david: good afternoon and here is what we're watching this hour. improveest u.s. banks earnings this morning. lenders baseiew as for a possible income hike. face-off in las vegas for the first debate. and shares of twitter are hired today -- higher today after jack dorsey announces an 8% cut. but first, let's head to the markets desk where julie hyman has the latest. julie: we see stocks accelerate declines. things are looking red across the board, particularly for the s&p 500 and the nasdaq here -- the nasdaq.

we have declines in industrials and energy. we have got four stocks falling for everyone rising. relatively light volume. at least trading in s&p 500 listed stocks. i wanted to highlight the movement in the financials. earnings are coming out come a bit of a timing switch. that is the vix. jpmorgan, bank of america, wells fargo, we have been watching the shares. david: tell me a little bit about the vix. julie: it is turning around today. we will see an uptick in volatility. perspective is important here. high in august, we had seen a

big winning streak, a huge uptick in that time. since then, it has come down substantially during the august selloff. we saw it trending below 20 after spending quite a bit of time above 20. is working futures now, it looks like traders are anticipating volatility will come back at some point. now let's get the first word news. mark crumpton is at the news desk. mark: benjamin netanyahu says his government is working out a series of what he calls since the 2014s god -- gaza strip war. this came in the middle of a meeting with senior security officials. another spasm of deadly attacks occurred in 90 minutes.

authorities say two palestinian men boarded a bus and began shooting and stabbing passengers. another rammed a car into a bus station. three israelis and two of the killed.s were officials are scouting sites in colorado as possible alternatives for prisoners held at guantanamo bay. it's as part of a long effort to shut down the u.s. detention center in cuba. holding 114 prisoners at gitmo, including to hundred 54 cleared for release. a new report highlights the challenges europe faces with mass migration. the number of refugees rising in europe is already more than twice the 2015 total more than 710,000 people have arrived through september. democratic presidential hopefuls meet for their first debate. four others will be on the stage. o'malley,ders, martin

and the former rhode island governor lincoln chafee. the event will be in las vegas hosted by cnn. phil mattingly a little later in the hour. a special one hour with "with all due respect" scheduled for tonight. mark and john will be live from las vegas starting at 5:00 p.m. new york time. joe biden has not said if he is running for president but that will not stop his super pac from trying to persuade him. trying to launch a new tv ad after pulling's first one off the air at biden's request. he felt the initial spot was too personal and focused on the 1972 car crash that killed his wife and his daughter. the new ad airs on cnn tonight ahead of the democratic presidential debate. that is a look at the news now.

david: thank you. soon, the king of beers may control 30% of the world's beer market. they agreed to buy miller for $156 billion. the deal faces regulatory hurdles. joining me now is ed and jennifer. great to have both of you here. this is a deal that lends itself to a lot of superlatives. maybe you could put it in context? it is a big deal. : it is indeed. it is the biggest ever take over if it goes through. the record was held briefly this year with their take of bg group for $18 billion. and this is the most fascinating thing for us. it really went right down to the wire. the deadline for them to make their offer was midnight tomorrow. stakes.s a lot of high

it was unclear if they would accept or not. david: the second egg merger of the week. focusing on all of the debt, you look at the deal, they are assuming a lot of debt? jennifer: i'm thinking about the overlap that the regulators will do. they will assume a lot of debt to get the deal done to get the deal done. what is interesting is markets indicated they will be receptive to the deal. let's be clear. the deal has been telegraphed before even the current m&a. are the hungriest in the world at the moment. everything from burger king to other beer deals. clear, have made very

this is not something that will catch the debt markets by surprise. hopefully we see a lot of right-wing tory scrutiny around the world. actually could be less perhaps because of the geographies are so different. when you look at how long it will take, what kind of scrutiny will they face? jennifer: i know it will take a year or i understand but the one thing to remember is that to trigger an antitrust review, sometimes, this test is just revenues in that country. a lot of them actually have an antitrust receipt -- regime that will get trigger. they want to look at this because they do not want to just look at the overlaps but on the effect of distribution as well i think there will be scrutiny and i can see it taking up to a year. david: when you look at past mergers, are there examples that lend themselves going forward?

jennifer: absolutely. if you think about the deal, a trying toed deal, acquire -- very famous for corona brands, pretty much a similar partner and justice. the same assistant attorney general in charge. combine shares would have been 47% in the u.s. what happened was companies really try to do something less than what the doj wanted to have a want to give up distribution rights. a joint venture has exclusive distribution in the u.s. no, that is not good enough to you have to give up ownership of the brands and also some of your contract terms with distributors. curious what it means for me. i'm looking at the specifics today. when you look at the american beer market, you control 16%, 47%. this will be sizable but that is not the whole story.

it is about emerging markets and africa in particular. ed: that is right. the kind of own north america already. they want emerging markets. it is booming in africa. they would always get access to that. they would be able to tap into that. it also gives them a bigger presence in asia. quite a lot of stuff there. and then europe, there is other huge benefits. one point about antitrust is interesting. the overlap outside of north america is not huge despite the two companies being as big as they are. david: you mentioned the u.s. and hurdles they might face here. what other countries are at risk? jennifer: certainly china. a joint venture with a chinese entity, it is likely they will have to do vast that stake in

order to clear china. but really the u.s. and china are the biggest hurdles. they may have other smaller to vest or a specific ones are the two countries. david: thank you. coming up in the next 20 minutes day,e bloomberg market jpmorgan reports earnings after the closing bell. previous of the biggest u.s. lenders break and a possible rate hike by the fed. live to las vegas were five presidential democratic hopefuls are getting ready for the first debate. is it too late for vice president joe biden to join them? thanks toon the chin a bigger drop of chinese imports. look at what is next, industrial metals. ♪

david: welcome back. the fortress investment group confirming plans to liquidate the macro district. the 50-year-old will retire from the board by years end and began the strategy in 2002 when he helped hold it into a business of more than $8 billion in assets in its peak of 2007. the plan to return all capital to investors that in 2015. one buffett says he has zero interest in joining their ranks. here he is today at the most powerful women's senate in washington. >> there after publicity, results, and attracting more

money. these guys get paid very often ,n something that is fee-based asset managed and performance. he said a rebound is helping to sustain growth in the u.s. economy. says its workforce will be cut off by 87 employees. took overjack dorsey as ceo last week. always get more business news at bloomberg.com. let's head back to the markets desk where julie hyman has information on company movers. julie: we have got jetblue falling sharply, down more than 7%. alaska air also a client. it just came out with september and august traffic numbers.

up i 1% after falling in august. the analyst there saying the company has increased labor expenses. up more than 20% year to date. jetblue is up more than 50%. this led me to take a look at the transports. the dow jones industrial. you do have those who get concerned when they are lacking. transports are down 11% year to date. declines we're seeing are helping fuel that. also, i want to talk about angie's list. an activist is getting involved in the company. this site has listings for

various services in your home. the third largest shareholder of the company urged the board to immediately start a vigorous review, perhaps to merge with another company. it said it had raised the stake to 7.9%. inie's list went public back 2007. you can see the stock performance is not fantastic. he ipo price, you can see that yes, it went higher in 2013 but since the spring of last year, it has been below the $13 threshold. david: thank you very much. it is bank earnings season. .e may see the chill jpmorgan kicks things off at a couple of hours after the bill. tomorrow, we will hear from bank of america and goldman sachs thursday. .pmorgan might give us a read

let me just start with the timing. this happened after the noon -- in the afternoon after the bell. >> there were a few calls that got schedule because of the columbus bank holiday and i'm guessing they tried to find a began.fore crunch a change from past experience. david: when you look at the third quarter, not great across the board. the capital market, how was that? how would you characterize it? >> in august, you had a very significant dislocation across many markets including overseas markets. while you would expect that to have an impact on trading, it basically brought underwriting businesses to a halt. also, it would probably have an effect on advisories well

because some firms decided deposit before moving ahead. david: recent commentary for some of the management team. how important are the finances question mark -- finances? top five names are disproportionate amount of overall financials. s&p. a big chunk of the david: what will you be looking for a particular? what else do you keep an eye out for question mark -- for? onthe most important things a forward-looking things. the past is the past and there is nothing we can do to change that. what will be most interesting is two things. what is the commentary about the interest environment and expectations for 2016.

whether it is transactional businesses, or underwriting businesses. you mentioned the rate increase. to what it -- to what degree are banks interested in that? industry has been waiting for the event for five years. it was the beginning of the year, just over the horizon, and now that horizon keeps receding out into the future. there is the issue of timing for the magnitude, or the beginning of this year, the end of 2016, 116 basis points. david: how big a deal are regulatory hurdles and fees really weighing down a lot of the banks question mark -- ba nks? >> there are two components of that. issues and litigation.

there are still settlements being done. the regulatory environment has dramatically changed and institutions have changed their business models to function in these new parameters. thing our want to ask you about, they want to have a ratio 5% .apital ?ow big a deal with that be ? it is largely similar to what happened in the united states. you may recall we had a stress test beginning in 2009. they were forced to recapitalize. then we had to accelerate and

things like the standards and slr. ae european regulators took stance that emphasize forbearance in the hope that these institutions will burn their way out of the problem. what has gone on with europe economically, that has not been the case. move tonow seeing them the standards of financial prudence. i think what the u.s. did is probably going to be the baseline of the developed economies. the institutions were very relatively undercapitalized. david: thank you for your time. still ahead, showdown on the script. the democratic candidates battle it out on a democratic debate. live to las vegas to see what is at stake. ♪

david: welcome back. it is fight night in vegas. inside the ring are five democratic candidates, each of whom wants to convince voters he or she should be president of the united states. the first democratic debate takes place tonight. phil mattingly is there. so far, this has been a rather cordial campaign on the democratic side. are we expected to see tension among the candidates? phil: there will be jobs. sitting at the center of the stage and the current senator sitting to her right, hillary quentin and bernie sanders paid you have heard bernie sanders start to subtly jabbed on trade. clinton such as bernie sanders has held for a vote in iraq.

you will see some jabs. more of the focus will be on policy. there are differences between the two. a little bit less focused than the republican free-for-all as we saw in the last month. david: the most to gain and the least to learn -- to lose. phil: his campaign team released a memo. he is pulling at 1% or lower nationwide and in the early primary states. despite being out there every day for the last month. this is his moment. if he does not take advantage or attack, he loses. the big thing when you look at the national polls, hillary clinton has still got a double-digit lead. long-term, good lead in the early primary states like south carolina and nevada. hillary's debt bernie sanders

and martin o'malley need to show they are national candidates. if that does not occur right now, the narrative will turn from hillary clinton might be in some trouble, to hillary clinton might be on a glide path in the next couple of months. david: joe biden is not affected to be at the debate. suretle fun tweeted out it . now there is a twitter handle devoted to the very podium. no changes? phil: joe biden will host a high school reunion and then watch. david: thank you very much. tune in tonight to a special one-hour with all due respect about that debate from las vegas. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. >> from bloomberg world headquarters in new york, this is the bloomberg "market day."

mark crumpton is uttered his desk. mark: the russian president vladimir putin says his country has reached a peak of the economic crisis and the situation is stabilizing. earlier today at a conference in moscow, president clinton says russia's return to growth is imminent. said russia'stin return to growth is imminent. >> they are more numerous than the ones i call, but these are the key ones. and i see i believe to i with them that the crisis the crisis was reached and the economy is adjusting itself to the changed environment. president clinton commended russia's central bank a highthey demanded

level of respectability and consistency in responding to economic difficulties. arefghan victory, officials setting their sights on reclaiming ramani. one of two iraqi cities to launder islamic state control. the u.s. says conditions are right to make of assault. the u.s. has intensified airstrikes in the area over the past few days. iraqi ground forces are beginning to make progress. country, a federal appeals court reinstating a lawsuit challenging the new york city released from a surveillance of muslim groups after the 9/11 attacks. the court found the muslim plaintiffs raised enough allegations of equal protection violations and reversed the judges decision last year to dismiss the case. the three-judge panel compared to nyc -- nypd practices african-americans during the civil rights movement. a new report says the e-mail

server hillary clinton used as secretary of hate was vulnerable to hackers. server use the remote access software that allow direct internet connections. such links have prompted warning. into whetheroking classified messages were exchanged on mrs. clinton system. donald trump will be live from new york november 7 here yet he will make a return to nbc to host saturday night live for the first time since 2004. the network recently cut ties with the republican presidential front runner after he made controversial remarks about mexicans and immigration. is a look at the first word news. you can always find the latest news at bloomberg.com. david: thank you. donald trump will between eating tweeting tonight's debate. a look at commodity prices. nymex crude rose from the lowest level in a week as investors sort out conflicting outlooks.

wheat prices are higher as buyer your stock up on concerns of poor weather. copper breaking a three-day winning streak on concerns of global growth. steel companies are pushing higher after lacking in yesterday's session. our next guest says there are more challenges going forward. analyst at bank of america merrill lynch joins me now. we of talked about coppermine's being sold out. at the global economy now, in steel, what do we see happening is so >? mine still has reserves in the ground. i think the oversupply of steel and aluminum really has its reach in china. now that the contraction in china is underway, you see the production is not followed shoot -- not followed suit. chinese excess supply and the fact that that means there is lower around the world, the u.s. is producing the relatively high cost.

the u.s. dollar going against them. challenging and mixed market for u.s. steel. how long could china continue to do that? >> i have been following this market for 12 years, 13 years now. we have wonder that for a very long time. it is longer than you think. in the alumina markets you have seen years of loft making and continuing to produce. the chinese do not look at taxes the same way or depreciation has the same labor cost or requirements that we have here and the u.s. with health care cost. seems to be longer than we think . i think the balance is with social rest in china. we do think it is unsustainable the degree of pain continuing in china, but i think it could get worse before better because raw material prices could fall.

we have two types of u.s. deal producers. once that are cost producers at the antiquated facilities. those are under the most pressure. the more variable cost producers that recycle it into a finished product. they are in much better shape because the cost of production has come down with the steel price. you are holding onto a margin. david: learning from alcoa last week. a bit disappointing. accompany a lot of people look to as a bellwether for how the economy is doing. i think alcoa should not be a bellwether. i think we should say that now. i think it certainly has its challenges with the upstream and downstream. i think the split makes a lot of sense. not just the split in valuation differences. also, if you look at the type of mentality in the mining business, it is all about

cost-cutting and will be for a while. the very longer cycle. i think the company still has to prove to the world growth of the divisions will grow and make sense. david: what do you see when you see the price of aluminum today? do you you think we're at the bottom? of aluminum. we have seen some evidence of closure. some example in the u.s. of closure as well. potentially more if prices stay at low levels. aluminum demand is growing. it is growing like 6.5 percent this year and should continue to grow mid single digits in our view. that is a very important distinction. aluminum has a much better outlook. in a call at that we will have a shortage year, we will hold on to that. the switching and lighter way and we are seeing in airspace. david: thank you very much. up in the next 20 minutes

of the bloomberg market day, the intel on intel as the company prepares to release its third-quarter results today after the closing bell. more nimble twitter. jack dorsey maps out a path to growth that begins with job cuts. coming up at 3:00 eastern, gary shilling explains why commodity prices have a long way to fall still.

david: welcome back to the bloomberg "market day." time now flathe bigness -- business the company recently made headlines with the overnight 55 .old-of verrilli's cancer drug

now it is under investigation on concerns the move may violate antitrust laws. bloomberg news reporting fiat chrysler can double the use of lower paid temporary staffers under new labour agreements. savings will be used to help offset raises for half of the companies unionized employee. the contract is up for a vote by next week. ubs will play 19.5 billion dollars to settle sec claims it misled individual investors in structured note. the agency's first case against the sec. -- ubsosed trade by ubs led to losses. you can always get more business news at bloomberg.com. investors anxiously awaiting earnings from jp morgan after the bell. reaction,om the stock they are not optimistic. julie hyman with the details. morgan just the first

report in seems like there is not a lot of optimism generally even though the decline in earnings estimated to be smaller overall. jp morgan very little changed ahead of the earnings. if you take a look at the , youcial select spider etf can see it is a little bit lower today as well. .4%.by about we have been looking at different measures to gain the sentiment. one of them is short interest. we have short interest almost double one year average. yes it was higher about a year ago. rising once again going into the earnings report. that is one way you can measure, people betting on the stocks to fall. another way is the put/call ratio on the financial etf. higher a year ago. thane buying more puts

calls. that's that a stock will fall versus bets that a stock will rise. we see this now at the highest level since march. another indication of somewhat heiress sentiment. another bearish note, michael hartnett, chief investment americant at anglo merrill lynch. reiterating he likes regional banks over brokers going to the earnings season. he called it main street over wall street. we have a chart of how the groups have performed here today. he said you should favor main street over wall street. economic environment where you do have an improving job market but markets are turbulent , a big area of focus for jp morgan, goldman sachs, etc.. the regional banks have risen, even as we of seen the broker-dealer ball. this is the kbw index of regional banks versus index of

brokers. interesting to see that activity. we will see if the similar trend holds up throughout the earnings season. david: julie hyman of the markets desk. intel set to report third-quarter earnings after the bell. shares down 11% so far. ?hat can we expect today cory johnson joins me from san francisco with the preview. what are you going to pay attention to? the big question is what is the revenue guidance going to be for the fourth quarter. intel tends to not massively surprised when they announce earnings, however, they often preannounced. my very favorite functions on the bloomberg terminal is the earnings estimate graph. i have printed a graphic to show you what the analysts have done with their expectations of the sales number we're supposed to do tonight. what you see is they have been dramatically lowering the red

line. dramatically lowering the estimates for sales. intel stock price has not shown the lowering of the bar. the bar has come down quite a bit for intel. even though the bar has been lowered, there is a big open question about what happens in the fourth quarter because of .he sales decline for intel the strength of the business on the top line has not been there. that largely reflects pc sales. intel has mixed a couple of different businesses together as of the first quarter of this year. -- when weked at look at the numbers we can see the sales growth just has not been what they would like to see .ithin intel last summer -5%. went from positive 6% to zero percent and -5%, which is a problem. david: what is intel's core business these days?

this is a company that missed the boat when it comes to mobile technology and mobile phones. is it figuring it out? intel would argue the sale of data chips let's them participate in the mobility even if they are not on mobile phones themselves. that in some truth to the comparison to the pc business. the pc business has smaller margins and does not have a growth potential. quarter of this 7% yearsales were down over year. that is bad news for intel and everybody else and make them more dependent on the data center business. one of the things we will be looking for is growth margins. what we see in terms of growth margins is the place where you want to see strength and see

that they are able to sell chips for the high growth margins they have had in the past. the change is not been positive coming into the quarter. there are headwinds these guys are facing. david: a couple of days ago a microsoft bp was showing off the surface computers they plan to release. how much faith is intel putting into that in these microsoft computer selling well? i think intel has a big bet and belief we will have a lot more laptops or combined laptops that you can take the screen off and use as a tablet. we will surely hear about their internet of things business that did over 2 billion in revenue last year. i think fundamentally they think there will be a world of all chips everywhere. they recognize selling a lot of chips that do all kinds of things may be a good business for them, not just selling not

only the high and chips that have been the red and better for the past couple of decades. david: you mentioned the internet of things. this is something still growing. that does not sound as sexy. there are chips all over the place. we call it sensors. you will be late for dinner. to the cfo in just a bit. what are you most interested in hearing gekko >> the fourth quarter is going to be interesting. very confidently predicted they pc sales. we will get that to you right away. it will be interesting to see what they're look forward is. they really do have a sense of what is going to happen going

down the line. david: thank you very much. cory johnson in san francisco. coming up, after twitter's restructuring announcement, how attractive is the company for buyers? the latest with emily chang next. ♪

david: welcome back to the bloomberg "market day." something just crossing the terminal, dan tarullo giving an interview saying he does not favor raising interest rates in 2015. that looks and again the notions of gun janet yellen.

this is a week when we are hearing an awful lot from that governors and board president. just wanted to know dan cirillo thing he does not favor raising interest rates 2015. the big news from the west coast , twitter announcing restructuring plans, which include cutting up to 8% of the workforce. the stock is rising. emily chang joins me now from san francisco to talk more about this. jack dorsey back on the job for a couple of days. was this something a lot of would bepected that he streamlining the workforce this quickly? erik: there were reports that the layoffs were coming. grownly: twitter has considerably from its start up 41 hundred employees. talking about cutting 336 jobs here, 8% of the workforce.

the focus is going to be on products. it these are two areas where things have become a little bloated. people with overlapping responsibilities. jack dorsey did say in a statement, we feel strongly engineering will move much faster while remaining the bigger percentage of the workforce. the world needs a strong twitter, and this is another step to get there. twitter and engineering, these are two of the most important departments. istter's big problem creating and developing a product that caters to the hard-core users, as well as more mainstream users who do not really understand how to use it. one billion people have tried to log into twitter but they only have 300 million users. a lot of people are not sticking around, and the goal is to get

people to use this every day. you have to believe think i should be on twitter, sign up and find it confounding and do not know who to follow and how to tweet, etc.. yet the company is not done much to adjust. emily: it is interesting. i called it the mom problem. my mom loves using facebook but she still does not get twitter, despite the fact that i use twitter and would love to keep up with me more. he said it is not just a mom problem but an everyone problem in this is something we're trying to address. one of the new things, we saw twitter roll out the new moments feature where if you log on you can more easily access things happening right now. for example, the blue angels are performing this weekend so we got to see videos in light the cop it.

the cockpit. even if you do not how to use the service, it is difficult to find. i think what jack dorsey is trying to do, streamline what makes twitter great and make it more accessible to everyone. we have seen the higher-level and he executives leave, is rebuilding the team. it looks like he will be doing that from the ground up. bolt: i saw the lightning appear on my iphone and wondered what it was. there was no clear explanation of what it was. there has been buzz about whether twitter may be an acquisition target. do the rumors persist, is it still leading up to that perhaps ? is there still talk of twitter being acquired by another : if they get a

legitimate offer, they are under obligation to consider that offer. an $18 million market cap at the low. that was prime time for a potential acquirer to move in. yes, there has been speculation alibaba.gle, facebook, twitter investor chris back to told me all of those companies twitter, but have do they want to acquire the problem it brings with it? atave not seen any interest twitter and the board and selling. jack dorsey believes twitter has a lot more long-term potential. he really wants to try to relate the potential and i do not think he wants to sell the company. david: he did a key interview with key wozniak. tell me what he had to say. you're done a string of these.

doing a string of these. emily: away so interesting to interview. he was a consultant on the firm. he said it is not about reality, it is about personality. he said everything in the movie did not happen but still like it and think it is a good representation of the person steve jobs was. dide the specific events not happen as they play out in the movie. thank you very much. emily chang of bloomberg "west." starbucks testing out no new delivery service in the empire state building. ♪

betty: 3:00 in new york and 3:00 in hong kong. welcome to the bloomberg "market day." ♪

betty: from bloomberg wrote headquarters in new york. good afternoon. i'm betty liu. stocks pouncing around as we head into the close of the trade. the dow struggling to expand the longest rally of 2013 while the s&p is heading the work after rising in nine of the past 10 russians. a few hours to go before rival candidates in their fire at hillary clinton. can she was stand the attacks coming from bernie sanders, martin o'malley and the others at the very first democratic presidential debate? to launch the first delivery service of the empire state building. we will figure out why the theding was chosen by coffee giant. one hour away from the closing be a