for my children and for yours. thank you very much. [applause] president obama: thank you. [applause] scarlet: you have been listening to president obama's address to the united nations general assembly. he gave a wide-ranging call to action, starting with the idea that the u.s. cannot solve the world's problems on its own. he said we need to resolve disputes peacefully. he did bring up the iran nuclear deal and russia and its push into ukraine. theot some applause for lifting of the cuban embargo. the u.s. is prepared to work with any nation, including russia and iran to resolve the syrian conflict. he said there must in transition of power. he brought of the refugee crisis as a security issue. ebola, eradicating poverty, trade.

overall it was a speech that was big on some big ideas. cooperation and universal ideas and principles. a little more optimistic than some other members of the u.s. would probably sell it. i want to bring in ryan chilcote right now who joins us from london. that was the preamble to the big speech later on today. a meeting between president obama and the russian president. we still do not know who exactly requested this meeting. the russian side is pushing back the firstut it is face-to-face meeting between the two leaders in years. what can you tell us about what he wants to accomplish from this? obama's work is only half done. what president clinton wants is to talk about syria. he was to talk about his illusion for syria. he has troops on the ground. in so doing he wants to deflect some of the criticism that has

been leveled against russia for its actions in ukraine. repeatrd president obama that the annexation of crimea, which is part of ukraine and legal a -- is illegal. there was also ruthven speech for some kind of deal with russia. all eyes on this meeting. there are spinning in more than one year. the russians have been talking to the syrian government, the iraqis, the iranians. expect a very detailed discussion of exactly what president clinton intends to do. i'm sure president obama will be listening carefully because the russians have said is the u.s. does not join them, they are way to lunch missile strikes against islamic state in syria on their own. obama join him, that is what president clinton will be asking. he will also be asking him to

stay directly to the assad government. idea there that he will not do that, but the russians can live with that as well. they are happy to be intermediaries. the all is in the court of president clinton. he is going to say that he has a solution, and it would be foolish for president obama not to listen. scarlet: thank you for the setup to this evening's meeting. of course, we did get an idea of his thoughts on syria from last night 60 minutes interview with charlie rose. >> there is no other solution to the syrian crisis then strengthen the effect of government structures and rendering help in fighting terrorism. at the same time, urging them to engage in positive dialogue with the irrational opposition and conduct reform. scarlet: president obama has must be relieved

to achieve peace in the country. acting director of the canon institute joins us now. he listens to what the president said in the general assembly, especially on russia. we want a strong russia that is interested in working with us and strengthening the national community as a whole. oft how far will the u.s. end to accommodate russia? >> i think what you heard from president obama is that the u.s. is willing to listen to russia, it is willing to the pressure, but clearly the u.s. is not going to see the process and only find out at the end that it has returned president assad to power. this seems to be something that the united states is not willing to participate in. it is unclear whether president putin will be able to bridge that gap. in his interview last night on 60 minutes he emphasized that he sees assad as the legitimate

government, as a government that has to play a role in any solution. i think you've already seen the outlines of a profound disagreement between president clinton and president obama. it is unclear whether the words about engagement love corporation, will bridge that gap. scarlet: thank you for your votes. we want to bring in for a moment because we have some breaking news. donald trump is now outlining his tax plan at the trump tower. it includes major tax cuts, and here with me as pimm fox. this is something that many people has anticipated his he has not been shy about making his position clear. let's listen in to what he is saying. >> major tax relief for middle income and for most other americans. there will be a major tax reduction. that will simplify the tax code.

as will grow the american economy. at a level that has not seen for decades. this does not add to our debt or our deficit, but i will also be discussing some of that at the end because we have to make much better deals, we have to negotiate much harder, and we have to make our economy stronger. will befor individuals --[no audio] what a time for the video to freeze. we are left waiting. that we will try to get signal back to you. we have also been washing it from washington. -- watching it from washington. we will go back to donald trump and his speech regarding taxes.

important, if you are single and are less than $25,000 or are married and jointly earn will not $50,000, you pay any income tax. nothing. very strongly, and quickly, the marriage penalty, the unfair penalty. it eliminates the alternative minimum tax. tax to doubleath taxation. a lot of families go through hell over the death tax. it reduces or laments most of the deductions and loopholes available to special interest and to the very rich. it will cost me a fortune. that is actually true. while preserving charitable giving and mortgage interest

reductions. that is very important. current tax treatment of carried interest. those in the hedge funds make a lot of money on carried interest. the speculative partnerships that do not grow businesses or create jobs, and are not risking their own capital. changes for business. so important. it is all about business, it is all about jobs. we have 93 million people in the country you are in serious trouble, who want to work, they cannot work. so for business, no business of any size, from a fortune 500 company, to a mom-and-pop store -- scarlet: once again we are

having some problems. this is a streaming broadcast. all of distribution is having those issues. this is taking place of the trump tower. scarlet: it is just a couple of blocks away, we can run over and get the details. but when -- one thing that jumped out at me was no income tax for singles making less than $25,000 and married couples making less than $50,000. now we go back to drop. will talk, no action politicians. i have been watching them for years talking about bringing this money back. $2.5umber is probably trillion. everybody agrees it should come back. the republicans, democrats,

everybody. they cannot make a deal. we do not know how to make a deal. the reason companies are not bringing it back is the tax is onerous. it does not make sense to bring it back. many companies are leaving the united eights. they are leaving our shores to go and collect their money. they are actually moving out of the united states. are too high, and they have tremendous amounts of money that they cannot bring back into this country when everybody wants them to bring it back in. money broughthat back in. example, i millions of dollars overseas. i cannot bring it back into this country. we filed papers, we have been doing this for a year and a half and we cannot get it back in. so the money stays in other countries, and that is what happens. the level of leadership that we

need to get things like this done is so important. this is something that i have been wanting for a long time. everybody agrees with it. we also reduce or eliminate some business loopholes, many of them, actually. and as actions of -- deductions made unnecessary or redundant by the tax rate. , that arate is so low lot of these deductions that do not make sense and are unfair are gone. capwe face in a reasonable on the deductibility of the business interest expense. we are going to give you, we have a very complex set of papers that actually, if you don't business, is not so complex. we are going to hand them out right now to the press, and i think you will see we have an amazing code. code does notng

n amazinglynto a stable video. --rlet: everything is about every time he starts to to say something amazing, it freezes up. pimm: but he will be making reform to the tax code. scarlet: i believe the feed is back. >> all of that being said, before we take some questions, we have to caught that cuts the cost of what is going on in this country. if you look at what we're doing and the money we are spending, i , to sende a washer from one state to another, it was a $.19 washer, and it cost 1900 some odd thousand dollars to send it from here to there. there are many examples. hammers the cost $800 that you can buy in a store for a tiny

amount of money. we won't run this country properly. will run this country properly. there is so much money to be saved. we are reducing taxes, but it same time, if i become president, we will be able to cut so much money. we will have a better country. we will not be losing anything other than we will be balancing budgets and getting numbers where they should be. simple,the plan that is that is a major reduction. i think people are going to be very happy. we have always -- already has a very good reviews. i did the plan with the leading scholars and tax experts that there are in this country. they love it, they say why has this not been done before? this is my wheelhouse. this is what i do well. the economy is what i do well. i always come out way above

everybody else on the economy. and on leadership, but i won't say that. --if anybody has [applause] wow. thank you. that is amazing. some of the press was actually clapping. i do not think i have seen that before. why don't we take some questions? >> can you name some of the people? >> i have two get their approval. but with some of the top country in the people. >> 1% growth? >> 3% or 5%. it will be tremendous. if we have more than 3%, these numbers are really spectacular. one of the things that they do anytake into account in hi big-league fashion is the cutting.

there is a much waste that when we get in there i believe i will -- and we froze up once again, but he is not taking questions from the press and he will not answer the question of the press of who he consulted with to come up with this plan. pimm: he reduced taxes on that level of income about 25,000 dollars for single filers, $50,000 for couples. scarlet: let's go back. >> this is ridiculous. he spent millions of dollars at a higher level on lawyers, and everything else. we want is amplified them to a tremendous level. the bracket of 25, the big difference is many of the loopholes and many of the deductions which are old and have been there for years and are integrated in many cases, were put there because a lot of people that get these deductions howard, touting to

bush, they are contributing to every candidate but trump. i've not taking any money. i himself funding. these people want these deductions. we are reducing taxes. there are people in the very upper echelons that will not be thrilled with this. we are taking away deductions, and that is one of the reasons where it is lower. this is actually tax reduction. i asked for big tax reduction. i believe that the economy will do so well that even though they will not beginning certain deductions, were not fair for them to be getting, you will end up doing better. yes? >> [indiscernible] >> i just think that this is a

common sense approach. we dictate supply side, there's 15 different names given operative for types of reductions or increases. i think this is a common sense, well thought out tax proposal that is going to trigger the economy, going to make everybody go back and really want to work. his will to remain discrete tremendous numbers of jobs. i'mof the other things coupling this width is i'm going to renegotiate our trade deals. our trade deals are not sustainable by this country. continue to allow our jobs to go to all of the different countries. there is not a country that we negotiate with the does not make a better deal. we lose money with everything. i will also renegotiate some of our military cost. we protect south korea. we protect germany. we protect some of the wealthiest countries in the world. we protect everybody. we protect everybody. we do not get reimbursement.

we lose on everything. we'll is on everything. we are going to renegotiate trade deals, military deals, many other deals that will get the cost down for running our country very significantly. number andwing a big not, but i believe that if i become president those numbers are going to be massive as an example, saudi arabia. they make a billion dollars a day. we protect that. we need help. we are losing a tremendous on a yearlyney basis and we own $19 trillion. i used to say $18 trillion, and now it is $90 trillion. it is going up. yes? >> [indiscernible] look, senator rubio is a lightweight. we understand that. he was not know a trade deal from any other deal. what certain people are trying -- weis they are trying

went up two points in the last poll. we continue to go off. we are going to very strongly the polls. they do not know what to do about it. a great company. he will see that in 60 minutes last night. i built a great company. it is a phenomenal company with very little debt, tremendous cash flow. i'm funding my own campaign. guys like rubio desperately needs money. the car dealer in florida, as this bit -- asked the people who support him in florida. they are largely controlled by the donors, their special interest, and frankly -- scarlet: they're using midsentence. he did reiterate that he will negotiate trade and military deals. he is back up again. let's go back. i guess bills from people.

the country should do that. i would bring that same attitude to the white house. habit when you a get a bill, you call up and you negotiate. to me that is a compliment. quantitative been thinking to the white house. i would bet he would could save 20% of our budget. we could save a tremendous amount. that has to be the attitude our country house. you cannot spend millions and millions of dollars on doing something that you can do for $2000. spent $1 million holding the soccer field. for our prisoners who happen to be in guantánamo. i don't like that. what do you need a million dollars for the level out the surface, let them play, if they have to play at all. what you need to spend a million dollars?

field?ion on a soccer how do you spend a million dollars, you have a level piece of land. , let them a bull -- ball them play. yes or? sir? go ahead. >> [indiscernible] taxes, whichring the republicans love, and i think one of the reasons i'm doing so well in the holes, and one of the reasons i'm doing so well when it comes to the economy, is that this is the thinking. lowering tax is very substantial, we are simplifying,

and getting rid of deductions that are obsolete, that certain people want to keep for certain reasons. that is not true. go ahead. >> [indiscernible] putin was interviewed and i was interviewed last night. i thought charlie rose did an excellent job. but i thought his was a softer interview. scott interviewed me. i thought he was terrific. it was a tough interview, but i thought he was very fair for i thought the piece was very good. go ahead. >> [indiscernible] towhy is he harder on me then putin? because it is a nicer person than i am. [laughter] >> [indiscernible]

>> the worst in 36 years. it is a good question. you can connect the dots, but i since 2004,robably you're talking about 11, 12 years, the people at once and to bring company money back into the country. a lot of times they are going to other country, taking jobs. we have serious companies in the very large companies, as you looking to move out of the united states. it used to be they moved from new york to florida. they would move to tax is or whatever. now they are talking about moving from the united states to ireland to england and two other where they get treated

differently and better. to getthe big reasons is the cash that they have built up and cannot get back into this country. but he comes back our country, it will be put to work in our country, largely. it can go other places, but largely. i think it will be an amazing thing. moneyk it will be more than left, and boy if it is, we have hit pay dirt. go ahead. >> [indiscernible] >> when you and repatriation, when you get the money coming i am the only one who

is honest about this thing. i watch all politicians, and they say i find out like hell to pay as little as possible, can i ?ay that theuld feel differently if country were spending the money wisely instead of throwing it out the drain. our country spends our money so stupidly. i will tell you that i can speak for myself, i pay a lot of taxes held to make it as low as possible. i would feel differently if our leadership for such that i respected the decisions.

all you have to do look a little list of the things that our government is spending money on right now. you do not feel so good about our country. yes? >> do you think it's a legitimate issue for this country? will this plan addresses, and we will create a lot of jobs. right now we have a 5'4", 5.3, five or six is such a phony when people look and let them and then think about looking for a job, they are taking off the rule. the number is not reflective. i've seen numbers of 24% actually saw a number of warning to percent unemployment. 42%. when you're looking for a job, and you go around and you look and you look in you try to take care of their family, and the

not get the job and you know what i'm having about because your sheet your head, and you because forhe job statistical purposes your considered employed. , that is theent .iggest joke there is a country we are doing so well in the polls. is the full knee unemployment rate. it is the blue 20%, but i will tell you you have some great things that will play unit is 30, 32. there is anger out there. one other thing, and with that being said, japan, mexico,

brazil, these cntries are taking our jobs. we are a bunch of babies. the will stop. people will treat us fairly. we are losing our jobs, we are losing our faith in what we are losing our manufacturing, all of that. very go ahead. >> is this change would you just ?escribed scarlet >> corporations are going to have an incentive to create jobs . have incentives to stay in this country right >? >> wide-out provide bigger dividends? >> that is not dividing bad either because people have more money to spend. inphi corporation your dividend, that is great. david -- itis when: is good for the economy.

>> should chris christie be fired? >> i know nothing about that. go ahead. populace. -- i am not a populist. bet the country the best locations in real estate, the best everything. you are here at one of them. i have many of these. i've done a great job, i'm employed tens of thousands of people. and employed thousands thousands of people. i have done a good job, but i would not think populist at all. i'm a man of common ends. i'm cutting tax is, i'm going to create a lot of jobs. equity given a tremendous amount of waste. the waste that i get rid of the waste that i get rid of it is going to have a huge impact and

i'm not even putting that in my numbers. i'm usually terrific. one more question? >> [indiscernible] industry, that is a beautiful way of describing it. where are you from? england. what a beautiful accent. toant to get the industry build factories here for fortis building a factory in mexico. mexico to make plans out of tennessee, at tennessee they're going to get it. i watched the motor companies, as you would say, or the automobile companies, to build their plants in the united states. i do not want to biscoe leaving for mexico or any place else. not tothese companies leave chicago, not to leave michigan, not to leave new

hampshire, and iowa, and south carolina, and all of these places where they are leaving at they are going to other countries. they will stay here and they will be so happy. ladies and gentlemen, thank you very much. it has been a great honor. thank you. [applause] trumpthat was donald speaking from the trump tower. he was speaking about his tax plan, with an endorsement like carl icahn. i want to bring in our white house correspondent phil mattingly. you have been listening into his estimate answer as well as his age on tax reform. it start for double on this idea of trade reform. he says the united states, if he is president will renegotiated our trade agreements and our military agreements. >> and build on what he said last night and that 60 minutes interview where he basically

said he would and nafta. it is an interesting policy. that some democrats and labor unions have been pushing for a long time. a new administration comes in, -- they do not read with a agree with a trade agreement, they try to negotiate it altogether. it is something that donald trump said would be coupled with that tax plan that he just released what is interesting trump,s that donald while he is obviously leading in the polls and has been doing extremely well on the republican primaries has been criticized for not having a lot of details. when he is doing now in today's announcement is releasing a legitimate tax plan. it tries to simplify it. individuals will be put into for back -- four brackets.

corporate tax brackets would be reduced to 15%, and a key thing that a lot of people in both parties are looking at is a repatriation. 10%, one time on roberts held overseas. it is all interesting. there is a lot of validity to it, but today he released a tax plan that is the substantive and will have been taking a look at it. one thing to take note of, they got an endorsement for activist investor carl icahn. take a look at this video announcement that is expected to be released on tuesday. >> teddy roosevelt was great. he stood up to jpmorgan. where to begin a guy like that again? maybe he is brash, but he is saying what he believes. some colorful language, but forcing what you heard of the campaign trail.

frustration was washington -- with wh washington. this follows the back-and-forth he had very early on his campaign. now, clearly getting behind carl icahn, and another example of somebody that donald trump will be referencing on the campaign trail to bolster the campaign. a follow-up inif the context of what is going on in washington with the resignation of house speaker john boehner and the context for the ongoing debate over taxes and potential government shutdown but also candidates that are in the republican field? >> and one of the elements that people attribute to donald trump's rise were first apparent in the house republican conference. it is the type of people, the

lawmakers that have caused john boehner's only problems speaker in 2011. they represent strain of populism that has catapulted donald trump to where he is right now. what is most interesting, is that he sat down with pbs for an interview. john boehner points to those groups and people representing some of that strain of populism, and his biggest complaint. >> this whole idea that we're going to shut down the government to get rid of obamacare in 2013, that plan never had a chance. but over the course of the august recess in 2013, and the course of september, a lot of my republican colleagues, who knew it was a fool's errand, had enormous pressure from home to do this. and so we had guys here in town, members of the house and senate which people into a frenzy, believing they can accomplish things that they know are never going to happen. reference toubtle

senator ted cruz, the texas republican. john boehner is essentially putting a voice to what a lot of people have been saying behind the scenes, inside the leadership team. there is a lot letter frustration that people are not paying attention to the dynamics at play. as long as barack obama is the white house, as long as i have no with an approved caucus and said, they push, there's not a lot else to do. most interestingly enough, this does not change, no matter who becomes the next bigger over the next pimm: 30 days. pimm:-- over the next 30 days. pimm: thank you. remain with the

market update. we have a big selloff today. down 2%. >> stocks are across the board red. we're seeing session lows. the s&p is down by 1.7%. the nasdaq is the biggest loser, down nearly 2%. we have not seen these level since august 25 falling economic growth is a reason for this. new data shows industrial was down 8.8 percent in august. that was its biggest drop in four years. in my bloomberg terminal, list check the health of the sectors. these of the biggest laggards. health care and biotech have been struggling as well. seeing his longest losing streak" from years. -- thees had only been

nasdaq biotech's index right now is down by nearly or percent. the etf is down by more than that. for the nasdaq index, this is now down by nearly 19%. week and a half ago, hillary clinton railed on price controls. 142 of 144 stocks are now down. let's go to commodities. oil is falling. it is down to about 2.4%. fulfillmentlowest and our response to the lower profit which i mentioned

earlier. that is because of what happened over in china. it actually touched a six-year low earlier today but the reason is also china's industrial profits. all of that, plus a look at glencore. down 29%. this is a record low for shares in glencore in london trading. across the board a down day. thank you very much. we'll be watching the markets on the market day. plus, alcoholic. -- alcoa. find out why investors are cheering their plan. ♪

pimm: as the bloomberg market day. let's take a look of the headlines crossing bloomberg right now. president obama and the russian president vladimir putin me today here in new york. they have not had a one-on-one meeting in more than a year. they are in new york to address the general assembly. president obama told the wind that the world cannot stand by while russia violates ukraine's sovereignty. the new study says many women with early-stage breast cancer can skip chemotherapy. they will not hurt their odds of eating the disease. and nasa says that scientists have confirmed there is liquid water on mars. they made the discovery after looking at images sent back by a

orbiter. they do not think this means it can sustain human life. it evaporates quickly. the story this morning's alcoa. the aluminum maker searching after it announced plans to break itself into two publicly traded companies next year. joining us now with more on this split is our mining analyst, kevin hoffman. investors pushing for this split for years. why are they doing it now? >> you are seeing with a lot of the mining companies, you are really seeing a letter treasure because the metal prices are all imploding, and the company's share prices are really starting to be hammered.

what can we do for our investors, and they are saying let's break up this company, we will get more value if we have it in two parts, high-value added. the business that people do not like today, which is the smelting business, that is pretty profitable. pimm: why would two companies that are doing the identical things they were doing previous play as long company, why are they more valuable than one company when the total is the same? going to be that it always goes to the lowest common denominator. or bada good business business, the earnings will always be on the good business. the high-end business will get a good premium for its business, and the low-end business will get a low-end multiple. the two combined will help shareholders today. business the value add

?un by the chief executive what does that mean? the goodstaying with business and he is staying with the one that he likes a lot, which is growing. all of the ford trucks are going aluminum. they are in the go-go growth part of the business. it is natural that he would stick around, not the one that is trying to compete against china. deal if indeed this is a that goes through, wouldn't have been better for all, to do this when mining companies were half? -- hot? >> that is a good question. everyone of these countries were , and tors ago to grow be bigger and consolidate. what the market is saying now,

break apart, we want specialty. this is happening all over the place. the boards that really got the message to do something right now, you're seeing all of these mine company scrambling to do the right thing. if you had clients in the mining industry, you would be having meetings about breaking up the company as well. this will be a trend? a trend froms it the bankers perspective, but you have carl icahn making an investment into freeport. a lot these companies, what you're really seeing is rusher from the outside building. as shares fall, the board has to listen. pimm: thank you very much. ofals and mining shares

about 5% so far today. we will check in with the west coast and a wake-up call with a focus on alibaba. ♪

is a bloomberg market day. i am pimm fox. the selloff in stocks has pushed u.s. traded chinese stocks down more than 30%. some of the biggest companies are initiating share buybacks. they are purchasing more than $4 billion worth of each stock, which trades that the lowest level in more than 18 months in let's bring in our reporter. as i noted, baidu, a billion

there -- dollars share buyback plan. learn these companies doing this? >> there are different motivations behind. ella bobby says they plan to do it to reward employees. it shows a positive sign that they are very confident in the .ompany's business they want to do to give their share prices a boost. they do not think that there investors are giving my good evaluation. pimm: shareholders and investors, they come third in the list of priorities of who they are trying to cater to. is this a way to ingratiate themselves with shareholders? is not well known for

pleasing investors. as i said, when they share than 50%, it more really shows that the management team wanted to do something to help out with their shares. think that more chinese companies faced with these same issues, will they initiated buyback programs? >> i think so, if the shares continue to trade at a discount. for example we have already got the chinese company that sells fashion goods and discounts online. they are already thing about share buyback plans. pimm: it sounds like they're on one side of the table, and you have these worries and investor concern about the overall chinese economy. they are coming together at the same time. what is more overwhelming?

our people concerned about the health of the chinese economy? >> that is a good question. we have company's management team telling us that they are scratching their heads about how can we explain to our u.s. investors that our business thes very sound and is not impacted by the chinese lowdown? the has investors do not listen. no matter what they do, buyback shares, or make some comments, their share prices is not going to react to lunch. pimm: thank you very much. some detail about alibaba's $4 buyback plan. now it is time for today's options inside. >> we're approaching the time of the hour. was take a look at how the major

averages are performing right now. you can see that across-the-board vrc a sea of red. 1.75%. 500 is down by is happening because of lower industrial data profits out of china they are bringing down companies in the middle as follows the oils market. joining me for options insight is derivatives strategist at mk and holdings. talk about the vix. it is up 10 point two thirds percent. it is still off session highs. when he looking at them and what are you thinking about volatility in the next month or so? >> the one graph we keep sending around to our clients is the current mood index from august against the five prior shocks of

the last 25 years, when the vix peaks in the 40's. with the futurist gerd is boarded about one point -- one futures curve inverted about four points, we expect a violent move lower in stocks. that will push them to the high 20's, maybe a little bit above 30. we think that could point in the absolute trough for this direction. ,> we are about 26 right now that is only cointreau points higher. you so that volatility will continue to grind on. talk to me about that. >> financing fees for many of the investors's duration. we we're talking about the next couple of weeks. often volatility, down in stock. what happened subsequent to that is to grind lower in volatility and growing up in stock.

we see,lute low potentially, is about $18.30. we do not see the s&p getting back to its july high. it is about six months out from that initial volatility that point you, potentially, out to january. violence in the near term, potentially a grind from there with stocks being range bound before they revisit those new horror is -- those new highs several months out. >> another thing is that investors have been nervous since september 17 when the fed decided not to raise rates, not to give any guidance. there is no new data hour talk out saying that it could happen later this year. that was from the new york fed president. it should be a rise as late as march. what you thinking about this? >> 20% chance says we see it moving after the two-day meeting

on october 28. they 50% chance by year-end. ultimately they view all of this through the lens of volatility. everything we're talking about, this is and should be noted in the shop. farything we discussed as as near-term volatility, he is probably intended in the event, even if we get an oktoberfest ease, and somehow the cloud -- pardon, tightening, then this volatility shock will play out as history says it should. >> we will leave it there. thank you very much. more bloomberg market day after this short break. ♪

pimm: good afternoon it is 9:00 a.m. in san francisco, noon in new york, and the night in hong kong. we have woken up to

commodity companies under huge amounts of pressure. glencore shares plunging. their biggest decline on record. in the stocks also market. stocks selling off, equities are poised for their worst quarter since 2011. we will look at how long the slide may continue. betty: russian president vladimir putin is addressing the u.n. for the first time in 10 years. we will look into what that all means for u.s. russian relations. he will be taking the podium at any moment. pimm: good afternoon. betty: what happened over the weekend? we are seeing this unit rout in commodities. pimm: a big rout in stocks overall. betty: it is enough to give some

people a pretty big headache. i want to go to remy at the bloomberg markets asked -- with more. >> we are basically saying session lows and our fifth straight day of declines. down the the dow is least. we are seeing lows are both the s&p and the nasdaq from august 25. china is the big reason. there is slowing economic growth, more evidence of that being the large part there. industrialowing profits were down 8.8% in august. that is its biggest drop in at least four years. let's dive into my bloomberg terminal right now. i will just are you the halt of all of these sectors of the s&p. almost everything is in the red, led by materials. care,, as well as health utilities had been up, they are flat right now.

we can see that all sectors are in the red. health and biotech have been struggling lately. health care is lower for a seventh day. seeing his love is losing streak in the past four years. let's move over to what is driving the markets lower in terms of biotech. buy a ticket about 4.6% down. this is according to the biotech etf. the nasdaq is down by more than 4%. remember that this index has lost nearly 19% in the past 10 days. that was after hillary clinton basically railed against the industry saying that there was price gouging, especially after what happened in price controls in hiv drug that was hiked over 2000%. let's go over to crude. justommodity right now is

off session lows. it is down by 2.5%. it is its lowest since last thursday. a strong response to profit data i spoke earlier about. let's go to another commodity, and copper. right now this is done by 1.5%. earlier today we did see it his session lows, it is just a little bit higher. in touch a secure low over that. the reason is china industrial profits, but it is plunging. in addition to glencore, let's bring that up. it is plunging because of what is happening in the market sector. , down by nearly 30%. this does make for, down $28 right here. this is its lowest over in london. a record low that we are talking about. read across the board. back to you. betty: thank you so much. pimm: we will stay with commodities.

he mentioned glencore, it has tumbled the most to record low. there was little value for shareholders to let low commodity prices persist. betty: this kind what about the company's entirely that could wipe out the company's entirely. for more want to go to our chief energy correspondent in london. we are all trying to sort this out. this bigtly triggered intraday record plunge for glencore? thehe main trigger was brokerage note of one investor. if prices remain at the current level into the second half and 2016, basically there would be no word from the equity side,

and glencore would continue to go to pay the debt. the credibility of the company is very fragile. they have to emergency equity raising. a dire warning was the one that really triggered the selloff. at some point the share price was down 51%. that: you mentioned report, let me read one part of it for our audience. it said that the challenging environment or mining companies brings us to the question of how much volume will be left for a witty holders if commodity prices do not improve. basically, we could see zero value. just them that we are talking about? >> the mining sector. another big name in the mining it iseat, and american, not about glencore. bear in mind, one thing.

it is an outlier. there are others were very pessimistic about this, but no one is taking that the situation could be as bad as it has been described today. about theyou tell us expertise of this mining company? give us some background and how had waited for a huge decline that we have all been talking about one. they have waited to do this debt reduction plan. get themk you want to in the commodity sector, and to say what goldman sachs is banking. they are the slideshow geoeye, politically conscious. it is very surprising because the ceo, a billionaire, said he wants to go with the company. slowed downey were

in china. in a way, you have to wonder why they missed that. the market was actually seeing it. they completely missed it. i should check out their bloomberg terminal and check out industrial properties from china. a huge decline. betty: the ceo of glencore, his worth $9 billion as of 2011. pimm: the ipo seemed well-timed, and eyesight -- in hindsight. let's take a look at some of the top stories crossing the bloomberg. full against former chief executive is the target of a critica -- criminal in germany.n

prosecutors are targeting accusations of god. has filed ar .riminal complaint it is out unit says more than 2 million of its automobiles were out with software that enable cheating on emission standards. germany's regulators have given the come the intellectual the seventh to develop a plan for meeting emission standards. betty: next are is making bids for media general. it values them at 1450 yes share -- $14.50 a share. theirre trying to torpedo acquisition of a tv station at magazine publisher corporation meredith corporation. there's a big deal of the natural gas pipeline business. energy transfer.

, the first it was rejected in june, and looked for other by pimm: president obama reaffirms american support for its allies with force if needed. president obama addressed leaders from nearly 200 nations this morning at the general assembly meeting. obama said he seeks peaceful solutions first, but he reminded the leaders of america's military might. >> as president of the united days, i am mindful of the dangers that we face. they cross my desk every morning. i laid the strongest military -- i lead to the strongest military everthe world has neve known. i will not hesitate to check my country and my allies

unilaterally with force if necessary. but i stand before you today believing in my core that we, the nations of the world, cannot return to the old ways of conflict and coercion. pimm: president obama speaking at the general assembly of united nations earlier this morning russian president vladimir putin has just begun speaking. let's take you to life pictures and coverage from the u.n.. and was approached as a tool -- those are your top stories at this hour. with more insight into what president obama and president putin will be talking about this afternoon in this historic meeting. us fromlcote joins london. do expect much progress between the leaders today? >> maybe.

he is talking about russia's readiness to work with other countries to solve problems. he is talking about syria. tanks, attack helicopters, and fixed wing aircraft we heard president obama earlier. when i started listening to him, it sounded like you would be unflinching, uncompromising. when he speaks with president clinton, it will be a disaster. then he had a little more accommodating things to say. have a listen. pimm: we have some technical difficulty. point toif you could the russian economy, and if there is any pressure on vladimir putin to seek some agreement or accommodation with president obama because of u.s. sanctions related to russian behavior in ukraine? >> event there is.

this is something that president obama alluded to in his speech to the u.n. general assembly, talking about the pressures the sanctions have created in russia. i'm not sure i agree on the ruble. we have seen a lot of capital leave russia, and we have seen some very small amount of money go into russia as a result of the sanctions. this huge problem, and he wants to diversify the economy. he is looking at russia's biggest recession since it became -- since the collapse of the soviet union. he needs to get rid of the sanctions. if you can get president obama to send down and strike some kind of accommodating town with him and they can start the kind of work together in syria, what is important is later this week he will get together with angela merkel, and others and if he can keep that momentum going and make sure that there is no more fighting in ukraine, that we do not see a flareup in fighting there, that he could set himself up for an easy of the sanctions

-- at the end the of january they are up for renewal and some of them could be eased. that was what president obama and his successor in a position where they would not want to put lowe's companies at a disadvantage. is possible that is what he wants to achieve with this meeting. he wants to be moving toward that. pimm: one of the left important factors is the price of oil. oil stays where it is, then this is not going to be good for the russian economy. this is where they earn their currency. >> that is right. he knows that. he is well aware that he has limited options right now. his only real option to get things going is to limit some of the restrictions on russian companies in terms of their ability to raise money and capital markets outside of russia. to get investment going into the country. he cannot do anything about the oil price, or the week ruble.

he can try to get the sanctions removed. he can create division between the europe and the united days, and the great division in the europe itself to it progress on that ends. you for the perspective. pimm: we want to bring in a senior fellow at the transatlantic academy, and also the author of the book the limits of partnership, u.s. russian relations in the 21st century. she joins us now from washington. thank you for being with us. of the topicsink of discussion will be between the president and vladimir putin? >> two main topics. one is obviously syria. planill play out a cooperating to defeat isis rate the other topic will be ukraine.

the russian, as ryan said, they are waiting to the if the cease-fire hold and is the europeans soften of their view on sanctions, and begin to let some of them. i very much out that the u.s. will lived idiots sanctions until the ukrainians get control over their border with russia which they are unlikely to do for a long time. those of the major topics that the meeting will be about. saw, he ise just beaten right now at the u.n.. he did a give a little bit of a glimpse last night about his thinking on many issues, including syria. let me just play for our audience a part of that conversation. >> lasting stability can only take hold when people of syria forge an agreement to live together peacefully. the united states is prepared to work with anyone -- >> there's a threat of their

return to us. instead of waiting for the return, we are better off helping us out fight them on syrian territory. this is the most important thing, which encourages us and pushes us to provide assistance to assad. in general, we want the situation in the region to stabilize. betty: of course, we believe that russia has alter your motives. they want to assert themselves even more in the middle east. how does the president walked the line? >> it is very difficult. that interview was vintage vladimir putin. we understand and the rest of the world understands that one of the main recruiting tools for the islamic state is the brutality with which assad has treated his own people. if you say we are going to a coalition to defeat islamic state, we're going to direct those, but we're going to

support him because he is a force for stability, and the long run that is not going to work very well. i'm sure that president obama will listen to what he has to say, we now know that there is an agreement with iran and russia and syria to share intelligence. we have to respond to what he is doing. this is a really shrewd move on his part. we also understand that in the longer run you cannot solve the -- ofm of the rearview the civil war. they want to be there when assad goes really they want a say in who his successor is they want to have greater influence in the whole middle east region. that is still cheerier motive. , is that point to make there are at least 2400 fighters fromre russian citizens

the north caucasus and other parts of russia who are fighting with his lungs eight. it is the second logic into the sea of foreign fighters. when they come back to russia they contribute to greater instability there. i just want to challenge you a little bit on something you said a moment ago, having to do with resident bashir al-assad of syria. in the context of what has happened in libya, egypt, and what is going on in iraq, why does it seem to be a country that the president will not introduce stability in the region? everybody is now saying he is going to stay for some time. even secretary kerry has said that. no one is saying he has to go now. but the idea that he is a long-term solution to the holdingof stability and

syria together as a country, i think that is very questionable. the: in the questionable in context of what we've seen, having gone through the similar issue in libya with gaddafi and also mubarak in egypt? does that create instability? >> of course it isn't. completelyw a dysfunctional state. we know what happened in libya. the question is, how are you going to balance the interests of syria and keep the country together and try to end a civil war? thebrutal treatment of syrian population, the use of weapons and things like that, and that you have greater stability. betty: before you go, we have had many voices this morning speak out on russia and syria, including donald trump. he made his stump speech as

well. let me play part of the that he had about syria and russia. >> russia wants to get rid of isis, we want to get in devices, let russia do it. what do we care? >> what about in iraq? >> with isis and iraq, you have to get them out. younger fight them. >> troops on the ground? >> if you need them, yes. betty: that is what people say are blustering talk from donald trump and other people. can the u.s. back of the top talk? ? ? share a common enemy. we agree on that. but if you go back, the only time since 9/11 which really have been able to work with the russians to defeat a common enemy, which is terrorism based

on islamic fundamentalism, it worked in the fall of 2001 when common goals. but it really has not worked since then because of a variety of counterterrorism cooperation and attempts to deal with these issues in the middle east. that is because we have very different goals from the russians, fundamentally. watch, history indicates it will be very difficult, which does that mean you cannot give it another try. betty: thank you. we want much more on the bloomberg market day. pimm: coming up, a look at the market decline. stocks are falling. the s&p 500 is down more than 1.5%. ♪

betty: this is the bloomberg

market day. donald trump unveiling a bold tax plan that he says will not only make america great in begin -- again, but cut taxes for millions of americans. >> >> and will provide major tax relief for middle income and or most other americans. there will be a major tax reduction. it will simplify the tax code. it will grow the american economy, and a level that has not seen her decades. add to of this does not our debt or our deficit. betty: big promises for a big personality. also mentioned on 60 minutes that there would be zero taxes for a good number of americans. bloomberg white house correspondent phil mattingly joins us now from d.c. with today's 12 tax plan.

how does a really measure of? a's application and it is a reduction, at least according to the documents provided by the campaign today. it was reduced from seven to four the number of tax bracket. and pointless is that on 60 minutes, an extra 31 million households currently paying income tax would no longer have to say all five for the lowest bracket which would be about 5%. the top rate would be about 25%. companies and corporate tax rate would be reduced to 18% for the question of course is how are you going to pay for all this? will be revenue neutral by the third year of implementation. a lot of that will be targeting holes a deduction for the middle class. they will be trying to cut deductions out entirely for .ealth but -- wealthy

one of the interesting things is how they are trying to treat cache says come on by companies overseas. is that about $2.2 trillion in cash held overseas. of idea is a repatriation sorts. a 10% one-time tax to bring the money back. it would be 10% across-the-board for all international cash held overseas by u.s. companies. that would raise revenue and an interesting element of this. pimm: thank you very much. that is it for me. i will go read the tax reform plan. betty: good luck. do not fall asleep. we will be back with more on the bloomberg market day. ♪

a crisp fall day as we start our trading week. it is gloomy and overcast

outside which reflects the stocks today. visiting a look at the stories hour. previously alon holdings oh homes suddenly fell. overwhelmingly agree on citizens united, they are opposed to it. you present when the ruling overturned. only 17% think it was a good decision. they say corporations have a first amendment right to spend unlimited money on presidential causes. to get congress

to approve the import export banks charter. john boehner is taking aim at hardliners, calling the tea party fall province to province more than they can deliver. >> winning the vote was never an issue. i was going to get the overwhelming number. but why do i want to make my republican members walk the plank? they will get criticized at home by some who thinks we ought to be more aggressive. kevin mccarthy is currently number two in republican leadership and is thought to be the next speaker candidate. ramie.ome

it is a red morning. the s&p and nasdaq are falling to their lowest in a month. -- thepect biggest loser nasdaq is the biggest loser this morning. china and its slowing economic industrial profits. that was the biggest drop in the past four years. let's take a check of the health of the s&p's sectors. it is read across the board right now. health care and materials are down by nearly 3%.

health care and biotech have been struggling lately. it is seeing his longest streak in four east -- longest losing streak in four years. biotech is falling for the seventh day in a row. by 5.1%.tf is down here, only 19%t of its value in the last 10 days or so. you will remember the reason why is one hilly that is when hillary clinton railed on them in a twitter post. of 144 stocks on this index are down today.

biotech stocks account for 40% thehe index, gilead saying worst day in a month. the worst performers on the s p, low weight estimates for apple. they did say that they sold 13 million new six as an access less units versus 10 million units of prior models. facebook share to stamp a month, down by 3.8% this year after angela merkel question the company's efforts and restricting racist posts. they have been down only five buting days this month, that is shedding a little bit of those losses from earlier. betty: we'll keep our eyes on apple. thank you.

make sure you stay on top of their movement today. coming up, the yuan general assembly -- u.n. general simply isn't new york. mark a chance to sit down zuckerberg, angela merkel, and talk about what went down at this high-powered roundtable. we'll have the new iphone sales at what is driving that strength. still ahead, shall ditching alaska in a surprise announcement. is this an end of arctic ambitions for oil? ♪

betty: welcome back to the bloomberg market day all of the market recognition -- day. all of the market action started in asia. chinese industrial numbers came out. at the fastest pace in four years. the report from hong kong. >> the chinese economy has really hit. reference translates to the sharpest decline in courtroom resources, mining, traditional heavy industries. you have the likes of pharmaceuticals still reporting fairly modest improvement.

falling prices, lower return on their balance sheet and you also have headwinds. betty: now look at the top stories this afternoon. taco bell once to expand on the success of its mobile app. a new website below is customers to pay for orders pay for them and find a nearby taco bell. customers using the mobile at spend more than $10 on average world. -- order. centimeter mystery on mars. evidence of liquid water on the red planet. this is a necessary precursor to life. tohas been known for years have ice and ancient water flow, but this is the first compelling evidence of the ongoing a system of flowing water.

might get his wish to go to mars. lance armstrong went full circle in a long-running court case. resisting for years he is apologizing to a dell's promotion company is paying back what they paid him. wins,aid bonuses for his but they said they should pay his use of performance-enhancing drugs was proven to be true. the family flick about vampires earned more than $47 million, a record for a september debut weekend. is a look at some of the top stories at this hour. we have been following closely the commodities routes this morning. out a alaska. shall announcing it will cease further offshore drilling after

not produce any major successes. here is what he told me about what drives the companies envision. >> we are not driven by topline production numbers. we are driven by value. are happy to sell the assets that we do not want to keep in the portfolio. constantly working to hydrate of portfolio right of the production falls for times, that is fine because we are doing the right value things for the company. have: shell and its peers been working to curb spending after the price of oil pumped 50% in the past year alone. we are joined by the senior oil and gas analyst at bloomberg intelligence in london. matching night with their announcement in alaska, it all makes sense? >> our figures are high reward and high risk business.

if they do not have the quantity, it is not worth it. installed,cts have and going forward with the project in norway. there are only a few companies left that future projects like this. betty: is this the end of arctic oil? >> it depends. technologicreally a breakthrough, and they really managed to replace offshore by floor installations only, that is one thing. that regionshing are trying to develop that makes our oil platforms redundant. is giving the industry forward. they higher oil price will do this, because you have to make sure that the public is ok with drilling in the arctic. betty: this supposed by plenty of environmentalists, but did at have to take $7 million worth of spending before they made this decision? >> shall said that this area

would potentially have as much oil as the gulf of mexico, but it is high risk. betty: we saw the downside of that risk. when we are at the aspen conference, they just announced more developments in the gulf of mexico, and what a big potential there is in that area for oil for them. discoveryys, is that and that project going to help off since their launch of the arctic circle? shell and other companies have a portfolio of several potential asset that it could develop. but theyot work out, are sufficiently diversified across the globe to develop one of these access. one of these assets will become a high potential development.

betty: what happens next four shell? what is this pullout going to mean? what cost are associated with that? >> this is part of the business. they invested a lot of money, and it is just developing new oil reserves, becoming increasingly expensive. the intakeo go for impact plays. they need to go to the arctic, the offshore brazil or africa. these are the kind of plays that big companies need to go after to be able to cover the cost. betty: before we go, is there any sense at all in the united states? we heard about production not easing up given the decline in oil prices production might be leveling off. is there any sense of that right now in the u.s.? >> we have not seen the end of this yes.

it is very difficult tsee how cost-efficient shell producers will become, how cost efficient angela merkel will become. it is just in the middle of being developed. we have not seen the end of where the cost efficiency. your betty: thank you. shall no longer drilling in the arctic circle. withg up, i got to speak mark zuckerberg, angela merkel, and bono for a wide-ranging conference. what facebook announced. ♪

betty: welcome back to the bloomberg market day. now i look at the top stories at this hour. he's -- attorneys

for dennis hastert are trying to work out a deal for his hush money case. according to multiple media outlets, he allegedly paid a younger man money to conceal sexual misconduct equity with a high school teacher and wrestling coach. yes flight not guilty to violating banking laws and lying to the fbi. in thes a big deal natural gas pipeline business. energy transfer has won the fight for williams company. the price, almost $38 million, including debt. their firstected bid in june and then looked for other buyers. the new york prison worker who helped to prisoners escape was sentenced this morning to seven years behind bars. she said she was in way over her head, admitting giving the

inmates tools. one was captured, one was shot and killed. that is a look at the top stories of this hour. i want to bring in the two people who just joined me in the studio. julia, who knows the workings of the united nations, because we set -- she was a former prime minister of australia. we are many leaders gathered in new york city. she was president in 2010 to 2013. she is now chair of the global partnership for education. i also want to bring in mark crumpton because we are looking at how companies are participating in the gathering of world leaders. mark: you attended a meeting this weekend with mark zuckerberg of facebook. he wants to bring internet to refugee camps. i was wondering, what was that like, and why is he doing this? been, mark zuckerberg has

one of his big passion projects, which is also part of the bottom line, is getting the world connected. getting the two thirds of the world is connect -- not connected to the world an event on the internet. we were sitting alongside the head of the un's global context, angela merkel, bono. i was pinching myself, say why am i here. t he announced is he is going to allow and facilitate internet access to the millions of refugees were now camped out in laces like turkey and hungry and elsewhere. mark: that dovetails nicely into your work on education. >> is most certainly does. what we are trying to do it the global partnership for education is ensure every child in the poorest races on earth, including in refugee camps get a great education. it is a big mission.

we are working with 60 developing countries and we are very concerned with the number of this lease people on our planet at the moment. there are far too many children missing out. the statistics have some good news, some bad news. we have made a lot of progress since the millennium development goals, and 17 million more children are in schools. children 124 million of primary and look or secondary age who do not get to go to school. this is a challenge for all of us. betty: how do you get an issue like that raise to prominence at a time where we have been hearing from president vladimir obama and angela merkel or software we have the refugee crisis, but you also the global economy slowing down, and in trouble. you heard that from the chinese president who is trying to reassure about the chinese economy. syria, isis, those pressing issues. how you get that up there in prominence? >> it is a question of what do

we need to do today. all of these immediate things that are pressing in on political leaders. i know that is like from experience. i know what we need to do to build for the longer term. the evidence is absolutely clear. girls and ate population, the nation will be more prosperous, more likely to believe in the benefits of democracy. people are more likely to be tolerant of other religions. we need to make this now. i increasingly feel and and delighted by the fact that we are opening the door in and around the u.s. for the last few days. the poem made a very strong point that all of the sustainable development agenda is only achievable if we invest in education. it is the great enabler. we need more financing and to give you a statistic there, a cost on average a dollar 18 a day to educate a child in a developing country.

that is primary school and secretary -- secondary school. we all spend more on coffee today than that. the gap between what developing countries finance and that whole dollar is $.14. $.14 per child per day. there are regimes in this world who feel that young girls, young women, should not have educational opportunities. that they should stay at home, and that this is a male domain. you know this for a fact that there are places on this earth who do not believe that women should have equal rights. >> there most certainly are. the example of malala is such a huge example. i can tell you from practical experience where countries like afghanistan, where we had troops fighting there, countries like pyongyang, hard places where many people do not believe in

educating their daughters, we have been able with our developing country partnership to work in communities and to get girls to school. i'm very pleased that that change is possible. we just have to keep doing it, keep rolling it out, keep making things able. is an poor family, it economic equation as much as a education question. they: we are talking in midst of one of the biggest declines we have seen in the commodities market right now. flashbacks to 2011 here in a tri-lam -- here. australia is so very commodity reliant. there is questioned whether australia is going to go through a recession given what has gone on in the commodity prices in china. an optimist be an in behalf of my nation.

improvement.reat we are strong in the services economy. that was troubling, and i think the political debate in australia is focused on jobs. for my side of politics, that is the central focus, but i know that the government is trying to grapple with this agenda. mark: you talk about the political agenda. is it possible you will see you heart of that agenda again? will you seek your party's leadership? >> no. [laughter] answer from aght politician about where she is headed. thank you so much. the chair of the global partnership for education. the former prime minister of australia.

mark crumpton will be staying with me for the next half hour. preminger was talking about, the education initiative, and what mark zuckerberg was talking about with the refugee camps, this is just a question of connectivity, because we are such an interconnected world, such an integrated world, that the speed at which you can get information, the speed at which you can get education in a dynamic that is going to change the plan as if it is done in the right way. betty: he had mentioned a certain number of people you reach to get connected will lift one person out of poverty. that has a direct result on people's standard of living. we will have much more the bloomberg market day. back in a moment. ♪

is the bloomberg market day. oil and commodity prices are plunging as shall announces it

will halt a $7 billion alaska oil exploration campaign. them and why an interest rate hike is likely this year. we will break down his outlook. >> and we will look at what president obama hopes to gain from a face-to-face meeting with russian president vladimir putin. mark: thank you so much for joining us on this monday. let's get a look at the markets at this moment. i'm seeing a lot of red on the screen. >> we are now seeing our fifth straight a of declines. nasdaq falling to the lowest level since august 25. s&p 500 down.

the biggest laggard is the nasdaq. china has been continuing the reason of -- has been a continuing reason of economic growth. that is its biggest drop in four years. let's check out the health of the s&p's 10 sectors. health care materials and energy down the most. health care down by nearly 4%. materials and energy off. down by 2.5 percent. also specifically, health care and biotech have been struggling today. health care for its seventh straight day. let's go over to commodities. oil is falling, down by 2.4%. since last lowest thursday or so.

let's take a look at copper. it is the world's most consumed metal. the session lows, off they 8 a.m. or 9 a.m. low. it did touch the six-year low right then. now at a record low. is actually down the most in almost two weeks. this is happening after fed chair janet yellen was saying a rate rise could happen this year. attractive, and it doesn't pay interest. right now gold is down by 1%. the dollar is losing strength. rates may rise later this year. now it is down by half a percent.

positively.acting this is its biggest fall in about a week. betty: we have that big spot line on commodities. -- freefall flaw plunging. the company faced a bleak future. commodity prices do not recover. it will split into two dependent companies. mark: and shell is hoping its alaska oil exploration campaign. alix steel. i walk to your desk an hour ago and said what is going on? alix: this is a truly incredible story.

the company took to the woodshed and chopped off its head. if commodity prices stay at current levels, the majority of the money and eventually all money will be going to pay off its at. investors basically get nothing. look at the four big players. how debt had been increasing. that particular ratio is over 300% at glencore. rio down 80%. call each other and just say let's deliver the bad news together so nobody is going to get blamed? which was the most shocking to you or which will have the most -- have the biggest impact? glencore'sis by far story.

the stock has been terrible for many years. few weeks have been pretty disastrous. in mid-september they announced their equity offering and trying to take down their debt. they had $50 billion in debt. need to do that. there are two levels of junk. a credit rating is a huge risk. this definitely is going to have huge implications. for investors, what does glencore tell investors about their strategy? are they confused at this point? alix: it seems like glencore is saying we are restructuring, try to pay off billions of dollars of debt, we have an equity are getting -- we have equity marketing. verye taking this seriously. it doesn't seem like investors reaction has been positive as of

late. toers say they were going shut in some minds and restructure. we will send your stock up. 2.5%ffering was priced at below the closing day price of the previous day and shares are down 46% from that actual price. they haven't gotten any kind of relief. this is not the base case to be clear. likemmodity prices do stay this, their value is absolutely nothing. it will all go down. of our bloomberg intelligence analysts said it is kind of an outlier there with that assessment. let's move on to the splitting of the company. is this the beginning of others doing the same? alix: they had two different companies operating under one

name. one company was not doing well. that is what you say in the ford f1 50. that is what we actually do really well. we use 450 kilograms of aluminum at three times the current amount. the other part of the business is what it really stinks, and that is production business. you have prices terrible for aluminum. at elland he look premium and u.s. premium, they have been cut in half in four years. now they are losing money on premiums. that is where that was -- that is where the business is done poorly.

this is such a bizarre circumstance. they spent $7 billion doing it. we are not finding the oil we need. analystsion by some has been we are going to take some charge in the third-quarter earnings. this is a better long-term move because it is so expensive that it is cut and run right now. that mean for the alaska economy? alix: that is going to be a huge fallout. going to be rough for the ancillary companies. those guys apply to surfaces and they are going to be losing some contract. rakes andhave more the rest of the offshore drilling world. there is a big not affect on them.

betty: business as usual. let's get a look at other top stories. mark: she's a trooper. betty: moving on to other top , a rare meeting with vladimir putin. president obama reaffirms america's support for its allies. he addressed leaders from 200 nations at the u.s. -- at the un's general assembly meeting. he reminded leaders of america's military might. ofsident obama: i'm mindful the dangers that we face. they cross my desk every morning. i leave the strongest military the world has ever known. and i will never hesitate to

protect my country or allies unilaterally and by force were necessary. but i stand before you today ,elieving in my core that we the nations of the world, cannot to return to the old ways of conflict and coercion. betty: he called for a u.n. resolution to fight the islamic state. mark: ending sales of previously owned homes unexpectedly failed in august for the second time this year. inventory is low leading to higher prices. the outsiders are holding the inside track in the republican presidential race and rivals are gaining on the leader. one percentageis point behind donald trump, counting the margin of error. carly fiorina and marco rubio are tied for third.

jeb bush swamped in fifth. betty: if things don't work out for warren buffett, there is always pro football. as you can see there, a miami dolphins jersey. a show of support for his team. the 85-year-old budget dates back to his time. he is always there to cheer on his hometown. >> they are not doing too well. >> buffet clearly couldn't help with a lucky charm there. maybe the coach has to go. coach has to go?

a while. betty: that is the extent of my football knowledge. mark: that is a look at the top stories this hour. it's turned to one of the biggest investment questions area when will the federal reserve raise interest rates? he said, in part, the fed will raise rates later this year. betty: what else is there to say? executive saysf he see more signs of strength. >> the amount of income is down to what it was in 1985. betty: joining us now is chief economist carl riccadonna.

fed isalways say the very -- even though they are trying to be transparent they are not. president dudley said we were data driven. if the data holds up, as it looks to be the case, very likely the fed could raise the rates by year end. that gives him a definite option that they can delay until the first quarter of 2016. if you look at the domestic economy, consumer spending looks good. things look good for now but we have to keep eyeing this negative feedback to consumer sentiment. confidence consumer and see if there is a similar poll back and then we will see motor vehicle sales on thursday. that will tell us even if they

are not complaining about that sentiment, that if they keep a 17 million unit run rate than things aren't so bad. mark: what are investors to read into this? we see markets are down today, but bill dudley is the president of the most influential federal reserve bank in the united states of america. when he says interest rates will probably be raised this year, can you take that to the bank? >> there is that operative word in there, probably. he is definitely couching his guidance there. he also highlighted that we have to watch what is happening in the economy due to tightening financial conditions. when you see the dollar getting stronger or stocks are falling or credit spreads are widening, you see a tightening of financial conditions taking place. are doing the job of the fed. dudley gave explicit guidance, watched to see the negative .allout

if the economy slows than the fed is going to move to lose -- move to later of the game. >> treasury and corporate bond spreads are widening. that as thelook at markets doing the work for the fed, isn't that also a warning sign as well? we are at the stage of the cycle. investors are starting to get concerned about the outlook. as the credit spread widens, it could potentially lean toward less corporate confidence. to such a degree that is mrs. pull back on the pace of hiring.

to this point it has been pretty resilient. mark: sounds like it is the fed. on the bloomberg market day, apple says it broke a sales record with new iphones. >> we will tell you where they sold the most. , tensionmir putin spread between the two nations. mark: stay with us. bloomberg market day continues in just a moment.

mark: remy joins us with a look at some company news. remy: this is basically a look at the most popular stories on social media. this is the top trending company. alcoa also trending here. you can see a little twitter icon. alcoa has said it will split into two public companies. interestingly, even if you look at the percent change you can see most of these are laggards in the red. looking at specific stocks, let's head into tech.

memory circuit shares, those had been rising. they had fallen into the negative. investors not sure where to go here. cypress semi conductors say they may make a bet -- may make a better bid. also getting a boost from raymond james, which raises it to a strong by. let's go into tech and look into apple and facebook. they really did blow away estimates. 10 million units sold last year. and answer the question from the top, most of them bumped 2.5 million. apple is down 1.25%. facebook is down boy -- down by four .3%. this after angela merkel

question the company's efforts that posts are racist. facebook shares have been down just five trading days this month. next star broadcasting is bidding 15 per share from media general, for $1.5 billion. general.inner is media one positive in a sea of red. mark: a look at some company news. coming up on the market today, apple is boasting about its latest broken record. the company said it sold 13 million of its newest models over the weekend.

mark: i am mark crumpton here with betty liu. betty: the world's largest company sold 13 million iphones in a debut weekend. mark: china, customers they're flocking to stores to get their hands on the latest handsets. the models featured 3-d touch. joining us now from san francisco, adam, where we expect numbers this huge? adam: these numbers largely signal earlier this month it would be a 10 million opening weekend. apple did not have the device on sale in the opening weekend last year. analysts estimate apple gave to 3 millionr 2.5 new customers.

betty: the idea of how popular this model is going to be, isn't that going to come until after the holiday sales? adam: this is something a lot of investors and analysts track from year-to-year. january is going to be the real figure to give a sense of where demand is. quarter, whento you look at the numbers, is about 30% growth each quarter. that is going to be a tough number to beat. when they came out with the bigger screens, it had astronomical sales. >> other other metrics more important than opening weekend sales? the most closely watched corder is a holiday.

apple is really concentrating its product lineup around the holiday. those numbers that include october, november, december, are what people watch the most closely. it is pink. >> mentioned by it to. thank you so much. i know what i'm getting mark for christmas. yes. betty: i'm signing off now. discuss u.s. russian relations. bloomberg market day continues in a moment. 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. mark: thank you so much for staying with us. let's go straight to your top headlines.

jamie dimon says the american consumer is in excellent shape. says public policy issues are holding the u.s.-backed, especially when it comes to immigration. we need to have a rational immigration reform, especially keeping the smarter people here. engine, math, advanced degrees in our universities, which are among the best of the world. they want to stay here and we don't let them. the u.s. needs to do better with infrastructure and education. the u.s. senate is expected to pass a bill that would prevent a government shutdown. pullingconnell would be a divisive planned parenthood issued out of the spending plan. could stillfunds snag a bill in the house of representatives. government agencies will run out of monday on wednesday if congress does not act.

general electric is moving more jobs out of the country. 300 50 workers and an engine facility will relocate to canada. to urge's latest move congress to renew the export charter. bank provided billion dollars of credit to ge's international customers last year. comcast is making its biggest overseas investment ever. unit will paysal $1.5 billion for a majority stake in universal studios japan, which operates a theme park in osaka. brian roberts says it is the start of the company making more global investments. says scientists have confirmed there is liquid water on mars. scientists made the discovery after looking at images sent back by a nasa camera orbiting the red planet. they believe the martian water evaporates quickly and finding the water doesn't necessarily mean mars can sustain life.

that will holiday cause many to raise a glass. it is national beer drink day. survey, ato a gallup glass of such as the most common alcohol for most americans. more than 40% prefer beer over wine or other liquor. way tolso the preferred get to know somebody. those are top stories. coming up on the bloomberg asket day, jason day's reign the number one may be over, but he will tell us why he is not worried. we are seeing a crumbling in commodities. what that means for the global economy. president obama is set to meet president vladimir putin face-to-face. after russia's military moves in syria and ukraine. -- president putin addressed the issue of stopping

the -- stopping the bloodshed, where the united nations said 8000 people have been killed in the last year and a half. >> kenley put an end to the bloodshed and find a way off the lock. territorial integrity. mark: joining me from washington is the former u.s. ambassador to ukraine. welcome to the broadcast. you heard of with mr. putin had to say. he is unrepentant about russia's move in ukraine. we were wondering what your thoughts are. demo what putin said is what could be expected to be said from him. he has an interest in his policy , and he makes the case whether it is an international form or in press interviews that the

russians had a right to be involved in that situation. i didn't expect anything different. the proof will be whether or not the agreement can be carried out. >> last night president putin told charlie rose one of the reasons russia took the action in ukraine is because of what he described as the unconstitutional removal of the prior president. does the description kerry anyway weight in the international community? if you look back to february of 2014, when you had a number of european countries into a sing with the ukrainian opposition, as was president? pitch, they had come to an agreement after it was signed within 24 hours. the president decided to leave the country. he was basically giving up the

reins of power that left a huge vacuum filled by the interim government. >> have the international sections have any significant impact as far as you could tell? >> i remain skeptical. i would say two things in reference. andink the price and oil the drop of product has had more of an impact than the individual sanctions we place on russia. i think some of the self-imposed sanctions the russians have instigated in retaliation against the west in terms of importing foodstuffs have had a greater impact. haved seen the russians retaliatory and sanctions. that combination has had a greater impact than we placed on individuals or on organizations throughout the eu or united states. >> the meeting today between president obama and president

has madee white house it clear in the media that president putin was the one who requested the meeting, if that was the case what does he hope to gain? i don't think it is important who requests the meeting or not. it is important that two leaders are getting together to talk about this, about the world situation. i think putin hopes to gain a number of things. most of it will be optics. can show he is a key player, not isolated. thereby showing strength he has to the russian people, that they are undergoing hardships and he is making russia great again by having these high-level meetings. in terms of optics it also plays .o the international audience

here he is at the united nations, speaking to the whole world. the optics of it are very beneficial for the russian side. during that speech at the u.n., president putin suggested there be a ministerial meeting so everybody could be on the same page. president putin said the only people who were fighting islamic state militants are syria and the military forces of president bush are sought. would it take pressure off president putin because of their support for syria, and a second leawood the international community coalesce around such an idea and therefore send troops and supplies and armaments to fight the islamic state? >> you have to look at the details of any proposal. i think there is a fundamental problem in what president putin

while theed, international community is ignited -- is united in the fight against isis, the question is what do you do with a syrian government? the russians favor a maintenance of a sudden power. the united states has made clear it will have to leave the scene with a political solution to the conflict that is ongoing in syria. the underlying problem in terms of dealing with isis is what do you do it assad regime. mark: i have 20 seconds. our relations between the u.s. and moscow as bad as we make them out to be? don't think they are as bad as people make them out to be. russia played a constructive role in terms of the iran

situation, in terms of the nuclear agreement. we will have to see how it goes in terms of syria. the actions by the separatists -- i don'tnnexation think we are at a situation where we are cutthroat at odds with each other in cold war stay. a political solution to the ukrainian situation as well as the syrian situation. mark: it has been a privilege. thank you for your time. still ahead on the bloomberg market day, hollywood's luxurious homes. we will tell you why some l.a. properties can be yours if you have the cash and a lot of it.

mark: let's get straight to a check of the market. good afternoon. -- ramy: the nasdaq is the biggest loser. s&p 500 not far behind. the nasdaq, we haven't seen these devils. china shows of industrial profits were down .early 9% in august dive with me and let's take a look at the s&p sectors.

health care down the most by 3.5%. energy and materials down by 2.8%. utilities also in the red by 2.8%. the nasdaq biotech share is what i want to look at now. index has lost about 20% or so. you can see the pdf is down by more. this index lost 20% since a week and a half ago. hillary clinton derailed on the health care industry and talk about the need for price gouging and price control. that 142 of 144 stocks are down in the red. let's take a look at some

specific stocks. lowest in january, down by 4.9%. bio touching his lowest level since 2013. seeing its worst day in three years. the health care sector is also falling because of valiant pharmaceuticals. shares are down by 12%. they have been down by as much as 40%. the reason for this is because democrats are being asked to subpoena the company for documents related to job price increases. this is the latest move by politicians to curb price hikes. pretty much a down day across the board. mark: chinese industrial companies are seen profits drop at the fastest pace in four

years. david ingles reports from hong kong. david: group earnings fell close to 9% from the year war, which translates to the service decline in four years. those with resources, mining traditional industries. 10 to 15%. utilities reporting still fairly modest improvement. the reason for the decline is lower returns on the balance sheet. each of which fairly unsurprising given the movements china is facing. mark: volkswagens former ceo was the target of a criminal investigation. he step down over the admissions

cheating scandal. that's over the admissions cheating scandal. the automaker filed a criminal rates to assist in its own investigation. is cutting 2% of its workforce. whole foods is fighting mainstream grocers offering similar products. a coffee grower could get a new tree if you make a purchase at a starbucks branch. the company is donating a tree for every bag of beans sold at u.s. outlets. the goal is to raise awareness about the rust fungus that is damaging coffee crops. always dreamed of living in a home the size of the white house without the politics? for $115me true million. a real investment -- a real estate investment firm is offering the ultra wealthy the opportunity to build a huge mansion on the hillside overlooking los angeles. joins us with more on

trophy mansion. scarlet: this goes back to the idea that los angeles is one of the big global server cities -- global super cities on par with london and new york. a lot of billionaires are trying to spread their wealth and stick it -- and put it away where it will depreciate. bank boughtrivate an 11 acre site near the hotel bel air. the first a lot goes on the market tomorrow. doesn't that sound nice? mark: when i read the story, it is an another example of money

that had been waiting on the sidelines. billionaires are snapping these places up. getting they are not much return of their home currency, and they need somewhere safe to put it. property prices in london and new york have gone skyhigh. five properties sold for $100 million or more last year. this is certainly not limited to los angeles. mark: this is on bloomberg.com and on the bloomberg terminal. emanuel is in new york, trying to get a fire on his proposal and proposed property tax increase. take onoing to get his

whether he was convinced by rahm emanuel's sales pitch. mark: some sun -- some serious financial problems there as well. we will see you in a couple of minutes. still ahead, he is one of the top golfers leading a new generation of the sport. i will speak to jason day, the 2015 pga championship winner, when bloomberg market day continues in just a moment.

was raising was illegal in china. for decades. the country has also faced some economic challenges recently, and that could affect the

thorough bread industry. it does affect the number of horses that they buy at various times, depending on what is happening to those currencies around the world. >> he is a bloodstock agent, someone who advises wealthy clients to buy horses here and in europe. -- they were reasonably priced in europe. the dollar got very weak and it was difficult to buy in europe. >> he is looking for bargains. james is also a bloodstock agent. kentucky fromd to inland and says international demand is up, and it has become easier to buy shares of racehorses.

>> when the good times roll they role here as well. >> just before the financial million. record $11.7 highest priced at this year's auction was 2.1 million. american sellers paid attention to fluctuations. elliott walden runs winstar farm. more opportunity to buy. if the market is up to create more opportunity to sell. >> right now he is keeping an eye on japan. first american buyer to come and go over there and come back to raise. a sure sign of how big horse racing has become. reporting there. as we head to break we should

mention that we were unable unfortunately to connect to jason day. we will try to reschedule that interview is soon as we can. let's take a look at the markets. we have a down day on this last monday in september 2014. take a look at the market boards. you see the dow, the s&p, and the nasdaq were all lower. we were talking earlier about what was going on. it is seeing a 29% drop. the mining index of commodity producers to its lowest in almost seven years. the global equity something to a level unseen since 2013. volkswagen have in that emission testing scandal. u.s. biotech shares falling deeper into a bear market. treasury setting for a monthly gain. the yen strengthening against all 16 major peers. a short roundup of the markets

today. yuan general assembly meeting today, president obama spoke about the need to combat local -- combat global poverty. calling for a ministerial meeting to combat international terrorism, specifically isil. president putin telling the general assembly that only syria and the kurds were battling isil at this moment. he said the international community, including countries, should get involved in that effort. we will talk about that and more coming up in the next hour with the former secretary of defense. and scarlet fu in just a few minutes when bloomberg market day continues in just a moment.

mark: 11:00 a.m. in san francisco, 2:00 p.m. here in new york. scarlet: this is the bloomberg market day. mark: vladimir putin address the un's general assembly, but the main event is his one-on-one with president obama.

we will discuss what it all means are u.s., russia were licensed -- relations. scarlet: a look at commodity companies under pressure. mark: and we had over to the midwest. chicago facing a mounting pension payment lower credit rating. good day, from world bloomberg -- bloomberg world headquarters in new york. it is not ok if you're long equities today. this