from bloomberg world headquarters in new york, good afternoon, i'm alex steele. tgif. here is what we're watching this hour. janet yellen airing on the side of angels. plus, banks that have funded much of the oil boom have so far escaped the oil bust. find out how banks are still making money off of those deals. >> forget the polls, the all-important presidential fundraising numbers are in. jeb bush is now trailing ben carson and ted cruz. >> we begin with today's activities. we need to head over to the markets desk were julie hyman has the latest. expiration date, is that creating gyration in the market? julie: i guess it is. i would be third friday of the month already? that crept up on me.

expirations futures and options contract, there is some volatility, but it is in a narrow range which is what we have been seeing lately, at least until yesterday, a late day surge. overall, a little lift in the markets. it looks like a combination of earnings, companies coming back from the declines that we saw yesterday. take a look at the bloomberg terminal and the various sectors on the move. we are seeing gains, a decent amount of red is on your screen coming from energies andterials, industrials, leading the way is consumers and health care. considering the stocks i didn't do well yesterday are rebounding in hospital shares which fell sharply yesterday after we got numbers from hca holdings area they are coming back today. there doesn't seem to be a particular reason for the rebound of it not people are coming back in and buying them after the decline.

general electric is rising after in particular, earnings in aviation beat analyst estimates. those shares are higher. philip morris rising for a second day after earnings yesterday. i mentioned energy is on the downside today. it is worth mentioning oil prices right now. we saw a turnaround in oil after we got economic earlier -- economic data earlier. industrial production and capacity utilization. it looks like refiners reduced to their capacity utilization last month. it looks like that took a bite out of oil. when those numbers came out, it is rebounding to some extent. energy stocks remain lower. estimates of the lowest -- the making a comment about oil prices themselves saying they haven't bottomed yet. they thoughtd when the oil prices would bottom. finally, we have to mention twitter. break -- breaking news,

confirmation of a steve ballmer tweet that he is taking a 4% stake in the company. clearly you can see a surge in the shares of from the happening. it is unclear what this will mean for twitter. certainly, investors are happy about that news. it is already in the press to stop this year. on twitter news which cannot in the last half hour or so. >> i want to check in on bloomberg first word noise this afternoon -- word news this afternoon. iran'sst up, missile launch violated u.n.'s sanctions. it was a clear violation that the missile was capable of delivering a nuclear warhead. aired footage of an underground secret missile base where long-range missiles are being stored. the turkish government is set to a shot down and under -- unmanned drone which flew three

climbers inside its borders syria. there is no word on where it came from. russia says that all of its unmanned aircraft are functioning normally. turkey has complained about russian war planes entering their airspace. today, turkish officials say activity in air syria may lead to accidents. she said behind closed it -- doors to the house committee, those deadly attacks in benghazi in libya, she is set to testify next week. 10 major international energy companies are the clearing their support for action on climate change. producer including bp say their goal is to keep the increase in average global temperatures inside of two degrees celsius. absent from the agreement -- here is bp's bob dudley. , we think -- support

that is the route that will allow us as companies to make our investments. it is not written out in the report because we wanted to bring the group together. >> is thought to reach a summit in paris next month. there is not thought to be any u.s. companies among those companies. finally, california has a mud covered interstate opening to traffic surely. interstate five was closed after flash flood debris blocked the roadway, stranding hundreds of vehicles and forcing some motorists to take refuge on top of their cars. at first word news right now. you can find the latest news on bloomberg.com. >> thanks so much. investors are brushing off week economic data. we had numbers that did not inspire anyone. you can see that data added over $4 trillion to the global stocks

this month. >> and five, u.s. earnings helping to fuel the momentum. no fat hike this year. manley,us now is john chief equity strategist at wells fargo management. you are relatively a positive guy. last time you are here, you are saying things looked good, profit outlook seem to be edging higher. since then, we have seen earnings estimates come down by 4%. -- by 24%. are you still has positive? john: i don't have reason to be negative. when i think happened two weeks ago when the markets -- i think the weakness overseas is beginning to affect the u.s. and sale of the dollar has gone high enough. that is interesting and potentially positive for international markets. the fed will not tighten for a while. >> will we have noticed is that there has not been a lot of earnings guidance. are announcing

in september. what is the signal to you, john? they genuinely lack visibility? companies are timing their bad news announcements so there are less impacts? john: the idea of doing it in september would be less than accurate once they know they will make a number that will not come down -- it is also a slightly positive spin which is that we have the expectations down to a level where they will not be great, but they will not be worse than bad expectations. that thise the signed cause in earnings is anything more than a pause. a backseatill takes to the fed and musty earnings get really bad. i don't see a happening. >> what would really bad look like? 5% decline? john: know, 10%-15% decline. the market close blows a fuse.

when the fed tries to help the economy, they push money into the system and it flows through the markets. that is only offset if earnings are really bad. you could can overcome, 50%, something like that. >> where we are in terms of stresses in the credit market. you are seeing credit stresses white now. companies, it is more expensive to. what is it that makes you think is not a canary in a coal mine? john: did could be. i think the fed has the ability to manage these things, the chinese central bank and manage these things. the one thing that is essential for financial panic is that no one expects it. when we are worried about something like that, we and the powers that be can take steps to circumvent it. it is not good news, we will not pretend it is good news, but it is healthy caution at this point. i am watching it. the market look through these things many times.

sometimes, what happens today or tomorrow doesn't matter as much as what will happen a month from now. >> you say the fed should be to beo be continued supportive of the markets and economy. having said that, a lot of people think the federal reserve should raise interest rates. >> that is because it is time to raise interest rates. janet yellen is very dates dependent. she is the same way i am when i take a plane somewhere. i know what time it is, but i don't get off until we get to the date. she is using a very high standard of proof. she has to be for sure that the economy has ok with slightly higher rates. what the fed tries to do is follow the neutral rate. if the economy gets better, you can take higher interest rates. i do not think that janet yellen wants to anticipate. i think she wants to let it happen. >> she wants to be behind the curve. john: if she is going to make a stake -- a mistake, she is going to make a mistake that is easier undone. that is classic

greenspan. he do for 10 years. >> what about the natural rates? they are actually negative. with fed interest rate at 0%, that would imply that monetary policy is actually tight right now versus the underlying economy. what do you think about that? john: i do not think it is tight right now. we ran at risk seven years ago. one of the reasons we have quantitative easing is it is a form of synthetic negative interest. if we could have negative interest, i would love to get a -3% on my mortgage. it is not going to happen. natural rate is actually somewhat positive at this point. that is why the tapered last year. >> is china still in interest -- influence on sentiment? i'm looking for shots, the ecb meets next week, john: china is always there.

you can't make a souffle rise twice. i don't know if i can happen in the reverse of china. we had a scare. it is over leverage, it will fall apart someday. i have heard that for 20 years. i think it is a fruitless exercise to time financial panic. you can see excesses. you can see things that make up our, but it can take years before they do. >> when it comes to the dollar when you are dealing with china, a 10% depreciation of the u.n. over the course of time, what gives you confidence that we perhaps have seen a peak in the dollar and it will stop being a drag on earnings? to affectill start the economy. how high will he dollar go? the dollar rises because our economy is stronger than other economies. that issee signs beginning to drain our strength away to a certain degree, the force behind that rising dollar goes away. i am not going to time these things because i'm not a

currency strategist. i keep in mind over my career that the dollar goes up, the dollar goes down, it is a leveling mechanism. it is a clearing mechanism for the other markets. >> john is always so calm. john: i am wise is happy to be on with you. -- always happy. >> for a direct read on the u.s. markets and the economy and an exclusive interview with jamie dimon, jpmorgan's ceo. nine clock a.m. on monday. >> coming up in the next 20 months of boomer market day, while oil prices have funded -- plummeted, the banks that funded the boom are escaping the drops. >> presidential candidates releasing their fundraising totals for the third quarter. upstart republican candidates are once again outdoing the establishment.

♪ >> welcome back to "bloomberg steel.day," i'm alix you're looking at the rubicam in the middle of new york. brisk morning. >> the fact that it is friday may to feel all the more lovely. time for bloomberg business flash, the biggest stories in the news right now. we're learning new details that the compensation of twitter's executive chairman will get nearly $12 million in restricted stock. an annual salary of $15,000. appointed twitter's board

this week and was previously with google. scarlet: a4 letter words cropping up when it comes to talking about the u.s. labor market. it was little changed in august at 521 million. peopleest numbers of quitting jobs have leveled up. rose consumer confidence this month. the sentiment index hosted its first gain in four months falling -- falling energy prices are helping incomes go farther. theirans are predicting incomes will increase by the most in a decade. >> you can always get more bloomberg business news at bloomberg.com. let's get over door market desk were julie hyman has a look at the movers. julie: airlines not doing well today. is after an investor presentation saying fares will remain low. that sounds like an odd commentary coming from spirit, a low-cost carrier.

the company has been engaged in a price war with american airlines who says it's fares will remain where they are. no fair inflation there. we have had a number of analysts cut their recommendations on the stock in the wake of this. they are also saying their capacity growth will be a 20% instead of 25% where was pretty sick. sharply, 14%,down and it is having a ripple effect among the airlines. american, in particular, analysts think spirit and american rna terror war. -- fare war. that led me to look up what fares are looking like on the bloomberg terminal. this is u.s. to mistake coach fares, a two-year charge. you can see there has been a trending lower of these numbers. good news for flyers, bad news for the carriers. i wanted to mention one negative performance today, one of the worst in the s&p 500. genworth financial losing after

its chief officer is resigning to take a role at another company. all of this appears to be a personal decision. investors are still thrown off by this news. kelly growth, the company's controller and principal accounting officer will take over for klein. klein had in working to fix controls of the company where it had said in march that it had a weakness in its financial reporting for its long-term care unit. jen werth is off -- out with its full results october 30. >> the dramatic drop in oil prices this year has damaged many probably is. there is one group of investors that has not felt the pain. >> surprising i, the banks who have funded the oil boom have so far escaped this. is it a matter of time before these things get hit?

>> that is a good question. what you are seeing now is the banks being able to protect themselves a number of ways. one is they have the first lien on a lot of the oil and gas assets. there is a chance they will get their money back. there are also a lot of investors interested in buying the equity of these companies. debt billion of equity and this year. they raised about half of that money to repay loans and restructure their debt. that also helps the banks. next to be clear, i find this fascinating, thanks a sickly health oil companies issue debt and equities to then, in essence, pay themselves back because they are the issuers of those laws to begin with. asjylyn: energy company 17 to repay their bank loans and keep that under control because they know that it is often times based on the size of the oil and gas assets. those credit lines can get caught and you don't want to end up overdrawn. companies are keen to repay their debt. >> how is this different from past oil busts?

asjylyn: what is different here is that investors are bearing the brunt of the losses right now. record amounts of equity and debt raised by a lot of shell producers, a lot of them are small companies with high-yield credit ratings. you are seeing a lot of investors getting hurt. exchanges were they are taking $.45 on the dollar. risk in is a lot of energy loans, but it is distributed out to investors. he said this in the last quarter. does that mean it is the individual guys taking the hit? who bought into petroleum for a bunch of stock and now they are suffering double-digit decline? asjylyn: the stock issued in march is down 32%. keep in mind these are investment advisors who are professionals buying a lot of this stuff. there are conflicts of interest when you have banks issuing on

behalf of its own barware, those are prominently disclosed. this is something investors are aware of. these are professional investors to bet on an oil rebound and they were wrong. says the capital market is what will rebalance the oil supply in the u.s.. timidly, why would then equity guy want to buy winning petroleum again when they did so badly the first time? debt is trading less than what it did initially also. what happens when it dries up? what happens to those loans? harsher terms? asjylyn: we are seeing credit lines cut during the second part of the redetermination season where they reassess. thanng more nerdy redetermination season. you see credit lines get cut already. banks are watching their bottom line, too. >> thank you so much for covering this. her story is available on bloomberg.com.

>> we will help you issue stocks, sure. >> that is not necessarily limited to the energy industry. next time you back, please. >> still ahead on "bloomberg drama among high the pay gaps of mail and people stars. >> jennifer lawrence is written and talked about it. we are going to talk about it.

♪ >> welcome back to "bloomberg day," -- >> hollywood is dealing with a pay equity drama starring one of the biggest names in the industry. >> and explicit combination, , tonya aboutence the extent to which she was underpaid in american hostile -- hostile one hack sony e-mails reveal the evils of all of the

actors. she is not pinning it on the studio -- she -- sony e-mails the actors. pay of >> i love the fact that she won an oscar for that role. she is looking back weeks later, years later and realizing she left money on the table. >> i loved her point that she wanted to be adorable, likable, she didn't want to push too hard because you'd want to seem aggressive and bossy. >> she was keeping her mind on how she would get her next three jobs. >> that definitely plays women in the work place when you can push and ask for things. you can have the risk of bringing that stereotype on. earlier today, betty liu spoke with the president of game changer films. >> financing is largely controlled by men. men are more comfortable financing those who walk and talk like them. that is the number one reason why there are so few women directors.

less access to financing. >> she also mentions that women are undervalued as movie audience members as well. undervalued not just on screen and off screen, we're undervalued as audiences. more than 50% of ticket sales are a treated to women. marketlike there are place opportunities that are untapped. >> every couple of months people think wow, there are chick flicks, they make a lot of money. >> is the voting demographic. 50% of the population is women, but -- >> still ahead on market day, we will be our back.

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from bloomberg world headquarters in new york, welcome back to the "bloomberg market day." i am alix steel. scarlet: i'm scarlet fu. let's start with headlines. >> politics and presidential

candidates. donald trump says janet yellen is keeping interest rates low as a political favor to president obama. the republican front-runner sat down with stephanie ruhle. >> janet yellen, for political reasons, is keeping the interest rate so low the next guy who takes over as president could have a real problem. keeping interest rates at this level is a political thing. when they get raised, perhaps with the next president, you could see bad things happen. >> trump says we could see a recession or worse. we are still waiting to learn if vice president joe biden will make a white house run. biden has started asking democrats about his prospects in states that hold early primaries or caucuses for the presidential nomination. advisorsden's closest is telling former staffers their services may be needed. in medical news, the world

health organization says two new cases of ebola have been reported in guinea, ending two weeks with no new reports of infections across west africa. the teat of new patients have not been identified by authorities. officials say they may be unable to monitor everyone exposed to the disease. morebola virus has killed than 11,000 people in west africa. in the u.s., the justice department is trying something new to crack down on cybercrime stationing a legal advisor in malaysia. that person is helping make sure southeast asian countries have the laws and tools to fight hackers. it is meant to beef up international partnerships against the crime that is about geographic -- above geographic borders. one of the nation's longtime airline brands as flying into the history books. the u.s. airways flight out of philadelphia today is the last to bear that name. when it returns tomorrow, the jet will display the american airlines banner. the carriers merged two years ago.

frequent fliers will not be surprised to learn the flight left 31 minutes late. our "firstook at world" news. you can also find the latest news at bloomberg.com. scarlet: thank you. let's turn to politics. checks are pouring into president of candidates and the federal election commission keeps track of all of it. alix: just released, fundraising totals for the third quarter. here to tell us who is winning the race is phil mattingly from washington. who are some of the winners, how much money was raised? break it down. >> there are three key winners, clear winners, from the third-quarter fundraising reports. that is hillary clinton bringing and $29 million. bernie sanders bringing in $26 million. and ben carson, the republican former pediatric neurosurgeon. the bernie sanders and ben carson both bringing in over $20

million last quarter is stunning. these are guys considered grassroots people. these are not the folks maxing out on big, hard dollar donations. they are not jeb bush. in $13 million on his own and has more than $139 in the bank. he does not have the scope of the pool of donors ben carson and bernie sanders have. what you're looking at in the third-quarter numbers is the outsiders, just like a national polling, are doing quite well when it comes to money. scarlet: what about small donations? president obama the first go-round and second go-round things open because of the small -- or big amounts of small donations he collected from previously untapped donors. >> that is right. that is what bernie sanders is doing is impressive and mean something big in the long-term. hillary clinton has a lot of small donors. she feeds on donors that max out.

they give the maximum of money can give to a donate -- campaign. you are not going to be in to give more for the primary election. when you look at bernie sanders who only raised $3 million less than hillary clinton less quarter, most of his donors are people that have not maxed out. they given $50 or $70. the pool of donors to bernie sanders, he and his team can go back to those donors over and over again and keep raising money. there is a concern hillary clinton's big donors might run out of the ability to give. bernie sanders has this open pool. you talk about grassroots money, is ins why bernie sanders it for the long haul. alix: when you look at the breakdown in terms of who raced what, if one drops out -- who raised what, if one drops out, will that money go to another candidate? are the quarters not as

cross-candidate loving? >> i picked up what you were putting down. i think what is interesting is you have to wait and see. there are a lot of people bernie sanders taps into that are not considered mainstream democrats. they are far left, consider democratic socialists, like bernie sanders himself, that would not find you hillary clinton --not find hillary clinton's career with support. you look at who else is in the race. if it is hillary clinton versus a republican, hillary clinton is going to be a candidate and that is who he will donate to. to your point, one of the interesting things is where does the republican money go? the reason democrats are dominating raising money now is because there are so many options for republican donors. scott walker, rick perry and others drop out, where does that money migrate to? there's a huge fight behind-the-scenes to try and get that money. who wins that fight may end up winning the race.

scarlet: someone has to drop out first. we have not seen that happen yet. that to the democratic side, what do these figures mean for joe biden who has not declared his intention to run? we don't know if that is on the table. >> he has a large hill to climb if you decides to get in. there is an assumption inside joe biden's orbit that he will have the ability to raise $7 million in a quick click. that will get him to the iowa caucuses and early next year. what hillary clinton and bernie sanders are able to do now with the money raised and on hand, hillary clinton with more than $39 on hand, bernie sanders with more than $20 million on hand, that is money they can invest long-term to get organization in states passed the first primary states into the seventh and eighth. that is where you set organizations. you invest in data and digital.

those are the areas joe biden is falling behind on no matter what he decides to do. if he gets into the race, he will have to raise money quickly. he has to set up the organization and infrastructure. those are two of the primary roadblocks to a joe biden run. alix: jeb bush, $133 million total money raised. you don't necessarily need polling numbers to raise money. you don't necessarily need money for the polling numbers. what is the relationship? that seems to be an outlier. >> if you look at that number, this is an important distinction. more than $100 million of that money comes from his super pac. it cannot legally coordinate with the campaign. they raise their own money in unlimited sums. jeb bush is raising a decent amount of money through his campaign, $13 million last quarter. has more than $10 million on hand. he has a functional campaign fund-raising apparatus. we have been talking about outside groups. jeb bush's super pac cannot

coordinate with the campaign, booked 17 nine dollars in ads in five important march primary states. jeb bush can focus solely on small dollar donations and having his infrastructure set up while he lets the $100 million behemoth super pac book advertising that will help him. there are concerns. the campaign cannot coordinate. they cannot tell what the ads will be. talk about an advantage with all the money stretched thin on the republican side. you have this super pac helping jeb bush on the outside with unlimited funds right now. that gives him a huge advantage even though his poll numbers are not were they want them to be. scarlet: interesting strategy. does anyone else have an apparatus like that? >> one of the interesting things is two of those people were rick perry and scott walker. just because you have a lot of money in your outside group does not mean you don't have to raise money through your campaign. it is hard dollar money. you have max amount to $2700. it takes a lot of skill.

while outside groups are helpful, you cannot forget to do the nuts and bolts campaign fund-raising. that is what jeb bush is trying to do. that is what his campaign hopes he can continue to do. alix: fascinating. i want a $100 million super pac. phil mattingly, thank you very much. scarlet: in the next 20 minutes -- alix: the struggling chipmaker is selling off assembly plants. is it going to change the business? scarlet: has quantitative easing been a success? how is it broken down along income lines? we will look at the effect of the fed's seven-your strategy. alix: could many traders be looking at deep cuts in bonuses or even loss of their jobs?

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scarlet: welcome back to the "bloomberg market day." i am scarlet fu. alix: i am alix steel. scarlet: it is time for a look at the biggest business stories in the news. bloomberg news has learned goldman sachs has fired 20 analysts for allegedly cheating on internal trading tests. goldman reported quarterly earnings that fell short of estimates for the first time in four years. alix: bloomberg news is reporting several close associates of russian president vladimir putin may have benefited from deutsche bank's trades. they want to know the biggest bank properly vetted transactions and have slowed the money out of russia.

scarlet: johnson & johnson has won the suit claiming it did not properly does tylenol. it was the first case to go to trial over the pain reliever and liver damage. more than 200 other lawsuits are pending. you can always get more business news at bloomberg.com. alix: let's get a snapshot of how markets are doing globally. first, asia were the shanghai composite closed up 53 points. the nikkei up almost 200 points. on monday, global investors will have their eyes on beijing when it releases the third-quarter gdp report. >> china is set to report its lowest quarterly expansion since 2009. gdp growth of 6.8% in the third quarter. beijing is routinely criticized for unreliable data. frank went the members may not fully reflect china's strength

-- franklin templeton says the numbers may not fully reflect china's strength. services and real estate are difficult elements to measure. what does it mean in a changing china? smart money at templeton says china's economy is bigger than official numbers suggest. real estate still among the most lucrative engines of the nation's economy. scarlet: thank you. now for a look at the european market close. gaining .4%. here is ryan chilcote from london. ryan: all green in europe. european equities up. they finished their second day of after asian equities were up as well. you know the reason why. bad economic news is often good news for equities. that is what we saw in europe. the ftse 100 was the best of the performers.

france's biggest retailer performing well in france, spain, and italy as well. on fire. sales growth growing as much as 7%. don't hear that often about the european periphery, but it has made spain and italy work. one stock that did not do as well is you go boss -- hugo boss. investors lost their shirt today. shares down almost 11%, worst day in four years. line? tourists -- why? tourists spend less at shops in the united states. hugo boss had big trouble in china. one final thing to show you today because i can and it is exciting. look at the turkish lira. don't be confused. the means that your lira -- lira has been weakening today. what i want to point out is this

big line, a dramatic 1% weakening in the turkish lira. why did that happen? because the turks announced they downed an aircraft in their airspace. turned out it was a drone. not as that is a manned aircraft. you saw the turkish lira come back a little bit. when we learned it might be a russian aircraft, we also learned the ruble fell as well. big geopolitical concerns around syria continuing, continuing to move the market, if only briefly. that is what we saw. turkey is a nato country. russia is flying sorties in syrian skies. they have walked heads over the last couple of days. russia says it was not their aircraft. turkey says it does not know who the drone belongs to, but investors took note of it today. alix: but field is moving in u.s. markets. for that, -- now let's see what is moving in u.s. markets. abigail is standing by. moves out oftreme

all the companies reporting to the downside. one of the big losers is wynn resorts. down on another disappointing quarter. the company disappointed relative to the topline revenues, explaining again weakness out of macau, talking about the big highroller segment has disappeared. steve wynn even blasted macau on the conference call last night. it is hard to blame him when we look at revenues and earnings relative to the last 12 months. revenues are down 27% and earnings down 64%. when we look at the start, it is down 70% from its 2014 peak. if we go to one of the winners, we have mattel. this toymaker missed estimates. what it did get right was a positive tone on the conference call. the c.e.o. said the turnaround is firmly in place, that some of

the lagging brands are starting to come back. negative fx effect is starting to improve. the shares are up. the stock is down nearly 24% year to date. when we look at the shortage, it is 20%. today's action to the upside might be short covering as much as anything else. have a great weekend. back to you. alix: thank you, abigail doolittle at the nasdaq. coming up, has qe worked over the last seven years? new research shows the question is a most impossible to answer. rescue efforts are underway after a scaffolding collapse in houston. you're looking at live pictures near minute maid park in houston. four people are reportedly trapped. we want to keep an eye on this. the houston astros play in mid-may park and are due to host game one of the alcs there on

monday. ♪

alix: welcome back to the "bloomberg market day." i am alix steel. scarlet: i am scarlet fu. well fed governor's debate went to raise rates, it is a good time to impact the real world impact of quantitative easing over the past seven years. alix: brendan greeley writes about new data that shows how the monetary policy has had vastly different effects on the rich and poor. we talk about the wealth inequality so much. he is here to discuss it with us now. there were two things you highlighted in the report. one was what happened with credit cards and the other happened with home values. >> let's start more broadly. there is the idea economists call heterogeneity. people arens is different.

every time we see this in a paper, they are saying people are different. what has changed in the practice is now computing power has caught up. for the last decade or so, people have laptops and can crunch the numbers. economists have been looking at aggregate data. they are looking at administrative data, the actual numbers of what the i.r.s. has. how this plays into qe is we have known for a while austerity has different effects on the rich and poor. we now have seven years of data we can look on the quantitative easing and lower interest rates in the short-term. we can see what the effect has been. we know the fed can affect interest rates. what effect does that have on actual people? he ran some date of it this -- some data that discovered that if you shore up the price of a the lowest order people in terms of income will spend $.25 of that dollar.

the richest will spend nothing. it is an amazing result. nothing. scarlet: rich people spend money --rich people save money and poor people spend money. >> this is the classic problem when you look at credit. when you look at credit conditions, there's another study that looked at credit cards. 8.5 million credit card accounts. they discovered when the cost of , if it goes down one percentage point, this is an amazing result. people whose reddit is lower than 600 -- people whose credit is lower than $600, spend $74 of new credit. those with scores greater than 740 get $2300 in new credit. all they do is shift money into the new credit card with the lower rate. there is no new spending. when we are talking about the

effect, the fed can lower rates, but that has to have an effect on the rest of the economy. pass through is vastly different. alix: we talked to deutsche bank yesterday. he did work on something similar. he was saying when interest rates are low, people have to save more to make up for the fact they are not earning a lot on what they are putting in banks. the fed raised rates, people would feel better and make more on their money and be more willing to spend. >> i think that is possible. the wealth effect is very different for the rich and poor. think back to the house value. the poor omar likely -- are more likely to spend. the rich are less likely to spend it. the i.m.f. has recognized this. about two years ago it said our models for austerity were wrong. we assumed when a company balances its budget -- when a country balances is budget,

citizens will say i know what my taxes are going to be three years from now. taxes are not going to rise, so i'm going to start spending money. that is true for people who have money and lines of credit and plan for the future. that is not true for everyone else. they got it wrong for austerity. now we are realizing the way we thought about qe is also not right. scarlet: qe covers seven years. the economy has gone through a lot of change in seven years. how much does it capture the evolution of how the economy has changed, the structural changes taking place? >> i don't know about structural changes. the fed has taken this on. they are looking at different kinds of people to see, and the models reflect that. they did work on this. they found qe contributed, helped bring down unemployment. that is not nothing. the effect was not felt fully until the first quarter of 2015. all the stuff we have been talking about, we have been

trying to figure out why the u.s. is doing better than anyone else. is a very slow effect effect found. in 2012, ben bernanke was saying we did it, it was successful, that is why our economy is different. scarlet: we are still learning about the transition mechanism. other countries are getting ready to move. >> it works for interest rates and asset prices. the pass through to the real economy, we don't really know. alix: amazing read. you can catch it in the current issue of "bloomberg businessweek." scarlet: happy birthday. alix: he is 21. coming up, president obama meets with the south korean president at the white house. the two will give a news conference. ♪

alix: 1:00 p.m. in new york, and 6:00 a.m. in hong kong. scarlet: welcome to the

bloomberg market day. scarlet: good friday afternoon. alix: here is what we're watching at this hour. donald trump taking aim at his rivals while pitching his own tax plan. >> money is going to come into corporate inversion. only a stupid person would bring in their money, because it is ridiculous. we're going to lower our taxes it is going to be a great thing. scarlet: more bloomberg interview with the presidential front-runner, coming up.

and president obama hosting a news conference later this hour with the president of south korea. it is a show of unity as tensions rise with north korea. let's head first to the markets desk where julie hyman has the latest. still holding onto gains, but barely. julie: you predict the volatility today because of options and futures expiration. we are seeing volatility in a pretty tight range. some bouncing around. wanted to take a step back and take a look at changing expectations for the fed. been an ongoing scene, not just today but throughout the week that bad news has turned into good news was again when it comes to the outlook of the fed. risk on is the time we have seen for the markets. chances have now home to 32% of a rate increase in december. this is being listed to the fed fund pictures market test

futures markets. , thisr way to look at it shows you the expectation for some of the future meetings and level they've changed over time. it has been a sharply downward trajectory. all of this being expressed in what we have seen for the dollar. for the week it is the third araight down week, down about quarter 1% on the changing said expectations. take a look at the 10-year as well which has been approaching little change. 0.2%. alix: if you look at overall volume commitments the government is trading the dow, but no one is in the nasdaq or s&p. volume is flat. versus the 10 day average. we're not seeing the volatility

for the participants. scarlet: you could see that the ball you comes from the expiration of the close. alix: we can see that change as the day goes on. onrlet: ui for the latest the markets as we tried to close out in a week. work check in on first news. and whatw with a wrong the united states is calling a clear violation of united nations sanctions the u.s. ambassador says u.n. has confirmed a medium-range ballistic missile last week wasn't hurriedly capable of delivering a nuclear weapon. the u.s. is preparing supports to the u.n. committee. will not clear how this affect the accord with the west. hillary clinton is fielding house panel b a

client closed doors. she will testify in public on thursday. the ebola virus is still not a thing of the past the world health organization says the two new cases have been reported in guinea. that ends a two-week run with no reported restrictions -- infections. it has killed 11,000 people in west africa. a group of major players in the global energy raise has reached an agreement on climate change. global oil gas producers say they can to keep the increase in global temperatures within two degrees celsius. absent was a single u.s. producer. and the voluntary organization. some may join him a cellmate. what you sow representatives 10% of the world energy supply.

20% of the oil and gas production here at the table. i think that companies will join us. we have a north american company , with a good representative group, deeply committed to working together on many fronts. expected toement is be formalized beginning next month. police in california say they have covered interstate to real traffic today. interstate five north los angeles was closed after flash flood debris locks the roadway. hundreds of vehicles were stranded and some motorist or even forced to take refuge on top of their cars. and that's a look at her first word news. can always find the latest on bloomberg.com. alix: july. what started out as a promising year for a sour ending. what role of the five -- four of the five traders are falling.

bank of america down drop.ity group a fiv 5% we want to bring in our bank reporter. one thing we need to keep in mind is the timeline. lesson of earnings reports before management decides what's to pay up to the fingers in terms of bonuses. >> people on wall street know this. they really have another month to influence that most, and then it is pretty much set. the fourth quarter is a slow quarter anyway. scarlet: you can get ugly very quickly. the language that gibbons hearing from ceo's is that it is not going to get any better. early in the quarter, do not much,olate this to o

but it needs to come down. alix: are traitors to the inventor inequities -- are our traders doing better inequities? >> the overall high is shrinking. about 32 billion down. which is terrible. scarlet: this is a difficult managing directors pay before the financial crisis. now are looking at $700,000. alix: that is a huge reduction. >> it is a real investment of money that some of these banks. it is an adjustment, but a lot of people will be thrilled to make $700,000 a year and a bonus. alix: where did they go?

was there any other place where they can do these same things as they did in 2000 and? one reason that banks can be more disciplined on a is because there are very few places to make that kind of compensation. they can try to go to another bank. they can try to go to the buy easier, but it is tougher. it is difficult. there are surveys of wall street happiness. may think they should have gone to medicine and academics. some returning to high-tech, in silicon valley. alix: you have internal down in fact. scarlet: those in silicon valley do love bonuses. do i for joining us. -- monday in money for an exclusive interview on

bloomberg go. scarlet: real estate that only great to live and but a great investment. why banks are pouring money into management. alix: helping syrian refugees through accommodation of politics and policy. scarlet: and speaking of politics, more from our interview with republican presidential front runner donald trump. he takes aim at his rivals tax plans. ♪

alix: we have some breaking news regarding united airlines. thee: this is according to

wall street journal. apparently the ceo has been hospitalized in chicago after suffering a heart attack. as the ceo of united airlines. aoomberg news has left message, but it has not been immediately returned. we're tried to get more information on this. the wall street journal review harding that the united your life ceo has been hospitalized following a heart attack. he became ceo just last month. we are seeing the shares fall on these headlines that have just come out. as you might expect there is some uncertainty here about what is not going to happen with the status of mr. munoz. we will give you an update as soon as we have one on his health and the company's plans in the meantime. we are watching these united shares also. they are down by about 2%.

i want to turn to some other stock news at this time. we have been watching industrial shares broadly today on earnings news. quantum services has been consistently the worst-performing stock in the s&p 500 today after coming out with preliminary earnings that trail forecast. this company provides services to the gas pipeline industry. on the electric front it is a competitive environment. it is also seeing delays of certain mainline pipeline projects. , a railroadstrials can be coming out with it earnings and revenue but missed estimates. its revenue missing the estimates. it appears by across the issue.

-- it appears that coal is the issue. a lot industrial weakness today, though stone should -- those shares down 7%. it has begun the process of aggressively adjust ticket crawl structure -- i just think it's call structure. ric is theectio outlier. shares of 3% after earnings beat estimates. it didn't seem weakness in its oil and gas business, and it also said on industrial orders declined, but it looks like the company's of getting rid of nonessential assets appears to be working for the moment. alix: thank you. scarlet: let's talk about etf's because when it comes to dts sell what you have to not what you want to. this dilemma is what mutual funds could be faced with if a

selloff in junk bonds spread. alix: hybrid mutual funds carrying big proposes of both that and equities could actually suffer if the credit market ceases. it could have stock like microsoft and verizon and hold onto high-yielding liquid debt. joining us now is our senior etf analyst. what did you think about the past from high-yield stocks to mutual fund? >> when i read this report i thought it was well done that i have seen this movie before. every six months there is a worry there will be a freeze in the gym on market and the whole world will blow up. this is the same thing. hybrid mutual funds, 60% of their assets are incorporated. is hybrid mutual funds. 800 million of that is the equity side of it. 800 million makes of only 3% of the total stock market. it is not like everybody is

going to sell their hybrid mutual funds at the same time. even in 2008 less than half of people who work in these funds sold. that was in 2008. let's talk about past selling outlets and a cataclysmic event. we're talking 1% of the stock market. if that is happening, we have bigger fish to fry anyway. it is interesting that is certainly talks about how everything is connected did, but this is nothing that is that a deal in my opinion. scarlet: at the same time we have seen credit ownership triplet since 2008. it has been a big shift in etf as well to take on credit etf, which was traditionally targeted at equities. >> that is a big deal. those funds, that could be a problem. look at the 10% of the junk-bond market that is a big deal, this one is unique. lysol equities to meet those reductions? alix: if you have 10% of the

junk-bond market and an etf and we have seen the high-yield over 8%, that does sees, what is the result? >> this is the dilemma the fed has created. is less located the unit junk-bond market, and the fed has pushed people out to these higher yield investment because treasuries yield nothing. i jury, there will be some kind of messiness at the very least rate but investors really concerned about this happening has slowly pull out now. you've seen said this movie before. how did it resolve itself in the past? >> everyone is worried the fed will raise rates. then they don't because there is some economics to six but is not that great. then all the sudden money that was trickling out of junk-bond dts comes flying out. junk bonds have taken in $3

billion. i call it the false alarm. we have seen this for the past five years. alix: something else going on that is interesting is the next said leveraged index yesterday there were no longer taking deposits. what does that mean and why did it have to do that? this japanese leverage fund is the largest leveraged fund in the world. it took him $5 million last quarter. uses futures contracts to get the leverage. it is too big of the futures market so it halted creation. we have seen this happen a few times in the u.s.. what essential it happens is that fund is going to have to use swap agreements to real but were more people are just went to withdraw and it will naturally be back to normal. what i find interesting about this when it is still up 200% when it came out. no wonder japanese investors were into this. this is the ultimate way to play abenomics. scarlet: still ahead, the real

estate market for people with lots of money. ♪

scarlet: welcome back to the bloomberg market day. alix: wealthy investors looking for alternatives to equity and commodities are seeking more hard assets like luxury real estate. we welcome everybody on bloomberg tv to bloomberg radio. this is the bloomberg advantage with carol massar in cory johnson. we're talking personal finance with our own peggy collins. something that we are noticing is how they are hoping some of their really rich diets get into real estate. they have done it before but it is different now. >> this is part of a wider trend in terms of very wealthy clients

wanting direct investment. what we are seeing some of the private banks doing from jpmorgan chase citigroup, over the past four years or so is essentially go out and find projects where they pull money from their private bank clients and they can actually offer than specific deals. if you look at the tallest residential building going up in manhattan right now, 432 park avenue, that is being funded with about $400 million with the citigroup private bank clients. in boston, four seasons hotel, a 60 tower building going up, another citigroup pool of trident plague clients are going in there. you're seeing these ma rquee products that are being pulled. cory: are these construction loans that are going on? >> seriously taking equity in these properties.

especially they are pulling the money together and then they are helping to purchase the building and renovated as jpmorgan is doing with the shooters hotel in las vegas. equity are putting together to construct a new building. cory: hooters hotel? >> we lost him at wieters hotel. [laughter] this is not the first time we had wealthy remain top help their clients. we are talking about the ultra rich, and there seems to hear of those families around who can do this. anwe have globally, uptick in families with hundreds of billions. about two thirds of the capital raises but they are doing from the private bank clients for these types of projects is coming from international clients. they see the u.s. is a safe

haven for their money. they want to have a property in some of the cities in new york, boston, l.a.. they may want to send their into the universities at some point. but it is something that is different because they are cherry picking the products and the banks are going to hold of their clients and offering these. some of these are club deals only offer to their clients with the know the happy property and the only have 30 days to open in or out. mark: what are the revenues for the investors? are they making a market in the equity investments in the building? >> they are essentially making a market in this sense that you cannot necessarily get in a row to the time you want to. there are some constraints. to take longer to construct a building or the could be higher cost than it investors are acting. there are risks involved. selective are they being

in your projects and reading out some of the more risky ones? >> citigroup did three of these deals in 2012 this year they have done five. we're talking about a small group of properties here. they've done some office buildings in london, europe, so we're seeing them but essentially there is not a time towersest residential going up in every city around the world and they are being selective. lot of bet if they get a demand, they will do more. >> they competition is deathly ramping up. there are a lot more evil horsey for these properties as something that international investors want to go in on. nice to be able to say you helped to build a four seasons hotel in boston or the tallest residential tower in new york. it is a nice cocktail party tag. have at least a

quarter of a million dollars to get in. >> at the very least. some of these deals are offered only to the billionaire clients you can put in $5 million in some cases. >> thank you so much. our personal finance reporter at bloomberg, and cory johnson. scarlet: thank you. coming up on the bloomberg market day, how washington is tapping silicon valley to help the global german refugee crisis -- global refugee crisis. ♪

alix: you are looking at a live shot of the white house, the east room where we are waiting for president obama to begin

speaking after meeting with the south korean president. scarlet: both will give their own speeches and we are waiting press conference to begin in approximately 10 minutes. let's start with bloomberg first word news. the latest on united. >> wall street journal is now reporting that the ceo of united airlines is hospitalized after suffering a heart attack at his home in chicago. shares dropped on the news. to keep youinue updated. as attorney general is agreeing tell moratorium on executions until 2017. the you call the court of criminal appeals has issued a

inmates states ys for three were scheduled to die this year. searching for survivors after a scaffolding collapse at a building in downtown houston. there's chemistry playing out in turkey today. they shot down an unmanned drone near the border of syria, but there is no word on who was controlling the device. complained about russian warplanes entering their airspace. turkish officials say russian air operations in syria may lead to accidents. the european union summit on remedies failed to get turkey to help. want turkey tos stem the flow of migrants, and they are already harboring more than 29 refugees.

scarlet: thank you. alix: test the refugee crisis continues to grow, the white house is doing its part in the u.s. with help from silicon valley. phil mattingly reports. >> 12 million. that is the number of people displaced by the syrian civil war. the number roughly equal to the population of new york city and los angeles, combined. the crisis has grown more desperate and the white house is cap some of the most innovative companies in silicon valley to do their part. >> the serial problem out in the world. here are organizations you can work with to get involved. find the right for your problem solving. presidentrted with obama's september speech to the un's general assembly. president obama: we are launching new efforts to ensure

our people and our businesses and our universities can help as well. >> behind the scenes, phone calls from the west wing to the companies ensued. code writers from kickstarter, airbnb, and others were ready to deploy platforms to help. teaming up with the eu and refugee agencies, their business models were transformed, providing meals, housing vouchers, and millions of dollars. havingegal for staff of the white house be involved in having the backing of the president. just reach and the credibility. haso far the administration shipped $4.5 billion of relief to 10,000 refugees. still, many argue it is not nearly enough. there are no illusions inside white house run detectability that this is a solution to a hot crisis that has horrified the international community. it represents an element of its intangible confidence that something can be done and more

portly, create a model for the future. >> sometimes the hardest problems are tackled by the right 50 people getting together and seeing how can we make a difference? comedies excited to announce commitments soon, it is not just money they are targeting. it is awareness. scarlet: phil mattingly joins us now from the white house lawn. are they working from the section of u.s. citizens are not aware how big this is? it isis not assumption, reality. only 4% of the u.s. citizens are cognizant of the scope of the refugee crisis theory of right now. those numbers are alarming just for the refugee agency, but for the administration as a whole. they saw that there needed to be efforts on the government level to try and reach out. we have social media, when you have these start of platforms that really draw from a different type of audience that is not painted into the nightly

news or government press releases, they feel this could be a more effective way to address this. alix: the kickstarter campaign recently finished. how much did it bring in? >> nearly $2 million. but what was more important from the white house perspective was that it brought in 27,000 individual donations. this was a shift to kickstarter's business model. usually is a reward or grant. you donate to help fund a project, and you get something in return. this was not that. this is a car donation model. newstarter had to write code, and develop a new platform for this to work. the $2 million represented about 7000 people getting held both on immediate need and housing. but the awareness piece, the 26,000 people who noticed this campaign, getting involved, would bolster the idea of inside the white house and the refugee agency that this is a model that will work and that they need to pursue further. scarlet: where does that money

go specifically? can people find out? >> one of the advantages of this is they can get together with the right agencies. the know exactly who gets money. you know the money is going to go to somebody who could have an impact. that is the piece of mind that has added something to this campaign that do not normally come to people who are shooting off in the dark try to help somebody. alix: how does this unwind of evolving, what is the next step? >> the idea of the white house getting private business together is not new.

it is one of its premier abilities, one of its premier capabilities. the use of platforms and business models that are in existence and shipping them to help the cause, and also that it is not the biggest companies much like ge remake of america that is doing this. it is smaller startups showing they can have an impact. from the white house perspective employeess helping who want to help have an outlet. this becomes a model for other companies. according to you and, more companies will be announcing proposals and models coming out in the future. not only doing more business, it was like an authority having more impact. scarlet: we are waiting for the president and the south korean president to speak shortly after meeting. there is a shot of the east room inside the white house where they are expected to approach the podium. what can we expect to hear from the two of them? his trade going to, with the asian trade pact?

>> no question about it. south korea wants to be a part of the transpacific partnership. the administration wrapping up negotiations on tpp a couple weeks ago. northis a huge issue here korea is always a huge issue between the two countries. but you have to keep an eye on japan. that will also be mentioned by both questions that countries. alix: thank you. as we mentioned we are waiting for president obama and the south korean resident to take the podium. you're taking a look at the live shot of the east room. we will be bringing you his statements, as well as the press conference. ♪

scarlet: welcome back to the

bloomberg market day. it is time for the lumber business flash. some of the biggest stories in the news right now. at least one investor is not worried about twitter's recent struggle. filled inmer has before percent stake in the company. the former microsoft ego is high on their new moments product. to attracttrying more mainstream users. alix: that picture was awesome. alibaba is offering to buy the rest of the popular streaming site. it is the youtube of china. they are already in possession of 18% of it. bloomberg news learns that the analysts who are based around the world have been dismissed or who are about to leave the bank.

you can always get more business news on bloomberg.com. go to theant to markets does with julie hyman has the latest. you've been looking more into united and we heard that the ceo has had a heart attack in the last 24 hours. julie: now we've seen from the company. says we have been informed that he was admitted to the hospital on third way. we are respecting the family's privacy. he's been ceo of the company for little over a month after taking over from the previous ceo. there were some questions about the united airlines partnership with jurisdictions. now turning to crude oil.

taking a quick look. the shares remain lower by about 3% following these headlines. you updated. let's talk about what is going on with crude oil prices. inhave had a turnaround crude, bouncing around. we got the weekly baker hughes to 595nt which fell is that has helped to fuel the turnaround in the rises. look at my bloomberg terminal, we have that on the terminal and you can see here is the five-year chart. there was a big uptick in ricks as we saw the shale boom here in unit is dates. downhey have been works gradually. we have been watching that. the company came up with earnings yesterday. the largest oil field services withder down 4% after it

estimates because of slumping oil prices. it is also worth noting what the broadly.about oil more he set the work is underestimating how long the industry's recovery will take. he said the company itself had underestimated how long it would take. they thought it could happen by the year and now it sounds like he is not sure. he also said on the conference call financial gains of the company's customers is significantly weaker. they are also seeing weakness among oilfield services and production companies today. we will see if that changes with this turnaround in oil prices on the day. me for theseare guys. they do not get as much business as they do, and they have a lot more pricing power. a two-pronged attack. julie: worst of both worlds. a reminder that we're standing by for a news conference with president obama

and the president of self korea -- south korea. you are taking a live shot of the east room. back here in the u.s., consumers seem to be shaking off doubt. consumer confidence rising to 92.1. alix: they had a greater credit.ce in using >> there are so many questions

you can ask. it is a great read. sign are some really good s. more than any other time they say they will buy high-value durable goods for the house. should be encouraging for those who are worried about it the economy is slowing down. we have an indication of they are actually spending the money they saved from falling gas prices? when we will see that followthrough has been a big question. they have coverage: the organization, and they said they do not see that happening in people are spending those savings. all the market rallied, one of the things that people lamented was that it was not trickling down, that it was not helping most people, that is helping the rich. now we have the stock market

volatility, where the consumer does not seems to face. alix: you seemed that you pointed us earlier about the issues they are worried about. andpresidential election, the transpacific partnership, both of which you would think would be much less relevant volatility in the u.n.. interestwas not much in volatility, there's not much concern about prospect of a government shutdown. 2016,was a big issue in the transpacific partnership. there was another question that they asked, do you see continuous good times for the u.s. and the future? that has been trending down for most of the year. that led to some of the geopolitical stuff that has been going on. so when economic issues it does not seem like there's much concern. on bigger political questions, and it does seem like there is rising concern. scarlet: so what the fed is grappling with, whether they

should raise interest rates, is not something that ordinary people are caught up in and it does not affect the confidence at all. >> know it doesn't. what i found interesting, with gas prices, very few people expect gas prices below. . or to go lower we're going to go higher. on inflation, people do not think that the government is doing a good job fighting inflation. i think you get a perspective of how the consumer see and differently from how economists might talk about it. alix: i feel like an a lot of notes that they bring out now, from lowerenefits as gas prices as eroding in the future. we're stabilizing the payback. the benefits will no longer be there because it is a new normal. >> there was never too much benefit in the first place. scarlet: we are all looking for

something that is not going to show up, if that is the case. going back to the election, held a translate into what people will do? rate --ill another cure your way. does that relate to they spend their money? >> it does not seem like it should directly translate to much. it is nice that they asked us questions because it gets out of the debacle are you going to spend more, but it is hard to imagine that it would expect spending one way or another. alix: we will be diving into this much more. this is a preview of the charts we will talk about on what you miss at four clock p.m. eastern. scarlet: meantime, we're still waiting for the life news conference from president obama and the south korean president. we will speak -- see them speak at any moment. ♪

alix: welcome back to the bloomberg market day. you're looking at a live shot of the east room of the white house where we are waiting for president obama will be speaking there are materially with the south korean president. they will be holding a joint news conference after that scarlett. scarlet: revenue was mostly lower than expected last quarter, but there were some hopeful signs about the quarters ahead. alix: escrow pointed out, you have a great title on bloomberg right now. what does it mean? >> it is trading from fixed income currencies and commodities. to say it politely, the sun did not shine on that. it is a pretty interesting dynamic because markets were so volatile in the third quarter, especially equities. we had a first direction since

2011. didequity trading desk well. but everyone else sort of slow down there trading during the quarter. those fixed income measures had a very hard quarter, and the places it is pronounced as a percentage of revenue. jpmorgan, which are more traditional bank business loans, mortgages, credit cards, savings, that has been pretty good. they are reacting most positively to the earnings this week, citigroup, wells fargo, bank of america. even goldman sachs ended up rallying after its earnings. scarlet: it is interesting that you point out that the board makes did well because boring is good now in banking. regulars have made sure of that. sachs,ting that goldman

did not do as well because morgan stanley has pursued this strategy of moving away from fixed income and apathetic equities as a way to differentiate itself. perhaps things will pay off in a report on monday. >> they have the highest percentage of any of the big banks, really leading the retail. >> is bad news if you're expecting a bonus this week. scarlet: very busy managing expectations. best, banks doing the goldman has refrained on fixed income trading. all of these other banks have done that. why is it not paying off? is an open question at the moment. alix: a year ago everybody

wanted to volatility -- wanted volatility. but if you look at my chart of the irix futures -- at vix futures, the screen line is where it was just three months ago. that orange line is what it is now. they look eerily similar in terms of the steepening of the curve. in volatility continues, does that mean even more pain ahead? >> possibly. if people continue to slide on trading and other areas. volume was huge and equities over the quarter. was a big jump from the third quarter of last year. but as you put it up, what was fascinating with that in august is how inverted and the near-term volatility was way above the forward months. that is an unusual situation

that spooked a lot of people and explained why this volatility freak so many people of. scarlet: thank you so much. volatility hurting that just the different banks, but hedge funds as well. alix: we have seen many closed due to that. still awaitingre president obama who is hosting a news conference at the white house. the president the south korean country will also speak momentarily. let's give you a snapshot of what is to come in the bloomberg market day. we will get the president speaking, but also reaction to the latest economic data and a look ahead to earnings for next week. have a great weekend, everyone. ♪

to the bloomberg market day. any moment now president obama is scheduled to hold a news conference with the president of health korea. joining us now from the white

house is phil mattingly. just give us a sense of what we might hear from these presidents today. actually going to address trade. you have this sense from south korean officials that they want to be a part of the second round of the transpacific partnership, the agreement that was just wrapped up last week by the obama administration. train and the economy always a key issue when they get together. it is worth noting that the relationship was one that both sides have worked on a great deal. he has focused on his pivot to asia. a key foreign-policy keller. visited last year. the talks focused on north korea and the relationship there. but also in china. there is an interesting development in the relationship between president park and president choosing thing -- she'