people to give to organizations that fight disease or poverty but you want to create jobs, is that right? >> no, i think both things are very important. it's important to create and develop human capital. it is health and education but education is the main issue. when you have education and finish poverty with employment. it's the last solution. the problems of today are both. education and employment. educationnly academic but education for work. they can learn about different areas were work is available. . >> that's a big-ish oh in mexico? >> worldwide.

europe had the problems of unemployment that should be solved. the only way to solve poverty with dignity is with employment and good employment like anthony is saying. timeshave met a couple of and i met you once of the clinton global initiative and i know you are very close to the clintons. you talked about how you have your own distinct way of giving but you have not signed on to warrant officer bill gates and they're giving pledge. they have a different philosophy. a project, wee put only money that is necessary. we don't make budgets. how can we solve the problem and have national impact unless we -- get highly involved and help. we make research in genetics but ino we work in the field rural areas and looking how to

bring health to these places. >> but you have not signed on -- have you worked with warren buffett or bill gates? why 50?'t understand billion dollars. do that will only solve some problems. you need to try to make it happen. businessmen have the resources and experience to get bold personalities into the solution of the problem. it's not a matter of giving. and a matter of acting being bold and the solution. >> what is it like to have carlos slim and your initiative? >> it's been great. so many people in the world tend to follow the leader. >> and who else but the leader here? >> he is one of the great leaders.

he keeps saying i like to change jobs. it's been great for us and great for the movement. we've got to talk business. you have been the leader in the telecom market in mexico. the mexican president -- >> we are in 28 countries. we are in most of latin america and in the u.s., we have a presence and now we are getting involved in europe. >> we were talking earlier about splitting up companies in the u.s. like h t and ebay. ande is reform in mexico you're anticipating splitting up america movil which has helped your stock price. it's actually been a benefit with shareholders applauded this breakup. >> it's the professional value.

until now, it's the recuperation of the value that has been lost in the past. do you support the reforms that have been taking place? 1.5 years ago, the institution changed. you need clear rules and business. was put in place is that the market share will be 50%. that's ok. you need rules in business and a state of law. regulations that it is a mandate of law to do that. >> and complying with the rules, i know america movil has been in talks with buying up assets on these ghost of mexico. have you been negotiating with at&t? >> it's not the east coast. is something more bigger.

because from the west coast and the border -- >> it's a bigger package of assets? >> it's a package we think is the right to bid on. we are always working with the potential buyers to have an agreement. andbank is doing the job the bank is working on that, to have information available to make the corporations interested and get involved. >> are you closest to the deal with at&t? >> at sol i can tell you. -- that's all i can tell you. >> i know you met mark zuckerberg in mexico recently? >> i was happy with his presence. conference we have a with 10 rows and scholarships. -- with 10,000 scholarships. he was very nice and we were

very happy he was there in mexico. >> what did the two of you talk about specifically? >> quite a few things. many -- how you say common like giving internet access to everyone. that's what we are working on. broadband access to all is one of the points. location is another issue which is important for this new society of knowledge and technology. >> he said he grew up admiring bill gates but i think he will use carlos slim as his role model. >> he is an outstanding person. his wife is also very special. they would be great for

facebook and other companies to sign up to your program. >> that would be great. we are trying to get in there. much, anthonyo shriver and thank you, carlos slim for joining me as well. because "market makers" is coming to you after this quick break. ♪

>> live from bloomberg world headquarters in new york, this is "market makers." --merger on the rocks glencore is no longer considering a deal for rio tinto that would have created the world's biggest mining company. headwinds, the imf cuts the global forecast for economic growth and we will speak with their chief economist today. >> it's hardly a blue-chip property, developers fighting over who will get to buy the

atlantic city's bankruptcy rebel casino. >> good morning, >> i am matt miller in for stephanie today. >> thank you for joining me. let's begin with breaking news -- what could have been the biggest deal ever in the mining industry is dead. is nogo, glencore said it longer pursuing an acquisition of rio tinto. we broke the news yesterday. olivia sterns has more. are nocore says they longer in talks with rio tinto but they do reserve the right to make an offer in the future. there areall, somewhat convoluted takeover laws in the u.k. which means they have to wait six months before they come forward with another offer. we learned that the offer from glencore ceo was made verbally. it was all stock offer to the rio tinto chairman because glencore itself is highly leveraged. it was made in july. it was an informal and was

carried no significant premium. solooks like that's the ceo that iron ore is a trophy asset chemists a space that would make strategic sense for glencore to buy but the price of iron ore has plummeted 40% this year. the ceo thought he could perhaps pick up rio tinto on the cheap and do a prefer the deal got public and that would create the world's largest mining company. now that the talks have gone public, it would likely have to be a hostile bid. they would have to wait another six months before tabling another offer. glencore is confirming they are no longer in talks this morning with rio tinto. they reserve. >>. -- thank you. it's not everyday day a 100 is in the worth of this underscores the distress in the global mining industry. you can look at metal prices but

also the potential for other deals. to take shape the ceo of royal is with us. did it surprise you at all to see glencore take an interest in rio tinto? now to see them backing also aggressively -- there are very few tier one assets available out there. rio tinto's iron ore business would look hood in the glencore portfolio. the big advantage glencore has versus other mining giants that it has a great marketing and trading arm. rio tinto smaller businesses in diamond and industrial minerals were the dominant certain marketing andore trading arms of love to have access to those positions in a number of accents and generate

value. >> rio tinto says it reserves the right to make a offer in the future. will glencore still be interested going forward? >> i think so. by the time you launch an acquisition of this size, there is a number of strategic rationales why you would want to do that. though strategy to not drop away in a few months. every deal has a good price and about price. they will wait to see how the market evolves. it's good to see the smart money like glencore coming into what we feel is the bottom of the market. >> if glencore is the smart money, it makes me wonder who is the dumb money? in 2006, look back there were a number of deals done that destroyed billions of dollars of shareholder value at the top of the market. there were 2011, lots of deals getting done at the top of the market. the time in the cycle to make

money is near the bottom weather is only a few people. that time is now. done byof those deals bac have not worked all that well. risky, who's to say that a glencore acquisition , why would that be successful and would not destroyed billions of dollars in shareholder value? fundamentally, it's a commodity cycle. when you look at the relative position of a commodity into its costs serve and you believe the downside risk of commodities is limited. for iron ore now, we are trading well into the cost curves and now a be a good time to looking at picking up iron ore assets of the right price. i think the glencore advantage

is in terms of the trading and marketing of various minerals, they're excellent at its. in iron ore, there is lots of opportunity there. the rio tinto alumina business which was one of those deals that was done at the top of the market, when you look at that business, you can sell and trade bauxite and alumina him -- and aluminum. for glencore getting access to those downstream markets, that would be something -- they have done the work to find out how much value they can on lock. >> why would rio tinto not be happy to be snapped up? we saw their share price down 10% over the last year. not maybeook is fantastic. commodities across the board may be heading down so while not --

will so why not get out while the getting is good? >> glencore is good buying cheap. at that part of the market you may not want to do a merger. if there is a decent premium, maybe you do it on a decent premium but not something on all paper. . iron ore is not the only commodity to have suffered in the post crisis economy. nickel, copper, it is affecting the entire a's metals complex. how to these opportunities look from your perspective? onael medical only focused operations and development of its own properties or are there consolidation opportunities available to? >> there is always consolidation opportunities. have, we are we always looking for opportunities in the space.

we picked up two great expiration opportunities. i think the exciting thing for us with this merger activity is we've got one of the few nickel dominated projects globally that could be shelve already -- shovel ready next year. a is a tier one asset in great jurisdiction the majors are looking to buy. l, one of thenedea private equity firms snapped up a mine in africa. commodities have been out of favor generally. encourageing is to the dual supply demand of each metal and nickel has now gone from worst to first and is a topic for many commodities. one carr named it as of their topics. -- glencore named as one of their top picks. >> now that their interest has

been flushed out, what other deals do you think are under consideration by other players in the industry? now that everybody has seen the cards, they are forced to change the game. >> very much so. most of the majors in mid-tiers have all been on cost-cutting and now the glencore has said it's time to grow, i think all the business development teams in the majors and the mid-tiers will dust off their targets and looking for those good growth opportunities and those good projects. because it has been such a tough market for the last four or five years, there are very few projects that have the ability to have permits in place and ready to start construction. therehey decide to grow, is slim pickings. >> thank you very much.

>> we may see consolidation in the mining industry. the trend elsewhere is to break things up. one candidate for a split is yum! brands which reports earnings after the bell today. why might they split it up? ithas economies of ale and corners the market in pizza and chicken. it >> this company comes up often. >> this question comes up often on their conference call. yum! brands is already a defective chinese company getting 55% of its sales from china. >> it's all kfc in china? brands has some pretty frustrated shareholders. over the last few years, the stock is gone nowhere.

chinese store sales tumbled because of contamination issues. there is a trend to break up companies these days. hp, ebay and ibm. >> dallas 2005 and you are in high school that was a long time ago. >> there might be other parts of ibm that they are looking to sell. the idea is more focused operations and businesses in that plays into the yum! brands a situation. out a notenstein put that goes to the benefits of splitting up yum! brands. they want a listing in hong kong to make it more of a traditional chinese companies and broaden the investor base. encouragee want to more risk year faster growing chinese business.

>> it's not often you see companies under pressure to break up geographically. they use the desk they usually break up operationally. this is different. >> i actually talked with a couple of investors about whether this makes sense. says that it does not make sense to him right away. the arguments are there but he does not see it as applicable to yum! brands. it trades at 19 times earnings but it does not mean you can break it up you'll get a whole lot of value unlocked. having said that, new ceo is coming on it yum! brands, greg creed. he will take over for david novak who is retiring in january. david novak was instrumental in building up yum! brands and china so we are not clear which

direction they will take. >> very interesting to see the possibility of a regional rake up. breakup.egional kfc andof taco bell and pizza hut as alternatives to the big burger fast food business. >> pizza hut and kfc are pretty primary options in china. >> for you, maybe. alone's leave restaurants a moment and talk about retail. there is an optimistic forecast on spending from the national retail federation. julie hyman has that story. the national retail federation is talking about what may happen over the holiday season. and decemberber specifically, they are looking for an advance of 14.1% in purchases for the holidays across the retail spectrum which would be higher than the 3.1% increase last year and the ten-year average is 2.9%. we are looking at a better than

last year or last several years increase. online sales could make up a good shock of that, $105 billion to $670 billion that was forecast. online sales would be an increase of 11%. that's not a surprise. we have seen fedex and ups really talk about ramping up in hiring for the holiday season in anticipation of that crunch. there is a big crunch last year that they were not necessarily prepared for. that's something to keep in mind. when you talk about thenrf, being the retail federation, i wanted to look at their track record in terms of how they forecast in the past. it has not been necessarily that accurate. sometimes they overestimate and sometimes they underestimate. the last couple of years, it has been too optimistic when it comes to holiday sales. in the three criteria to that,

they were too pessimistic. it's not clear whether we will see a number like what they're looking for. there are various wildcards during the holiday season, in particular the weather which data negative effect last year on holiday sales. we are seeing some of the jobs look up in the wage numbers are not the surly following. the big theme again this holiday season is going to be mark downs. people will be looking for bargains. tracks obvious body record in stills confidence in their forecasting. it's not like they are a mouthpiece for the industry. they get it wrong on the downside sometimes. >> yes perhaps, but in the post-crisis here, it might be in the industry's interests to lowball. concerned and you did not want retailers overstocking and you did not want them to end up with a lot

of inventory at christmas time that they could not sell. now, i could make the case that the industry and its mouthpiece, as you put the wants to stoke demand and get people excited for the flock -- holiday season. >> it could be a mouthpiece for the industry. ok, the imf cuts the global forecast that it put out and it is warning about frothy levels in markets. we will ask the chief economist of the imf which markets those are. >> plus, a tough act to follow, money managers who are replacing the bond king bill gross at pimco. the former managing director at him coldly along to talk about what talent is left. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> welcome to "market makers." i am matt miller, in for stephanie ruhle. talk about bill gross. it was just 11 days ago that he left for janus capital group he was known as the bond king, he personified the system at pimco. now his successors are left to pick up the pieces and forge a new future.

here to provide insight into the bill powers, the managing director at pimco for 19 years before leaving in 2010. good to see you. start with this. what you hearing from your friends at pimco? >> pimco has had battle station alert. everyone is had had to pick up the pieces of bill's departure. >> what does that will station alert at a place like emco amount to? imagine harder to anyone working harder than arriving at the office at 4:30 a.m. and leaving at 10:00 at night. a lot of consultants and clients

who might have a knee-jerk reaction to take assets away from him go, this is their time to convince them that the process, the structure is in place, then it works. that it will outlive bill gross. he thought he was the best manager he ever worked for. goals, he said direction, and if you met those goals you were rewarded handsomely and if not he wanted to talk about it. not a commonthat perception of him at pimco? >> there are a lot of people of various views. every thing you mentioned is true. i'm not discounting that. there were other externalities that would cause some people to think that maybe they should consider new pastures. i am certainly want of those. -- one of those.

do you think may be an easier atmosphere to thrive in with bill gross now gone? is anm not sure it easier atmosphere brady have a --up of managers at pimco atmosphere. you have a group of managers at , everyone of these people grew up in this culture and has been in this culture for the years., 20, and 30 on the business side with the two sides of business and portfolio management work hand-in-hand. the organization's rigid balance, and these are people that have been following and leaving the structure and process for use. >> how does pimco change the way

people perceive the firm? four years bill gross overshadowed everybody. the universe, the solar system revolved around him, as he personified the star system. now that he is gone, what do they replace him with? they do not have any indication that bill iversen will be the next star. >> i think if one looks at their website, you can see that there thought a great deal of the sissies that have, by the great leaders. as anre using this opportunity to get in front of investors and consultants who

might be fatal if a decision of do i hold pimco or do i -- faced with a decision of do i hold pimco or do i look with the? iquidate? this happened when i was at stolen from brothers as well -- at his salomon brothers as well. it is an opportunity for those who are next in line to step up. without bill stepping out, you will not get to see -- atrophy?lent will afte >> they will step up and take opportunity for pimco. >> $26 billion has left since his departure. you can decide for yourself what that means about investors faith in bill.

how much of that will go to janus? he wants to control a much smaller amount of money. teamu look at a 30 person that left tcw, and you can use that as a benchmark for where janus capital might head. but i do not see a 30 person team that works together as they did in tcw. he has a bit of building to do to greet the infrastructure -- to create the infrastructure to manage and to attract the asset s. >> have you given any thought to going back? e. absolutely nonp the people who are in the key in many pimco today,

cases i hired, trained, managed, and i have complete confidence that they are doing the right thing and so am i. >> thank you so much. he spent 19 years working with bill gross, and also bill thompson, and so many other people no longer there. cuts its, the imf global forecast and warns of frothy profits. ♪

>> the imf says the global economy is being hit hard by geopolitical tensions. has cut its outlook for growth. it expects the global economy to from the 3.8% down b 4% of expected in july. imfs not all gloom, the raised its global forecast for the united states.

blanchard is with us this morning. the world economic outlook just distributed by the monetary phone raises two main concerns. on the one hand geopolitics, the fitness equities financial markets -- second is financial markets. why do you consider them such a risk right now? >> your overplaying it. it is one of the risks, we do not see it as a major risk. it is the usual story. the low interest rates have led some people to take more risk to take more return. we do not see this as a major issue yet. certainly not something that should be leading interest rate to increase earlier in the united states. thate flag in a something may become worse, in which we will have to use these tools that we have prepared an order to try to keep things under control. but again, we do not see this as a major risk among just a risk. that ise option

reflected in equity prices and credit spreads make sense to you? >> it really depends on the market. i think that the stock market is doing rather well, but investment is doing less well than whee one thing. marketsy we do not find in a very obvious way. >> you have concerns about what is going on in brazil, russia, and europe in general. where do you see the biggest issues? where do things need to be fixed the most as far as those three areas? >> i want to correct you on your reading of the calculator. we do not see geopolitical risks as a major issue. we look at the effect of the ukraine conflict, we see obvious effects on ukraine, on

russia, on the ex soviet republics. but we do not see it yet affecting the rest of the world. one worry might be the germans numbers that just came out from manufacturing. but at this stage, it is speculative. so we do not see much effect. if you look at the middle east, you would have expected the oil prices to shoot up, and they have declined a whole lot. this is due to supply and demand factors, but it does not like it effectso geopolitical worrying people overmuch. it is not one of the major risks we see. >> so what is the source? what are the major risk you see? you cut your forecasts. has nothing to do with

geopolitics, it has to do with domestic factors, low investment which clearly comes from low confidence. cut theal we have forecast, but not by very much gran. 1% by 2014. revised up in sentiment down and others, it is up 2.1%. that is not saying things are great, but this is not a major revision. risk is see the major in the euro zone. our baseline is for some growth, but the risk that deflation, recession, we put it at the end of the next year. , how will the

magnitude and the speed of monetary tightening by the fed affect the prospects for euro zone economy? happen, andhat will it really does not depend on the speed but the strength of the u.s. economy is as the u.s. economy green's strengths in the dollar will probably gain strength relative to the euro. you have two zones, one which is not growing much, one which is growing strongly. i will not be surprised by the association and appreciation of the dollar. and will continue. good news for the euro zone, no question. >> should they be building infrastructure in the euro zone

economies? lead byhey be trying to investment, or is a conception by growth prescription? thehey should do it in all things they're doing, and maybe a bit more. they should have monetary policy they do. they should expand this program, they should finish the stress testing that will give a policy to the banks. about thehis notion eurozone. is low already. strong,the case is very there is a great need in many countries for more investment . investment can come without

crowding out other investment or other consumption. there is a case for more structured investments in europe. health organization and the centers for disease control have been very busy building worst-case scenarios for the out rake of ebola, and if those were to come true, what impact with that heavenly global economy? >> we have looked at the scenarios. human this stage it is a tragedy, but in microgram in a terms,- in macroeconomic it is a small portion of gdp. in terms of the world, it is not --ger issue in that sense major issue in that sense. they have looked at scenarios where this he comes worse, and

this affects more of at least west africa, and that will have an affect on growth in sub-saharan africa. >> have you gone so far as to model or quantify the impact? >> we have tried to quantify the impact of some scenarios on west africa, and sub-saharan africa, and indeed there are scenarios in which different situations stemmed from. >> thank you for being here. great to have you. up, who is willing to bet on a atlantic city? casinos havee gone belly up. ♪

>> a new beginning for atlantic cities bankrupt casino.

they will finalize a sale today. nows quite a bargain, brookfield has to find a way to make it work. me is the president of gaming. why do people continue to invest in the atlantic city can see nose as they go bankrupt year after year, decade after decade. it is almost as bad as the airline business. it certainly has been a challenging time. city, itok at atlantic has tremendous opportunity. another is the reason that companies invest in your listeners may not be aware -- your viewers, that atlantic city even in its contract state

receives 25 millions a year. that is a lot of revenue. if you look right now, there are 25 million visits to that city each year. billy and was $2.8d in revenue 2013 -- billion was earned in revenue in 2013. 25 million visits, billions of dollars in revenue, clearly an opportunity. there are two think that rolled from and whether or not you m ake money in that environment. one is capacity, and the others cost and they are both long-term problems for atlantic city. closure of aer

number of casinos already, and s ofnumber of fact negotiations that have failed. havertainly you need to total investment climate penciled up for the operator, where there is no question that atlantic city has at least for enjoying itsas monopoly status, able to endure the cost of doing business in the city. clearly there are cost involved that significantly do it with more -- when you do it with the northeast. a company with very deep pockets.

they have the ability because of their deep pockets and experience in the casino industry, owning the las vegas hard rock, that type of company has a possibility. >> the balance sheet is being wiped clean for the second time here. the brookfield, which is a very capable real going to dotor is any better with rebel than the previous owners did once the balance sheet had been wiped clean there? a good question. the prior owners did not come with a black book of concealed gamblers -- casino gamblers. there a couple important points to consider. they have a healthier balance sheet. they have a black oak, and so to

gamblers owning well owners. they were building a resort primarily, and that did not pan out as they had hoped. >> so they have a slew of wales that to boost revenue. thank you. >> coming up, a deadly disease has already effect and hundreds here in america -- infected and d hundreds here in america. we are not talking about ebola. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. breakup time for carlos slim. the world's second richest man will selloff chunks of his telecom empire. >> the other disease that have doctors seriously puzzled. >> and the spoof that created an entire industry. created the viral video. time now for the newsfeed,

the top business stories were all the world. the imf has cut its global economic were cast for 2015. the new forecast calls for 3.8% growth down from 4% flat. plus they warn of a market correction because we have seen financial markets reaching for frothyels -- brought th levels. earnings fell intense unless quarter. they are being squeezed by apple by high-end phones and chinese rivals with cheaper devices. walmart is cutting of care benefits or both of its workers in the u.s.. work less than 30 hours will not be offered health insurance, claiming higher cost. >> carlos slim talk with in the

loop inker betty liu about his new global campaign to hire workers with disabilities. the mexican billionaire also document giving into mexico's government which wants him to do invest billions of dollars in telecom assets. little bitto talk a of business. you have been the leader in the telecom market in mexico. -- mexican president >> 28 countries. important. we have an operation, and now we involved in europe. aboutwere talking splitting up companies in the u.s., hp and ebay splitting up. and i know in mexico there are reforms. and you are in participating splitting up america movil. has actually helped her start -- helped your stock price. shareholders are applauding this breakup. the value that has been lost

in the past. >> do you support the reforms that have been taking place? ago, the cost of tuition was changed. what you needed business is clear roles, and the role that was put in place is that the market share should only be 50%. that is ok. what you need is rules and the state of law. lawregulations that mandate , and you should do that. in complying with the rules, i know america movil has been in talks with various parties about dying assets. have you been negotiating with at&t? not east coast, it is

bigger. it is a bigger package of asset with the right to belong, led we are working for potential buyers to have agreements. the markets are doing the job, havehe bankers work is to information available to make the corporations that are interested ready. that is what i can tell you. >> one final thought. i know you had mark zuckerberg for the first time in mexico recently. a meeting every year and conference with 10,000 scholarships. , and we wereice

very happy that he was there. >> wanted to talk about? >> a few things. [laughter] giving internet access to everyone. broadband access to all. and other issues that are very important or society of knowledge. atlet's take a closer look the man who covers him. it is interesting to have these stories back-to-back. you have walmart and ruthlessly ruthlessly cutting health

care for their employees. and then you have carlos slim focused on philanthropy. all without the giving pledge. if you watch more of that talked about how he did not need to sign a pledge to do philanthropic endeavors. you have warren buffett going out twisting arms of commit to this pledge. and he says we do not have to worry about it. you cannot invest all of those fortunes. if you going to sell those companies to give it to philanthropy, you're going to lose thousands and thousands of jobs in the process. it does not have to be that you give the origin a way to do things -- the fortune away to do

things. >> what kind of profiled to you think that carlos is trying to cut on the world stage? >> he is trying to get to the forefront. this is one way to get it. you look at what he is doing a business right now as the more important thing. they have benefited from the regulators and the clarity they have provided to regulation. there's a lot of benefit for him to focus on those things at the moment. last week we interviewed gates, and called wealthy man.

it does move around a little bit. bill gates is not as much in microsoft april what they grieve you have canadian national railroad, you have a company called econo lab. these are companies that have had a huge run. it really has to do with how is amex doing, and how does all gates fair as well? > -- bill gates fare as well? i think once you step away from the company that you're involved in to get rid of the day to day management, you start to divest and reinvest in other companies and diverse fire out. >> very cool.

thank you. >> when we come back, none other than mitt romney talking about the 2016 campaign, . you will hear from the host of our new show. ♪

>> this is "market makers." mitt romney may be a two-time loser in the race for the white house, but he does not seem ready to shut the door on run number three.

he talked about the 2016 election yesterday in an exclusive interview and our new politics show. >> i think jeb is an excellent person to be a terrific president. i think that about people running on the republican side. my guess is you'll see 15 or so people on the stage at the first debate. i don't know who they will be at this stage. among those people, we will find someone who catches fire, who ignites the interest of the republican base, and you will see someone who can go on to become president. that is why i said i am not running. i am not planning on running. i have nothing new on that story. >> you said circumstances could change.

>> i said i am focused on making sure we nominate the right person who cares about the issues i care about. he was really reluctant to run, but he thought it was important or them to put up someone who can take on president obama and thought that the field was too weak. it seems like there is a similar dynamic playing out now. there may be a large field, but who was in that field? bush were toke jeb run, he would be unlikely to run. but if it is an establishment candidate, he might be tempted. i took a selfie with him, and was immediately flooded with comments. runs again, will he be on

and i told you so platform? >> the most wrong expression would be that there are no second acts in politics. i think governor romney is actually pretty gracious god. find he does run, he would being and i without told you so well, that here are the challenges that the country faces and here are my ideas for addressing them. he is pretty consistent. he would talk about the same issues in the same way. >> is he tonight's? 0 nice? gracious?us -- too gloves ever drop the and go punching? thee had a reputation in

past of being a very negative candidate. but in both cases when he tried to be a flashy candidate, and seemed to go against his fundamental nature. he did not do it with the detroit missed that good negative campaigners can. so the governor does not want to name names as far as republican hope for 2016 are concerned, but let's name some names. who is not getting the attention they are deserved? >> chris christie, who has gotten less attention since and two guys from ohio. he has five who are the dominant establishment choices. if any of them get in the race

and perform decently, i think governor romney will stay out. if none of them appear strong, that is when he might come back into play. >> what about rand paul? >> i do not think they would his test. he has been an incredible political runner in the past years, but no one would put him establishment an republican. he has a lot of political vulnerabilities. politicalside of the republican mainstream. >> it has been a long time since i have sat and watched television for a half hour. what we have on tap for tonight? >> and very knowledgeable guy about politics and government, and also one of the biggest kansas city royals fans in north america >>. . >> we have a big baseball focus.

>> wait until oscar season. we want to run through the roster of the 1978 royals and reminisce. all of your political news you can tune at 5:00 p.m. on weeknights. you can also check out the politics bloomberg.com/ if you are searching for episodes or video clips. and if you just want to about baseball, they are good for that too. when we come back, it is tim geithner for the defense today. former treasury secretary

will be on the stand in the trial over the irg bailout -- aig bailout. ♪

geithner, the former treasury secretary is back in washington today. the twostifying on thousand eight bailout of aig. he has to defend himself and the government and is much -- in its handling of the lawsuit. peter cook has been inside the courtroom, talk to us about how he is handling this walk down memory lane. there were some really interesting revelations from hank paulson yesterday. >> there were. the case is on break at the

moment. not a lot of fireworks so far. it is pretty clear that the litigator which is representing greenburg is taking him down a pathway where he knows where he is going. they will get to more sensitive question. he has been trying to get tim geithner to verify that banks were receiving a range of federal assistance from the federal reserve at the same time aig was in the fall of 2008 to roughly the same amount of money , yet receiving that money on different, more generous terms than aig god. t. said that the circumstances were different which is the same message we got from hank alston -- puls aulson.

the head of aig at the time came to tim geithner in july, and for the first time raised the possibility of turning the aig into a primary dealer, which would have opened up access to the discount window at that time. i think he is setting up for the suggestion that he had opportunities to help them earlier on that would not have been as expensive, but always said no. willtimately this case hinge on the concept of fairness. whether or not the terms extended to aig under the bailout were quote unquote fa ir. is that what is at stake? >> there is one legal question that has to be answered above that, and that is the terms of this agreement. the fact that the federal reserve took an equity stake in greenberg'sank contention that the federal reserve act does not allow the fed to do that. if the judge decides that that

is not the case, that the fed does have the opportunity to do do that, given the 13 federal the firstt, that is and primary question and then those other questions about harshness fall from there. other drama started to unfold yesterday. the supreme court not electing to review the case on marriage it is stilld seen as a victory for gay marriage activists. it is interesting because david who you are covering their, is also active on this case. >> i was mentioning earlier, that i had hoped to run into after the decision yesterday to be idle to ask him what he thought -- to be able to ask him what he thought, but i have not had the opportunity to directly ask him about it. it is an interesting development.

the supreme court decided not to go all the way and decide this case once and for all. big legal implications. this was the next best thing advocatesge equality across the country. they feel comforted that it will ultimately be the law of the land across the country. >> i'm sure you will have some other opportunities to do do a stepping. geithner has not said a lot. i asked him if he was happy to be here and i got a smirk out of him but nothing else. >> if there's one man you want to be careful around, it is david, whether he is or is not the litigator you are up against in the courtroom. >> thank you.

samsung., coffee and the disease that is free he got parents across the u.s., and it is not ebola. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> you're watching "market makers." >> it is time to connect some something that pimm fox does very well. he is looking at how you probably do not know what you think you know. i will ask you a question that i find myself asking you. what on earth are you talking about? looking at the news

headlines this morning. let's start off with samsung. goingmonths ago they were to eat apples lunch, and everything was great, and the bigger screen. and now we get the profit warning. a couple of months ago you could have read stories about how students dream were going to stream wasze -- soda going to revolutionize how we drink soda. now they have a profit warning. things can change on a dime. this is not a gradual move, things lurch from one thing to another. and i know you pay a lot of attention to the concept of volatility, and the idea being that if you're an investor, unless you are able to catch that move, whether it be up or you are able to capture what goes on in between, you're not going to make a lot of money. o doso the thing maybe tw

is to wait. coffee prices are at a 32 month high. they just raise prices from fulcher's, because of the two-year cycle and brazil that has to do with a big drought there. coffeekeep saying that prices will go higher, but you do not know that. to bet on something because it happened in the past does not mean that you will have any money. cattle. an you know they're going to eight hour day not a 23 have ordained because the price increases have been so huge that all of the people in that market have been overworked that they said enough already? things can change. a margin requirement can change overnight. so to bet on things and place your money on the idea that he can predict the future, there are a variety of stories today

is justshowing you that not so. >> i think there is a lesson in this area. you constantly need to retest your assumptions. sungle thought same was eating apples lunch, but that was not three months ago, that was 18 months ago. what you knew should not necessarily be what you think you know. >> i think the invested amount and looking into the valuations of companies that have not gone public and do not make the money but they have all of this promise and their valued at $6 billion -- >> $19 billion for whatsapp. >> there you go.

exactly right. the purchase of flickr, the purchase of tumbler, all of , when they're done they are done with the best of intentions. attention it too much to yahoo!, do not give enough attention? nobody knows. it is like the ford wanting that we came out with last week having to do with their shortfall in europe and their latinall in america. it was supposed to be a gig bus to year, and now people are worried that they are not going to meet their targets. a crystal ball, all of this is good to retest your assumptions. it is not the way to determine to where to put your money. is not an as it alternative to a better idea. unless you have a special

feature or something that makes people want to come back. >> taking stock airs at a new time, 5:30 p.m. board.a fantastic new ueu tune in for all d respect, and then you stick around for taking stock. >> very cool. when we come back, the virus that is puzzling doctors across the country. ♪

aboutryone is talking ebola, a disease that is apparently hard to spread

although it is doing a good job of that. but there is another puzzling illness that has already infected hundreds of children across the united states. doctors do not seem to know what it is or how to stop it. d68.call this enterovirus what is it? it sounds complicated, but it is just a common cold and most people. this virus has been circulating since the 1970's. most people have stuffy nose and congestion, but this year it is particularly bad. it is possible that it has mutated, but that has not been proved. in small children it is very easily transmittable. it is causing severe respiratory information, and sending children to the hospital. it has been linked to four cases, and it could cause

of paralysis like they fell with polio back in the 1930's. it has been linked to dozens of cases of paralysis, perhaps hundreds, which is alarming in itself that for some reason kids across the country are being stricken paralyzed and no one knows what is causing that. >> it is one of the biggest medical mysteries that they have ever dealt with in their careers. they are seeing kids come into their 2 practice with unexplained paralysis. my daughter woke up this morning and could not move hier arm. who has a boy in dallas prowls of the spine -- paralysis of the spine so bad it has affected his diaphragm.

doctors on this conference call that had all seen a mysterious case of unexplained paralysis. >> is the paralysis permanent or temporary? >> we don't know yet. it seems to be permanent. there is a real fear. >> and all of the skins tested positive for the virus? >> not all of them have, but rule it out. sometimes samples are not taken quickly enough. that's no swap only tells you if that is in this family of viruses. it does not tell you if you have a specific strain. researchers in california have us that he this extensively, and they have found cases where someone before this was widespread had some cases of paralysis where children were infected with this virus. that this would be

found in these children. they do know that a lot of children, before they develop this mysterious paralysis have a respiratory infection and headaches, a fever, muscle pain like a stiff neck or a stiff back, and then a very sudden paralysis. >> the one thing all kids should be doing more of? washing their hands. >> and if you have a cold, stay home from school siege and not spread it. >> we're going to take a >> quick break. we will hear from the guys behind jibjab. ♪

>> you can call it the first viral video. iny made their big splash 2004.

that spoof featuring george bush and john kerry. behind jibjab has been rolling out personalized e-cards and animated messaging. they were counted where it all began. 1999, whened back in we came out of investment banking and art school. towent back five years prior our 2004 election video. >> we did not know what viral videos were at the time. people who30,000 were watching our content, and then with our first hit, what e-mail to that 30,000 people, it's delivered 80 million views in a pre-youtube era. we had to figure out how to keep the servers.

>> heavies figured out the secret to viral? >> it is not the same thing over and over again. if you look at what we have done it is always how do we use technology to tell stories and interesting new ways? political satire, full-length videos, and now we have just an app. >> in order to this day relevant, who works for you? >> we have a big team. we have grown to about 75 people. but our head writer usually starts in the summer, e-mailing people asking what events should be included in the year in review? it is a group effort to get that list together, and that the writers get to writing. premiumid you go for a

model for your app, rather than advertising and som upported? we wanted to move away from because we wanted something that the consumers wanted, when he gets into advertising against tricky. -- when you get into advertising it gets tricky. messaging platforms have become huge. >> what has the rise of youtube meant for you? >> it killed our licensing model. were licensing to all of the portals, and now no one would give us money, because what you put it out there and will go everywhere. we had to raise venture capital for the first time because we had built the brand.

we needed to figure out new revenue streams. youtube was a big freight train coming at us. brandrned about entertainment, but to satisfy the marketer, the audience, and our brand was tough. e-cards, because it was right for innovation and personalization. funny and interesting, that was the basis for the business we have today. >> is there a future for jibjab and television? >> i think we have plenty of ideas. anything that combines technology, art, and great storytelling is a potential jibjab product. we have fun ideas for how to use tv. you're compiling the list, as you're preparing for the euro

review, so far, what is outstanding this year? now we are on the spot. there is a thing is, lot of depressing news this year. it is to figure out how do you tackle the more challenging issues, and do it in a way that -- ebola.e a bal >> yes, and trying to figure out how to encapsulate the gear and not avoid it, but to spend it in a way that does not make people depressed. waiting with bated breath to see the videos that they made of you and stephanie. >> they decided to have a little

fun featuring me and stephanie ruhle. here we are. ♪ >> i like the white hair and stephanie. it is a different look. they capture the range of my moves. socially, i hang out and you'd actually dress like that outside of work. the fashion is spot on.

that is not the best jim jeb i have ever seen. >> but it is not bad. however we will give this video viral, weunity to go will between to get out -- b tweaking it out. ♪

>> that will do it for "market makers." >> tomorrow i will talk to the al on ineo of payp

the loop. >> and stephanie and i will be here talking about the business of beauty. with us will be the ceo of the french beauty company clar ins. fascinating and big dollar. the hour, past bloomberg television is on the markets. >> thank you. stocks are moving modestly lower. the s&p 500 is off by 6/10 of 1%. the imf came out today cutting its global growth forecast for 2015, down to 3.8%. a bit of a revision downward.

they say stocks had reached frothy levels. insia me now for options ght is scott. we saw a pickup and volatility last week. what is the mood on the markets today? >> the mood is complacent although we are seeing the vix trade much higher into the higher si16's. it is just as this is usual, something else that hit the marketplace today. it is not really of much concern to traders automate more macro level -- on a more macro level. >> 16 held relatively high given the quiet summer we were on. they have turned to eddy lampert

twice in the past month for a cash infusion. 40%.s are down what are you seeing in sears options? interestingy because the options volume is actually light. when you look at the implied tells us howhat much premium there is, or how much insurance protection there is, it is off the charts on the high side. sears vendors are so scared that they are not going to get paid, especially with the upcoming christmas season. they go out to try to get insurance on their payments. they have to pay such toiculously high percentages ensure that it was that translates all the way down and funnels down to people trading sears options. if you look at the chart implied volatility is high. it looks like a dinosaur. there is nowhere but down for this thing. the volume is low.

but the insurance premium is really high. is low becausee they cannot find anybody on the other side of the bet. >> exactly right. nobody wants to touch the premed, and they are scared -- premium, they are scared. >> what is your strategy on yum? >> i'm looking at the upside. there has been such negative news, that any earnings will be to the upside. options, sellion the 75 call. of 67d do that in a range to $.70. sort of goodny earnings, if there is any sort of guidance to the upside, tech weekly the next upside will be that 75 spot.

that is why i but this three dollar call spread on. >> how do you think the overall business is doing? china.d to fall 13% in it is not just kfc, pizza hut, and talk about. -- taco bell. >> comparatively it is of about 4%. china will be the big factor. >> thank you for joining us. ♪

>> welcome to "money clip.:" " i am adam johnson. around the world europe's economy takes another hit. the imf slashing the global outlook. today's investor, carlos slim. launching a global campaign to hire workers with disabilities and wants others to join him. in media, not just about tv. espn goes over the top and a new deal with the nba.