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tv   Bloomberg Markets  Bloomberg  July 20, 2016 2:00pm-3:01pm EDT

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quinn. i am vonnie what come to bloomberg markets. david: we are going to los angeles, silicon valley, and , andland in the next hour covering stories in detroit and turkey. results from microsoft and morgan stanley's per optimism that corporate earnings can support further games. then it is day 3 -- day three ofit is the republican national convention at nothing has been by the book. ted cruz speaks tonight. an endorsement, or is is part of a bigger plan? david: the recent market turmoil to caused the price of gold drop to medically. vonnie: the markets close in two hours. let's head to the markets desk
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where julie hyman has the latest. julie: another quiet rally pushing us to new records again for the dow and the s&p 500. 51 points, but i track for a record close. the s&p 500 as well. the nasdaq has been the big leader with a more than 1% gain on the strength of tech heavy earnings. the s&p 500 reached an intraday record over the course the day if you look at trajectory. we saw a record high not that 130.ago, right around we will see if we see more strengthening into the close. as far as strength in earnings -- take a look here. microsoft -- that is the big one contributing to gains in technology, up six point 5% after cloud-based revenue beat estimates. performing best performing and the s&p 500, a uniform maker whose numbers beat estimates, and intuitive
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surgical, the maker of the da vinci surgical robot -- it's numbers beating estimates as more folks, more hospitals ordered robots. vonnie: some deals causing it to move around. julie: it looks like the big year deal is a must a done deal. in beth getting approval for approval of sab miller. that will give it ownership of expanded brands around the globe, but it will give up ownership of the miller brand. sab miller will be taking over. molson-course will buy the sab miller stake. boston beer and constellation brands also happen to be trading higher today. the deal still needs chinese approval, but there are indications that will go ahead. at not saying they are ready to go to court if necessary to proceed with its takeover of
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humana. the company would not comment directly on divestitures or negotiations with the justice department, but our reporting found earlier a person familiar with the situation said it was indeed engaged in those situations. higher.umana trading so, it looks like today, at least, the pendulous swinging toward that pendulum swinging toward optimism. david: let's check on the first word news with mark crumpton. for: the writer responsible melania trump's convention speech has offered to resign, but it was rejected by donald trump. the speech was criticized for borrowing passages from michelle obama's 2008 address. in a letter posted, meredith mciver apologized saying "this
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was my mistake, and i feel horrible for the kasei caused causedia -- harm i melania and mr. trump, as well as mrs. obama." newsjustice department conference, the attorney general said the administration has been working to combat violence against officers for years. ms. lynch: law enforcement is feeling under siege because of these incidents, and they are tragic. many efforts the department is engaging in date back several years to when we saw police officers come under attack, as well as federal agents come under attack during the beginning of the administration. mark: on tuesday, president obama said he would like to make funds available nationwide. attackedrant that train riders with a knife was
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inspired by islamic state, but they say he probably acted alone. olympic official is expecting a final decision sunday on whether the russian team will be banned from next month's games in rio. the international olympic committee is examining the legal options of a blanket ban after a report accusing the sports ministry of overseeing doping of its athletes. russia is not ruling out legal options if it is hit with a total than. 24 hours a day, powered by more than 20 -- 2600 journalists and analysts in more than 120 countries. david: let's get to the main event, earnings season. it is the last big u.s. bank to report and james gorman offered this global outlook.
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mr. gorman: saw these things will be lagging. we need to get past brexit. we need to be convinced china does not have a major issue, which is an ongoing worry, and thirdly, the presidential cycle has not kicked in. eric: we are joined by wiegand. let's pick up on what james gorman was saying about earnings season in the context of all we have seen globally. what have you made of the financial reporting especially? wiegand: it is an interesting time -- seeing positive indications has been encouraging, and to get started with the banks, practically the multinational exposures, where
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they were getting tremendous help from fixed income trading, but also the super regionals getting help on mortgage activity, credit was good, deposits were good. all told, it was a less bad environment that they beat, but on a year-over-year basis, they were generally softer. vonnie: if we can count on banks to offer positivity, can we count on the bull market to continue? mr. wiegand: it would be helpful. to see greater breadth to the market would give credence to the rally we have seen so far. we are seeing, you know, benefits, certainly, as a result of the dollar not been as strong as we have seen in the previous year, but in a year-over-year mpsis this is the toughest co for the s&p 500. our expectations are not that we will see year-over-year improvement, that this would be the fifth consecutive quarter of earnings decline, but we would see greater confidence as we get
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into the back half of the year as far as earnings growth is concerned. david: you mentioned less bad -- what do earnings say about the earnings season in general -- what can you extrapolate from banks about the earnings season as a whole? mr. wiegand: it is specific to the less bad. it was not quite as feared. activity didn't hold up. we still were saying credit growth, as far as financials were concerned. that industry was not getting any benefit, certainly from the interest rate environment. they were getting volume and trading, and not only the flatness of the curve, but the shift lower created pressures for them. but it does suggest the consumer is still in a good position. you still have access to credit. .orporate confidence is fair we are seeing good real estate activity. so, it is not as great as, perhaps, hope, but not as bad as
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feared vonnie:. vonnie:what about the energy patch -- you have not gotten into that yet, and will the drive things lower? that is been the area of greatest disappointment over the past four quarters and we have only seen one company report, and that was showing significant declines, again, being less bad. a common theme here. we need to see more stability in the back half of the year to get that tilting from a negative, or a head when we had seen on operating earnings in the s&p 500 for much of the last year into a positive. it is still a difficult operating environment. we are finally starting to see activity asng and far as rick count is concerned, so that is encouraging, but nothing to be euphoric about. david: what is your forecast for the federal reserve raising rates -- you draw a distinction between tightening and higher rates. you spell it out a little bit. mr. wiegand: there is evidence
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to suggest the economy is not in dire circumstance, but we ultimately believe that one data point -- that certainly been the july release of the june labor figures -- isn't indicative of a trend, and we saw difficult announcements with the may figures released the first week of june. we will need to see consistent execution on behalf of the on the laborering side and see some stability globally. our expectation is we will see tightening during the course of 2016, not likely in september, but most likely during the december timeframe. vonnie: eric wygant, thank you for joining us. coming up next, emmanuel ramin ceo andg over pimco as is facing new pressure at the bond fund. is he the right man for the job? david: the head of commodities
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research francisco blanch says -- highlights from his interviews i had. vonnie: checking on the u.s. majors, the dow up about one-. -- one. of 1%. the nasdaq is 1.2% higher. this is bloomberg. ♪
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david: welcome back to bloomberg markets. i am david gura. vonnie: i am vonnie quinn. a look at the bloomberg business flash. has won-busch inbev approval for its takeover of sab miller, the owner of budweiser. the justice department's
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antitrust division is expected to announce a subsequent agreement that would allow the merger to proceed. david: shareholders have removed a roadblock in the merger of dow chemical and dupont. board members voted in favor of the 50/50 split, which clears the way for a later split into three entities. the name of the combined entity is said to be dow dupont incorporated. vonnie: -- moving closer to shareholder approval -- deutsch of course has less than one week to get 60% of investors on board. for say it is common shareholders to wait until the last 48 hours. and that is your bloomberg business flash update. pimco is getting a new ceo. headuel roman has been the
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of british hedge fund manager man group. he takes over november 1. bill hodge.r for for more, let's bring in bloomberg investing reporter, john gittelsohn in los angeles. is he the right person to take over as ceo? john g.: just to be cliche, time will tell, but he brings a lot of different qualities to the job that will be interesting to see. basically, right now, pimco is this bond house, and they have been struggling to figure out ways to diversify. he has a diverse background with hedge funds. he worked at goldman sachs for 18 years before joining his current company, and he is done a lot of mergers in the positions anyway. things of pimco is trying to do, he has done before. david: what is on his plate more specifically?
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you and i have talked about reversing outflows, management transition there before this. what is he face here at pimco? john g.: well, go rose to -- on ace on ia 40 40-year decline in interest rates. it was, maybe, not easy to be a bond trader, but if rates were going down, down, down, it made it easier. we have reached, theoretically, bottom, or people have been expecting us to be at bottom, so how do they adjust? that giant cyclical economic thing. we have been in slow economic growth. we headed the demographic bubble , there are technology changes, and the big thing is there is competition from all different kinds of financial management companies, most prominently companies like vanguard that charge you know, really, really and they are passively managed, whereas pimco is an
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ifively managed fund, and you're actively managed and you charge higher fees, you have to beat the indices vanguard can give you for cheaper. vonnie: that is for sure, and other his management style. pimco has been known for a public management style. we knew about bill gross, mom and el-erian. what will emmanuel roman's management style be like? from what i have heard and read in a few places, he is not a guy that cultivates, necessarily, a star system. shy.hodge was media he does not like going on tv. manny roman is more of a public guy. three yearsd talk ago that you can find on youtube. it is interesting. he has talked a lot about sports and he talked about baseball data and how baseball data is such a great measure, and how he would like to bring that same
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data management to money management and use data to coach his money managers. just an interesting management approach. i think it will be in to see what he brings. david: you mentioned douglas hodge. in the company's anything about his future plans? john g.: they did not specify. to his when i talk management, a couple of months ago they were searching for -- we had heard they were searching for a ceo. they said no, it is a senior -level type management thing, and one of things they made clear was dug is not going anywhere. he did not have plans to go anywhere. i don't know, you know, how this evolved. the actual decision was made by a committee that he is supposed to sit on, and the committee is headed by dan iversen, the chief investment officer. so, time of tell again, what will happen to doug hodge. vonnie: you brought up the idea
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of passive versus active, and how there is so much pressure because there is so much money going into the vanguard and the vanguard-type passive investments. how will pimco give good return for fees, if you like? john g.: well, i think if you listen to what roman said, you look at the data and you use data to give you stronger returns. a lot of his hedge funds that he has run they are very quiet -- quantitative oriented. use mathematical skills, analytics. the other way pimco is expected to improve returns is to private equity, hedge funds, where roman has experience, and then real estate and different investment securities that are not the traditional bond wheelhouse. pimco has not succeeded in the past in doing equities, and equities is not high on their menu right now.
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they will not be a big stock-picking place. they have, maybe, given up on that, but they will look at other investments and securities to branch out into more and become a more diverse company. david: john, thanks much. john gittelsohn, berg los angeles. , the factory breathing life into two -- detroit two tires at a time. you are looking at live images of donald trump arriving in cleveland. he and his running mate mike pence are headed to a rally ahead of the convention tonight. it is all on live go. this is bloomberg. ♪
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david: this is bloomberg markets. detroit might be known as motor city, but are not for no one make it known as mexico city. tim higgins wrote the story. you profile the creator of young guy.es, a how did he come up with the idea -- a young company as well. tim: here is a guy -- a canadian businessman who had the crazy dream of bringing bicycle manufacturing to the u.s., an industry that went away, chasing cheaper manufacturing in asia. vonnie: tell us about these bicycles and what makes it different. tim: the key is he is making it in the u.s.. they are welded in detroit by detroit welders, the steel is meant, they go out to 300 retailers across the country, and the magic that is going on
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is he has won a contract to assemble bikes for the motivate bike sharing program. they are the company behind, as you know in new york, the citi bike program. david: how did he get that contract -- how do they settle markis country question --company? called -- cold calling places, and motivate has some aggressive expansion plans across the u.s.. andot in contact with them, they were looking for manufacturing in the states. there are not a lot of places that do this type of work. they really like his set up and willingness to work with them. vonnie: all right. our thanks to tim higgins. you can read his story in the ,"test "bloomberg businessweek and hear stories from reporters
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every weekend on bloomberg television. more news on this -- cutting its lastast to earnings below year and that is interesting because it is seen airline capacity passenger growth at 5.4% for the year. it fell 6%. david: the u.s. file they settle agreement to allow the beer merger to go through -- allowing b inbev to merge with sab miller. we are looking at live pictures of donald trump. he is there with mike pence. donald trump and mike pence scheduled to hold a rally in cleveland this afternoon before heading over to the quicken loans arena in downtown arena for more of the proceedings of the republican national convention.
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it was pretty remarkable -- he arrived the helicopter. donald trump, who has spoken every night of the convention. no word if he will be speaking tonight. we're expecting ted cruz, his former opponent, to address the convention there in cleveland tonight. that onwatch more of live go, of course. still ahead on bloomberg markets, the commodities close is coming up. francisco blanch appeared on bloomberg tv earlier today. he is saying there is political risk building into the gold market. should we be watching for more movement out of the safe asset? we will find out ahead. this is bloomberg. ♪ [hip hop beat]
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david: from bloomberg world headquarters in new york, this is bloomberg markets. i am david gura. vonnie: time vonnie quinn. commodities markets are closing in new york. let's head to the markets desk. julie hyman. julie: i want to start with oil -- we get the weekly inventory data, and it was the ninth straight week of declines. we saw volatility around the announcement because there was an unexpected build in gasoline, but oil has turned a little more decisively higher now, 44. 85, still above $40 a barrel. this looks at the weekly change. here are the nine straight weeks
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we have seen declining inventories. that is the longest streak of declines going back to 1982. so, there is a significant work down now that is occurring in the inventories in the united states -- the oversupply in the united states. that is seen as encouraging on the part of folks who invest in energy. let's look elsewhere, now. gasoline, for example. we have seen some declines in retail gasoline prices -- good news for folks driving around this summer. gas has been down every day but one going back to june 11, so quite a losing streak we have seen in oil prices. elsewhere, in contrast with oil prices, and gas is pulling back to .5%. one of the things hurting some of the commodities has been a gain in u.s. dollars. we have seen, oddities trade -- commodity trade inversely.
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there is a midwest heat wave affecting livestock. we are seeing live hog prices down for 12 days in a row -- lean hogs and cattle. cattle is now at the lowest since 2011 in terms of pricing. good news, i suppose, for your grill the summer, but not so good news for the farmers. david: the upside there. thank you, julie. vonnie: gold futures fell to a three-me week low -- three-week low. despite the putback, gold is up 25% this year. earlier, bloomberg spoke with francisco blanch, the head of commodities and derivatives research at the of a merrill lynch on his bullish call. have a listen. think the: we pressure on interest rate is going to remain, and that is really the main driver of gold these days. if you think about gold in the
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past, it used to be more driven by the u.s. dollar and certainly by movements in the commodity market like oil. this is a new world out there. one. of government bonds are yielding negative, and that is starting to attract a lot of people into the gold market. that is what i defined as a portfolio rotation trade. we actually have a chart illustrates that -- the correlation is now about -- hold on a second there. hold on, reset. bear with me here. there we go. basically, we're looking at the correlation about half a percent on a negative correlation. we have seen that in other periods. if we do get a 1% yield on the 10-year, do you have to revise up your forecast? mr. blanch: it is possible. i don't think we're going to get there quickly. the chances of getting and 1% on
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the 10-year are still pretty low for the remainder of the year, but there are political risks building to the gold market as well. we have an italian referendum coming up, we have the u.s. election in november, and we also have french and german elections. so, you're going to have, effectively more than half of the g7 going through different u.s. tomorrow periods, and we have had two events on the political side within the g7 that have been bullish for gold. the u.k. brexit story has been bullish, pulling rates lower, and also i think the election in japan with the possibility of money paints a positive outlook for the gold market once again. w.: geopolitics have come to the forefront. give us a sense, without taking
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a position on what should happen, what sorts of decisions could raise the price of gold from where we are now? i think, certainly, more protest votes in france and germany would be positive for gold prices because they probably lead to lower interest rates. also, the u.s. election is going to bring a fair amount of uncertainty to the gold price. prettyr, there are diverging policies here, and we're still trying to figure out what each party is going to say and do, but at this point, if we have, say, for example, proposals to increase the u.s. proposalsficantly, or to, maybe, take a stand at the independence of the central differentwe have seen opinions as to how much power
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the executive in the u.s. should gather -- all of that could lead to higher gold prices get a think of politics are complicated. i am more focused on developed markets, emerging workers. gold at this point is more developed market game than an emerging market game, because i do think it is about populism, politics, and all the stuff that goes along with it. eye-opener when it comes to gold. if we have a few of those positions that are completely altering the landscape, i think that is going to be pretty negative for interest rates, and potentially pretty good for gold. david: and that was francisco blanch of bank of america, merrill lynch. --mark: indiana governor and vice president candidate mike pence will speak at the pelican convention along with ted cruz, who earlier this week said he had no plans to
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but thedonald trump, trump campaign manager said he expects a speech from cruise that will be pleasing to the trump campaign manager republicans. democrats are waiting to find out hillary clinton's choice for running mate. reports shek times" will appear or present her choice saturday in a florida. state-run media says the government is moving to revoke licenses of 21,000 teachers at private schools. authorities are also closing -- closing 626 private schools that are under investigation for crimes against the constitutional order. so far, about 60,000 people have been detained or sanctioned. chicago is dealing with an unprecedented surge in gun violence this year, and many of the cities youngest residents are victims. 15 children younger than 10 have
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been shot, seven more than the year.eriod last no child has died from the gunfire, which authorities say is often gained related. the parents of a toddler killed by an alligator at walt disney florida say they have no plans to file a lawsuit. it is unclear if the family has reached a financial settlement. the president of disney world says the company thing is to provide support for the family, but did not provide additional details. authorities say an alligator pulled lane graves into the water. his father matt says a second alligator attacked him as he tried to save his son. global news 24 hours a day, powered by our 2600 journalists in more than 120 news bureaus around the world. -- countries. i am mark crumpton. coming up, we go lock to the site of the republican national convention in cleveland. we will discuss what is going on
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behind the scenes and where we can expect tonight. reportingtel is earnings after the what are they doing to push beyond the chipmaker image as the cloud catches on. we head to san francisco. david: 2:38 p.m. on wall street. let's check the major indices -- the nasdaq up 1.1%, 56 points, at 5092, and the s&p up almost .5%, 2173. this is bloomberg. ♪
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david: this is bloomberg markets. i am david gura. vonnie: and i am vonnie quinn. time for the latest bloomberg does this business flash, a look at some of the biggest business stories in the news right now. aetna says it is ready to go to court to defend its takeover of rival humana. u.s. regulators say the megadeal threatens competition and are considering a lawsuit to block the takeover. a person familiar with the matter says at the is prepared waysgue there are several to present a plan to the elderly. hsbc: a senior manager at holdings has been arrested in new york for his role to rake conspiracy benchmarks -- rig conspiracy benchmarks. mark johnson is the first person to be charged. his arrest comes more than a year after five mobile banks pleaded guilty to raping
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currency benchmarks. it just bc with not part of those cases. asking walmart is providers to remove eight chemicals from its product. the list of chemicals was created with the help of the environmental defense fund. and that is your bloomberg business flash update. david: now to politics, where donald trump is the official gop presidential nominee. vp, few hours, his pick for mike pence will address the convention. that might not be what people are paying the most attention to. sahil kapur joins us. we will hear from ted cruz, one time running of donald trump -- at this point, how much do we know about what he might or might not say? sahil: it is unclear. i do not think we will see a full throttled endorsement of donald trump in the round that other candidates like chris christie have done.
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ted cruz, obviously was donald trump's last bitter rival in the primary. things got very personal. is cruz, the other hand, loyal to many of his republican colleagues. he wants to keep a senate where he is in the majority, and he is expected to say words of support for the republican party, the republican ticket, but i would not expect a full endorsement of donald trump. in all what is his goal of this -- he agreed to do it in the first place. what is the one out of it? maintain hists to national stature as a conservative hero. he is beloved by evangelicals in various segments of the republican base. he is only 45 years old, and is known to have national ambitions in the future. 2020y want to come back in or 2024 and run again. he wants to keep his national base strong. there are numerous senators on
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the ballot that he wants to help, and he wants to propel to victory. david: here it is, wednesday, and we are about a speech on monday, melania trump's speech introducing herself to the electorate and there were allegations of plagiarism. what have we learned about who might have been responsible for passengers -- passages seem cribbed from a speech from a shell obama? sahil: a day and a half that -- after that speech, the trunk campaign put out a statement today around in white named someone in the organization, an employee, who the trump campaign said helped write the speech, and she put out a statement saying she was responsible for the crimped passages from michelle obama's 2008 speech. there were striking similarities. it seemed like a clear case of plagiarism. after defending for a while, the
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trump campaign decided this person will take the fall. she said in her statement she offered to resign, but trump refuse to accept her resignation. nobody is being fired for this, but at least we know who is being taken -- taking responsibility for it. vonnie: i am curious about chris christie's speech and the response -- he was one of the people that energize the floor, if you like. what kind of momentum will that bring the campaign, and what does chris christie get out of that? sahil: it was an extremely anti-hillary clinton speech. he really debates. oneyone in the arena -- no has any sympathies toward hillary clinton, and everyone wants to defeat her. chris christie played to those sentiments, and even ended up up"ing a bizarre "lock her chant, which jew criticism from conservatives who said we do not lock up political opponents --
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which true criticism from conservatives said we don't lock a political opponents. chris christie -- this is essentially red meat for the base. david: a lot was made after one about how many people were in the arena at any given point -- a lot of talk about the programming -- how there was not much of a crescendo, the memento was off. what have people been saying about the way the program has been structured so far? sahil: it is not the most organized convention there ever was. there have been a lot of empty seats throughout, including in prime time addresses. regardingsome chaos the rules, which we discussed at the time, and at the same time, knights of the convention have not been ending on a high note. you had donald trump junior, the breakout star of the evening by a wide consensus, and after him there were several other speakers that spoke and ended the night on less than a highest
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possible note. the organization has been scattered, and perhaps will we should expect from donald trump -- an erratic campaign style commend this is his convention. he is bringing a lot of that style to this convention. vonnie: a huge night for mike pence. what can we expect? sahil: we should expect mike pence to introduce himself to the country. he is not well known. nowhere near the name recognition donald trump has and a number of other candidates had. mike pence will make the case to traditional conservatives, social conservatives, and tea party activists who are skeptical of donald trump. mike pence has been in politics -- has been an elected officer for 15 years, including as a congressman, and now as indiana governor. he is connections two factions of the republican party. he is trusted by factions that do not trust donald trump here he will try to connect you with them in language they understand. david: appreciate that.
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sahil kapur from inside quickens loan arena -- quicken loans arena. investors want to see if the company's growing outside of the pc business. this is bloomberg. ♪
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david: this is bloomberg markets. i am david gura. vonnie: i am vonnie quinn. let's look at u.s. market starting with the major indices. the dow jones industrial average of about one-third of 1%. s&p 500 is up about .5%. the nasdaq, the leader all day long, 1.1% higher. we can look at cross asset moves vix index.index --
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we have a turkish lira at a record -- 3.0844. up two thirds of a percent at that point. not to silicon valley and chipmaker, intel, which reports earnings in a few hours. intel is losing revenue outside of its core pc market. they are also weighing job cuts and the sale of the mcafee unit to reduce costs. emily chang joins us with more. what is the first thing you'll be looking at in the earnings report? emily: hey, there, vonnie. first, we look for any signs the pc market might be bottoming out, improving -- it was reported earlier this year the decline was slowing down. intel is a business that has, of course, relied for decades on the health of the pc market.
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the decline of the pc market has hurt the business. now they are pivoting away from the business and focusing on non-see businesses, however, the business still depends greatly on the health of this market. we will be talking to them about if they see anything signs in particular that the market is coming back. then there will be two more new things. they need to show growth and non-pc businesses. number one, the cloud. they have been focusing on the cloud business. qualcomm.d to -- that qualcomm may be losing a chunk of business. many analysts believe apple is giving that business to intel. intel has not confirmed this. they aredid say assuming one of the large customers will be giving a shot competitor, and this would be a huge win for intel. they have been struggling for so long to whether the transition
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to mobile. we'll be looking for any indication that that is indeed happening, how big the wing would actually be at, indeed, apple is giving orders to intel. of overall revenue, analysts are expecting something like 13.5 billion dollars in revenue, slightly shy of estimates, but nothing too dramatic. david: you mentioned playoffs -- layoffs announced in april. we are talking about more than 10% of the workforce, i believe. any sense of how that is going, what that is doing to the bottom line, and if there might be more layoffs to come? emily: in april, the ceo announced they would lay off 12,000 people, 11% of the workforce, and this is part of the restructuring plan, away from the pc-focused part of the business toward businesses in mobile, internet, cloud. see how the to
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layoffs are going -- how many have left the company so far, and it will give an indication of how many resources they have to focus on the other things. we do not know how fast these layoffs are going to proceed. there will be a significant factor we will be watching. vonnie: what about the mcafee unit -- will we hear anything about plans for that? emily: bright. we have reported that intel is potentially talking to private equity firms about selling their mcafee business. this was a business they acquired when the pc market was more healthy. anti-virus service is on computers. we have heard they have been talking to banks about potentially doing some sort of strategic deal. the financial times has reported they are considering their options. we don't know yet what intel plans to do with mcafee. again, we will be looking for signs -- any kind of information as to whether or not they sell this business. david: thanks so much, emily
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chang, joining us from san francisco. you can catch her interview with intel -- with ceo stacy smith. coming up in the next hour of bloomberg markets, we are focusing on valiant. the company has been struggling with a new ceo, but have they turned the corner. we're talking to anthony veritasi, president at research next. this is bloomberg. ♪
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david: it is 12:00 p.m. in san francisco, 3:00 p.m. in new york, and 8:00 p.m. in london. i am david gura. vonnie: i am vonnie quinn.
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welcome to bloomberg markets. we are covering stories out of cleveland, wall street, washington, d.c., and stockholm over the next hour. stocks are steadily climbing things to positive earnings results, but after the brexit market selloff and rapid recovery, our investors jumping into the market for the wrong reasons? david: then a win for valeant, with the drugmaker winning approval for two drugs and bill ackman voicing confidence on a conference call. over the past 10 years, spotify has grown from swedish tech startup to giant, but could a possible ipo cause wall street to turn down the volume? one hour from the close of trading. let's head to the markets desk julie hyman has the latest. julie: we're on set for

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