The dow climbing to a record incj high intraday high once again, so more room for equities. Tampered bygreen some red. The dow has been bouncing around today. It touched a new intraday high, but it has also fallen for much of the day as well. Bouncing between gains and losses. The s p and nasdaq have been consistently in the red throughout the day. They are dragged down by some of the disappointment on the earnings front. Onceally is a micro day, again, driven by these individual Companies Reporting earnings. Lets look at the winners and the s p. We have a align technology, orthodontics. They came out with revenue and earnings that Beat Estimates, and bank of America Merrill lynch upgrading the stock, saying that its penetration in the global orthodontic market can grow. Mohawk industries is the maker of flooring. That companys forecast above what analysts have been anticipating. Expedia, the Online TravelSecond Quarter results coming in, topping one year ago results. Analysts are saying the companys investments in its like him wayoducts and strabo paying off. And Rockwell Collins beating sales as well, on the sale of improving business jet revenue. We have some decliners on the earnings front as well. They are outweighing the gains in the s p and the nasdaq. The maker of industrial flow equipment, that Company Forecasting earnings below estimates. Goodyear tires missing estimate, seeing higher prices among competitive pressures. Starbucks missed sales estimates, closing down its team on a chain, and the mattel numbers are disappointing as well. Not telling as Many American girl and thomas toys. We will dig into mattel later in the show, julia. Julia. Thank you, washingtons healthcare stumble is again raising doubts about whether tax reform will ever happen. After burning the midnight oil, the senate failed in its attempt to repeal underplays the Affordable Care act. Majority leader Mitch Mcconnell says it is time to move on. But the white house budget director Mick Mulvaney says this battle is not over. Here is what he told bloomberg tv later today. Earlier today. I think you will see that the healthcare debate will continue. I do not think the senate can or will leave town until they have done something. They recognize the political danger they are in by not doing anything before they go home for the august recess. My understanding is they will stay here for another two weeks, and they will pass health care. Our national and political reporter for Bloomberg News joins us now on capitol hill. How much was a surprise of the affection of senator john mccain, in light of the speech he gave earlier . Someere is going to be form of resurrection and work continuing before the august recess, what does that look like . It was one of the most stunning votes i have ever witnessed in the senate last night. No one expected at the end of the day that senator mccain would be a deciding vote to kill this effort. He has mostly voted with his Party Leaders on this so far. That was a major, major defection that has pushed this into a brick wall right now. Is going to be in town for another two weeks, but they are planning on doing the nda, Defense Authorization bill, and a number of authorizations. Senator mcconnell says it is time to move on. He did not look like a man who was trying to bring up health care in the next two weeks. Among house republicans, number of whom i spoke to in the past couple of hours, there is a split. Some of the senior embers are ready to move on members are ready to move on. They said there will be another debate on health care, and that will be the market places that are not working. Everyone agrees these need to be fixed, including democrats. But the hardcore conservative members are saying we cannot give up on repeal. We have promised this too many times. Scarlet and that is the question here. Will the republicans keep the president s call to start the law defunding and let it collapse under its own weight . Over the been all place on this. Sometimes he wants repeal, sometimes he wants repeal and replace, sometimes he wants it to collapse and then negotiate. But there are a number of bad things happening in the marketplaces, and they are in a downward spiral in terms of people pulling out of those markets, not persisting coverage purchasing coverage, and prices going up. Whether that is a viable strategy for a party that controls the senate, house, and thingsouse to let collapse and when the party out of power . That is not likely to work. Voters are going to blame people who run the show if things go badly for them. Scarlet thank you so much for exploding all of that. Giving us a backdrop here. Turning to assess what all of this drama explaining all of that. Giving us a backdrop here. Assess what all this drama needs, we turn to austan goolsbee. Thank you for joining us. We were just talking about the republicans following the president s advice and letting obamacare employed. Does that make sense when republicans controlled congress and the white house, and have barely publicly tried very public tried and failed . Mr. Goolsbee that means two things. One, without a system of dumping heavy rocks on it, it is not collapsing of its own weight. There are a number of small counties in rural areas where they are having those complications, but as a broad overall, the policy is working decently well. Improvee things you can , they can have fixes. I am not optimistic they will be able to do any bipartisan fixes. It is not collapsing unless they actively sabotage it, which they may try to do. If they do sabotage it, i do not think they will be able to sneak out and say we did not do anything. You do not seeid a path here for bipartisan work on rescuing health care in any way here. Is there a fix that might be both tolerable to the left and right . The two sides cannot come together because of partisanship. Theyoolsbee i think cannot come together because of partisanship, yes. There are a few i consider them minor fixes, fixes on the margin, but most of them center on advertising and promoting people to use the exchanges. More people you get on there, the lower the costs are. That is absolutely antithetical to the view that has been espoused by the republicans, that they want to undermine the exchange and fewer people to sign up for them. It is why i do not think there is compromised. Is compromise. With donald trump, he did not do his homework, he did not come to class, he did not Pay Attention and now he cannot understand why he failed the test. He failed because they did not have details. He promised People Better coverage for more people for less money without cutting medicaid, and he violated all of those promises. It is not a surprise that that did not work. Scarlet the republicans simply did not have an answer for those dilemmas. How you take government out of Health Care Without causing millions of more people to lose that health care . Julia and the secrecy as well. Y bill was presented only hours before last night. And i want to move on to tax, because we heard the border adjustable taxes going to be dropped is going to be dropped by the republicans. Raises all sorts of financing questions given how much money this was expected to raise over the coming 10 years. How do they solve that, do you think, and was this the right decision . Mr. Goolsbee i do not know if they saw all that, and it is made a little more consultative by the fact they did not pass health care. Complicated by the fact they did not pass health care. There are a sizable group of republicans that really want to repeal the tax increases that were in obamacare. Those people, when we start the tax reform debate, say before we pay for any other tax cuts, lets repeal those Obamacare Tax increases. I think it will be a little harder, but you will not have the same opposition to making the deficit bigger that you had to taking away health insurance. So thats part will be a little easier than health care. Scarlet bloomberg was reporting that steve bannon has a the plan to n highest earners. That would be offset by the Corporate Tax cut and repealing emt and the state tax. That would all be to help sell middleclass tax cuts. How feasible do you think this is . Is this palatable to the Current Congress . Mr. Goolsbee it is an interesting idea if they propose such a thing. I would be surprised, because republicans have generally not supported that. The only thing i would observe and i saw that report on bloomberg. The only thing i would observe is that raising taxes modestly on incomes above 5 million does not raise anything like the kinds of revenue that would be required to repeal the amt cut to corporate and tom tax amt, cut to Corporate Income tax, or ass tax cut. Ecl that is a window dressing. What you thinkk about the drama in the white house . We have the overnight report about scaramucci laying into the chief of staff what you make of it . Mr. Goolsbee it is a very intense environment, working in the white house. I know Anthony Scaramucci, we are friendly, and he is a decent guy. You can see that he has not been there very long, and already the stress of the job is exploding. I think it feels as though this president not only does not do iron out theo wrinkles, he promotes the wrinkles. You get the sense that he wants them to be at each others throats and fighting. My only observation from having worked in the white house is the more the environment is the staff at each others throats, the less you can get done. You need to work together, as a team, and if everyone is like this was your fault, no, it was your fault, you cannot get anything done. Julia who would make a good replacement for the white house chief of staff if revis Reince Priebus gets out of their . Who is the best replacement . Mr. Goolsbee the thing with chief of staffs is they cannot answer the question objectively what makes for the best one . That can only be answered in relationship to the president. So the question is what would be forbest chief of staff President Trump . I am not the president of the biggest fan, thats president s biggest fan, as you know. I have made that clear on this channel many times. In my opinion, what would be best for him would be somebody who had some authority on their his foraystemper into the twitter sphere or nuttiness, and would bring a discipline and an openness to ideas from the other side. I do not anticipate they would pick such a person. I would follow the james baker but i do not think it will pick such a person because the president does not want to be reined in. Julia austan goolsbee, thank you for joining us and giving us your thoughts. Thats take a check on the first word news this afternoon with mark crumpton. Mark charlie gard, the critically ill british baby at the center of a legal battle, has died. Report according to a family spokesperson. He would have turned one next week. He suffered from a rare genetic disease that caused brain damage and left him unable to breathe unaided. A judge ruled yesterday that charlie should be transferred to a hospice and taken off of life support after his parents and the hospital had been treating him and failed to agree on an endoflife plan. North korea has fired its second Intercontinental Missile within a month today, heightening pressure on the u. S. Kimchina to rein in jonguns nuclear ambitions. It traveled over 600 miles before landing in the sea of japan. South korean president moon jaein called a National Security council meeting, while the u. S. Said President Trump was briefed. Iran was hit with more sanctions today after launching a satellite carrying rocket into space. Ronss central to a Ballistic Missile program irans Ballistic Missile program , and have been penalized. And a comprehensive plan has been unveiled for regulating tobacco. The agency wants to cut nicotine and cigarettes to nonaddictive levels. The goal is to cut down on future smokers, and is a blow to the tobacco industry. We will have the impact on tobacco stocks later this hour. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton, this is bloomberg. Scarlet . Scarlet thank you, mark. Coming up next, group are looking to feel the leadership uber lookingl to phil the leadership vacuum caused by the departure of the cofounder. From new york, this is bloomberg. This is bloomberg markets. Im julia chatterley. Scarlet and i am scarlet fu. Uber has set its sights on a new chief executive to fill the leadership vacuum. Hewlettpackard was under consideration, but she withdrew her name, saying she was not going anywhere. Their new ceo will not be make it in. Meg whitman. Olivia, lets start with the fact that whoever is going to be the new kluber ceo uber ceo will need to be approved by the board, but that comes gets things because they are kind of divided and includes the deposed ceo. Messy in the executive search. Subcommittee has a board made up of five individuals that are looking for the next ceo. We understand it has been a bit of a messy process, and people as divided on what they see the most important qualities for this next ceo. We understand they want they have agreed on three major wants. They want a lot of experience running a Global Operation with a large global company, they are looking for a statesman, someone who has a great image, who will bring a lot of confidence to the company, and they are also hoping to find a technology visionary. So to get all of those three qualities is difficult. Scarlet and jeffrey immelt. Julia jeffrey immelt. How is that going to go down . That is one of the latest rumors here. List and being carefully considered, and i think people on the subcommittee feel he is a great choice because he has a lot of experience running a huge, global organization, and ge cap of 200 billion, and a tumultuous 16 years running that company but he has a clean image, brings a lot of confidence, and would be a great leader. Julia and he is very grown up. It is great here hear from you, olivia. Great to hear from you, olivia. Thank you. A very valid point. They need someone a bit older. Scarlet and calendar is till on inick is stilll in the mix he is on the board. Julia and futures looking bright. From new york, this is bloomberg. Scarlet this is bloomberg markets. Im scarlet fu. Amazon stocks falling as much as 3 , the biggest drop in nine months. As 4. 3 , the biggest drop in nine months. If you look at this chart on the showserg, and this amazons market cap. Mark,sed the . 5 trillion briefly making jeff bezos the worlds richest person, but there was also a disappointing outlook, and we saw the market value dip back to 492 billion nothing to sneeze at. Analysts on the whole remain bullish. Double,tock is still but there is one thing standing in the way. Here is what we heard. There is nothing to stop this company from my reports have been reporting out i was talking about the road to 1 trillion. I think it is there if and when the ftc approves the whole foods deal. If that happens, that means they are rubberstamping the facts that they can go after groceries, restaurants, and what is next . I think they will increasingly take over greater and greater aspects on the overall economy. If the government allows the whole foods deal to go through, i think there is nothing stopping this company, and they could double to 2000 per share, the worlds first trillion dollar company. Area grocery ambitions forcing other Companies Like tyson to rethink their strategies as well. Severals released known brands, like jimmy deans, but now americans are craving fresher ingredients. Scarlet and once upon a time, tyson was a traditional meat and poultry business, and then they made purchases to gain these readymade food assets. A tough one. And of course they have these meal kits as well, and what we have seen with blue aprons ipo and the share price. Scarlet and that trademark application so what happens . Time for the Bloomberg Business flash. Another scandal for wells fargo. The bank says it may have pushed thousands of car buyers into loan defaults and repossessions after charging them for unwanted insurance. They may pay up to as much as 18 million to those affected. The bank is still trying to recover from the fact that bank workers have opened millions upon of unauthorized accounts. And according to bloomberg, the stock price for elon musks new topping 42,000. Multiple people have put down deposits for the car already. And the widow of steve jobs is inuiring a majority stake atlantic magazine. She is buying it from the chairman through her collective. She said she would like to make sure that atlantic continues to fulfill its Critical Mission at this current time. Still ahead, the commodities close, coffee prices getting ageold in todays trading. Will they heat up or fall down jolt in todays trading. Will they heat up or fall down . Whoooo. I enjoy the fresher things in life. Fresh towels. Fresh soaps. And of course, tripadvisors freshest, lowest prices. So if youre anything like me. Youll want to check tripadvisor. We now instantly compare prices from over 200 booking sites. To find you the lowest price. On the hotel you want. Go on, try something fresh. Tripadvisor. The latest reviews. The lowest prices. Scarlet from bloomberg World Headquarters, this is bloomberg markets. Commodity markets are closing in new york, select begin with coffee, writing for a Third Straight day, up 2. 5 for the fifth straight week. This is the largest rise is april 2014. This comes amid crop concerns in brazil and vietnam. We have metals, gold climbing for the six months in seven, thanks in part to chinas purchase of bullion bars. Higher bys propelled data showing that the u. S. Economy expanded at a slower than expected pace in the Second Quarter. In oils biggest weekly gain since december, surging more than 7 more than 8 right now this week. We are seeing signs that the market is balancing. The Russian Energy minister says he has seen the market rebalancing more quickly in the second half of 2017. Julia . Julia staying with oil, exxon mobil has profit surprises. Chevrons company and showing earnings less than analysts estimates. A look at what went wrong for tina davis. Ts, the weakness for exxon looks to be in the upstream with operating cash flows they were producing. Tina i think it is interesting. You can double your profit, earn a 1. 5 million an hour in the quarter, and you still fall short. So what they had essentially was a miss on production. They fell 1 year on year, and the market was expecting Something Like at least a 1 rise. That is what really hurt them, and is spooking the markets today. You have seen their shares straight down as a result. So lets look at these two names. We saw a surge in profits for both of these companies, and what we can take away from this is that exxon is learning to deal in a week price environment weak price environment. Tina and you heard that from shell, where they said that oil prices might be just lower forever. If you dollar oil might be the might be the new normal, and they are learning to live with that. Scarlet so we are looking at these Oil Companies shifting to cycle strategy, where they can produce some years ratherew then these billion dollar upfront investments. What are those specifics . Is there a limited supply of them . Tina the one word is permian. That is where everybody wants to be. It is been the hottest place for the past couple of years because it is profitable at even sub 35 for oil, and there is still a great deal of acreage changing hands. We saw a huge 700 odd million that went through yesterday, and that is because they can wear ill drill easier, quicker, and more profitably, and they can stretch as much as three miles horizontally to get as much out of the play is possible as possible. Scarlet outside of the permian, is there still an argument for pursuing longer term project . Tina absolutely. As you heard from exxon, they are still interested in brazil. They are excited by what we have seen in mexico with huge, several billion dollars several billion barrels rather of oil being found there. There is still an appetite for those long projects. Seeinghink we are just an awareness of cost and making sure you are no longer looking for the projects that are only going to be economical when oil is over 100 a barrel. Julia and some problems with the ceo, after seeing Rex Tillerson step away, all sorts of sanctionss violations from the company as well. There are a number of things he is dealing with at the same time. What do we need to see from him . Quarteris was a big that was described as a tough quarter. Nobody said great quarter, which is a traditional chant when you are seeing results like these good on the surface. I think what he needs to do and he is obviously very focused on already is looking at cost, keeping them as low as possible. We heard a lot of questions about spending Going Forward for the rest of the year. They have not spent what you would expect them to. They spent less for the first half than they budgeted for, so there are questions about what will happen in the second half. Scarlet and the cost cut was a pretty prominent the for european oil giants as well. How much fat is left to cut at this point . It has helped profits for this last quarter, but can it continue to be a driver for the next year . The if you talk to some of services companies, they are very concerned about what the costs are going to do Going Forward. They have been clear about saying they have cut costs as much as they can be cut. I think what you will see is not so much an attempt to cut the operating cost as it is being a little bit more choosy about which wells you are going to Going Forward. Julia who is left in reports in this earnings season . Tina bp comes on tuesday, we will see if they had the good european luck we saw with shell, and we will see a lot of shale producers coming in the next week or so. Scarlet tina davis, bloomberg managing editor for energy and commodities. Thank you so much. Lets give check on the headlines of the first word news with mark crumpton. Leaderenate democratic Chuck Schumer is praising the three republicans that broke with their party to reject the Gop Health Care bill, especially john mccain. I have not seen a senator who speaks truth to power as strongly, as well, and as frequently as john mccain. Very same kurds that he showed as a naval aviator in vietnam courage that he showed as a naval aviator in vietnam, he showed last night and has showed time and time again. Mark senator schumer also praised mains Susan Collins and lisa murkowski, saying that in so many cases, women are stronger than men. They brag to us about it, but this time they proved that as well. And the u. S. Has been ordered to reduce the number of diplomatic personnel and russia. Hundreds of u. S. Personnel would have to leave. Foreign ministrys essay relations between moscow and washington foreign ministries say relations between moscow and washington have become hostage to the sanctions. And the day after the 55yearold veteran diplomat was appointed Russian Ambassador to the u. N. By vladimir putin. Will succeed circuit, venezuelas prosecutor has raised the death toll from four months of protest against president nicolas maduros government to at least 113. The office reported five more deaths today, including a Police Officer killed yesterday. The tolls are expected to climb as employees post a ban on protests after a vote on sunday to begin rewriting the countrys constitution. Long island, is in talking about the ms 13 gang, which mr. Trump and his administration have said they will eradicate after having accused the gang of being of horrible killings in communities around the country. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton, this is bloomberg. Julia . Julia coming up, Tobacco Companies getting burned by the fda. Is the government trying to stoke out the industry . Details next. From new york, this is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Scarlet and im scarlet fu. Not all fun and games at mattel, shares plunging after seeing the biggest drop in three months, bringing the stock to the lowest price since 2009. Mattel sales missed estimates, and plans for the future have yet to show up on the bottom line. Joining us now for a deeper dive into mattel is oliver renick. Lets start with the movement today, because we showed the two day chart, and it is pretty ugly. It is, i feel guilty for writing that tease. But this is not new to investors. This will be the fourth potentially doubledigit down day. We have come off of 10 a little bit, but the fourth doubledigit down day in earnings. Just a put this in perspective, this is a rough chart. This is a bad chart. This is a look at earnings right here down. Here, down. Earnings again today. This is something that happens time and time again. Our major line here is toys that have not been hitting the sales. Some of the big lines we are talking thomas the tank engine, some of the dolls. They have highmargin stuff, a lot of the toys and dolls they have. When those margins get hurt, it is a double whammy with sales on top of that. Margins go down, but also sales go down. This is a fundamental chart of the margins. Not looking so hot. Operating margin in the past 12 months. It keeps moving down. This is a big deal for them. Scarlet the dolls American Girl dolls, right . Oliver right. Julia the problem is kids want different things. Ceo thisey hired a new year from google, who laid out a plan clearly investors are not sure this is the right plan or if it will work. Oliver i think it is a plan that will take a lot of time. In the meantime, this is a tech forward plan. They want to bring their items and products into the now and the future. In the meantime, some of these numbers will hurt. They also have a big debt burden as well, an analyst or bringing down target prices for the stock today, reading about that debt to equity ratio. Julia we will have to come back to this one. Thanks, oliver. Turning to tobacco stocks, going up in smoke at one point today but crawling back after the fda announced that they want to cut cigarette nicotine to nonaddictive levels. Here with us as jenny kaplan. Talk to us about what the fda is trying to achieve. So the commissioner made an announcement this morning, and what he is trying to do has two parts. First, he is trying to reduce the amount of make a teen of nicotine in combustible cigarettes to nonaddictive levels. He is hoping to open up the door to other nicotine delivery platforms, like ecigarettes that might have less risk associated with them as compared to combustible cigarettes. Scarlet that second point is interesting, because any Tobacco Companies have made forays into ecigarettes. King of Different Companies along the way. So they might benefit from this. Different up ecigarette companies along the way, so they might in a fit from this. Benefits from this. Jenny true. For some of these people and companies, they are already doing this. Wast of the rhetoric that used reflects what companies themselves have used in trying to imagine a smokefree future. Julia analysts came out today and said if you look at the likes of and looking at the share price there, they have a large amount of revenue, 70 , in noncombustible versions 17 in noncombustible versions. Phillip morris also has a lot of earnings outside of the united date as well, which is a point states as united well, which is a great points to make. Shouldnt investors have been prepared for this . Jenny this could be if the regulations actually happen the way they were proposed, this could be the most sweeping tobacco regulation that has if itsince 1965 happens. These are all proposals. We are a long way from these things actually working on that. And it white house and congress that is very intent on holding back regulations, so there is no indication this will grow go through. Jenny i think so. This could be a major blow for the cigarette portion of tobacco industries, which is the real moneymaker for these companies. But if you look to the future, a lot of the biggest players are already trying to get into this reduced risk game, and that could speed that up. Julia you have to ask the question whether the evaluations, the premiums that these guys have actually make sense. And youre talking a plus 3 fine, that looks nice, but should we be more cautious . And then they get blown up like today. And of course, the fda is notorious for moving very slowly. Even when i want to get when they want to get something done. Julia jenny kaplan, thank you for that. Staying with company news. Scarlet barclays, credit suisse, and ubs among those reporting secondquarter results. Stood out on the downside, reporting a downside in capital ratio, but different stories for a 78 suisse, reporting increase in secondquarter profit. The turnaround plan is gaining traction. We spoke earlier with the top making cheeks top banking chiefs for their highlights. Said, 18 months out of 36, and we look at all the things that we have identified that we are delivering. Generating almost 23 billion in the first half, the best performance since 2011. Ask in rates and currency, we are not happy with where we are with rights and currency, we are not happy with where we are. We were down in the Second Quarter, have made some important tires there important hires there, so we will get that corrected but as Investment Bank we have had a good quarter. Confident we can achieve our target, but it is not an unusual journey. Were talking about a net cost. Huge amountbing a of cost coming in from unexpected regulatory changes, technology investments, and doing what we can to keep up our competitive position. If you look at it today, there is a positive momentum which is continuing. You should lett, indicator a little bit longer and not step in wait for the regulation. Time for the Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Sales of a canceled cancer drug doubled from one year ago. The drugmaker says fullyear numbers would have been hired without the june cyber attack, which will impact the company for months to come. Approval to sell diesel vehicles and suvs in the u. S. The automaker spent several months in discussions with the epa and california regulators. U. S. Appeals court has ordered the federal aviation authority, the faa to reconsider minimum legroom standards. The lawsuit alleges that the seats compromise passengers safety. You know, i flew delta the other day and i could not get a seat assignment until i was at the gate, because it is a new class of tickets that is lower. Julia i thought you were going to Say Something about the legroom. Scarlet you could not recline or move forward. I had no legroom. Julia if you have to put your head down, that is a bigger safety issue there. At some point you have to draw the line, and say this is causing a safety issue. I am right there with them on that one. Coming up, whistle while you work. Whistling] julia wow, that is piercing. The Fourth International whistling championship. [whistling] julia this is bloomberg markets. Im julia chatterley. Scarlet and im scarlet fu. Is a seriousy business, especially with so much money on the line, but it can still be fun. We are here on the line with the director of Global Community should for Carlyle Group. Jason im here in a rainy washington, but it is friday and we have a special guest. Private equity a very serious business, but there is someone very clearly whistles while he works. That is chris allman. He works at the Carlyle Group and joins me now. Thank you for having me. Out, you have a new book and i want to talk to you about that you sit at this really interesting nexus of wall street, main street, and washington. A lot of cynicism out there these days, but this is an overly positive look in a lot of ways. The subtitle is simple gifts, touch hearts, and change lives. Put this in context with me. People say you have written a book on how to whistle . I say no, this book is about love, joy, and making a better place. Whistling at the intersection of wall street and washington, i have a lot of Great Stories but there is this notion that everyone has a simple gift. Everyone has a simple gift. Mine is whistling. What can you do to touch a heart . Not change the world, but touch one heart at a time. Pictures ofe seeing you whistling at the mets game, you whistled for president george w. Bush. The hallseen through of power, but how does whistling change your perspective when you are in those very influential places . What is the interaction like . It is fascinating, because some people get it, and some people do not. I was interviewed to be the of the securities, and Arthur Levitt asked me to whistle in his job this job interview. And then another time i had a chance to whistle for sandy wild is the head of citigroup as the head of citigroup. They looked at me like i had three heads. They did not get it. A skeleton key. It enables me to enter peoples hearts and bring a little joy to them, whether it is the president and the over office in the oval office or the china,nt in the bank of and i whistled for him the theme song to titanic. So it allows me to bring some joy to them. Jason what is the message people should take . I will not try to whistle for you, and i think many of our viewers you would be painful for you to listen to them whistle. How do people unlock this in themselves, especially in a business setting . It is one thing to whistle while you are mowing the lawn, but you are talking about bringing this into your professional life. It is about authenticity, trying to be honest about who you are, to be able to bring that to work. Whileot whistle randomly i am walking through the halls, but i have whistled at conferences per 1000 people, for our board, for David Rubenstein on his birthday. So it is an authenticity angle. It out a few notches, i think it is a lesson areour industry when you in Financial Services or wall street, we need to be more authentic. We need to be honest, try to relate to people, and i think that will help us win over main street. Jason thats great. Chris allman, find your whistle is the book. Scarlet thank you so much, jason. I like how he put it, that everybody has a special gift. Scarlet and that was his heart julia and that was his heart there. Scarlet what is your special gift . Julia i dont know. Either. Nt whistle scarlet and this is beyond whistling. Julia we will leave you listening to that. From new york, this is bloomberg. Julia his 3 p. M. In new york, 12 p. M. In San Francisco and 8 p. M. In london. Im julia chatterley. Scarlet im scarlet fu. Welcome to bloomberg markets. Julia we are life and bloomberg World Headquarters in new york over the next hour. Here are the top stories were covering on the bloomberg and around the world. The u. S. Economy getting back on the path to growth. Grew in President Trumps first full quarter as president. Jim with the rebound means for the fed path half forward. The online Real Estate Brokers join us next. And intel is bucking the pc trend with sales forecasts. We are told why the companys glory days arent over yet. One hour from the close of trading, lets get a check on markets with julie hyman. Thee as we get closer to close of trading, we get closer to unchanged. The dow has been hovering at that level all day, bouncing between gains and losses. It touched an intraday record high today. Lost, sos pairing is is the nasdaq. We have been watching individual movers. One of those that flew under the radar despite being a relatively big story is wells fargo. Got lost in the earnings shuffle perhaps. Itterday, coming out saying may have an issue with auto loans and auto loans insurance in particular. A review of the banks auto lending found 500,000 clients may have unwittingly paid for protection against vehicle loss or damage while making their monthly loan payments. This is an issue for wells fargo. A have had problems with people paying for things they did not sign up for in the past. Side, in the financial sector, you have the hartford Financial Services group, profits rising on on its unit that ironically provides auto coverage. Also, i want to talk about what is going on in the tech world today. We have been talking a lot about amazon. Com coming out saying that it may post a loss in the Current Quarter as it spends more to acquire new customers and sell the stuff they sell. On the flipside, baidu, the internet search engine, the chinese internet search engine, is slashing spending. It Beat Estimates and is forecasting revenue of 3. 4 billion on the lower end of the revenue forecast. Those shares are climbing quite a bit in u. S. Trading. Timing so much in fact that if it was the s p 500 within the tech sector, it would be the 16th largest tech stock. That is, if youre not including alibaba. Market cap about 77 billion, right in between adobe and qualcomm adobe in yellow and qualcomm in blue. Chart for it. T my somewhere on here. I will toss it back to you guys and that of trying to find scarlet we will figure it out later and you can bring it back later on. U. S. Economic growth rebounded in the Second Quarter. Data out showing gdp grew two point 6 , led by pickups in consumer and business equipment spending. What does this signal to the Federal Reserve . Joining us as chief u. S. Economist for Bloomberg Intelligence that says consumers have made americas gdp just good again. Not great. Not great. The elusive 3 threshold appears to remain elusive. I know yesterday there was late speculation among forecasters. That we could get a three handle on gdp. Scarlet why wasnt people were looking for faster gdp growth . There was ad that flurry of upgrades in terms of economists estimates are what secondquarter gdp would look like. It did not pan out. Carl one was inventory. It became apparent when we saw the latest round of housing data , we thought we would see weakness in residential investment. We did see that. For ant just a payback very strong q1 but an outright decline. And finally, the main driver is thatconsumer spending consumers have dominated gdp landscape for the last several years. It simply did bounce back in the Second Quarter, but they did not bounce back to an excessive degree. T was a very measured payback we knew it would be a measured rebound in gdp growth. We are stuck close to trend. The year on Year Growth Rate is 2. 1 . 2 has been a great gdp forecast for the last eight years. Here we are stuck in second gear. Scarlet stalling. Julia is there longterm potential here . Carl just above. They are at 1. 8 , we are at 2. 1 . Minds, itks of their gives them confidence we are heading towards the 2 inflation target in the median term. Term. Ium it does start to answer riddles. Looking at the year on year 2. 1 yeare, we are at on year growth. This time last year, we were at 1. 2 . That is an economic stall. Inflation is a lagging indicator. It should be no surprise we see the backside of inflation now because it is telling us what is happening in the economy one year to one year and a half ago. Things were not looking good. Scarlet how does this change the calculus for the Federal Reserve . They are intent with the Balance Sheet reduction. Carl they want this to be chairay until yellens expires february 3. As i mentioned, just in that thats of their minds, it gives them a little bit more confidence that we will see inflation rebound. I think they want to start this at the beginning of the fourth quarter. The benefit of doing it at the september meeting is they can stop and soften the staying. Soften the sting. The vicechairman of the sales was talking about the fed and where it stands. There are a couple of reasons guess is but the best pretty much consensus. They talk about the Balance Sheet in some detail, how they will bring it down in september. Say its more political dependent. Iny pump rates up a quarter september. , sort of, in a really stinky box right now. They are not in a comfortable position. Scarlet not in a comfortable position in a sting box right now. I wonder if that will make it to the fomc minutes. Julia probably not. This is a little bit less excitable. Listen to this. Tightening financial conditions would be an objective if your sole objective was the fact that you wanted to bring down the markets. On the other hand, if you want to support growth, financially, you leave financial conditions and an easing format in an easing format. This is the best of both worlds. They are sitting pretty at the moment. It is working out much better than planned. Julia sitting pretty in a stinky box. [laughter] carl lots of metaphors going on here. I think it is somewhere in the middle here because we have this sluggish pace of growth. If you are growing 2 , you will not ignite any inflationary bonfires. Policy you have to do at a tiptoe pace. Not necessarily quit drupal pace relative to the last couple of years. Julia so youre with krishna . The two ofin between them, but i think they should back off the prescription they have been giving for normalization. [talking over each other] [laughter] julia chief u. S. Economist. Lets get a look at the headlines with mark crumpton. No more metaphors. Mark i feel like im breaking up the party. President trump says the senate shouldve passed Health Care Reform last night. During an address to Law Enforcement officers in long island today, the president outlined how he believes congress should handle the issue. From the trump i said beginning, led obamacare and then do it. I turned out to be right. Let obamacare implode. Pass a socalled skinny repeal, its unclear if Senate Republicans could advance any health bill. Senator john mccain is returning to arizona for further brain Cancer Treatment at the mayo clinic in phoenix. Senator mccain cast the deciding vote last night that collapsed the latest gop efforts to repeal the Affordable Care law. Statement from the Senators Office says he begins chemotherapy and radiation treatments on monday. But will maintain a work schedule. British authorities have announced an independent review and building regulations after 82 tests identified apartment towers with Planning Systems that fail to meet fire safety tests. U. K. Ordered more stringent testing after the tower fire that killed at least 80 people. It will grant temporary legal status to more than 150,000 venezuelans with overstayed visas because of deteriorating political and economic crisis in their homelands. The status will be good for up to two years. Been inans must have colombia legally on or before july 25 to qualify. Powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Julia . Julia you are always invited to the party. Coming up, finding its home on the Public Market. We will bring you the ceo live from the nasdaq next. From new york, this is bloomberg. Scarlet this is bloomberg markets. It is official that redfin has taken to the Public Market in and over 138 million ipo. The Real Estate Broker saw insurance pot more than 30 at the start of trading, opening close to 20, well above the opening price of 15. Posting a valuation of 1. 2 billion dollars. We will send it to emily chang in San Francisco who is sitting by with redfins ceo. Is joining me from the nasdaq in new york. It youve got to like that pop this morning. Its an industry right for destruction disruption. For a long time, we had Public Company investors, but there were unicorn valuations in the private market. And thed for liquidity Public Markets are just ready to be the most efficient marketplace for us. Emily if there is another housing crisis type of event, how does your business sustain itself . We will keep on taking shares. I know it will affect us. In reale ups and downs estate. But we have the technology to make it more efficient and we will keep on taking share. It is still going to grow in the end. Emily would you say redfin is recession proof . No, no, no. I think it will be a wild and crazy business. We will be up and down but we will be always taking share because we do offer Better Service at a better price. Emily who do you see as your primary competition . Is it zillow or traditional brokerages . Max century 21, the zemax, those traditional brokerages. We are in it for the long haul. Emily i wonder if brokers are losing their importance as technology plays a greater role. Glenn our thesis is that better wins. It might take a little while because people dont buy a house every day. They are a little riskaverse. You haved, if technology to make it more efficient, safe equal money, sell their house for more money, better is going to win. That is what this means to us. Over time, we will continue to take share, make our product better, serve our customers better. That will win out in the end. Emily when it comes to the growth plan, is their technology you plan to introduce to further differentiate yourself . Glenn oh, yeah. We invented mapbased listing search and we invented ondemand tours so you can get a look at the house. There are offers you can generate in a few clicks. You buy the house before anyone else knows its on the market. We are working on selling homes directly over the website. Working on the mortgage business. There is so much to do. Presented report a loss in the first three months of the year. What is your line of white on profitability . Glenn we have a Pretty Simple line of sight. We have beention getting on the road is, why not invest more in growth . Strike theng to right balance. It is a big market and we believe is a Better Service. So we want to make sure we invest in that but still have the financial discipline. We think weve hit the right balance. Emily i know you are on company culture. Its a big issue given several stories about Sexual Harassment in the industry, the things going on at uber. You have launched a diversity campaign. Why cant tech get this issue right . Then it used to be that Computer Science classes are just filled with dudes. Changing forg, and the better. One of the reasons it is changing is we cant afford to pay people through the nose. Google and facebook otherwise have a monopoly on talent. We have to be a better place to work and it has to be better for everyone. Redfin has gone from having no women in the Seattle Engineering Team to being 30 women. And we make better products as a result. We really do. We keep our people longer, we keep them happier. Its been the biggest change thats happened to our business. Emily snape had a tough go of it on the markets. A lot of political uncertainty. What are your biggest concerns Going Forward . Glenn you know, you cant worry about that. I worry about showing up late to a home tour or screwing up somebodys offer. If we serve customers well, the stock price will take care of itself. It is a valuable thing, being the modern way to buy and sell a home. Sometimes, shareholders will appreciate it. Sometimes they wont. You have to keep your head down and keep working. If we do that, we will be ok. Emily where do you see the Housing Market going . Inventory is tight. How do the dynamics change . Tight,inventory has been but we are in the late innings of a housing recovery. Sooner or later, we have to brace for impact. I dont think it will happen immediately, because it is such an inventory constrained market. But even if a bunch of buyers step back, there will be lots of people trying to buy every house in america. It has been crazy this summer. Word when i say the bubble, what thought did that bring up for you . Glenn i think you are wrong. But i think you have to have a lot more leverage in the market where people are borrowing too much money to buy a house. Credit is tight. I think you have too much inventory on the market and we are not seeing that. It freaks me out a little bit,. Oo but i dont see buyers in a position where they are stepping back, where they are getting nervous. Every time prices go up, we try harder to get one. We see people moving to the center of the country. The coastal cities are starting to empty out a little bit and people are looking for a better deal in houston, denver, or somewhere like that. In theis it different bay area where there is a lot of tech money and prices are still going up . Even when you think they cant go up any higher. Glenn people ask me about the bay area and it defies the laws of. There is no the laws of physics. There is no way to predict how much you can sell a house for in San Francisco. Nobody is building houses in the city so it is just a conundrum. But we feel it in seattle. Everybody is moving up. It is making it crazy in seattle, too. Emily congratulations on day one of being a Public Company. Nasdaq. Us live from the julia, i will send it back to you. Julia he was so excited. That friday feeling. Amazon and an earnings upset. That is next on earnings insight. It new york, this is bloomberg. Julia this is bloomberg markets. Scarlet time now for options insight with julie hyman. Julie joining me for todays options insight is kevin kelly, managing partner at kelly and company. As we have watched, there has been some spiky volatility this week. Basis, yes,relative considering how low it has been and how long it has been that low. We have not seen realized volatility in the market place. You have people talking about the complacency, but the complacency is not showing up in talk movement. That is important to know. We are talking about this being below 10 for the longest time. But what funny, normally, realized volatility will spike above were on a streak now where it doesnt matter. Julie we have a chart showing that on the bloomberg. G btv 4790 if we can bring that out. That shows exactly what you are talking about. Its not working. But you can describe it. Kevin the important thing to think about is that when people so volatility, realized goes above that. Volatility is an estimation. It hasnt been that long. They have been eight longer streaks. Sometimes streaks going back to 1995, it did not go over implied volatility. It can stay low as long as possible. It is just like many of the other trends we have been watching. Just because it has lasted however long it lasted. It isnt reason enough alone for it to reverse. Kevin exactly. The important part is that you have to see it plan to the leadership. Technology stocks arent volatile. They are the largest group. Technology,ing of we have to get to the trade of the day. Amazon looking at a risk reversal trade here. Kevin what you want to think about is, they have consistently they are talking about how they will unlock more value for them through alexa and advertising. They are getting more people on prime. It costs about 44. 50. This was back when it was about 1030 dollars, and it has moved up since then. Hey sell the 880 put anybody would do that, especially the way that jeff reseaus buys stuff just buys stuff. Os [laughter] julie i know what you are talking about. Kevin kelly, thank you. Back to you. Bob swan tellso us how the Technology Stable is bucking the trend with the upbeat sales forecast. From new york, this is bloomberg. Whoooo. I enjoy the fresher things in life. Fresh towels. Fresh soaps. And of course, tripadvisors freshest, lowest prices. So if youre anything like me. Youll want to check tripadvisor. We now instantly compare prices from over 200 booking sites. To find you the lowest price. On the hotel you want. Go on, try something fresh. Tripadvisor. The latest reviews. The lowest prices. Mark time now for first word news. White house chief of staff Reince Priebus could be the next trump cabinet member in the hot speak hot seat after Communications DirectorAnthony Scaramucci suggested he might be leaking information. Said a cabinet shakeup is not imminent but the ap reports he has floated potential replacements for previous including for p riebus. The u. S. Hits iran with a fresh batch of sanctions for launching a rocket into space. Six iranians a speedy aries iranian subsidiaries were penalized. U. S. Says the rocket can be designed to carry a nuclear payload. Rightsted nations human offices was a concern about the risk of further violence in venezuela as the country prepares to start rewriting the constitution. And a new ban on political protest. We have called on the government to