from the bloomberg world headquarters he, i am betty liu. profits are rebounding as bank of america. a look at those latest numbers and what they say about the banking industry and of course, the economy. then the democratic presidential candidates squared off last night, we will talk about that. news from twitter following the talk about layoffs yesterday. the big-name that jack dorsey is bringing in from google. let's head over to julie hyman where she has the latest. julie: it is gaining again although it is not much of a gain and we have seen a lot of bouncing around.

right now, all of the major averages are higher. we do have a push poll of fact that we did witness yesterday. on an index point basis -- those at our lending the most are the gains that we are seeing. bank of america is rising on its earnings. we are seeing a renewed rally in health care. yesterday it was down and extraordinarily volatile. are comingallergan back today. then you have the lie lowers that are putting pressure. jpmorgan and its earnings -- you will hear much more about inc. earnings in a minute. apple is down, it did lose a patent fight to the university of wisconsin. is kind of a mixed market in a way. what about the retail sales numbers? julie: they were disappointing.

inflation was lower than economists had estimated. my bloombergt terminal. we have been looking at what the futures market is pring in in terms of interest rate increases. this probability has been going down significantly as we get more and more worse than estimated economic data. whether it is the pricing for the rate increase, in september or march or even next december, all of the expectations have been coming down. you can look at the treasury market to look at what has been priced in there. again, andoaching 2% it is being held in the currency market with the dollar still trading around a seven-week low. so really, all things said, they continue to be pushed out. betty: pushed out further and further afield.

thank you julie hyman. let's get a check on the first word news. with vonnie quinn. vonnie: we will start with last night and the presidential debate for the democrats. campaign saysders it brought in a windfall in cash. -- was raised in the four hours after the campaign. sanders raised $26 million in the last quarter. the breakout star of the last republican presidential debate is bringing in the cash -- carly fiorina says it has raised almost $7 million in the third quarter. carson.ell behind ben moste sanders was the retweeted democratic candidate in the debate last night. was the mosthe mentioned candidate of the debate. hillary clinton was second with 39%. the other three retweets were in

the single digits. air traffic controllers they flight delays could rise if more workers aren't found for the towers. the union says the shortage of controllers is at a crisis. they blamed the faa which promises to speed up hiring. says the report in the malaysian airlines crash plane is false. says thegn minister attempt to make a biased conclusion is obvious. the -- says it was brought down by a russian fired missile. that is a look at the first word news. you can find the latest nude -- the latest news on bloomberg.com. are rollingig banks out the third-quarter results. bank of america is reporting the revenue dropped 2.5%, while wells fargo beat, raising by 3%.

not great news following jpmorgan's report yesterday of a 6.4% decline in growth. here to help us break down these numbers is paul miller, a senior banking analyst. give me your take. we were all wondering how this quarter is going to shape up. paul: we were expecting somewhat of a lackluster quarter, because rates fell in this quarter and economic growth is not there to fill that void. what have seen the companies that are embracing -- wells fargo has been able to grow revenues while bank of america and jpmorgan are struggling. jpmorgan's commentary was the most negative. bank of america was ok. we are still waiting on wells fargo. i think the negative commentary is what is bringing down jpmorgan or than anything else.

the book value of bank of america grew pretty solidly. with bank ofstay america, we will be hearing from brian moynihan in just a few hours. cost control has been a big issue. are they going to be able to keep their expenses in line? paul: they were flat this quarter. analysts were looking for a continuing decline. there are a lot of noise with these numbers. going forward, analysts are going to be looking forward to continued decline. especially in expenses from before 2007. nonperforming asset type stuff. we still have litigation expenses. we are waiting for that to get out of there so that these companies can start earning more money. have been looking for normal earnings for these companies for many years. waiting, have been

when you talk about the normalization, we have been waiting for the fed to finally get off of zero. those expectations keep getting pushed back. we thought we might see an impact in the third quarter and we are not. so when you say normalization, we just have to wait for wendy fed raises rates? -- we havere talking been talking about normalization for seven years. whatybe that is -- that is people are saying. i don't think rates are going to move any time soon, but i'm not an expert on the fed. rates are going to stay lower longer than people think. saying that, bank of america can work. that is the issue that we focused on there, they have to get the expenses lower going forward. they had a lot of mass they had to clean up. they are still dealing with the -- accusation. but we do need to see expenses

down. trading at, it is book, and we don't see a lot of downside. betty: what would you want to ask moynahan? paul: how come it has taken so long to get those expenses down? we think they should be able to get it out quicker and then they should be able to grow the top line revenue. when can they earned their cost of capital? getting back to jpmorgan, because they were pretty negative. especially in the commentary. what is that going to you about goldman sachs coming down the road and the other big banks? paul: you don't know what jamie is trying to accomplish here. one of the things he was trying to accomplish was to get analysts to get their numbers down. they felt the third quarter estimates were too high. i know that jamie wanted to prepare the market that it is

there a tough out there. it is tough to grow loans and you have low interest rates. the volatility hasn't materialized in the earnings that they would like to see. i think it is more specific to the banks. his portfolio is just not making a lot of now because rates are so low. betty: paul miller on the banks. for more on the bank earnings, stay tuned to "bloomberg markets" at 1:30 today. much more ahead on "bloomberg markets" today. did you watch this last night? the democratic debate? phil mattingly is standing by in las vegas today. retail sales reports are not good, what does that say about the venture arm? and later today, we will get more insight in the landscape

from the nike ceo. ♪

betty: good morning, and welcome itk to "bloomberg markets," is time for a look at the bloomberg market newsflash. the producer price index for september fell one half of 1%. costs cut for brokerage prices. in the last year, they have fallen more than 1%.

sales for the quarter were $11 billion, matching wall street estimates, delta fuel costs $1.80 a gallon was the lowest in years. volkswagent from the emissions scandal. to man that they have asked run their -- has turned down the job. job, heof coming to the will leave volkswagen altogether. you can always get more business news at bloomberg.com. let's head back to the market wherehere julie mark -- julie hyman is having a look at the movers. julie: intel is leaving -- leading them. the stock be down 2.3% after intel said yes, we know there is slow down in pc.

call, conference executives also cut their target for growth in the server group. that had been a source of strength for the company, even as it fell in the division last quarter. it still saw growth in servers. that is a wavering for some investors. they are selling the shares today. we are also watching for a potential deal in what has already been a record yield in deal making. sandisk has -- potential sale of its business, sales are surging by 13% this morning. be interested would be micron. according to people familiar with these talks, western digital has seen little change this morning.

it would be a business, if you will. those two would be more complementary, it is not clear if any deal will actually happen at this right. but definitely be stocks have been reacting. we had a couple of other earnings reports for smaller makers. linear technology came up with earnings that beat estimates. smell came out with sales below forecast. the company said customers delayed chip machine estimates because of slowing demand for pcs and smart phones. a little bit of a mixed picture in the chip world today. betty: thank you so much, julie hyman. the company twitter has as theed omid kordestani executive chairman. this comes on the heels of the job cut announcements yesterday.

so he was a google advisor, right? >> he had a big job in operational sales with google for years. so he has a lot of background with google. a very interesting appointment, for one, this is jack dorsey putting his big stamp on the company. this is somebody who brings a lot of operational expertise. he played a big role in putting that business model in place. it has served google so incredibly well for so long. and now there is this idea that they will bring a little bit of that google best and sprinkle it over twitter. we all know the needs that twitter has about getting product out the door. making money from all of the people who are swarming on twitter.

i was watching the debate and i was on my twitter feed. time, my wife was like, get off twitter. watch the debate. it is that kind of conversation that is always going on. and i think what people want twitter to do a better job loss is taking the idea that you and i are on there and making money from monetizing it and organizing it. making it easier for users like the end you. and making sure that you come back. kordestani, what is the conjunction that he is going to do there? >> we talked to our -- over there, she is up early. he will play an operational role and he will be hands on. be having ahe will

seat at the table when important decisions are being made. he will play a role in recruiting. he is someone who has been around in silicon valley for a very long time. he has an mba. ofdefinitely has a lot tentacles throughout silicon valley. to jacko we expect dorsey to make further appointments? >> i think he is just getting started. he has been interim ceo for many months. and the permanent ceo for one week. he is wasting no time to put his stamp on the company. he has made it very clear that he wants things to run more efficiently. that is where some of the job cuts that we read about yesterday were aimed at, making tongs happen more quickly get product out the door. i think he is just getting started. betty: thank you so much. still ahead on "bloomberg markets," capitalism.

setone single word that has bernie sanders and hillary clinton far apart at the democratic debate. more on that, we take you live to vegas, coming up. ♪

to thewelcome back bloomberg market day, the reviews are in today and people are saying that hillary clinton ran the table at last night's debate. the frontrunner showed why she is ahead in the polls and why she is set apart from the other candidates. one topic of contention was wall street conform. >> my plan would have the potential of sending executives to jail. nobody went to jail after $100 billion in fines were paid.

thewhat gives regulators authority to go after big banks? if only you look at the big banks, you may be missing the forest for the trees. >> i will take a second. i will tell them. , secretary clinton, congress does not regulate wall street. wall street regulates congress. in phile want to bring mattingly who is live in vegas. we thought that bernie sanders might go after hillary clinton for not attacking wall street, being his accusation, for -- with wall street. how do you think that went over? phil: it didn't go as expected? had a great one line. but if you listen to hillary clinton's response, she was able to take issues that are weak

spots and go on the offense. changewed contrast and the narrative of where she sat. another major issue that we knew would come up is the e-mail issue. that is dominated everything about her candidacy over the last few months. she did get some unexpected help from bernie sanders. >> the american people are sick and tired about hearing about your e-mails. >> thank you. me too. handshake and the happiness, that is the happiest i've seen hillary clinton in six months. that was considered the weaker spot. on all of these issues, hillary clinton came out last night in a much better place than she was going in. i was surprised that bernie sanders did that, he gave her a huge push by saying that. phil: yes, it wasn't just bernie sanders, it was lincoln chafee,

martin o'malley, no one was willing to attacker on the e-mail issue. that has been her weakest spot on trust. there is a big opening there and they weren't willing to attack. they try to attack on issues, but what was most interesting, whether it was gun control, immigration or policy reform, hillary clinton was able to take issues, show contrast and go on the offense. if you watch bernie sanders who came in with a ton of momentum, he was on his heels for a lot of the night. a lot of us who know bernie sanders, that was a surprise. mark, who was there live with you, he put out his report card on how the candidates did. let's bring it up. hillary clinton, as you say, she got an a. bernie sanders got a be minus. martin o'malley got a c plus

lincoln chafee got a d+. jim webb got a d. i almost gave him an f for forgetting his daughter's name. phil: [laughter] yes, it was a tough night for lincoln chafee and jim webb. martin o'malley gave a strong closing statement but he wasn't able to rise above hillary clinton and bernie sanders. hillary clinton had a great debate night. who haved to democrats been very nervous, even those who support her candidacy, and what she did last night was close off any avenue that joe biden has if she -- if he decides to run. she wrapped yourself in president obama's legacy. joe biden last night, watching to see how herd would watch the debate and say, not only is there a weakness, but there are issues i can ttack.

she might have foreclosed joe biden. betty: is it too late for him? phil: not too late. he hasn't made a decision yet. but i think most people thought that he was going to watch the debate and see the testimony on hillry clinton at capitol next week before he made a decision. she hasn't made it any easier for him. you, that was phil mattingly live in vegas. still ahead on "bloomberg to mobile, -- -- is in the leading retail venture. we will be right back. ♪

betty: you are watching the bloomberg "market day." i am betty liu. let's start with first news.

vonnie quinn has more. vonnie: thank you. more violence in the jerusalem hours after the government approved type new steps. police say there was an attempted stabbing and the attacker was killed. we are israelis were killed along with two of the attackers. authorities and now have government permission to close out arab neighborhoods of jerusalem. families of the attackers may have their property confiscated. the countries guardian council in iran has approved agreements with the rest. iran's parliament signed off on the deal with curbing iran's nuclear program in the turn of lifting sanctions. european leaders are being called upon to take further control of the refugee crisis. the prime minister says the crisis have been mishandled by the eu. pinnie with fellow eu leaders in brussels summit tomorrow to find a solution to the crisis. russia's air ministry said they claimed to attack during a

24-hour span. shops were bombed. not beim could independently confirmed a new assumption say most of the questionnaire's are targeting antigovernment rebels in syria. cyberspace a second front in the country's clash with the u.s. and the rest of nato. and number of attacks are being a to begin to russian hackers. among the targets, congress, the new york times, and a german seo class. firsts a look at the news, you can find the latest on bloomberg.com. betty: thank you so much. retail sales, they are on the rise and not as much as expected. the 1.1% gain followed little change from prior months since consumers pocketed the savings are lower feel costs. a pretty weak finish to the third quarter in retail, kind of disappointing and it pushed the

expectations of a fed hike further out. for reaction of the numbers and what this means for commerce, consumers, i want to bring in sky fernandez, the founder of the simon venture group, the vc investor simon properties, the largest mall operator. sky: largest in the world. betty: there you go. i have been to a few of the malls, by the way. you started 20 months ago? skied: we lost about 20 months ago -- launched about 20 months ago and we are focused on physical retail technology of helping retailers as well as looking at e-commerce and global commerce and how they can work together to really create retail strategies. basically, online, off-line, altogether. i want to talk about your investment, but with retail sales numbers, it looks as if consumers are just not spending

as much as they were before. when you are making these investments, do you have to keep that in mind? sky: a great report came out that showed estimates for holiday sales coming up estimated to be about three times the four times higher than last year at about $630 billion and people doing shopping -- betty: i'm surprised. with a lot of shopping before black friday. betty: why do think that is? sky: people are really looking for not only products but experiences. i think it is the critical thing up on the channel strategies -- how people are shopping where they expect how they can have sameiencies online and the way in the store. four for the company that we had like skew iq helping with real-time inventory management, so people know if you are looking at a google map you can search with our portfolio companies called minor. you can see all the retailers

around you, have inventory in real-time based on what you look for. for example, you could be on the simon property as a you are looking for a black dress -- in line betty: you type that in? sky: you type that in and you see all the available black dresses in the property. betty: that doesn't answer the questions of why the sales numbers are coming down. i get what you say about projection, but why are the numbers coming down? sky: good question. are back at how people shopping. i think when they do go to the simon properties, they are spending more when they go but they are going less frequently. betty: is that because of online? the the hardest thing is line between physical sales and online sales is fluorine. i think that is one of the biggest. look at stats, if you look at the market -- you look at e-marketer stats and you buy something online from your couch or from a few streets away to

get same-day delivery or send it pick up, is that an online sale or an in-store sale? betty: to think in five years we will stop shopping online? sky: i don't hope for that but the evolution is that the new phrase i have used is the death of e-commerce because i think future retail really is on mobile and each channel. he does global and great for district retail because you are out and about shopping. betty: you mentioned a couple of investors, skew iq, mina, you have been a month for 20 -- up have been in business for 20 months. sky: we have been co-investing with competitive deals in the space and our portfolio has evolved into the ecosystems. one is data analytic marketing, to is looking at localized and

personalized commerce, and three is looking at we commerce and logistics. betty: what is recommerce? sky: renting or reusing of close or products. betty: interesting project perspective. scott fernandes of simon properties. we will have a live interview with nike ceo mark parker at 2:00 p.m. much more ahead on "the bloomberg market day." prices fall in china, extending of record-breaking period decline. a look at what it means for the country and global economy. thus, profit rebounding at bank of america by beating estimates. an interview with bank of america ceo at 1:00 ..m. -- at 11:00 ♪

betty: welcome back. just over one hour into the bloomberg "market day," and when now into the trading session. time for a look at the biggest business stories in the news right now. it is costing taxpayers in chicago almost $300 million to clean up a legacy of from white -- of long wait interest rates. that is after decades of borrowing to cover debt. the banks involved in that beer takeover may be drinking champagne when it is over. the banks will split up as much as $235 million from ab inbev takeover with sab miller. jp morgan, goldman sachs, and

that tiny boutique with fewer than one dozen ruby warshaw. if you have ever bought a high school yearbook or class ring, you have probably done business with just them. a have agreed to buy just impair for about $1.5 billion and one of the sellers is kkr. they own everything from rawlings gless to common girls. baseball gloves. it is time to get you caught up from hong kong, to london, to the nasdaq. where therein asia was red across the board. the nikkei dropped him was 1.9%, the hang seng down 0.1% and the shanghai composite almost 1%. china's september inflation numbers showing a moderation in consumer prices and prices extended losing streak. david has more from hong kong.

david: the disinflation continuing and what is interesting is a few minutes before china release the data, the currency's reference was quite a bit which give the markets and i fear that the inflation was going to come in much more subdued. percent, slowed to 1.6 well below the targets. producer price is arguably the biggest story. it extends to 43 straight months. overcapacity issues. 5.9%cer prices falling at and that is the best indicator of that. bringingives -- well, real rates down in china. to europe's head where stocks are falling for the third day in a row. mark barton has the latest from london. those chinese numbers are also going on european stocks. mark: you said it all with the six-day gain and stocks falling for the third consecutive day.

a bit of deja vu. we talked about that yesterday. david explained the inflation or deflation data is weighing on sentiment in europe today. this is the big moving stock in europe, it is a company we don't talk about everyday called vi onovia. germans largest real estate and that is conditional on torch of anna -- on deutsche what they're planning said the deal is going to fail for this company's bid to actually take place. what is interesting is there a is a massive buzz as they battle. have a look at london's biggest game today. er iseal tell brok down by the point of percent and

reported a 47% surge in the new business for the fiscal first quarter and this is another moving issue. this is a company that makes fml, 4%s that make a lower today. the semiconductor equipment maker forecasting sales below analyst estimates after customers delayed shipping machine orders. the big piece of data in europe today came out of the u.k. in has boosted sterling to the biggest game against the dollar in four weeks. what we saw with the unemployment rates here falling to the lowest level since the wasle of 2008, 5.4%, it [indiscernible] unemployment report because yes, it is going at the three-month average of 2.8% but not as much as expectations. i was telling you yesterday, because we have no inflation of the u.k., real wages are rising at the fastest pace since the

financial crisis, that means people like me have more pennies in my pocket to spend. it is smiles all around. betty: smart. thank you. mark barton in london. here in the u.s., american consumers are not spending as much on breaking news on that front. julie: walmart making comments today with the cfo saying the 2017 fiscal earnings-per-share will fall 6% to 12% versus the school 2016. it already said in 2016 that earnings will be relatively slapped because of currencies. we are seeing the stock fall off very sharply on this news. the company making all of these in an investor presentation. the company says among other comments that they plan a reduction in capital expenditures their fiscal 2019. it also says they plan to in 2015.of $1.96 -- 2016. in 2000 70, a decrease in

earnings per share of 6% versus the fiscal 2016. and it looks like in fiscal 2016, investors and walmart is in the fiscal 2016, analysts are looking for a decline of 11% and earnings per share. they had anticipated a 4% increase in earnings-per-share. in other words, this is worse than analysts had anticipated with continued earnings-per-share declines. walmart has already been struggling to some extent. particularly with the u.s. business. betty: thank you, julie hyman. we will keep our on how walmart shares continue to react to the presentation the is continuing. for look at how the tech stocks are doing, particularly the nasdaq, matt miller has the latest. hey, they're perry at intel, obviously the biggest

mover today, not only for the nasdaq but also on the s&p 500 index in percentage terms. one of the biggest movers in that point subtraction terms as well. it did beat expectations or in line with overall what they were looking for on earnings and revenue, and the earnings report yesterday after the bell, but the concern is that intel says corporate spending may be contracting a little bit in a time when the pc demand is already under pressure. you do not want to see the corporate customers come under pressure and that is what is wrong with intel. take a look at midship space at sandisk. put itself up -- sandisk put itself up for sale at micron may be interested, so those are big movers in the chip space today. in the internet space, trip advisor has announced a partnership with priceline. two goodbyes are customers will be able to book directly from priceline at the booking.com

website for hotels, flights, what have you, and it is up 27%. huge game for trip advisor today. one other story to touch on, twitter, as you know, even though in has a four letter ticker symbol, but google trades here. twitter just hired a new comesive chairman who from google. he was the chief business officer over at google and something that julie pointed out that i thought was interesting, i hope i'm not stealing her vendor, there has often been talk about it cap of google and twitter. google has over 100 billion dollars of cash and twitter has a market cap of $19 billion, exactly what facebook paid. betty: thank you. matt miller at the nasdaq. just a reminder of that breaking news i came out moments ago on walmart which is taking the shares tumbling down. the company being hit by that

stronger dollar but the weaker american consumer. saying they will take their earnings for the fiscal year versus to 12% in 2017 the prior year. they are reducing their capital expenditures through 2019 acause they are experiencing slow down. we will keep monitoring walmart as the presentation continues. still ahead, heineken seems to be fine drinking alone. why the brewery is sitting out of the world biggest year merger and how that is affecting the share price. ♪

betty: as we mentioned, walmart news sending shares tumbling down. so about five dollars

off the share price. the companies saying they are predicting a pretty significant drop in fiscal 2017 earnings. this fall is the most in six years for walmart, the strong dollar is a big headwind for the company but the decline in spending by american consumers not budging much at all. that is hitting walmart as well. of lower-- in light revenue, they'll will be cutting back on their capital .xpenditures through 2019 all that is hitting the company share price. they are making the presentation right now, so we may see more headlines coming out so you will keep you abreast of that. in the meantime, corporate news, heineken is to augment out in the world's biggest year merger and that seems to suit the share price just fine. with a 50% since the company rejected sab miller's advances last year. has written left

about heineken's owner status and joins us now. brooke has written about heineken's loner status and joins us now. everyone assumes, they are in trouble but they are not. you have youre biggest rivals getting together, that will put pressure on the company and you will have to fight against stronger rivals. in this case, heineken has a lot going for it and one of the big reasons ab inbev and sab miller had to get together is it is the only way they can grow. heineken has been doing ok going on its own. be great for to the company and i see more opportunities to grow going forward because it will have less competitors to make acquisitions. there is not really a huge mega deal out there for heineken to do to make itself the size of this mega brew, but there are a lot of small opportunities with the cleanup have to go for. betty: they have to keep doing what they are doing. where are they growing? brooke: i making small acquisitions.

dave bought a 50% stake in the u.s. craft brewer and then bought that one of their joint ventures and was in that big deals, probably both under $1 billion that they do a lot for growth because those are the areas where the growth is in regionsack prevent like asia, africa, with the inulation is slow-growing -- regions like asia, africa where the population is slow-growing. we are probably thinking about as much beer as we will ever jake in the u.s. and europe and not a lot of growth in emerging markets, there is opportunity. betty: especially with the health kick. nobody wants the beer gut. there are benefits to being smaller. what are they? brooke: you can go after acquisitions. with sab miller and ab inbev, they will be tied up for years with regulatory approval and they have to figure out what to do with the behemoth they create.

easy to grow something big and they will not be able to buy a lot more because it will be an issue getting it approved by antitrust regulators. when you think about doing more aquisitions, nobody will be fan, so heineken will be right there in a prime position. betty: chart for us to have not whatwed heineken's growth, has happened in the past year. brooke: they have gone in year since 2007 -- betty: in revenue? brooke: yes, and they have made a lot of changes to right the ship by cutting costs, doing smaller acquisitions that really move things in the right direction. and shareholders seem to like what they are doing. betty: have they gone up? brooke: yes, you would think shareholders would want that juicy premium out there, but the stock has done better since it then the sabmiller miller stock has and they are the ones who put this huge premium for ab inbev. betty: in terms of after that

rejection, has heineken's management said anything about how they will grow the company? have they been taking a task for why they rejected and gave the reasons for why? not so much because it is scheduled by the heineken family so there is only so much canpendent shareholders say, but they have been showing it rather than saying it. they have been doing well. the first half of the a, they were one of the major european brewers to grow revenue on the continent and this is a market that has been struggling because of sluggish demand with fierce price competition. i think it is proving they can stay independent and do well and take on this megabrew head-on. betty: brooke sutherland on heineken which seems to be god mend out. another the company we are keeping an eye on is walmart. as we mentioned, big news a moment ago with the share price falling eight percent, the biggest decline in more than six

years for walmart. the capitalreducing expenditure plan through 2000 19 and also saying they will do as by 6%fiscal 2017 earning to 12%. also saying that they are going to utilize a new $20 billion authorized buyback plan over the willtwo years, so they continue to buy back their shares and that seems to be on track. again, the big news is what is going on with their topline growth. much more on walmart in a moment and we will be back on the bloomberg "market day. ♪ -- "market day." ♪

betty: 11:00 a.m. in new york, 4:00 p.m. in london, welcome to the bloomberg "market day."

♪ from bloomberg world headquarters, good morning. i am betty liu. today, a lot more insight in the state of the banking industry as revenue picks up at bank of america. wells fargo needs of third-quarter profit and wall street reform of the topic at the democratic presidential debate. areear what candidates saying. shares of netflix of more than 120% this year. we will have appeared of the latest earnings coming out at today's closing bell. 90 minutes into the trading session. they can use on the markets news now really from the out of walmart. i will head to the markets or julie hyman is standing by. julie: i am going to the headlines coming out of the conference where the company

executives are making comments. the biggest headline saying they will see an earnings pressure drop of 6% to 12% in the fiscal year 2017. that is going to the, but we saw a tumbling in the stocks with a sharp leg down after it came out with this news. the company also saying it is authorized for buyback of up to $20 million over the next two years but that does not mitigate the declined to an extent. it says capital investments will be flat in fiscal 2018 to 2019, 1 of the things that some analysts at the critical of the company about that it has been pouring a lot of money into things like e-commerce and digital initiatives where they will spend $1.1 billion on this initiative in the next fiscal year. walmart is trying to cope with challenges on a lot of different fronts, including currency challenges. they say that will keep the numbers or sales flat going into it is 2016 and also says

facing some of the same challenges it has been with lagging sales in the u.s. and also it had been a little bit stronger in emerging markets but emerging markets have now weekend. betty: you can look at that area for growth. this is taking on the dow jones. the s&p 500 as well. if you look at the major averages, we were negative before the walmart news came out. we had gone positive for the three major averages and then turned negative, and now more deeply negative after the walmart news came out. if you look at some of walmart's peers on the supermarket side, you can see declines there as well. kroger, costco trading lower. look to the s&p 500 retail index, this is an index that walmart is not a part of it but the consumer staple side in the s&p 500, but the index saw a sharp leg downward after the walmart news came out, so it does seem to be having a ripple

effect. intriguing because there is the shortage of corporate news in terms of earnings. jpmorgan, intel, bank of america but it is walmart news with the biggest macro effect. betty: it is the american consumer. julie: and we are the have retail sales numbers and worse than estimated this morning. the economy is doing better but it does not feel that way and then you see the numbers and you worry. julie: are people saving? less money to spend? hard to tell. betty: thank you. julie hyman at the markets desk. let's check in with vonnie quinn. vonnie: thank you. we start with at least one victory from last night's democratic debate. twitter says sanders was the most mentioned candidate, getting a 41% share of the conversation. clinton was second with 39% and they say he raised more than $1

million in the four hours after the debate began. at the debate, the five contenders spent two hours debating issues from wall street to syria. this led much of the time going after hillary clinton. >> think that resort full name will move us forward? clintont what secretary and what her husband have done for the country, but our country needs new leadership to move forward. vonnie: bernie sanders attacked wall street. he said every so often that americans after save capitalism from itself. americans have to said capitalism from itself. police say there was an attempted stabbing and the attacker was killed. israelis were killed yesterday along with two of the attackers. authorities have government permission to close off arab neighborhoods of jerusalem. families of attackers may have their property confiscated. deal in iran. the company's guardian council approved the nuclear agreement

with the west. iran's parliament has already signed off and the deal would carve -- would curb iran's nuclear program in the turn of lifting of international sanctions. at the first word news. you can always find the latest news on bloomberg.com. betty: thank you. more on that breaking news with walmart shares dropping over 8%. the most in six years. the company addicting the decline of profit during the earnings.l year analysts estimated a gain of 4% on average. the retail chain also said the board has authorized $20 billion in stock buybacks. i want to bring in shannon who covers walmart for us. wow. not what investors expected. shannon: i was talking to investors yesterday and they said they were looking for signs of growth, and now they say that next are, we are not growing. they are shrinking because they

are spending spending and investing. their spending $20 billion on the buyback, billion dollars in wages, e-commerce, which they say they have to do to drive the company forward. sales areeat if your growing at a certain rate. if they're going fast enough, you can spend that money but they are not. the company is in a situation where sales are not going fast and they feel like they have to spend money to get sales going but they are telling investors, have been waiting, waiting, waiting to see growth investments, you will have to wait longer. stick around until 2019. betty: also troubling, 6% to 12%. that is a huge range. what signal does this send to investors and analysts? that theit is possible company does not really know with such a wide range. we will give you more updates but -- is a big deal.%

shannon: yes, and they're going through a transition right now and working to improve stores in the u.s. international there are a lot of market they are unclear on. i know people use of foreign exchange currency as an excuse. they do get 100 $60 billion outside the u.s., so currency does have a big effect on the. 100 $60 billion outside the u.s., so currency does have a big effect on them. $160 billion outside the u.s., suppressing does have a big effect on the. betty: 20 think is affecting them the most? shannon: u.s. stores are number one, they need to get the ship right. the ceo said you need to clean up your house before you invite people over so they are at the point where they have to get eggs in order. -- get things in order. they are trying to buy investing

in e-commerce that u.s. stores are the number one thing. betty: what about the ceo, doug macmillan, will they be pressure on this guy? shannon: this is walmart. the only investor they need to the family who owes the majority of the company. you get into this situation with family had been owned companies were if the family is ok with this, if they say, go ahead, invest in the spend, do it you have to do in the short term for the long-term and as long as they get dividends, they will probably be happy. that is the situation. you're talking to investors, there is only one. betty: no one is pressuring him leave? shannon: i asked ms today because the stock is down 22% this year. we did not see this before and you know how the story and. -- i asked investors yesterday because the stock is down 22%

this year. we did not see this before and you know how the story ends. still, former people with the company, people who work with the company, everybody likes them. when you want to invest for the long term, sometimes you have to look past the short-term. betty: it is hard when you seek share price acting like this. thank you so much. shannon covers walmart for bloomberg. bankis a big week for earnings. jpmorgan kicking things off off my with results that fell short of wall street estimates. we heard from bank of america, wells fargo who both the the street. joining us now is erik schatzker who is in charlotte, north carolina. americalk about bank of because you will be interviewing the ceo exclusively in a few moments. we were speaking with paul miller in the last hour and he said that the question is how is monahan going to keep expenses under control?

expenses underep control, betty, and there is no doubt when we sit down that we will be talking about that. the bigger problem at the moment for bank of america and jpmorgan is there is no revenue growth. if you are successful in keeping expenses under control, great, but it revenue is declining, the profit is going down and that is what happened on a sequential basis for bank of america on a year-over-year basis. distorted because last turn the third quarter, they have litigation expenses. bank of america shares are up, for what it is worth, and some of that seems to be because there was an element of consistency in the big result that shareholders have not seen for years. for two quarters in the row, they have an average earnings of about $5 billion, so that suggests that the bank has annual earnings power somewhere in the neighborhood of $20 billion or north of that and

that is a lot better than they had done for the past 12 months where they were around $16 billion. that gives investors some hope and confidence. they are not knocking the lights out that we are not in that kind of environment or the kind of economy. betty: he has had a lot to deal with. he is still dealing with the legacy of countrywide and that acquisition. without giving too much away, what is on your mind? one of the big points you want today?out of moynihan talk aboutt to revenue growth. this is the big bank that in the area's most exposed to the american economy on the consumer level and at the corporate level. given the fact that the u.s. economy is growing fastest in the industrialized world, shouldn't that be better for bank of america right now that it is? so what about the bank's strategy is not properly focused? investsould the bank

more, where should they be making more in the way of revenue, growth and earnings growth? that is an issue and there is the cost side. bank of america is much more efficient than it used to be. brian moynihan has had success there, but if you compare it to wells fargo, it could be more efficient. what strategy or tactics is he going to employ it to make this bank even more efficient without taking out tens of thousands of more jobs? that is what he has had to do to get it to where it is today. betty: before we go, jpmorgan, i want to get your take on those results because they are pretty negative. erik: jpmorgan had disappointing results with fixed income and bank of america did, too. it seems what investors are concerned about today is the outlook. marianne late, the cfo, was on a conference call yesterday afternoon, not giving investors much to hope for. it is a zero rate in private, so

the lending business for the banks is not going to be great until the fed gets off the zero balance. we know that, in the meantime, is one way to boost earnings but they also have these gigantic trading operations. jpmorgan is bigger than bank of america and so the disappointment on the trading side hits the bank carter and all does not appear -- bank harder and outlook does not appear to be great so jpmorgan, relative to be a they, -- voted to makes america, is a quote on quote that news. betty: thank you. -- erik: quote on quote, bad news. betty: that interview is coming up,: 30 p.m. eastern time -- coming up at 1:30 p.m. eastern time on bloomberg television. ♪

betty: good morning and welcome back to the bloomberg "market day." it is a big it -- it is busy. a look for the biggest business stories. more problems for volkswagen, have told federal regulators there is additional software in the diesel cars that could affect admission tests. regulators are trying to figure out if this was a second attempt to cheat. russia's biggest airline wants to get out of the deal to buy 787 to minors from boeing. the ceo said the airline does not need a new long-haul plane and they say there are talks to acquire jets from trouble competitor. they had 22 planes at the list price of $4.8 billion. retail sales up less than forecast in in september with 1/10 of -- with .1 of 1%.

about $.60 a gallon cheaper than in june. you can always get more business news that bloomberg.com. let's head back to our markets desk where julie hyman has a check on some of the company movers and walmart is the big one. retail today. julie: walmart shares are falling, more than 8%. at one point, they were down the most in 15 years, but it looks like at this point they are down the most in 6.5 years, dragging down target and costco. we are seeing this ripple effect. in just in retail but also the stock market more broadly. sort of adding insult to injury thanp of that worse estimated retail sales number this morning. on the flipside if you look at consumer discretionary today, there is a silver lining and

then some. check out trip advisor with shares rising the most on record of 22.5%. priceline shares have turned lower but the company has a new partnership. there is the deal between tube advisor and priceline. as part of the, you could look some of priceline's system on the tripadvisor on the website on booking.com which is priceline's site that you could use to book while on tripadvis or sites. interesting that week see a negative effect on priceline as a result and a negative effect on expedia, competing travel website, trading lower i about 4%. betty: -- trading lower by about 4%. betty: thank you. keep an eye on walmart, but we will tell you why could be the biggest u.s. ipo so far this year. ♪

betty: welcome back. back in 2007, kkr made the bygest equity bet ever taking payment processor first data private. years later, the firm stake bet may be pay not because first data is seeking to raise as $3.2 scheduled an offering price today to make it the biggest ipo so far this year. bloomberg has more on this. for while, the pipeline was quiet. is first data can pull it off? alix: we are expecting them to start trading tomorrow and at

the top of the range, they are marketed $.2 billion as the biggest this year. the pipeline has been slow but this should be the biggest coming through the fourth quarter. betty: for this the reception? : kkr ticket private, a payment processor to run the pipes behind-the-scenes of that and credit cards. they were good thanks and merchants. it struggled to the recession as you saw consumer spending anlback but they brought in executive who comes from jpmorgan who took over about two years ago and they had seen progress since then. right now, it looks like kkr and first data a lot ask investors to take a long-term view on this as it goes public because sales for the company, according to ofy growing 2% for the rest the market, so there is some struggle that they will have to work through and the debt load

that will have to work through with some of the proceeds from the offering going to pay down, so it has not scaled going for them but there are hurdles they will have to get through until this is an action the successful company. betty: why is frank called wall street's they fit? therethere was contention and he ended up leaving and kkr basically brought him in to overhaul this is this. he knows payments well, and he has been around the block for a while. for a big shop like kkr who is been in the business for a while, if they could affect on this guy, you have to think that this is amended they have a lot of faith in. betty: you mentioned challenges, but detail what you think their big challenge will be? alex: it will be working to the debt load that looks like it might expire in the near term. $21 billion in debt, how much

they are sitting on from the leveraged buyout back in 2007 when the lbo who was at the peak. that will be the biggest thing and potentially finding more money to funnel into investments to compete with the likes of square at some of the newer high-growth companies moving into the market. betty: i'm glad you much competitors because there are so many on board and some are more nimble and you have the company like square, so how does first data -- given they are so big -- how do they compete? to the get first entrance because they are so big? acquiring have that business and they have been adding on a bunch of additional services trying to upsell what they have to show to have the biggest offering. talking fraud prevention, point-of-sale system-type stuff that they're looking at getting into because they do have a relationship with a lot of the big banks who happen to be there underwriters for the ipo. they are probably looking to use

that scale to build out you offerings in addition to what they have to kind of get ahead nimble, less debt-strapped startups. the equity offering hopefully giving them more wiggle room so they do not have to use all of their cash to fund their debt. they can actually put that back into the business and reinvest to figure out where they need to move more quickly. betty: on another ipo, albertsons -- aren't they pricing as well? alex: they set a price tonight that backedcompany operatives also fought back in the mid-2000, this is a company that also went out to face a competitor and combined the two to make the second-biggest u.s. supermarket chain. another company using proceeds to pay down debt and another company kind of slow growth in industry that is slow growth, so one that investors will probably be taking a look at the books and thinking, can they find the right opportunities for them?

does that mean bringing in more organic and natural offerings, getting people into the stores more often went online shopping has even into that -- eaten into that? other things albertsons has to look at. betty: and they're doing this and made walmart news. is that bad timing? alex: walmart is of the competitor, not necessarily a bad thing, but it shoppers are not shopping more, could be a problem. betty: thank you so much. still ahead on the bloomberg "marketed," hillary -- bloomberg "market day ago hillary clinton kept her force but what about joe biden? stay tuned. ♪

betty: i want to head back to the markets desk. earnings per going to contract 12% in fiscal 2017. you can see the shares are down 8.7% -- 8.75% right now. julie: basically after the big decline in the headline, stocks are bouncing along the bottom. also, a $20 million buyback. as we just heard a few moments ago, the issue is spending and investment on the part of walmart. sacrifice margins in order to keep its prices low. it is one of its own mandates. looking at a note from charles graham that popped up in my

mailbox right after the news came out, he said the pricing investment probably would not begin until sometime in 2017 or 2018 yard he said in the meantime, that could be a of walmart'ssome competitors. he said weakness in stock like costco and dollar tree, he would recommend buying those shares. an interesting side note. betty: that is right. the entire sector is falling. julie: it is probably part walmart specific because of investments it is making an part the broader economy as evidenced by retail sales this morning. thank you. be sure to catch walmart's ceo tomorrow.

he will answer a lot of questions from today. let's start with the news as well. vonnie quinn has more. vonnie: thank you. we started with afghanistan. 29 afghan police officers are dead after a three-day -- the checkpoints were overrun. thinking up to 5000 troops in afghanistan through 2016. the president had plans to restore all forces before it ends. they threaten security in afghanistan. iran signed off on a nuclear deal. they gave the agreement final approval. it had already been okayed by parliament. more violence in jerusalem hours after israel's government approved -- police say they foiled a stabbing attack, killing the

attacker. two of those attackers. have information to close off our neighborhoods of jerusalem. israel has deployed hundreds of troops. a seconde has become front in russia's clash with nato. among the targets, congress, the new york times, and german -- a look at our first alert news right now. you can find the latest news on bloomberg.com. betty: vonnie quinn at our news desk. the first democratic presidential debate erupted into the argument over the nature of capitalism. five contenders stood on stage at the hotel casino, it was this battle between the two leading rivals that caught wall street's attention. mr. sanders: the greed of wall street where fraud is a business economy destroy this

and the lives of millions of people. clinton: when i think about capitalism, i think about the small businesses started because we have the freedom in the country for people to do that and make a good living for themselves and their family and i do not think we should confuse what we have to do every so often in america, to save capitalism from itself. betty: bernie sanders and hillary clinton sparred over who would be tougher. was there a clear winner? according to our bloomberg politics team, it was hillary clinton. joining us now is an active fundraiser for both democrats and republicans. the chairman and ceo of the real estate company. good to see you back. what did you think? is i have to say, our, why are we all pandering, why is the democratic party pandering to the lowest common denomination.

this.about we have bernie sanders saying he and socialist democrat capitalism is not a good thing and big corporations are harming the country. then hillary clinton, the most moderate of them, indicating she wants to emphasize small businesses. it is important that small businesses are supported because they do a good job at large corporations do as well. a lot of innovation comes from our corporation. we are a capitalistic nation and a capitalist democracy. the idea that we're running away from capitalism, i am wondering who does bernie sanders or these other people think will employ the people in the country who need jobs. you disagree of hillary clinton's's comment that you sometimes have to save capitalism from itself? she is talking about wall street, right? >> we cannot be in the business of taking isolated instances of abuse and fraud --

betty: which almost took the country down. too much cheap money in the housing market, that hurt and brought down the economy to a degree. but that was capitalism and government and we have got to keep in mind we came off of the biggest attack on our nation's soil in our history with 9/11. the government made a conscious to rev up the economy and keep it going. a big part of terrorism is to attack our democracy and capitalist society. it is critical we support our economy. that would help propel us for -- propel us forward. that was not just corporate america feared it was all the nation including the democrats on stage last night that one could not win why he voted for one piece of critical legislation other than that he just got into the senate, which

is ridiculous. i do not think there was a clear winner at all last night. those whoem persuaded were not already singing the tune. hillary clinton reinforced with her troops. bernie sanders gave his supporters something to cheer for. day, nobodyf the convince independents or republicans to vote for them. betty: you are a friend of jeb bush. don: i'm also a friend and supporter of joe biden, and bill clinton when he first ran for office. i am going to listen. person, aness capitalist. i have taken a small business and grown it to a medium-sized business. betty: you also fund raise and are involved in politics.

don: i am the grandson of a janitor and a doorman. the son of an auto mechanic. betty: what did you think when hillary clinton talked about him a granddaughter of a factory worker? don: i thought she was trying to identify with a broad part of the country, but there is also a necessity here to balance this out. major role for business in the nation. without business, the democracy would cease to exist. to penalize the people producing to penalize businesses that are paying tremendous amounts of taxes, to penalize those who are so philanthropic, to demonize them, it is insane. it is really divisive. betty: but it seems like for the republican side, they are certainly not demonizing business. the billionaire, donald trump, is in the lead right now. enough, but spring

up that poll, a fox news poll out showing ben carson is now and, 23%ch done, no with donald trump at 24%. are you surprised by that? don: i am not because you're seeing the country is getting fed up with these career politicians. hillary clinton is an innovative and transformative person but she has been on the national political scene for three decades. bernie sanders has been around a long time. martin o'malley has been around a long time. careerre all politicians. betty: that does not bode well for biden or bush. the reason jeb bush is trailing is because donald trump exposed stylistic weaknesses and structural weaknesses in his candidacy. the country wants someone, people who are doers. politicians have a tendency to

talk about what is wrong but do very little about changing it. country is saying, this is an urgent situation, we have got an ever widening income and wealth gap and the answer is not to say, we do not want people to be wealthy. most people do. the answer is more opportunity. what is remarkable is how much carson is rising and how quickly it seems like trump is falling. know he is falling but he is plateauing. betty: he is declining a bit. don: slightly. carson is picking up and what is interesting is the other candidates who tend to be career politicians, chris christie, ted cruz. you know, it is possible. i do not think money will make a difference for marco rubio. do not think money will make the difference for any of these candidates right now.

you look at bernie sanders, the donor base is small contributions. hillary clinton has a deep donor base. i do not think money will be the limiting factor this time around, or the factor that propels. jeb bush has got more money even anybody and he can ride it out until the end and he probably will. better position because of his staying power and his long track record to reemerge. betty: do you think there is room for one more candidate? yes. joe biden. last night indicated there is a need for him to have a real substantive choice. hillary clinton in that debate is the only choice. that is it. it is a campaign and debate of one person. democrats want to have an alternative and i think that would help her as well. betty: thank you so much. you,seal -- good to see and much more is ahead. netflix is set to report their earnings later today.

we will preview that report after the bell. shares of walmart having their worst day now in more than 15 years. from vegas to charlotte, north carolina, an exclusive interview with the bank of america chairman and ceo ryan moynihan who will be talking about earnings results with erik schatzker. do not miss it. ♪

betty: welcome back here and it is time for the bloomberg business flash. a look at some of the biggest

stories in the news right now. walmart having their worst day and more than 15 years. the road passes largest retailer predicted profit would tumble in the next fiscal year by 6% to 12%. increase.orecast an a $20 billion share buyback. the walmart ceo will be on bloomberg tv tomorrow morning to answer a lot of questions. twitter has a new executive chairman, the former google advisor. his arrival marks another big move by jack dorsey, new ceo. more thanit would cut three mind jobs or 8% of its workforce. he says he is trying to make twitter more focused after two years of slowing growth. if you ever bought a high school yearbook or >> ring, you're probably done business with justin. $1.5 billion. -- heivate equity firm

knows everything from baseball gloves to grills. you can always get more business news at bloomberg.com. european markets have closed for the day. it has not been looking great at all. let's head to london where mark barton is standing by. mark: another piece of chinese data highlighting leave fragility of the world passes second-biggest economy. unemployment stood out, the rate falling to 5.4%, the lowest since mid-2008. three big movers across europe on this session. the company that makes machines that make ships, below analyst customer on the delayed ship machine orders. germany posits biggest residential landlord has tabled and 11 lead our offer for the company and big rival. -- plan purchase of

the property industry is rising with m&a. broker at a 47 percent spurge. that is it for london. betty: thank you. for a look at u.s. market is and how they are trading, we focus on retailers and walmart. met alert as this live from the nasdaq. most importante stocks to watch, one of the biggest percentage losers on the s&p 500 and one of the biggest reasons for declines, or one of the biggest weight on the index. intel came out with a disappointing outlook same corporate customers may curb spending and corporate customers are the main thing keeping the

market afloat to begin with. says $14.8 billion in revenue is what they expect. it is exactly what analysts expected. intel says it could be plus or -$500 million. a big swing. , want to touch on trip advisor an amazing story as far as, to value has been added to the stock today. all it said was it has got a joint venture with rise line and that trip advisor what users will be able to book through priceline's booking.com website directly from trick -- trip advisor. you can see a 22% gain, massive gains for the company. still ahead, we will get more insight on the retail landscape from the nike ceo mark parker. that is coming up at 2:00 p.m. eastern time right here on bloomberg television. ♪

♪ betty: ok. that is walmart shares. we are bouncing around at our lows of the session right now after big news came out an hour ago where walmart said earnings will be down between 6% and 12% in the next 50 deaths fiscal year and also cutting back on capital expenditures, basically spooking the markets on the american saran and walmart, waiting on the indexes. it is now time for the options insight here. julie: we have seen stock

pullback more strongly in the joining memart news now from out in chicago, jim, in terms of what we are seeing today, waiting for the earnings season to give a little direction, and yet with walmart -- walmart news, the earnings report is giving it to us, it seems. >> it definitely is. jpmorgan and wells fargo are down today after earning it a big move lower in intel. last week, alcoa had a more dismal report. none of them are looking all that good. we are seeing options volume pick up a little bit. monday was one of the quietest days we have seen all year. one of the things that i have

in thes a big block retail if you are not only is walmart dragging the sector lower today, having one of the worst days in over a decade, we also had week retail sales numbers this morning. autos were disappointing. betty: i want to ask you about another company coming out of earnings. it is netflix, which trades in consumer discretionary in the retail related and what are you looking for out of the company? >> i like the setup out of earnings. netflix investors do not necessarily care right as much about the underlying economy or the strength of the consumer. we can see the stock has rallied and they beat estimates in the fourth quarter. i think the risk reward sets up

-- sets up better. i am looking at a netflix call 135erfly, buying the 115, call butterfly's for about $1.7. dollars as long as it falls within a roughly $15 range. this stock has already done enormously well this year. the stock is trading higher by about 123%. given that gain, does that add a that if therere is a good earnings report, it is already priced into the shares? jim: it definitely does at a risk. on goodhe stock pop earnings. we could have made the same case every time they reported earnings in the past three quarters. we can then you to see average higher on i stay for netflix.

have so much upside and very little downside, it sets up well for me. quite some want to take a look at the vix rebounding for a second day in a row here after a long streak of declines, 10 straight days that the vix was lower. what are you seeing in terms of of whetherterms operators are looking for another significant operating volatility aired it is still trading well below 20. jim: it is. it would not appear they are willing to buy a whole lot of volatility. the world -- the worry about the economy and the week traded a common an opportunity to get long volatility. over 130 points off of recent lows. are seeing a big move lower yesterday and shaken us today, we are not being that volatility and i think it presents opportunity to provide

protection here. betty: all right, thank you. as we had to break, we take a look at markets inclining across the board. off the lows of the session post walmart news. i will give an update in a few moments on how walmart is trading and the river old affect it is having throughout the market. stay with us. much more is coming up. ♪

>> welcome to the bloomberg market day. ♪

scarlet: good afternoon. alix: here is what we're watching this hour. ms. clinton: my plan would have the potential to send executives to jail. street, should be worried? general motors falling the most in 15 years after it slashes is earnings are cast -- earnings forecast for next year. street arlyn going back under the microscope today as it delivers its third-quarter earnings report? -- report. how thestart with markets are digesting all the data. walmart's big announcement spire