With cigna is going to go through. When you look at stocks more a record onceee again for the dow and s p 500 as we see stocks rally on the strength of earnings news weve gotten today. Been the bigs leader of the day, largely because of microsoft and other earnings we have watched. Have been watching the s p 500 in this ongoing rebound in the wake of the u. K. Vote to leave the European League the European Union. Here you have stocks how they have done since following the vote. As we know, it has hit records frequently in the last week or so. Look at the groups on the move technology the best performing group. We see some rotation out of the defensive and into the more cyclical groups. On theft shares rising wake of the companys Earnings Reports that came in better than estimated. Its cloudbased business did well and cisco is trading at its highest in nine a half years. Facebook trading at a record. Sharesings winners surging 15 . Uniform maker of after earnings Beat Estimates and tupperware, raising its Sales Forecast. Tupperware shares also rising. Matt what about outside of we haveand mark julie been watching the dollar. Over the past week, we have seen. 9 . Y gains here, up the same time, we have been watching oil closely. Data shows the night the ninth straight decline in weekly inventories. We saw some volatility around that number but now oil prices are higher. The 10 year note, the yield up for basistoday, points despite some calls over the past two days that we will see the yield continue to go down. Stanley . 1 from morgan matt not yet. Whats check in with the bloomberg first word news with mark crumpton. Turn in is ted cruzs the spotlight at the Republican National convention. The texas senator who donald trump called lying ted during the primaries speaks tonight. It is not clear exactly what he will say or whether he will endorse mr. Trump, who is now the parties residential nominee. His older son made it official, speaking for the new york delegation. To be able to throw donald trump over the delegate count with 89 delegates and another six for john kasich. Congratulations, dad, we love you. Has running mate, indiana governor mike pence, will speak tonight. Democrats are waiting to find out Hillary Clintons choice of a running mate. The New York Times reports she will announce her pick this saturday at a rally in florida. The people of baton rouge, louisiana are remembering three slain police officers, attending rallies with some faith and Community Leaders gathering to discuss ways to improve Police Relations with the africanamerican committee. The officers were fatally shot by a former marine on sunday morning. Authorities have identified all of the 84 People Killed in the terror attack last week. Despite several people remaining in critical condition, the death toll has not climbed. Some of those killed died at the scene, others while hospitalized. No official list has been released. Russias top olympic official is expect did expecting a final decision as to whether the team will be banned from the games in rio. The olympic team is down is analyzing Legal Options of a theket ban after accusing sports team of doping its athletes. Russia is not ruling out Legal Options if it is hit with a total ban. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 company 120 countries. Scarlet more breaking news taking place in washington, d c. That is a live shot of u. S. Attorney general Loretta Lynch peaking on the effort to seek 1 billion in of assets misappropriated from a malaysian sovereign wealth fund. Fascinating story, including proceeds from the movie the wolf of wall street. Isrlet the one probe continuing. Largest clip the talker see seizure in history. That came out a few minutes ago. Loretta lynch speaking on one mdb. Takinghe appears to be questions about Law Enforcement officials being shot and killed around the country, saying lawenforcement feels as though it is under siege. We will monitor that speech for headlines. More repercussions in turkey coup. Ing the failed smp lowering its rating and cutting its outlook to negative. This has added more pressure to the turkish lira which weakens to a record low against the dollar as the u. S. Dollar turkey cross you see it climbing as it gets weaker against the dollar. Yesterday, you could buy less than three. Lets bring in our currency reporter to talk about what is going on. Just as far as the cross is concerned, we saw a huge drop after hours on friday and we saw a little bit of a recovery, but it is still below three. How big a deal is this for turkey . Is a big deal. People are selling assets in country. Coups, butot like they like urges even less. Many thought the worst of the news was out and the markets were calm and it is accelerating. President s turkish emphasis is on solidarity and gaining control. Is there anything he could say that would calm investors and keep the currency under wraps . Vincent if he calls the political situation, investors will go with it. Turmoil andlitical the geopolitical place turkey has with relation to europe and the middle east, thats a big problem if it does not get under control. it has been a fascinating story and tragic in some ways. A lot of lives were lost on friday but the bigger problem for the european economy is the pound. The huge drop we saw after the exit vote, has it stabilized . Vincent it has stabilized. I think what people lost in this is that you had a 15 evaluation in the currency and that has made it attractive. Softbanks purchase and a couple of more mergers and acquisitions closeon you just dont down the biggest Financial Center in all of europe and a heartbeat and everyone exits. Because ofd that is the stabilization in the pound that we saw the bank of england pullback from cutting rates. Aes this mean the ecb is in waitandsee mode . Vincent nobody is looking for the ecb to do anything tomorrow. But mario draghi has surprised us before. If he opens up the basket of hans that the ecb is allowed to purchase, it would be a big surprise. which is not unlikely. They are having difficulty finding bonds to purchase. Gocent the more the bonds negative, at some point, they will need to expand that in order to complete the efficacy of qe. Risk to the downside . Vincent at least for tomorrow because no one is building in any surprise. We are at 110 right now. How big is that . Vincent it is more of a psychological level. Certainlyu will see buyers come in below it because it is that psychological level, but we shall see tomorrow. Reporterour currency here at bloomberg news. Matt speaking of the euro and the pound, we will take you live to berlin where uk Prime Minister theresa may and german chancellor Angela Merkel will be holding their first joint press conference. Very interesting stuff. You can catch it live here. This is bloomberg. Matt you are watching Bloomberg Markets. Im matt miller. Scarlet matt im scarlet fu. Halliburton swung to a loss in its last order. The figure was less painful than analyst addicted. Comments from the ceo indicate a rebound in u. S. Drilling may be close at hand. That shifting sentiment is key to the Oil Services Industry market that has been rocked by the crisis sending drilling down to a 70 year low. Upturna little into this is the Senior Equity Research analysts of oilfield quitman and services at societe generale. Resurgence . G a as we see the underlying price stabilize . Theres no count that rig counts are starting to move higher and theres optimism that crude prices will gravitate upward as the supply and demand balance start to converge. Bethink 2017 and 2018 will to some extent a material recovery, but versus times like 2005 through 2000 eight, things will be much more constrained and perhaps expectations are starting to do somebody. Describe the path to recovery. You can bump along the bottom for years. There are many basins where things are profitable at 40 or 45 a barrel, so we know drilling will move forward and progress higher unless something pushes it higher. Brexit could be a head wind, but in the grand scheme, we think it is reasonably modest. Have a chart here that i think alix steel put together. The current contango we see at the top on white. Five dollars more expensive to buy oil 12 months out that it is right now. Last month, it was a steeper trade. What does that mean . Does that mean people dont expect rising prices Going Forward . Ofst given the backdrop that it hassurprise not come off to the degree people wanted, but it i expect it will go higher at a much slower rate. Why we have seen the recent pullback in crude prices and despite any chatter that is positive, a real inability to move forward. Matt isnt that good for the m a situation . Buyers and sellers have not unable to come together and with a stable price, it seems like it would be easier to make a decision to sell or to buy. In the price range we are at now, the pain will last longer. Likely you will see a continued up tick in m a if we tend to stay down here a little bit. The quicker the prices go up, the less impetus there is to do row productionan material and get a higher price for your company. Scarlet halliburton had to call off his purchase of baker hughes. What does it do next . Does it pursue a smaller market or sit tight for a while . Organicallywill grow their businesses as well as by their Smaller Companies. There are perhaps if you Public Companies out there they could buy but market cap wise, those things will be sub a billion dollars. Scarlet it doesnt move the needle . Guest not in the short run. Matt what do you see as far as vague Oil Companies shedding noncore accident . Halliburton baker hughes is a large transaction that is going to draw regulatory scrutiny. See a lot more fill in acquisitions as people shift off smaller at smaller assets . The prospects for earnings recovery are a lot more tempered then what the companies have seen in the past, so you see a lot of step out transactions where companies are buying into areas of the business they were not at before. The industry is really trying to figure out a new way of doing business to try to restore some of the profitability backdrop that it has perhaps lost. I call it the puck the plus pricing supposition that the industry wants to have. Things just are not that robust in that theres a good backdrop for commanding a lot of pricing power. Scarlet what is priced into shares of Companies Like halliburton and schlumberger . Your theory is it is set to bottom. Is that priced in . Bottomnot only is the priced in but in terms of rig count Going Forward, it seems people are expecting rig counts will go north of a thousand in north america and you will start to get material pricing improvement. The bigger issue for us is that the industry has become so good at growing production so efficient that as you start to get to that, you will start to flush the system and cause some bearishness. Basically lose the pricing momentum you would just be starting to get as you approach those levels. Scarlet a vicious cycle. Thank you for the update. Coming up, uk Prime Minister theresa may and german chancellor Angela Merkel will be speaking at a joint press conference in berlin. We will take you there live. This is bloomberg. Scarlet this is Bloomberg Markets. Im scarlet fu. Matt and im matt miller. Scarlet bill ackman is not giving up his fight against herbalife. The claim against the company was settled last week but ackman says he plans to maintain his bet against the company. Theing us for more is bloomberg recut bloomberg reporter who covers herbalife. Could walk away because they forced some kind of resolution but he is doubling down. The sec hasys that agreed with what we have been saying. They did not use the term pyramid scheme, but ackman did point out that they did not say it wasnt a aramid scheme, so they left that to interpretation. That company is paying this as a bump in the road and they will get the on that that he says how fundamentally changes they are paid to focus on retail sales. He says its only a matter of time before this thing collapses. He says herbalife has been shut down by the ftc, they just dont know it yet. Will go to foreign regulators and now before we risk a had fun a hedge fund shorting the stock, the main regulator of herbalife says they basically a great. Matt but they didnt really come out and call it a winner or call it a pyramid scheme. Guest they said people are getting hurt financially and have in light to about their income. If you read the complaint pyramid says they are a scheme without saying they are a pyramid scheme. Guest im not going to say that. Matt why isnt anybody going to say that . We had a top line going now on bill ackman i havent pulled up my bloomberg but his hedge fund did really well in 2014. 20 . Year it was down two of the big problems are valiant, which he thought would and450 which is not even 25 of course, herbal life these have in big losers. Our you hearing from investors that he needs to learn to call his losses . Guest that has in one of the big things he is three and a half years into herbalife and is saying we are betting against herbalife and we will continue to bet against herbalife because we think the stock is overvalued. He is emboldened now on this call to discuss the Second Quarter results, that we are not going away and its only a matter of time before the shoe drops on this company. There is criticism that he is continuing with this bet. The highainst them in 40s, so it is a long way to go. Aarlet you talked about three and a half Year Campaign i bill ackman. What is the Investor Base of herbalife . How actively held as it by big Institutional Investors . Guest as far as i know, its mostly hedge funds. , whoig long is carl icahn can expand his stake. Ackman had some nice things to say and some not so nice things to say, saying carl icahn tried to mislead people. The ftc says we do not endorse that comment. There is still a long way to go. What happens with herbalife in the next year will be very interesting. Im pulling up the screen on oval on herbalife showing the holdings. Yes whose did his holdings in the green line. More than 500 million at least in paper earnings so far. Matt townsend, a fascinating story. A press we are awaiting conference with british Prime Minister theresa may and german chancellor Angela Merkel. Scarlet lets get you some headlines on bloomberg first word news. Mark Vice President ial candidate mike pence takes stage convention tonight. He will make a case to conservatives why donald trump should be the next president. Despite his stint as governor and as and in congress, hes relatively unknown the New York Times says she will appear with her pick for ate president this saturday a rally in miami, florida. Republicans prefer a candidate from outside the political system. Authorities in germany say the teenage afghan immigrant who attacked train passengers with an ax and knife was inspired by Islamic State but they say he probably acted alone. The attacker wounded five passengers before he was shot and killed by police. The hollywood writerdirector behind the movie pretty woman and happy days has died. Garry marshall dead at the age of 81. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. Mario draghi and the European Central bank are gearing up to make their first policy decisions since the brexit vote in june. Global rate strategy was asked what she expects from the ecb tomorrow. The ecb announced this massive qe, they are still doing it. They dont have that many tools left. We havent yet seen enough data postbrexit to see the impact of the u. K. Our viewers, it will be a fairly boring meeting. I think hes going to say that weve got lots of policy options , we stand ready to act, but we dont have enough data right now. They dont have data but they have a lot of projections, which all seem to point in one direction. It will hurt the u. K. The worst, but also the e. U. Are they going to wait till data comes in rather than trying to anticipate and make sure they are moving forward . Uncertainty is very high. Dont know when article 50 is triggered, we dont know how long this process will take. We dont know what the end state for the u. K. Is. Modely go with the norway our view, they wont be able to get the norway model. Think the conviction level to do a lot will be lower, particularly because theyve done a lot. They posit right now, say they are ready to act. Lets go to when the debate is not boring. Over 10 billion of corporate debt. They have been buying schlumberger debt, glencore. Com and others. Inot of people are sitting europe on trading calls dering how on earth that behold from the ecb standpoint is how do we ease credit conditions. If they buy periphery and bonds, does that translate into the corporate sector . Companiess that more come out, actually invest, issue more debt, and thats how it can transmit into the real economy. They dont need to depend as much on the Banking System. The Banking System in europe never easily capitalized. If you go down the route of Interest Rates, its getting stuck. Corporate debt, they bought things which you dont necessarily see as being that economy positive. Going forward, we hope more companies will say, let me issue ecb buys, let me invest and buy a factory. Compani