thing where people are actually taking views on one side or another and there is a two-sided market. there is a question of at what point are we going to get back to a normal market? >> the federal reserve is not doing much at least for now. thank you so much. we are back on the markets once again in 30 minutes. "market makers" is up next. ♪ live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. rates has interest not done the trick. the ecb president mario draghi hopes bond buying programs will get things kicking again. he has been through the battles. brian moynihan has won the war. or has he? he has added another title. he is in the big leagues.

the beautiful business of beauty. the ceo who wants everyone to buy her cosmetics and she won't be going through the big retail chains. welcome to "market makers." my partner erik schatzker is on assignment in boston. we will be hearing from him a little later in the hour. meantime, mario draghi says he has a few more's over bullets to fire. the ecb chief says he will keep buying assets for at least two more years as the euro zone stumbles back from the recession. let's bring in jonathan ferro in london. what did you learn from the news conference today? >> we learned when this new abs asset purchase program would start. they will start buying bonds in the middle of this month. the fourth quarter of -- the bigig

question was, you want to get your balance sheet up by one trillion euros. i don't think it is clear how he wants to plan to do that still. he deemphasized the target of doing that. if i could sum up the press conference in a line it would be , we have already decided a massive amount of measures for now. you take that line and for a lot of people that means, that's all for now, folks. >> how close are they to tipping back into recession? >> i think they are already there if you look at some of the indicators. business confidence is dipping. consumer confidence is dipping. inflation is 0.3%. the economy is already turning lower. >> it is clear that mario draghi's line has been we will do whatever it takes. does he have the bullets to do that? >> that is a really important question. , youhatever it takes line

have that big whatever it takes line, we put that out with the unlimited bond buying program, great, you push down yields. but it is still not actually active. it is going through one of the european union's top courts. people question the legality of that program. the bond buying program has not been rubberstamped by the top courts. how can you say that mario can conduct quantitative easing? the legality of it is still very in question. what kind of difference would it make when you're already have spanish ten-year yields at around 2%? how much more can the ecb do? >> thank you for breaking down the latest from mario draghi. i want to bring in the founder and cio for london-based deca-capital.

sky for 17n the years. can you believe that? welcome. such a treat to have you here. what do you think? >> i think they have a real problem. they have put out the fire and now they need to do proactive measures. as your colleague said, putting those measures into practice is really hard for them. there is a story saying they have put out programs to value abs. you never see that story from the fed. they don't say, by the way, we still have not seen the mechanics of how to do this. the ecb says a few things and they keep delaying it. , it is hardeflation to get out of it. the worry is that the ecb is moving way too slowly. >> these are fundamental

problems. what does that mean? >> between now and the next meeting, you have another blackhole of news. markets will trade lower because they have not delivered and they are nowhere close to delivering and they will not deliver this year. the market knows that the abs buying program is coming, but what they really want is sovereign qe. they are not getting sovereign qe by early next year. when is it coming? >> what does this mean for european banks? they still have a ton of junk on their books. >> i think the abs program helps banks. if you have one risky lender and you are the only person lending to them, they are still risky, but if everybody in the economy is lending to them, then the whole economy d risks. i'm not sure it helps anybody else. >> what is more of a concern to

you? >> the ecb is a known quantity. we know they are slow and behind the curve. you can trade based on that. the fed seems to be all over the place. on one hand, they have a strong u.s. economy and they need to raise rates based on the model. on the other hand, it is kind of like a bicycle and there is only one peddling. once you stop peddling, the bicycle collapses. >> the u.s. economy is doing well. to continue to have hera when injected into our veins so the market stays the same? the u.s. is the only growth engine in the world. in 2011 or before 2012. once the other markets got in trouble, the u.s. went back. >> are we facing bubbles? up.ty prices continue to go

>> you have this conundrum where you think about yields versus spreads. on spreads, they look cheap. 6% on high-yield companies. , if ied to ask yourself buy high-yield bonds will and make money? i think the answer is no. even though high yields have sold off by 100 basis points this summer, i don't see how we are anywhere near. >> really? seems like every new high-yield is hotter than the one before. >> you have gone into a period where you have gone from the whereo buy to a point assurance is outgoing inflows. real money needs to come into this market to support it.

the people looking at this from a holistic point of view, why would you buy high-yield that 6%? >> i hate hearing the difference between real money and fast money. >> real money is people coming with a five to 10 year view. it is buying that they -- knowing that they have a client base that is there for the long term. i think there is a massive difference. money, two thousand eight happens and nobody wants to sell stocks in 2007 and then stocks are down 40%. >> have you think m&a activity is so high right now? >> the cfos are scared that the fed is going to raise rates. if the fed raises rates, borrowing costs are going to go up. it is a very short window of one

to two years in which to rely average balance sheets. that is why you are seeing so many events like ebay taking place, or companies are making balance sheets riskier. >> you think ebay made sense? >> if you are a stockholder, it is a home run. if you are a bondholder, it is disappointing. they give half the value of the company away and kept you with one half of the company. you have the same debt, half the earnings. >> stockholder, good day. what about a high-yield guy? what are you excited about? even if you know what you are talking about, this is an extraordinarily hard time to invest. >> if i am a credit guy, i am very excited by short market. by shorting particular sectors and companies were still think the market understands the

leverage in these companies. the fed hikes rates. to $1000.from $1200 bond prices could be down 10 to 20 points. being short gold producers is the most convex way of getting the fed raising rates. >> if you are a momentum player, this is the worst time to be in the market? >> i think it is a great time to be in the market. you have a situation where the market goes up and down and if you have strong views on what makes sense and what does not make sense, you can use this selloff to buy what you like and you can use the rally's too short what you dislike and then you can set yourself up for the medium-term where you are long and short companies that you like and dislike. >> do you think volatility is going away? >> you have the fed that is about to change policy.

the market thinks and knows what is going to happen. the economy does not know what is going to happen. a black hole of news where they are not about to do anything anytime soon. the market likes guidance and it does not have guidance right now. it does not have someone strong telling them what is happening. have somebody smart sitting next to me. such a treat. if you believe we are sitting next to each other right now? i have known the sky for a really long time. it is time now to his feet. the top business stories from around the world. in hong kong, protesters say they are of the talks to end the weeklong protests. the city government is seeking to head off an escalation. student demonstrators are demanding free elections. they also want the chief executive to quit by midnight hong kong time. we have not seen oil prices this low in almost a year and a half. below $90 per barrel.

you're a possible are as fallen. -- europe possible and mark has fallen. oil production in the u.s., saudi arabia, and russia are outstripping demand. another sign of process in the job market in the u.s. first-time claims for unemployment benefits. continuing claims for benefits hit an eight year low. the september jobs report comes out tomorrow. economists are expecting a gain of 250,000 jobs. for we return, a new role the bank of america ceo. he made it into the big leagues. will this change anything at b of a? we will ask a friend and contributor. ♪

>> welcome back to "market makers." colored a reward for brian

moynihan. he spent five years and $70 billion bringing bank of america back from financial crisis. he will also be the bank's chairman. cohen. now is bill i feel like every other day we talk about corporate governance. the most criticized industry there is. >> i guess this is what passes for a reward these days on wall street. , they are all both chairman and ceo. so he wants to be chairman and ceo. this is not good for corporate governance. it is good for brian moynihan. i want to sit at the

grown-ups table? >> something like that. you can argue that maybe he has earned it or not. using shareholder money to pay all these fines. stocks of gone up a little bit since he became the ceo. basically dead money for investors over the last five years. i'm sure he would rather have with jamie dimon has which was a raise. jamie dimon got a raise to $20 million. i'm sure brian would like a raise. montag has been paid more than brian moynihan. now that he is ceo and chairman, he does not necessarily have jamie dimon knocking on his door. >> i think the chances of tom oftag being ceo and chairman bank of america are quite remote. that is my personal opinion.

whether bryant deserves this or doesn't deserve this. he wanted it and they gave it to him. he probably wants the rays to $20 million. -- raise to $20 million. the u.s. government saved the bank. the u.s. government saved the banking sector. is brian dealing with the legal issues they have encountered since then? yes. has he done a good job? i don't know. voice $17 billion of your shareholders money. is that considered to be doing a good job? me, you are held up at gunpoint and you forked over the money. >> are banks taking it too far? several are changing trading policies for employees. they will not be able to trade individual stocks. are we taking it too far? one would think traders and bankers are pretty good at that.

some of them might make more money. what promptedw goldman to do this. we have not found that out yet. i have the view of if it eight broke, don't fix it. stocks,anted to trade the compliance people would check the restricted list and if it was not restricted, you could trade it. why should wall street bankers and traders not be able to trade and buy and sell stocks like everybody else? if it is not in the restricted list, you should be able to do it >>. our banks taking it too far knowing that they are such a target in terms of government action and regulation? i would think big tech executives like to trade. passes for industry leadership, i think they can rethink that. this is a sleeves off your vest kind of move.

if lloyd really wanted to be a leader on wall street, he would do all sorts of other things. the incentive system. not one thing and the system has changed. but at the imf report yesterday. totalked about concrete ways change the incentive system on wall street. this is something that should be considered here. the incentive system. stop rewarding people for taking big risks with our money. >> you don't think that has changed? >> i'm talking about the incentive system. you don't get a bonus on wall street unless you take a big risk with other people's money. >> 70 senior executives at deutsche bank having their first -- >> how much money is that really? that is a joke. you did try. traders investing in stocks and bonds, that is a meaningless leadership move, if

you ask me. >> if they were to change the incentive, so few talented people want to be sitting on the sell side this time. if they were to change the -- ersation arrangements >> and go back to when it was a private partnership and there was real capital on the line? there are a lot of people who wanted to work on wall street when it was a series of private art and are ships. now their public companies. they are not going to back to being private partnerships. you can mimic the days of private partnerships. >> except you don't have the upside. >> sure you do. you don't have the upside of going public. hello. so what? >> that is why you go to work at goldman. >> that is not true. that is not true. you want to work at goldman because you can make more money doing that than any other thing you can do without risking your own capital. time to have more of your own skin in the game again.

we can leave it there for now. to be continued. >> as usual, we are going to agree to disagree. >> love. >> great having you on. lower a day after the s&p's worst performance. we are taking you "on the markets." ♪

>> we are approaching 26 past the hour. it is time for on the markets. let's start with wayfarer. i love this company. searching after pricing its ipo above the range. it was a blowout deal and now they are feeling it. they reached $390 million. -- $319 million. she is the one to follow on instagram. the market seems to like it. they seem to like her clarida gave away -- thinking to like her. her -- they seem to like her. to percent cocoa --

shares are up for hundred 50% at gopro. stay with us. we are going to talk about investing. ♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> welcome back. erik schatzker's on assignment and is with us now. i will be interviewing none other than bill gates this afternoon. he is the founder of microsoft. the former ceo. he has no dedicated his life to philanthropy. what interests bill gates and the reasons he is here, the reason i am here, the un-banked

financial inclusion. the idea that financial technology opening up opportunities to survey market that have been ignored forever by the banking industry. there is a financial technology conference underway here. bill is going to be addressing this group later on this afternoon. i will be speaking to him at about 3:15 this afternoon live on "street smart" on bloomberg television. that is what is happening later. the whole notion of the un-banked is fascinating. firmve the man behind a called core innovation capital that invests in businesses serving the un-banked. he is with you in new york. youis it that people like and people like bill gates see an opportunity serving a market

ignored deliberately by the banking industry? of course, there is not just a big opportunity, there is a big need. financial inclusion really relates to people's economic ability and economic empowerment. there is a tremendous dearth of that worldwide. us is when we realized that that is also true in the united states. alternatives are often very expensive. it is one of these perverse ironies. it is expensive to be poor. there is a tremendous opportunity. we are investing -- >> i don't want to sound too kind of can't help it. how is it that the poor are a

good market when by definition they don't have a lot of money? >> it is not just the poor. .bout a third of americans it is not just a strategy for the bottom of the market. this is a mass-market. to answer your question directly , you don't need to have high net worth to transact. , the undered states banked generate about $1 trillion of income. is $1 trillion coming into the economy and that can be much more efficiently processed. are offering credit solutions or payment solutions are ways for people to invest or save some of the $1 trillion, there are ample opportunities to both make a lot of money and make those financial institutions more efficient. understand why documentary filmmakers want to make people more aware of the under banked.

i understand why bill gates is involved. but you are a business guy. how are you going to make money off of this? ? most venture capitalists want to invest in a company that has the potential to invest -- generate over $1 billion. if you look at what the under banked are spending on financial services, in fees and services it is about $100 billion per year. there is a tremendous market opportunity to reduce that. see if we can bring that down to $50 billion and do it in a way that is more marginally profitable for the companies doing it. there is also an opportunity to change people's lives. >> erik? i think erik can't hear us. i want to share a clip.

he believes technology is going to change and we are going to start to do more to help the under banked. >> the way to do that is to reimagine the financial system. an extended, was but really to actually think about what could be. technologies are fundamentally changing the way we serve people. you can do it at a cost that is much less than what traditional financial services providers have been able to do. snd youu agree with think american express is one of those big companies making that change? >> absolutely. intorically, they have fit the under -- into two buckets. the missionary camp or the mercenary cap. we are the visionary camp. the missionaries perceive this as a philanthropic opportunity. that is great and important. people like bill gates are doing this abroad.

, a lot ofcenary camp folks addressing the under banked are basically doing this in an inefficient way. this leads to expensive products like pay a day lending and such. there is a third way. is ank dan shull incredible example. them, this is a billion-dollar opportunity. asy are approaching this not a philanthropic side project or as an opportunity to get out low income people. -- gouge low income people. this is what we are are looking at as well. [inaudible] [no audio] erik.cannot hear some people are cynical. we have seen many initiatives to go after and try to help the under banked.

prepaid phones, prepaid credit cards. we have seen the under banked get taken advantage of. how do we avoid that? is it about education? >> i think it is about technology. technology can help create better products. products from an efficiency perspective, but help people use those products better. >> give me an example. >> one of our portfolio companies is a short-term lender. they are an alternative to a payday loan. they are doing it at 10 times less. that is a product design opportunity. from a behavioral perspective, what they are doing is really powerful. , theyer you repay a loan are reporting you to the bureaus. the products allow people to become upwardly mobile as a function of using the loan. if you are getting a payday loan, you are no better off

after. the opportunity to repay the credit bureaus is an opportunity to get access to more mainstream credit, lower-cost products, your credit score does not just help you in any kind of credit product come up to get a job, an apartment. credit scores are ubiquitous. >> are credit score is going to be made less and less important? it is going to become more important in the united states. 10 years ago, it was not used in rental screening or employment and now it is. the credit score is becoming a more ubiquitous way to identify if you are a responsible person. >> has the mainstream perception of the under banked changed? ago, they were perceived as a philanthropic opportunity or not to do to do what you could get away with.

there are so many folks like american express, like j.p. morgan chase, like other folks who are really starting to provide progressive products that are really low cost. >> there were missionaries, mercenaries, and visionaries. the founder of core innovation capital. thank you so much. great to have you on. , you saw him and he will be back in a few hours. you do not want to miss it. 3:00 p.m. for his exclusive interview with bill gates. changingeturn, the face of beauty. one cosmetics company wants to change the ingredients in your makeup for the better. ♪

>> welcome back. beforee heard it all about harmful chemicals in your food, water, and the air. you name it.

what about the ingredients in your beauty products? i said down with the ceo of beauty counter. take a look. >> it is really the fact that we are trying to change the face of the beauty industry. ute counter is a direct retail brand. counter is a direct retail brand. why is this so important? women are starting to use botox and their young 20's. i can't speak to what people are doing in their young 20's specifically around injections. day toexposed every toxic chemicals in our personal care products. they can be linked to cancer, reproductive issues, and endocrine construction. as your skin is your largest organ, it is incredibly important that you pay attention to what you are putting on it. >> you don't have a beauty background. >> i don't. it became my mission back in

2006 when i became part of the environmental health movement and i heard we are being exposed ingredients through our personal care products and i decided that somebody needed to do something about it. i found a beauty counter with the goal of getting face products into the hands of everyone. of whyd you make sense there is not more regulation around this? we haven't passed a federal law governing the cosmetics industry since 1938. countries in the european union ofe banned 1400 ingredients which the u.s. has banned 11 to date. there are good lobbyists out there who are against any policy reforms. part of our job at beauty counter is to increase awareness so that people can make better and more informed choices. and your investors, you want to make this business as big as possible and go mass market.

>> we are not really a direct selling brand. we are a direct retail brand. we sell our products through a network of independent consultants, as well as through our e-commerce platform. -- andly chic, cool mom modern. >> they are a group of women who are really excited to be mobilized and moved by our mission. it has been incredible creating an economic opportunity for these women and men across the country. going back to your question earlier, we chose this all direct to consumer because we believe the story is best told person-to-person. >> what happens when a major company like estee lauder wants to add you to their portfolio? are you for sale? >> not today. there we have gotten phone calls as the business has grown substantially over the last 12 months or 18 months since

launch. we are really committed to effecting change all the way to washington and to see a transformation on the whole. >> you don't do any advertising. how do people know about you? >> word-of-mouth. primarily. we use those channels to create digitally enhanced word-of-mouth to drive the conversation in homes and parties and restaurants around the country. it is really working. >> is there a business model that you look to that you would like to emulate? >> there are a number of great companies out there. , we look aturselves companies like patagonia and others who are really focused on their mission, creating great rod x and great value for everyone involved, but also actually doing something that has significant social impact. >> it do you want washington to take action in terms of harmful chemicals or for you is this a business opportunity? >> we actually really want

washington to take action. we believe strongly that americans deserve better and we are all about making them happen. we are very pro-commerce. we believe that companies can grow very successfully while also having significant social impact. andfact that one into men one in three women are diagnosed with cancer in the united states today speaks to the fact that we need to have changed now. >> are you selling products? our age and line gender neutral. we have quite a few men using our products. thank you for asking. >> what is your number one product? >> the number one selling in our essential line and it is our body lotion and cleansing cream. neither of which are on the stable. ourave been stocking up products is the business has grown substantially. if you are looking at what we , ourooking at right now

body oils have been extremely popular as well because they are really clean. all high-performing products. we are not asking you to compromise and efficacy or performance. we are asking you to embrace healthy products on your body. >> there you go. beauty counter. we will see. "market makers" will be back soon. stick with us. ♪

>> welcome back. the googlefounder -- ex-cofounder has had his hand in many of the greatest hits. thes trying to fix one of toughest problems out there. education. news the first guest on the bloomberg show "studio 1.0." "bloomberg west" anchor and "studio 1.0" anchor emily chang. >> he is considered the godfather of artificial intelligence. he invented the self driving car. one of the interesting things i learned is that he had to be convinced. he got that inspiration from the google founders themselves, particularly larry page. >> at what point did larry say,

we want to do self driving cars. >> larry came to me and said, it is time to do something courageous. a moonshot. he had to convince me. he said, build a car that can drive itself. i said, it is not that hard. i is not that hard because have not tried. he said, give it a try. you helped found google x. the moonshot factory. how did that come about? >> i was at the point were thruway all skepticism. just do it. they said, absolutely, yes. >> google glass was their first project. now they are looking on medical contact lenses, broadband balloons. there were so much going on

inside google x. you will hear much more about it tonight. eric schmidt said one of the value propositions of working at google, those executives want to change the world. how deep does the support for google x go? did license the medical contact lenses to a device company. in terms of how deep the support goes, they are deeply committed to this. this kind of crazy innovation is in the founders' dna. it is a drop in the bucket, the money they are spending on it. a company that makes self driving cars could become as i ebola's google itself. he believes that is the potential. -- valuable as google itself. he believes that is the potential. >> imai may have hot dates on the schedule. tell me what's happening?

wei would be very flattered have lots of great guests coming up. we want to talk to the biggest influencers and media, technology, entertainment. we will be speaking with aaron sorkin. we will be speaking with the ceo of blackberry. we will be speaking with david karp. so many fascinating people coming up. the guy who discovered justin bieber. i'm really excited about it. we thought thursday must-see tv was started with "friends." the new version of it is emily chang and "studio one point zero." it is approaching 56 best of the hour. bloomberg is taking you on the markets. pun intended. let's go for a ride. tesla willaid

introduce a new product next week. i'm guessing not a diesel engine. he said the company will unveil a new product along with something else. as to say. elon musk the market loves this guy so causesat something else tesla stocks to surge. what else is happening? oil prices are falling. brent crude is down 20%. from its peak back in june. a lot of this has to do with supply. there is simply too much of it eerie and especially the u.s. input rising to the highest more than 40 years. so much supply and not enough demand turn the market red. i will be handing off to matt miller. i am headed to the district of columbia. matt will be taking over when we return. he will be targeting the 1%, where advertisers go when they

are selling to the ultra rich. ♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> paying the price. luxury retailers are getting hurt by the pro-democracy protests. this is real risk management. dealing with the threat of ebola. magazines for ultra millionaires. how the publishing businesse targets families making millions of dollars per year. welcome to "market makers." i matt miller sitting in for

erik schatzker and stephanie ruhle. president mario draghi says the ecb will buy bonds and asset-backed securities for the next two years. they have already cut interest rates to record lows. maker of angry birds can't seem to find a follow-up for its game. they plan to cut 130 jobs. it admits it is not growing as fast as hoped. angry birds was one of the first success stories in mobile gaming. maker has, the game fallen behind candy crush and clash of clans. oslo has told the international no thanks.mittee, it is the latest candidate to pull out of bidding for the 2022 winter games. -- government says there is not enough public support to spend the $5 billion.

the ioc calls it a missed opportunity. areprotesters in hong kong calling for the resignation of the city's chief executive. they are surrounding the government headquarters. leaders of the movement said they are open to talks with the government. that have retailers flooded hong kong in recent years are hurting. this could really not becoming at a worse time considering the golden week. is occurringk right now. it is a seven-day holiday commemorating the founding of the people's republic of china. 480 million chinese are expected to travel. hong kong is a major travel destination. that is a problem. currently, the protests essentially collide with where the luxury shopping is. have you been to hong kong? >> i have not sadly been to hong kong. >> let me explain the retail

scene. there is nothing like it. the number of ultra high-end retailers are littered throughout prominent areas in hong kong. oftentimes, the luxury houses have several stores just a stones throw away. it is a very tightknit area. luxury houses in hong kong often ine lines of people to pay cold hard cash. it is very interesting to see what is happening. hermes is it example of a store that they just had to shut down because they could not get people into their stores. >> i have never been there, but i have seen when i go to the montclair store which makes the high-end, shiny ski jackets that asian buyers will line up around the block. here in the states, you cannot imagine people lining up to go

into a luxury store. the protests are in their sixth the day. they are demanding that the chief executive step down. the chances of him actually doing that are slim. >> slim. it is going to take a huge hit to retail sales. they have suffered since february. i spoke to an analyst. that may lead visitors contribute one third of hong kong's retail sales. october sales contribute 8%. golden week alone is going to contribute 3-5% of annual sales alone. this could have disastrous effects for the overall annual sales. >> because it is going to continue. nothe chief executive does step down, they will continue to protest and step it up and make it more difficult to read >> i just got off the phone with a protester earlier who said, expect the protesters to stake -- take a step back next week.

protesters need to have a valid their higherrom education institution. this is going to have an impact. you will see people getting off the streets. bart will be out for the protest this week. that sounds like fun. not fun for luxury retailers. we had a great story about mainland chinese visiting hong kong. i found it so fascinating. >> let me also remind our viewers because the chinese government has controlled the narrative within the government and they often have no idea what is going on. >> right. decreaseave not seen a in the number of visitors. the visitors are coming to hong kong expecting to shop and spend big, but when they get there, the demonstrations are in key areas.

>> thank you very much. continue to cover that, i'm sure you will. fox is postponing its ipo. provider saysage it will wait until next year because a volatile market conditions. have been looking into the state of the market in the post alibaba world. you spoke to one of the top ipo bankers in the country. what did he tell you? >> i spoke with the person who just got appointed to cohead the equity markets accredits wiese. he talked about the tendencies be like thes to investors that are involved in venture type investors.

we talked about what happened when these types of companies look to go public in a market like we are seeing now where we are seeing selloff. here is what he had to say. >> it is a really interesting dilemma for companies that have an ipo in their plans. it is difficult psychologically to do a down round. a lot of these private company valuations we have seen lately all right levels where i can honestly look at the ceos in the eye and say would be difficult for us to deliver an ipo valuation that a similar to the private valuations they have gotten. which begs the question, does that take the ipo off the table? it pushes the ipo out a little bit further so that the company can grow into more of a public valuation. it is a dilemma. i have not seen this in my career in a long time, where you have private valuations in excess of private money being than potentially the

public markets. >> when was the last time you saw it? the 1990's.k in 99, 2 thousand, there was a lot of money chasing things. at the bond markets were wide open. in 1999, 2000, we are seeing only 40 to 50 technology ipos happening per year. it has slowed dramatically. part of that is because these companies are able to raise money privately, so they don't need to tap the public markets. a lot of them are being more patient to this -- to the size of the ipos. quality has been tremendous. >> some examples we have seen of this. box just recently raised another its $2.4 billion valuation so they can stay private longer. , airbnbover -- uber raising money in this fashion. all of the big companies everyone is talking about.

the disruptive companies are able to put off their ipo into a better climate where they could get the valuation that they want. >> it kind of started with facebook that kept pushing it back, saying we would prefer to be private for now. >> alibaba, too. they want to do be a private company for as long as they could. then they had to go public, not for the capital, but because they had this agreement with yahoo! coursese companies, of it is great to be public. -- it is great to be private. benefits tortain being public, you just have to make sure the timing is right. the later stage benefits of for them that timing. it is a matter of when the timing is right to go public. >> alibaba had a huge pop on its first day. facebook did not. a big pop? or does that mean you left too much money on the table? is it good for sentiment surrounding her stock?

what is the idea? what would a company want? what would an investment banker want? day one popook would be about 10% to 20%. you don't really want to decline. that affects sentiment off the get-go. it takes a while to recover that. that said, you have to think about why the company is going public. not necessarily raising money because they needed the cash. it is because they are selling shareholders and exit opportunity. >> 38%. that is a lot of money. >> it is a lot of money. >> thank you very much, leslie picker. coming up, this human tragedy has an economic side. global companies will try to deal with ebola.

we will talk to somebody who advises them on managing risk. you will not see these cars in the mall parking lot. they are concept cars at the paris auto show. we are going to take you there to talk to my buddy hans neck goals. -- hans nichols. ♪

in dallasan 80 people are being monitored for symptoms of ebola. people who may have come into contact with the man who contracted the disease while in west africa or who came in contact with people the patient met. so far, none are showing signs of the disease. so far. it is having a big impact in dallas and companies spanning all sorts of industries. toh us from washington explain is the former head of customs and border protection. he is a principal at the church chertua group.

>> i was surprised to hear that a flight from liberia could go straight into europe. is it to be expected that soon we will not have any air travel coming out of those areas which are facing this problem more seriously and may have a lot more people who are contaminated? >> i think that is a good question. i think one of the things we have to do is continue to assess the risk if it warrants that type of action. one of the immediate responses oftentimes that international companies want to have is just cease all traffic in and out of that area. that may not be the right response. impact on economic stability and other business implications. the real prudent way to do is continue to focus on the risk to identify who

may be the risk individuals getting on the planes. i was speaking with one of our reporters this morning and she has been doing a lot of research and found that airlines don't have a set procedure to disinfect planes that ebola victims may have been on. have a way or procedure that they are advising the airlines to take. what should an airline do if it has had any bola -- an ebola victim on its flight? >> that is one of the things that would take an expert. they need to identify if there was an individual at risk putting on board that aircraft. the u.s. carriers do have protocols for identifying those things. in the years past when we don't

with other types of viruses that came on aircraft, they had protocols in place to go ahead and sanitize and clean those aircraft. i'm quite confident that many of the u.s. carriers. >> what do you think about customs and border patrol? are they going to have lists of passengers that may have been on connecting flights that originated in liberia? are we going to see those in the west african areas singled out and screen specifically? >> no doubt. one of the things that has certainly advanced in the post-9/11 timeframe is getting better information on individuals traveling to the united states. ofre has been a series legislations and regulatory changes that have enabled the department of homeland security and customs and border protection to get advance information before an aircraft departs to the united states. being able to target individuals that originated in the three

high risk countries in west africa and other locations as well, they can determine the s origin. it is not to necessarily exclude them from the united states, but to do a couple of things. they have a protocol in place now in support of the cdc activities. it is making sure that people that originated in that area are given a fact sheet to make sure that they are aware. while we might think that everybody is aware of the circumstances out there, not everybody is that dialed in. making sure they are aware of the symptoms and the severity and aware of what might be next apps that they should take. that is all provided to you and you arrive here. i know we did that during sars and h1n1 and other viruses we saw over the years. if they are showing signs that they may be potentially infected, a front-line officer customs or border protection are medical officials but

enforce many regulations and laws. have officials at some of the key arriving airports to be able to handle passengers that may be identified. >> what do you advised to companies? president obama called on companies and businesses and countries to make sure they are ready. it is more obvious in the case of a hospital. texas health presbytery and had just the week before this patient came in gone through step-by-step what they would do if any bola patient -- an ebola patient presented ebola. what industries should be most on alert? first off, the industries that should be most on alert are those that have a lot of business travelers that go in and out of the high risk region. that is step one. step two is making a determination about whether or the central travel.

is it he central for people to conduct business of a company to go into those areas? is it more prudent to delay that travel until we get a better set of circumstances that presents itself on the ground or better measures to this fire is? those are some of the things we need to take a look at. then developing plans when people become symptomatically in the country and get them out safely. >> thank you so much. up, the place were you can see the cars of tomorrow today. we will take you to the most important auto show in europe, the paris auto show. with our own reporter hans nichols. stay with us on bloomberg television. ♪

>> it is the biggest auto show in europe.

carmakers are unveiling 30 models and concept cars at the paris auto show. here to bring us all the action is on singles from the floor of the showroom -- hans nichols from the floor of the showroom. we spoke with mark fields. we spoke with half a dozen ceos. they are saying a lot of the same things. everyone needs market share. the overall size of the pie in europe is growing too slowly. concern, ising there going to be another slowdown as the result of ukraine impacting russia? --ryone thinks that's lail's that sales are going to be much further down in russia. >> the russian market is down 20% this year. frankly, we don't see it recovering next year. it will stay down for a while, until the environment around russia gets more stable. we are increasing market share.

, wequestion of market share are increasing market share. the ruble is weakening. it gives an advantage to all those who are localized in russia and we are the most localized in russia. in a certain way, this crisis helps our market position. that is one counterintuitive take on russia. the other is my favorite, ceo.-royce' they claim sales jumped because russians worried about sanctions and the value of the ruble were buying rolls-royce for half a million u.s. dollars. it was a safe asset to park your rubles in, excuse the pun. >> that pun is inexcusable. people who wanted to smuggle money out of the country would buy very expensive items like a watch or a painting and try to bring it out. i guess a rolls-royce would be even less problematic as you are

just driving it. >> the thing about rolls-royce as you can get some vintage bottles of champagne, some great stuff from 1984, 1985, put it in going on aclaim your picnic, and then resale. we are just hypothetically offering that is a connection. >> i know you saw a lamborghini that was silent. that is him was contrary to why you would buy a lamborghini. what are the coolest things you are seeing? i think the lamborghini concept car was pretty interesting. it had the roar of a lamborghini. then they did something silent. they pushed the silent button. it is part of the entire industry going electric. they really do need to figure it out. regulations. how much you can name it. if you will have a lever to me

that has to meet the criteria, you are going to have to have something that switches the sounded little bit slower. i have totaled audio engine will come back . ♪

>> we have got some breaking news right now on softbank taking a hundred $50 million stake. sun buying his way into the movie business. the telecom giant announcing it will take a stake in the company that made such movies as the hangover and even -- the first one but also the second and the third. and some batman pictures. about why theo me sun would make his kind of move. so manydy invested in kinds of businesses, guess hollywood is the obvious choice.

he waseported last week in talks to potentially by dreamworks animation. this is yet another hollywood movie studio come in acquisition of the whole thing. legendary pictures is closely held, $250 million, i've heard it value that. 10%, something like that. toward small step putting together a distribution and that is the plan, particularly internationally. the idea is that softbank sees value in india and china and they could build out their own wireless this -- wireless outlets around the world. they own 80% of sprint in the united states. he owns a large wireless carrier, the third-largest in japan. outants to keep buying wireless assets throughout the country and then put together some sort of content and distribution bundle for a variety of customers. >> my first thought was about

wants to buy also ways to make and distribute content. there are always comparisons between alibaba and amazon, although i know those are not really the best comparison. his son is a big investor in alibaba as well. >> that is right. we will see exactly how the partnership manifest itself over time. he is not buying control of the company, but legendary pages is one of the number of movies view is that likely needs to go holiday overtime. they just do not have that kind of scale. even thoughle that this is an investment of the company, this is the first step to a larger trend of movie consolidation or maybe softbank an investment in dreamworks animation and put movie studios together over time to build up something of a bigger scale. >> right. if i bought a bagel and a cup of

coffee. >> absolutely. >> dreamers would be a bigger purchase. >> it would. even that really is a drop in the bucket compared to some of the other assets he looked at. >> all the money he has very >> right. one of the wealthiest men in the world. time warner? >> he would, theoretically, among other potential content companies. and other wireless assets. we will see what the long-term strategy is. one at soft bank only they were at second base on like 20 different m&a transactions or investment around the world. to see softbank in the newsmaking investments over the next year or two. first base is kissing and second base is under the shirt? it is a little odd to talk about this kind of thing so early in the morning.

i will wrap you right there. thank you for joining us. back to school, business students will be the backdrop when president obama tells voters how the economy is doing. day with us here on a saucy version of "market makers." ♪

>> president obama wants to steer the conversation back to the improving economy. this afternoon, we will speak to business students at the kellogg school of management. peter cook has more on the president's message and the tough sell he faces. tought this will be a sell for the president. most of the focus right now is on foreign issues, the ebola virus or the goal that part of the white house is to shift 30ention back to the economy days before the midterm election. democrats want their president out there talking about the economy. the white house wants today's speech to resonate in the same didthe u.n. four and beach with policy. he will still talk about raising the minimum wage but will also make the case that even though many americans do not realize economy, and point the

president made today. put my put my record against that of any leader in the world in terms of taking ourselves out almostf a terrible and unprecedented crisis. ronald reagan asked if you are better off than you were four years ago and in this case, in six, and the answer is, the country is definitely better off than we were when i came into office. >> the problem for the president is that it does not really matter to a lot of americans if the u.s. is doing better than what matters is how they were doing personally. the challenge facing the president is convincing isricans that the economy doing better than many americans think and giving him credit for it as well. the obama rules

and regulations have been good for business or will businesses say they have been doing well despite the new regulations touring this administration? -interesting question. we have heard a lot of folks in the corporate community complain the administration has stood in the way and made life more difficult for them. corporate america is incredibly healthy right now and this life is to take credit for that is a wanted to aaron almost messina profits jump on the president's lodge. they have also got the earnings ratio, the lowest level in 24 cash on3.6 trillion in their bounce sheet. incredibly healthy right now. how much of that is due to the president versus the fred and his wrecking -- the fed and record low interest rates? he could certainly make his claim that his time in office is good. folks a decent amount of

to push back. >> thank you for the president -- for that on the president's miss it or'sdo not interview here. jason furman and of course, you can watch the president's beach as well. i believe his record is usually about 25 minutes late. that will be streaming on bloomberg tv plus on your tablet . you can watch us on any device because it is 2014. coming up, the magazine focuses on one of the area's largest towns. connecticut. stay with us. ♪

>> stocks falling more. this is a today, the dow down more than 2%. falling 100 points again today. s&p also in the last two days. s&p, by the way, headed for its first cluster day decline of the entire year. as depressing as it sounds, we are almost at the end of this year. the european market close looks even bloodier than the trade at the close, remember these stocks are closed now, down 2%. the 40 closing down 2.8%. investors were not impressed with what they heard from mario draghi.

buying asset-backed securities and a number of other assets, but maybe not enough here they do not think that will be enough to revive the economy. now the economy is doing fine in certain parts of the country, including connecticut. forget mass media, when the average household income is close to $1 million. you have got to tailor your magazine for the market for a select crowd. our next guest knows a lot about how to do that area the editor-in-chief of the magazine. p lepkowski is the chief officer for its parent company. great to have the two of you on when your readers are losing a lot of money. i do not want to bomb anybody out. they have enough left over. it is really interesting of a magazine. congratulations. i wonder how you cope in today's

digital world. you rely more on the print edition and you care more about the print edition. why? >> when you look at our readers and what we are doing our readers, we are providing them luxury information and providing them what is going on in fashion and food and travel and all of that. notmagazine is also about just their lifestyle, but their life. players,s the power the chairman of bloomberg was on our power cover years back. the big heavy hitters, we talk about bullying, we talked about kids and of the law and domestic violence. tot we do is really catering both of those markets and it is about the community, which is what separates us. people want to know about what is going on for their lifestyle, but also in their life. it is catering to those two parts of

the market that what makes what so important. >> here in new york, if you go to the clubs, social clubs around town, you will see requests on the coffee table. >> those are comparisons people might make the most. issuell are going after visas. we are luxury and we're that aspect, but we are also delving of thech i think some other magazines do not necessarily do as much. >> can they do hard-hitting eases and real journalism? certainly, you do not want a banker to pick up the magazine and read a negative story about himself, but sometimes the truth hurts. some gravitashave in what we do. it is important we stay on some of the hard issues that affect the town. if we are not doing that, we are

not providing a service and ultimately emily have you stay with them. regardless of the news is bad, we have to stay with that. >> do you run into problems when a story that does not paint someone in the best light? that's probably the best example is a story we just did. it was a big risk we took. it was an all-black cover and it said bully to death. about a young man who killed himself at a high school. where was the school? where were the teachers? why was is allowed to happen? a magazine that is typically celebratory about the town. we want to celebrate it here it was touch and go and we had conversations, but we went with it and it was one of our highest selling covers of the year. i think that says a lot. there were people who were shocked we took that school system on. it is a perfect example.

>> the parents have some responsibility with what is going on with their children and their reading the magazine as well. to havehter note, readers whose average income is $1 million must make advertising tells a breeze. >> i wish it were a demographic i had is him of my previous jobs. the fact that we have a market with a very strong consumer buy-in pattern serves us. many markets are looking for that demographic. one of the things we are starting to see is we are tracking national advertising from luxury goods space and that is helping us grow our business significantly. >> thank you for joining us. we have breaking news to cover right now on hong kong. protesters and the government. >> this is the latest concerns.

those protesters and the government. the city's chief executive. is making a statement to the press. he hopes the protesters can stay reasonable and constrained and emphasizes the government needs to do what is best for them and that they will adhere to basic law. that is the common law practice within hong kong. he said the government and police are showing a high degree of tolerance and he also mentions chief executive number two, will contact student leaders to talk about constitutional development. these lines pretty much reinforce the government will continue to take the stand they're doing, which is they want protesters to return to school or get off the streets, and they want order to be restored within hong kong, really no different from earlier lines we heard him. latestcan see, the statement coming as he addresses the increasing presence of protesters in front of the

government house. >> thank you. you will continue to cover that story for us. we will continue to cover all of the big stories for you throughout the day. a quick rate here. " will be right back. ♪

>> that is it for us today. tomorrow it seems like a cold

war in the u.s. and russia. we will talk tomorrow with a chess champion. plus, we will talk to a.c.l. about what life is like at the magazine company without time warmer -- time warner. in interview with bill gates. ., we are very excited. >> i certainly am excited. i will be talking to bill gates about a topic, banking the unbanked.-- they are in a better position to survive adverse health .onditions or climate change they damage crops and render the family home was without money and allow them to's back into poverty.

it is anit is an issue he wantse up with bankers and people in the payments business at the financial service convention i am attending there i will talk to him about it this afternoon in a live interview with bill gates. >> that is definitely one we do not want to miss. he is concerned about financial inclusion and tom keene is a was talking about financial repression. in 10 minutes, he was equal christine lagarde, less than 10 minutes tear definitely stay keene for a tom backt for one day cut -- in the midday slot talking to christine lagarde. bloomberg television is on the markets. scarlet fu has more. >> thank you. talks are -- stocks are dissenting their client. 10% comes after it is down of its peak. for today's decline, dragged lower by the europeans that's. not impressed by mario draghi's efforts to revive the struggling

economy. joining me today is the chief operating officer, mark. one thing folks keep pointing ,ut is increased volatility across asset classes, bonds and currencies. question is absolutely correct. it is spiking. really, if you look at any of the volatility indexes, they have all been rallying. one thing that is interesting is the studio volatility index. here we are come the last two days, we have given way over 40 points. $1.30.p about normally in a market like that, but expected to pick up up to four points, depending on where it is coming from. it looks like traders are selling insurance into the selloff. the cost ofges

insurance 30 looks like traders are selling inputs into the selloff. , so therein the day are not a lot of people jumping to buy it either. what i'm seeing is a potential bottom for a -- forming in the s&p 500. >> interesting. we will look for that, potentially, in the coming days. one stock we are keeping a close eye on his twitter. j.p. morgan upgraded the stock to neutral -- to overweight from neutral, saying twitter is making strides in mobile advertising. what kinds of activity do you see twitter? >> yes. we have been seeing upside call action most of the day. there are a lot of people looking at the j.p. morgan rate. they have earnings at the end of the month. we have seen buyers in october and the october 24 ahead of earnings. it looks like an interesting play relatively close to the into, looking for a run earnings. i do not think that is a

terrible play at all. >> gotcha. very quickly, a trade on go pro. sum it up for us in 30 seconds. >> the short squeeze looks like it has come to the end. the last 30 points has been entirely related to the ability to borrow shares. there was a release of some of the lockups today. lockout, thethe stocks went back up to 40. i would almost be interested in not soquotes if it was expensive. i like selling the october 94 and 97 spread at $.90. >> thank you so much. ♪

>> welcome to "money clip." i am adam johnson. christine lagarde's challenge, a slowing global economy. we will get her perspective on the money clip special coming in from washington. health officials tracked dozens of people who have come into nation's firste case of the deadly virus. and then, a lot happening at europe's biggest auto show.