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. is the last trading week of

the corridor. looks like we are at session lows right now. continues.off we are now seeing our fifth straight day of declines right across the board. the us the 500 and nine falling to their lowest levels since august 25. past 3% threshold right now. the s&p 500 accelerating gains down 2.4%. percentdown by 1.76 there. the whole reason for this is china and its slowing economic growth. industrial profits without nearly 9% back in august. that is the biggest drop in at least the past four years. dive into my bloomberg terminal. let's check out the s&p 10 sectors right here. there is nothing positive about this screen. everything is in the red, down by dachshund on the most in health care. health care is lower for its

seventh day, the longest losing streak in four years. energy down because of the latest china data. let's stick to energy and i will take you to a looking oil right now. it is folly here -- it is near session lows right now. trading under the $45 a barrel mark. this is the lowest since last thursday. scarlet: i want to go back to what you were saying about health care shares. we are saying that biotech is getting hit as well. democrats on house price gouging. in theot good for them least. let me take you to biotech shares. this is the biotech etf as well as the nasdaq biotech index. down 8%. the nasdaq biotech index is down 7%. near session lows. justis a 20% loss since the past week and a half ago.

that was when hillary clinton railed on health care industry and tweeted about price controls after that hiv drug price. 142 of 144 stocks are now down for today. i want to switch gears and take a look at bonds it currencies. advancing,, it is but yells are going in reverse. down by about six basis points which is coming off of it session lows right now. switching over to the dollar, the dollar is using strength right now. also at session lows. theme fore the day. at arounde spike 9:00 p.m., with the fed president said that they thought they would raise rates later this year. if you're long in stocks, and a lot of negative news a. scarlet: thank you.

mark: president obama and russian president obama and russian president vladimir putin will be tonight for the first the ongoingost amid crisis in the ukraine and russia's increasing influence in the middle east. scarlet: and even today president obama said he is open to working with russia to comment isis in syria. stability can only take hold with the people of syria forge an agreement to live together peacefully. the united states is prepared to work with any nation, including russia and iran to resolve the conflict. william cowan joins us now from our washington, d.c. newsroom. washington and moscow do not see eye to eye on syria, starting with the fact that they disagree with the cause of the syrian conflict. the white house is made clear -- it's take is that a solid start of the conflict in the to be placed. how do they find common ground?

>> earlier, in reference to cuba, and america's relationship , saying if you've tried a policy over the years and it has not worked, time to change. i think with respect to our policy as it pertains to isis in syria, we have some work. there is a commonality, a shared goal here. that is to defeat isis, but as far as the united states is concerned, to eventually see assad removed from power. i think this is an opportunity to bring that about, but i think the russian president put president obama in a very different spot by increasing military existence, by putting heavy armor in, and air defense missiles and i think that changes the game in terms of what the united states options are. i think the president is going to have to make a decision to either work with russia, work with the course which is a failure to date. of, ats this a question

least in the geopolitical sphere, the enemy of my enemy is my friend? cheryl assadremove from power, but the assad government is actually fighting the islamic state militant forces. what is the united states to do at this point? >> the president is going to be in position of having to make a choice. he can say i will work with russia, even though we are. and goals. i was headed professor is that if you have ideals without technique right is a mess. it can be a mess, but if you technique without ideals it is a menace. the president laid out if you have the application of power without ideals, meaning respect for human rights, the values that we treasure as the american people, and have universal values, then you're going to continue to have conflict in various parts of the world. i think china and russia have a very different set of values in

terms of noninterference in another country's investing affairs. president obama said you cannot have the slaughter of innocent people and say it is a matter of internal or domestic affairs only. i think that is where russia and china will disagree with the united states, and where the world community has to come together in response to pope francis and the great speeches he gave at the united nations to say we have to find a way to work together harmoniously and not simply with the application of power. scarlet: can you tell us if there is any linkage between vladimir putin pushing for a deal and the lifting of western sanctions? -- is hiss and goal end goal? >> i do not think we should look sanctions against russia, and on until there is a change in the russian attitude and what they have done in crimea. not until they stop trying to destabilize ukraine. i think it is the president try to keep the sanctions on. when dealing with syria, there

is an opportunity to say russia is going to be there, and i think president clinton is very clear on this. nothing good is going to happen as long as you exclude russia, and so we will support us. i think it is uncomfortable to me, but the reality is more and more of the gulf states, and even nato countries are looking to president putin to be the solution to the problem and not the united states. that is very discouraging. i think there has been a shift in terms of people looking at the united states as being the prime mover of trying to bring about a reconciliation and peace. there are now looking at president putin. -- ais not involved in positive factor from my perspective. from we have comments president putin and how he feels that his country has been tackling terrorism. i would like to get your response. pressure has always been against that russia has always

been fighting is terrorism in all its forms. regionalhe other countries are fighting as well. it is a mistake to cooperate the the syrian ally in area. mark: what are your thoughts? the fact lost over that they have not been helping to fight terrorism by moving militarily in crimea. also destabilizing ukraine. they have not been fighting terrorism, they are sponsoring it in that area as far as i'm concerned. terrorism and facing russia, yes they have some serious challenges that they have had to face in the past and will continue to face if the middle east continues to boil over. they have a number of people coming from russia will now go to syria, become more hardened and come back into russia. russia has an interest in bringing about a solution, but

the ultimate solution has to be a solid will go. because what could be a great are active terrorism then dropping barrel bombs among innocent civilians? he has been supporting that, and reinforcing the military support for the inside regime. he cannot have it both say, saying they are fighting terrorism and the same time supporting acts of terrorism against civilians. the backdrop for all of this is that russia's economy is struggling, and it has been suffering from low commodity prices and western sanctions. is vladimir putin more unforgettable when oil prices are at 130, or when we are at five dollars? unpredictable when we are at $130 or $45? >> having russia's economy decline substantially and having him in the position of having to look for external rationales of why his economy is failing and

put him in a very difficult position, and he can respond militarily. certainly, sparking even more nationalism that he already does. i do not think you want to see a russia that has an economy based on free market, and pursues policies that he is talking about today, finding ways of working together. if we do that, i think it is in our in stressed to have a russia with a very viable economy, the same with china. we do not want to see a china that is so big that really intimidates the rest of the countries in the region in the asia-pacific region. but we also do not want to see the economy fail either. that would not be in china's interest or hours or anyone else on the planet. mark: former u.s. secretary of defense, joining us from washington. thank you for your time. let's dig a look at the top stories we are following this hour. the volkswagen former ceo is the target of a criminal investigation in germany. he stepped down last week over the admissions cheating scandal.

targeting accusations of fraud tied to the sale of vehicles. have filed a criminal in complaint to assist with their own investigation. more than 2 million of its cars were outfitted with the software that enable cheating on emission standards. germany's regulars have the company until october 7 to develop a plan for meeting emission standards. scarlet: apple is reporting record sales of its new iphone. they were sold over the weekend. the results were jumpstarted by sales in china which was not part of the initial release of the last iphone before this iteration. mark: there's a big deal today in the natural gas pipeline business. handles almost one third of the nation's natural gas demand. the price is almost $38 billion, including debt. energyjected any transfers first date in june,

and then looks for other buyers. scarlet: donald trump says he was to overhaul the u.s. tax code. earlier today the front runner outlined his plan to limited income taxes for million american and lower them to the highest earners and businesses. it will provide major tax relief for middle income and for most other americans. there will be a major tax reduction. it will simplify the tax code. and will grow the american economy. at a level that has not been for decades. this does not add to our debt or our deficit. scarlet: he also wants to lower the corporate tax rate to 25%.

those are your top stories. mark: coming up in the next half hour of the bloomberg market day, shares are getting hammered today after analyst warned there was little value for shareholders and commodity prices stay low. they are down 76% for the year. on announcescaps plans to split itself in two. all of that coming up on the bloomberg market day. ♪

mark: welcome back to the bloomberg market day. lisicki look at the top stories we're following this hour the

former new york prison worker to mirrors escape was sentenced today. she was sentenced to two and a third to seven years behind bars. she said she was way over her head, and admitted giving the inmates tools. one of the murderers was later recaptured, the other was shot and killed by police. -- nasa justages solve a major mystery. service show ice and ancient water flow, but then latest research shows compelling evidence for the ongoing existence for flowing water. mark: royal dutch shell will quit exploring offshore alaska. they blame high cost and regulations for abandoning the well in the arctic waters. just a week ago they got u.s. and government approval to drill the well offshore.

this announcement was abrupt. why did it take place? shell's explanation was they went 6000 believe -- feet below the ocean floor and they did not find enough oil to make a commercially viable to turn this into a producing well. only a strange it was couple of weeks ago saying it was very confident they are totally had a reservoir, but they had billions of barrels of oil. scarlet: the science was wrong, the research was wrong? one thing that they pointed out was regulatory changes. when they referring to? >> they got a lot of criticism for approving this project overall. but in the frank and the obama administration put in all kinds of restrictions including one that for the sake of noise sensitive walruses, the oil company could not to drill simultaneously into wells that

were relatively close together. that forced shell to go one well at a time, and that is kind of restriction that caught them by surprise and which they are now fighting. in my initial online story i speculated that one of the reasons that shelby have decided to cut its losses is looking into the future. while president obama gave shell the go-ahead, it would be actually stepped away from the obama policy and says that she disapproves of drilling in alaska. that makes me wonder whether they are looking out over the rising and saying this is costing us a lot. we want to cut costs anyway, the price of oil is low. what if we got president clinton? scarlet: it is a kye on. what effect does the opposition from environmental groups have

on the ultimate decision? >> i do not think it encouraged them. they were facing protests all around the world, but this is a company that has tried to strike a delicate balance between a fossil fuel generating company, and also being sensitive to the environment. it is also a company that is trying to shift from oil to natural gas. all of those factors played into this decision. you can read his story online at bloomberg.com. thank you so much. scarlet: we want to mention, you u.s. stocks are at their session lows. the s&p 500 is losing 50 points. this would mark the sixth .traight day of losses mark: we continue in just a moment. ♪

u.s. stocks can see at their session lows right now. the dow industrial is down about 296 points. higher.el is all 24 groups in the s&p are lower. shares are the lighter with via text getting slammed after last week. government funding deja vu. will our elected officials agree on a budget plan the government open after wednesday? scarlet: they promised to measures.nding his planned parenthood the only issue keeping the white house and republicans agreeing on a budget plan? >> for a short-term, yes.

what is on the table right now is a brief extension unlikely to sometime in december. the primary issue is planned parenthood. about $450 million in government funding on an annual basis. ever since undercover videos were taken showing people talking about the selling of , republicans have made very clear they do not want to sign on to anything. what changed all of this, john boehner. his decision on friday to resigninge would be cleared the way for a deal, but a couple of days left for them to work out the specifics. this do they really need right now, especially as we are ramping up to the presidential election which is less than 14 months away? >> i think he would send a thank you note to john boehner. 2014,his happened in

there was shutdown talks who were with the debt ceiling as well. ate republican fundraisers the time said they lost millions. millions of dollars in fundraising opportunity because of what republicans on capitol hill or doing this is often led by senator ted cruz, who is made very clear whether the obamacare or this case of planned parenthood meant that they need to force the fight even if it leads to a government shutdown. he is a presidential candidate and he raises his share of money off of this as well. but for the broad republican party, you talk to those in nationalp at the committee level, they appreciate the fact that they are not going to have to, as things currently stand, be dealing with a government shutdown. thank you so much for giving us that update on what's going on in our nation's capital. we have some breaking news. an initial public offering. we will continue to monitor this

this will be of great interest to all of those recreational golfers out there. mark: that is a big story in the world of sports. we will try to bring you more as soon as we get it. scarlet: we will talk to one person who attended rahm emanuel's sales pitch to investors. off bydaq biotech index another 7.3% after its plunge last week. heading into a bear market, its worst weekly decline since 2011. biotech's are dragging, health care shares are down overall. we europe for the final 90 minutes of trade. 90gear up for the final minutes of trade. ♪

scarlet: welcome back to the bloomberg market day. we are monitoring u.s. stocks right now. this is a risk off day. it started that way it has taken

hold here as u.s. stocks are just off their worst levels of the session. let's check in with reading right now. it appears like stocks are down for everyone who was higher on the new york stock exchange. .> we are seeing a sea of red we are at session lows right now for the s&p 500 is down 2.4%. we had just enough flip over into the 3% in the past hour. it seems like an slingback just a tad. the dow is down by 1.7% right now. markets, they are also following. first to oil, look at this. it is done by 2.75%, also hitting session lows and we are now at the $44, you percent .44 mark.$44 44 said ma , the safe haven has

done the most in almost two weeks. it is off session lows, but it is all done by more than 1%. this comes after janet yellen last friday said that a rate rise could very well happen later on this year. make goldhigher rates less attractive since it really does not pay any interest at all. to copper right now, it is down by one point 6% -- 1.6%. still not doing so well. this is at its lowest in the month. are feeling it in london trading. glencore is seen as lower share price of 2011. this is down by nearly 30%. commodities falling just as markets fall. spiral ishe downward

wrecking havoc on corporate balance sheets. today's examples are out, and glencore. all, splitting his operating businesses while fact checkers worry that glencore's stock may be worth little if raw material prices do not improve. joining the is our analyst, and my cohost, alix steel. this morning on glencore. it is a pretty dire warning. is it a bit of an outlier? alix: this call was unbelievably negative. basically they are say if these commodity prices stay here, which is not their base case, that all glencore's money will go to service their debt and not return the equity value to shareholders.

this is due to how much debt they actually have. anywhere between 50 and $30 billion worth of debt if you count the inventory that they have. theave a chart looking at debt of the market caps, and they showed that over the last few years you have seen that debt continue to rise as the market cap steadily falls, initiating the squeeze. that is at the core of the issue. he can see that i just -- you djust.e that an ken hoffman of bloomberg intelligence commences this mean that we should expect problems for some of those other minors that alex was talking about? i think the canary is quite dead. these countries are getting absolutely destroyed in this marketplace. i think there's a bit of panic

selling and a lot of misinformation out there right now about the mining companies and what they do and how they make money and how they make their cash flows and there tends to be a lot of notes out there with a lot of panic inland. you're obviously seeing that today. there are a lot of mining stocks doing double duty today. it is indiscriminate selling. scarlet: is anyone ever talking about a bailout for these companies? alix: i do not know if you could bail them out. however, to your point, the fiscal techs are enormous. enormous trading business, and they are the biggest traders in the world. their underlying fundamentals are also struggling as well. take a look at qatar sovereign wealth fund. in may have lost as much as $1.1 billion. and does have a normal ripple effect. scarlet: let's switch gears to alcoa.

i know that you covered the metals and mining industry. --has struggled to complete to compete against chinese imports. does this make the company more of competitive or is this about knotting letting the more valuable business be dragged down with the upstream business? >> investors have been screaming to break up these businesses for a long time because they want to go that high value-added the sheethich makes metal for boeing and airbus. i have been extremely reluctant, taking years and years to make this decision. this is all in one commodity play. these barns are under immense pressure . you are seeing a lot of companies doing this.

do not underestimate the pressure that investors are putting on these companies to give them value now in the light of this horrible commodity marketplace. alix: there are three things that are going wrong at all,. aluminum prices are bad, we have no not for a wild. premium prices have started to come down in london and the u.s. it is easier to get aluminum at a warehouse. they were making some extra juice in the premium, but is that comes down they have been cash flow as well. the third issue has been production in china that is off the rails. they are exporting it. up 55% of global production. the u.n. is lower, energy cost are lower, and they can produce more at a lower cost which means of used inlatively the market. scarlet: a lot of macro issues for the company to contend with.

as we saw with yahoo!, the irs these a much more closer look than in the past. do we assume that they are much more different from yahoo! in this spinoff? >> they have given themselves a long time to the end of next year to get this done. and the shorter and they told investors we are doing what they want, and in the long term where we don't regard if they can legally do it. scarlet: that is always a question. there's the good company versus eh company. we will be back to take you through the market close. let's take a look at other headlines making news. next are is making unsolicited bids for media general. values media general

at $14.50 a share. this is a 30% premium to the last close. they're trying to torpedo the 2.4 billion dollars acquisition of tv stations owner and meredith corporation. they call the deal ill-conceived and value destructive. residential real estate hitting a speed bump last year and home they fell in august for just the second time this year. inventory is low, which is leading to higher prices and that is growing demand. donald trump as falling back toward the pack in the presidential race. ws ben carsonsho is just 1% behind trumo. p. carly fiorina is the fastest candidate in either priority. >> it is not about pro-life or

pro-choice, it is not about birth control, it is not about abortion. it is about the character of our nation. hillary still leaves bernie sanders, but it is a margin of 50%. a coffee grower could get you a new tree if you purchase a starbucks branch. they are raising awareness of the rust fungus that is damaging global coffee crops. coming up in the next 30 minutes of bloomberg market day, did rahm emanuel cell investing in the windy city to new yorkers? and why new york fed president elderly is seeing the central bank raising interest rates this year. ♪

scarlet: we are monitoring the risk off momentum in the markets right now. can see that crude oil is down by 2.6%. negative data out of china plunging profits. putting pressure on those underlying prices. gold futures are not a haven, down 1.1%. it is having a knock on effect on companies that produce these raw materials. back to our print story which we told you about earlier.

maker of titleist golf is talking about and i feel. i want to bring in our ipo reporter who brought in this story. titleist was valued back and forth between different owners. >> is from the 2011 sales. to asold his company couple of backers back in 2011 for 1.2 3 billion. now it they think it is time to get back in public shareholders. some of that is still up in the air. our sources are also saying it could value the company at $2 billion. we have seen call on a decline, so maybe they are trying to look for asian markets, trying to get

in front of those were still playing. we might see a titleist ipo. isrlet: even as golf declining in popularity. how big of an industry are they right now? >> and $8.7 billion industry for golf equipment. the u.s. is the biggest market here. behind that is korea and japan. they are trying to get more of that $8.7 billion. -- oh anotherer brands for golfers. they're trying to keep to all of these. scarlet: it is declining in popularity, we have seen other athlete it here makers say that sales have not done so well. les tailor-made are

down about 32%. we've seen this market shrinking a little bit. and a lot of that has become desperate because young golfers are not hitting the green is what is used to. they are looking for other ways to hang out. other experiences. we have seen that part of the gulf markets shrink. they are not on boarding these new golfers. they have had a little bit of trouble, but we will see. if they decide to go forward with the titleist ipo, do people want to tie it? scarlet: what is the extent? step.xt a filing andr underwriters. scarlet: thank you. we will continue to keep you updated on that story. in the meantime let's get you some other companies to lose at this hour. comcast is making its biggest

overseas investment ever. contests and nbc universal will pay $1.5 billion for a majority stake in universal studios japan which operates a theme park in osaka. it is the start of the company making more global investment. general electric moving more jobs out of the country. 350 workers and an engine facility will relocate to canada. it is their latest move to encourage congress to renew the import export makes charter. and hopefully says it will limit a 1500 jobs, less than 2% of its workforce. the company says that it is trying to keep expenses low so it can sell its organic and natural products at natural prices -- better prices. it is facing an onslaught of grocers selling similar products. discussp the wearable what rahm emanuel has been

pitching to investors. before we get to that, here is another check on biotech stocks. they are sinking yet again, a seventh day down for the biotech index. that is the biggest in almost seven years. ♪

scarlet: today we are going to focus on municipal bonds. to theanuel spoke municipal pharrell of new york at his first official trip to new york in three years. hisrole was to solidify relationship with wall street and convince investing community that chicago is not doomed. a partner at municipal partner analytics attended the event joins us now. i want you to frame this for us. it comes at a critical time for chicago. >> this is one week after rahm emanuel has come up with his big city budget that is going to turn around the city and they will have issues anymore and what i was looking at here is

this is an attempt to control -- convince the makers of new york that we are in place to go and we are fine. open up that line of communication between chicago and new york city. it is the finance capital of the world, you need to have a good relationship with the city. scarlet: you were there. did he convince you? was in a tough crowd? >> in was very easy crowd, because it was investment bankers. but the mayor makes a very good point that the chicago strength is its economy. a, diverse, steve, growing. that is what he talked to and what he should have been talking about. scarlet: did he bring up the issue like the school system? they are not doing well. >> they do not have market access. >> not the market access per se. the school district financially has serious issues.

laid its softvely at this theater the state because it cannot balance its budget in any way that it knows how. it has asked for extra money from the state. more talked about the educational outcomes, which have improved. scarlet: he had for a lot of people on stage to convince the audience. is a revenue-generating plan he has proposed. two they want to see less spending? >> we always want to see less spending. is the problem fundamentally that chicago's budgetary problems are so enormous. they are so multiyear in the length that he does not have a great ability to cut spending, he does not have a tremendous ability to raise revenue. so we are sort of hoping that everything turns out as expected over the next few years. scarlet: that creates its own risk. limited room for

maneuverability. >> part of that is the property tax. it is a big if that brings in $600 million next year years. he needs the city council vote for that to go through. enoughe has been remarketing and talk about it in chicago that i think it is reasonable. he has a reasonable chance of getting those increases. beyond that, i do not know for sure. it seems to me the main reason might get those increases the senate promise you will not ask for any more revenue. for these property tax revenues, that is a lot of money to ask for residents of that city. does that impair your advantage as the third-largest city in the united states? >> it is not really overtaxed. it is not like you would put people on the bottle and that they will be moving out. economy is strong enough that they can absorb this. >> thank you for joining us.

we're going to switch gears here because heading over to lexington, kentucky where the yearling sale wrapped up on the weekend. we have the report. ♪ in the horse capital the world there are tens of thousands of them. it is what drives the $39 billion horse industry, there -- thoroughbreds. please price front of pedigree. the real money is not in raising, it is a breeding. two breeders, this corner kentucky is incredibly important. obligation to set the value of the thoroughbred around the world. >> he runs in place that is best known for its race track. an auction house.

every september, one-year-old colts and phillies are sold for hundreds of thousands, sometimes millions of dollars each. >> in the horse business there are only a few paydays a year and this is one of the. m. farm that has american pharoah's father. he knows a thing or two about how to pick a good horse. >> you're looking for athleticism, class, and movement. features more than 4000 yearlings, and none of them has ever been titled -- saddled. prospective bidders study bloodlines. there is no simple formula for picking a cold or a family that will become a successful racehorse. he was american pharoah's trainer >>. >>i have picked out a lot of horses.

you finish them out of their, and sometimes if you put too much thinking into it, it can kill you. >> that says, there are clear favorites. he lost a bidding war for a colts that went forward to wait $1 million. $2.1 million.or in attracted a lot of interest. >>'s gene pool is going to sell him when they ring the bell. he's going to be leaving their running. >> his dad's number one siren , theorld right now stallion lives nearby. >> he knows he is the king. we treat him accordingly. his steadirector says the is $300,000. the farm bred him 135 times.

thanrogeny sold for more $10 million. a horses sale price can be meaningless. they sold thoroughbreds for generations. >> the starting gate is the great equalizer. he does not know how much he sold for, he does not care. sometimes the market gets the athlete wrong. >> he was in one of our consignments of two years ago. >> american pharoah was kept because no one get enough. >> you never know when the next horses going to come from. scarlet: take a look at how stocks are trading right now. off by 295 points. ♪

>> it is noon in san francisco, 3:00 p.m. in new york. >> glencore shares post their biggest intraday decline on record.

can the british recover in the wake of the commodity? generalnited nations assembly underway. president obama reaffirms america's support for its allies. we will get assistant attorney general for national security john on the summit for this hour. >> donald trump unveils what some are calling a bold tax plan that will not only make nation great again, he says, but will cut taxes. is america buying it? ♪ scarlet: good monday afternoon. alix: and i'm alix steel. withet: let's get to ramy a look at the markets. ramy: the selloff continues and we are scraping session lows right now.

this did not even happen in all of 2014. the s&p 500 down. the nasdaq is the biggest loser. they have not seen these levels since august wi-fi. china is a big reason and it is slowing growth. industrial profits were down 8.8% back in august and that was its biggest drop in at least four years and definitely concerning investors out there. the sector there. health care down the most, followed closely behind by energy as well as materials down. even utilities down by .5%. health care is the worst, the longest losing streak in four years. energy is also down because of the latest china data. i want to show you the s&p homebuilding index.

slide all day the today. it is underperforming and down about 4.2%. we saw session lows and little earlier in the past hour. august pending home sales took an unexpected fall of 1.4% earlier today. that has fallen in each of the past three months. good news is home prices have held up. it is still a, down day for homebuilders in general. >> what about biotech? they really took a beating and got taken out to the woodshed. we're seeing more of that? >> yes, shares are getting slammed. the nasdaq biotech index here is down by 6%, a little more than that. .he biotech etf is down back to this right here, the index has lost about 20% in the past week and a half because of

hillary clinton's tweet talking about price gouging on the back hiked byug price 5000%. near all of these stocks on the index are now down. you, ii headed back to want to show you what bonds are doing now. investors are pushing to give a monthly gain. yields are going the other way, down by seven basis points right now at 2.1 percent. >> thank you for the snapshot. want to bring in the biggest chart to show you that registers what we are seeing in the markets to piggyback what he was talking about. take a look. you're looking at the bloomberg high-yield index looking at the yield and you are seeing the yield over 8%. not seen this kind of field if you have to go back to 2011 to see that in the

junk-bond market. the question is, is this kind of stress going to radiate out and will this be a longer-term issue in the market as well? howlet: raimi talked about vast and brought the declines were. another way to look at that is to look at the sentiment in terms of the percentage of stocks closing above the long-term trend line. if you look inside the screen, you see only 21% of the s&p 500 are closing above the 200 day moving average. average ofinst the 46% and a five-year average of 59%, which gives you a sense of how quickly the sentiment has turned. you need about four years to see the movement we have seen to see these kinds of stocks.

william dudley said earlier today that the economy is doing well. probably will raise interest rates later this year. echoed janet yellen's remarks from last week. >> economic data may hold the sawfor a liftoff paired we a gain in consumer spending for august, which showed the u.s. is headed for a showdown. eyes will be all on september, and on thursday, we will get the manufacturing isn report. important the most release of the week, the payroll unemployment rate. joined., we are a pivotal week for investors and the fed. now, forecasters have

not had a lot of data to assess the degree to which the economy is responding. that all changed that ability? >> it should at least provide clarity. most of the data we have seen this morning have been august data and most of the data was before the financial markets wounds in the month. couple of data points, regional manufacturing series the the empire series in manufacturing index. all of those shown a pullback in response to the market development. the lingering question is, will show someconomic data of the negative impact? isthe end of the week, that to be sure, but that will be an overarching theme. classes you have every fed official coming out and saying

that we want to raise rates this year, why is the market still so skittish and uncertain? first of all, they said we probably will raise rates. probably being the operative word. but they willhing not do it prematurely. the message from the speech was if we continue along at the same ofjectory before the events late august, then we are on a course to raise rates later in the year, if there is a negative , weback loop highlighted have to reevaluate the timeline. this week. a slew williams in the afternoon, fisher just after the jobs report friday. a lot of voters and nonvoters who will be voters next year. we hear from janet yellen later in the week as well. the sense to gather

their response, but especially watching the fed speak coming out after the jobs report. >> the jobs report is the most important data of the week. besides that, what is what you will really zero in on that might show the fed what it needs to know? they do not want to see, they may very well see with on thursday. the series has been buffeted by a strong dollar and the collapse in energy, lower and lower and lower. in the component to gain export activity in the economy, but also the headline numbers are very highly correlated with gdp. i think we could see the isn series, out on thursday at 10:00, dipping below 50. that will be contractionary territory for the manufacturing sector. about 44 toop to

signal a recession in the u.s. theill be a sign that economy is facing a pinch from what is happening. scarlet: will it spill over? >> that is the question been a lot of industries are tied into manufacturing that may be service jobs like engineering and transportation and whatnot. they could be impacted by the downturn and we have seen some evidence of it. also, passing directly into the heart of the u.s. economy is the labor market. if you see a slowing pace of job creation, it would raise real doubt about the momentum in the domestic economy. what else will you see the fed look at in the next few weeks question mark any other significant data point? >> we watch the jobs data, industrial production. and we watch consumer spending. confidence data tomorrow that inclination tong

buy a car or appliances, houses within the details for that survey, and then we will get retail sales. of data tolot suggest -- to digest. i think it is about 16% if you look at what it is now. 15% for october. >> the fed is watching financial conditions. it gives them all the more reason to watch. scarlet: over 300 points, picking available bit of steam. down 2% for the dow. , bloomberguch intelligence's chief u.s. economist. alix: a look at top stories making headlines and this hour.

president obama reaffirming america's support for allies. obama addressing leaders from nearly 200 nations this morning as the general assembly this morning. reminded the leaders of america of military might. mindful ofbama: i am the dangers that we face. they cross my desk every morning. i leave the strongest military the world has ever known. i will never hesitate to protect my country or our allies, unilaterally and by force, where necessary. but i stand before you today that we, in my core the nations of the world, cannot return to the old ways of conflict and coercion. u.s. officials want answers from vladimir putin about russia's arms buildup in

syria. scarlet: the volkswagen ceo is now the target of investigation. investigation of fraud tied to the sales vehicles. the former vw ceo may not walk away with a $30 million package. people familiar with the story say labor leaders worry employees could suffer from the costs of cleaning up the emissions scandal. he maintains he was not aware of any wrongdoing. attorney working on a plea deal for the republican hush money case. details have not been released yet but that came during a federal court hearing today. to other media outlets, he allegedly paid a younger man to conceal sexual misconduct when he was a high school teacher and wrestling coach.

scarlet: nasa solved a major mystery when it comes to morris. evidence of liquid water on the planet. for the images showed signs of ice buildup but the latest research is the first to provide compelling evidence for the ongoing existence of the water. those are cool. those are some of your top stories. ahead, a record 13 million iphones over the weekend. alix: i was at a wedding. scarlet: a lot of chinese people didn't buy it and we will get you more details. ♪

scarlet: welcome back. alix: straight to ramy to look at the market movers. looking at the dow right around the low of the session. ramy: i want to take you on a look of bloomberg's social velocity monitor. this is a look at the most possible stories on social media. -- most popular -- most popular. there we are one of the top ranking countries after angela merkel says the company needs to do more to stop from commenting. you see a little twitter logo right there. energy transfer all show -- also training. get approval to buy williams companies for about $35 million here the bloomberg social philosophy monitor. earlier in the hour, i told you how august pending home sales

took a surprise slide of 1.4%. i want to show you how specific builders are getting smacked. down by nearly 5.5 percent. toll brothers down by 4.7%. toll brothers is generally called the highest price elder in the u.s. with an average sale over 700 $20,000. it is more than double the average sales price. both are hurting. mining stocks also. an announcement it is splitting itself. one focuses on reduction and mining. falling aluminum prices and an oversupply from china. investors seem to be liking it, up by 4%. downf that, plunging by the 9.3%. it has gone to $33 to where it is now. alix: what about tech? apple sold over the weekend.

shares not doing too much on the news. , iphoned have thought the moneymaker. >> i was trying to figure out why it was falling. it seems like investors these days are spreading something more of a blowout number. hittinglly expectations. how apple a look at is performing. it is one of the worst performers on the s&p today. that is despite opening weekend sales basically blowing away 13 million 6s units. investorse now that do not seem to be all that happy about it. 1.75% down. in terms ofsaw apple iphone sales are coming from china, estimated 2.5 million units. scarlet: we will pick up right were you left off. it is all about the record 13 million phones iphone sold over

the weekend. another way to think about it is the average selling price was six i should $60, which would translate to about $8.5 billion in revenue over the past 72 hours from apple. adam who spoke earlier about the case for apple. closet signaled earlier in the month it would be last year's record, which was 10 million in the opening weekend. over -- opening weekend last year. analysts estimate apple gave itself another 2.5 to 3 million new customers and that really made up the difference in what we are seeing from last year. >> ok. but the idea of what true demand is or how popular the mods are going to be, won't that not come

until january after the holiday sales? this is a closely watched number, something a lot of investors d analysts track year-to-year. but you are right here january will be the real figure to give you a sensef where demand is. apple over the past several years quarter to quarter, you look at the mbers, it is about every quarterh when you ce to iphone sales. it will be tough number to beat because last are when they came out with iphone and the six plus with the bigger screen, it had astronomical sales and mastering that will be tricky area mark: arthere other metrics that are more important than opening weekend sales? >> the most closely watched quarter is the holid like betty sa. apple really concentrated its product line -- lineup around that andnumbers in january

october, that is what people watch osely. coming up, the donald says he wantso overhaul the u.s. repuican the presidential front runner outlined his plan to eliminate taxes for millions of amicans. all that and more coming up. ♪

scarlet: after being criticized for having a lose policy, donald trump finally announced his tax plan earlier today. mr. trump: it will provide major tax relief for middle income and most other americans. there will be a major tax reduction. it will simplify the tax code. grow the american economy at a level it has not seen for decades area -- decades.

this all does not add to our debt or deficit. as simple awas this tax plan as donald trump advertised? phil: it reduces the number of brackets from seven to four. definitely cuts the individual tax rate. the top rate would go down and i think what donald trump's team will be .2 is the fact 31 millions americans will no longer have to a income tax. people making $25,000 or less would not have to pay. couples making $50,000 or less would not have to pay. the elimination of the estate tax. donald trump has pledged to keep the deductions for mortgage interest rate and charitable giving spirit while he wants to cap were a limit entirely most deductions, those will remain. scarlet: any sense of how he will pay for that? is he looking at taxes on the rich?

phil: that is the big question. yes, on some level, it will target the rich. targeting hedge fund and private equity fund managers. he telegraphed a couple of weeks ago that he would be going after the so-called carried interest tax loophole but he will also go after companies. he will reduce the corporate rate down to 15%. in the huge slash corporate rate. he will go after the money held overseas. $2.1 trillion in cash being held overseas by u.s. companies. that has been a big issue for both parties to consider at donald trump is pledging a one-time tax holiday to bring back all the cash. the interesting thing is that would not just be 10% tax of all the money brought back there and it would also be an increase tax of any money held overseas. those are a couple elements of how we would pay for it. the experts i spoke to today do have questions of whether or not it will be deficit neutral as he claims. it sounds like a

democratic stance to take on money. phil: you have a lot of republicans shaking their heads and wondering what he is thinking not just on the pundit side but on the economy side also. thank you so much for summing up the tax plan. everyone the economy is what he knows and he says this is his wheelhouse and what he does well. alix: he is a business guy. it is a little surprising. scarlet: tune in tonight at "with all due respect." i am signing off. alix: we will miss you. much more coming up. ♪

i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. alix: welcome back. straight to a look at top stories is afternoon. itsast is about to make

biggest that yet on the overseas market. of5 billion for a majority -- majority stake in universal studios in japan. comcast'ceo explained the attraction. combination ofhe wonderful, intellectual property , new attractions, great and great value for families, when you put it all together, you see growth in the theme parks. hollywood, and now here, even in some cases better. comcast dropped a $45 billion deal in april and have been seeking growth in other areas, including digital media. no plans for a public listing in the near future.

voters in spain's region have narrowly rejected a proposal to build an independent state. it reduces the chance of a head on collision. meanwhile, their president is not giving up any time soon. he says he has a mandate to continue the fight. a syrian rebel commander who allegedly gave up the quitman to announce al qaeda affiliates was not a product of the night estate string program but a number of his soldiers were enrolled. they say the rebel commander was vetted by the u.s.. officials have been investigating how u.s. equipment ended up in the hands of the terror group. russia taking steps to expand its influence over the fighting in syria. russia has reached an agreement with syria, a move that will allow russia to provide more to .attle bashar al-assad those are some of your top stories at this hour. vladimir putin and president than twot in less

hours and it will be the first face-to-face meeting of theirs in 10 months. obama said he was open to working to combat isis in syria. president obama: lasting stability can only take old when people agree to live together peacefully. the united states is prepared to work with any nation including russia and iran to resolve conflict. ryan joins us from london over the phone. of then we expect out two leaders? interesting. the russian president was to -- syria andra what russia and the united states can do together. they arty have troops to bring about a peaceful solution to the conflict which has been going on forever. president obama wants to talk

about what russia needs to do in to get russia in a position where the west is again prepared to engage. president obama is also ready to , if for no other reason than he understands russians have troops on the they are players to a certain extent and maybe can bring about change in a way russia has not been able to. you have studied russia for many years. you were front and center with ukraine and russia when that broke out a few years ago. in your experience, what does vladimir putin want out of the agenda over the next few days? how might this change geopolitics in? >> he will say, i have a solution and the solution is, the president of

syria in the short term. you do with him directly or at least you deal with us. we will be intermediaries. and we will go after our common enemy, the islamic state, because it is the islamic state that is a real threat to the united states. and i will help you do that on the ground. just make sure you do not accidentally bomb us and that we are agreeing on intelligence and all of that. he will not mention ukraine and he will not mention sanctions, but the idea is if the u.s. plays both obama, then come january of next year, when european leaders get together to look at renewing sanctions against russia, they might just look at russia a little more favorably, particularly because of the refugee crisis they have in their own countries right now. maybe, we can or soften the sanctions against russia. he is playing a long game and

syria is the way in. alix: that makes sense. is he looking for leverage, perhaps, over the u.s. or he access to foreign markets and dig russia out of the hole that it has been in for a while? >> he wants leverage and heaving sea has leverage. he has assad's gear and troops on the ground. he can do things the united states and france, now joined in the campaign as well, cannot do. but sure. looking at the prospect of the longest recession since the collapse of the soviet union right now p are part of that is oil prices. part of that is sanctions. they cannot raise money abroad. russian companies cannot get the kind of money they need to grow from china after russia's historic vivid to china to counteract the sanctions.

he needs investment to try to bring the russian economy, to try to get it to grow with this oil crisis. the only way he will do that is if he gets the sanctions to go away and the only way to do that is to get president obama and president obama's succession -- to say, ok, there are areas where we agree with the russians. thank you so much. wonderful contest going into the meeting at 5:00 p.m. today. few are speaking in just a hours. turning to one of the top stories of the day, glencore is tumbling the most ever to record lows. shareholders.or the stock has fallen 76% this year. our glencore reporter spoke about the deepening commodity route that is hurting the company. today, the only news is what

is driving this 31% of the share. saying glencore may need to do a lot more in terms of restructuring. i think investors are losing their faith into the company and management. they want more certainty that is why glencore is being hidden. mostis probably one of the leveraged in the sector. say dire warning stressing the debt load. what is the investor argument and is it as outlier out of consensus? >> others have been warning glencore may need to do more. it is very dire but is it still having a hold into the company? it is we could go, it was recommended investors sell it. it seems the evaluation is good enough to hold the company. it seems that outlier, but the

company seems to be having investorsnvincing they're doing enough. this probably reinforcing that sentiment. what levers can glencore polo when it comes to raising more cash? other options on the table? .> a plan to reduce his debt $2.5 billion in new equity, a assets.sell on friday, bloomberg reported the company appointed credit suisse and citigroup to sell. at business could be valued $12 billion. trying to reduce the debt but probably, the investment wants to see more and a better sense of timing.

collects the stock has been cratered, worth a fraction of what it was originally. this eeo has announced the debt reduction plan three weeks ago and sold shares to raise money. you mentioned our own reporting but yet, they are clearly not short. what do investors want to see happen here? see moreors want to particularly in the agricultural plan. see exactly how much money glencore can raise with that particular sale. we want to see more, the prices remain at current levels, about just under $5,000. they want to see exactly how much glencore can take. 2016 until glencore announced more details of the agricultural plan to also come investors on the profitability for next year.

investors are going to be selling the stock. we should note peter is the chairman of bloomberg lp, chairman of bloomberg news. a nonexecutive director at glencore. coming up, stocks are headed for the worst quarter in more than four years. your looking stocks around the lows. what do you need to know, where to find safety? ♪

alix: welcome back. time now for a look at the markets. before the closing bell, over to remy. i should point out we are off the lows of the session for the day. the selloff has taken its

told oh. it has been diagnosed down there and are not scraping the session them,nd slightly off of this is now the fifth straight day of declines. not happen in all of 2014. the s&p 500, as well as the nasdaq, have not seen the lowest levels since late august. china's slow economic growth is the largest for a reason. it plunged 8.8% in august and that was the biggest drop in at least quarter years. it led to at least some of the read on the screen. come with me to my bloomberg terminal to check out the s&p sector performance. everything is in the red. health care is down the most by 3.4%. health care is lower for a seventh day, the lowest losing streak in the past watcher years. energy down because of the .atest china data

what is happening with the commodities right now, like market, they are falling. at sessionearly lows, down 2.5%. in a month.lowest it touched a six-year low earlier in the session. down by more than 9% year to date, that has a most lost two thirds of its value. let's look at oil as well. oil is down 2.5% here. inna is worse than expected industrial profits. gold is down the most in almost two weeks. down by nearly 1.2%. of china down because but because of the fed. last week, janet yellen set a rate rise could happen this year. the new york fed president today said similar and higher rates make gold less attractive since it does not pay any interest. you cannot talk about this without looking at biotech

there'd it continues to get hammered. bad therspective on how damage was question mark happened weeks ago. >> let's look at the index for the nasdaq right here. you can see they all down for some day in a row. etf down by nearly 6.5%. the nasdaq is not too far behind. both of these are near their session lows. this has lost about 20% since a week and a half ago. when hillary clinton accused the health care industry of price gouging on twitter. nearly all of them are down today. alix: thank you so much. markets are getting killed today. what is driving the action? mohammed writes in a new post that the market seems to be most influenced by investor sentiment . andcus on the fed signals

the global economy is an concerns about the potential effects in interest-rate changes could have on the dollar. financial flows, risk appetite, and a structurally fragile emerging market for more perspective, i want to bring in jeff, the chief investment strategist at a bank. thank you for joining us. a look at what mohammed said. is driven by polarization. >> it is shifting from a mid-stage market to a latter stage market. it does not have to come anytime soon but you're in a different kind of market. winners and losers on a different path. reassess investors to valuations. alix: it seems like markets are schizophrenic. we were rally because they are and then because they're not.

it does not have an opinion one way or the other. >> i think that is the absence of visible inflation. if it was more visible, think the markets would be more comfortable, if it is a strong economy, the fed would be raising. a lot of evidence and particularly that the labor markets are tight enough that the fed should be acting. we're missing that inflation. part of it is because of the labor slack we have not been seeing. >> some of the slack is going away to we look at the under employment rate and that spread has been narrowing steadily. we are getting to the levels we think should be associated with tight labor conditions. alix: maybe sooner than later. .apan today, jamie dimon take a listen to what he said. >> the amount of income they

spent is 1985, 10 million more americans are working. almost all that is in the private sector. alix: you do see better science. bysome of this is masked demographics. being replaced at lower compensated, echoes a long way to explaining why we are not seeing in aggregate wage inflation nor productivity. it does not mean wage inflation is not going on for the 30 euros and 40-year-old. we have seen the rate continue to decline. we need to see productivity start in order to see more wages. >> if you take a look of the 70's into the 80's, that is when the baby boomers were entering the market. just when you had that

productivity, we now have them also depressing productivity. is a couple you're bottoming of labor force anticipation rates. we will see better productivity. we will also see much more visibility in wage inflation. alix: good stuff there lots more to talk about p or we will assess biotech and will get technical indicators in the market. we are watching these markets with the dow off about 268 points. onwant to get you updated some top stories at this hour. no top stories. we will take a break and we will come back and look at more of the markets. ♪

alix: biotech stocks getting you called this route in biotec?

have we hit bottom? 8% higher inout the selloff. we think we are getting close to the later innings of the selloff in the broader market. it is probably toward the middle innings and a selloff in the biotech. it gives us reason to think that latere as you get to stages of corrections, you start to see the prior winners and prior leaders start to get hit and those leaders underperformed the overall market as you head into the correction. that is what we are seeing now are we got down to the august lows almost exactly. that is also interesting because a lot of people said those august lows are not real or too fast. we tested them today and it tells you they were very real.

we are due for a reflex rally were a bounce. i do not think the overall correction in biotech is over. alix: do you think anything actually moves the biotech stock? hillary clinton became president, but will that really do it? >> very rich valuations going into this. it is a sector that in many ways still have a lot of work to get through. sector, it has been a great performer because it is reforming and you will have winners and losers in there. it is amazing to me how far behind they are behind the other sectors in the economy. it is easier to get an that it is to dmz get employment with my doctor, that says the industry still has to change. when you take a look at other aspects of the market, what is one of the areas of the bull market we have seen that

held on that has not rolled over yet? >> after we saw health care last week, consumer distraction was the only sector positive to date. names like amazon and a lot of homebuilders and retailers. they have been impervious to the selloff. our thought was basically, you have to see those finally get washed out to put an end to the correction for we are starting to see that and are probably midway through the biotech selloff. we are looking for a final washout. basis,n a fundamental are you seeing something similar? >> no. we're pretty positive there is again. -- positive. there is a dynamic where they are absolutely right that being said, some sectors you sell in anticipation of that and some, it you wait for more opportunities to buy.

i would put more names in that category. alix: a quick look at the s&p. if you take a look at it there, it was too, if you take the five-year chart back, the coil there, where you are trading at a tighter and tighter range, quitereakout can be fierce. is that what we are seeing? >> it was actually even more coiled. before, then move resulted in the initial shock in august and we're seeing the so-called retests. and a lot of the industries go below august lows. the volatility will not reach the same extreme it did in august. we are starting to see that. we see thousands below august low. we are looking for a move somewhere between august lows and october lows last year, 1820. that is where you may start

finding a stabilization of markets. those indicators are not working. i would argue for a lower volatility with one wildcard that we will have a debt ceiling debate in washington toward the end of the year on top of more fed meetings. leave it there. thank you for coming in. we really appreciate it. jeff, chief investment strategist, thank you very much. what you missed, we will break down market at -- market action deeper. take a look at credit default swaps. they are nasty. ♪

alix: we're moments away from the closing bell. i am alix steel. joe: i am joe weisenthal. ♪

alix: u.s. stocks tumbling. the s&p down over 8% this quarter. falling to its lowest level since october. joe: what did you miss. equity markets hurdle for the first quarter since 2011. alix: something is rotten in biotech. sector more than others. joe: glencore in freefall. commodities crater. can it here down its debt fast enough? alix: we have to begin with these extremely ugly markets. the dow down over 300 points. you are looking at one-month lows, the worst in the nasdaq. it was