>> from bloomberg world headquarters in new york and is bottom line, the intersection of is this an economic -- of business and economics with a mainstream. m perspective. to our viewers here in the united states, and those of you joining us from around the world, welcome. we have full coverage of the stock and stories making headlines on this monday. shelby holliday has the latest on the quarantined placed on u.s. army personnel who served in ebola stretching countries -- ebola stricken countries. examines what is

ahead for brazil after the reelection of the president. we will have those stories and more coming up in just a moment. first let's get you right to the top stories we are following at this hour. the european central bank says ofwill settle $2.2 billion bond purchases last week. as part of a renewed push to jumpstart europe's economy. reassureought to banks. that these were done in an extremely professional and credible b manner. europe are banks in

healthy and would resist drama. >> holders of detroit's pension that have agreed to drop their last major objection to the city's plan to exit bankruptcy. they hold about $1 billion in debt that was raised to shore up its retirement system and 2006. it will be canceled on to the plan and the investors of bronze ensures that guaranteed it will instead begin 100 40 $1 million in new notes and lend. intracts to buy new homes the united states grew less than forecast and said amber. -- in september. for slowereasons growth is a tight inventory of homes. traders andange their messages on facebook.

investigators are expanding their investigation into collusion between banks and traders. that is a look at some of the top stories we are following at this hour. we also continue to follow the latest news on ebola. state and federal officials are at odds at how to prevent it spread. we have been following the debate on how to monitor fromlers returning so-called ebola zones. what is the protocol you go >> the cdc is expected to make an announcement later today. onlyo far their guidelines calls for basic monitoring. isolateguidelines would

troops for 21 days after returning from ebola areas. states have also taken matters into their own hands, requiring quarantined of health workers for 21 days. after intense criticism from both washington and the health community, she was discharged this morning after testing data for ebola -- negative four ebola. ebola. talk to us about the legal questions here. what are they? >> i spoke to overhealth law professors the weekend and they say these s bring upquarantine legal questions. who will identify who is supposed to be quarantined?

it would require federal officials to essentially turn them over to state officials to be quarantined and limited and restricted. the other big question is how will these quarantines be enforced? are we going to hold them in policels, have monitoring their homes? voluntary isolation? and do these quarantines need the least restrictive confinement measure? bethey are going to quarantined, they have to be held in the least restrictive way. there are a lot of questions right now. we have not had a lot of information from the governor's, but we expect to learn more in the next few hours, especially from the cdc. look at the commodities market ahead of the close. su keenan jointly with the

details. >> good afternoon. oil and sugar and coffee all in the spotlight as commodities slumped to a five-year low. there is a strong tie onto the brazilian reelection. there are some concerns that the currency will spark more export. intermediate fell below the $80 mark, the lowest of has been in 2.5 years. $80.60looking close to as we head into the close. they came onto pressure, as goldman cut it price outlook. producerse energy take a big stumble on the stock market. this is even a bigger impact for wned company petrobras.

falling with each move in the polls, now revealing it will be in negative territory for a while with the resumption of this previous regime. we are seeing raw sugar under similar for several reasons. futures fell almost 3% as did soybeans. close ton new york was 60% higher than the 100 day average. there is a lot of repositioning going on here. let's what is the story with old? -- gold? >> could be bullish for gold. the central bank may have to start accumulating. they unwound a big old decision, and could not be forced to buy it back the next few years.

traders say that is good for demand, but analysts say that the devil is in the details. etp'sis holdings and a of the lowest in five years. thank you. later in the hour we will get an investor's if on the results of the brazilian elections. blackrock has $89 billion in invest across that region -- in investments across that region. when we continue, we will take a look at whether the fed might expanded tapering program as inflation continues to fall short of its target. ♪

>> the european central bank bought $2.2 billion of covered annds last week in and sn - effort to stave off inflation. welcome to bottom line. thank you for your time. andral banks from the u.s. japan, they use quantitative easing to expand their balance sheets and encourage lending. the european central bank did not until last week when it

settled over $2 billion worth of covered bonds are just is. -- covered bond purchases. is this going to create enough stimulus to give the eurozone economy some momentum going forward? >> i think it is a good start. a number ofre are questions that the ecb is going to have to grapple with as to whether or not some of the existing programs are going to be successful. including covered bonds, but asset-backed securities, and the tro facility , they are all on the table as stimulater the ecb to activity in the economy. thatople are always saying the fundamentals in the u.s. are strong. and doing a lot better than our colleagues in europe. why is that? does this go back to the austerity measures that those countries have ample minted? >--implemented?

>> that is part of it. a significant opportunity for our economy to restore its growth. we have taken preemptive steps with our big industry to get it that got its feet and in a better position to be lending to the corporate sector. they federal reserve's bond buying program is supposed to conclude in a week. but that has been telegraphed for months. so why have the markets been so volatile and with so much anxiety? >> there are a number of external fact is and challenges that market participants are wrestling with. whether it is your political questions -- geopolitical questions, and relatively timeched valuations, any that we have been transitioning monetary policy, and has tended to result in elevated volatility. quite is there any chance that the fo one c might be swayed by

fed that theythe might consider extending qe? >> our feeling is that they are not in the same place with their thinking. we expect that the qe program and is going to conclude with the fomc meeting later this week . is inwhat we have here effect the fed winding downs the millis, but at the same time raising rates, which market tchers expect i the middle of next year. but the fed says there is still slack in the labor market. are policymakers contradicting themselves? >> a little bit. from the projections of the fomc

members, they expect rates to be thanr by the end of 2015 where the market is currently pricing. the expectation must the that they expect a significant recovery. our own feeling is that there is going to be a lot of challenges and crosscurrents facing the u.s. economy in that time. a delay, or at least a postponement in the pace at which the fed chooses to hike. >> what might those challenges and crosscurrents be? >> number one, we have some challenges with regard to global growth, that it is going to be a real question as to whether the u.s. can stay outside of the gravitational pull of some of these slow down that we see elsewhere in the world. >> since the first round of asset purchases six years ago, the balance sheet has skyrocketed.

how much longer can the fed maintain multitrillion dollar portfolio? what do your treasury strategist think this means for yields? >> the fed has no intention to sell the assets that it has purchased. we do not anticipate there will be significant reduction in the overall size of the fed balance sheet for the foreseeable future. as for the active treasury yields, there are numbers of versus -- forces at work that will keep the range of current levels. as you just saw, the 10 year yield is 2.26%. meeting the fomc released a supplementary statement which says it plans to drop securities once the raises

interest rates. is that going to be more dependent upon a natural positions rather than a timetable -- on actual positions rather than a timetable? >> we think so. we think that the response is going to be dependent upon the data that they see. i think the fed will be taking into account what is happening in inflation and our labor markets before finalizing that's decision. you for your time and your perspective. >coming up, the number of americans giving up their citizenship is on the rise. ♪

>> welcome back, this is bottom line on bloomberg television, live on bbg television and streaming on your phone, tablet, and at bloomberg.com, now on apple tv and amazon fire tv. ofre may be a long line people waiting to become u.s. citizens them up at a growing number of americans are headed in the opposite direction. they are turning in their u.s. payports rather than u.s. taxes. is the tax policy really sending them packing? >> the numbers suggest that.

rose 39% in the third quarter this year compared to a year earlier. one next one nation is a new law that took effect that makes it harder for americans to hide their assets overseas. it is response to revelations that they were actively pitching u.s. clients on schemes to hide their assets from the irs. in july they started acquiring list of financial institutions taxmplement a 30% holding upon. with more banks complying, more americans are making the choice to simply turn in their american past boards. sports.

year, 2353 americans have renounced their citizenship which is on track to set a new record for the year. issues a hotly debated overseas for americans with dual citizenship. the only country to tax citizens no matter where they live in the world. taxidea was to go after dodgers and increase revenue in the united states for the estimate is that over 10 years ago be another $8.7 billion in revenue for the federal government. it appears at this point, a lot of those banks are complying and americans abroad are having to make some decisions >>. >. >> what are americans on capitol hill doing? are they trying to change the law? always the question of

if there should be a text holiday or to cut that rate in half. >> these are individual taxes we are talking about, there is much more discussion over how american businesses will be treated overseas. ofbe in the next the session congress, republicans and democrats, if they could compromise on one issue québec the big corporate taxes in the final years of the obama administration. >> it seems like the government is getting hit on both sides, because you have the tax i issue and the inversion issue. >> that is exactly right. you have inversion them and the administration moving on that in the short-term. but both republicans and democrats believe the way to

deal with inversion is to overhaul the tax system. but there are still big differences over exactly what should happen to all of those corporate tax loopholes. there are some in the business community who would like to see the lower right, and others would like to have that stay the same. is time for bloomberg television on the markets. good afternoon. of thee had the midpoint trading day, i can tell you that u.s. stocks are fluctuating between gains and losses. can see right there the dow is unchanged, the s&p off by 1%. this is the worst performer in the nasdaq, following to its --est level since late july falling to its lowest level since late july.

we will be back on the markets in 30 minutes. ♪

>> welcome back. thank you for staying with us. politicsre bloomberg -- our bloomberg politics guestast, among their former new york governor and the san francisco mayor. taking stock with pimm fox is now at five 30 p.m. new york eastern.t 5:30 p.m.

i'm joined by matt miller who is filling in today for trish regan on street smart. governors of new york, new jersey, they have imposed this quarantine. we have any sense of the public sentiment? >> it is on the side of the nurse who has been released from her camp and allowed to serve her time back in her home in maine. nobody wants these people to be cap to intense or tentstories -- kept in or laborde stories if they are not showing any symptoms. the white house has a real problem with it. quite the big discussion on the sunday talk shows yesterday. foremost doctors

and scientists in the world saying this is not the way to go because what you have here is politics trumping science. i do not think the governor of new jersey is basically's policies on science and here it is more about fear. that is the problem the white house and the nih have with this. fewer people are going to go to west africa and help to fight this disease if they think they're going to come back and be put in a tent and not allowed to leave for 21 days. >> fear of what? the argument from the medical community is that it is like you can pick this up you can pick up the flu. -- is that you cannot pick this up like you can pick up the fl

u. being very rational, you would not be a good politician. they play on here because they them votes.ners thebecause they think dollar will lose 100% of its value, but it is the same thing with the gold. >> i will be speaking with grover norquist, a lot more americans are giving up their passports because they are concerned with new rules, and what they have to disclose as far as their foreign held assets. they gave up their past ts because of the taxes. >> the answer would be to change

the tax code. but that is easier said than done. >> corporations are looking for ways to get out of this country, and no more and more citizens are looking for ways to get out of this country. democrats would like to change x code as much as anyone else, but they do not know about the reality. matt miller will be with us, thank you. dilma rousseff has been rea reelected. we will see she can fulfill her pledges for her second term. ♪

>> it is time for today's latin

america report. dilma rousseff wins a second term. it was the closest run off the country since 1995. her pullrs that helped this election off, what were they? >> she had a fantastic campaign strategist. but she used the talking points against her opponent very effectively. they went after him, saying he away from money ordinary, hard-working brazilians. when she targeted those ads, she thought very carefully about most.ey would in facmpact her opponent to win. he is a very western style of thinking. ing?has markets been react >> very negatively.

the worst day since 2011. state-run companies are falling. we have had some rebound as the ex porters are benefiting from the currency drop them of the lowest since 2005. initial market reaction, if they -- as expected, they are not happy. >> throughout her campaign she has talked about change. she really emphasized that she was going to make sweeping fiscal reform. one of the main sticks she has politicalith his corruption, she said she will work through that and be the best residency can be -- president she can be. >> we do not know what changed

she is going to bring. she has not said who will be replacing the current finance minister. that is the main thing the markets want to know. who will be leaving her economic policies, and then they will her economicding policies, and then they will decide. slimmest ofy the margins. he said the struggle is going to be to unify brazil. how hard is that going to be when you have a split as close as this? >> she said that the narrowest of margins can lead to the greatest the jury. i do not know if they are buying that. difference in wealth disparity, and that has really grown on her for the last four years and that is going to be heat for her to unify brazil

and look at it from both sides. vote, closeness of the was that an indication of the social programs that were working? the impoverished of the country did receive help during her first four years. >> the wage gain under her and her predecessor were very strong. but we still have a situation where the economy is still in recession. >> businesses also had a difficult time under her. that is what you have seen with the voting split. >> one of the prospects for the coming coming up in 2015 -- what are the prospects for the economy in 2015? >> not great. half of what it grew under her first four years of government.

inflation is already high, budget deficit is already high. thank you for joining me. s joiningstianson is tha me from santiago, chile. thank you for your time. >> it is my pleasure. benchmark equity index fell today. it is approaching a bear market for the second time this year. what does this tell us about how w the results?e >> it is more than just yesterday, they have concerns about the economic slowdown. recentave an rallies in months in the hopes that change

on a political front could address those challenges. what we saw yesterday was the atswer to those expect tations. today's reaction is just a follow-up on a concern that has been there for some time. >> speaking to reporters, he said that they have several stimulus measures for industry. we can expect the economy can become better. how can they convince wall street that a second rousseff will see an economic turnaround? >> it will be a several stage process if they want to be successful. in the short term there will be a lot of focus on the nominations in the economic team, and some specific policies being addressed. stagnation on the economic

front, high inflation. andime goes by, she has, her government, will have to show concrete measures in terms of delivering on those policy announcements, . it is not going to be an easy task. >> i am speaking with the chief investment strategist for blackrock in latin america. willadjustment to prices this new government need to make, and will that be enough? >> it is a tricky balancing act. there is some price regulation put in place in brazil. it has capped inflation lower. but we have a weakening on the fiscal numbers. so the and new administration will have to find

a way to put those price subsidies, and limits, and phase so they will not hurt inflation in the short term and at the same time work toward improving the fiscal situation of brazil. >> the autonomy of the central bank was a campaign issue. how would international investors respond? >> the independence of the central bank is a key element on ing the confidence of international investors. as i mentioned before, it will not the and easy to. not only on the regulator of the price, but the impact currency might have on inflation. it will be key for investors to see what the new administration

will do to manage this very critical situation and autonomy for the central bank. thes you know, brazil has but theow unemployment, economy has posted the slowest growth in more than 20 years. is the investment rate status in jeopardy? >> i would say that investors might be concerned, especially those investors that are restricted by the guidelines that the agency puts forward. forwithin blackrock, instance, we have a long-term perspective on our investments in brazil and the overall latin american region. as a short-term challenge, but we do not in any r lookings leaving o

at the brazilian situation in a different manner. we see opportunities in the country. thank you for your time. we appreciate it. stay with us, bottom line continues in a moment. ♪

>> at the museum store in bba, visitors are refused entry if they try to pay with cash. the former front man is trying to lead the way to a cashless sweden with a hope that the rest

of the world will follow. i am standing right here in museum.t of the abba to stayple tend for a while, looking at the outfits and the vinyl records we have. you cannot pay your entry with cash. sweden, we have our own current very >quickre to adapt to new technology. we would be ideal to adapt to cashless. the whole idea began when my son was burgled. i thought what would happen if we were in a cashless society?

what would they do with that smart phone or computer if we cash?not make it into the more i think about it, i see goesits for a society that cashless. i want to make an example. i thought this museum should be cashless. the economy today is difficult, and we're going that direction whether we want to or not. take away the paper, take away the metal. nothing is going to happen. it is an abstract symbol. museum in stock of where they could go look at coins and bills. that should be the future. bba museum in

stockholm. stay with us. ♪

>> get the latest headlines at the top of the hour of bloomberg radio, streaming on or tablet, and at bloomberg.com. that does it for this edition of bottom line. thank you for joining us in on the market's next. it is 56 minutes past the hour which means that bloomberg television is on the markets. caught up on where stocks are trading with an hour left to go. we want to show you the picture for twitter.

shares are plunging, off by about 3%. is social media giant expected to report earnings after the closing bell. what can we expect? analysts are asking if they will top estimates and impressed the street. joining me now is the stocks analyst for bloomberg. >> one thing you can always expect is a pretty move in the stock after earnings, whether they are good or bad. in the three years as a public company, they'd moved an average of 18% the following day. >> the after market action gives you a good indication. >> right. you will see instantly reaction to the earnings. analysts looking for a good number on sales. million. to about $350

gap methem to report a loss of about $185 million. willver they report, and definitely be an interesting reaction. you perhaps see the third-quarter sales could be moderated. >> still pretty strong growth for facebook and the average estimate is about $3.1 billion. earnings release expected to toelerate -- really expected accelerate. the average move for facebook since it went public is almost 10% in the day after its earnings. that is either up or down. the options volatility levels on facebook or implying about a 7.5% after this latest earnings.

>> as a category, social media stocks look to have done pretty well in the third quarter. >> facebook is doing pretty well for the year. twitter is not so much. the growth is certainly there, both topline, at four facebook -- and for facebook the bottom line earnings. about 213 s&p 500 companies 80%.reported close to >> generally, more beats then missed earnings estimates. expectations have risen, especially in the last week to 6%. five percent. so so far it has been a pretty positive quarter.

>> it looks like the trend is going to be pretty good for the next quarter. street smart is next. ♪ >> welcome to the most important hour of the session. i'm matt miller in for trish regan today. investors keeping a close eye on oil, supplies outpacing demand, sending prices dipping below $80 a barrel, or at least they were at one point today. counting down to twitter earnings after the closing bell, and here to walk us through the closing bell and the ecb stress test, a currency manager. "street smart" starts now.