controversial depression airing -- ceoformer wells fargo stepping into the debate and joining us in a moment. about 30 minutes into the trading day, so let's head to the markets desk for julie hyman has the latest. julie: we have some major averages after they touched record highs, declining a little bit, the dow gaining just about six points, so this sideways movement we have seen in the markets does continue. also, we did not have any economic reports to drive the trading. let's get to some of the individual movers that we have been watching. reversed, nowhave higher by 1.5%. the company's result is somewhat mixed. cable tv profit up i only 1% and some analysts and investors were concerned that was too small the game having to do with higher tv programming cost and subscriber losses. at the same time, the company paid a million dollars or a ,hird of the state in bam tech a streaming service performed by major league baseball. studio entertainment was one of the areas of strength with the number of various film successes. profit was up by 62%. ofare also speaking retailers, specifically looking at some of the higher-end retailers. profit beres estimates, but they do not raise their forecast for the full year. the company citing dwindling mall traffic, decreasing tourism as some challenges. it is trying to get discounted merchandise out of the department short -- department store channel. on the flipside, ralph lauren which has embarked on a turnaround plan under a new ceo appears to be bearing some fruit as earnings and revenue came in above estimates although both did fall year-over-year. oil prices going into today's inventory report, they have reversed higher earlier, they were trading lower among other things. recordrabia pumped a amount of oil per day in the month of july. we are also looking at the 10-year note. earlier today, we saw our reaction to the idea that pimm: is increasing its holdings of treasury's and we have seen yields fall down, but then you see a bit of a reversal following that news of the bank of england had successfully covered its operation and finally, the u.s. dollar, we have an watching that fall, down about a half of 1%. we have been hearing from federal officials, maybe the market is underestimating that the fed will raise rates this year. yesterday, we saw global measures come down, volatility come down, stocks rallying. today, 90 minutes away from the european close, we see european markets, the highs. the stoxx 600 down 2/10 of a percent at the moment. you can see most industry groups walling rather than gaining, looking at the crr and its utilities and health care companies. i want to highlight the dax because we solve this enter able market, yesterday. the first eurozone benchmark to enter able market is coming off a little, down 3/10 of a percent. the big question is how sustainable is this rally because this is not about fundamentals in the german economy, this is about dividend yield. talking about global hunt for yield, take a look at what has been happening in the u.k. gilt markets. yields and 30 year guilt -- gilt yields, looking at the 10 year guilt yield at 55 basis points or thereabouts. the bank of england has hit a stumbling block in the first week of its expanded qe. we just got some news because of a stumbling block to do with those longer dated bonds. t said the boe -- we will break that down in the program and i wanted to mention emerging markets because with that hunt for yields, em currencies and stocks, emerging markets index up for a fifth day, heading for its highest close since july of 2015. now for a check of the first word news. >> a new paul shows hillary clinton has kept most of the bounce she received from the democratic convention. trump 50%aves donald to 44% among likely voters. are third-party candidates factored in, clinton's lead shrinks to four points. hentime, donald trump denies was threatening violence when he suggested gunowners should stop a clinton agenda. he says he was referring to their political power. delta airlines says operations should be back to normal by mid to late afternoon, that the carrier is expecting to cancel more than 150 flights, today. delta is struggling to recover from monday's computer crash that caused more than 100 50's -- flights to be scrubbed. a justice department report says baltimore police officers routinely discriminate against blacks, repeatedly use excessive force and are not adequately held accountable for misconduct. the report also says officers make large numbers of stops, mostly in poor black neighborhoods and unlawfully arrested citizens for speech deemed disrespectful. chancellor merkel once tighter security after a rash of attacks last month. faster deportation procedures among the proposals. three attackers were refugees who had sought asylum. brazil, the senate has voted to move ahead with the impeachment of the current president. they will go to trial over allegations she used improper loans from government banks to pay for social programs. the president says she did nothing wrong. the trial is expected to be held by the end of this month. global news 24 hours a day. this is bloomberg. u.s.e: let's turn now to politics as the campaign rhetoric heats up. democratic and republican -- one theme that has emerged as a rare point of agreement, calls for reinstating the depression era legislation, glass siegler. is a formerteran chairman and ceo of wells fargo. recently walden -- writing a wall street journal op-ed, opposing the return of any form of glass-steagall. and he joins us now. can i put out there that the use of the term glass-steagall is just a political football at this point? neither party actually expects or once a return of any kind of glass-steagall. richard: there is a lot of misconception about what caused the financial crisis and some people believe it was the repeal of glass-steagall, which is not true. there is also a feeling by some people that commercial banks were involved in the problems that created the front -- the crisis, that is not true. out there, and only 20 banks were involved in the origination of these exotic mortgages that failed, or in the securitization and distribution of these mortgages. 10 of those were snl's that did the origination and tended to distribution and securitization of investment bank. or mainstreambank bank with the exception of one or two were involved. the third misconception is that somehow, investment banking is risky and more risky than commercial banking. vonnie: can i posit that these platforms, which are often symbolic as opposed to actual can i posit that they are just trying to play on mainstream fears? let's look at the exact paragraph in the republican error -- applicant platform. recent for reinstating glass-steagall which prevents banks from engaging in high-risk investment. it was just a paragraph on small government. is that not what the gop meant? richard: i think it is, for political reasons and as they mention, there is a perception that it is risky to be in -- risky to be in investment banking. what investment banks do traditionally is you there -- use their best efforts to underwrite debt and equity. they provide investment advice. securities forll investors and they help companies hedge their foreign exchange interest rate and commodity risk. these are not risky elements at all. they don't even stay on the balance sheet very long and compared to lending money. they are doing this for political reasons as you suggest. vonnie: let's move on to dodd-frank. if you look at the campaigns, donald trump said he would try to repeal dodd-frank or put a moratorium on fresh regulations. is that a potential -- would you want a trump residency if that would be the outcome for wall street? richard: i would not vote for donald trump under any circumstances, but he is correct that dodd-frank has been very negative for the economy, one of the main reasons why our economy is growing so slowly. there is excessive regulation because there is a perception that commercial banks caused this -- caused this crisis. we are punishing 7500 banks for something they did not do and it does need to be repealed. there are some aspects of dodd-frank that are reasonable, but most of the planks make nowhere -- make no sense. vonnie: how does that happen, because it seems to me you would need to vote for donald trump in order to have some kind of dodd-frank repeal in the works. this is politics and it may take more time, but i believe that if we have continued subpar economic growth like we have had for the past eight years, even a democrat president will decide that these things that don't make any sense and will do what is right for the american people if they want to get reelected. i am not optimistic that will happen, but i am hopeful. pullingeuropean banks out of the riskier business partially because they have to, that banks on the whole are less systemically important now, there is less of a systemic risk, would you agree? richard:. yes vonnie: what would you want to have reversed? richard: many things. regulation that does not allow the markets to work. we have qe, negative interest rates, all the deleting the market. we have been doing it for seven or eight years and it does not work. we have regulators coming into banks and saying that there were more concerns about banks not taking risk and therefore, what does a bank do? a bank is in the risk business. what they should be doing is taking prudent risk. the regulators want them to take in essence, no risk. they have extremely high capital levels that are beyond any -- bankse means, so are not even earning their cost of capital. the way that they need -- meet the capital requirements is to reduce the balance sheet. individuals and businesses are not getting along. these are counterproductive, and they failed to record highs what really caused the crisis, and it was not mainstream commercial banking, it was excessive s&l's taking excessive risks. vonnie: thank you so much for joining us from san francisco. coming up, a look at the stocks moving in the u.s. vonnie: you are watching bloomberg markets. at thelet's take a look u.k. 10 year yield because it is a big week for the bank of england as it steps up its qe program. we are at 56 basis points. the gap between the u.k. 10 year yield and the 10 year treasury yield, looking at the biggest gap since 2000 on a closing basis, more than 100 basis points. what we saw yesterday was the boe -- it is actually set of the operation has been fully covered, that we are looking at different maturities as opposed to the longer data. the 30 year yield has dropped below 1.3% for the first time, ever. we will be talking more about that later in the program, but first let's head -- let's head to the markets desk were julie hyman is looking at health care stocks. julie: myriad genetics shares are down 30%, the biggest drop stock has seen it 16 -- has seen in 16 years. 2000ompany's forecast for -- for 2017 has begun -- is for -- nue analysts have been looking for $790 million. intelligence points out this has to do with weak demand for its core hereditary cancer treatments and a 65% of those custom -- customers are under long-term contract which leaves a big chunk of folks who are not. we are also looking at the irish drugmaker that trades in the u.s., shares down 11% after the company cut its forecast for the old year, citing price erosion and competition in its prescription drug unit, expecting -- they several times rebuffed takeover attempts from mylan. in its specialty drugs division, and that includes the at the penn -- and that includes the epipen. nejra: now, coming up, business reshapes its tv business with a billion-dollar streaming deal. bob iger discusses this new frontier in media, next. vonnie: in corporate news, disney announced it will pay $1 billion for a minority stake in band tech, a streaming company made by major league baseball. bloomberg's david westin spoke with disney ceo bob iger about the investment and why he sees it as an important move for the company. bob: it would be safe to assume that this is our largest investment in what you call distribution. we look at it as an investment in technology. what we have been saying for more than a decade is our strategic priorities involve creating great quality product and then use it for production and quality reasons, but also use technology to distribute it in more modern ways, more iniquitous lee, and more effective and efficient ways -- more ubiquitously, in more effective and efficient ways. it is it isn't -- distribution play and we view it more as a technology play and that is vital to the future of this company. for those of us who like to watch baseball on our smartphones, we are familiar with the technology. this comes out of mlb. i assume that you would not be making this investment if you were not inclined in the direction of putting disney content on this new platform. when can we expect that to happen? bob: we have been incredibly impressed with what major league baseball and camtek have created created andave people who have been clients have raved about the product. that is both content owners as well as consumers. we did our own diligence and we use competing platforms and nothing comes close to what this platform offers. they have a great product, from a user interface perspective. it is a great platform. to useinvesting in this it as a sports platform, and we have said we will launch an espn branded service direct to consumer, utilizing rights that bamtech has already acquired and adding rights that we have already acquired. this provides opportunities to jumpstart us and other branded businesses in to the -- into the direct to consumer space, including brands like disney, possibly marble and star wars down the road. we have ang -- nor do date, but we believe this puts us -- this will put us into that business. david: is it safe to say that espn is first up? up, that, sports first is the business bamtech is largely in, but one of their big products is hbo. for many used different types of product, but sports will be first and espn brand. it is exciting because we think we can launch something that is a complement to the current channel offering, current channel business that espn participates in, in a very big way. you mentioned hbo and now hbo is on this platform. is it safe to assume that you may have competitors in the content business who would be potential customers of bam with you as an investor? tech bob: this is a whole new world, where traditional distributors have gone into the content space, comcast is a great example with their purchase of nbc universal. theributors are going into content space, content owners going into the distributor space. we are looking at a marketplace don'ts so dynamic that i know whether you call it strange bedfellows are whatever, but there is a lot going on that is different than what we were used to when things were kinder and just lurk, certainly more simple. nejra: disney's ceo speaking with david westin. still ahead, we look at the bank of england's qb program. ♪ vonnie: live from bloomberg world headquarters in new york and london. nejra: you are watching bloomberg markets. we are watching oil after opec said weakness may persist as fuel inventories remain abundant. julie hyman is at the markets with weakening crude investments. julie: we have seen oil bouncing a little bit going into this report. showedy data last night -- government data showing a build in inventories of 1.05 5 million barrels. of -- - inventories vista let's almost 2 million barrels and we are seeing refinery utilization drop as well, i 1.1%. it looks like a mixed report ,ith the overall crude build but the refined products drawdown, that might mitigate any kind of negative reaction you might otherwise see and it looks like oil is ticking even higher in the wake of this report and that is something we have seen in recent weeks. we have seen traders pay attention to that crude number and the refined products number. i'm trying to get some updated numbers on the bloomberg or that crude bill, but the decline in the inventories, what is estimated and we are getting a build of about 1.06 million barrels. it looks like a mixed report, but the market is treating it as a positive one. vonnie: let's check in on the bloomberg first word news. a former aide to new jersey governor chris christie texted to a colleague at christie quote flat out lied at a news conference about the george washington bridge. that is according to a newly released court document. -- faces trial for literally helping orchestrate the lane closures or political revenge. christie's office did not immediately respond to a request for comment. the mosquito population is falling in the miami neighborhoods and did -- link. to 21 zika infections just one mosquito was found in each trap, down from about two dozen found daily, two weeks ago. insecticide is being dropped into 150,000 storm drains. in iraq, government officials say 12 newborns were killed when a fire ripped through maternity ward at a baghdad hospital. the blaze was caused by faulty electrical wiring. scottish first minister nicola sturgeon is on a lobbying missing -- mission to jerk -- mission to germany. when deciding scotland's position in the european union, she wants germany to consider unprecedented decisions. some football fans who traveled to ohio for the hall of fame game are planning to sue the national football league. the game was canceled sunday night because of poor field conditions. at least 20 people have approached an attorney about a class action lawsuit. global news 24 hours a day. this is bloomberg. nejra: let's get back to the big story in the bond market and the u.k., the bank of england bond buybackthe plan after failing to find enough sellers. it was a different story today, different maturities as the bank said its latest purchases were fully covered and we saw the 10 year yield pare back of its losses after it hit a record low. earlier on bloomberg surveillance, mike amy talked about the challenges facing the boe. the natural thing to do would be to say fair enough, i would just buy some more, today and then we will move on, so i think it is a bit more nuanced than that it indicates to us is going to be a challenge to buy these bonds. joining us now for more insight is paul dobson, bloomberg managing editor for government bonds and currencies. great to have you, i want to take you to this chart, showing what is happening to the 10 year yield. you can see after this reversal, we have been pairing the decline. interesting comments, and today we were looking at the seven and 15 years where yesterday, the issue was the longer yields. was this just a hack up -- a hiccup? it is certainly the result of today's operation, indicating part of the gilt yield curve yielding different amounts of success in terms of how easy desk easy it is for the bank of england to pick up the yields they need. theet the impression that longest maturity bond is going to be the hardest one for the bank of england to get its hands funds ensures longer dated bonds to master liabilities, so they will be reluctant sellers unless you continue to see higher pressures and low yields a long maturity bonds. what does picking this up in the second half indicate? what is so new wants to? paul: it is a case of they want to keep the distribution across the three maturities as even as possible, so they don't want to just roll it over into today's auction. that might send the wrong signal to the market. on the other hand, it is august, markets are quiet, liquidity is thin. -- why not hold off until everybody is back at their desk after summer holidays and see whether the demand is up before selling -- would be the alternative, because this was not the first time there has been a lack of liquidity. what theficult to know outcome would be. paul: the alternative that the bank of england to do would be to shift the concentration of purchases so that it buys more in the longer -- a little more in the shorter term maturity, whether demand is strongest or, it could change tactics with regard to corporate bonds, maybe a little bit more and have a look at some securities backed by mortgages for the corporate bonds as well. for the moment, the message we are getting is they don't want to rock the boat, they don't want to shake things up, they want to see how this plays out for a few more reverse auction operations, before making any more decisions or giving the market any hint that they want to make any changes. vonnie: how much does this have to do with sterling and its drop and the idea that it might drop further? paul: everything is tied in together. the more aggressive the bank of england is with its qe plans, the weakest earnings are going to go. it does not seem to discourage foreign buyers of u.k. government bonds. ofre is interest from parts the world where yield is even lower than they are for the u.k. , in japan and germany for example with negatives for the 10 year yield. broaden this out to other parts of the bond market, we have seen pimco increasing its allocation. are we talking too soon of this turnaround in the bond markets? bit, but is up a the demand still there, globally? been tryingody has to get to the bottom, but the risk is that one day, there will be a sudden stop and drop in prices. we saw a couple of weeks ago in japan, a sharp move higher in yield and there were some suggestions that the bank of japan might ease up on its buying or becoming to the end of its qe. the market is edgy, but for the moment it seems that demand is it is just not going to go away, and yields will continue to sink. nejra: thank you so much, paul dobson. up, we will have the brand-new results of a bloomberg politics poll on the race for the white house as donald trump sparks a new controversy. ♪ vonnie: you are watching bloomberg. nejra: this is your global business report. apple is upgrading one of its products and it is not the iphone. why apple is planning to refresh its line of notebook computers. vonnie: praise for some pain. a new report is due telling just how much a brexit could hurt britain's financial services industry. nejra: brazil senate has devoted to put the president on trial. we examined the country in today's quick take. planning the is first overhaul of its macbook pro laptop in more than four years according to people familiar with the matter. apple is hoping a rebound of one of its older products will boost sales after two quarters of declines. the updated notebooks will be thinner and will have more powerful graphics processors for video gamers. disney reported quarterly profit better than expected, strong performances from movies like finding dory offset a challenging year for disney's tv channels. disney will pay $1 billion or a stake in bamtech, a streaming service created by major league baseball. strategic-- priorities include making groundbreaking content and then using technology to you make the product better and also use technology to distribute it in more modern ways more ubiquitously, in more effective and efficient ways, and that is what this is. it is safe to assume that it is a distribution play, we view it more as a technology play and that is vital to the future of this company. brexit a new report says will hurt the british financial services industry, no matter how the negotiations turn out. thanks may be hit hard if britain loses the single market says thatt the report would come with regulations the u.k. would no longer be able to influence. germany's biggest utility reported a first-half loss due to an upcoming spinoff6. the company took more than $6 billion in charges linked to a unit going to -- going public. they will focus on renewable energy networks and retail consumers. nejra: time now for our bloomberg quick take for background on issues of interest. the brazilian senate has voted to put the president on an impeachment trial. she is charged with taking accounts -- she has denied any wrongdoing. in 2009, brazil's president proclaimed the nation's biggest oil discovery as quote a passport to the future. three of the janeiro was a ward of this year's olympics on top of the 2014 world cup. fast-forward to today and half of brazilians oppose hosting the olympics. the economy has sunk into his biggest slump in a century. an investigation into corruption dubbed carwash has included members of the business and political elite. her vice president has had three of the cabinet ministers except -- step down over allegations related to the investigation. on paper, brazil looks like a powerhouse, the fifth-largest country in the world, offshore oil reserves include the west hemisphere's biggest discovery since 1896. it is the second largest producer of soybeans and third-largest of corn with commodity prices dropping and industries sputtering, that model seems to have run its course. argue her time is over, they say she bungled management of the economy and note that brazil's stock index and currency tend to rise when the news seems to favor her removal. supporters argue her opponents are trying to invalidate the democratic choice. they note that despite the massive carwash probe, she has not been accused of graft, unlike the many legislators who are deciding her fate. you can read more at the bloomberg terminal. had to bloomberg.com for more stories. -- head to bloomberg.com for more stories. nejra: a new national poll shows hillary clinton leading donald trump 50% -- 56% to 44%. hillary once to abolish, a. , the. second amendment if she gets to wants --illary onc wants to abolish, essentially, the second amendment. if she gets to pick -- nejra: let's take a look at this bloomberg poll. tell us about what has changed and what this means about sentiment. >> we put out a poll that shows how the clinton with a six point lead over donald trump. it is a bit of a smaller sample. it shows that hillary clinton has retained the postconvention bounce after her well-received convention in philadelphia and standout moments from herself and michelle obama. that theortant to note poll does not include any reaction to the very controversial comments from donald trump yesterday about the second amendment and what they may do in the event of a hillary clinton presidency. nejra: are we expecting those comments to have some impact? >> when we pull on donald trump, there are so many statements that he makes that people expect to tilt pichai kilis in one direction or the other. there have been reactions on both sides, but also from some senior figures in the republican establishment. it goes to this fundamental question of does he have the discipline and government to be commander in chief and what the issue is, can you keep him on message and prevent him from making these types of off-the-cuff remarks? when you read the comments and put them into context, it is difficult to draw any other conclusion that what he was talking about was a call to action among people who support the second amendment. nejra: the e-mails have come back up in terms of controversy for hillary clinton? >> any other day, this would have been a big story and would be something donald trump could gain traction on. hillary clinton has a very low trustworthiness among voters. and what type of favors being exchange with connection to the foundation and connected in her world. certainly, these e-mails which have been uncovered as the result of lawsuits by people who sought to get access, as we know, she had her own personal private e-mail server and has been investigated heavily for this. this is a big controversy for her, but it is being drowned out by donald trump's noise. how many bungles duty to see before swing state voters get turned off? >> you hit a key point, which is going to be turnout. when you look at donald trump's numbers amongst hispanic and black voters, he has lost so much ground to hillary clinton. he needs to get a wider proportion of white working-class voters, disaffected bernie sanders supporters, people who are struggling and do not feel like they are gaining better income, and better life for america -- better way of life in america. his own noise is -- his own noise is droning out his message. he had a keynote speech on monday and people responded very well. his own mistakes overshadow that. vonnie: megan murphy, washington bloomberg bureau chief, thank you. still ahead, we hit the road with the first all-female ferrari rally. ♪ pursuits,oomberg super car owners often participate in summer rallies arrayed their robberies and lever genies. last weekends off e-mail ferrari rally to santa barbara with the first of its kind. and elliott joins us now. -- hannah allen -- hannah elliott joins us now. >> it was part of a charity run for the prancing pony's foundation. -- the is the nickname foundation raises money for young girls to travel internationally. it was definitely for a good cause, but it looks like a lot of fun. vonnie: tell us about the people that ride in these rallies. on a professional drivers? do they own their own cars? >> this rally was special because it was all women and each woman owned the car that she drove, which was great because a lot of people don't. these women owned their cars. they are all executives, some were amateur racers, some work in real estate or pharmaceuticals. powerful women driving their own cars giving to a good cause. event intended to change the stereotypical view of a typical ferrari owner? >> i think, a little bit. it is baby steps and we don't want to make too much of the fact that women drive ferraris. this is 2016, nothing new. the fact that they are getting together for an all-female rally is new, something that really bonded them together. a lot of these women had not known each other, previously. it is a small community for owners of this car, but banding together for them was a first-time thing. vonnie: what was the most expensive car at the rally? ferrari -- in dollar a $1.4 million ferrari. a special car that anyone would be -- we lost her. wanted to jump in and say, what are the backgrounds of some of these women who have been taking part in this event? >> these are high-powered women who work in pharmaceuticals, real estate brokers, artists and amateur drivers who have kind of come up in the ranks and now have high net worth for themselves. vonnie: what kind of money was raised? cost $5,000 to enter and $3500 per guest, so put those figures together. vonnie: thank you so much. you can find the story and more at bloomberg pursuits. up, the european close, yields have fallen to record lows as the boe says it will stick with its expanded bond buying program. much more on this next hour. stock markets in europe are shaping up half an hour before the close, cutting off a seven-week high on the stoxx 600, the dax down as well. we take a look at those bond yields. you can see the 10 year down three basis points, 55 basis points euro-dollar up, sterling higher. ♪ vonnie: it is 11:00 a.m. in new york and 11:00 p.m. in hong kong. i am vonnie quinn. nejra: live from london, i am nejra cehic. you are watching the european close on "bloomberg markets." ♪ nejra: we are going to london and cover stories out of brazil and germany in the next hour. here's what we're watching. guild yields fall to all-time lows. the easing plan got back on track today though. apple is preparing the first significant overhaul of its massive pro line in over four years fi. how the companies using one of its older products to reverse sliding sales. shares of prudential are at a four-month high after the company reported a 6% rise. we will bring a part of our exclusive

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