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.

>> i think there is an overreaction to something that is not going to be a surprise. we could have seen the first sign of a slowdown, but at the same time, if people think china certain sectorin there is a capacity and we know about this capacity to change into a more consumer driven model. we might see lower growth than expected in the next two or three years, but i don't think about that situation. a blowup in the equity market that really had a global impact in terms of our view of commodities. lehman-ask -- lehman-moment? frederic: i don't think we will

see the same thing in the commodity sector. the question is how long will it last? what predicted the decrease, who can predict the increase we might see? the euro andere u.s. should do well into 2016. i don't think there is a systemic element there. banks have built big businesses on commodity businesses. that theoncerned commodity right will have an impact in terms of numbers in 2016? i don't think so. we have two think 10 years ahead. it's an important sector and a global one. second, and what is important is

to keep an expertise in these sectors. the major recipe for success going forward in this volatile world where at the end happen --, crisis can you could have predicted this situation in russia two years ago? the management of the concentration of risk -- eat have a balance for your businesses and avoid an over concentration in the sector which means whatever happens, you will not suffer so much and be able to carry on with your business. is the market volatility going to impact your numbers in this quarter? that the on said the fourth quarter, the kind of act two volatility parameter has not helped the trading

conditions. but the on this, what is good in the long term for us is that with people looking at this , for me, more than ever, we have a good focused business model. chief executive officer of society general speaking with manus cranny. positive i said he's reason next year, he believes the federal reserve will raise interest rates in december. with go to julie hyman for a look at what's happening in the markets right now. julie: i'm going to start outside the world of stocks for a change. the most notable thing is what's going on with the 10 year yield. because theresting fed has been telling us that we will be hearing from some fed

officials and maybe their comments will change sentiment. thatee that we haven't hit near 2% level in about five weeks. before that, we only had 2% level before may. we have been trending downwards at a time the fed is indicating we will move upward. they are looking at fed funds futures. it helps to measure the probability for the various meanings. being priced in, a 40% chance at the december meeting. we don't get a 50% chance until january, and it goes up to 65% for the march meeting. getting back to stocks, if you look at what is going on within the major averages, you have .aterials rising

let's look at the averages overall. averagese the major are going lower. still above 50, still signaling and expansion, but the weakest level in about two years. take a look at some of the big some apple suppliers are saying there's going to be lower demand. microsoft and cisco also declining. the general concerns persisting about global growth. pimm: thank you very much. concerns about mobile growth. with could you cut up on the top headlines at this hour -- russia

.as changed its tune in syria when they ago, russia said it launched airstrikes to defeat islamic state terrorists. excuse for that's an vladimir putin to prop up syria half leader, bashar al-assad. bloomberg surveillance spoke about russia's motives with retired general richard myers. general myers: the first thing is to maintain their alliance with assad regime and then have some influence in middle eastern affairs. i think it's way down their list to fight isis. but that is the cover they are going to use. pimm: russian officials say overnight it launched for more airstrikes in syria. staples says it will be closed on thanksgiving day this year, a sign retailers may be pulling back from the expanded holiday hours of the past.

the largest u.s. office supply chain will open at 6 a.m. the following day for black friday. that's the traditional kickoff to the holiday shopping season. this year's plan marks something of a retreat. last year, staples opened for four hours on thanksgiving evening. the number of americans applying for first-time unemployment benefits was slightly higher than anticipated. by 10,000.ims rose it's near a decade low in the total number of people receiving benefits was the smallest number in 15 years. first data wants to raise as much as $3.2 billion in an ipo according to a regulatory filing. kkr took them out of private eight years ago for almost $30 billion. those are some of the top stories we are following for you. coming up in the next hour of -- therg's market day

third quarter nearly set a record for private equity deals. what will we see in the fourth quarter? pimm: credit card issuers were once responsible for the cost of credit card fraud, but today, that all changes. why retailers must upgrade to a new point of sales terminal that involves chips. selecteders board has jack dorsey as the chief ecutive, making his position permanent after three months ago stepping in on an interim basis. the stories and more coming up on the bloomberg markets a. -- bloomberg market day.

pimm: this is the bloomberg market day. i'm pimm fox. matt: i'm matt miller. the auto industry is rolling out

it september numbers and enjoying a better than expected performance. fiat chrysler sales are up 14% point 5%.up 12 but while auto sales soar, there are a series of regulatory scandals in the spotlight for carmakers. bringcloser look, let's in the vice president of industry insights. let's get the good stuff out of the way. it's not just the regulatory issues -- we have the uaw story, but sales were amazing in september. eric: we are still seeing sales numbers come in. we are looking about an 18 million unit start which would be our biggest increase, so fantastic news for september sales. its: and fiat chrysler with 66th consecutive month of sales -- it's in the spotlight for the breakdown of its talks with the union or at least the union voted against the contract the

fiat ceo agreed with his union counterpart. what does this mean? we do tend to see this happen every few years when union contracts are renegotiated. it is part of the posturing back and forth. it's unusual to see a full-scale stoppage and shut down as a result of union talks breaking down. matt: what is selling and what is not? eric: what is clearly selling our trucks and suvs. we have gas hovering just above two dollars a gallon nationally and that's fueling demand for the pickup trucks and suvs. they are flying off the lots. dealers are having a hard time keeping them in the showroom and there are a bunch of new vehicles out like the ford f1 50 is just doing phenomenal. the ram and cheap kerekes -- the

ram and jeep cherokee are doing great. --m: full flagon sales just volkswagen sales just came across. they don't have an off-road pickup truck or any truck to speak of. they were able to manage a gain of .56%, better than the drop we were looking for. but obviously they have more problems ahead. what do you expect for this brand in the u.s.? volkswagen has been suffering. their suvs have not been very competitive. they were just starting to turn the corner with the golf lineup when the omissions scandal happen. we were expecting a slight drop year-over-year and it sounds like they managed to squeeze out a slight gain.

but that's an erosion of market share. they are clearly going to lose their diesel business, which counts for about a quarter of their overall sales. but saying they are going to be completely out of the market is extreme. what we have seen historically is even with these massive pr scandals and recalls that have existed in the automotive landscape, we rarely see a long-term erosion of market share or transaction prices. if we look at historical precedent, that's what we see happening. pimm: previous -- matt: previously you didn't have cars that were poisoning people. it is illegal to sell them now. eric: they do have a stop sale and the one untested part is the manipulation and blatant lying. but remember, gm recalled 30 million vehicles that sit -- that resulted in scores of

deaths in occupants of their vehicles as a result of the faulty ignition switch. when we look at historical precedent, it tells us most of the automakers have come out relatively unscathed over the long-term. what's important for folks flagon to do is address the issue with the consumers, the breach of trust. they've given lip service to that. the next up is to put a plan into action and make amends with their owner base. pimm: can you comment on the trends that the cabin of the automobile is now an electronics up to mark what are the options people want most and who benefits when they buy them? of the top features we are seeing now have to do with connectivity and safety. we see features like blind spot detection, automatic emergency braking, things that are more active safety features and that is a win win for everyone

involved. everyone from owner occupants of the vehicles and pedestrians as well as insurance companies. we are seeing less accident and it's going to cause insurance premiums across the population to go down. teslaonnectivity, famously has this giant screen that's sort of an ipad on steroids and we see more and more that manufacturers are investing in that type of technology to replicate the experience we know and love honor smartphones in the vehicle. i think we will continue to see that trend evolved more and more in the future. pimm: thank you very much for joining us. is the vice president of industry insights. thank you for joining us. the third quarter is going to be remembered for its volatility with major averages suffering their biggest losses in four years.

but it's also going to be remembered for its amount of private equity deals. -- it's up 56% from last year and there may be more deals ahead in the final quarter of the year. now is our deals reporter, kyle porter. iel porter. >> prices have come off and private equity investors are , coupleding to listen with the fact you have had a lot of activism, it's easier to get done. our private equity investors looking to buy companies from other private equity companies or are they doing what you might call greenfield deals? >> i think greenfield has become more popular. the debtor assets have already

traded. that's where you get better multiple. if you are a big private equity firm now, you have to look public or do a smaller deal using a platform and building it out. companiesng public private again -- we were talking about kkr doing that with first data. it's like they are exiting the deal now. but the trend is to go the opposite way. kiel: the response has been about 300 billion globally. some investors would put up tickets equal and you've got about 500 billion that has to find a home. particularly with equity markets , if you had two or three years of stagnant earnings, you can come and make a compelling argument. tell us what is going on in the technology area. kiel: it's attractive because it has a component.

stickyly have a very customer subscribing the numbers. use the cash flow from the business you already own, let's say software licenses, low capex . kiel: exactly. and a lot of these witnesses have been poorly managed and they can come in and easily identify at least 10% to 15% stafford actions in a lot of cases. matt: these companies are not overleveraged already? that has been an issue, especially junk. are they loaded up? kiel: yes and no. some of the older companies you can look at the fed change the rule earlier this year so it is more difficult to put 6.5 times down.

the latest wave of buyouts are much safer. in your reporting, have you seen any figures that estimate with the projected returns are? what they want to get before they make a deal? most of the sponsors are making 25% annualized return. these what stops a lot of deals. there's no way the sponsors can make the number work unless you leverett to the hilt. matt: when i was a kid, the window was three to five years. that's when private equity wanted to get out of a deal they have done. has that window gotten bigger? kiel: that's still in they want to get out. pimm: they may not be able to get out. kiel: that's what happens. the average time was about six

and a half years. if the market is normalized, you can get back to that three years. pimm: thank you very much. coming up on the bloomberg market day, the thanksgiving battle for your wallet is changing. we will chat about the latest decision from staples and what it means for retailers on the bloomberg market day. ♪

pimm: this is the bloomberg market day. i'm pimm fox. matt: i'm matt miller. fromlers may be retreating black friday. staples is going to close on thanksgiving this year. will others follow its lead? last year -- first of all, staples is the last place -- i'm editorializing a little bit. it's the last place i want to be doing holiday shopping.

i'm not going to bring you a stapler for hanukkah. last year, they were open for four hours on thanksgiving day. pimm: i would take a stable from you. you make a fair point that what also a fair point is because of this change, maybe workers in other retail settings are going to ask or be able to somehow shorten those hours on thanksgiving because traditionally, that's a time when they want to have time with their family, but maybe this will spur them to some kind of action. these are not typically unionized workers. you always say you can put the genie back in the bottle. it would be great if we went back to thanksgiving, spending time with the family, eat too much and maybe hit the bar, but don't go shopping. you are not trend going to stop.

but there is a context because there were blue laws that prevented stores opening on certain days. in germany, that still exist. and it's fantastic once you get used to it. it just doesn't happen. you get used to the fact that on sunday you are not going to go shopping for a tv. about its own business. i was speaking with jeff smith yesterday about whether he thought staples and office depot would be able to get together and he says he thinks the ftc should let them do it. pimm: we have much more coming up on the bloomberg market day. ♪ ♪

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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. matt: welcome back to the bloomberg market day. i matt miller. is bearingoaquin

down on the bahamas and it could pick up speed while approaching the east coast. been -- has become a major hurricane with top wind speeds of 120 miles an hour. computer models show several possibilities for the past. some say will hit the eastern seaboard other state will veer away from the u.s. and head out to the atlantic, which would be preferable. it was a blockbuster month for auto sales. general motors, ford and nissan all beat estimates. ford sales rose 23%. --l flag and sales volkswagen sales unexpectedly rose despite the emission test scandal breaking. we were looking for a drop of more than six. gm plans to replace its almost entire product line over the next five years. mary barra told investors she's pushing for sales growth and says 39% of sales for the

company should be from new models over the next years. she says gm wants to be the industry's technology leader. next year, the new cadillac cd six will offer an option that lets you drive hands-free on the highway. shares of the parent company of dunkin donuts are falling today. they came out with a profit forecast that was smaller than expected. the company says it may have removed too many items from its menu. the markets are closing in europe. for the latest there, we go to mark barton in london. to the rally -- the fall at 9:00 this morning -- the stocks looks hundred was 1.5% higher but it didn't last long. the stoxx 600 falling 9% in the third quarter. tone earlier in

the day. a u.k. manufacturing report did beat estimates although it fell for the previous month. what stood out was employment fell for the first time in two years, indicating concern among executives about the outlook. the eurozone manufacturing gauge .ell from 52 what stood out was factory date prices fell in september for the first time in six months. the ecb,, more qe from that is the thinking. let's have a look at some of the big equity movers over the day. at one stage, it was up 8% which meant it white out all of monday's losses. its fortunes very much tied to

the price of copper. it was up earlier in the session and inched downward. glencore makes about 28% of its earnings from mining cost per -- mining copper. down almost 10%, selling new stock to finance its acquisition of cablevision systems. up the spanish oil company by 3.8 percent today, reaching a $1 billion investments target with the sale of one of its businesses. after disappointing third-quarter, the fourth quarter is starting on a negative note. matt: thank you. have anr credit card emv chip? em the technology is already standard throughout europe and has been for a decade. the u.s. is now making the transition from swipe & to the more secure chip and pin cards

were at least chip &. transition enters a new stage. what is emv? euro mastercard and visa. they set a standard for how chip cards and readers work. chip and pin would be secure and that's why europe has been doing it for so long. a lot of people think we are switching to that in the u.s. sign. is really chip & if you look at the issuers, how many are going with pin? the majority are going with signature. matt: so it is still affordable. easily.

addresses chip counterfeit fraud. much -- pin abuse is a much smaller piece of for. that's associated with if you lose your card. our focus right now is to get the advantages around counterfeit fraud, which the chip and chip alone addresses. pin: why not go straight to ? summary could take my card in my signature is easy to forge. the beauty of the pin as they can do that unless they are in my brain. question.t's a great our focus is to make sure we have a smooth transition to chip. because of the way we are rolling out, or transition is going to happen over time. we want to make sure customers understand how chip works and businesses have time to get their machines in place and ready to accept the chip.

the point of sale experience is smooth for everyone. that's our focus. we at chase are investing a lot in getting the cards out, which is a huge effort. we have 88 million active cardholders right now. issued chip cards to nearly 65 million customers. see's well ahead of what we in the industry. as an issuer and acquirer, that means we are getting machines out to banks. getting everyone up and ready to accept chip is huge. matt: why are they dragging their feet on pin? guest: there's a lot of worry about the hassle it's going to be involved -- matt: in remembering a four digit code? consumers get confused

when you put something new in front of them. they are rolling this out before the holiday season. that different but people have this routine -- they --pe, they put their wallet the card back in their wallet, they grabbed their stuff and move on. the chip, you have to put it in and wait. there's going to be a lot of confusion about that. to addou just don't want another element to the purchase experience? guest: it's definitely true. you don't want to add another element to the purchase experience yet. there are two key areas we want to address -- one is counterfeit fraud which is dealt with with chips, and the second is mobile online fraud. inare interested tokenization solutions. it's a similar type of technology in the online and mobile space where you are

passing a one-time cold -- one time code that can be used for transactions in a digital payment. we are investing our efforts in getting those solutions in place. we are integrating our card products into multiple mobile wallets like apple pay. it's more than just a fun gadget to use that point-of-sale. behind that technology is tokenization and that's a secure form of payment and that uses biometrics. what i envision are we as an industry and vision is in the next few years between chips and digital payments, we are going to see a monumental shift in how they work. will you go to chip in pin? it seems like that is what we need and that is real security. chip: the debit cards are

and pin. on the credit side, the question is still out there. i think it's going to depend on how merchants adopt the technology and what merchants and customers want that point-of-sale. we have a ton of other resources and sophisticated methods for fraud detection. matt: merchants have the liability as of today, isn't that the case? what is happening today. the liability for fraud that happens in your store starts to shift back to you from the card issuers. that's an incentive for these stores to up rate but it is expensive and a lot of small retailers aren't doing it. i think only a quarter of stores have this stuff in place right now. but they are on the hook regardless of whether they've .ade the switch

if someone takes my card and forges my signature at urban outfitters, then urban outfitters has to pay for it, not the people at chase. that: just like today, cardholder is not liable and tomorrow they will not be liable. if there is a fraudulent transaction that happens because someone stole a plastic, the merchant will not be liable if they have implemented a chip and pin solution at point of sale. if they are accepting chip and pin and there's a fraud at point-of-sale, that liability remains with the issuer. ?att: really if they don't have signature in place -- you are issuing chip and signature cards. guest: your question was if someone steals your card and there's no pin, will the business be liable? they won't be liable if the issuer has not issued a pin. you will keep the

liability until you do issue a pin. so the banks issuing cards with pin are able to pass the liability completely? guest: there are a lot of choices here between the businesses and issuers in terms of how things are being implemented. bank issuer perspective, we want to make sure customers can use these cards easily at point-of-sale. we are willing to take that risk in the near term around pin to make sure they're a lot happens smoothly. trade-off.at is the liability for ease of use. thank you for joining us. break, word from new jersey governor chris christie that he's declaring a state of emergency for new jersey as hurricane joaquin follows a path that could bring it near the east coast i the weekend. we will continue to follow these developments. ♪

matt: welcome back to the bloomberg market day. i'm matt miller. should we take a quick look at markets? markets have followed across the board, the dow jones down about 107 points. the s&p and nasdaq down as well. let's take a look at some of the news behind these numbers. american factories are feeling the pain of the strong dollar. manufacturing stagnated last month because of weaker demand overseas. -- the isne index fell to its lowest level in more than two years. coca-cola is changing the label and vitamin water to settle a lawsuit. coke was accused of making misleading health claims about the drink. they will add the words "with

sweeteners" in two places on the bottles. at least one investment stayed hot in the third order -- apartment in manhattan. s and co-opsrtment were up about 10% from one year ago. a million bucks is the median price break pad in new york. those are some of the top stories we're following at this hour. still ahead, madison square garden still looks the same from the outside, but starting today it looks very different as a company. we will be right back.

$14: euler packard raised billion after the worst september global sales and ears. accused hp of

damaging his career with false statement to the fallout from the two companies $10 billion merger, lynch is suing hewlett-packard for at least $160 million. for more, let's bring in cory johnson. i want to clear up one thing -- i said $10 billion merger, but there is no such thing as a merger. and one hewlett-packard has a dearly for. let's talk about what hewlett-packard did in raising debt -- they sold 14.6 lien dollars in bonds -- that would do you $10 billion of autonomy and maybe $4.6 billion left over. let's talk about the acquisition that went bad. they spend $10 billion to buy this software company that appeared to be smoke and mirrors after they got it, at least according to hewlett-packard. they accused mike lynch, the company's founder and ceo for

participating in some crummy accounting and wrote almost $8 billion of the deal off right away as a worthless acquisition. mike lynch is suing, saying the statements they made about him were not only incorrect would have cost him down the line in other business ventures and he should be paid $140 million as a result. but in the context of this loan, of these 210 year bond offerings, it's worth looking at the way the market is looking at hewlett-packard. this is investment-grade that and yet they had to pay 2.9% interest rate on this, a full 50 basis points higher than any other investment-grade debt of the same rating. the market has 50 bits of substantial doubt on a big issue. think that is?u have the ratings not caught up to reality? cory: the market has a greater concern about that issued by

hewlett-packard because of the way they have done things in the past, because of the director of those of the hewlett packard companies -- the enterprise company where this debt is going to go. matt: they are trying to provide software services. cory: a theoretically higher notin, though in practice only is that part of the ,usiness shrinking, not growing but also this hp enterprise business is not only declining, but they are going to have to restructure the first day of the gate. imagine if you built a new house and then you say you have to remodel the kitchen the first day you open it up. this one is going to come with $14.6 billion in debt. somebody who is constantly remodeling no matter what, it would not surprise me. very much.

cory johnson on hp raising money. a 6:00 tonight, we will have bloomberg advantage special posted by cory johnson and carol massar. it will be an hour-long discussion on technology on bloomberg television and bloomberg radio. i'm going to wager you can get a hold of that online at bloomberg.com. inison square garden split two. family which owns msg spun off its sports television networks from its sports and entertainment properties. the two entities again trading this morning. joins us. you told us this was going to happen. david: september was the date of record. you had this company that got very big -- they have all of these sport teams -- the rangers, the liberty.

also a lot of property they own and lease. matt: i will be going there tonight to watch joe walsh play if you riffs. david: timely. the company did split last night and we see them trading today for the first time. the network component was down pretty early on. the other company with these other entities -- it's fueling a lot of speculation about what might be happening and why the dolan's emily might have done this. wanting this to happen -- the company was not good for shareholders and not able to make acquisitions. matt: typically you want to spin off a piece of the business you don't think the market is realizing the value of. straws.st grasping at this is something where they think they are undervalued and want to get a hold of more.

david: cablevision spun off madison square garden and they're still going to be a relationship between these companies. deals went through, they signed media rights deals with medicine square gardens and they will continue airing this games. matt: we are going to talk more about this later on. but right now, i want to get today's options insight. am jealous about joe walsh. but let's talk about stocks -- we are seeing declines across the board from the major averages. isn number coming out with a lower rating than economists anticipated. let's talk about it from the options perspective. an investment advisor at equity arm or investments. he joins me from the cle in chicago. we have a pullback that has accelerated as oil prices have come off their highs.

interesting correlation we see between equities and commodities. joe: this has been the play for the past month or so since the volatility started. currencies,ed to currencies are driving the dollar and the dollar drives the commodities and it's also tied to the global growth story. as global growth except and as it slows down, commodity prices fall and that drives the market annex when we see these correlations. higher correlation is tied to volatility. interesting to note, the vix is not up today. that's telling me the vix is looking forward to a bigger move tomorrow. we have a lot of aided tomorrow which could certainly drive the markets. about speaking commodities and commodities-related trades, you are looking at chesapeake energy. this is the third worst performer on the s&p 500 year to

date. the company said it would be cutting some jobs. you have a complicated trade, if you will. walk me through it. joe: i'm looking at a risk reversal for january. one reason i would do that is it is badly beaten and i think it has potential to the upside. risk reversal will look like a long stock position but in between, it is going to be flat. i'm going to sell the january 6 put, collect $.85, by the january 8 call and then collect $.40. so i'm the winner of $.40 and below six, i would get long stock which i would not mind at that low level and have the potential for the upside. if oil were to rebound, this stock could pick up to the upside and it's a way to

cautiously get into the trade. it's a safer way than buying the stock outright. julie: what do you think of the moves chesapeake is made to shore up the business? is that going to be enough to help it? joe: they are not in any danger of debt restructuring, so that is helpful. i think it's going to be tied to how oil does. way,: chesapeake, by the is down more than 3.5%. we will keep an eye on that january trade. appreciate it. stay tuned. we have much more bloomberg market day coming up. ♪

matt: good afternoon, it is noon in new york.

automakers have a huge month as labor day saiz -- labor day sales set a new september sales record. >> bernie sanders is not only closing in on hillary clinton, the $12 million secret to sanders's success. today check of the markets. julie: we are seeing a version of the selling right now. we had markets stable overnight as we had chinese manufacturing data relative stability. then we got the other manufacturing numbers from across the globe. things started to turn south, particularly here in the u.s.

when we saw the third straight monthly decline. also, you have what is going on with oil prices. oil showed a pretty strong rebound on the chinese and -- the chinese numbers. we have seen a pretty tight correlation between stock prices in the u.s., the white line, the has500 index, but the trend been downward. men then here is the oil prices in yellow. the daytill higher on -- it has been changing pretty rapidly. the you see the trajectories also down. so this correlation coming back to the same reason. these concerns about global growth. i want to look at the imap. it was already. now it is all mixed. some materials, energy, which earlier had been higher, had been supporting the market. now it is down half of 1%. so that was wiped away. utilities remain the

worst-performing group. we also have tech that is dragging on the overall averages as well. david: movies was out this morning with a report on coal production. julie: the coproducers are doing very poorly today. , the double whammy of the oil coming off of its highs. what does movies say in particular? it says thermal coal prices, which have been under a lot of pressure, meth coal under pressure, 50% of the worlds production capacity according to moody's is uneconomical. this is something that maybe be well known already to some extent. coproducers have already been under a lot of pressure this year. but this exacerbates of the selling we have seen. peabody energy and arch coal also down very sharply today. thank you, julie.

david: ford, fear chrysler also had double-digit jump. matt: fear chrysler -- fiat kept up as well. the odd one out is volkswagen pyramid the wake of its , jamie, vwcandal surprised with a gain, tiny as it was. it has never been a huge player in the u.s. market anyway. jamie: they did join in the andy, like everyone else, beat estimates and soundly. but a far lower pace of gross than we saw with everyone else. bigad sort of the

automakers come out of the japanese and the americans, had the most and vw was half as that -- half of that at 6%. beat. the golf did well. it continues to do well. they have really expanded that line. but they are not participating in the same growth. they are going to lose market share in this month. the troubles is continue for the brand and the company. matt: gm was 12.5% growth. was 14%, so they are all double digits. jamie: jimmy had easier counts them before and they are running plans -- f-150

plans. broadly, it is the pickups where ford is doing very series, and also the suv's, the edge of escape, a vital that really is part of ford's business as it is for the entire industry. very important. matt: you mentioned the uaw story. that stole the spotlight of the sales numbers today. if they can't agree with fiat chrysler and they were hoping to get the juiciest deal from sergio, how will they get a better deal from barra or from fields? jamie: dennis williams at the uaw took a counterintuitive strategy. traditionally, you go to the

healthiest automaker first and try to get the best you can. and as best you can, for sailor to into taking the same deal. he went a different route. he went to sergio who has the weakest now and thought he could get sweeteners added by gm and ford. but the problem with going to the weakest one, you're taking the worst deal you would accept. and the members did not like that deal. maybe their expectations were too high. there worries us for everybody, signing bonuses, a lot of positives for the workers in that. but not as much as they had come to expect. so we see a sound rejection of that at fiat chrysler. and does the uaw want to go back to sergio and get more or do they want to move on to ford and gm where they can get a better deal and have a better conversation with their members and get something passed? matt: why did williams go to fiat first? is he friends with marchione? they have the most tear to workers, right? jamie: that's right.

he hasn't told us. he has not explained his choice of that. but he has said and they have demonstrated over the years they do have a good working relationship. the have dealt with each other a lot over the years. there are a lot of workers who want to get rid of this two-tier system. so the people who were hired sense 2007 get less benefits and less pay come even do -- even though they do the same job and work side-by-side with slightly older workers. sergio marchione wanted to get rid of that answer to the members. at the way to do it was totally different. marchione wanted to pull down all the higher paid, $60,000 a year guys. wanted to lift everyone to the $60,000 wage. -- so they gave both a raise but kept them separate. the members all thought that they would come up to $30 an hour.

so it will be curious what they can do to try to get these members to want to go -- they haven't struck for a long time. they feel like they have made a lot of sacrifices. the companies are making a lot of money. the sales are doing great. and they want some payback. david: we've talked about the effect of energy prices for months now. when you look at these reports, how is that affecting things? jamie: it has been going on for like a year, more than a year. it has really propelled people into the suv's and is probably helping the pickup sales, too, as we see more going on in housing. the engineers are so much better now at making suv's on car platforms. you have all that extreme utility. you give up a little bit of fuel economy. gas, even $3.50 gas, i take my chances in giving up a little fuel economy to get trunk space or third row us -- third row of seats. matt: and you get seven years of financing.

one not stretch out and get more car than you can possibly buy right now. it is just so fun to drive. we will take our chances and feel effects of it later. jamie butters covering cars for us out of motown. i want to get to the top stories we are following at this hour. russia has changed its tune in syria. a day ago, moscow said it had launched airstrikes to deceit -- to defeat islamic state terrorists. the strikes are aimed at other terror groups as well. critics say that is an excuse to -- twobashar al-assad top up basher al-assad. >> the first thing is to maintain their alliance with the .ssad regime and to have some influence in middle east affairs. down theiris way list of devices, frank lay.

but that is they will use to help the regime. more on this have shortly. i think there's a lot more coming out of the yuan as well. in fact, i am -- out of the u.n. as well. in fact, i am watching netanyahu. night in new hampshire, the republican presidential front-runner told an audience what would happen to syrian refugees under a trump presidency. mr. trump: as part of this mass migration, that if i win, if i win, they are going back. they are going back. i'm telling you. a lot of people would say that's not nice. we can't afford to be nice. we are taking care of the whole world. we are losing our shirts on everything we do. matt: trump us to know why the syrian refugees aren't fighting to save their country. is -- united states ceo ceo is apologizing to

passengers. the airline has been plagued with chronic delays, computer outages, and a satisfied workers. stables will be closed on thanksgiving day this year, signs that retailers may be pulling by -- pulling back from extended retail hours. last year, staples locations opened for four hours on thanksgiving evening. hour, up in the next half we will turn to syria where russia is carrying out a new round of airstrikes. who are they targeting? matt: and we are getting ready for the largest ipo of the year. it could raise more than $3 billion. david: running behind donald trump, but dr. ben carson is fast becoming one of the top fundraisers in the presidential race. ♪

david: let's get a check of the markets. julie: a lot of down movers in particular. at twitter. remember, yesterday, we had the report from rico that jack dorsey would be the permanent ceo of the company. the has been no confirmation as of yet that that's happening. an announcement could come as soon as today, but no news yet. i wanted to walk you through the past 24 hours. this is a two-day chart of the stock. out,the rico story came the stock came down but climbed through the close. , havingome down today the worst day since july 29. so the stock really soderling

wishing here. there is also some debate as to whether dorsey is the correct choice for ceo. that notwithstanding, the stock has really been battered this year. absence of a permanent ceo, but also by several negative announcements in terms of its earnings. speaking of its negative announcements, let's look at dunkin' brands today. company stuck with its forecast, which is below analyst forecasts. franchisees are concerned about higher minimum wages. they are raising many places -- prices in the u.s. it is also tough on workers because of the employment market. shares ofo looking at apple, trading at about a one-month low right now. now nearly 2% after a report in mes that suppliers are

concerned about orders and about demand, especially from the semiconductors. finally, we're looking at tesla today. there doesn't seem to be a sharp catalyst falling in the wake of the announcement that it is coming out with a model x, the new suv with all the bells and whistles. the stock is down 4%. there is some talk about competition within the elected -- the electric market. the new chevy volt will hit showrooms soon, at the end of october. it will be much less expensive than the model x. i bet you, matt miller, would argue it is targeting a different customer base entirely. exactly. the model x starts at $132,000. is $40,000 before you get any of the government discounts. it is a luxury product. and there is really no competition except for like a

bmw s 6 maybe. --aserati quattro portray maserati quatroporte. julie: there seems to be a lot of enthusiasm for the model x, right? matt: yes. elon musk's presentation was widely panned, said to be one of the biggest pr disasters of the year. a lot of people were waiting hours on end. the stream was bad. but at the end of the day, people will want to buy as many as they can make. so the only thing that would be better the company, if they cannot make as many as people want to buy. julie: which has been a problem for them in the past. matt: that's exactly right. we are looking at live pictures of the u.n. on our screens. prime minister benjamin metzen yahoo! making some comments.

-- prime minister benjamin netanyahu making some comments. important platform for him. u.n. the fourth day of the talks. there is a lot for prime minister netanyahu to respond to today. another prop as well. matt: he is good with his props. i like it when people have props. i feel like i connect more with an audience when i have a prop. but people are not for props. in any case, if you want to follow along, you can watch benjamin netanyahu at his book there on live go on the blumberg terminal, if you have a bloomberg terminal. you can follow the entire u.n. assembly during the meeting. russia is saying it is not

planning to expand airstrikes to iraq. but russian warplanes did carry out a fresh round of airstrikes in syria. the russian defense ministry said it targeted the islamic state terrorists. some argue that the real aim is any opponents of syrian president bashar al-assad. david: this is a critical moment in u.s.-russia relations. and comes days after putin obama shared a public and awkward handshake. of acurious how much surprise this must be to americans. at theas this meeting u.n. between the two leaders, by president clinton -- but president putin has been unabashed that he would have the back of a sod for a long time. anybody i don't think until this week felt they were serious about doing airstrikes like this.

militaryore aggressive action that they have done in the former soviet region in decades. the world is still watching to see where this goes. about whom do know the russians have targeted so far? after isis fighters, it is clear that it is not in fact the case. bigory: that is the uncertainty right now. the russian defense ministry said they are targeting isis. but other regions where they said they did the 12 targets overnight and yesterday aren't areas that are traditionally held by isis. they are a little further west of the country, closer to the syrian army strongholds. looks like some of those could be other terrorist groups today. foreign minister law brought was at the united nations today and said that it wasn't isis, but any terrorists that russia's going after and would not draw specifically on whether russia would target groups supported by

the united states. they dried to say that russia and the u.s. are very much on the same page in terms of targets. i think washington would tell you that the jury is still out on the question. matt: when i watched president day, he washe other convinced there might be a chance that washington could get on the same page with him as far syria's concerned. optimismthat kind of that u.s. and russia would fight together? gregory: i don't think you see them formally bonded in any sort of coalition. ultimately, they still have a fundamental difference on the syriaf president assad in , the u.s. viewing him as part of the problem and russia seeing him as potentially part of the solution. but what you might be seeing is the possibility of behind the scenes coordination and a sense

that, with a common enemy in the form of isis and other terrorist groups, there might be room for some sort of coordination. the russians argue that their operations will be more effective than a year-long bombing campaign that the u.s. has mounted because the russian bombings will be coordinated 'sth a sod's -- with assad army, something that the u.s. will do. matt: still ahead, it could be the biggest ipo the year. david: seeking to raise as much as 3.2 million -- $3.2 billion. we will have the next.

back to bloomberg market day. let's get a look at the headline stories. in china, cuts may be showing up

in manufacturing. we are down to a three-year low. markets are reacting to china. manufacturers are being hurt by inflation. american manufacturing stagnated in september. paceuarter hit the slowest since november 2012, that is according to the index. is the third straight decline and the weakest reading since may 2013. teva pharmaceutical has agreed to buy rimsa. it is part of the strategy to grow in emerging markets. james bell has been elected to the board of directors, the move boosted apple's directors. cook says that he

brings a wealth of global and financial experience. next half hour, auto sales are at the highest level in a decade. we will look at which company scored the highest gains. we will look into volkswagen and glencore, and we will preview tomorrow's jobs report. politics, bernie sanders is closing in on hillary clinton in the poll, but he is pulling in the cash. let's start with the democrats. has arstand sanders broader base of supporters that secretary clinton does. >> who is giving is very clear. bernie sanders passed the one million mark in terms of individual donations. grassroots donors.

hillary clinton is winning the money battle. she has brought in $75 million. at her targets are high dollar donors. that is what led her to the $20 million this quarter, $47 million last corner. she goes for the traditional fundraising technique. bernie sanders has a different model. what has been most interesting, not only is his ability to tap into progressive and liberal roots, but to get them to donate and donate at a very high level. it's a matter of whether or not he can take that money and actually pivot into the campaign. david: talk to me about the sanders fundraising apparatus. i imagine it is not as big as hillary clinton's. what does it look like? does he devoted a lot of attention to fundraising? >> no, he does not at all.

there is a very good chance that that ends up hurting him at some point. hillary clinton has an outside group known as priorities usa that is supporting her, has $25 million plus in the bank and can attack pretty much whatever they want. bernie sanders won't have that. what he has is the building of a grassroots army. 2004, liberalsin through online engagement primarily have raised on their .wn raising money is one thing. turning it into a real functioning campaign is another. his team is a team that has not been relying on real polling data, hasn't been relying on organization and ground game going forward. that is something hillary clinton has in spades right now. his ability to match that to a level where he can compete is the most important step forward. david: let's look at the republican side. we don't have much data on how they have been doing fundraising wise. by dr. ben carson has raised a tremendous amount of money.

we are talking about someone who is perceived to be an outside candidate now rising in the ranks. million less quarter. especially in the field that has as many candidates as the republican field currently has, the summer months are a tough three months to raise no matter what, even if there are only two candidates. and when there's 15, 16, 17, it is exceedingly difficult. ben carson has brought in $20 million over that period, $31 million since he and to the race. candidate they can last as well. one of the big questions, and we don't have the filings yet, but everybody wants to know how much did it cost for him to raise that amount of money. last quarter, they spent a lot of raising money. the $20 million, a base of support that has grown over the course of the last year and a half, even before he entered the campaign, through hundreds of speaking in age men's, including the -- speaking engagements, including the tea party groups,

pro-life groups, good polling numbers going into iowa and new hampshire. and he has money, too. he is a real player in this just backs that up. let me ask you -- david: let me ask you about jeb bush. is, againectation come i slow couple of months here in the summertime. but he raised about $11 million less quarter. is that he will go above that this time around. likely, almost certainly less than ben carson, but the difference between ben carson and jeb bush is what is on the outside. -- bush is

you are going to have a lot of people who have given a lot of money very nervous. david: but his team is confident those numbers will move. they i have to ask you how are responding to russia. >> it depends on what department you are talking to. was surprised. if you talk to the white house publicly, everything was ok. they were going to figure it out. the truth of the matter somewhere the middle. they were not aware that russia was going to start airstrikes this quickly and they did not

appreciate getting an hours notice from a general in baghdad telling them that this air campaign was going to begin. assembly,. general president obama and president vladimir putin did meet and part of that sitdown was talking about taking sure that, if russian forces came in, there was military communication between those two countries. those talks have continues. thof conversations between both sides have continued. real military to military talks will begin soon if they have not started already. but there is no question about it, they were surprised at how quickly this occurred. they were surprised where and when this occurred. ash carter made very clear yesterday the russian targets, at least yesterday and early in the airstrikes today, have not been the islamist state. there is really concern they are going for the free syrian army, a group that the u.s. backs. there's a different nation of

targets. intelligence points to it. that is a real problem in this relationship going forward and a real problem as a try to figure out how to coexist in the same area right now. david: thank you. sales kick, auto into high year in september. we will look at which companies performed the best. ♪

david: let's get the latest on the market day. my: the s&p 500 index is

down by about 17%. they doubt was the biggest loser right now, down nearly 1%. in the nasdaq is down about .8%. you can see it really has been on a slide pretty much since are open today, slowing growth in u.s. manufacturing may be one of the reasons for this. anything above 50 is still growth but the numbers the weakest since may 2013. -- nymex crude is trading right now, up by about two cents of a percent. this morning, around 10:00 or so, china pmi rose for september, small signs at the

economy stabilizing. in addition, u.s. crude production fell, which did push up prices earlier. crude is down 25% since its peak back in june. you can see that most of the smp 10 sectors are the negative. the only a liar his materials. utilities, some of the biggest laggards. telecom and information technology down by 1.3%. finally, a quick look at bonds. the yield on the 10 year is coming off its session lows. it had is session lows earlier twice in the day. now it is off just a little bit, down by one basis point. it had been down by 13 basis points in the past three days though. that as analysts feel that the fed will only raise rates in 2016. that is about a 50% average in january or so. the volkswagen in

missions scandal did not scare off car shoppers last month. - the volkswagen emissions scandal did not scare off car shoppers last month. they are all clobbering expectations. this is september auto sales data. this is after august when he fourth in the market volatility. these are big-ticket items. at least for september, he did not look like the volatility got in the way of the u.s. consumer at all. how long does it take for volatility to translate and find its way to companies? a joe: you never know. i don't think anyone would have been surprised to see a bit of weakening. we saw other solid data today. we saw the bloomberg consumer comfort index take two's highest level since july. u.s. residential construction

looking strong. if you were to ignore all the stock -- david: if only you could. joe: yeah. the one area that is week's u.s. manufacturing and that is a global story. the u.s. economy is less of a manufacturing economy all the time and it is not as big of a deal is a used to be. david: let's talk about manufacturing of the global effects. why is it so we can will it take for us to turn around? there is a lot of different factors. generally, there is a global slowdown. perhaps m&a in china and it causes slowdown in other countries. everything is interconnected until it is hard to thrive. there is the strong currency as well. the fact that u.s. dollar -- u.s. manufacturers are less competitive because of the u.s. dollar. we are seeing slowness, still growth, but soulless -- but slowness in the u.s.

but still doing better than europe and the rest of the world. david: you mentioned at the top about volkswagen, still doing better than expected. so my secondary has to deal with. deal should change and the fact that these cars were rigged. how big of a challenge is that for them? joe: i don't think there is any doubt this will be a massive challenge for the entire company probably for years to come. in a year -- in addition to the official legal stuff in the cost , there will be a mountain of lawsuits. you can assume by every volkswagen owner, certainly the diesel owners will reclaim their diesel value -- their resale value just got slammed. blew my mind was that volkswagen sales in september actually grew. the scandal hit later in the month. still, economists were looking for a 6% decline. they grew by half of 1%. a guster show how well things are doing.

-- it just goes to show how well things are doing. david: we will keep an ion next month. much.you very now a look at the european market closers. fall after the rally, the at 9:00 a.m. this morning, the higher.00 was 1.5% it was not taking his cue from the united states. it comes after the worst quarter of four years. the stoxx 600 falling 9% in the quarter. china set the town earlier in the day after a factory gave the manufacturing industry is stabilizing. what stood out within the pmi gauge was employment fell for the first time in two years, indicating concern among executives about the outlook.

the euro zone manufacturing gauge fell to 52.3. that is the lowest since april. what stood out in the eurozone is factory gain prices fell for the first time in september in six months. the flechette and, more qe from the ecb, let's have a look at some of the equity movers over the day. another volatile session for glencore. at one stage, it was up by 8%. which meant it wiped out all of monday's losses. monday,record fall on through tuesday's gains and wednesday's gains and thursday's gains, its fortune is very much tied to the price of copper. aboutrse, glencore makes 28% of its money from mining copper. look at that come out these is down almost by 10%. altice is down,

almost by 10%. and the spanish role company repsol is up by three play percent. -- 3.8%. after a disappointing third-quarter, the fourth quarter starting on a negative note. david: china's factory gauge showed signs of weakness. zed: the latest many fracturing numbers show that things are not getting worse. a touch below the threshold of 50. it was better than expected. and also better than august. looking at which of these manufacturers are doing well, it is really the larger ones.

the other pmi read was from shy .eeing small and sample sizes show improvement and paint a slightly more bleak assessment. thank you. coming up, we will get a preview of tomorrow's job report. ♪

david: investors and the third will be keeping a close watch on the latest jobs numbers tomorrow. added to an ity doesn't jobs in september, it is forecasted, but the rate will remain steady at 1.5%. likely to get his some pickup and wages. the average hourly earnings

tomorrow will be incredibly important. wage growth has been stuck at around 2%. there is a good chance that tomorrow we see a pickup up to 2.3% or even 2.4%. think?josh, what do you josh: it would be encouraging to see wage growth pick up that way. but these numbers could be pretty volatile. what i focus on is the body count. what is the headcount of numbers that come through for jobs that were created? the jobs report is really about net aggregate job growth. the focus here is not just on september numbers, but also on the august number. september and august are liable historical -- david: a lot of revision, right? josh: you could have a revision of 20,000 for both of them.

a little bit below the tuna 12 year-to-date average, but that is still a pretty strong number that i think the fed would feel good about. david: there's talk about the lack of wage growth. every time these reports come out, things look at her but only marginally so josh: he does feel like we are in some sort of existentialist literature where everybody is way for the wage growth and it doesn't occur. traditionally, wages are one of the stickiest come almost lagging indicators. by duncan we need to get ahead of ourselves. cost index comes out on a quarterly basis. we got very excited woes of the jump up in the second quarter -- rather, the first quarter. it then it came down again. you will see a lot of headlines if we do get a good pop in wages. but i think policymakers will take that in stride. remember, they are looking at a broad array and they are looking at the cumulative progress. david: we heard from fed policy majors -- policy makers.

i'm curious what they had to say about this and what we can divine about the re-they will get -- they will get to data tomorrow. yellen said we need to see more progress before we raise rates. . so the interpretation is maybe that's it. september's office table after all. but they have been changing that saying we really do think, if we continue to see progress and we don't see it it's 2015 is still on the table. bond markets are still showing that it is less than a 50% chance of a rate hike, even as of december. gothave to remember, you've to take the summers with a grain of salt because there is a lot of model risk around that. we can't be too precise with some of those numbers. david: the headline from the press conference seemed to be

some new things happening around the world. did she talk a lot in that speech about jobs? i know the global conditions was not as a part of it as at the press conference. a very academic speech. she was talking in large part about the relationship between inflation and unemployment. that is how touch is all we are going to see tomorrow. and she stood behind the classical model that the fed is using. if an employee continues to decline to me should expect at some point for inflation to start bringing -- to start springing up. and that is an argument for the fed to get ahead of the data, and start raising rates before long. although she was careful not to commit to anything can she left her cell plenty of room to step not to commit -- to that.

she left herself plenty of room to step back from that. one of the things you do see in this recovery and now in expansion is there is a number of alternative and subsidiary metrics for labor market health that have been lagging. that is what this whole conversation about slack is. we are not back at the old normal. we are moving towards a new labor market. there are some interesting conversations going on right now about what that is going to look like in the future. david: thank you very much for taking the time. coming up, our glencore and volkswagen the next lehman brothers?

>> this is a probe the bloomberg

market day no signs of freezing. benefitstime jobless hovering. mark: and does the omissions cheating scandal at volkswagen and viability in glencore shares make them the next lehman brothers? ♪ mark: good day from bloomberg world headquarters in new york. david: let's go to ramy with a look at the markets. see, weill, as you can are starting the fourth quarter in negative territory. the s&p 500, the least of the laggards, down .75 percent. the dow down the most by 1% there.

u.s. manufacturing data today less than expected, worse than expected, and it may be one of the reasons for the weight. come with me now. want to show you the s&p heat map. this is a look basically at percentage growth or lost by month. usually been a good month for the most part. it has been up for the past four of the past five years or so. looking right now at 2014, last 2.4% withaw a gain of a gain of 4.5 percent, really to usually october is more positive than negative. and go to a gears biotech or this is the biotech index i want to show you right now. it is lower for the ninth time in 10 days. hillary clinton's tweet on price gouging last week on monday. yesterday, biotech did see a gain of 4.5 percent.

we are down by about 1.3%. about 125 of 143 stocks are lower. in a note out today, expect why attack to drive up for a a while. not very bullish there. finally, the yield on a 10 year, right now, coming off session lows. down by one basis point. it has fallen by 13 basis points in the past three days. the fed may now only raise interest rates in january of 2016. mark: thank you. david: volkswagen and glencore have had their share of headaches and pr disasters. whatever you say about their problems, do not say they are having a lehman moment. it is a special kind of hurt. mark: mark gilbert wrote about just how difficult it is to replicate the downfall and he joins us now from london.

thank you for your time. when we say this moment, we are thinking of an epic collapse. what some of the other companies are going through? >> it is a massively overused phrase. if you look on google, you will see hundreds of thousands of examples of people claiming that volkswagen is a lehman moment. they are not. stillnking industry is suffering the shockwave since 2008. a massive seachange for entire industry. the autoot kill industry. it will not change the auto industry. it might lead to the end of diesel engines, but similarly for glencore, being an integrated commodities company, digging stuff out of the ground and trading financial markets, glencore's problems do not prove that model is not viable going forward. the other main thing is that

lehman was really quick. the markets were difficult for a while. absolutely convinced liquidity would not being in -- an issue for the bank. it is why he did not seek a buyer to get him out of trouble. one day it was there and the next day, it was gone. carrying boxes out of the bank, completely shellshocked. same league of speed or industrywide. >> is there a better comparison we should be making here for glencore and volkswagen? >> a litany of examples of accounting fraud. general motors with its problems, toyota with its problem. glencore is tied to the commodities market.

they cannot be surprised a company lives. in the industry. it symbolizes love being a is incale commodities trouble. as we mentioned about the lehman moment, lehman was in a classic by itself. i'm just piggybacking my first are people just getting ahead of themselves? >> it is a little lazy, that is the honest truth. phrase to reach for to say that some company is going to rise at a lehman moment. it was used in greece as well. was greece at its lehman moment when it was in trouble? is laziness, an attempt to try to encapsulate a lot of

different factors, but it misses a lot of points. entire bank was in denial about where it was headed. the warm comforting embrace of the lehman america, brothers would still be alive in some way, shape, or form today. that is not the case. over using that phrase lehman moment is not only lazy but it detracts from the uniqueness of the situation. honestly, it was a really sad event in financial history. you talk about how quickly the companies have responded. volkswagen, mere days after this was discovered. have we learned lessons from what happened that are

applicable to other comp -- other countries? >> every ceo and chairman and board's toolbox as something they go through. i do not think we quite need to be in terms of missing things as quickly as companies should sometimes. certainly, when it is clear there is a big problem, i think these are much better now at acknowledging it, and quicker to fire the ceo if it is clear something happens on his or her watch and someone needs to take responsibility for it. if it turns out investors are not happy with the state of your balance sheet, given what is happening in your industry, move quickly to adjust those fears. that is exactly what glencore has done this week. it is raising equity, telling people it will get better. it is acknowledging the commodities business is not what it was 12 months ago and it is doing something about it. areare right that companies

quicker now to get ahead of the curve rather than being overtaken by events. changing personnel when they need to. thank you very much now let's get a look at the top stories. russia's foreign minister says the country and the for mr. ci july in their fight against syria. expandis not planning to the taxes in syria. >> when they met, i can assure you it was a very constructive atmosphere and very friendly. things in a very open way. reason, i believe they completely understand. he insists the fight should be the global top priority but they are fights alone will not resolve company's's problems.

a 14% sales increase for september. the automaker, 66 straight months of delivery. they climbed 40%. fiat and general motors are .rojecting faster fiat, ford, volkswagen, and toyota all have resulted beat estimates. the company saw its worst stock declined since going public in 2011 after sticking with a forecast that missed estimates. the ceo says franchises are worried about higher minimum wages and rising menu prices here in the u.s. staples says it will be closed on things giving day this year, a sign retailers may be pulling back from expanded holiday hours. the largest u.s. office supply chain will be open at 6:00 a.m. the next day for black friday. the traditional kickoff for the holiday shopping season. chick-fil-a is finally coming to new york. the 5000 square foot three-level

restaurant opens in the city's district on saturday. it is the chain's's largest location in the united states. that is a look at top stories we're following. coming up in the next half hour, hurricane joaquin in the bahamas. some forecasters say it is heading right for the east coast. we will have the latest. david: then, how the new system works on chip technology and how it could cut down on fraud. mark: we will have a preview of the labor force. ♪

david: welcome back. david:mark: thank you for staying with us. let's look at ramy with a look at the markets right now are you are specifically watching apple

and the company's's ecosystem. that is right. apple is right now down by 1.8% but off the session lows we saw around 11:00 a.m. mark. this is coming after a report that says a major integrative applet supplier has said slightly lowered its demand for supplies for the new iphone in december. the fear is fewer chips mean sales expected in the holiday season and the share prices now reflecting that. heading into check out our own analysis, it is pretty cool. apple equity s plc, we can see apple has 314 suppliers, including on the left side here, the likes of pegatron samsung and serious, as well as semiconductors. there we go. let me dive in closer to those stocks and dealing with

integrative circuits. you can see basically, it is down by 4%. semiconductors are down by even 5%. feeling some of the pain off of that report and the knock on effect there. integrativeer cirque make -- a circuit maker ,lso falling is trading down 19% loss after city started coverage of the company a new troll. an analyst is pointed to the company's's exposure to the china's mart phone market. it is not related to the apple report. their second quarter sales were degenerated from them. second quarter sales lost about half of their value since the 2015 high over the summer. finally, a chipmaker solutions now down by 2.5% recommended over city today.

sky works got 34% of its sales from the quarter from the iphone manufacturer and apple off of that report is also falling. 150 dollars price target for sky works in a buy recommendation. right now, it is $82 in change. mark: all right. thank you. hurricane joaquin keeps getting stronger and scarier. come to the terminal here. you can get a look at the track the storm is taking. it is -- it may make landfall on the east coast this weekend. currently rated a category three hurricane. chris has already declared a state of emergency. boston, brian, thank you so much for your time. what is the latest in what do we know about the track in the

storm? >> it is a trend in the good news. it looks like the track may actually shift away from the united states. the midday run of the model is lining up with the european model, pushing the storm out to sea. they will have an update in about 20 minutes or so. we may actually see a shift in the track at that point. in the positive for the east coast. many people here have memories of superstorm sandy and how that shifted and changed. improved the models quite a bit since sandy, especially the model i was just talking about. they upgraded a computer system on it earlier in the year. i think it was january. the model is must -- much more robust than it was then.

things are better. the problem this time around is there are a lot more moving parts on the chessboard right now. we have a front coming across the eastern united states, a hurricane in the atlantic. a lot of different things can move things around and shift things back-and-forth. that is what is giving forecasters a lot of heart earned today. mark: talk about joaquin and how it stacks up against storms in the recent past. >> if it were to hit the united states and the peak forecast strength, it would be one of the , a lot moreorms than sandy. hurricane when a it hit new jersey. this would be a much more powerful system and would do a lot more damage to the united states. we have new jersey

declaring a state of emergency. do we find they are preparing faster in the wake of the storms? >> they may get five or six or eight inches of rain in new jersey. severe flooding and that is even without the storm. mark: brian sullivan joining us from boston. thanks. david: time to stop swiping your credit cards. mark: will this long-awaited chip technology make your card secure? ♪

mark: welcome back. david: a key day for american consumers and merchants.

the day of sticking -- keeping your credit card. chip moving over to related card readers. all in the name of safety. , caroloin numbered radio massar and cory johnson. carol: we want to welcome everyone. carol massar along with cory johnson. check your calendar as they just mentioned, here in new .ork, a new law stephanie erickson, vice president, welcome. it is a date change in terms of what is going on. talk about how it changes fraud implications. >> consumers will start to see more and more merchants they shop that will have registered

to read -- registers to read the chip. they'll be switching from using the strike to insert in the card and reading the chapter the chip generates a unique one-time code that changes with each transaction. the criminal hacks into the merchant system, they cannot use the data to do counterfeit fraud. the code is only good one time. if a criminal stairs -- steals that, they cannot do counterfeit fraud. it is roughly two thirds of the counterfeit we see in stores today. cory: the change today is the move fromfor fraud the issuer to the merchants. that say 50% of small businesses out there do not recognize the changes taking place. the cash register they are using to swipe, it has a change in the law and the great risk of credit card flaw.

click the liability is falling with a card issuer, either the bank or the credit union. starting today, if the merchant does not have a chip terminal, and if the cardholder brings in and uses the strip, the merchant may be liable. for most small business merchants, they are not the ones receiving most of the countfeit fraud today. it is usually the electronic stores and the high-end luxury retailers. hair salon and dry cleaner, they are not seeing a lot of counterfeit fraud today. they have a quite a bit of time. every merchant to move as quickly as possible because it secures the whole payment system and makes data a lot less attractive for criminals to steal. at merchantsppens to sell high-end goods that the criminals want to go after. carol: i have some old cars that do not have this new chip when

did we see this through all the systems question mark >> roughly 6% have at least one chip card in their wallet and it tends to be the card they use most frequent later it your current cards expire, the issuers will replace them with the new card. we know from other countries that move -- use the chip, it takes two or three years to get a whole country to migrate all all the merchant terminals. about 60 or 70% of the volume being chips. in the meantime, consumers are protected but we want to move to this direction. it is interestingly the u.s. is taking a different approach to the issue of flawed -- of fraud. one of the primary meshes to , in the u.s., from what i understand, and correct me if i'm wrong, i often am. a bigms we have taken data approach to look at weird

behavior, let the computers sift through, call a person and say, we noticed you just bought gasoline in outlook right after san francisco. the merger of those two approaches, we are not using the chip technology. exaly are the u.s. has had the benefit of sophisticated transaction for 30 years. other places in the world, they were using transactions being stored in the terminal and sent the next day. they were relying on chip technology before it sets in. a little bit about cost of communications as well as speed. the fact that we have had inexpensive and fast and reliable telecom in the u.s. for many years has allowed them to build out sophisticated predictive analytics. the rest of the world is having internet connected devices. they have this beat inconvenience convenience as well. they are building out the big data as we mentioned. chip data to even enhance the scores we have.

carol: what about for small businesses? the backbone of our economy? >> fortunately, there are a lot of cost-effective solutions. for the small business merchants. carol: thank you so much. mark: thank you so much. that is a long time and coming. david: yes. london, other european capitals. mark: bloomberg market day will continue coming up in the next half hour. a slew of economic data keeping investors busy this week here at after the break, we will wait the good, bad, and ugly. we will be right back. ♪

mark: welcome back. let's get straight to your top headlines. in china, interest-rate cuts and

government spending programs may be showing up in manufacturing. manufacturing -- ceo says markets reacted on china. >> over reaction to something which is not going to be a surprise. i see there is an overreaction when people think china can turn into a can of cows. still, manufacturing is being hurt by excess capacity. motors to replace its entire product line over the next five years. investors were told that they were pushing for sales growth. she says 39% of sales next year should be new models. also said gm wants to be the industries technology leader. that lets an option

you drive hands-free on the highway. the u.s. transportation secretary is planning a safety summit amid multiple reports of defective vehicles. anthony foxx says it is time for a blunt conversation about integrity. they have faced the largest number of recalls and its history. toyota, honda, fear, chrysler, and others have been involved in alleged safety violations. marijuana stores opened early today to begin sales to recreational users. store owners say they can -- they hope they can avoid what happened in washington state and in colorado. the only other states where forjuana is sold recreational use spirit organ buyers will not have to pay sales tax until january. those are your top stories at this hour. coming up in the next half hour of the bloomberg market day, i will speak with the founder of wheels up about his new company in the market for private luxury travel. we will then have the latest on

russia's military strikes in syria and how the united states is responding to those moves. forecasters starved for fresh data are getting their fill this week thanks to a slew of consumer and business activity updates komen aiding in friday's september employment report. , we learned date manufacturing fell in september. according to economists, tomorrow's labor data will show employers at 200,000 jobs last month. for more on how the data can alter the outlook for the u.s. economy, financial markets, and monitor policy, i am joined by gus, a senior macro economist of abramowicz, who joins me in the studio. thank you both. lisa, let me start with you. it is all about the data. that is what the fed has been saying for the past couple of years. what are the charts telling us about september? do we know? >> if you look at the futures trading right now, you're seeing

the probability of december of a rate hike before december, it is now below 50%. people have been pushing back expectations of when the fed will raise rates. you look at expectations of economists with respect to the job, the question is, lula get a number that is definitive one way or the other? the longer the uncertainty, the more volatility you will see in the bond market. mark: the volatility lisa has spoken to us about, we have been following that for days here at bloomberg. what are you expecting? is that 200,000 number in the ballpark? >> that is right here we are looking for 210 jobs. it is close to the average price. far more than we need to keep up with the growth in labor force. that would be a good and solid number. we also expect upward revisions to the august number, which was a little soft at 173,000 jobs.

will that tilt the scales one way or the other? seen a you have significant drop in yields for the 30 year bond. the two-year bond in particular could respond, is there it -- if there is an upward revision and some kind of momentum that people are pricing out at this point it right now, you have got the bond market basically saying, 2016 looks more likely for a rate hike. what you say, janet yellen, charlie evans, you want, but you have not done it. the bond market is basically discounting that. the data comes out, strong enough to justify some movement by the fed, or give them some reason to pay their justification, they might actually react. i would look for a short and move more than anything else. mark: the semiannual economic outlook survey was just released. you're taking a look at small and business size owners. midsized is this owners

feeling about the state of the u.s. economy right now? aremall business owners generally feeling positive about the economy. optimistic about the national economy in the local economy. more importantly, about a quarter of small business owners expect a higher over the next six months. the second highest level since 2007. they are feeling pretty good about things. they are seeing stronger demand and meeting harder workers to keep up with the demand. lisa: there is some ssonan here, where you see in corporate credit a real deterioration and a perceived value of corporate credit, yields are rising, borrowing costs are rising. hewlett-packard really struggled to get 14.6 oh in dollar deal done yesterday and willing to pay up for it. you're seeing stocks really pay off. the confidence being seen in small builders and smaller companies is sort of it is sort, because

of out of sync. people are looking at the data and saying, how accurate is it? it is all over the map and in general, when you see earnings coming out and you see how things are being treated in the market, there is a strong streak of pessimism right now. as lisa mentions about small and midsized is this is, there are a couple of headwinds they have to do with, rising health care costs because of you for the care act, and they also have to deal with the pressure, gets one of the issues being talked about as we lead up to the presidential campaign season, whether or not they should raise the min wage for employees. how do they deal with that? do not expect to see a minimum wage increase anytime soon. headwind isbiggest coming from the stronger dollar, making u.s. exports overseas more expensive, making imports into the u.s. less expensive. i think that will be a drag and i also think businesses are having to pay more for their

workers, so our survey found 42% of small businesses plan to increase pay in the near term. that is because the labor market is getting tighter and they are assuming the need to raise wages to maintain current workers and attract new ones. mark: how tight is the labor market at this point? we saw: a lot of people are looking to see whether there is justification for the hike and if they are wrong, and if the bond market is wrong about market is if the job tighter than it looks, could inflation pickup in a way that is more meaningful over the longer-term? mark: the criticism we have heard for the longest time is that the fed seems to have put most of its eggs in the basket of labor, looking at the job market while inflation is still not at the fed fusses target. inflation target is 2% and we are not near there. >> i think that is right. if you look at labor -- labor market numbers, they would justify an increase in the fed funds rate here at what caused

them to hold off in september is concerned about what is going on overseas and how it has the potential to lower inflation in the united states between the stronger dollar and lower commodity prices. that being said, i think the fed will look through that. most of the strengthening of the dollar has already occurred. most of the decline in energy prices has already occurred. that will fade from the data in the near term. inflation will pick up and that will get the fed to raise rates later this year. get you thelet me last word. will the fed move before the end of the year, will they push this off until 2016? lisa: i will tell you at this point, we are seeing a real split among bond investors with people saying, if the fed does hike, it will be a vote of confidence for the u.s. economy and others saying it will be a mistake here it is a pretty bifurcated market right now. mark: lisa joining me in studio and gus joining us from pittsburgh.

ahead, we are keeping an ion stocks on this first day of trading of the fourth quarter of 2015. stocks are trading lower, investors are trying to turn the page from the volatile third quarter hear it as we had to break, here is a look at some of the top names. ♪

mark: welcome back. let's get straight to a check of the markets. afternoon. ramy: worse than expected u.s. manufacturing data, the weakest

since may of 2013. .he s&p 500 is down the biggest loser is the nasdaq, down by nearly 1.1%. bloomberg the terminal, look at the imf function. a look at the s&p 10 function -- nine out of 10 are in negative territory. the most,are down 1.7%. duke energy and southern companies are some of the biggest, down between 1% and 2%. telecom and information technology not too far behind. let's check out the u.s. dollar. this is a spot index. 10 of its major peers. you can see it is losing .trength it is off of its lows that we saw the 11:00 a.m. hour or so, some investors are cautious

before tomorrow because that is when the september jobs report comes out. nearlylar did strengthen 3% in the third quarter as investors anticipated a september rate rise. there is now more watching and waiting as the majority of analysts expected to rise only in january of 2016. that rate rises also one of the influences on the treasuries and the 10 year is now a near session lows. it has fallen 13 basis points in the past three days. mark: thank you. let's take a look at today's market close in asia and europe and begin with mark barton in london. mark barton: the fall this morning, the stoxx 600 was higher and it did not last long. europe taking its cue from the united states. this comes after the worst quarter in four years. the stoxx 600 falling 9% in the third quarter. 866 billion euros. inna set the tone earlier

the day after a factory gauge showed the industry, the manufacturing industry, is stabilizing. didk. manufacturer report beat analyst estimates. it fell from the previous month. what stuck out was employment fell for the first time in two concern amonging executives about the outlook. the eurozone manufacturing gauge fell from 52.3. it is the lowest since april. what stood out was factory prices fell in september for the first time in six months. ecb, that isthe the thinking. let's have a look at some of the big equity movers over the day. forher volatile session glencore. at one stage, it was up by 8%. that meant it wiped out all of sunday's losses. the record fall monday through tuesday's games, wednesday's's gains, and 8% gain earlier in the session. the fortune is very much tied to the price of copper appeared it

was up earlier in the session and then inched downward. glencore as a company makes 28% of its earnings from mining copper. a european telecommunications company, look at that, down by almost 10%. it is selling $2 billion of stock to finance its acquisition of cablevision's systems, the four biggest cable provider in the united states. oil company wraps up by 3.8% today, a $1 billion investment target with the sale of its gas is nice, the second deal announced in the last week. after a disappointing third quarter, the fourth quarter starting on a negative note. back to you in new york. factory gauge showed signs of stability following stimulus measures from beijing. david ingles has the latest from hong kong. david: the latest manufacturing

data suggests things are not getting worse. potentially below the threshold of 50, though it was better than expected and better than august. , you lookof the main at signs of decent improvement, especially when you have a look at output. looking at which of the manufacturers are doing well, it is the larger ones. the smaller to medium-size enterprises, obviously seeing a bit more pessimistic in their outlooks. survey, smaller in sample sizes, it shows an improvement, but paints a slightly more bleak assessment. improving, but more needs to be done. mark: david joining us from hong kong. it is official hewlett-packard's board approved splitting the company into. hp incorporated will sell personal computers. hewlett-packard enterprise will provide ip services to clients. shares will start trading november 2. payments processing company for

his data wants to raise as much as $3.2 billion in an ipl according to a regulatory filing today. took itequity firm private eight years ago for almost $30 billion. fertilizer maker mosaic is settling a $2 billion hazardous waste lawsuit with federal regulators. the deal resolves claims about safe handling of 60 billion tons of mosaic hazardous waste. since the 1950's, toxic waste from fertilizing production in florida and louisiana has been growing in 500 foot high piles, spanning more than 600 acres. that is a look at the top stories we are following this hour. still ahead, writing in the lap of luxury. why is this company different from the rest and a big draw for investors? the founder will join us when we continue in just a moment. ♪

mark: welcome back. thanks for staying with us or traveling these days is not easy with traveling restrictions, flight delays, and for the business traveler, the perks are not necessarily as great as they once were. one private air travel company has captured the attention of deep-pocketed investors to the tune of $115 million. the founder and ceo joins me now here in the studio. thank you for your time. we're talking deep pockets. you have got blue-chip investors fidelity, achip, great bunch of firms to support us as we grow our business. mark: talk to us about how your past history has prepared you for this venture, literally positionsth people in

of power and prominence who want to get from a to b as quickly as possible. >> we have the perfect athletic, which we have exclusively from the beechcraft corporation, and this asset allows more people, and by the way coming today's world, the optics, this is a plane that cfo's love at 3950 per hour. it is a mark: great position to really broaden the market. mark:mark: what is making this attractive to investors? they like the membership model at amazon prime and costco but if you have a consistent slow of membership, and recovering revenue, it is something the guys are focused the only private iteration business in the world with a membership model and that is really one of the big innovations we have.

to join the club, 17,005 budget dollars, the recurring dues are $8,500, and it makes it very reasonable for folks to do it. mark: what was the genesis for uke buster mark i'm sure other folks have seen that there was a need for this. jump into it and how are you confident this was going to work? >> i had a lot of experience. richard, who founded back in 1986, gave me my opportunity that i learned from him and buffet. when you are around guys like that, you see special things part one thing missing from the offering in my last business was the entry-level moving away for most folks. $8,000 to fly a light jet and a fractional format. get from a and you to b, that is a winner. mark: talk to us about the market for on-demand aviation. >> the aviation market has got about 100,000 people to the way we are broadening the base of it with our membership model is probably about one million

people in businesses that we can target to be a part of this, which makes it a big business. netjets is a fractional jet model and you have to make a five-year commitment if you will buy a fraction played you have a monthly management, and hourly surcharges. make deepo commitments. very easy pay-as-you-go program which allows you to have consistent lift. people calledhen your company that liberal of private aviation, is that accurate? we are working on a methodology that allows people to book it in a rideshare feature, if you want to put a postflight up and have others in the club join, you can defray your costs. i know,s a guy bloomberg will insert markets like san francisco are better than 50% of their revenue and i believe ridesharing will be a

big plays of the rules up model going forward. and: the job we have seen commodities passes, has not had a name in your business? >> you look at the airlines and the private aviation business, the price of fuel. way it is.l the if the locked in and stay there for a long time coming would be good for the community. you're at up to where you are seeing economic signs and hearing talk about the fed perhaps moving on interest rates, possible headwinds from economic downturn, with that severely impact or business #or are you talking about a clientele that could withstand that type? our clientele is insulated. a business model that is billed for the market, near the entry level, the last stop for an executive you will go to lax and jfk or he will fly wheels up. i think wheels up is a better solution. is very reasonable you are

flying executives from new york to boston or two d.c., -- to d.c., $1000 present. mark: what is your next milestone? members by 2003. 30 months out there, we believe the business will be in good enough shape that the public markets will be ready for us. mark: the ceo and founder of wheels up, kenny dichter. ever need a lift or are ever stuck anywhere, i have got you covered. much.thank you very let's go to market that is right now. as we talked yesterday and today, it was a volatile third quarter. let's take a look at the s&p 500 the s&p 500, it is down year to 7.3 percent.

those are the year today numbers for the s&p 500. let's look at the daily charts if we can and see what we're pulling up. the s&p 500 for today is down as well as the nasdaq and the dow jones industrial. about .7ones is down 5%. the s&p 500 down just over point 5%, 1909. the nasdaq composite index is down nearly a full tent. -- a full 1%. coming up, how could the white house react to russia's military moves in syria? of diplomatic positions, representing the net's states and russia, ukraine, georgia, and kazakhstan and the interviews coming up and stay with us. ♪

>> it is 11:00 a.m. in san francisco, 2:00 p.m. in new york. into the fourth quarter.

crude a raising its gain as commodities extend their slump. when we finish the year off strong? the situation in syria getting more serious. russia carrying out airstrikes. just to are they targeting? america's love of pickups and as to be's pushing auto sales to the highest level in a decade. are some automakers missing out? good afternoon. i'm scarlet fu. ami with atraight to r check on the markets. it is october 1. we have two hours to go before the close and it looks like we have given up some of our early gains. rami: given up most of the gains we saw yesterday. stocks headed downward.