Apple is gearing up to release the next iteration as early as next month. It includes more advanced capabilities and upgraded hardware, but is it too similar to the last design to get the consumer excited . We are about 30 minutes into the trading day in the u. S. Now. Lets head to the markets desk were julie hyman has the latest. Julie i want to start with oil prices that as having a rebound effect in equity markets as well. Oil almost at 43 a barrel. We had some commentary out from the opec president in a statement on that organizations website, saying that the countrys are in constant deliberations on stabilizing the market. Theyre going to hold informal talks in algiers next month. A couple delegates familiar with the plans here say there are no plans to run new the failed push for production freeze. Nonetheless we are seeing this bounds in oil prices today. This is a missed what has been a very negative environment for oil. We had entered a bear market and are still theres still a lot of hessma has in his mouth pessimism out there. The price of oil that has been declining and reentering the bear market. Short positions have increased to a record. Much optimism that this low bit of a bounce that we are seen in oil prices is going to continue. The feedthrough of this, it is what were seeing in stocks today. Energy stocks are the best performing group. We are seeing that lead the gains. Health care is pulling back the most down three quarters of 1 . What does it equal overall for equities . Lets take a look at the major averages to find out we do not have a lot of Movement Today into theinutes session, we had stocks bouncing th between gains and losses. Friday notwithstanding, we sort of resumed this drift if you will and equity markets post the jobs report on friday. The downward pressure is winning the thingsof causing that is allergan. A lot of the large cap pharma stacks are down and they are actually beating analyst estimates. Sales are better than estimated for botox. Up 1. 5 , wasll, slightly below what analysts had been anticipating. We are also seeing a pullback in shares of netflix this morning. Late last week, there was some speculation bubbling up about alibaba potentially making investments or attention purchasing netflix. There are reports now that that is not the case and we are seen netflix down by 3 . Nejra julie, we are about 90 minutes away from the European Equity lets have a look at where we are trading. Looking at some of the indices and you can see that germanys dax index is up 6 10 of a percent. It is heading for its highest close of the year and we will talk more about that index later in the program. Unchanged,free much but it is on a pretty big losing streak. It is again something we will talk about more in the show and the eurodollar pretty much unchanged as well. If you look at the stoxx 600, heading for its biggest threeday gain in three weeks. If you look at it over one day today, were pretty much unchanged at the moment. Looking at the breakdown of Industry Groups as well, it is materials, stocks, and financials that are very much leading the gains. That with Commodity Prices rising. We have also had some banks gaining like barclays up after it was upgraded to outperform. The one stock that i wanted to highlight is one the biggest gainers on the stoxx 600, up nl. right now post an the dutch delivery forecast a reduction of Dividend Payments in 2017. Lets check in on the first word news this morning. Resumed airlines has limited departures after a computer crash forced a worldwide grounding. A power outage in atlanta triggered a shutdown in deltas computer system. Deltas is the worldwide crown stop has now been lifted, but cancellations and delays will continue. Iraq has received a new batch of f16 fighting falcon aircraft from the u. S. With the arrival, iraq has eight f16 in service out of the fighter jets agreed to sell tobacco. To baghdad. A comics put it on a government run hospital. Police say the bombers targeted yers had gathered guests to one guest of a prominent attorney killed earlier in the day. Turkeys president has vowed to keep fighting whatever powers seek to undermine the government. He spoke at a giant rally and that demonstrating turkish unity following last month attempted coup. The government has detained or arrested on was 18,000 people since then, mostly from the military. Terrorist attacks have slammed frances tourism industry. Overnight stays have fallen about 10 this year through july. International flight bookings to the city of nice are down 57 and Luxury Hotel Bookings are the hardest hit category. News 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries, i am alisa. This is bloomberg. Vonnie european and u. S. Equity struggling to hold on to recent gains, although we have seen records in the u. S. Joining us now is the Portfolio Manager at frank when mutual advisers, where she oversees 2. 6 billion in assets,. Ncluding the European Fund it is great to have you in to talk about undervalues and European Companies, but how do you find the values and European Companies when every thing is distorted from bond markets potentially now . Katrina theres a real dichotomy that exist in this market and it is very prevalent in europe where you have very cheap sectors of the market and you have some very expensive sectors of the market. Consumer staples and health care are trading in multiples, but you have financial stocks and other areas trading cheaply. Vonnie if you did into my bloomberg, you brought up valuations and dividend yields. If you see this, you can get the dividend yields and its around 3. 8 . If you change the measure and have a look at pricetoearnings, youre looking at Something Like 13 or 14 . It looks like a fantastic market, but where do you find that value . Katrina were looking for names that meet our evaluation criteria. We own something mcphillips, which is a company and i talked about health care being expensive, but this one isnt. It is transitioning from being an industrial conglomerate to a health care company. Teleflex did it here in the United States and phillips is doing it. Thats an example of an equity available to u. S. Investors. Nejra great to have you could i. If there is this value in the market that investors are think somey do you of them arent picking up on this or are they put off by things like bird brexit . Katrina the brexit risk is really significant and you cannot underestimate the uncertainty that exists at the moment in the market. When they will exit out of the common market. We do not know what the terms of trade are going to be and we do not know when they will start that three years. We think that uncertainty is going to be felt more within the u. K. And less outside of the u. K. Country such as germany and france are not seeing that same kind of pause on investment. I think there are opportunities outside of the u. K. Market. Within the u. K. , there are a lot of multinationals. There are companies that really have their headquarters in the u. K. That will not be very much an impacted by brexit. Nejra with the uncertainty continuing, how do you position yourself . Has anything changed since prebringexit . Katrina opposition on the financial stocks and banks in particular. They had been trading cheaply for a long time. I think with brexit, were just seeing that recovery and earnings that as being pushed out to the right significantly. We are not looking is favorably on the Financial Sector as we brags itbably prebrags i brexit. Vonnie were seeing growth year over year in the euro, but if that does not improve, how long will it take to perform better . Katrina i look at it like a glass of champagne. Yet all of stocks that you own for a particular reason and then it just rises up to the top. I talk about a stock such as phillips. It will take time, but they are within the countries control. Another name we like is a cement company focusing on cash, cost, return on capital. It are things they it is things they can control. It is just a matter of time in the capital looking at. Nejra european stocks are taking longer than u. S. And asian stocks to recover from the post brexit shot. How much longer do investors have to wait for european stocks to get back to that paris brags exit level . Rag katrina we are patient investors. We have a 35year horizon and we are willing to be patient. The problem with europe is that every time it starts growing, something happens. The ukraine crisis stall things and we had the greek crisis and now we have brand exit. I think that is frustrating a lot of investors, but if youre willing to get in there and do the work, there are a lot of good opportunities represented by european equities that are just trading significantly cheaper than their u. S. Counterparts. Nejra just got to get in and do the work. Katrina dudley, Portfolio Manager at franklin advisers. Coming up, a 3 billion ecommerce deal. Can jet. Com help walmarts online sales take flight . We will discuss next. This is bloomberg. Nejra live from london and new ra cehic. M nejt vonnie time for the Bloomberg Business flash. Of pet will meet opec will meet for their previously scheduled november gathering. The meeting will be held in algeria on the sidelines of the energy forum. Oil has been stuck in a range of 40 and 50 for more than he appea a year. Tiaacref has agreed to buy financials. The bank is primarily an online bank and the largest lender by deposits. Is led by roger ferguson. Martha stewart is teaming up with a new cooking show dubbed martha and snoops dinner party. The show debuts this fall on vh1. That is your Bloomberg Business flash. We are taking stock of walmart. Lower after acquiring jet. Com for about 3 billion in cash. The deal underscores hoserious walmart is about igniting its online business. The ceo said last month that it has taken too long to grow. For more, lets bring in shannon could jet. Com started off with great ambitions to be a competitor to amazon. How far along on that road did it get . Shannon it has got a little hundred billion dollars in sales could i. It is very unlikely to make profit, but its our 3 billion now worth 3 billion. In the world of tech, theres a lot of pressure on profits. We are now in the world of retail where there is pressure on profits. That is what analysts are looking for and that is what driving stocks. They just acquired in Unprofitable Company for 3 billion and it could be years and years before they actually see a profit. The founder was saying he thought it would be 2020 when they were profitable. That was when they had this 50 membership fee program that they ended up dropping when customers didnt fall for it. There is no membership fee now. Vonnie what kind of strategy is this for walmart . They deftly happen struggling with their Online Presence trying to compete with the likes of amazon and online retailers. They are very small in comparison. Shannon it shows some of the desperation at walmart right now because they afford billions in for online operations. Sales growth has only been decelerating. Theyve hired engineers and invested an enormous amount of money and have not been able to crack amazons code. Mark lore sold to amazon and was believed to be in the ecommerce world and one of the smartest thinkers. In a way, this is a deal to buy mark lore. You can call from the 3 billion man if you like, but the team around him is one of the big values for walmart. Nejra it is interesting you say that because i wonder what is in it for mark lore . What does this deal means for him . Shannon at one point, it seemed like he and jet had much bigger aspirations than 3 billion. Thats obviously a lot of money, but much bigger aspirations to take on amazon and maybe a 10 billion company. This might say that it looks like things are going to be harder than he initially set out to or the Capital Markets and the investment that he needed to take it for was not going to be there. I asked walmart about what the future role is that he will have and the other people leading ecommerce. They have not commented on that and i assume we will have something later this afternoon on their role going forward. Nejra what kind of reaction could we see from amazon . Shannon it seems like nothing can shake amazon. I did talk to an analyst who follows amazon and he said im not worried about it. Amazon is years and years ahead of everyone. You can never write off a competitor, but their scale, speed, and assortment even walmart despite all the money they spent is only scratching the surface of amazon. I think amazon shares were down a little bit earlier today. This has people scared at amazon just yet. You can never be too paranoid. Nejra shannon pettypiece, thank you very much. Got the olympic spirit . We are talking etfs that track brazil and some of them are among the bestperforming funds of the year. This is bloomberg. Vonnie you are watching bloomberg markets. I am vonnie quinn in new york. It is monday and we are focusing on the 3 trillion etf markets. Many of you may has spent the weekend watching the real olympics. Julie hyman joins us with a look at brazil funds. Julie we have been talking about the olympics in rio, but lets talk about investment in brazil. Michael regan with bloomberg gadfly is joining me woul now. Let us talk about brazilian etfs because many of them have been doing really well this year. Michael with all the pessimism and everything you read about the olympics, it is still full of pessimism. For the markets, it has been pure euphoria for as i brazil. The currency has rallied a lot too. If you are buying an etf, like the main brazilian etf, they are up about twice that, in the 60 percentage. Julie earlier in the year, this has to do with the possibility ilma doma reset dom rousseff would be removed and she was on an interim basis. And move during that sideways or has it continue to go up . Michael theres a lot of optimism about the acting president and his cabinets being called the Economic Dream Team by goldman sachs. The forecast growth for next year is only about 1 in brazil for gdp. The Profit Growth is expected to be better than that. Marketward p is on the are not too high, but the trailing piece are. Julie are there other ones that are more specialized . Michael there are a few good there i. Theres not a huge menu like you have in the u. S. Wzs from ishares, a smallcap fund, and the drf and they are both up more than 70 for the year. The other when i mentioned was levered off three times. Those funds have just gone crazy. 20 and the other is double leveraged. Those things have been on fire. Julie they are always riskier because they could go down by a lot more. Speaking of risks, you mentioned the forecast for gdp for next year. What are some of the other risks potentially associated . Michael you always have political risk. Emerging market in general just tend to be more volatile. Volatilest twice as unrealized volatility compared to the s p 500. It has been a nice write up, but theres always that risk sentiment turning on a dime. Julie i suppose also one of the risks that has been talked about for the emerging markets is when the fed finally start and to tighten a little more significantly. That could put a little dent in the rally we have seen. Michael absolutely. Easy money has really been a driver of the risk on sentiment, especially in the emerging markets. As long as the market is comfortable with what Interest Rates are going to be, it should not be a huge risk. The more uncertainty and the more that there is a chance of a faster scheduled rate increase, that certainly would be. Julie Michael Regan from bloomberg gadfly, thanks for staying going into the etf roll this week. Vonnie julie hyman, thanks, and of course, Michael Regan. You can see all the gadfly columns on bloomberg. Still ahead, the pound falling for the fourth day. It is in danger of dropping low 1. 30. What could stop that . That is next. This is bloomberg. [ hip hop beat throughout ] [ fans cheering ] 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 say 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 live from bloomberg World Headquarters in new york and london, i am vonnie quinn. Vonnie i am nejra cehic nejra i am nejra cehic. Vonnie lets check in on the bluebird first word. Fiveman of the date and australian and american in the capital of kabul. They were taken from their vehicle in front of the american university. And president Vladimir Putin could be in the verge of a significant victory in syria. Russian troops are helping syrian troops bearing down on the city of aleppo. If they capture the city, it would make it harder to oust leader bashar alassad. Confirmed it hanged a Nuclear Scientist they accused information toet the United States. He claimed he had been held and , but the by the u. S. Washington post reports the cia gave the man 5 million to give information about Irans Nuclear program. Belgium opened a terror investigation into the machete attack over the weekend. A Nigerian National using a machete wounded to ban Police Officers before another shot and killed him. The Islamic State claimed responsibility. The emperor of japan signaled he is ready to step down. Akihito said that he was concerned it will become difficult to carry out his duty. He is 80 twoyearold and has been in the ceremonial role in 22 year for 22 years. He would be succeeded by his son not akihito naruhito. Global news 24 hours a day, powered by our 2400 journalists and analysts in more than