map. Investors areus looking for eight dollars and three cents. Alphabet has been pretty inconsistent with quarterly reports, missing five and of the last eight quarterly reports. Bloomberg intelligence saying the first you want to look at the guidance on the cloud. Second, alphabet has been ofking about the second half this year could be somewhat tough relative to earnings in revenue. We will know more soon. Amanda we will have those numbers for you as soon as a cross on bloomberg. Joe the yen is Holding Steady ahead of expectations of from the further stimulus. As the yen gets weaker, so do bond prices. Boj is crucial for determining demand for u. S. Bonds. Joining us now, chief income strategist. Thank you for joining us. Is the boj that important that it will have ramifications across classes across the globe . I cant say necessarily around the globe but certainly since the june. , 24 brexit vote, the marginal buyer of treasuries has been an overseas investor. The outcome is ultimately the same. Thecorrelation between tenyear treasury features has been remarkably strong. Weve also got the bank of england next week. That bankeculation might move to corporate bond. Can you comment on whether that is a light we scenario . I think we will see incremental moves before we get those larger moves. There are certainly some initial indicators to suggest Economic Conditions are weakening since the brexit vote. There is such a huge range of tools available. Scarlet has the boj lost its ability to surprise . Is that a longer it will it can use because there were a couple surprises and the boj has declined to do anything when investors anticipated a big move. Are speaking most recently as of january when japan announced negative Interest Rate policy on a small slice of excess or of her reserves. In april when many investors were expecting deeper negative Interest Rate policy. Thisd the expectations time around, expectations are much steeper. A very high likelihood including some driven by news reports that along with policy comes fiscal expansion. Want to go on to this point of helicopter money combined monetary easing and fiscal expansion. What i find striking is its not like theres a lack of demand for government bonds. Theres an extraordinary amount of bonds. Why do we need helicopter money . Why not just the fiscal expansion part . Issuingheory goes that bonds is sort of a temporary measure where is increasing the money supply since money is a countries equity is a permanent, perpetual measure of stimulus. When you are trying to stimulate inflation in a forever timeframe, it requires issuing a perpetual security to create that degree of inflation. What kind of position are you recommending for Company Assets as we head into this meeting . How do you position yourself Going Forward . What we are recommending is investors remain tactical right now. If we do get a positive expansion from the boj overnight, we expect the yen to fall love significantly. We probably see that as a big buying opportunity but if we get up above the 165 area, that would be a strong shortterm buying opportunity. Next, market Field Asset Management tells us why they favor the commodity market but shies away from energy. Scarlet this is bloomberg markets. Its time for the Bloomberg Business flash. Bb t says it will cut jobs and that Securities Unit by scaling back University Equity scales. The banks ending Equity Research coverage. It did not disclose the number of jobs cut. The Richmond Times dispatch reported 61 employees would be cut. Wasng demand for lori l offset by worsening conditions in france. Theyre facing a slowdown in hong kong in latin america and looking to make acquisitions in rollout more impressed products. World wrestling entertainment has about 1. 5 million wrestlemania x signed up for its online package. The figure represents average prescribers for the Second Quarter. Its slightly exceeded the forecast and is up 25 from a year ago. And that is your business flash up. On thers await data strength of the u. S. Economy. Should you be allocating your portfolio . Our next guest sees commodities coming off of fiveyear bear markets. Ceo and Founding Partner at market shields asset management. Lets talk with the appeal emerging markets. What is driving the move in that direction . Its the only place where there is a significant deal left on the planet. Big beneficiaries of the chaos. F brexit in that final plunge that is important because its stabilized emergingmarket currencies. Currencies have held in against the dollar and in most cases, depreciated. Guess what i mean is the yield differential was always there but they are a riskier market. Is this a shift in appetite for risk we are seeing . I think its frustration with negative yields. I think its become very difficult for a lot of fixed income investors to navigate Going Forward. I think there is a realization that its still reasonably positive. On the equity side compared with the s p 500, the emerging markets underperformance may appear to be an Inflection Point and may be ending. Have risks dissipated or are they just less so . They appear diminished because of the increased risk profile of the development . Part of it is the currency story. The fiveyear bear market was rough and 50 . The stabilization of currencies is actually very important but i do think risks had to an extent dissipated. I do think people are concerned about the risk from china. I think people were concerned brazil with become argentina. Those are two significant risks which i think have familiar rated in the last two months. But i think a lot of the story is about a four or five Year Investment process. I think its a lot lower with positive performance. One thing that hasnt come up at all and is fairly remarkable is oil. The oil plunger was all anyone was talking about. It seems to be connected to the selloff. Other Asset Classes dont seem to have noted. Can they continue to diverge . The Energy Complex itself has largely restructured itself. The weakest players did go back up. I did say there is a price at which crude oil will be driving scarlet whates are you advising people to be in . That is whatthink has gotten thrown out of look to us to be that final point of Movement Toward global portfolios and tactical positions. We like emerging markets, the metal sector and economy. E like u. S. Industrials finally, u. S. Technology seems to be coming out of a difficult few quarters. If you come inside the aremberg, the white line consumer staples. They have steady earnings and dividends in the bottom panel shows the ratio between them. When you think of utilities, are staples the new utilities in some ways the cause of their consistent earnings and dividend payouts . The think at the end of day, utilities are not a big enough sector so staples got drawn into it. Estates areal particularly attractive right now for people. For the time being, that is where its going. Joe there are these equities with bond like characteristics. Is that just catching it at the end . Thank you very much. Scarlet amazon prime to a customer orders rose 50 in the u. S. And it helped fend off competition. The chart next. Half the almighty cell phone becomes the preferred platform of use. Before we dig in to the specifics, lets take a look at the backdrop for the earnings season. I have positive versus negative sales surprises for the s p 500. You cant really manipulate the bottom line through tax treatments or cost cuts. The top line is here. The white line is the top line, outpacing the top line misses, the blue line, which has come down to 29 . I feel like we are still comparing like with like. Joe it is encouraging. Scarlet you wonder how long the outperformance will last. It could last for one quarter like it did in 2013 or it could last for more than a year as it did from 2014 to 2015. Amanda interesting to see it deflecting again. Joe im alpha interested in what we see in youtube. Yesterday, when we had facebook earnings, so much of the talk is about video and so much of the push is his facebook becoming the centralized media for all video . You can see the growth rate obviously expected to decelerate. It will be interesting to see if youtube is holding its own or if its a sign facebooks aggressive expansion to video is a huge priority to the company and starting to change consumption patterns. Scarlet its a really big part of the company. Its the one that gets everyone the other thing is surge is the big moneymaker. Anytime you look at it, youtube is minute. Theres a know generation who will be. Nplugged, not cable users youtube is my 11yearold primary source of program content. He watches all kinds of things on their. There. There is some good content on youtube. Joe i learned how to barbecue watching youtube. You mentioned also that is still a search company. Talk up the number of search queries it is getting. That will be another area to watch. Amazon movingith ahead of its results, it disappointed investors in previous quarters when it lost its numbers. Its not as committed to delivering that net income. An interesting gamble today to see investors. For a long time, investors for gave the company because they were reinvesting in their growth. Scarlet that does it for bloomberg markets. What do you miss and the market close next. The dow, little change. The s p 500 up. 25 . Scarlet u. S. Stocks staging an afternoon rally. The dollar weakens. We have gotten results from apple and facebook this week. The Company ReportedSecond Quarter earnings. Hillary clinton excepts the Democratic Party nomination. We begin with our market minutes. U. S. Stocks holding near record highs and the s p 500 all came off their lows and were rallying through the afternoon session. They definitely came off of their lows and just closed off their highs. We saw stocks climb