we have the sweetest elections and the scottish independence oll, everyone will be back at their desk to see where the markets are heading. >> thank you. we will be back in 30 minutes. >> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> it is a sellout. alibaba will quit taking orders for its ipo a day early because of overwhelming demand for the shares. >> crackdown, the u.s. and europe impose new sanctions on russia. everyone is waiting to see if vladimir putin will retaliate. thrown for a loss. the nfl has fumble before. concerned that dropping the ball on ray rice might cause

some advertisers to leave. >> welcome to market makers. i am stephanie ruhle. erik is in d.c. i think we are going to get to the breaking news shortly. expecting some news on sanctions out of washington. why don't you take care of the newsfeed? >> the alibaba roadshow has been a big success. the chinese e-commerce company will start taking orders for its ipo a day early because of overwhelming demand. alibaba has enough orders to sell all the shares at the top of the market range. they will inch the price higher. a similar situation at apple. the new iphone 6 plus sold out a few hours after he became available for pre-order. it will not be available to ship for three weeks to four weeks.

it has a larger screen. the smaller iphone 6 is still available. a story about the dropout who made good. out of thepped university of maryland his freshman year. he made it big in videogames. the company to microsoft. million toged $31 the university of maryland for scholarships and the computer science building. last time you heard house speaker john boehner say "we ought to give the president what he is asking for"? saidis what john boehner yesterday. congress almost certainly will give obama approval for his plan to degrade and destroy the islamic state. with midterm elections weeks away, there are many unanswered questions about both foreign and domestic policy. here with me, byron dorgan from north dakota, served in congress

for 40 years and is now a divisor at aaron fox. the former republican senator for new hampshire, senior advisor at a law firm. thank you for being here. is the president, in your opinion, going far enough to degrade the islamic state. >> given where he has been in as far as hes is can take it right now in terms of congressional and outlook support. he's not going to have broad support for putting boots on the ground. he has said clearly he does not want to put boots on the ground. it is a question whether or not you tell your enemies what you tell your enemies what you're going to do. he should have bipartisan support for the activities in as well ast isil training and arming syrian moderate forces. >> senator dorgan, is he going

just far enough? >> he has been cautious. i am pleased with the fact that he is using caution. i think he will have the report -- he will have the support of congress. there are some that are very excited about embarking on this. i am very nervous. our country has to provide leadership. there is a reason to be nervous about how this ends. >> some have raised concerns about the expense of arming syrian rebels. ante risks. the question is to whether we can trust them. which of those do you share? >> we understand that those who have been calling for arms to be sent into the insurgents in syria, had we done that, a substantial part of that might have been in the hands of isis. this is a case where our allies in the region that want what we want are syria and iran.

that is byzantine. the larger question is will we see countries in the region decide to fight for themselves. will they put boots on the ground? this cannot be a mecca printing -- this cannot be america planting an american flag in the middle east. we had leadership responsibilities, but so too do countries in the region. >> there is the challenge of making sure the arms go to the right people. we knew who the right people were in syria months ago. the president dismissed them. the free syrian forces that are going to be getting the arms now. movementvalence, the on the part of the president -- it is a redline, it is not a redline. a little bit more difficult for those countries in the region that senator dorgan talks about to support the u.s. aggressively and firmly and clearly.

yes, support from saudi arabia and jordan and the uae. a little bit more uncertainty in places like egypt and turkey. we need to make sure that whatever we do, it is done effectively and consistently if we are going to restore and strengthen those relationships with crucial countries. >> it seems -- this is an issue both of you care about. the polls show americans, broadly, support military action against the sunni militants. do they care enough that foreign policy becomes a factor in the midterm elections? >> when you say the american people care, that is recent. what we have seen is grotesque americans on two television. that has changed a lot. an unbelievable form of communication, to murder two americans on television. the american people are responding to that.

most of the american people wonder about long-term commitments in the middle east. let me say, as somebody who has sat in a lot of top-secret briefings, as has my colleagues, i worry about intelligence. most of the intelligence prior to going into iraq turned out to be dead wrong. let's make sure we understand what is going on. let's also make sure we are not doing this alone. part of this fight has to be for countries in that region. >> the short answer is no. voters, come election day -- presidential or local -- they do andfocus on foreign policy what is happening abroad. they focus on domestic issues. this election will be no different. there is a little bit of upside. if things were to go well, it would improve the president's approval rating. it might help some democrats in

the general election. we could easily see things get worse in the region before they get better. that reflects on the president's approval, which does have an impact on the outcome. >> if americans care about the nested policy, of course, they do. why is it that your party has onome so silent or complicit issues about which it was previously so outspoken and passionate? like the budget, for example. >> they are operating under a budget agreement that was signed a year ago. when you talk about spending levels -- >> it is not as if the cr has been a foregone conclusion. >> is more of a foregone conclusion this time. patty murray and paul ryan agreed on the overall discretionary spending levels. those are not really at issue. the only thing that could hold of the cr is including riders. >> there are. issue might be

included. it is democrats up for reelection that are most uncomfortable with that kind of in addition. generally notre about good news. the republicans know that. there is some good news in the economy. the economy is beginning to strengthen. more people are going back to work. stock market is at a record high. there's a fair a lot of good news. this president took over the burden of an economy that was in the worst shape of any president in the last hundred years or so, the last 80 years. things have improved. we are turning to these foreign-policy issues. wantve got a mess and they to put that on the president's shoulders. it would not matter who was in the white house. >> they focus on these international issues, which are important. it might take away some of the attention on the so-called good news that senator dorgan was talking about.

these are second order effects. our to determine what a voter is thinking about when they cast the ballot. the president's poor approval this has a section with the economy, obamacare, they are going to be front and center. >> what about gridlock? i was talking to a democratic supporter on wall street. he said he does not matter what the outcome of the midterms is. we will have at least as much, if not more gridlock on the other side. if the democrats hold the senate, status quo. if the republicans take the senate committee the president will exercise veto powers. do you agree? >> i think that is the case. american people have to reward good behavior and punish bad behavior. it is hard to determine what is good and what is bad. both political parties need to understand that the interest of -- we are not at that point. it is likely that if we have

another election and nothing much changes. republican, i want republicans to take back the senate. i do believe it will make a difference. it is an easier negotiation when one party controls both chambers of congress and one party controls the white house. right now, with democrats in the senate and republicans in the house, obama in the white house. it is a complex negotiation. we have seen these negotiations fail in different ways. with republicans controlling ngress,ambers of co it is a more straightforward negotiation. the minardi, democrats, have some incentive to cooperate. their president gets credit for were whatever. if negotiations go badly, their president will veto. that is the way it was when

president clinton was in office in the 1990's. or rather, president bush and the democrats in congress, bush 41. clinton and the republican congress. you saw things getting done. if anybody thinks it is a good idea for the republicans to control the house and senate, go look at the agenda of the u.s. house. some of the most inventive things of the 1890's. unbelievable where it would take this country. keystoneetting the pipeline operating, which would be great -- >> senator -- fixing obamacare, which has been a mess and most americans do not support. these are not crazy ideas. they make sense. a you wonder whether it is good idea to have the republicans control the senate. >> americans are going to decide eight weeks from now. thank you very much. formerlyohn sununu,

representing the state of new hampshire, and byron dorgan, formerly representing north dakota. you thatike to remind bloomberg politics is coming to bloomberg television. will makedue respect" its debut on october 6. just in time to cover the final weeks before the midterms. back to you. >> coming up after the break, alibaba goes on the road and finds overwhelming demand for its ipo. take that, dr. dre. he revolutionized the headphone business. a company that is taking it a step farther. you are watching bloomberg television. ♪

>> alibaba closing the books on its ipo a day early. the e-commerce company has an of orders to sell shares at the higher end of the price range. for more, paul sweeney.

do they have enough orders or is it more like this thing is 10 times oversubscribed? >> i suspect it is way oversubscribed. launcht the new york with about 1000 other investors trying to get a peek at the story. incredible demand. we are hearing they had very good demand, probably well over what they need. probably with not a lot of price sensitivity, giving them confidence to say we can stop the roadshow a day earlier. -- do youthink we can think they can end up pricing this higher? >> they will take this weekend to take a look at demand. how much higher the institutional investors want to buy in after market. it is not just for what they want to buy at the ipo, it is in the aftermarket and at what price. prices not a lot of sensitivity in aftermarket orders, giving the underwriters

and a lot of of confidence to make the raise the range. >> is the roadshow just for optics? did anyone ask real questions or was everyone there to buy? >> it was a big get-together. the questions for the management were kind of prescreened. asked by one of the bankers from credit suisse. it was not until the very end that check ma -- it was not matil the very end that jack took questions live. it was a little scripted. most of the issues were brought to light. seems like it had a light of its own. >> any super legitimate investors ask questions? >> and a lot of hard questions are going to be asked are the one on meetings with the company sits down with big investors. fidelity, blackrock. those are going to be the anchor

investors for any deal. certainly a deal over $20 billion. >> is there a looming fear of facebook face plant? is it off the table? >> i think they are in pretty good shape. one of the reasons they chose the new york stock exchange was to mitigate the risk at the outset. long roadshow. scheduled originally for 10 days and going to every city, not just the york, l.a., and hong kong. owing to kansas city and chicago. barely zuckerberg could show his face. we know he cannot put a coat and tie on. jack ma not following his script. a busy week and everybody better get their alibaba orders in. we have more to cover after the break. we're going back to radioshack. they can use a jumpstart. running out of steam and capital. it a turnaround on the horizon? we find out. ♪

>> welcome back to "market makers." the clock is ticking for radioshack. the chain is still a widely recognized brand. but brick-and-mortar stores are becoming increasingly irrelevant. the effort to fight off bankruptcy raises a key question for investors -- what is really worth saving? i will bring in scott, who covers radioshack. he joins us over the phone. let's talk about radioshack. some very significant investors, smart investors, who seem to be backing them. what is so special about this company? >> thank you for having me. the key for radioshack has been its convenience. close to 90% plus of the population.

they have been a convenience store, the consumer electronics segment. the brand is widely known. the key question is what is worth saving? that is something we think comes into question here given the -- thetive scan competitive stance of a lot of other retailers in the segment. >> doesn't seem like those other retailers are at the same price point? you could go to a radioshack high-end as itas is, prices many people out. >> it depends on what you are looking at. historically, radioshack priced themselves as a convenience store, and advantage from a margin perspective but that has deteriorated because consumers are more aware of what things .hould cost the availability of products is larger. when it comes to repair, there are different leases you can take products. a lot of different options.

in many cases, they are better showcased at larger retailers like best buy that have space to do that. >> can you think of any other categoryin any other that has fallen as hard for as long as radioshack that was successfully resuscitated? withinne comes to mind my universe. i go back to sharper image a retailer everybody likes to shop and enjoyed looking around. it had good brand awareness. the losses began quickly and continued to mount. no recovery in sight. we've had larger examples with sears and jcpenney. you have had losses and turnarounds still are under way. like this withy such a large store base and with such dramatic losses recover

swiftly, which is what is needed, i cannot think of an example. brand itself, which many people recognize, does the company have any other valuable and tangible assets? >> i would argue no. the real estate is largely leased outside of their corporate headquarters. most of the branding of their products is not a radioshack ran. it is a private label that could be shifted to another sales outlet. you arend of the day looking at the store-based operations and whether or not those are salvageable. >> the fact that standard general is now involved in a big way and some people believe they are controlling the finances, should that help the way the company is run? the financing side is only a the financing side is only a small part of the

picture. radioshack needs to figure out how to improve the operating fundamentals. this is not a case where the balance sheet is weighing them down. the stores themselves are not generating enough money to cover costs. >> we need to leave it there. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> you are watching "market makers." good morning from the nation's capital. i am erik schatzker. >> i am stephanie ruhle. the best town, maybe not the nation's capital. europe stepping up sanctions against russia. treasury secretary jack lew announced he is adding sberbank, russia's largest financial institution. the u.s. is toughening penalties on five banks on the list. ad imposing new sanctions on

five state owned defense technology firms as oil drilling companies, gazprom and r osneft. earlier, the eu stiffen sanctions on russia. hans nichols is in berlin. why don't we have you tell us what specifically the eu did. the eu took 15 companies, 24 individuals, and for those of teen companies, they are preventing them from long-term financing in the european union. financing over 30 days. you mentioned rosneft, gazprom neft, the zip city area and not the parent company. the parent company is in charge of shipping gas to eastern europe. there has been a concern not to zero in on them. the total is about one hundred 40 individuals. the u.s., most importantly, what we heard from jack lew, sberbank

has added. they had rosneft on the list before. some of the energy companies had already been sanctioned. it is a more unified and tighter approach. we will see what putin's reaction will be. >> is not to say the u.s. and eu are in sync or are there still discrepancies question mark >> the discrepancies have been minor. the only interesting thing has been the sequencing. sometimes the u.s. has gone first, sometimes the eu has gone first. it seems like when the eu goes first, the sanctions have a little bit more bite. the first round of sanctions, angela merkel wanted to announce them. you sought europe being fed up with putin. they have been pretty much in lockstep once they get to the point of actually announcing

sanctions. yet from russia and what countermeasures it might take? this is what europe has been waiting for and perhaps russian markets as well, what will the response be from the kremlin. mr. lavrov says they will take a measured response. then is in dushanbe, capital of two g to stand. he finished speaking there and sanctions never help anyone. he says ukraine is hostage to the idea of joining nato. no firm idea, just hints of what they will do. cars and bans on clothing. here is the important one that has been hinted that, bans on flights over russia. a lot of planes go through russian airspace. nothing firm. >> thank you very much. have a good weekend. hans nichols, live from berlin.

>> let's continue the conversation. alix steel is here looking at the implications the new sanctions will have on u.s. companies. who is this going to affect? >> we have to look at the oil and gas sector. we saw sanctions preventing high-tech, it has broadened to all kinds of services. that is only for deepwater, arctic, and shale. on land does not count. you have to look at bp, a 20% 30% ofn rosneft, production comes from russia. that is it. do other big oil companies not have a lot of current production exposure. exxon is trying to build a $700 million well with rosneft, only 2% now. 5%./, 9%, shell, >> there has to be a big impact

on defense companies. >> is actually oil services that might be hurt the most. they actually have the technology committee employees that might be at issue. i was talking to an analyst at oppenheimer who said megan hughes, halliburton could lose toiness of about $1 billion $2 billion. mostompany with the exposure has earnings of about 3.6% from russia. you bring up the defense companies. that could be interesting. from.s. eyes very little russia. russia buys very little from us. they make a big deal about blogging assets but we do not sell them much. there's going to be a response from russian companies? >> you had hans nichols talking about wearing exports -- about barring exports.

russia has 2% to 3% of global production for cars. so what? is can make the argument it not going to make that big of a dent. 2.2 million cars last year out of 87 million globally. they do not have the technology or the investment and they need car parts from europe and the u.s. >> alix, thank you for giving us the latest. today is alix steel's last day for the next 12 weeks. you will be missed on "market makers." good luck. >> thank you. >> you will be missed. sacked, that is what the nfl must feel like after the uproar over the ray

rice case. what this means for commissioner roger goodell. ♪

>> welcome back to "market makers." i am a fired up stephanie ruhle. erik schatzker in d.c. the nfl is feisty. uproar over ray rice continues to put pressure on the nfl. as badly as commissioner fumbled thehas situation, the nfl does not have an advertising problem yet. have we heard anything from the sponsors? came outo of verizon and said he stands by roger goodell. we think we can expect this to continue. i cannot imagine advertising will take as much of a hit as it should. >> there is due process. no one is going to disagree that

roger goodell has fumbled. we do not know all the facts. wouldn't it be premature if they pull out already? would also be poor business. the nfl has brought them a lot of money over the years. even just looking at newly in data from last night's ravens-steelers game, a 13.7 rating, up 108% from last year. >> americans are going to love the nfl, but were you surprised by support for ray rice by fans? some wearing his jersey. >> it is shocking. men and women continue to wear his jersey. for all kinds of reasons >> like what? >> everything from he signed my autograph so he must be a great guy to it was jeanette rice's fault. i amik, i am pretty sure

never buying my kids a jersey from a guy who punches his wife in the face. >> i do not blame you. there is a big difference between domestic violence and what by a player we saw transpire in los angeles with donald sterling and the clippers. is there an analogy to be drawn? >> adam silver in the nba had a great opportunity and seized it to say what his position was going to be. roger goodell has fumbled, excuse the pun. it was an opportunity for the nfl to say we take this issue seriously. it just has not done that. >> why isn't anyone -- i will not save no one -- why isn't he being held more to account? >> we are trying to give him as

much as the benefit of the doubt. we love the game so much. we also did this with ray rice. before the second video was released, we try to explain every possible scenario that could have happened, except that he beat her to a fulpulp. >> do you think that is why the video was released, someone said i cannot believe all the excuses were made. we have to see the video. no crime of passion. he is slamming his wife in the face. >> it is a tragedy of the public that it did not take the police report or the first video, where we saw him dragging her unconscious body out. >> points of impact. erik? >> i would like to believe that roger goodell is too smart to lie to nfl fans and the american people about whether he did or did not see the video.

the question everyone is raising and the question being raised in washington. i was at a dinner talking to a lot of ravens fans. whether or not there was a conspiracy of silence that roger goodell and the league chose not to see the video. had they push for it, they could have. realthink that is a possibility. this is a leak that has been -- this is a leak that has been obsessed with protecting its image. protecting the shield. it is possible he wanted to maintain plausible deniability, being woefully ignorant. is not conversation over. thank you for giving us the latest. dropping the hammer on the nfl. in damageght be control mode. the show must go on. she gave us the numbers, people are still watching and going to

the games. for those who are inclined to shell out the eight dollars. a ranking of the league's lecture he suites by cost. scarlet fu has it. who does not want to eat sushi while at a football game? rankings to bloomberg on the most and least expensive suite rentals. new stadium equals pricier suite. the most expensive is the san francisco 49ers. they have a new stadium that will host its first game sunday night. the price tag of the stadium was $1.3 billion. .or a sweet, $60,000 you and 19 of your closest friends will get red carpet treatment. things like food and parking passes. some guest passes. food and beverage credit. >> is there an argument that luxury suites are giving you the

at-home luxury? the opposite of what you want at a game. it is like you are in somebody's super swank house. you want to be near the field? the fans say if you want to appreciate it, you have to see it from up high. >> i'm not going that far. if you are up on the field really close by the zero yard line, i am not sure you can see as much. it is the whole experience. hanging out with 20 of your friends in luxury. >> for me, it is luxury boxes for concerts. it is always awkward. you and your friends are standing, i want to be on the floor. >> the 49ers have the most expensive suite.

across the bay in oakland, it is a different story. the cheapest suite, $4610. what many people call the worst nfl stadium. what is also interesting, levi stadium was built to be a stadium that could host two teams. like metlife, which hosts the giants and jets. >> thank you for giving us the latest. the perfect gift for the music lover in your life. the expensivewhen headphones in the store are not good enough. stay with us, we will have that and more when we return. you are watching "market makers" on bloomberg television. ♪

xcode this is "market makers," i am erik schatzker. do you having trouble getting your earbuds to stay in your ears? a big business opportunity for companies making custom fitted buds. music lovers are willing to pay. sales of premium headphones exceeded one billion dollars. shelby holliday visited a business that is raising the bar on your buds. >> it's all about ears. did you ever think you would talk about ears as much? >> i never thought i would talk

about ears this much. i never knew that rights and lefts can be so different. also, family ears can be different. >> those differences are what gave nikki the idea to start a customized earphone company called normal. >> it is normal to have ears that do not fit regular sized headphones. one size fits none. a way to figured out size, print, and should headphones that fit perfectly. snap a few pictures, upload them using the app, choose your color scheme. >> we get to customize them. >> once you build your buds, they are formed by engineers, molded by 3-d printers, and set through an assembly line. >> we are trying to tackle three things. soundustomization,

quality. they are superpremium. >> normal promises to ship every pair within 48 hours. how scalable is this? >> very scalable. the potential of mass customization through 3-d printing of other goods is there and something that we are thinking about for the future. >> i want them because i want to support a rad woman ceo. shelti is here. she tried them out. >> i have them. >> aren't accustomed? -- are they custom? >> they are similar. i went for a run. the sound quality is great. a few things i would say are minor setbacks, the microphone and the case. the company says they are working to change those. >> have you used beats or bose? >> i have, this has potential to

take off because it is individual. more thanbose have 80% of the market, but they are oversaturated and people are looking for the next big thing -- in the headphone space. the premium headphone industry is growing. i spoke to an expert and he said ands not about beating bose beats, it is about coming up with the next big thing. we have seen them get into the you can monitor your heart rate. >> i do not really want to. >> i do not want to know how sweaty i am. >> thank you so much. how to beat beats. erik, back to you. the hoopla over apple's new products, was the

old one. an the ipod classic is no more. almost 13 years after its debut comedy classic is no longer being sold in apple's online store. it was the start of a revolution the steve jobs unveiled ipod. it basically saved the company. remember what the commercial promised -- ♪ >> ipod, 1000 songs, in your pocket. >> wow. a trip back in time. the ipod lead to itunes, which sold 50 million songs in its first year. ipod shuffles, the ipod mini and nano. more than 110 million were sold in six years. in 2007, the best ipod ever made -- the iphone. by then, it was a matter of time for the ipod. the chart tells the story, sales

down more than 50% since 2009. you can still buy the shuffle, the nano, and the touch. apple's stock has risen more than 8000% since the ipod came out. will it the the same story for the apple watch? something says probably not. washis is what steve jobs known for, cannibalizing his own business. we are not buying ipods, but we are still buying apple products. "market makers" will be back. theng up, tough times at mall. i will be saying goodbye to erik something i into know well. the shopping mall. millenials are doing more shopping online. we find out from our panel what the future holds. an houretter to oversee on shopping venue. i will be on my way back to new york city. see you all on monday.

have a great weekend. ♪ . .

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. mall money, mall problem. millenials are turning their back on shopping malls. meanwhile, online commerce is booming. what can retailers due to turn web shoppers back into moeller at 10 ago we have got an all-star panel to break it down for us. welcome back to a special hour of "market makers." i am stephanie ruhle. we are a look at the state of the shopping mall.

we all spent time there as kids, teenagers. it is where we shopped, where we ate, and we old fogeys may still kidsoing, but today''s and twentysomethings are going there a lot less. we will look at the problems facing the industry and how it is impacting retailers who rely on mall sales. job romantic is going to be helping us out all our -- joe will be helping us out, the former ceo of brooks brothers and sits on the board of guess, the children's place, and wolverine worldwide, the maker of brands like keds. we are going to start by taking a birds eye view of the industry with an associate professor at the fashion institute of technology specializing in fashion merchandise and meta-guys. vincent, lead us off -- what are you seeing?

>> ica makes in terms of what the malls are representing today. as the shortch hills mall, the mall of short hills, excuse me, are in a terrific state. they are totally shopped whole, they are terrific in terms of who the customer is and where they are targeting, but there are other malls in states of disrepair. >> like what, that are incurred by a sears or jcpenney? >> of the malls themselves. >> a malls are doing great, be malls are doing ok, c and d malls are dying. >> and you have to have the desire factor. at this point, i can shop at gap.com, so unless the mall experience is positive, why would i go? is one thing that brick-and-mortar does have an advantage with, and still at this point you cannot touch and feel through the internet, and

instant gratification is another area where a shopper at a mall, at a store can instantly touch and feel product while at the same time make that purchase, so they do have some advantages. >> a lot of these retail stores are now freestanding or in strip malls. 15 years ago if i wanted to go to ann taylor or banana republic, i had to go to a shopping mall, but now in places like connecticut or new jersey, they are right on the main street. >> i think you are right. lifestyle malls have done very nicely and downtown areas and suburbs have also created great shopping experiences for the consumer and for young kids as well, so they enjoy hanging out in their neighborhood and being on the block, if you will. there is food, entertainment, movies, and they can shop as well. >> to do you feel like there are too many options? if you are a retail store, you do not have to go to them all. >> i think that is the case with oversaturation. there is a mall presence as well

as a downtown presence in many urban areas within the country, and truthfully when you have the choice between going to a mall or going downtown to the food venues and bars and hang out with your friends, the cool and hip factor will be downtown. a little hotter than it is in the mall. >> the united states is over stored. >> i would say that as it. >> dramatically over stored. to 1000s that build up stores have been consolidating, dropping the number of stores. source of enclosing dramatically. ask we are not seeing any new shopping malls being built, but don't many of these malls need a facelift? >> yes, and the ones doing well are getting those facelifts. it is ay short hills, beautiful -- the mall at short hills, it is a beautiful mall. >> if you're a teenager, you have limited options of what to do on a friday night, so one at the mall so be a place to go and go? andoday, with social media

other ways to entertain oneself, quite frankly they are e-mailing and texting, there are other ways to get together, and it does not have to be physical. >> do mall owners need to start doing things, being more interactive to attract these young people to come in there? >> absolutely. i think the new era of these millenials shop by where their friends are shopping, but from an electronics standpoint, they're communicating with each other. >> lets not call this the death of the mall because that is not the case. >> it is still pretty crowded, still nowhere to park. >> it is still doing a lot of business. i read this morning that in the u.s., agencies presented some numbers that mall retails was down about 4% for august, not battery number, and they claim that is in the same category. e-commerce was up .1%, so actually the mall performed better in august and all its e-commerce, if you will come and they must be using standalone companies because when we think about the retailer and the

brands, they are doing both, and that is a big win. a channel of distribution. retail is a channel of distribution. >> are people just buying more stuff? >> people are buying about the same amount of stuff, but they are buying it in different ways, in different locations. >> and this turns into a market share game where the product level is saturated -- who is going to steal what from whom? the mall does have an advantage when it is 8 degrees out and approaching the holidays in december. do you want to be downtown freezing your you know what off, or do you want to be in a mall? >> have malls changed their restaurant strategy? when i was a teenager, your choice was orange julius, chick-fil-a, and now there are malls i have not been to in years, and suddenly i do because they have opened a pf chang's, a cheesecake factory. >> think about why they are doing that. you cannot buy a restaurant meal through the internet. that is the draw, that is the entertainment.

you bring the kids and for that, you bring adults in for it, and that is the real positive. that is the step that the mall operators have been taking, and it seems to be working. >> with that, the term traffic, as we use in the industry, the malls are looking for traffic and conversion. the traffic first and the conversions i can. >> what do you mean conversion? when you're done eating a cheesecake factory you will walk in the mall and pick up a sweater? >> yep. >> there are more and more designers than ever. we wrapped up fashion week where we had 500 shows in new york. as i mean we will see more entrance into the brick-and-mortar space? >> they will start first online. it is the less expensive way to enter into retail, and then ultimate will morph into stores. >> we have seen some of that. warby parker is one example where they started, you know, online, and now they realized that there is value in brick-and-mortar. >> do you see them being in mall locations though? they are pretty hip.

isright now no, but it possible. the mall at short hills, possibly. >> in order for a designer, a retailer to become super legit, do you need to make that transition from just being online to having a brick-and-mortar presence? >> you need to be wherever your consumer, your customer shops. you want to be able to service them wherever they want to buy something, and that is the key to success. yesterday, lululemon reported new numbers for their second quarter. it was a real turnaround story, and they beat expectations. the revenue is up 13%. nice number. their earnings were down slightly, their revenue was up 13%. in terms of their comparable store sales, comparable sales, they claim they were flat. their same-store sales were down 5%. e-commerce was up 30%, and now it represented over 60 million of their $400 million of revenue. so it was huge. picked up 16% of their total

business right now and growing, so here is the dichotomy -- 84% retail, 16% e-commerce. that is the way the world is moving. ask if you want to become a massive brand, if you want to go the way of a tommy helfrich or, do you need to have a freestanding store, a real -- a tommy hilfiger, do you need a freestanding store? >> you need a brick-and-mortar or physical presence, whether that is downtown or in the mall, that is up to you, but this is part of branding. you need to physically walk in the city. >> you want to show the retailer how the product should be presented. you put the best face forward on this, so you are doing -- you have no competition in your own store. you have no, titian, so you do not have other brands surrounding you. you do the best possible .ffering, the best possible >> we had to take a break.

thank you so much. .t.'s vinny quan. will be with us the whole hour. we will be seeking with the ceo's of two of the biggest mall owners in the country. ♪

>> welcome back to "market makers." i am stephanie ruhle. we are a look at malls. joe gromek is my guest host for the hour. you hear it all the time that malls are in trouble, e-commerce is expected to grow over 16% this year while last year, mall traffic dropped 50%. is it time to worry? no next guest and joe say way. scott will stain is the ceo of retail partners, and art is with ceo of a company that owns and operates more than

50 malls. is this a big myth that people are not going to malls anymore? >> yes, it totally is. that statistic that was mentioned, that mall traffic is down over 50%, is totally false. when they hearw, that retail traffic is down, then they convert that to mean mall traffic. over the pastio, year, the total sales of our malls was actually up 3.5% to 4%. traffic probably was off maybe 1%, but our shoppers when they came to our malls new exactly what they were doing to some degree. they were there hunting as opposed to shopping from the viewpoint that they knew exactly what they wanted, so maybe they had fewer trips, but they bought more when they came. that has been h or and that has been evolving over time. mall traffic does not sound good. that is a bad number. >> totally false. >> not only is it totally false -- it does not matter because

the only thing that we try to do in malls is sell merchandise, and in less the sales were affected by any drop in traffic, it is irrelevant. what happens is a lot of shoppers today do a lot of shopping online, but they do their buying at the mall, so when they get to the mall, it is a very educated trip and it is not have to stay as long or go as many times, so maybe traffic is down slightly, but as long as sales are not down at all, what difference does it make? we are not really promoting loitering in our malls. we are promoting shopping. >> do you think the term show roaming is also a myth? people go brick-and-mortar to look around but then go home and do shopping online. do you think that is a myth, too? world hasy, the changed, social roaming, which really started primarily in the big-box electronics stores where people would go to the in-line store, take a look at the merchandise and then maybe go home and go online to buy, that

is converted. the worlds today is more web roaming where people are doing their discovery, their research online, but then they are actually really -- actually consummating their purchase and store whether it is an online purchase or a pickup in store or in on my purchase deliver from store or just the research and then go to the store, try it out, buy it home. really web roaming is the world today. show roaming is the past. >> i would absolutely agree with scott on that. i think one thing the web did do is it was the price equalizer, so suddenly, at one point in time you went into a shop, into a store, the big-box to see what they were selling some a4, best buy for example. you went home and saw it on amazon for less money, so what did you do? you bought it on amazon. best buy change that practice. they level the playing field. they will sell it at the same price as any other retailer or e-commerce merchant, so there is

no need for it anymore. >> except about the cost of shipping. >> or tax. you have other implications, but suddenly, the consumer is shopping at home trying to find the product that they like in the maybe for convenience are going to the store to pick it up. >> scott, do you agree it is still working for a malls, b malls, but the c and d malls are having a problem? >> if you own a mall in a tertiary market where the income levels are moderate, and you get a couple of power centers with a walmart supercenter and a target, the super targets, then it is going to take a bite out of your mall. a macy's orall is jcpenney. x yeah, so i think the biggest threat to brick-and-mortar -- you know, there was a time, you know, during the promulgation of walmart and target where we had oversupply of retail in a lot of markets, and something has to give, and some of the lesser quality malls have failed, and

some more will fail, but the malls that we own, very solid performers, we are not the least bit concerned. one of the facts that people really miss is that they think that we are in a zero sum game between e-commerce and bricks and mortar, but what they forget is that we had direct mail retail before the internet was a invented. it was called catalog. catalogs had 6% of retail before there was internet. and today, catalogs and e about 6%.ombined have jcpenney is a prime example. a have a very successful catalog with 20% of their sales. catalog,imited their and now the website is 12% of their sales -- >> it will get to 20%. >> it will get to 20% come of it but they basically tenable lives

to their catalog with their e-commerce. >> you are absolutely correct. doing e-commerce it makes more sense come it is cheaper, you do not have to send out catalogs, and in fact you are saving paper. you are doing good things for the environment. >> art, you have one of the highest malls in the market. what is the biggest risk to your business? >> the biggest risk is if our senior leadership is not embracing essentially the on the channel efforts of our retailers, but the truth of the matter is that we are embracing it, we are participating with our retailers and making sure that the experience for our shopper is seamless in any way, whether they want to visit our mall online and how their experience is inside the mall. the downtowns or the urban retail centers have got a very, very bright future. when you think that what they are, they are the best of the best.

this is where the best retail happens. properties.ith our our future is very bright. the biggest risk would be to not take advantage of the opportunity, to not pay attention to what is happening with e-commerce. e-commerce, we see that as a new retailer that will be a candidate for us. have fashion week, and quinn suddenly rent the runway is opening up brick-and-mortar stores. there again is another retailer that started on my night is now going to merge cliques with bricks. >> to you both have apple shops in your malls, and what impact do they have on your overall performance? >> go ahead, scott. >> we have stores in the malls

that have an enormous impact. foot.verage almost $100 a >> apple is the most successful retailer in the world, and it is interesting that their business is technology and they don't really sell online. a sell in stores, so what does that tell you -- >> they have a genius ball. that is what it tells you. it is great. >> art, are you seeing the same thing in apple stores because of that genius are, there are a lot people going there, not just to buy new product but they're going there because they need service and then they could potentially hang out at the mall, buy other items? >> sure. as was mentioned, apple is a store that really had no reason to have a brick-and-mortar presence. a worthy at the enemy of the technology company that could have done it online. were the pit ami of the technology company that have done it online. they are a great retailer. they do terrific.

35% of ourm in about malls. they attract other great retailers who are also insuch as microsoft, but other retailers have decided that they want to use brick-and-mortar more for the experience because theirit otherwise, presentation would be two-dimensional. years ago, we did not used to have people like tesla in our malls. now i think we have eight stores, and it not even sell the cars in the mall, but they use the presentation there for a discovery, for education so that then people can go ahead and buy. we put the first tesla in any mall, tysons corner properties that we own and another half a dozen others, and apple is another example of that. experiential retail is something that if you do it well, it makes your mall much more exciting, and apple is a great example. >> what about the food aspect in restaurants?

is that driving traffic, are you a grading all of your restaurants? >> restaurants are important, theaters are important, people keeping people in the mall is important. when the mall started to suffer, it is because of the category killers. today those are coming back, so the malls are now becoming general merchandise centers, which is what they were when they were originally conceived, so we have -- the malls are becoming the real town center of the community. >> we have to leave it there. we are out of time. scott, thank you so much, art, both of you, the men who really know the malls. i want to give you before we got that statistic 50% from shoppertrak founder it was about foot traffic during the holiday month between 2010 and 2013, so i want to put it in context. but clearly people are going to the mall with of these guys. thank you so much. we will be back with more. joe is with me through the hour. we'll be talking to be ceo of cachet when we come back. ♪

>> live from bloomberg headquarters in new york, this is

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. again, we wish you are here during commercial break because i'm getting beat up. welcome back to "market makers ." we are talking about shopping malls. joe gromek is my guest host for the hour and a very special thet is back with us, as shopping mall in home to hundreds of cachet stores across the u.s., so what happens to a brentwood malls are not enticing shoppers the way they used to, the ceo of cachet joins us.

jay, talk to us. you are trying to create a comeback story for cachet. what is going on? >> the consumer is spending time online, but i believe that a, b, c, and the malls are working, as long as i can make the exterior is different, my difference is for these malls. high fashion in these malls is taking up a huge amount of space. >> h&m -- >> forever 21. a four or five spaces, the equivalent of mine. -1700 square feet. they are taking up huge spaces in malls and they are hitting drivingints that are consumers in. i think the death of the mall is far over exaggerated. online is hurting time. it is where consumers spend time, and they're going and shopping come in and going back and researching some more, so the call to action to really buy something has changed

dramatically in the last, since december 13th at 2:30 in the afternoon. >> i would agree with you, jay. the fast fashion guys have eaten into the business of the traditional young person in the store. abercrombie, american naval, aeropostale. those guys are hurting dramatically, and fast fashion is winning the game right now. >> sash fashion is not attracting one single demographic. they are hitting on all fronts. >> and they got the fashion right. the look has changed out there, and as jay bank can comment on, it has changed. they're really giving the young consumer what they want. >> they are really good at what they do. we call it fast fashion because they are quick, they're agile. i think they are doing some really great things. having said that, the rest of the mall is suffering when you go over and see an amazing dress or $19 from h&m. god, price value

relationship. i think there are many people out there that have done that. walmart has done in terms of what they do. fast fashion is creating i think a really hard thing for a person is $200 why the address versus that $19 dress. there is a reason for it, but it consumer toa did differentiate. >> why does that matter for you? curated better, we can have a level apostle tell it he in his service. i think the people in my stores are working really hard. we have got to get our product for a. we have to flow goods differently. everything but that is worth something to the consumer, but it is not an easy task. you're competing for money. young people, vince said on his way out -- his students do not want to wear the same thing. they will go home if they see someone wearing the same outfit. fast fashion makes such diversity in terms where you can buy. we find the same thing in terms of our prom business, our dress

's nest. we have to have enough to differentiate this young girl to want something special. we have to build the accessory side of our business. shoes, handbags, everybody wants to be michael kors because when you can drive that kind of business success raise, drive joe dollars per square, knows this, you have to have a good accessories business to make it work right now. all those things combined make that experience in outfitting a more important part of the business. >> clearly you have your staff knocking on your door saying jay, it is time to turn it around. is there one thing you can pointed to say this is the monkey on my back that i have to get off? >> i have got to get cache cool. you look great in that dress and you are proud of it. you have to get proud of it and say i am wearing cache, and i am proud of it. there were years of discounting, years because we did not get the sellthrough, trained the consumer to buy on sale. i have to have someone saying you look great, i have to check it out.

we have a girls night out in 240 stores tonight. we will have the diver talk -- we will have go dive a chocolate -- godiva chocolate. next is that mean women are going to buy or have we become so rice is sensitive that we say it looks great, taste great, but i can get it at zara for $79? >> they see the product offering and they are going to buy it. x what you are doing is a great form of marketing, more than putting an ad in a fashion magazine. >> we are not your. outfit them wonderfully, but we are also giving a discount. >> that does nothing for e-commerce. does that mean you are abandoning an e-commerce strategy? >> it is 10% of my business. i have a big following from brazil and mexico. i have to reach them. i have to find ways to have

exclusive online product that differentiates itself because my online business was at a higher discount than my store business when i first got there, and that is disrespectful to consumers, so we balanced that out. now i have to have greater reach. joe asks the question before -- i have to get my business up from 10% to 15%. it should be 20% of my business, but i do not think it hurts my mall business. x you make more money selling it online. >> absolutely. whack's in general, how longdoes it take for a turnaround strategy/ when we look at retail -- >> how long does it take for a turnaround strategy? >> the market is not terribly buoyant right now, so he is dealing with a market that is challenging and trying to turn around a business, but it is a coupled your business. >> a year ago we talked about jcpenney saying they were going to shut the doors, there was no way it was going to work. do you need to knock the cover off the ball apple style or not necessarily yo?

>> i bet if jay looks at his portfolio he would say a portion of the stores that he wish he did not have, and it is probably locations where he wish he did have stores. >> or bigger stores. >> exactly. for have to have a reason the white spaces, a gown, a cocktail dress. how can i do it differently than macy's? i have to separate myself to win. i am in this for 16 months. i think it is about a year and a half to a two-year kind of cycle to get it right, but it gets into how much cash you have, how much you can get your consumers and come how you can take market share from competition. it is a really tough game, the fashion business. x i was impressed with the quality, so the price is great for this quality. this is not high designer, european designer prices. mall,re competitive in a if you will, not with fast fashion but with all of the other retailers that are in

there. >> that is what i am trying to do. >> in just one or two seasons when you have great products, i'm thinking about ann taylor. six years ago, i would never go into an ann taylor. that was your mama's store. they put kate hudson in there at campaign, and every buddy was in there. someone can't turn it around with one or two great seasons with a product. x i had a turnaround in of the year, september 3 end-of-the-year and even through january where you're going out for an event because it is new year's. my business was great. i had a turnaround, margin improvement, came into jenny were a feeling really good, store closures and february, spring never really happened for many retailers. >> coldest winter in 22 years -- >> and there were so many factors. so many stories and fast fashion, so i got a stall. i was in a really great mode, and i think i am working my way back now. >> do you feel good about fall? >> i feel good about my assortments right now. i feel good about the balance of

casual to dressy, but the consumer has to show up, and i have to get them moving, and all of the things are a great challenge. i'm having so much fun doing it, but winning in the retail and vermin that we are in, which is what this show is about, is a role challenge. you on,so great to have and i'm wearing a cache dress. cache.golis, ceo of coming up, re-energizing. apple's new payment system may just be the thing that malls are looking for. we will have that and a lot more with dottie mattison. ♪

>> welcome back to "market makers." i am stephanie ruhle. apple must be a good mood because they just give a huge gift to retailers in the form of its new apple pay system, a text heavy way to check out at the

register might just be the think malls need to get people into their stores. dottie mattison is here. she is senior managing director at guggenheim partners. she is also a former effective at walmart and the gap. and joe gromek, my co-anchor for the hour. dottie, you say apple pay is a gift. brandis a very exciting into every retailer in every mall. that is a huge way to take some the very intimate and consumer'' lives and become coming very functional like paying at the register into something very exciting. >> do you agree with that, joe? >> i think it is terrific. dottie, how available with a system be to the mall stores? >> we all know that chip and pin technology uses emv. mastercard, visa, and american express are already implementing emv, so apple did probably help

accelerate that installation of that going on at the register, so no, it is not immediately penetrated, but if anything, it is going to accelerate things, it being on your iphone and having the world's -- the united -- certainly it is a great gift to card companies, too, not just to retailers because they want to implement emv like they do in europe. it is a safer technology, chip and pin technology, but in america, it is not even 10% penetrated. are stillwe magstripe. it is a way to accelerate that technology. >> what i read yesterday is that the retailers that would have availability to this currently are about 220,000 out of a potential of 9 million shops. >> right. >> so it is a relatively small number and there is also a relatively large expense on the part of the retailers to change the system. is that real? >> i appreciate the retailers, at it is important to have

system consumers want to use. i think it is coming and it is just coming a little bit faster. what i think is great about the announcement is that it will likely get the consumer more comfortable with not just the physical card being shown because of the way chip and pin works, because of the way in relation on appleworks, i think people are just going to get more comfortable while having the back stock of security and insurance from the major cardholders. do not forget, of the 173 million smartphones in the united face, only 40% of them are apple, so there is a whole universe of android phones out there that can go direct to consumer, do their own payment system, have nothing to do with visa, mastercard, or american express. they could go direct to consumer, so this payment gift to the retailers and moores -- and malls is not over yet. >> do these malls need to become more tech savvy to bring in millenials? do you need to be offering them

i know because of a locator you are standing inside of a gap, so gaffney's be offering you a discount on blue sweaters. >> yes. mall so they have not fully realized that consumers' functional need and social, emotional needs can be met in a whole host of other ways besides going to the mall, so if you're a teenager and you need a dress for graduation on tuesday, you can do it without going to the mall. if you are a teenager and you want to hang out with your friends or see what is going on in pop culture, you can do it without going to the mall. with all due respect to our youthfulness, you cannot do that without going to the mall when we were their age. phone inhave this their pocket that is their best friend and it is incumbent upon savvy brands, savvy retailers, savvy mall merchants to go you know what, young women who have a pocket full of money and hours in which to spend it, i know you are in the gap, i know you are in banana republic, i know you just walked into tommy hilberg

hilfiger and you wear a size six and are graduating on tuesday. i know anything about you, let me help you. , apple claims that they are not interested in that information. they are not collecting it, and that is for the retailer to do with. this is just your pay if you will. >> i think they said that, which is a proposition to sit in when you hold so much cloud data through itunes. criticalk the companies, the try up lee, they are partners, they know i whole lot about how you spend your money. i like belt and suspenders because the battery life on now begin to heartbeat, but the task force does work, it is going to be the same technology where you will store your credit cards easy. >> it is not going to be the game changer for retailers. do they have to offer something different inside a store, whether it is a different sale, a different gimmick, then they are offering online? for the most part right now,

what you get in the gap brick-and-mortar store and online is the same thing. do they have to have different marketing, different offerings? >> i believe the certificate retailer will understand who is shopping when and why by location. they have to because they are too expensive. the malls are too expensive just to sell markdown t-shirts. >> you agree with that? >> absolutely. the best buy stores look terrific today. offerings have huge that they once had or videos. it has all changed because of things like netflix. so the thing the stores are being really consolidated, if you will, and they have to do that quickly. >> who do you think fast fashion is hurting the most? fast fashion is hurting the mid tier department store. if i were to really think about it, i think it is that emotional , if you will come a macy's

business. i think that kind of stuck in the middle -- numbers have shown -- >> dotty, they also have the fashion quotient figured out. they are beating a lot of other juniors stores. they're doing a better, faster, and can execute the transcript are than anybody else. >> when you talk about expensive rent anymore, it is the anchor , neimanmacy's, sears marcus. what is the future going to all for these big, massive stores paying those huge rents? are we going to see department stores take smaller spaces? >> i do not know about that. they might just be more selective about where they go. neiman marcus just announced a huge store in manhattan, two miles as a crow flies. the right mall at the right price. be very exciting, but i think they will be more selective. >> also, those large department stores have been the draw to the mall, so they are rent structured. their rent structure is very

different. they are not paying for 250,000 square feet like a retailer, like a shop would pay for 3000 square feet. it is a different structure and there was a reason for that because they were the traffic draw, and now it is no longer the case. >> now they are probably paying market minimum, but apple has been the most exciting thing in the mall. don't forget, one of the top retailers is not in the mall -- amazon. when we think about a retail, and if you were to dry to buy a dress for saturday, you would end up on amazon probably buy a a top brand and they are nowhere to be found in the mall. just think about it. >> as you look at your brands, bcbg, how important is mall placement for you jacob do you want to be next to the apple store next to the department store? >> obvious the own would love to have them come speak for ofmselves, but bcbg is one those destination stores and the

mall that drives other customers to them, so bcbg is a place that landlord like to see on a 50 yard line because they have such young female consumer. >> they want people on the 50 yard line who can produce the highest revenue. that is the deal. the best players get the 50 yard line. >> joe, is your take away people are not leaving the mall, they are shopping more? >> they are not shopping more, they're not leaving the mall, they are shopping at home, on their mobile, and at a soccer game, watching it on their mobile. they are continually shopping, but they are doing it differently, and the retailer and brands have to be able to service them wherever they are thinking about shopping. >> i agree with that. and i think on the channel life, shopping different channels, i do think a ball has a place enough. it is just not going to be the only place for top brands. >> dottie, what you think about the system's guides? >> if they make their services great, absolutely. >> dottie mattison of guggenheim, joe gromek, my

coanchor for the day, erik schatzker, i will be back with more market makers, and it sound like people are still going to the mall. ♪

>> cash is king. topic number one on our investment section inside an action coming up in the next

hour with adam johnson. you look good today. >> thank you. i am wearing a weekend shirt on a friday. >> ok, ok, sorry. >> who has got the cash -- corporate america. todayan golub joined us on "surveillance." effectively leverage has dropped , call it by about two thirds. meanwhile, cash has more than doubled. it is a total flip-flop. the question is -- how do you capitalize on it? we search for companies with the most cash who are paying it out with dividends and buybacks. >> you will have a at the top of the hour. 12:00,clip" starts at lucky you, and you will see that outfit i have been checking out. i am leaving set. "market makers" is over for the week. i will be back monday, and we will be talking about spending more than you take in. budget deficit. i am off. mitt romney's former chief

advisory lanhee chen will be the co-anchor. you want to be here. ♪ now, it is cities expect the outcome of which means bloomberg tv is on the markets. chief market correspondent scarlet fu has more. ask thank you, stephanie. s&p down the first time in six weeks. retail sales increased at the fastest pace in four months, in estimates,conomists' boosting circulation that the federal reserve will start raising interest rates is sometimes next year. joining me today is the chief options strategist at the bar chart bull's-eye options. i was talking with our bloomberg news reporter about currencies earlier and how there is increased volatility in developed market currencies. are you seeing that same pickup in equities and equity options? grindare seeing a slow higher in volatility. we have seen a bottoming in the

vic's, and we do not make new lows even though the market made new highs. that is a concern in the short-term. we are still above the june low that we saw at 1028 in the vic's. it has never been retested, so that is a concern. comee saw some orders through, 92% of the action has been and calls. and a quarter came in of a thousand, 22 calls far out of the money, so people are still positioning on the upside in the vix, and it is somewhat concerning that the vix has not pressured on as much as the market has pushed up. it tells me the underlying tone of support in volatility. >> there certainly has been a softer trend higher in vix in the last couple of weeks. what company is getting options, bank of america, what do you see happening? >> a bank of america is getting some attention. the number of three equity option as far as volume goes, 87% of those contracts

called, so people are positioning on the upside as well, 20,000 lot order of the january $20 calls, which are 20% out of the money with the break even, anyway, traded at about $.12. we have not seen $20 from big of america since 2010 where we got a $19 and some change. people are very optimistic there. >> i want to bring in oil because brent and west texas intermediate are following this morning. you have got a tray for us on bp. to what extent is it links to the moving oil prices? >> it is all tied together. the oil prices made new lows yesterday and closed higher, so that is a reversal. we will see if we can build on it. $90 in crude oil at the midpoint in the last five years from $65, we're getting very close to that, a key support to lean on. has sold off, so if it retraces like it has on every time for the past five years, it will bounce back, you take the

distance and selloff, you added on, we have about a 50% upside key energy sector. i'm looking at british petroleum. british petroleum is down about 15% from its june high, trying to sort through all of this horizon mess, finally getting put behind it. i like the 40 call, the april 40 calls trade at about 650. it has got $.50 away from its break even. >> thank you so much, alan knuckman, for joining us. we will be back on the markets again in 30 minutes. "money clip" is up next. ♪

>> welcome to "money clip," where we tied together the best stories, interviews, and video. i am adam johnson. crashes.he apple store no! actually, yes. is it supply or demand for the iphone? how blackstone turned a fiasco into literally the most profitable deal in its history. corruption in mexico is apparently alive and well. the nation's capital says it is time to change. sports, the nfl -- you already know this,