from bloomberg world headquarters in new york, good afternoon, i'm scarlet fu. the federal reserve is meeting as we speak. when will they finally be ready to tighten? t-mobile missing third-quarter earnings estimates. uncarriercarrier -- underperforming? growing tensions in the high seas between the u.s. and china. first, we want to head to the markets desk where julie hyman has the latest. the lack of action and rack of like of direction. julie: there's a tiny bit of suspense. factors.of different

a bit of a waiting game on the worse thanomic data estimated on durable goods. have almost all of these groups in the red, energy, telecoms come industrials, materials. the green group is really worth highlighting. that is health care. a broad-based gain for the health care group today. it is not so much the health care equipment side of things coming disbarment, biotech, life-sciences. this is on the strength of earnings. pfizer out with earnings that beat estimates. doing well for the company. those shares trading higher. the company has been trying to

develop new cancer treatments and its oncology drug is doing well. edwards life-sciences raising its forecast for the fourth time this year. his newest device that replaces the damaged aortic valve was approved midway through the year. it has seen a lot of demand for that particular product. scarlet: health care seems to be doing well. the rest of the market is down all around. what is dragging everything lower? julie: energy is quite a large drag on the group today. .arnings from these companies we are seeing what's happening with crude. natural gas has turned around. it had touched below two dollars . that was causing a lot of concern. crude remains lower by more than 2%. oil after trying to stage a recovery recently is now down about 13%. that has been dragging on the energy complex.

there's a lot of disappointing earnings from high profile pic cap companies. -- mid-cap companies. earnings that missed estimates because of lower demand for u.s. ground shipment. higher financials saying claims related to auto's -- a combination of energy and the supporting earnings. -- disappointing earnings. scarlet: lots of red. julie hyman, thank you so much. we want to get to the first word is. mark crumpton has that. mark: retiring house speaker john boehner is pushing congress to approve a two-year budget deal and a raising of the debt limit before he leaves office. the agreement was reached last night following closed-door negotiations between the speaker and the white house.

mr. weiner told reporters he may need democratic votes to get the boehner.sed -- mr. wei this is a good deal. for our troops, for our taxpayers and for the american people. -it's possible the house could vote on the measure on wednesday. mark: another part of that budget deal, the united states plans to sell millions of barrels of oil from the strategic reserve. 8% of the government's holdings. the oil is stored in four sites along the gulf of mexico. rescue teams in afghanistan and pakistan trying to reach remote areas struck by that deadly earthquake. 300 people were killed in the magnitude 7.5 quake. the death toll is likely to keep rising. francois hollande another officials page review to the

individuals killed in that collision last week. the nation was shaken by the disaster. most of the victims were retirees on a trip. and hisk driver three-year-old son were among those killed. china announcing the u.s. is sending ships through waters it claims. the u.s. does not recognize the artificial islands as sovereign territory. china and the philippines have competing claims in the island chain. that is a look at our first word news right now. you can find the latest on bloomberg.com. scarlet: thank you so much, mark crumpton. the federal reserve began its two-day meeting and the latest -- thatymakers likelihood has used to 32%.

we just showed the fed funds futures rate and how was traders don't expect any kind of action this year. yet, the majority of economists forecast a rate hike in december. why the disconnect? ethan: is because economists are looking at the labor market, arguing that the fed is getting very close to rate hike. i don't think any of us have a strong conviction -- but that signals have been very ambiguous. the fed has lost credibility. one reason they are pricing in such a low probability of a move is the sentiment that the fed will never go. that is a bit overdone. i think they will hike in december.

it is a pretty close call. othert: yet, we see central banks around the world going ahead with their action. the ecb pledging to do more. the bank of china cutting interest rates. we are looking ahead to bank of japan later on this week. easing make it more or less likely that the fed will move? scarlet: when the ecb announces qe further out in the future, it helps risk assets. one of the reasons the u.s. equity markets have improved. when foreign banks cut rates, ,hey will strengthen the dollar but most estimates suggest this is a net good for the was economy because the rally in risk assets more than outweighs the negative of a stronger

dollar. scarlet: of all the data the fed considering,ng and what do you think is the single most concerning echo ethan: right now, the biggest worry is that we had a step down in job growth. job growth is 200,000 month. onlyast two months, 140,000. that is still healthy, but if we are taking another notch lower and drop to 1000 or less, that would mean we are no longer making progress. -- 100,000 or less. that could put the fed on hold for a long time. we cannot overstate the importance of the next two jobs reports. we think jobs will pick up a bit, but a slow further from here, it takes the fed off the table. scarlet: crude oil prices down for a 10th day.

we've seen what implications -- jobs on investment in the energy sector have come down as well. a lagging indicator when you look at the investment machinery. does that single many more firings in the energy sector? >> you've got ongoing pressure on jobs in the energy and energy related industries. cutting 10,000 jobs a month. the outset is that americans are joining this enjoying incredibly cheap gasoline prices. consumer spending should respond. it's a give and take here in terms of the impact of low oil. scarlet: the cheap gas prices does not lead to any inflation while the jobs picture in the energy sector puts more pressure on the overall labor market. ethan: right.

the weakness in the mining sector is one of the big headwinds for the was economy. quite good.look the service sector which is 80% of the economy looks quite healthy. no question that we have a major recession in the mining industry and very weak manufacturing sector. that's what is grating the hesitation for the bet. -- for the fed. scarlet: you have a great chart that shows the industrial sector and its percentage of gdp. that on theaghi is economy even acids influence has to minister overtime? -- has diminished over time? jobsu can see it in the numbers, there's been almost no growth in the last couple of years. it is subtracting from the economy there. the service sector can make up for it.

very strong growth in services. that makes a lot of sense because the problems in the economy are not domestic. the domestic economy looks healthy. these global forces mainly affect the goods and mining sectors. scarlet: we will get apple earnings later today. a lot of people saying this will be a good prophecy for the aspirational consumer. what do you hope to learn from the latest results about the state of the global consumer? >> we are watching this very closely. particularly with going on in china. we know the chinese government's track to ship their economy away from being dependent on exports in favor of a services economy. we can see some evidence of that in the deed already. it has been a rocky transition. -- in the data already. i'm encouraged when i hear

companies report that their consumer products are still doing well. right now, it is a very mixed bag. some committees are optimistic, others are not. faith, weey to having need to see the consumer hang in there and china. -- in china. scarlet: especially for these multinational companies that have shifted their growth targets from the u.s. to a market that shows prospects of double-digit growth. china is not quite the engine of growth it was 10 years ago. they are no longer growing at double-digit rates. this is an economy that can still achieve six or 7% growth in think and work their way through some of these transition problems. -- 6% or 7% growth if they can work their way through some of these transition problems. it's important that the chinese

economy picks up. it could take a while before we see better growth of china -- out of china. he's not looking for the fed to do anything this time around. it possibly could move in december. coming up in the next 20 minutes , after t-mobile earnings fell short of estimates, we will hear from the ceo himself, john legere. the nation's largest recycler says it sagging commodity prices are taking a toll on his profits. a big day for big pharma. pfizer reporting earnings that beat analyst estimates. what is next for the sector? ♪

scarlet: welcome back to the bloomberg market day. when company we are keeping an eye on his t-mobile, shares falling after the third quarter results missed estimates. the 10th straight quarter in which it has added more than one million customers. emily chang is in san francisco right now and destroyed by john live from john legere the nasdaq. emily: thank you so much for joining us from your new home at the nasdaq. let's talk about earnings. , adding missed on eps 2.3 million customers. for the investors who want to see profit growth, what you have

to say to them? predictcannot day-to-day stock prices. what we announced today from the nasdaq was one of the most complete quarters, completely in line with what we've been trying to do, connect 2.3 million customers. the fifth quarter in a row over one million. as many as at&t lost this dsarter, 595,000 prepaid ad and in 18 basis point decline -- 42% increase year-over-year in of 411d cash flow million which was tremendous results. i really pleased with the overall result of the company.

emily: what about profit? there's analysts out there saying this is the first disappointment from t-mobile in a while. -- i analysts expectations think things will settle down. we actually increased the amount of growth that we forecast for this year and kept our guidance the same. our service revenue growth is 11% year-over-year. there is a short-term issue where people have misinterpreted last quarters tax rate as a jump up point and it has normalized -- the net income in the earnings per share of $.15 is directly in line with what we expect to do and continue to do. emily: this talk about these 2.3 million new customers. where are they coming from?

at&t? john: one of the big things we all track is paying ratios. one.3, we were 1.8 to verizon.nst risi we were getting against all of them. 10 quarters in a row positive against industry. over twoters in a row to one with sprint. in the last seven days, it's up one.921 at&t up to 2.25 to we continue to take customers from everybody. at&t was the largest donator. emily: i am a new customer. i am a new t-mobile customer. i came from verizon. three weeks into my new t-mobile

hackedhip, my data was experibile via an. what went wrong there? what are you going to do about it that's different from what every other ceo has done? john: i think i have already done something different than any ceo has ever done. the issue that took place at n, there was a breach and 50 million people -- 15 million people were potentially impacted. we immediately -- and linktone are using potentially as and maybe i was not hacked? john: i think you got a letter from experian explaining that you are one of 15 million customers whose data may have been impacted and it's best to take all percussion and join up

with the free service of credit monitoring that we offer. come all customers have been notified and that is the most important piece. immediately, openly and honestly tell everybody that situation. these kinds of issues are a major issue in the u.s. and worldwide. the leadership and transparency is one. thank you for being a customer. as a customer, want to tell you that i announced today, we now have 300 billion plots of lte. thatillion square miles were not lte last year will be this year, including one or 75 million already -- 175 million already -- i hope you and everybody else are seeing a increase inhange in coverage and service.

understand it, there are victims -- systems that may take time to upgrade. are you working on upgrading to any of those systems internally that might prevent another breach down the line? there is ank significant over some publication -- this was a database maintained by a subsidiary of experian with caution --cos tremendous caution applied by us. we as well as every other major company in the world are investing heavily in all forms of protection against these kinds of things ever happening again. --re's a lot of legislation it's a major issue and we are taking tremendous caution to protect customers such as yourself.

emily: let's talk about the network. the network is good enough for me. i do still have some problems with it, some dropped calls. depending on where i am. what is in it for me in terms of the longer-term? a year from now, two years from now? how much better is the network going to be? john: i don't want to assess whether people are hanging up on you, whether or not they are dropped calls. this year, with one million , you canles of lte expect coverage everywhere, we have quarter 25 million so far come 190 million by the end of we have 100 75 million so far, 190 million by the end of the. it is 10 times stronger in buildings. we've signed four or agreements for 20 million more plots of lte . we've made our intent to

participate in the low-end option in q1 known. continued deployment of low bounce back from -- low band spectrum and broader coverage, you can expect to have what you already have, the fastest 4g lte in the u.s. but also the fastest-growing network in the u.s. that is my commitment to you and rest of the country. emily: good to know. john legere at the nasdaq. scarlet, back to you. scarlet: thank you, emily chang. emily chang with john legere. we want to head back to the markets desk julie hyman has a check on other company movers. t-mobile down 6%. fore: a lot bigger decline grub hub, the operator of food delivery websites. shares to 24%, huge decline after earnings and sales missed estimates.

the company has been a rapid grower but that growth sales -- sales growth is slowing down. it is trading below its ipo price. over the past year and a half, $26 a share, trading below that a couple of occasions, now dropping below it once again tonight. consol energy and focus today. we had natural gas prices falling, rebounding now. a muchpany reporting wider loss than had been estimated. $.28 versus the three some loss that analysts had been looking loss thatee sent analysts had been looking for. coal miners in general have not been doing well at all.

focus,s is another in the maker of truck engines coming up with your profit that trailed analyst estimates. weakening demand for those engines outside of the united states. they are cutting jobs to save costs. 2000 jobs, seeming to hundred million dollars here -- saving $200 million a year. we have more coming up on the bloomberg market day. one man's trash is another man's treasure. ♪ the only way to get better is to challenge yourself,

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we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. scarlet: from bloomberg world headquarters in new york, looking back to the bloomberg market day. let's kick you off with the headlines on the first were news this afternoon.

we check in with mark crumpton. mark: in a few days, officials in jordan and israel hope to have surveillance cameras mounted around and inside the shrine at the center of recent violence. the goal is to provide live streaming of the compound revered by jews and muslims. the compromise was brokered by john kerry last week. the obamater says administration is preparing to step up its military campaign the effortamic state will include more airstrikes in syria. carter outlined the plan during testimony today before the senate armed services committee. ben carson is ahead of donald trump in a new national poll. the retired neurosurgeon has 26% support. trump is second with 22%. the rest of the presidential candidates are in the single digits. john brennan says the recent

hack of his personal e-mail account just proves that everyone is honorable. -- boulder opal. vulnerable. the hacker claims to be a high school student. president obama honored the u.s. during aoccer team ceremony at the white house. the president said he's victory inspired the entire nation. -- their victory inspired the entire nation. that's a look at our first were news right now. you can find the latest news bloomberg.com on. -- on bloomberg.com scarlet:. scarlet:the recycling business facing challenges on numerous fronts. lower commodity prices and slowing growth in china reducing

demand for recycled goods. that is hurting companies like waste management which reported a dip in revenue last corner. the biggest recycler of household trash set lower costs helped profits climbed 24%. here to talk about recycling climate is the ceo of waste management. good afternoon to you. : good morning. scarlet: is the recycling processing business model broken when oil prices are stuck at $35 a barrel? ford: it is not unusual profits to be done. when you look at commodities across the board, copper or oil or natural gas, all commodities are in a cyclical downturn and the recycling business is a commodity business. peakit is at a point where to trough, it's $250 million of earnings for us. we are trying to find a way to make it profitable for us so

that we can continue to invest in it. be able tould you compare and contrast the recycling model with the reset going election is recycling collection side of the business? david: the processing is where the costs have gone out of control. you have a double whammy, processing costs have gone up and the price you can select moneys four on the back and it's gone down -- has gone down. we are talking to our customers to say how can we help you get us the right materials and not the contaminated materials? a lot of places where we are getting recyclables, some don't realize that pizza box, when it gets greece on it, it gets on recyclable. plastic grocery bags or garden recyclable, but when they go into our processing plants, they come up the works.

you have defined a different way to recycle those types of materials. we are asking our customers to recycle rate and often. we are the largest recycler in the united states. we will always be the largest recycler in the united states. we want to make sustainable long-term business model that can help us make money when commodity markets are up or down. we had to drive processing costs down. we have to get the contamination out. scarlet: from where you sit, what are you projecting in terms of the next upturn in commodity prices? david: that is real difficult to predict. cyclicalhe longest downturn that we've seen in the recycling commodity prices in the last 50 years. you always look for what is going to drive -- what is the impetus that will drive commodity prices back up? energy prices, primarily oil, and demand from china.

if you tell me when oil prices will go back up and when china starts growing at 12% again i will tell you when commodity prices will improve. scarlet: glass poses next to challenge. you lost $6 million recycling glass. how uneconomic is it? >> in the most ideal circumstances, from an economic point of view, recycling glass just doesn't make sense. it is a net cost to do that. if you were doing that and doing such good for the environment because you are recycling sewage say maybe that something you want to do. very little of the glass right now is actually being recycled into new glass. when i talk about this contamination levels, glass would be the primary component of that. it's the second-highest material in the recycling stream after fiber.

also the least profitable. make a decision with our customers come a few you want to recycle glass, we are happy to do it. with cardboard, we don't have to charge you to recycle cardboard. with glass, we will have to charge you because we lose money for every time we recycle. someone has to pick up that cost. we want to make sure that burden is shared fairly. scarlet: you see a change in behavior as a result? >> you are starting to see some programs that are eliminating glass. the same we will eliminate glass but set up a separate glass recycling facility in the community. that's something we've set would be a great solution to our customers. make sure we recycle it in the right way and not part of the stream that creates that contamination for us. scarlet: thank you so much, ceo of waste management joining us from houston.

we have more coming up on bloomberg market day. we've talked about earnings at waste management. what about big pharma? they're getting a boost after three giants reported strong quarterly results. a showdown brewing in the south china sea where he was worship has sailed through waters claimed by china. what does this move mean for u.s.-china relations? all eyes on apple and twitter. what analysts will be looking for in both reports. ♪

scarlet: welcome back to the bloomberg market day. time for the bloomberg business flash.

takeover, possibly in the semiconductor business. stmicroelectronics considering a bid for fairchild semiconductors. fairchild has a market value of $1.9 million. -- sharesps dropping of bps dropping to the lowest in two months. .- ups revenue was also hurt by lower fuel surcharges. a pilot strike is extremely unlikely. negotiations are ongoing. a strike vote is set for friday. a travel in iran will soar once the nuclear deal goes into effect and sanctions are lifted. that's according to the international air transport association. 250%ravel will triple to -- airlines can expect more than 30 million extra passengers are

year. you can get more business news at bloomberg.com. as for markets and how they are moving globally, let's start in asia where stocks ended the day next. -- mixed. pointskei to 25 lost 170 before the boj meeting later this week. japan delivery halloween tree, boosting prices sethe giant pension fund with/its holdings of domestic bonds and double up on stocks. it itsion fund said h its holdings of domestic bonds and double up on stocks.

analysts say this could supply funds for the central bank to keep buying. scarlet: time now for a check of the european market close with indexes falling for a second straight day after disappointing earnings and low commodity prices. let's check in with mark barton in london. mark: investors twiddling their thumbs as the fed today meeting gets underway. all 23 while companies finishing the session down. commodity producers way down. when it comes to data, the main piece of data came from the u.k.. 1.5% -- .5%.rew by manufacturing contracted for the third quarter. on the plus side, services, the biggest part of the u.k.

economy, continues to accelerate. have a look at the big moving stocks of this tuesday session. -- thekets down by 1.5% biggest drugmaker missed estimates in the third quarter. 4.7%.wn by -- capaine down by 23% hemering down by 20%. -- down by 23%. i will give you this height chart. it tells you everything you need to know about the european

session. -- this pie chart scarlet:. positive-- pfizer, merck and bristol-myers beating analyst estimates. >> here at the nasdaq, we are looking at continued slack trading, the composite index up, we are taking you look at the chips over here. marbella technologies, their -- theylunged as price resigned as the company's external accounting firm. it was looking into as revenue recognition patterns. the stock was downgraded to a cell from a neutral. for marka tough year vell. ,ticking with the chips

stmicroelectronics said to be mulling over a bid for fairchild semiconductors. the geneva-based company wants to boost growth in its digital business products. fairchild was up as much as 9.5% earlier, now about percent. -- 4%. scarlet: some breaking news to tell you about. walgreens near a deal to buy right aid. shares of right aid shoot up on this report. you can take a look at the move higher, up 42% right now. following this report from the wall street journal. pretty simple chart. it moves straight up in rite aid shares. walgreens moving up as well. usually the acquirers shares don't rise.

in this case, walgreens had been talking about making some kind of deal, looking for some kind of acquisition for a while now. perhaps this is the deal people are looking for. the wall street journal reporting that a deal could be announced wednesday as walgreens was nearing a transaction to e ai.ase rit a lot of positive resultsd and pharmaceuticals. te aid.hase righ novartis's results were mixed. -- the company announced a lawsuit settlement to the tune of $390 million. , sam with bloomberg intelligence in london. if you can draw a common thread, what would it be that drove beats overngs analyst estimates?

sam: only three of them beat. in most cases coming to of them, pfizer and bristol-myers, it was driven by sales and earnings. slightly lower costs. wasthe merck scenario, that -- there was no beat on the sales number. better quality beads from pfizer and bristol-myers and slightly novartis --rk and merck and novartis. they have issues with regards to the eye care business. scarlet: perhaps this would put it behind company. in terms of the price increase debate we've been hearing, it's been very politicized -- our companies backing off raising prices on their drugs? sam: no. let's not forget this is a big

discussion about a specific group of companies. where you see those large price increases. on what are essentially generic products. this question was asked of all the companies in the quarter. drugs such as the bristol-myers cancer drug, they are having a push back. -- no pushback. innovation leading to major advances in treatments for patients in extra survival is not seeing pressure. you see pressure on the types of drugs -- a company like pfizer and merck say they are investing in r&d. nt.s not the same as valea farmer just came up a bunch of big patent expirations -- pharma

. beattoday, bristol-myers estimates for the new drug. pfizer came out with numbers for another cancer drug in their big vaccine for pneumonia. they all be estimates. these are the drugs that are basically helping these companies cope with the patent expirations. --re are many, many more big they are able to cope with that as the new products are taking off. scarlet: do you think these copies are growth stocks or value stocks? am: some pharma companies are significantly lower valued compared to the others. based onat valuations price-to-earnings ratios, and the is one of the lowest valued -- abvi.

.hat is a value story there pharma has always been about the growth story. we are growing into a growth rate for farm and that's where we have issues to deal with. pharma.h rate for scarlet: we have more coming up on the bloomberg market day. tensions in the south china sea. -- what hasit china prompted china to feel threatened? ♪

scarlet: welcome back to the bloomberg market day. i am scarlet fu. we have more now on the growing tensions in the south china sea after a u.s. warship sailed through this waters. china says this was a threat to peace and stability in asia. is dean of the

fletcher school at tufts university. hes the author of the -- joins us now from massachusetts. so good to see you again. >> great to see you, scarlet. scarlet: what message is the united states sending to china now?hy was it sent >> china's construction of these artificial islands -- they put up 3000 acres worth of artificial islands all over the south china sea. ,hese are international waters these are the high seas. constructionhinese of what some have called the great wall of sand in the south china sea is growing. the u.s. and many of our allies who support this one is to respond. u.s.'s: is this the intends to challenge china's territorial claims?

it's important to understand how international waters work. there is no national authority that can pass a law, international laws -- by a treaty or by practice, by what you do. when the united states sales through these waters, we are that theseur view territorial claims are inappropriate and illegal. we have to actually manifest this passage to demonstrate that. scarlet: china's defense is that other countries malaysia, the philippines, vietnam, they had built islands in the south china sea. they say the u.s. is biased against china. >> i don't agree. the united states works with all the nations that region. it is significant that everyone

of the nations he mentioned, , theam, malaysia philippines, all have a common view that the chinese claims are preposterous. they're claiming the entire south china sea. the other nations are claiming very small areas. a big difference. scarlet: let's talk about timing, then. this maneuver by the u.s. came one month after obama and xi jinping met in washington. they failed to reach an agreement on territorial claims. precisely what it appears. there may have been a good-faith conversation in washington. the two leaders do not get anywhere. these are two intractable positions, having tried at the white house to get an agreement. the president has to move out and demonstrate that we are not going to accept these territorial claims. it's the right move by the

administration. scarlet: how do you view china's territorial ambitions in this context of his slowing economy? -- when aace it nation has an internal problems and challenges, very often leadership will whip up an external threat to crystallize a feeling of nationalism and 70 country. -- inside the country. he is the former supreme allied commander at nato, joining us from massachusetts. much more bloomberg market day coming up. all eyes on apple and twitter before the results. ♪ .

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(don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. scarlet: welcome to the bloomberg market day.

flung bloomberg world headquarters, good afternoon, i'm scarlet fu. season rolling on with apple and twitter in the spotlight hours from now. and analyst tells us what he's expecting from the massive tech companies. bp profit beating estimates, with a cutting back. walgreens nears a deal to acquire rite aid cording to "the wall street journal's." we will have more. let's headfirst to the markets desk with julie hyman and a check on the markets. the fed beginning a two-day meeting. we are in wait and see mode. most do not expect much action. alie: we know there is not press conference, so we won't

get additional context from that. we are seeing the major averages down. web accommodation of weaker than estimated earnings and economic data, and a drop in the energy complex that is hurting matters here. i want to dig a little more into this potential deal we're talking about in the pharmacy industry. as scarlet just mentioned, the wall street journal is reporting that walgreens is in talks to acquire rite aid. you can see with ishares did when this headline came out. there are up almost 40% on the day. huge gain for those rite aid shares. there is been some level of consolidation in the industry. if you look at walgreens at shares of how they have reacted to the headlines, also a move up by 4%, would increase the company's penetration in the united states. i want to check on the larger competitor, at least by revenue, that is cvs.

up. are also it is not clear if a deal will end up happening. we'll come to fruition. certainly, investors are reacting to this. scarlet: looking for a little m&a. how does the u.s. pharmacies got up against one another when you compare and contrast? both in theincludes u.s. and outside of the united states as well, and walgreens has a presence particularly in the u.k. here is walgreens and you see the big jump when the acquisition happened in the number of pharmacies. then you have cvs and rite aid in terms of relative size. sales becauseby of its very large pharmacy benefit business, in other words, drug distribution. that accounts for a must-have of the overall revenue. this is how they stack up in terms of number of locations. you can also look at revenue, look at various slices of market share of that pharmacy benefit business. it will be interesting to see if there is any antitrust concern

over this. you would still have cbs as a large competitor -- cvs is a large competitor. scarlet: every time i go out, i see cvs as my only option -- at least in new york. julie hyman, thank you so much. mark crumpton has more from the news desk. mark: u.s. defense secretary ash carter says the obama administration is preparing to step up its military campaign against islamic state militants. secretary carter also says more and heavier air strikes are planned in syria. appearing before the senate arms services committee today, secretary carter said the u.s. approach will focus largely on the cities of raqa in syria and ramadi in iraq. china says it will take on the surrey measures to defend its territory after a u.s. navy warship sailed through waters

claimed by the chinese. the ship passed within 12 nautical miles of islands built by china. the u.s. doesn't recognize man-made features as a territorial zone under international law. rescue teams in afghanistan and pakistan are trying to reach remote areas affected by yesterday's deadly earthquake. people were killed, most of them in pakistan. officials expect the death toll decline even higher. the magnitude 7.5 quake was centered in a mountainous region in afghanistan. hollande, president and others pay to be to the 43 people who were killed in last week's fiery collision of a tour bus and truck will stop the president called the victims "our cultural heritage" and said the nation was shaken by the disaster. most of the victims were retirees on a day trip. the truck driver and his three-year-old son were also killed. retiring house speaker john boehner is pushing congress to

approve a two-year budget deal and raise the debt limit before he leaves office. a tentative agreement was reached last night following closed-door negotiations between the speaker and the white house. esther boehner said he may need democratic -- mr. boehner said he may need to accredit votes to get it passed. imperfect, but alternative was a clean debt ceiling increase without any additional support for our reforms.ithout any this is a good deal for our troops and taxpayers and for the american people. mark: bloomberg politics phil mattingly is following this story. he joins us now from washington with more details. this is, in essence, speaker .oehner's swansong we be getting any conservative report? >> he will be getting republican support. we will find out when a house likely votes tomorrow. more than anything else, speaker boehner is clearing the decks --

and his words, cleaning out the barn -- for the next likely speaker paul ryan. on thursday, house republicans come the house on a whole is expected to name paul ryan, vote for paul ryan as speaker. was speaker boehner has done with this deal and what he is doing over the course of this week is removing every major potential crisis from paul ryan's path. you have highway funding, running out of the end of this week. there'll be a short-term patch. you have the bank, even though paul ryan opposes it, will be with the the table house vote today. then you have vista,'s's's -- suspending the debt leah meant -- suspending the debt limit until january. mark, was bigger boehner has done, even as some conservatives will be opposed to it, paul ryan has posed concern about it, taken up the most contentious issues from paul ryan's plate. you will be starting as the next big of the house with a clean slate and the opportunity to do big things if he can find some agreement was in a republicans and the white house.

we have anyy, do sense on how congressman ryan is going to vote on this? >> he is it "the process stinks." he doesn't like how this happened behind closed doors. don't get it twisted. this and to be speaker ryan is -- the soon-to-be speaker ryan is appreciative of what boehner has done. getting these issues off his plate is crucial for any type of success as he takes over the reins from john boehner. mark: phil mattingly joining us from washington. thanks. that is a look at our first word news. you can find the latest on bloomberg.com. thank you. back to the markets, it is a waiting game, waiting for a fed interest rate increase, a granular read on the state of the consumer. we get that in the form of earnings from apple and twitter. both report after the bell. analysts concerned some. alastair mccaig joins us.

we look at how their scherzer performed since our last results, twitter down 15%, apple off by 6%. certainly, investors are pricing and a lot of concern there. >> you would have to say that certainly, if we look at twitter first, the actions we have seen from the company in the last couple of weeks, quite frankly, have been confusing at best. the landscape for job cuts that have gone on has been aggressive. those workers who managed to survive, then getting the best part of $200 million worth of stock being gifted to them by the relatively newly appointed and founding member ceo jack dorsey. it is difficult to second-guess where we stand with twitter. there difficult phase of trying to financial eyes the consumers -- financialize the consumers. there's a lot of users they have not been able to monetize messerli not to the extent of facebook. scarlet: it still remains a

niche product and not gone mainstream. because of that, what implications does it have on the social media group at large and the overall tech sector? >> i think it should be taken with a fairly decent pinch of salt. it is still at the early phases. it is done had enough time to fully monetize all those uses. i think it needs to be cut a little slack, weather will be given that ability, especially when you consider many of the other tech and social stocks we have seen reporting back on thursday last week and alibaba as a look, it is debatable whether will be given that flexibility. let's move on to apple, famously under promised and over delivered for most quarters. this quarter we are really looking for a read on china, the demand in china. has apple become a proxy for the chinese aspirational consumer in the same way copper has become a proxy for china's industrial economy? set -- withdenly a

the weight is performed previously. figuresfore alibaba's today, we would have been more pessimistic. alibaba really surprised to the upside and looked pretty impressive. it is going to be an interesting question to see the last quarter, both apple iphone sales were greater in china than in the u.s. for the first time, and quarter by quarter basis, the sales increased by 87%. it will be interesting to see they can replicate that. there have been a lot of weston marks -- question marks. debatable to how they came in. i think it has a tough act to follow. an interesting sideline is the apple pay did not get the traction they were looking for. their partner jpmorgan announced chase they. that might pinch a little of the market share. it should refocus the consumers attention to the usefulness of that whole sort of ability of the apple phone. that may inadvertently help them. scarlet: thank you so much,

alastair mckay, market analyst in london. we have much more coverage coming up for you in the next 20 minutes. repeat reporting earnings that beat estimates that with oil stuck at a two-month low, the driller is being forced to look all over the place for cost cuts. local crown betting big on opening a billion-dollar resort. exclusive interview with the ceo. we have a new way to measure inflation by looking at what you buy online will stop no longer the government's measures. all that a much more coming up on bloomberg market day. ♪

scarlet: welcome back to the

bloomberg market day, i'm scarlet fu. we want to head over to the market does quick julie hyman. many reporting earnings today. rent-a-center is one of them will step the company came out with at least the luminary numbers. rent-a-center has various stores that rent a wide range of items. the company's stock declined, the worst in seven years. it cut its profit forecast. it also wrote down outdated smartphone industry. a couple of things, inventory, should say. a couple of things, first of all, it is based in plano, texas. areas. oil centered the oil industry has been waning, so that has created some troubles for the company. in addition, smartphone is a new area for rent-a-center. it is an area relatively successful, however, it had to write down the value of outdated models it is been holding onto, so shares are down 29%. rents down as well, not

quite as deeply, down by about 8.5%. we have noticed there is a decline today in the rental car companies. it doesn't seem to be necessarily of the catalyst. we do get durable goods orders that came in worse than estimated. could just be some general concern about the economy. if you look at hertz or avis, we've seen declines among the stocks as well as to among the other sort of car-related companies, industrial-related companies, deed of trading lower, maker of heavy-duty interns and the other a maker of truck's. earnings per share for paccar came above analyst estimates but it looks like the sales were below estimate. scarlet: julie hyman, thank you. we will stick with earnings because bp beat estimates this morning with its $.10 earnings per share. the collapse of crude oil is the backdrop for bp and resulted in

a retrenchment in investment and spending. blas joins us from london. refining's help top estimates of the estimates have come down so much, talking about a very, very low expectations. >> indeed. very few investors were expecting that bp would do fantastically well in q3. in reality, it was. the result is quite low, 40% drop year on year from the date when oil prices were still trading above $100 a barrel. considering how bad the expectations were, bp was able to deliver a very strong profit. downstream, the refining sector, copies like bp or exxon, doing very well supported by various demand and trading again where bp ax as a trading house selling and buying crude oil did very well. well incular, bp did

gas, $200 million above what it considered a normal quarter. torlet: when it comes preparing for the macro environment, bp is hunkering down, looking for oil prices to stay at these levels for a while. talk about how aggressive bp cost reductions and reduced investments are. >> it is very much at the forefront of the oil industry. bp was one of the first companies to start talking about the lower for longer for oil prices, predicting we're going to stay around his current levels of $50, as much as reps $60 in 2017. cutting and tightening since the beginning of the year. doing isbp is extending the belt-tightening not only to 2016, but also into 2017. just for example, the capital investment program that bp was planning for this year was about 24 billion dollars, 20 $5

billion for only a year ago that was the plan for 2015. at the end, bp will be spending significantly lower, around $19 billion. it is telling me -- investors, going forward in 2016 and 2017, the number could go even lower to us low as $17 billion. scarlet: a new wall order for these companies -- oil orders for these companies. we still have other big super oil companies due to report in the days ahead, royal dutch shell, exxon mobil and exxon chevron -- and chevron. what will be announced at the meeting tomorrow? singh janet yellen has six mayan -- 6ns to take her time million reasons to take her time. we will explain. ♪

welcome back to the bloomberg market day, i'm scarlet fu. economic data since the last ofm see meeting has been mixed.

massarheck in with carol and cory johnson. >> welcome, everybody, from bloomberg tv. it is the second to the last in a fed meeting, of the year and we want to talk about what we make it from that meeting. citizens bank managing director of global markets is in studio with us. i'm looking at the bloomberg terminal, 4% in a fed chance wee anything from the fed. everyone is putting much writing off this october meeting. what are you anticipating potentially maybe for the december meeting and maybe into 2016? >> obviously, carolyn, the market is all but priced out. said tightening for tomorrow. i think the language will be particularly important. we know there's been varying views among the governors as to when the next tightening will -- happen. many are anticipating this here, some anticipating a push into 2016.

whatever one in four chance priced into the december meeting and about a coin flip for the march meeting. >> if you look out, it isn't until march when he sees sort of the likelihood the fed has an interesting challenge because we definitely -- the chinese economy, will still growing, growing at the slowest pace in 25 years. how important do you think that will be as the fed needs today and sort of things about the parameters for an eventual -- >> certainly, the fed has been watching the chinese economy quite closely. we had the delight mission of the chinese currency back in august. they recently eased rates 25 basis points. clearly, they're looking to spark their economy so the fed is looking at the chinese economy very closely, among other emerging markets as well. europe is obviously at the forefront of the fed's mind. we heard recently from draghi that the quantitative easing program may move well into late

2016 into september and perhaps beyond. the fed is trying to way that dichotomy between foreign growth and u.s. growth. >> what we have come a third mandate? we know they're concerned about the labor market and inflation, but obviously, they're looking to what else is going on around the world environment, the global world environment. are they making a mistake by doing so? >> i don't think so. this is such a global economy and all the economies and central banks are trying to work in a sense in unison to tackle all of the growth issues that we're certainly seeing in europe and in asia in particular. obviously, the next tightening in the u.s. is expected to be coming over the next few months, tightening expected to be the next move whereas in europe and in china, we have been seeing in easing program. the fed has a lot to work with. it is a must a little bit of a catch 22.

they have to think about the dollar implications, too. >> we see that playing out in earnings releases. >> if the fed hikes the dollar tends to strengthen. on in easing spray, that sort of dichotomy between u.s. strength versus european and asian potential weakness come if we get a strengthening of the dollar, that actually could point and have a negative implication for the us economy going forward. the fed has to weigh these different factors going forward. i think that has been cause for pause at the fed to kind of make sure to have all of the information possible to make the right move going forward. >> i wonder how they're going to look at employment as well. we have jobless number's that have been better, looking at the trailing three-month average, good, but not super strong. you also have a lot of part-time workers who probably would be preferring to be full-time and not getting the shot in the workforce. >> absolutely.

we have two more payroll numbers to go between now and the december meeting and we have a slew of other inflation data and manufacturing data in the u.s.. we have a lot of time for the -- we just a look came off two numbers that were a little below expectations. i think the fed would like to see north of 200 payroll prints over the next two numbers before they make their decision for the potential next rate hike. >> you said the fed is going to wait for crossing their teas, dotting eyes, it is never going to be perfect. are we really putting potentially financial markets, something at risk by waiting too long? >> i don't think so. the fed has been on hold. the last time the fed raised rates was back in 2006. i think waiting a little bit longer is going to be prudent for the fed to make sure their stability, not only in the u.s.

employment market, but also in the overseas markets. >> tony, thank you so much. talking about that today fed meeting. the fed's announcement comes out tomorrow at 2:00 p.m. apple is out with the fourth quarter results. how big of a by will china take out of the profits? we will have a preview of the copies earnings later on. ♪

scarlet: from bloomberg word -- world headquarters, welcome back to the "bloomberg market day."

we check in with mark crumpton. nationsunited condemning the embargo against cuba has one overwhelming approval. the u.s. and israel were the only company's money against it. the resolution announces the commercial, and financial boycott against cuba. it had the support of 91 countries, the highest total ever. u.s. officials say iran is being invited to participate for the first time in international talks aimed at bringing a peaceful and just serious civil war. the u.s. secretary of state john kerry, russian foreign minister sergey lavrov off, and several top european and arab diplomats will attend thursday's talks in vienna. the cia director says he was outraged over the recent hacking of his personal e-mail account. public a dressing the incident for the first time, the director says his personal contact list and is wife's social security

number were compromised, proving that everyone is vulnerable to cyber crime. the hacker claims to be a high school student. for faultysystem tires is broken and leaves motorists at risk because manufacturers have no way to contact most tire owners. the national transportation safety owner dashboard says only 20% of tires are removed. the ntsb is calling for mandatory registration of new tires. president obama paid tribute to the u.s. women's soccer team, the u.s. defeated japan in the final to win the top prize women's soccer for the first time in 16 years. the president said they have inspired millions of girls to dream bigger, and find a way to inspire millions of boys to look at girls differently, which is just as important. that's a look at the first word news.

you can always find the latest on bloomberg.com. scarlet: thank you, mark crumpton. let's check in with julie hyman. oil and natural gas prices sinking was again in treasuries higher. julie: it does seem like risk off. demand forerns about businesses. major averages are down right now, i wanted to focus on the transports because we are seeing some evidence of lower demand. jetblue coming out with earnings that on the face of it, beat estimates. the company is talking about increasing capacity, that has been a concern throughout the airline industry -- if there's more capacity, what effect will that have on pricing. spirit airline livestrong, but the company talked about a volatile pricing environment and also did not change its cost per available seat forecast for the full year, even though the past order looked good.

and ups coming out with earnings that missed estimates as well, talking about a decline in demand for ground shipment in the united states. of theng there in terms airlines. we've also seen pressure from railroad stocks. companys a freak broker called roadrunner transportation services, a huge tumble, 46%. the company blaming weak earnings and a number of different factors, also talking about lower demand. , because ofike meat a decline in prices and a decline in demand of their, as well as other types of products. we are seeing union pacific and csx also on the decline. with a bloomberg intelligence analysts on exactly what's going on. he says there's concern about inventory levels. take a look at my bloomberg terminal. it's a little busy, but these red bars are the recessions the u.s. economy has been in.

is you is retail sales, and this is inventory versus sales. this is something we have gotten the hint of from various manufacturers and retailers recently as well. about rising inventories being an issue. skechers also making that kind of commentary. if there's rising inventories of these retailers have to get rid of, they are not ordering more. it's not getting to them be afraid or other types of intermodal transportation. take a look at the dow jones industrial average versus the transport. the dell performed much better this year, that yellow line down almost 1.5%. transports are down about 12%. if you subscribe to dow theory, which some folks do, they would say that's not a good sign for the u.s. economy. the move seen this lagging performance amongst the transportation stocks. scarlet: the dow transport having its biggest drop since that chinese inspired selloff. julie: it's chinese inspired

them, and today it looks like a lot of the woes are u.s. inspired. scarlet: great chart. julie hyman, thank you. we are going to shift gears, because julie mentioned china. these may not be the best of times to open up a grand casino in macau, the former portuguese enclave, because gambling revenue has been plummeting. today, melco crown opens a new $3.2 billion resort. attractions for families including a batman themed ride in a 400 foot ferris wheel. in an exclusive interview, cochairman and ceo lawrence ho explained why the company things it will succeed. we are extremely proud of the entertainment proposition we are delivering. you probably has more non-gaming attractions than the rest of the integrated resorts and hotels in all of macau combined. at the same time, macau is

always going to be -- the revenue that would generate from gaming is always going to be much, much higher. to follow's important in the footsteps of what the government wants, but the same time, there's a point of differentiation. a company, we always like to say that melco crown entertainment is as much an entertainment company is a gaming company. ultimately, casino gaming is going to be the financial engine. without that component, we would be able to build these amazing, fantastic stuff. -- we wouldn't be able to build these amazing, fantastic stuff. at the end of the day, it doesn't generate cash flow. outou only got 250 cables of the 400 that you wanted. what does that signal to you? >> given the annual growth

environment, we are happy with 250. the could be much worse than areas. -- how much was the impact? >> pretty significant. at the same time, we build these properties for 20 years down the road. we are very confident that, given what we are offering, and the fact that it's so different, it's going to be a success. the key is really to engage with our vendors to try and find a resolution. relates to the overall downturn in the market, and on the other hand, it's no ,ecret that we had 400 tables with 250 tables versus 400 tables, there's certainly a gap. with that gap, we do need to engage with the banks. >> is there anything more as a businessman you would like to see from the macau government

that would make you more comfortable? think infrastructure and support is the key. right now, macau gets about 31 million visitors a year. i think the hotel room supply is there. there's a buildup of hotel inventory that can accommodate more people. is real bottleneck right now -- most of the networks in terms of train networks, are already done in china. so it's really the bottleneck into getting into macau. it's understandable. if you are traveling from mainland china or northern , they're even beijing only a select number of flights to macau every day. if you have to go through hong kong and then take the ferry over, and then have to wait immigration for two hours, it's the equivalent of going to purse. -- perth.

>> there was these restrictions, a smoking ban. these things are not helpful. do you think they were necessary? >> support the government in terms of their initiatives. -- somethe smoking ban sort of smoking control is a trend globally. we understand that. at the same time, given the revenue that the gaming industry contributes to the governments, and we hope that doesn't affect our employees health is that employees help is the key consideration. we totally support that. we think a good compromise is smoking lounges. the government is having a second look at it, it's kind of a best of both worlds. >> steve wynn was very vocal about his frustrations with how certain things are conducted. do share the same frustrations? >> ultimately, in this

environment, macau is a very close to society. we just need to be respectful of the local government. sometimes, there are different forces, their unions and different views in terms of -- there are a lot of different single interest groups supporting different things that are very vocal with the government. course, i think steve was very angry about table allocation. have been lobbying and closely working with the government, understanding that they have the constraints of the table cap and the annual growth rates. i think all we can do is really be respectful and continue to work with them. our exclusivewas interview with lawrence ho going after the mass-market gambler not the vip highroller. coming up in the next 20 minutes of the "bloomberg market day," a

new way to measure inflation on the internet. how m.i.t. study project wants to use data to track what you are buying online. walgreens stairs -- shares are surging, following reports that there will be a deal to combine the two. we discussed that. and how big a bite will china take out of apples profits? we have a preview of apple earnings. ♪

scarlet: welcome back to the "bloomberg market day." i'm scarlet fu. time for the bloomberg business flash. another takeover could be on the horizon the semiconductor business. is saying that

stmicroelectronics is considering a bid for failed child -- fairchild semiconductor. no word on the size of the offer. we do know that fairchild has a market value of $1.9 billion. pfizer is reporting third-quarter profit that beat a list estimates. the company's results were boosted for drugs for pain and breast cancer, with of which outperformed expectations. revenue fell more than 2% to $12.1 million, and pfizer raised its outlook. ibm is adding $4 billion to the stock buyback program that brings the total authorization for repurchases to about $6.4 billion. the company's ceo says ibm will continue returning value to shareholders through dividends and share buybacks. ibm has paid consecutive quarterly dividends every year since 1916. you can always get more business news at bloomberg.com. that was just a snapshot. we go back and talk about

economic forecasting. policymakers are measuring the economy through methods that are either old, incomplete, or just plain wrong. inaccurate. and i.t. has one idea of how to get real-time economic data, such as inflation, by using online purchases of hundreds of retailers globally. joining me is brendan greeley, the economic correspondence. you think the fed will take them up on this? brendan: immediately. if you look at how the they calculate inflation, they are sending people physically to stores, called economic assistance and look at prices, make phone calls, along these prices together. it's an extra ordinary logistical undertaking, with the do every month. scarlet: labor-intensive. brendan: very labor-intensive. the billion prices project run out of m.i.t. basically is scraping web data from web vendors to look at prices and

then comparing the next month, price to price. is anything sold on the internet? no. you can buy eggs on the internet, it reveals a complete different picture of inflation. there's one obvious answer, we can look at argentina. unsurprisingly, the person running this process is an argentinian. but if you look at argentinian inflation, on the yellow is the official numbers. scarlet: what inflation? it is a scraped price data from the internet. more obvious.ch the argentinian government has a reputation for inaccurate statistics. the bureau of labor and statistics does not have a reputation for political he skewed statistics. but when you look at the compare data, you can different picture. over time, what you see in the u.s. is that inflation from the scraped data is high, although

right now, it is showing more deflation than the official. it's a different picture. i don't know that we can necessarily save the bls is over, i think the bls would hotly contest that. it's important for econometric research that you have a longtime series that goes all the way back. scarlet: how far back does this go? we have as far as accurate and ubiquitous web prices. not more than 10 years. i've been wondering about this. and of a gets very long in economic terms, maybe five years before you start to see these kinds of measures supplementing the official measures. there are other ways to look at it, it's not just web scraping the m.i.t. is doing. their project to look at satellite images of trucks going in and out of factories that will give you a completely different -- scarlet: anecdotal. brendan: right now we have the person doing -- the purchasing managers index. there are services that will

look at trucks coming and going from factories and measuring it. scarlet: should big data be used to supplement what we get from the government, or should it replace what we get from the government? the economics,k the craft of it has to keep up with the data. a qualified yes. it shouldn't replace with the els does, it should supplement. their economic theories being offended by just the sheer numbers of data and amount of data that we have. and the techniques that have been developed to deal with it. if you look at the euro, for example. prices are supposed to be efficient. adoption of a new currency is not supposed to chain pricing all. -- change pricing all. they looked at when latvia joined the euro. you do i was going to say latvia. 2014, latvia joined the euro. an economic theory predicts that prices should not change at all. before the euro, there was a 6% correlation with germany of

prices in lafayette. after the euro, 89%. it shot up within a month. with the euro david was masked rice and efficiency. when the euro shows up, all of a sudden, things get very efficient. we didn't know this until we have the techniques in the data set to start collecting this information and thinking about new theories. data, newew ubiquitous computing to deal with the data, new techniques to think about it. starts ton the theory change. i think then and only then will you see a different way of approaching this from the fed or from the treasury. scarlet: you scraped through all these different treasury reports and listen to the speeches. does anyone go outside the box and talk about using this kind of data in a policymaking decisions? brendan: no. i've never seen this in a speech. ,ome speeches from the senate the san francisco event in particular talked about this different people

respond in different ways. this is an insight we only have now because we can look at massive data sets. use do not be able to get the data at a time on a mainframe computer. now the data is there, and you have the techniques to deal with it. the set is changing the way it looks at the world, the ecb, the imf, have all looked at this data and realize that different people behave different ways. this is different from the billion prices project we talked about with m.i.t.. but it is new data that is --nging very profoundly profamily changing the ways we think about economics. scarlet: big data is disrupting government agencies. brendan: that may be accurate. scarlet: what else besides inflation is this capable of measuring? brendan: almost anything. if you put satellites over myanmar, it's been growing at

3%. you can look at the lights over the city as a proxy for economic growth. they called a microscopic approach to economics. scarlet: i like that. brendan, our macroscopic economics correspondent. thank you. coming up on the "bloomberg market day." how writingearlier and walgreens stocks are surging. there could be a deal that combines the two. why pharmacy sales of topped 8% every quarter this year. ♪

scarlet: welcome back to the "bloomberg market day." i'm scarlet fu. walgreens that to be nearing a

deal to buy writing, according to the wall street journal. shares of both companies are surging on that report. it would unite the nation's number two and number three drugstore chain. isn't necessarily the right prescription for investors? be the strategic significance of this merger? we've seen a lot of consolidation and health care on the last decade, ranging from pharmaceuticals to managed care companies. and really the drug supply chain is no different. there's a lot of consolidation between distributors and on the pharmacy side. scale is key in these markets. walgreens wants to be one of the consolidators. we are talking about the number two and number three biggest health care retailers in the country. isn't there going to be an issue with regulators? will probably be antitrust concerns.

but if you take a step back there's nearly 70,000 pharmacies in the u.s., walgreens has about 8000, writing has about 4500. there's still a lot of independent pharmacies and other chains out there. noted that u.s. pharmacy sales of topped 8% every quarter in 2015. why is that? is it structural, cyclical, and can it last? john: we will see. walgreens reports tomorrow. but a big driver of this has been on the pharmacy side. prescriptionh in and particularly the growth in prescription drug prices which has helped drive growth for all of the pharmacy players. one of the reasons they want to consolidate this industry is to capture more of that growth. scarlet: each of the drugstore chains has their area of specialties. cbs with the clinic, walgreens ,ith the upfront cosmetic sales the ceo of walgreens indicated he was looking for deal targets. was this a given that he would fix this -- fix his sights on

rite aid? they talked about consolidating industry and is only a couple of logical players in the u.s.. write it was one of them. another company that had rumored quite frequently was express scripts. really the right aid deal would give them a group with pbn and sales. scarlet: jonathan palmer comes -- covers health care. we look at what's driving down shares of ibm, taking a big dive in the last couple of minutes. off more than 3% to 13936. we'll be back.

david: it's 2:00 p.m. in new york, welcome to the "bloomberg market day."

from bloomberg world headquarters in new york, good afternoon. i'm david gora. apple and dissipation. how many iphones to the company sell less quarter, and as that company matter? hit in theother big pipeline to keep the momentum going. to raiseis looking some cash. sell millions of barrels of oil from the strategic petroleum reserve. we had to the markets desk where julie hyman a standing by. julie: ibm saying it learned the extremities -- securities and aschange commission