whitey stocks and economy seem to be heading into different directions. as oil prices falter yet again, production is slowing which may be good news for opec. we will discuss how shrinking supply may drive demand higher. good morning everybody, and welcome back. i'm olivia sterns. scarlet: let's get straight into the market because we are 90 minutes into u.s. trading day. stocks are down. consolidating since there biggest weekly advance since july. olivia: all in all, quite out there, .2%. .25% for smp. this is what i would expect to see in the middle august. let's show you what is happening in the treasury markets. the 10 year yield, 2.1. it is 2.18%.

this is exactly where we started off 2015. scarlet: the thinking right now is that the fed won't raise interest rates, won't risk making a move with the volatility in the markets. granted, this is from august, not necessarily today. this is the thinking and it has been shifting over the last few days. are telling us something different than what economists a bloomberg are telling us. but get to currency. it is firmer for a second day. japan held its policy meeting this week. it will take place tonight. traders said it could be more upside -- more room i should say, against the yen. especially when you see the appetite for risk remains fairly weak. come inside the bloomberg terminal for a moment. this is a good gauge of how things have been all over the place when it comes to the currency market. this is a jpmorgan global volatility index. it measures the swings and currency prices.

right now, we are at a seven month high. holding your those levels. scarlet: we have seen volatility come unhinged. interesting to see that the euro $1.1.ll trading above about $1.12. olivia: there is so much to unwind in the straight. let's move on and get a look at the top headlines at this hour. we begin with airbus going after boeing and its home market. they will build a $600 million assembly plant in open -- alabama. it is the second factory they have -- airbus has built outside of your. earlier on bloomberg, we asked the top editor of bloomberg if they were building in alabama because of cheaper wages. >> labor costs here are very competitive. if you make a really strategic

decision, it is one of many factors that have to come into the picture before you make a decision. airbus has 20% of the american market and it wants -- 50%. he defeated prime minister tony abbott in a ballot of lawmakers. he had condemned the management obvious chilean economy. apple says the new iphone models are being ordered at a record pace. preorders for the iphone 6 s and s6+ are exceptionally strong. apple is set to go over 10 million in the first week, that breaks the record set by the iphone 6 last year. firefighters are trying to gain the upper hand on a devastating wildfire. dozenses have destroyed of businesses 20 miles north of napa valley. several thousand people have now had to flee homes.

the pentagon is having to decide whether to cancel the last of three ships being built by dynamic. the lyndon b debt -- lyndon b. johnson is a world class destroyer. they could run into opposition in congress. those are the top stories at this hour. coming up in the next hour on bloomberg market day, apple is all smiles today. olivia just mentioned those preorders. scarlet: cory johnson will give us further details into these numbers. loretta lynch is in switzerland today. she met with prosecutors and issued a wanted to individuals involved. new corruption allegations are emerging. opec says the united is not immune to the collapse in oil prices. oil production in the u.s. is showing signs of slowing down. are they right? is the economy versus the stock market.

u.s. stocks plummeted the last month while economic data appeared resilient. what the recent decline says about the state of the u.s. market. sam stovall joins us now from his office with his take on the stock market. sam, there is a lot of uncertainty in the air whether the fed will rate -- raise rates this week are not. whether the slowdown is deeper than we know. whatever the case is. what about the stock market's prospects are clear and where is a widespread consensus? sam: there is a lot of concern as to whether this architect line is foreshadowing a potential recession in the u.s.. we have that first glance of the first, second quarter of this year when it was expected that earnings would be slipping into a recession by end of this year. historically, and majority of earnings recessions have preceded or accompanied economic recessions. we also know that basically every recession since world war

ii has been accompanied by either a bear market or a correction. for that around and you will find that actually about three times the number of corrections and bear markets have occurred versus the number of recessions. you really can't assume that a market decline will then lead to a recession. olivia: we are trying to connect the dots between said's and equity -- between said policy and equity markets. how does that affect your equity strategy if it does it all? it doesn't affected too much. it is something we have been anticipating for at least a year. a lot of market forecasters would love for them to get on with it already. we give it a coin toss, maybe 45% chance that they will do it this month versus 55% probability that they will wait until at least december. i don't think anybody will be spooked by a 25 basis point

increase when actually the historical relationship between core cpi and the fed funds rate implies we should be closer to 3% and 0%. olivia: let's talk about positioning before the fed. treasuries are gaining. scarlet: as olivia and i were talking about, the fed is unlikely to move because of all the volatility. with odds lower of a fed hike this week, if he said were to move, some people say it would have a major impact on the market. --h deputy case in equities would that be the case in equities? i don't think so. what we typically find is leading up to the first rate increase, the market is very resilient. on average, all 10 sectors in the s&p have posted positive total returns. in the six months after, historically what we find is the gains are much more muted. snp only up 2.5%. nine of the 10 sectors have had

positive results with financials being the only one in negative territory. i would tend to say that now the clock will start. as to whether investors will become concerned that the economy is strong enough to handle a rate tightening program. where are the buying opportunities right now? sam: i think you have good opportunities focused mainly in the quality categories. i would look for the companies and the s&p that have a or a plus quality rankings. i think as we move further into this rate tightening program, you will be wanting to focus on quality, companies that are trading at a discount. but still offer a relatively attractive view. scarlet: i am looking at some of the strengths of the sectors as we head into this potential rate hike. is this continuing in a rate hiking cycle? sam: you do find that usually technology is among the better

performers. theumer discretionary does relatively well. the assumptions are that as rates start to tighten, it does slow economic growth and increase the likelihood of an even deeper decline for the stock market. value stocks tend to do well coming out of corrections and bear markets, whereas growth stocks in a low growth environment, as we are seeing now, are the ones favored by investors. scarlet: what would need to happen for the s&p to retest its august level. darby going back to 1857? sam: i think that is a good possibility. we went three or four months without a decline. the average is 18 months. whenever you look at those months that took longer than 30 months, it took time to reset the dials. we went down 12.4%. the median decline for those that lasted longer than 30 months was down more than 19%. i would tend to say that the pe

on the s&p forward earnings estimates doesn't go just to the long-term median as it did on august 25. possibly below that to a number , or even as the s&p low as 1740 which would bring us down to an 18.3% correction. olivia: all right, thank you so much. still ahead on "bloomberg market day," how well is the new iphone selling? we will go deeper into apple policy sales projections. ♪

olivia: welcome back to "bloomberg market day," i am

olivia sterns. scarlet: we are going to have a look at stocks. more than 90 minutes into the open and we are down. >> we are off of our recession low. that is some good news. a are paring losses from earlier this minute we saw. the dow had been down by as much as 100 points. right now, it is down about 35 points. we are about 20% off. the s&p 500 down similar margins, as well as the nasdaq. a report in china over the weekend revealed industrial output missed expectations. to interesting tech i want tell you about. for the ninth week at the s&p 500, this has reversed direction from its previous week. for the past nine weeks. this happened just three times in the past 20 years. something interesting to note about the volatility we are seeing. dive with me into my bloomberg terminal. i want to show you the espn function.- bsvm these are the most tweeted

stocks of the day. a good gauge when trying to figure out what the street is focusing on. we are figuring out people are tweeting about yahoo! and jetblue airways. another one is gopro. it is on the move this money. it is up by more than 5.5%. this, after falling each week over the past five weeks. this is important due to a new note. content ando's video system make it a "compelling acquisition target for apple." he also things there is an gopro'so oprah's -- estimates. lera hasoldings -- so agreed to buy them for $6.5 million. they are holding up by a .8%. $35 a share in cash for a texas-based company. that offers 13% for the closing

price on friday. chicoy, i want to get to 's. they are rising by nearly 9.6%. in fact, this is its most since february of 2012. this is on her nude speculation that it is a buyout target. that is why sycamore partners which try to buy she goes back in february. they abandon that, now they are back. she goes is working with investment bank peter j sullivan to export its options. this is according to people familiar with the matter. back to you. olivia: think you so much. now a look at some of the top stories crossing the bloomberg terminal at this hour. the county clerk in kentucky who was jailed refuting to grant same-sex marriage licenses is back at work. she says she will not interfere

with deputy issued licenses, but she says she will not license them herself and questions whether they are in fact valid. a surprise move by the united auto workers. they chose fiat chrysler for their labor contract. chrysler is the weakest of the big three. normally, the uaw selects the strongest of the automakers to get the best terms for its 140 thousand members. speaking of labor unions, scott walker will call for sweeping list rations on labor unions today. he will propose eliminating unions for federal government workers. he also wants to make it more difficult for unions to organize. those are your top stories at this hour. olivia: it was a good weekend for apple. the company says customers with a no time ordering a new iphone on sale last week. bloomberg's cory johnson joins us from san francisco. corey, was ever a time when apple didn't say that that their preorders were fantastic and superstrong?

cory: a year ago they said that. they gave us a number. a lot of us were sitting around waiting for this number. wondering what the number would be. exact how many phones to do s -- did you sell? they did not tell us. they said super. they did not give us a hard number. you had all kinds of people across wall street, analysts and beyond, trying to figure out what this one would do. one of the most important clues was the map. where they are selling this one. where they are offering this one for sale. there is a lot of excitement about the new iphone 6 and the new iphone 6 as plus. tweaks to software and hardware, i think the most interesting thing about they way they are selling this phone is where they are selling it. if you look at the global map,

the biggest difference is that this time apple has decided to sell this phone in china on day one. they took preorders in china over the course of the weekend. on day one when this phone chips on september 25, the biggest difference this year is that is is for sale and china. scarlet: it is not even a line for line comparison. i said superstrong. ry, i have an actual question. when do you think shipments for this new phone might be? think the big thing will be what they did last time compared with it is -- what they did this time. sales growth troop -- grew dramatically when the iphone 6 plus was released. the company was reliant on cells into china. it became well over 20% of sales in the most recent quarter. figure over cells growth was also fantastic for this company. looking at the 35%

year-over-year cells. problem is, can they top that? they are expanding a 20% growth in the fourth quarter in terms of sales overall. and looks like sales for the iphone will be closer to single-digit growth year-over-year. they are definitely in a tough spot meeting those very strong estimates from the analysts on wall street. they are putting out a note following the disruption of apple's strong orders. they say that is an indication of demand, certainly, but it more reflects or is driven by production than anything else, which make it difficult to figure out the rent. what do we know about the production of the iphone this time around? cory: just last week, he said if they do not give us the numbers on monday, it means the numbers will be bigger. even now they didn't give us the number. he's absolutely right that it is

production constrained in the beginning that makes it harder to figure out what the demand constraints are going to be into the fourth quarter, making the fourth quarter even more crucial for apple. selling a phone in china on the first day and in the third quarter, the third calendar quarter is going to be a benefit to apple, one that people might not be counting on initially. the fourth quarter will be a great big master. to -- mystery. olivia: coming up on "bloomberg market a," sepp blatter. we will take a new look at the criminal charges he could be facing.

olivia: welcome back to "bloomberg market day." the u.s. justice department is trying to clean up the world of football, that is, american soccer.

u.s. attorney general loretta lynch says it is not over yet. >> our investigation remains active and it is ongoing. it has in fact expanded since may. as i made clear at our initial and in -- announcement, the scope of our investigation is and we are, following the investigation where these. i am grateful for the picking operation and substantial evidence we have received from all quarters. weed on that cooperation, anticipate pursuing additional charges against individuals and entities. olivia: for the latest on this scandal, we will bring in hugo miller. lynch'sllowing loretta comments this money, do we have any idea when we wacky get those charges? hugo: we don't have any sense of timing. her swiss counterpart said we are not even at the halftime

break of this football match, slow to speak -- and to speak. the bigger question is who would be on the charge sheet next. the first question off was is , the president for the next four months, will he be among those charged? loretta lynch was not going to be drawn on that together point. she said she could simply not comment. she threw in a little line saying she would not comment on his travel plans. for those paying attention, it was a case that people have said that sepp blatter is afraid to set foot in the united states for fear of being arrested. scarlet: we all want to see what happens to sepp blatter, his fate and all of this. if you don't have a timeline, do you have any sense of scale? how many further arrests and asset seizures there could be? hugo: no. arrest numbers -- a res

numbers, it could be 10 or more as was the case with the first 15 arrested in may. accounts being frozen and as is being seized, he talks about real estate being frozen, and even apartment in the swiss alps . that would lead to conjecture that perhaps these were gifts over the years paid to officials in return for their support for local football federations. apartments according to the attorney general was among the assets seized. scarlet: there is that investigation into russia and cutter hosting the world cup. he was reelected in may despite the controversy and arrests. who is leaving the organization right now?

we know he is afraid to step foot in the u.s. and there is another election coming up in february. scarlet: if you asked him point blank today, he would say he is very much in an troll until the february elections. --he is very much in control now the horse race begins. you have a couple of people, three at least, jockeying to replace him. sepp blatter would say that no one has charged me with anything. i have not been accurate than anything. i am leaving this organization, at least for the next four months. scarlet: hugo miller, peggy so much. olivia: that does it for me, good luck. scarlet: thank you so much, and i will see you in a little bit with "bloomberg markets."

the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. welcome back to bloomberg market day. let's get you the top stories at this hour. european countries struggling

with the flood of refugees have announced plans to fortify their frontiers. this comes a day after germany reinstated border control in an attempt to slow down the influx. austria and slovakia say they will send more troops to secure their borders. the netherlands also plans to beef up patrols. in an exclusive interview, the chairman of one of the world's top automakers spoke with hans nichols at the frank heard auto show. -- frankfurt. >> you know how the world economy goes. some are too low. oometimes the area is to high. that is why we are trying to manage our manufacture of these components. that is why we are investing in the u.s., mexico china, and russia. scarlet: that includes the w, porsche, and bloomberg any.

more than 50,000 chicago students are still not back in class. the teacher strike is in its second week. no progress after a weeklong talk. k is the key issue here. seattle teachers have gone six years without a cost-of-living increase. prescription service is a $500 million. they raised $100 million in an effort led by ppg ventures. they have $130 million in annual sales. they were cofounded by social media celebrity michelle. those are your top stories of the morning. let's move on to market shares. european stocks are just about closed. what's head over to mark for the final numbers. drop -- european stocks drop for a third day in a row. china dates are missing in industrial production and investment. need i say anymore? stocks falling today because of

the china data. the best-performing industry group. interesting stat. since the fed last raised rates in june of 2006, the benchmark and europe has risen by 12%. will it rise through the end of this year? averageaccording to the forecast compiled by bloomberg. they will gain 13% in the next 3.5 months. that is what they say. propelled by earnings which will raise the 5% in 2015 -- will raise 35% in 2015. so say the analysts at bloomberg. the government will not reintroduce evening advertising on state owned television. credit suisse down by 1.6%. a swiss newspaper reporting that the new chief executive may raise capital as he overhauls

the business. i wanted to show you the helter-skelter nature of the mining industry. two weeks ago, the biggest to klein ever on a weekly basis. last week, best week in 2.5 years. but how it started for this monday session. by 2.4%. bit of data out of china. china, said, china, fed. that is all you will here until thursday. scarlet: coming up here on "bloomberg market a," the principle of what goes down must come up. show optimismpec as oil prices to climb. in chicago, can city governments tax the cloud? seenast month has volatility in chinese markets and a slowdown in the economy which has a lot of analysts looking at commodities to predict where china may be headed. tom keene of bloomberg

to assess howsked commodities are faring. >> industrial metal does not look great. the correction is only just starting. we are seeing mines being closed down. they made that announcement last week. in oil, the response has been more immediate. the balance was much smaller to begin with. metal is more of a structural story. it is important to keep in mind that china consumes half of the world's metals. the consumption for iron ore or steel in china per capita is two times that of the u.s.. yet, the average chinese consumes .8 of the average american in oil and .5 of the average japanese.

tom: what is your view of the chinese economy and the demand going forward? greg's clearly, the chinese economy is slowing down meaningfully. we has enough for awhile. for data has been flattish quite a while. most of the year. a lot of indicators have been soft. at this point, i think the use moreovernment will measures to stimulate the economy, maybe a fiscal package, maybe some monetary sinuous. i'm not -- monetary stimulus. i am not saying that things will be great. things in china in the last 25 use have not been a winning strategy. michael: the question i have is how important is what francisco is saying to the chinese? if they are switching to a more demand led economy, do we need to keep measuring the factory sector as the number one thing for them going forward? >> i think that is a good point. if you are going to a service

economy, you will need more planes and the road. at the end of the day, the u.s. is a service economy and we consume a lot of oil here, as you europeans and japanese. michael: two lower commodity prices help boost a service economy? francisco: a service economy as mostly about health care and indication in those kind of things. -- and education. it is a little bit different than the commodity cycle. i am not saying everything is great in china. i don't think that is the case. equally, we still take the view that chinese growth should be averaging 6%, 7% next year. under those conditions, things should hold up. as you mentioned before, citigroup's base case for a recession in china. tom: i'm glad you brought that up. they made a splash last week, 50/50 for a recession. now they are moving to a baseline scenario for 2015 -- 2060.

do you agree with the 3% global gdp? francisco: it depends on how you measure that. the issue would gdp is that gdp nominal firms are barely growing . we looked at the numbers the other day and global gdp at market exchange rates averaged 8% growth between 2001 and 2011. in the last four years, we have averaged .8%. tom: this is critical, and this is why we love francisco. this is the animal spirit. real gdp plus inflation on top of that is the nominal gdp. then you adjust back to the dollar. the key question for you is a commodity guy is currency is the nexus of what we should watch for. and what janet yellen has to watch for. francis kilcullen has slowly. if the u.s. dollar continues to appreciate and we see another fourth wave of deflation -- remember we have massive

strength against the yen, then the euro, then the commodity currencies, and a potentially against the yuan. tom: you think of dave working with francisco, in your team, does janet yellen on thursday have to filter in a guesstimate of a late 90's strong dollar? him --co: they look at unemployment rates going down, core inflation is picking up. we have to hike rates. they are not thinking of the second or third round of facts of what will happen to international markets. that is not their job. they have said that. i am not sure the fed will factor that in, necessarily. we are sticking to the view that the fed will most likely hike rates this week. that is our core view in the house. it is very possible that they

may have to slow down the pace of hikes. the market cannot take the first round. on the flipside, i think the biggest challenge we are going to face is that there may not be enough dollars out there. scarlet: that was francisco blanche from bank of america speaking with tom keene. still ahead on "bloomberg market day." we will stick with commodities and look at what is up next for oil with a new report that says that oil production is slowing. for a reminder, join us on thursday with a live -- live coverage with the fed followed by a janet yellen news conference at 2:30 eastern right here on bloomberg television.

scarlet: welcome back to "bloomberg market day." let's take a look at the top stories crossing the story at this hour. chico's is up the most in two years today. there is speculation the woman's clothing chain is a takeover target. bloomberg has reported that sycamore partners has approached chicos once again. that stock is up more than 10%. google has ordered an auto it industry executive to head its car unit. he ran hyundai's u.s. operation and worked for ford. google soft riving cars have lost -- logged more than a million miles in tests. -- self driving cars. the score was 6-4, 5-7, 6-4,

6-4. those are your top stories at this hour. let's go back to market here. the price of oil has fallen by almost half in just six months. today, it is down for a fifth time in six days. it is one of the reasons why opec is trimming is estimates for supply outside of its non-opec production. are gettinging we closer to a bottom in shale oil production. that means that demand goes up. why is opec so optimistic? here to exchange -- explain is correspondent holly air. vier.xa xavier: if anything, oil prices are heading to $20. they provided a relatively optimistic view of the oil market. they say the oil prices are

beginning to have an impact in non-opec oil production. they have seen very little growth. opec is not as optimistic in that sense. anyway, you could say the strategy of lowering the price of oil to win market share is is starting to make some advances. scarlet: what is the record with these monthly reports? are the accurate? is it with -- wishful thinking? analyseshese market are quite conservative. they usually tend to underestimate the oil demand growth and overestimate the reduction growth. analysisng, the market is quite conservative, not a

political statement from opec. scarlet: great framing. i want to get a sense within opec about the level of discord. when we talk about where oil prices are headed, there is so much inconsistency among the forecasts are whether it is from the ia. is there a dispute within opec of where the oil will go? javier: you can say that opec is in discussion on the strategy. saudi arabia is happy with what is happening. members like nigeria, iraq, libya, would like to see higher oil prices. in general, you could say that opec is very much in agreement that we will have relatively lower oil prices for the remainder of 2015 and much of 2016. scarlet: what is the response from non-opec producers? that i all we can say is have seen most of the producers

are agreeing with the opec view. investment is being cut not only for 2015, but also for 2016. we are going to see a reduction in production. we will see lower production russia, and brazil, other areas with high cost. in general, the oil industry is in agreement with opec that the impact of lower oil prices next year will be very significant. scarlet: another thing that will be very significant is how currencies of commodity producing nations ahead. he says he, javier, sees a long winter and commodities for the price of oil. does opec mention the influence of currencies in this report? javier: absolutely right, and opec does mention it. it is one of the things that is

keeping non-opec production from following -- falling this year. brazil,ook at russia or it is still high. oil has fallen more or less not as much as it has collapsed against the dollar. currencies in oil-producing countries remain under pressure. that will keep non-opec production higher than otherwise. remember, another challenge opec is facing is precisely from companies that have the dollar as their main currency. those producers are having no benefit whatsoever from currency movements. scarlet: that is a good point. thank you very much for joining us. he is an energy specialist for us in london. still ahead on "boomer market streaming services revenue. some companies are heading to court to stop them. that is next.

♪

scarlet: coming up on wednesday on bloomberg, a special primetime edition of bloomberg surveillance. tom keene willnd be speaking with radel you right here at 6:00 p.m. right here on bloomberg. have come to expect sales taxes on movies and baseball games. passed achicago measure to rescind its 9% entertainment tax that comes from the cloud such as netflix, google, and spotify. last week, a group of consumers filed a suit that chicago had gone too far. eddie lou had been looking into this. -- betty liu has been looking into this. betty: we have come to expect

it. it doesn't mean that i like paying the taxes. in thisat you expect lawsuit. these consumers, these users of ,etflix, hulu, amazon prime spotify, even, they say it is unfair. it discriminates to put taxes on these streaming services. they say if you do that, what will stop you from putting taxes . let's say if you use netflix but you get it by dvd, should that be taxed as well? scarlet: it is a slippery slope. eddie i betty: it is a slippery slope so they say these should be excluded. it's indicative of what is going on in chicago. opal cities and municipalities that are struggling like chicago, their debt is rated junk. they are trying to find every

which way to plug the deficit. has been hard at work trying to figure this out. i tax in the streaming services, they are able to generate about $12 million annually. it doesn't;, but if you do enough of the small measures, it will make an impact on the city budget. scarlet: look at the airline industry for how you can nickel and dime and him back to profitability. after fees, taxes after taxes, this is one way to do this. what the users are saying is that this is a slippery slope not just in chicago. what is to stop other cities and municipalities around the country from following these footsteps? this will be an issue, scarlet, that will be raised because more of us are now using, we are going online. we are going online to watch video. before that, we were going

online to buy products. what next? scarlet: it seems like a natural outgrowth of taxing your purchases on amazon or ebay. streaming hulu are not fix. betty; that is being fought in the quarter right now. scarlet: amazon has changed their tune a little bit. as they get bigger it is harder to justify is getting the loophole. scarlet: betty liu will be here in the next hour to take you through market day. in the meantime, let's take you to our stock options with remy. >> our options right now are at session lows. a report out of china over the weekend revealed industrial output missed expectations. is not too far behind, the nasdaq the biggest loser at about .5%. one interesting technical to note, for the ninth week in the row, the s&p has footfall

addictions -- has flip-flopped predictions each week. --rney for options insight joining me for options insight, joe, thank you for joining me. you are looking at the financial services sector. all of the traders around about rates two,. they have been waiting a long time for rates to come up, for financials to finally have a leg to stand on to catch up to the market. i am more cautious on my trade. this trait is more for people who have put money on the sidelines any past two weeks who were unsure of the markets. this point in at seems iffy for a lot of people. there are a lot of question m arks for a lot of people.

one way to take advantage of that is that instead of buying stock, you can sell a foot in the stock, cash covered, sell the sun number of shares that you would buy, and that way, you can reduce your downside risk and increase your probability for success. i'm looking at the october 23 in the xlf. $.65.orning, it is that will give you a 3% cushion for the downsides. if it goes down 3% before you start losing money. this is the thesis of the trade. on the downside. you make money without a going up worried you have a 3% return as long as it is about $23. ramy: talk to me about volatility. is up 6%. that is the biggest jump in the last 10 days. how is that impacting your play? makes it more tracked a.

one volatility is higher, you collect more premium. , think the reaction today there is the monday affect. traders like to sell into the weekend as there are two days coming out of the model. as we come back into the model on monday. the combination of it being down plays a being monday is why you see that volatility at 6%. future at the vix trading and options trading behind me, i see more subdued expectations in terms of volatility. certainly, traders are looking for volatility to come in after the big news events. intoility buyers will buy a news event, and once the news is an -- out, they look to sell. ramy: we will have more bloomberg market day after this break ♪

scarlet: good afternoon. nine in san francisco. new york. betty: starting off the trading week, they are getting increasingly confident that the

fed will not raise this week. scarlet: one of hillary clinton's top fundraisers meets with joe biden as poll shows that she is losing ground to bernie sanders. betty: airbus, taking aim at knowing's home turf. -- boeing's home turf. mobile, alabama. ♪ scarlet: good afternoon, everyone. i'm scarlet fu. betty: and i'm betty liu. thes get a look at how markets are trading at the moment. we are bouncing around the lows of the session right now. investors are not sure what to do it in anticipation of the fed this week. the dow is down by 71 points. scarlet, you have got an interesting take on the markets. scarlet: