that officials have even been saying, you know what, the global slowdown may drag us down, too. >> we will see if the rebound today will last. thank you so much to it we will be on the markets again in 30 minutes. ♪ from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line." ♪ to our viewers in the united states and to those of you joining from around the world, welcome. we have full coverage of the stock some stories making headlines on this thursday. su keenan watching crude oil. canquestion today, how low

the kodak oh peter cook on capitol hill where lawmakers are asking tough questions about the ebola crisis. we begin with julie hyman as u.s. stocks extend a worldwide selloff until we heard from bed president -- think of st. louis fed president james bullard. >> that was really the turning point. andael mckee spoke to him he talked about some of the challenges facing the economy right now, particularly globally. however, he went a step further in his comments to michael mckee. listen in. >> i think a reasonable response from the fed in the situation would be to invoke the cause on the tape or that says the tape was data dependent and we can go apposite on the taper at this

juncture. >> and other words, the winding down of quantitative easing, maybe the fed could posit that. analyst whog to an pointed out there is not much more of tapering ends on the date of easing. one other caveat is he is not a voting member of the fed at this point in time. nonetheless, the market did seem to take it as a signal of what policymakers are thinking. of a slow climb rather than a sharp rebound in response to the comments. if you look at what it's gaining the most, energy stocks have come back. more or less since the s&p 500 record since september 18. materials coming back, industrials coming back as well. reversal in the treasury market. yesterday we saw a lot of

volatility there as traders were trying to figure out what was the appropriate level. today there has been some level of volatility and still at very low level on the yield for the 10-year. however, yesterday it dipped as low as 1.86%. i mentioned what is going on ien energy stocks -- mentioned what is going on with energy stocks being held up by oil. what we're seeing by oil investors around the world is a recount operation. where are we right now? arencern and investors worried about how much the european central bank can do to improve the economy, you have that on the table, what is the demand for oil? the federal reserve and then the wildcard of ebola. all of that is what investors have to contend with.

>> julie hyman, thank you so much. tonight on charlie rose, paul krugman is a nobel laureate and the faster princeton university. here he is on the world economy. >> europe is seriously scary. china is in fact seriously scary although it is hard to track. we are not an island. you really would not expecting u.s. to be completely immune to the bad developments. here we are six years after lehman brothers filed and still very fragile. >> you can see the entire interview tonight at 7:00 and 10:00 new york time here on bloomberg. next guest says the dovish comments have stabilized risk asset. alex young is an investment strategist at oppenheimer funds

in new york and joins me from his firm's headquarters. welcome back and good to see you. we have had a wild ride the past couple of days. esther bullard telling our economics editor that the lightning the end of the bond purchase program would halt a decline in text based -- in inflation expectations. >> i am not surprised it has stabilize the markets. i am not sure how much extending and tapering can do, given how long it has been going on. i think a lot of investors have other are expecting voting members will allude to either extending the tapering or throw commentary out there that gets people less concerned about rate hikes in 2015, pushing out expectations. the consensus expectation for the first rate hike for the later part of 2015.

but -- but a little bit of floor underneath that. >> the markets are and what he called a technically driven correction. you talked about psychology a moment ago. ?hat about investor psychology , tour headwinds from europe and asia driving volatility right now? i think primarily from europe has been at the center of selling. ebola is hanging out there. i think it is difficult to quantify. i think it is safe to say the majority of volatility has economic origins. if we look at the u.s. economy, we are little bit more confident than many other investors about the health of the economy. we have an improving job situation, companies beginning to invest. today we had a very strong philly fed number.

i know we had weaker reports earlier in the week. while we acknowledge the weakness in europe will be ahead done -- headwinds, we do not think we are as wonderful as other investors do. the s&p in the low to mid-1800s is a buying opportunity. >> speaking with alec young in new york. the markets pared losses following the comments. >> when they came out the s&p was around 1837. currently 40 points higher. you can clearly see looking on the bloomberg terminal at the intraday trading at a pity that the comments really sparked a rally. we have had a lot of selling feeding on itself in the past couple of weeks. whether it turns out he holds a

lot of sway, i think investors are pleased someone step in today to bring a little bit of home to the markets. >> we learned today applications for unemployment benefits fell last week, lowest level in 14 years. is that enough to calm the markets long-term and withstand the weakness in the european union? >> it will take a lot more than that. continue to see the trends we have been saying over the , it month, several months think investors will get more comfortable, while the u.s. may sell a little bit, is not necessarily headed to a recessionary or a stationary spiral. another thing that can help is guidance from americans on the call. >> you favor cyclical cycles over defensive areas. look mostich ones

attractive right now? >> in this risk off trade recently we have seen people trying to hide in utilities and telecoms. valuations have been moved up as a result. given our view on the economy, we think they have that are earnings profiles. couple that and you get more attractive on the pe to growth basis. that is why we like cyclicals. looks particularly attractive. >> alex young joining us from here in new york. always a pleasure to have you on and get your expertise. now to the other top stories we are following on this thursday. nina pham, the first dallas health care worker to be contracted with ebola is in good condition and said to be stable. another dallas health care

worker has artie been moved to emory university hospital in atlanta for care. customs and health officials at areorts in four cities scheduled to start taking the temperatures of passengers from three west african countries. no touch thermometers will be used to try to find passengers with fevers. a blockbuster colder -- quarter for goldman sachs. marking the straka -- second straight year a beat estimates. lloyd blankfein sought to limit expenses to keep equity about 10% will he wait on the trading environment to improve. apple's latest product event is underway in cupertino, california. tim cook has unveiled a new ipad in the wave of the push as chief executive officer and just ahead of the holiday shopping season. they introduce the slimmer ipad air to that measured -- measures

6.1 millimeters in length. signed anapple has additional 500 thanks to apple pay. pay is integrated right in. everything you need is built into iphone 6 and six plus. secure, and yes, it is a private way to pay for things. forook announced pre-orders the latest iphone in china have will-- set new records and be available on october 17. that is a look at the stories we're following at this hour. coming up, the economic impact of ebola. we will get an outlook from the world bank chief economist for africa. ♪

welcome back. on capitol hill lawmakers are questioning officials on the government's rick -- response to the ebola crisis. some are calling it unacceptable. peter cook is following stories. how has the questioning been so far? five tough questions for seven of the republicans who have it their recess to come back for this hearing. at the witness table you have six separate officials, namely u.s. health-care officials including the director of the cdc facing tough questions about the cdc response. some calling for him to be fired because of what happened so far. for the most part the questioning has been very tough questions about whether mistakes were made with regard to the handling of the first ebola patient and why in the world to health-care workers have now come down with this virus as well. >> people are scared.

we need all hands on deck. we need a strategy and need to protect the american people first and foremost. it is not a drill. atple's lives are m stake. >> there have been a big response about why the united states is imposing a travel ban. by and large the cdc and others saying it might be more risky. you would not be able to track people as easily. for now, no need to travel ban. but they're open to further limitations down the road if necessary. thank you. the world bank south africa is likely to become one of the three fastest growing regions next -- despite of the ebola

outbreak. francisco ferrera as the world bank chief economist for africa and joins me from our washington newsroom. welcome. thank you for your time today. thank you for having me. >> the world downgraded the expectations for economic growth this year in guinea and sierra leone and liberia. is this depends on when the virus can be contained? >> yes, it is. for this year estimates have gone down quite considerably. .4 percent for liberia. similar amount for sierra leone. this is on the basis of a fairly strong decline in activity in the past two quarters of the year. still growing positively because the first half of the year was very good. depend on whether

it is contained by the end of 2014. the costs will not be that large next year. kenny could actually rebound. the other two countries would lose $120 million in foregone output. if things continue in the epidemic continues into the first half of 2015, the estimates are sixfold, six times larger really. about $800 million for what is already a weak economy. >> how can west africa reap the benefits of public investment, specifically from the international community it april are afraid to work there and countries will not accept imports? is a huge driver of the economic impact. when asked about west africa as a whole, it is important to

remember they only account for 4% or 5% of the gdp of west africa. there are countries like nigeria and senegal and two of these have had ebola cases and were able to contain the epidemic. you can never let your guard down because when there is a forest fire raging next-door, you will have a few sparks but other sparks will still fly. nevertheless, they have shown the health care systems are not as weak in those countries. they were able to deal with them. it is important people do not panic and generalize. in sierraliberia leone suffered greatly, even before the ebola outbreak. civil wars left thousands of people dead and displaced. seems as if the countries were just starting to get back on their feet economically.

damage be contained? >> that is the tragic thing. first of all, the tragedy of the epidemic is human. it is about the thousands of people that are dying, about twice as many or more than a very ill, the family and loved ones. but the economic impact is also severe. economic countries would be weak economic states. they have a history of civil war, which is in part behind the weakness of the health systems they have. they never had time to build up the cause of everything going on. they were growing, that's at 8% per year in the past few years. there was a recovery in the sense of getting back on their feet. there is no question this will set them back. the key to everything is how quickly we can contain the

epidemic. if it is contained by the end of the year and we get that done, can be back onry its feet and growing again relatively quickly. most of the economic damage is done by fear rather than destroyed economic capital. >> will to economic growth in other parts of the african content the enough to contain or mitigate the damage ebola has caused in the western part of the continent? if the epidemic is contained to these three countries without a major spread to the larger economies, then yes because although every life is a human life and matters enormously to all of us, those economies are small in economy so they will not make a huge difference. so far reducing impact on tourism and in both -- investment elsewhere. we expect if it remains contained the impacts themselves

will go way. for next year is africa is still growing upwards of 5%. >> the world bank chief executive for africa joining us from the washington bureau. thank you for your time. we appreciate it. up next, julie hyman will be back with another on the market update. have things calm down, or is this just a blip before the next it? that story when we return. ♪

welcome back. we are approaching 26 minutes past the hour. that means boomer television is on the market.

we are off the session lows. -- comments from richard federal reserve president of st. commenting that maybe we could see a positive and the quantitative -- tapering of quantitative easing. even though that may not have much of an effect on the economy, definitely had a psychological effect and perhaps combined with the idea that investors have come in. take a look at what is going on with stocks. the dow is now little changed. the nasdaq now up to about a quarter of 1%. movers, of individual we have to look at netflix. more than the most in two years. the company set a price increase has slowed subscriber growth. newlix behind orange is the black and house of cards. preparing for increased competition. cbs announcing

subscription services that will be starting soon. shares of six flags trading at a new 52-week low. the markets more on in 30 minutes. ♪

welcome back to the second " on-hour of "bottom line bloomberg television. i am mark crumpton. stocks are getting a lift today from james bullard remarks. he told bloomberg news today the fed should consider delaying the end of qe. with moren joins me on this and the market reaction. we have actually seen a little bit of reversal on the dow. this actually could have

the opposite of fact. i think if investors really sit back and think about this, if they realize the fed will have to come up with more qe, they worseay we are in a much situation than we thought. >> he did make the point that he is taking a look at inflation in terms of when qe is wound down. >> where if it? here we are six years later and basically no insulation. the fear is deflation. you look at what germany is going through and you have to ask yourself, at what point does this not start to work anymore? have talked about this before, there is always the law of unintended consequences. there is a danger where people say i do not need to do this today i can do it tomorrow because the fed will still be

there keeping rates low. i think it has been difficult to truly value assets because you have the support of the federal theyve, which apparently may be willing or he thinks they should be willing to keep. >> what happens to the support once qe goes away? >> theoretically it should be somewhat painful. maybe that is the medicine we all need to take. apparently there are those of the fed right now that do not think we are on stable enough funding to get there. i think in stead of the sugar high we of previously seen, investors are taking a step back and saying maybe this is not as good. a questionngs them about dual mandates. >> we will talk about this on "street smart."

we will have danny blanche flower. we were talking about whether or not we needed more qe. we will talk to the nrg ceo david crane. this is a coal company for trying to make alternative energy. >> also, some views about elon musk. >> elon musk. the conversation. thank you so much. see event. americans are increasingly concerned about air travel. flying from cleveland to dallas on an airliner. shelby holliday was in cleveland yesterday. how are people there reacting to the news? >> panic is not the right ms. -- words but people are concerned.

a lot of people telling us they are packing masks and wipes to clean the surfaces. just the fact that this passenger was allowed to fly making people uncertain the government is able to contain the virus. out,vid gilbert pointed this dallas nurse could have traveled anywhere. take a listen. >> this is not a cleveland issue. harminly feeling closer to -- to home. >> health officials are now scrambling to treat this. they told me yesterday they had no idea she was in the state until she had are the left. >> mentor showed no signs of being ill while she was in flight. the cdc says the nurse should not have been traveling.

how do we know this kind of thing will not happen again? >> at this point hard to say how much control the cdc has over .he people typically state health officials quarantines and travel restrictions. the cdc does have the power to invoke do not fourth list. unless they take that unprecedented action, it is extremely difficult to track doctors and nurses who are treated ebola patients. pretty much relying on an honor system involuntarily -- voluntary cooperation. cdc says they have talked with most of the passengers on the flight with the nurse who has now contracted ebola. time now for the commodities report. >> another volatile day. a 6% swing between losses and gains. the new york fed not over

rebounded but rallied. going right to the charts. oil finishing the day just above the $82.5 mark after falling to the 79 handle and as high as 85. french rose -- brent rose. check out the gasoline number, a lot to do with the latest government supplied data out today. it was out a day late due to the holiday. i loaded oil co.? 79.78 showed the nation's crude oil supply gain last week more than tripled most forecast. there was a declines in gasoline. that turned things around. traders calling it a relief rally. global crash is in a bear market. this is in order to protect

profits and dividends payments. will think twice before launching new projects now. citigroup is out with comments on the silver lining the oil market is providing to the global economy. estimated $1.1 trillion shot in the arm due to lower pricing. >> thank you. apple upgrades the ipad. that story when bottom line continues in a moment.

policies led to about target inflation and recession. president said nevins party failed to investigate corruption

. that is sure latin america report for this thursday. aired and they have touch id that our cameras and apple pay capabilities. with these be enough to boost sales? me in studio.s consumers shifting away from tablets. -- sam grobart. had goingablets, i've after the casual user and initially very successful in capturing the people who may have felt less comfortable with certain pieces of technology but gravitated toward the ipad. over several quarters the numbers continue to decline. hopeful by recharging the lineup that might boost sales going forward. we were talking and i wish there was a camera on us but with apple it seems to be

build it and they will buy it. why is that? a magical thing that has happened, that apple has almost developed the perpetual ocean machine. that product becomes very successful. that has happened with the iphone, ipod and ipad. what does this mean for tim cook and leadership at apple? what input is he trying to put on -- imprint on the company that when you listen to him today and colleagues, they talk about all of the devices, whether it is a desktop or mobile phone -- all of these pieces working together, allowing you to work on whatever platform you choose. the motion -- the notion of working together is something i think cook holds close to his heart for the product his company makes and something he holds close to his own heart.

hearing stories about retail numbers show consumers are may be pulling back a little bit, wages are stagnant. are consumers going to be willing to pay the price? >> apple looking to respond to the concerns when they announce the lowest price ipad will now the lowest $249, priced apple ipod product ever. clearly trying to extend the lineup from the low end to the high end by using older models as the lower end devices. >> thank you so much. we should redesign to our bloomberg west editor cory johnson is attending the apple event and is inside. we will hear from him coming up in a few minutes. also coming up, no yankees or red sox. why going all the way in game seven matters to fox. ♪

>> 29 years. the royals are going to the world --

is sure to check out the latest week"n of "business featuring steve ballmer. for those who want to cut the cord but do not want to give up watching game of thrones, hbo has something for you. a standalone streaming service. he joins me here in studio. when he joined -- when i thought about this earlier today the first thing i thought was a blind man could see this coming. what took so long. it comes down to hbo having a model. they have high margins. i think you are seeing a huge

groundswell of consumers adopting streaming video, particularly through the television set. consumers want to get streaming content and whatever connections they want they want bigger and faster. does that say port cable operators who say i like cable but i do not watch hbo and espn, why am i paying the premium price? >> a lot of times hbo is not bundled. their subscriber counts have always been around 30,000,000-35,000,000. netflix has had their subscriber count slow down. i think hbo sees this as an opportunity to increase the subscriber count for people who may not want to fondle it as a television package. >> the flipside is the heat of

competition. most in two the years. his netflix a victim of its own success and will it be crowded out of the market that it helped veryeate.co >> that is a good question. hbo clearly has more original content. emmy year they get more awards. game of thrones is their most since theograms sopranos. clearly someone will be the industry leader. right now i think because of the popularity, it gets critical acclaim with the shows. shows the content online -- sends a message that this is where a lot of consumers want to watch it. that is a great opportunity for viewers who maybe have never seen the show. >> i am speaking to brad adgate

of verizon media. let's talk about baseball. kansas city royals are going to the world series. they have not been to the playoffs since 1985. giantsll either face the or cardinals. to advertisers like this matchup? >> i think they will like it a go seven games. kansas city has not been a friend to the network. gameslly if it goes seven to get upwards of $43 million in advertising revenue for every game, so if it goes an extra ga they- extra three will get upwardsmes of 30 million in advertising dollars. this is a contract that kick in the season. they are paying over one million. close to 1.2 million from the old deal. averages 110nce

million people worldwide. this is about every year. the world series audiences vary due to the teams involved in the markets invocations. you mentioned seven games. game.ryone wants a there was texas-st. louis. game six and seven averaged over 20 million viewers. despite the erosion of what was going on with the world series, the lowest rated world series ever was 3.7. with the giants and texas. still double what they have done in prime time. team,f the big market that does not necessarily translate to success. >> the san francisco oakland.

earthquake did not help. what you really want is the matchup. you want major markets on the coast. before thelking highest rated game is 1980's against the phillies. ax just quickly, when you are small market team and hear this kind of conversation, do you have -- chip on your shoulder? city is a great sports town. the fans had 29 years of a huge excel. good for them. low payroll and al champs. i hear some of the best barbecue in america. >> and stakes. us.rad adgate joining now i am hungry. stay with us. and another check of the market movers on the other side of the break. ♪

that does it for this edition of "bottom line." i am mark crumpton. julie hyman coming up.

i understand your following oil services companies on this thursday. >> i am indeed. the company talking about what would happen of oil fell further. then it wouldaid see a meaningful slowdown. the big exploration and production company. get more into that and just a minute. if you look at the broad market, we pulled back from where we were at the top of the rally. talking about the interview james fuller did with michael mckee where he talked about a potential cause in tapering of quantitative easing. in talking oil, let's took a -- priceslook at where oil are. we are seeing a rebound in saying that once again today.

joining us with a look at how the recent volatility is affecting oil and equipment services company is the managing director or or as steven agee and leach. thank you for coming in. i was talking about what is going on with baker hughes today coming out and missing estimates. how serious of an issue is this ?or some of the issues >> from baker hughes perspective, some of the issues were transitory. weather issues in the gulf of mexico that hurt the margins. i do not think that really talks about the impact oil is having right now. when we look at crude oil, certainly when it comes down as much of that has recently, you the moneyt cash flow, they can spend on new projects and the economics of the

project. i think one thing they reference today is $75 or lower, the nonconventional plays in north america are starting to become a little bit tentative. we do not expect a big drop-off in spending. oil to rebound on average for 2015. when we use that as a backdrop, we see spending and revenue up in the 5-7 .5% range for 2015. >> this would be a slowdown. we think the stocks have probably over reacted on the downside. even with lower expectations, the expectations of the stock still looks pretty attractive to us. >> when you look at the equipment companies, which are more reliant on the less conventional ways you're talking about? the margins that will get squeezed? >> i think first when you look

at the high-cost projects, it is some pockets of nonconventional in the u.s. and deepwater. we have heard a lot about deepwater slowdown in the rate rates. look at the names letter to u.s. nonconventional, it is halliburton and baker hughes. halliburton has done a good job bringing the cost structure down. we associate these with market expansion. baker hughes has seen some pricing improvement recently. this bodes well for halliburton as well. >> inky for your time. talking to us about the oilfield services company. ♪

welcome, everyone to the most important hour of the session. 59 minutes to go until the close . watching stocks right now bounce back and forth. they had reversed losses and now back in negative territory. suggesting more qe. i will sit down with the nasdaq vice chair and his view on the volatility seen in