Some important corporate stories today. Bank of america shares building on the early gains after profits beat estimates, though it felt like 21 area analysts on the companys expense targets over the next few years, that maybe soon slowing down the stock today. We are watching armed holdings after it to be bought i saw bank of japan. Agree to be bought by softbank of japan. Two day. E today the this is the biggest ever japanese acquisition in europe. They definitely have a huge preference presence in the mobile computing industry, designing chips the go into many mobile product. Chrysler, shaking up potentially bad news . , according topany our reporting, may be under investigation of the department of justice, having to do with securities fraud. We dont know the details, but there have been civil lawsuits involving dealers potentially saying that the old more cars than they actually have. Shares initially dropped on these headlines. They have since climbed back to some extent. They are only up 3 10 of 1 , but nonetheless you can see the bounce the shares have seen from the bottom and we will be bringing you developments or updates on the tory as we get them. Vonnie absolutely, thank you. Mark crumpton has more from our newsroom. Mark ted cruz is scheduled to speak wednesday at the Republican National convention in cleveland, but he is telling politico that hes not ready to endorse the likely nominee, donald trump. He says that there is a lot of despair that trump is the party standardbearer. Hes also accusing the media of playing a role in the ascension of trump, saying that he succeeded in controlling 3 billion in free media. Weekend,ge over the saying this madness has to stop. Mrs. Clinton made her theents while addressing Naacp Convention in cincinnati. She said of the recent killings of officers in baton rouge and dallas threaten the ability of the nation to make progress. Were learning more about investigation into the terrorist attack in france. The Prosecutor Says that the attack was premeditated and they expressed support for the islamic state. They have searched online for information about the attack about the gay nightclub in orlando, florida. Resulted in program 312 falsified results. The probe also revealed that deceit lasted from 2011 through last years world swimming championships, longer than previously known. 21st century fox is planning to remove fox news chairman and ceo, roger ailes, and to new york magazine. Rupert murdoch and his sons agree that he needs to go. The report comes as he faces Sexual Harassment accusations by former anchor, Gretchen Carlson, who said that she was fired for refusing his advances and complaining about his conduct. News, 24 hours per day, powered by 2600 journalists and analysts in 120 countries. Im mark crumpton, this is bloomberg. Back to you. Stocks proving once again to be resilient to global shocks. Scaling new peaks despite the brexit vote and fridays attempt in turkey. Could anything derail this upward trend . Joining us now to discuss this phil orlando, who helps to oversee 360 billion at federated investors. You obviously have a global outlook, phil. Lets ask you about the reaction to the events in turkey. Is it a major deal for emerging markets or Eastern European venerated . Phil we had taken some profits into the position before the coup. We were underweight. At this point we are sitting tight. This might turn out to be a buying opportunity on the airpark air pocket. Futures were hit after we hit this attempt, but then the was a rebound with no Market Impact today. What is fueling the rally . Phil in the u. S. You have a situation where stocks are up. 9 in the post brexit pop. The gun vertical. From our perspective, they gotten pretty extended. Trailing earnings, 19 times forward earnings. From our active, looking to the horizon, a couple of things concern us. We dont know how brexit will play out over the next couple of months. Could there be a policy error by the Federal Reserve . In the july or September Fomc meetings . And we are starting the convention process and that is a significant risk as to what fiscal policy could look like. For all of those reasons we are sitting here with a more neutral equity allocation because we dont have answers to those lessons right now. Market participants, are they watching the conventions to trade . There might be information later in the convention when mr. Trump weeks later this week to get a sense of if either of those two people are elected, what might this go policy under . Hose administrations look like ultimately investors are looking for where the economy is going to go, what corporate earnings will look like, and the appropriate level at which we should value securities. Shery i was reading data that there is an 86 chance of the reigning party to win the elections in an environment such as this, economically, but what could derail that through november . Phil strategists are looking at the fourth of the stock market from august to september and october. We are still a couple of short of that. What could possibly derail that . Certainly a policy error by the fomc. If they choose to tighten policy and the market leaves that that is the wrong move, stocks could selloff. A brexit situation may develop quicker than expected. Certainly, Prime Minister may is in place sooner than we thought. We didnt think it be until september or october. At what point is article 50 triggered . Secondquarter corporate earnings are probably going to be down somewhere in the neighborhood of six percent to 7 . Fifthill be the fourth or at quarter in a row. Plenty of negative stock that until now markets have chosen to ignore. Its interesting, if you look at my bloomberg and the outperforming sectors, seems like gold, mining, steele. Its difficult to know where the leadership will come from if we continue to rally. Where do you think money will flow out of if we continue this performance . Phil basically theres been this flight to safety in which the dollar treasury and gold have been safe havens. Staples, health care, theyve done really really well so far this year. In these last two weeks weve had this 9 rally with a more risk on mentality. If it turns out that there are no things to worry about in the markets can run to 2500, i expect areas Like Technology and industrials will probably catch up it. At this point i think its too early to take that call and we are taking a much more cautious wait and see position. Looking at the fed, if you look into my terminal you can see that traders are now pricing and higher chances that the fed will raise rates. Look at the plunge after the brexit vote. Now we are recovering from that. A 40 chance as of friday. Markets seem to be pricing in the possibility of a tightening to come soon. The well, we are in december camp. We think it is reasonable to get in december. Hike the risk is the meeting on july 27 and again on september 21. We are not sure if the economy or markets are prepared for that. To talk about policy error from the fed, thats exactly what we are talking about. Are we ready for a tightening as early as the next two weeks . Vonnie thank you so much for joining us, phil, with that brief overview of whats expected in the markets. And coming up in the next 20 minutes of numbered markets, a massive deal this merger monday. The biggest acquisition ever for japans softbank. And the Republican National convention is underway in cleveland. Shery how has the rise of donald trump prompted change in both parties . Vonnie plus we are watching oil prices in retreat following the failed coup in turkey. This is bloomberg. Vonnie beautiful midtown manhattan, lovely sunny day. Im vonnie quinn. Shery and im shery ahn. Time for a look at the biggest business stories in the news right now. Chrysler is being investigated by the u. S. Department of justice for fraud, according to people familiar with the matter. Prosecutors are scrutinizing whether the carmaker violated securities laws. The chicago area dealer alleges that they inflated u. S. Car sales by paying dealers to report selling more vehicles than they actually did. Timee for the first volkswagen has said that they will compensate the dealers hurt by the omissions scandal, according to the wall street journal. The scandal affected half of a million vehicles in the u. S. Shery blackstone expects to take the Invitation Homes unit public in the first half of next year. Thes the Biggest Company in home rental business. It would go public as a Real Estate Investment trust. Thats your business flash up eight. Lets turn now to the deal of the day. Vonnie softbank buying a chip designer, i rulings. Deal is cominghe into focus, being so soon after the brexit vote. You can see the very in performances against the pound and the yen, which has been climbing. Earlier today we talked with jeremy in london about what they have to gain from the deal. Money, that has a lot to do with it. A 43 premium, thats hard to turn down. It will take a substantial investment and softbank is committing to investing heavily , committing to doubling the workforce in the u. K. , keep the headquarters here. I think they are gaining a lot of Financial Support and have potentially from the deal. You spoke to the ceo. He said that this didnt really have to do with brexit, this is about the future. that was interesting. If you look at the price that they paid against the yen, that may have made the deal slightly cheaper, although softbank is saying that arm stock has risen because of their revenue that is dollardenominated. They are saying that if they had done the deal before brexit, they could pay 15 less than they did today. For them again, i think it tells a lot to u. S. Companies and companies in asia. They are not looking at selling to companies in europe. They are not affected by that aspect of exit. Engineers the other countries, there was concern about potential immigration issues Going Forward and they hope that that is resolved in a satisfactory way. Culturesl the combine. Will they combine well . Or might there be potential for difficulty there . I think that softbank is saying that they will leave arm to their own devices. They are trying to retain senior management, keeping their headquarters in the u. K. , they will be allowed to operate as an independent unit. Whether our synergies, i think that softbank uses a lot of handsets in their mobile phone business. Many have designed chips, i should say, in them. I think that there could culturally be potential for a fairly good fit. Its hard to anticipate that there would be major cultural clashes. The way they tend to run most of their investments. They wont be able to get as much softbank help because they are in so much debt at this point. What happens to sprint . Are there other losers in this deal . Jeremy thats a really good question. Sprint, you had the ceo of softbank saying that he thinks that sprint can stand on its own and wont need another cash infusion or loan. That it is going to be cash flow positive Going Forward. I think that softbank is saying they dont sprint needs anymore support. Other losers in the field . Hard to say. Some of the competitors of arm will not be happy that they have to compete with arm with the softbank financial backing behind it. Vonnie there we go, that was some of our conversation with jeremy kahn, earlier today. Shery financials are in the green led by bank of america. Management says they plan to cut expenses. Financials up by 4 10 of 1 . This is bloomberg. Shery breaking news on fiat. The company has concert confirmed that there is an ongoing investigation. This was after the news earlier that they were boards were investigating fiat chrysler. We will continue to monitor the news as it comes in. They dropped off the news of the report of the investigation back to flat, down to three quarters of 1 . Vonnie jpmorgan and citigroup both posted profits that the estimates as fixed income trading revenue and loan growth jumped. Where does bank of america fit into the picture . Its one of the top performers in the s p 500 today after reporting revenue increase more than expected. Brian moynahan this outlook on a conference call. On theed this outlook conference call. Brian the question is, can we grow earnings without rates improving . We believe that we surely can. You believe we can do that through continued success on things like expense management, keeping an eye on stabilized growing fees with continued managed interest. Laura joins us for more. Great to see you again. Break down this morning for us and if you saw anything interesting there. Laura this was kind of a mixed bag. You had to fight to find anything wrong with their earnings. Expensespensive falling, which is great weary of they have been one of the banks that has been sort of verdant more than the others with legal costs from the financial crisis. But they have not done as well with loan growth, for example, and did not have as good net interest margins. And they did not have as good of a quarter as we were hoping for. You say good on expenses, nevertheless its higher than other big thanks. In the context of the bank of america picture, things have been high for a long time, but they have been pulling it down. It has been harder for them to find expenses to cut. On the call this morning, Brian Moynihan was talking about laces where they might see more of that. He did mention for example on the trading of fixed income and equities as well, some of these banks are saying that maybe we can cut people more on the veto side, but moynihan pointed to the autumn is a nation of these jobs for training. Vonnie jpmorgan and citigroup already did better than expected. How does that play for Goldman Sachs . Laura they have a different Business Model than these other banks. They take positive risks. So, we cant really look into that, but on the trading and Investment Management side of things we will be looking at the results a stumble we have seen from these other banks. Going back to bank of america, we were told by moynahan that we should probably expect midsingle digits of growth on training. What we actually saw was 12 up. Hopefully we will get a bit more color on the right side, you know, if its goldman or morgan stanley. What about loan growth . Can bank of america expect to do that . That thingsd say the company will continue to in thee its net interest money it gets from lending. We can presume that he probably wants to lend more, make more loans. We did see a big jump in lending. 3 and weween 2 and are not going to relax our standards. We are going to continue to make the Capital Loans that we would want to make. In the bank of america picture, if you think about that they were her a countrywide. They said that these were loans that they would never make again, if they had the chance. Quickly, Goldman Sachs, morgan stanley, all reporting this week. What should they be focusing on . Shery those are big laura those are big trading firms, they will want that going. And we have active managers who will be reporting. Keller, thank you. 2. 8 continuing a decline today. Still ahead, the commodities close. Take a look at where brent is trading right now. [hip hop beat] olympics 2016, let me get you on my level. So you never miss a moment, miss a minute, miss a medal. Why settle when you can have it all . Soccer to wrestling. Track and field to basketball. Fencing to cycling. Diving to balance beam. All you have to sa is, show me, and boom its on the screen from the bottom of the mat, to the couch where you at . Show me the latest medal count xfinitys where its at. Welcome to it all. Comcast nbcuniversal is proud to bring you coverage of the rio olympic games. Vonnie here in new york, this is bloomberg. Im vonnie quinn. Shery and im sharing. Lets head to the markets desk, with julie hyman. How is oil doing . Julie we have seen a slide across much of the complex today. Not just energy, a lot of the metals have been seeing pain today. Ons not exactly a huge risk or risk off environment today. But crude oil prices are down more than 1 today. We did see a boost on friday as coming out ofted turkey and there was speculation that supplies might be disrupted. Indeed, that did not wind up being the case. Thats one of the reasons its being described to the decline in oil prices today. Closer to 45 per barrel, bouncing up a little bit from the lows, nonetheless still taking a hit. Prices, theyline are lower by more than 2 . Seem to bee doesnt a lot of fundamental news driving at lower, but we are seeing a general slump commodities today. We have been watching gold prices, with gold pulling back as well. Looks like it is just now seeing a bit of a bounce year. Up 1 10you can call it of 1 . We had a decline in speculative, bullish bets. Take a look at the bloomberg. This looks at the cftc data on hedge funds and others regulators and the long thats that they are placing on gold prices. We saw the klein for the first time in about six. They had been at near record levels. Just a little bit of bullish sentiment coming off for gold prices. Lets check the headlines of birds first world news. Mark . Weeks afterhan two the murders of five officers in dallas, texas, the u. S. Attorney general again condemning a deadly ambush targeting Law Enforcement, this time in baton rouge, louisiana. The attorney general a dress the National Organization of black Law Enforcement executives. I condemn these acts of violence in the strongest terms possible. They are so counterproductive to what we are trying to do. Market three officers were wounded. The government, identified as gavin long of missouri, sought out officers. 2016 Republican National convention has been gaveled to her. The theme of the first night is make america safe again. The Convention Book home thursday with Donald Trumps acceptance of the partys nomination. A number of named elect officials in republican donors are staying away. John kerry is expressing concern with the turkish response to a failed coup attempt. Belgium,ls and in along