from bloomberg world headquarters, good morning. i am betty liu. goldman sachs missing estimates on the big drop in trading revenue. , a lookp profit beating at today's hits and misses in banks. shares of netflix plunging after profit of subscriber growth falls short of estimates. what they are blaming the big mess on. another sign of weakness in the -- market as data flowing lowering the data and how shares are doing on the first day of trade. we are about half an hour into the trading session and i went ahead to julie hyman where she has the latest. stocks rebound after a couple of days of losses. of economic data, jobless

claims, consumer prices coming in better than estimated that seems to be helping. we are really now been in earnings driven market. we are seeing stocks rise but much more important in this burning season to look at the individual movers and see how they are reacting to the earnings news. let's take a look at what is going on with the banks. you hear much more detail about them in the moment but a quick look at citigroup following on a trend of cost-cutting in order to beat estimates. the company also gets more than half the revenue from outside of sitcompany -- country, i say. it also saw a drop in legal cost to help boost costs. steeperhas dropped with -- that was steeper than competitors and those have been weighing on the shares. betty: drug pricing back in the news. julie: a lot of musical out today on other fronts as well. a value pharmaceuticals --

valium pharmaceuticals getting subpoenas from u.s. prosecutors seeking new information on drug pricing decisions. this has been much in the news as of late and valiant shares down 6%. the biotech index is not down along with valeant. we are seeing that rise and there was a relief after the democratic debate when the contenders did not mention a drug pricing plan and it looks like. rally is continuing today. notwithstanding. hca holdings is leading declines after the company came out with a preliminary third-quarter earnings. those missed analyst estimates, and the company talked about uninsured patients as a percentage of the total rising to 8% of total visits versus year earlier. this raising concerns because hca holdings is the largest hospital chain about what it

will mean for smaller competitors. betty: thank you. julie hyman at the markets desk. couple news -- a full day of news. vonnie quinn has more from our news desk. you.e: thank president obama expected to announce this morning that the withdrawal of u.s. troops from afghanistan will be delayed. officials say at least 5000 u.s. troops will stay through 2017. the reaction to increasing attacks by the taliban. he had planned to remove them. we will have live coverage of the residents begin to the nation at 11:00 eastern on bloomberg "market day." investigation into iran's the clear past and today. they have until december 15 to report the findings. the nuclear deal between iran and world powers takes up by three days from now. depending on reports, sanctions against iran could be lifted early next year. millions of people who depend on social security are getting a welcome news today.

the government says there will be no benefit increase next year. unwelcome news today parried the governments of building a benefit increase next year and the main reason is low gas prices. based onl grazing is inflation. paul ryan remains the favorite among house republicans does exceed john boehner as speaker. ryan has not decided if he wants the job, leaving it open for other candidates. l isis of california says he will run it ryan does not. they will only run if ryan does not. that is a look at the first word news. you can find the latest news on bloomberg.com. betty: thank you. priced the ipo, they just opened trade and julie hyman has more on first data. julie: first data has open and trades are rising by about $.22

although bouncing around a little bit this morning. first data opening up right now and trading around $60.25. they priced the shares at $16 a -- 16.20 five dollars. they priced the shares at $16 a piece. why do we call up first data on my bloomberg terminal. we are seeing it bounce around a little bit initially. not much of a chart. nonetheless, it was a little bit disappointed in terms of where it was pricing for the owners of the company, kkr, for the payment processor. if you take a look at the market cap, $14 billion is how it is valued in the market as it gets underway this morning. trading sort of bouncing around but rising from that initial ipo price. betty: thank you. as you mentioned, not much of a chart so far but we will track

where first data shares traded to the rest of the day. turmoil taking a toll on bank trading revenue. goldman sachs taken the biggest hits compared to rivals, falling 34% in trading revenue. missing the third-quarter estimates. followed by jpmorgan, down 23%, bank of america, 11%, and citigroup dropped 5%. with meas jpmorgan -- now is devin ryan. looking at goldman shares, they are down and citigroup is up right now. what happened with goldman? was hard quarter. betty: worst among others. kevin: i think they have a mix. goldman is more exposed to businesses like mortgages so that was a tougher area and equities was stronger in the quarter. i think it was more. it is clear -- it is rear view booking. morgan had an extreme move in

the quarter and i think you will see deception, but the good news is there was not the trading blowout so we were encouraged by that. if you look back six years ago, the risk would have been much higher. betty: were there other parts that you felt, ok, it is on the mend and other areas? devin: i think all the businesses will be tied to the markets. we will have to figure out how much of the extreme volatility is going to reverberate into the fourth quarter and year and. we are trying to figure that out. i think trading could remain tough into the year end. one of the good spots was investment backlogs were up year-over-year. if the markets are conducive, there could be a lot of activity , so we feel encouraged about that. we're be looking -- like jpmorgan which seemed to be negative across the board. there were pockets were business was better, but even wealth management was down. wealthere areas in management that were doing a little better than expected, but this is kind of across the

board. devin: it is the cost of board and you look at equity markets blowout,credit spreads say go into a defensive mode in that environment so it is hard to make a lot of money as you try to protect your needs. if you look at goldman's earnings today, that is what is reflected. they made money, not a great quarter, but they got out of the court it relatively unscathed but they do not have a trading blowup. we committed to the fourth quarter any start getting investment banking deals done and maybe we don't feel as bad about the world. we are trying to monitor that right now but that is the go forward. betty: it is funny when you said, at least we do not have a training blowup. we are ok. what about citi? devin: i don't formally cover them, but you did see trading was tough and they had a better mix. they were trading relatively better. and the have more exposure internationally like expenses that helped the results relative to some pair capital market. betty: thank you.

jmp securities inc. analyst devon ryan. another story we follow today is netflix. the shares are plunging in today's trade, down over 8%. u.s. subscriber growth missing analyst estimates with the company blamed the introduction of new chip-based credit cards that cut off some of their customers. bloomberg news cory johnson joins us from san francisco with more. explain exactly what the credit card situation is. i will tell you what netflix says and what i think. netflix says that their growth in subscribers would have been better, would have met wall street estimates or something like it, but there was a change in the way that the credit cards are being issued that require these chips. it is true, on october 1, after the quarter ended, on october 1, there was a change in the laws governing liability at

point-of-purchase sales, so u.s. consumers who do not have an achip in the cards would get new credit card and netflix said that hurt the new subscriptions because not everyone had the card they wanted cap people from logging on. -- wanted or kept people from logging on. that does not jive on two levels. betty: clearly. corey: it only happened in the u.s. they are focused on international expansion that came in slower than expected or according to some estimates. if you look at the u.s. consumer growth, and that put a chart together be was saturation, the concern for netflix, look at their growth -- sigh, that is the total subscriber growth rate down to 5%. that makes you say something is wrong and this is fiber number is still up about 3 million in the quarter, same as last quarter. at the growth rate, the saturation rate of what happened in the u.s., the growth in the quarter that the reported last i was 2.1%.

the growth in the previous quarter was 2.2%, which did not have the chip problem, so i look at those two numbers and say there is hardly any difference. it seems a ready excuse and it had no effect internationally. betty: basically what you are suggesting is that they are blaming this chip problem on the fact that the fundamental problem may be that they just are not adding as many subscribers as expected by wall street. in has nothing to do with the chip issue. everything to do with original programming, perhaps? love wall street, i don't care about washing, i care about the business and it is interesting, but the problem with their business if they have to pay it to get content. this is not the streaming channel that shows the movies that other companies release, netflix strategy now is to create their own programs, start

with "house of cards," "orange is the new black," and they're talking about these things and spending money to do this. they have contracted for over $10 billion in guaranteed minimum payments going forward for the next couple of beers. if they do not have the money to pay for that, they don't have the free cash flow, profits, they have to add a lot of subscribers to get the cash flowing onto paper that and they are not getting it. now you see them changing accounting, recognizing may be the first season of "house of cards" is not as viable in the fifth so they have to advertise different and go back to the market to raise money. betty: they will have to raise more cash. on the programming side of it, they let the little bit of -- i would not say a bond, but they let a hint dropped that they might go into news programming. i will redo the back and forth between reed hastings. what is the likelihood that we compete with fights in the next two years?

this is reed hastings to the chief content officer who says -- probably high. what do you make of that? they're competing with vice, showtime, hbo, hulu, fx, there aretnt, over 400 dramatic shows being produced. they will look at documentaries and feist-like things as well. they have so much competition and the cost are going up so high for the shows -- they are terrific shows being broadcasted on amazon prime and amazon -- is paid topn like dollar to make some of the best shows in television and amazon's business model is melted because the costs are so great and they're coming sooner than ever before. it should not be overlooked. betty: we are just video, number television. corey: i love consuming it. betty: thank you.

cory johnson in san francisco for us. we will be right back with much more. stay with us. ♪

good morning and welcome back to the bloomberg "market day." julie hyman has a check on some of the company movers. companies outf with earnings. manitowoc is one of them. the company makes cranes as well as food service equipment and planning to spend out the food equipment armed. below estimates, because of the crane business. questionings are how likely it will be and how easy it will be for the company to spin off the food service business with shares taking a big hit, up 12%. there is garmin coming out with

in theeliminary view preliminary third-quarter view missing estimates because of currency effects, but the company also saying for the year it sees, the fitness center growth of 15% and it had been 25%. a lot of competition there. i was looking at garmin versus fitbit since i feel in june, fitbit shares are up better than 70% and garmin is down by about of time the same period in competition as part of the issue although i should mention in this particular quarter, as against the forecast, it is blaming the auto segment for the shortfall. betty: thank you. julie hyman at the markets desk. needseks away and walmart of the holiday season after suffering the worst stock decline in 27 years. they had a drop in annual profit and shares are bouncing around. what is walmart's strategy going forward to appease investors? maybe they will take a picture

of jeff bezos and amazon? that is what shannon says in her piece today on ball mark. shannon, good -- today on walmart. shana, good to see you. i know you are super busy yesterday but how might they take a picture jeffrey basis -- jeff bezos? shannon: i think putting profit targets on hold and investing in the company and doing what you need to do to grow and reinvent the company. i think that is sort of the message that walmart ceo jeff mcmillan was sending yesterday when he talked on bloomberg tv and investors saying that they need to put money back into the company. they cannot have this focus on meeting profits and expectations. if they feel they need to invest money, they will do that. that is the amazon strategy we heard for years with jeff bezos telling us -- betty: but they have good money every year. shannon: walmart will still be making billions and billions of

dollars but it is a shift in mindset for walmart to save that we will focus on our stores, investing money and not so much on meeting orderly profit targets, which they had been doing for a number of years. betty: what happened yesterday, does it tell you that the super censor idea is fading in america? shannon: walmart will be first to defend the supercenter and the supercenter is crucial to the future. those stores are not going anywhere but the company acknowledges they have to do more than that. maybe they have maxed out of it on supercenters. extra, i think they are opening 30 supercenters to 40 supercenters, slower pace than in the past. there is a crazy statistic like 70% of americans live within five miles of a walmart supercenter. betty: i do. but i have not gone in and many years. shannon: it is amazing when you look at a map of ball mark. they are moving toward neighborhood markets, essentially the size of a

grocery store or kroger store. they are investing more online and a knowledge that will be a big effort, but they want to bridge this physical, digital divide. have an app that helps find things in the store, order things online and pick them up at stores. doing online grocery ordering where you get them picked up and you just drive your car and someone puts them in your trunk. that is what they are trying to do to move things forward. betty: thank you so much. shannon of bloomberg news. anh more ahead, including interview with the ceo of first data. ther ipo's trading for first time today and down 1%, as you can see. we will be back. ♪

morning, watching shares of first data, the payment process are just made the trading debut with the stock 1.2.5 -- 1.25%.

erik schatzker is standing by with the ceo at the new york stock exchange. erik: thank you. frank, good morning. i'm sure you feel pretty relieved to have the ipo out of the way. i have to begin with the stock marketed$16 and the range was $18 to $20. in close contact with the bank building your book leading up to the pricing process. how come it is two dollars shy? frank: i think the way you look at this is we are raising approximately $3 billion. we are a company that is taking a very long field. we have an unbelievable client base and an unbelievable investor base and we feel good about the future. i think it is important that we took this next step on the journey, the step of continuing to grow the company and deleveraging and refinancing. it is a fabulous opportunity

that we are there, in the market, at the york stock exchange, such a great institution, so i think it is about a long-term journey and we are taking a long view. erik: you talk about deleveraging the company. clearly, that is the task ahead of you in addition to a number of things. tor interest coverage ratio interest expense is about one. you are probably aware that at by reckoning, there are only three companies in the city revenue with interest coverage ratio of less than one. not quite sure i would call that a rarefied company. how much pressure do feel to get the debt down? $3.5 billionsed last year, got rid of data holding company, a nasty tick that was on the company, we paid down $2 billion in debt. we are back out here with great investor demand. we feel good about that. we are continuing to

deleveraging company and we had the opportunity to refinance many of the bonds at much lower rates, and you will watches continue to generate positive operating leverage and ultimately one year from now, we will be organically deleveraging the company. i understand where we started, it is where we finish. you have probably seen the s-1 filing from a square. the square is one of the companies that would love to disrupt businesses like first data. with the gross margin of only 29%, what do you think of the company? frank: i am focused on what we are doing with our clients. when you look at what we have done in the past year in innovation, whether it be what we brought to the point of sale without a terminal and tablet -- erik: let me interrupt you because you raise an important point. as great as not have a lot of money to invest, maybe that is a problem, but neither do you. you need to take the cash or

generating and pay down debt, how do you invest in your business to stay competitive with upstarts? frank: the question will be answered in the past year. we have bought and partnered with some of the best companies that are now in market. virtual gift, clover, cloud-based, we partner with silicon valley. we have more than 100 applications that run on clover. it is the only open app store. if that is about delighting our clients. we have been able to invest and we have increased investment in the company and we will continue to do that. erik: thank you. congratulations on your ipo. company that takes the public, they get -- any ceo that takes a company public, they get that. betty: thank you. we will be back. ♪

live from bloomberg world headquarters in midtown manhattan, you are watching the bloomberg "market day." i am betty liu. let's start with vonnie quinn

for my news desk. vonnie: ui. the white house has reportedly been in talks to limit the scope of nuclear weapons of pakistan. talks are being held before the u.s. visitter's next week. since one of the founders of nuclear pakistan's program was technology.ng the some experts thought they would limit the program. german angela merkel will prepare the country for to me with refugees. -- it is a historic test for europe. the party has criticized her for encouraging migration and for failing to protect germany's borders. also, released from the south african prison five days from now, our broadcast reports of the parole board is allowing him to serve out the manslaughter sentence under house arrest. feel of the caffe was given a five-year term for the fatal shooting of his girlfriend. olympian was given a five term for the fatal shooting of his girlfriend. nearly $2 billion in damage,

according to [indiscernible] the mostone of costliest blazes in the history. they killed six people. the 1991 oakland hills fire remains california's most expensive damage. it was nearly 2.7 u.s. billion dollars in damage. major airports across the u.s. last night were disrupted because of a computer years for terror watchlist. outage lasted about 90 minutes and authorities say they do not think it was intentional. you can always find the latest news on bloomberg.com. betty: thank you. vonnie quinn. what is the best investment in the world? according to our next guest, educating girls. gene sperling is the author of the book "what works and girls education."

he was the former advisor to two presidents and the current advisor to hillary clinton. by billy, a quick programming note, we will take you live shortly to the white house -- and a programming note, we will take you live shortly to the spot house to your talk afghanistan and u.s. troops in afghanistan, so we will keep you apprised of that conference. in the meantime, welcome. gene: thank you for having me. betty: you have been talking about this with the book you published, so white right of book about girls -- so why write a book about girls education? delegation inhe the form that created millennium development that said that every child should at least get a primary education. by 2015. we know more that you need for secondary education and that girls education in particular is , as we say, the world's highest

returning investment. here is why -- we know in a country like the united states that education is good for growth and wages, but girls' education in developing countries has a broader impact and turns out to be the best intervention you can have for infant mortality, reducing maternal mortality, reducing contraction of hiv aids, and one of the most remarkable statistics was that unesco found that if all girls were receiving secondary education, you would have 2 million less child marriages. that is what makes of the world's best investment. this investment has so many positive impacts across so many fields that it makes it -- in line betty: inmates -- betty: it makes economic sense. gene: and more than that. when we see people getting shot, afghanistan is not being able to go to school because of the

taliban our kids kidnapped in nigeria, the truth is people do not need a book about evidence. they know it is wrong, but with the book we did with "what works and girls education," is that it makes the case to tell how high the return is. we know that if you make school free in developing countries, more girls will go. you have to pay a fee per child, poor child -- when you have to pay a fee per child, families will send the oldest child and the girls behind even though we know it will do more for the country. betty: outside of friday the book, what are you doing on that front -- outside of writing the book, what are you doing on that front? gene: when i left the clinton administration, i founded the center for universal institution -- for universal education at the brookings institute. together, we are working through

the center for universal the form in being the united states that brings together different groups and we are working with anyone who wants to work on this. ladiesencouraging first champion this, but we would like people to step up with more commitment to the global partnership for education and put more of their money where their mouth is. i think when we look at foreign-policy issues, this is important. most topically, it is syria. you will have one million children going into lebanon, , a lot of them are girls, a lot of them will not be there for a long time. when people think about emergency help, they think about food and water and they don't really realize that education is also a life-saving for a lot of these children and for girls it will make an even larger impact on their families. betty: speaking about

afghanistan and foreign policy, as i mentioned a few moments ago, the president will speak at what he will be discussing is keeping troops in afghanistan, u.s. troops in afghanistan beyond the current deadline and well into 2017, so well into the next presidency. do think that will have a big impact on what happens now going into 2016? heard theve not announcement and i am not a foreign-policy expert, but i do think that there were some remarkable things done in getting more girls educated in afghanistan. i hope that whatever the arrangements are for the global on securityll focus issues but it would be hard braking to see backtracking to see -- because of the taliban and other forces. betty: this might be barbecued the presence there, too. : i will say we should care

about this and people who say we should not have anything to do with afghanistan, we should remember the girls. pakistan but this is important everywhere, and one of the focuses we are making here is that primary education is important in making chicken read and write, but if you want girls to be empowered -- making sure they can read and write, but if you want girls to be empowered, they need more. they need to be empowered in that way. betty: let's talk about economics. they wrote this piece in a journal that stop us today about the fed looks like they may not raise rates this year. things are not looking that great enough to do that. you felt that position, right? even before the jobs number, i wrote a piece suggesting they not even think about moving to january. my argument is a risk management

one. when you are in policy, you look and ask yourself not what you think is exactly right but what is the damage if you are wrong. my argument is that the danger or damage of the hawkish mistake is much they -- is much greater than a dovish mistake. betty: there are two evils? ene: let's say you move too quickly while the global economy believes and the labor market has not strengthen or the dollar appreciates too much. if you do that and you are wrong, the harm was significant and you have less tools to adjust them. betty: we are talking 25 basis points. gene: yes, but you don't know the impacts. people could start projecting with the u.k. will do with the investment changes and the question is really -- what is the harm in taking the risk? the harm is usually that you think the fed monetary policy like ocean minor, if you wait

too long, you will hit the iceberg, but in this case, we have had such low wage growth, such low inflation, is it really that bad of a thing if we overshot for a short period of time? they have always said that 2% is not the ceiling but an anchor, so if you have a little period where you work somewhat above inflation, it might have a positive effect in that it could encourage more people to come back into the labor market, more employers to give some people a chance, so i guess i am saying that if you look at where is the harm if you are wrong, i think the harm of hawkish mistake -- betty: is even worse. ne: much more serious. why not wait until january to wait for christmas shopping season. betty: things may get worse because we are coming up against this debt ceiling. jack lew was speaking today and sayingletter to congress

that the resources have continued to be negative. i respectively urge congress to take action as soon as possible. raising the debt limit without delay and remove unnecessary threat to our economy. he moved up the debt ceiling from november 5 to november 3. gene: there is a big pavement on november 3 -- there is a big payment on november 3 and the attitude they have this complete transparency. yes, we have rdc how harmful this was. i was on the negotiating team in 2011 and i don't think anybody was part of that who wants to go through that. we have had major companies come in to say that it was as harmful for consumer confidence as exec 9/11 were, so that is a terribly self-inflicted move to confidence in our country. i think the good news is the leadership on democrat and republican side does not want to see this happen, so there is a lot of turmoil in the house of representatives right now. i am so hopeful that mcconnell,

boehner, pelosi, obama, the five people in leadership positions, do not want to see the this happen again, so i would hope that whatever struggles we have on the budget, on transportation that we get the debt limit riskded and we take that of government dysfunction off the table for the economy and for the image of the united states and a credit worthiness. betty: i know you advised hillary clinton and i read some of the concept of the debate and you are pleased with her performance, as were a lot of people about clinton. she did mention, and i remember watching, about trade and justifying what anderson cooper was saying and what many people say is that you are flip-flopping on trade. are you surprised she has taken this stance on trade? she has always basically said his some people are anti-trade, pro trade, and she has case-by-case by trade. betty: can you be case-by-case?

: i think you can. if you look, she has been on both sides. traits supported some agreements and not supported others. her view is she looks closely at each one individually and makes that judgment. betty: do you agree with her view on trade, on tpp? ene: this will seem dodgy but i will because parent in dodging this, i worked for president clinton for three years and i am advising hillary clinton. mom and dad disagree on this and i will stay out of it. [laughter] betty: you will be the kid in the middle and say -- i just want peace. [laughter] opinionated pretty guy. every 10 years or 15 years, i deserve the right to take a path on the public policy. betty: but you do not want joe biden to run? gene: i am close to joe biden

and i think the world of him. i am supporting hillary clinton because i think she is the best person at this time. believe, choice, but i as we saw in the debate, who has her competence, qualifications, and i'm believe a lifelong committed to fighting for middle-class people and low income people. i think joe biden has a lot of those characteristics, but hillary clinton has been in, people rally around her, so it is his choice but as much as i love joe biden, i have made a personal commitment to support hillary clinton and i am staying with that. betty: thank you for stopping by. jane stirling, the former director economic council and dr. "what works and girls education." president obama will be addressing the nation in 20 minutes to talk about his decision to halt the pull of u.s. troops out of afghanistan. we will bring you his comments like. -- we will bring you his comments live.

we'll be back. ♪

welcome back. just over one hour into the bloomberg "market day," and we have breaking news on folks login. they will be recalling -- breaking news on frank bisignano -- on volkswagen. they will be recalling 2.4 million vehicles in germany and they will be starting in january of 2016. the effect a variety of models. they will be recalling a .5 million vehicles and the stock -- recalling 8.5 million vehicles and the stock is down over the percent in germany. mark barton is standing by with the latest on vw and the european markets. , preferredare prices

shares down by almost 4%. we had news earlier that the german government has forced vw to recall 2.4 million diesel cars. when it national authorities rejected the proposal for voluntary repairs. that is the latest news that has been expanded across europe over the 8 million diesel vehicles that will be recalled. vw wanted to take its time and said it would probably take to the end of next year to repair the cars. get on with it, vw, the message from germany, europe and shares are falling consequently. ofe a look at the rest europe because it is about interest rates in the united states. you know me, i don't need to tell you, the federal raise rates probably at the beginning of next year and maybe even april. that is boosting sentiment. every industry group across

europe is rising. is the also not rising expectations for the stoxx 600. back in july, the strategist forecasted that the stock 600 would rise 18% through the end of the year from today's close. right now, they have been cutting back the forecast and they now say that the stock 600 will rise about 10% to the end. it is because of the china devaluation and because of coming back to what we started with the cousin of the --kswagen in mission emissions scandal. everything comes back to the fed, china, or volkswagen. betty: thank you. mark barton keeping his eye on volkswagen and european shares. for look at how u.s. markets are trading, particularly the nasdaq, we have the latest live from the nasdaq. we are mainly looking at green over at the nasdaq market site with the nasdaq composite index up almost 1%, but there are two standout

losers to the downside, netflix and carmen. starting off with a less ugly of the very ugly, netflix with shares down about 10% as investors fret over weaknesses got the growth in the u.s. the company attributed some of this to problems with the new chip-based credit cards calling it a voluntary churn, perhaps, they expect more of this because the subscriber growth is slightly disappointing as well. this momentum stock will certainly need to gain footing at finding some more of the subscriber growth that investors have gotten so used to. , theng over to garmin company has for the second straight time in a row slashed or put up a negative quarterly preannouncement and slashed for your guidance to 2.25 to 2.65 to .8 billion from 2.9 billion. jeremy torompted

lower price target from 30 to 35 and reiterate his ratings, intensified competition and fitness and soft demand in aviation. back to you. betty: thank you. abigail to little at -- abigail doolittle. chip maker sandisk said to explore a sale. who is going to buy this company and why are we seeing so much m&a in the chip industry? we will be back. ♪

betty: welcome back. i am betty liu. chip maker sandisk said to be is -- said to betial exploit the potential sale from micron technology and western digital. this comes during the biggest year.ar for -- m and a

why is this happening right now? i want to bring in anna, who has more on this. you and i were talking earlier, this is a long time coming. >> if you look at various assets of the chip industry, and a lot semiconductors, a very fragmented market with a $44 billion business with the top maker of texas instruments only about 20% share and the second-largest is about eight or 9%, so there is a lot of subscale players who need to go big or go home. there is consolidation happening and some of it purely for financial reasons and it makes sense. some of them tried to gain exposure to different product types and some are saying, look, i have a factor, you have a factor, let's utilize one factory and check out the went down and we gain efficiency. all of this is making sense to the point where we are seeing where the target and the acquire

stock are going up after potential announcements. it is strange. betty: it is. and there are a bunch of them. devices.king analog there is more. ananda: and all of them from strategy standpoint makes sense. they are complementary. from a timing standpoint, where rates could be a factor, so they are getting financing earlier ahead of the rate increase and that could be a factor. you have deals over the last 15 months that have been smaller. there have been one or two big ones. now you are signed to see the spillover into memory. which is another interesting twist. it is a consolidated industry with five players that there is a reasoning where you want to compete against samsung which is a 40% share owner and you are starting to see -- so you want

to be able to sort of balance the power. betty: there is an interesting china angle. china has been procuring access to memories, so there is speculation of interest in micron -- a line -- betty: that they might want to buy micron? andand: to buy micron directly and also to buy toshiba memory operation and it is speculation. now they invested in western digital. betty: do they have minority stake in that? anda: they did have minority stake and it was a nice premium. betty: 20%. ananda: very minimal influence. betty: is this a way for the chinese to get chips for themselves or to get into the u.s. market? anda: it is a global market

usually heavyeen and chun has been unabashed in their desire to gain influence china hasce, -- ha been unabashed in their desire to gain influence in the space. betty: anytime there is a technology deal related to china, they will be watching that. thank you so much, ananda srinivasan. much more ahead in the next hour of bloomberg " market day." president -- in the next hour of bloomberg "market day." president obama will be speaking live. we will bring in his remarks, next. ♪

betty: it is 11 a.m. in new york, 4 p.m. in london, and 11:00 a.m. in hong kong. welcome to the market day. ♪

betty: and bloomberg world headquarters here in new york, good morning. i'm betty liu with what we are watching this hour. president obama will be talking to the nation moments from now about the stock of the pullout -- the stopping of the pullout of troops from afghanistan. to you live. that and that it is a tough environment out there as albertsons puts office proposed ipo after dismal numbers from walmart. for the retailan environment? and companies like standard will and drafting and their online bettors. is at the breaking

news desk. julie: the numbers are rising sharply, more than analysts had participant -- had anticipated. lastthan 7 million barrels week, much higher than analysts had been anticipating. the estimate was for about 2.4 billion barrels. this to let -- distillate estimates falling. let's dig look at an update to see what oil is doing. we are seeing it take a leg lower on this news. oil prices were already lower after the american petroleum institute came out talking about building inventories as well. now a report from an agency matching that report from the api, raising concerns about this bill. we are seeing declines for the fourth day in the -- in a row. prices are down since july about

1.8%. a bounceback tends to happen after these reports. betty: what about stock? we are seeing rebounds after losses? julie: yes, we are. we are seeing stocks trading higher today. we have all three major averages arriving at this point. earnings certainly helping matters and consumer prices coming in better than estimated helping to some degree as well. let's take a look at the bloomberg terminal to see what groups are doing to that. financial's are leading on many of those earnings. technology and industrials are also rising. even energy is holding up, just the oil -- lower oil prices. as for the banks, let's look at how they have been performing. here are the averages. here they are. it is not just the banks like citigroup and goldman sachs that we talk so much about. the regional banks are doing

quite well on earnings. you've got keycorp, u.s. bancorp, and bb&t doing well. this is something analyst at it and we would see, outperform in terms and earnings -- in terms of earnings and stock performance as well. i want to mention some of the big decline relates to earnings as well. garment coming out with preliminary third-quarter earnings sharply below estimates. itcut its course practice -- cut its forecast for the year. we have been talking a lot about netflix coming in with the subscriber growth that missed estimates as well. during the estimates we always see these big moves in either direction, but overall a more positive tone today. betty: thank you very much, julie hyman at the breaking news desk. i want to get to phil mattingly, who is standing by in washington at the white house, in fact. the president will be speaking any moment about the pullout of

, or u.s.an troops troops in afghanistan, and extending that. give us an idea of what we will hear from the president. phil: the president will be coming out any minute and he will be saying that he will be reversing course. he has said that by the end of his time in office they will plea no more troops in afghanistan and that will no longer be the case. least 5500 troops will remain in afghanistan after the president leaves office. betty: the president is just about to speak. let's listen in. morning, obama: good last december of more than 13 years after our nation was america'sy al qaeda, responsible mission in afghanistan came to an end. that was achieved by the courage andskill of our military

civilian personnel. they served there with extra dairy skill and valor, and it is worth remembering especially the more than 2200 american patriots who made the ultimate sacrifice in afghanistan. i visited our troops in afghanistan last year to thank them on behalf of a grateful nation. i told them they could take great pride on the progress they have helped to achieve. they struck devastating blows against al qaeda leadership in regions, helped to track down osama bin laden, and diminished attacks and help save american lives. they help to the afghan communities send their daughters to school and improve their lives. our troops trained afghan forces so they could take the lead for their own security, and protect afghans as they voted in the historic elections leading to the first democratic transfer of peacefully in their

country's history. longeramerican forces no control afghan villages or valleys. our troops are not engaged in major ground combat against the taliban. those missions now belong to afghans, who are fully responsible for securing their country. but as i said before, while america's combat mission in afghanistan may be over, our commitment to afghanistan and its people endures. i will notr-in-chief allow afghanistan to be used as safe haven for terrorist to attack our nation again. in forces, therefore, engage two narrow, the critical missions, training afghan forces, and supporting counterterrorism operations against the remnants of al qaeda. of course, compared to the 100,000 troops we once had in afghanistan, today fewer than 10,000 remain in support of

these very focused missions. i meet regularly with my national security team, including commanders in afghanistan to continually assess, honestly, the situation on the ground to determine where our strategy is working and where we may need greater flex ability. i have insisted consistently that our strategy focus on the development of a sustainable afghan capacity and self-sufficiency. and when we have needed additional forces to advance that goal or when we have needed to make adjustments in terms of our timetables, then we have made those adjustments. today, i want to update the american people on our efforts. since taking the lead for security earlier this year, afghan forces have continued to step up. this has been the first fighting season where afghans have largely been on their own and they are fighting for their country bravely and tenaciously. afghan forces continue to hold

most urban areas. and when the taliban has made kunduz, afghan forces backed by coalition support have been able to push them back. it has come at a heavy price. policeghan troops and have lost their lives, as have many afghan civilians. at the same time, afghan forces are still not as strong as they need to be. they are developing critical capabilities -- intelligence, logistics, aviation, command and control. in the meanwhile, the taliban has made gains, particularly in rural areas, and can still launch attacks in cities like kabul. much of this was understood that as we transitioned the taliban would try to exploit some of our movements out of particular areas, and that it would take

time for afghan security forces to strengthen. pressure from pakistan has resulted in more al qaeda coming into afghanistan, and we have isil presence. the bottom line is, the security situation is still very fragile, and in some instances there is risk of deterioration. fortunately in president donnie in theef executive -- president and chief executive for the strong support united states. we agreed to continue our counterterrorism operation earlier this year, and the president there has continue to ask for forces. meetings with our afghan security team and the president and chief executive, i

am therefore announcing the following steps, which i'm convinced offer the best possible before lasting progress in afghanistan. first, i have decided to maintain our current posture of 9800 troops in afghanistan through most of next year, 2016. their mission will not change. our troops will continue to pursue the two tasks i have outlined earlier, training afghan forces and going after al qaeda. currenttaining our posture through most of next year, rather than a more rapid drawdown will allow us to sustain our efforts to train and assist afghan forces as they grow stronger. not only during this fighting season, but into the next one. thatd, i have decided instead of going down to a normal embassy presence in kabul by the end of 2016, we will

maintain 5500 troops at a small including ates, bagram, jalalabad in the east, and kandahar to the south. again, our mission will not train -- not change. we will focus on training afghanistan troops and counterterrorism operations. at this presence will give our troops the resources required to achieve their mission. this is a key network of counterterrorism partnerships we need from asia to south africa to deal with threats more broadly and protect our homeland. third, we will work with our partners and allies with the steps i'm announcing today after 2016. in afghanistan we are part of a 32 nation coalition and our nato allies and partners can help continue to play an

indispensable role in securing and strengthening afghan security forces, including respect for human rights. we will continue to support president ghani and the national unity government as they pursue critical reforms. new provincial governors have been appointed and president ghani is working to combat corruption, strengthen institutions, and uphold the rule of law. as i told president ghani and chief executive of della a --bdullah yesterday, they will continue to have the strong support of the united states for the afghan people. and we will not separate governance from the issues of security. the more effective these reforms happen, the better off the security situation will be. discussed american

support of an afghan led reconciliation process and right now, it should be clear to the taliban and all who oppose afghanistan's progress the only way to achieve the full drawdown of u.s. and foreign troops from afghanistan is through a lasting clinical settlement with the afghan government. and likewise, centuries for the taliban and other terrorists -- sanctuaries for the taliban and other terrorists must end. i will host a conference next week and i will urge all in the reason -- in the region to do their part in support of the piece that afghans deserve. in closing, i want to speak directly to those whose lives are most directly affected by the decisions i'm announcing today. to the afghan people, who have , americano much commitment to you and to a secure, stable, and unified

afghanistan, that remains firm. our two nations have forged a strategic partnership for the long-term, and as you defend and build your country, today is a reminder that the united states keeps our commitments. and to our men and women in uniform, i know this means that some of you will rotate back into afghanistan. with the end of our combat mission, this is not like 2010 when nearly 500 americans were killed and your -- and many more were injured. remainsl, afghanistan dangerous. 25 brave americans have given their lives there this year. i do not send you into harm's way lightly. it is the most solemn decision i make. and thehe wages of war wounded warriors i have visited in the hospital, and the grief of goldstar families. but as your commander-in-chief,

i believe this mission is vital to our national security interests in preventing terrorist attacks against our citizens and our nation. id to the american people, know that many of you have grown weary of this conflict. as you are well aware, i do not support the idea of endless war. and i have repeatedly argued against marching into open-ended military conflicts that do not serve our core security interests. what is at stake in afghanistan and the opportunity for a stable and committed ally that can partner with us in preventing the emergency of future threats, and the fact that we have an international coalition -- the emergence of future threats, and the fact that we have an international coalition, i am committed to making this extra effort. in afghanistan we have a partner who wants to help, and the

majority of the afghan people share our goals. we have a bilateral security agreement to guide our cooperation. and everything will day, afghan forces are out there fighting and dying protect their country. they are not looking for us to do it for them. i'm speaking of the afghan army cadet who grew up seeing bombings and attacks on innocent civilians and said, because of this i'm choosing to join the army to try to save innocent people's lives, or the police officer training to defuse explosives. i know it is dangerous work, he said, but i've always had a dream of wearing the uniform of afghanistan and serving my people and defending my country. or the afghan commander, a hardened veteran of many missions, who said, if i start telling you the stories of my life, i might start crying. he served, he says, because the faster we bring peace, the

faster we can bring education, and the stronger our unity will grow. only if these things happen will afghanistan be able to stand up for itself. my fellow americans, after so many years of war, afghanistan will not be a perfect place. it is a poor country that will have to work hard on installment -- on its developing. there will continue to be contested areas. but afghans like these are standing up for their country. if they were to fail, it would endanger the security of us all. and we have made enormous investment in a stable afghanistan. afghans are making difficult, but genuine progress. this modest but meaningful extension of our presence, while sticking to our current narrow missions, can make a real difference.

it is the right thing to do. and allbless our troops who keep us safe, and may god continue to bless the united states of america. >> [indiscernible] president obama: this decision is not disappointing. continually, my goal has been to make sure that we give every opportunity for afghanistan to succeed while we are still making sure we are meeting our core missions. and as i have continually said, thepproach is to assess situation on the ground, figure out what is working, figure out what is not working, and make adjustments when necessary. this is not the first time adjustments have been made and it probably won't be the last. what i am encouraged by is the fact that we have a government that is serious about trying to deliver security and the

prospects of a better life for the afghan people. ofhave a clear majority afghans who want to partner with us and the international community to achieve those goals. we have a bilateral security arrangement that ensures that our troops can operate in ways that protect them, while still achieving their mission. and we have always known that we had to maintain a counterterrorism operation in that region in order to tamp of activeeemergence al qaeda networks or other networks that might do us harm. this is consistent with the overall vision that we have had. and frankly, we anticipated as we were drawing down troops that there would be times that we might need to slow things down or fill gaps in afghan capacity. and this is a reflection of

that. it is a dangerous area, so part of what we are constantly trying thatlance is making sure afghans are out there and doing what they need to do, but that we are giving them a chance to succeed. and that we are making sure that our force posture in the area conducting the narrow missions that we need to conduct, that we can do so relatively safely. there are still risks involved, protection, the ability of our embassy to operate effectively, those things factor in. we have constantly got to review these approaches. the important thing i want to emphasize, though, is that the nature of the mission has not changed, and the station of our combat role has not changed. the 25 military and civilians who were killed last year, that always weighs on my mind and 25

deaths are 25 to many, iesticularly for the famil of the fallen. but understand what is when wagingnvolved the war in afghanistan is a different scenario. here we have clarity about what our mission is and we have a partner that wants to work with us. we will continue to make adjustments to ensure that we give the best possibilities for success, and i suspect we will continue to evaluate this going forward, as will the next president. and as conditions improve, we will be in a position to make further adjustments. i'm absolutely confident that this is the right thing to do, and my point has always been how we achieve our goals while minimizing the exposure and

stress on our men and women in uniform. and encouraging the afghans that this is their country and they have to defend it, but we will be a city partner for them. ok, thank you, everybody. that was the president speaking and announcing he will be keeping troops longer than expected. it is not the first time, by the way, that the president has delayed troop withdrawal in afghanistan. i want to bring in phil mattingly, standing by at the white house and listening in on this. how do you think this will be received by the american public? the president referred, again, to the fact that there is fatigue among americans to the presence of our military in afghanistan. what went into this decision? this months went into decision and it was not just from the president, but also

from president ghani. not only are things still fragile over in afghanistan, but there are areas where things have started to fall apart, or at least given signs that falling apart is an option. you heard the president that. this is an example of flexibility on the administration's part, not a failure to withdraw or do what he said he was going to do when he started his second term. is, as points, and that of now, the president will maintain 9800 troops in the country that were supposed to start withdraw by the end of the year. and then into next year he will maintain 5500. it is to ask -- to advise afghan forces and also counterterrorism operations. the three airbases are huge components of the american counterterrorism operations there. that is the primary goal of what they are doing here.

all you have to do is look to notuz where the taliban only over to the city, but maintained it for a few days before the afghans are able to take it back. there is indication that the afghans are not ready to take this on all on their own. betty: what presence is there of the islamic state? phil: there was some indication of their presence there, but i think there was mainly concerned about safe even in general. state were to maintain a presence anywhere in the world, including afghanistan, there would be a lot of threat. does notic state actually have a clean path forward for their presence there , but i think demonstration is weary on the whole about what afghanistan could become if there is no security there. that played a huge role in why this decision was made, even after the president himself last

year said that it was time to turn the page on afghanistan and bring you really help. today he acknowledged that it was not possible. betty: it isn't possible. this goes well into the term of the next president, phil. tell me of this lab any impact at all on the current campaigning so far. phil: if you look at the democratic debate just two days ago, afghanistan was a passing mention, maybe two or three times. no questions were asked about it and no candidates really spoke about it. there was more focused on national security. this will start to crop up more and more. any candidate running for election in 2016 will have to have a plan to deal with afghanistan. they will be troops -- there will be troops there and a decent troop size. one of the interesting elements is that this comes after what many republicans feel is a

failure on the administration's part to maintain a force presence inside iraq. topic waseen a key republican candidates. you will see some criticism as to what the president has done in afghanistan. but your point, there will need to be plans laid out for any president in 2016. betty: thank you, phil mattingly, at the white house, following his remarks by the president delaying the removal of troops in afghanistan going well into 2017, 5500 of our u.s. troops. turning back to the bloomberg markets, this time we are talking sports. we will be back. ♪

betty: live from bloomberg's world headquarters here in midtown manhattan, you are watching the bloomberg market day. i betty liu. let's head to the markets desk where julie hyman as a check on

some of the movers right now. tesla motors. wase: tesla said it yesterday moving out its autopilot feature to some of its as class customers. this allows you to have an automated lane change action. some analysts are saying tesla is a little bit behind on some of this technology, that some of the other automakers already have it. but who is in charge of that feature? eye provided. 1.4% of itst revenue from tesla, it's because customer. -- its biggest customer. it is a german auto-parts maker. thesee it in the middle and auto suppliers are on the left. in terms of stocks we are watching, facebook is one of them. it was upgraded on a successful transition to mobile, that is at least what the analysts at argus

are saying. it is up about 2%. looking at casinos, we have seen a shift over the longer term in a more positive view for many of the casinos, although wynne is more positive on the session -- is not positive on the session. a lot of these companies will be coming out with earnings and macau reports after the close of trading. soon, and mgm on the 29th. we have seen revenue in macau fall softly -- fall sharply. betty: indeed we have. vonnie quinn has more from the news desk. obama isresident the country of

afghanistan is still fragile and needs more help, so they will keep more troops there and had planned. once theps will stay president leaves office in 2017. still, the president says the mission will not change. president obama: american forces in valley.trol those missions now belong to afghans, who are fully responsible for securing their country. vonnie: president obama said the afghan military has made gains, but it is not as strong as it needs to be. more than 7 million americans will not be getting an increase in their benefit checks next year. inflation is so low, there will not be a cost-of-living adjustment for those who get social security, disability, or federal retiree benefits. this is the third time this has happened since 2010. former speaker dennis hastert is involved in a harsh many case. his lawyer said there will be an agreement by monday. he is accused of buying a

person's silence over misconduct. u.s. officials have said it was a sexual nature. and lottery winners are the latest victims of the government's budget stalemate. anyone who won the lottery will get an iou instead. lottery payments will resume once the state budget has passed. the news rightat now. you can always find the latest at bloomberg.com. delayedhat is gratification right there, and iou instead? not fair. speaking about the lottery, it has been a rough couple of weeks for fantasy sports giants. according to the wall street journal, the fbi and the justice department are investigating whether any websites violate any u.s. laws. draft kings and fanned will have lfanduek ed by -- and

have been rocked by allegations. that it has not stopped traffic on their sites. are we seeing fantasy fraud? here to way into the murky waters, our guest who has been all over this for us. there was a lot about this industry. josh, first to you. are we talking about here with the fbi and the doj? what are they doing? -- thet is in investigation is in its early stages, whether or not there were any laws broken, specifically a 2006 law that is this.sis for they say there was an exception for fantasy sports in the law that out life gambling online. -- outlaws gambling online. betty: this was the outlawing gambling legislation passed in

congress, right? josh: yes. betty: and it made a car about for sports betting. osh: four fantasy -- for fantasy betting. it said it was not the same as sports betting. if it does not meet that definition, this will be a big deal for them. to 2006f this goes back and it says very clearly that it is not illegal to bet in fantasy sports, then what is going on here? >> that is a great question. technically the 2006 law did not say it was illegal. it exempted fantasy sports from internet gambling, and it allowed internet states to authorize. 45 states have authorized it and five have prohibited it. we have all investigations going on at the federal and state levels through the justice department and the attorney general's office in new york and

massachusetts. those allegations regarding fraud include allegations, for example that an executive at include an executive telling people how to shift money around to avoid the criminal prohibitions on betting in states where it is illegal. this is a huge storm cloud headed toward fantasy sports. now you have the justice department and the fbi lifting up the hood and finding a lot of violations related to fraud. betty: this is something we were talking about earlier. what exactly is illegal? i understand the idea that you are taking in insider information, which is allegedly what one of the executives it did, he took inside information and bet on another site and earn something like $350. it is kind of like insider trading. but if you are just going on there to bet, what is illegal

about that? what is illegal about that is that potential fraud flows into potential violations of federal statutes that i believe will be the subject of a grand jury proceeding. you will be looking at a grand jury review potential of wire fraud, mail fraud, and criminal conspiracy. and the reason why that could occur is that you have allegations that people are fraudulently using information the background and basically using inside information and committing fraud and taking other people's money. betty: is this just about draftkings? because there are other companies that allow you to bet on fantasy sports. what we have seen is this industry has not been regulated at all. there have really been no prohibitions and really no kosher national culture -- no

culture of playing on other sites. people have been going on to other side and playing in that is an industrywide problem. both copies has said their employees cannot do that anymore. as has yahoo!. what is the difference between that and, let's say, betting on fantasy teams at espn.com? is there a difference? with these, you can put down a dollar at 4:00 p.m. and turn it into $50 by 11:00 p.m. it is less than a season-long thing, so there is a big difference. betty: seth, are you hearing anything about lawmakers taking this issue up? could we see a revamp of online sports betting in congress? absolutely, there is conversation in washington, d the about that very issue -- washington, d.c. about that very

issue. and there are conversations related to commissioner goodell in the nfl. this is a conversation that is only beginning to explode. why are players like tony romo and then bryant prohibited, and from fantasywn out sports betting on the one hand, while the owner of the patriots or dallas cowboys are able to invest in industry that directly affect their players and maybe under indictment? you will see a lot of conversations going on at capitol hill and the justice department. betty: thank you both very much for joining us. much more ahead on the bloomberg today. where payment companies founded by the new twitter ceo jack dorsey, they are filing -- filing for an ipo. and walmart warning its profits will fall. we saw shares under pressure

yesterday. what will be the next move? and netflix earnings falling short. our chip cards really to blame? -- are chip cards lead to blame? cory johnson will have more. ♪

betty: welcome back to the bloomberg market day. i'm betty liu. let's head to europe where mark barton has the latest from london. how are we closing? mark: the european stocks rose for the fourth day in a row. industry rose on expectations for the stoxx 600 at the end of 2015 not writing.

-- not rising. they will see a 10% gain since blame the chinese economy and the emissions scandal. one executive said the ecb is clearly missing is inflation target. we spoke to him and he talked about an equilibrium in prices. he is clearly worried about economic outlook. tomorrow we will get data from the cpi and expect a drop of .1%. how about a look at the move in equities on this thursday session? check out this one. hellmann's mayonnaise, ice cream, it raised its forecast after third-quarter sales beat estimates, putting it down to emerging markets and ice cream. burberry is a percent lower, the

biggest drop in five years. why? it indicated profits will probably drop for the second straight quarter. not a good day for the luxury lovers out there. betty: thank you, mark barton out there in european markets. for u.s. market, let's go to abigail. abigail: still in the green of the nasdaq. one of the bigger winners is facebook. those shares are up about 1.9%, personally on an upgrade from from buy torgus hold. the company has made a transition from desktop to mobile with its smartphone at. most interestingly to me in the note, he says the valuation metrics of facebook are in line with its peers, but do not its status aslect

industry leader. clearly, he thinks there is an opportunity there. also, apple is up .5% to my partly on the barclays -- up barclaystly on the assessment. renewed pricing power and low cloud displacement risk with apple. back over to you. betty: thank you, abigail doolittle on the nasdaq market site. square filing its ipo, revealing what is going on behind the scenes at this company. it has seen revenue jumped more than 50% in the first half of this year. reed stephenson joins us from san francisco. what stood out to you? eed: square is not doing so

bad. revenue is up 50% from last year and they are a fairly healthy business. there was some concern going into it that the deal with starbucks would have been a drag, but it looks like there would have been a resolution to that as well. betty: ok, not us that as some have maybe feared. but i'm told some 90% to 95% of revenue comes from payments processing. is that a risk because they are so concentrated in one business? reed: there are a couple of ways to look at it. yes, it is a risk, but it is a good business. square is well aware and branching out. they will start offering credits to small and inside businesses so they can expand and that will keep them loyal customers. they are also offering software solution businesses can manage payroll, inventory, and other things like that. it is these add-ons that will help square diversify and keep

revenue going. betty: and what about the other risks, right? jack dorsey is running both companies. sure investors are asking how he will keep his eye on the ball at both square and twitter. reed: on the most basic level, both companies, twitter and square, are both in very sensitive time frames right now. to reorientrying itself with a new ceo and new products. at the same time, square with an ipo, it's a fairly risky timeframe. there is another company that went public yesterday called first data. they priced under their initial indicated share price. there are definitely risks. jack dorsey is the ceo of both .nd people seem to like that to your point, first data

is being hit in some cases by square, but what about all these other online competitors? reed: everyone wants to get into this space. paypal is the one to watch. they are now newly independent, away from ebay, and i expect to see them get more aggressive and come out with a lot more innovative products to try to chip away at the massive market for mobile payments. betty: thank you so much. squares have you on ipo, reed stevenson, in san francisco on lubricants. it is time -- on bloomberg news. it is time to look at some of the business is. wouldblankfein's said he -- lloyd blank find assuring that he will work with cancer. still bee was bothering his executives while undergoing chemotherapy.

takeover ofillion sab miller. budweiser plans to sell $55 billion in bonds, issued in multiple currencies. the takeover is the biggest consumer deal ever. you don't have to member the string of letters and numbers for jirga who e-mail account. -- for your yahoo! e-mail account. yahoo! will let users opt out of passwords and instead use smart phones. you can always get more bloomberg news at bloomberg.com. , walmart and their plans to afterround their business the worst share decline in 27 years. ♪

betty: good morning and welcome back to the bloomberg market day. it is time now for today's options inside, and julie hyman is back with us. julie: thanks, betty. let's take a look at where stocks stand right now. we have seen a breaking of the today declines in the major averages. right now, all three major averages are higher, however coming off of the highs of the session right now. dan deming jointly, manager at a --kkm financial in chicago. somew you have seen various technical levels for the benchmarks, and it's are holding up pretty well here, above the levels that you are looking at. dan: absolutely, and right now, you have to look at the levels.

a couple of factors are in play when you look at what took place in asia overnight, and then the announcement of the liquidity provisions by the ecb looking like they might be ramped up again. now, the testght at 1995 and being able to hold their, and you see the victim --vix under a little pressure. seems people are not as optimistic, oregon, hedging for decline -- or again, hedging for decline. dan: absolutely, yes. we are seeingspy a decline and the big move in the s&p 500. november 30 calls went up about

65,000 so far purchased today. again, negatively correlated and looking for a potential pullback in the market. julie: i want to move on to your trade, though, because we are in the thick of earnings season. you are looking at coca-cola, which reports next wednesday. coke is one of these companies that does not have an enormous amount of volatility around earnings. what kind of earnings are you looking at? looking at maybe a little bit longer term and looking out to january with the trade. i think that coke has bounced back significantly on the heels of this market. i think it got a little ahead of itself and will pullback in the next couple of months. there has been some insider selling their in alaska will of weeks and some earnings announcements in the next week. those fact -- in the last couple of weeks and some earnings announcements in the next week. for riskhy i'm looking

and hedging to the downside. i do see some resistance and i think it will probably pull back a little bit. julie: speaking of coke, and a group, which is consumer staples, where do we see movement next in the market? do you think it will be on the cyclical side that is not tables , -- staples, or on the consumer side with products like coke? think coke in the long term will do fine, but i feel like over the next couple of months it got ahead of itself. but overall, some of those discretionary and areas will continue to support this market and outperform. but like i said, they have gotten a little ahead of themselves and in the next couple of the headwinds they will run into will be an issue moving into november and december as well with the federal government. those factors and slowing economic conditions will lead to

weakness for the next two to three months. julie: dan deming, thank you so much. coming to us from chicago at the cboe. stay with us on bloomberg market day. i will have another market check for you. it's not just with going on in stocks, but we have to look at the bond market today as well. ♪

>> and it's noon in new york, 11 -- 12:00 in new york and :00 midnight and hong kong. >> welcome to the bloomberg "market day."

scarlet: that afternoon. i am scarlet fu. alix: earnings season underway. thanks coming in with a surprising beat, even if they are dealing with a surprising quarter. analysts cutting profit quarter to low. revampingarlet: profit. they come complete with hardwood floors and all the trimmings. once again fears of access supplier driving the drop. scarlet: first, check on the markets. for more on today's activity we will head to julie hyman with the latest. we are seeing gains right now. juli