5. 5 7 million was the most recent reading we got. This is not including the one we got just now. We are at just about the level that we first hit back in 2007 around the spring of 2007. Sales for existing homes following month on month there. Impact see the domino later on. Were ready much still into the trading day. The dow is the biggest mover but not by much, and i was checking out the 20 day moving volume , definitelyn by 33 the dog days of summer here. We are looking ahead to friday. Janet yellen will speak. We will hang on to every word there. Downs and ups. One of them was in the commodity space and i want to stay in my bloomberg terminal and show you what is happening here. The global commodity. It is a little small but look at all the red on the board. Industrial falling, metals. Lastg a low not since the two months. Down. 9 there. Agricultural commodities are down and were seeing a lot of good results for yields in terms of agriculture, corn and soybeans is definitely pushing down the price as well there. Lets go into another terminal function. This is the world interestrate probability, looking at friday with will happen with the potential fed rate. September 21, rate meeting, a probability, a chance of a rate hike of. 28 . See something above that 5050 mark. The spot index having an impact on commodities. As commodities go down, the dollar does get stronger. You can see where up by about 1 10 of 1 . I will send it back to you. Mark i better start with general, group ranked returns. This is a great function for all industries are the stoxx 600 is rising for the consecutive day following the biggest rise since yesterday. Investors are looking ahead to janet yellen, jackson hole in friday. On rawfalling 66 material prices, net income, narrowly missing estimate. Billion. O 23. 6 dollarsany widening its. Borrowing to its lowest 16. 5 billion. The recent rebound in coal will and earnings Going Forward underpins the likely return to restarting dividends. That is important for a company that has not paid a dividend for about a year. Shares down percent. Big ad agency, the biggest rise earlier, biggest gain since 2011. Shares rising to a record. The company benefiting from the brexit. A translation effect when it came to sterling. A profit of 15 and revenue is up 12 . Europer at buying in ahead of the football tournament. I will not say the word soccer. It is august the 24th, two months to the day since we knew about brexit. What a great time to sit back and gauge where we are. I thought we looked at all the main aspects. Form in bond index up bonds in the u. S. And the eurozone. The ftse is up by 8 . 7 . L caps up by we had a record on monday and today, up 4 since then. Terling down lets get to the first word news today. The latest as in our newsroom. You. Thank at least 17 people have been killed and a powerful earthquake and the death toll is likely to rise. Destroyed. E looking for victims of survivors who may be trapped in the rubble. The town. Rom a major escalation in turkeys involvement in syria. Groups across the Syrian Border against the islamic state. Meanwhile, Coalition Air forces were joined to pound resistance. Allied with turkish separatist. Special operations are helping the turks. Many donors to the clinton hillaryon met with clinton while she was secretary of state according to the associated press. Clinton Campaign Says that he icials and an emergency allowing mattresses to be taken. And than september 30. A lessthanperfect landing for the world pluses largest the makern the u. K. , says it sustained damage but did not give any details. No injuries reported. Part airplane. It is more than 300 feet long. Global news 24 hours a day powered by more than 120 countries. This is bloomberg. David. That, homes fell new home purchases unexpectedly surged for the height level in nine years. Me existing home sales, 5. 5 one million. The actual 600 and 54,000. Let me just ask you about what you are seeing in the Housing Market and what the in, with that reflect what we heard yesterday . We are seeing some trends. Overall, gradual and steady market. Moves not been exactlys exactly smooth but the larger trend has been positive and steady. David i want to pull up a chart looking at the average data. The record low we saw back in 2012, and then the we are seeing the amount of s sold there. Is this the market right now, low rate, low unemployment . There wereazingly more homes sold in 1981 when sure therates or 17 reality is there is a lot of pentup demand. Andpopulation is growing they need shelter. The low rates allow everyone to buy a bigger house than they would otherwise be able to buy and if rates go up, they may have to settle for a smaller house but they will need shelter. Mark on that issue itself, we are sitting on our hands with waiting for janet yellen on friday. Can the Housing Market withstand higher rates . Absolutely. Affordabilitye is. The index measures average house payments compared to median income. It is a very good ratio right now and there is an opportunity for a little more price appreciation and Mortgage Rate appreciation so to speak before he gets to into trouble. About what talk youre doing right now, forgoing revenue gains to pay down debt. Tell us the rationale . Sure. Because the highyield market has been a little more we paid off 320 million of debt that we were planning on refinancing. We were planning on paying off even more debt but we are able do thinke refinancing it is the right time to level off our debt, our revenues, and continue to focus on the Balance Sheet. David one of the regions that are most appealing, what do you see . The texas market, and everyone has been understandably worried about it, continues to be very strong, even houston. Texas is very strong. Southeast florida is a strong market with a lot of demand. Are seeing california firming up as well. You have got a divorce a diverse portfolio and you look at how you will allocate portfolios, are there particular sectors that are of greater interest to you . Is that a place where you might consider allocating resources . We play the whole field and that is part of the strategy. On the aging baby boomer, the market that is over 55, a rapidly growing segment of the market. We have a lot of expertise in that area. On the aging baby that is one where we will probably wait a little more. Mark there are some concerns when it comes to liquidity in your company. There are some concerns when it comes to the ability to meet future debt payments. Could you once and for all put these concerns for bed too bad for us . I will probably never be able to forever once and for all, but we have been issuing public and for about 40 years there are always challenges in the market place from time to time. We recently announced, and were in the middle of an offer, to refinance our current debt. If we could not have refinanced it, which we now cap we now can, we still would have been fine because we have many other opportunities besides the public bond market. It on brexit, if you will excuse me, im in london. Impacts on u. S. Housing . A Bloomberg Intelligence piece said if on home buyers do not like look of london, they might like the look of the u. S. Housing market. Can you find the link between brexit and the u. S. Or not . To be honest, there are a lot of factors and indicators i looked at. The brexit phenomenon is not one of them. We have not seen any impact and it has not been a discussion point in the industry. David where are we situated . I think were in the third or fourth inning. Numbers,ing at sheer the number of homes produced sale,ear, lentils and for we just sent over one million come about one million is average. As you get into the cycle, we get into 2 million. I think we are very early in the housing recovery. Thank you for coming in. Joining us here in new york. Coming up, we will look at the stocks including shares falling sharply after falling in its annual profit forecast. This is bloomberg. Mark it is 30 degrees here, david. David count me envious. You are watching Bloomberg Markets. It is time for a look at some of the biggest business stories in the news right now are the royal bank of scotland has sold about 3000 of its clients. Times running out to find a new bank. Rbs global Transaction Service customers outside the u. K. And ireland. It acquired the business and its takeover it is now getting out of it. That is forcing them to find new banks. Strapped, 12 billion in debt. Familiar with the matter said executives are looking for signals from the companys revamped board on how to proceed. A downgrade would give them flexibility to repay its dividends. Borrowing costs would be higher. Cars inrecalling 88,000 suvs in america. If youll problem makes the engine stall without warning. Sedan in theks suvs from the 2013 through the 2015 model years. The fuel module will be replaced at no cost. That is your update. Mark lets get to the market desk. Looking at earnings losers today. The earnings season is coming to close. We have a couple to talk about. Are long on express shares, i suppose you wish you hadnt and because the shares lowest 25 down, its since the spring of 2012. This is largely because of foot traffic. Saying that there was challenging foot traffic because a lot of people are going online verse shopping malls here. They are forecasting cuts from the mid to low singledigit digits there. Not doing well at all if you are in the mens and womens fashion company. Lets go to furnishing and check out lazboy. Earnings are down on the order of about 11 here. In. Ings missed . 28 coming also missing by about 15 million or so. This is its lowest in about two months. Moving along, the biggest fall in about six months. Session lows are about 4 . The fourthquarter eps, although it did eight cents versus an estimated loss of . 02, the fourthquarter revenue beat as well. Fourthquarter guidance missed as much as 12 in dollars there. Vicon industries, a telecom contractor. They say the revenue from the recent acquisition is lower than expected and we see this down 5 here. The share dropping is reflecting the Higher Expectations that investors thought they would see but they did not pan out. They expect higher margins sooner rather than later. Mark still ahead, glencores first profit today. They struggle to bounce back from the commodities prices are we will discuss glencore causes road to recovery next. This is bloomberg. Mark lets get to commodities and talk about glencore. At the moving share today. The lowest profit in glencores five year history a public company. Lets dig deeper into the result with jesse. Something for everyone but let starts with lets start with the earnings themselves. Disappointing. I think the share price reaction was not so much of his most to the broad numbers themselves. Pretty much in line with what analysts were expecting. We talked about returning to a dividend. That was all positive. The one negative that has been a key take away for analysts, and people we spoke to today, is that there was quite a significant loss on a call hedging charge. It is the symbolism of that that has really struck people. All around glencore for so long, these guys are the masters of the trading universe and they are going to wear Commodity Prices are heading, a trade like this is uncharacteristic. Mark we were talking about its future. Yes. A turnaround plan is pretty much on track. The debt target, they lowered it even further. A surprise deal, no one saw that coming. The share price has reacted. David we heard from the ceo of the company, looking ahead, what do they have to say about a macro level . How much promise does that show for the company . Bullishore ceos altra than any of his peers and true to form again today, though he is summer in place is, certainly more bullish than his peers who were quite bearish on the outlook at the end of the decade. Two bright spots for glencore. 42 , coal is up as well. Cautiously optimistic would be the right phrase to apply to the way he sees the markets. A lover of deals. Might beabout what he looking at, if anything . Usually around this time of year, we hear the catch phrase, you know, we look at everything, when you ask me about acquisitions. His response today was the are not looking at anything and i do not know what is up for sale. That is a stark difference, selling a lot of assets. Clarity. Ot a lot of that will bring in more cash to help lower the debt below 20 billion. Mckenzie, the chief executive said the freefall may be over. Share prices. A lovely chart. Look at how much they have all residents since january the 20th. Is there a lot in the price of these minors . Yes, there has been a stunning share price reaction. You look at analyst target prices as an indicator, which we know they are not terribly insightful but if you look at those as an indicator, then the stocks are fully priced. It is all about color. Thanks. Mention thee should chairman of bloomberg lp, the parent of bloomberg news, a nonexecutive director i glencore. David Oil Inventories are out in just three minutes. We will have the latest numbers plus, a lower forecast for oil prices, you will hear why coming up next. This is bloomberg. Mark you watching Bloomberg Markets on bloomberg television. Trading a little bit later today. What have we got . Ramy good timing. 2. 5 million for the upside. Here we are now seeing a further drop. We are already flowing at highs. This would only exacerbate that. The drawdown of the expectation. He is now producing prices will decrease even more even more. Explaining why earlier today on bloomberg and jon ferro. We have two imbalances in the market at the moment. Highfrequency data areas ago oklahoma. We are not seeing readily what is happening in the rest of the world. We believe crude Oil Inventories are actually point down and yes, todays prices are as a result of the data released last night. E will see you just might not know it. In retrospect, we do track floating inventory. Crude has been down almost every week. They publish them with a three much threemonth january through may. That is a big chunk along with the floating inventory that shows you that the market is really moving to the balance what theder estimating number is for the u. S. It used to be a large importer of crude. We are not to the degree we used to be. If you are a coastal refiner, you have inventory on land. As we have moved from a big importer to a minor importer, a net exporter in a very big way, on land inventory has to grow and it has to go probably 100 barrels above what it used to be. A lot of that is really a rebalancing of the market. You have a central banker on the market. Could do that and it could. Ast about a month the greatest central bank at the moment is opec. Any Bank Governor or otherwise would be proud of it. They have got to follow it up with something. The verbal intervention, did we get the action . , the big central bank of oil repeated in 2015, repeated ad nauseam in 2016. We will not add liquidity or withdraw it. U. S. Is not quick to respond. There is no spokesperson. We are not one big oil company. It is kind of a new world. The guys who benefited from that old world wanted to die. Lies the market still trading on the old central Bank Governor then and what is actually happening . We have literally seen the playbook rack in april. Are we going to see this when it comes and goes . I think there is a potential washout. It is not million opec meeting. That happens to have 75 ministers or was i ministers or Energy Around the world convening in algeria. They have a good reason to hide this here they have been suffering by low prices. They need higher prices. So do venezuelans. Here is the opportunity for another big agreement. I suspect there will not be much happening as a result. David oil taking a lap lower following the inventory data. Datae blog here of that coming in now. Font of resources you can see all of the heavy hitters here. A comment from juliann lee, Oil Strategist saying gasoline inventory to rise. The headline here, crude Oil Inventories by 2. 5 million barrels. Trading 2. 2 il lower. The latest from our newsroom in new york, and a . Vice President Joe Biden is in turkey trying to patch up shaky relations with a key ally. Biden spoke about the u. S. Involvement in that july coup attempt. Joe biden the United States of america did not, did not have on the 15th. Edge the people of the United States of america up or what happened. Or what happened. Appears to bep heeding the advice of allies to soften his stance on immigration. He is backing away from his longstanding call of immigrants. Would do thes he same thing as president obama, making the deportation of criminals in the u. S. A priority. Fewer Foreign Tourists are visiting paris. Exceptional flooding. The drop was especially high among japanese, russian, and chinese ministers. A meeting was called for next month. Feeling the flag is now in tokyo after being handed over at the end of the real case. Tokyo is counting down to hosting the 2020 is that. The test, paris, rome. Dayal news 24 hours a powered in more than 100 and 20 countries. This is bloomberg. Mark thanks. Coming up, just really an airline announced its First Business since 2009 after a record traffic. We will hear from the chief executive next. This is bloomberg. David you are watching bloomberg. Mark this is your Global Business report. David glencore wide as it Debt Reduction plan after its first in five years, will be enough to weather the storm. Mark sending tourists in britain on a shopping spree. Avid todays quick take airlines are turning to planes like goings dreamliner, the end of the runway for the famous 747. Monthsbeen a rough six for glencore. Profit fell by 66 , lower prices for metals and cold and in response, it attempted to sharpen its debt plan. Glenn is glencore foldout just get reduction, cutting costs and stock. Glencore remains a buying opportunity. Cover, their biggest commodity, still has not bounced all that much. It has not bounced all that much, below its normal national price. Especially given how glencore has transformed itself, from a Balance Sheet perspective, glencore offers excellent buying today despite the fact it is up 100 . Woes innsumer credit july. British shoppers hit the store for some are good and took advantage of low Interest Rates on offer. Mortgage approval declined. To be affected by the brexit vote. Sterlings post brexit slide is making these an attractive shopping destination for tourists in the biggest spenders are coming from the middle east. Last month, visitors from qatar spent the highest they were followed by tourists in saudi arabia, russia, and china round out the five international Taxfree Shopping and it rose 7 in july. Pimcos concern about a slowdown in china plus three with eight margate Market Real Estate market. It reduced exposure. Last week, china said prices rose infused cities last month than in months before. David time now where we provide context in background issues of interest. Jumbo jets seems to be fading. Is being overshadowed now by twinengine aircrafts that burn less fuel. Here is the situation. Airline twinengine planes the playmakers have struggled to aircrafts. A 20 aircraft deal with the russian heart death cargo holder is providing support to the 747. And which accounts for 45 of sales. The never realized production plans called for airbus to build 45 planes a year and it is not even close. The plane maker decided in mid2016, more than half output to 12 jets annually within two years. Theout fresh interest in 747, boeing may have to end the program. 2023 may mark the last hurrah. Boeing engineers saw the travel and cargo home incapacities promised and in the 1960s, they created the 747 to redefine luxury. In 1990s a new generation of jetliners with similar long range and just two engines chugging jet fuel. The timing was lousy and the market was shifting by the first commercial flight back in 2007. Skies and runways become more crowded as airtraffic is expected to double. Airlines worried about 500 to 600 seats filled. Boeing says the world will need 500 large freighters. The difficulty of expanding when building airports will one day favor the superjumbo again. You can read more about jumbo jets and all of our quick take on the terminal and that is your Global Business report. Head to bloomberg. Com for more business stories. Mark lets stay with the airline industry. The carrier reported record profit for the latest Business Year and announced its first dividend since 2009. Earlier today, the chief he isive told bloomberg excited about what is next for the carrier, especially the delivery of eight new 77 dreamliners. I am very excited about the future for the group because there are so many opportunities with the delivery of the 787s. In japan, plant, vietnam, plant, the in australia, and loyalty program. Ive always said if i am enjoying it, the board of shareholders will not need to continue on the job my will continue. Nothing has changed on that. We talk about the opportunities in the second. To get a handle on what is propelling this record profit. Fuel price would have certainly helped. How much support did you get with your joint venture . The biggest factors are the transformation program, which today has delivered 1. 66 in dollars in benefits to the bottom line. Producing these record results. What has helped the international business, a record profit, is the partnership with america. That is how we structured that business which allows us to focus on growth particularly in asia. You have got eight on order and you have got 45 options. How many of them will you start to exercise . Alle would love to exercise of them. Depends on us demonstrating that we can make money and deliver good returns out. The reason why we have those options is someday, if we can how thefits out of network works, we would like to exercise as many as possible. Must have a preliminary plan anyway. More than 10 or less than 10 . Believe it or not, we dont. We do look at we are excited about that. Destruction ofof facilities that has to happen to make it work and then we will take it from there. It is great we have 45 aircraft as options. If i could make equity return out of them, we will see after we demonstrated the results. The aircraft into your fleet, signals the deferred options on that. In the fleet. E 12 does that mean you might well say, enough is enough of the ones you already have is well . The 12 we have today have a very good use. Big reports and slot and theions with l. A. Big connectivity, we see is for 12. We do not see use for more than 12 and that is why we will continue to push out the orders we have. We do not see a need for the last eight aircraft. Ahead, Political Drama in south africa keeps pressure today. We will go to johannes hurt johannesburg for the very latest. David full coverage of the starting tomorrow and also on friday, we will have a breakdown of Janet Yellens muchanticipated speech taking place on friday. Do not miss some of the biggest voices on bloomberg on friday. James bullard, robert and dennis lockhart. This is bloomberg. Finance minister took a new twist. A new website said the finance minister have been summoned to report to police. This is speculation that it will be replaced. Let me ask you first of all for the latest. I know the finance minister was scheduled to deliver a speech. Do we expect to hear from him later today . The latest developments, they said they are not sure and cannot confirm whether or not the financed the finance minister will give that today, but what we do know is for the , a companyrnight confirmed these reports later today definitely today that it is a probe into some of the deals. The Prime Minister was the head of the South African tax service. Further reports coming out and really damming against the finance minister. This. Have been following leadership can changed further gdp growth. I mentioned over the last 24 hours, what else have we seen in terms of Market Reaction . It really depreciated by 1. 2 today, furthering that plunge. Against the u. S. Dollar yesterday. That is just after the report of the finance minister being summoned by this police unit. We have seen the government bench bond marks have soared the highest, the most since december. The markets are really reacting that they to the news finance minister of could possibly by the end of the week. Mark what are the likely developments in the next few days . The last comment made from the finance minister was buy a spokesman basically saying he is reserving comment at this point in time seeking legal advice. That is ahead of the meeting from the police unit on thursday. It is very difficult to not think this is politically motivated. They have said the president still supports and all his efforts as finance minister and head of the treasury. Mark give us an idea of the relationship between the the president has come off of terrible election results, the worst since the end of apartheid. What is that relationship like . What we know is analysts have seen their relationship may be marred with a rift. We do know that cabinets announced earlier this week that they will be hitting up what will basically overlook for the state owned enterprises. The finance minister has said time and time again that he wants to change the board of their ways. One thing that is clear is the person currently chairing the board is a very close friend and associate. Those things are really coming through that there may be some sort of political influence behind those allegations against the finance minister. Mark great job. Currency is major rising. Bloomberg news in our johannesburg euro. Coming up on the european glows close, glencore looking to consume investor slows on the Balance Sheet. We will talk to an investor with skin in the game. That is next. David it is 4 00 p. M. In london. Im in for vonnie quinn. Mark i am mark barton. Youre watching the european close on bloomberg market. Mark we will take you from washington to london. Here is what we are watching today. Shares of glencore are falling off for the Company Posted its lowest profit this decade. Can we really sure the investors with his pledge plus 500 million . A powerful earthquake hit central italy in the middle of the night. The death toll continues to rise. Denmarks Biggest Pension Fund says it is growing increasingly worried about how the markets will react across asset classes. One of the many side