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. stocks looked on a shaky ground.

we were into the red earlier before rising. interestingly, the group that has the most to do with this is biotech. a genetic rebound, not just today but over the course of the session. it did dip lower before rebounding in this earlier session after seven straight days of losses for the nasdaq index. selloff was set off by hillary clinton and her tweet about capping prescription drug prices. but it seemed to not end there. that was perhaps just the catalyst for the selloff that occurred with those shares. i want to take a step back and look at the s&p 500 over the past three months, the quarter ends tomorrow. the s&p is down more than 8%. chart, goingrterly back about 10 years.

you can see the drop this quarter. quarter sinceorst the third quarter of 2011. perspective, it has been a lousy few months. thank you very much. julie hyman reporting from the newsroom. been struggling with deflation for years now, and nothing it does seems to help. the prime minister is pledging to change that. pledged the forum, he to restart japan's economy. the time is right, ladies and gentlemen, to launch what i call economics 2.0. [laughter] >> our political condition is favorable, based on that

isbility, our first priority economic growth. to do whatever --takes to boost the economy pimm: japan's prime minister. anthony, thankis you for being here. if you heard what the prime minister said, is he likely to succeed? i think the jury is still out in the long term about whether abenomics transforms japan. last two years, japan has performed rather well, i think it is improved confidence. we are beginning to see a bit of

, we are seeing the consumer a bit happier with life, and anyone who has been to japan recently, the boot is slightly better. -- the mood is slightly better. is it your contention that the japanese citizens are buying into abenomics 2.0. ? i think they are buying into his. they are outspending again, modestly. japan plays an important role, and the other focus now is that there are so a lot of other great companies in japan. industry-leading companies. pimm: let's go to emerging markets, what effect does the the decline of,

commodity prices having on emerging markets, and what opportunities do investors have? >> if you are a commodity producer, it is a very tough time, particularly with oil. if you are a user of those commodities, there are benefits to be had. in places like india, china, most of asia. those places are benefiting quite significantly. are asly, commodities bad in terms of pricing as we have seen them in many years. is your approach as to whether or not people should invest? >> we think they should invest. after the recent selloff, global investments were already underway, now they are more underway in emerging markets. , todayd never say this is the day or this week is the week, but we think in the long

term, emerging markets are still contributing to a lot of the world's growth. that hasn't changed but the numbers are lower. going to ask if we can go into my terminal to look at a chart. of the green and red, it just means, as you described, there is a huge selloff in equities in emerging markets. what do you suggest to investors now that might have fresh money to deploy? >> one thing we would advise is epf.o invest in the it is a catch all. we think you made to be much more targeted than that. pimm: stock selection? >> stock selection within countries. if someone said they were going to get on a plane to check

out physical investments, where they go? we think asia. there are a lot of investments related to environmental agencies. the idea of expanding development across china and region, and also another important event is the upcoming inclusion of the by mci.-- even with the economic slowdown, you are so confident? >> we think there are still a lot of opportunities in china. but the slow growth is something that china has to get used to, and the world has to get used to. , thank youny crank for joining us here in the studio. we appreciate it. pimm: let's take a look at some of the top headlines. home prices keep rising thanks to limited supply and increasing

demand, according to the s&p housing index, prices rose 5% in july from the year before. that is slightly less than immediate estimates. they're up the most in san francisco and denver, both of more than 10%. u.s. warplanes attacked the city in afghanistan today to help the government take back from the taliban a city that had been lost to them. militants raise their flag yesterday after capturing the taliban's as the biggest victory since 2001. but the troops are at a counterattacking. the plannedif parenthood fight will not shut down the u.s. government, at least for now. is expected to pass a stopgap spending bill before agencies run out of money tomorrow at midnight.

a new budget will be needed in early december when the battle will begin again. mark: a new forecast from goldman sachs. it expects as of the five the red this year. they have lowered their price index for the index. represent the first decline for the index since 2011. there is a big transaction in the tobacco industry. has agreed tocan sell its natural american spirit -- japan. -- japan tobacco. they have been selling overseas to help offset a stagnating smoking rate of home. recordns have bought a property inin

manhattan this year. canada's accounted for more real estate sales in manhattan than any other foreign country. those are your top stories that we are following at this hour. up in the next hour, we will be taking a look at glencore. everything you need to know about the commodity giant. plus, the battle over the control of your television box. it rages on. exclusivein an interview with the italian prime minister, he tells the bloomberg editor-in-chief that it is time for world leaders to pull russia back from the cold. we will have much more just ahead. ♪

mark: welcome back to bloomberg market day, i am mark crumpton. pimm: i am pimm fox. hyman with aulie look at some of the individual movers in today's market session. julie: i want to take a couple of looks at the best performers. let's look at johnson & johnson, the analysts called it a diversified safe haven with capitals that are deployed. there could be some sort of near term deal within months that would be positive for johnson & johnson. mcdonald's is getting an upgrade over at credit suisse. is, time on this note to start loving it. analysts there talked about the 's same-store sales

trends improving internationally. suisse says that is starting to materialize in america, and analysts are looking ahead to all-day breakfast as a potential catalyst. so watching those two on the dow, we are watching yahoo! as well. we are on track to spin off alibaba. there have been a lot of tax questions about how it is going to work as a tax-free spinoff. yahoo! says, don't worry about it. it will happen before the end of the year, it is not entirely clear, the structure of the spinoff. take a look at how yahoo! as performed against alibaba. both of the stocks are down, and this is a normalize charge, so it accounts for the percentage differences. yahoo! is down about 30%, alibaba is down about half of that. belowtrading about $10

the open share. it was a proxy for alibaba, it as not done well since alibaba and china have waned to some extent. that has is asking questions about how the spinoff is going to work. pimm: thank you very much. glencore made, several of its employees billionaires. today, the trading company finds itself squeezed by lower metal prices as well as lower energy prices, and concern about growth in china. for more on glencore story, i want to bring in heavier blasts -- javier b from london. las what is glencore? it is the world's largest

commodity trading house. is as big as goldman sachs for the commodities industry. they trade most of their global -- they areinium the center of the global commodity industry. we are touching commodities that were traded by glencore. it is very central, and it is an indication of how the chinese economy is doing. because glencore is a company that is very well exposed to the chinese economy. mark: glencore's problems, with a affect the economy? >> they will affect the global commodity market for sure. this is a hypothetical case, but if glencore went under tomorrow, it would be a big deal for the itbal commodity market,

would have an impact on the -- it would not have an impact on the global economy. it will be a big event for commodities, not a big event for the global economy. , who isan glasenberg he? is 58 years old, he is south african, he still runs 10 , hemeters every morning raised through the ranks of glencore. he was made a ceo about 10 years ago. to break in, you mentioned marc rich, what is his relationship with glencore? rich turned for men into glencore. company in 1974, that company in 1993 was part of a buyout that included many

companies that transformed into today's glencore. ivan glasenberg was one of the golden boys of marc rich. he knows china very well. and then moving to where the ,eadquarters of glencore is around 2000, he did become ceo of the company, and he is a tradingd it to house with a big mining operation. the main trading risk for glencore at this point is, if the banks that supports glencore -- it consumes a lot of capital, and it doesn't have it. banks saw a problem with glencore and decided to call the credit line, that would be a big problem. but so far, i have been talking to the banks and there is no

sense of paying it -- sense of panicking in the banking community. mark: as a disclosure, the chairman of bloomberg news is a senior independent nonexecutive director at glencore. coming up on the bloomberg market day, carl icahn unplugged. he warns of dangers ahead and he blames everyone. ♪

mark: welcome back, carl icahn rarely minces words. he warns of a looming economic catastrophe and just about everyone is to blame. stephanie ruhle joins us now. blame,ie: key is not to the world according to carl, while he says he backs donald trump as a presidential candidate, he is also looking at

the market. he says wall street is irresponsible and the way they are selling securities. he says the fed has pushed .nsophisticated investors let me take you back to 2008. >> wall street sell securities. they used to live with some of these guys who sells these bonds. and i used to say that the mafia has a better code of ethics and you guys. you are shorting some of this and that is really what is going on. it is just deja vu. this is the world according to carl, he is pointing at the market. they are called junk bonds for a reason. when volatility strikes, investors will want to pull out but they will not be able to. what he is and mentioning is that in 2008, the market was highly levered. ,eople were much more limber

but at this point, carl disagrees. he points fingers at black rock saying you were only worsening the problems. accurate, is or something that will change by intervention of the government? isn't this just the normal function of the market? they sell and then they move on to something else? stephanie: carl wants to be the guy ringing the bell so a year from now he can be the guy who says, i told you so. going tothis was happen over the last few years by various investors, whether we're talking about china or europe. pimm: we started talking about this when we started quantitative easing. that was going to take mom and pop investors to take money out -- stephanie: in 2008, it made sense. what the fed did was step in and

rescue, which was fantastic. but at this point, why haven't they raised rates? the unintended consequence of keeping rates where they are could be far more catastrophic. it is time to pull the trigger. mark: he wants to help the treasury department. he wants the irs to help the treasury. how is this supposed to happen? stephanie: carl wants to help? he believes in a free market system. should dos everyone their business, but the fact that ceos are sitting there while sitting on piles of cash and not doing much. and whether you like carl or not, he has taught corporate america to be more accountable. don't think ceos are worried about activist stepping in, you are wrong. they are. he is not saying donald trump is

the ideal candidate, but whether he has $3 billion in the bank or $10 billion in the bank, he is not afraid to use the phrase, you are fired. carl likes that. pimm: i want to go to julie hyman in the news desk. we are waiting for this andfrom ab inbev anheuser-busch is now lining up banks including bank of america 2 -- the $70 billion in financing for a possible deal. hasooks like deutsche bank also submitted financing to ab inbev. as $70d be as much billion, it could be as little as $50 billion. the timing of any offer could

finalizinginance -- the finance package. so we are just getting those headlines crossing now, we have all been waiting for that bid to potentially come. clock,ancing up at the because the european markets are still open. we are not seeing a lot of reaction in the sb miller shares. -- sab miller shares. neither are getting a big reaction as of yet. all right, julie hyman, thank you. i am out, i will see you in an hour and a half. pimm: we have much more coming up on the bloomberg market day. ♪

pimm: this is the bloomberg market day, i am pimm fox. let's take a look at the top stories. pushingays it is forward with its spinoff in the stake in alibaba. the spinoff is valued at about $22 billion. that is making investors nervous that still who could be hit with a large tax bill. the irs won't rule on the transaction in advance. turning to amazon, they want to be part of detroit's economic rebirth. the company plans to create and hub in detroit. there will be a new corporate office park in detroit. thecity is emerging from egg is bankruptcy filing ever. and japan's prime minister is in new york. he is talking about the plan to kickstart japan's economy. japan has lost all of this year's gain and more. the prime minister spoke more at

a forum here in new york. he said the boost in confidence is a building block of the plan. >> we must let the governance .ystem make a difference i can tell you now, we are going to build a new system whereby members other board .hould be transparent transparency and accountability. the population of 127 million people is shrinking and aging. it is the third-largest economy. -- joe biden, he is not running

for president, not yet. the vice president would do better than hillary clinton when matched against key republican rivals. those surveys favor the vice president is going ahead against jeb bush and donald trump. even though she is losing steam, hillary clinton is still the first choice of democratic voters. couric green mountain is finally unveiling its soda machine after six years. it has been backed by more than it islion by coca-cola, the priciest machine so far. -- kempany hopes curate kold will help revive sales. those are the latest headlines. the markets are closing in europe.

we go to mark barton. we called back half of the losses that we experienced earlier in the day, part of that is because of glencore. european mining shares are on ,rack for the biggest drop falling by 31%. below inflation went negative, that was interesting. forets us up nicely tomorrow's inflation report. qe? that mean more qb -- improved, sectors that was the major story today. 24 hours ago, i was tell you it was the biggest ever decline, but now glencore is up i-17 percent. it was bagged by a number of

analysts today, they were seeing the drop was overdone yesterday, the 29% drop. glencore has no solvency issues. and bernstein standing up, they are the diverging analysts. is the most bearish, it has 120 pence score. years instructed in six for the u.k. building materials company, it will cast north american industrial -- will be challenging. 2% today.l is up by the second-largest maker of car parts. goldman sachs is adding them to the buy list. they have a focus on a mission standards.

finish with the stoxx 600. i want to draw on this chart. , the stoxx 600 nearly went into a bear market from the highs earlier this year in april. at one pointugh, it was 19% below that level. that is it for me. pimm: that was mark barton reporting from london. as world leaders gather in new york this year -- this week, much discussion has been centered on the conflict in syria and the role russia might play in it. spoke about the need to resolve the syrian crisis. >> we need a solution in syria. it is impossible to have a commotion when the soul picture -- we comele island

back to normality because they finish their reaction. we must absolutely find a solution. day, we saw and the mediterranean sea, pictures of violence. >> does that have to involve the participation of syria? to come back has to the dialogue between russia and the united states. had a bilateral meeting after a lot of months, so this is good. -- youtalked about described america as your best putin, he is somebody who you get on better with them some european countries. is there a case when you have , where putin is essential to making some kind of progress, when do you think we

should start rolling back sanctions on russia? >> i think we need russia involved. russia inn evolved the solution, because respected to some people, not the united states, but some people in europe, they consider russia our enemy. no. we must preserve ukraine's sovereignty. we must preserve borders of this country. at the same time, i used my tost year in the government implement a relationship with russia. you use this physique -- this phrase because you believe -- by

russia. this is stupid. because we have a good everyone, wewith have a good relationship with russia. but our strategy with oil and gas is different. we will continue a good relationship but we will invest .n the relationship today, the end i is the number in africa. and gas recently we discovered an field in egypt. .o it is not a money reason it is an ideal reason. for me it is important to involve russia. you think putin is someone ?ou can do business with in terms of margaret thatcher

and george bush, do you think he is someone you cannot trust? i think vladimir putin is the president of russia. russia is a great country with a great history and a great future. russia,a future without it is a mistake. and i think we can invite russia .o respect rules in ukraine the rules in ukraine are in the protocol, everyone must respect them and nobody could foresee the problems with that. but it may be, brush it is russia. the migration question, it asks the sense of the identity of europe. pimm: that was italy's prime

minister, matteo renzi. the battle over your set-top television box raises on. -- rages on. that is next. ♪

pimm: just out of lower manhattan from the top of the headquarters here in new york, i am pimm fox. this is bloomberg market day. at the latestook headlines. anheuser-busch is lining up banks to arrange as much as $70 billion in financing as it

prepares its takeover proposal .or sab miller bloomberg news has learned that bank of america, banco santander and deutsche bank have all financial reports to the world's biggest brewer. they're working with around 10 banks to arrange a total of financing between $50 billion-$70 billion. the timing of the deal will determine -- will be determined by the finalizing of the financial package. you may think every day is coffee day, but this is the official national coffee day. you can celebrate by grabbing freebies from dunkin' donuts, and even on, pete's jetblue air flights. volkswagen's diesel automobiles are no longer being sold in two european markets, spain and the

dutch importers suspended the .ars as of the omission scandal the commercial division says the vehiclesion of tesla is that -- xleasing the first model suv's. x is designed to compete with luxury suvs made by porsche, audi and bmw. betty liu will be broadcasting and give you live coverage from the brand-new tesla suv that will take place tomorrow. the fcc is considering breaking the grip on satellite companies over your set-top box. customers rent

set-top box directly from companies. companies like google say competition would lower costs and improve the functionality. for more details, i want to bring in cory johnson. why does google want to get into this business? this is not been a great business, why do they want to get into it? cory: there is a lot of control over the content that people consume. the set-top boxes themselves are techno -- ari technology that can gather a of data from that. pimm: they currently do get data from certain set-top boxes? cory: a lot of the data they get -- it was one of the things that was attracted to them. in an era, if you think back to

the days of at&t, where you printed the phone from at&t, and you had the dial phone that was charged extra when they introduced the pushbuttons, because it was an innovation for them. this is innovation in this area, usinge 99% of people are things provided to them by the cable company themselves. perhaps this is stymied. pimm: having said that, based on your experience and research of togle and their ability bring a hardware product to the marketplace, can they really do this? apple has apple tv, it functions a little bit like a set-top box. amazon, microsoft, the microsoft xbox has the capability to june channels -- 22 and channels.

use the tivo device as a set-top box, but you have to pay extra to do that. comcast, there are a lot of things they want to steer you towards. the least of which is the competitive services that compete with hbo and amazon. pimm: is this going to be a piece of hardware? >> i think this will very well be a piece of hardware. but the question is, will cable companies give up this source of revenue? mentioned, 99% are paying the cable companies. this box controls all of your access to all of your programs. >> charging for that alone is creating tens of millions of dollars for cable companies each year. pimm: are they also going to be providing internet service?

interesting to see the cable companies playing both sides, comcast in particular. cable companies are moving towards a place where they are just the content creator. i would argue that comcast is trying to be both. all of the things that they are , they're extended to program, renting out movies, they are competing with netflix and apple tv. pimm: thank you so much, a good story. johnson. still ahead on the bloomberg market day, india's central-bank cuts its rates by more than half a point. that is more than economics expected. we have brendan greeley coming up with a look. ♪

pimm: i am pimm fox. india's central bank has lowered its purchase rate to 2.75%. economistsof the surveyed said a quarter-point likely, they were surprised when the bank's governor made the biggest/since 2009. but was brendan greeley surprised? brendan: i was surprised. we had some analysis that we looked at, we thought they had such a strong stance against inflation in india. -- is the polls altar of inflation. earlier this week, i spoke to the head of the state bank of india, the private bank in

india, and she put it into perspective for us as to what his role is in india. isi would think that it having very clearly, he started out as an inflation warrior. he would like to ensure that inflation is put down once and for all. correct in saying that inflation is a tax on everybody. cycle you want to begin a of growth, we need to defeat inflation. brendan: so basically india is an exception for everything we have been talking about emerging markets over the last month. what is happening with commodities is really good for india. pimm: they are big oil importers. brendan: you can't strip out food when you look at their cpi, it is a huge part of their basket. the cost of onions has gone down. he has been given this amazing gift to where he can do what

india's finance ministry to do for a while. pimm: there have been a lot of people who have asking -- who have been asking india to liberalize the economy, and to open up the presence of investment. brendan: that is more difficult. he basically made the exact same point, he said, bankers have done everything they can. we are tapped out, we are out of tricks. the next step is structural reform. you can't do that with a stroke of a wand. pimm: the same kind of parallel. the banks are doing it the same as in the united states, but it is the politicians. thank you so much. let's go right to julie hyman. julie: let's take a look, we are hanging onto gains, although we have -- after yesterday's big selloff.

you would think there would be more of a conviction rally, but it doesn't seem to be the case. i want to bring in kevin kelly right now, he is the chief investment capital officer there. we are happy to have kevin back. he was at oktoberfest in germany. in the a picture of him swiss alps with a friend he made there. >> they are really gentle. [laughter] german markets are doing really well. julie: back to reality here in the u.s.. looking at the options trading today, we are not looking at a lot of conviction. kevin: you are seeing three times the amount of puts being traded against call, so everyone is putting on more insurance through this earnings season,

because we don't know what companies are going to go out. setting their budgets, so they are going to temper some expectations. we are also seeing the volatility, it hasn't closed below 105 over the last month, the average is around 85. it is a little elevated, that's just there is a little more volatility going forward. julie: walk us through exactly how you are doing insurance. it is by and at the money. -- you want to buy at -- you want to sell at 17.30. it cost you 2% of your portfolio, that will help you sleep at night all the way through the end of november.

it picks up your percentage your portfolio 8%. it will only cost you about 2%. julie: if it doesn't go down about 8%. why is this insurance necessary? you talked about the earnings outlook. very quickly, what is the reason to be there is -- to be prepared? we are seeing a key for worldwide growth, and that is copper. that signals china which is the largest seller. so until we start to see a price come up on that -- julie: kevin is paying attention. more bloomberg market day is next. ♪

pimm: good afternoon, it is noon here in new york, and it is midnight in hong kong. >> welcome to bloomberg market day.

rallied -- glencore rally today. stocks, they are moving higher in little bit after yesterday's date route, but is there more volatility ahead? president obama trade's greetings with iran's foreign minister. brendan: first we're going to get a check on the markets with david girl. david: we have -- up today. drought,n $800 million let you bring you -- let me bring you into my bloomberg terminal. looking here at health care,

they are having a pretty good day. is snapping a seven-day losing streak. it goes back to the tweet that hillary clinton sent out about a week ago saying that a company was doing some price gouging, that led her to saying that biotech has gone on a wild ride. you have the best spoke investment group saying this might not be the worst we could be in. a further drop to come. i wanted to talk about oil, climbing to a two-week low. oil in those less stockpiles, so that is something we are starting to hear about from the commodities. from oil to supply to demand back to supply. pimm: it has been a wild ride for investors lately. the s&p 500 has tumbled about 8% this quarter.

let's get more insight on the cause of the volatility. .oining us is martin sass i want to talk to you about what our correspondent was just pointing out with regards to hillary clinton's tweet. what is the value of looking at the possibility of some ?egulation down the line margin: that may be. when you really look under the hood, away from the outliers like the crazy -- who raised -- when you look at it, drug pricing is actually increasing at a lesser rate

overall. problem, it is a popular thing to attack, and it will probably continue, but i think we have a republican-controlled congress, and you have to get it through congress to regulate pricing, it is impossible that you will really attack drug pricing. outliers, yes. crazy pricing, yes. but when we look at the big picture and the large companies that will be impacted, i don't think there will be an impact. the market is overreacting to this. quarter, they took the index down 29% from the s&p and they took everything in the index down. and out of this carnage comes a fabulous opportunity, companies we know really well are buying illustration.

billion is getting $29 net in cash, that is a fixed tether of its generics business. they have said they're going to do a transformative deal. it is wonderful for them that these stocks are down. it allows them to do a deal at a cheaper price. you can buy the stock at 10.5 .imes pimco you -- pimm: you have been doing this for years. what does this remind you of? i've only been doing this for a few years. pimm: and you still have all of your hair, so you are doing well. [laughter] allergan is one, another one is mylan.

the stock is down in this recent route. these are fabulous companies that organically are going to go double digit, they have very strong balance sheets. they are in a position to do transformative deals. so one of the macro pictures that we have to pay attention to , it started with china, and then spread to the emerging markets, the currencies are under pressure, they are plunging. brendan: panic selling in commodities. >> you have a divergent world. , andave emerging markets you have the u.s. economy improving. and you have us about to tighten and the rest of the world easing, it is creating turmoil. brendan: u.s. housing in particular, you said don't pay attention to housing sales, but pay attention to renovations. we have, i think housing

across the board has a long way to go. housing sales are below household formation. is an unusual thing. it will change. there is a pent up demand and homeowners can't even meet the demand. improving, rents are going up, incomes are going up. twot is all going to a new a housing blast. materials -- le brendan: the u.s. fed said exactly what you are saying, u.s. formation hasn't turned into u.s. housing sales because there is a debt overhang that the previous generation didn't have. student generation plays a part as well.

>> yes, but that is improving. first-time homebuyers went to a last year, it has been improving. gradually improving. so as the economy improves, these first-time homebuyers will be able to afford their own starter homes. pimm: panic in the marketplace, whether it is stocks or commodities, that provides you with opportunities? you are a long-term investor? the short-term investors that are causing all of this wildness? >> i think it is mostly retail investors. pimm: they get panicked? exactly. if there is a sail across the street on your favorite shoe, 50% off, you want to run over and buy it. if the market gives you a great

sale on a stock, they run away. it is a fear factor, and investors can't take the pain of loss. let's talk about fear -- are people who have been in the market for 10 years permanently scarred? heal.ple but there is a fear factor because of the last crash in 2008-2009. pimm: that is when they got the world was going to end. >> absolutely. [laughter] we may have another leg of panic coming because we are testing below the low. i was looking at 18. five, the intraday. someone said, be

worried if it gets below 20.40. weright, that number is what are looking at, the market is looking at, investors are looking at. with everybody coming to new york, all of these airplanes have got to be full. looking at american airlines this is not the same american airlines that we saw a decade ago. >> exactly, when u.s. air , they cleanedhem up and they did a phenomenal job. this stock is trading at 6.4 times the estimated. we are tax adjusting it. thathave a huge cash flow they are using to operate the fleet. they have the youngest, most efficient fleet. they are doing share buybacks,

dividends, all the right things. another is the -- leasing business. it is a durable growth area. it is the largest publicly traded aircraft connoisseur, it is trading at 5.8 times earnings. it will have double-digit earnings. sass.n: all right, martin say brees deeply, don't give in to fear. [laughter] i would say, put a shopping list together, if there is a route, said prices at which the point it is screaming by. pimm: thank you so much. let's take a look at some of the top stories at this hour. anheuser busch is lining up

banks to arrange as much as 70 billion dollars in financing as it prepares a takeover proposal for sab miller. and of america, santander deutsche bank all have proposals . they are working with about 10 banks, they want to raise between $50 million-$70 billion. there was a major transaction in the tobacco industry. reynolds has agreed to sell the spirit tobacco brand to japan tobacco. been buyingo has tobacco brands overseas in order to offset the decline in japan's smoking rate. brendan: shares of valiant pharmaceutical fell as much in four years. raised the stock prices

more than 500% the day they acquired the stocks for it. expects the s&p 500 to finish in the red for the year. that is 6% higher than where the s&p started today, but it would represent the lowest finish since 2011. pimm: amazon wants to be part of detroit's economic rebound. amazon is going to create a technology hub in detroit. it unveiled a new corporate office yesterday in detroit. those are your top stories at noon. brendan: coming up in the next half an hour, japan's prime minister spoke at bloomberg's forum. we will hear what he has to say. pimm: and barack obama shakes

hands with iran's foreign minister. we will find out what this gesture means for relations. brendan: even if prices fall, there is a growing demand for biofuels. a growing biotech company. ♪

pimm: this is bloomberg market day. i am pimm fox. brendan: we have a lot moving today, let's start with apple. what is going on? >> a big move, it is dragging the dow down. i want to flag something here in facebook,l, twitter,

they make a lot of noise, this is a tool that will help you. mountain that makes those little pots to make coffee, the company hopes he will also make soda and other companies with them. they are debuting that next week with backing by coca-cola. what the company is trying to do is to move out of coffee to be a device that you would use throughout the day. gopro i wanted to flag. you buy your gopro, what else could you do? there is a lot of growth when it comes to drones. they don't believe that the cell phone camera is going to supplant the gopro. a company that has been upgraded hasells fargo, it demonstrated clear ability to generate profits and cash but it

did cut estimates based on commodities. commodities are still very much the story here today. brendan: thank you. there are skeptics about the cold brewer, i did suppress a laugh. obviously i was laughing with joy for soda stream. companies that usually complain about washington meddling in their business, that goldman sachs may be thinking these politicians. brendan: joining us now is michael moore who covers goldman sachs. help me out here. >> they were well-timed. ison't think goldman sachs quite sending that thank you card yet, but maybe they should. it was a well-timed push by the regulators to limit goldman and other wall street banks move in

the physical commodities. it happened right before commodities fell off the cliff. in 2011, they had a presentation when they said why can't be be more like glencore. about are more excited them, maybe she we should be more like them? the regulators, this push came from congress to stop any chance of that happening, and based on the last few months, that might have been a good thing. i am recalling a conversation i overheard in 1999 when i heard, why do we keep getting beat by enron? pimm: beware of jealousy. this is unintended consequences, right? >> right. most ofplain why have the big banks, week as we have noted that commodity trading

operations have spun off, so have the banks come back and said, did the politicians do us a favor? the commoditye cycle turns around, i think the banks will be more upset. but congress and the regulators were worried about two things. they were worried about the market and these egg banks being both producers and traders in the market. they were also worried about safety and soundness. if one of the commodity operations had some kind of cataclysmic event, would it bring down the bank which would cause even more problems? was useful. policy >> right. they worried about commodities taking a dive, it could take a tumble. great piecere is a

out of hours uric bureau, it talks about the commodities producers out of zurich. difference between the way we approach commodities trading as regulating at the way that works in switzerland? a lot of it is whether you are a bank or not. of these have the physical mining and transportation, the banks used to be -- morgan stanley, they used to be a lot more physical. they used to have a lot more physical operations. it moved a lot more financial, a lot more futures trading. more financial, and in the last five years, the banks have made a push to get a little , but the fed and others saw that as a risk.

phibro is what became glencore. it is always a pleasure. thank you for illuminating that regulation works, sometimes. japan's prime minister delivers a speech to investors right here at bloomberg's world headquarters in new york. we give you details on his plan for abenomics 2.0. ♪

brendan: this is the bloomberg market day, i brendan greeley with pimm fox. a keynote speech to investors today, japan's prime minister vowed to put japan on the past to a robust economy. it is called abenomics 2.0. japan's slowing birthrate and growing economy -- aging population is also a problem. will face up to the very

-- our japanese demography. has anyfore administration spoken of a target in regard to demography. but i have. goal ofset our national over 100 population of million people to grow our birthrate. free ofmake education charge. we will give substantially more support to those mothers and fathers that bear many children.

more will follow. unprecedented female labor force has increased in numbers over the last three years. 900,000.han that femaleealed labor participation in japan now outnumbers that in the united states. -- is perhaps cookie womenbut not all japanese are born makers. a -- her own business

is so occupied that i wonder if she is even aware that i happen to be in new york. [laughter] i am, of course, joking. brendan: here is what i have learned, pros talk demography. there is a lot more work to do than what he talked about. they are willing to import labor. have a preschool proposal, not such a bad idea. brendan: i could use that right now. ♪

brendan: welcome back to the bloomberg market day. let's get a look at the stories making headlines at this hour.

joe biden is better than hillary clinton in head-to-head matchups .ith donald trump and jeb bush victim a political chest for house republicans. kevin mccarthy is vying to succeed john boehner and speaker . j banners has no date has been set for leadership elections. >> i have not decided when leadership elections will occur. i've asked for their input and i got a few pieces of advice i hope to make an announcement in the next day or two. brendan: mccarthys a californian. house leaders meet this evening. rig the priciest mission by

far at $309. the company hopes kold to revive drink pocket sales. america's neighbors to the north buying up manhattan. canadians bought we financially dollars in manhattan is your, twice as much as they spent last year. nextg up in theoint $5 half hour, cheap oil had a major implications all sorts of industries. virgin america is hoping to fly even higher. a new netflix partnership. whether it will boost business for the airline which just had its ipo last year. , and is the full agenda for president obama at the united nations. today, he led a summit on countering the islamic state and violent extra miss him.

he also met and shook hands with raul castro for the second time since the u.s. restored diplomatic relationsh with cuba. and iran'sbama foreign minister shook hands when they ran into one another on the sidelines of the u.n. general assembly. what is in a handshake? philll discuss with mattingly. let's start for you. how was a handshake received in iran? >> it is quite interesting, the state newswire here tried to play down. something that happened in moments, it was fleeting and it was not planned. it was not something that was planned by the foreign minister.

some have already criticized him and demanded an apology. there are other voices that are softer sing this is not a big deal. the media reaction here so far -- brendan: there were some real diplomatic movements in new york. thereading a quote from president of iran. we want to suggest a new and constructive way to re-create the national best international order. what is he putting on the table with that statement? >> it was quite clear that he to mark the beginning of a new era. . that is his attempt to bring cut back into the fold

saying iran has to be part of efforts to combat terrorism and growth devices in the region. whether that can be expected by counterparties in the west -- brendan: what kinds of cooperation beyond nuclear has the white house mooted with iran? president obama during his speech to the general assembly yesterday specifically pointing out iran when it came to trying to counter isis, counterterrorism altogether. it was not just in plight, he that iran is aed state that the u.s. has to work with. when it comes to diplomatic relations with iran which officially don't exist, the president and the current

administration are cognizant of the fact that they need to take this slowly. there's a lot of criticism, a lot of people in the united states and congress don't appreciate what they have done so far. it is a slow step-by-step process. one of the interesting things , into the handshake press to confirm that it occurred. iranian media reported at first and the white house is saying it was just a quick handshake, i find it hard to believe that's might does was not choreographed in some way. -- that it was not choreographed in some way. pimm: hardliners in iran are already asking for an apology. let's move on to the united states and russia. dueling speeches at the united

nations between barack obama and vladimir putin. what is iran's relationship with russia right now? >> iran has an port relationship with russia. -- important relationship with russia. russia has turned out to be quite an important ally for iran. russia released bring iran, that in iran against heavy opposition from the united states. russia's very interested in defense contracts. it is very important ally. the relationship is quite close and quite interesting and complicated at the same time. these developments, particularly come are very interesting. ,e see iran and russia fighting

at odds with many other countries in the region. brendan: help me take all of the u.n. weekend and wrap it up for me. what is the next step for all dust all emotions made run syria -- phil: the idea is the united states and the obama administration are sticking to the plan that they have a 60 plus country coalition that will be working together to counter the islamic state. that coalition has been together since the last u.n. generalissimo meeting for more than a year now. -- general assembly meeting. now,iggest take away right if you think about this, the day before the president's speech, the west was shocked when iraq's hade minister announced he

signed an intelligence sharing agreement with russia. when it comes to the islamic state, when it comes to dealing , what they were able to do over the last few days was start to get things out on the table. whether it was between iran and the united states or between vladimir putin and barack obama. haveof the roadblocks that been set up purely because people were not communicating started to come down. in terms of what this means on a longer-term level, no one has a solid answer to that. that underscores the problem that syria presents. there's a lot of different ideas but nobody thinks those ideas will have a major impact at that moment. communication is a start but long-term, no real answers right now. pimm: we've been looking at a -- samanthae u.n. power, lots of work to three of them have left to do. thank you.

ahead, looking at a swiss mining company, glenn court. shares rebounding. maybe it is an ironing it bounce after that last selloff. ♪

brendan: welcome back to the bloomberg market day. we will get into this we will go straight to david with the stories of the marketplace of our. >> we are having a bit of movement. nothing like we saw yesterday with that route. we can see apple fall precipitously a few moments ago. maybe it hasn't to do with google releasing its latest

phone -- has something to do with google releasing its latest phone. a heat map here comes something my colleague lutz. -- my colleague loves. this quarter we are in right now , the worst quarter since 2011. not very auspicious there. let's look at the rty index. lower for the eighth straight day, headed for its longest slump since 2006. hillary sen clinton sent this tweet and biotech has been on a wild ride since then. it was bears come in a positive. we are singing down for a second day. -- we are seeing it down for a second day. brendan: glencore shares on the

comeback trail, kind of. the biggest intraday rally ever since the last decline. joining me is joe weisenthal, the cohost of what did you miss. i will read a quote from glencore. our business remains operationally and financially robust. that's only something you say when that is not true. joe: it's one of those things you never have to say. what is interesting about is the extent to which it seems like the entire market was fixating on this. as if it were the start of something bigger. setting the tone for everything. i don't know if that's true. people can tell all kinds of stories. the focus on this one company, its role in the commodities has grabbed a lot of attention. look at thecan

terminal at the stories people are looking at. they all involved glencore. is this a trading opportunity? the other thing is not just that it's doing badly, but the pace of the decline had that death spiral look. it looks like one of those things that is a terminal spiral. brendan: what do you make of the bounceback today? --that the r joe: it is so tiny in the grand scheme of things pretty even if it was 17%, that is nothing. moment, people are talking, maybe some value here, maybe the panic is overdone.

you cannot take too much with us yet. brendan: are we looking at this in the same way we are looking at the entire country of australia and malaysia? glencore, the entire economy was a china that. --: and a livered china that evered china bet. joe: let's look at consumer confidence. matt listed all the amazing things going on in the american economy right now. joe: i don't think we are immune. you have to be impressed with the extent to which the consumer is holding up fine. there's a lot of tailwinds for the american economy. housing is one. i saw a chart yesterday showing how the american consumer dust canceling out all

the negative stuff in the world. i don't think you would ever want to say the u.s. is immune, but you have to like our chances at this point. brendan: you look at the consumer confidence numbers, that says to me that people are not anxiously tapping away at the terminal. joe: that's right. beyond that, one of the stories of the bull market was that mainstream to not participate. perhaps the silver lining is that when the market goes down, people will not feel it as much. brendan: joe weisenthal telling us everything will be fine here and for glencore. bank of america cutting more than 100 jobs in his trading division. brian moynihan said in the third-quarter revenue from trading declined about 5%. wall street firms have been cutting jobs as.

sally is starting a digital investing platform focused on women. she has big-name backers for venture. el-erian., mohamed lettingill start marketers target specific people using their e-mail addresses. google will get those addresses when people use the company's search engine, gmail or youtube. facebook is offered similar data for years. christmas is 90 days away. l.l. bean is facing the same predicament as the previous holiday season. already on back order. the main shoemaker short of its operating -- it is happening again. they did not clear last year's holiday backlog until july. that is terrible news.

coming up, cheap oil, slow growth in china, just what is industrial biotech company to do? ♪

brendan: welcome back to the bloomberg market day. it is cloudy over new york. a lot going on in the markets. cheap oil and a slowdown in china causing quite a p waves. few ways. -- novozymes makes enzymes used in the chemical process to make

biofuels and other household products. andat down with the ceo asking how the china slowdown is impacting his company. the'm concerned about disruptions that the slowdown make it china -- may give china. projecting 7% growth every year. , butnot really a slowdown there's a lot of things happening in china that is changing the chinese society right now. i'm always a bit concerned when things are changing because the transparency is not fantastic in china, so you don't know what's coming. it feels ok. butet's talk about biofuels through the lens of falling oil. oil is $45 a barrel. the lowest since june when it was $60 a barrel. how has impacted the biofuel market? >> the american biofuel

comemers that we have actually makes money. fun than it was the year ago, but they still make money. oil prices have come down. prices fortime, the the material have gone through imports because china -- what used to be fuel in the -- cap ethanol as a byproduct. >> a lot of big oil companies -- what are the thatprogressive companies are saying we recognize the

future reality and we are doing something to help it? on theones we see biofuel site are companies like brazil, someras in of the chinese oil companies. there are examples of oil companies with a wider view of supplying fuels. put any of them in this chair, they would say they have activities in that space. that is probably true. thinkingme time, the they have is one of slow progression towards renewables. the world cannot wait for that. we need to work faster. politicians to make sure that there's access to market because the oil companies totally own access to the consumers. >> i want to talk about share

prices. in the past month or so, novozymes's share price has fallen by 19% or so. what are you trying to do to bring that back up? was a trigger for this result from the second quarter that was not as good as we hope for. drivers for the weaker second quarter result will drag into the rest of 2015 and beginning of 2016. there's some weakness in our business right now related to biofuels in the u.s. because of the reasons we talked about just before and some of our household care markets. is a short-term issue. novozymes trades at a high multiple. when you trade at a high

multiple comments because people we can continue to organically grow our business. we invest a lot in research and develop an, spent about 40% of our revenues on r&d. this is an engine that continues to innovate. therefore continues to grow organically. brendan: that was our interview with novozymes's ceo. no matter what we look at this week, the story in the background is china. collapsing demand from china. we've been talking about glencore all day. a commodities that is a china that. bet is a china bet. when we talk about brazil, what we're really talking about is an economy that used to sell things to china.

that demand collapses, all the problems that brazil has with governance, with taxes, they come to the forefront because you cannot keep priming the pump by selling things to china. we will take a look at the top stories this hour. google holding his event in san francisco and just announced chrome cast audio. he played for apple which has made a huge play into the audio space. that is a look at the top story this hour. coming up, more on glencore. we will look at the financial health of the company. ♪ ♪

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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. brendan: it is 10:00 a.m. in san francisco, 1:00 p.m. in new york . mark: this is the bloomberg market day. the global route in stocks takes a breather.

is rising u.s. consumer confidence enough to offset the slowdown in china? brendan: glencore rallies its most ever. they insist there's no open sea -- no solvency issues. joe: carl icahn makes a plea for tax reform. why he calls the carried interest discount ridiculous. mark: good day from bloomberg world headquarters in new york. brendan: we will get straight to julie hyman to take a look the markets. julie: not a whole lot when you look at the direction in the major averages. we had gyrations going on today. that is continuing at this hour. not a lot of conviction being held after yesterday's big selling session.

we've been bouncing between gains and losses throughout the day. right now, all three major averages in the red. that has not been the case consistently as the day has gone on. brendan: should i get pessimistic? julie: it depends. a lot of strategists are getting pessimistic. goldman sachs cutting the year-end forecast for the s&p 500 to 2000. we've already had the s&p fullback this year by about 8% or so. back this year by about 8% or so. the pullback in energy earnings, the chinese economy, a decision in washington mother federal reserve.- the federal can accord yesterday, cutting their forecasts. they had been pretty bullish.

we have been index that tracks the average s&p 500 forecast from strategists. the average of these folks is still 2175. -- it wasl well above still require a relatively substantial rally before year end. the price-to-earnings ratio, he is looking at multiples. following fed liftoff hikes in , with all and 2004 price-to-earnings multiples falling and stocks falling as well. this is a tenure chart of the s&p 500 versus the price of the index. we are seeing a topping out in the pe multiples, they will come back down when we finally get the fed raising rates. brendan: thanks, julie.

an amazing chart. prediction versus reality, the constant triumph of hope over reason. a beautiful chart. mark: you are way too optimistic. brendan: it has been a brutal year or glencore. they lost $50 million market value, the stock hammered on concern the company has too much debt to overcome commodity declines. mark: glencore is higher after business -- after they said business remains robust. craig,th perspective is a finance professor at the university of houston. thank you so much for your time. is the prescription to take this copy private? craig: what a realistic option for them. to take the company private, keep the training are private and spin out the mining operation. brendan: glencore said today we

remain robust. you never want to hear something that. done so far gotten them any farther towards security? craig: they tried all the things you should do. cut the dividend, announced other measures to cut debt. the company's stock price has been down very hard. it is hard to see what additional moves they have available to them other than taking the company private. mark: does this turned the whole conversation on its head? that conversation about commodity traders into big to fail -- >> commodity trading firms can fail. are doesn't mean they systemically important and that

glencore would have broader implications for the economy like we saw in 2008 lehman brothers. brendan: i want to talk macroeconomics -- did glencore ore a bad bet on china the way they restructured their finances? company, theyg were relatively highly leveraged. they were also very exposed to copper and gold prices. theinteraction between dramatic decline in those commodity prices and their financial structure has put them in the situation they are in today. mark: glencore said they remain confident the fundamentals of the commodities remain strong into the future. given the slowdown we are seeing

in china, given what we are seeing what we've seen in the that wishfuls thinking? >> it is, yes. all indications are that china slowing, there is no medium prospect for a rebound. commodity prices are being driven by china. it depends on what the medium to long term would be. the question is whether glencore will have the wherewithal to wait for that time to come. brendan: compare the cratering of demand in 2008 to what's happening now. glencore survived then. what is different now? craig: it is a very different company. back then, it has a mining operations but it was more of a pure trader. pure trading company's are less tolerable to changes in the commodity prices. vulnerable to changes in

the commodity prices. a lot of the will trading firms were not vulnerable because they did not have exposure. glencore has transformed into a company that is basically a mining company with a big trading arm. to, it's much more exposed broader commodity market prices and that's why it's in the situation it's in. mark: given what happened to the stock price, how did they convince investors they can turn this thing around? >> it is very challenging. somewhat encouraging that the statements they made today had a calming effect on the market. they are a hostage to things outside of their control. the price of coal, the price of copper. listcan talk to their until they are blue in the face

comment the markets move against them, they are in trouble. goldman considering what glencore did. they were held back by congress. did we get lucky? did we catch a regulatory break? >> that is quite possible. whether that would have been a bet by goldman to present a financial challenge to the company in the current environment, that is hard to say. they are better off now having not been that. -- having not done that. brendan: we will take a look at the top stories now. anheuser-busch lighting up next to arrange as much as $70 million to finance the takeover proposal for miller. bank of america submitting financial proposals -- they're working with 10 banks to raise

$70 billion. a game of political chess for house republicans. kevin mccarthy vying to succeed john boehner as speaker. he is trying to assure members that he can bring them together. conservatives have other ideas. house lawmakers are meeting this evening to discuss the path forward. the senate is set to pass a stopgap spending bill. a demand have rejected to defund planned parenthood. the bill would finance government spotting this spending through december 11. mark: japanese equities have wiped out their 2015 gains. investors taking profits from a wobbly recovery. shinzo abe says he sees his policies as the right course for japan. speaking today, the prime minister said public confidence is a building block of his plan.

we must leter abe: the governance system make a difference. that we areou now going to build a new system whereby ceo's and other board transparentld be with their records and holdings. isk: japan's population aging and shrinking, threatening the country status as the world's third-largest economy. limited supply and increasing prices in 20 u.s. cities rose 5% in july from the year before. that is slightly less than the median estimate. prices were up the most in san francisco and denver.

edward snowden has joined twitter. reads "i used to work for the government. now, i work for the public." the only twitter account he is following is nsa.gov. wanted by the west for leaking classified information in 2013. he has temporary asylum in russia. hour, up in the next half netflix is now boarding on virgin america flights. the company has teamed up with others to offer free wi-fi to netflix subscribers on some flights. ceo of thek to the airline. brendan: canadians coming to manhattan. they have bought a record number of properties in new york city.

we will tell you why. mark: carl icahn has harsh words when it comes to wall street ethics. he has strong opinions about taxes. we will get his thoughts later in the hour. ♪

mark: julie hyman taking a closer look at the technology sector. julie: that is the lagging sector. the nasdaq is the laggards. the various sectors and the sector breakdown here. the biggest sector in the greenwood b health care. -- in the green would be health care. information technology losing

.25%. the train in shares of apple and google -- this is a chart of apple in white, google in the gold color and facebook in the green. google is giving his latest update on its newest phones, newest net's is phones and an update to its chrome cast video streaming service. xus phones.et all of them taking a substantially down around midday. we just noticed that tech fell out of bed at that point in time. we will keep you updated. yahoo! has been moving higher throughout the session. the company said it is on schedule with its spinoff of alibaba shares. this of uncertainty about

ending a potential irs ruling on whether that spinoff can be tax-free. will get done before the end of the air but has not given any details as to exactly how it will get on. that is helping the shares today down by 30%. it is just a valuation call. the stock is down -- the analysts at wells fargo cutting earnings estimates. he does not think pricing will improve for the memory chip that micron makes. julie hyman, thank you. brendan: let's check in on the markets in asia. glencore is rebounding to date, but losses in london and new york spark a selloff in the region.

>> the glencore gloom developed an asian markets tuesday. shares slumping to a record low in the hon hong kong. shares plunged 7%, the biggest one-day drop since the heart of the global financial crisis. -- the selloff in glencore was not just contains two mining players. the hang seng index on track for its biggest quarterly loss since 1990. -- since 1998. brendan: axel springer has bought a majority share in business insider. machineebuting its soda with coca-cola.

it is $369. the company hopes to revive kcup drink sales. opro -- investor concerns about competition from apple and other companies have weighed heavily on the stock. next, virgin america, talking about wi-fi. they hope the new netflix partnership -- mark: a simulcast, next. ♪

brendan: welcome back to the bloomberg market day. brendan: virgin america announcing a new partnership with netflix today. the deal will allow travelers to

connect to wi-fi for free to watch netflix programs. mark: virgin america shares down about 9% this year. let's join cory johnson and carol master standing by with our simulcast. >> we will talk with the virgin america ceo. he joins us now on the phone and san francisco. great to have you here with on bloombergelf radio and welcome all our viewers on bloomberg television as well. talk to us about this link up with netflix. today -- it up here has taken advantage of the new wi-fi system that we have put on board all of our aircraft. it offers streaming capabilities. everything you can get on the ground he will now be able to get in the air.

opportunity ton team up with netflix to allow passengers on virgin america flights to stream netflix for free. hopefully subscribe if they have not already. your planesn all of or just the new planes you guys are adding? >> it is initially on the new aircraft. we have them on a couple aircraft now. about one per month. we have plans to upgrade the current fleet. it is new technology. it is working extremely well. y: having flown yesterday, o, theartnership with gog connection speeds are not good. people are getting kicked off. it,here's no doubt about the requirements as far as bandwidth have increased quite a

bit. if you think about the first system from 2009, that offered about three megabytes per aircraft. increasedt system that by five or six times but even that is not enough now. we see this as the next step in the evolution of wi-fi aboard aircraft and we know our passengers needed. >> talk to us about the evolution of what customers are expecting now when they get on an airplane. in saw the industry cut back terms of services and now they are starting to get back more and more. >> absolutely. that has been one of the benefits of consolidation. , but are some negatives one of the benefits is the airlines are more profitable now , they're able to buy new aircraft and invest in the aircraft they have. people's expectations are they want wi-fi, with us, you get it

every flight. .hey want to main attainment -- some entertainment. unthinking brendan greeley in mark crumpton -- i'm thinking brendan greeley and mark crumpton are wondering what the economic environment is or for airlines. when we look at total industry demand, we are seeing what everyone else is. , reasonable amount of demand but not being mustered demand. we are seeing industry revenue growing at 3%. nothing to be tremendously concerned about. every at which airlines can be profitable given energy prices. not as robust as we've been expecting earlier in the year.

>> topline growth of 15% on a year-over-year basis. one of the key drivers for you going forward? do you think these services will let you charge more for your airfare? >> we do and that's why we're making the investment. if you look at our route by route performance first the slightlys, we have a higher average and it comes down to the quality of the product. guys.sus the other >> in terms of energy prices, do you anticipate they will stay low? >> we are not experts in that field. marginal supply is controlled by the u.s. now. there marginal costs for drilling are pretty low. my expectation is that we are in a moderate environment for the next several years.

cush joining us from san francisco. you are on a virgin america flight when you can watch house of cards. >> i thought you had to read a book. you had no other choice. i do not believe you should have wi-fi on a plane. i'm signing off with that. it's my opinion. mark: thank you so much coming what carl icahn is saying about wall street today. much of it is not good. ♪ 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 the bloomberg market day. let's go straight to your top headlines. john kerry this crime to between president obama and vladimir putin as very candid --

described the meeting between president obama and vladimir putin as very candid. there are areas of agreement. >> the agreement is fundamentally that isis is a threat to everybody and we need to come together to find a way to fight isis. we want to keep syria unified and secular. mark: both leaders are looking for a way forward because syria is at stake. a new poll may give hope to those who want vice president biden to run for president. he does better than hillary clinton in head-to-head matchups with donald trump and jeb bush. still, mrs. clinton is the first choice of democratic voters to be can nominate. nominate. there -- to be their nominee.

jack warner is fighting that he is one of 14 men facing federal corruption charges here in the u.s. swiss authorities are investigating sepp blatter. the supervisory board upholds wagon -- volkswagen's porsche brand is looking for a new ceo. a new forecast from goldman sachs expects the s&p 500 to finish in the red this year. u.s. equityief strategist lowered his year-end price target for the index from 2100 to 2000, 6% higher than where the s&p started the day. it would represent the first decline for the index since 2011. its eventt wrapped up

in san francisco. the tech giant debuted two new n smartphones and an upgraded version of chrome cast. today is national coffee date. you can celebrate by grabbing freebies from dunkin' donuts, krispy kreme and even aboard jetblue flights. next half hour, carl icahn speaks out against wall street ethics and weighs in on what the fed's next move should be. congress moves closer to avoiding a government shutdown. phil mattingly will have the latest. many investors are concerned about the recent market volatility. short sellers have been having a field day. .hey profit when stocks fall shorts had their best day for

years with the s&p 500 plummeting 2.5% yesterday. oliver has been covering this story in joins me now. i said perfect timing for the movie the big short. oliver: two things important to the story. maybe they got excited about the trailer and decided this if you look at short interest across the benchmark, the average that theystocks borrow from is roughly 3%. jump in lateig july. it seems like a lot of these guys did target market right. this is a somewhat ambiguous chart. the blue is the s&p. the orange below is looking at the average short interest on stocks across the s&p 500.

across the past couple of weeks, it shot up quite a bit. it has not come down. look back at previous dips, you will see a bit of a peak in the short interest -- shortly after the low, you see a lot of covering on the short. investorst seen saying i'm comfortable with this bottom, i will buy in now. that is the start of a recovery rally. we have not had that. that has failed to put a floor under any selling. mark: to what degree are institutional investors driving this selling? oliver: quite a bit. there are a lot of hedge funds getting hit pretty hard that were in biotech. you have to consider the fact that they are driving a lot of the shortselling.

they will have long positions in as you see the- global growth concerns elevate shortageyou saw the get high. the hedge funds are largely part of that. if you look at the most shorted hedge fund stocks, the goldman -- the biggest drop for the index. mark: talk to us about the individual stocks. oliver: the big ones, there are some names in the industrial space. a lot of biotech's getting h it of it. a lot of people were calling the industry, the energy industry a while back. they were able to get on that

commodity play and that's where a lot of the shorting is writing out. they are making profits on that. maybe i don't think will will bounce back up and they're getting a boost. do point out it is rare good news for professional speculators. >> these guys have not had a good ride since 2009. except for 2011, if you were short the market -- we saw the same index of stocks, those guys have not done well. a nice reprieve from them. whether it lasts, i'm not sure. this is a nice change. a lot of these people are hedges as well. who knows what's happening in the rest of their portfolio. mark: can we glean anything from what happened about whether or not this will start a trend? >> there has not been any drawdown in the shorting in

stocks. the fact that it remains high after the selling is interesting. iner a 12% drop, no one ran and said i will buy up. they still think there is potential downside. article, title of the u.s. picks plummet 5%. thank you. as bloomberg market day continues, a northern incursion. canadians are the biggest buyers of real estate in manhattan this decade. ♪

mark: let's get straight to a check of the markets. julie hyman is standing by. good afternoon. julie: let's take a look at where the major averages stand because there has been change moment by moment today. we are up again. it has been changing quite a bit today between positive and negative. this is a measure of volume among the various sectors. one of these bars is much larger than the others. that is health care. health care volume today up 69% versus the 20 day average. that includes a steep drop for many health care shares. take a look at the mbi index today.- nbi index eeing swings.

biotech's selling off sharply following the trigger from hillary clinton. the nasdaq biotech index has been fluctuating. 1.5% now. we've been seeing some gyration and the russell 2000. it will have its eighth straight decline. in the third quarter, it fell -- it is heavily weighted towards those biotech stocks. with the stocks on shaky grounds today, with going on with treasuries? julie: traders looking for safety here. we are seeing people buying treasuries, buying the tenure -- 10 year, pushing the yield

lower. ofextraordinary option four-week bills today. a coupon of 0%, paying nothing to the people willing to lend their money to the u.s. government. ,his is a measure of the man over 10.7. we had this big jump in demand from indirect bidders. entities like foreign central banks at 43%. when we say that it to cover is 10.7, there were 10.7 bits for everyone that was accepted. an enormous amount of demand. people are not getting any interest on this money. mark: julie hyman, thank you. let's take a look at the european market close. mark barton has details from london. cuttingropean stocks

capital losses. --cutting have to losses half the losses. the biggest quarterly drop since 2008, falling by 31%. below inflation went negative -- it sets us up nicely for tomorrow's euro area inflation report which could stagnate. will that mean more qe from the ecb? confidence rose in september. industrial sectors improving. that was the data that matter today. this is the stock that matter today. decline, glennr glencore. by company was backed

several analysts today. has no solvency issues. for glencore shares? -- bernsteinlysts is the most bullish. 12.5%, the biggest drop in six years for u.k. building materials company. in forecast north american materials will be challenging and u.k. heating industry will be competitive. europe's second-biggest maker of car parts, goldman sachs adding the stock to his conviction by oft saying is a beneficiary the focus on emission standards after the vw scandal. i want to draw on this chart.

stoxx 600 nearly went into a bear market from the highs earlier this year in april. at one stage, it was 19.5% below that level. it did callback most of those losses. at theet's take a look top stories. amazon wants to be part of detroit economic rebirth. the company plans to create a technology hub in the city. amazon already has hundreds of workers across michigan. it unveiled a new corporate office in detroit yesterday. the city is emerging from the biggest municipal bankruptcy ever. yahoo! on track to spin off its stake in elliott avent this year. investors have been concerned about the big taxes yahoo! could take from the transaction. -- its stake in alibaba this year.

that's a look at the top stories at this hour. america's neighbors to the north invading manhattan. the median's have bought a record 3.9 billion in property in manhattan this year. twice as much as they spent last year. best canadians have bought a record 3.9 billion. >> i was surprised that it was canada. thought the chinese, the russians, a wealthy middle eastern country. here.is a catch we are talking about property investors, institutional investors. pension funds, insurance companies, asset managers, these guys have a lot of money that needs to be put to work. they are looking for someplace stable. manhattan is that candidate. mark: real estate is really expensive here. we are talking about a lot of money. >> they have a lot of money to work with.

, it it comes to manhattan is a global super city. the rules don't apply to manhattan or london or hong kong the way they do to other cities. there's always somebody who wants to buy an asset here in new york. it has become its own safe haven and the prices match that. mark: even with the competition for space? >> they are buying big, big stakes. the headquarters of 20% three fox, the hudson yards. isokfield asset management of biggest single buyer manhattan real estate, purchasing $5.3 billion worth of property. people seem to think it is liquid. there is not the man from foreign buyers. -- there is enough demand from foreign buyers. onk: we have the story

bloomberg.com. said this is the most competitive market in the country, attracting phenomenal sources of capital both foreign and domestic. when i saw this, i said, the canadians? >> they are self buyers anyway. next hour, john karl will be joining us. we have the un's general essentially meeting taking place right now. assembly meeting taking place right now. mark: i will see you in a few. still ahead, the world according to carl icahn. he unleashes on wall street. stephanie ruhle joins me to talk about what else mr. icon is saying about those in the c-

suite and even donald trump. ♪

mark: welcome back to the bloomberg market day. does not have much good to say about wall street. he posted a video in which he endorses donald trump for president. he uses it to attack ethics on wall street. >> wall street does what wall street does best, sell securities. i used to laugh at these guys that sell these bonds. the mafia has a better code of ethics than you guys. -- you arelling this shorting some of this. that is what is going on. in stephaniering ruhle who had a chance to talk with carl icahn. stephanie: all day long. mark: he says everybody is to

blame, but he is not to blame. stephanie: lots of reasons he likes donald trump. they love to talk turkey. so many people out there criticize activists. willactivist investors push ceos to make irresponsible says hes -- carl icahn is looking for good management, good governance. look at the way companies report earnings. they do the dance with the analysts and the expectations and, look, we outperformed. he says stop with this dance, this charade. time to get clean. mark: is carl icahn speaking for the common man? stephanie: he would make the argument he is the common man. he grew up on the streets of queens, and honest guy. he thinks the way wall street conducts itself companies to

have smart regulation. for wall street is a we are doing the right thing he says give me a break. unsophisticated investors into the leveraged finance market where they cannot get out and wall street is a joke if they think selling as ayield bonds responsible decision. rates?should they raise it's almost a rhetorical question. there are so many reasons. are building bubbles, real estate bubbles, bubbles in the oil market. in henie: he is still rbalife. look at these warning signs. leaving the race, there are --ependent consequences that

unintended consequences. he looks good. bubbles?he afraid of stephanie: he is not afraid of anything. he says peyton attention. whether you are talking about government or central bank intervention, it is blocking free markets. pay attention. take the training wheels off, let's go. that carl icahn isn't saying he will back donald trump. why? stephanie: he feels like donald trump knows how to get business done. he has dealt with unions, dealt with other business people. he is not afraid to say we need he's notterest -- afraid to say that people on unemployment need to get off. you need the system to be fixed.

i know what donald trump stands for. you can't not make the argument -- the guy knows how to win people over. he won america over. they think he is a business icon. he's not as big as this guy or that guy -- he says he is the best choice. is this a new carl icahn? not necessarily. he says i had these feelings for years and years. now, i want to make it known. mark: i don't remember hearing him bash wall street. stephanie: he says look in the mirror. let's be honest about who you are. some people think he is a hypocrite. -- au behave like emily bully? i'm ringing a warning bell. watch out, guys. look at these great pictures of

carl i've never seen him look so it. thank you so much. hour, up in the next half trying to over a government shutdown. the president of planned parenthood testify on capitol hill. we will bring you the latest. a look at wall street on this tuesday. julie hyman was talking to us about it earlier today. we are all in the green. the s&p 500 up .3%. dow jones also up .3%. nasdaq up .1%. bloomberg market day continues in just a moment. ♪

mark: it is 11 a.m. and san francisco. glencore making a

comeback. a china-led slowdown. mark: consumer confidence arises . is there more volatility ahead? the italian prime minister says must be solvedis and russia must be part of the solution. the exclusive interview is coming up. ♪ mark: good day from bloomberg world headquarters. >> we want to check in with a look at the equity market. the five-day so love has come to an end? quick todn't be too say that. it has switched to so many times today