Toward the close, just a few hours away from the closing bell. We are mixed right now. Digesting whatl the fed said yesterday, but also the gdp numbers that came out this morning, the second order gdp numbers. A bit of a disappointment there among economists in terms of the topline gdp growth. But we did see consumption of 2. 9 , and that seemed to be a bright spot. Also in the treasury markets, yes, you see the 10 year yield continues to come down. But the twoyear note is rising. The gap continues to narrow and that is because we are expecting september rate hikes. In terms of the currency markets, weve been watching the dollar hover at the fourmonth high. The euro is trading higher again lower again given the dollar strength. Bek a lot of that seems to because the consensus is there will be a fed rate hike in september. For the next two months, that data will be very significant. Betty mark indeed. Lets betty indeed. Mark lets take a look at some of the other top stories. An object found on a French Island will be analyzed. Officials think it looks like a wing jet a wing from a jet. Ofce of the training the plane has been found since malaysian flight mh 370 disappeared. Of its the first evidence the possibility that part of the aircraft may have been found. Its too early to make that judgment, but clearly we are treating this as a major lead and seeking to get assurance about what has been found and whether it is, indeed linked to the disappearance of nh 370. Mh 370. Mark they also found a suitcase with wheels. Americans are increasingly worried about money. The bloomberg sumer consumer was at awed it fivemonth low, dropping to a at a 10owest levels month low. One economist explain his worries about growth on bloomberg surveillance. 2 ould say below tom you are saying below 2 . Yes, we had a very weak first quarter. Was slightlyarter above 2 . We will not be doing great. Consumere bloomberg comfort index gauges attitudes about personal finance as well as the countrys economy overall. For applications Employment Benefits rose last week after eating a four decade low. After hitting a fourdecade low. The overall total is still well under 300,000. Strength in the labor market could convince the fed the economy could withstand a rate interest an Interest Rate increase. Betty the temporary resolution with federal prosecutors on civil content accusations tied to the Illinois Republican senators campaign. In march. Igned a grand jury has been hearing testimony. Mark in the days of cheesesteaks are over at craft headquarters. According to the contents of a memo removed reviewed by bloomberg news, the company is aimed at expenses like travel, electricity, and office supplies. Kraft foods had started to cut supplies and is even yanking snacks. Those are your top stories. Appears to bemy bouncing back at the latest gdp reports show growth clocked in at a 2. 3 rate in the Second Quarter. Betty this is consistent with the picture painted by the fed yesterday and could help with a rate hike later this year. We are joined by lindsay, a chief economist. She doesnt see left off until next year. Also, a Portfolio Manager at pimco. Thank you, guys, for joining us. We know where lindsay stands on Interest Rate. Tony, are you with the consensus given the data today . Tony it looks like the bar is low for a rate hike in september. It looks like the fed is a is inching toward a rate hike. You can think of janet yellen as the fed has ever had. She has been numbing the pain. The yield curve is flattening trend display. As longer data bonds are rising, youll is falling. But in short bonds, for example, the oneyear Treasury Bill is at its highest in five years. This is evidence that janet yellen has been successful in guiding the markets to think about the longterm payoff and the ultimate destination on race , and also on the inflation story, which both go together. Ok, but lindsay, as betty alluded to, youre not convinced. Why not . Lizzie i think we are still seeing weakness in the economy. i think we are still seeing weakness in the economy. And i have a hard time plotting gdp gdp report for just 2 coupled with such a slow start out of the gate certainly there area provision, but you averaging 1. 5 growth across the First Six Months of the year. To reassess the now twice lowered bar of expectations, we will have to see over the next six months. Tony look at revised data back to 2011. It shows that the economy has grown at a 2 rate, and yet despite that, job growth during the same time was well above growth and the labor force, which is to say Strong Enough to lower the jobless rate and give the fed the progress it once on employment. Yes, its not as strong as we are accustomed to from our older days. But we gotten accustomed to slower rate. It seems the economy can only grow around it and above it is pretty good. Betty but isnt that the mystery . And by the way, jobless claims showed a pretty significant drop in claims. That bodes well for the job market. But isnt it a mystery that we can grow at this rate and still create jobs . Talking we should be about 300,000 or hundred thousand on a yearly basis. Not only should we see more robust activity in the labor market, but we should be talking about 3 to 5 gdp, which is where we were in the previous cycles. Again, 2 is ok, but it doesnt give the fed enough to justify a rate increase. If anything, this bolsters our argument that the fed should wait on the sidelines much longer than the market anticipates. Mark weve been hearing from people in the past couple of days and the defense was when the fed does raise Interest Rate, itll have to be in crude mental to not jolt the markets. Incremental define incremental. In its tony projections, the Second Quarter projections, it suggested that every other fed meeting and there are eight per year, that is about a percentage point per year. In 2006, the fed moved nearly every six makes six weeks. Its a much different path that is set. In 2016 theprised fed decides after a few successive hike, if that happens, to pause and show how data dependent it is and how it wants to be cautious, considering the many headwinds that janet yellen says the u. S. Faces. Betty earlier we played a sound bite from roubini talking about the economy. We have another one here talking about the future, the outlook for the economy. Lets play that. I was say that we are will probably be low 2 for we will probably be below 2 . Basing it on 120 to 2 . Weve had a very on 1. 8 2 . Weve had a very weak firstquarter. We will not be doing great. Betty how do we lift up in the second half . Lindsey i think one of the things we need to see is Business Investment and develop it. Small Business Development and syrups are on the low. We continue to see the need for investment in infrastructure and employees. The 2 gdp actually came from the consumer sector. But that will have to be supported by something in the second half of the year. If we dont see business develop it, that will not transfer into further hiring gains and income gains to support for the spending. Mark tony will give you the last word. Tony we would agree with that because of the labor market. Productivity has been less than 1. 5 . That gives you the 2 growth potential. And investment in people stuff, you get better returns in the longterm. Betty thank you so much, tony. And thank you also as well to lindsay. Weve got much more ahead, including rio waters are so dirty that 2016 olympians are risking more than just the gold competing in them. Mark we have the details. They are not pleasant. Welcomeme black back to the bloomberg market day. Im Mark Crumpton here with betty liu. Betty lets go straight to the market and trading as we head toward the close. More earnings. Thats right, ive got a look at the leaders as well as the laggards. Bytern digital is trading up 9. 6 . Its the biggest gainer on the s p and this is its biggest jump since july, 2012. One of the things reasons is because of its earnings in july. Another reason, out in china Western Digital says it has made Good Progress in talks with the ministry of commerce to finally merge with hsg. The deal actually happen in 2012, but beijing hasnt let the hadhat could happen let the merge happen. That could happen by the end of the year. Now,looking to win right up by 7. 5 , the secondbiggest gainer on the s p. Is going toays he set a date for the second casino in macau, march 25th of next year. The Second Quarter earnings were actually pretty horrible. They slumped 44 . Wynn resorts gets 70 of its revenue from the cow. Corvo is down by nearly 15 from macau. Corvo is down by nearly 15 . The reason is because the Second Quarter revenue, the guidance expectations by an estimated 740 million. Another reason, also looking to china. In itss seeing weakness handsets in china as well. And finally, whole foods is down 12. 6 . 12. 3 . The reason is, actual earnings was . 44 a share versus an estimated . 45 per share. Another reason is because its cutting is sales forecast. Whole foods is saying it will grow by the low Single Digits versus the midSingle Digits it predicted earlier. Whole foods, at least here in new york from what my friends as wholeit is known paycheck. Betty that is how they are known and i know im sure they hate it. Thank you so much. Mark the Auto Insurance industry having its napster merriment moment. And others arerm grappling with innovations that could put a huge dent in their revenue. With that is right, Driverless Cars, accidents are likely to plunge and car owners will need less coverage and insurance premiums will go down. Joining us from seattle to discuss this is bloombergs noah with the big story this week. If there are fewer accidents, supposedly, Insurance Companies you know, why would you need so much insurance . How are Insurance Companies dealing with this . An interesting question. A lot of what is going on is Insurance Companies are studying the problem and trying to do some forecasting. In my story i quoted the ceo of allstate, tom wilson. The worstcase scenario he calls the jetsons. It does not really involved flying cars, but hes talking about a world where accidents, the number pledges significantly and people use some car sharing services, Ride Sharing Services like uber and you really start to see auto premiums go down. What companies are doing right ,ow is studying this phenomenon because it looks like there could be a world in the nottoodistant future where there will be less risk and less need to ensure insure. Mark what are Insurance Companies doing to prepare . Is the question and no one is really talking about it in concrete terms about how the Business Model will shift from this. It depends on a particular carrier. Some of them get credit of revenue from homeowners insurance, for instance. Others sell commercial insurance, or interest to businesses. That might present an opportunity. The big point is we are talking about an enormous source of revenue for the Insurance Company industry and Companies Need to start thinking about what they are going to do if the risk changes. Betty warren, who you and i have talked about a lot about and you have covered extensively , noah, he owns geico. They are one of the biggest auto out there. We have a quote from what he said earlier this year. He said, open if you could come up with anything involved if you could come up with anything olved in lowering driving anything involved in driving the cuts accidents by 30 to 50 , that is good news. But we would not be holding a party at our Insurance Company. Noah his quote is great, because on the one hand, the Insurance Companies do not want to stall the adoption of this technology. And in some cases they have been behind the adoption of this figure technology in cars. But are they going to be able to last . Or will they need to just get smaller . Get there are some innovative people in the Insurance Industry who will figure out a way to make money off of this changing technological landscape. I was going to ask, one of the other opportunities that could be available, selling insurance at this point to carmakers that are developing this technology. Noah yeah, that is a real opportunity. Look at what already happened this month. Fiat chrysler recalls Something Like 1. 4 million vehicles after there were reports that came out that a system in a jeep had been hacked remotely. Be otherthere will kinds of commercial insurance because there will be other risks that come into play at the technologies get rolled out. Seattle,ning us from noah, thank you so much. The Bloomberg Businessweek article, who needs Driverless Cars . Its a fascinating read. Still ahead, the 2016 summer olympians are risking more than just the gold when competing in rio. Betty we will have the details next. 2016 summer olympians have more to worry about than just winning the gold. Betty according to an Associated Press investigation, athlete in Rio De Janeiro will be slimming and boating in boating swimming and in waters with dangerously high levels of bacteria. Some training have already fallen ill with fevers, vomiting, and diarrhea. Is a very disturbing story. According to the Associated Press, they did viral testing. It will continue up until the games in 2016. The testing found not one water venue safe for slimming or boating swimming or boating, according to global experts. Betty these athletes are already under a lot of pressure. How will they survive in these waters . Mark look at this graphic. The assessment found infection risk 99 for athletes. Legal coliform count is at least 5 of olympic make samples. Human adenoviruses can last for years and water. Betty and its too late to treat them. Teaspoon of water, 99 chance of being infected. If it is too late for them to really clean up these waters . Clean up these waters, what do you do . Might you have to live there for a while before the games to get used to this . Mark might you seriously consider boycotting . Betty youve worked years to get the olympics. How question mark mark how . Mark i worked years to train for the limbic, but i didnt for the olympics, but i didnt train in raw sewage. Betty im sure the olympic board will be calling us up. Mark this was not meant to embarrass anybody. What else is coming up . Betty global headwinds taking commodities down. Stay with us. I will give you were beneath for outlook. s full outlook. Betty welcome back to the bloomberg market day. Im betty liu. Lets get straight to the stories making news this hour. A Campus Police officer pleaded not guilty today in the connection to a Fatal Shooting of a black motorist. He is being held on a 1 million bond. Nsing, who is white, stopped william to those over a missing ubose over a missing front license plate. He said he feared he would be dragged into the car under the car. Walkers second in the polls behind donald trump, and jeb bush is third with 10 . However 30 of those surveyed said they would never vote for trumpet and the polls show Hillary Clinton would be him 4836. Head a 17th republican candidate is now in the race. Former Virginia Governor jim gilmore. No word on whether he will be in next weeks televised debates. His name has only been listed in one National Polls so far. And now you can own a piece of one of the most famous moments olympic history. The goaltender who led the u. S. To victory is selling some memorabilia. Tag, 5. 7 million. He says he wants his children and grandchildren to be financially secure. This are the top stories hour. Coming up in the next half hour the Russian Central Bank has placed a illtimed investments in the gold and euro. A slide in the ruble is only compounding problems for the country. And an Online Education for the masses all for creek for free. We have an exclusive interview. And tesla has a new plan to create new customers, capitalizing on its current one, and is being met with a have to level of criticism. All that and more coming up in the next halfhour. The commodities route is deepening and is set for the worst month in years. At the commodities index, down 10 for july, down after a 13 week low. Texas intermediate is headed for its biggest monthly fall and copper is set for its worst month since january. How much worse can things get . This morning, and why nyu professor roubini explained how its different from other routes we have seen thus far. Massive increase in supply coming. That is part of the story, but there is also a significant fall in demand, for example, coming from the slowdown of china. And there is also the fact that when the fed hikes its rates that weakens the dollar and leads to a higher price of commodities. Together andwork now are becoming headwinds. Tom you live on airplanes. You just got back from convict zhakstan. A within that is the idea of Technological Progress. Production is not going to slow down. When does the price clear if we have this overlay of Technological Progress . My answer is that we dont know. Think it wille only be 2 or 3 a year. Some people think it will be 5