to junk. what is next for latin america's largest economy? >> look hide the scenes to learn about the latest development of the iphone 3-d touch. mark: the cost of college tuition keeps climbing thanks in part to an athletic arms race. we will have the details. good day from bloomberg world headquarters in new york. i am mark crumpton here with olivia sterns. olivia: we are two hours away from the close. you can see some green on your screen. all the major averages up i more than 1%, the dow up 172 points right now. next week we do get the september fomc meeting.

the fed will in fact raise interest rates at that meeting. do we have a treasury board? mark: i thought we did. olivia: we are having a graphics problem. let's show you commodities. i believe west texas getting a bit of a bid out there. the appetite for riskier assets seems to be picking up. mark: we are taking a look at crude . crude up 3.5%. taking a look at brent, brent crude up 2.3% this afternoon. both of them trying to get up towards that if you dollars a barrel mark. tovia: it's two dollars three dollars gasoline across the country. i like to see that. the u.s. senate is pushing towards a critical vote on the nuclear accord with iran.

democrats in position to hand a major victory to president obama. this afternoon they are planning to put up the 41 or more votes needed to block a resolution with a filibuster. that would present a final vote, making a presidential veto unnecessary. house speaker john boehner says president obama failed to give congress the required background on that deal. >> there are concerns about whether the president complied with the review act. clearly our members do not believe the president has complied with the law. efforts ofte the house republicans, it appears unlikely they will deny president obama a win on the iran deal. olivia: fewer americans filed for unemployment benefits last week. jobless claims have now been under 300,000 for six months straight. companies in the united

states are finding it hard to fill jobs. they plan to boost wages by more than 3% in the next year to attract workers, according to the duke university cfo global business outlook. olivia: ellen pao is ending her bias lawsuit against kleiner perkins. firmad accused the capital of gender discrimination, a case that was closely watched by silicon valley. claims inected pao's march prayed in a statement, pao said she will pay the firm's legal costs. jpmorgan says home prices will raise this year more than forecast. the bank says rising demand and fewer distressed sales will keep home prices going up. olivia: consumer attitudes in the u.s. held steady last week. perceptions about buying were offset by more optimistic attitudes about personal finances. mark: newly minted late show host stephen colbert says elon

musk should run for president heard -- president. musk appeared on the show. colbert asks if he is trying to save the world. stephen colbert: are you sincerely trying to save the world? to do goodi'm trying things. stephen colbert: you are trying to do good things and you are a billionaire. that seems super hero super villain. you have to choose one. muska: i'm trying to do -- eloin mn musk: i'm trying to do useful things. that's a look at some of the top stories we are following at this hour. brazil is junk again. s&p downgraded latin america's largest economy credit rating today. --a and schley learn that lisa spoke about why that cut is happening now. the outlook tose

negative, which really reflected our increased perception of increased risk for execution for the government's economic plan, be it on the fiscal side, it is in particular risks stemming from the political environment, the economic environment that has been impacted importantly by the corruption investigation. olivia: the bloomberg news reporter explained the rating cut. the immediate implications, as the finance minister said around midnight when he gave interview to local tv, is less investments. there are some people who can't have junk rated holdings. some of them will not wait for a second downgrade to move.

we will see investment deteriorating even further and especially move of the currency. we have seen the bond market reaction accordingly. er, is there a connection we can draw between what is going on in brazil economically speaking in the performance of its financial markets or instruments and what we see happening across the ocean in asia? >> this is a big part of the oil trade. the slower oil price is having an impact. every country that relied heavily on oil is now in trouble. bia've got iraq and saudi ara having trouble. even china is having trouble. it is a gradual phenomenon where all these countries that were big oil producers are in trouble and it's filtering on through. >> i want to ask you what this means for president dilma , who recently survived a challenge in an election, and yet here she is facing this downgrade.

have we heard anything from the leadership of brazil? what has been the reaction? >> both the finance minister, planning minister, and rousseff spoke yesterday after the downgrade. they said the government will keep working towards fiscal [indiscernible] and sending the message that they need congress to pass the measures they are putting forward. they are doing a political coordination meeting right now. it remains to be seen what they can actually put forward and a cop which. petrobrasndal around seems to have become a major impediment to the finance minister. he wants to get these reform measures passed. he wants the brazil fiscal situation -- and presumably rousseff does as well -- but rousseff is under some much pressure from not only the political opposition, but from

members of her own party -- it seems there is gridlock down there. >> there are a lot of politicians that have been implied in the petrobras scandal. it's making the situation that much worse. the president has about nine months into the government her approval rating is at 8%. if the downgrade going to motivate anybody, whether in the government or opposition, to change behavior? someat is the hope of analysts, that this will be a wake-up call because it is serious and needs to be solved right now or things will continue to get worse. some analysts are saying this will weaken further because people brought in to improve the which she grade -- has failed to do. some lawmakers will say, if this is done we do not need a triple adjustment, let's just try to get the country out of recession. mark: still ahead on the

bloomberg markets day, a government job that pays way more than being president. we will tell you what it is. ♪

a look at the markets right now. volatility is still the name of the game. today as you can see, it is on the upside. our major indexes still hovering near session highs after the

broad selloff we saw tuesday. the nasdaq is the biggest gainer. sessionsthe last 14 through yesterday, the s&p 500 has closed with a move exceeding 1.3%. earlier today, we were closer to that. still up by 1%. looking at individual stock -- let's check out apple. after at stake september event yesterday -- you can see in the past few days, in the past day, it's gaining ground after investors did not seem to thrilled yesterday over those new iphones as well as a new ipad pro. apple is the biggest contributor point wise to both the dow and the s&p after being among the biggest laggards yesterday. you can see its biggest jump happens just in the three months before an unveiling about 15.8%

of the game there. the gains become smaller one month in. right at the unveil or launch, 3.8%. after the event, the stock usually falls by 2.5%. one interesting thing you will realize is that today bucks the trend. the stock is higher. that research coming from the -- from paul hickey. let's take a look at these movers right now. at has put forward a $10 offering, fueling speculation it is prepping for an eminent acquisition. health care is the best performer on the s&p right now. back to you. you.a: thank really interesting. apparently we should be buying apple stock. let's take you look at the

top stories we are following at this hour. there is a big recall to report from fiat chrysler. it involves three separate defects involving more than 1.7 million trucks. ram pickups made from 2012 to 2014, one of the problems, a wiring harness that may short-circuit and set off an airbag. chrysler says it knows of two injuries caused by the problem. olivia: for the second straight month, american spot more cars than the chinese. the stock market collapse in china kept potential car buyers at home. mark: restate his benz is now the world's second-biggest luxury carmaker. receipt is outsold audi. -- mercedes outsold audi. mercedes was the only one of the top three luxury carmakers whose sales rose in china. on to land race is

one of the highest paying regulatory jobs in washington, d.c. the position, chairman of the public company accounting oversight board. mark: while the job may not be high-profile, it pays even more than being president of the united states. if michael's spoke about it on bloomberg tv earlier today. >> the job is chairman of the public ebony oversight -- company oversight board. an entity created by congress after the accounting scandals of the late 1990's, early 2000's, when enron and others were have found to have cooked their books and auditors never blew the whistle on it. entity. created this it effectively regulates firms that audit the financial statements of public companies. who is the chief regulator

or auditor of accounting firms currently and why does the job pay so much? >> the chairman is a republican. -- itlary, over $600,000 is really high relative to even other financial regulatory agencies. it is high because there is the notion that you have to compensate the chairman really well and the board members really well in order to keep them independence, to keep them from having some temptation to go check out of these jobs and work for the accounting industry or other industries regulated by the pcob. pimm: who appoints the head of this agency? michael: the securities exchange commission, the five commissioners of the scc appointed chairman and the other board members, the pcob. the pcob is answerable to the

[indiscernible] for the$600,000 government's top accountant, $200,000 more than president obama is making. mark: it's washington. you sound shocked. olivia: it is cheeky that the top number cruncher is getting the biggest salary. you are trying to incentivize these people to stay in government, not go to the big accounting firms are go back to wall street. mark: some of the stories we have been doing the last couple of weeks, you have the defense secretary ash carter in silicon valley. emily chang sat down with them. now you have government trying to incentivize people to work for government. probably not going to happen. well, maybe. coming up on the "bloomberg market day," the cost of college tuition keeps climbing, thanks in part to an athletic arms race.

mark: live shot from midtown manhattan on this thursday, september 10. overcast, rainy. still sticky, still nasty. summer's last gap. class is back in session at colleges across the united states. students will enjoy many new athletic facilities as fall sports get underway. sometimes the cost of construction is covered i current or future students.

the college hockey season starts soon. these student athletes are top-ranked and only too happy to show off their skills. the team is one of several of the athletic programs of the upstate new york a school, where this old aircraft hangar of an arena has hosted games for more than 50 years. colgate may be a small liberal arts college, but it is spending big on its hockey program and beyond. constructing a new, $38 million debt and ace d by lot of alumni donations. >> if you are talking to prospective students and they come to visit, and the front door is a sports arena in which they are going to compete, and it is not of the highest caliber, you are likely not to get them. reporter: undergraduate tuition will ultimately underwrite 1/3 of this facility, where attendance costs have jumped 17%

in 5 years. >> we have a tremendously connected and passionate alumni network. rising education costs pressure elite colleges to compete in nonacademic spending. like a hockeyity rink will help us recruit those students and differentiate ourselves from other institutions. facility is so important to recruiting. this athletic's arms race can make universities invest more in projects with uncertain returns. does a school like colgate need to spend $40 million on a new hockey rink? >> certainly doesn't need to. they think it brings them greater interest from alums, it brings the more donations and applications. it's not clear that that ever happens. in 2013, dozens of colgate professors demand the school change its priorities in

an open letter written by an english professor. >> there was a strong feeling among a lot of faculty that there needed to be some rebalancing of sports culture and colgate with academic culture. it has taken over a lot more space and a lot more resources than it had certainly when i was playing college sports. some facultyle continue to focus on finding that better balance, colgate's hockey players can look forward to a first season in their new home. and if it helps their , thermance on the ice alumni that funded it will receive their own award. bragging rights. bloomberg, hamilton, new york. amazing, college costs up 17% in five years. you are from the u.k. it must blow your mind. reporter: i walked out there and

went to a great college in the u.k. to see they are building a $40 million hockey rink. we went to tulane in new orleans, where they just finished a football stadium. to me, that is mind blowing. for the kids it is a lot of fun. olivia: but you're not going to college to have a lot of fun. reporter: some of them are. mark: how does this impact the students' daily lives? reporter: you come back to college at the start of this year, you see the new facilities and it's exciting. what is really interesting is to look at the impact on fundraising. when you don't have money coming , arecademic initiatives you missing out on other academic hierarchies? -- priorities? donate moneyalumns to these schools to these big sports initiatives they can put their name on, that does cannibalize money that would go

to initiatives like a new physics laboratory, a new library. it's difficult to prove what effect that has. olivia: surely it's got to be really annoying for them that they can't get their new research lab built when they are getting these fancy new hockey rinks. reporter: and colgate, a lot of faculty wanted to have a new performing arts center. is not going to bring in revenue, but it is going to bring in alumni donations. mark: it will also bring in debt. reporter: they have to finance that debt. depending on how they choose to do that, that can impact tuition fees. they have to expand the budget to meet that shortfall. they try to get it from other alumni. but that's not a sexy thing to sell. olivia: when it comes to schools like tulane or even bigger schools who spend $100 million on a stadium -- it goes back to

the conversation about whether or not the athletes -- $220 million on a new football stadium trade people are saying, do we need it? a lot of them are saying, probably not. mark: hopefully with the new stadium comes new coverage. reporter: at least with football if you're in the right conference, you can bring money. a small hockey rink at colgate will not bring them any revenue. olivia: thanks so much. mark: what's coming up? olivia: i will be sad to see you go, mark. you will go inside apple's design studio. the development of the iphone 3-d touch. ♪

great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. olivia: let's get you straight to the stories making news at this hour. a new republicans in

survey are supporting donald trump's presidential bid. ben carson is in second place with 19%. 15 otherhe party's candidates are in the double digits. on the democratic side, bernie sanders leading hillary clinton for the first time in iowa. the point of that poll shows him a percentage point ahead, well within the margin of error. donald trump may be the front-runner, but not everybody is a fan. a rival for the gop nomination blasted him yesterday. >> are we going to depend on our time tested, proven conservative principles, or are we going to turn to a man who believes in nothing but himself, a narcissist, egomaniac, unstable, and serious man -- unserious man? perhaps taking on the

front runner may be a way to gain some attention. oogle is taking another stab at mobile payments. the company's answer to apple pay rolls out today. google's first mobile payment service, google wallet, will now become a money sending app. south africa say they found a previously unknown relative of humans. more than 1500 [indiscernible] in the skeletons of gifting individuals were recovered from a cave near johannesburg. scientists are not sure about the age of the remains. those are your top stories at this hour. in this week's bloomberg businessweek, the editor got a

behind-the-scenes look at what it took to make the latest feature on the new iphone, 3-d touch. you will share his experience at the design center with bloomberg has erik schatzker. usually it's a bit of a software upgrade, something here and there. the s years. there's a new apple tv there's a giant doggie door sized ipad. .here's a lot of stuff i saw a lot of that early and i heard how that came about. what they are really excited about is 3-d touch. into the design studio and heard the making of a feature which is unusual for them to reveal. erik: it is pretty clear that apple believes that 3-d touch is a big deal. are they right, or is it some kind of an incremental thing, not really a game changer like the curved edges on the samsung

phone? >> it is more than the curved edges. multitouch -- they introduced in 2007 with the first phone, which is when you pension and move your fingers around, it was a game changer because nobody -- pinch and move your fingers around, it was a game changer because nobody did it. it's a pretty big lead. instead of constantly using your phone to get back home, you are just telling the phone through pressure what you want to do and where you want to go and it comes up. for the first minute or two you use it, you're like, it is weird. after a couple of minutes it is very intuitive. is that i was saving a lot of time. the phone was very smart based on previous behavior about where i wanted to go. when i passed -- pressed the phone icon, it told me who the most likely people i was going to call were. erik: it sounds like the home

button may not be around for long. >> i asked them. they said, maybe. we will see. what really was clear was that they were of system with trying to make the phone -- which was pretty easy to use -- even easier to use. erik: you talked about the fact that they have a lot going on even in an odd year. longnk to myself not so ago, someone in your position visiting the apple design studio was like the kid who unwraps a chocolate bar, finds a golden ticket and gets to spend a day with willy wonka. is apple past that or are we passed that? >> -- past that? >> it's a different company. the steve jobs apple lifts a curtain and blows your mind. a very complicated company, now serving multiple ios's against multiple devices,

but it's also enormous. if you are following the company, visiting -- the thing you see consistently is they are working on so much stuff. inevitably anywhere there is a touch screen you can imagine how 3-d will be incorporated great we have already seen the force touch on the apple watch incorporated into the macs. theyhey also described -- are working on so many different ideas and so many different times that you do not know where they are going to go next. he says of himself the key is to get designers to learn new things, try new things. 80% of it may not be useful. but you never know what the right 20% will be. behind that curtain i talk about , there's an industrial design studio and things that can be great, things that can be colossal failures, but they are constantly trying to experiment

with new hardware and software. they have confidence that at some point something will come out of it. pick up: were you able to hints about where apple may go next? careful.ey are pretty is how they do it and how they manage their people, which is not in a linear way. the projects do not start with a whistle. music, whenore like you have a bunch of people in the design and engineering studios. sometimes they get songs, sometimes they don't, but they are faithful to that method. it is the thing you think any company would copy and nobody has bothered to. will,this band, if you all these people whom you spent time with, how do they compare to other management teams? >> they don't do a lot of meetings. one of the things johnny ives what they really

do is play with prototypes. they gather around with stuff in their hands. sometimes a are sticking printouts to a wall. are they are talking, they talking about product. there is little conversation around the process. they have had the same process for 20 years. ives describes the feet act process as a series of -- feedback process as a series of grunts and nods. three-hour meeting per week. down, they chart progress, they make sure they are on the same page. it is possible they will not see each other for a long time. ik: steve jobs wanted to change the world. how do these guys define success? >> it's a really good question.

now that you are the largest company in the world, with $200 billion cash on hand, it's easy to start shifting where you are. one of the things i learned from johnny ives is that he is vigilance about keeping his eye on what success has always been for apple, which is make easy, beautiful things. make things that take complicated experiences and render them simple and intuitive. he said, there's a lot of other stuff going on at this company. we are vertically and horizontally integrated great we have a lot to do and a lot of people to serve. enough faith in him with that goal that he can continue that work without any impediments. josh speaking there with my colleague, erik schatzker you can pick up "bloomberg businessweek" on newsstands starting tomorrow.

we have got the ranking on gasoline prices around the world . ♪

olivia: a we want to take a look at how commodity prices are setting in new york trading card -- trading. >> we will start with oil. a perplexing move of inventory data. you had inventories building by 2.5 million barrels, gasoline utilizationwere up, was down. we come to the end of the driving season. refineries are not using enough

crude. p, so go figure. we did visit production by 80,000 barrels a day. it was perplexing that it decided to move lower. olivia: surprising on the data. i guess we are seeing a risk-on move. it came on a day which is like the holdout on the forecast for brent. bearish news out nonetheless. you have to wonder if it is positioning that will move oil higher today. olivia: what is going on in copper? alix: it doesn't really make a lot of sense to me. could be about 400,000 times capacity. you have copper headed for its longest rally since june.

how does that make sense? olivia, part of the reason here is the relationship between commodity producing countries and their currencies. when costs are low in your country, you can produce on the cheap, therefore you will keep producing no matter what the price. there you see lower copper prices. that is the issue, and that is not resolved in the commodity market right it's a similar picture if you compare to what has happened to the real -- riyal and the price of oil. anything brazil is going to export like coffee, you will see that inverse correlation. stockton saying we are going --

the production costs have fallen so much. olivia: gold, there is this news today, the london metals exchange is going to partner with indian exchanges. stuffreally cool happening in the gold market right now in india. india imports about 1000 tons of gold, 22,000 tons of gold in household. that makes up over $800 billion. they don't want to give away that money to the rest of the world. they are coming up with two schemes. the sovereign gold on scheme, and the gold monetization scheme. one you buy sovereign gold wants, you hold them for a few years and get your money back. the other one, you put your golden the bank and make some money. if that winds up working, it could help monetize all the gold in the country.

it's a cool way of trying to use this demand and monitor their account surplus. olivia: it is interesting that there is an investment side of the gold story. i think india and i think of wedding presents. we are going to keep talking about gasoline. alix: r bloomberg visual data team put together a fantastic info graphic on the real cost of filling up. it shows gasoline prices by the country. you are looking at the u.s. the average price for a gallon of gas is $2.74 and ranks 52nd in the world. america needs to spend about wages tothei rr day's buy it. americans spend about 2% of their income on gas. olivia: joining us is the man who broke those numbers down, tom randall, sustainability

editor for bloomberg news. what is surprising about this? tom: gas is cheap right now. i never thought i would see prices like that again. the one thing surprising me is how universally across the board prices declined. since the oil price crash and since around november, gasoline prices have declined in every single country, all 61 countries. the average decline in gas prices was 15%. that is something we have never seen before. the countries where gas is pretty unaffordable -- looking at the most unaffordable a, 80%y, and that's indi on affordability level. why is that? what does that mean? tom: if you look at their price of s, that's not that high -- gas, that's not that high.

but in india because of their low wages, it makes it very unaffordable. you would have to work almost an entire day to afford a single gallon gasoline. in a lot of countries, when you have higher incomes, you end up consuming more. in india it is so unaffordable that they do not consume much of it. olivia: in france it is a lot more expensive, but they also make a lot more money. there are basically two main levers on gasoline price. one, you have taxes, which in northern europe, that is for you see the really high gas prices in norway or the netherlands. on the flip side, you have subsidies. that is what you see and countries like venezuela. 1/10 of ala it is now

penny. you can fill up a suburban for about five cents. alix: a look at the income spent, south africa ranks the highest in terms of how much of their income they have to spend on gas. i know energy there is quite expensive grade why is that? tom: a combination of relatively low wages, but they also drive a lot. unlike in india, where people can't drive it has they really can't -- people don't drive because they can't afford it. olivia: thank you so much, tom randall. now a look at our top stories we're watching for you at this hour. in new york city, chain restaurants will be rick iyer to post a warning label on menu items that have a high salt content. it is aimed at fighting heart disease.

the company that makes oreos is planning a health kit. nutritious snacks will make up half of its product wines in five years. the company says it is responding to customer demand. teen marijuana use did not go up in the first year that the drug was legally available for purchase in two states, according to a new government study. many opponents of legalization said it would lead to an increase in teens smoking marijuana, but the government report says it did not. , the u.s. including open two time winner andre agassi talks about the revolution of the historically rich man's sports. ♪

olivia: at the u.s. open it will be an all swiss semifinal. roger federer trying to make his first u.s. open final in six years. tennis legend andre agassi who won the u.s. open twice in 1992 and 1999 spoke with erik schatzker and scarlet fu earlier this morning. >> i'm not as insecure as my wife. i only needed to win it twice. you would think we would have more. there's three or four reasons for that and they are named

federer, chocolate, -- djokovic, and nadal. waysgame has come a long but i would like to see more americans come through again. scarlet: is there a way that tennis is deprived of elite male talent? the spendh athleticism, no matter what service you are playing on, you have these long, difficult -- we grew up on the hard courts. that was great in my time. we all played aggressive, we all played forward. it doesn't play anymore with the rules of engagement with the equipment, strings, and a lot of other reasons. erik: given your work in charter schools and philanthropy, you understand the stratification of income in american society. how can american tennis be as good as it's going to be if tennis remains a rich man's game? andre: that's a big component,

getting the racket in more kid'' hands is a big deal. our federation -- erik: they work hard at it. andre: things to this tournament that you have resources, but we're also a big country. we need more rackets in hands, public parks, clay courts, infrastructure, a lot of things. i can't promise you that is an easy solution. scarlet: when you watch the u.s. open, who do you root for? andre: i get to watch the u.s. open more enjoyably now. it's nice, especially at home. i love watching the intimacy of what all these people do so well, even on the women's side, really. what serena is about to cop which is really amazing. federer -- about to

accomplishm, which is really amazing. : federer was talking about facing off against you. he's 34 years old now. given the fact he is 34, would you like to see him win. andre: i was watching him last night and the reason i went out there is that it's federer. watching him make some but he looked silly last night, it is still such a pleasure. it is watching an artist. scarlet: who is going to win it all? andre: djokovic has the sight edge. federer is really playing surprisingly better than i think he ever has. djokovic is the slightest bit off, you have to look at fed delivering. erik: so much attention has been

paid to serena and how she has -- she is under compensated in money. andre: i've never heard her complain about lack of resources. until i hear her complain about it, i don't think there's much of a deficit there. olivia: that was tennis legend andre agassi there. so much more ahead on the "bloomberg market day," stocks well into the green. ♪

>> this is the bloomberg market day. ♪

olivia: good afternoon. i'm olivia sterns here again with alix steel. alix: it was quite a ride earlier. futures were lower. however, we now have a rally underway. to see in is amazing the past couple of weeks where the markets averages have moved less than 1%. a 90% move on doubt. it feels soft. one stock is apple. we got a new phone, a new tablet. even a stylist. the move was about 2.5% down. it today. seeing

there is speculation that because there was lack of buying into the announcement, it helps support it. even though olivia: we have breathing room. the research was broken down earlier. by the product launch. you look back a couple product cycles and it is three months leading to a product launch. alix: the big question for the market is, when will the fed raise rates? we're looking at the two year yield determining that. these guys do not make any sense. isone point, it hit the lie -- the highest level from 2011. these two key indicators are telling different things right now. olivia: the fed has got to get

on it. we will have larry summers from the financial times. saying, the fed needs to hold off. look at what is happening in brazil. what the fed rate hike would do, this made a lot of news, the chief u.s. economist at joint bank. he is saying actually now, he thinks october. alix: you are looking at the credit default swaps for brazil. well off the highs of what we saw back in 2008. i should point out or zillow, venezuela, it is a complete disaster, brazil presented the highest change in three months

when it comes to credit default swaps. the market is saying they are the worst off. we have two of the four companies that have their debt rated at junk. did we get to this point because of massive corruption allegations? similar because it is big commodity producing countries, and how much pressure is being added because of the huge selloff of crude. alix: now to a look at some of the stories making headlines. the senate is pushing toward a critical vote per the democrats are in position to hand a major victory to president obama. this afternoon, we plan to put up 41 more votes to block a resolution with a filibuster. that plans to reach a final vote and make the veto unnecessary. john boehner said the president failed to give congress the required background on the deal. mr. boehner: there are obviously

concerns about whether the president will comply in an iran review act. our members clearly do not believe the president has complied with the law. >> despite the efforts of house republicans, if you -- it appears unlikely there will be a win on the iran deal. olivia: the hungarian army is having exercises near the hungarian border. hungarian police yesterday detained more than 3300 people for illegally crossing the border, the highest daily figure so far this year. austria's israel operator suspended service to and hungry -- by trains arriving from hungry. alix: helen powers ending her lawsuit against perkins. she accused them of gender discrimination in a case closely watched by silicon valley. they rejected house claims in

, she saida statement she will pay legal costs. olivia: a big turnaround. andrew cuomo supports raising to $50 per hour. he discussed this today with vice president joe biden. earlier this year, the cup -- the republican-controlled state senate in new york had a last attempt to raise the min wage to $10.50 an hour. underthey have been 300,000 for six months. that is what economists associate with a healthy job market. a second straight month, americans bought more cars than the chinese bought her u.s. iron is happening encouraged by lower gasoline prices. china kept potential car buyers over there at home. death,6 years after her legendary singer billie holiday is returning to the theater. via a hologramg

which last her questions about her career. she started her career at the apollo. olivia: those are some of your top stories. just one week away from the fed policy decision and futures traders are not optimistic we will he a potential rate hike. a lift off in the past month or so. olivia: many economists are predicting the fed will reach its key rate. who is anticipating a rate hike next week, what makes you so confident given all the market volatility we are seeing, given the fact there is no inflation due to commodities that the fed will go ahead and raise rates? >> the reason is twofold. a push in the equity markets in the past couple of weeks. the pull factor has been a lot of the weakness in the economic data of china. the push factor, of course, has

been that you have got solid eta out of the u.s. you had a very good small business sentiment survey yesterday. enough of the data in the u.s. is saying we do not need to have emergency monetary policy measures. we think some of the weakness we saw in the equity markets during late august and early september was directly attributable to the equity markets pricing in the first fed rate hike since 2006. you take a look at the two year yield, which we mentioned to 2010,if you go back you see yields higher, but nowhere near where we saw back in 2011. >> they're telling you to does different stories, which creates volatility in the overall market. the equity market, we think, has discounted somewhat of the fed rate hike.

the bond market has been pricing something different across many different spectrums for the past couple of years. there was a very date -- big talk about the taper tantrum in 2013. almost immediate fed rate hikes did not transpire. there is a lot of push and pull going on in the fixed income markets and we think that is creating volatility across all asset classes. >> there is a lot of strong domestic data, indicating the u.s. economy is probably strong enough, but is the global economy strong enough for us to raise rates, to again have brazil downgraded? this is what the ims is worried about. china is slowing. can the global economy sustain a rate hike? >> that is what janet yellen has to make sure to comment on. her word in a statement after the fed meeting will be crucial, whether there is a rate hike or not. her information she is relaying on the view on the global picture will be critically important.

big surgeu have had a in globalization over the past decades, world central banks are confounded with not just governing their economies but the world as well. that is why there has been so much focus on this. this will likely be the most watched fed meeting of this generation. >> definitely excited about that one. what does that wind up doing to the high-yield market? destruction across the board but we now see high yields start to come back. track the s&p versus bloomberg's high-yield index. the orange line. what leads what and what happens when a fed hikes to the high-yield market? >> our view was changed on high-yield a few weeks ago to have a positive outlook. we saw that it is the end of may, just at the beginning of september here it high-yield threads have widened 120 basis points during that time. when you look at the segments

and sectors in a high-yield market, only three have an wider than the overall high-yield index and their associated with materials, metals, and energy. the bad news out of the commodity market has pretty much drag the entire market with it. we think that is a bright spot within fixed incomes. when the fed raises rates, does that change and if so, how? hasur investment community been holding onto a higher amount of cash pretty much the entire year. we were surprised to get to the beginning of august and not have one standard deviation move in the fix. 31 standardyou get deviation moves in the vic's index, which you can look at on your bloomberg terminal. but you get 31 standard deviation moves a year. we have gotten almost to august without even one. -- even the crisis >> and we have for? year and onree last

average, since 2009, you got three per year. we felt as though there would be an opportunity for us to reap deploy some cash and we have been holding onto it for opportunity. you need to have some clarity on the fed and the weakness in the emerging markets. one of the keys to that will be the message that comes to the fed next week. >> coming up, new polls out of iowa showed presidential candidates are head to head. we will talk about what is changing and why. ♪

>> let's go to julie hyman,

looking at these markets starting with the latest news julie:. , a report in the wall street journal, the company might be getting a new investment and is in talks to sell to private equity firms. that is, private investments in public equity, that these investments proposed its for investment spirit all of this according to the journal which cited unidentified people familiar with the matter. i could help bolster finances. but it is not something definitely happening. you can see the share has got a big spike on the news that they may come down. about 7%.g lower by recall a few months ago, there was a fraudulent filing that said a company was interested in buying a stake in the company or buying the company out right.

matt has been going on since the beginning of the year, essentially. now, a big come down returning in the shares. the share has gone down sharply as it has struggled with the poor business. we are not seen struggles in the health care industry. health care are helping to lead the s&p 500 higher. you see a rise of 3.5%. to sell $10 billion worth of bonds. its biggest deal ever. it will use the proceeds from that to finance several different things, including repaying debt, also paying dividends and funding share repurchases. biogen has also been planning what its biggest bond offering ever, again here to finance a buyback. $5 billion is the existing buyback program. shares rise to about 3.3%. this led me to think about how have the companies who do

buybacks perform? at the s&p buyback index versus the smb 500, the buyback index is an orange and the s&p 500 is in white. it is normalized to adjust for percentage changes. when you look over here, you see the s&p is above the buyback index. the s&p has fallen year to date. the buyback index is down more like 6.827%. it has underperformed. that is unusual. continue on this trajectory, it would be the first time since 2007 that the companies doing buybacks underperformed the broader s&p 500. this tracks the top 100 stocks as rent by their buyback ratio. this really could be the breaking of a trend. there has been a big debate about the value of companies continue to test continuing to buy back shares in order to fuel increases in the stock.

there is increasing criticism about that from those on wall street and elsewhere. whatuld actually see they're doing, the buybacks, are starting to run out of steam. is really interesting. underperforming also the big criticism. companies actually investing in further growth. >> a very cool chart. we do want to turn to politics now. presidentialllied candidate bernie sanders ahead of hillary clinton in the islet democratic caucus. >> joining me now is john heilemann. also with us, fortunately, the president of public opinion and research services area >> i down ando the door demanded a seat. iowa ands happening in how is hillary --

>> it is because joe biden is in the mix. withouthas an advantage joe biden. what it is saying is there is phone or ability. strong, those supporters would be locked in. bernie sanders votes -- really well with youngsters. hillary is stronger with people ages 50 and over. he is apparently bringing in new voters and that makes all the work she is doing a people who have been to caucus before not matter so much if he is making a bigger pie. >> he would not necessarily think the 73-year-old man -- it looks like bernie is playing a better with young voters. >> what of joe biden? what opportunity does this wind up dealing death shielding? what is doing totally well and we hear, maybe we will have howard dean come in and maybe

someone else will come in and take their seat. >> it is interesting. i think joe biden does extremely well and would support this view. extremely well for a guy who is not an announced candidate. there is a huge difference between being announced and not announced. we have done a little bit of pulling and looked at what happened. the headline out of the polls is, there is dissatisfaction with hillary clinton in the worst two states, iowa and new hampshire. though democrats say they like her a lot, she is not capitalizing on that to put herself in a place where she has such a lead that it is forbidding for biden. the door seems to be open. the country or new hampshire are begging joe biden to get into the race, but they are open to him. >> does it take more votes away from bernie sanders? >> slightly more from hillary clinton but not a huge difference.

the two other times joe biden was an announced candidate in iowa, he did not get votes like this at all. his current standing in this poll has more people supporting him than in both of those races combined feared a good number for joe. believe 1% in the iowa caucuses in 2008 and then he dropped out shortly thereafter. he is doing a lot better now. >> is it a support of biden or a vote against hillary at the end of the day? >> it is hard to tell. there is a lot of affection of joe biden. some of them are grassroot voters and some of them are establishment of voters. anecdotally, you hear people say they would like to see him run. democratichese are caucus-goers who have unfavorable feelings about hillary clinton. it is double the number that say that about joe biden. what does she need to do to project the image that she is more caring and more authentic?

the grandmother image we thought she would play? >> that is the question. one thing you would not want to do is announce that is what you're are trying to do before you do it. -- of the things her came her campaign has done in the last week, you are both to remember george h.w. bush. >> thank you so much. >> there is a famous moment in that campaign in 1988 where he said, message i care. it makes people say, that is kind of made up. care, tell me. in her case, they seem to be saying, she will now be spontaneous. that takes away the spontaneity of whatever she is doing. what donald trump is trying to do. message: i am the best. thank you for joining us. alix: be sure to journey -- to tune in tonight for john's show

at 5:00 p.m. ♪

alix: welcome back. straight to a look at top headlines this afternoon. concerns about china's slowing economy has dropped food prices to the lowest in seven years. the agricultural organization in food itemsops last month. month of theight gains, the longest slide since 1998. the food index is also added lowest in more than six years. krispy kreme shares are plunging today on news the company lowered outlook after disappointing set -- numbers. it is down from $.85 per share. the company same-store sales, a key measure gross 5.5% in the u.s. tonew york city, required

post a warning label. the ruling is the first of its kind in the nation. those are some of your top stories. goodbye, olivia. that is it. olivia: thank you. as always, i learned something. alix: we are up much more well off the highs of the session. olivia: when was the last time we saw half a percentage point move on any of the major averages? not know. long time ago. the vic's is down. a miracle. still elevated, everything above 22 is definitely a little high. you are back on with joe for your news show. alix: i do not want to spoil it,

but we will talk about tech valuations. stay tuned. coming up, we will discuss the global energy trade. ♪

alix: welcome back. i'm out steel. alibaba'spinttack

off my not go as planned. scott galloway of new york universe -- university gave a scathing critique of mercy myra's performance, suggesting she should exit now. earlier today, tom keene and olivia sterns spoke to michael wolff, who served on the yahoo! board and responded to that criticism. >> i was part of the board that hired marissa mayer's. what is happening overall in the text not -- the technology business is the tech -- the company with the best technology wins hands down. 10ep myers, one of the top in the valley, she has made huge progress it over a quarter of the revenue comes from mobile. she has brought in great people and the fact is, users love it. turnarounds in tech take a long time. steve jobs took five years. hercole and make women with work. >> right.

meg whitman is still driving along. and it isvisible, easy to take potshots out at her. ceo how do you suggest to a that the best process planned should be taken out. should yahoo! become a merger candidate? >> at the moment, yahoo! is better off as investors. being a standalone company. the fact is the core business will start to grow again. investors and professors at nyu to try to make calls from the sidelines. tom: there is a tax bill due on alibaba. should the tax bill ramifications of the transaction affect the thinking of the board? classic cannot say what is going on. i left aboard a couple of years ago. till.a huge tax

ultimately, shares are double what they were when she came. >> is that because of things she had done because of the core business? is, if the street provides no value, no value at andto the core business, the core business is still throwing off hundreds of millions of dollars worth of then there is a different in terms of where is trading and value. staying in tech, investors were not impressed with the latest and greatest from apple's ceo, tim cook. they have since bounceback. gene munster was front and center at the event and he spoke the surveillance team on the phone. >> it is the starting point. if foundation for more apps and more gaming, better discovery.

is not the apple tv i envisioned a few years ago, but a significant of great from where they are. >> apple targets wireless firms. for the first time ever, apple will start financing the iphone direct to consumers. it is a game changer for apple. a big opportunity. are about and at&t 20% of apple sales. they do not want to go too hard after those. huge distribution. at the end of the day, they are probably testing more for rolling this out. tom: thank you for joining us this morning. how much sleep did you get last night? about four? we like that. four hours of sleep or what i would notice is what it does to margins. in the new was said york times this morning about the iphone. you have to mark down your margins forward after what you

observed yesterday? >> we do not because the changes in the new iphone are relatively subtle. new way toally a interface with it, but for the s cycles have better margins. i think we downside the margins. tom: how did you changer stock prices? did it require shares? >> we are aggressively buying. our current price. tom: is that good enough for you, olivia? that in thebout watch. not that i would know anything about that. arrange this?ok how did it happen? >> i do not know.

i am not the most fashion forward person. i will leave that to tim cook to answer. thing or two about this. i was surprised they could even get enough. >> i seriously thought it was a home run. is it going to be everywhere? take time and get a meaningful update in the next couple of weeks. easier to you to -- to do things with the watch. this is probably 2017 where it really goes vertical. tom: one more question. like keyboard,t is that an imac killer? >> it will compete with the imac. the ipad has been squeezed. this will probably go back to the mac. the mac will dominate.

alix: julie, we seem to continue to deteriorate here. yes.: the dow and the nasdaq all down off their high session. there has been a lot of volatility recently. to's take a look at the dow more clearly oh straight what we are talking about. a quarter of 1%. just a while ago, before 1:30, 2:00 p.m. in that window, the dow rose as much as 188. now coming down. it has sort of been addressed today. there has not been a lot of news on the macro level that has been pushing and pulling stocks. it has been a drift higher and lower. look at the imf on the bloomberg terminal. it is still an overwhelming number of groups on the s&p 500

that are higher. some of them are barely a whisper higher. materials also barely changed right now. telecom and utilities are trading down right now along with industrials at this point. let's look at other groups we're watching as well today. we are taking a look at the vix today, which now, for the 13th time in 14 sessions, is trading above 25. even though it is lower, it is a new hire volatility environment. characteristic of what we have been watching in recent days. it is another way to measure it. as's look at treasuries well. treasuries, we have seen yields pick up. utilities turned to move lower when we see yields move higher. 2.22% here as we get closer to the fed meeting. there is pressed -- perhaps a right now, interest-rate

futures are pricing in. fed fund rates, futures are pricing in a 28% chance at the meeting. we're watching the dollar as well. it is seeing a decrease as we get increased chances for a rate increase. .1 -- .5%. coming up, we will continue to follow the markets for you. we will be back. ♪

alix: welcome back. i'm out steel. a look at top stories making headlines to get ready for two dollar gas. gasoline prices will fall another 17% by the holidays, two dollars and three cents per

gallon. average gas prices were one dollar cheaper than year ago. between -- aneal energy company to expand north stream. that is the pipeline that carries natural gas directly from russia to germany. they say their companies stand to lose $3 billion in transit fees from the expanded pipeline, which will bypass ukraine and so voc year. researchers in south africa say they found a previously unknown relative of humans. more than 1500 fossils from the skeletons of at least 15 individuals were recovered from a cave. scientists are not sure about the age of their remains but say skeletons combined traits found in modern people as well as permitted ancestors. they also are believed to have buried their dead. those are top stories. economist film

made a very bold: china saying there is a 55% chance china will cause a global recession and joe and i will talk about that today . joe is joining me now. coming out and talking about this old call i've not heard from other banks. obviously, there is a lot of concern about china. it would appear, especially what will happen to other asian markets, and economies depending on a sports in china. the idea of a global recession due to china, especially when china is not a big consumer of the rolled outside of natural resources, it is quite a -- quite exciting and got a lot of attention. at thee tend to look mount of trade we got in the u.s.. the countries that are really exposed armand olea, 93% of their exports actually -- actually go to china. >> right. no question that they will go into a recession when china

really slows down pretty interesting part of the argument is, ok, you have all these tailwinds, the u.s. recovering, in particular u.s. housing and the u.s. consumer. that is what people think of as what really drives the economic cycle. it will be interesting to hear why he does not see those holding up. it is not like he is saying this is definitely. expect a leveling out and rebounding 2017. this is not a disaster as well but there are nuances. >> exactly. does not seem like 2008 and 2009 global recessions. 55% is basically a coin flip. fallsthat is true, as all can be. it is interesting to have them on the show because after the -- after brazil was downgraded, brazil, 21% of exports go to china. a lot of problems and it is all been a complete mess. it is interesting to see this, heels.

>> it is really interesting timing wise. this week especially, we have seen a lot of deep negativity. the s&p downgrading brazil to junk. glencorehe news with on monday where they threw in a tower -- threw in the towel on dividend production and things like that. it is interesting. it feels like after a really big decline in commodities emerging markets overall, we have seen big negative calls and actions and you wonder if we are getting close to the bottom. alix: four charts right of the top of the show. do not miss it. we are super psyched about it. we will be back in just about 15 minutes. still ahead, how the oil route is fueling growth for tanker companies. we will hear from the ceo. ♪

alix: commodities have been holding up today, very surprising and relatively no news. >> -- let's take gold. here, he see the movement upwards as stocks have moved downwards in the premarket session, holding onto those gains even throughout the session now. also here though. it is not snapping declines. day copperstraight has been higher.

copper and gold also continues its bounce from the lows. more than any other u.s. stock. a slump we have seen in the metals. it has been cutting back on production and other expenses. not huge but up a little bit. i want to bring you a chart for my bloomberg terminal that looks held inies of copper chinese warehouse is not monitored by exchanges. this was highlighted in a story about cover today. you can read it on your bloomberg terminal or bloomberg.com. he shared this chart with me. as you can see, we have seen supplies slumping. it is at a 21 month low of 540 thousand metric tons to what is it mean that the numbers are down? physical copper in chinese warehouses has fallen. is there fundamental reason for

copper to be gaining? some traders do think so and have been ascribing to that idea. let's move to oil and take a look at what happened there. we saw a building crude oil inventory last week. put a crimp in the oil prices are you can see up 3.4% here. we did have a leg down that was right around here when we got supply numbers out. resumed thee -- gains. yesterday, a new production weecast from the eia said would see increases in production this year and next year. that seems to be offsetting the supplies because looking down,d, if reduction is eventually the supplies will have to come down. the market really ignored the datapoint yesterday. it seems like there is something else going on there. were prettys bearish. i love talking commodities. thank you, julie hyman.

oil may be up today but it has a long way to go to go -- to make up for the massive declines in the past year. that is a good thing for the oil tanker market. companies like what transports petroleum products to companies. the ceo joins me now with more. thank you for joining us. seat to theront row health of the global economy. always talk about his china. what do you see? >> unfortunately, china does not play big role in our particular business. they tend to be self-sufficient when it comes to oil products. resultown of china might in them exporting more oil project -- especially diesel. make a lot of gasoline products. they also have to make to go along with it and they do not have a lot of demand for that.

where is the traffic heaviest? who is buying and who is selling? >> it comes down to volatility. our business is dominated by oil traders. the midsized ships everywhere in the world. they really trade everywhere. we see a lot more product actually moving down through south america to the southern parts of africa, which are not large volumes, but the distance has a big impact on demand for the business. be onning they have to the sea basically longer. therefore you need more shifts. classic exactly politically when they get there, they have to wait a while. a lot of congestion in the logistics chain in our business. then means that ships are taking much longer to load and that is taking them out of the market. it is all good. alix: a lot of chatter in the oil community.

down, they use less crude, and you have a lot of product out there. are you seeing that yet? >> we are experiencing refineries are running flat out as much as they can. utilization now is 96% in a year ago was not. the gulf is going to turn around. utilization was down from a few weeks ago. our experience is the cheap crude oil is pushing through refineries at maximum rates and creating a lot of product for us to shift. you thinkhat point do all of a sudden we're looking at this? >> we have been looking for signs of that for the better part of a year now. what we see is surprising. it is going somewhere but not into storage. being stockpiled in another way or being consumed. that is interesting. have seen tremendous

volatility in the oil community. i want to look inside my bloomberg terminal and i have a chart of oil volatility versus your stock price over the last year. i want to bring that up because it seems like right around here, august 19, volatility got crazy. your stock started to track. it is there any orange. meandoes higher volatility for your stock's short-term in the company? we thriveity is what on to it when there is more volatility, you tend to have cargoes moving longer distances. just like ships have an impact because of the different tents, in the aggregate, you really increase demand. it is not the volatility of wti. it is local price differentials around the world. it means oil traders can simply

buy cheap here and sell more elsewhere. for is what they are doing the more volatility that exists, the more opportunity for them. alix: you have been in the business for a long time. give us your perspective on what we're seeing now in the oil committee versus 2008 versus the late 1990's. >> this is nothing like 2008 when the market was peeking out. 50% of the existing fleet was on order. today, the order book was actually getting down to only 10%, a historically very low level. we see from a supply standpoint, we're in a very good position. from a demand standpoint, the only thing that would really take our business down meaningfully would be a severe global recession and we do not see that. the other thing that would impact it would be high and stable oil prices and we do not see that either. aix: the other thing would be lower price, because refinery markets would be squeezed. you buy wti and sulfur brent. if brent is oversupplied,

margins are not that great and products are not getting made. is that good for the business? >> i think the pushes coming from crude oil production. it will have to be refined and moved on. we're in a temporary phase where some refinery margins have been squeezed but we think that will not continue. alix: where you see oil prices going over the next 12 months? >> good question. it might go up to 65 or 70 it i just do not think opec get a grip on the market anytime soon. extremecontinue to see volatility and relatively low pricing. alix: thank you for your perspective. thank you so much for joining me. speak withwe will , theanaging director legend of venture capitalist

investing. how does he see the recent market volatility and what does that mean for the startup community? a lot talk about. we will be right back. ♪ . .

alix: we are moments away from the closing bell. i'm alix steel. joe: and i'm joe weisenthal.

[closing bell ringing] stocks closing higher, rebounding from a selloff yesterday, but well off the highs of the session. joe: but the question is, "what'd you miss?" and aheadkets today of the looming for decision, u.s. stocks rise and we take a look at hard numbers. alix: and the doomsayer -- our interview with an economist to predicted a global recession because of china. with hisalan patricof take on venture capital in these turbulent times. alix: we have to begin with the markets. it was a very sleepy day. the dow jones was up over 200 points and we are ending up at about 80. it gave up a lot of gains, but not a lot of panic in the markets. joe: