betty: clone bloomberg world headquarters, good morning. i am betty liu. high hopes for homebuilders. are they still that confident in the real estate market? the latest numbers are out moments from now. jamie dimon uncensored. c.e.o. talks about regulation, the commodities slumped, and his own future in an exclusive interview with please thousand --bloomberg interview. it is 2000 all over again. china's economy has not grown to slowly since the financial crisis. we will look at what this means for the rest of the world and the bright spots in the numbers. we have breaking economic news out on home builders. julie: this is a measure of confidence for homebuilders. the national association index rising to 64, the highest reading in a decade, since

october of 2005. could be a sign housing demand is going to remain solid in months to come. rising from a revised 61 reading the prior month in september. 64 is the highest reading we have seen on the homebuilder confidence index in a decade, even as some of the other economic data recently has been mixed. you see the index and what we have seen it do. i want to look at the reaction in the markets this morning. right now, we are seeing stocks show a mixed picture for the major averages. we are seeing the s&p 500 rebound from lows of the session. here are the three major averages now. the nasdaq is higher but the dow and s&p 500 remain lower after this number came out. perhaps seeing a bounce off of the lows only a half-hour into the session at this point.

if there is any reaction, it is relatively muted. betty: what else are you watching? julie: let's look at the homebuilders to see how they are reacting to these numbers. we are seeing them remain lower, although getting a leg up following these numbers coming out. te the worst of the three but they were down more before the number cannot. we just heard from jamie dimon. morgan stanley numbers were out earlier this morning. the shares are down 5%. we have heard from most of the banks that trading revenue was down at morgan stanley. it was down more than estimated, earnings missing the average analyst estimate. bond trading was week for morgan stanley. i have been watching other banks to see if there is a ripple effect. it is the end of the big banks reporting session. we have already heard from the other banks. there is not as hangover concern for morgan stanley that we will

see similar results from other banks. we have already heard from them. we are seeing them higher today as morgan stanley is hit. betty: julie, thank you so much. let's check in on bloomberg "first word" news this morning. vonnie quinn has more. vonnie: we start with syria and president assad. assad's troops are headed for syria's largest city backed up by russian warplanes and iranian special forces. it is likely to create another wave of refugees. cord ine nuclear ac effect, iran and world powers are focusing on who needs to do what to implement the deal. iran needs to eliminate 95% of its enriched uranium stock and take thousands of centrifuges out of service. the west will be making preparations to lift sanctions. angela merkel says there has been progress on turkey's willingness to work with your of

the refugee crisis. merkel met with the turkish president and agreed turkey cannot do it alone. merkel: we spoke about sharing the burden. turkey has received little international support for a great effort to take arab refugees. vonnie: in the last four years, turkey has taken in more than 2 million refugees from syria. in saudi arabia is more than 2100 according to the a.p. that tally is three times higher than the tally given by saudi officials. face a 759 died -- they say 759 died. the investigation is ongoing. in the end of the road for stephen and the conservative party after a decade in power. polls suggest the liberal party 's trudeau will be the next prime minister.

that is a look at our "first word" news now. you can always find the latest on bloomberg.com. betty: thank you, vonnie quinn. ago, saw a moment investors are digesting disappointing bank earnings, slowdown in chinese growth. you just saw homebuilder confidence reach another hot. could this give the fed more pause for a potential rate hike in 2015? we keep getting mixed messages in the economy. mike mckee will be sitting down exclusively with the san francisco fed president to get his take later today. mike, you keep hearing from various officials talking about how october is off the table. are we likely to do that from williams as well? mike: i would guess that would be the case. he framed the situation well in the introduction talking about

the data. the real question for the fed coming out of the september meeting is, what new information with a have by the in october or december that would lead them -- what they have by the end of december that would lead them to raise rates? we have not seen anything in october that would do that. we have seen disappointing bank earnings based on the lousy august, based on the feelings china might be slowing. that is in the past. we have not seen data that suggests we are going to see growth ahead. maybe this homebuilders number is a sign better days are coming. were at least housing remains a bright spot in the economy. overall gdp, are we starting to hear rumblings about how we will barely get a 1% gain? mike: you have the morgan stanley bond desk writing about qe4. every fed official says that is not even on the radar. most see a temporary slowdown.

it will be interesting to see gdp at the end of the month. the real weakness has been in trade and inventory. we had a slow down. manufacturers got stuck with too much stuff so they are not making as much. that has taken some off of gdp and trade hit by the strong dollar. the dollar has been going down. the fourth quarter could see a bit of a rebound if not strong growth setting us up for stronger growth going into 2016. betty: why do we see a slight uptick in cpi last week? will that have influence on the fed? mike: it is energy pushing things around. we saw a big drop in energy prices at the end of last year. beginningcoming to -- to come out of the year-over-year comparisons. 2%present is the fed goal -- is the fed goal. you could make the argument we will see inflation again. that has been the fed's belief. is that continues, they will

have the inflation part of their mandate beginning to be satisfied which probably means december could be an option. to take us back to your first question, we have to see more data between now and then. betty: we do indeed. thank you, mike mckee in san francisco. be sure to catch mike mckee's exclusive interview with the san francisco for president this afternoon at 2:00 eastern right here on bloomberg television. much more ahead in the next 20 minutes. as we just saw, homebuilders are bouncing back in confidence. we will look at the latest housing numbers and what might spoil the housing recovery. we are going to hear what jamie dimon had to say about bank regulation after the financial crisis. plus, china's economy. we will look at the country's economic growth and what that means for the fed in the u.s. and the global economy. we will be back. ♪

betty: good morning and welcome back to the "bloomberg market day." it is time for a look at the biggest business stories in the news right now. ferrari is going public this week. it is expected to price tomorrow night to begin trade wednesday on the new york stock exchange under the symbol "race." fiat chrysler selling about 10% and likely to have a market value of $10 billion. investigators in perris searched volkswagen offices in france. computers were seized last friday. the french probe is one of many

worldwide into vw's cheating scandal. nearly one million cars in france might have the software that tricks pollution testing equipment. micro is offering to buy sera for $2.4 billion in cash and stocks. the deal comes after sky works offered $2 billion for sera october 5. the merger could save the company more than $100 million in annual costs. you can always get more business news at bloomberg.com. julie hyman as a check on company movers including a big announcement from weight watchers. julie: i'm going to focus on weight watchers for the stock is up on the news oprah winfrey is taking a 10% stake in weight watchers for newly issued stock. that is part of the deal. also, an option to buy an additional 5% is coming from oprah. she will participate in weight

watchers as part of this and write about the results as she is going through the program. weight watchers, when you look at the nearly 80% gain in the stock today, you have to look at it in context. take a look at the stock year to date on my terminal. it is getting this big boost today. but the stock is still down more than 50% for this year. that kind of puts it in perspective that even with this enormous gain today the stock is still depressed year to date. you also have to look at the short interest on weight watchers. it has been volatile. however, short interest now is 50% of the shares available for sale. an enormously high level of short interest. that can exacerbate an upward move as people cover shorts as the stock goes up. that causes it to go up further. i wanted to look at the revenue picture for weight watchers. this is revenue going back to

2008 on annual basis. the people is in 2012. since then, we have seen --the peak was in 2012. since then, we have seen revenue fall 20%. there is competition in the weight market including from free apps. if you can track your weight loss activities on an app, that is proving to be a more compelling alternative to individuals trying to lose weight. that has been one of the main problems for weight watchers and one of the reasons the stock has been down. you can argue oprah is getting a bargain with the stock. betty: she can lose weight on the program and make money. what accounts for the rise? that is a big jump. push: it has done a big into improved marketing and advertising, has gotten new celebrity spokes people. oprah on thatt

front so maybe it will get a boost from that publicity. betty: we have housing starts tomorrow. ago, theminutes national association of home builders kick things off. rising in october to a 10 year high. i want to bring in the real estate professor from the wharton school at the university of pennsylvania. what gives? like confidence is at a 10-year high yet we keep hearing from the fact the economy is on the fence and they are not looking to raise rates soon. what is going on? is theing starts sensitive part of the economy. that is why the fed is watching closely. i think the housing start will continue going forward to be a positive contribution to economic growth. the numbers in jobs have been

off slightly. growth is a concern. but housing continues to be a plus. something thaty will go forward until the important interest rate decision is taken. betty: i understand. what gives here? everything else seems to be meandering along. what gives in housing? are at ast rates long-term low. normally, this should be a boom time for housing. the other side stopping that is it is difficult to qualify for a mortgage. house prices are doing so well they have become unaffordable again given that we don't have wage growth. nonetheless, even with the slow andgrowth, there is growth there is some growth in the economy overall. this feedback in a great way

into the housing sector which is doing very well. demand is there. rents are going up. that is pushing demand for home ownership. but still, it is difficult to qualify. we look for positive, continued positive gains. but we still have the question of qualifying for a mortgage keeping homeownership at historical lows. betty: exactly. it makes you wonder whether homebuilders are too optimistic. maybe they are in denial. who knows? >> we are not in denial. they probably have some basis for confidence. with all of that, building is still really off what it should be at this point. there is room for growth. betty: i say that because mortgage applications, if you look at the data from the mortgage association, mortgage applications fell 28% in the

week of october 9. some of that they are blaming on [indiscernible] that cannot be used as an indicator. there may be something in that. but at this point, that is just heart of the turnover, the switch to the new system. i would not take any signal from that at all. betty: professor, thank you so much. professor susan wachter from the university of pennsylvania. still ahead, an exclusive interview with j.p. morgan chase chairman and c.e.o.. jamie dimon talks about how regulation is impacting his business and what he thinks of some of the democratic proposals to go after wall street's biggest banks and make it a crime in what they have done. we will be back. ♪

betty: welcome back to the "bloomberg market day." plans tolinton has big reform wall street, including doubling down on dodd-frank. stephanie ruhle sat down for an exclusive interview with jamie dimon and asked if washington is listening to wall street or if it is an adversarial relationship. >> they are not listening. they are exhausted. the are trying to implement job given by legislators. privately, they know there are too many regulators and rules. they want to make it simpler. over time, that will probably happen. just not in the next couple of years. stephanie: that means it ain't happening in our lifetime. >> it will not happen in the next couple of years. it is possible people will look back and say let's improve these things, strengthen, improve, change the things that did not work, at things that might be

better -- at things that might be better. stephanie: is any of it happening? >> no. stephanie: i take you to donald trump. last week, i asked him about bank regulation. he said jamie dimon, i like the guy. but he did not understand why people like you and other bank c.e.o.'s in his words "rollover and settle." he said the fines they are being hit with are so ridiculous, why doesn't a guy like jamie dimon fight back? >> it is -- we have a lot of constituencies. i have 250,000 employees. we bank 50 million households. we bank in 50 countries around the world. you have to do what is right for your company. whether you agree with it, it is impossible for a bank to fight the u.s. government. you are trying to minimize the damage to your company. the alternative would be to go to court and fight in five or six different courts, be dragged through the mud for years, and

still end up paying that kind of money. stephanie: donald trump has never been in your seat? >> maybe you would have done a better job but i don't know -- maybe he would have done a better job but i don't know. i'm not going to jeopardize my company. we have to operate under the laws of the land, which we have always done around the world. we cannot and ford -- afford to take an indictment of sorts. it can damage the company so much we go in and say we want to settle. holder,ent to see eric i said i am here to surrender. you are my judge and jury. i have no choice. before you pass judgment, please listen to what i have to say. the cities, states, schools, were $700 billion. we did a lot. i think we got some credit for that. i don't know how we came to the numbers. stephanie: you did.

i remember watching you walk in by yourself that day. does it put you in a position where you become a whipping boy? you took that? i got another twice as big. >> i'm going to leave that to you to look at the proportionality of the fines and what was there or not. i don't want to comment. i'm trying to do the right thing for my company and get this behind us. betty: i want to bring in michael moore for more on this interview. in some ways, this is a moot point to talk about with jamie dimon because these legal costs are getting behind them. what more do they have to fight? >> i think it is setting the debate for if there is more on the tail end, whether it is the fx investigation or the libor. you are right. the crux of the mortgage is done. betty: the settlements are done.

>> j.p. morgan was early on that front. they were 2013 where as most banks were last year and this year. they have gotten most of it out of the way. i think he is still trying to set the debate for if there are more. betty: is there any sense there could be more? >> i think banks have a new normal in terms of higher quarter to quarter litigation costs. j.p. morgan still had about $2 billion of legal reserves. expectingalysts are an elevated level of quarter to quarter legal reserves, even if there is not a huge settlement like a couple of years ago. betty: jamie also said he does not pay attention -- that quarterly earnings are useless essentially and they had a great quarter. the fact is very few people thought he had a great quarter this past quarter. did you hear anything that

showed you this is going to be a turnaround for j.p. morgan? >> no. it's interesting he talked about not giving quarterly guidance. j.p. morgan more than the other banks rides on a quarterly basis -- guides on a quarterly basis. for the fourth quarter, they said trading is typically slower and they are not seeing much pick up so far in the first couple of weeks of october. they seem to be saying we are guiding lower for the fourth quarter. betty: michael, thank you. michael moore, our banking reporter at bloomberg news. another big c.e.o. interview. c.e.o.nson & johnson following is from the white house following his meeting with the president. ♪

betty: live from bloomberg's world headquarters in manhattan, you are watching the "bloomberg market day." good morning. i'm betty liu.

funny quinn has more from our news desk. vonnie: we begin with afghanistan where the defense minister says taliban insurgents hit in the hospital mistakenly attacked by u.s. forces break doctors without borders has rejected the claim. 22 people were killed in that attack. israeli officials say the 21-year-old arab who killed a was an israeli with no record of militant activity. he opened fire in a bus station. at least 11 others were wounded. secretary of state john kerry is calling for calm. >> we continue to urge everybody to exercise restraint and restrained from -- and restrain from any kind of self-help in terms of the violence. israel has every right in the world to protect its citizens, as it has been, for marinemax of violence.

-- from random acts of violence. negotiators are in germany trying to draft a plan for the climate control summit. now, globalom leaders meet in paris to reach agreement on how to cut fossil fuel use. critics are already concerned a deal would not do enough to ward off climate change. the vice president will say whether he is running for president in the next 48 hours according to nbc news. biden has been consulting with democrats around the country and his own advisors. has a 16-point lead over bernie sanders in a new cnn poll. it is the first conducted since last week's debate. who hassident joe biden not decided whether he is running is third at 18%. that poll indicates only sanders received a boost from the debate

. his score is up 5% since mid-september. that is a look at our "first word" news. you can always find the latest on bloomberg.com. betty: thank you so much, vonnie quinn. to get you caught up on the action around the world, let's head to london where ryan chilcote has the latest on european markets. ryan: a mixed day in europe. almost like a nice geographic split between a poorly performing western-western europe at a slightly better performing eastern section and central europe. one of the reasons for that is the ftse 100 is down about .5%. anglo american down nearly 7%. that is its third worst performance -- its worst performance in three weeks. anglo american following --

falling on the back of the gdp numbers from china. it would get more attention if not for glencore getting more attention as he worst-performing stock. this is the second worst-performing stock on concerns about chinese economic growth. let me show you that more specifically. part of the issue is concerned about metals demand from the world's largest consumer. copper down the most in four weeks today down about 1.5%. anglo american is one of the biggest producers of copper. copper taking a hit today. another commodity down today is oil, just beneath $50 a barrel. i want to show you one thing on the rise today. that is the pound. that is on the back of a report from goldman sachs that says the pound will rise because in the

u.k. the bank of england will raise interest rates sooner than the market thinks because the bank of england has been signaling it thinks things are going ok with the economy, unemployment dropping, less concerned people think it is about the global picture and china. that is european equity markets and a look at the pound. betty: ryan, thank you so much. ryan chilcote in london. we will check back with them on the close in europe. asian markets did close monday's session mixed. you can see the hang seng up slightly. the shanghai composite dropped 0.1%. one big story was china's third-quarter gdp numbers which surprised many economists. we have more from hong kong. >> china's economy grew 6.9% year on year in the third quarter. that is better than expected and a strong indication that fiscal and monetary stimulus are working.

it is the weakest pace of growth by china since the financial crisis and reflects the august collapse in chinese stock values. exports and manufacturing remain weak as well. there is one detail in the report that has major consequences. china's services sector is expanding, underpinning growth in the quarter and slowly but surely rebalancing the world's second largest economy -- almost by design. betty: for more perspective on china's numbers, i want to bring in patrick chovanec. he is also a professor at columbia university. context or analysis of the chinese numbers. >> the 6.9% number is the sort a post we cannot say 7% with a straight face -- when they cannot say 7% with a straight face. i don't put much credence in that gdp number. betty: you think it is worse? >> i think it is.

what is more important is what is going on in the chinese economy. we are seeing a clear slowdown in construction and heavy industrials which were key growth drivers for the chinese economy the past several years. we are seeing that clearly inflected in the electricity numbers treading water all year and industrial inputs having an effect on world prices. betty: i thought they were bright spots in the numbers. we saw consumer spending pick up. that is what we want out of china. >> that is what we want. retail and services are proving resilient. whether that makes up for the slowdown in other sectors, i'm skeptical. betty: it won't because it is a smaller part of the economy, but it is going. >> what we need from china is not more industrial output. we need more consumer demand. how that affects the rest of the world, i think people are two

negative on how china's slowdown or the end of its overinvestment binge affects the rest of the world. sayy: the chinese will there will be painful adjustment as we move to a more service-oriented economy. does that mean there are opportunities? if you were going to be the contrarian, do you invest in china now? >> invest in china? i hesitate. mainland chinese shares are 50% above where they were a year ago. i think that is problematic. hong kong has fallen off more. i think the key thing is to be selective, to identify winners and losers from the economic adjustment because there are big winners -- big losers and potential big winners. the biggest losers are real estate, construction, all the things in or out of china that has fed into the chinese investment boom.

the winners are things people are writing off because they think china will have a general downturn. consumer demand out of china weather for food or outbound tourism, those things will be fairly resilient. betty: are there new trading partners strengthened from this opportunity? >> how you are affected by china's slowdown depends on where you stand relative to the chinese economy. if you are australia selling iron ore or chile selling copper, your heart it -- you are hard hit. if you are selling food to china or want to sell consumer goods to china or just want relief from the overcapacity china has built up in the global economy, you benefit. the united states fits a lot of those categories. betty: what about people who say china is a house of cards? jim chanos one of the biggest voices shorting china.

is it a house of cards? >> there are aspects of the chinese economy that are a house of cards. we are looking this week at a potential big default by a chinese still farm -- steel firm. betty: enough to take down the entire economy? >> no. people misunderstand that china is a surplus country. it is not like greece where the moment output start to falter they have to consume less. they can afford to consume more than they produce. we are looking at more like the slow down in japan in the 1990's where it went from a fast-growing economy to a slow-growing economy, but it did not derail the rest of the global economy because they were growth drivers. betty: patrick, thank you for joining us. branson is, richard joining us to discuss an issue close to his heart.

he wrote a blog that went i viral. we will tell you what that is about in a moment. ♪

betty: welcome back. we are just over an hour into the bloomberg "market day." it is time for a look at the biggest business stories in the news. morgan stanley has run into the same problem as other wall street banks. it posted earnings that missed estimates. fixednk had a big drop in income trading and investment management fees also fell. iran's development is to says nobody is happy with current oil prices. he says will pick should cut production so prices rise. crude is selling at just under

$50, down 42% in the last year alone. airlines saysntal it will reach a decision soon on what to do in the wake of the c.e.o.'s heart attack. oscar munoz was hospitalized thursday. united is considering whether to name and interim c.e.o.. you can always get more business news at bloomberg.com. for more context on this developing story, i want to bring in a senior airlines analyst who covers united continental for us. topic it is a sensitive for us and the airline. munoz?s the state oscar >> we have heard from united they will give us details later today or tomorrow. i guess it is concerning we have not seen him in a number of days. our thoughts go to him and his family. we like to see someone at the

top of continental, we would like to know who is running the firm. betty: the company has to move on. they mentioned they may name and interim c.e.o. do we know who that might be? >> i don't know. oscar the great picks of is he was not a united or continental person. he was someone about that fo ray. we hope they find someone else above the fray. some of the challenges they have are the legacy of the merger that has not gone well so far. betty: it hasn't. i know investors were keen on seeing oscar move quickly to start doing some things about the merger and at the company. what does this mean for the investors at this point, george? >> i think it clearly is going

to slow progress. oscar was talking to employees. we still have issues where we have machinists and flight attendants not working under joint contracts. it would be get to -- it would be great to get his joint contracts settled so united could act as a team instead of two independent companies operating together. the longer it takes to announce a successor or bring oscar back, it is concerning we will be further down the road before we see progress on the challenge. betty: what was the timetable on the negotiations? >> they were actively working on them as oscar's heart attack occurred. he was supposed to meet machinists the day the heart attack occurred. they have been actively working on these. they are going to mediation with the flight attendants. that is happening in the next

weeks and months. hasrecent american contract been a standard-setting. a number of these union agreements are going to look to the american agreement to try to forge a new agreement. again, we are ongoing and it seems we ought to be closer. betty: thank you, george ferguson, on united continental and the status of the c.e.o. for a look at u.s. markets, abigail doolittle has the latest from midtown manhattan. we are looking at a relatively quiet monday morning at the nasdaq. most stocks seem to be around flat. the composite is up just .2%. we do have two standout losers to tell you about. one of them is oracle. pacific downgraded it to sector weight from overweight. the analyst says there's limited upside for shares and fiscal year 16 could be challenging for

the company. he cut numbers. it is worth noting this is the second downgrade recently. shares were cut to underperform on october 14. the stock now is off more than 2%. another stock coming under pressure is solar city. axiom capital initiated this morning with a sell and $24 price target. that implies 46% downside from friday's close. there were a lot of reasons noted for the negative outlook. one that stood out was a wave of class action lawsuit in deceptive lending practices in the solar space. the shares are off. more soon. back to you. betty: thank you, abigail doolittle. sir richard branson joining us. the virgin group founder and billionaire will talk about drug policy and new documents he

claims he has seen calling for the decriminalization of drugs around the world. we will have more on this developing story in a moment. ♪

♪

betty: welcome back to the "bloomberg market day." i am betty liu. earlier today, jamie dimon spoke exclusively to stephanie ruhle. here is what he said about what banking will look like in five years. look at it: i always from the standpoint of the client first. if you say large corporations will need equity debt derivatives, cash management, all the services we provide, and look at consumers, they will need deposits, investment advice, credit cards, more into mobile phones. there is a need for what we provide. we will be providing services in the most economic way so clients are happy. our clients are very happy with us. customer satisfaction scores have never been higher ever. why does populist opinion still hate on banks

every chance they get? jamie dimon: banks got tarnished. that was a scarlet letter all banks got bailed out which was not true. a lot of big banks and a lot of small banks lent money. this is an important fact. throughout the whole crisis, to middle market companies, small businesses, and individuals at the same price. the market does not care. the market pulls out. we kept rolling over. i remember getting phone calls from competitors asking why. i said because we have to be in their -- be there in good times and bad times for our clients. if we pull out when things go bad, they will go bankrupt. we went trillions in the worst time. it was gutwrenching some things we had to do hoping it would make sense. we did not do it to profit. we did it to keep these companies alive. stephanie: why haven't you been able to tell that story and have it stick?

as we head into the election, hating on wall street will be a general theme. jamie dimon: there is nothing i can do about that. stephanie: why? meg women got paid -- whitman got paid $23 million last year for stock that went in one direction. nobody blinks. people are all up in your business if you play golf or by a new couch. jamie dimon: i don't play golf. stephanie: people want to know why bank c.e.o.'s get overpaid. jamie dimon: that is the narrative. the narrative was that all banks got bailed out. all i can do is tell the truth. we tell the truth every year. we admit our mistakes and try to fix the mistakes and serve our clients. our clients are quite happy with us including cities, states, hospitals. when i travel around the world, mayors, prime ministers, presidents, they want more j.p. morgan. they say you have been great to

our clients. thank you for the things you are doing. that is the best i can do. we will not be able to rewrite the narrative in the short run. if itys in the press, will be rewritten, it will be rewritten by the press, not a bank c.e.o. betty: that was jamie dimon, chairman and c.e.o. of j.p. morgan. we will head to the markets desk. julie hyman has more on stocks. we are fluctuating? julie: stocks are mixed. the earnings reports and other things going on. chinese gdp coming up better than estimated but showing a continuing slowdown. that has been waiting on matters -- that has been weighing on the matters. take a look at my bloomberg terminal and the different groups on the move. a little bit of green but mostly red. consumer discretionary and stable stocks are barely higher. energy is the big drag on the

market today in terms of the stock affect as we see oil prices once again taking a downward turn. we saw them get a bit of a rebound friday after the weekly rig count continued to show a reduction in rigs. nonetheless, there is still enough evidence of a supply glut that we see oil prices continue. iran is encouraging a cut in production to boost oil prices this morning. but also leading to some of the negative sentiment because it is not clear opec will cut production and listen to them to do that. betty: we have been waiting for that. that will be would we see the rebound. thank you so much, julie hyman, at the news desk with how the markets are trading. sir richard branson is joining us now to talk about an issue close to his heart, treating drugs as a healing issue. he wrote in a blog post he has

seen documents from the united nations office on drugs and crime calling for the to criminalization of -- decriminalization of all drugs. sir richard, good to have you on the program. thet of the media picked up blog post you wrote about this. what did you see from the u.n.? >> the u.n. were putting out a strong statement yesterday criminalization of people taking drugs was harmful and unnecessary and has done an enormous amount of damage. this is the very body that has been in charge for the last 50 or 60 years of overseeing the criminalization of people on a worldwide basis. it is a very powerful statement saying drugs should be treated as a health problem.

people who have drug problems should be able to come forward and be helped and not criminalized anymore. they say that should apply to all drugs. betty: they reveal this to you, the bbc, and others. they were supposed to unveil this report yesterday? >> yes. bbc, interviews with the with one or two other people being given the statement. the report was meant to be revealed in malaysia at a big conference yesterday. it has not been. the reason i am going public is i am extremely worried, as are other people from the global drug commission and other people working in this area, that a country or two may be trying to suppress this report. when you have the most influential body saying drugs should be treated as a health problem, it is important they stick by it and are not

influenced unduly by one or two individual countries who disagree with them. betty: am i close if i say that is the u.s.? >> i'm not going to say because i don't know which countries. we believe it is one country that has put an inordinate amount of pressure on them to stop this report coming out. we have now just published the report on our website so it is there for anyone to see. it is a very powerful, sensible report. for instance, heroin. in countries where they treat heroin as a health issue and not a criminal issue like portugal and germany, they are getting on top of the problem and have reduced the amount of addicts dramatically and managed to stop the spread of h.i.v. and other illnesses. we very much hope the u.n. will

be brave and get the report out today or tomorrow and stick with it. betty: did i just hear you say you have gone ahead and released it? on myhave posted it website so people can see what the u.n. think and believe. tothere is a country trying suppress it, the report is there to see what the u.n. really think. and hopefully, the u.n. will stand by the report that they were meant to put out yesterday. betty: you have done that without their permission? i was never given it myself in confidence by them. i managed to get hold of the report. i think it is very important the world sees this report because

there are literally millions of people who get punished every year, they get criminal convictions, they end up in prison. in some countries, they get executed. unnecessary. the u.n. have said it is important that the world knows that is what they believe and that is what they wanted to put out. it is one country trying to suppress it. that country should not be allowed to suppress it. the u.n. is an independent body that is there to benefit all of us. betty: what do you think is the economic impact of this type of report? what will be the impact on drug policy around the world but the economic impact, as well? from criminalizing drugs to treating it as a health issue. >> countries that treat it a health issue get people off of drugs and back as useful members

of society again. that is of benefit to the countries. countries that don't lock up hundreds of thousands of people for taking drugs like america does, again, those people will be useful members of society again. paying their taxes. behaving as normal people. there are enormous economic benefits. the social benefits are gigantic, as well. policy --ave a broken if i had a broken business for 60 years, i would have closed it down 59 years ago. the war on drugs has gone on now for 60 years. everybody knows it is broken. the u.n. -- the actual body that is there to monitor the war on drugs, has now come out to say it is broken. it should be stopped. there is a much more effective way of dealing with it and that

is to treat it as a health problem and help people. if my brother or sister or children had a drug problem, i would want to be helped, not imprisoned. again,let's show that the website you just mentioned. you note this is a change in drug policy. do you believe or have you heard from the u.n. at all about this move that you have made, and do you believe that is going to force their hand to put this report out and the next day or so? branson: we will have to see what happens. we will have to see how much pressure is being put on them, by whom to stop it. journalists out there to get to the bottom of what is going on. all i can say is that yesterday, this report was going to come out. yesterday, the bbc were going to break this report. myself and others did interviews

with the bbc on an embargo basis. hasbody somewhere intervened to stop this report from coming out. .hat is dangerous hopefully, the u.n. will stand up to who an -- to whomever it is as pushing pressure on them. betty: before we go, why is this so important to you? richard: i am part of something called the global commission -- global drug commission. ex-president's, i am the only business person on it. we spent five years studying the work on drugs -- war on drugs, done many reports, have been to many countries. we can see the misery the war on drugs has caused. we can see the enlightened policies of some countries that are doing exactly what this report says that countries should do. idea of seeinge

literally hundreds of thousands if not millions of lives around every year unnecessarily. if i am in a position to do something about it, i will try to do something about it. betty: richard, thank you so much for joining us. richard branson, virgin group founder joining us with this report from the u.n. that was supposed to be released yesterday and he is released it on his website. thank you for joining us on this. i want to get more on our first word headlines. vonnie quinn is joining us from the news quest -- desk. vonnie: thank you so very much. we begin with the joe biden. apparently, he is going to decide in the next 48 hours whether he is running for president. this is according to nbc news. biden has been consulting with democrats around the country and with his own advisors. secretary of state john kerry is trying to restore calm after the outbreak of violence between israelis and palestinians.

he plans to meet with leaders on both sides. kerry: we continue to urge everybody to exercise restraint and to restrain from any kind of self-help in terms of violence. israel has every right in the world to protect its citizens as it has been from random access of violence. -- acts of violence. vonnie: an israeli soldier was killed yesterday at about station. police kill the attackers. eight israelis have died from 30 attacks by palestinians. israelis have killed at least 18 of the attackers. the death toll from its stampede at saudi arabia is now at 2100. that is according to the associated press, three times the number given out by saudi officials. saudi's are still investigating the disaster. the u.k. is hoping to cash in ring a visit from china's president.

they say the investment deals he will announce during the trip will be huge. he will be staying at buckingham palace. in canada, voters are deciding whether to keep stephen harper and the conservative party in power. he has been in office from a decade. polls suggest the liberal party's leader will be the next prime minister. he is the son of the former prime minister p.r. trudeau. you can find the latest news on bloomberg.com. betty: thank you so much, vonnie quinn at the news desk. much more ahead in the next 20 minutes of bloomberg market day. the academy award goes to netflix. we will look at how much of an oscar opportunity that film really is. will he or won't he run for president? -- he isss than announcing. who is coming in who is going at yahoo!?

we will look at the latest shakeup at the tech company. ♪

♪ betty: good morning and welcome back to "bloomberg market day." it is time for bloomberg business flash, a look at some of the biggest business stores in the news right now. homeowners haven't been this confident in 10 years. that is according to the latest national association of home builders wells fargo index. financing for housing may remain strong in the months to come. a bright spot in the economy. will make a they discussion soon and what to do in the wake of the ceos heart attack. he was hospitalized on thursday. united had been deciding whether to enter an interim ceo.

it goes before a critical vote this week. uaw management says that poor communication helped torpedo a previous agreement with chrysler. don't forget ferrari is launching their ipo this week. you can always get more business news at bloomberg.com. to the marketk does or julie hyman has a check on some of the company movers including all of the activity in the chipmakers. julie: so much activity, and now it looks like a bidding war may be developing for pmc sierra. what is happening is that they had already agreed to be acquired. from sky works. now they are getting a competing bid from micro semi. they are bidding $11 city cents a share for a total deal value of $2.4 billion. that is a dollar more than sky works agreed-upon bid for pmc cr. you see the shares here are

arising about both offer prices which implies the market thinks someone else will come in, or that one of these companies will razor offer price in order to set off potentially a bidding war. one analyst at benchmark says maybe there will be a third suitor for pmc sierra that might step in. interesting thing that is developing. this is amid a backdrop of what has been a very busy time for semiconductor activity. we have seen production costs go up for semiconductors in the industry. we have seen a lot of consolidation not just among chipmakers, but among their clients. fewer clients, higher production costs. all of this has led to a lot of activity. we have also seen among other chipmakers, some rumored upon deals. sandisk is one that bloomberg news recently reported was up for sale. micron or western digital could be essential suitors for that company. also, a report in a korean

newspaper this morning saying that samsung is keeping a close eye on the sale profits of sandisk. maybe implying they could be interested, as well. other reports have said that samsung would not want to get involved. look at the bloomberg terminal at the function for what we have seen with semiconductor deals. this is a five-year graphic. this is the value we have seen and the deal count, numbers of deals is angry. this is today. these last three bars. we have seen a record year for semiconductor deals so far because of the element i talked about. there are still deals that have been yet -- have yet to be done with this latest crop of reported upon -- betty: a waterfall effect. julie, thank you so much. julie at the market does. a family-friendly horror movie tops the box office two weeks before halloween. goosebumps starring jack black took in $1 million in the u.s.

and canada, beating stephen spielberg's first own in three years, bridge of spies. africandrama about an warlord that has some theater chains shaking in their boots. >> who is responsible for this thing? >> what are they calling you? betty: on friday, netflix took aim at hollywood the ethical window by releasing "beast of no nation." we are joined by paul sweeney of bloomberg intelligence. paul, did you get a chance to watch this? paul: i didn't, but i will because i'm a netflix since writer. -- subscriber. this is a big deal for netflix. we have seen the make significant rogue running investments in original tv programming like house of cards. doing a theatrical release is a much bigger budget type of endeavor. a lot more competition.

this is another example of them stepping up their investment in original programming which some investors are concerned about because that is a big liability sitting on the balance sheet. betty: do we expect they were released numbers around this at all? paul: they have historically not. that has been part of the problem. next time they release earnings, it won't surprise anyone to say that any such rubber gains we have gained over the last three months are due in part to this, a new season of some of their original programming. for competitors in hollywood, they just don't know how many people are really watching these things because they are not leave neeson -- leo nielsen measured. netflix showss heavily people live stream, they will know the numbers. describe once again, it is important, the release windows. , remind usdows are when those are white they're so important. paul: if you are a hollywood studio and you invest $100 million to make a movie, you

want to make sure you maximize revenue. you release her movies in windows. runs fortheaters, that 16 weeks, then he goes to hbo or dvd. there are all of these windows movieyou can sell your indiscreet windows and get paid every step of the way. airlines, hbo's of the world, syndication, it ultimately makes it to free television on cbs. those windows have been shrinking because the studios are saying we invest so much money right up front that we want to try to ask myself revenue as quickly as possible. we want to release some of our theatrical films in shorter windows because there are so many new players like netflix that are willing to pay for our product but they want to make sure it is fresher than not. the entities that do not like the shrinking of this window are the theater owners. they want to keep the movie in their theater as long as possible to attract as many

people to come to their theater and buy popcorn and soda and all of that stuff. they are concerned that if the window is shrieking, maybe people will think i don't need to go to the theater because i can wait a few weeks and it will be out on dvd, or it will be on netflix. betty: or on my cable. paul: on hbo. the theater owners really work to try to preserve as long as a window in our theaters as possible so that they can maximize resume -- revenue. betty: is netflix far down the line for new releases? but their are, checkbook is -- they have opened up their checkbook over the last several years. they now represent a very viable player right along hbo. a lot of times, they will bid against hbo to get a movie. approximately 70 million users around the world on netflix. it is a huge viewership base. therefore, it allows netflix to

write a big check and get content, maybe better content sooner than they would have ordinarily done maybe just a few years ago. betty: likely, they have already been charging their subscribers, not giving free content, but youtube has been giving away free content. now they are trained to unveil a paid service. are they really going to get you to followers to pay for this content? paul: a remains to be seen. when it comes back to is the quality of the content. high quality content, not just movies and tv shows, but it looks like if we take a look at netflix, hulu, amazon prime, you also need original programming to attract consumers. this is youtube saying we already make -- google doesn't release the numbers -- $5 billion, $6 billion in advertising off of youtube area we have now seen the success of netflix, who. -- hulu, we want to think about getting into the suspension driven business model.

subscription. not only their own original content but maybe some from cbs and nbc. bloombergl sweeney of intelligence. much more ahead on "bloomberg market a," is joe biden running for president? will that announcement the imminent? the latest out of washington when we come back. ♪

♪ welcome back to bloomberg market day. will he or won't he? we may know as early as this week if joe biden is running for

president. let's get the latest out of washington. phil, we were talking about this last week. make this decision soon. is it going to be this week? phil: the roller coaster continues. one thing inside of -- people orbit,of joe biden's they say this is inside his head as well. he is not try to play around with the media. this is a difficult decision. here is what we know as it stands. the vice president has been leaning more towards a run in recent days despite a good debate performance from hillary content. part of that is because if you look at his natural consistencies -- constituencies, unions have in pushing him. in -- on top of that, if you look at the latest national poll, while hillary clinton has a clear lead at 45%, joe biden is still bringing in 18% as an undeclared candidate. there is space for him to move.

one interesting development over the last 15 minutes -- brendan boyle, a young commerce men from pennsylvania, close to the unions, just tweeted out he has a good source saying joe biden is going to get into the race. let the speculative and continued, but that he, this should be the week -- if he decides to go. betty: let's play doubles advocate and say that he -- devils advocate and sadie is not going to run. in the end he will not do it. that 80% of voters he is getting now, will they automatically go to the records and -- automatically go to hillary clinton? phil: bernie sanders is a different candidate then joe biden. joe biden is very much establishment whose views across the democratic platform aligned far more with hillary clinton then bernie sanders. what we see when we take joe biden out of the polling, hillary clinton benefits more than anybody else, no question. will be most interesting over the next couple of days is when

you look at what are the trigger points for a joe biden decision, one of the most interesting ones is there is a very big dinner in i went this weekend on saturday, all five current democratic candidate have committed to go to the dinner. there has always been an inkling that if he decides to get in, he would do an announcement and then show up at that dinner to great fanfare. if you want to look at things that might draw him into the race and why everybody thinks aside from deadlines that he has in terms of filing his candidacy, why people think this week is finally the week, that is one of the big trigger points, the dinner in iowa. betty: i think people are kind of not remembering as much that joe biden has tried to run for president before. he tried to run several times. what is so different this time around that people think he and she has a chance? when you talk to establishment democrats, that is the question the race. when you talk to people who are in 1988, his, he ran

he had to drop out after allegations that he was stealing words from other sources. allegations that ended up being true. got 1% of thely vote in iowa during the primary and had to drop out. why is it different this time? peoplethe key reasons thought there was an avenue for him is that he would tie himself very closely to president obama. he would be the third term for president obama. if you watched the debate last week, hillary clinton did that and more. she might as well have wrapped herself in one of president obama's jackets by the end of the debate. interns -- in terms of avenues joe biden has to run, not a lot available. 18% when he is not in the race was far better than he was ever doing in 1988 or 2008. that is one of the reasons why he is considering this run. betty: phil, on another note for hillary clinton, this is going to be a big week for her where the benghazi committee is meeting and conducting their questions for the first time on this, resuming this.

what are going to be the big vulnerabilities for hillary clinton? what should we be watching for? phil: the biggest vulnerability is that this committee has unearthed documents, e-mails, sourcing from witnesses that puts her in a bad position that she was not there for. she is up there stumbling and is clearly caught off guard. benghaziestified on two times in the past. by all accounts, she had strong testimony in those appearances for congress. this committee is under a lot of pressure from democrats, pretty much everybody saying that this 4.5 millionich cost dollars to run has become a partisan attack on hillary clinton. i would say there is more pressure on the committee chairman and the republican numbers of this committee to conduct a solid, fact-based hearing, then there is on hillary clinton right now. if hillary clinton has a bad day , there is no question about it.

this will be held against her going forward. betty: has he been saying this is one of the worst weeks of his life in preparing for this committee? phil: in an interview with politico conducted yesterday, he said that he also noted on cbs that he wished the other republicans in the conference would shut up. they are the reason this has become a political issue, not the investigation he has been conducting. betty: thank you so much. a lot and washington going on. still ahead on "bloomberg market a," a lot going on in the markets. we are joined from the white house following a meeting with the president.

betty: live from bloomberg world headquarters in midtown, manhattan, you are watching bloomberg market day. start with bloomberg first

word news. vonnie quinn has more from the news desk. vonnie: we begin with russia. it is finally admitting with the u.s. had already suspected. isour-week air war in syria trying to probably regime of president assad and not eradicate terror groups. russian officials having knowledge that to bloomberg news. they say the warplanes could last a year or more. now onto islamic states. the islamic state is launching an unprecedented media campaign. it is calling on palestinians to continue attacks on israeli soldiers and civilians. a video posted today on social media urges would be assailants to use any available means. this comes after weeks of attacks on israelis by palestinians. mexican police and military say they are closing in on the drug lord noun as el chapo. he embarrassed to the mexican government after a brazen escape

from a maximum security prison in july. officials say he is wanted and they have tracked him to the mountains where he may be hiding. a federal judge ruled today that louisiana must continue to divide medicaid funding to planned parenthood next these two more weeks. governor bobby jindal started a defunding process after several controversial videos allegedly portraying plan had does planned parenthood selling fetal tissue for profit. they have denied the allegations. that is a look at first word news right now. you can always find the latest news on bloomberg.com. betty: thank you so much, vonnie quinn at the news desk. european markets closing for the day. we have been fluctuating in the u.s.. for a look at the action overseas, i want to head to london when ryan chilcote has the latest. ryan: geographically speaking, a mixed picture today. as you can see, we have green and red. i want to talk about the red, the weakness. you see that. the u.k. has a lot of

commodities, a lot of basic resource companies listed here. that is exactly what anglo american is down. it is down by more than 7%. second worst-performing stock on the ftse 100 this year. glencore is the worst-performing stock so far this year. anglo american would get a lot more attention than it does now if it was not for glencore. what is going on is we will get a little more sense of what is going on with the company on thursday when we get a trading update from them. what we know is this. let me take you over here. they get about a third of all of their sales -- for the sale of metals. we know that metal sales are down right now. take a look at opera. this is the worst -- look at copper -- the worst performance in the last four weeks, down by almost 1.5%. copper is the most reliant metal, the most related

metal when it comes to economic indicators. we have the economic indicator from china earlier today. by% is what the economy grew . that is the second time -- only the second time since 2000 that we have seen less than 7% growth in china. that, obviously, took a little bit of the shine off of copper today. let me take you over to show you why some of the positives -- why we had green today. that is because we had a very nice results from the likes of -- they beat estimates on sales. in particular, they were able to say that the yogurt market in europe, which has been bored because europeans have not been eating yogurt, it is getting better. investors really like that news from one of the world's biggest yogurt makers. metro did not the estimates, they simply met them. that is good enough, particularly because the ceo

said they expected christmas else to be better than i thought. deutsche bank, the new ceo coming in. he is making a big strategy announcement. today, he said he is getting everybody ready, he is clearing the deck, the company is overnight announcing they will be replacing some of the predecessors, including the cohead of the investment bank. what hes seemed to like is doing, at least over the last several days. that said deutsche bank up higher, one of the biggest movers on the top 600. betty: ryan chilcote in london for us with the markets close in europe. for a look at how markets are trading, we have been bouncing around. abigailhas the life -- doolittle has the latest on the nasdaq. abigail: you are right about it being flat, boring trading over here. it seemed worst -- worthwhile to look at the best-performing stock and the worst. starting off with the best, looking at sandisk. there was a report saying that samsung is keeping a close eye

on the potential sale of sandisk. that seems to have investors somewhat excited with shares up nearly 3%. hiring an sandisk investment bank not so long ago to sell itself. micron and western digital were mentioned at the time. irrespective of who potentially businessisk, that same career report says that sandisk has a premium in the memory space. any m&a transaction is likely to generate a real premium. if we turn to the not so good, the red, when resorts. ticker why an end. . disappointing on the top line, n.o steve ngye macau is striking back saying that all casino operators need to follow its rules and that they demand clear understanding and full compliance from the casino operators.

apparently, investors do not like the news. shares are off more than 6%. that is all from here. back to you. betty: abigail doolittle at the news -- nasdaq. in an exquisite interview this with, jamie dimon spoke stephanie ruhle on bloomberg this morning on a number of issues, including fears of a china slowdown. jamie: china has had 20 years of undistracted growth, disrupted,d -- on never before seen. when they go to market reform, their enterprises have to have more transparency, more bond markets, collateral markets, reduce corruption. they will have bumps in the road. what happened in the summer is that they showed they have bumps in the road. the growth might not be 10%, it i be 6% or 7%. a $10 trillion economy is $600 billion of

growth. that is more than it was 15 years ago when it was 10% growth. $600 billion is more than most countries. ofy have $3.5 trillion foreign exchange reserves unencumbered. they are bright, move rapidly, they have huge issues, but they are dealing with their issues. we should work with them to work through their issues. i remind the american public, america has the greatest military defense ever designed called the atlantic -- in the erotic and pacific. we have for any neighbors in canada and mexico -- atlantic and pacific. china is surrounded by enemies. ,hina had a war with russia japan, philippines, north korea, pakistan, india. a don't have enough food, water, and energy. they have huge issues. it will be a long time before they overtake america in any shape or form.

i want to point out that when i speak about the american know terry, they often tell me the biggest threat to know terry donna mintz -- dominance is that the economy isn't strong. at the end of the day, the economy is what pays technology dominance. we should focus on making sure the economy is the best in the world. betty: that was jamie dimon early this morning on bloomberg . much more ahead in the next 20 minutes on "bloomberg market day." corporate shakeups at a critical time in yahoo!. who is coming, who is going? we will go through all of that in a moment. ♪

♪ betty: welcome back to the "bloomberg market day," i am betty liu. time for business flash and a look at the biggest business stories in the news right now. shares at morgan stanley are lower today. they posted their recorder earnings that missed estimates. in a conference call, they blamed the drop in revenue to bond trading. >> it is largely due to a challenging environment in which we were significantly impacted given our business, particularly our focus on credit and rates. betty: morgan stanley also lost money on private equity investments in china. google wants to take another look at its web-based document and spreadsheet app. the company says it's microsoft office users dumped the program. google will give them free use of apps for words for three

years. they will also pay for any transitioning costs for businesses. weight watchers is up more than 80% this money. , 10% stake in the company oprah winfrey also serves as a weight watchers advisor and will be on the program, as well. you can get more business news at bloomberg.com. in today's west coast wake up, jack and reese is departing the company where she had been chief develop an officer. she is heading to jack dorsey square. joining us to talk about the latest comings and goings at yahoo!, head of global technology covered at bloomberg, brad stone. it seems like breast has been more going than coming lately at yahoo!. how big of this is a hit for mercer mayer -- marissa mayer? brad: it is not good. , key partner or marissa mayer

a big architect of the big acquisitions, tumbler, flurry, bright role. some of those new technology companies we have heard about recently. most recently, she has been in charge of the al it -- alibaba spin off. and credibly important for yahoo!. entireible for its capital, almost. that is supposed to happen by the end of the year. it is probably mostly done, but the irs still has important rulings to come on it. now she is leaving foursquare. betty: that is the great point you raise. is the work finished? do the shareholders need to be worried about the alibaba spin off? need to course you worry about it. it is so strategic to the company. we don't know if it is finished. i think most of the work is. jackie and her team and many lawyers have been working on it for most of the ye. they are spinning it into an

independent company, it is most likely alibaba ends up buying those assets. we don't know. ,ackie reese at the helm of it investors were confident. betty: do we know if she left because of disagreements with leave becausehe the opportunity was so big with jack dorsey? brad: we don't quite know what the interpersonal relationships are. she has a long relationship with jack dorsey, that is probably no. most likely with the opportunity, square is about to go public. that is a big opportunity for her. lots of executives are leaving yahoo! right now. it is not a good time for the company. once alibaba is spun off, the remaining assets are not going to be valued very highly. decision to make. the turnaround has not really worked. what is yahoo!? there is still that accidental question hovering over the committee. -- existential.

up beingets likely end scooped up by verizon or at&t. betty: thank you so much, brad stone in san francisco for us. let's stay on yahoo! for a moment longer. my next guest doesn't hold back when it comes to critiquing yahoo! and marissa mayer's performance as a ceo. deemed theway company's board to be a lesson in poor governance. he declared that yahoo! should be euthanized and that marissa mayer is the most overpaid ceo in history. galloway gallo it -- joins us now. you like her? scott: i don't know her. i'm sure she is a wonderful person -- i just think the company is a soap opera that has gone on too long. most a great asset, the trafficked website in the world, someone should be able to monetize that. digital marketing in the last four years to $160 billion,

marissa has been able to explode the company from $5 billion to $4.9 billion. if you take out alibaba, the marketplace is saying yahoo! has no enterprise value. it is time to sell it to somebody else. betty: to whom? scott: brad was saying at&t, verizon, microsoft. a lot of people would like to take the most trafficked website in the world and give it a run. think even if they do, i brett raised a good point. what is yahoo! exactly? in your view, it is a search company? scott: it is a content company that tries to get revenue through advertising. that is a business model and structural decline. when you have eyeballs, you should be able to figure out how to monetize it. with the right leadership and right technology, yahoo! could be the world's largest television company. when a lot of people come to your site every day, that is an asset and you should be able to monetize that. bradbetty: they should be able o what youtube does, right? scott: a lot of different ways

to go. they have 4% of the total market share of mobile revenue. they have missed the boat. the team with the best players win here it they have been hemorrhaging talent for a long time. $150 million severance package, incredibly governance. someone should i realized somebody could walk out after a year with $115 million. it has gone on too long. in my opinion, it should be sold. betty: why do you think she has left already? why hasn't she been booted out? scott: i had a lot of trouble the last time i was asked the question. effectively, the company has had so many ceos that rather than replace new ceos, it will get sold. everyone is rooting for ms. mayer. she is compelling, people want her to win. there is no way over the course of the next 12 months that she is going to be let go for other

reasons. company -- this has come to bad news bears silicon valley. it has been the story of one blunder after another. to her credit, she made bold nose. those bold the news look like mistakes. the worst acquisition and technology, tumbler, purchased or the same price of instagram, instagram worth $1.7 billion in 2017, they never talk about tumbler. revolving door, to climbing revenues. this needs to go. betty: let's move on to another company. amazon you have not been nice to, either. i think you made this big presentation earlier this year where you said amazon was losing value. do you still feel that way? scott: i was wrong. i believe that. -- i blew that. betty: i thought that macy's and nordstrom would i do that because customers want a multidimensional extremes. has gone up stock

40%. amazon web services look like an amazing comedy. their value just surpassed walmart. amazon is on a roll. betty: did you have to call to apologize? scott: i got that one run. amazon -- betty: look at what happened to walmart, right>? scott: it is incredible. to think that amazon is worth more than one or. amazon has more revenue than walmart did in 1990. if they maintain their growth trajectory, they could be bigger than walmart in seven or nine years. amazon continues to deny every -- if i every skeptic. if you want to get invited to conference, be critical of amazon. everyone is looking for reasons to hate amazon and they keep proving all of the haters wrong. betty: you are a big lover of facebook. you said it was bigger than god, alah, and capitalism?

scott: the most successful idea in history. there are 1.1 billion submitted by catholics in numeral, 1.3 billion people with a relationship with facebook. it is the most successful thing in the history of mankind. betty: are you saying it is undefeatable? scott: everything at some point gets defeated. it has incredible momentum. that acquisition, instagram, they still are. member the criticism they got? it is worth somewhere between $40 billion. they still are. -- 0% ofisition is revenue in mobile three years ago, 74% now. company the most nimble in the well. they have redefined taxonomy, redefined our need to love and be loved and have relationships of people, and instant sure

thing. they are in unbelievable company. betty: you're not invested in it, right? 6 scott: i don't own facebook. betty: thank you -- good to see you, scott gallery. tech takeawayse tomorrow with yahoo! and we will be on that throughout the week. still ahead on "bloomberg market at 2:00ohn williams p.m. eastern time i hear on boomer television. you don't want to miss that interview. ♪

betty: it is time for today's options inside. we are approaching the top of the hour. let's look at how the major averages are performing at the moment. we see the mixed picture. that continues with the dow and s&p, little change to the nasdaq . joining me for today's options

inside is the derivative strategist at m km holdings. before we get into trade, let's talk for a moment about what we are seeing today. yes, we are seeing major revenues around. i have been looking at the oil trade, as well. we see oil resume selling. what is catching your eye in the options market? .> a quiet day what everyone is talking about is how resilient this market is. last up 8% since september. even today, futures oh -- lower overnight into the open. straight down in the u.s.. moves into the positive. -- s&p. grinding upward trajectory for u.s. equities. areinstitutional declines confused about what to do here with the market up a percent since late september. -- 8%. julie: what are you telling them to do? jim: we are cautious in the near term. something we talk about is the

duration. --far, this has been something interesting to us is that the back end of a shot, implied volatility lags realized volatility to the downside. realized volatility is the actual volatility of the market. the rearview mirror, if you will, looking at the standard deviation. implied volatility looks forward. it has a memory. it should embed, it does embed the trauma, the shop we went to in the august. that is why there is usually a spread where high volatility remains elevated to realize that that is not happening at this time of year. implied has led the way down. .hat raises a concern for us, we see some risk over the next several weeks of the s&p moving from the highs since 4%, 5%, at back to swoon before a sustained move back to 2100. julie: let's get to trade

because i want enough time. you are looking at brazil. even though brazil is already done so much. tell me the trade first and we will get into the rest. jim: a short-term trade. going out to november, we want to buy 22 strikes out right. paying up a little bit in time -- in terms of implied volatility. if our macro view is right, volatility is higher, equities lower. some of the worst performing sectors will lead the way down. is below itsewz moving average, lots of issues in brazil over the next several weeks it could lead to the downside. julie: thank you so much for the and km. more "bloomberg market day." ♪

>> welcome to the bloomberg market day. ♪

>> from bloomberg world headquarters in new york, good monday afternoon. alix: on this very cold monday in new york, here is what we are watching this hour. china's economic growth falling the that below 7% for the first time in six years. we will have the analysis. scarlet: does the rural area economy need more help? we will have a preview. alix: listen up star wars fans, tickets to the latest star wars film is making sure to give will be awakening early. they go on sale two months before the movie even hits the big screen. alix: let's check in with julie hyman.