Tech was clearly one of the best performers with the nasdaq the biggest gainer out of the three biggest benchmarks. Joe absolutely. Kind of unusual because we have this modest dow game that really the tech performance. Matt we do have a seventh consecutive day of dow jones records, nineday winning streak but seven days in a row, we hit a new alltime high on the dow, not something we have seen on the s p. Dramatic. It be more its much more dramatic if you look at a longer period. I also wanted to show you microsoft. Scarlet showed me this earlier, sans going to rip off one of the functions she sought me she. Howed me how to use its the probability of certain moves, so we can see on the far intela big move here in shares. They were up almost 7 today, which has only happened one time since april. You can see its basically three standard deviations away from the mean. It fell to its lowest level since 2011, and there has been a letup and the insatiable demand for government bonds. Yields are so incredibly low, there has been a pullback in demand amid this rally. As wen see the same thing look at u. S. 10 year yields over the last week, continues to increase higher. Low levels, but the insatiable bid has pulled back. And the turkish lira has resumed its selloff, now approaching 3. 10 per dollar. Before the two it was less. They are downgrading turkeys credit rating. Take a look at the lira over the longer term and you can see the movement south in terms of value. Because it isup an dollar appreciation versus the lira. That traders see it weakening by another 8 . It may be far from over according to traders. We do have breaking news for . 59, and gross margin, which is a key measure of profitability for intel, 61. 8 . That is better than analysts have been looking for, a were anticipating 61 . Line, 13. 5 billion. As for this current quarter, they have seen thirdquarter revenue of 13. 9 billion, plus or minus half 1 billion there. In general, analysts were looking for 14. 6 billion. That pretty much puts it right in line. It gives will room wiggle room. And, stock is up over 10 in just the last month, so it has been on quite a surge. Matt we are also getting 16lcomm earnings, one dollar 1. 16, so really blowing it away. The big thing for qualcomm is not the current reporting. The important thing is, what qualcomm sees going forward. 1. 05,ecast is now for though the estimate is for 1. 08. It is more to the upside event of the streets estimates. Do they lose out on apple, smartphone . The highere out on end because that is a big margin for them. We know they are getting killed at the lower end by chinese competitors, so they really need to do well in this business. Apple is leaning toward intel for the iphone seven. Beating on the Third Quarter, you can see them beating it by a mile, the shares are 4. 5 in the after hours. The outlook is pretty positive, compared to an estimate of 1. 08. Coming American Express in with shares of 2. 10, better than analysts were looking for. The highest analysts estimate was 2. 11, just a penny shy. Secondquarter revenue coming in the 8. 2 4 billion, shy of what analysts were looking for, 8. 46 billion. Million, at the high end of the range. Express, it has lost a valuable partnership with costco and jetblue among others. How lot of questions about effective it is in terms of bringing costs down and making ,t possible for its customers such as costco or jetblue. Because it targets were high. To see aare starting lot of bigbox stores and companies yield their own power. Has nothing to do with American Express, but with a visa kumutha walmart in canada saying they would no longer accept the high rates theyre trying to pass through. And the problems American Express was having with costco worm much more embarrassing. Lets get back to those big tech earnings, we want respective from cory johnson our Bloomberg Media editor at large. Were looking at shares of intel down 2. 9 . What do investors not like about this Earnings Report . Cory if you wonder why they beat the analyst estimates, it is because they came down this week it is only wednesday. The number on friday, they would have missed that number, which analyst6 billion. One lowered his numbers, and as a result theyd beat the estimate. But there were only released on monday so this is not substantial. You can see on the bloomberg i going into the equity eeg which shows you the graph, and you can see that number. Interestingly, what is going on is the server business. Best marginse very of any intel business, 49 . Down to 40 with the results today. So more profitable than at the internet of things, or the tc business. 40 operating margins is good news if you can grow. No way are they growing this into the midteens. The is almost as bad as last quarter, which was not seen a very strong. Intel said we will benefit from the cloud i being a data center, but Data Center Growth is now below 5 on the year over year basis, and that is not good news. Joe intel says it remains cautious on the pc market. And this is a legacy business, and no one is surprised that that business is not thriving. How much is that dragging them down, and how well has intel done ultimately to diversify away from it . Cory intel has done amazing things. They saw it happening with the pc, they started building and internet of things, theyre ramping up and cutting costs and cutting prices and raising efficiency of chips to read in the meantime, they have this pc business that peaked in 2011 and continues to be in decline. What they did initially was gain market shares. No moree is really market share for them to win in that arena. And youre seeing the results in terms of market share, they cannot compete there anymore. As a result, the contraction of business hurting them. Hopefully servers will make up for that, but i guarantee you, the questions will be about what is going on with the data center, how to keep it, is there worry about semiconductors, that is happening, and what can intel do their . They can certainly help them sell value mints help them sell. Rate, a slowing growth certainly going to be an area of focus. If server margins are twice as big as pc margins, do you think that the server or Data Center Business taking off is more and more the things we do on our cell phones . It is less important if they choose apple if apple chooses intel for their phone because everything my phone does have to go through the clouding use their server chips. Cory but they have 1. 8 billion in profit. They sell so many more pc chips. They make more profit by selling pc chips. Look at the model, they did 1. 8 billion in profit in servers, 1. 9 billion in pc. They are selling so many more, even today. We are at the point where the server business might be more profitable to the pc business. That is why it is such an important focus. They are neat nearly equal in terms of profit. Cory johnson, stick with us. Were still awaiting ebay results, we can tell you they are off by 2. 6 in extended trading. Mark republican president ial nominee donald trump is in cleveland with his family, he was greeted by hits running mate, indiana governor mike pence. It was their first joint appearance at the convention. To convince conservatives to support mr. Trump and introduced himself to the nation, to whom he remains relatively unknown. Secretary of state john kerry says momentum is shifting against islamic state. Of iraqoke in support at the state department, he said the real challenge lies in securing the areas that have been reclaimed from isis. He also says radical islamism cannot be defeated by military action alone. The u. S. Is cohosting the conference with canada, germany, and japan. Scientists in the search for the areysia airlines considering the unthinkable, that they may have been searching in the wrong place for more than two years. They have been searching the indian ocean, it disappeared march 2014 with 239 people on board, en route from beijing to kuala lumpur. They will meet tomorrow to assess the 135 million search operation. More than 183,000 people in the United Kingdom have signed up to vote in the election for the nations next labor secretary. Jeremy corbyn faces a challenge from smith. Battling to keep his job since britain left to the eu. Inlots will be mailed august, and the result announced september 24. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark renton, this is bloomberg. Scarlet, back to you. Scarlet breaking news from ebay, adjusted earnings for shares in the Second Quarter of . 43, higher than what was anticipated by a penny. This is a metric that everyone pays attention to, 20. 9 billion for the quarter. ,rowth and merchandise volume 20. 9 billion. Looking for an average increase of 2. 3 year on year. A 6 increase in growth on a mutual basis. See the boost of the euro forecast and see the stock surging after hours. Surged 500o, million of its surge, as well. Lets get it some perspective. The story with ebay here is that it is the less exciting holdover. Cory Growth Continues there, and there is a trend that we will see in this companies report. The benefits of currency the last couple of years, they did not Pay Attention to. But theyre pointing out that there is a neutral basis. Growth continues at ebay, it is a powerful machine that continues to grow. In terms of qualcomm, we are looking at gains in extended trading right now. The big concern out of everyone, and matt mention this as well, is whether apple drops qualcomm from intel, stops ordering chips from them entirely. Chip in apple wins a the new iphone, it may be just a few. Giant may not be a big part of the apple business. Estimated the number is well below 500 million for apple, so not a big loss for anyone. Imagines in order to get some sockets, intel will really have to cut costs quite a bit. They will not be walking into that with the 40 margins they are boasting of. They wantically to build a business, and if that happens, it would be a start, but there may not be a big benefit to intel. Alix we see qualcomm rallying today, and many other tech names that are been around forever, starting to get some attention again from investors. Cory after hours trading is not the biggest part of the market, but i think, youve been reporting this on your twitter feed, most of the market is not fully invested, and a lot of people tend to be big believers here. When you see positive results, it can be seen as a surprise, even when the numbers might be close because there is a lot of doubt about the strength of this market. I am not a big Market Sentiment weeksut in the last eight there has been a sentiment of bullishness. A 100 increase in bullishness in the market. I think it shows you how much data is in the market. Bloombergs cory johnson helping us break down tech earnings, thank you very much. Downgrades turkey, the lira at a record low. Joe s p cut turkeys debts, saying it undermined turkeys investment environment, growth, and capital inflows. Cowending to tyler joins us from washington. Your column looked at what we saw in turkey, and what it means for growth. What is the verdict . Alix here is the tyler here is the important point about turkey, freedom is being eroded, they were clamping down on institutions. Was a messenger, to tell the world what was going on there. But i do not think it will have much longterm impact. Scarlet one thing you make a distinction over in your column is whether it is a autocratic coup or democratic coup. Turkeys turkey a democracy or autocracy . When a democracy is replaced by autocrats, their Economic Growth declines. If you have a democratic government and the coup fails, over a tenyear horizon, that tends to not have much impact. Would stress the point that turkey was already becoming not a democracy. Pressok at measures of freedom, turkey was often ranked at the lowest in the entire world, and that is saying something. Joe and, doesnt it Say Something that the coup failed . For countries with decent gdp growth and unemployment and not horrible infant mortality, coups typically fail because the populace is not so unhappy that they will support people in tanks in their streets. Tyler and when you look at history, and democratic coups take cusa maybe not a perfect performance, but far from bad. That creates rising expectations. But the point is, people are not willing to jettison something that has been giving 4 to 6 growth. Joe i want to switch it up and talk about another column he wrote, linking the last of americans Retirement Savings to fuelingiety that may be trump supporters. What is your argument there . Have been a lot of arguments for what is driving people to support trump. You talk about the lack of a Retirement Savings, what connection do you see their . Cory supporters are often supporters are often older people. When you look at the economic explanations, they focus on wages segregation and globalization. Is a lot offactor people feel they do not have enough saved for retirement. Money market funds are low, no one is assured that their equity portfolio will go up by large amounts the way a lot of people expected in the 80s 1980s and 1990s. It has created anxiety. Americans did once engage in active savings. We had a chart of earlier, in the 1970s, savings was 50 , and in the 1990s, around 8 . In 2012 it was around 8 . Scarlet why did we stop putting money actively aside, did we depend upon the markets too much . Tyler i think in part, we depended too much on markets. When the financial crisis came, it was a wakeup for most people. And many people were not used to giving up the things they like to buy, and were not seeing wage gains, and we are not cutting spending. It has declined from double digits, and now it ranges from 5 to 6 or lower. When i look around, and admittedly, i am in a limited circle of people on facebook or twitter, i see so many posts concerned with racism and anger, and hatred and are we willing to accept that if we can get some kind of higher savings rate, is that what youre saying . Tyler no, im saying there different forces. Racism and bigotry change a people see politics sometimes, but economic anxiety has come to the manner he and often you end up with the worst outcomes when economic anxiety factors, and the cultural, racist anxiety factors from the other direction, pushing you toward different outcomes. And both of those things we see operating today. Joe are there policy levers we could pull that you think would to the balance to cause people to save more and plan ahead for their retirement more . Our old tax system has discourage savings for a long time. But the hard thing about retirement policy is that it is very hard to turn it on a dime because it requires people to be making plans over decades. So even if we did the exactly right thing now, youd be a long time before it had a payoff. So we are a bit stuck. Joe we have to run. Tyler cowen, nice to have you on the show. Scarlet late trading, we speak with a cfo and next. Mark i am mark crumpton, this is your first word news update, breaking news live from turkey. Ane turkish president erdog speaking to parliament and his security team, saying in the wake of last year last weeks failed coup attempt, he is issuing a threemonth state of emergency. Again, a threemonth state of emergency will be imposed in turkey following the failed coup attempt on friday as you have no doubt heard. Thousands of people are either being held in detention, or asked to resign from their positions both in academia, following this coup. Also, u. S. Secretary of state john kerry saying the u. S. Would not be extraditing a muslim cleric that was living here in the United States that turkish authorities have blamed for inciting the failed coup. Secretary kerry saying there is no proof or evidence that the coup was led by mr. Gulam. Thisll continue to follow story and bring you more developments as soon as we get them. Meredith macgyver, a staff writer for the trump is taking responsibility for passages from melania trumps speech which resembled Michelle Obamas speech. She posted a letter to the website and offered her resignation to mr. Trump and his family, but the resignation was rejected. Mr. Trump reportedly was interested in making Ohio Governor john kasich his running mate. Times reports that his son reached out to a kasich advisor to make him the most powerful Vice President in history, placing them in charge of foreign policy, but he refused to endorse trump or attend the convention. , mikes running mate pence, will take center stage at the convention tonight. The Hispanic Chamber of commerce backing Hillary Clinton as the first ever residential endorsement in the organizations 38 year history. They announced the norsemen today at the republican convention. In other news, german chancellor Angela Merkel made it clear there would be no talk about from the European Union until official notification. She did officer Prime Minister theresa may space to decide when her government is ready to invoke necessary legal notification. Prime minister may and markel today, saying she would not invoke article 50 this year. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries to read i am mark crumpton, this is bloomberg. Scarlet, back to you. Scarlet we want to get a recap of todays market action, but a quick recap. The turkish lira heading to a record low in the aftermath of those headlines that turkeys president has declared a state of emergency for three months. It is now broken through the 3. 09 level, a record low here. Stocks, the s p and dow climbing to their best levels, the dow rising for a ninth session, the longest winning streak since 2013. Clearly some resilience here in equities following decent earnings. Cap intelsome big after the hour, qualcomm on the flipside. It is up over 6 in afterhours, and ebay over 5 , American Express also modest. Over to you, matt. Matt whatd you miss . The largest u. S. Automaker is considered undervalued. Open,earnings before u. S. Lets get under the evidence he what she means in todays, the numbers do not lie. Despite record profits last year and higher earnings in the first quarter, gm shares have rivaled ford and the s p 500 since she t