betty: good morning. here is what we are watching this hour. a new to this in the beer wars. snubbed,t offer was saying, try harder. 100 billion for the proposal was just too low. of -- asot the results candidates prepare for their first national debate next week. ceo will join us live from the new york stock exchange just as the flash did a company goes public. we are a half hour into the trading session so far. it looks like another big rally. all the asset classes are moving up. let's get to julie hyman with details. the sixth a day in seven for a major rally, resuming the

gains that have been caused. .8%. if you look at what is driving it, it is partly commodities related once again. is the only gains we're seeing in energy stocks. take a look on my bloomberg terminal and you can see exactly what is going on sector wise. arestrial and materials also gaining here in the session. here.ities related initially, we were seeing biotech still weak. it looks like it has recovered and we will see how it fares throughout the session. an individual mover, one of the best-performing stocks on the s&p, happening with latebreaking news. has managed to get two of his representatives on the board of the company. just yesterday, it was exploring options for its oil and gas unit. it has really been battered this

year because of the slump in commodities. shares coming back by 7.5% today. it is not too early to talk. -- talk beer. the potential deal we're , uphing, london trading up to percent even after bud after millerven rejected the bid for the company. in dollar terms, $99.7 billion. it is still lower than apparently what miller was looking for. shareholder said it supports it. analysts are telling us this is a starting point for negotiations. it looks like there is still relative optimism on the part of analysts that a deal will get done. what are the implications?

something we have been talking steadily about. if we see the deal, what will happen? to the co-venture in the united states? the perception was they might end up buying the balance but its shares are actually lower today. another thing i have been looking at is market share. this is something i first started talking about when the deal was first brought up here just because bush is sewed dominant globally when it comes to beer. in terms of its global beer market share, next is miller, then you see heineken and all the way down there -- it did end up with another chunk of the joint venture, its market share would go up. it is interesting how dominant it already is. it does have geographic hold. that is one of the reasons they're looking for the deal and the other is beer sales are slowing down. they are.

people prefer other kinds. summer is over. that season is over. thank you so much. let's get a check in on the headlines this morning. vonnie has more from our news desk. vonnie: thank you so much. russia is adding a new dimension to the military campaign in syria. deploying point warships, firing missiles from the sea. russia's defense minister says they fired 26 mitchell's at 11 objects, destroying them all. russian and u.s. exports cordoning strength today. hit 112 targets in syria since their campaign began september 30, about the intensity of strikes increasing. navy ships fired 26 missiles at 11 objects wednesday and destroyed them all. the american commander in afghanistan reportedly broke their own rules on the attack in

the hospital. the new york times cites officials with direct knowledge. campbell is said to believe the truth should not have called in an airstrike when no americans or afghan forces were in extreme danger. catch a break in south carolina, more people in the columbia area are being told to evacuate their homes because a week and dam-- weakened dam. flooded roads are making it tough for buses to get through. deaths are blamed on the flooding. president obama has one final herder -- hurdle before he can could -- declare victory on the trade agreement. he has to persuade congress and the public to go along. yesterday, the president met with agriculture leaders. he said it was a deal that could boost exports by eliminating barriers. president obama: i wanted to get the best possible deal done for american workers and

businesses and that is what we have achieved. he has to eight 19 days before signing the trade deal and in congress would begin the process of voting on it. the u.k. prime minister is proposing changes that will encourage more construction of starter homes. he says housing is an area where his government has so far failed to deliver. people under 40 are struggling to buy homes. premise or cameron is pledging to make the turn around. at our headlines now. you can always find the latest noons at bloomberg.com. stocks are rising around the world today. indexl country world advanced for a sixth consecutive day, the longest run of gains since april following what we have all seen, a dismal third quarter. hery summers told bloomberg is still cautious.

>> i think the risks are the downside. i think you look at the it wasialized world, and ok-ish for the last several years. beingat was in part propelled by emerging markets. you now have emerging markets sub merging. now,: joining us catherine, a managing director at goldman sachs asset management. larry is such a debbie downer, right? the markets rally overnight. what you make of what he just said? he thinks there is still downside here. >> no doubt it has been a tough place to be an emerging market they have underperformed by more than 50%. it is also true most great investments start from a place

of discomfort. we argue this is a good time for investors to stay allocated and maybe for the brave few to add a little more. but selectivity will be incredibly critical because we think a lot of value to be had there is at the individual company level. not countries but companies. catherine: when you think of whether or not you can make money in emerging markets, it is quite simple. it is a question of, can you find high-quality companies trading at a discount to their intrinsic value? one thing we like, a supportive argument of being active, a big part of our portfolio, stock exchanges. all over emerging markets. the market does not like them because they think we're in a negative part of the cycle and that it could continue. i do not know if it could. i lack the crystal ball but i think these will be good companies. attributes lot of

that we like. they are monopolies. --always say cop as competition is the killer disease for these companies. because they are monopolies, they have icing power. you do not need a lot of people real estate. you just need technology. ultimately, they have almost 100% of convergence of their earnings in cash flow. they are trading at attractive valuations and we like that as investors. betty: when you say look at individual companies and do not go sector wise or countrywide, does it mean we are far off from a bottom here in emerging markets? catherine: i would think we are deftly getting closer to the bottom. for example, if you look at the last quarter, it was the worst quarter for retail flows, for emerging markets since 2008. we track the merrill lynch investment manager survey and are thenvestment, they biggest underway in emerging markets more than they were in

the lehman crisis. we actually probably are coming from the bottom here. betty: you know the phrase comes to mind, how close are we? we are close to the bottom but how close? feels this could be a good time to stay allocated because we look at valuations for the asset classes and they are trading at historical discounts, their own levels as well as levels of the market. investors should be brave and the good place starting a great investment stay allocated or potentially added that more. betty: though the imf cut their forecast again? catherine: right. it is not just a matter of what it looks like. i agree with you that it is challenging and we should talk a little bit about china as well. at how much is already priced into valuation. a lot of the bad news has already been priced in and you can find great companies at good prices, which means they are good stocks and they can make money for you over time. betty: you mentioned china.

if we want a sense of what we will get out of this, we just have to wait to see the numbers we get from china? i think china is important to the overall growth story. there are interesting investment opportunities here. gives us a little bit of concern is that china is the -- in the middle of a great transition. it is well known from manufacturing and industrial to a consumer and services economy. what is newly interesting at least to us is the fact that most market participants expected this to happen very orderly, that old china would go to bed and new china would wake up refreshed. betty: why would anyone think that? complicated.ly catherine: a lot of people thought it would happen more orderly. we should expect this to be a more seismic event. cangood news is economies

also create great investment opportunities and we see some of those in china right now. much forank you so joining us, catherine of goldman sachs asset management. bloomberg intelligence has peru, where the imf world bank meeting is taking place this year. we will kick things off with the director of monetary affairs for the imf at 12:00 p.m. eastern time today. tune in for that interview but first, here is what is coming up in the next 20 minutes. the bloomberg politics team hits the road to hear what voters really think about the presidential candidates. we will get their take first on the democrats. cannot figure out where to put your money? what about putting it -- we will talk with a longtime investor about why dubai is the next hotspot for residential real estate. another day, another ipo. we had to nyc this hour. inrt storage of the value

the flash storage market because there is the next unicorn company that went public. we will be back. ♪

betty: good morning. first story, twitter shares are down 25% this year. that is not scaring off a saudi billionaire doubling down. the investment firm on out twitter's second-biggest shareholders. it says its holdings are worth about $1 billion. dorsey its made jack permanent ceo. he united auto workers union is turning to go on strike against fiat chrysler tonight. and to the two-tier pay system. it represents about 40,000 fiat

chrysler employees. shares of samsung on its biggest boosts and six years. stocks up nearly 9%. 7.5%.climbed you can always get more business news at bloomberg.com. let's head back to the markets desk where julie hyman has a check of the company movers. m! is seeing a plunge. 18.5% after they came out with results that missed estimates. china remains an issue. that is a big deal. it gets 50% or more of its revenue from the country. it had various issues there. sales were up 2%.

analysts were looking at at a gain of 9.6%. you can see there was a bigger plunge, a huge plunge in sales of china. it tried to make a recovery here. represent a reversal of several quarters of negative sales on china but it is not enough and is surprising to investors. outanto is another company with earnings, also disappointing investors coming and far below what analysts had been anticipating. it has been coping with the decline in commodities prices and also currency fluctuations as a result of all of this, it will be cutting 2600 jobs. shares turned around. the company still kept its longer-term target for growth. rounding out the earnings trio, a quick look at adobe systems, that company forecasting 2016 sales below analyst estimates.

also, a change in how it charges customers. it has been migrating customers to the cloud. it says it is changing the way it bills shares, down by 6%. stephanie: thank -- betty: thank you the democratic voters are not sold on hillary clinton or joe biden yet but they generally like bernie sanders. mark halperin and john heilemann sat down with voters in new hampshire and iowa to get there insights and here is a taste of what they really think about hillary. clinton, three words or fewer. >> experience and knowledge. >> i would say experience and caring. still impressive. quite if you had a family situation and could call any of the three for help, which would you call? auxiliary. >> hillary.

accomplished leader who has continue to persevere. she has seen how the system works, so she might have a better chance of getting things accomplished quicker. to awoman stepping in predominantly male arena and she had to hold her own with them instead of being who she is. >> in general, she speaks articulately about her position without having the edge and the kind of woman thing, which is a little offputting. i think that could off a lot of male voters. john is joining me now on the results. john, it affirms what we know. about are very confident her experience but it is still a likability factor, her achilles heel. john: no one doubts her resume.

no one doubts given all of the things she has done, being secretary of state, that she is qualified to -- for the job. it is a huge thing. getting over can you imagine this person sitting in the oval office, that is a big thing for a presidential candidate. there are still reservations mostly related not to issues and not to resume, but a little bit about relate ability. was a little more favorable to her. the new hampshire group marked at the end of that clip we had bit ofthere was a little a skirmish that broke out among his focus group about some of her personal qualities and characteristics. people holding back in a slightly more negative way. she has still got to do more stuff to close that sale. betty: exactly. someone who is not helping his bernie sanders.

john: an extraordinary thing in both groups. these are not people committed to clinton or sanders or anyone. democrats who have not decided. across the board in iowa and new hampshire, there was a lot of possible -- positive feeling for bernie sanders and for his issue positions. could nothe voters name specific things hillary clinton was proposing but they all know what bernie sanders is four and they all know he is a socialist and they do not mind. they think it is great. it is not part of the corporate democratic establishment. people,bout working trying to stick it to rich people. they are all for that. most of them in new hampshire said he would win the new hampshire primary and many of them think they will win the imac -- iowa caucuses. a lot of people can imagine them in the white house although some of them think he might have a hard time in the election. thank you for joining us. managing editor and cohost of "

with all due respect." ♪

betty: welcome back. where is the hottest place for commercial real estate investors to put their money? forget new york, san francisco, or boston. what about dallas, fort worth? even as real estate investments have taken it on the chin recently, there is increasing optimism for a turnaround. the global head of real estate butblackstone, john gray, let's get some perspective from steve brown, the bill young manager for american century investment. say, whylot of people is there a big gap between the click and private equity markets right now? what is that telling us? the average read today is trading at a 30% discount. there is a big gap.

it is down about 3% year to date. there was concern the fed would raise rates and higher rates are perceived as bad for real estate valuations. the fed has not raise rates and the average rate is trading at a 13% discount. believe there will be more merger and acquisitions over the next six to 12 months. is that about how much it is worth? about, it's the fed interest-rate increase could be worth? steve: no, i think the discount overshot in terms of what the fed was talking about in terms of raising the fit -- the hedge fund the market extrapolated that to say the rates would go higher for longer. basically, we have not had it at all this year. either at the end of this year or next year. real estate fundamentals are in excellent shape. there is more demand than supply.

rates are raising rents 4, 5, or 6% in a land where inflation is only 2%. stronger ability to raise rents than current levels of inflation. demand is greater than supply. i think we will see either what we have seen is records of that money going to real estate opportunity funds. that of hadd funds record years raising money for opportunity funds. 13%hey're looking at a discount versus combined the open market, that is the better value. right. just hang on and we will talk more about the property market, especially in dubai. much more is ahead. ♪

betty: live from bloomberg in manhattan, you are watching bloomberg "market day." i am betty liu and we are seconds away from oil inventory

numbers which have been extremely important to watch. julie hyman has been watching the data. the rumor that we will see the numbers pulled back. julie: potentially. they reported earlier a drawdown in inventory, so we will see with the department of energy has to say when numbers come out in a few moments. now.looking at them we saw, according to the energy department, an increase in inventory of about 3.0 7 million barrels, contrary to what we heard coming from the american petroleum institute. distillate inventories down about 2.5 million barrels and gasoline inventories of built up about 1.9 million barrels. a turn of oilhave they can look at and i will pull it up on the bloomberg terminal. there we go. we are seeing it come down. it had been climbing for the fourth straight session with the longest rally in oil prices since april. right now, oil prices are higher

but hearing the game as we see .8 of screen and up about 1%. you tend to see bouncing around after the numbers come out as analysts try to figure out what to make of them. the oil rally began friday when we got the baker rig count and showed a drawdown on the rig count, said there has been optimism that you might see more stabilization in supplies versus demand. it has not been very robust, so we will see what the number -- just one number -- but when it does. betty: and even more today from citigroup, he said oil is going up. maybe back up to $60 or $70 a barrel. julie: with volatility. betty: the big caveat. thank you. the surprise rise in inventories. still with us is steve brown, of folio manager at american century real estate fund. whatis a good segue into

we talk about around the world, including the by -- including dubai. steve: exactly. points, so not that much but our global fund has done very well this year. we invested in european property stocks up somewhat this year because of quantitative easing in europe that has been aggressive, rates are low, and you have said they are willing to do more, so that has been a supportive environment for commercial real estate. betty: what about some of the areas or countries that have seen or have been plagued or hit hard by the pungent oil prices? interest --f fred but that of a fed interest rate? places in the middle east or canada? and in hong kong event. steve: we should talk about the asia-pacific markets because the economies are negative this year and they have been hurt because

of the rolling over or slowing down of the china economy and prices. coupled with china's policy change to weaken the currency in august to make it more the countriesth in the asia-pacific region and that that sat a negative impact on the perception of economic growth and the prices of many property stocks in the region. stephanie: both -- betty: before we go, you have talked about divide. steve: yes, there is a property on the coast benefiting from an uptake and family formations. as people have more confidence, they move out of the house so family formations dropped 30% to last,is year versus versus 900,000 last year. when family formation's stock, the first move out of the house is to a rental apartment, so demand is greater in supply, particularly on the coastal markets. so it is well-positioned. another name is a los angeles taste office and i think we

talked -- based off as an ethically talked about the technology, internet, etc. southern economy in california they areg up and seeing a nice uptick in demand for office properties in west l.a. so much.eve, thank you steve carell, portfolio manager at american century fund. let's start with our first headlines this morning. -- steven brown, portfolio manager at american century fund . let's start with the first headlines with vonnie quinn. vonnie: in the latest poll, ben carson pleats in three states -- ben carson matched against hillary clinton, bernie sanders and joe biden and he scored better than all of them in ohio, florida, and pennsylvania. every president since 1960 has least two of the states. kevin mccarthy is telling conservative republicans -- "i am not john boehner." he is trying to get enough

support to 60 john boehner as speaker of the house. they may walk his election unless he agrees that there is immense. california stepping up their efforts against global warming. signs ofjerry brown bill aimed at increasing the state renewable electricity is 50% by beer 2030. democrats also want it to cut petroleum use i have but that is a global aids back auto industry. houston astros beat the new york yankees last night in the american league wild-card game, 3-0, and next up is the kansas city royals. what the yankees, the start of a long winter. of ar the yankees, a start long winter. you can always find the latest news on bloomberg.com. betty: thank you so much. vonnie quinn with headlines. forr a late third quarter ipos, there is one company making a splash, your storage makes the public debut on the nyse and the make all flash

storage, a technology that holds digital information that becomes vital when customers is the cloud. alex is at the new york stock exchange with the ceo of pierce storage. alex? alex: i am on the new york stock exchange and there is a lot of orange because we are watching the ipo and i'm here with got the thing, the ceo. about $16.85, under the $17 ipo price, how do you feel? aott: we knew this was marathon and not a sprint. i strongly encouraged our employees not to watch the stock on a daily basis. we need to think in terms of quarters and years and our job is to grow the business and we let investors value it. alex: pure has been in the unicorn club that we have watched with startups and you are opening up to investors who can be more fickle than some of the folks in your private rounds . what are you doing to mitigate some of the pressures come with this quarterly reporting process

as you are not in the public market? to build never set out a mythical beast, we wanted a long-term, enduring, public company and most of our companies are public and they want us to the public because of how much they count on us to deliver business medical data for them. we need to continue to grow the grow it prudently. it is a very large market, a $24 billion to one storage that we are convinced is going flash, the biggest disruptor to hit in 25 years, and we think we are in a position to play for number one. alex: wise flash of a deal in the cloud-based technology era? scott: flash is inside her cell phone but also inside that big consumer tech data centers. until her, it was never packaged in a form that every business could embrace it, and we managed to bring down compatibility hurdles to embrace flash and we have many more customers that can get access to the technology benefits.

alex: bringing down costs, that makes me think of the other enterprise technologies out there, the hardware, that has become commoditized. how do you mitigate the fear that/could come commoditized -- that flash could become commoditized like other tangible tech items? propertye introduction -- intellectual property you need is a sophisticated software and redesigns the hardware. there was cloud automation unit for success and our customers can manage their storage footprint from a cell phone now and we are changing the business model to be more cloud friendly. we do not have of the competitor that has any one of those right, so we feel like two-year technology lead and innovation delivers great value. alex: the stock around $60.79 and that puts you around $3 billion which is what you had in the private round led by price. where investors expecting a popping valuation? why are we not seen a bigger markup on what you are worth?

scott: i would say managements job is to grow the business and the business is growing quickly. we did 300% growth last year after that round of financing and we are still growing in triple digits year over year. it is a very large market opportunity. we have to take care of growth and the stock price will look after itself. alex: when do you become profitable? scott: we are not in the position to make forward-looking statements in the quiet period. let me say we are growing revenue well faster than expense, year over year, a $1.50 in eacht -- expense and over the last years, we have increased the operational stability and we are in track for play for number one in a large market. alex: thank you, scott, ceo of pierce storage. betty: thank you. much more ahead in the next 20 minutes of the bloomberg market day.

long road to recovery, pledging to finish these of recalls by the end of next year but has the omission scandal hurt the automakers reputation beyond repair? a motorcycle going 115 miles per hour are a little less risky with wearable technology. we speak to the ceo behind the , and airbag jacket inside a jacket. a story not going away anytime formalb inbev making a public offer to sab miller after that snap yesterday. is that their time the charm? we will find out. ♪

back. welcome just over one hour into the bloomberg "market day." time for our business flash, sab miller has said no way, know how to the biggest beer deal of her. they have unanimously rejected a $100 billion takeover offer from ab inbev. sab miller says the offer is substantially undervaluing the company and to earlier bids were also rejected. the state of new york has launched an investigation into two of the biggest sports sites, checks that -- eric snyderman is looking [indiscernible] and there are allegations that employees may have made money using company data not available to the public with insider trading. shares of samson got the biggest boost after the quarterly results the estimates. stocks up nearly 9% in trade. the electronic giant had sales climbed 7.5% lead by this late

screens and chips. -- led by display screens and chips. you can get more business news at bloomberg.com. in 10er that about minutes or so, we got inventory numbers that came out on oil, a surprise rise over 3 million barrels reported by the department of energy. ring up that s&p 500 chart because you can see immediately after that a quick tip on s&p 500 and now we are pretty much erasing all of the gains from earlier. as you saw in the oil chart, bring that up as well in oil prices, and immediately, immediate fall off the cliff on inventory numbers. let's see what is going on overseas where bloomberg mark -- where bloomberg's mark barton has the reaction in london. mark: good to see you. stocks in europe rising for a fourth consecutive day, the longest stretch of games and investors speculating global

banks will keep monetary policy as stocksmbat growth rise. volatility is falling and the fear index in europe, it is down for a sixth consecutive day and that has not happened since july. 90 stocks leading the way in london today. a lovely staff -- in europe, rising for the seventh day, the ,est run since december 2013 morgan stanley upgrading shares of anglo american, and php, and by the way," rebounded since falling a record 29% last monday and it is now 78%. by the way, a gauge of energy shares is poised for the biggest seven-day rally since 2008. oil prices for a fourth consecutive day. i love my stats that i just bombarded you with my favorite. this is the chart of the day. the fact of the matter is sab miller shares are trading below

42 ab inbev offer price of .15 pounds. it significantly undervalues it is what they said that it is telling us investors think this deal is not going to go ahead. have a look at what is happening to the euro because it is falling once again against the dollar and the most in a week. german data. german industrial production unexpectedly dropped by 1.2%, germany is influenced by the slowdown in china, emerging markets and that leads to the question of all questions -- is that mean the ecb will have to expand or extend qe? i will leave that for you to answer. betty: leave me with the hard questions, mark. thank you so much. mark barton in london. for a look at how u.s. market, i

mentioned how they are trading with oil numbers, pimm fox has the latest from midtown manhattan. as you said, he saw the decline s&p 500 when oil inventory numbers came out and the same thing in the nasdaq index. the nasdaq is higher and treated by not the lowest level of the session. it was up to 4788 and s&p 500 index -- rather, the nasdaq right now up about 11 points. i want to mention a couple of stocks moving the nasdaq higher and that would be cisco and sochi and the shares of intel. higher anding bid moving to index up. i want to focus on stocks particularly, one is adobe, julie brought it up earlier. they cannot and they said the fiscal year ended november 2016 but for 2.70 dollars a share, down from the previous estimate -- they said maybe currency headwinds as well is the way they changed buildings of

customers -- billings of customers will affect results. betty: thank you so much. pimm fox at the nasdaq. they fight in announcing will recall diesel cars with rick admission systems --volkswagen announcing they will work called the so cars .ith admission systems as you can see under chart, known as a breakaway gap showing up with volkswagen shares, a price swing that happened so quickly it fractures the progress of trading and disrupts an existing a range. it is similar to what we saw with shares of bp after the 2010 oil spill. you can see that factor clearer on that chart. traded, basically it traded a range. for more on the rocky had -- the rocky road ahead, i want to bring and jamie in detroit. is it fair to make that comparison of what volkswagen faces is is that is what bp did?

jamie: it certainly is a crisis and it is going to have lingering affects that will be very expensive, so in that sense, it makes perfect sense that the stock charts would resemble one another. has made so much progress and they were trying to pull away billion tock of $40 $60 billion automakers, ford, gm, honda-sized automakers and then you have toyota, all by itself, so big and profitable, worth about $200 billion and vw when up to more than $100 billion, one hundred 10 billion dollars and now they are right back, the rest and it's what it illustrates how hard it is to really catch toyota. every time they try to push to be the biggest and the most profitable -- betty: something happens. jamie: they get caught. betty: look what happened to gm and now volkswagen. they say they will fix the cars by the end of next year but do people believe that?

will hearhink what we a lot of in the u.s. and perhaps from the house committee tomorrow is going to be complaining that they are not owing to start until january. in most of the cars needed a software fix to modify or take out the cheating software, and make the thing run clean all the time, that should not really take all that long. there will be other steps to know how much the performance is diminished, what kind of compensation the owners demand for that, but i think if you are the california resource board or the epa, why don't you say, why did you stop polluting now we figure out details later? betty: thank you, jamie. motorbikes,s to they have spent more than 40 years perfecting their protective gear for bikers and the time company is ready to take the mission to mars. it will get details from this ceo, next on bloomberg "market

day." ♪

betty: welcome back to the bloomberg "market day." i am betty liu. whether you enjoy cruising the italian countryside on a motorcycle like these two guys are like speeding down a ski slope like one of the fastest men or if you prepare for commissioner thomas like nasa's deputy minister did, dainese has protective gear for every occasion. the italian company has spent perfecting years wearable tech for all motorcycle, skiing, and space in busiest. i want to bring in matt tiller with dainese and the new ceo. matt: thank you very much. full disclaimer, i wear a lot of the gear and bride a lot of motorcycles and i'm glad to have your cristiano. finally, we will get airbag

suits, talk to me about the release of the new technology. cristiano: the new technology is finally coming to the u.s., it is a break the technology that has two key components. one is the sack which has technology different from what you see in a nearby in the car. it has parts that go throughout the dax -- throughout the jacket to deployed to protect every shop -- every shape around the body. interesting, iy cannot wait to try even though i hope i do not have to crash test it. you were bought by an investment firm last year and i was thinking, how it they going to get out with ipo sale partnership but this is a long-term investment, so they see real growth potential in dainese. christiana: they have a track record of turning around businesses and investing in companies. just to name a few, gucci, saks

fifth avenue, and they currently have about 35 companies in four and they manage equity, so this is a long-term investment and not unheard of for them to go over 10 years with their investment. matt: what does the picture look like in the u.s.? everyone in europe watches the top motorcycle racing league and they know that people where dainese but here in the u.s., it is not well known. christiana: that is the case. the company has traditionally focused on european markets, typical of many thai companies, by the way. as we pay attention to the north america market, and we will in the next few years. matt: and you know something about the time brands in north america because you are the ceo poured to cardica for this. what did you learn at ducati that you bring to dainese? cristiano: there are

similarities, racing is one of them. technology, depth in the brand, passion for the project, quality, key elements of the brand. what i learned at the coffee to apply here -- learned that the khadi to apply here is to make sure people learn the story of the phenomenal company that i'm lucky to be running. matt: we are doing that right now and obvious the, there is a soft spot in my heart for cristiano and the company and the brand and products. betty: i can tell. matt: also interesting story, wearable airbag technology. betty: i want to see what one of those jackets. matt: that can happen tonight. betty: thank you so much with cristiano. much more ahead on the bloomberg "market day." ♪

betty: welcome to "bloomberg market day." ♪

betty: from the york, good morning. here is what we are watching this hour. in the takeover wars, notice cool? $100 billion. they still turned out to third offer from the maker of budweiser. can this get through congress? shares of samsung of the most in six years after earnings jumped 80%. you look at the company's new strategy. ♪ betty: we are 90 minutes into the trading session on wednesday. julie has the latest. we did turned lower after this oil numbers? julie: yes. betty: i can see you're having a

little bit of technical trouble. ok. julie: i got it. i want to tell you quickly about some breaking news. it has to do with a personnel change it goldman sachs. a treasurer is apparently stepping down. that is liz robinson. she will be advisory director at your end. that was according to an internal memo. they switch in treasurer at goldman sachs. i doubt we will see any stock reaction. it is up by about 1% on the day. switching gears to talk about the overall session. we are coming off the highs of the day. you can see the three major asked -- averages, it does seem to attract the movement we've seen in oil today. i have the intraday chart of the s&p 500 versus oil prices. you can see pretty clearly they have tracked one another. both bouncing off the lows.

but we got the inventory report around here and he saw the s&p 500 also go lower. energy stocks are not the biggest group in the s&p 500 fell yet seen in the last couple of weeks correlation between stocks and oil prices. betty: we have camino oil is volatile. -- and we know oil is volatile. julie: it did not sort of plunge down and stay there. if you look at prices right now i think you have a chart, oil is little changed. ups actually in the green, about one half of 1%. this illustrates the almost stubbornness of the oil market because we had some recent supply numbers that are not necessarily been positive. they have at least been volatile, showing a not really clear trend as turn -- in terms of drawdown inventory. it looks like we are heading towards the longest rally in oil since april.

here is the rally we have seen over the last four sessions. of more than 7%. as you alluded to, there are some strategists who are little bit more optimistic although that is by no means a universal. betty: not at all. still a lot of oil forecasting. thanks so much. let's look at the headlines this morning. nie? >> we start with the fighting in syria. russia is attacking islamic front. seahips in the caspian fired missiles at 11 targets today. that in addition to russian airstrikes. it was accompanied by a syrian army official -- offensive. they think u.s. forces broke their own rules and an attack on hospital. the new york times citing officials with direct knowledge of general john campbell'd thinking.

he believes troops should not of called in an airstrike window american or afghan as were in extreme danger. in south carolina the worst may be to come for residents coping with record floods. officials warned that a huge amount of water is flowing towards the sea. that is threatening dams and is forcing evacuations. the flooding is blamed for at least 15 deaths. house speaker john boehner wants to dampen optimism about it. deal to raise the debt limit in the last hour he discussed it. >> there is no agreement on how to do this. there are discussions about how to do it. but nothing else to report at this time. he will not promise you will bring of the debt limit bill before he steps down as speaker in of the month. the debt limit must be raised by run november 5. california is stepping up efforts against global warming. aternor brown signed a deal

increasing renewable electricity use by 50% by 2030. democrats also wanted to cut the trolley of use by half but that proposal was not back by the oil industry. that is a look at headlines right now. you can always find the latest at bloomberg.com. betty: think he so much. the third time is not the charm for ab. the $100 billion offer said it had substantially undervalued the company. discuss this beer saga is duncan fox. $100 billion is not enough? it seems to be enough for the big shareholder. what gives the board the gusto to say no? feel thatthink they the influence they have in africa and latin america offer excellent growth potential.

they have had a couple of tough years because of currency but the underlying business is strong. excellent demographics. they feel it is undervalued at the moment. betty: what price is likely to get done? duncan: that is a good question. feel 45.s suggest they another two pounds 85. i have no idea whether that would actually get an agreement on the board. they have indicated they want both parties to talk in may well even except 42.15. i think the whole process today's not getting the talks to happen. betty: out three of being the biggest shareholder, one quarter of fab miller. -- is there possibly

any other suitor out there that could force ab's hand at all? duncan: i don't think there is another suitor that could get of $4nefits or get one billiontogether -- $104 together. there is a timeline of october 14 which is looming quite quickly. they installed epidemic initial announcement about two weeks ago. i think that is a key problem and why it may have gone public today about what the are trying to do here. betty: just thing on for a moment because of the more perspective. i want to bring it marshall sun andshine. marshall, in your day you have seen more than one big megamerger in this industry. are you surprised at a $100

billion takeover could be spurned? >> i am not surprised that either the acquirer or the target is resisting. i think there is probably of little bit more give on price and this is going to negotiate out. i think that quite separate from price there are some real serious regulatory issues. if you can -- you can see that in the stock price of sab which is not gone towards the market price. there is a market share in the u.s. so that some pieces of the empire would have to be broken off such as the joint venture off such as the joint venture that one of the parties has with coors. there is other antitrust concerns in emerging markets. this will go to some extra twists and turns. i also think this is very much the product of the chief capital era we are in.

this is using very very cheap debt to make a cash offer for expense of company. betty: for you, it is not at all incidental? this comes ahead of all the speculation that the cheap money is getting expensive? >> not at all. janet yellen is telling the world that is soon she feels empowered she will raise rates. we cannot have such cheap money forever. this is a pricey coveney all ever -- already -- pricey company already. they have had pressures on them. when you put these two together butwill get some synergies you are paying a full multiple to get in there and you can only do that with the benefit of chief capital. the same situation in 3g heinz and the proposed hindsight and heinz-kraftr -- merger. betty: marshall makes a great point about regulatory concerns. what kind of the best teachers might we see this deal gets through? an: the u.s. would

certainly have to go. china would be very interesting as well. 4% sap market0 share. 4% market share. they may get away with a lot of the other markets. clearly regulators will be all over this point of a global company with 30% of the volume, they will be all over. betty: they will certainly be all over it i'm the lawyers will be all over this as well. arshall: antitrust is back. it was virtually dormant for the longest time for the late 1990's in the first decade of this century. and it is back. it's coming back as the hostile deal is coming back. this might be the final act -- betty: what does that tell you?

marshall: the era of very big mergers. we've seen it in pharma, energy, no beer. -- now beer. a few years ago at&t and t-mobile died over antitrust. there was a whopping $3 billion breakup fee. unless or anything can be easily predicted earlier in the scale of companies or something like nine out of 20 top brands will be under one roof. $275 billion in market cap. betty: great to see you. marshall suonenshine. of ahead, outspoken hedge fund manager bill ackman turning his attention to a new industry. we will hear what he says about the high cost of drugs. we will hear from former treasury secretary larry summers if he thinks the fed should raise rates this year or not. and he will look at samsung's new strategy.

and 80% jump in quarterly profits. ♪

♪ betty: welcome back to "bloomberg market day." time for our business flash. type is running out for fiat chrysler. they will go on strike tonight if they do not have a new contract. they projected -- rejected a proposed the deal. the uaw are present about 40 thousand employees. volkswagen says in january it will start recalling the cars involved in the emissions scandal. up to 11 million cars have software used -- to cheat emissions tests.

highropped from a session that we thought about 45 minutes ago after the latest inventory report came out. stockpiles of by 3 million barrels. expectation was for a decline. it was headed for its longest rally in six months before that report. you can get more business news at bloomberg.com. just a click away. heading towards the market desk. julie has a check on some the company movers, including tesla. julie: getting a downgrade this morning. hr cedilyst that be ramp-up of the model x will be slower than anticipated. stock down to $282. on the spread between the average price target in the company's shares. the average price target is $301. the share is trading at $231. this is the changing spread between the price target and

where the shares are at any given time. that your seven trading below. going back about one year or so as we have seen analysts get more optimistic and is the shares have gone down as well. another omentum name that is getting hit by analysts call this morning is gopro. morgan stanley slashing its price target on the stock to $35. it had been $62. this is a significant downgraded forecast. morgan stanley saying there is week demand for the company'd session products. their price cuts and the analysts are less optimistic for next year. with this price downgrade you can see the shares taking a hit of 9.6%. $27.22 is a record low. a trio of retail stocks. citigroup is saying sell jcpenney and buy shares of

lululemon. their concerned about free cash flow concerns at jcpenney. and they have been experiencing issues with demand for the company. u.s. comparable sales have just started to decline for kors. on the flipside, the audience in the leisure retailers for lulu has been beyond its prior problems it is experienced. and that is where that prefered buy rating. "athleisure."rd, that is my jam. is is a modern-day sweatsuit. i see you in your athleisure. eye is to have a doorman that

asked if i was of mega marathoner? my husband said no, she just wears sweatsuit. betty: all the big names in finance from the spinal yesterday at the most influential summit. bill ackman made plenty of headlines when he talked about who he thinks should run for president. asked abouthle another hot button issue was is the high cost of drugs in the future of the pharma industry. win the most innovative bio-farm industry in the world. those profits get redeployed into already in buying successful companies. investors make money and you get more capital and you have a cell phone filling prophecy of more and more innovation. tom: yostephanie: you heard it right here. you can make a lot of money selling drugs.

i'm pretty sure you can make a lot of money selling lots of drugs, any kind. summer legal. we are talking about valiant. -- factorn a big bite of mike peterson and valiant over the last year. they were trying to merge. that did not work out. valiant has gotten crushed in the market in the last few weeks. bill is not adding to his position but he is holding tight and even the backs their strategy. betty: what else did he tell you about what he is looking at? stephanie: he is not necessarily added names. stake.phelps took a still like the idea. he could add to it later in the year. he still in her life in a big way. sammy and freddie are important to him -- fannie and freddie. his big idea for the 16.

for supports mike bloomberg candid -- as a candidate. they believe donald trump represents and what he is done in his. , mike is the one who is done according to bill. betty: and mike s government experience. thank you. coming up tomorrow you don't want to miss bloomberg's interview with former federal reserve chairman ben bernanke. that is tomorrow. we will be back. ♪

♪ betty: welcome back to "bloomberg market day." oil prices got, hit almost an hour ago. the department of energy came out with a surprising inventory number. the inventory levels climbed by 3 million barrels.

that shocked some folks who thought we would see a decline and see the rally continue. we basically erased pretty much all of our gains. 5.ading it 48. should see ae rally in oil prices and more from citigroup saying we should be back to $60-$70 per barrel. we are about $50 right now. electricity, tesla. the electric carmaker is getting dinged today. this is after the launch of its much-hyped suv. matt: how was it? betty: was the deal here? people are not impressed? matt: i think everyone is incredibly impressed with the product itself but it's not all about the product. we know that elon musk and tesla

can build incredible high end luxury cars. this is no exception. maybe even more so because of the falcon wing doors. betty: wire analyst downgraded? matt: that is one thing we know about elon musk. beginning -- he can deliver incredible goods but he is almost always late. he is never on time. x supposedis model to come out originally, 2013? two years. that is a big delay. analysts like morgan stanley are concerned he won't be able to make his target for production. i'm sure that customers will line up in by his many as tesla can make, but tesla probably can't make that many for a little while. it takes a longtime director of

reduction in the car world. he's been getting little warnings. betty: what is up with the tesla y? matt: yesterday he tweeted the tesla model y, and then instantly deleted that tweet. i'm not sure if that was a reference to the model three or if there will be a lower-priced model x. one of the concerns that morgan stanley has about the model c is that -- model x is that it is so expensive. $120,000 or $130,000. maybe he will come out with a lower-priced version of this. you don't need 691 horsepower, do you? betty: you might. but the average american might not. matt: the average american driver does not been amount of power in performance. in these cars these are top-of-the-line products.

something a little bit lower-priced. betty: last week when they unveiled the model x they were not going to unveil the base price. that uncertainty might also -- matt: it will be high. betty: matt miller, our resident gearhead. obamaahead, president delivering a sales pitch on the pacific trade deal. we will bring you the latest on that. ♪

betty: let's look at what is making news.

vonny: the national guard thinks the worst has been averted at a dam that was threatening to break. some people who left their homes are now returning. still a huge amount of water is flowing towards the sea and could lead more to flooding. nory summers says there are reasons to hit the brakes and harder on the global economy. he said there are plenty of economic headwinds so the fed should not be concerned about inflation. -- i havebeen could been very clear. i think there is no reason to raise rates until you see the whites of inflations's eyes. i see the data out there and i don't see inflation as close to the horizon.

vonnie: he gives janet yellen's performance and complete. -- an incomplete. ben carson scored better in ohio, florida and pennsylvania. every president since 1960 has won at least two of those states. russian naval forces are , targeting 11 strikes. three scientists will share the nobel prize for chemistry for their work on dna. one of the three is at the university of north carolina. the other is at duke university medical school.

that is a look at our top headlines are now. betty: european markets just closed moments ago. for look at today's action i want to go to mark. mark: i was selling you a wasier how the narrative u.s. stocks, speculation, central banks are continue to keep monetary policy loose. from theiring down highs. it is touch and go whether they will stay the session higher. volatility continuing to decline for a six day. look at the minor survey. what a day for the miners, rising for a seventh consecutive group, thendustry best sense of december 2013. morgan stanley upgrading shares

of anglo american, rio tinto, bh billiton. -- on the data front, we had disappointing industrial production data from germany. unexpectedly dropping 1.2% in august. further confirmation it is feeling the effects of a slowdown in emerging markets and in china. want to show you the big equity movers. the sabt talk about miller. they said it is too low, that it undervalues the company. investors clearly think the same as well. looks like an up 7% after the german newspaper it will start

recalling diesel cars with rigged omission systems in january and it was to complete the repairs by the end of 216 -- 2016. and tesco is up by 2.7%. the troubled retailer abandoned the sale of its data analytic unit, raising concern that it will need to resort to a capital increase. did european stocks finished the session higher? it looks like they did. yes, stocks up for the fourth consecutive day. that hasn't happened in two months. phew! by -- just eeked by.

officials say that the u.s. economy is strong enough to withstand a rate increase the larry summers says nutso fast. >> there is no reason to raise rates until you see the whites of inflation's eyes. i have seen the data out there and i don't see inflation is close to the horizon. >> howard marks said that they are behaving completely scared. another said that the cause of an exponential crisis will be the government, regulators. there is a negative sentiment around the fed's in action from notable investors. are they just wrong?

esther somers: i think they are. we all prefer that the economy was stronger and at the right thing to do was to raise rates. make iting it doesn't so. seven central banks around the world in the last few years have followed the reasoning of the people you quote. they say things are a bit better and zeros a problem so that we will raise rates. and seven of the banks who raised rates have had to retreat -- andd them right back pulled them right back. that is not what the fed's credibility needs. the otheray, i was on side. i thought the right thing to do was to keep rates at zero, which is what the fed did. but i can see how last may you could reasonably have made the argument that there was growing enthusiasm. we had been a zero for a long time and it was time to raise rates.

i don't see high you can look at third-quarter growth forecasts that are running at about 1.5% 1.5%, that's at stall speed. if you are at stall speed and you slowdown, it is not good what happens next. thef you had been chair of fed, would you have done the same thing? summ: i have a lot of admiration for whate janet yellen hasr dones. i think it is hard to second-guess without seeing the same data flow and full context that people do. i know at various moments, when i have been in office, there have been people who were out of have commentsd about all kinds of things we were doing. i knew, if they knew all the things i knew, they would be saying something different. i would vow, that while

express my opinions on the issues of the day, i wasn't going to second-guess what officeholders were doing. but in all seriousness, i have great respect for janet yellen. stephanie: what grade would you give her? : i would give her an incomplete because her term is not yet over. as i said, i have great respect for janet. that was larry summers. for more on economy, tune in tomorrow to hear what ben bernanke had to say about yellen , inflation, and his new memoir. up, we will get a behind-the-scenes view of the intense negotiations that led to the new deal on trade for pacific rim countries. and then to janet yellen and the fed interest rates this year.

the imfhear why director of monetary policy says the fed should wait as well. and a dramatic twist in the beer wars. million -- sab miller turned down $100 million. ♪

betty: it is time for our business/. sab miller says no way to the biggest buried deal ever.

they unanimously rejected a 100 million -- a $100 million ineover from budweiser death. bev.b inve inmev believes that they where the board should recommend. betty: shares of young brands are getting hammered today. it cut its full-year forecast. the company raised $110

million in funding led by jpmorgan. you can always get more business news at bloomberg.com. from london to new york, i want to head over to -- no, excuse me, i went to head over to pimm fox directly there at the nasdaq. you heard mark barton talk about the european close. just eked out that fourth day of gains. imm: the nasdaq composite is off the session lows. but the decline really started just as we were reporting those oil inventory numbers around 10:00. -- the nasdaq composite so far has done a drop of more than 50 points. we will see what happens in the afternoon session. one of the stocks leading the nasdaq higher is when resorts --

wynn resorts on reports that there was better gaming revenue coming out of macau because of the national golden week. instead of spending the money on the stock market, i guess they are spending the money at the wynn resorts tables. this comes as no shock really, decline and shares at the adobe. earn $2.70 ag to share. stock of adobe down a little bit more than -- i think a must 7%. decline, tesla composite,ging the the nasdaq composite lower. put comes after been callow

.he price target at 265 this follows a couple of downgrades and price targets for the week for tesla. there are all writing the expense of the new model x, saying it will be more difficult to wrap production and get those models out. that he: thank you. lots of 8 -- lots of attention on elon musk. a lot of attention on the trade deal. president obama making the sales pitch for the pacific trade agreement saying that it is a great deal for workers and businesses. he told them the deal would boost exports by eliminating barriers. obama: this agreement makes us more competitive by eliminating about 18,000 taxes, tariffs, that are placed on america's products.

agreement, all those foreign taxes will fall. most of them will fall to zero. presidentever, the may have a tough sell with the public and congress. a recent nbc online poll says that protecting american jobs rather than allowing free trade is more important. 60% of americans say they want to limit foreign imports to protect american jobs. i want to bring in michael from an, the u.s. trade representative kirk who was -- michael froman, the u.s. trader presented to. the president is already getting pushback from embers of congress. do you think this deal will survive next year and congress? mr. froman: i do. it is a really good deal.

it levels the playing field for american workers and american firms. right now, we have 80% of the countryat come to our come in duty free. but we faced tariffs of 70% on engines --s, 55% on all of those are going to go to zero. it is about protecting american jobs here by tearing down barriers abroad, supporting well-paying jobs here and leveling the playing field by raising environmental standards in other countries so that our workers and their firms based here in the united states have a more fair chance of competing in the global economy. that he: could you have done -- betty: could you have done a better job selling it to the american public. a poll last year had the same results. a polar the summer -- this summer had the same results. : horowitz talk to the

american public about how we are anding down barriers abroad how it will drive more jobs and wages here in the u.s., they can all be supportive. dealn look forward to the being published. everyone can read it in detail and make an informed decision on the perspective about it. we will be consulting with congress and the public and stakeholders. we will go around the country and understand the benefit for every state and in every sector. betty: ernie sanders said, "wall street and other corporations have won again. it is time for us to stop letting multi-national corporations rig the system at our expense." very goodn: this is a agreement for american workers, farmers, ranchers. we live in an open economy here. we are tearing down barriers to our exports abroad.

that can only benefit the american worker and the american public. want to talky know about presidential politics, but let's talk about the history of free trade. a shiningooked at as example of how free-trade has not worked. americanown a loss of jobs. it wasn't executed well. this is probably the reason why americans don't want another free-trade agreement. mr. froman: when president obama was running for president, he said he wanted to renegotiate nafta and talked about making labor and in it -- and environmental standards the core and making them fully enforceable. that is exactly what tpp does. that is the renegotiation of nafta. but not just with mexico and canada but with 40% of the global economy. they'll have to have higher standards fully enforceable through the straight agreement. betty: thank you so much for joining me. much more ahead in the next hour. we had west to the vanity fair

summit were emily chang will be speaking to read it -- to twitter and medium. ♪

betty: good morning. it is now time for today's options inside. julie: we have been watching correlation between oil and stocks. let's take a look at where stocks stand at this time. we are seeing a downturn compared to where we were earlier. the s&p and the dow remain in the green at the moment. we got that inventory data that pushed numbers down.

thank you so much. talk about this correlation we have been seeing between oil prices and stocks. energy stocks per se, yes, they are relatively important in the s&p, but they are not one of the most heavily weighted groups in there. guest: let's talk about the risk factors we have talked about this year. grease, oil, china -- these are not things that, if we want to talk fundamentals, have a really strong pull in s&p earnings. u.s. gdp isf domestic consumption. so what happens in the rest of the world matters but not the way sentiment has assigned at this year. so the fact that oil is fighting some support, things are tightening up in the credit market, these are all reasons why to take a more positive view. seeing -- it is not as though we are seeing a

big rally that is continuing now. it is sort of stabilization along the bottom. guest: sure. there are plenty of questions about what earnings are going to be a doll of the macro and polities sit -- policy decisions coming up. but i think a lot of the catalyst that people were afraid of hasn't come to pass. julie: in particular, you are --king at a trade on it so p .rade on x op these are the guys who are tied the most to oil itself. is it just a matter that we are going to continue to see a bounce here? guest: we are looking at a trade that is neutral, even short, in terms of biased for price. we are interested in short and volatility exposure. as oil source to stabilize, these companies are hopefully going to turn around their financing in the fourth quarter and renew their loans. they should become a little bit more tractive m&a targets.

we would not expect to see this until the first quarter next year. stabilize, yeah, there could be a little more upside, but volatility is still very rich. are in theons on xop top quartile. 45 to 50 call spread, you can do this to $.40 to $.45. again, the risk premium starts to leak out of these options in the sector stays stable over the next three months. julie: to put it another way, some of the bounce we have seen is based on the supposition we will see an increase in m&a going into the end of the year. view think that maybe we will see some disappointment reflected in the shares if it doesn't materialize when people think is going to the guest can't yes, i think the upside kalas will come later.

the integrated firms will see that we have seen the bottom and things are stable. wait around a little bit. i think they're removed some of the upside potential of this industry group. julie: we will be watching xop we have been watching. the other oil-related etf's as well. thank you. we will be checking once again in just a few moments on that movement we are seeing in stocks today as well as in oil prices. that is coming up. much more blumberg market day after a short break.

betty: it is noon in new york, 5:00 p.m. in london. welcome to the bloomberg market day. ♪

betty: from the bloomberg world headquarters in new york, good afternoon. >> here's what we are watching this hour. the imf says the fed should wait for more signs on inflation before increasing rates. a livejournal -- a live interview with the director in fema. rebound inroduction the last week, we will look at whether oil will continue its march higher. >> we will be hearing from twitter cofounder and williams in a live interview. what does he think of his fellow cofounder jack dorsey returning to the company as the permanently named ceo. let's had first to the market desk where julie has a look of the markets. julie: