tv Bloomberg Markets Bloomberg August 1, 2016 10:00am-11:01am EDT
bloomberg television. ♪ vonnie: we are going to take you from detroit to london and territories and china and washington d.c. in the next hour. a big move at elon musk at tesla pay $2.26ree to billion for solar city. it was criticized as a bailout. elon musk is the largest shareholder. mark: robert kaplan of to bloomberg about the prospect of a rate hike this year. he says september is still on will bee, but the 2017 watching a key report. uber is selling itself to chinese competitor didi.
about 30 minutes into the trading day in the u.s. we start with economic data. julie: manufacturing get expanded july, but it was at a slower pace. this is an institute of supply management. 52.6.coming in at we should mention, the median forecast was 53. coming in a little below at had what had been estimated. employment contracted for the seventh month as part of this report. we get the overall jobs report friday. the major averages remain mixed in the wake of this report. snp pulling back slightly. nasdaq is trading higher. goldman sachs cut stock to an under weighted tactical trade, but nonetheless, adding to
bearish sentiment this morning. if you look at the groups on the move within the s&p 500, energy shares of the worst performers, down 1.9%. we do have health care holding up well. those of the opposing poles at the morning -- poles at the moment. energy is falling because oil prices, which are pulling back for the seventh session in the past eight. getting close to $40 a barrel. down by 2% as we have seen this drop in oil. july was the work -- july was the worst month for oil. within the oil stocks, we are company to agree to buy out for 29 million dollars worth of stock. back 6%.s are pulling verizonpurchase by
which bought yahoo!, or agree to buy it. irishagreeing to buy an company that makes gps tracking software. it is a 40% premium. rising.nnix is mark: the peak today was 25 minutes into the session. the stoxx 600 was up two thirds of 1%. right now, down by two thirds of 1%. all industry groups, but to come are declining. rose for a third week last week. 3.6% wash, 3% rally, the best since october. look at the worst performing industries. it is all about the banks following the release of those stress tests after the market closed friday. look at the best performer up by 3%. the world oldest bank is the
europe's riskiest, the only one up to have its capital wiped out in the most adverse scenario. they will try to raise 5 billion euro. among the other big lenders, barclays was worse than deutsche bank. luna credit was the worst performer. it is the worst performer of the stoxx 600 banks index, down by 8%. let's get to u.k. manufacturing -- it was grim reading on the pmi number today. 48, below 50, showing a contraction in the industry, lower than the initial estimates a few months ago. the lowest we have seen at least 2013. sets us up nicely for thursday's boe meeting. eurozone manufacturing coming to 52.8.2
output expanded in germany, but it is the latest signed that uncertainty, from brexit, is beginning to take its toll on the eurozone. let's check in on first word news. alisa parente has more. >> in syria, a rush and helicopter has been --a russian helicopter has been shot down killing all on board. moscow is a helicopter was shot down during an humanitarian mission. kabul,ound stand -- and afghanistan, isis has claimed responsibility on a bombing. one officer was killed and three others were wounded. police say they killed two attackers in a gunbattle. theresa may says she is committed to the triple loss
guarantee. it enters retirement payment rise by inflation -- it says that retirement payment rise by inflation. they said the cost of trouble lock the enormous by the end of the decade. donald trump is firing back at critics over his remarks but the parents of a dead muslim american soldier. trump questioned whether the soldier's mother wasn't allowed to speak because she is muslim. the woman said she was too distraught. and a tweet, donald said it is not about the soldier's family, but it is about terrorism in the u.s. gold star families have written a letter to manning an apology trump written a letter to demanding an apology. regardingt comments
the family were repugnant and personally defensive to us. the letter was published. the father of the u.s. army captain, spoke last week at the democratic convention. global news 24 hours a day, powered by 2400 journalists, in more than 150 news bureaus across the world. i'm alisa parente. this is bloomberg. thanks. we are kicking off the first day of august with fake m&a news. solar city is falling -- the price comes in what was initially offered. biggest deal to date. aboutusk spoke earlier the murder on a conference call. >> it is all a part -- elon musk spoke earlier about the merger on a conference call. >> [indiscernible]
we are trying to accelerate the advent of sustainable energy. this is an important step in that direction. david, tesla goes through a lot of cash and is a lot --go through a lot of cash. flow inty needs cash order to make new installs. is it wise for the two of them to get together? >> just how elon musk going to fund this for both companies. that, he laidyond out his master plan a couple of weeks ago that calls for a pickup truck, a delivery van, a bus, a grand vision that will fire a lot of money -- that will require a lot of money. that is a question he has not answered.
how he is going to get all of this done when both companies are burning cash. vonnie: does he have the reputation? does he have the confidence of to get itd funders done? >> at the moment he does, but we have seen that waiver. planhe laid out his master a week ago, the stock also dropped in the stocks in both companies in both tesla and solar city are down today. investors may start to question whether he can pull this off and maybe he is biting off more than he can chew. does he really have the ability to get this done? he will have to show early results if he wants to keep investors in his corner and maintain the ability to raise money. vonnie: what are the advantages for tesla? >> the advantages of this deal? what he is saying is that there are synergies in the deal that
was saved them $150 million a year. a lot of that is revenue. he said he will have people shopping in one place. they could buy a tesla car, batteries for the storage system, and charge it up with solar energy. sales.f this is joint they can pull a lot of cost out of each other's business. the vision is really, if you are a tesla investor, there is a school of thought that if the investor buys into one of these companies are really investing in elon. thefact that they are not same business and may not go that great together, it don't buy the vision. in these companies is to invest in elon. mark: what is next? >> the solar city shareholders have to agree to this deal. elon says he will not vote his
shares. that will be an interesting piece because he is giving the solar city shareholders less value than what he said he would give them. the tesla shareholders -- there is still skepticism that this is the right deal at the right time. he did not say a lot on the call today that led them to believe that he has got a lot of answers for the financial concerns in terms of taking on the debt. but there is really great synergy here. tesla can buy solar panels from anybody and do their own deal that way as opposed to merging with a company that is controlled -- mark: david wells, thank you for joining us. coming up, watching and waiting --dallas said president robert kaplan at his views on the economy's program. this is bloomberg. ♪
♪ mark: live from an overcast london and new york, i'm mark barton. vonnie: i'm vonnie quinn. you are watching "bloomberg markets." it is time for the bloomberg business flash. microsoft is planning its first trip to the bond market to find shareholder rewards. may sell bonds in as many as six parts. me yield twoght to percentage points. fleetmatics.ying
share forll pay $60 a the dublin, ireland-company. the deal is expected to close in the fourth quarter. your bloomberg business flash. mark: the federal reserve has plenty of data on its plate to digest. dismalast week's quarter, could the fed be revising its growth and inflation figures? here is what dallas that president robert kaplan told bloomberg's tom mackenzie in beijing. >> one thing i have learned in this job, the one thing you know about data released is they are going to be revised, at least more than once. so, i think what i will do in response to this is basically wait for more data. try to assess.
it causes are forecast to be less than 2%. we still believe the consumer is going to be strong in 2016. but it makes us also be very watchful or the next number of data releases to see what trend we are on. the one thing i would comment on this gdp report, the consumer was strong and second order dp. -- gdp. there was an inventory adjustment and sometimes they can work themselves out. i will be watching for that. 2016 -- the consumer will be strong in the united states. understanding we will have to watch for more information. >> the markets seem to be increasingly pessimistic about of as many rate
cuts as possibly the fed is being signaling. are they being overly complacent? >> are they being overly complacent? time will tell. our next meeting at the fed is not until september. we will have more data releases between now and then. tois just too soon to jump definitive conclusions. we will have to see as economy unfolds. aroundn the uncertainty building up until the november election, is it right that most market watchers now, i think it is around 20%, are now doctoring in the minority -- are now --are factoring in -- >> september is on the table. we will have to see how events
unfold. it is too soon to jump to conclusions on that. i have learned one of the things is as a central banker, you got to be patient, and we got time to make a judgment between now and the september meeting and i want to take advantage of that time. to jump reports between now and then that i want to get the benefit of that information before commenting. >> in terms of brexit, is that still weighing on the downside in terms of your forecast? if so, for how long? >> as i have said before on brexit, all things being equal, it is certainly not a positive for global growth at a time where we need more growth. having said that, i think our own working assumption is that it will have just a modest or marginal effect, negative affect on u.s. gdp growth. time will tell what the ultimate fx are for the u.k. and for europe. again, marginal impact is our
working assumption on u.s. gdp. >> would you come in a potentially a need for the fed to widen its scope to look more widely at the international environment? i have said that and i do believe strongly, to be a central banker and the united is today, you have to think globally. , meaning,optional what happens today, for example in china, which is why i am here visiting, contract it not only the underlying economy, but very quickly through financial markets as we saw in january and february, when turmoil here transmitted global tightening of financial conditions. so, we have got to be aware of policy diversions and also we have to be aware of what is going on around the world, because any more global world, it can affect united states much more quickly. that has got to be a key part of our jobs, even though we understand our primary possibility be central bankers
to the united states. vonnie: fascinating comments there from dallas fed president robert kaplan. he is a vote in 2017 speaking earlier on bloomberg tv in beijing getting a series of speeches and china. still ahead, the dive into the etf market puts a spotlight on paternity of energy as tesla has a deal with solar city. this is bloomberg. ♪
in the market. first of all, we are looking at xiz, which is ever reverse index. what are we looking at this one of particular? >> we are looking to see how confident are people that volatility is teamed. is this one of these markets where the coast is clear? v will tell you all you need to know. this is a product that allows you to be the insurance seller for people who want to buy vix. you are going in verse vix futures. it makes money on vix going down. they always say that it is a product that suffers from futures. you can go long xiv. it is to do well. it is a great product for this fed environment, with a make stock prices go up because it is
a 400% in the past four years. this is a product that you would only by if you think everything is going to be chill for a while. julie: it looks like things will be chill for a while. >> the flows have been coming out a little bit. but again, if this thing gets hit hard with flows, that is a bullish sign. julie: we will be watching it. one of the deals have been watching is tesla's acquisition of solarcity. it happened despite criticism of the deal. there is an alternative etf. this brings me to how much does a company like solarcity move in tandem with the bigger alternative energy complex? >> it does a little and sometimes it does not. it is a whole idea of diversification. musk etf, he makes up a little over 13% up of tesla. if you want to capture those
two, i never see one person has so much affect on a etf. his two companies having his conjure it is to the price and gdx. if any etf needs a boost, it is this one. julie: the european banks you are watching our dropping after the stress tests. there is an etf for that. [laughter] >> interesting. it is taking 200 million and eight weeks even after brexit. people look to be playing a rebound. the pe is 11. and it was a evaluation gone hi, this is cheap, however it has not done well. interesting direction just came out with a double leverage version of it, bullish, but not bearish. if you wanted to go negative, you would short this one. european financials, there is no inverse. we have it -- we have seen it go of double is not average for this etf.
julie: i guess or was not a lot of optimism going into the stress text -- test i suppose? we will leave it there. eric talking us through the etfs. vonnie: still ahead on bloomberg television, coming out last week, i knew cbs poll shows voters across u.s. will vote for clinton over trump. shows market may rally either way. taking a look at the major averages, they are not doing too much. doubt up three points. nasdaq up .5%. this is bloomberg. ♪
♪olympics 2016, let me get you on my level. ♪ so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to wrestling. track and field to basketball. ♪ fencing to cycling. diving to balance beam. ♪ ♪all you have to sa♪ ♪ is, "show me," and boom it's on the screen♪
♪ from the bottom of the mat, ♪ ♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. vonnie: live from bloomberg world headquarters in new york and london, i vonnie quinn in new york. mark: i am mark barton. you are watching "bloomberg markets," on bloomberg
television. alisa parenti has more from the newsroom. alisa: supporters of turkey demonstrated in cologne, germany. police say some 20,000 people took part in a rally that have the slogan yesterday my pretty, no to the coup. organizers wanted the president to address the rally by teleconference, but german authorities turned down that request. china is being soldiers to leave the world's largest army. according to people familiar with the matter, military personnel have been getting generous bios to retire early. willme cases, soldiers receive at least 80% of their preretirement wages. china's president was to cut 300,000 troops from the 2.3 million on duty. later today, president obama addresses the annual convention of the disabled american veterans of atlanta. he will announce overall veteran homelessness has been cut nearly in half, 47%. he also say is a administration
has reached a halfway point in building a massive database on veterans health. baltimore isof facing a massive rebuilding effort after a weekend of deadly flooding. two people were killed is eight inches of rain fell during a three-hour span. cars,ng away hundreds of tearing away sidewalks and wrecking storefronts and building foundations. the majority of americans want college to be free, but they don't want to pay more in federal taxes to fund it. that comes from a poll conducted for the financial company bank rate. surveyed support debt for university education, but half don't want their tax bills increased for it. hillary clinton proposed free college for students who have parents who make under a certain amount of money. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti, this is bloomberg.
vonnie: alisa, thanks. thee months to go until u.s. presidential election. according to the latest poll conducted after last week's democratic convention, hillary clinton is leading donald trump by seven points. in the nationwide portion of the poll. the s&p will move higher this year, that is one thing that seems certain. matt winkler has a theory. he writes in the latest bloomberg view piece, its express and of confidence in the american clinical system with investors trusting voters enough every four years to act on their expectation of a brighter future , no matter who wins. matt joins us now with more. is it really that simple? does history tell us the stock market goes up everything that -- every single time? matt: 11 of the 13 presidential elections, whether it was a republican or democrat, the s&p
was above where it was the preceding year. they depreciated. -- that it was appreciated. there were two years that were striking for their grimness. was the 2000 election year, which the.com bubble burst earlier in the year. and then we have the disputed presidential election that was settled in december by the supreme court. in 2008, we have the worst recession since the great depression. there is talk that we might be headed back towards recession. there may be indications that was happening. that wouldn't be enough? matt: all the economic data shows that home prices are appreciating, unemployment is falling, the economy is still growing. the fed wouldn't be poised to be talking about raising interest rates if the economy wasn't performing. well enough to be considered healthy. mark: what if i'm a man who is
after a quick buck, who i vote for -- who do i vote for? if i'm a long-term investor, is a different outcome? matt: it is. in the election-year itself, republicans have a better return. if you vote for the democrat, you will get a better return over the ensuing three years. that is the contrast. it pretty much told all the way through. -- holds all the way through. vonnie: --mark: do have a theory on why democratic presidencies might perform better? -- democrats believe government can do good things, they are willing to spend on infrastructure. most recently, the obama administration, in its first term, recognized the plight of the auto industry and rescued it. general motors has never done
better, since that time. more recently, there was the affordable care act. it was a boon to health care companies in the united states. republicans, by contrast, distrust any kind of federal spending programs. they want to cut taxes instead. know, there is the problem, if you will come if they don't believe the government can do any good and they are leading the government, that does create its own element of uncertainty. up onlythe s&p 500 is 615% since the beginning of the year, but that's not bad. people are pointing out, if you look into my bloomberg, 2409 that there are elevated stock valuations according to a number of metrics. can that possibly have an effect on your theory? matt: of course it does. i would look at a great buy and hold investor, warren buffett. been increasing his
holding general motors, for example. increased his holding an ibm. earlier this year, he bought apple. that doesn't sound like somebody who thinks things are getting worse. if anything, he would say they are going to get better. you've always been an investor in america, for sure. mark: it's interesting looking at the nonelection years. what do the stats throw up about how the s&p 500 fared since 1964 in nonelection years? matt: nowhere near as well. you obviously have a lot more years. but to put it in the easiest to understand context, you have essentially five good years for every losing year with the election. you have only two good years for everyone losing year for the nonelection years. that's a pretty stark contrast right there.
matt winkler, bloomberg editor-in-chief emeritus. julie, breaking news. julie: another buyout of a solar company, this is a chinese-based u.s. traded, it's going to be going private, being bought by a group of chinese investors. $1.1 billion is the value of this, $11.60 per u.s. share. the shares are halted at the moment, the last trade was that $8.36. you saw a surge that began before shares were halted new spending. we will keep you posted a giving more details, but you know when it begins trading once again. mark: great stuff. coming up on "bloomberg markets," the battle between the uber anddd -- between didi is coming. this is bloomberg. ♪
vonnie: you are watching bloomberg, i'm vonnie quinn. mark barton, this is your global business report. another sign the brexit vote has taken a toll on the u.k. economy, manufacturing shrank more than forecast in july, suffering its biggest drop in more than three years. banks-- vonnie: shares of mostly cell after the result of stress tests. italy had the worst performer. mark: german chancellor on low merkel is one of the country's most popular politicians. but her political future is being tested by the refugee crisis, greeks, and the brexit
vote. vonnie: we begin with the new report showing the u.k. vote to leave the european union may have a harsher impact on the economy than first expected. british manufacturing shrank more in july than initially forecast. the index fell by the most in three years. it provides more arguments to cut interest rates to stimulate the economy. mark: new york fed president william dudley won't rule out an interest rate increase in the u.s. this year, in remarks appeared for a speech in indonesia. investigatorse are underestimating the number of times the fed will raise interest rates this year and the next. in beijing, robert kaplan talked to bloomberg about the prospect of a rate hike. kaplan: i think september is on the table, but we have to see how events unfold. it is too soon to jump to conclusions on that. i've learned as a central
banker, you have to be patient. time to make a judgment between now and the september meeting. i want to take advantage of that time. and to job reports between now and then, i want to get the benefit of that information before commenting. thinksaplan also said he the brexit vote will have only a marginal negative impact on the united states. paschi rosente despite being the worst performer in the european stress test. the bank is working on a plan involving private investors to help bolster its finances. another italian bank, unicredit, fell 5%. unicredit was the second worst performer in the stress test. heineken reports sales and missed expectations. the world's third biggest beer maker said revenue fell in key areas such as africa, russia, and the middle east. resort -- relies on
sales outside of europe because of falling demand. time time now -- vonnie: now for the bloomberg quick take. merkel is in the midst of her third term, and regularly ranks as germany's most popular politician. she is also the continents premier lightning rod, and her recent actions put her at unprecedented legal risk. on the merkel's vision of integration throughout europe is facing new challenges after a spate of violent attacks at home , and by britain's decision to exit the eu. the number of refugees spilling into europe ballooned in 2015. xenophobia, and insisted on the moral and legal obligation to shelter those immigrants. after more than one million migrants made their way to germany, merkel pushed for
mandatory quotas, even as she took the lead in negotiating in accord with turkey to help stem the influx. career as a previous a laboratory assistant, swept up in the democratic movement in the 1980's. at 35 years old, she ended up aligned with the cabinet in nation 99. she was voted into office as chancellor in november 2005 by a small margin. german citizens connected with her deliberate approach and anti-politician image. relating her twice. the 2013 victory was the biggest for any party since reification in 1990. here is the arguments. to recap thepush image of a network german powerhouse will pay off in the long run. critics complain she lacked vision in her approach has led
to stagnation. but the refugee crisis, greece, and to a lesser extent ukraine are testing her balancing act. you can read more about this topic and all our quick takes at ni quick on the terminal. had to bloomberg.com for more stories. mark: in european equities, we are 45 minutes from the end of the monday session. stocks were up 25 minutes into the session. they have been drifting lower cents after rising for three consecutive weeks. is .3% lower, led down by the banking industry. say the stress test results painted a fairly resilient picture for the banking industry. tests,he most resilient monte paschi capital was completely white out -- wiped out. they announced plans to raise capital. sterling low today, manufacturing data showed further weakness ahead of the
boe meeting on friday. that is the situation for sterling, euro, pound, pound yen, and the euro-dollar. let's focus on the big deal in the ridesharing space. uber in a stock deal worth $7 billion. i want to bring in tim culpin, for gadfly. he joins us. is there a huge sigh of relief among uber shareholders today, many clamoring for uber to sell its china unit. tim: that is exactly what we would be looking at from the uber investors. for burning lots and lots of money, reports saying at least $2 billion in china. of course, there was no profit coming out of it. they were really getting hammered in the market. they were getting maybe 20, 20 5% of the market compared to dvd -- two didi.
they were seeing they were getting pressure from shareholders to say you got to get a truce, we've got to get out of the situation. it's not going to turn around anytime soon. what travis and his team has done. they organize and negotiated the steel, whether managed to get out of china. and even get out of china with a little bit of a prophet, and by holding a stake in didi, which will be the remaining stake in this battle. mark: will the deal get a regulators? -- yet through regulators? tim: yes. i'm not a lawyer, but what we saw last week and the chinese regulator was a very important move in which they actually gave out regulations for right hailing apps like uber mdd -- and didi. they enshrined in law the validity and legality of that business model. it's a law that covers all of china. you don't have to go city by city and county by county,
province by province. it's a very big move. in doing so, they basically said yes, this is a business model we want to encourage. there is also other players in the market. there are also normal taxis. maybe there would be antitrust concerns, but didi is very well-placed in the government, they are tight with one regulators might be thinking. i don't think they would have negotiated a deal without believing they would get through any kind of antitrust issues. vonnie: tim, do shareholders of billion, butt $700 what happens to shareholders more broadly who lost $2 billion in china? uber china is a separate company. their shareholders include by do -- baidu.nd
they will also get some profitable revenue share from didi. those who invested in over should be -- in uber should get something as well. any don't necessarily burn more cash globally. a lot of the cash was getting burned in china. vonnie: does this set a precedent for a deal between in india orompany brazil? quite positive. the place they were getting hammered the most was china. they are surviving in other places. one of the important aspects of this deal with a lot of people haven't thought about is that although uber is in many countries, most of those do have small, local rivals. didi, theeresting is chinese company, has been going
out and signing cooperative deals with those companies, including a deal with lyft. that has been a key issue for uber to consider, that even outside of china, they are going to be facing didi on every corner. it wasn't just a competitor for them in china. they are a potential threat globally in any small-market they go to. didi didn't have to be in the local markets, all the needed was to have a local partner. in signing this deal and getting out of china is somewhat of a truce elsewhere. vonnie: tim culpin, bloomberg gadfly columnist in singapore. thank you. gadf on thepe bloomberg, or search gadfly. the latest trend in the travel industry. a look at the most bizarre programs hotels are offering to help travelers stay healthy on the road. ♪
vonnie: the hotel industry is itsing out the perks for most health-conscious guests, offering an array of wacky programs designed to help travelers unwind and stay healthy on the road. joining me is our resident leisure travel expert, nicky epstein. -- nikkipeople need to ekstein. people need to detox on the road. it's turned into a big business. you can imagine the hotels around the world in cities and the countryside, anywhere you look they are all trying to cash in. vonnie: the point of going on vacation used to be to indulge anyone every wanted and drink whatever you want to densely been all day and get some sunshine.
is that going away as a paradigm? nikki: i hope not. i think you can still do all those things, people don't feel like they need to take a vacation from their vacation or to feel overwhelmed by the time they come home. i think finding balance is really important. now it's got a happening in some very experiment a ways. we are seeing everything from igloos instead of saunas, intravenous hangover cures, which i think is completely beyond crazy. mark: that's the one i love. intravenous recovery. that was the one that jumped out at me. what does it involve? going to a spot, getting hooked up to an iv, and have them to review with vitamins and antioxidants that will make you feel better after a crazy night of partying. my days of partying are long gone. theink i'm going to go for personal meditation parlor. what does that involve? meditation and
being more present is an interesting idea for travel. you don't want to be tethered to your phone and not experiencing the place you are in. this is a simple, quick way to accomplish that goal. it's a bubble that you sit in for 20 or 30 minutes. it has soothing music and lighting that help you reset your brain. vonnie: what on earth is bathing? having a's about contemplative experience in nature. this is a retreat that happens to do these amazing yoga classes on a platform in the middle of the great smoky mountains. i can attest to the fact that it's incredible. vonnie: that's worth getting out of bed. they're are not in it for the right reasons. you can find her story and read more about luxury of bloomberg
pursuits. should we go? mark: i'm doing and intravenous recovery in an meditation pod. two for the price of one. coming up on the european close, we will get a take on the european stress test, and what they're looking at ahead of the boe rate decision of thursday. as well as whether the fed could hike this year. a quick check of european equities, we are 34 minutes away from the close of the monday session after a three-week again. the longest winning stretch for two months. stocks are lower today, this is bloomberg. ♪
you are watching the european close on "bloomberg markets." ♪ mark: we've been a take you from san francisco to london, stories out of italy and washington in the next hour. here's what we're watching today. follow from the european bank stress test, lenders dragging down equities, even as stress test results showed most of the firms would keep it as a quick level of capital in a crisis. why investors remain skeptical about the results. musk's tesla motors buys silver city for $2.6 million. $300 million less than the original proposal. and we look ahead to the bank of england decision this week as investors anticipate a possible interest rate cut for the first time in more than seven years.