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 that i don't think we can

make any conclusions until the close of trade. averages are up right now. volatility inmuch a single session. health care as the best-performing sector. that has been consistent today after the open. biotechnologies have made a dip and come back. down 1/10 of 1%. s&pe take a look at the technology index, you get an idea of what is going on. i think we have crossed above and below this line half a dozen times today. we had all of this bouncing around going on. seem to benot fundamental news driving it, perhaps the lack of it. not a lot of conviction either

way. >> in terms of the quarter, it has been an ugly quarter for anyone long. give us the scorecard. >> take a look at my bloomberg terminal, quarterly performance now downp 500, right 8.5% on the quarter. the worst quarter since the third quarter of 2011, a 14% drop in the s&p 500, so all the selling we experienced in august where it was concentrated, that is the end result, 8.5% pullback. that's what we've seen on the s&p 500 for the year as well. performance, a huge its best quarter since the third quarter of 2011. volatility is back, selling his back, and even within a session

difficult to predict. >> thank you so much. market checks every 20 minutes. >> the president of planned parenthood was on capitol hill testifying before the oversight committee. the deposition was part of the ongoing investigation into the health services organization. >> there has been a great deal of misinformation circulated, and i want to be clear at the outset, the federal funding that planned parenthood receives allows our doctors and clinicians at our health centers to provide birth control, cancer screenings, and testing and treatment for stds. while the federal policy discriminates against low income funds pay forral abortion services at planned parenthood or anywhere else, except in limited circumstances

allowed by law. mark: our colleague joins us from washington. give us a little bit more insight into this testimony and what it might mean for the survival of planned parenthood. >> the testimony today and a large full-scale operation in support are a necessity at this point to make sure the organization continues federal funding in the months ahead. it appears that planned parenthood has been taken off the table for the moment. people thought it would lead to an eventual shutdown, but what has happened is that the group awayf has turned the tide from the outrage that these undercover videos about the ,elling of fetal tissue caused getting democrats to rally to the organization, receiving $450 million in federal funding a

year, republicans of trying to strip that funding away. unified behind her, hillary clinton, white more, so we're seeing emphasis on that defense, trying to make sure the organization is completely protected with respect of funding. >> today the senate passed a bill to keep the government open and tell december. they did not have a provision 2-d define planned parenthood, angering conservatives. what's next? >> one more vote this afternoon. the key dynamic shift is that john boehner decided to retire. that allowed him to commit houston democrats that he would need and use their votes when the house kosovo on a clean funding resolution as well. house republicans with a big problem with respect to planned parenthood, saying they would not agree with any spending continued that

funding the organization. that is now off the table. the senate will pass the final bill this afternoon. the house will move on it tomorrow. no shutdown in the near term, but whoever replaces john looks like kevin mccarthy, will be facing another shutdown issue in december, and planned parenthood according to conservatives will almost certainly come back up again then. mark: at this point, i assume the white house's position to shut down the federal government ."e, "go ahead to g >> democrats think this is a winning issue for them. even though republicans did well in the midterms, it was extremely damaging during the 17-date shutdown.

republicans were blamed more than democrats. at this point, they will be blamed again. only do youd, not have government funding that needs to be taken care of in december, you also have an increase of the debt ceiling. the administration has said it will not negotiate on how to increase the debt ceiling. there needs to be a clean increase. there is a lot of concern in both parties that the republican party will never agree to that. the faulting on u.s. debt is another problem. that is the main concern of the white house. politically, when it comes to a shutdown, the white house always think they are on the right side of this debate. >> you did mention planned parenthood being a winning issue for democrats, what have the candidates said about the threat to defund. >> when it comes to the organization specifically, the evolution. you did videos cannot,

not hear a lot from democrats. again, it is against the law to these body parts for research purposes, and these videos made it sound my that this is what planned parenthood is doing. what has happened, is the organization has done behind-the-seen briefings. been the 2016 candidates, most notably the mcclendon, martin o'malley, and bernie sanders, putting out strong statements of support. this has become a fight about rights, according to democrats, and that is a grounded they are always willing to fight on. >> thank you. mark: let's take a look at other top stories. prices keep rising

thanks to limited supply and increasing demand. prices in 20 u.s. cities rose 5% in july. that is slightly less than the estimate. most inces were up the san francisco and denver, gaining more than 10%. >> big transaction and the tobacco industry. reynolds american has agreed to sell its. cigarette group -- spirit cigarette group to japan tobacco. japan tobacco has been buying brands to offset a stagnating smoking rates at home. urgingy's prime minister leaders to bring russia back from the cold. he says that russia has a critical role to play in solving world conflicts. >> russia is a great country with a great history and a great future. russia a future without

can mistake, and i think we invite russia to respect the rules in ukraine. minsk, everyone , maybespect the protocol refugees are a part, russia is part of the solution. >> he did it stop short of saying it is time to roll back sanctions. >> bank of america cutting more than 100 jobs in trading and banking divisions. the ceo says the third-quarter revenue from trading a declined 5% as fixed income markets are dragged down results. wall street firms have been cutting jobs unmade a multi-your slowdown. >> amazon wants to be a part of detroit's rebirth.

says theyan governor plan to create a technology hub in the city. amazon has hundreds of workers across michigan. it unveiled a new corporate office in detroit yesterday. it is emerging from the biggest municipal bankruptcy ever. those are your top stories. mark: a surprise today from the royal bank of india as it cuts rates more than expected. now the indian prime minister's turn to act. investors are souring on saudi arabia. all that and more, coming up on bloomberg market day. ♪

mark: welcome back to bloomberg market day. we want to check in

again with a look at the markets. micro, notablee movers. >> casinos are selling off for a second straight day, particular , ase with business in macau junket operators said that business is so bad that it might not continue operating in the gaming industry if the industry does not correct itself. the chinese government has clamped down on corruption. a lot of concern about what this means for the companies that operate there. also watching the volatility everywhere, particularly in technology. apple shares took an unexplained leg downwards. some speculation that it had to do with google, presenting its next generation of phones. other updates to comcast, streaming service, so google

shares are also down. apple off by 2%. a big introduction for from ld beverages system green mountain coffee. it is competing with soda stream. green mountain shares are down forecast fortting its beverage pods. bank of america, the company is cutting dozens of jobs across trading and banking divisions. the ceo, brian moynahan, pledging to trim expenses.

it has been seeing a drop in trading revenue, off by 1%. scarlet: thank you so much. bank india's central lowered benchmark repurchase great to 6.75%. the bank was expected to cut rates, but all economists surveyed our bloomberg predicted a quarter-point move. the were surprised when bank governor made the biggest/since the 2009 recession. scarlet: we caught up with the central banker at the annual economic symposium in jackson hole, wyoming, where he hinted a need for more growth. timewould say we are in a of growth that would be better if we grew faster. i would also say that central banks are putting much done what they could do. it's not of you universally held by central bankers, but i think in general across the world

central banks have done pretty much what they are capable of. now others have to step up. scarlet: brendan joins us now. when you spoke to him last month , were you surprised with how big a move it was today? i was. he was trained at the university of chicago come very well respected economist, went home to get inflation under control. his target ray is 6%. our target greatest 2%. he has done a credible job of getting it down there. when you apply what he says specifically to india, he has had a problem getting his actual cuts in the repurchase rates the reserve bank of india has to be transmitted into the economy. cuts, onlyoints in 30 basis points that the bank has dropped the rates, so a transmission issue. h the ball this pus

into the prime minister's court? >> he has to take a look at the state lending schemes. you can put money away and earn wanto that is good, you small savings earning a return, but it is an issue because it it effects monetary policy. with india, monetary policy can only do so much. india desperately needs tax reform, structural reform, all of the things so much more difficult. scarlet: you also spoke with someone in the corporate world, a senior bank executive here it when did you learn? the chairwoman of the state bank of india, the oldest bank of india. we talk with her about his reputation, not just inflation, but expectations. take a listen. >> i would think that it is

having clearly started out as an inflation warrior, he would like to ensure that inflation is put down once and for all. it is correct in saying that inflation is a tax on everybody. if you want to begin a virtuous cycle of growth, you have to comprehensively address inflation. >> in some ways, india it is an exception, inflation. they don't strip out food and because they import feel and it is a huge part of inflation. food is such a huge part of their consumption basket, that they leave it in. the psychological expectations have not been broken. people watch the price of onions after the monsoon. the currency has fallen this year along with other emerging markets, but because of commodities, it is benefiting as well. it is it part of the thinking of

reserve bank officials? little bit of room that he did not anticipate at the beginning of the year that he would have. hit nearly asn hard as all other equity industries all over asia, china, because india does not sell things to china. this is crucial. this is what i makes it special. scarlet: thank you so much for that primer on indian economics. mark: stay with us. bloomberg market day continues in just a moment. ♪

mark: welcome back to bloomberg market day, now taking a look at top stories. one of soccer's most influential powerbrokers banned for life. many and various ask of misconduct. jack warner is fighting

extradition to the united states, 14 men facing federal corruption charges in the united states. swiss authorities are investigating sepp blatter. model packs suv's tonight, i hope profile event -- a high-profile event marking its unveiling. it competes with porsche, bmw, and audi. arranginguser-busch 70 billion in financing as it prepares takeover. bloomberg news reporting bank of america and deutsche bank has submitted financial proposals for the world's biggest brewer. they are working with 10 banks to arrange total financing of $50 billion to $70 million. those are your top stories. scarlet: i want to bring in duncan fox from london. this is not yet a done deal.

layout force the points of attraction. why would it want to take over miller? geographic split is complementary if you take out the united states, which the combine business would have to asia,then they got 80% of latin america, or africa. latin america and africa would be a attractive for growth and consumption. africa, they have no presence at all currently. it makes perfect sense. mark: we are talking about a decade of consolidation. >> that is correct. they both have been very aggressive in doing deals, but if you go back 20 years, it was a very local business. ironically, it is still a local

business. business has been good buying local brands. scarlet: talk about timing. the u.k. has pacific takeover rules. the companies are lining up their financing from bankers. what is the timeline. by 5:00 p.m. u.k. tine on the fifth of october, they have to make the deal public or pull out, or it can get an extension, so i guess if the talks are going well, time to put all the details together, they can extend the timeline. mark: we have about 30 seconds left. any snags or regulatory hurdles they could pose a problem? >> many of them. not least china. that china is the most

interesting. global leader, a and china will be the biggest growth market for the next decade. between them, over 30% of the volume. the market up into premium mass-market and local geographies, but that is where the real regulatory issues will lie. mark: thanks. scarlet: more coming up on bloomberg markets. we'll take a look at what the united states is doing to reverse isis progress. carlin is next. ♪

scarlet: this is bloomberg market day. . am scarlet fu a new poll give hope for those

who want joe biden hope. better thanes hillary clinton in head-to-head matchups. clinton is the first choice of democratic voters over biden and bernie sanders. mark: goldman sachs expects the s&p 500 to finish in the red this year. chief strategist lowered year -and price target from 2102 2000, 6% higher, but would represent the first decline for the index since 2011. president obama pledged to use military, intelligence, and economics to defeat isis, but the president acknowledged int they have taken root syria and iraq and continue to expand, this as the refugee crisis becomes more dire. the worst of seen the refugee crisis.

we will see one million refugees, 95% have not made it to europe yet. they are coming. scarlet: those displaced will face colder weather as well. it makes the crisis that much more complex. joining us to talk about what the united states is trying to do to stop people from joining isis is assistant attorney general john carlin. thank you for joining us this afternoon. the unitedion, states is not alone in trying to stop citizens from traveling to syria to join isis. what is different about how americans respond to isis recruitment efforts then people in the u.k. or france? john: thank you for having me. we have used statutes that have been on our books after the 9/11 attacks. we have arrested

70 individuals, over 60 wanted to join foreign terrorist groups commit horrendous acts, ape and sexual slavery against women and children. 60 wanted to join that group overseas, 10 were trying to commit attacks right here in the united states. this probleme through our criminal justice system here alone. lastve also worked since year's united nation's event to , and 20t the resolution countries in the world have put new laws on their books to prevent foreign terrorist fighters from joining the colleagues in syria and iraq. mark: is social media frustrating your efforts on this front? in a world that is so interconnected, even terrorist groups are able to reach out to

, ande at a moments notice for lack of a better word, seduce them into thinking that their ideology and violent extremism is the way to ford social change. john: that's exactly right. version of this challenge is different. over 100 countries have contributed fighters. here in the united states, we are seeing a social media-driven challenge. we are not seen you confined to one geographic area or ethnic group. the the fbi has opened investigations in all 50 states. we have brought cases and 25 different districts across the united states. what we see that is common among all these different defendants? number one, social media. some involvement in social media in every case. is thek to social media

age of the defendant. and over 50%, 25 years or younger. one third of these cases, 21 years or younger. this is not a challenge like one we have faced before when it comes to terrorism. the reason why they are young and geographically dispersed while talking to terrorists overseas is because of social media. day the heard the other russian president vladimir putin that there be a ministerial meeting that heads of state get together and come up with some substantive way to deal with the terrorist threat, whether that is thatssia, in europe something the united states is considering? russia orartner with partner with iran to defeat violent extremists such as those we see an isis? john: what you are seeing today that the president is chairing a counterterrorism summit that

consists of 100 countries throughout the world and taking a leadership role in encouraging countries around the world to combat this threat, whether by putting new laws on their books and using those laws. since last year, over three dozen countries like the united states have arrested individuals that want to join foreign terrorists. the other part of it, which is my responsibility as someone prosecuting, is what we do on the front and to keep people going down this lane of radicalization. one, help from companies, those who provide the social media services that do so much good, but terrorists are exporting, take responsibility for the services they provide and help be a part of the solution to stop them, particularly from reaching children through social media walking them down this radicalization path. number two, we need to work at a community level to counter the false narrative.

rape and is about killing. we need to get the message out. the attorney this afternoon in new york is leading a conference hundreds of mayors to encourage at the local lover working to combat the problem. -- at the local level working to combat the problem. change you are seeing a in that company's starting to realize and learn what that threat is, what terrorists are doing to use their service to get young people to commit terrorist acts. they do that for brought-skill propaganda, and by directly operationally getting in contact with them, often through u.s.-provided commercial services. you are seeing companies take a look, they are the best at figuring out how to reach this demographic, and what we need them to do is get the counter message to that group so that

they know what isis is about. that wee of the things should note about terrorism, about international terrorism, is that it is not just limited to bullets and rocket propelled cyberes, there are -security issues, and the president has said that is a form of terrorism in and of itself. what are the economic consequences of that, protecting our electric grids, nuclear sites, in the united states? john: outside of protecting us attack,a terrorist there is no higher priority for the national security division. it is a national security problem, the scope and scale of intellectual theft across the united states, and the potential future problem of attacks designed to cause harm to our critical infrastructure. tomorrow, i will be headed to commerce -- to

address the gaming industry. why gaming, because iranian -- and i willrs be out with the ceo of sony to talk about what occurred with sony when the north koreans attacked last year. we are talking about entertainment, segments of our economy not used to facing national security threats. scarlet: absolutely. china's president spoke last week and said economic espionage is off the table. where are we on this? the u.s. and many companies feel differently. said,as our president what matters more than words or actions, and we will need to see now that they have made the declaration, and look, it was important that the president of china said for the first time

that the theft of intellectual property is theft and is not ok, and now we need to hold it to account. if people keep committing these crimes, we need to hold them to account. scarlet: assistant u.s. attorney general john carlin. thank you for joining us. , ak: that was fascinating lot to consider there when you talk about the economic impact and also the human toll it takes around the world. scarlet: the to do list is massive. mark: what's coming up? wild week for glencore stock. it has come back a bit today. the focus turning to its debt. management will meet with investors. we will see what lies ahead for that commodity giant. we will be back. ♪

scarlet: welcome back to the bloomberg market day. . am scarlet fu commodity prices have settled. crude oil up by 2%, stock in that $45 range. copper futures rebounding after tanking earlier on the latest evidence that china's economy struggling. gold futures, lower by a $.50 --, for dollars $4.50. were talking about glencore. the stock bounced back today, but bonds struggling to stabilize. management will meet investors tomorrow to reassure them. guru,sident fixed-income the bond market reacted to the

news and get in court -- in glencore. they are predicting more than a 50% chance that this company, this investment-grade rated firm, will default in the next five. scarlet: and it is unheard of? you can count the number of times this has happened on your finger. this is tremendous. the bonds are struggling to stabilize. some are still down. to thee below $.70 dollar, a yield of 10% or more. distressed, not just high-yield levels, distressed levels. this stocky would and get a recovery, yet investors remain doubtful? >> that is an excellent question.

court'f all, one of when -- glencore's main problem is that occurred during the commodity super cycle, and now increasingly apparent that the super cycle is over, so how do they evaluate those bonds? there's lots of information not only about glencore, but copper trading, and trading itself, what happens if they lose their investment-grade rating, which is a possibility, especially given where the bonds have traded. this introduces a lot of uncertainty. , ifstment-great bondholders glencore gets downgraded, they will be forced to sell. if junk bond buyers will buy on the other side, they will get hit hard on the other side with massive carnage in the junk world, so there isn't this

natural buyer base. credit is ah-yield leading indicator for the equity market. the action in high-your overall telling you about stocks? you said the investors are struggling with a lot of losses. >> you're seeing some bonds falling, and continuing to fall, and there is no relief. i was looking yesterday, there are distressed bonds like murray energy that dropped more than 7% in one day. scarlet: you don't see that very often. fourpecially following consecutive months of losses in the high-yield market, the first time since 1994. this is a pretty massive move. you getting some withdrawals. in a positionnot for the most part to step in. if they are, why step in when it will probably keep going down?

who is going to catch a falling knife. scarlet: that has been the theme here. thank you very much. oil climbed from a two-week low in today's session. toby 1.9% at the moment $45.26. overall, it's sold off half of its value this year. producer,gest oil saudi arabia, with drawing billions of dollars in order to shrink its deficit. we will break it down. this is been an ongoing's dori of how saudi arabia's economy is so tightly tied to the price of oil, with the super cycle ending, they are scrambling to find something else. >> 80% of this country's revenues come from oil, so when they see these prices, dramatically impacting, maybe

20% this year according to the imf. they are having to dig into their foreign currency reserve. billionpped from $737 down to $651 billion. scarlet: we can show you what he is referring to, the foreign after sets -- foreign assets held in reserve. >> huge amount. although they can do that for as long as possible, they will face a concern that will eat into credit revenue as they spend more and more foreign currency reserves. scarlet: how does the government counter this? creditalk about worthiness. bloomberg has learned they are looking to issue $100 billion in bonds -- sorry, $30 billion to cover the deficit.

they do have to worry about the credit rating. scarlet: there are huge public subsidies and saudi arabia, the conflict and yemen, all financial costs that are pretty systemic and built-in. will those have to be reviewed? >> those will be difficult questions for the government, like feel subsidies. when we visited a solar plant there, the guy in charge of solar efforts said that if we can use less oil in the country in terms of domestic consumption , we consult that fuel overseas much more profitably rather than selling it to our electricity grid at a fraction of the price, so if we can sell that overseas, it will help us dramatically. if you look at housing, they have had huge cost overruns, 500,000 new homes, way over budget, well behind schedule. these are things facing scrutiny

from investors. onrlet: certainly something the two-do list. thank you very much. you are now moving to london. >> i am. i'm going home and a month to launch a new radio show. scarlet: good luck. we wish you well. hour, up in the next half chelsea clinton spreading her message about the importance of corporate social responsibility. we caught up with her at the clinton global initiative, next. seesapanese prime minister his policies as the right course for japan. he says that public evidence is a building block of his plan. all that and more, coming up on bloomberg market day. keep it here. ♪

scarlet: this is "bloomberg market day". chelsea clinton talking during

the clinton global initiative in new york. stephanie ruhle caught up with her. stephanie: you have been able to help take corporate social responsibility out of the human resources ghetto and bring it to the forefront here t. ceos are really invested. when did the change happened? >> companies have committed to .ecoming responsible citizens you have seen that shift over the last decade. we see that across industries. whether that is the commitment being announced here to expand the mentorship program it has within its own companies, focusing on ensuring women feel comfortable being store managers , feel comfortable moving up the corporate ladder, feel comfortable negotiating, feel

comfortable being the boss of men, now taking and sharing that with other companies, and that is their commitment to help vindicate what they have seen work in their own companies, that is pretty remarkable. when you look at procter & i know i should not have favorite commitments, but i can't help myself. they realize their consumer products reach, logistics and distribution mechanisms, and their commitment to help every family around the world get clean water, to play their part by ensuring that they are saving a life every hour with clean water distribution and clean-water packets, and demand to sell them in the stores across the world. to partner with world vision and other ngos where there is a real need, that's amazing to me. that is their core business model.

it is something that they say now is one of the most highly-rated things they do as a company, even their recruitment and retention program. stephanie: the market has had a great run, but the dow is down, are you worried that that commitment to shareholders can make the great work they are doing thisappear -- disappear. is where we at cgi and the clinton foundation have a responsibility to our partners to help them continue to make the case. scarlet: that was chelsea clinton. for a look at other top stories, america's neighbors are buying up manhattan.

canadians have bought $3.9 billion in property in manhattan this year, twice as much as last year. in the last decade, canada accounted for more real estate deals than any other country. we are about institutional investors, pension funds, asset managers, not individual investors. mountain is debuting its soda machine and more than $1 billion in backing from coca-cola. machine soriciest far, $369. the company hopes that it will revive pod sales. it's not doing so well. it is struggling. days away, but l.l. bean facing the same predicament as the previous holiday season. duck boots on back order. short up its manufacturing operation so that it would not happen again, but it is happening again.

year'sd not clear last holiday backlog until july. it could get worse. good luck. those are your top stories. we have more coming up on bloomberg television. japan. a guest on lord, the aol president, will be speaking. that is all coming up on the "bloomberg market day". the s&p 500 down to. by almost two points. we will be back with more. ♪ ♪

(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...)

(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. scarlet: it is noon in san francisco, 3:00 in new york, 3:00 a.m. in hong kong. pimm: shares of glencore are rebounding.

they say business does remain robust. was the selloff overdue reaction? bewarde. e. scarlet: can you back up his post? the things that keep our icon of that night. warning when it comes to the market, it is all a little bit of history repeating. scarlet: good afternoon, everyone. i am scarlet fu. im pimm fox. a look at what markets are doing right now. buying, selling all day long. julie: scarlet and i talked an hour ago and said looks like we are's napping the losing streak. i said you might want to table that.

theoks like we are snapping losing streak. anything goes at this point. the nasdaq leading the kinds down point percent. take a look at the volume of the various indices. this not only shows where the action is, but also shows the enormous volumes and health care -- in health care today. the health-care volume today versus the 20 day average volume. it has just been enormous volume in health care. health care leading the group what, which is very unlike we have seen recently. this is helping to stem the decline of the point. scarlet: health care has helped turn the tide a little bit. what about biotech? i would imagine the five day to client was pretty damaging. julie: we're talking about an

eight-day decline in biotech ride today. biotech is dragging down health care in the third quarter. if you look at the three-month chart of the broader health care s&p index it is the worst quarterly performance since the second quarter 2002. it has been quite some time, more than a decade, since we have seen performance is poor. even though overall health care is up today, biotech has had a hard time hanging on to gains. now down. you can see the gains at one point in the session and that has all faded away. we have not broken the eight session losing streak. losing streakrst since 2008 for this particular index. here are the movers still going up. .ilead, bio jen, amgen large cap snapping back, but we on theing relatively

bigger bases. within biotech it is a mixed guys doingween these well and the nasdaq that keeps going down. much.thank you very julie hyman giving us an update on the market going up and going down. we will take you through to that. let me tell you about this slowdown in china spreading to japan. japanese prime minister is determined to change all that. speaking in new york he reaffirmed his confidence in japan's resurgent. >> japan is a country. inh and its potential. -- its potential. i'm asking you to take that into full consideration. the dawn of a new golden age. of the next 5-10

years are extremely promising. is melissath us now auto, an analyst who specializes in japan. she attended this morning's event. you were listening to the soaring rhetoric. in what way did he convince you in which ways did he not? >> he did not outline anything specific. there was no specific market catalyst. my general takeaway and general expectations were exceeded. generally a positive events. most of the other investors i spoke with their came away with a fairly positive impression. all eyes right now are on prime minister abe to see what type of action he will take. you came on were spoke about how long we have been talking about japan. both of us.

i think about nine years. the cycle of trying to combat deflation and slowing economy at the same time you have a demographic pressure, this prime minister spoke about demographics. --this throwing a grand grain of salt on the beach. will it really mattered? or are bigger forces at work? that is the question. when we look long-term it is easy to see there is low hanging fruit in japan and areas of the market were basically taking that off and really creating some leverage and productivity and flexibility in the market. pimm: labor reform. >> exactly. there i say it, immigration. pimm: 127 million i think that is the number. 127 million people, and the projection is unless something happens will go down to 100 million. scarlet: these are all big

issues he has to tackle. i want to play another standby prime him -- from him. now talking about phase two. the time is arriving to launch what i call avenomics 2.0. [laughter] political foundation is terrible. based on that stability, the first priority is economic goals. doing what ever it takes to put on our robust fast-track. comes three arose. the weekend is not officially one of them that kind of the

transmission mechanism for his arrows. does it not work if global investors keep treating the yen as a safe haven? >> it is a tricky question. we would like to see the long-term underlying fundamentals of japan change for it to be so much more than a trade. to get large institutional money managers enthusiastic and excited about what he is doing in terms of corporate governance, in terms of labor and tax reform. all of these things point theoretically to a very compelling investment case. that is really what the story is. much more so. pimm: what about the specific sectors of the japanese market that you think institutional investors should take a trip and go in c and maybe invest? -- i nvest and go and see? >> it is a very vibrant and rich

consumer culture. very textured. a lot of options and products. a deep consumer that is very fickle. then you have a huge opportunity coming from tourism. a lot of chinese individuals living coming to japan buying cheap products. actually cheaper in china. pimm: less expensive in japan. dollar basis. cosmetics, electronics, medicine. scarlet: i have to say i have a weakness for japanese product as well. thank you for joining us. a look at the stories making headlines at this hour. president obama hosted world leaders at the united nations in a summit to just as the war against isis and the threat of violent extremism.

the president called the war of long-term campaign and reiterated his readiness to work with the countries such as iran and russia. the treasury and the state department announced new sanctions against or in terrorist groups and isis fighters. they target 25 individuals and five terror groups. scarlet: secretary of state john kerry described the meeting president obama and president putin very candid. he said while they disagree on the president remaining and how work, there are areas of agreement. >> the agreement is fundamentally we want to try to resolve this. the idea is it is a threat to everyone and we need to come together to fight isil. the idea is to want to fight syria and keep it secular. >> both leaders are looking for a way forward because syria is at stake. raising-busch in that

as much as 70 million in thencing as it prepares takeover proposal. bank of america and deutsche bank has submitted financial proposals to the world's biggest work. working with about 10 banks to arrange a total financing package of between 50 billion and $70 billion. scarlet: an update on volkswagen. according to the wall street journal, lawyers and the u.s. want to move class action suits but were one federal judge. they have not cited specific figures. the president of planned parenthood said claims based on undercover videos by antiabortion groups are plunked offensive and categorically untrue. speaking today before a house panel, cecile richards rejected tissue fora self

profit. some protest groups are planning a protest in some groups are not defend it. has been consistent -- suspended from the postseason and the head coach has been fined after unethical fraud and -- for fraud and unethical programming. to provide guidance to staff on rules compliance. are your top stories at the moment. coming up in the next half hour of the bloomberg architect. scarlet: google unveils to do devices to challenge the iphone. the company it for to win the video streaming battle? -- an: and it and it exclusive leader, the italian prime minister says it is time to bring russia back from the cold. all that and more coming up on the bloomberg "market day." ♪

scarlet: welcome back to the bloomberg "market day." i am scarlet fu. checking in with julie hyman for the winners and losers of the session. corn -- kind of a mixed day and looking at losses. tao is doing less worse than it counterparts. i wanted to look at the dow winners. johnson & johnson is one of them. the doc rays to a buy from hold at deutsche bank. it is called a diversified safe haven with capital to deploy. says we could the m&a activity that could prove to

be a candle less -- catalyst for johnson & johnson. the analyst said it is unlikely to get caught up with the debate over drug pricing. interesting trading there. also wanted to look at mcdonald. this gain due to an analyst called. credit squeeze raising it to an analyst called. jonathan west says time to start loving it. he says while the company has talked about improvement in international conference -- comparable sales, that they are improving in the united states due to impending arrival of all-day breakfast as well. those stocks doing a little bit better. pimm: if those are one of the winners, what is some of the losers ge? -- a: apple took the stock leg downward right around noon.

there did not seem to be as civic catalyst although google was giving it phone update presentation at that time. nothing in particular that seemed to be a red flag for investors. nonetheless, now the stock is down by 3%. definitely a drag on the tao. drag on the dow. dooo! says it is on track to this than a stake on alibaba. it does give the update on timing. alibaba itself trading higher. , andet an idea of the lag alibaba for that matter, the lag. the stock is down more than 10%. yahoo! down about 30%. really there is this overhang. they had outperform going into the ipo.

alibaba'sse of performance in question about chinese growth. torlet: i guess yahoo! wants get this been done as quickly as possible. pimm: the irs saying we are not going to pass judgment on this. scarlet: challenges for yahoo!. a look at the top stories crossing the terminal right now, the supervisory board of volkswagen could pick a new ceo tomorrow. forossible successor porsche. pimm: edward snowden has joined twitter. his first tweet, can you hear me now? the biography reads are used to work for the government. now i work for the public. director at freedom of press.

the only twitter account he is falling -- following nsa.gov. snowden is still wanted by u.s. oficials or leaking a trove classified information in 20 13. he has temporary asylum in russia. scarlet: temporary or permanent? kind of permanence of permanent at this point. google unveiling the latest version of android software. the new devices will go head to head with the iphone. a crucial new option is android makethe latest effort to more of the users make payments on mobile. they will ship next month to customers in the u.s., u.k., and japan. for more on the next's launch, i want to bring in cory johnson. people don't exactly lineup for the newest version of google devices as opposed to the apple iphone. cory: to be sure, they are not

made by google. these are wall way and lg phones. it is a different business model. maybe the marketing model will not work as well. the notion is to propagate a system that sends users back. that of course is subject of an fc's the -- ftc investigation right now over the ways googles might be using android to gain an unfair advantage over other companies trying to write software for smartphones. of a issue for google. pimm: how is your new nexus phone? that is exactly my point. no one has a new nexus phone. did they sell 13 million over a weekend? isn't that how many apple managed to sell? >> the economy at scale developing a single app.

they are able to achieve hardware economies of scale, let alone the software. let's assume they are equal at google and apple. we assume the cost -- software costs are the same to develop. the hardware advantages that apple can get on a economy of scale making their own chips or using them from companies like sizables or others is and lets them have a product that is hard to compete. bold --e more android sold in google or android but more profit in apple phones than there are in android. pimm: that is kind of important. they will make more money. cory: not these days. have you heard of amazon or does googlecarlet: need to make money to accomplish what it wants to do, which is people into the

ecosystem? cory: the world is changing. the headline is that pc world is dead. as more and more computing has happened, google cleverly saw this coming from a long ways off and realizes -- relies they wanted a dominant company to compute to the new environment, they had to be central to the operating systems of the new environment. when you do a search on opentable, probably your favorite app. you probably -- you are big not got person, you do to google to search for staff chat. you go right to the act. that is a problem for google because people did not begin their searches at google.com. cory johnson, thank you so much. pimm: still ahead, a shakeup in

their to be outgoing speaker of the house. more details coming up. ♪

pimm: now we turn to politics. kevin mccartney made it official yesterday he want the outgoing house speaker's job. joining us this john holloman. i believe there are four candidates looking at the house speaker job. who is likely to win the job yet so i thought kevin mccartney would be the obvious choice. >> fortunately the guys you have their are running for majority .eader right now kevin mccarthy is only the declared candidate for speaker i believe. he now has the support of paul ryan today. pretty clear at this moment

there is a pretty rapid consolidation around kevin mccarthy he coming the next bigger of the house. there will be very active races for majority leader. that is where all the real action is right now in terms of the house leadership going forward. --m: if carmen mccarney kevin mccartney does take over, what difference will we see in the leadership style? he is pitching himself as younger, more conservative. someone who has a better relationship with the right in the house. at the same time, he does want to govern and does face the same fractious nuts and tensions boehner did before him. fractiousness and tensions boehner did before him. pimm: is this something we will be talking about in september? we willecision means

not have a government shutdown in october, but it does not mean anything about what will go on in the future. the tensions and dynamics that made it difficult to get things done, will make it difficult for whoever the new leadership is to get things done, which is why it is very likely we will see a lot of the forces from the right pushing to shut the government down again. scarlet: john holloman is the managing editor. tune in tonight at 5:00 eastern. another words, the more things change, the more they stay the same. news eager, new problems. new problems., pimm: much more coming up. we will take you through to the close. this is the bloomberg "market day." ♪

pimm: this is the bloomberg "market day." i am pimm fox. straight to a look at the top headlines. a banner year for this with --

swiss watch industry. this is all according to the watch chief who spoke with bloomberg this morning. he expects record revenue to continue to increase, but he sees dark clouds on the horizon for 2016. >> in sales we are still double digit, and we believe we can keep the growth until the end of the year. the problem might be next year. next year we see a more difficult the -- difficult year than 2015. not only for us, but for the whole industry. apple's entry into the market, a surging swiss franc and china slowing economy is fueling -- fueling pessimism. the answer is to the watch that will go on sale next month. tesla will deliver the model s

tonight. holding a high-profile event in its factory in fremont, and california to model it. it will compete with premium model suvs built by porsche and audi. and has not been a smooth ride for uber in amsterdam. dutch authorities raided their offices a third time as it are mental probe continues into the uber pop ridesharing service. authorities believe it violates national transport laws. they continue to offer the cities in four dutch despite being fined more than $500,000. uber is the leader of the one sustained nation are meeting again this year. president obama opened talks today with right will castro. speaking privately on the sidelines of the annual gathering of leaders at the

united nations, the cold war adversaries are trying to normalize nations after decades of animosity. those are some of your top stories at the moment. as world leaders have been gathering in new york this week for the united nations assembly meeting, a lot of the conflict -- a lot of the discussion revolves around syria. sitting down for an exclusive interview with the italian prime minister. he asked him whether he sides with vladimir putin on working with the syrian president rather than getting rid of him. answer in detail -- this taste at this point because i think this is nuts. point of view, the problem that it's not if we achieve a compromise about a single point,

different point. in syria there is a massacre. situation isr the worse than last year. point, that we must discuss. i think the united states of for us is best friend the international choice, and so we discussed first with the united states of america. at the same time, i think that clear, its me be very visited one year ago, i saw the picture, the image of the children.

i listen, the experience of violated by girls the enemy. so we need a solution, you see. because it is impossible to have an emotion when you saw a .icture of the little island of the come back because emotion and reaction. we must absolutely. they day we saw in mediterranean sea, the picture of the island. >> i think in this moment it is important to come back to dialogue twin russia and the

united states. when we discussed that in this moment, obama and prudent -- putin have the first bilateral meeting. this is a good first step. >> you described america as your somefriend, but putin europeans at least. a case where you have syria, iran, all of these different areas where putin is essential to making some kind of progress. when do you think we should stop -- start rolling back sanctions on russia? >> i think we need russia involved. i prefer more of russia in the solution. some people in europe consider russia our enemy. preserve ukraine

andnity and identity borders of this country, and for this thief -- for this reason it is correct to have sanctions against putin. wars totime, i use my repeat every day the same thing. the first time i remember the criticism. also my friend. you use the expression because you need oil and gas by russia. this is stupid. because we have a good relation with everyone. we have a good relation with russia. but strategy in oil and gas is exactly different. we continue a good relation with russia but they invest in the direction of south. today the company owned by the government is the number one for oil and gas in africa and we

discover an incredible gas cap, gas field in egypt. one reason there is foreign policy. it is an ideal reason. for me, it is important. >> do you think of putin in the famous phrase is someone you can do business with the same way as margaret thatcher and george bush when he first met putin? someone he could do -- you could do a deal with or someone you cannot trust? >> i think the president is of russia. a great country with a great history and great future. a future without russia is a mistake. russia to can invite rules in the ukraine. the rules in ukraine are in the

protocol. everyone must respect the protocol of minsk and nobody could receive the problem for that. maybe russia is a partner. russia is a solution. question ask the identity of europe. the italian prime minister speak in with john nicholas wade. coming up on the bloomberg market day, another positive sign in the economy. americans are feeling good about the economy. consumer confidence in september was at her than estimated. details coming up. ♪

pimm: this is the bloomberg "market day." i am pimm fox. a look at top stories making headlines. rising becausep of limited supply and increasing demand according to the case-shiller index. prices rose 5% in july from the thanbefore, slightly less the median estimate. home prices were of the most in san francisco and denver where they were up more than 10%. yahoo! says it is on track to fill -- then opt the $22 billion stake in ipo. investors have been concerned about the tax hit yahoo! could take from the transaction. they plan on going ahead with thedeal even though internal revenue service has

refused to give the company and advanced ruling to ok the split. traditional power companies are scrambling to get on the roof. they say that utility companies are jumping into small-scale solar energy. the competition is heating up as utilities and smaller solar installers fight over the future of the u.s. energy system though the residential solar market is remainrowing and panels price leak -- remains pricey, they grew by 50% and on track for another record year. top stories at the moment. stocks are not getting much of a boost, even though strong economic data was released, particularly on the consumers. the dow jones industrial average lower by five points. dow jones -- s&p 500 down 5.5 points. the dow jones industrial average down about 10%. the nasdaq falling more than 1%.

bringing in joe weisenthal, the of "what'dchief you miss." >> it is just ugly. he pointed out the big lacquers, apple, amazon. the tech stock for much of the airport strong companies moving lower. pimm: is this also because we are seen a big selloff in the biotechnology stock? >> last i looked they are hardly up. they have been absolutely offered lately. pimm: is that really because of one tweet from hillary clinton? >> i don't think so. when the market moves, they have to make up an excuse. really what i think is biotech

has went on an amazing, speculative run. valuations got ridiculous. now we see the global risk off sentiment everywhere, not just the u.s. -- not just the u.s.. of course the property areas will get hit the hardest. areas will get hit the hardest. i think it is fitting the story to fit the price. as marcus a lot, is this people liquidating positions because they can and have to? i think there is some of that. some of the high quality aspects are areas that have been strong and seem to have good fundamentals like the homebuilders where there is tale winners that really got planned yesterday. there is an action that looked like sell anything. pimm: is this program selling?

they program the computer to say it hits a certain level, you have to get out? the fundamentals of the companies have not changed in the past three weeks. >> that seems absolutely true. humans are prone to panic and dump companies because they need to raise cash. there could be interesting things with quarter end. one of the worst quarters in several years. i am not sure how you would quantify it. i am not able to quantify programmatic selling and what his people something and selling and raising cash. pimm: i was noting three-month tea leaves. what are they doing with their money? cash. cash is outperforming stocks and bonds for the first time in over two decades. strong dollar. pimm: strong dollar and keep all of that in your mattress maybe. thank you joe weisenthal. you can watch him coming up on what you miss at 4:00 eastern

right here on bloomberg. , and economic catastrophe is looming according to carl icahn. it will tell you who was to blame, or at least to carl icahn flames for it. ♪

pimm: this is the bloomberg "market day." iamb pimm fox. time to take a look at markets as we approach the close of trading. julie hyman in the newsroom. the s&p 500 will need a rally in order to end the losing streak. isie: yes, and the clock ticking. the major averages lower. the s&p 500 off more than 3.5 point. all of the bouncing around during the session. take a look at the s&p during the intraday basis. here is the unchanged line. the gray line.

you can see how many times we have seen across above and below. you get the idea. a lots of volatility in today's session above and below unchanged. we have seen fluidity in the groups in the s&p 500. the volatility within them as well. take a look at the imac. health care bill remains the best performer. now upup as much as 2%, at half of 1%. information technology more firmly in the red. not a lot of catalyst one way or another. ess drift in the market. there is a split in the biotechnology sector. j yes. we had these -- julie: yes. thead this egg cell up in

biotech stocks. gilead on the rise. if you look at the biotech etf's there is still a lot of red on the screen. the nasdaq by index as well as these two etf that track the biotech all of them down now for eight straight sessions. in particular is having its worst eight days on record, down another 4% today. the division occurring throughout the course of the session. at the same time health care ,verall is helping the s&p 500 some of these are still providing a pretty substantial drag. keeping an eyean on the markets as we head to the close. a warning from carl icahn. in the new video entitled danger ahead, the billionaire investor lays out the problem facing the united states economy, including the risk of continued low interest rates. why should they raise rates?

it is almost a rhetorical question because there are so many reasons. low rates almost by definition building bubbles. building real estate bubbles. even in the art market. kass joining us is doug who just put out a note today addressing karel icon comments. wondering if you could give us your thoughts. what exactly are you responding ?o in the video gekko > >> sure. carl is one of the best investors of all time, but as i wrote in the article, 15 minutes of lame, the article expresses my view of the video. i found little value in his video. his worries are all of our worries.

the video is filled with hot progress see, including some of them in the portfolio holdings which has heavy concentration in deep calls. copper. are: but doug, these relatively new investments for carlicon, correct? -- icahn? >> that is correct. it has by taking such an important role in management. i would say he made one important point. isdid make the point that it easy money everywhere that has helped rock the roots of capitalism worldwide and delivered speculation and now investment in certain sectors. it is sort of like overwatering the plant but the real economy is exceptional and has to be differentiated from the trading levels in the broken market that we see the minute by minute. pimm: i want to bring and

bloomberg's own all of her friend kirk to put this into perspective. in listening to him talk about the specific decision, he has benefited from low interest rates, right? flex he is been able to borrow money or use 90's that is basically inexpensive? >> apple is one of the companies properly mentions there is a lot of buybacks. a ton of corporate buybacks are being fueled by the low interest rates that are being fueled by bonds that link. how much that is going forward. company such as apple, you borrow money in order to pay. you have a lot of it overseas. borrowing money in order to pay dividends. is that accurate? >> that is accurate. pimm: is that a sustainable path

to success for shareholders ? >> no, but again it is hypocritical because he suggests and the video that buybacks are antithetical to the american way and preclude investment plans and equipment in research and development. he is sort of speaking at two sides of his mouth. >> i want to pose to the issue that quantitative easing making available large sums of money at very low cost and the value -- devalues what money can do, in the sense that if you have more of them thing, it is less effective. >> i agree with you completely. the irony is he will probably get expanding. if the time value is zero and x texted to be zero in the zero bound interest rate environment, there is a lot of disincentives to its land plan and equipment.

the critical question for the seems to me the bricks, allil, russia at all -- et are exporting inflation and reduced economic activity and lower profits for the developed world. the question we have to ask ourselves as investors in the s&p is how advanced is this trend? into what degree have global equity markets discounted? pimm: bring up another point having to do with low interest rates and what that is doing is fueling the ability for companies to by other companies rather than invest in their own companies. >> that is very true. you had rate dalia who spoke about the idea m&a and buybacks are taking up so much by power -- ray dalia who spoke about

m&a and buybacks are taking up power in theg united states. however, at the same time we do see things like the buying power money,mes from corporate corporate buy-in throughout 2014. companies represented six times more money flow into stocks than the net etf flow. is that healthy? i am not sure. that is not how it was in the late 1990's and not the way it was until now. pimm: we will have to wait and see. thank you to doug of seabreeze partners management. moments away from the close. what did you miss is coming up next. ♪

>> we are moments away from the closing bell. i am joe weisenthal. .carlet: and i am scarlet fu

[bell] u.s. stocks closing in the green. joe: the question is, "what'd you miss?" waters.till in choppy in track for the worst quarter since 2011. scarlet: are americans feeling better about the economy? we have that chart. joe: and how women's participation is key to global growth, why it has stagnated, and what needs to be done to help it grow the economy. scarlet: we begin with markets. green for the s&p 500, a rebound earlier today. we now did get a late rally.