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tv   Bloomberg Markets  Bloomberg  August 1, 2016 3:00pm-4:01pm EDT

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david: from bloomberg world headquarters in new york, i am david gura. vonnie: i am vonnie quinn. here is what we are watching. the centers for disease control warning pregnant women or those thinking of getting pregnant not to travel to miami after it identified at least 14 cases of zika transmitted by mosquitoes. the director joins us on the latest. david: health care is one of the worst performing industries on the s&p 500 on pace for the weakest performance since 2010. we will hear from a strategist who favors the industry. vonnie: speculators are bearers on the pound -- bearish on the pound ahead of the bank of england meeting. the central bank is expected to cut rates for the first time in seven years. david: we are one hour from the
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close of trade. julie hyman is standing by. the story this afternoon all about oil as we see it returns we bear market. julie: we have been talking about oil falling below $40 a barrel at some point today. this is on the outlook for the to not be abating at a fast enough pace to justify the price of oil. we are seeing a pullback to just over $40 a barrel at the moment. we saw a big increase in net shorts in terms of oil. we saw a big surge, the biggest on record on a weekly basis. look at oil since its highs in june. you see this bear market we have entered. a pullback of 22% as we were talking about half an hour ago. now trading below the 200-day average. as it has worsened over the day, we have seen stocks worsen as well. the nasdaq the lone gain of the three major averages.
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energy is a big part of the story today. that is the biggest drag on the s&p 500. you can see some of the big percentage declines we are seeing. many accelerating over the course of the day. they are all slumping in today's session. we have seen a divergence in stocks and oil. historically and recently history -- in recent history, they have come back together. we will see what happens this time around. david: this morning, the news was about tesla and solar city and that merger taking place. julie: there had been talk about tesla buying solar city. elon musk owns both. the price was cut for the deal, so the price going down a little bit which is one of the reasons why silver city is down. buyout by ang to a
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chinese company, also going private. verizonr deal has been buying a company for $2.4 billion, a trucking company based in ireland. it is still earnings season. that is the reminder. we will get back to it. it has been less busy today. david: thank you very much. let's get a check of the headlines. mark crumpton has more from our newsroom. carolina, ath federal judge has decided not to rule immediately on whether to not part of the state law governing the use of public bathrooms by transgender citizens. the november trial will determine the longer-term prospects. the u.s. and aclu want to block a provision requiring transgender people to use restrooms in many public buildings that match their birth certificates rather than their gender identities. a wildfire near big sur,
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california, continues to burn for a tense day. thousands of homes are threatened. warned it could be another month before the fire is out. near fresno, a new fire doubled in size over the weekend. it damaged some of the 200 homes whose occupants were evacuated. hillary clinton's campaign that the postconvention bounce it was hoping for. the new survey has the former secretary of state leading donald trump 46% to 39%. after the republican convention, a cbs poll had the candidates tied. the new survey says unfavorable views of mrs. clinton have dropped to 50%. iraqis are trying to cope with a scorching heat wave with temperatures in baghdad soaring above 118 degrees fahrenheit or 48 degrees celsius. the oppressive heat is adding to the country's problems. it already suffers from a lack of electricity.
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ae government has announced mandatory two-day holiday due to rising temperatures. jamaica has issued an alert for a storm system gaining strength in the caribbean. the meteorological service is advising small vessels to return to shore as the storm produces strong winds and heavy rain. u.s. national hurricane center says the system has winds of up to 45 miles per hour and appears headed for central america. if it strengthens, it could be upgraded to a tropical storm. dayal news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. back to you. vonnie: let's turn to health care stocks. it is one of the worst performing industries on the s&p 500 this year. banks tracked 11 by bloomberg give health care there must bullish recommendation. withng us is jason pride
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more than $30 billion in assets under management. if you take everything together, maybe not such a great year. if you take the s&p 500 health care index, we have seen a good 5% gain. is there more to it? jason: sure. thanks for having me on. people need to recognize we are in the back part of an economic expansion. valuations on u.s. equities are a little bit above average. and yet your alternatives of finding protection in this world seem to be fairly punitive. you can buy bonds, you get a 1.6% interest rate. not a very good return. you can take is you can position your equity portfolio defensively. you can do that with telecom in orlities -- and utilities
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use something like health care which acts like a fairly defensive sector. when the economy slows, their earnings do not dip as much. that sector has not performed as well on a year-to-date basis. it tends to be the most contracted of any of the major sectors considered defensive. it provides a reasonable dividend yield and growth prospects for long-term investors. we have found that is an ideal place to place some client assets. having said all of this, we are not all about just sector allocation rotation. we think you take defensive positioning on the way down to the stock level now. that means you're finding the more stable companies in industrials, technology, even financials, and energy in overall portfolio. you are trying to keep your equity weighting high but remain defensive by positioning with businesses more capable of sustaining earnings growth image
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or a slow growth environment. david: before we talk more probably about the markets, i wanted to ask quickly about health care. within it, what do you find most attractive? jason: we are not a big fan of the lottery ticket biotech stocks. a lot of those are companies were you are waiting on the chance of f.d.a. approval to make money. the majority of those are probably worth altogether more than the actual patents are at this point in time because that lottery-like effect investors have. having said that, there are great pharmaceuticals companies, great established companies, great medical device companies, and great health care service companies that trade at reasonable valuations and give you good prospects for growth. just not the eye-popping numbers you get from a very successful single product biotech company. vonnie: when you say that your don'ts, and they say we
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know who the next president is going to be or the policies and health care, what do you say? the presidential situation could be a potential headwind to the health care sister -- sector. you have to mark that as potential. one president or person going into office does not make policies come through exactly as planned. it may mean policies and in that direction -- inch in that direction. we will have a divided president versus congress no matter how we look at it because the likelihood of either party getting a lion's share of control over congress is the minimus. any policies put through will be hard to come by. there will probably be compromised. pharmaceuticals will have solid business models going forward and worth the valuations you pay today. david: is a diversification is the order of the day. are you holding negative
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yielding assets? we have a fairly strong recommendation to our clients not to hold negative yielding assets. the bottom line is if you hold those assets to maturity, you're guaranteed to come out with less money. we don't think that makes sense for investors. we think there are better ways to position for long-term growth that still provide protection. one thing we are talking about is defensive equities. they face a potential finder being headquartered in ireland. could that happen to drug companies that have moved their headquarters? could that be a headwind? what you see in terms of going forward? jason: i think that will be something investors need to know about when they are looking at individual companies. that is a tax position companies have taken for a fairly long
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time. i would be surprised if it gets erased in the intermediate term on a change of decision immediately. make anybe hesitant to sort of projections that say we will have a dramatic change immediately. put it could be something to be aware of when you are taking a look at the pharmaceutical companies or any companies individually. vonnie: thanks to jason pride, director of investment strategy at glenmede. the florida department of health say there are at least 14 cases of zika in miami. we will speak to director tom frieden on the latest in the battle against the disease. this is bloomberg. ♪
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david: this is "bloomberg markets." i am david gura. vonnie: and i am vonnie quinn. it is time for a look at the biggest business stories in the news now. the biotech giant has been accused of using charities in a scheme to gain billions from u.s. taxpayers according to allegations in a whistleblower lawsuit. it says they donated hundreds of millions of dollars to charities that help patients afford high-priced cancer drugs and then coordinated with the charities to make sure its own drugs were covered. celgene says the accusations are baseless. david: china is considering a sweeping overhaul of the steel industry. steelmakers would be consolidated into two giant companies, one in the north and the other in the south. the consolidation will be part of the government effort to end
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overcapacity in state-run industries. theie: verizon is buying company in the deal. .erizon paid $60 a share the deal is expected to go in q4. david: that is your business flash update. vonnie: let's turn to a developing story. the c.d.c. is warning pregnant women not to travel to an area of miami. 10 new cases of the zika virus have been discovered in the neighborhood north of downtown miami. the number of cases in florida is now 14. joining us from atlanta with the latest on the battle against the disease is dr. tom frieden, director of the c.d.c. thank you for joining us. have these cases often isolated? >> there are 12 cases in this one-long radius, within a 100-50
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meter radius in the winwood area north of downtown miami. these are all cases spread locally by local mosquitoes, showing zika is now here. we are working closely with the florida and local health department to attempt to control mosquitoes so we can limit it to this area. we have no evidence it is beyond this area at this point. david: there were four cases confirmed on friday. now up to 14. 12 in this one square mile area. how confident are you it can be contained and what are the challenges in containing it? >> the tough part is this is a very difficult mosquito to control. it lives indoors and outdoors. it can breed in a few drops of water. the eggs are very sturdy. it bites four or five people at once and for out of five people don't have symptoms. andcan see it spread widely quickly. you can be difficult to kill enough mosquitoes to stop the spread.
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it has been done in florida and elsewhere for other diseases. florida has some of the best mosquito control programs in the country and the world. but this kind of environment, a mixed-use community presents real challenges. vonnie: how did you find these cases in the first place? is there any thought of evacuating when would completely winwoodwould -- completely? >> the critical message is women should not travel to this area if they are pregnant. pregnant women in the area should do everything possible to avoid mosquito bites. these cases were identified because florida is doing intensive evaluation of every diagnosed case to see if it is associated with travel. they have found 14 cases not associated with travel. two resulted in investigations that showed there was no further
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ongoing transmission as far as the evidence available showed. one investigation showed there is evidence of the potential for ongoing spread. that is why we have taken the step of advising pregnant women not to travel to this area. david: i assume the 14 cases are asymptomatic. it makes me wonder about the challenges of surveillance in this part of florida and the nation as a whole. how difficult is surveillance at the c.d.c.? >> it is difficult to track these infections because four out of five are asymptomatic. our laboratories and others have developed really good tests to identify recent infection. we have done community surveys which use urine tests to identify infection in the past couple of weeks. those did identify six asymptomatic infections in the community within this area.
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in addition, there were some people at workplaces who had symptoms and were diagnosed. that is why we are sending the message to doctors. if you have patience from this area who have symptoms, get them tested. for obstetricians, if women have been in this area, test them for zika. vonnie: who are these cases? are they pregnant women? >> the details you would have to get from the florida health department. the test results we have seen so far in this area of "what'd you miss?" -- winwood have not identified pregnant women to my knowledge. businessweekerg was looking at how funding is allocated throughout florida on a county by county basis. some counties spend quite a bit on mosquito eradication, some less. we have had congress stalled when it comes to funding for fighting zika. how much of a problem is that? there is art-term --
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short-term and longer to issue. in the short-term issue, we need to rebuild the mosquito control infrastructure in the country and retool for this kind of mosquito because the tracking and control are different. that is really important for communities throughout the u.s. longer time, we need better ways to control mosquitoes, better ways to combine tools. that is why robust resources are so important so we can have a robust response to protect t zika andagainst mosquito mosquito borne threats. is their way to mitigate effects before it reaches the baby? >> we have no treatment. there are vaccines that will shortly be in trials. that is promising but probably be years before they are available. that is why it is so important to protect women
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themselves against mosquito bites, not travel to the area, and we control mosquitoes as effectively as possible. ok with thed you be money traveling to the greater miami area? >> yes, there is no reason to think other parts of miami are at greater risk. this one-mile radius is a buffer pathsf about five flight from the mosquito -- of the mosquito from the area where all cases were diagnosed. david: we appreciate your time. that is c.d.c.'s director dr. tom frieden joining us. avis reports earnings after the bell tomorrow. shares have rebounded year to date. our next guest will explain how to profit. this is bloomberg. ♪
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julie: this is bloomberg. i am julie hyman. it is time for options insight. we are looking at earnings for companies and focused on corporate profits. you are looking at rental car companies which it talked about a few months ago. you are looking back at them again. what is the outlook? we are in the middle of the summer. people presumably have been driving. >> they have. it is peak travel season. it at theabout beginning of june with the view there had been an inflection in pricing that would be positive for the public rental car companies. time washowed at that getting long both. we should august call spreads and buying calls out right in hertz. see the near-term path of
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both stocks divergent so it is worth looking back at them and forward as well because we have given trait in both. julie: what is the difference between them? >> specifically, it is about the mix of business. increase inthe pricing. it has continued through the summer. into the third quarter, we think they put up a solid quarter. we want to roll out long directional exposure to november. we want to keep the same structure, stretch it out to a six-point spread. in november, 40-46 call spread. we paid about one dollar 70 for that. with hertz, they don't have the st. nick's so they're pricing increases -- they don't have the same mix so there increases tend to lag. there could be noise in the
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quarter around that separation. htz has near-term, seen its upside. we want to go out to august, literally three weeks out. we want to sell calls if you are long. you are creating about a 2.1% synthetic dividend over the three weeks. if you are dedicated long, sell that call and taken some premium. julie: thank you so much. we will be watching car rental earnings. this is bloomberg. ♪
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marks -- >> from bloomberg's world headquarters, you are watching "bloomberg markets." let's begin with a check of headlines. mark crumpton has more from the
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newsroom. has: the united states launched new airstrikes against islamic state in libya after the request of the u.n.-backed government. the head of the council says american warplanes hit a tank and several vehicles along the mediterranean in northern libya. the pentagon press secretary says the tank attack was an example of what he called precision strikes by the u.s. president obama says no one has given more for american freedom and security than the families of those who have died for their country. during his speech in atlanta to the annual convention of the disabled american veterans, the president criticized donald trump who faced bipartisan condemnation for remarks criticizing the muslim parents of an army captain killed in iraq. obama: gold star families have made a sacrifice most of us cannot begin to imagine. they represent the very best of our country. they continue to inspire us
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every day. they serve as a powerful reminder of the true strength of america. and we have to do everything we can for those families and honor them and be humbled by them. mark: mr. trump said he was viciously attacked by the army captain's family at the democratic national convention. he added that the focus should be on radical islam. a spokeswoman says the pulse nightclub in orlando will not reopen as a memorial to the dozens killed in a mass shooting last month. sarah brady says there was a bogus instagram posting from the day before that announced the memorial was being built. it has since been taken down. russia's depleted olympic team left for the 2016 rio games. nearly 400 were supposed to go. just a little over 100 boarded
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the plane in moscow. the others have been barred from competing because of their links to doping. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. oliver, back to you. >> the markets close in under 30 minutes. let's go live to the nasdaq with abigail doolittle. >> we have the composite index up, the only one of the three major indexes in the u.s. trading higher. this has everything to do with biotech. picture ofautiful all the sectors in the nasdaq. the top sector now, health care. it is off of its highs. it was up well more than 1%. close to 1%. this is a 14% weighting to the explain whying to
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with the red the nasdaq is higher at this point. behind the health care strength, the biggest boost his bio jen on biogen on news the drug did pass the final stage study. he is saying this is a surprise a lot of analysts were not forcting and the big upside the stock on pace for the best day in about 15 years on the news the company will be receiving a $75 million licensing fee to develop and commercialize this drug. when we think about biotech overall, something we have been tracking is a possible reversal of the ongoing bear market in biotech. when we look at a one-your chart, we see the nasdaq index is starting to peak above a
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trend line marking the bear market. the trendline is not used to mark the trend. you can see it generally by looking at the chart. the trendline is to show the reversal. above the trendline, it looks like we could have the beginning of some sort of reversal in biotech. headlinei think the was largely around the deals that popped up. what is going on with today's deals? solarcity, tesla, what else? >> solarcity and tesla is the big monday deal for the nasdaq after weeks of chatter a deal could go through. news have the solarcity has agreed to be bought by tesla for $2.6 billion. they are trading back near the lows. that tells us investors in solarcity are disappointed by the price tag. as for tesla, if the deal goes through, it will be the largest
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deal in solar power. some lingering concerns could be around the idea that while there is nice vertical integration, on the other hand it is not clear how widely solar will be adopted and how long that could take. plus, tesla has other issues including manufacturing, lofty targets, plus a lot going on for tesla. only time will tell. >> is abigail doolittle at the nasdaq. >> sterling barriers might feel vindicated by the disappointing data showing brexit is probably hitting britain harder than markets previously thought. wcrs go, worldthe currency rankings. i'm looking at the performance of the british pound. i'm looking at the performance of major currencies against the pound since brexit.
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every major currency is up since president -- brexit. yen up nearly 16%. isn the worst performer up nearly 7% against the pound. the dollar up 12%. i want to bring in marc chandler to talk about currency. we have seen the pound get slammed. the latest data shows people continuing to bet against the pound. is that story over? brexit happened, now the pound can do whatever. is there more pain to come? >> i think book first we will probably get a relief rally. it is pricing at 100% confidence the bank of england will cut rates thursday. there could be another qe package and funding for lending
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scheme to banks to lend more money. i think this is what the market is pricing in now. bounce one a sterling this. 130.ve been holding it i think the top end is 135. expectation,tric is there any way the sterling could move up or in another direction? everybody has been waiting for them to make this cut. they held off last month. suggestsnk the data the economy looks like it fell off a cliff. july looks like contraction. maybe even august. bankst: clearly, central are back to setting policy.
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japan will be announcing fiscal stimulus later this week. didld the bank of japan -- the bank of japan take itself out of the game by letting the finance ministry take over? >> i think you are right. when we get through the bank of england this week and rba tonight and reserve bank of new zealand next week, i think the central banks are out of the equation until december. they said we will review the situation in september. the e.c.b. said the same thing. the fed is out of the picture. we don't get a meeting again until september. the big thing before that is when janet yellen speaks at the end of the month. after this week, is the month of august over? >> you mentioned the bank of england mightily funding for lending scheme. scarlet mentioned the bank of japan disappointed, but they did
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do stuff on dollar funding for the banks. trying to do other things other than classic rate cuts or balance sheet expansion. do you think this is a direction we will see more central banks go, trying to experiment with different tools? >> i think that is what we are seeing from the central banks like the e.c.b. and bank of japan and swedish central bank, still pursuing unorthodox policies. e.c.b. is buying corporate bonds now. i think they are moving away from the experiment with negative interest rates. i think the experiment is dangerous. we are not sure how it will pan out in the long run. i cannot see anything good coming from it. >> looking at the broad picture with emerging markets, i think it is interesting coming into this year you sell commodities doing very well. you saw emerging-market assets
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doing well. in the past month or so, there has been a departure where commodities have fallen off. emerging-market index shows a bit of a gap on the chart. the orange line shows equity prices for emerging markets. what is the bull case for keeping them strong? >> when we look at markets, we often look at the same variables but we attach different weightings. the variable that is the big driver is liquidity. between the bank of japan and the e.c.b., they are buying like $180 billion of securities every month. they are pumping the system full of liquidity. people are hunting for yields and returns. i think that is what attracts people to emerging-market equities and bonds and lifting currencies despite what looks to be weakening of demand. the eurozone slow down.
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it looks like the japanese economy might have stagnated. despite weaker commodity prices, the liquidity is keeping the emerging-market assets well bid. scarlet: i want to bring up one final chart. the spanish 10 year yield. the bond yield continues to sink lower on political uncertainty because we don't have a clear picture. why are politics not having a bigger impact? >> people are hungry for yields. you can get 1% in spain right now. very few other countries in europe you can get 1%. you are not even looking at france anymore at 1%. they hunger for yields. the hub for yields is offsetting political considerations.
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this is a low interest rate story driving everything. >> always fascinating to talk to you. scarlet: coming up, watching and waiting. is the september interest-rate increase on the table for the fed? robert kaplan airs his views on the economy's progress. this is bloomberg. ♪
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scarlet: this is bloomberg markets. i'm scarlet fu. it is time for a look at the biggest business stories in the news now. it lost half its right after the federal judge tossed the patent victory against apple. the judge found the tech giant did not receive a fair trial because juries heard arguments from two separate trials.
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this will be the third trial. airlines arethwest calling for dirt kelly to be replaced. they say his focus on cost control has kept southwest from investing in critical technology that has led to stranded passengers. last month, southwest struggled to recover after its computer system crashed. recommended aysts target price of $14 a share. the e-commerce company has developed a strong brand for quirky products. sc has struggled to compete with amazon and will report earnings after market on tuesday. founder out for personal bankruptcy protection. halt theis bid to verdict in the invasion of privacy lawsuit. that is your business flash update. david: the federal reserve has
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plenty of data to digest. given last week's dismal second-quarter report, could the fed be revising figures? here is what the dallas fed president told tom mackenzie in beijing. >> one thing i have learned in this job is the one thing you know about data releases is they are going to be revised at least more than once. i think what i will do in response is basically wait for more data, try to assess. that is certainly on balance at the dallas fed. it causes our gdp forecast for the year two probably still be a little less than 2%. we still believe the consumer is going to be strong in 2016. but it makes us also be very watchful for the next number of data releases to see what trend we are on.
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the one thing i would comment about this gdp report, the consumer was strong in the second quarter gdp. there was inventory adjustment. sometimes those work themselves out as the year goes on, so i will be watching for that. the thesis still for 2016 is the consumer is going to be strong in the united states. i think that is still intact, understanding we will have to watch for more information. >> the markets seem to be gracing the pessimistic about the likelihood of as many rate hikes as the fed has been signaling. are they being overly complacent? >> are they being overly complacent? i think time will tell. our next meeting at the fed is not until september. we will have more data releases between now and then. i think it is too soon to jump to a conclusion.
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we will have to see as the economy unfolds. >> given the uncertainty building up to the november right that most market watchers now, i think it is about 20% are now factoring inany kind of rate hike september. unlikelyht that it is in september given the volatility leading up to the november election? >> i would not say it is necessarily unlikely. i think september is on the table. we will have to see how events unfold. it is too soon to jump to conclusions on that. one things i have learned is a central banker is you have got to be patient. we have got time to make a judgment between now and the september meeting. i want to take advantage of that time. two job reports between now and then.
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i want to get the benefit of that information before commenting. >> in terms of brexit, is that still weighing on the downside in terms of your forecast? and if so, for how long? >> as i have said before on brexit, all things being equal, it is certainly not a positive for global growth at a time when we need more growth. having said that, i think our working assumption is it will have a modest or marginal effect, negative effect on u.s. gdp growth. i think time will tell what the ultimate effects are for the u.k. in europe. impact is oural working assumption on u.s. gdp. >> would you comment on potentially a need for the fed and look morecope widely at the international environment? >> i do believe strongly to be a central banker in the united
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states today you have got to think globally. it is not optional. what happens today in china, which is why i am here visiting, to thensmit not only underlying economy but quickly through financial markets as we saw in january and february where turmoil here transmitted into global tightening of financial conditions. we have got to be aware of divergencersions -- and what is going on around the world. in a more global world, it can affect the united states more quickly. that has got to be a key part of our jobs, even though we understand our primary responsibility is to be central banker to the united states. >> that was the dallas fed president speaking earlier on bloomberg tv. scarlet: coming up, oil enters a bear market. we show you the chart you cannot miss as the commodity falls during the summer months. this is bloomberg. ♪
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scarlet: this is "bloomberg markets." i am scarlet fu. where less than two minutes from the u.s. closing bell. time for the three chart you cannot miss today. since it rose above $50 in the second week of june, it has been rolling over. this pattern is consistent with something we have seen since the oil selloff began two years ago. the goal line is 2014. green is 2015. the blue line is 2016 year to date. you can see everything rolls over right around midyear. we know oil is a supply driven story. there is too much of it. there is buoyancy in prices in april and may driven by demand. there's usually demand in the spring before the summer driving season. it gets priced in. when we get into the summer, it tails off.
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>> that is very interesting. scarlet: we should have expected it all along apparently. >> we should have shorted oil. i love a good seasonal chart. bonds are very much in season. >> i am looking at a chart on the bloomberg today. it is interesting because it is honing in on investors getting long treasuries. we are looking at the degree to which hedge funds are betting bullish lee on treasuries, looking at net long shorts. the white line is the bullish position. the blue line is the chance the fed rate is above .5% by the end of 2016. we know that takes down in the past couple of weeks. lesse are getting confident the fed is going to go. hedge funds continuing to pile into the rally. it has gone a great deal already. they are confident yields will
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continue to keep moving lower. scarlet: as long as what we are seeing in europe continues to head south, there's a reason for the u.s. yields to go lower. >> it is a story about flows where people are buying yields because they need that return. >> i want to talk about some economic data that came out today, the first day of the month is always a great day. around the world, countries release manufacturing data, including the u.s. sm dropped from 53 to 52.6. the blue line is gdp. these things don't line up perfectly. but over time, they tend to match. this was not a real bad number. it was a bit of a bad to -- a bit of a downturn. december. that was peak dollar strength.
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that is not good for manufacturing. that is when there were concerns about the state of the global economy. altogether, decent. maybe moment comes running a little -- maybe momentum is running a little out of u.s. manufacturing but still expansion. scarlet: the index has been rising and pushing rate expectations back on the table. >> data has been really good the last several weeks. that is one of the big stories. a little bit of weakness. scarlet: that does it for "bloomberg markets." "what'd you miss?" and the market close is next. oil again in a bear market. energy shares dragging the s&p down .25%. ♪
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scarlet: we are moments away from the closing bell. i am scarlet fu. oliver i'm joe -- joe: i'm joe weisenthal. oliver: and i am oliver renick.
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scarlet: u.s. stocks closing mixed this afternoon. barrel for to $40 a the first time since april. joe: the question is, what'd you miss? scarlet: we did into what a rate that could mean for global markets. joe: mixed data out of china. in's did into recession july. we have the chart you cannot miss. ceo pathsbc's u.s. burke joins us to discuss the flows between u.s. and china later in the hour. scarlet: we begin with our "market minute." the dow and the s&p declining to start the month. we mentioned wti, oil, is in a bear market. it has fallen 20% since the peak in june and it is down about 4% today so that is a big drag on the energy shares, which led

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