good afternoon, i'm pimm fox. here's what we are watching at this hour. selling and biotech and health-care stocks leading the nasdaq lower. , we will find out why the bears are in charge. commodity prices surged today. crude oil gaining more than 4%. companies like freeport macro ran surging ahead out there, we have got details. microsoft releases three new smartphones and tablets. microsoft, can he make a dent in an already saturated mobile phone market? "the bloomberg market

day." the bloomberg market day influential summit is taking place right now in new york. jeff smith is speaking with bloomberg's erik schatzker. let's listen in. so, we are more active than most, but i would not say that that is what makes is necessarily different. we are operationally focused as well. there is a real sensitivity on our side to the challenges for the team. we are not the ones you're just going to stand outside. just writing poison pen letters, for example. jeff: we understand that it is hard for a board with real-time difficulty. back ass when you sit an investor you can criticize the past. we work really hard to make sure ont we are focused not just

the past. the past is important, it goes to credibility and execution, but we want to make sure that we are thinking real-time about the challenges and decisions the need to be made inside the company today. seeing if we can predict some of those challenges and opportunities and making sure that we are helping the management team and the board moving from a path that we think doesn't make a lot of sense and shifting the company strategy in another direction that is going to unlock value for shareholders. what it is like to the inside companies. we have gone on many boards directly. we sit down with the management team and we can speak to them and show compassion, but at the same time demand accountability. given the fact that you are operationally focused and willing to roll up your sleeves, does it other you in any way to get a to an ever-growing group arectivists, many of whom

in the turning capital fast as possible camp? collectively to -- jeff: collectively today many of us are grouped as advocates. a horror -- a whole group of advocates have done a wonderful job in getting involved in companies and at the very least shining a spotlight on companies that are underperforming and producing hopefully more accountability and better results going forward and then going further some of us will get more actively involved and go on board and drive operational results. i think that everyone does it a bit differently, but i'm proud to be with many of the other do what we do. i think everyone is doing a wonderful job. pimm: let's go back -- erik: let's go back to the three legs of the stool.

ultimately winding up in a proxy contest. you announced a stake in advanced auto parts. what is the investment process? advance is a really terrific company. it is an auto parts company. people think it is a specialty retailer, but it is more than that. it is also a commercial distribution company distributing auto-parts to garages to service cars. what really drew it to us in terms of identifying the opportunity was for years and industry,years in the autozone was the best in class in terms of operating margins. people assumed, the investment community assumed that that was because they were mostly retail and those were -- and those that were advanced in issue were on the commercial side of the

business and then o'reilly came along and added on a couple of years ago. embarking on an operating to approachplan where autozone is. advance is much lower. isn though their mix actually, we think, among the best in the industry. we think that going more towards commercial is a huge advantage and we have more scale than others in the industry. us --rew our attention to to this was the huge operating and besten the advance executors in the industry and we don't think that there is any permanent reason for that. we think that it is about blocking, tackling, and operational exit version. what i think would help the distinct -- erik: what i

would help to distinguish is -- what happens now? is there a playbook? you take a stake and then what, ask the week -- asked to meet with the board? a proxy fight and then a wasted process -- proxy fight. is this how it works? does the anp board at this point with darden in the rearview mirror get this? you don't even have to say it? >> so, yes. you know, we sit down with the management team and we sit down and say -- this isn't a secret. they know this. researchers have been writing about this, there's an opportunity. there are other opportunities as well. they also have a lower multiple than the rest of the industry than the short -- shareholder base with less confidence in at -- in unknown execution with be monetized.

when we sit down with the management team, we can explain this to them. they have been trying to fix it. there have just been some struggles in terms of how. so, we sit down with the management team and board members and talk to the challenges the company has been having. maybe some of the solutions and see if we can figure out a path or word where we can work together and if there continues to be a good-faith disagreement in terms of strategy at some point in the future you might ask the shareholders if they would like some better representation on the board. it doesn't mean we do that, it's only the minority situations where we do that. we believe that it's really important to be prepared. brinks is another one of your holdings that you published a letter for. jeff: i don't know if we are

going to need to do that with brinks or not. it is a remarkably similar story to advance in that they also have a best in class brand name and scale with dramatically worse margins than it appears. we are prepared to do that. we are prepared in every single one of our investments to run a proxy contest if necessary to make sure that a plan to unlock value is there for all the shareholders. i believe that if we are prepared to go forward with that, if we need to, then we don't need to in many situations. erik: the reason it was mentioned as you swept out the entire board. you are responsible for execution and you helped to

formulate a strategy and recruited the management team. if you are prepared to walk the walk, so to speak, and execute a turnaround plan, does that mean that you have to lock up your old place for longer? coordinating does not seem to work with the type of approach. erik: -- jeff: there are a couple of questions there. necessary tos replace the board and i am very proud as chairman of darden that we have also put in place a world-class management team. we have promoted from within. externally toired cover a world-class management team who has done a terrific job as ceo. as it relates to the investors

of the fun, we have fantastic investors who really understand what we do and understand that when we get involved in companies we will get involved in order to make a difference. we believe that if we have really educated investors who understand what we do and appreciate the operating value that happens over time at these companies, they will be patient investors. and i hope ittrue will continue to be true. we also do have different kinds of structures with a good portion of our capital getting locked up in each investment for a long. of time and some of the capital has more regular or customary liquidity. i don't think that it's necessary to do what we do to have a lot of capital. i think it's about portfolio construction and managing and most importantly again making sure the you take the time to

have great investors who understand what you do. do you see any value for permanent capital, either in the way that pershing has done it or say, in the way that they have done it through reinsurance? primary capital is great. if you are offering it, i will take it. [laughter] erik: my permanent capital comes at a very high valuation. no, quite seriously, though, is that the way the industry is moving? is star board going to follow? jeff: you know, i don't know. again, i made the joke earlier, but if you can do it it is a great thing. erik: is it hard to do? jeff: it is hard to do and not always possible. how much of a company do you need to own to be heard now? jeff: that is a great question.

from our standpoint it is not about how much you own, it is about how much interest you represent. pimm: -- erik: in. represent them all. jeff: if advocating for a plan that they all want, if the company board is making decisions that are so out in left field over here that the shareholder base is irate and you show up on one share, one million shares, you are aligned with what the shareholders want to hear, it doesn't really matter how many shares you own. as long as that is what you are asking for and it represents -- interest of the shareholders. we'll may exist to represent the interest of the majority at least of the shareholders. hopefully all of them. we are stepping into the void. the board of companies is

supposed to be doing the best job they can representing the interest of the shareholders. if they are always doing the best job they can and shareholders feel confident that the board is representing their interests in a terrific way, then there's not an opportunity. the opportunity for us is when there is a gap. when for some reason the board and management team are taking the company away with a short -- shareholder basis is those excited about it. what you are seeing today is a day versions. 10 years ago you needed to have a certain number of shares in the company. in order for you to have the credibility that is no longer the case. the more stock you own, the more votes you control and have more skin in the game and the more you have when you do a great job. 6, 10% of aown 5, company, that's not a majority. you still need to represent what

the shareholders want. if it is 1% of a company because you are lying to the shareholder base, that's possible today and it was not possible 10 years ago. the situation you described, irate shareholders, path of management not following the best interests of the company, that's not exactly what i would have used to describe say either ge or possibly, although perhaps less so than ge, qualcomm. yet janice steps in and takes a 2% position in qualcomm. something qualcomm had been resistant to four long time. a very large of company, but one present. it just seems as though setting a new president. shareholders today have more influence than they have had in quite some time, in part

because of what we and other actors have done over the last 10 to 15 years. it got accelerated by what we did at darden in replacing the entire board. companies, management teams, advisers to companies realize this and realize that shareholders are doing a good job representing the interest of the other shareholders. and therefore it is probably better if the management team listens to their shareholders. if you have an activist they comes forward, whether they own 1%, 5%, or 10%, and have good ideas for how value should be unlocked at the company, i would say it's a good idea for the management board to listen to that. that's not hearted vice and i believe that more and more that is the advice that management teams are getting from their tankers and other attorneys and advisers. aree activist investors

really institutional and good at what they do. they do a lot of research, they pay attention to your company. they have a perspective that may be different from what you have on the inside. so, why not sit down with them and listen to what they have to say? if your motivations are fewer and they have good ideas, then you should look into whether you can adopt some or maybe all of them. erik: that is happening at staples and office depot. a decision is due by october 12. if they rule against this deal on antitrust grounds, would you representing star board support a legal challenge? erik: i don't know if i'm going to get into legal questions as it relates to that, but i would say that we are excited about the possible combination of others. based on the merits as we have why weat it, that's

advocate for it and own the position. we do think it makes sense for it to go through. it is up to the company to decide what we need to do. we will certainly have conversations with them if and when the time comes. pimm: -- erik: yahoo! is pushing them of the spinoff. without this letter there is a risk that it will be tax-free. benefit not all of the of that spinoff is already priced into the stock. some, one has to believe. none, zero, right? really? since theck has moved spinoff was announced. it went up after the alibaba ipo, it has gone up and come back down, yahoo! is to some degree in line with alibaba as it relates to the expectations for that spinoff,

where the stub trades today is , reallyess than alibaba not reflecting any value in that spinoff. in fact our view is that it pre-much reflects the worst-case scenario in terms of taxation. so, you know we think it is a terrific opportunity. erik: all right, we ended there. thank you so much, jeff smith. ceo of star board value, everybody. [applause] all right, erik schatzker, speaking with jeff smith, the chief executive of star board value, speaking at the bloomberg markets most influential summit. in the next hour we will be hearing from the pershing square chief executive, bill ackman. more about activist investing. first we are just one hour from the close. let's head to the market desk, where julie hyman has the latest. julie: let's take a look at what's going on on the majors

right now. we are seeing a mixed picture persisting today. the nasdaq in the s&p 500 performing worse than the dow. they are more heavily weighted towards health care. take a look at biotech once again today. the biotech index is once again falling again, sharply, down by 4%. there does not seem to be one particular catalyst. it is the same sort of sentiment we have seen on this group, concern over increased pricing, is congress going to try to put a cap on spending in some way? also new concerns about the and theific partnership problems it might put on biologic protections. something else i have been looking at, the valuations in biotech, take a look at the bloomberg terminal. priceot the biotech index to earnings ratio versus the s&p 500. yes, we have seen a drop off in biotech valuations as a result of stocks pulling back so

sharply, but there are still double the valuations of the s&p 500. on a relative basis, even though they have come down a lot, you have to think that the pricing they are compared to the rest of the market is one of the factors we have seen in the selloff. something else i have seen in looking at the correlations of health care to the overall market. pimm: is there anything else we need to know in terms of the correlation? julie: the correlation is about 8/10, quite high. we have seen it surge. health care is 14% of the sb -- s&p 500. 15% of the nasdaq. pimm: things are a much, well done. maybe someone sees value? , we will have to investigate that. time for a check on our top business headlines at this hour. sab miller has a message for the maker of budweiser. this deal is not for us. they report that the brewer has

rejected an informal takeover offer from anheuser-busch. and some shareholders were looking for an offer in the $110 billion range. no word on whether a b will come back with another offer. the united auto workers are telling fiat chrysler to go on .trike at 11:59 p.m. tomorrow the announcement comes after 65% of uaw members voted down a proposed labor pact. the offer would have provided pay raises to all workers and narrowed the pay gap for second-tier employees. bloomberg has learned that bain a 2.2l is debating billion dollar hedge fund according to a letter sent to investors. fundbsolute return capital lost a percent over the last three years annualized. they had $2.2 billion in assets. of course, you can always read

more and get more details at bloomberg.com. now we turn our attention to yum! brands, reporting third order earnings day, the report is due out in 40 minutes. see ifs are waiting to the parent of kfc, pizza hut, and taco bell has been able to turn around their business in china. their chinese outlets had to suspend meet sales after an investigation of suppliers. covers thent restaurant industry and joins us from chicago. the latest investigation as to the food source for yum! brands, that is all done and dusted. how they overcome this? >> -- leslie: that is what we will be fire -- finding out this afternoon. same-store sales are expected to rise. analysts are thinking that maybe the worst is behind us at this point.

that is in china. what about the united states? taco bell is the growth story in the u.s.. they started selling breakfast not too long ago, that has done well for them, help. now they are opening locations in more urban areas and sell beer and wine. pimm: beer and wine at taco bell? what will they think of next. so, if they are going to do well in the united states does that presage more expansion in the u.s. or are they looking overseas? leslie: definitely both. they have talked about how they want to expand the taco bell in the u.s. and overseas. taco bell only has a couple of international locations. for theial opportunity country -- company they can do with taco bell what they did with kfc and pizza hut. pimm: is the -- is there a reason that taco bell is the where they are going to

experiment with new kinds of menu items? in the u.s. taco bell was really the first brand the company tackled. this year they have done the same thing with kfc, rebranding with the kernel. pizza hut is next. we have yet to see what will come with pizza hut, really. pimm: what about the numbers? in terms of sales, $3.5 billion for the quarter? leslie: i think that's right. i think analysts are projecting $3.7 billion or 3.8 ilion dollars. pimm: as the franchisees, what are the specific issues in the restaurant for them?

leslie: commodity costs and wage inflation's have been an issue. they are competing more and more to get good help these days. pimm: you talk about the minimumon of various wage regulations in the united states. is there any way the company can mitigate this? leslie: they are just going to have to raise many prices, that is what analysts have said. this is happening across the industry. consumers may just have to get used to paying a little bit more for a taco or a burger. pimm: do you have a favorite item on the taco bell menu? would have to say that the doritos tacos logos, right? pimm: all right, thanks for a much. leslie joining us from chicago. couple of reminders for you, we have lots of great interviews coming up for you on bloomberg

television today from the market influential summit. including bill ackman, coming up at 4 p.m. eastern, a look at activist investing. tomorrow from 6 a.m. to 7 a.m. eastern surveillance has an all-star lineup coming from citigroup. tom keene will be joined by chief u.s. equities strategist and ed morrish, will talk about oil and crude oil prices. also in speaking with the economist, dylan buiter. that is all coming up on bloomberg television and on bloomberg.com. coming up onbloomber nark -- day," microsoft unveils its first-ever laptop. ♪

♪ live from bloomberg's world headquarters in midtown manhattan, we are watching -- you are watching "the blue board

-- bloomberg market day fair go we have a check on the companies making moves just 30 minutes to the close. >> we werewere -- talking about biotech and energy with coal catching ri. look at the incredible games we are seeing in peabody, participating not quite as dramatically in that rally. we had a note out today from bb&t saying that the pain will ease in 2016 as the switch to natural gas slows down. many power companies have switched over to natural gas, but the number of plants able to do so may be reaching a p. we might see stabilization if nothing else. take a look at my bloomberg terminal. we are looking at the terminal as a percentage of u.s. trending lower over the last five years with a bounce more recently, maybe again some stabilization.

that is what some analysts are saying. switching from coal, i want to talk about what is going on in oil today. the rebound is continuing, strengthening even, looking at ,he charts there are more terms up by 5%. the u.s. energy department is 320,000y showing barrels last month. equilibrium approaching supply else that, something i've been watching is the price of the 50 day moving average. we have been watching technicals a lot lately. perhaps gaining some steam as it reaches the technical milestone. of this is resulting in outperformance on the part of energy stocks today. this is a way of looking at what stocks are contributing the most to gain this today. looking on the right side of your screen, chevron, exxon,

conoco phillips, contributing quite a bit to the gain in oil prices. finally, couple of other oil movers i wanted to check out, including the top holdings by carl icahn who participated and then some in the five-day rally, we have seen carl icahn profit from those gains. pimm: thanks very much, julie hyman. let's take a look at what's making news today. mark crumpton has more from the news desk. mark: united airlines copilot passed out on a flight from houston to san francisco. the plane had to be diverted to albuquerque, new mexico. a spokesman told the associated press that the plane landed without incident this morning as the copilot regained consciousness and was able to walk off the plane. he was taken to a local hospital for observation. this comes one day after an american airlines captain fell ill and died while flying from

phoenix to boston. in the meantime a medical examiner said the pilot of that of naturalight died causes. captain michael johnson was 57. his cause of death was determined after an autopsy and prillaman are talk ecology death . johnston's copilot took over and landed in syracuse, new york after johnston stopped breathing and became unresponsive. there were 147 passengers on board. the federal aviation administration is seeking a fine against a drone operator, the largest one to date. the company endangered safety by using unmanned aircraft in the congested skies over new york and chicago. officials say that aerial photography companies did not have permission for the flights. hillary clinton is going into attack mode. later this month she will housey before the

committee, lashing out at republicans accusing them of political -- politicizing the investigation. clinton: they have made a partisan political issue out of the deaths of four americans. i would have never done that. our president, there were republicans and democrats thinking about that -- i would have done everything to shut it down. week kevinrk: last mccarthy boasted of the political damage done to the clinton campaign. he later contracted those remarks. says the federal government needs to stop meddling with internet-based on-demand companies. the florida sun never praised -- airor praised uber and being be. rains andential historic flooding in south carolina, thousands drying out. i of customers are still waiting

for electricity to come back on, but the state is dealing with more concerns. another dam failed in the columbia area and they were able to see higher ground immediately. they will also have to do with aliens and damages and keep an eye on cresting rivers that may cause more flooding. top is a look at our headlines right now. you can always find the latest news on bloomberg.com. pimm: thank you very much. microsoft unveiled a number of new products today in the windows 10 event. the chief executive took the stage to speak about the newest operating system and the efforts to transform the company into a mobile and cloud giant. >> a new area of personal computing. is thetters most mobility of your experience, not the mobility of any single device. as devices come and go and

evolve, you persist. pimm: joining me now with more is the corporate vice president for devices at microsoft congratulations on the presentation today. tell us a little bit about the personalization of the mobility that he was describing in the products you are offering. quite sure. today we had an event with -- >> sure. today an event highlighting the most items ever. really, the big idea is that all of these are powered on windows 10. one of the promises is that the experience you have can move across and be seen on all the devices. pimm: let's talk about the

strategy of going into hardware in a big way. it's been very successful for xbox, why go to the laptop? why is that a strategy that you think will succeed? yusef: we look for areas where we think we can bring something unique to the marketplace. it started with surface pro three. now the question does not have to get asked anymore. the surfaceounced book. the reinvention of the laptop itself. i can show you this one briefly. pound for pound against the best in class, the macbook pro, this is twice as powerful and in addition you have the ability to actually touch with an integrated pen. >> while the computer is in the screen, it is the taxable. yusef: this is the world's most powerful thinnest computer ever. you can feel that, 4.6 pounds.

now we can provide businesses, enterprises, and consumers the ability to use office in a way that you have not been able to do before. pimm: that was hard to get away from me. yusef: the draw of using office, creating new opportunities for students taking notes or graphic designers. that's a big part of why we are in the hardware business. pimm: price point? yusef: high-end, starts at $1500 and goes up to $2000. this starts at $899. pimm: it's ironic that you are saying the high-end is $2000 for a laptop computer with how much computing power? yusef: as much as any device out there. tell us about the surface, as you said this was the genesis of creating this laptop. yusef: correct. this would compare next to the macbook air, but this is 50% faster and a tablet they can

replace a laptop. for students and mobile professionals, it has all the power, it is one of the thinnest computers we have done. it allows you to do everything you want. a tablet and a laptop. pimm: this is under $1000? yusef: yes. pimm: what is this? yusef: the brand-new live near -- linea -- lumiere. we have gone back to refocus on two segments. windows fans and business users who want a productive device. we want people to have a phone that they can run their business on. this is the world's most powerful business phone. it comes with office. runs windows 10. you can see the apps coming across. and we have a special adapter where if you plug it in you can use it as a pc. you can have a keyboard. pimm: just make that the pc with

your own monitor? yusef: pimm: exactly. -- yusef: exactly. pimm: i noticed that you have your band. what did you do today? yusef: 7000. average day. pimm: [laughter] that was the corporate vice president for windows devices at microsoft. we have much more coming up on " the bloomberg market day."

this is "the bloomberg market day." i'm pimm fox. time for a check on the biggest is this headlines of the hour. lions gate videos and stars, they could become the industry's next big power couple.

both in reportedly advanced talks to merge according to "the los angeles times." their biggest franchise, "the hunger games," is ending and starz has been looking to beef up its content as it looks to carry more disney movies. well, that's wrapping up, looking for more content. messing with success? 442 years southwest has made money emphasizing short-haul trip to the united dates, but beginning october 15 they start service to six cities in latin america and the caribbean. it's being called the equivalent of insider trading, the unregulated multibillion-dollar world of fantasy sports. two of the more popular websites have barred employees from participating in online contests for money after a draft king's employee mistakenly posted nonpublic data on the internet and then reportedly one $350,000

playing the same week on arrival website. both companies released statements denying wrongdoing and defending their integrity. you can of course always read more headlines and more detailed stories at bloomberg.com. now, states and cities across the united states rely on $3.7 trillion in municipal bonds in order to pay for things like roads, schools, and water. even with a backlog of projects, borrowing has dropped to the slowest pace in over a decade. however this lapse in public funding made fuel a private-sector opportunity. at the most influential summit, jason kelly asked mark lifshitz about investing in infrastructure. mark: infrastructure is in or miss. we needed every day.

either it is rebuilding broken down rickety infrastructure in the united states -- the average water system today is 47 years old. or building brand-new infrastructure. you don't have the backbone and you need to drive the a calm -- the economy if you don't have infrastructure. that's the starting point that makes it interesting. once you come to the conclusion that these unnecessary assets andsomeone build, own, operate them for long periods of time, then you can look at investor opportunity, buying something that has long, stable, predictable cash flows with hydration and attractive returns for the risk, which is hard to find in a volatile world. pimm: investors seem to have gotten the memo around the world more so than in the u.s.. what is missing in the u.s. in terms of the infrastructure really catching on? >> it is in area where we have

lagged in terms of delivering the product and as an investment allocation. it's clear that the european institutions were well ahead of the american institutions, canadian institutions, the sovereign wealth funds around the world all got to infrastructure sooner than the u.s. funds, endowments, and investors. they are catching up. the u.s. investor base, we have experienced this and we are absolutely starting to understand that there is something missing in their portfolios today, this is where they can see stability in an uncertain world and get a good return in terms of current income and long-term capital appreciation. >> $3.1 billion, one of the bigger infrastructure funds out there, how do you see that money being allocated? >> we have been very fortunate to build a big and successful business in this area and i think it has been married to this view that investment

an activeture is business. it takes all the skills that we can muster around how you build partnerships and find opportunities at the right time, bringing in operating skills and public affairs capabilities, marrying that to the superior turn for the risk. i think that what we have seen is the demand from investors rising. the opportunity set is out there. this has probably been our in terms ofd investment and i would not have asked acted that with interest rates being so low. >> given the volatility, to say the least, around the energy market right now, it seems you are shifting some of your focusing your group towards the infrastructure piece of energy. what is the play there right now? that's the sharp contrast, the volatility of oil and gas relative. they are almost polar opposites.

what's happening is the volatility on the energy side is driving a lot of the opportunity on the infrastructure side, which is really about supplying investment opportunities. if you are an oil and gas company, the last thing you are going to do with finite capital 's put it into long dated fixed infrastructure with a lower your coret is in business. we are seeing it as an opportunity to partner with strong operators, strong companies making intelligent capital allocation decisions. we partner up in canada to build out multibillion-dollar midstream systems to serve their business, which is a terrific new shale opportunity so that one can invest in the shale and that will be a commodity exposed decision with attractive potential outcomes and invest in the infrastructure through all of that product to get from supplied to demand. lipschultzwas marc

at kkr. coming up, we are getting ready for the market close. biotech shares are dragging the nasdaq and the s&p 500 lower. we are seeing a rally par after five days of consecutive games. bringing things to a close, coming up, next. ♪

pimm: this is the "bloomberg market day." markets close in less than 10 minutes. let's head to the market desk, where julie hyman has a check on a stock making news. julie: things are holding steady with the dow as the output warmer. the nasdaq has been underperforming all day long. largely because of biotech. up just about 4/10 of 1%. look at mya

bloomberg terminal and the imap function. it seems easily split between green and red. energy and materials have been the best-performing groups consistently today. health care and is -- consumer discretionary stocks have been on the bottom of the heat, so to speak. energy stocks are getting a leg prices.se of oil oil has been on arise after production reports show that it fell in the u.s. last month, so we are seeing crude showing an extraordinary game today. many oil stocks have also been gaining in a high percentage terms today. biotech on the one side as we have been discussing in some the nasdaq biotech index down over 3% coming on the heels of what has been a dismal month for biotech shares. it started when we heard that hillary clinton to eat, or saw that tweet about trying to cap prescription drug prices. we have had some instances of

companies buying other drugmakers and raising the prices on those drug. moving to the other asset classes, if you take a look at yields today there is a growing perception that the federal reserve is going to remain on hold this year. we have not much change in the 10 year yield, 2.04%. in terms of the dollar in where it's been going, games in the dollar have been capped by that perception by the fed. the dow has been falling against the swiss franc. this town-ish session that we have had today, the victim is still trading below 20 for the second day in a row after a streak of about one month above 20, returning to volatility. we are now seeing a come back down to some extent for some investors over the past couple of days, which is reason for optimism. pimm: it has been a good trade for people. julie: buying volatility come it has. pimm: thanks so much.

i want to bring in the chief executive of global x funds, as well as our own stocks editor. at by i want you to be talking about the specialty for global x funds. bruno: we are in exchange rate provider. is the masterne limited partnership. infrastructure, energy, clearly seeing a tremendous amount of volatility. the best way to play it is these infrastructure names with business models that make money by transporting or storing energy so that you are not as exposed to energy prices, valuations are very attractive. -- pimm:he exchange enterprise partners, that is the biggest waiting in the etf. what is the index that that attracts?

a selective index, 24 components, the largest master liquid at partnerships in the mlp infrastructure space. pimm: why do you suppose these stocks are down so much? they are mike: somewhat isolated but seem to be treated like production companies. visit the credit risk? is that part of it? there are two risks associated with these companies. what is rising interest rates. the other is indirectly affected by oil prices, particularly to the effect of production experts decreasing substantially in u.s. the amount of oil and gas going to these pipelines stored by these companies. cash flows with decreased substantially. looking at it from a valuation perspective relative to earlier stages of production or just

regular energy companies, valuations are very attractive in our opinion. master limited partnerships, what is the yield on the etf's? bruno: very attractive, that's part of the attractiveness with these asset classes. it will be very volatile right now, but you can see it collected the attractive yield. pimm: thanks much. well done. mike regan, bloomberg news stocks editor, and bruno del ama, chief executive of global x funds. coming up, bill ackman of pershing square capital will be live next on "bloomberg market day." ♪

>> we are moments away from the closing bell. ♪

the s&p struggling to add to the strongest rally in the year. there was a slump in biotech shares. joe: the question is, what you miss -- what did you miss? they think the bull market is aging, but not over, we have the charts. joe: the activist hedge fund bill ackman visits bloomberg markets most influential summit in just a few minutes. alix: stock traded near -- after disaster and of september. glencore is not the next lehman. we begin with the markets. s&p 500 posting its first decline in six days. biotech registering another big loss. they down did