>> from bloomberg world headquarters in new york, this is bloomberg "bottom line." the intersection of is this an economics with a main street respective. to our viewers in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. julie hyman is watching cable stocks after president obama's comment on that neutrality. tells usy holliday about efforts to fax track a

vaccine for the bolo -- fast track a vaccine for the ebola virus. here's a look at the top stories this hour -- president obama says internet provider should not the allowed to cut eels with online services to move content faster. theident obama says internet should be classified under a public utility under the communications act. click the sec is a independent agency and this decision is theirs alone. at the public has already commented nearly 4 million times asking the fcc to make sure consumers, not the cable company get to decide which sites they use. americans are making their voices heard and standing up for principles that make the internet a powerful force for change. asresident, that is what i will be fighting for. >> the president's statement puts them in the middle of a debate with the industry which wants little regulation the

federal medications commission. continues his visit to china where he talked trade and the economy. mr. obama arrived in beijing for the asia-pacific economic cooperation forum. the president will try to boost talks on a specific trade deal, the agreement covers 12 countries but not china. this was the president must first stop on a weeklong trip to asia. dealing with a frenzy of online shopping is china marks singles day, the popular date of november 11 represented ones.r day, tome to join this make this a big day not only for china but for global consumers. >> singles day 2013 was a big one for alibaba.

bigger than cyber monday here in the united states. it is a signal the turnaround plan is gaining momentum. mobile sales fell .5%. analysts were looking for a drop of 2.2%. the midwest is getting hit with heavy snow and minnesota is preparing for between eight and 12 inches of snow while chicago is expect to earlier than usual winter weather. it also means flight delays over the next few days. that is a look at the top stories we are following this hour. more on this week's apec summit. carlos iteris served as -- served underrez president george w. bush. welcome back. always pleasure to see you.

talks to reach a deal on the transpacific partnership have been bogged down because of disputes between the united states and japan over market access for their respective major industries. to dooes washington need to break the gridlock? >> the first thing the president needs to do is request trade or motion. been a sense that this is a big priority for him. the big elephant in the room should be this free-trade area of asia. china's vision is to unite asia under a trading bloc. they are building roads coming down through vietnam, laos, cambodia and myanmar. this is a free-trade agreement without the u.s. and without the u.s. dollar. we should be focused on that and i'm not sure tpp is our answer. but the quicker we get it, the more we will be ready for it.

we are grossly underrepresented in asia. we'll he have a free-trade agreement with asia and singapore. but we do not have agreements with other southeast asia countries. we could be doing a lot more. we have made our bed and we have to bring tpp to the end of the line. if that includes japan, that is great, but we need to decide if that's going to include japan or if we go at it alone. the world is regionalize again we run the risk of getting cut out of asia unless we have a solution. >> president obama previewed his upcoming meeting with the chinese president. mr. obama said the u.s. welcomes the rise of a prosperous, peaceful and stable china, but

does that translate into economic benefits for the united states? >> now that china is on the scene and that is a reality, we cannot go back to pre-wto days. we do not want to go back to pre-liberalization days. we have to be more aggressive and increase our competitiveness all stop we've got to be cutting free-trade agreements. china is being very aggressive. as we look at the world, it is regionalize again we need to establish a strategy. we need to get more imperative in the u.s. we have tremendous resources we are not taking advantage of. china is in need of fossil fuel. we are not going to turn china back.

focused one we are competitiveness as a number one priority. >> let's segue to u.s. politics. the president's trip gives him the opportunity to reassert his authority after democrats were taken to the woodshed in the midterm. >> it is a great question. you cannot deal with perceptions in one meeting. you cannot deal with perceptions with one speech. people are watching what decisions we make. watching that we do regard our leadership row seriously and aggressively. regardless of what they fear, the u.s. has pulled back. we have got to demonstrate we are serious about taking a leadership role and serious about being out there in the world.

the fact have not had a free-trade agreement in si years signed suggest to the world we are not really interested. we can let china cut their deal with the rest of the world and the u.s. w't be involved will hep >>resident obama says will issue an executive order easing the threat against the poor tatian against immigrants in the u.s. illegally. if the president acts unilaterally, he would be poisoning the well for other issues. is there common ground to resolve the immigration debate? we need immigration reform, i agree, so the effort is right and good for our economy. worries me is the political reality is that the more the president tries to do through executive action, the more of a backlash there will be. i fear a cotitutional crisis.

the president issue something and the senate and house vote against it and once again, in the middle, we have immigrants. the president is doing this with a view towards 2016 and not with a view toward immigrants. republicans cannot continue to dismiss this by saying no amnesty or border security first. i think republicans have an obligation to do this. both sides need to come together, if not, we will have a huge crisis on our hands and we will have a huge immigration problem. >> mr. secretary, always a pleasure to have you on the broadcast. coming up, the cloud race. we will look how i software maker went to compete against giants i could google on the flight to the cloud. ♪

>> welcome back. leaders from the technology industry are meeting in california for the annual tech a focusconference with of how technology transforms business and society. emily chang is there in half pat bay with the -- with guilty. herewonderful conference in half moon bay. the ceo joining me now. it's such an interesting crossroads in the world of technology. businesses are going straight to the crowd and many of them bypass the tools you offer. how do you find new customers? >> clearly, we see our task is helping our existing customers move to the cloud as well as capture these new customers

going to the crap -- going to the cloud all stop one of the strategies is to be an aggressive layer and what we call the hybrid cloud. asia and weack from announced our service in japan and a partnership in australia and progress in china, clearly participating in both ways. as big as google are doing things differently and trying to get around the tools you offer. beyond server virtualization, where else are you gaining traction? >> first, virtualize the whole data center, the network and the storage and deliver it through a layer of management and automation to take people out of the process and make it more efficient. then move from the data center to the devices. we made a big acquisition around air watch.

mobile devices where the world is moving to, business is doing great for us. >> everyone here at this conference want to know why are you not separate companies? out a clear view that a combination -- we see ourselves as fettered together some a tumultuous waters we are going through and being better align on our strategies, leveraging structure between us and the technologies and whileng them together also offering customers choices and flexibility along the way. we believe it is the right strategy and one that will help us see through a tumultuous time in the industry. >> can you envision a day when you are separate companies? mark andreessen thanks every older bigger technology company at some point breaks up. how do you avoid that fate western mark >> mark and i have

crossed swords on numerous occasions. we have had some good points of disagreement in the past, but in this regard, we see that there are changes in the industry and we have seen some split. with these companies, we are better together and are quite committed to cs through a changing time and high-tech. lex why is it better for customers? >> customers can choose to work with one of us while not working with the other two, but they also get the benefit of us coming together. customers have said we want you guys to work closer together and these are the largest i.t. companies in the world working there strategies to transition. investorse activist banging on your door sayings lit up. how much attention do you pay these guys? >> it's largely not an issue for us.

it's a question to the emc board. and ourur team customers to focus and execute all stop emc has to decide the best route and respond to shareholder coerns and setting a multitier strategy they think will be successful. >> and you say you are better together but is this something you guys are thinking about? >> five or 10 years, who knows? but for anything in the foreseeable future, this is the best way. cto atwere the first intel. you know better than anyone how difficult it is to innovate at a big company. what sort of lesson are you taking from your career to make the chge? >> is a critical point. one of the things about the federaon structure is each one is able to innovate and we are able to acquire the best talent

and innovate internally and acquire companies on that leading-edge of innovation. not letting the bigger structure help them too much while still enabling them to accelerate their position in the marketplace. >> andreessen argues innovation can be better once the company splits apart. do you think you guys will revisit this? >> i think it's the responsibility of the board to keep looking at those kinds of questions. growing invating and each of the segments ithe marketplace and attracting the best talent in the industry and doing some really cool things. >> back to you. better together for now. much.nk you th so when we return, julie hyman will have a monday on the markets of date. shelby holliday is back from a visit to the walter reed hospital of research to learn

about a promising vaccine for ebola. details when we come ba ♪

>> fears about ebola in the united states have seemed to six sided, but trying to stop the virus in west africa continues. vaccines and therapies could be helpful if approved, but in order to use them, researchers must clear a number of regulatory hurdles last all stop shelby holliday traveled to the walter reed institute of research where a human trial is taking place. >> developing a vaccine typically takes around 10 years and can cost up to a billion dollars. as the epidemic ravages west

africa and spreads into the western world, researchers are rushing to find a cure. an infectious diseases war. the need for these countermeasures is more keenly felt thathis point in time. rex here at the army institute of research, doctors are fast tracking human trials of a promising vaccine. about six weeks what would normally take six months. so far, the animal a that has been outstanding, protecting 100% of monkeys run ebola. but there is no ebola virus in the actual injection. virusd, it contains a cow . >> as it replicates as a live virus would, it puts on a coat that looks like ebola. it mounts a response and that response will be renumbered, we hope. the biggest challenge for

researchers is they cannot determine efficacy by exposing people to ebola during the trial process. only be testedan for safety. >> if you don't go through this sting and you skip steps, you put people at risk for harm and put out products that may not work and may make the situation worse. >> the doses are bumped up and volunteers are monitored for side effects. rex we are watching for safety signals. so far, the vaccine appears to be safe and strong preliterate data is expected, but even if it moves quickly through the clinical trials, there is no guarantee the vaccine will actually work all stop that is the million dollar question -- will we have effect is vaccines for this outbreak. it is difficult to tell. >> shelby holliday joins me in the studio.

what areccine is safe, the steps to get it approved? >> if we get the preliminary data back, there'll be bigger safety trials abroad and there could be phase three efficacy trials. while these are going through the regulatory hurdles, there are big challengers -- big challenges for the producers. they have to manufacture a lot of these and manufacture them at -80 degrees lsius. you have to get it from here to west africa and there are a lot of challenges in the way. >> and you have to get it there in time to help. >> that is the big question. is thise scenario epidemic and and we don't have to do the vaccine. ut they are going through these regulatory hurdles because they want these things approved if we see another epidemic. >> when wl we know if it is effective? >> that is challenging. it is not safe enough and is not

effort -- not ethical to give someone ebola whether it works. they are looking at trying this on medical workers, gravediggers, people who are exposed to ebola, but that might be one of the most challenging things, determining whether or not it works. >> thank you so much. is on the markets. julie hyman is standing by. >> take a look at stocks right now. we are seeing them rally -- not a huge rally, but the dow and s&p are trading at records once again as investors weighed what is going on in the economy. in terms of movers, you've got to look at the cable companies today after barack obama called for whate said are the strongest possible rules to protect the open internet. a regular he appointed as the fcc -- he did trigger the decline in these cable stocks --

the fcc panel would need to approve the rules he is proposing. we will have more on the markets in 30 minutes. ♪

>> welcome back to the second half-hour of "bloomberg bottom line." i'm mark crumpton. all week, we are looking at the theme of risk in the economy. the meeting of the security industry and financial markets association began here in new york. it route together leaders of the research industry with members of the media. mr. benson, welcome to bottom line. thank you for your time today. in your speech this morning, you

said "policymakers have an obligation to consider the cost of impact and redundancy of new rules-based on empirical evidence. what are your members telling you about how they are able are not able to navigate these new rules? a couple ofn instances, we are seeing situations where we have conflicting rules between agencies and conflicting rules in the cross order space where for instance, under the westruct set up right now, could have u.s. swap dealers having to comply with certain rules from the u.s. and rules of the host countries where they operate all stop we are seeing a situation where we see what we would call the gold plating of rules coming out of the federal reserve as it relates to large and unclear swaps. these are things that while many are still in the rulemaking process, we are concerned about

the trend line and we hope regulators will take that into consideration. >> as we see more impact of dodd-frank play out in the market, which areas have benefited and which areas are still being hindered? space, wederivatives are going to see the central wearing come into play and see areas on the buy side with respect to interest rate swaps where the dealer community has come together to improve prophecies. that is spurred on in part by we movenk, but as through this implementation process, we are seeing firms pull back from the amount of inventory a are carrying and their capital costs are adding additional burdens. notwithstanding the fact that

you need higher levels of capital. awe could only get worse move forward with a rule implementation. >> mary jo white and my colleague stephanie ruhle discussed high-frequency trading and chairman white said clearly the markets have an affinity and technological changes, particularly the equity markets. but she continued we wanted to optimize the level playing field, fairness, debt and quality for every way for investors and companies raising capital. what are your members telling you about high-frequency trading? is it too fast increasing the risk of malfunction? we came together across the organization this year to come up with concrete goals and recommendations on how we think you could improve market structure.

chair white is correct. equity structures in the u.s. are light-years more efficient today. certainly the retail investor is getting the benefit of that efficiency in terms of execution and price, much that are than they were 10 years ago. notwithstanding that, we know the markets are much more fragmented and complex will stop that runs the risk of undermining confidence and that is the worst thing we think could happen. that would include things like upgrading and making sure everybody has access to the same data at the same time. those things would go a long way toward bolstering investor confidence. marketsl financial

buckled and investors started pouring into u.s. government bonds and yields were plummeting. at the bank dealer of nova scotia told bloomberg news he saw what was coming, so he turned off his computers and executed client orders individually over the phone. >> no one is quite sure yet about what has happened in the treasury market on the date you are mentoring -- they you are mentioning. we are hearing that inventories are down and market making capabilities in the treasury market are that much more difficult. something is regulatorsnd the industry are taking a hard look at to see if some of the policies we put in place are having a negative impact on the treasury market and fixed income market more generally. -- sit month, system the

fma issued its regulatory guidance. is this that are in the form of a uniform policy or what a public-private partnership a better dividends? take both.ing to the industry has to do a lot but we cannot do it alone. we need to have a partnership with our regulators will stop our members have nearly a dozen regulators they have to deal with from the federal and state level. we are hoping we can have a uniform application of cyber security rules instead of having a patchwork of different rules. this is something that needs to be a partnership that could be a regulation going forward. we are encouraged with the partnership we have right now. >> thank you so much for your time today. we appreciate it. >> thank you.

>> a shakeup at the department of veterans affairs. we will look at secretary robert mcdonald's a-list effort to fix the agency went "bottom line" continues. ♪

>> breaking news -- mcdonald's is recalling hello kitty whistles because of choking and aspiration hazards. they were distributed from october through the first week of november this year. they came with happy meals and mighty kids meals. another 200,000 in canada. they can exchange it for a free replacement toy or bag of apple slices. time for today's latin america a report. the brazilian currency rose and -- rose the week -- rose the

most in a week after announcing wagers thatteam and there would be an increase in interest rates. there's optimism the new finance ease thewill help regulations that led the country into recession in the earlier half of the year. up next, we begin a special series on the year ahead. will the future be familiar to the fans of "star trek -- the -- the nextial and generation?"

>> as we near the end of 2014, our reporter traveled all over the world to look at the technology innovation set to disrupt their lives in 2015. remember the holiday on "star trek -- the next generation?"

bring virtual reality into rooms using wraparound screen that motion projtors. this is the year ahead. >> you are getting inse the mental image. this roger act is important because this can change the paradigm of how we deal with 3-d . of high 3-d. rex on the top four of the university of montréal's school virtual world the is slowly merging with the real world. is the hive 3-d which stands for hybrid virtual environment 3-d. hive create a virtual environment by projecting it into an entire room.

right now, the technology is primarily being used by design firms, architects and automakers. hollywood animators are also getting on board, using the technology to storyboard fully developed animated worlds. drawing in 3-d is a much more radical concept and you might think. let's use the example of tryi ann you try cube, you use approach that forces perspective and tricks your brain into thinking it's seeing a 3-d object when in reality, it is flat. totoday, when you go thistecture school, we use to learn from the renaissance. we are in 2014, so we are looking for e noal way to represent the 3-d world will stop >> creating the same cube in hive yields left like drawing a shape and more like building an object.

will notice isou there is no need for special headsets or glasses. you need to wear over your cut from the reality. >> that is hybrid hard -- it is the real you in a virtual space. you don't have to be virtually represented. not just you, but anyone around the globe can connect with this virtual world. on this particular morning, we were connected with a colleague in france will stop >> collaboration is part of this system because it exists on the server. you can happy all separated by oceans, so here, you can be at a construction site were lecturing. you see the projects, you are inside the project and able to see i'm moving that wall.

around $50,000. less than competing systems that can run up to $1 million. a lot of the hardware used is off the shelves. >> we focus more on the user experience rather than the technology. we design a better user experience, that is more relevant. >> hive is not about hardware, it's about interacting with the world around you, both ritual and real. rex where does the technology go in five years? be interacting with a system and only use the phone. >> is the latest expression of virtual reality and telepresence. those are two buzzwords we have

been hearing a lot about in the last decade or so. maybe because they have never really fulfilled their promise will stop at the kind of creativity that can be unlocked when people are actually working together and collaborating will require a whole new set of inking and a whole new set of rules. there, really is thing that may be lagging is us. make sure to tune in for the year ahead special airing on wesday, november 18, where will look at 10 and of nations that will change everything you know about technology, food and vision. the department of veterans affairs is about to have the biggest reorganization in its history. rex secretary mcdonald is expected to announce a big reorganization. onalluded to some of this "60 minutes last night. he said he had a list of

potential he a thousand, so it could be a seismic shift all beena lot of people have calling for this, given the controversy we have seen. it is a trend day tomorrow and we will be talking with senator john mccain who is out with a brand-new book that looks at some of the lives and a variety of individuals who have served in the armed forces. about be talking with him this and whether or not secretary mcdonald is doing enough when it comes to senatorg all stop >> mccain is going to be deeper jump -- the presumptive chairman of the armed services committee. right here on this network critical of the administration, feeling it's not doing enough when it comes to fighting islamic state. the president has announced he fight primarily driven b is doubling the troops going locals. i'll ask senator mccain whether overseas but we have no ground we need to be more involved. efforts being engaged and it's a >> what is the committee going

to look like when john mccain is in charge question mark >> we >> would out all stop it be fair to call him a hawk? x i think you could effort only call him a hawk on defense. he is consistently a hawk, someone who was a pow and cares about soldiers and their lives. that as wenticipate reflect on veterans day. >> again, one of those holidays in the u.s. where we take pause for the men and women who serve in the u.s. armed forces. "street smart" is coming up on the top of the hour. we have another check of the market movers on the other side of the break. we see the markets in positive territory this day before veterans day. was quote continues in just a moment.

"bottom line" continues in just a moment. ♪

>> get the latest headlines at the top of the hour and streaming on bloomberg.com. that does it for this is -- for this edition of "bottom line." i'm off for the next couple days. matt miller and olivia sterns will fill in. >> it is 56 past the hour, that means bloomberg is on the market. but look at where stocks are trading about one hour from the closing bell. stocks holding onto gains, not large ones. mean a record for the s&p 500 and the dow jones industrial average. we want to highlight one mover for you today -- alibaba trading at an all time high, actually up for the sixth straight session.

70% sincee surged they went public two months ago. the company is carrying -- is gearing up for china's single day tomorrow. it's the largest event. there are some etf's that own the stock. we have a look now at these names. we could see the single day be a catalyst here and a huge day for alibaba. if you want to hedge your exposure not just by directly, you can do it through an etf. doneurious how they have -- let's start with the crane shares china internet etf will a bit of as etf is hidden gem. it tracks just internet companies and about ready for our domiciled in china and do business there but list in the

u.s.. 12% rating and that has given it a recent bump. back over theook past year, this etf is on fire. it is double the second-best , so young china etf have an etf that is -- that has essentially left the group will got about $117 million in assets and is definitely a niche lay. it is also jumpy, but you get so it is like alibaba, a growing area and a lot of these companies get missed by the big index providers because they have the primary listing in the u.s. yet they are chinese companies. >> let's talk about the all china etf. this is presumably a broader

basket of chinese stocks? a very specific play and this is a broad play. alibaba.2% it's the only china market etf to hold alibaba. it is the first and only all china etf. all of it sounds confusing, it's exactly why this is a good product. it's like hitting the easy button on china and getting everything. the whole area. , so only got 7 million that's a bit of a mystery. my theory is it's ahead of its time. one should grow pretty steadily over the next few years. rex thank you so much.

talking about etf that hold alibaba ahead of single day. ♪street smart" is next all to theome, everyone, most important hour of the session. this is "street smart." investors are speculating that the u.s. economy is strong enough to withstand the global slowdown. later on i will be joined by senator john mccain for an exclusive interview. he has a new book about americans in combat and we will talk about what to expect in congress over the next two years now that the midterms are over. "street smart" starts now. ok, everyone, here's a