Profit that Beat Estimates. The world passes largest retailer in the u. S. Raised its fullyear forecast. We will talk about what this means for housing and the u. S. Economy later in the program. And Standard Chartered is settling claims of new york regulators over failure to flag potential Money Laundering of its clients. It may have to pay 300 million and will likely once again get a stern talking to. Lets get back to bhps spinoff announcement. We are joined with details. Tell us about the biggest spinoff in mining history. Why now . Question. A key this could represent the end of the commodities super cycle. That is the first sign of it. Capital bhps return on two years later, 13 in just two years. The reason why you can now argue the assets are finally cash flow positive, they are expecting prices to rise somewhat, metal could also rise, you could argue they are valued about 15,000. Not the worst time to do it. What this winds up reflecting is how horrible the Mining Industry then and how puddled pummeled they have been. We hearing Anglo American could follow suit and do a major spinoff as well. Trying to get out from underneath the writedowns. 50 billion and starts trading next year. That only accounts for 40 of the total earnings for the country. Is the problem minors have. They are so big, metal prices cannot keep up and they wind up getting pummeled. That is what happened across the sect or. Operations, nickel aluminum assets, schedule to break up in 2000 15. It will also sell separately. Ickel operations australia as well as south africa but not the u. K. , an Interesting Development especially for investors there. What does it leave bhp with . Is it just an empty shell . Not at all. You have iron ore koppel, copper, they have lower operating costs, and management to generate return in excess of 20 . Thatssue now with bhp is investors hoped they would announce a Buyback Program today. Investors were hoping for a Buyback Program. Right. Less than expected. Jeffries coming out saying, look, i do not know if the noncore assets were undervalued in the first place. How much is this spinoff going to create more value for the company . That is one of the questions going forward. Expect to see more headlines with management ceo changes. We could wind up seeing more spinoff with big eyes who cannot seem to keep up. We will follow it closely. Thank you for the update. In a hostile hotspot for the nation, tensions remain high where police crashed again in a group with 50 protesters, firing tear grass gasp. Tear gas. I understand the passions and the anger that arised over the death of michael brown. Giving into the anger by looting or carrying guns and even attacking the police only serves to raise tensions and chaos. More, for more, on the phone at the sight of the original protests, thank you for joining us. Governor nixon lifted the curfew to ease tension last night. Has that made any difference at all . Night, it looked like it was. Everything was peaceful around 10 00 p. M. Protesters. Before midnight, before the curfew that had been lifted, there was tear gas in the streets and police were shooting grenades at protesters. Working. Like it was before midnight, everything went to chaos. Teargas and some grenades are their own little curfew. The looting we have heard about for so many days, not so much important aspect of what is going on, but clearly there are much eger issues at stake here, but one of what do the local businesses look like right now . The worst of the looting happened last week and several stores were hit. After that, a lot of businesses boarded up their windows and protected themselves against looters. What we have seen in terms of criminal actions, we have seen some gunfire, some shooting, we have seen people who have thrown bottles at Police Officers. That led to the teargas and. Renades a minority of the people have been trying to stir up some anger among police and the crowd. We have heard reports from inice that people are coming from as far away as new york, andangeles, with firearms, discharging them. Are they shooting at police . Where are they shooting . It is hard to tell. I was here last night until about 3 00 in the morning. Every now again, you would hear a barrage of fire. Gunfire. It is hard to tell if these people are shooting against each other or try to aim at police. Defensive taking a stature and basically shooting teargas at anyone who looks like they are not following directions or looks like they could be a threat. No Police Officers have been injured yet but they are making a strong provision in terms of militaryrgas, and style gear, to make sure they are protected. Act theis a turnaround original strongarm tactic we thought would be finished once the Highway Patrol was brought in. How has the turnaround happened . Was the release of the micro Brown Michael brown videotaped . Seemed like things were peaceful at first and police are responding to just a few agitators within the crowd. If one person out of 100 or 200 people, if one person throws the bottle, and police go back and they bring their armored trucks and Police Officers. Upseems like there am thing whenever there is one act of violence or criminality in the crowd. It seems like the police are responding to what has happened in the crowd, but they are bringing their full, Strong Military style responses to what is basically people throwing rocks and bottles. Maybe a little overreaction there. We wish you well and hope you are safe. Yesterday, microsoft billionaire Steve Ballmer held his first rally in his new job as owner of the l. A. Clippers. He showed no matter what he does, he knows how to get a crowd excited. [indiscernible] [applause] the crowd and hopefully Steve Ballmer himself calm down, trish regan sat down with the former ceo to find out what his plans are for the nba team. I want the clippers to be the very best they can be. The best team, the best players, the best character, the best coaching staff, the best is this, i want all of that for the clippers. That just means we will have to be hardcore about working to be better. Excited fans are very and a fired up group. A loyal group. No question. Clippers fans seem almost conscious. We chose the clippers. That is a fun and exciting thing. They feel like you chose them . I do not know about that. I think clippers fans are glad to be able to focus back on the basketball. Doc rivers, a big force holding this Team Together throughout this difficult time. What will happen to them . Will he stay on . My job is to figure out what i can do to support him. What is your leadership style and hows that applicable to this team . I am enthusiastic, passionate, optimistic. I will also ask a lot of questions. I will not say i micromanage but i ask a lot of questions. That is how you, in my opinion, push to be better. All of those things worked in a business. Aen i joined microsoft, couple million in revenue. When i left, 100,000, 90 billion in revenue. The second third most profitable in the world. I think that worked pretty well. The question is do those same characteristics apply, the desire to be better, optimism, enthusiasm, passion, i think those same qualities probably work pretty well. The first job is to get the right people in place. I am not the expert. You have got to have experts in place who can run all the various parts of the clippers. One of the challenges i imagine doc had is recruiting players. No one knew what the future of the team actually was. Now that youre at the helm, now that there is a path of clarity, who would be your top choices to bring in . There is no question with stability comes opportunity. Doc made it clear to me having stability and the ownership does make it easier for him to do a lot of things, including improving. La clippers owner Steve Ballmer there. You can see more of this in streetnterview smart the next hour. Of course, trish regans own show a three clock p. M. Eastern. Stay with us all day for more clips. Go online, check it out on bloomberg. Com. Access it on your mobile device. Check it out on apple tv or on amazon fire. Sticking with sports, moving and shaking this hour, tiger woods. Even when he is injured, he manages to stay in the spotlight. He appeared yesterday in new jersey at a promotional event for nikes golf clubs here you have got to get paid. Also there, the top golfer in the world, rory mcilroy. The host of nbc latenight was there as well, jimmy fallon. Rehabbing back until december. He and Erik Schatzker spoke about the future of golf. Participation is hard. It is neat to see other top athletes like michael jordan. Lay golf tony romo, a bunch of different celebrities. Steph curry has got a game. Athletesese other play golf. That is when you make golf corp. Cool. I am having trouble reading the proctor this morning. We will show you some of rorys interview later. Of tiger on Market Makers starting a 10 00 a. M. Eastern. Coming up, chances are, you know someone in public im pretty sure they make the nikkei he nicotine kind. We will see how high the trend gets. Am. All tobacco reported a smaller drop in revenue than analysts estimated. The world passes largest Cigarette Company named weakness in iraq. It also said it was on track to complete its acquisition of a pack of u. S. Cigarette brands, which it gains last month from the lorillard megamerger. The deal included blue Electronic Cigarettes, the top selling in the u. S. The secondlargest ecigarette manufacture in the u. S. , although your biggest market is here, you expanded recently to australia and canada as well. How important is this globalization and how is it going . I see a lot of people shaping here in the u. S. Vaping here in the u. S. Primarily on the u. S. Market. You of other markets, whether it is u. K. Or other parts of europe, where this is gathering a lot of steam. Differences between Electronic Cigarettes and combustible cigarettes, you will. Ee an increase also, the technology of the products. The capacity in the growth will be much faster than what you have seen. The two countries you mentioned, canada and australia, we only sell a zero nicotine product. We do exceptionally well in those countries. What is the point of an ecigarette with no nicotine in it. I thought the point was getting the fix. There are four primary forms of addiction for adult smokers. Hand to mouth, the flavor, the smoke, and the nicotine. That is why patches and gums have not been successful. If it were just nicotine, they would have been wildly successful. Electronic cigarettes mimic other formats. It allows adult smokers and alternative, without nicotine. What is the deal with the Health Effects of, lets talk about regular nicotine ecigarettes. Smoking normal cigarettes obviously leads to death via lung cancer, normally. Are there carcinogens in an ecigarette . Youre not burning tobacco really. The pa, we feel is the primary place to learn about these products and it has started the research. You also see research at the cdc and nih. What we now know is how harmful and toxic cigarettes are. We have 50 years worth of research are there is clearly a difference in the way those products are constructed. Very soon, you will see a lot of studies, toulation truly understand. One thing they know about the Electronic Cigarette is you can modify them, you can modify the chemical aspects. If there is something brought to our attention, unlike a traditional cigarette, you can make modifications to it. Do you only sell packaged and disposable ecigarettes or is there any way i could put whatever i want in the products . Do you sell vaporizers i could put a cherry flavored nicotine in . We dont. We have disposable and rechargeable products. We are not a Number One Company in the u. S. Congratulations. Right now, you are not allowed to readily access that or alter it as you mentioned. Anyone can get a hammer and break into them and do that. We think it is important for the consumer to know exactly what is in their products. There is a lot of interest in the modifiables and other aspects, that is not what we are selling right now. Dont smoke, but if i did, i would want to be looked at but anything i want apparatus that i am buying. You would, but maybe you dont because you do not know what the impact of that will be. You do not know what the harm is. I think there is a certain comfort someone should get from the standpoint a Large Manufacturer has created this item, it is what they say it is and is disclosed in a proper manner. Thank you for joining us. Coming up, how much is your home worth . We are moments away from the latest snapshot snapshot from the real estate and construction industry. Housing starts in a few minutes. You are watching in the loop live on Bloomberg Television and streaming on your phone and on bloomberg. Com. I am at miller. Here is a look at your top tories today. Iceland is breaking bracing for a possible eruption of one of its biggest volcanoes. Ash from a volcano eruption watcher years ago youre for days on end. Bank of america will now be the banks chief operating honor, tom shared the job with david since 2011. David is taking a new title so he can move to florida. Montag was paid 15. 5 million last year. The lowest level on record in the u. S. The americans are drinking more Exotic Juices like pomegranate, energy drinks, and ready to drink coffee have also gotten more popular. Is 26 minutes past the hour. Bloomberg television is on the markets. Take a look at futures up across the board again today ahead of the Economic Data that we are minutes away from here. We rallied yesterday and had a great week last week. Things are looking up for august. Futures up 2 10 of one percent. Dow jones futures up 40 points and nasdaq futures, the nasdaq index at its all time high were at least the highest ends 2000 against a 14 year high, 14000 and 23. As i said,waiting, housing data. Home depot posted secondquarter profit that topped analyst estimates this morning. Forecast. Its housing and retail sales data showed strong gains from a year earlier. Does this say about the Housing Market in general . For more, i would like to welcome the metro study chief economist who analyzes the trend in the Housing Market and joins me from florida. And Michael Mckee is here with me as well. Lets talk first about home depot. For thetill waiting housing start data we will get in about two minutes time. What do you make of the home depot information . I always think if more people are going to home depot, fewer people are going to be out buying homes. Maybe they are picking up their own for a sale. What does it mean for you . He could mean either one. We track an index we created, the remodeling index. Increase ins is an the modeling and at restoration of the homes. Part of that is people buying homes and fixing them up and part of that is people saying, i will stay in the home i have got for a while and keep on maintaining it and making it at her. Better. Home depot, i always like to look at it and know people out there i spent a lot of time myself on home depot. They always do well in the Second Quarter. Springare starting their cleanup fixup garden planting, and they hire a lot of extra people in that quarter. It does not necessarily give you you do not seasonally adjust corporate earnings. It does not give you a great picture of how the housing industry is doing. We have seen the housing industry is a bit little bit but Housing Starts are still only about half of what they were at the peak in 20062008. A newher than building house, you are fixing the deck at your own house or installing a new bathroom or whatever it may be. Are the home depot results so good that it changes your mind or are they just confirming a fairly optimistic outlook . It is a fairly optimistic outlook either way you slice it. We have had a lot of weakness in the new home market and a new homebusiness the new business over the past year. Part of that has been to sticker shock, builders got ahead of themselves in terms of home price. It created a frenzy and that is what caused the weakness happening all year this year. People had just pulled forward their demand and we are seeing a hangover from that. Household will increase in the new job growth and that will make for a good rest of the second half and on into 2015 for the new home side. The best cure for a hangover is to build new houses. We will see in 30 seconds five seconds whether they are doing that. Fromused to the data 20082000 92010, anything. Were getting breaking headlines across the bloomberg terminal. What are you seeing . It looks like in terms of the Consumer Price index it is exactly as forecast coming in, up. Up 2 10, meaning the annual rate goes down a little bit. Two percent, 1. 9 and that will keep people on the sidelines in terms of the fed. Starts number is particularly good. 15. 7 . The forecast was for a. 1 . 8. 1 . Drop we had a drop. 1,093,000 on an annual basis. That is nothing compared to the days you and i 1. 7t is nowhere like million and 1. 8 million. It has been a while since we have seen these kinds of numbers. There is particularly good news. Before the numbers came out, you had a way you could really get the numbers to be good for the markets and we got that. Strong housing, an indication whichonomy is picking up, will tell investors perhaps the fed will not be jumping in here. Sees no reason to cool down inflation. If she sees no inflation, as opposed to the average american, who probably sees a lot more inflation than janet yellen does. Is much bettera than we are looking for. We have seen them alternate. E get strong growth 29 gain in apartment construction. That did not take away from singlefamily. Moreu have gotten