for bloomberg, good afternoon, i am david gura. a cooling jobs market. john perez has a plan to thaw it . many students will graduate with a lot of debt and no job. el niño spreading mayhem around the world. farmers everywhere are worried about their crops. let's head to the markets desk with julie hyman. going we have this rally on today. a combination of factors helping matters here. mario draghi talking about being willing to put more stimulus into the economy. better than estimated economic data in the united states. earnings, seems as though the

balance has tipped to the positive side of that ledger today. well.ld mention volume as the three major averages, seeing a boost in volume versus the past 20 days. ats function looks individual groups in the s&p 500 where we are seeing higher volume. what's notable today's is the surgeon volume on health care shares. up overn those shares the 20 day average come industrial volume or present above the 20 day average. 40% above the 20 day average. for health care shares, it's not necessarily upward pressure. it is selling volume. after we got earnings from community health, which is having a ripple affect among other hospitals. the pulmonary earnings disappointing, raising some concerns about whether we are seeing a positive effect of health care reform rolloff for

some of these hospital systems. universal health services and hda also trading lower. the second-highest surgeon volume we are seeing in the industrials and a lot of that is buying volume. surge in volume. united rentals is up 8.5% after beating earnings. rental fees rising to the company. this is one of the stocks that has been battered by concerns over the global economy, concerns over the commodity market and rental equipment. shares higher by 7%. stanley black & decker beating, raising its forecast for the full-year. industrials continuing a strong streak for the group with the earnings coming up today. david: thank you very much. now come a check of the first would news -- bloomberg first word news. we are going to look at a

live picture of the hearing on capitol hill where committee numbers are preparing to reconvene at 2:15. this is the house benghazi committee. the chairman of that panel investigating the deadly 2012 attack on the u.s. compound in benghazi, libya said hillary clinton must explain the government's actions before and after the incident. most anticipated u.s. congressional appearances in years, mrs. clinton accepted response ability for what happened on her watch. .> i took responsibility as part of that, before it left office, i launched reforms to better protect our people in the field. and help reduce the chances of another tragedy happening in the future. the: mrs. clinton told panel the u.s. needs to permits to advance america's interests around the world, even in dangerous places. perfect security can never be achieved.

president obama is meeting today with pakistan's prime minister with nuclear weaponry at the top of the discussion. the u.s. will offer financial assistance to pakistan in exchange for scaling back its program. pakistan wants to see revived peace talks between the afghan government and the taliban. a military operation in northern captives whordish face mass execution by islamic state militants. one u.s. soldier died in the operation. the effort was carried out overnight west of -- that's a look at our first word is. -- first word is pretty can find the latest on -- first word news. you can find the latest on bloomberg.com. david: the job market with steady improvement. 5.1%. cooled and wages

remain stagnant. john perez is standing by with pimm fox at bloomberg radio for exclusive interview. pimm: here to tell us more about the new guidelines for economic , we have the secretary .f labor, john perez thank you for being here. you arenew york for announcement having to do with a new way of framing guidelines for those pension plans that come under orissa. john: i've spent a lot of time in recent months on this job talking to wall street investors, talking to people who manage pension funds, talking to

union leaders who had big pension funds, talking to people -- people with money. the question presented is this. 2015 possible in the year four orissa plans to invest in projects that serve the common good while maintaining the stationary obligation that is of the plan. you can do both. our guidance -- the department of labor plays an important role in setting the ground rules for what the plans can do. for your audience, there are trillions of dollars in funds that can be invested in these plans. you might have a 401(k) plan. this is an example of what can

your plan administrator do with that. that we issued back in 1994, we had a simple rule. all things equal, you can take --o account environmental all these factors. pimm: environmental and governance. john: exactly. in 2008 come at the end of the bush administration, new guidance was issued that violated the basic rule of if it ain't broke, don't fix it. world008, you saw this absolutely explode. more and more companies, mainstream wall street investment, people across the world who were learning how to do this and the data analytics markable -- not only was the capacity to conduct

the rigorous review evolving and , theving, but the number demand for these products was evolving and improving. the train was leaving the station with great vigor. in 2008, the department of labor had to put the brakes on the train by saying you cannot do this. there was new guidance issued. pimm: you've got the train going again. john: we are getting the train going again. we are going back to the 1994 guidance. it was not broken. it was not necessary to fix it. we are sending a message today that you still have a paramount judiciary obligation. you can take into account these other factors. pimm: the tie-breaker. explain how this tie-breaker works having to do with social impact. john: let's say you're looking to invest in green funds. , theyreen funds are good

have good performance and some green funds have bad performance. what you have to do is your due diligence. analytics andata the due diligence that you were obligated to do, there is a conclusion that this fund is as good as another nongreen fund. all things being equal, you can take that into account. the old guidance put a thumb on the scale in what we are saying, these bsg fonts don't have cooties anymore. sg funds don't have cooties anymore. that will unlock tremendous opportunity. pimm: i want to turn your ofention to concerns regulating financial advisors. senator warren and the president and a bunch of democrats, they want those fiduciary rules

changed. i know that is an open comment period. john: this is a different issue. this issue is about the fact in the leave it to beaver world, their parents and grandparents working 30 years and you got a party and a pension. somebody else took care of it. have to make decisions about how to invest that hard-earned savings. we have a proposed rule out there that says financial advisors need to behave like lawyers and doctors. they have to put your mess -- best interests first. the majority of people who provide financial advice don't have an obligation to put their client's best interests first. pimm: the pushback has been about the regulations. a lot of people say this will

cost more money and make it more difficult for middle-class people to have access to financial instruments. john: we've gotten a lot of comments. from people in the industry who were already fiduciaries who say those folks in the industry saying they are no longer going to play under this new rule, send them to me. i'm already a fiduciary and of doing good and i'm doing well. is closed. period we are taking this comments into account as we proceed. pimm: i want to get your thoughts on the job market right now and underemployment. john: we were at nearly 10% early in the president's term. we are now down to 5.1%. the unfinished business is to make sure the wind -- to share prosperity for all. pimm: thank you for spending time with us. john perez, the secretary of labor. david: coming up in the next 20

minutes, deep in debt and jobless. schooly medical graduates are being turned away at hospitals. alphabet reports earnings after the bell. is there a dividend on the way? ♪

david: welcome back to the bloomberg market day. a big focus today has been on valeant. julie hyman has a check on the

other companies in that sector. julie: let's take a look at valeant first. been faced by these allegations from a short seller at citrine research. we heard from him earlier today. dramatic comments on what he says are the business practices of the company. he is just raising questions at this point. shares down another 18% today. they started to climb a bit before the interview and then took another leg lower. this on top of an 18% decline yesterday as well. the stock fell as much as 40% yesterday. a lot of questions about specialty pharma, how these businesses work. other specialty pharma companies decline continuing to be dragged down by valeant. concerns about how the channels through which they sell their products -- many countries have said their practices are different than that of valeant.

concerned about their pricing practices as well. they buy certain drugs and then raise the prices dramatically. today,them down again related to what's going on with valeant. i've been bringing up this chart periodically, talking about these stories. the context here, these stocks are pretty pricey. look at the biotech stocks. despite the decline, treating at double the valuation of the s&p 500. you have fundamental questions, fundamental news. you have a valuation issue. conference --s mario draghi will investigate fresh stimulus measures to boost the economy before the end of the year. mario: the degree of monetary policy accommodation will need to be re-examined at

our december monetary policy meeting. when the new euro system staff microeconomic projections will be available. let me have you react to that announcement today. leaving the door open for more quantitative easing. >> very interesting. the same barriers ecb is basing the same as the central bank in the u.s. love's growth, nonexistent inflation and an outlook that is falling alone the forecast. -- slow growth, nonexistent inflation. leaving the door open seems to be the name of the game in this case. the federal reserve is starting to back away from the 2013 rate increase. -- 2015 rate increase. david: they were thinking of raising rates. what is the conversation going to be like in the next few months? >> they will be watching the

data closely. all the central bankers say they are not independent. they opened the door for additional stimulus but they will base that on the data. if the data continues to come in on par with what we've seen, we will see the quantitative easing program and as expected in september of next year. if we see inflation take a step in the wrong direction, further downward pressure on prices, that could open the door for additional stimulus. their capital's will be what happens with the fed, when they will raise rates. between that last meeting -- there was a report that was lackluster. what are you thinking rate wise? >> we maintain our long-standing view that the fed will remain on the sideline until the second quarter of 2016. were not ableers to justify a rate increase at this meeting. now, against the backdrop of further weakness in hiring,

manufacturing falling to a breakeven level we see continued decline in the service sector, it will be increasingly difficult for committee members to make the argument that they are justified in raising rates in october were by the end of the year. it's pretty clear about the economy has taken a step in the wrong direction away from the committee's longer-term outlook. david: let me ask you about housing. we got new data about the housing market today. to what degree are fed policymakers looking at that? how does the housing market fit into that? >> they are certainly watching the housing market. silver linings they 22 were the label market and housing. with the recent decline in the labor market, we expect that language to be softened. thexpect them to heighten key silver lining which continues to be the housing market. offsetting -- putting us back on that upward factory highlights the silver

lining. thank you very much. crumptonover to mark for the latest on the benghazi hearing. mark: thank you very much. that committee just reconvening at this hour. there were some fireworks a little more than an hour ago, the chairman of the committee and the ranking member going at it about the veracity of some of the e-mails that were exchanged between sidney blumenthal and mrs. clinton. you can continue to watch the hearing at bloomberg.com/live. of a medicalahead school applications at an all-time high. what will happen when the students graduate? are there enough residencies for all those doctors? ♪

david: welcome back to the bloomberg market day. the number of students enrolling in medical schools has increased 25% since 2002. applications last year were up by 6%, double the percentage increase from the year before. for more on what this means for the future of health care in the u.s., let's bring in the -- what hass accounted for this rise? >> there has been in credibly energized response from young students interested in going to medical school. they know they are needed. we have a position shortage coming down the line. the aging population. they are excited about the changes going on in medical education. we've been revamping the curriculum to really focus on patient centered care.

the students are embracing the new technology we are using. factors a number of that have lent themselves to this great response. david: with this changes, are there enough jobs for them? there are graduates every year who apply for matching residencies you don't get them. there is a big deficit there. >> that's a challenge. the job is not an issue. there's lots of recruitment firms looking for positions. the challenge has been no physician can practice medicine and go take care of their patients and communities unless they do a residency training program first. since 19 and seven, congress has -- 1977,al support congress has capped federal support. enoughow, there are

positions for all graduating u.s. and the students. the challenge is a few years out. -- md students. many were unable to complete the training and will have to try again next year. david: what becomes of the students who don't match? >> in most cases, they apply again. in many cases, they are successful. our medical schools use that opportunity to give them time to do research or time to gain additional degrees or have some other educational opportunity that will improve their chances of getting into a residency spot the next year. what is the most surprising thing about the numbers today? the data points that we look at is the diversity of the workforce. we are not where we need to be.

when encouraging sign is that this year, the number of african-americans enrolling has gone up by 11%. letting us come hispanics up by 7%. -- latinos come hispanics come up by 7%. ahead, weather warnings. how el niño could affect commodity prices. the benghazi hearing continues. hillary clinton has been there since 10:00 this morning. we will continue to watch it here on the bloomberg market day. >> attack the same day he was denied a request for more security. ♪

david: from bloomberg world headquarters in new york, this is the bloomberg market day. i am david gura.

mark: hillary clinton is on capitol hill today firmly defending her record before and during the fatal 2012 attack on the u.s. diplomatic compound in benghazi, libya. detractors have long question the former secretary of state about security arrangements at the facility from a line of inquiry that reemerged today. >> those requests and issues related to security were rightly handled by the security professionals in the department. i did not see no, i did not approve them. the u.s. needs diplomats to advance america's interests around the world come even in dangerous places. for more on that story, phil mattingly joins me now from washington. i mentioned earlier to our audience that there was a testy exchange that came earlier today as the first round of questioning was about to come to an end between the committee chairman trey gowdy of south

carolina and the raking member, elijah cummings of maryland. what else,s about procedure. releasing the transcripts of the interview with sidney blumenthal. that is becoming huge part of this hearing. he is an informal adviser to hillary clinton, had a long relationship with the clinton family. he was sending her hundreds of e-mails. with the gist of his argument was, there's been a lot of talk about sidney blumenthal come his e-mails. his behind closed door in her desk closed -- behind closed was aboutrview whether or not there would be a vote to release this transcripts. those transcripts.

mark: the california congressman kevin mccarthy said on fox news that the hearings committee investigations had forced mrs. clinton's hand in a political sense because her poll numbers have taken a hit. republicans were quick to point out that this not about politics. they say they want to get to the truth. i'm assuming democrats are still not buying that. phil: not buying that at all kevin mccarthy gave hillary to fire awayition at this hearing right now. trey gowdy started the hearing today saying this has nothing to do with hillary clinton. this is about the attack. throughout this hearing, we heard over and over again from democrats and their questions to hillary clinton give her the upcoming to play herself or defend herself. a lot of times, they're just coming on and challenging trey gowdy.

regardless of what trey gowdy hearing tots this become a is a very political hearing and democrats are more than happy to fight on the ground. k: phil, thank you very much. that's a look at a first release is right now. you can find the latest on bloomberg.com. david: let's take a look at commodity movers as trade starts to settle. sugar is rising 20 month high while coco and coffee futures have fallen. prices may get a real jolt this year because of the weather phenomenon known as el niño. el niño is back in a big way. i'm joined by brian sullivan in boston. and marvin perez. brian, a reminder of what el niño is. what is it, exactly? franklin when the equatorial

brian: whens up -- the equatorial pacific warms up and it sets off a chain reaction in the atmosphere when the surface of the ocean becomes coupled and it changes weather patterns all over the world. there will not be a bigger event this year in terms of global weather than el niño. david: what do we know about how big it will be the syriac o'brien: right now, it's in the -- what do we know about how big it will be a? brian: it will peak in a couple of months. right now, it's definitely in the top three. it could be one of the biggest. david: i'm curious about how people try to plan ahead when they know it's an el niño year. --many areas like brazil waterried to regulate

from rainfall -- accumulate water from rainfall. improving your edition systems when possible. david: we have not felt the --ects in the north america felt the effects yet in north america. >> sugar prices are up 13%. investors have been list for the past few weeks. have been very worried about el niño. with the erratic pattern, brazil is having diminishing yields. there is growing concern that australia will be hit with dryness. david: they are talking about how erratic this can be.

i'm curious about the degree to which forecasters can predict these el niño phenomenon. >> they are not always identical. every el niño is a bit different. they have certain signals. in the northeast, there is not a good signal as to what happens during the wintertime. we may end up with a mild winter. across the southern united states, it's almost certainly that there will be a lot of rain. it may be a milder winter. david: you talk to somebody in colorado, a federal worker who works on forecasts picked with enough effort from el niño can be managed. how do you manage something like this? >> it depends. it can change the types of crops that you plant. you can make room in reservoirs to collect the extra rent. a lot of rain will fall on southern california. -- to collect the extra rain.

if you make room in the reservoirs to collect that rain, you may be able to grab some of this and hold onto it until you need it in the summertime. better atrs gotten reacting to this? >> as much as they can. in cocoa market, we had the -- there's only so much they can do. already come of world is dealing with a deficit of code who supplies -- cocoa supplies. in ghana, they will have the driest growing period in 35 years. this is increasing concern that supplies will be reduced. demand has continued subsiding. which in columbia

typically enjoys a good rainfall has had a drop this year. partly contributed to el niño. half of the coffee growers have been affected. coffeeks prefers the grown in the country. david: thank you very much. brian sullivan in boston. drum onead, political capitol hill continues as hillary clinton testifies on benghazi. stay with us. that is not a true statement, is it? ♪

david: welcome back to the bloomberg market day. time for a bloomberg business

flash with the biggest business stories in the news right now. another rough day for shares of valeant pharmaceuticals. an analyst who has long advised buying the stock has downgraded -- cintron citing of. used -- accused valeant inflating sales. andrew was more confused today than he was yesterday. >> based upon the available public information that's out there on the publicly available information, when i can show shared ownership of something and can show an invoice going from one antedate would asked -- one entity to the next, that's what we call a lot of smoke. if you don't want to say there's fire, there is a smoke with valeant last week and the smoke keeps increasing on a daily basis. david: he had a financial position in valeant,

but did not want to give details. they will hold an investor call on monday. u.s. 80 today still don't know the root cause of takata's airbag ruptures. a people have died and 100 injured by the exploding airbags. -- eight people have died. you can get more business news at bloomberg.com. let's head back to the markets desk were julie hyman has the latest. news breaking on gmc. julie: retailer of health supplements -- usa today sing the company sold spiked nutritional supplements. we saw the shares react to this, down 13.5%. we will keep looking into those reports and find out more details for you. just wanted to point out the stock reaction we are seeing based on this report that gnc sold spiked nutritional supplements.

world of fitness, let's look at his movers related to this. under armour is one of the. .hares down 7% the company gave a forecast for the fourth quarter with tricking profit margins. it's a question of the expectations that have been built into under armour. -- with shrinking profit margins. the company said revenue will go up 25% this quarter. it's not as though that is a week figure. the concern is also about these profit margins. pushes more into the footwear market which tends to have lower margins, that could affect the business. outside of under armour, looking at lulu lemon and nike. nike stock should be sold at a recent rally. lulu lemon making a bit of a management change. the company getting rid of its chief product officer in sringing in lee as it

creative director. with someoming out numbers that were disappointing to investors. the stock down 17%. it is not operate or of hunting, fishing, camping stores. operator of hunting, fishing, camping stores. we have not had that cold of a fall up until now. that appears to have been a source of weakness for cabelas. david: we can blame it on el niño. hillary clinton is being questioned by members of the house select committee on benghazi. the chairman of the panel told the former secretary of state you must account for government actions before and after profitable mass were killed and 2012. after four diplomats were killed in 2012. we will never prevent every

act of terrorism or achieve perfect security. we inevitably must accept a level of risk to protect our country and advance our interests and values. david: let me bring in mark halperin joining us from kansas city. this is something that was very highly anticipated. twitter keeps track. at the height today at 1:20 eastern time from 2400 benghazi related tweets being sent per minute. talk to me about what hillary clinton has said so far. a lot of people paying attention to her opening statement. mark: she understands a part of this is the stagecraft. not leaving behind any sound bite that will be used in campaign ads. she's been very measured. the republican questioners have

gotten a bit hot. none of them can produce the there havemoment -- been some questioning -- her e-mails as part of this investigation. there have been some questions there as well. no big news out of the hearing so far. you follow this closely, some interesting exchanges. in terms of helping the country understand benghazi or understand hillary clinton's e-mail practices, not much has happened yet. david: this was an opportunity for hillary clinton to address that controversy. let's hear what she had to say. hillary clinton: i did not conduct most of the business that i did on behalf of our country on e-mail. i conducted it in meetings, i memos, aive amounts of great deal of classified information. i made a lot of secure phone calls, i was in and out of the

white house all the time. there were a lot of things that happened that i was aware of and that i was reacting to. officewere to be in my in the state department, i did not have a computer, i did not do the vast majority of my work on e-mail. david: there have been many moments in which a democratic congressman gives hillary clinton the chance to explain herself. in the sanchez brought up a clip -- singh she got all of her intelligence from sidney blumenthal. -- a gain she got all of her intelligence from sidney blumenthal. you think about your classic investigative hearings could those were bipartisan. you had the opposition already tandem to search for

the truth. in this case, the democrats are there to play defense for hillary clinton. unique --e most heated exchanges have been between -- they are using their time to let her come back and address things that they know she wants to address. momentum is important. because of the time limits on the republicans, their time runs out and it gets back to democrats. there is a stage aspect of it where the democrats are working very much hand in glove with hillary clinton and her advisers to slow down the hearing, change the focus and let her say her on things were republicans have created a distortion or made some points. david: thank you, mark halperin. up, hitting all the angles on one of the biggest

tech giants and its earnings. alphabet. we'll break down what to look for in the report and the latest rollout of its subsidiary, youtube ♪. ♪ ♪

david: welcome back to the bloomberg market day. on wednesday, youtube rolled out a new service called youtube red. can it catch on and maybe tackle netflix? talk about the calculus here. why is youtube getting into this game? >> visibly see the success at netflix. netflix has 70 million subscribers around the world paying for content. youtube has been a fantastic business for google. they don't disclose numbers but the market, five or $6 billion in revenue at youtube. it is all advertising revenue. this is one of their first steps

into thinking about creating a service and product that people will potentially pay for. david: how annoying are those ads to people? there are so many ways to skip ads these days. online, there's ways to click around them, there is an block. -- add block. it's a challenge in the digital world. the reality is, it is online video advertising, one of the passes growing areas of internet advertising. the dollars are there and the biggest beneficiary of that trend has been youtube and google. david: any risk that youtube is getting into this too late? >> probably know. nobody has deeper pockets than google. if you want to get content, hollywood will sell you the content. if you listen to les moonves

said cbs, that is his mantra, we will provide our content to anybody who pays us. that's pretty consistent in hollywood. they strike a lot of nonexclusive deals to do the hollywood studios so they can make their content available on as many platforms as needed. i don't think google will go down that route initially. they will try to maximize the content they already have and in-home content. they will have to roll out the checkbook and put out some money for some content that people will pay for. david: i want to bring in emily chang. alphabet earnings coming out, talking about youtube. what are we looking forward to? emily: this is the first quarter under the official company come alphabet. the next quarter is when they will report as google and everything else. they will pull out all the other things like nest and google n exus.

that, we are expecting alphabet, we will hear from the seo. -- ceo. this will be a bit of a debut for the new ceo. we are really interested in what's going on with ads and desktop versus mobile strategy. we've long been concerned about how well google is doing in mobile advertising. facebook is winning that game, but google has made some changes to its mobile ad strategy. they are doing as in the google place store. -- google play store. david: when we talk about this new service that youtube is launching, what are the obstacles or challenges they face? and like on facebook is dominating and video and mobile video. : facebook is driving so

much engagement when it comes to video. youtube is playing a bit of ketchup. is changingndscape so quickly and genetically come it's difficult to say that youtube is behind when youtube is still youtube. it will be interesting to see if they are seeing engagement there. the ceo has made a lot of dramatic changes. we will see those are to play out. david: talk about the rumors of dividends. , made ceo is indicated some positive indications that she may be open to returning some cash to shareholders. google has $70 billion in cash. they will have $100 billion in cash. there's a lot of pressure from investors for google to do some more shareholder friendly things.

she is coming from a completely different background. it has not been something that they've been paying attention to. she is the person they brought in to control expenses. there is a possibility that she can get that give these things serious consideration. david: emily chang will have a lot more on bloomberg west. she will be joined by the ceo of acknowledged to break down those numbers. ♪ ♪

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welcome to bloomberg "market day." i am betty liu right here from bloomberg world headquarters. we have a lot ahead for you starting with the global stock rally building in the u.s.. strong earnings add to the gains after mario draghi hence more stimulus may be on the way. in shares get hit again after the man says he thinks valiant is doing something illegal. hillary clinton is still testifying before a house committee about the 2012 attacks against u.s. personnel in benghazi, libya. she accepted responsibility for the attack but it insists that she worked hard afterwards to protect the department workers.