>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> on the trail of a killer. scientists are trying to find anyone who has been in contact with the first person diagnosed

with people in the united states. >> more americans get behind the wheel. new car sales soared again last month. pickups and suvs are the hottest sellers around. >> an instant classic. we talked playoffs with an all-star first baseman. you are watching "market makers ." good morning, everybody. >> what are you most excited about? >> david tepper. what else? >> robin hood and a whole lot more. it's october 1. breast cancer awareness month. we are going to be talking about it all month. >> pink. we do have some news to share with everybody. >> bricking economic news. -- breaking economic news. michael mckee is in the newsroom. >> this is one of those reports that point to go down badly on wall street because we are stuck in a situation where the

premiums this previous report was so high, there was almost nowhere to go but down. we go down to 5660. are lower than we had anticipated. the problem is the report in august was so strong, the new orders number this month falls six points. production at 64.6 is a bit higher. we are still hanging in there with very high numbers for production and orders. the inventory number falls. there is scope for additional movement in manufacturing. strong number. while wall street may read this as a bad number today in the context of everything else went on, it still pretty good. still on course for a good month. >> thank you. time for the newsfeed. the top business stories from around the world. one more sign the u.s. labor

market is getting stronger. companies in this country hired 213,000 workers last month, beating estimates and topping 200,000 for the sixth straight month. this according to 80 p research. -- adp research . rejecting a lawsuit. it was illegal, but the government was allowed to change the terms of the bailout and take almost all of the profits from fannie and freddie. reuters is reporting that a toronto real estate investment firm has won the bankruptcy auction for atlantic city's revel casino. it cost $2.4 billion to build. in acasinos have closed this year. >> the first case of ebola has officially been diagnosed here in the united states. there is no reason to panic. it is just one case in dallas,

texas and the disease is hard to spread. peter cook is at the white house with the latest. this is not a total surprise. it still has to be troubling to the administration. ebola is here. >> ebola is here on american soil. this is troubling. cause for concern for this white house and americans around the country is all this news late yesterday. the cbc director told president told -- cdc director president obama they are confident. the public infrastructure is prepared to handle something like this. the specific person involved, the patient here was exposed to a limited number of people. they feel confident they can nip this in the bud. a person flew from liberia to dallas, arriving on the 20th. did not show any symptoms until

the 24th and was ultimately hospitalized on the 28th. the 28th.on he only showed symptoms for a limited number of days. only in that one window of time that the cdc would be concerned that he would have exposed anyone else. they feel confident they can isolate him and potentially anyone else who may have been exposed. -- do they have any idea right now as to how many people may have come in contact with this individual? >> i know the word they used yesterday was a handful of people. officials in the dallas area say it could be in the range of 12-18 people. that includes not only emergency room health care professionals, but the three people who took him in the ambulance. monitored.ll been no one has shown any symptoms.

they are being kept track of. they're being checked for fever. that's the world we think would have been exposed. they're making sure that is the limit of the exposure at this point. >> how panic is dallas? >> major concern for the immediate community. -- checking with people there, there is no hysteria at this moment. they have done a good job of getting the public word out there. brantley came down with ebola and was treating patients there and came back to the u.s. was treated and ebola was cured within his body. he is from the dallas area. his story was followed very closely by people in that community. here.ay be playing a role

>> peter cook, thank you for the latest. >> here with us is dr. ian lyngen. he is a professor of epidemiology and director of the center for infection and immunity at columbia university. he was also the chief scientific consultant for a film you may have seen, contagion. which was about an epidemic. thank you for being here. cdc try to persuade people this is not cause for panic. you agree? >> i do. ebolaes not contract unless an individual is actually acutely ill. they have fever and all sorts of other symptoms. concern that some of the passengers on this airplane

might have been exposed is not warranted. he was in this country for o-five days. days.-5 fiv >> the actions following the headline, ebola is here on u.s. soil, should be -- >> containment. monitoring and containment. we are not more than a few months away from beginning to have some vaccines that will allow us to begin to vaccinate people who are going into the field and making contact with people in these areas. long?has taken so >> we have had vaccines for quite a while. we need to do safety testing in people to be certain that they don't cause any damage. we need to be certain of that. we need to prove they are

advantageous as well. >> is there any sense and barring entry to the united states? people who have traveled in this particular countries? sierra leone, liberia and nigeria? >> how is that working for the drug problem? people come in anyway and want to get through. i would rather have people coming through. we know where they have been and we can follow them and monitor them. if they do become ill, we can handle it. >> they will come through either way. let's manage the process. >> that's my view. >> what if people start to die? >> people are dying. thousands. >> in west africa. it worked fine situation. what if in the effort to contain and control and manage this problem, americans begin to die? >> again, all i can talk about is the science here.

there is a lot of concern i don't think is frankly warranted . we know people can become secondarily infected. the first thing we try to do is make sure that they are isolated so they can go any further. -- can't go any further. the mortality with ebola which worseremely high is much in the developing world than it is here. if you get excellent supportive , the mortality rate is much, much lower. i don't view this as the same sort of threat as if we had something like a pandemic influenza that was airborne. this is something that can be contained. >> you don't think people are suddenly going to stop taking public transportation? >> we are trying to do our best to dispel the myths. that's all we really can do.

this is different from sars. . was in china during sars this is not the same thing. people have been talking about airborne transfer. this is not like that. you have to come in direct contact with someone who is infected who is actively carrying the virus. we don't see this as a huge risk. >> you've done a lot of work researching infectious diseases. we have talked about the mutatingty of ebola into a virus that can be spread through airborne transmission. >> 0%. >> zero? >> why is that? >> there are some people who will tell you it's not zero. most of my colleagues will say

it is zero. it would have to dramatically change the way it reproduces itself. we're not talking about a minor shift like the flu. this would require a major mutation. many mutations. if you look at the history of viruses that have one method of transmission like going by blood or mosquitoes or whatever, they .on't shift that way i realized that makes great copy and is very exciting, but it doesn't happen. >> it's why we ask the questions. >> i'm scared either way. >> there is reason to be careful. >> mix for great copy. -- makes for great copy. u.s. auto sales keep surprising

the experts. chrysler and nissan led the way last month. >> yahoo! shareholders are looking at a potential $11 billion windfall if the company drug itself up.

>> breaking news. the great american auto recovery continues, but not so much for toyota. sales numbers for toyota out, up ..7% the recovery continues because gm, chrysler and nissan all reported sales numbers well ahead of analyst estimates. the bigger picture is that this is shaping up to be the best year for the auto industry in america in years. what is fueling this demand? can it continue? , how much of what we are seeing now -- the auto

recovery has been going on for months. our consumers buying cars and making purchases they had put off during the financial crisis? >> you put your finger right on it. that's the big debate among investors. there is still pent-up demand with the average vehicle on the road more than 11 years old. the more people need to replace --ir cars and they haven't cars are pretty durable right now. the replacement rate is only 13 million per year. the fact that we are approaching a 17 million pace might indicate that we are adding vehicles to the population. -- it a bigger population doesn't start to raise some questions. are we getting to where -- is it not just the pent-up demand?

>> what to the automakers themselves say? inthey see a 17 million pace 2015 and beyond? >> i've been covering this industry for almost two decades and i've never seen an automakers say things are going to turn down. they are seeing more growth to come. fortis talking about 17 million next year. -- ford is. it could keep going up. right now, we have a really great convergence of job growth, slow and steady. unemployment is coming down to the low six. gas prices are a portable -- are affordable. credit -- the fed has made credit very available. deals are cheap. deals.n get

credit is available for everyone and at a good price for just about everyone. really seem to be fueling this positive month. what does that say? >> trucks were not all that great. at series was down 1%. the f series is the 800 pound gorilla going on a diet. is the big player and it's in transition into the all aluminum truck. there is a lot of noise. there is a lot of noise in the pickup data. things are very strong. the big question for investors -- you only move in august was a decade. you buy in when it looks horrible and buyout when things look right. even when there is room to sell and everybody's making money, it's a profitable industry. are we too close to the top and is it too hard to make money on these investments?

it is certainly very strong in the economy. ford just added another 1000 jobs in canada today. >> are we beginning to see any divergence? ford had a bad month, toyota did not have such a great month. gm had a great month after some not so great months. are we beginning to see some pull ahead of others? >> in the short term, a lot of it is product cycle driven. ford is such an important part has beenseries pickup the top-selling vehicle for more than three decades. when you close two plans to change over how you make your f1 50, that makes a profound impact. ford was down 2.7%. it wasn't a big surprise for them. in the last seen few months has been toyota

really coming on strong with lexus and the toyota brand fueled by aggressive pricing. certainly, they have been making games. this month is a setback for them. -- i have been making gains. the automakers are making a lot of cars and trucks here are of finding the industry where it was a few years ago? far too many cars for the demand ending up dealers having to offer tracy discounts -- crazy discounts? >> it's certainly not the case yet. in the long course, there is a lot of capacity being added throughout north america. by the detroit automakers and the koreans and the germans and the japanese automakers. they are all adding capacity.

after all the shrinkage that happened during the recession, there is a lot of money to be made. everybody's trying to build back up. free-fourhe risk years down the road that we've added to many millions of units. wasstart to see who operating the most efficiently and who can afford to offer those discounts. -- there is a risk 3-4 years down the road. >> jamie butters with bloomberg in detroit. >> taking a dive. why oil prices have fallen so much and how long before they start rising again. ♪

>> we are approaching the six past the hour.

bloomberg is taking you on the markets. >> fannie mae and freddie mac. these stocks are getting killed. againsts a court ruling a lawsuit brought by a number of investors, including reuss berkowitz and richard parry alleging that the government sweptillegally when it all of the profits from fannie and freddie into the treasury department instead of passing them out to investors. these stocks went up more than 1000% last year on the expectation, speculation that these investors had a case and would be able to recover these profits. >> you and i have sat right here on this set. they told us this is the story of the year. the government illegally acting. these hedge fund managers are down today. >> this is just one of 20 cases

being brought against the government. bill ackman has a separate case alleging that the sweep of profits violated the constitution's fifth amendment. a different claim brought by perry and berkowitz. ♪

>> live from bloomberg headquarters in new york, this is "market makers." right is wrapping up .er first fiscal year running an increase in wall street takedowns. is it playing too rough? the founding partner of wall street firm would say yes. he joins us now to discuss his 12 year fight with the fcc. tell us your story. >> we have a firm that invests

in american companies and we do a lot of research. we were accused of insider trading in a small company. we bought the company in 2001. i do think it was completely legit. >> so the dog got a hold of the did not want to let go. >> right. they had put so much time into it. they just kept going and they have a process that almost forces you to go even if you are innocent. >> after the 12 year battle, what happened at the end? >> we won, unanimously. spend inch did you loopy -- losing clients and legal fees? >> the idea was to grab anybody who was small.

if the wrong guy. we just pushed back. we only lost 7% of our assets. we had a hard time bringing in assets but that did not bother us too much. they were shocked we decided to fight them. we testified in front of the committee that we had basically settled them and they had to put that back. it was a committed -- a committee with senators. extraordinary. nelson, yours is a single case. >> it raises a whole slew. gives -- what is the fcc? i have worked with them so i

know how bureaucracies can get out of control and usurp their power. the basic question is, is it a regulatory institution to help determine what the rules are? kind of likecc that. >> may i interrupt? is it an agency to design -- designed to help people like you understand the rules? financial engineers sitting inside financial banks that certainly do not need fcc to hold their hands. >> that may be true. the portfolio management area, i would not say we invent things. there are rules we cannot cross. rules to crossew in terms of going after people. >> is in the sec there to

protect investors question mark >> they should make it clear what the rules are for people who are investing their money. are they regulatory helping me understand what the rules are, because there are no laws, or are they human -- unitive? ofit is the security act all laws4, these are that govern the sale and management of securities in america. >> when it comes to insider trading, what has been discussed is a regulatory acorn that has become a judicial oath. there are no specific laws in congress that tell you exactly insider trading. like 75 legal citations in the first three pages. >> you cannot say the fcc should not be trying to identify and prosecute bona fide cases of insider trading. >> of course not. onhave a campaign going

right now called "speak out against regulatory abuse." it is on our website. it makes it clear i thought .eing accused there are gray areas. my question is, the people who work at the fcc, are they awarded only for how many steps and mark >> you raise an exit -- an excellent question. is more fundamental question whether the fcc is incentivized to go after scalps as opposed to doing what we would like the commission to be doing, going after real crimes and big fish and ruling out bad behavior at the firms and among the individuals who have capacity to do the most harm? >> great question. i love the fact that you use the word big fish. i am a small guy and it is easier to bully people like

myself around. even if you do not settle and we go the distance, which costs us $13 million in a lot of grief -- >> who is to blame? congress? that is the one that wants to see the evidence the fcc is doing its job and they want numerical evidence. >> that is a horrible method to use. there will be things happening across the board i hope. dois there is a gray area, you agree with some of the investment banks right now changing their rules and making them significantly more strict about what employees can trade? >> absolutely. specific bright lines. i urge people to follow us.

we will be addressing what we hope will be meaningful policy changes as well as specific about our case where we maintain just in relationship to their own powers. >> a big guy, and he will not give up. >> thank you for having me on. >> thank you so much. >> when we come back, lindsay says she stays the course at yahoo! or maybe break the company up and make a few billion dollars for shareholders in the process? ♪

>> you are watching market makers. is a victory for carl icahn. however, ebay is hardly the only tech company for shareholders to the value. yahoo! to spin off its asian assets. julie hyman is here. it took r.o.i. con nine months to get the spin off of paypal from ebay. not actually happen until 2015. what are the chances of getting anything done faster at yahoo!? >> it depends. we were talking about the former breakup push at microsoft and

what really stated that off was coming in and trying to change the strategy. a lot of promise when marissa mayer came into yahoo!. this year, it is only up about a quarter percent. the honeymoon really seems to be coming to a close as we are not seeing that turnaround performance. earnings and sales, we are seeing forecast to climb. another investor just wrote a for softbank and saying, this is interesting, we think yahoo! would be are better off than under yahoo!'s current top management. plan. a vote against the >> that is just a vote against melissa mayer.

but the truth is, what she has done is taking a post. it is the crux of the issue. you talk about being in a state or two for these companies, the , it is worth more than the u.s. business of yahoo!. one of the valuations him and there are many, that harris. as of yesterday's a $7.50, and50, nine dollars cash, 7:50 -- $7.50 for u.s. it is worth a lot more than the yahoo! shareprice right now. throughoutit all up the business, it is worth more than the shareprice now. you could see the lore of selling off the state and having

something to do with the core business. >> my favorite proposal for yahoo! comes from our own bloomberg view columnist. he said all that alibaba needs 83 -- 84 million shares in cash to buy yahoo!. up with stockcame and cash is because yahoo! has decisive 384 million alibaba shares. so the key, if i may just add, is alibaba is the only buyer who does not -- if they were to have to sell alibaba shares. >> ok. what is inside yahoo!? >> here is what is funny. still the fourth largest or most use website in the

world. use yahoo! weather everyday. >> everybody googles everything but apparently everyone does not google everything. an advertising property there, and still a website that sells advertising. argue it is not necessarily a growth area, but it is there. >> marissa mayer does have a few people in her camp like the google chairman, eric schmidt, and this is what he has to say about marissa mayer area >> marissa mayer work for you for 10 years or so? >> 13 for jonathan and myself. >> can she save yahoo!? >> yes. >> how? quintessential smart creative. if anyone can save yahoo!, she can. marissa is the chief designer of the single pay, a very in depth a very talented person.

i agree with johnson. >> she game in in 2012 and has been there a couple of years now. it is a question of, yes, there a this space in murder to certain extent. how far does that go? that is the question. >> the clock is officially taking now. julie hyman giving us the latest on mercer mayer in yahoo!. >> figure out who will make it to the world series. we will bring you tips from a world series expert. ♪

>> welcome back. we all know baseball playoffs are in full swing in the game i tried. beat thes city royals oakland a's in 12 innings. it was the first postseason appearance and 29 years.

a do or die game in kansas city to play the los angeles angels. san francisco giants face-off for the right to play in the national league series. the chicago cubs all-star first baseman is not playing this october, but is hoping he will be there sometime soon. he is with us here in new york. had a tremendous season. what do we have to expect postseason? >> i will enjoy it as a fan and enjoy the game. again last night was awesome. kansas city, monday might -- monday night football. unbelievable. the city has been in a drought for some while. of those players, they're like little kids last night. it is really fun to watch. >> who will win the series? >> this playoff is so open this year here it is unbelievable.

i do not think there is a clear favorite. i think it will come down to pitching and i think tigers have the pitching. i like the nationals in the national league. it is up for grabs. >> should it be the tigers versus the nationals? it will come down to who makes the least mistakes. every team is so good. one team has hitting and one team has pitching. one team has a good bullpen. it will come down to who comes throughout the right times. nobody seems to have a ton of home runs. less home runs this season and last season than in years. what do you attribute this to? >> the pictures, like they are making up pages. they are so advanced now with reports on what hitters can and cannot hit. they are just throwing so much different stuff at us at

different times. they're always keeping us on our toes. you have to think that the pictures were doing the same as well. >> a great point. >> do steroids help victories -- pictures as much as they help the batters? >> you're asking the wrong guy. >> you have to be -- i have been a baseball fan for a long time. you have to go back to the 80's to see seasons when people won the home run title of 41 jeff four runs. thewere tied to ninth in majors. validk 70's question is a one, and obviously, there were players who hit way more homeruns than we will ever see perhaps in history. in general, the numbers seem to reflect, you know, the same kind of game played in the pre-steroid era. commissioner, the

has cleaned the game up so much. guys will still get away -- try to get away with things they did. i think the game is in a really good direction right now. everyone is happy with the way things are in my opinion. >> wrigley field is about to go into a major renovation. where does it mean that the most? >> i was a behind the scenes, in the clubhouse. >> of course you will take the clubhouse. is soeld itself beautiful. everyone comes to see the iv and the bricks and the bleachers. you'll add more bleachers. >> it is the church of baseball. >> it is. the national landmark. it will be like fenway park. it will be modernized. >> there is a movie you may not have seen given how young you are. the cubs have a young him right now.

many people say no way you will take it to the world series next year but take yourself back to that his future to and take a look at this. >> cubs win the world series. against miami? >> it is something. who would have thought it was hundred to one shot. >> there you go. the year, 2015. >> no way. >> what do you say? >> i believe it. it to rise this and bring the clubhouse and show everyone and we will all believe it and hopefully ride it out. >> anthony, thank you for spending time with us. anthonyluck there it >> rizzo, an all-star first baseman of the chicago cubs. it is right now approaching 56 minutes past the hour. time for bloomberg to take you on the markets. having a look at a ebola.is of

-amen keeps coming up is pharmaceuticals. mostg it is one of the docsced companies searching this morning. reports of it how in west africa. you have seen a run appear and move tired just this morning as well. according to michael, a clinical trial on the drug could start potentially later this year. that could mean an fda trial and approval could potentially happen in 2015. a lot of possibilities and potentials, but this is one scenario.

the company would need a stockpile order to monetize the treatment. a $100 million recurring order would equate to a bump of 5-10 dollars per share in its stock price. a couple of version -- other names. pharmaceuticals up almost 2% this morning. his are very small companies with market caps anywhere from $61 million to $700 million. back on the markets in 30 minutes. cut thank you. some people think it is crass talk about making money off of ebola. but the reality is these need funding and capital markets to spend on research and development to actually come up with those vaccines. >> we have a lot happening in the next hour. plenty.ll be joining us watch out for the bond bubble

bursting. stay with us. need ♪

>> live from bloomberg headquarters in new york, this is market makers with erik schatzker and stephanie ruhle. >> the world according to david pepper. we will talk to the billionaire cofounder about investing charitable giving and the problems with nfl. an industry where they need the future to be bright. >> welcome back. city:00 here in new york there it >> a big step back for investors in fannie and freddie who were suing the government.

we are talking about this in the market. illegals claim it is for the government -- shares of both companies plummeting this morning. joining us now is isaac, an analyst for research trading in washington dc oft do you think about all this? questec you for having me. it has been an incredibly interesting 24 hours. effectively came out of nowhere. very little market focus. most of the attention was actually in a different court. the u.s. court of federal claims, where fair home -- fair home was the chief plaintiff. there had been a substantial amount of progress in that court case.

it was notable because of the actual said -- decision, but also because there was not any action expected in the near term. >> did you see a lot of promise in this case, the one we are fairssing, which included home and richard perry as plaintiffs? >> actually -- actually, there was a higher market expectation for the push. there was a believe that this case in the court was theementally stronger than effort in judge sweeney's court for a number of reasons, and there were a number of high profile lawyers attached to it. >> what does this say about other cases, like the one in bill ackerman brought, alleging the sleep of rockets violates the fifth amendment of the constitution? if that case was not as strong, it does not sound like process

-- prospects are all that great question mark -- great. >> we need to think the shareholder lawsuit efforts, this is not checkmate for them. it is undeniably check. we will have to watch as there and inkely be an appeal judge sweeney's court, we are awaiting the inclusion of discovery, which will happen in march of next year. is wesult from yesterday effectively foreclose on one avenue of litigation. as we close down each one of those lanes, the only way to push value down to current shareholders is congressional action. >> investors have that kind of time horizon? hit that hard get on days like this, investors actually look at appeals and congressional action?

that takes a while. >> depends on what investor exactly. larger investors were ready for an extended timeline because tort cases were expected take years even all the way to 2019, if there was a supreme court challenge. ultimately, i think to still be a holder here, you have to believe in a congressional bet onand making a congressional action is very tough in this climate. >> i could not agree with you more. making a bet on congressional action seems almost foolhardy. why is there any value left in this stock at all? it is certainly not where it was before the enormous run-up last year. >> at slowly. there is still a fair amount of link relation -- excuse me. there is the liquidation value of the preferred, if there ever was a resolution, so the actual value of the current business in

the liquidation scenario. on both the preferred and the common, there is a litigation premium. it is important to note that the judge's decision is incredibly important and immaterial setback for shareholders, but it is not the whole ball of game. shares are reflecting that. >> there you go. thank you for giving us the latest. all eyes are clearly on this action today. hedge funds are getting hurt. isaac joining us. >> today is a big one for other reasons as well. company wenty public last night on the new york stock exchange and made its trading debut this morning. it is backed by blackstone and raised $330 million, pricing the shares at $16 apiece. so far, shares are doing pretty well, up more than 6%. theceo is on the floor of new york stock exchange.

left about the timing of the ipo. a tricky couple of weeks for markets. how does that affect rising? >> we are not looking at this from a short-term perspective. we are coming to capital markets to get the resources necessary to build the company to provide people with an alternative source of power and help people lower their luck -- lower their electricity bill. we are excited to be here. markets are down but we are doing well and we are excited to be on the big word and now having the capital to meet customers needs. yourw exactly does business model work? it is tricky. >> we are very customer driven. we go out in the neighborhood and we do a cell and we do all of finance and, all aspects installing and owning solar is done by us. we install the solar panels on someone's roof. and we basically install a power

back to the people who decide to install it. the 15-30% reduction from the utility company and very little if any money upfront. >> your customers, the homeowners, are paying you for the power and not utilities and request that is correct. the power generated by solar installation. >> installing a painting, installing managing solar panels, is not that tricky a business. would you agree the secret sauce is your ability to finance the operation? you are effectively a financing operation. >> there are several aspects of the business. there is a construction company and it is still complex to get them right and personalize them for each homeowner. you're right that the biggest challenge or most is to figure out how to finance it. most people cannot afford

$20,000 for a solar system. >> if you are financing a -- if you are a financing company, how much bigger can you get right now that you have got more capital at your exposure -- disposal? >> in the last 12 months, we have raised $5 million and we recently did -- a facility with $350 million. today, as you see behind me, on the new york stock exchange, the purpose for the capital is to install more solar panels and give people the opportunity to have an alternative choice to lemonade the dependence on fossil fuels and save money. >> because financing is so important to your business, what happens over time if the investment tax credit, currently 30%, goes down to 10 on schedule in 2017 and the funds you have been raising for tax equity investors lose their appeal? and secondly, interest rates go up and that will surely happen,

making it more difficult for you to finance some of your projects. likedoes the future look under those scenarios? >> we are not building a company that will rely on companies. thate building a business can scale in the event that in 2017 there is a step down from 30% to 10% tax equity. we believe it will cut costs that will more than make up for the discount created by the reduction in tax equity. it is still a young industry. almostorecasted to be 3.9 in 2018. with growth and reduction in cost, technology continues to improve. we think we will be able to offset reduction in tax equity when many solar companies might not be able to do that. that is one of the differentiators we think we will have to do that with

infrastructure and the capital that continues to grow and scale the business. >> one of the ways you protect yourself is by putting in so-called escalators, that the cost of the solar power to the customer goes up about 3% annually over the life of the 20 year contract. industry, as you pointed out. once competition gets more thatse, it is possible progressive utilities might enter the business. will you lose the pricing power you have to put those escalators in place? a good predictor of the future. we are not competing with other solar companies right now. grow cleanision to power. traditionally, in the seven states we are currently operating, the power rate has increased 6% every year. 2.9 to the customer is enabling them the ability to actually

walk in a power rate. actually right now, in the event they are saving 15-30% right out of the gate, we think there is a significant delta between the price that we charge and the old world utility company generating electricity by fossil fuels. in the event that happens, we certainly have the ability to eliminate escalators, bar -- but right now, it is less than what they are currently paying local utility companies on annual increases. >> we thank you for spending time with us. the company just went public. >> congratulations. when we returned, how big data is driving advertising dollars. we will see out agents is decide just where to place those expensive ads. >> plus, a hedge fund billionaire coming your way. david. we will be asking him about robin hood, the charity he is very much behind. plus, markets, interest rates, the bond bubble. we are digital. find all of our stories and

interviews online. and streaming on apple tv and amazon fire. ♪

>> it is adweek here in new york city. today, we look at a different side of the business, not the part of it that makes ads, but the part of the that places them. how do companies get your eyes on their price? jordan is the chief strategy officer at mine share in global media and marketing company. you are a media buyer. >> yes. >> how has that business changed over time? >> it is changing immensely. it is actually a big wall street of fixation of our business right now. your viewers do not get to see this a lot around the adhere. with terminals and making decisions based on data both for the show but also or business. we're are doing a lot more for our business as well. >>

advertising is becoming more data-driven. we heard that two days ago from jason. he said many of the advertisements they are making are being driven in large part by data and what about replacements for the business? >> it is all filled by the same content -- same thing. it is really when our work begins. you start getting a whole wealth of data that you see from the marketing that informs decision you make both on the creative side, but also, are people buying your product or not buying your product? >> how do you know these things? what kind of data we are talking about? >> there is a term called ad serving am aware the web started out many years ago. that was the way and you've got data off of that. what happens now is that there are various acronyms and they

take data, other third party data that you could layer in to make decisions on that. for instance, we have a raw feed of data we get from the weather company and we can take a look at whether data, cold or windy conditions and they will help inform where we place as around skincare. if it is cold and windy where you are, you might have a high propensity -- >> that makes perfect sense. as far as collecting data on customer experience, that still really only applies to the internet and mobile devices. you cannot sell it someone is reading in a newspaper or magazine. >> no, but there are solutions for the outdoor. we can do the same thing if there is traffic going on around the billboard. a different type of at whether there is traffic or not. thing with television in certain places and over time, we will get to a place where there is plenty more

digital television opportunities where we could do the exact and thing. >> ultimately, where does this take us? >> programmatic buying, where we are able to buy in an automated fashion, data in a digital space. over time, we will buy a lot more advertising at ross walsh. yes, it is automatic. go back and facetiously reemploy your wall street analogy, why should out the thanmic at by doing better programmatic stock, bonds, and currency buying did leading up to the financial crisis? a lot of people relied on computers and paid dearly. >> a lot of algorithms work extremely well you're the point is, you can expect something to happen and program your algorithm accordingly and sometimes, it just does not work out that way.

>> a good example of this is, we have him one of our clients sells diapers. we did an initiative for them where we decided we wanted to surround stories around celebrities who got pregnant. people interested in that story, there is obviously a diver thought we can weave into that. so we did. we spent an hour and a half of thatnnouncement coming out kate was pregnant with her second child, we were surrounding that add. it takes people to make a decision that we will do that. to cannot just hand it over computers. hopefully not, or i am out of business here at >> really good meeting you and thank you for coming. .he chief strategy officer coming up here, oil prices took a dive in the third quarter. how soon before they start rising again? that is what every driver wants to know.

♪

>> welcome back or the price of oil fell three barrels yesterday. the biggest we have seen in more than a year. it fell by 11% in the quarter that just ended. our own economics editor is here with the real deal on why oil is plunging and what it means. >> a lot of benchmarks and they're all falling. there are basically two reasons. supply and demand, of course, but really, the move has been a dollar story. you can pull up the chart and see the connection between the dollar and oil prices, oils priced in the dollars worldwide. you're paying less for oil. you see how the have moved in

tandem. i have another chart where i just inverted the price of oil. you can see how closely they track. is basically a dollar story going on right now. sense, itn a larger is a fracking story, supply and demand. the united states produced 88% of the energy it needed last year. we used to get a lot of oil imported all over the world. that does not have to come here anymore. that can go other places, like asia and china in particular. oil means there is more there and that brings the worldwide price of oil down. overall, we do not need as much oil here it on top of that, china needs less and you end up with lower oil prices. >> what if the dollar keeps strengthening? david was citing the research by his own forecasters and economist saying the euro will

go to parity with the dollar. >> it will just keep the price pressure on. saudi arabia has let it be known in the oil markets that they are starting to adjust how much oil they put into the world to try to control the level of oil. for the time being, it looks the oil prices will be well contained. the average gas prices keep going down. >> why don't i see that when i go to the pump? >> maybe you are not going to the right destination. they were like where in february. >> how much lower couldn't really go? texas,il prices, west could go into the 80's. the key number is $80. then you start getting into the question of -- of come is fracking economic? they continue to drill wells to keep the production we have seen up. >> thank you. >> thank you always with the real deal. editor,economics

michael mckee. >> when we come back here, david pepper, one of the biggest supporters of the robin hood foundation. we will hear from him on that. plus, a lot more. >> stay with us. ♪

>> live from bloomberg headquarters in new york, this is market makers. this show is super awesome during commercials. welcome back. >> you just cannot make it up. >> we have some very special guests. noble goal,with a the robin hood foundation wants to end poverty in new york city. like its namesake, it takes some from the rich and gives to the poor. an investor confidence -- conference later this month.

the executive director director of the robin hood foundation, one of my avon unit -- new yorkers. david and welcome. this is the second year you're commerce. investors we ask a lot of people to spend a lot of money. how well the last year ago question mark >> we raise $5 million to save lives here in new york city. if you bought a ticket last year and you follow the investment in vice -- advice that you heard, you made a lot of money. it is a great thing to do because you can do well and good at the same time. >> i want to pull out the robin hood best it versus the s&p. >> it did well. if you bought a basket of all 21%.teps >> you make >> yes. that is pretty good.

>> he wills it to the conference you basically bonds will die. the 10 year, that does not seem to be the case. >> are we going to talk about robin hood? i want to make sure what we are talking about here it >> what are you going to talk about at robin hood? >> i cannot tell you exactly, unless you buy a ticket. to know if you're writing a check. i do not want to give us -- give the goods unless i see what you have got. you will buy a ticket. >> bloomberg elsie is a huge supporter. we talked about the bond bubble and it has not risk yet. >> i did not say would worst. it is the beginning of the end. what that meant is, the ecb, if starts to doally

qe, then we have the beginning of the end. yet have not sent any qe dared let me start some qe. the beginning of the end was basically saying, when you create inflation in the euro zone, the bond market will start going down. if you do not create inflation in the euro zone of him sort, or do not stop the deflation, that might not happen. if they go on action, if a really get in action, you will start creating inflation a sump when in time. until you do that, things will go where they go. >> given what we see and what you point out, and given there is so much deflationary pressure doesrope, what choice mario draghi have but to undertake something like this? >> he does not have any. he should have done it last year. if here would europe be

had done it last year? >> it would not be on the verge of deflation. >> are you on the side of richard fisher, who's that, do not fight the fed question mark now, it is do not fight draghi. >> i think that is right to a certain extent. you do not want to fight it but you have to understand what it means. to the extent that he is really in action, then you do not want to fight him. but he has to be in action. interest rates do not necessarily have the effect of grading money or inflation. if you want to do that, do that. right now, he has done nothing. let him start. >> let's say our viewers are watching and saying, not that impressed and maybe not worth the price. >> here is what they're saying. he is very handsome. >> it is the hair. a look you're the robin hood look. look caribbean today. maybe that is what it is.

the legendary stan miller, the one and only, paul jones will be there. john griffin, david einhorn, those three are pulling together this great conference. our greatjpmorgan, sponsor, the most generous corporation and all the land along with bloomberg. >> the bloomberg foundation. can you really ask dan loeb and carl icahn in the same room as larry think, who sit on opposite sides of the room? >> it will be interesting there it and we have got great new faces. eric schmidt will be there talking about tech. harvey will talk about entertainment. by helpinglp us out provide high it for free this year, which saves us a tremendous amount of money. a great two days october 20 and 21st. >> people are listening closely to what you have to say about

the bond market and what mario draghi might need to do and might have to do. but they remember vividly some of the great calls you made on the stock market in the past couple of years. the s&p 500 at roughly 1960? what do you think? >> the u.s. economy is pretty good here it is trickier and out. because of what we just talked about. thinkhe stock markets, i you're really not at high multiples right now. if i look at bloomberg and put up a screen, i think it will say -- question is almost 18 times right now. >> no. it does not say that there it >> he seems to know it better than us. >> what does it say there? .>-earnings in the s&p 500 >> what does it say for next year? it14.78 for next year there >> i do not even know what you're looking at.

the next estimate, 14 78. see, that is current year, 18 scene .42. 16.5 for this year, that is the current year. >> yes. 1477. >> so 16 .5, is that high for this year? i am asking you. it is high,nk because if you believe interest rates are or or for a 5%, i do not think we are at the 4.5% 10 years. we are at 2.5% or two point 43 or something like that right now. i might have to come over again and look at it. do you makeds, what of that? is this the time to buy high yields? >> they are probably now in the more midpoint.

>> what is your view on fannie and freddie today? >> i wish i do not have any investment. >> is not interesting to you? is that how you do it on tv? is that how they do it? >> you are a performer more than we are. you think so? >> you did win best singer and dancer at your high school. >> i did. >> fannie and freddie. you wish you did not have an investor but truly, what will you do? in allink right now, honesty, we are talking about this right before i left the office very where are just going to do a little more research and see where we stand in different courts. you know, there is a process for different lawsuits. you are done with this particular court. you have other courts you are involved in. the court of settlement lames or something like that. different places, different venues and also, you can appeal

this last decision. that will go on and you want to see what exactly happened in this judge's opinion right here. you have to do analysis right now to see. if securities are down a lot. are they valued now? buy, sell, hold? >> are you thinking about being any number of these lawsuits? >> i do not think we are on any of the losses. it is not a tremendously large decision. .ou do not really here it is a position we have so i do >> losses it, but no, and bankruptcies, we may get a little more interested in that in some -- and, but we really do not have a position big enough to get involved in that fashion. >> or are you against apollo right now? >> i am sitting right here. oh in the figurative sense.

obviously, that is sensitive right now. worstried to take the pitcher they could find of me and put it in the washington post. >> ok. what is fannie and freddie lee -- and freddie? an underperformance in the market last year. biggest funders, it has been hedge fund managers from the beginning. does robin hood need to diversify the backing? given the glory days something are over. >> they are far from over. come on. we are blessed we have tens of thousands of donors, including 160 -- 162 who give $100,000 a .ear we want more to give to our community of caring. we save lives here in new york city and none of it does to pay for our salaries and

administrative costs. david and other members of our board cover all of our fundraising and administrative. it is a good investment. >> is there a community that is not playing enough of a role yet that you would like to see there? >> every single person in the financial community, we would like to see them help us save lives. we need to do it. >> you are smiling. >> david is very nice. i think it is very nice for those people who want to do it. il gaze came to our office yesterday and that man is billion. lightening diseases off of the face of the earth. he will go down in history along with his life and how to save more lives than anyone in history. >> you say the giving pledge, great for people who want to do it. >> that means, listen.

i have been giving money away for a long time, publicly. before there was a giving pledge, i named the university. i can talk about the giving pledge and i can do the giving pledge. do i really need to? i was there before it and i will be there after it. give money away every year. to persuadeice idea people less philanthropic than you. >> that is what i said that and that is what i basically meant. >> all right. another name beside you in the market, bill gross. risk we see a broader tell affect in the market? i think i was up the street from me when i lived in pittsburgh. different il gross? forhat does the exit mean the market? >> nothing. who cares? you saw it the other day. a little bit that was done with the corporate markets. he is there, here, it will not

mean that much. you talk about today's, three days, that means something but long-term, it does not mean anything. market is a market, bigger than anybody. >> a high yield market in the midpoint of fair value. bubble, if girardi undertakes qe, got a blowup, equities, ok. about bondsmazing right now, you really have negative rates in the short end of the curve. ireland. that is where irish people come from. it is negative there as well. that was 10 or 15% two-year yields. people wereountries worried about. it is very tricky. these yields will go down in the u.s.. to gor, you are so close

the other way and that is what makes this a tricky market. listen. if you have big employment numbers that take you into the five, it will start worrying the fed about inflation at some point. and if you do get inflation in going down,op inflation looks like it will start taking over. at the same time, you will have market yield turn up here it so it is tricky and until that happens, you have yields down. the question is, are you getting paid enough for the risk in any kind of yields. >> where are you getting paid enough? restless and. a great segue. are you really getting paid enough? if you really look at the curves and how things are trading in you go from probably too rich in any economic growth, the united states, which looks yield,ased not on a 4% but maybe cheap where yields are trading. then you go down to japan and europe and they are pretty

cheap. do not make me get up again. anyway, they are trading at those low multiples again. , 50ou look at euro stocks right now, or something, a reprocess dividend yield. higher dividend yields then all through europe and japan. at some point, that has got to turn and it will turn when it looks like they're doing something. >> there are u.s. corporate earnings. dollar versus euro and dollar versus yen. the moves. to my good friend stand, he would say these moves have been nothing so far. atyou look where the euro is 126, 135 in the last few years. these are not moves. they are moves. the moves are down 110. maybe it will go to 110.

stan is really good at this stuff. i could tell you what stan will say, but we you -- you will have to pay $7,500 for a ticket. >> there you go. ticket.or a we have to take a break here it when we come back, -- oh, we are staying here and not taking a break. sorry. >> why would you want to stop this? >> what else will you talk about? equities? >> listen. i will not lift my skirt up to my head. >> i do not want you to. >> i am not doing it. >> we did not know you were a skirt. >> you have not seen me on sundays. sundays, come over here and i will wear a skirt. >> tell us. questec kind of told you. it is interesting on a multiple basis. you have to have certain things happen. ,ave europe stop the nonsense

so tuesday. that is kind of it. >> i have a question for you and it is not related to investing. you are part owner of the steelers. what do you say? job at herly like my than his, i have to tell you. mean, he has a tough job. i do not have enough information on what really happened here at >> aced on what you know? >> based on what i know, it is a little bit disappointing. i think you would have to say that. personally, if i were roger, i would be making donations out of my own money for some of the causes we are talking about as >> does that make the problem go away? >> it is not. the problem is not his to make it go away.

you asked me about roger goodell and what he should be doing. he cannot make the problem go away, nor than any person -- more can -- nor than any person. i am saying, for himself, he should be more sensitive and make some donations in this way. that is one thing he should be doing and it has not been done yet. you asked me what i think about him and that is what i think he should reach in his pocket and just do that like any player in the nfl would be doing if they did something. that makes sense to me. beyond that, listen, the problem of domestic violence is not a problem only to the nfl. this is a problem across not only the united states, but across the world, unfortunately. so he cannot do anything about that. what is going on in the nfl, this is a difficult question. i do not know what was said when

and how. the person hurt in this thing is rail -- ray rice's life. she was in there and he was doing things for her, and i do not know enough to know what he knew and how he knew. for me to say anything, it would be ridiculous. hand, what i did say, it is easy to say. that should have been done, i think. >> david, i want to bring you back into this conversation. you have a common goal. we will play a word of association. we will give you words and you tell us what comes to mind. 1%. >> what a wonderfully generous group of people. doing that are in performance. >> chris christie. >> governor. >> lapband.

>> i thought you said lap dance. >> no. i would never do a lap dance with governor christie. is the surgery he had. we own 30% of this company and we funded it and brought that product to market. >> warren buffett. questioning is. >> warren buffett? interesting guy. >> that is all you're giving us? click yes. he is interesting. >> let's get serious for a moment. ebola. >> obama. me, i think the united states, of any country, can, the united states can contain the

risk. you can ask a lot of questions. again, i doappen, not have enough information to know what happened. >> ebola. >> tom, he was the health administrator in new york and is really it. if there is one prison i would trust. >> you have full and other confidence in him. >> i do. >> robin hood loves rock stars and you love jersey. bon jovi or springsteen? >> i have to make a choice? bob seeger. they performed together at a benefit concert for robin hood and that was the best. >> i know you're from pittsburgh. the midwest question mark is a gateway. we gave st. louis the arch. the consider pittsburgh gateway. both of you, thank you so much. i know i will be there are over 28 and 21st. the robin hood investment conference.

you better watch his interview again if you do not think it is worth it. we sayng back to you as goodbye to david and david. gentlemen, thank you. ♪

>> that was one heck of a market.

crisis certainly was. >> guess what. will do tomorrow? try to out do today. click yes. i will speak with the one, the only, bill gates. and now the gates foundation tomorrow in boston. -- for aor it a live live interview at 3:00 p.m. >> time for bloomberg to take you on the markets. i will send you out to the newsroom for more. >> thank you. the trading day of the fourth quarter. kicking it off in the red. mixed data, signs of economic weakness in europe. plus, all weighing on prices. the index approaching that correction, a drop of 10% from the peak. joining me for today's options insight, the equity derivatives strategist with baycrest partners. let's start with options. we do not talk about that a lot. so much focus on small caps and

how they may be leading the way lower for large caps. , we are seeing increased activity on the downside hedging. they have been selling off a lot more than s&p. we are seeing more and more activity on the downside. in fact, a smart guy said if you byd those and hedge to them selling either the market itself when you're actually making money so far, -- >> that is profitable trade? >> so far, it has been profitable. it is hard to say what happens next. everybody is now waiting for the 10% correction. maybe there is more exploration to the downside. if there is, then obviously, -- so far, because it has sold off slowly but surely, but without

any panic, those downside quotes sold actually did make money. >> got you. when we look at the large caps, the price of protection for big caps stocks, currently at 16.4. we could be approaching the levels we saw in late july, where the got to 17. inore that, we got to 21 february. >> right. do not forget as time goes by, people are getting more and more nervous about the markets and positioning. we saw higher levels back in january, and then in the middle, and then in july, we saw those high levels. more and moreting nervous and it is not really a surprise. when i was here, -- now, risks have been elevated and it is telling you

that. >> gotcha. in terms of sectors of stocks falling, i'm keeping a close eye on airline companies, especially after the first case of ebola was announced here in the united did yesterday. you have southwest, jetblue, delta, united, major carriers. declineexacerbate the we are already experiencing? >> an interesting thing happened in southwest airlines, where it that somebody who sold a straddle in number 33 strike force southwest airlines. that tells me he could actually be a sale taking advantage of levels, or it actually might the a by that the bank actually commented at that level and that the stock was moving that much, it appears it was sold and in any case, an interesting part of the southwest travels. >> you also have a trade for us

this morning on constellation brands. earnings reports tomorrow. what is your strategy? >> my strategy is the upside is that i like the company and i like the management and i like what they are doing. but given that they had a very strong quarter last time and then the stock gave back all the games, it seems to me the upside is limited right now. i would like to sell nothing but 92.5 taking advantage of the levels we have seen. >> constellation brands reports earnings tomorrow. we will keep an eye on that for

clip."ome to "money .'m adam johnson here's today's rundown. in tech, it's not just ebay. activists are targeting silicon valley. the great breakup of 2014. in media, a blockbuster battle at the movies. netflix is shaking up the whole viewing experience. theaters are not too happy about it. around the world, hong kong protesters move the city's leaders and step up pressure for his resignation. ebola dominated the headlines coming out of africa. it turns out there is the very big challenge as