good morning. welcome to the bloomberg market day. let's go to the morning headlines. the fourth quarter met welcome to it. the markets keep limping along? will be your finish strong? we will get an expert forecast. u.s. on a makers report strong september sales but the road to hear good -- at could be bumpy. matt miller will give us details about the data. vacancy? you see a larry sees an opportunity. we will introduce you to the real estate billionaire who flies underneath the radar. the first up, we have some breaking economic data and julie hyman has more and also the latest market activity. julie: let's talk about the manufacturing number from the institute for supply management. 50.2 is the reading. that is lower than the 50.6 that have been anticipated by economists. also lower than the prior month. essentially, the third straight decline month over month and

also the weakest reading on manufacturing since may of 2013. 50.2 reading down from 51.1. 50 is the dividing line in the surveys between expansion and contraction. we have seen any fracturing numbers on the wane. but as pointed out, just because the manufacturing numbers weakening does not mean that gdp will necessarily be weakening, especially as manufacturing accounts for smaller and smaller part of the u.s. economy. these figures, by the way, showing export demand matching the weakness since 2012 and that is as we have had the global economy really struggling to improve. if you look at the reaction we're seeing in the markets right now, and it looks like stocks are taking another leg lower. we have had some bouncing around out of the gate this morning. some fluctuating between gains and losses. and now the losses looking a little bit deeper as we get underway in on the back of the

manufacturing number. i want to take a look at imap on my terminal to see where we stand in terms of the groups. definitely more red as compared to a few moments ago. technology, telecoms, utilities are the worst performing groups. energy and materials holding up relatively well still this morning. but not as well as they work just a few moments ago before this number, pimm. pimm: what is the technology lagging? what is the index going down? stock inere is one particular helping to drag it down and that is apple. we are seeing weakness and apple shares. there was a report integer times, the asian publication, saying iphone chipmakers are said to worry that apple may trim orders. the circuit supplier who spoke to digit times had apple slightly ordered lower -- lord funds for new form

december. it seems to be putting pressure on the apple shares this morning. that is one of the country being factors that leads to the weakness and technology. thatntribute in factors leads to weakness in technology. on energy, we're seeing strength in oil prices. they took a bit of a leg downward on the number that just came out, but nonetheless, chinese manufacturing data showed stabilization so that seems to be helping oil prices. one more thing i have to note, that is the movement we have been seeing in the 10 year yield . initially, we were seeing the first gains in prices of the week, but then we definitely were i should say the first increasing prices, but now we're seeing a lower yield, 2.01%, the lowest we have seen and more than a month plus time. we have a couple of fed officials we will hear from today so we will see how that affects the treasury trade. hyman,hank you, julie interesting look at the 10 year treasury. for more on the markets, as we

get into the final quarter, i am joined by michael purvis, and he says buckle up because the volatility, you say it is going to continue for at least another couple of weeks. why? >> it is interesting. we're between earnings seasons right now and that is obviously an important catalyst to see how the companies are able to navigate these economic reports we are saying, but the more important issue is not the fed hike, it really is china and other emerging markets and what their trajectory of economic activity is going to be. as julie was referencing, the export data is sort of weighing on the manufacturing data. all that stuff is sort of filtering through into the u.s. economy. and also risk appetite. the problem is, we're not going to get clarity on whether this chinese stimulus is going to be effective or not. and if so, how well -- how effective it will be, for several weeks.

let me push back a little bit and look at the technical indicators. what is the point of resistance? you take a look at let's say a chart of the s&p 500. what you want to do is see where there are large pockets of buying activity will step where is the biggest buying activity? at which level to people say, hey, this is on sale, i've got to buy it? >> whether we set up a higher or to october, which we have done, that can be maintained. that will keep bullish posture, moderately bullish posture. the other thing, we've had a major dip since late august. unlike the dips in the prior for years, there's much more technical resistance above this. we may be building a floor. i suspect we are. i getting above 2000 and above 2050. floor?ut what about the

1850? >> 1850, 1820. big round numbers. china, but itioned want to ask about earnings growth. we were talking before you came on, when all is said and done, if you are in equity investor, you buy companies that have earnings growth -- some kind. what is your outlook for earnings? >> where the s&p is likely to end up for the entire year is probably somewhere around $118 or so, which would imply a 5% earnings growth. that is not that bad if you consider that most of the year-over-year earnings growth has been 3% to 6% over the prior three years when we had very good rallies. you do not need massive earnings to put up a good rally. the wildcard is, what is 2016 going to look like? pimm: in terms of gdp? >> yes. pimm: you are correlating gdp

growth in the united states versus corporate profits. >> to get earnings growth, you need revenue growth. to get revenue growth, you need nominal gdp. to get nominal gdp, you need inflation. this year, normal -- nominal gdp sank. part of that was oil related and so forth. next year, whether we can get a thevery nominal gdp -- street consensus forecast for bloomberg has 2% inflation for next year. this year -- pimm: i was going to say, sounds like the federal reserve. consensus is 2%. hugely year, it is a ford. whether we get that or not it is going to be a key determinant of how much revenue and earnings growth we get out of the s&p companies or other index companies. aboutif you're talking $118, $119 earnings for the s&p 500, so five multiple, right? >> 5% growth. pimm: if you're talking about

investing in stocks, you want to look at this selloff in the volatility, maybe what to say, hey, if i have something i was always interested in, maybe i can get it final double or six multiple, that is not expensive. expanded, mean, ps have come down a lot, trailing almost three points, 19 to 16. -- dirtt to achieve by cheap by many standards, but against the backdrop of the 10 -- one ofury was at the metrics i like to look at is, what is the difference between the 10 year treasury yield and s&p dividend yield? here. >> to provide some comfort. you need risk sentiment to get into a more positive space right now and that comes down to whether china inc. is able to manage the gdp the way they say

they're going to. pimm: we will wait and see what happens. i know we will be checking in with you for the earnings and what happens with market volatility. thank you, michael purvis. now let's take a look at some of the stories making news today. russia carried out more airstrikes in syria overnight. russia says its planes destroyed islamic command center and a car bomb factory. moscow has said it is attacking islamic state targets, but u.s. officials say russia really bombed rebels opposed to syria syria bashar al-assad. >> the first instruction to us was to make sure that the military of the united states, the coalition led by the united states on the one hand and the military of the russian figuration for now engaged in

similar durations at request of the syrian government, get in touch and establish channels of communication to avoid any unintended incident. pimm: u.s. officials say the russians gave them just one hour of warning before those air attacks. hurricane joaquin picking up speed toward the bahamas. the question is, where does it go after that? joaquin is a category 3 hurricane with maximum sustained winds at 120 miles per hour. government forecasters say they can't rule out the hurricane will strike the east coast as early as sunday. some computer models say joaquin could head into the atlantic. japan's central bank sees little need to add stimulus -- at least right now. reporting the bank of japan policymakers would refer to hold off and get a clearer view of where the economy is headed. at the end of the month, the

bank of japan will come out with its outlook for economic growth and inflation. a number of americans applying for first-time unemployment benefits was slightly higher than estimated last week. jobless claims rose by 10,000 to 277,000. still, that number is near a decade low and the total number of people receiving benefits was the smallest in 15 years. catching up tois hillary clinton when it comes to fundraising as well. the vermont senator collected almost as much money in the third quarter as the democrat front-runner. $26ers brought in about million -- mostly from small donations. hillary clinton took in $28 million, most of hers came from big fundraisers. and those are your top stories at the moment. coming up in the next hour of the bloomberg market day, amid the volkswagen emission scandal, u.s. automakers release the reports.

it was a very good month. we will talk about ford ,fiat chrysler and gm. kkrt data taken private by years ago is seeking to raise over 10 lead dollars in initial public offering. and how new york real estate billionaire larry friedman got his start and what his strategy is now. that story and more ahead on "the bloomberg market day." ♪

pimm: good morning and welcome to "the bloomberg market day." julie hyman is joining us from the newsroom. planes, trains, and automobiles? yes.:

trains.g to start with wolf research is bringing up to buy a number of different rail stocks. these are their preferred picks. the analyst over there talks about not necessarily anticipating an increase in , bute in freight nonetheless, looking for increases in pricing and productivity. interesting graphic on the bloomberg terminal shows there is some anticipation for at least stabilization of volume. take a look at the terminal. r the dustom ft transportation research. these are commodity carloads. they have been hit pretty hard by declining commodities, prices and demand. the forecast from them is we could see an increase year-over-year in the volume. this is intermodal, other stuff that transports from rail to truck's, etc.. where looking for perhaps a more increase. this is a multiyear chart going back to 2000 come although, that

is cut off on the bottom of your screen. interesting there is some anticipation for volume growth, but wolf is really focusing more on the pricing and productivity scenario. some of the other transports, i want to look at the autos because "the new york times" is reporting hourly workers at fiat chrysler appeared to have projected -- rejected contracts. it looks like there is more union power here, there was this post contract and so the idea there perhaps would have driven down the automakers, but now we're seeing them gain a little ground. there's also talk about what this would mean for other heavily unionized industries. that is one of the reasons we're watching. the airlines, we have the auto sales, which will hear more about in a moment. but you are seeing the airlines also trading lower this morning. in other words, where watching the heavily unionized industries this morning to see how they are affected, even on this day when

the autos are up on some of these sales numbers. thank you, julie hyman. automobile makers up, airlines may be grounded. automakers releasing september sales reports this morning, and it was a positive sure. ford light vehicle sales in the u.s. were up 23%. fiat chrysler up 14%. gm reported 12.5% increase, beating estimates of 9%. this is the backdrop of volkswagen emissions and the scandal, clouds on the horizon for perhaps industry. let's find out more with matt miller. you are an expert in all things automotive. they must be very happy in detroit. matt: i think they are very happy in detroit. these numbers were phenomenal by any standard. was onlysler, while it meeting expectations of 14% sales growth, it is the 66th month in a row of sales growth for that company will stop the fact that the union voted

against the contract, that dennis weems agreed to with his friend sergio, i don't know how bad that is for the industry. that was a power move by the union to try and get the other automaker to capitulate to prices they thought -- the deal they thought they could get with fiat chrysler, and they're going to have to go back to the drawing board. but i don't think they will strike. i want ask you about one number, the number of the automobile makers put out as a forecast for the 12 months, the annual. what is that number now? matt: chrysler came out today and said 18.4 million, which would be amazing. i was just talking with steve ratner downstairs who is instrumental in the turnaround of general motors bringing it back from bankruptcy. when we were 15 or 16 million is that, that was pretty good, and it was 2013.

now looking at 18.4. it is an amazingly high number, but steve points out, you need to take it with a grain of salt because it is being driven by really easy financing, maybe too easy. subprime is a were thrown out. really easy leasing deals, not quite as profitable for the automakers as they have been in the past. maybe the consumer getting stretched out a little bit too much because he or she needs a vehicle after driving a car for 11 or 12 years, and it is just dying. pimm: that is finding the dark spot in the story. i want to go back to the number. let's say it is not 18 point whatever million units a year. let's say to 16 or 15. how come everyone is talking about potential for recession, the economy is slowing? matt: this is the discussion i had with steve ratner. i said, the consumer has to be doing fairly well because they're buying cars at a record pace. pimm: and they don't just park

them in the car -- a rush, they do something with them. matt: going to the mall, to fashion bug. i don't know with the kids are doing these days, but probably spending money there. but not spending enough. this is the concern. that consumers are spending but just not vigorous enough -- pimm: how much more do they want it? for an industry that was on its back just a few years ago. matt: can all of these consumers who have bought cars, can they really afford to own them? when someone like steve ratner is concerned -- pimm: tell me about margins. matt: if you look at operating margins, i pulled up -- you can if you want on your terminal. and then yout ford graph operating margins, they got great for a while, but they

have been steadily declining. the same is true of general motors. they had had to reinvest in the industry to build new products and that is probably what they would tell you as well. if you graph operating margins as an investor, you want to see it going up and to the right and not down into the right will stop and that could be a concern going forward. if you briefly want to come into my terminal, you can take a look at the operating margins. very much, matt miller. we have more on the next hour of "the bloomberg market day." still ahead, vacation is becoming serious business for some businesses. find out how workers are vying for vacation and it is changing job markets. ♪

the job market in the united states is changing, and it is getting paid vacation a

whole new meaning. some firms are pulling and workers with getaway bonuses and generous holiday packages. would you believe there is pseudo-writing involved? for look at how managers are putting up, i want to bring in michelle from washington. thank you for being with us. explain exactly what it is that is causing this desire to entice workers with vacation packages. michelle: there are a few things. in the macro economy, looking at a pretty strong labor market, a tight labor market. workers are gaining power because there are fewer unemployed persons per job opening. the fewest since about 2001. that gives workers a little more power and the employers more incentive to provide vacation benefits, the sort of thing that will attract and retain workers. pimm: as an example, i believe and they bloomberg brief you help put together, you talk about new policy at grant

fortin, for example. michelle: yes. they're offering unlimited vacation, which a lot of comedies are providing. it is a hot topic these days, especially in a tech sector. but even beyond that. grant fortin is in accounting. across most coveted, provided isn't exactly you can take off the entire year, 365 days, but it opens up a conversation with the worker. instead of mandating a certain number of days of vacation per year, the worker is allowed the kind of decide what is best fit, what is feasible to get the work done and also to work with employee and coworkers in terms of providing different amounts of days they may be able to take off. it is a little more flexible. pimm: we used the term "bribing" but not in the legal sense. could you describe how that fits into vacation in the office place? way --t is a playful

michelle: it is a playful way to describe what we call full contact in denver, a tech company startup, providing what they call paid vacations. instead of just having this time off, you get your regular salary, you also get a bonus. use on thattually time off. this is kind of another incentive to take that time that a lot of americans just don't take. pimm: thank you very much, michelle. you can read more about it in the bloomberg brief. still ahead, are unicorns endangered? many think so, but not the reasons believed. ♪

♪ (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. pimm: good morning. welcome to the "bloomberg market fox.i am pimm general motors will replace

almost its entire product line over the next five years. executive mario bar told executives she is pushing for cells growth. of sales should be new models. she says gm wants to be the technology leader. the new cadillac ct6 will have a hands-free option for driving on the highway. for the first time in 2 decades, automobile workers have rejected negotiated by their union. there was a contract with fiat chrysler. they were not happy the deal does not bring an end to the two-tier wage structure. they will try to figure out jerry and thee workers for bowles wagon are feeling the pinch from the initial -- their next move. and the workers for volkswagen are feeling the pinch from the

omission scandal. they are basing fines, recalls, and a drop in sales. billion seven set aside to cover this scandal, but more baby needed. in oregonstores opened today to begin sales to recreational users. store owners hope they can avoid shortages and price spikes that happened in washington and colorado, the only other states where marijuana is sold recreationally. toijuana buyers do not have pay sales tax until january. the fertilizer maker mosaic is settling a lawsuit with regulators to resolve claims of 6 the mishandling billion tons of hazardous waste. it is material produced in production of a common fertilizer. it spent 600 acres in florida and louisiana.

donald trump says that syrian refugees could be a terrorist army in disguise. last night in new hampshire the candidate told an audience what would happen to syrian refugees under a trump presidency. mr. trump: as part of this mass they are -- if i win, going back. they're going back. i know a lot of people will say, that is not nice. we cannot afford to be nice. we are taking care of the whole world. wants to know why the syrian refugees are not fighting to save syria. those are your top stories at the moment. there is a lot of talk about a potential bubble for unicorns, companies that have valuations of at least $1 billion based on the money they have raised to pintrest.airbnb and despite concerns of these

companies being able to live up -- they're looking for new unicorns. they think this may the ending because of volatility. quickly, what is trinity ventures? >> and early-stage module capital firm based in the heart of silicon valley. we invest in technology companies and consumer companies. pimm: you have the backgrounds to assess the current market. given a question of unicorns, is it likely that these firms are hesitant about adding to that pile of billion-dollar valuation? it is hesitancy. we look for a great looking companies. what we are concerned about is market volatility. that is something that folks are not appreciating as much with the downmarket. even if the market is not

dropping volatility, investors focus on profitability more than revenue. venture capital businesses are all about revenue growth. if they do not want to invest in revenue growth because they want to invest in profitability they could have a difficult time. available ormoney sitting on the sidelines, meaning someone says you can have the money, but call me before you spend any because i'm not sure i want to do anything. about $10me around, million of the venture industry in the u.s. is a $70 billion investment market. it has doubled. amount isunt of that coming in for mutual funds, hedge funds, and international companies -- pimm: nontraditional players? >> absolutely.

those institutions are most acutely sensitive to volatility. if you take $10 million of that bucket and move it out, that could create challenges. pimm: is there a likelihood these are unsophisticated investors and venture capital and they will get out at the wrong moment? >> in the 1990's that happened for some asset classes. there are sophisticated investors in that $10 million bucket, but their goals may be different than traditional venture capitalists. they may be dabbling. it may be sophisticated and say it is time to move on. pimm: other specific types of companies that are more attracted to venture capital funds than others? >> the ones that are related to cloud-based services and mobile. we are in the early days of the smartphones. how consumers and innovators use telephones in their daily lives. pimm: do you have pushback from investors with ideas that have

been presented because of the volatility? >> we have seen that and we have seen antidotes -- incidents. companies have been very active in investing in the u.s.. their market is down 40% since june. they're focused more on internal issues rather than investing in m&a. pimm: they are source of funds that may be focused on other things. mutual funds, hedge funds, nontraditional venture capital investors -- are they stepping away? are they saying this is not our area of expertise? >> early signs are they are paying attention to that. we will see. pimm: that must mean you're getting more telephone calls now than you were. butnecessarily rah rah, wanting you to go into detail about why they should part with their cash.

the unicorns -- where are the next ones? , they seem to have a social sharing market as part of their business strategy. which was are attracting money that will be the billionaire companies in the future? >> there will continue to be more unicorn companies in financial services. it continues and is a great-looking company. student loans that are more affordable for students. that marketplace was disrupted. pimm: they used a technology platform. what about peer-to-peer lending space? a lot of-- gus: companies are in that area. i'm not sure if there will be new ones, but existing ones are doing well. we are bullish about the emerging health and wellness companies.

confidence inur institutions, can we count on medicare and medical systems? how do we empower ourselves with information and become better decision-makers in taking control of our life and well-being. pimm: you have to act as your own doctor and health advocate. i'm looking to see if you have a fitbit. gus: i did not want to create a buzz. i do have one. pimm: thank you. the general partner of trinity ventures. still ahead on "the bloomberg market day" one company ignoring market swings and wanting to be one of the largest public offerings of the year. coming up. ♪

pimm: this is the "bloomberg market day." we are hours into the trading session. let's get you caught up on the market action. in asia, the neck i rallied more than 1.9% in japan. onehung saying finished up .5%. the shanghai composite gained .5%. story, china's factory gauge shows stability in september following stimulus measures from beijing. david ingles has more from hong kong. the latest manufacturing metric at of china suggests that things have not gotten worse. that is below the threshold of 50, but it was better then expected and better than august. of decentgns improvement, especially when you look at output and new orders.

looking at which manufacturers are doing well, it is the larger ones. the smaller enterprises are more pessimistic. private survey came out that was smaller in sample sizes that showed an improvement, but paint a more bleak assessment at 7.2%. improving, but more to be done. pimm: thank you very much. let's go to europe where mark barton is standing by. mark: at 9:00 a.m. this morning, the stoxx 600 was up by 1.5%. it gained on the last day of the third quarter, meaning we can forget about what preceded it. euros disappeared last quarter, that was the worst quarter in four years. since then, shares have been creeping lower. that have been catching my eye are glencore.

earlier in the session, glencore managed to wipe away all of monday's losses when it sank by 29%. wednesday, most of today it was higher. it is 1.8% lower now. it has not quite wiped away monday's losses. is fortune is tied to the price of copper. it is now down. 28% of glencore's earnings in the first half was tied to mining copper. stirling is rising for the first day against the u.s. dollar, 1/10 of 1%. it was better than estimates, but down on previous months. what stood out was employment fell for the first time in 2 years, indicating concerns among executives on the outlook. a measure of new order slips to match the weakest this year. on the bond market, one stands

out. yields in spain fell to the .owest in two months the concern that the lead up to the catalonia election has passed. we had a successful three-year and 10-year bond market. what stood out was factory gate prices in september fell for the first time in six months. that adds to deflationary fears that the ecb will have to press back once again. >> that is done. in the u.s. we had the manufacturing gauge that showed relative weakness. you can see, all drivers are down, but they are off the lows ism they reached after the number came out. continued weakness after the sunny looking day yesterday. we are at technical indicators. trying to figure out what happens next. there is, perhaps, some reason

for caution. you have a lot of bowls. -- of bulls. onare looking at the volume up days. on up days it is green, down days is red. eyeballing it, you have more higher ours that r-rated than green. in other words, the volume on down days -- you have more higher bars that are in red than green. in other words the volume on down days is up more. since last december this shows a downward trend. another way of calculating volume versus price on up and down days, it is trending lower. that is one way tech nations are talking about it. i got this off of the bloomberg terminal, ffm, which walks you through the functionality. remember earlier in the year,

over the summer, we were talking about how some of the largest , their strength might be masking more broad market weaknesses. that seems to be continuing. for the year, we are seeing the s&p 500 down 7%, that is the white line. 8.2%.ed indexes are down the us equal weight index made a new low with the year on september 28, a few days ago. the s&p 500 made its low on august 25. we are seeing a more broad measure of the market continuing to decline and show weakness, even as some of the larger cap stocks are supporting the s&p 500, supporting the idea there is more weakness to come. one more point, seasonally trends have shown going back 50 years, a bottoming pattern in october before stocks rise going into the last part of the year.

maybe this is all part of the bottoming process. pimm: bottoming process. thank you. look at the equal weight s&p 500. a contender for the biggest initial public offering. data core -- data corp. wants to raise $5 billion. thank you for being here. tell us a little bit of the history. this is a kkr deal. >> there was a saga. kkr took this company private or $30 billion in 2007. they struggled through the recession and it saw the value of their investment, $3.9 billion in equity. they saw that value come down 40% through the recession. they replaced several ceos. as mr.street he is known fix-it from j.p. morgan who took

over in 2013. they hope to take this company public for a nice return. pimm: what kind of valuation would be estimated? andhey said terms yesterday this morning looking at the high end of the range, $20 a share. the offering would be $3.2 billion, from the company $7.5 billion. pimm: what was the deal? they put in $3.29 billion? >> there is a difference between the equity and enterprise values. i'm crunching the numbers and will get back to you. atlooks like kkr is sitting 5.3 billion versus the 3.9 billion they put in. that is the biggest equity that they have made. pimm: this would be a good exit? >> potential he. we will see how it prices. there are marketing for $20 a share. we had a smaller ipo place trade

today, bringing down the ipo leis from the marketed range, coming in low. with the volatile markets it will be interesting to see. since this is looking to be the biggest ipo of the year there may be more investor excitement, but the company has not posted a net profit on an annual basis since it was taken private. the first quarter of profit growth, positive profit, was last year. there are things to consider for this company that is looking to be the biggest u.s. listed ipo. pimm: as a kkr deal, why would they want to do it now? >> they hold $21 billion in debt . pimm: what we would call high-yield debt? >> the proceeds will go toward paying down some of the debt. we have seen competitors come into the market and they need to have the agility and cash on

hand to be able to keep up, as we have seen the tech payment processors get into the field. investors like when you are paying down some of the leverage. pimm: particularly for high interest rates for the money. high-yield debt that you can refinance at a lower rate. is kkr selling? it was getting rid of their sales? >> a lot to seems to be going to the company. we will keep a close eye out when the price srts tring. the overall market for initial public offerings has to be in the context of the sell off we have seen in the last couple of years. >> a very slow year. this is the first offering since a sell off a couple of weeks ago and since the holiday. investors are looking to see how this one prices and trades as other companies are considering ipo wing. -- ipoing. pimm: how new york real estate

gotionaire larry franklin his start. you can find out his strategy today. that is coming up. ♪

pimm: this is the bloomberg "market day." i am pimm fox. before larry friedland found his calling, he was studying to be a pharmacist. that changed when he met nathan miller. the man that larry friedland says taught him the business. for more details, i want to bloomberg's caleb. buying property says the 1960's. he started in harlem and bought storefronts for $300,000. he had three mortgages and a

bank loan to make it work. he has been buying all over the city. -- an become an excerpt expert on madison avenue where he owns more than 20 buildings. pimm: he is not afraid of vacancies? caleb: no. he believes he want a good tenet that will be there for a long time and add value to a place like madison avenue that has a lot of a l -- a lot of allure. fill in acould storefront anytime i want, but i want to make sure it is luxurious. her people put high-end retail products. he does not want to put the wrong tenant in and offend the rest of his tenants. pimm: there is more to shopping, for some, than retail. garages i understand, as other developments? caleb: he owns parking garages and has built 2 apartment

buildings. for the flatr plan iron district. he owns storefronts throughout westchester county and the bronx. with him, whatng did you come away with in terms of his acumen were assessing the situation of real estate? caleb: it was fascinating. what is a good tenant? what is the larry friedland a static? he couldn't put a word to it. he said polo and ralph lauren, these are good tenants. you get the sense this is a guy that knows instantly what he wants. he knows every transfer throughout the city, and he knows immediately whether a building is worth his time or not. pimm: he knows the high-end market. ralph lauren and dolce and gabbana are high-end tenants. it was $1600 a square foot? caleb: $1633 is the average.

pimm: $1633 a square foot. caleb: that is the rent. pimm: that is the average? strip ofr the prime madison avenue. the expectation for everyone is that it is heading out. when you look at sales prices, you get the expectation that is what everyone is expecting for the strut. pimm: you can read the details of the story on bloomberg.com. in the next half hour, not miller joins me to look at how the auto industry is shaping up as we go toward the close of 2015. this is the bloomberg "market today." ♪

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pimm: good morning.

i'm pimm fox. pimm: and --matt: and i matt miller. the situation in syria gets more serious -- russia carries out airstrikes overnight and pledges to continue. , and ford, chrysler general motors enjoyed a strong september sales report, but the companies face challenges beyond the numbers. industry credit card has had today marked on its calendar for a long time -- the liability shift is finally here. we will tell you why you should care later on. pimm: now a bloomberg exclusive reporter justrg sat down with the chief executive officer of societe if financialasked markets have gone overboard in reaction to china's slowdown.