What'd You Miss in markets today? Here's what investors should know

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SCARLET FU IS OFF TODAY.
♪
U.S. STOCKS CLOSING LOWER,
DRAGGED DOWN BY APPLE.
JOE: "WHAT'D YOU MISS?"
MATT: U.S. STOCKS RETREAT FROM
RECORD HIGHS.
, ASSET MARKET ACTION
CLASS BY CLASS.
PAY $14.5 ORDERED TO
BILLION AFTER THE EUROPEAN
COMMISSION SAID IRELAND
ILLEGALLY/THE COMPANY'S TAX
BILL.
>> LAWMAKERS ON BOTH SIDES OF
THE AISLE, WE SPEAK TO GOLDMAN
SACHS ABOUT WHAT IS NEXT FOR THE
COUNTRY IN THE MARKET.
LET'S KICK IT OFF WITH
MARKET MINUTES.
STOCKS DOWN ACROSS THE BOARD,
INDIVIDUAL MOVERS, ONE
BEING APPLE.
DOWN THREE QUARTERS OF 1%.
14 BILLION,
DOLLAR COMPANY, WILL ENTER INTO
A MERGER OF EQUALS.
BY THE SAMEWN
AMOUNT THAT POTASH IS UP.
JOE: THE GOVERNMENT BOND MARKETS
QUIET.
VIRTUALLY NOTHING GOING ON.
SHORT-TERM RATES DOWN.
LONG-TERM RATES UP.
, THAT'S SOME STEEPENING
WHY THE FINANCIALS RALLY.
>> SOME ACTION IN THE FX
MARKETS.
A FIFTH DAYNG FOR
OF AGAINST THE YEN, THE LONGEST
WINNING STREAK SINCE MARCH.
THIS IS ON SPECULATION WE WILL
GET A RATE HIKE FROM THE FED
THIS YEAR.
THE ALSO KEEPING AN EYE ON
BRAZILIAN CURRENCY, THE
BEST-PERFORMING AGAINST THE
DOLLAR THIS YEAR.
LOWER,Y, A LITTLE
AREULATION THAT BANKS
SEEKING TO WEAKEN IT BE FOR THE
CENTRAL BANK'S DETERMINE A KEY
RATE IN SETTLING CONTRACTS.
THE OPTIMISM ABOUT A NEW
GOVERNMENT PULLING THE COUNTRY
OUT OF A RECESSION AS THE
IMPEACHMENT TRIAL HEADS TO THE
FINAL STAGES.
JOE: ON THE COMMODITIES FRONT,
LET'S LOOK AT AN INTRADAY CHART
OF OIL.
A GOT SLAMMED EARLY THIS
MORNING, ANXIETIES ABOUT WHETHER
WE WILL SEE SUPPLY BUILDUP.
WE'VE SEEN OIL IN THIS REGION
FOR A WHILE.
ONE MORE COMMODITY TO KEEP YOUR
EYE ON IS GOLD, WHICH HAD A
GREAT START TO THE YEAR.
THIS CHART POINTING OUT THAT
GOLD IS AT THE BOTTOM OF THE TWO
MONTH TRADING RANGE.
TUMBLE, KEEPES TO
AN EYE ON THAT.
COMMODITIES ON MY
MAIN PAGE WERE DOWN, EXCEPT FOR
COFFEE.
LET'S TAKE A DEEP DIVE INTO THE
TERMINAL.
WE WILL SHOW YOU THE FUNCTIONS
AT THE BOTTOM OF THE SCREEN TO
ACCESS THESE CHARTS.
AT A FUNCTION THAT I
HOPE WILL GET BIGGER FOR
BLOOMBERG CLIENTS.
THIS ALLOWS YOU TO BE
COMPETITIVE, NOT ONLY WITH YOUR
,OLLEAGUES AT YOUR OWN COMPANY
BUT WITH COLLEAGUES AT OTHER
BETS ONES AND PLACE
VARIOUS THINGS.
DROP-DOWN MENU AND YOU
CAN PICK FROM ANY NUMBER OF DATA
POINTS THAT COME OUT.
JOE, YOU WILL WANT TO FOCUS ON
INITIAL JOBLESS CLAIMS, BUT
NONFARM PAYROLLS IS A BIG ONE
COMING OUT ON FRIDAY.
ARE STILL LOOKING FOR THIS
ALREADY, 180,000 IS THE SURVEY.
THE LAST TIME WE BLEW OUT AND
225,000.
SPEAKING OF THE JOBS
REPORT, A LITTLE PREVIEW THAT
MIGHT BE RELEVANT WITH TODAY'S
CONSUMER CONFIDENCE INDEX.
CHECK OUT THIS CHART COMPARING
THE LABOR DIFFERENTIAL AND X
VERSUS THE UNEMPLOYMENT RATE.
INDEX VERSUS THE
UNEMPLOYMENT RIGHT.
DO YOU PERCEIVE JOBS AS
HARD OR EASY TO GET RIGHT NOW?
THAT IS THE GOES
MORE THEY THINK JOBS ARE EASIER
TO GET.
WE HAVE JUST THAT THE BEST LEVEL
SINCE THE FINANCIAL CRISIS.
PEOPLE'S PERCEPTION OF THE LABOR
MARKET CONTINUES TO GET BETTER.
YOU CAN SEE HOW NICELY DIRECTION
HE TRACKS WITH THE U.S.
EMPLOYMENT RATE, SO WE WILL SEE
IF WE CONTINUE TO SEE A DECLINE
IN THE U.S. UNEMPLOYMENT RATE AS
THAT MEASURE OF LABOR MARKET
HEALTH FROM THE SURVEY.
MATT: VERY COAL INDEX.
>> MY CHART STICKS WITH THE
MACRO SEEN, BUT LOOKING AT
CYCLICALS VERSUS DEFENSIVE.
I WANTED TO LOOK AT IT GLOBALLY.
HERE I HAVE THE FTSE CYCLICAL
INDEX AND WHITE AND THE FTSE
DEFENSIVE INDEX.
CYCLICAL SHARES ARE
OUTPERFORMING DEFENSIVE FOR A
SECOND STRAIGHT MONTH.
ECONOMIC DATA HAS BEATEN
FORECASTS SINCE JULY, BUT STILL
THE WORLD SHOWING THE SLOWEST
GROWTH RATE IN SEVEN YEARS, BUT
STILL SEEING THIS ROTATION
GLOBALLY.
FROM INDEX HAVE MEMBERS
JAPAN, KOREA, SWITZERLAND.
IT IS REALLY LOOKING GLOBAL
HERE.
SINCE THE END OF JUNE, THE
,YCLICAL INDEX HAS JUMPED 9.5%
WHERE AS THE DEFENSIVE ONE HAS
DROPPED TO 0.7%, SO THAT REALLY
TELLS THE STORY.
ARE BEATINGGUYS
THIS ROTATION THING TO DEATH.
OLIVER RENICK IS ONSET.
EVERYBODY IS TALKING ABOUT THIS
SHIFT.
THAT'S SO OLD NEWS.
WHAT ARE PEOPLE SAYING?
DO PEOPLE SEE THIS TREND IS
HAVING ROOM TO RUN?
OLIVER: PERHAPS.
IT DEPENDS ON WHY YOU THINK IT
IS HAPPENING TO BEGIN WITH.
THIS ONE IS POTENTIALLY
IMPORTANT BECAUSE IT IS ONE OF
THE FEW AREAS OF THE MARKET THAT
HAS SURVIVED, WEAKER THE PAST
MONTH, BUT THROUGH THE FIRST SIX
MONTHS, IT WAS THE ONLY PART OF
THE STOCK MARKET GETTING HIGHER
LEVELS AND HIGHER VALUATIONS, SO
OFYOU THINK THIS IS A RESULT
SPECULATION INTEREST RATES WILL
MOVE HIGHER AND DIVIDEND PAYING
COMPANIES WILL NOT BE THE HOT
COMMODITY TO GO AFTER, THEN THAT
COULD BE ONE EXPLANATION, BUT IF
YOU LOOK AT THE BOND MARKETS, IT
IS VERY INTERESTING, 30 YEAR
NOW BELOW TREASURIES, SO
YOU BASICALLY HAVE A MARKET THAT
INDICATES EXPECTATIONS OF LOWER
RATES IN THE LONGER TERM
DURATION BONDS.
IF THAT IS THE CASE, THAT MUST
NOT BE AN INTEREST RATE FEW ON
WHAT IS HAPPENING AND DIVIDEND
SOCKS.
EITHER THE MARKETS ARE WRONG, OR
THESE TYPES OF COMPANIES ARE
DOING LESS WELL BECAUSE OF SOME
OTHER REASON.
IT IS A VALUATION STORY, A
SECTOR ROTATION, CORPORATE
EARNINGS.
SEE, IF YOU'RE
GOING TO UTILITIES BECAUSE YOU
LIKE THE DIVIDENDS THEY ARE
THENG, BUT EARNINGS MISSED
STREETS EXPECTATIONS BY 30% LAST
QUARTER, MAYBE THEY WILL HAVE TO
CUT THOSE DIVIDENDS.
PAYOUTS FROM TELECOMS, STAPLES,
AND UTILITIES, ALL THESE
DEFENSIVE SECTORS, BUT IT THEY
DON'T EARN MONEY, THEY CAN'T
CONTINUE TO PAY YOU THIS UNLESS
THEY BORROW.
THAT COULD BE ONE OF THE
CONCERNS.
INTO A LARGEROMES
PICTURE IN THE EQUITY MARKET,
WHICH IS HIGH PAYOUT RATIOS,
PROFITS WEAKENING, BUT DIVIDENDS
HAVE NOT BEEN CUT.
WE ARE SEEING SOME OF THAT IN
MORE DISTRESSED AREAS, BUT WHICH
SECTORS ARE THE ONES THAT WILL
HAVE TO CUT DIVIDENDS IF THEY
NEED TO.
THERE ARE DIFFERENT METRICS YOU
CAN LOOK AT SHOWING COMPANY
STRETCHED IN TERMS OF THEIR CASH
LEVELS AND MOVING DOWN THE PAST
COUPLE OF QUARTERS, DEBT LEVELS
GETTING HIGH, THE FIRST THING TO
GO IS NOT THE DIVIDEND, BUT
THESE OTHER SHAREHOLDER
ACTIVITIES, BUYBACKS, ETC., THAT
HAVE STRETCH THE COMPANY THIN.
IF WE DON'T SEE THAT QUICK
TURNAROUND AND EARNINGS, WHICH
KEEPS GETTING PUSHED UP QUARTER
AND QUARTER, GUESS WHAT?
NOW IT'S NEGATIVE EARNINGS.
THAT WILL BE IMPORTANT, TO FOCUS
ON WHETHER THEY CAN KEEP UP TO
BEGIN WITH.
>> I WANT TO TALK ABOUT
MULTIPLES.
WE HAVE DO HAVE A CHART TO SHOW
THEM ELEVATED HISTORICALLY AND
ALMOST ACROSS ALL METRICS.
THEY REMAIN BELOW THE REST OF
THE DEVELOPED WORLD.
TELL ME LOT OF PEOPLE
THAT EUROPE IS ATTRACTIVE VERSUS
THE U.S., JAPAN IS ATTRACTIVE,
BUT ARE USING SOMETHING
DIFFERENT?
OLIVER: THIS IS AN INTERESTING
THING, WHEN YOU LOOK AT THE S&P,
NO MATTER WHAT METRIC, YOU WILL
HIGHLYE MARKET IS EITHER
VALUED RELATIVE TO HISTORY OR IN
ONE OF THE TOP PERCENTILES.
THEY WILL SHOW AN OVERVALUED
STOCK MARKET, BUT YOU HAVE TO
REMEMBER THERE IS A LOGICAL
EXPLANATION FOR WHY VALUATIONS
ARE HIGH.
THAT IS BECAUSE IT IS SORT OF
THE BEST HOUSE ON THE BLOCK.
THERE IS A MATHEMATICAL
CONSIDERATION YOU HAVE TO TAKE
INTO ACCOUNT.
IF YOU LOOK AT TE, THEY HAVE NOT
BEEN GREAT, BUT IF YOU LOOK AT
EUROPE, THEY HAVE GOTTEN
DEMOLISHED.
IF YOU LOOK AROUND THE WORLD,
THE DENOMINATOR KEEPS GETTING
LOWER AND LOWER AND THOSE
VALUATIONS ARE VERY HIGH.
THE FTSE IS TRADING 50 TIMES.
IF YOU LOOK AT MARKET RELATIVE
VIBRATION COME THE S&P TRADING
AT 20-22 TIMES, LOWER THAN ITS
PEERS IN THE DEVELOPED WORLD.
SO IT IS INTERESTING TO TRY TO
FIGURE OUT WHETHER VALUATIONS IN
THE U.S. ARE HIGH BASED ON OUR
OWN HISTORY, BUT AROUND THE
WORLD, THEY COULD BE ATTRACTIVE.
JOE: THIS CHART I HAVE BEEN
STARING AT THE LAST THREE DAYS,
THE SP Y ETF -- SPY ETF.
BONDS ANDRKABLE HOW
STOCKS ARE MOVING AND LOCKSTEP
RIGHT NOW.
IN THE BROADER SCHEME OF THINGS,
THERE DOES NOT SEEM TO BE ANY
DIVERSITY WITHIN ASSET CLASSES.
AIVER: RIGHT, IF YOU ARE
PORTFOLIO MANAGER, THEN YOU
DON'T WANT TO PUT YOUR MONEY IN
CASH.
IT'S NOT GOING TO DO ANYTHING,
SO YOU HAVE TO THINK ABOUT WHERE
YOU ARE GOING TO PUT IT HERE AND
IF YOU WANT TO GO INTO A RISKIER
PLAY, THEN MAYBE A EMERGING
MARKETS.
YOU WANT TO BE SOMEWHERE WHERE
YOU GET SOME KIND OF RETURN,
THEN GO TO THE U.S.
UP, BONDES STOCKS
YIELDS DOWN, BUT WHETHER THE
CORRELATION CAN STAY IN TACT
WILL BE A BIG DEAL.
JOE: THANK YOU VERY MUCH.
MATT: UP NEXT, A DEEPER LOOK
INTO MARKET TRENDS.
THIS IS BLOOMBERG.
♪
LET'S GET TO FIRST WORD NEWS.
COULD SUREBAMA HAS
THE SENTENCES OF 111 INMATES
CONVICTED OF NONVIOLENT DRUG
OFFENSES.
HE HAS LONG CALLED FOR PHASING
OUT STRICT SENTENCES FOR DRUGS.
HE SAYS THEY LEAD TO EXCESSIVE
PUNISHMENT AND INCARCERATION
RATES UNSEEN IN DEVELOPED
COUNTRIES.
THE WHITE HOUSE SAYS THE
PRESIDENT HAS GRANTED EIGHT
TOTAL OF 673, MORE THAN THE 10
PREVIOUS PRESIDENTS COMBINED.
THE STATE DEPARTMENT SAYS 30
E-MAILS INVOLVING BENGHAZI HAVE
BEEN RECOVERED BY THE FBI.
THEY ARE AMONG THE THOUSANDS
RECOVERED DURING THE RECENTLY
INTO THEVESTIGATION
FORMER SECRETARY STATES USE OF A
PRIVATE SERVER.
THE AGENCY SAID IT WILL NEED TO
THE END OF SEPTEMBER TO REVIEW
E-MAILS AND REDUCTIVE CLASSIFIED
INFORMATION BEFORE THEY ARE
RELEASED.
A SUICIDE BOMBER DETONATED A
TRUCK NEAR THE GATE OF SOMALIA'S
PRESIDENTIAL PALACE.
20 PEOPLE WERE KILLED.
SOME CABINET MINISTERS AT A
NEARBY HOTEL WHERE AMONG THE
INJURED.
AL-SHABAAB HAS CLAIMED
RESPONSIBILITY.
LAST WEEK'S DEADLY
EARTHQUAKE AND ITALY WERE
HONORED TODAY AT A STATE FUNERAL
IN THE DEVASTATED TOWN.
SERVICE WAS HELD IN
AN AREA CONSTRUCTED OVERNIGHT
AFTER RELATIVES REJECTED LANCE
TO HAVE THE FUNERAL IN AN
AIRPORT HANGAR 40 MILES AWAY.
THE DEATH TOLL STANDS AT 292.
GLOBAL NEWS 24 HOURS A DAY
POWERED BY MORE THAN 2600
JOURNALISTS AND ANALYSTS IN MORE
THAN 120 COUNTRIES.
THIS IS BLOOMBERG.
THANK YOU SO MUCH.
"WHAT'D YOU MISS?"
STRATEGY MAYDIP
NOT BE A SIMPLE SOLUTION FOR
RECENT VOLATILITY.
>> YOU HAVE SEEN THE VIX CREEP
UP, BACK AROUND 13, A SUPPORT
LEVEL.
IT DID BELOW, AND NOW BACK UP.
SEASONALITY INO
SEPTEMBER, BREXIT, YOU HAVE A
SPIKE UP, BONDIX
ANDDS CREEP UP GLOBALLY,
THESE BOND PROXY STOCKS,
UTILITIES, DIVIDEND STOCKS,
,MALL OUTFLOWS, UNDERPERFORMING
AND SO SOME OF THE THINGS THAT
HAVE SUPPORTED THE EQUITY MARKET
ARE NOT THERE.
>> THAT IS LIKE THE THEME OF THE
WEEK FOR US HERE.
THE DEATH OF THE SAFETY
STOCKS.
WHY DO YOU THINK THAT IS?
IT COULDN'T IT BE THAT THE
ECONOMY IS IMPROVING AND THINKS
OF BETTER SO WE NO LONGER NEED
TO HIDE?
--THERE IS SOME RELEVANT
ELEMENT TO THAT.
YOU ARE SEEING A RUSH INTO BETA,
BUT A LOT OF PEOPLE CHOSE THIS
AS THE LAST BASTION IN THE
EQUITY MARKET.
THEY DID NOT WANT TO OWN
EQUITIES, BUT NOT THE DIVIDEND
STOCKS.
AS YIELDS GO HIGHER AND THEY GET
NERVOUS, I THINK THEY WILL WANT
TO GO OUT OF THAT.
I THINK THE NEXT EXODUS IS OUT
OF THE STOCK MARKET COMPLETELY.
THAT, THEY ARE
SELLING THE EQUITY MARKETS, AND
THAT WILL CREATE PRESSURE.
THIS HUNT FORBOUT
YIELD, AND ONE THING YOU TALK
ABOUT ARE THE OPPORTUNITIES
PRESENTED BY THE INCREASING
LIBOR.
A GREAT COLUMN ABOUT HOW THE FED
ACTUALLY HAS NOT PAID A LOT OF
ATTENTION TO THE PROSPECTS OF
THIS RISING, SO HOW ARE YOU
PLAYING THIS?
>> WE LIKE THE LEVERAGED LOAN
SPACE, THE HIGH-YIELD BOND
EQUIVALENT, SO FLOATING RATES.
YOU ARE STARTING TO CREEP ABOVE
75, AN INCREASE IN RATES,
STEPPING UP THE CAPITAL
STRUCTURE, SO I PREFERRED THAT
ELEMENT OF SAFETY.
WITHIN THAT, THERE ARE CLOSE IN
THE FUNDS, ETF'S, SO YOU HAVE
RISE,PSIDE IF YIELDS DO
AND A LOT OF PROTECTION BECAUSE
THE LIBOR MOVE IS ISOLATED.
FLOATING LOOKING AT
RATE IN BONDS, CITIBANK CAME OUT
WITH A SEVEN-YEAR FLOATER.
,HERE ARE CORPORATE FLOATERS
ETF FLT, SO YOU'RE NOT GIVING UP
MUCH TO AVOID INTEREST RATE
RISK.
THAT TRADE-OFF MAKES SENSE TO
ME.
DOES THIS ADVANTAGE PEOPLE
LOOKING FOR DIVERSIFICATION AND
PORTFOLIOS.
I'M LOOKING AT THE DEGREE TO
WHICH EQUITIES AND TREASURIES
SEEM TO BE MOVING IN LOCKSTEP.
THERE SEEMS TO BE NO
DIVERSIFICATION.
FRIDAY WAS ONE OF THE WORST DAYS
IN A LONG TIME FOR THE
MULTI-STRATEGY INDICES THAT WAS
A STRONG VERY.
DOES THE STRATEGY YOU REPRESENT
OFFER ALTERNATIVES?
>> IT WILL BEHAVE MORE
UNCORRELATED. MOVING INTO LIBOR
AND TAKING ADVANTAGE OF THIS
RISE, WHICH IS TECHNICAL AND
WONKY, BUT WILL BE MAINSTREAM
AND HIT PEOPLE IF THEY SEE THEIR
MORTGAGES GO UP, SO IT'S A GREAT
WAY TO GET YIELD AND DIVERSIFY
AWAY FROM FIXED INCOME.
MATT: WE ARE LOOKING FOR A GAIN
OF 180,000.
WE GOT A BLOWOUT NUMBER LAST
MONTH.
IF WE GET A BLOWOUT NUMBER THIS
MONTH, DOES THE FED GO IN
SEPTEMBER?
I THINK THERE IS A DECENT
CHANCE TO GO EVEN IF WE GET A
DECENT NUMBER.
REPORT IS TYPICALLY
DISAPPOINTING, SO IF WE, IN
LINE, THAT WILL BE GOOD ENOUGH.
WHERE I DIFFER IS THAT THE FED
SPENT SO MUCH TIME PUTTING JUNE
ON THE TABLE, THEN DIDN'T RAISE.
INTOS DIFFERENT IS COMING
JUNE, WE HAD BAD DATA AFTER BAD
DATA.
IT WAS MORE THAN THAT.
NOW ALL OF A SUDDEN YOU HAVE THE
EXACT OFFICE -- OPPOSITE.
INFLATION,IGNS OF
JOBS THERE, SO I WOULD NOT BE
SURPRISED TO SEE A SEPTEMBER
HIKE IF WE GET A GOOD JOBS
REPORT.
JOE: THAT WAS PETER CHEER.
UP, THERE'S RETURN
TO THE MARKET.
CAN'TE THE CHART YOU
MISS, NEXT.
THIS IS BLOOMBERG.
♪
"WHAT'D YOU MISS?"
WHY MATT MILLER.
THE YUAN BEARS HAVE RETURNED.
I FORGET MY CHART NUMBER.
3123, THANK YOU.
THAT IS WHAT I WAS HOPING FOR.
I HAVE SO MANY DIFFERENT LOOKS
AT THE YUAN BEARS.
THIS ONE SHOWS YOU THE THREE
MONTH IMPLIED VOLATILITY AND THE
SPOT PRICE AND BLUE.
AS THE LINE GOES UP, THE YUAN
GETS WEAKER.
IN AUGUSTH VOLATILITY
HAS CLIMBED AT A FASTER RATE
THAN ANY MONTH SINCE JANUARY.
BECAUSE OF THAT, YOU CAN SEE
TRADERS THINK THE YUAN COULD GET
WILDER.
YOU COULD LOOK AT THE FACT THAT
PUTS ARE MORE EXPENSIVE THAN
CALLS RIGHT NOW.
THE FORWARD CONTRACTS TRADED AT
A DISCOUNT TO THE SPOT PRICE.
ALL THESE THINGS INDICATE THAT
EVERYONE EXPECTS THE YUAN TO
WEAKEN.
JOE: THERE IS A VOLATILITY
PICKUP.
THE S&P 500 OR MARKETS DON'T
RESPOND TO THE WEAKENING
CURRENCY, BUT DO RESPOND TO A
SPIKE IN VOLATILITY.
SPEAKING OF THE CHINA STORY, I
WANT TO LOOK AT MY FAVORITE DATA
POINT, WHICH COMES OUT LATER
THIS WEEK, MACCALLUM GAMING
REVENUE.
-- MACAU GAMING REVENUE.
OVER YEAR CHANGE, ONLY DOWN
BY 7.1%, COMPARED TO WHERE WE
WERE, WE ARE ONE POINT DOWN ON
, 23% DOWN GDP LAST YEAR, SO
THIS IS QUITE A COMEBACK.
THE BLUE BAR CHART IS GAMING
REVENUE.
WE WILL GET THAT LATER THIS
WEEK.
THAT HAS ALSO BEEN IMPROVING.
HEALTH OFRITS AND THE
THE EMERGING MARKETS, YOU CAN
SEE HOW THAT TRACKS THE GENERAL
SHAPE OF EMERGING MARKETS, SO
DEEP AND I ON THOSE GAMING
REVENUE NUMBERS.
ON THOSE GAMING
REVENUE NUMBERS.
3117, FOREIGN
INVESTORS HAVE BEEN PULLING
THEIR MONEY OUT OF MEXICO'S BOND
MARKET.
PULLED $7 BILLION FROM THE
COUNTRY'S PESO DENOMINATED DEBT
BETWEEN MARCH AND JUNE, THE MOST
DURING A SINGLE QUARTER SINCE
THE BANK BE GAIN TRACKING DATA
IN 1995.
ONT THIS COULD DO IS WEIGH
THE PESO.
THE PESO IS ALREADY THE SECOND
WORST MAJOR CURRENCY IN 2016,
TUMBLING 7.5%.
WHAT HASN'T HELPED IS FOREIGN
DIRECT INVESTMENT ALSO FALLING,
AND OIL EXPORTS.
MATT: AND BREXIT.
THE POUND TO SEEM TO CRUSH THE
PESO LIKE A PROXY.
JOE: AND A TRUMP PRESIDENCY
PROBABLY WOULD NOT HELP.
MATT: HOW PROFITABLE WITH THE
WALL BE?
THE RALLY IN
BRAZILIAN STOCKS IN 2016 AMID
THE PROSPECT SEVEN A NEW
GOVERNMENT IS UNMATCHED IN THE
EMERGING MARKETS.
NEXT, THE LATEST IN THE
IMPEACHMENT PROCESS.
THIS IS BLOOMBERG.
♪
>> FIRST WORD NEWS.
TO DISCOVERORKING
WHETHER IT CAN FOREIGN SERVICES
ARE HACKING ELECTION SYSTEMS.
THE DIRECTOR OF THE FBI DID NOT
CITE A SPECIFIC COUNTRY, BUT
OFFICIALS HAVE RAISED THE
POSSIBILITY THAT HACKERS LINKED
TO RUSSIA COULD TRY TO ACCESS
VOTING SYSTEMS TO INTERFERE WITH
ELECTIONS THIS FALL.
ARIZONA SENATOR JOHN MCCAIN IS
SEEKING A SIXTH TERM.
IS HOPING TO PULL OUT A
VICTORY SO HE CAN FOCUS ON THE
FROMAL ELECTION CHALLENGE
ANN KIRKPATRICK.
FLORIDA VOTERS GO TO THE POLLS.
MARCO RUBIO FACES HIS OPPONENT.
THE U.S. AGRICULTURE DEPARTMENT
CLOSED OFFICES IN FIVE STATES
AFTER RECEIVING ANONYMOUS
THREATS.
THE USDA SPOKESMAN SAID THE
DEPARTMENT RECEIVED ANONYMOUS
MESSAGES THAT RAISE SAFETY
CONCERNS.
THE CLOSE OFFICES ARE IN OUR
WATER, CONNECTICUT, NORTH
CAROLINA, AND WEST VIRGINIA.
,OHN KERRY A IS IN INDIA
PUSHING FOR MORE COOPERATION ON
TRADE, DEFENSE, AND ENERGY.
THE TWO COUNTRIES ARE TRYING TO
EXPAND TRADE FIVEFOLD TO $500
BILLION A YEAR.
HAVE BEENIALS
PRESSING INDIA TO QUICKEN
REFORMS THAT WOULD MAKE IT
EASIER FOR FOREIGNERS TO INVEST
THERE.
GLOBAL NEWS 24 HOURS A DAY
POWERED BY MORE THAN 2600
JOURNALISTS AND ANALYSTS IN MORE
THAN 120 COUNTRIES.
THIS IS BLOOMBERG.
RECAP OF TODAY'S
ACTION.
IN EQUITIES, A RETREAT FROM
ALL-TIME HIGHS.
E DOW OFF .25%
.
THAT'S STILL ABOVE STRATEGISTS
FORECASTS FOR YEAR-END.
S&P SO ODD TO SEE THE
FAR ABOVE WALL STREET
STRATEGISTS.
THEY TEND TO BE OPTIMISTIC IN
AUGUST.
THE NASDAQ DOWN .2%, APPLE WIPED
OFF THREE POINTS BE CAUSE OF
THIS IRISH TAX PROBLEM.
JOE: FINANCIALS ARE THE ONE
CATEGORY RALLYING THANKS TO A
STEEPENING YIELD CURVE, WHICH IS
MUCH DIFFERENT THAN WHAT WE HAVE
SEEN IN RECENT DAYS.
"WHAT'D YOU MISS?"
BRAZILIAN STOCKS IN
2016 IS LEADING THE EMERGING
MARKETS.
YOU CAN SEE WHAT A MONSTER RALLY
SENATEBEEN AS BRAZIL'S
IS WRAPPING UP THE IMPEACHMENT
OF DOMA RUE SAIF -- THE
PRESIDENT TOMORROW.
DO THE FUNDAMENTALS OF THE
ECONOMY JUSTIFY THIS RALLY?
LET'S TALK TO THE CHIEF
ECONOMIST AND HEAD OF LATIN
AMERICAN ECONOMIC RESEARCH I
GOLDMAN SACHS.
THANK YOU FOR JOINING US.
AN EXTRAORDINARY RALLY ACROSS
THE BOARD, THE CURRENCY HAS HAD
A HUGE YEAR.
WHAT IS BEING PRICED DAN?
HOW MUCH IS IT ABOUT THE
IMPEACHMENT, GLOBAL MACRO
INDICATORS, ABOUT THE DOMESTIC
DO WE NEED TOHAT
SEE AND THE DOMESTIC ECONOMY FOR
IT TO CONTINUE?
>> EXTERNAL ENVIRONMENT, A LOT
.ORE SUPPORTIVE
THE RATES IN THE CURRENCY HAVE
BEEN REFLECTING THAT.
THE FINAL IN PEACH MINT VOTE IS
EXPECTED TO CLEAR CONGRESS
TOMORROW.
THAT IS A LOT OF HOPE THAT
WILL LEAD TO A BETTER POLICY
FRAMEWORK, AND ADMINISTRATION
WHERE CONDITIONS ARE STRONGER.
IF YOU LOOK AT THE PERFORMANCE
OF THE CURRENCY, UP 22%, AT NINE
PERCENTAGE POINTS IN CARY, TOTAL
RETURN OF MORE THAN 30%.
35%, 65% IN DOLLAR
TERMS.
POUNDS.% IN
POUNDSARE A #INVESTOR --
INVESTOR, YOU HAVE ALMOST
DOUBLED YOUR MONEY.
A REFLECTION OF THE HOPE
INVESTED IN THE POLITICAL
TRANSITION.
IT LEADS US TO ANTICIPATE A
TURNING POINT.
CONFIDENCE INDICATORS HAVE
IMPROVED, INDUSTRIAL PRODUCTION
SHOWS THE CYCLE MAY BE ABLE TO
STABILIZE.
WE NEED THE ADMINISTRATION TO
DELIVER MORE ON THE FISCAL
FRONT.
INTERVENTION BY
THE CENTRAL BANK? THE CURRENCY
IS WEAKER TODAY.
HOW MUCH DOES THAT PLAY INTO
THIS?
COULD THAT PUT A STOP TO THIS
RALLY?
THE CENTRAL BANK HAS PLAYING
IT LIGHTLY IN TERMS OF
INTERVENTION.
THEY HAVE BEEN UNWINDING THE
WAPS.R S
I DON'T THINK IT IS A FORCEFUL
DRIVER ON DAY-TO-DAY ACTION.
MAY BE A DAY LIKE TODAY, MORE OF
AN IMPACT, BUT OVERALL THEY ARE
DISPOSED -- LESS DISPOSED TO
INTERVENE IN THE FX MARKET.
JOE: ASSUMING THE NEW
ADMINISTRATION REMAINS
PERMANENT, IT IT NEEDS TO DO
MORE ON THE FISCAL FRONT.
TALK SPECIFICALLY ABOUT WHAT THE
TASK AHEAD IS.
>> IT IS MONUMENTAL.
PRIMARY FISCAL DEFICIT 2% OF
GDP.
A PRIMARY SURPLUS OF 3-3
.5% OF GDP.
THE ADMINISTRATION IS GOING TO
GO IN INCREMENTAL STEPS.
THERE ARE TWO BILLS THAT NEED TO
BE SUBMITTED TO CONGRESS, AN
AMENDMENT TO CAP THE GROWTH OF
PRIMARY SPENDING.
CLEARPE IS THAT WILL
CONGRESS WITH NOT TOO MANY
LOOPHOLES.
THE SECOND ONE IS A STRONG
SOCIAL SECURITY REFORM THAT
A TREE FORE CHURCH
THE SOCIAL SECURITY SYSTEM.
THE THAN THAT, WE NEED
GOVERNMENT TO STOP ACCOMMODATING
DEMANDS FOR ADDITIONAL SPENDING
FOR INTEREST GROUPS.
IN THE YOU LOOK
TERMINAL, I'M LOOKING AT THE
WAYIL MISERY INDEX, A CRUDE
OF LOOKING AT THE PAIN IN THE
ECONOMY, ADDING THE INFLATION
RATE TO THE UNEMPLOYMENT RATE,
EXTREMELY HIGH.
THE YEARS HAVE NOT BEEN KIND TO
THESE EXPANSIONARY AUSTERITY
IN AIES THAT GOVERNMENTS
DEEP ALL NEED TO CUT SPENDING.
, WHY ARELOOK AT EUROPE
YOU CONFIDENT THAT IS THE RIGHT
PRESCRIPTION?
SHOWING HOW WAY OF
PAINFUL THE SITUATION IS.
OF THE IS A REFLECTION
IMBALANCES THAT HAVING HUMAN
RELATED OVER THE LAST FEW YEARS.
YOU END UP WITH INFLATION AND
DOUBLE DIGITS IN 2015.
THIS IS AN ADMINISTRATION THAT
EXPANDED WAY TOO MUCH.
THE FEAR THAT ON THIS PATH WE
WILL GO INTO FISCAL
UNSUSTAINABLE SITUATIONS.
KEY TO RECOVER CONFIDENCE.
LEVELS OFEN DEPRESSED
CONSUMER AND BUSINESS
CONFIDENCE, AND PART OF THAT WAS
RELATED TO THE MASSIVE FISCAL
EXPANSION IN RECENT YEARS.
>> YOU TALK ABOUT THE GREAT ASK
AHEAD FOR THESE PHYSICAL CHANGES
AND THE HOPE IN THIS POLITICAL
THE NEWON, HOW FAR DOES
PRESIDENT HAVE TO ACT ON THESE
NEW REFORMS AND MEASURES TO KEEP
BUOYANTET POINT -- AND
-- BUOYANT?
WE UNDERSTAND THAT SOME OF
THESE MEASURES ARE POLITICALLY
SENSITIVE AND UNPOPULAR, BUT
THAT DOES NOT MEAN THEY ARE NOT
NEEDED.
THEY ARE CRITICALLY NEEDED.
ONCE THE IMPEACHMENT CLEARS, THE
MARKET WILL BE FOCUSING ON THE
CAPACITY OF THE ADMINISTRATION
TO COLLECT CONGRESS INTO
ADJUSTING.
MATT: WE WILL TAKE A BREAK.
ABOUTL CONTINUE TALKING
ECONOMIES OF SOUTH AMERICA.
NEXT WE WILL TALK ABOUT CHILEAN.
THIS IS BLOOMBERG.
♪
MATT: TIME FOR THE BLOOMBERG
BUSINESS FLASH.
GENERAL ELECTRIC BUYING SHIP
EXPRESS TO BOLSTER ITS SUPPLY
CHAIN OFFERINGS FOR RAILROAD
CUSTOMERS.
TERMS WERE NOT DISCLOSED.
GE IS HUNTING FOR DEALS TO
STRENGTHEN ITS SOFTWARE
BUSINESS.
CLEAR SKIES AHEAD FOR THE FIRST
U.S. COMMERCIAL FLIGHT TO CUBA
SINCE THE 1959 REVOLUTION.
JET LOSE FLIGHT TOMORROW WILL
ORIGINATE IN FORT LAUDERDALE,
FLIGHT -- JETBLUE'S
TOMORROW WILL ORIGINATE IN FORT
LAUDERDALE, FLORIDA.
IT WILL BE THE FIRST OF AS MANY
AS 110 DAILY FLIGHTS TO CUBA.
AMERICAN AIRLINES WILL BEGIN
FLIGHTS TO CUBA IN SEPTEMBER.
RIVAL HIGH-FREQUENCY TRADING
IN TALKS TO BUILD A
CHICAGO TO JAPAN COMMUNICATIONS
LINK.
PROJECT WOULD
INSTALL A LINE OF MICROWAVE
TOWERS FROM CHICAGO TO THE WEST
COAST.
THE TOWERS WOULD CONNECT TO AN
UNDERSEA CABLE TO ASIA.
THE COMPANIES INVOLVED ARE SAID
CITADEL AND JUMP
TRADING.
THAT IS THE BLOOMBERG BUSINESS
FLASH.
>> DASHED HOPES FOR AN END TO
CHILE'S ECONOMIC SLUMP.
MANUFACTURING AND MINING
CONTRACTING.
INDUSTRIAL PRODUCTION HAS FALLEN
.OR FOUR CONSECUTIVE MONTHS
ARE THERE ANY CATALYSTS ON THE
HORIZON.
EXPERIENCED ITS FIRST
ECONOMIC CONTRACTION IN SIX
YEARS DURING THE SECOND QUARTER.
IS THIS ABOUT COPPER OR IS THERE
MUCH MORE TO THIS?
>> THERE IS MUCH MORE TO IT.
WE HAVE MANUFACTURING PRODUCTION
, MINING PRODUCTION SLUMPING, SO
THE INDUSTRIAL SECTOR IS
RETRENCHING.
THERE IS SOFTNESS EMERGING IN
THE LABOR MARKET.
PUBLIC CONSUMPTION AND
INVESTMENT HAVE BEEN CONSTRAINED
BY THE LIMITATIONS THAT HAVE
BEEN IN POST ON THE BUDGET, SO
OUR EXPECTATION IS THAT GROWTH
IS BEEN MODEST AND IS EXPECTED
TO REMAIN SO FOR THE NEAR
FUTURE.
THAT IS SOMETHING THE CENTRAL
BANK IS PAYING ATTENTION TO IN
THE WAY THEY HAVE BEEN
COMMUNICATING THAT THEY WILL
STOP THE NORMALIZATION OF
MONETARY POLICY GIVEN THE
SOFTNESS EMERGING.
-- PESO PAY SO HAS HAD
HAS HAD A STRONG YEAR.
MORE TONEED TO WEAKEN
HELP BRING THE ECONOMY INTO
BALANCE?
>> YES AND NO.
SOME OF THESE ISSUES ARE RELATED
TO THE OVERALL DECLINE.
A FREER CURRENCY IS NOT
LUNCH.
IT WOULD PUT PRESSURE ON
INFLATION, NOW RUNNING ABOVE
TARGET, AND THEN PUT PRESSURE ON
THE CENTRAL BANK TO INCREASE THE
WEIGHT OR DELAY ACCOMMODATION.
WE HAVE A BEARISH VIEW ON COPPER
GOING FORWARD WITH AN ECONOMY
UNDER PERFORMING AND EXPECTED TO
GROW LESS THAN 2% THIS YEAR.
OF HOW MUCHTION
DEPRECIATION YOU NEED.
HAVE A CHART OF COPPER
WITH A TRENDLINES.
HAVE AF PEOPLE DO
BEARISH VIEW BECAUSE THE STOCK
FILES THAT HAVE NOW TURNED
AROUND AND ARE STARTING TO GROW.
HOW KEY IS THIS FOR CHILE'S
ECONOMY?
>> IT IS QUITE IMPORTANT.
IT IS NOT THE OVERRIDING CONCERN
FOR THE MACRO ECONOMY MOVING
FORD.
-- MOVING FORWARD.
EXPORTS,ANCE OF COPPER
THECHILE IS OPEN TO TRADE,
TERMS OF TRADE CAN BE A
MEANINGFUL IMPULSE TO THE
ECONOMY.
MENTIONED THAT THE TASK
AHEAD FOR THE BRAZILIAN
GOVERNMENT'S FISCAL
CONSOLIDATION.
FISCAL PICTURE
AND DOES THE GOVERNMENT HAVE
POLICY LEVERS?
>> IT IS NOT AS DRAMATIC AS
BRAZIL.
THEPUBLIC DEBT IS LOWER AND
CARRYING COST OF THAT DEBT IS
LOWER.
THEY HAVE BEEN ABLE TO FIND THAT
DEBT AT MUCH LOWER REAL INTEREST
RATES.
THE CAPACITY TO USE THE BUDGET
IN AN EXPANSIONARY WAY IS
LIMITED.
YOU ALSO NEED TO EVOLVE ONCE YOU
ACCOMMODATE.
THE TREND OVER THE MEDIUM-TERM
SHOULD BE TOWARDS LOWER DEFICITS
AS WELL.
>> THANK YOU SO MUCH FOR JOINING
US.
MATT: APPLE IS ORDERED TO PAY
MORE THAN $14 BILLION PLUS
INTEREST IN A THREE-YEAR EU
CRACKDOWN AGAINST CORPORATE TAX
AVOIDANCE.
WE WILL BREAK DOWN THE DECISION
AND IRELAND'S REACTION.
DO THEY EVEN WANT THE MONEY?
THIS IS BLOOMBERG.
♪
>> "WHAT'D YOU MISS?"
THE EUROPEAN COMMISSION HAS
ORDERED APPLE TO PAY MORE THAN
$14 BILLION PLUS INTEREST IN A
TAX CASE.
IT IS THE LARGEST TAX PENALTY IN
A THREE-YEAR CAMPAIGN AGAINST
CORPORATE TAX AVOIDANCE.
APPLE AND IRELAND ABOUT TO FIGHT
THE DECISION.
WE ASKED IF THEY ARE STRETCHING
RULES RIGHT USING THEM TO
ENFORCE NEW TAX LAWS.
>> NOT AT ALL.
TAXATION IS A MATTER FOR MEMBER
STATES.
NO MEMBER STATES CAN GIVE OUT
SELECTIVE BENEFITS TO A COMPANY.
IT IS A LONG-STANDING PRACTICE
THAT GOES BACK TO THE 1950'S.
IN THAT RESPECT, THERE IS NO
NOVELTIES HERE.
THIS IS THE WORK WE ARE SUPPOSED
TO DO.
>> THERE IS DISAPPOINTMENT FROM
BOTH PARTIES AND THE U.S.
TREASURY.
YOU WHAT THEY
SAID.
THE TREASURY IS DISAPPOINTED
THAT THE COMMISSION IS ACTING
UNILATERALLY AND THE PARTING
FROM THE IMPORTANT PROGRESS THAT
THE U.S. COME THE EU, AND THE
INTERNATIONAL COMMUNITY HAVE
MADE TOGETHER TO COMBAT TAX
AVOIDANCE.
WHY DID YOU FEEL THE NEED TO ACT
OCD HASALLY WHEN THE
MADE SO MUCH PROGRESS OVER THE
LAST THREE YEARS?
IMPORTANT A VERY
POINT, THE PROGRESS WE HAVE MADE
OVER THE LAST YEAR.
IN THE EUROPEAN UNION, NEW
LEGISLATION HAS BEEN PROPOSED
AND PASSED AND IS NOW BEING
IMPLEMENTED.
GOOD AND FINE
BECAUSE IT MAKES THE GLOBAL
TAXATION MUCH FAIRER IN THE
FUTURE AND TAXATION AS SUCH MORE
TRANSPARENT.
THE CASE HERE IS SPECIFIC.
WE HAVE A LONG-STANDING
PROHIBITION OF MEMBER STATES
HANDING OUT BENEFITS OR
ADVANTAGES TO SPECIFIC
COMPANIES.
THANIS THE CASE HERE, MORE
IT IS A CASE OF TAXATION.
THESE BENEFITS CAN COME IN THE
FORM OF A CHEAP PIECE OF LAND, A
GENEROUS LOAN, A GRANT, OR A TAX
BENEFIT, AND THAT IS THE CASE
HERE, MUCH MORE THAN IT IS A
CASE OF INTERFERING IN THE VERY
GOOD WORK DONE BY THE OECD OR
G-20.
IRELAND ALSO PLANS TO
FIGHT THE RULING.
EARLIER TODAY ON BLOOMBERG, THE
IRISH FINANCE MINISTER REJECTED
ARGUMENTS THAT APPLE IS GETTING
SPECIAL TREATMENT.
APPLEDON'T MANAGE HOW
ORGANIZES THEIR AFFAIRS.
WE TAX THE ECONOMIC ACTIVITY
THAT MULTINATIONAL COMPANIES
CARRY OUT IN IRELAND.
IF THERE WERE ANY RANGED IN'S
MADE BEYOND IRISH LAW AND THE
COMPETENCE OF THE IRISH TAX
AUTHORITIES AND AN ARGUMENT IS
BEING MADE THAT APPLE DOES NOT
, THEN IT IS A
MATTER FOR OTHER JURISDICTIONS.
THE COMMISSIONER IN HER PRESS
STATEMENT TODAY HAS ACKNOWLEDGE
THAT.
THE TAXI ISE OF
ATTRIBUTING TO IRELAND MAY BE
DUE TO OTHER EUROPEAN COUNTRIES
AND ADVISES THEM TO LOOK FOR THE
ATTACKS.
SHE ALSO SAYS THAT IF APPLE
WANTS TO MAKE AN ALTERNATIVE
ARRANGEMENT WITH U.S.
AUTHORITIES IN TERMS OF
TO RESEARCH PROFITS
AND DEVELOP MEN COSTS, THEN THEY
SHOULD DO THAT, SO BY HER OWN
PRESS STATEMENT, SHE ADMITS THE
LIABILITY MAY NOT BE IN IRELAND
AT ALL, BUT ELSEWHERE.
700 U.S. COMPANIES
EMPLOY 40,000 PEOPLE IN IRELAND.
INVESTMENT,MAGE
JOBS?
WHAT IS YOUR MESSAGE TO U.S.
COMPANIES DOING BUSINESS IN
IRELAND TODAY?
ALL, WHEN THE
EUROPEAN COMMISSION WITH THE
ASSISTANCE OF THE IRISH
AUTHORITIES WERE RESEARCHING THE
APPLE CASE, THEY LOOKED AT
ALMOST 100 COMPANIES, AND MOST
OF THE SIGNIFICANT AMERICAN
INVESTORS IN IRELAND WERE LOOKED
AT, AND THE COMMISSION HAVE COME
TO THE CONCLUSION THAT THE ONLY
CASE THEYASE IS THE
ARE PROSECUTING AGAINST APPLE,
SO THERE IS NO CONTAGION EFFECT.
DON'TAM SAYING IS THAT WE
THINK THIS DECISION IS VALID AND
WE WILL APPEAL THIS DECISION AND
WE ARE SAYING THAT WE WILL STAND
BY THOSE COMPANIES THAT INVEST
IN IRELAND AND WE WILL APPLY THE
TAX REGIME APPLICABLE UNDER
AND WE HAVE ASSURANCES
FROM MANY OF THEM THAT THEY WILL
CONTINUE TO INVEST IN IRELAND
AND CREATE JOBS IN IRELAND.
JOE: THAT WAS IRELAND'S FINANCE
MINISTER.
COMING UP, WHICH YOU NEED TO
KNOW TO GEAR UP FOR TOMORROW'S
TRADING DAY.
MATT: THIS IS BLOOMBERG.
♪
THIS, JAPANS
INDUSTRIAL PRODUCTION TONIGHT AT
7:50 P.M. EASTERN TIME.
VALOR-YEN THE HIGHEST IN A
MONTH, THE DOLLAR ON A FIFTH DAY
OF GAINS.
MATT: IT'S TIME TO GO TO TOKYO.
DON'T MISS THIS, GERMAN
UNEMPLOYMENT TOMORROW AT 3:55
A.M.
WE ARE LOOKING FOR A RATE OF
6.1%.
JOE: I WILL BE LOOKING AT
PENDING HOME SALES TOMORROW,
10:00 A.M.
ECONOMIST LOOKING FOR A 2.2%
RISE FOR JULY DATA.
A LOT OF HOUSING DATA AND DATA
OVERALL FOR THE U.S., OTHER DATA
IS ADP EMPLOYMENT, CHICAGO PMI,
SO LOTS MORE COMING UP OVER THE
NEXT SEVERAL DAYS.
YOU DON'T WANT TO MISS IT.
MATT: NONFARM PAYROLLS ON
FRIDAY.
JOE: HAVE A GREAT EVENING.
THIS IS BLOOMBERG.
♪
>> I AM DONNY DEUTSCH.
>> I AM JOHN HEILEMANN.
GOOD LUCK BEATING THIS.
>> RICK PERRY READY TO SHOW OFF
HIS TEXAS TWO-STEP.
>> TEXAS TWO-STEP.
>> TEXAS TWO-STEP.
♪
JOHN: ON THE DANCE FLOOR
TONIGHT, DONALD TRUMP'S
IMMIGRATION SO LOW AND DONNY AND
I SHOW OFF OUR JAZZ HANDS.
LESS THANEARSALS FOR
A MONTH BEFORE DONALD TRUMP AND
HILLARY CLINTON FACE-OFF IN
THEIR FIRST DEBATE, THE RITUAL
OF GENERAL DEBATE PREP.
THE NEW YORK TIMES FOLLOWED UP
WITH A REPORT ABOUT HOW
CLINTON'S CAMP IS TAPPING
PSYCHOLOGISTS AND DONALD TRUMP'S
GHOST WRITER TO GET UNDER HIS
SKIN ON STAGE.
HAS CLINTON FOLKS RAISE
EXPECTATION, JOEL BENENSON WENT
BC.MSN
MEANWHILE, DONALD TRUMP IS MORE
INTERESTED IN HIS INSTINCTS.
DONALD TRUMP OPTED FOR A MORE
STRAIGHTFORWARD DISCUSSION OF
DEBATE TOPICS TO EXPRESS HIS
CONCERN OVER OVER PREPARING.
NEW CEO ROGER
AILES SHOWED UP WITH A BLACK
EYE.
WE WILL HAVE FUN WITH DEBATE
PREP LATER IN THE SHOW.
FOR NOW, WHAT ARE THE STRATEGIC
AND CHALLENGES
FOR PREPARING FOR THE DEBATE?
DONNY: THE GREAT THING ABOUT A
CAMPAIGN AND THE PROCESS IS WE
GET TO SEE A DRESS REHEARSAL.
TRUMPET FROM THE GUT.
GUT.UMP FROM THE
HILLARY IN THE BOOKS.
HERARY'S BIG PRO IS
COMPETENCY.
HER BIG CON IS SHE IS ON
TRUSTWORTHY -- ON TRUSTWORTHY.
IN THE DEBATE, HILLARY CAN PLAY
TO HER STRENGTHS.
TRUMP CAN'T PLAY THE OUTSIDER IN
A DEBATE.
,IS TEMPERAMENT CAN BE IN PLAY
SO HIS STRENGTHS AND WEAKNESSES
PLAY TO HILLARY'S STRENGTH.
JOHN: SHE WILL PREPARE FOR THIS
DEBATE BY STUDYING, BEING THE
WONK, KNOWING THE POLICY, BUT
SHE MUST TRY TO PROVOKE HIM.
NK HIM.'T OUT WO
SHE IS GOING TO GET UNDER HIS
SKIN.
HE NEEDS TO ALLAY THE FEARS THAT
HE IS NOT SUITED FOR THE OFFICE.
THAT IS HARDER.
BEING HIMSELF IS THE PROBLEM.
DONNY: WE KNOW AND THE
PSYCHOLOGISTS HAVE SAID THAT
WHEN YOU GO AGAINST HIM AS AN
UNSUCCESSFUL BUSINESSMAN, NOT AS
RICH, PUT PINS IN THEM, HE
REACTS.
ONHAVE SEEN DONALD TRUMP
STAGE TO AN AUDIENCE GO AT
HILLARY CLINTON.
IT WILL BE A DIFFERENT THING