states want to do is is with the world's largest country. we talk about how trade with china will create jobs at home. finally, good news for glencore as shares rally. can the rebound continue? job reports encouraging signs from small businesses. the latest index says mom and pop are higher. this is our senior markets correspondence julie hyman with a quick look at what is happening on wall street. julie: we are already in today's session and we have bounced between gains and losses. right now, we appear to be in the positive column. definitely, we have seen volatility thus far. just a few minutes ago, we had dipped into negative. it seems as though after the big decline yesterday that investors are still trying to figure out where to go from here. mark: one of the biggest shops on wall street getting more pessimistic. what is that about? julie: goldman sachs.

they are cutting their forecast for the year's end for the s&p 500 to 21 500. it is down 8% since the big drop that began in august. they followed on the heels of cutting their forecast. he is even more pessimistic. he is watching a couple of things behind this call. energy earnings continue to be under pressure from lower oil prices. he says that china's growth will be a full percentage point worse than economists are estimated. continued instability from indecision in washington, d.c.. finally, he points at the federal reserve and says that in years when we see interest rates go up, multiples are compressed. take a look at my terminal. a graphic of the s&p 500. forecast onaverage wall street. 75, wellge, it is 21

above our current levels. we have started to have strategists cut their estimates, but not enough to bring it down to the levels we are at right now. looking at the earnings ratio for the s&p 500, this is looking at the past three years of this ratio versus the actual price on the s&p 500. one of the things that kaufman says in his notes is that we could be a near peak in the ratio. if you look at a longer-term chart, you see that we are sort of in line with historical averages for that ratio, maybe getting a little higher. he says it will not get much better than this on a valuation side. mark: julie, thank you. from wall street to washington, a possible government shutdown is looming and a race for a new house speaker begins. the 2016 presidential candidates are laying other economic agendas. investors are waiting for the friday report. joining me to discuss all that,

governor jack markell, a democrat from delaware who is in new york this week for an event hosted by the china chamber of commerce and the bank of china. thank you for your time today. bilateral agreements, bilateral trade is up -- important to you and your state. is the economic slowdown that we are seeing in china, is that throwing a wrench into any of that? jack: i think china has been a great economic engine. it has slowed down from a very high rate. promotem here for is to exports on behalf of delaware companies and to look to direct foreign investment. we brought 22 delaware businesses up for a matchmaking session with chinese businesses. today, we are hosting several chinese businesses in delaware so that they can find each other and figure how to do this together. mark: delaware is a small state. what do you have to offer china? jack: a lot to offer. we have a great workforce. says we have the most

business friendly state. we have a good regulatory system. a great location in the mid-atlantic. mark: happy chinese been deceptive -- have the chinese been receptive? jack: week had some great conversations. this is a long-term kind of investment. i was in china last month. i was there a few years ago, as well. you have to build relationships so that people see what you each have to offer. mark: you were talking about china that you are also recently in germany. is it the same message there. you are trying to convince them that experts from delaware would be good for germany? jack: you are right, it has to be a win-win for both sides. we want business whether their business is already in delaware or is coming to delaware. we want them to be focused on the business, product, sales channels. outon't want them filling

forms, waiting in line. we want them to know that we will do everything we can to get them up and running quickly. just last week, a celebration of a new factory in dover, delaware. germany nextm flooring systems. they could have gone anywhere in the united states, and they chose delaware. mark: talk to us about the impact this is having on the delaware economy? the unemployment rate is 4.9%. we had better job growth over the last few years. we were really hit back in the right recession with both chrysler and general motors shutting their plans. the banks have come back strong. we are doing better manufacturing, not as strong as financial services, agriculture, and other areas, but we welcome all of the jobs. mark: let's talk about jobs. we are awaiting the jobs report on friday. what is your sense of the labor market nationwide? we hear conflicting reports.

we hear that the numbers are going down, the unemployment rate is going in the right direction. we still have a labor force participation rate that allies that figure and suggests that there are still millions of americans working part-time but they want full-time jobs -- belies. jack: one of the most frustrating conversations any governor can have is when an employer says i have 20 jobs to fill but i can't find anyone with the right skills. a huge part of our focus is making sure that we help people -12rove their skills at the k0 level and beyond. exciting in high-tech, .anufacturing a lot of work going on, a lot of jobs are out there. we need to make sure that employers can access people with the right skills. mark: let's talk presidential politics. is joe biden going to run for the presidential nomination? would you want him to?

delaware love and have respect for joe biden. he has been clear with the personal challenges he has been dealing with. it wouldn't be right for me or anyone house to her chin. he has a lot of respect in delaware, for sure. i am concerned about this presidential election. i want to make sure that our candidates are focused on how we improve people's skills, how we connect with the world, how we do more exports, how we do more direct investment. between skills and the engagement with the world, that is the right answer. mark: you know as well as any that right now, that is not possible because of bipartisanship, not the lack of bipartisanship, and gridlock in washington. some are calling for the shutdown of the federal government over planned parenthood. when people see that, they understand that maybe that is why you see donald trump rising in the polls. they believe that politicians can't get anything done. that in our will say

meetings last week or in germany , politics is politics at the national level. governors, us in delaware, we are focused everything will day, how can we improve the job situation? we are very anxious for the folks in washington to figure out how to work together to get this threat of a shutdown off the table. we are hopeful we are moving in the right version. mark: and 20 seconds, how much pressure does that put on you, fellow governors, and mayors to get things done because you cannot defend -- depend on washington? jack: this is what we signed up for. it is not put pressure on us. we are looking to do everything we can to put people back to work. mark: governor, it is a pleasure. thank you so much. let's take a look at what is making news. the senate is set to pass a stopgap spending bill and at averting the government shut down tomorrow night. lawmakers have rejected demand by republicans to defund planned

parenthood. the bill would refinance spending through december 11 straight the house is also expected to pass the measure. the new poll might give hope to people who want joe biden to run for president. according to the wall street journal, biden does better than hillary clinton in head to head matchups against jeb bush and donald trump. hillary clinton is the number one choice of democrats over bernie sanders. video in which a he endorses donald trump for president. at the same time, he uses it to attack ethics on water. >> wall street does what wall street does best. it sells securities. laugh at i used to these guys who sell bonds. i said that the mafia has a better code of ethics than you guys. you keep selling it. that is what is going on. it is deja vu. icahn says people want

donald trump because they want someone not beholden to the establishment. 50 countrieser have been convinced by obama to deploy more troops. right now, there are 25,000 u.n. peacekeepers point in 15 conference worldwide. here in new york, president obama will lead a summit on how to combat the islamic state and violent extremism and will meet with fidel castro. helping the government in afghanistan take back their city from afghanistan. -- from the taliban. president says troops are staging a counteroffensive. a surprise from india's central bank. the royal bank of india cut

rates more than expect it, 50 basis points. that drops the benchmark repurchase rate to a four-year low of six point 75%. only one of 52 economists surveyed for the to the move. india's arlen costs are among the highest in asia. home prices keep rising things to limited supply and increasing demand. according to the s&p case schiller housing index, pricing , slightly 5% in july less than the median estimate. home prices were up 10% in denver. a new estimate from goldman sachs predict the s&p 500 to finish in the red. david constant lowered his price to 2000.ndex from 2100 that is 6% higher than where the s&p 500 started the day. it would represent the first decline for the index since 2011. those are the top stories at

this hour. coming up in the next hour of "bloomberg market day," if you days away from the employment report, and a few jobs are signaling strength. plus, the greek debt crisis will take center stage in washington today, but will they be willing to help? a story on the watch industry ahead on "market a." ♪

mark: good day, and welcome back to bloomberg market day, i mark crumpton in new york. julie hyman is standing by in the news room with looks at the individual stock movers this tuesday morning. with thewant to start worst-performing stock in the s&p 500. discovery communications taking

a big hit. according to variety, the company's ceo is resenting at the inaugural analyst day in new york. forecasting says that the company's growth on the earnings and cash flow side will be on the low double digits. this quarter, it will be in the mid-single digits. it looks like investors are not happy about the news. they are sending the shares down by 5%. markets are hard to keep track of in this early session because we have already had whips. when i looked if you minutes ago, wind resort was trading lower sharply, and now it has recovered and trading higher. this is after a company called neptune group that operates in macau and other places, it said late friday it might not continue its presence in the macau vip gaming industry if the industry does not correct itself. yesterday ofll wynn as a result and are

rebounding after falling. it has been a volatile session and we are only 40 minutes into it. mark: how about biotech coming into today? julie: it looks like it might break the losing streak. i say might because like wynn, the nasdaq started lower and turned higher. there does not seem to be a catalyst, just as there was not a clear catalyst for the selloff aside the heller -- hillary clinton plan to cap drug prescription pricing. this has sold off for the last seven sessions. biotechat the nasdaq index trying to break that losing streak, it is still down 25% from its high on july 20. if it is down, if it ends up falling by the end of the day, the eight-day losing streak will be the worst since 2008 for the biotech group. julie hyman joining us

from the newsroom. thank you. goldman sachs may have washington to thank it for not looking like the troubled commodity company glencore. joining me now is michael moore who covers goldman sachs for us. before we get into the house and wise, give us the genesis of this story. what is going on with glencore and how is goldman involved in that? michael: over the last five months, they are down about 75%. goldman sachso, was envious of glencore, of their business model, of the lack of regulation they had to deal with. there was internal presentations where they said maybe we should start to look more like glencore, get into more of the physical assets, mining, this region of these commodities. they were and the us of the multiples glencore was getting in the stock market, and the way they were able to poach some of the traders. mark: the nuts and bolts of this

includes that congress was looking for ways that commodities wouldn't be taking over a firm like goldman. sharon brown, a democrat from ohio has his finger prints all over this. talk to us about what he was sponsoring, what he was suggesting to stop that. michael: goldman never got to a neck that plan of looking like glencore because of sharon brown and the push from washington to make the federal reserve crackdown on these physical commodities businesses to push banks to get out of some of them. the fed has still not come out it with the rules, but a lot of the posturing has caused the banks to scale back in these businesses. brown and other senators were worried about the systemic risks of if something went catastrophically wrong at these commodity businesses, they are very risky. also, what it does to the markets to have these big players on the physical and

financial side. mark: talk about hair loss between goldman and morgan stanley. you have that in your story today. -- talk about the differences. they invited to bank holding companies, they fell under the federal reserve. they got more scrutiny on their commodities businesses. the crux is that while wall street does not love all of this new regulation, this came at a pretty good time for them. morgan stanley got out of its montane business because of this year tori -- regulatory pressure. they did pretty well. they sold last july before the value of oil dropped off a cliff. mark: they are seeing less competition in commodities trading amongst each other? michael: they have had to deal with the rise of glencore and some other firms, but within the bank, a lot of them have scaled back. jpmorgan has scaled back its physical businesses.

berkeley, deutsche bank have scaled back. did not while they expand, they have not cut back as much. they are still one of the main players among the banks. mark: interesting last comment in your story, you spoke to the then cfo of goldman in 2007, david veneer said it is a dangerous business to be in if you are not an expert. it is a dangerous business to be and if you are an expert. uncle more of bloomberg -- michael moore of bloomberg news. think he so much. mark: the chairman of bloomberg news is a senior independent nonexecutive director at glencore. day," itad on "market has been a terrible, no good day for the markets. we will find out why next. ♪

mark: welcome back to "market

day." biotech index is struggling with its worst week since 2008. share prices have fallen 20 burn% since last monday. what is behind this massive drop? drew is here to shed some light from us -- for us. all this trouble started with a tweak. can we blame this on hillary clinton's tweet? drew: yes and no. her tweet last monday set off a 17-18% slide in the nasdaq biotech index. it was not just her tweet. --t it did was say that the the disability of the biotech industry to go in and charge momentr they want at the

will be fundamentally overhaul at some point by congress or someone else. there will be significant potential pricing pressure from a legislative and policy standpoint. mark: what did investors take that to mean? drew: the underlying issue is that in the u.s., the deals that the government has always made with pharmaceutical companies is this. you take the risk, you innovate new products to help people live longer, healthier lives, and in return, you can charge a very high amount for that. what we have seen in the last few weeks is that these companies like turning pharmaceuticals, the hedge fund turned pharmaceutical ceo has really upended that. that has come out into the open and they have gotten criticism. what they are doing is buying up all their medicine, -- older medicine, not taking risks, and then rising up the price to innovative level brand-name

drugs. they are not doing the innovation and reward that has been a long time part of the agreement between industry and policymakers. mark: are we seeing this volatility bubble up to the surface before her tweets? drew: this is a discussion that has been happening for the last year and a half. if you look all the way back to clead, they had hepatitis pills and charged a thousand dollars for it. a lot of criticism for that. it did not start this sector wide question of hey, is this tracing reward for innovation still stand when you're not doing the innovation? will there be further blowback because of it? really gilead versus the government and gilead versus insurance, but it was not the industry as a whole. they set themselves about. situation with turing and valeant pharmaceuticals, everyone is taking a closer, harder look at the industry. mark: we have about 30 seconds. i guess i am going to answer my

own question, the does this mean for consumers? what does it mean for people who need these medications? drew: in reality, it means there will be pressure on the nopanies that do this to longer do so ms they put their business model at risk. mark: thank you so much. still ahead on "bloomberg market day," how strong is the backbone of u.s. employment? we look at the strength of small business jobs ahead of the upcoming release of september's employment report. that continues with more news when we return in just 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: welcome back to "bloomberg market day," in new york, thank you for joining us. let's get to headlines. japanese equities have wiped out

all of their 2015 gains. investors are taking profits amid a wobbly economic recovery and an uncertain policy outlook. in new york, prime minister shinzo abe sees his policies as the right course for japan. speaking today at bloomberg headquarters, he said that public confidence is a building block of his plan. >> we must let the governance system make a difference. that we areou now going to build a new system o's and other board members should be transparently selected. japan's population of 127 million is shrinking,

challenging its status as the world's third-largest economy. the -- is been bought in $80 million. another investor is amazon founder jeff bezos. green mountain is debuting its soda machine after six years and more than a million them backing from coca-cola. they are pricing the machine at three and $69. they hope that this will revive k-cup sales, a rival that soda is facing. tobacco has agreed to sell its american spirits to japan for $5 billion. the group does not include the brand's u.s. operations. tobacco has been buying that overseas to offset a stagnating

smoking rate at home. more on the pulse wagon admissions scandal. a dutch importer has suspended the sale of vw's at the center of the controversy. in spain, vw's with the software insult -- installed will no longer be sold. in the united states, lawyers expect hundred of lawsuits to be filed. christmas is 90 days away, but l.l. bean is facing the same predicament as the previous holiday season. some styles of the most popular duck boots are on backorder. the shoemaker short of its manufacturing operations of that would not happen again, but it is happening again. the backlog could last until july. if the winter weather is severe, it could get even worse. those are the top stories at this hour. we are just a few days away from friday's employment report, and small business jobs are signaling strength. today, paychecks, a leading analytical company, teamed up to

release a small business job report. the results find that small business jobs are growing. the index has kept its head above 100 448 consecutive months. consecutive months. these numbers on the surface tell a story of small business starting to find its footing in this economy. how much of a different is a small business making at this point? marvin: i think it makes a huge business -- difference. small business makes up 95% of the economy in the u.s. from an employers standpoint. over years we have had 100 on the baseline. we are spread out in different areas. it is showing good, solid, steady small business growth. mark: why is this growth happening?

what are the factors contributing to what you have mentioned? marty: what you are seeing is coming out of the recession. this has been slow and steady and has increased consumer confidence, lower gas prices, you are seeing small businesses bounce back and invest more. it has been an exciting time for them. hear conversations in washington that the economy is doing well or not doing well, this seems to be a vote of confidence because small bit -- small business owners are doing this. if they are hiring more, they must feel confident about their future prospect. marty: that comes with consumer demand. if they are feeling of are buying a product and services, they will invest more. the good news is that one of the new sectors, we are breaking it down by industry sectors, and that has been by other services. income,cretionary personal care, pet care

services, when you are spending money on those, you feel like you have more money. that will lead to more small business investment. texas,ou mentioned michigan, where else are we starting to see signs of growth? marty: when you get down to cities, dallas is the strongest small business growth. mark: why dallas? marty: construction, housing. one you have small businesses around housing, painters, roofers, restaurants grow. you are seeing a lot of investment in housing. housing investment is at a seven-year high. we are seeing that come back as well. unfortunately, you see houston. dallas is strong, houston, because of oil and fracking dropping off, small businesses are not doing as well. that employment is down in houston. texas has a bit of both. mark: talk to us about the industry employment trend. what signs are you saying? marty: from an industry

perspective, leisure, hospital 10 -- hospitality, construction are the strong is growing. the good news is that discretionary income with lower gas prices are giving consumers more to spend. the bad news is that a lot of that is part-time. you are seeing a big growth of part-time employment in those types of industries. part-time employment makes up what -- 8.5% of the total employment. that is up 2.5% in two years. mark: it is interesting you mention of. the democratic of -- governor of theware discussed with us notion that for all of the signs of positive employment growth, there are still millions of americans working part-time, but they can't get full-time jobs. isn't small business trying to make up that gap? marty: i think they are falling part time. there are a lot of new rules. minimum wage has been proposed in a lot of state. overtime rules are being proposed right now and could have impact on small business. the affordable care act, even though it is not impact small

businesses under 50, i think they are concerned with dwight higher net -- part-time first and then make the next step? the millennial generation seems to make part-time -- take part-time jobs and multiple jobs. that is interesting on the employee side that they are making the choice. mark: why do for -- young people not want full-time jobs? marty: maybe a variety of experiences. we are not sure, but we are seeing millennial generation's take multiple jobs at part-time for more flexibility. i think there is a balance there. mark: you mentioned minimum wage. that seems to be the discussion, especially as we head toward the 2016 presidential campaign. our small business owners concerned about that? are they concerned they might not be able to hire people because they will have to shorten staff and pay that staff sayvable, some people minimum, but most people say livable wage? marty: i think they are. when you look at the average

wage in new york state for our clients, 30,000 clients, their average wage for part-time is around $10 per hour. when you think about $15 per hour, that is a big impact on small business. i think that could have eight dampening effect on their hiring. mark: we have about 30 seconds left. the employment report for last month is coming out for september on friday. what are you expecting? marty: it seems to be a study result. i expect we will see twitter 20,000 -- we will see twitter 20,000 on the jobs report. that would not be great, but it would be steady and sustainable. mark: 10 seconds. what seems to be, and in your clients minds, what is the most disappointing aspect of this jobs market? marty: more regulation. there are too many regulations out there that are slowing small businesses, in particular, from

hiring more. that is one thing to be concerned about. the ceo of paychecks joining us in studio. thank you so much. still ahead on "bloomberg market is in dangerrico of running out of money in a month. what washington bill of the commonwealth? officials are making their case on capitol hill today. that story and more in just a moment. ♪

mark: welcome back to "bloomberg market day," we are an hour into trading. let's get you caught up on market action around the world. let's start with asia where there is right across the board. 4%,nikkei fell more than the shanghai composite fell about 2%. one of the big stories out of

glencore's, on losses are sparking a selloff in asia. gloom shockede asian markets. ininspired a selloff commodity firms from sydney to tokyo. the biggest one trait -- one-day drop since the highs of the level financia financial crisis. the selloff in glencore wasn't just contained. its seng on track for steepest quarterly loss since 1998. wherelet's head to europe my colleague is standing by. mark, goodbye. good day. a bear market, falling the

most since april. thanks to no small part to glencore. falling 29% yesterday, rising as much as 21% today. that is its biggest intraday gain since it was sold to the public in may of 2011. analysts say yesterday's drop was overdone and that glencore, itself, has no solvency. what is next for glen care shares -- glencore shares? bernstein is the most bullish score, it is all happening for glencore. have a look at what is happening to sterling. on for the eighth consecutive day. ina today showed u.k. trends august. that is not enough to stem sterling's decline against the

dollar. little move in the bond market. writing.sewhere are a german inflation report shows inflation unexpectedly went negative last month. what does that mean for inflation in the euros zone? we will know tomorrow. inflation was expected to stagnate last month. butter be a push on the qe on? we will find out sooner rather than later. julie: we are looking forward to find that out for sure. i will look at inflation in a moment, but let's look at u.s. stocks where we were seeing volatility. they are near the high of the session. a lot of that has to do with biotech. on my look at the imap terminal. you will see that health care is the single best performing industry group today. that is quite a switch from where we had seen it in the last seven sessions where we had seen biotech sessions tumble. now recovering 2% today. energy and materials also

rebounding, even as consumer staples and utilities continue to decline. what's look at the commodity string today. oil is rebounding. ahead of the and report, we have seen u.s. production declining for six of the past seven weeks. will we see it continue? will we see supply decline to some degree, as well? we will see tomorrow. oil is rebounding ahead of the role. copper is rebounding. mixed trading on the commodity from. i wanted to come back to the u.s. dollar. you heard it mark talking about it a little bit with reference to other currencies. the dollar is seeing some strength today, rising against the euro and the pound and japanese yen. we are also seeing in terms of the bond market not a lot of change today. we saw a big rally in prices and a drop in yields yesterday as people were getting out of stocks and into bonds. today, that trait seems to have

rehearsed to some extent. something that caught our eye is the breakeven rate. our inflation expectations being baked into the u.s. market in their lowest in about six years time? that would suggest that we will continue to see treasury yields and limited on the 10 year higher maturities at this level. mark: thanks. rico's debt crisis takes center stage in washington today. island officials appear before a senate panel to explain why the commonwealth might need federal assistance before the year is out. will washington be willing to help? kateng me with answers is smith. thank you for your time. his washington willing to help? kate: i don't think they are. the senate committee opened up this morning attack on a.m. the chair of the committee opened up by saying that he is not industry -- interested in a

bailout situation. interested in that kind of help that some of the people on the island were hoping for. already, it is not looking foot -- good. mark: investors. this debt with the understanding that bankruptcy was not an option. is that written in stone? kate: a lot of people who look at municipal bankruptcies think it might have been for better or for worse, a mistake. that puerto rico was not included in the bankruptcy code. it is being debated in washington. i have been following this, and i think one of the most troubling things if you look into the island is that you have a bunch of top officials in puerto rico in d.c. advocating for their residents. none of them agree with what they want. some people are saying we want bankruptcy, some are saying they want a bailout. others are saying we just want a federal control board. even from the island's perspective, they don't know what they want. mark: is there any resolution

the u.s. government can give to puerto rico at this time? kate: i don't think there is any form of a bailout or access to bankruptcy. i don't think he will be able to find enough people in d.c. interested in changing the bankruptcy code like that. wall street would be way too upset by that. what they can do and what should be visited is the idea of a financial control board. that would be tapping some of the amazing resources that you have an d.c., people the motor with bankruptcy. -- familiar with decorative. even in detroit, they can help assist the island and give the governance that isn't there. mark: you mentioned detroit. all one has to do is remember what was going on with that city's bankruptcy. washington did not help to try. i would imagine it is not a stretch to say that if they did not help detroit, they will not help puerto rico, either. citizen,you are a u.s. it would be hard to stomach the idea that d.c. did not want to

help the chores but we are going to help a territory. you will not see a lot of popularity behind that. mark: a lot has been made of the 2016 presidential race. is this going to be an issue? is this something that both democrats and republicans will stake part of their candidacies on? kate: i think you are already starting to see that. hillary clinton has come out and said that the island should have access to chapter nine municipal bankruptcy. a lot of republican candidates are saying that they should not. i think you will see this. it will not go away. you will see this into the 2016 election. republicans, i think, will not be willing to change the bankruptcy code or giving federal bailout that they would perhaps warned. mark: i don't mean to put you on the spot but it seems that this was predetermined. is this show on capitol hill a photo opportunity? did officials from puerto rico waste their time asking for help? kate: i think they might be.

the biggest way they have wasted their time in my opinion is that none of them seemed to have met before hand and come up with a plan. representative in congress saying one thing, the governor saying another thing. they are all saying different things. i think the message, if i were in congress and i see even the island doesn't know what they need, why could i figure out what they need? i think they are wasting their time. mark: no unified voice there. kate smith joining us. we appreciate it. still ahead on "bloomberg market day," the chinese slowdown has not slowed down. the hands of swiss watchmaker's, we will see how they are avoiding global hurdles. that is next.

mark: welcome back to "bloomberg market day," thank you so much for your time today. there may be tough times ahead for the switch watch industry.

apparently, that is not slowing down the luxury watch maker. the company is expanding. today, it opened up a new factory in switzerland. wth,eep pace with its groth secondopened up its factory. joining me now is there chairman and watch chief, jean-claude. thank you so much for your time today. talk to us about the opening of the factory and the timing of the opening. : i think the timing is right because we are looking for the long-term. is for 19 -- 2025. that is at least 10 years from now. the timing is not important. what is important is that we can now start immediately to increase our turnover and reduction. in 10 years, we will have a

third one. for the timing, the timing is not important. number two, what is also important is that in this new manufacturer, will they be able &d?increase the r today, more than ever, innovation is the future. if you innovate and a market that is not great, you have no chance to sell. number three, you know it already, hublot will have a growth at the end of august of double digits. that means that we have not suffered at all, for the moment, from the market. the market is not the best, but for us, as long as we do double digits, we cannot complain. mark: the slowdown that we are seeing in the chinese economy, how has that affected your business and the watch business overall? jean-claude: i prefer to talk about watches in general.

hublot is so weak in china. turnover -- 8.6% of our turnover in china. the slowdown can be as much as possible, and we don't feel it. has 36%s watchmaker of its turnover in china. that means that they can be affected by the slowdown. it is interesting to note that if we sell less in china and less in hong kong, that is clear. but, we sell more in australia, america, paris. less in what we sell china is somehow compensated with what we sell to the chinese outside of china. mark: i have to ask you quickly

in about 20 seconds, your challenge, or your answer to the apple watch, what is it? we seem to -- we seem to have lost him. we thank him for his time. .hairman jean-claude coming up on "bloomberg market day," pimm fox joins me as we look at the chinese economy. growth is coming. can he back up his post? that story is next. ♪

mark: the day from bloomberg world headquarters, i am mark crumpton. fox. i am pimm japan post economy, is it finally ready to spring out of deflation. the prime minister think so and we will hear why. before we can comprehend glencore post fall, we have to understand its rise. and the italian prime minister says the syrian crisis must be sold and russia must be part of the solution. we have an exclusive interview, coming up. let's go right to julie hyman with a look at what is happening in the markets. a little bit of a rebound. indeed, we have a rebound after a steep falloff, that after a falloff yesterday. it wasn't certain that we would see this rebound.