bloomberg -- from bloomberg i amuarters in new york, david gora. take a look at what is behind all of this m&a activity. and more problems for volkswagen -- reports that the automaker failed to report a fatal accident to regulators. and a low hop. maidenairlines makes its voyage to hawaii. that first to julie hyman for the latest at the markets desk. hey, david. all three averages are higher.

it looks like we are bouncing to the highs of the session. the nasdaq up 1.2%. take a look at my bloomberg terminal to see what is leaving is there. energy in the top spot. financials and industrials also strong. pretty broad-based advance. talks are advancing between these two, and we could see a deal before thanksgiving. both of those stocks are rising. we see that higher by 3%, 3.3%. it seems to be m&a that is helping the group today. david: you mentioned energy.

what is driving that sector? we should mention that oil prices are lower today, but dimon offshore, up the most in seven years. they also announced a deal with work.ras to get that it looks like investors are content with that strategy. with energy coming out numbers that actually missed estimates, a third-quarter loss that was wider than estimated, fourthduction in the quarter looks to be above what analysts were looking for. the auto majors doing well. goldman sachs setting it in a nine dollar -- and $89 price target for exxon mobil. david: julie, thank you very much. that's julie hyman at the markets desk. now let's go to mark crumpton at the news desk. mark: david, thank you.

the airworthiness of the passenger jet across from the weekend is being questioned. regulators found its safety and documentation in order earlier this year. an irish company at least to the russian owned metro jet. officials say only an external impact could have caused the crash. >> in less than a minute, the speed of the plane dropped by more than 300 kilometers an hour twoit was a loss of out the . it is impossible for a big transport or passenger plane to move like that, which means the plane was not flying, but following. clapper says he cannot rule out an act of the planebrought down over egypt's sinai peninsula.

president obama has signed a thertisan budget bill for debt limit. it increases discretionary spending by $112 billion over the next two years and avoids the default on u.s. financial obligations by suspending the debt limit through march 2017. the u.s. and south korea are expressing what they call grave concern over north korea's stated plan to conduct a missile or nuclear test. speaking today in seoul, the u.s. defense secretary called the regime of kim jong-un a continuing threat. u.s. safety investigators may have found the wreckage of a cargo ship that vanished over the bahamas last month during hurricane jaoquin. they are waiting for confirmation that the vessel was actually el faro. that is a look at our first word

in his right now. you can always find the latest on bloomberg.com. david, back over to you. david: a big day of dealmaking. these of's ceo believes the deal is all about global growth. this transaction does create a truly integrated global leader ont allows us to capitalize opportunities and we believe it expand cost efficiencies associated with transactions. david: joining me to speak about have our guest and our deals reporter. let's start with the visa deal. walk me through the history. why did these companies split and what brought them back together? >> there was an idea that regulatoro much regula scrutiny. there was an idea that they would be slightly further

behind. i think it is owned by something like 3800 different banks are in steak senate. and the idea now -- you put them back together, you improve the overall profile. you do not have that european peace lacking. now they have to go to the anti-trust process. david: bob, how big a hurdle is that going to be? two companies missing activity right now, frankly the regulators are overloaded. they may get some benefit from that. very difficult to say. on the other hand, talking about globalizing everything, i'm sure they will take a look at it.

you can be pretty darn sure it's going to happen. very good. we have seen so many mergers in the pharmaceutical industry. what you make of this deal? robert: it's another in an incredible deal of pharma deals. thre is the so-called cbr in the deal. that last piece, a good way to close it. i do think we will see a lot more of those. as equity values are more volatile, people will take stuff for us. david: they do not have approval from the fda -- a big piece, $600 million of comes through. it's not an insignificant part of the overall deal. what is interesting in pharma, this was at $1.50.

today it is $1.30-ish. to growth is a must nothing these multibillion dollar. just staggering. that is theavid: thing about shire. a company making overtures, where does that stand? ed: apparently shire has come out and said that they have ambitions in the u.s. obviously, -- [indiscernible] david: we have seen treehouse buying conagra foods. treehouse doing a lot of field making. what does it say about the market generally that they would take that up? robert: it's a good deal for

them. obviously it's a difficult category, a very competitive category. there are still oceans of capital. one of the things that has happened in august, when we had the wobble in the market, equity was not part of the equation. lots of deals, a big slug of equity. prices have gone back up. the debt markets, beyond the 10-year rate has gone up in the last week or two. the debt markets, the deal are unbelievably fabulous. it's probably the best part of a bank's lending capacity. how many corporate's are borrowing through operations? david: as you look at the pipeline going forward, how does it look for you? was a little bit of a wobble in there were some the commodity affected businesses, but the pipeline, i of been saying this all year, -- i have been saying

this all year, has never been better. i would be astonished if it is not a record-setting year and frankly it looks like it will carry over the next year. think about it. twitty 14, over a trillion dollars of stock was bought back by companies. you can only do that so long. over 8 million dollars of stock was bought back by companies. robert,hanks so much, ed hammond with bloomberg news. el laureatenob joseph stiglitz is rewriting the book on the economy. what he says that paul krugman is wrong on negative rates. and an expansion into the investigation of europe's largest automaker. oil making a comeback in russia. we have a breakdown of the country's crude market. ♪

david: welcome back to bloomberg markets. i'm david gura. time to look of the biggest business stories. george soros has pulled almost $5 million from an account managed by bill gross. that is after he left pimco to capital ind out janice janus capital group. assets, atum for med

closing last friday. shares of valeant are rising today. they will not release any new allegations against the drug maker. valeant shares plummeted 20% in one day after the company was accused of reporting fake sales. you can always get more business news at bloomberg.com. let's head back to our markets desk with julie hyman. julie: let's see how these stocks are trading today. it is a mixed picture. let's start with visa buying visa europe. they're taking advantage of that european revenue. mastercard already on its european affiliate. this deal has been talked about for quite some time. not a huge surprise for investors. foods, acquiring conagra, making it the largest

maker of storebrand groceries. the issue is it has been a struggling business for conagra. investors and analysts are asking today of treehouse will turn that business around. shares are lower almost 5%. then there is that big drug deal were talking about, shire , 45.9 billionk dollars. -- to acquire dyax. is 30%.ium on this deal and we are looking at back salsa baxalta as well. earlier we saw weakness in the stop with the idea that shire would back off -- and the stop the idea that shire would back off. into the point that we just and bob making, this is

a global deal we have seen thus far, actually over the last five years, quarter by quarter. the blue line are the value of the deals. you can see the surge we have seen. this is the fourth quarter, but increasing. the premiums also increasing. it looks like we have some premiums widening. joseph stiglitz is out with a new book called "rewriting the rules for the economy." earlier he sat down on bloomberg radio to explain the theory behind the book. >> if back in 19 80, someone came to this idea -- we will lower tax rates at the high, the topay regulations, 10% will do very well, the economy will grow a little

slower than it did in the past -- would any american have bought that idea except if you were in the top 10%? i think the answer is no. the problem is, that is not how it was sold. these ideas were sold that they would bring such growth that everybody, it including the middle and bottom would do well. it was wrong. it was a lie. david: where that leaves us -- the life aspects of young americans are largely determined by the income or education of their parents, which is the reverse of the so-called american dream. >> precisely. rather than being the country that promotes equality of opportunity more than other advanced countries, we're at the bottom of the league. that is why this book proposes a way of rewriting the rules, sort part ofthrough every

our economy and asks the question, ok, how did we get here, and now we are in the 21st century. we can't go back in time. but how do we rewrite the books for the 21st century? you find a common ground for liberals and conservatives to benefit society? i see is miles apart. stiglitz: i think there are areas of product and senses. tom: infrastructure investment. professor stiglitz: i was in last summer. it looks like a poor developing country. it's really an embarrassment for a rich country the united states. there is a across-the-board corporations have

become too shortsighted. i was talking to larry fink, head of blackrock. he has written about it. there is broad consensus. something is wrong with the way the american economy is working. we, in this book, try to attend five -- try to attend fight how american firms became so shortsighted? what are the consequences question mark you're not inviting in long-term &d, you are, r eating your resources. soe: how did companies get shortsighted? was it the move to quarterly reporting? the focus on stock prices? it's not oneglitz: thing. you mentioned two things. requireure to corporations to disclose the value of their stock options to payges them

executives behind stock options. the weaknesses in our system of government compared to other advanced countries like australia -- say and pay -- there has long been saying they. shareholders have a say in the payment of their executives has helped tame the excesses of the pay inequality and much of the corporate revenue going to the very top. we make some progress. in dodd-frank, there was a requirement -- just the disclosure of the ratio of the top a to the typical worker. to number has gone from 1030 one -- to corporations fought just that disclosure. david: that was professor joe stiglitz talking to tom keene and michael mckee on bloomberg. they arecome, why

stepping up the investigation of the in emissions scandal. ♪

david: welcome back to bloomberg markets. i'm david gura. more bad news for volkswagen. a new recallsuing notice. plus, volkswagen failed to report fatal injuries to a database. what is this database? the database is supposed to be all of the allegations of defects that resulted in a death or energy -- or injury that the auto makers know about. it is supposed to let the government or people like us to they happen.efore and honestly if they are not in there, you can't. it is a way to see things developing. david: how did your team crack

this? jeff: we'll been looking at this for a year. takata. some stuff for chrysler said, yeah, we were not complying with the database either. just on a whim, we said, let's look at what other automakers might have an issue. we were not expecting to find volkswagen, and we did. and then it seemed that volkswagen have the lowest reporting rate. and then, can we find actual losses that did not make it into the story, and we did? -- and we did. david: i think people will be looking for continuity about the volkswagen corporate culture. another huge problem for volkswagen? jeff: yes, and it is a problem across the industry. the people are blooming

regulator. some people are blaming the culture that there was not enough focus on all of these sorts of things. -- some people are blaming the regulator. there are things that people need to do to check off the box, but in this case, the outright cheated. it's usually not so blatant. penalty would volkswagen face? honda faced a record amount of penalties, $70 million worth. they say that they are doing a third-party audit of their own to determined the compliance issues, and they will a, and theat to nhts u.s. regulator will decide what that means for volkswagen. volkswagen, they can say, you have two, hit them with $70 million. for robbery, 3.5 million dollars last year -- for ferrari, three point $5 million last year. it's unlikely they will go back

to something that low. david: 30 seconds left. i understand that there may be between ceo's and anthony foxx, the secretary of transportation? jeff: yeah, he has called them all in. he was them to say, here's what we are doing, here is our confidence in our compliance to make sure everyone is taking this seriously. david: thanks so much. that is jeff green, the detroit bureau chief. russian oil production climbs to a post soviet record. we will bring you that story, next. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, 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. david: from bloomberg thisuarters in new york,

is bloomberg markets. let's go to mark crumpton for the bloomberg first word news. mark: russian authorities say external impact probably caused the crash of a metro jet in egypt's sign in peninsula. -- sinai peninsula. any direct have evidence of any terrorist involvement yet. claimed each week, responsibility and there is a chapter insive isil the sinai, but we really don't know, and i think once the black boxes have been analyzed and recovered, perhaps we will know more. all 224 passengers and crew were killed in saturday's crash. new statistics from the united

nations show how big they u.n. refugee crisis has grown. the number crossing the mentoring last month was higher total combined. republican presidential candidate jeb bush is hoping to jumpstart his campaign this week. he is on a tour at the same time a new book is out detailing his time as florida's governor. mr. bush was once considered the front-runner. now he is far behind in the polls. debate performances, republican presidential candidate marco rubio appears to momentum in new hampshire. he is now in third place according to the latest survey from monmouth university. donald trump continues to lead with 26%. surgeon --row

neurosurgeon ben carson is in second place with 16%. our first wordat news right now. you can always find the latest news at bloomberg.com. david, back over to you. closing inets are europe. the at a four-week low as fed considers action. crude falling from a two high as russian production climbs to a post soviet record for the fourth time this year. joining us with more on oil, our correspondent who covers oil for bloomberg energy. what is the significance of this russian outlook? reporter: sure, i think the market or the general commentary is more focused on u.s. output falling from its peak in june of this year, but when you look elsewhere, you see production records whether it is russia or

the north sea, even though north be down nextll year. it's not just a u.s. story -- is not just a u.s. story. david: opec is scheduled to meet, i believe it is december 4. what would the significance of that be? it seems like there is a 400,000 barrel increase price 10 the market.to that is were react in terms of iranian supply coming into the market next year. david: a lot of big companies are releasing their earnings. i want to draw out some of the big things we have seen. it seems you have a lot of companies invested in state

projects, and now we are starting to see real retrenchment? andrew: sure, and i think what awaydoes, it is migration from those long lead team projects, whether it is canada or offshore, reducing the visibility you have in terms of forecasting, and you have more volatility in the mix, more of a unconventional market in the u.s.. from the u.s.,de that encourages more to come on line. that will give them the incentive to bring some of those wells back onto the market. david: you and i have talked about this before, companies shifting strategy. when a company like shell says it's not going to explore off the arctic, how easily can they get back into that if the economic undertones were to change?

andrew: i think they really have to have confidence about the longer-term. as you look 24 months, 12 months, the forward curve, they really has to be an incentive to ,nvest, the long lead times whether it is steel -- you are bringing a drill shift. hopefully there is already crude in the reservoir deposit. you've done the exploration work. then you have the development work. you're talking about a 5, 6, almost 10-year project period, whereas if you go to west texas, you can drill a couple holes in the ground get quick payback on your investment. david: it strikes me that refiners seem to feel that they are doing an ok job? andrew: yes, if you look at the big integrateds, profits were more than doubled q3 2014 14.

i think in the u.s., they have great acreage. you have seen them lower their cost operating structures. unfortunately, i have not been -- it it willown be tough, especially for the oil services companies. that is where we see stress in the market. david: that is andrew caused her joiningdrew caused of us from princeton. jeb bush says he can fix it. the one-time republican front runner close his new book will be a launching pad for a comeback. trip to hawaii. richard branson tells us what it means for the airline's business. is not a house of cards like enron. ♪

♪ david: welcome back to bloomberg markets. i'm david gura. bloomberg business flash, the biggest stories in business right now. carl icahn has announced a 2% stake in american enterprise group, making them one of the

top 10 holders of the company according to data compiled by bloomberg. he has been pushing for a breakup of aig. fetch her janet yellen she will provide the house committee with "copies of the materials previously reviewed by committee including aboard," report by then german ben bernanke. the disclosure is a win for a house now that has been locked in a tussle over oversight for several months. -- kuboment with cuba roaming is when a wireless -- .uba roaming it is the latest american company to capitalize on improving diplomatic relations with the island nation. you can always get more business stories at bloomberg.com.

julie hyman has a preview of insurance companies announcing earning soon. julie: after the close of trading. we will hear at aig. if you look at aig, shares or higher than 1%. full familiar with carl icahn's plans have said he has amassed a 2% stake in the insurer. last week he pushed for the ig to break itself into three parts -- aig to break itself into three parts, looking at three types of business, probably property, life insurance, and the mortgage insurer as well. if you look at the biggest holders, you will see heavily institutional investors. blackrock, and bruce berkowitz's firm also has a 1.5% stake. carl icahn at 2% would be in the top 10 shareholders by size of this company. we will see what comes out with the next filing. at aig in terms of

the breakup into its various groups, i was looking -- since talked about breaking it up -- you have property, casualty in green, and the mortgage guarantee business's smallest, by far. that is the annual revenue measure by the way. allstate is the other big insurer we will hear from after trading. analysts are looking at a 6% decline in earnings year-over-year, but they are looking at an improvement in the auto underwriting. the company had a big auto underwriting loss. the shares, not much changed here. seen property and casualty insurers outperform the market. if you look again at my bloomberg terminal, the s&p 500, i should say that the s&p did better in october, but for the year as a whole, we have seen property and casualty insurers

outperform. we will see if that continues. the caveat is the insurance companies do not hedge or move usually on their reports, but aig's conference call will be key. it is reporting earnings today. if there is going to be a breakup, that would likely be when it is going to happen. david: julie hyman, thank you, at the markets desk. abigail doolittle has the latest from the nasdaq. abigail? abigail: stocks are up nicely. two stocks to tell you about. one is guy works. scenario -- pmc sierra has committed to being bought byskyworks. board says it prefers the certainty of the cash bid by skyworks.

86% of analysts have the equivalent of a buy rating and the forecast suggests thatskyworks could move higher by 46 percent. thatkyworks -- that skyworks couldn't fire by 46%. two important are things to be watching for. 26,000 units are needed to meet the full-year forecast and second, investors will be very interested in the model s execution. havevery important to guidance around the first quarter of 2016. some investors think that those targets will not be met, but today tesla is up the most in two months. david? politics, -- to turning to politics, donald

trump is taking on marco rubio. mark took onn and donald. donald: he is nowhere in the polls. him a lightweight. i said at one point he was a lightweight. i don't mean to be insulting, but i do describe people somehow well. david: let's bring in mark and john. trump did not mince words. john: we talked about a lot of things, but the most news oriented thing was the frontal assault on marco rubio. he is getting traction in the polls and trump does not think much of them. there is not many people in the race that trump has not gone after. he has been pretty restrained

about rubio so far, but the gloves are off. david: you talk to jeb bush. .et's hear what he has to say >> are people underestimating your willingness to fight back? i hope they are. i want you to be the first guy to write the comeback narrative. mark: let's talk about your resilience. some people do not think you know how to fight. they don't know me. ie eight nails when i wake up in the naïve breakfast. mark: where does it come from? i am a grinder. for me, the greater adversity, first of all, it means i will get better. david: he's going to get better. i'm curious how much time yesterday that? mark: he spoke in florida today and he was better. he gave a good speech. he gave a good speech in iowa this weekend as well. his performance is going to

matter. a lot of islands. he was better -- a lot of iowans but he was better. does he want to fight with trump, marco rubio, what to talk about his poor record? he has to put together a narrative. he has that on sundays, but he needs it consistently now because there are doubts about whether he is still in the thick of this. thingsne of the great about chump's campaign is is consistency. in some sense the message of -- about trump's campaign is his consistency. in some sense the message of great again. people know what the trump campaign is about. one of the problems that jeb bush has now, it is unclear to people what he -- is it is florida record? that is what he thought it would be running on. for a lot of voters, apart from 's brother,e w. bush

people do not know what he is trying to get done? out ande has a new book it looks like he is trying to go back to the past, talking about his experience as governor in florida. john: and it has reference to his prolific e-mailing habits. "reply-all" is the name of the book. there is always a danger when he go back to a record that was a wily go. do they have a record question mark that's great. in it's a little too much the rearview mirror. it's a little bit of a nostalgia tour. and runny get someone like marco rubio, a future oriented candidate, talking but your e-mail habit seems a little off key. poll: we saw a new numbers. what did we learn? mark: trump is strong in new hampshire bureau garson is strong, even though he is not spent much time there. after carson, everybody is punched up. people are drifting away from

the narrative of trump is the front runner, but trump is still the front runner. alix: let -- david: let me ask you about the debate about what the debates will be like going forward. john: a lot of the republican candidates are unhappy with the way the debates have gone buspar. they were unhappy in 2012. a system was instituted to fix what people that were problematic in 2012. there was going to be fewer. the rnc was supposed to exert control. candidates are not happy with that system either. what will come out of this? will the candidates get on the same page? with they make commands? will the networks a sea to those demands? that is all, to my my, up in the air. there is the creative process and republicans are slightly fighting -- they were fighting the last war. they thought they solve the problem for 2012, and now they are as grumpy as they were four years ago. david: good to have you both

here. that's mark halperin and john heilemann. an important programming note -- beginning tonight at five clock eastern, you can catch an hour-long "with all due respect ." they will be sitting down with donald trump and jeb bush, as you saw a few minutes ago. coming up, we will go into vacation mode. sirrichard branson talks about virgin airlines' new flight to hawaii. ♪

david: welcome back to bloomberg markets. i'm david gura. hanging out at airports is not a problem for cory johnson who got to talk to sir richard branson. i understand the reason for you being there, the new flight from san francisco to honolulu. looking at my terminal, the flight scheduled to arrive in two hours and 40 minutes.

what did sir richard have to say? cory: is a big deal for the airline to get these two routes. route toched a maui. they talked about how they run richard branson and david cush -- how they generate more revenue by having a happy workforce. check this out. sir richard: could not be happier. and that is what really matters with an airline. we are climbing to 25 routes, both honolulu and maui today and tomorrow. and, yeah, doing everything right. [laughter] importantly, we have 4000 wonderful people who work for virgin america, and do it with a smile, enjoy what they are

doing, are proud of the company, and when you're on a virgin plane, you can feel it. is there a premium for that experience? one could argue that an airline is as price-sensitive as any business? i would say that we do it at a premium. we are about 20% of the other low-cost carriers. the other thing i will say -- price is important, but it's not the only component. shoppedast, when people on price only, that was because all airlines or the same. now airlines are differentiating themselves and you can go out and get a small price premium and small is all it takes to make a difference between profitable and very profitable. cory: [indiscernible] are an airbus carrier. we will continue to be. they make great airplanes. in 2016 entries 17, we are very

interested in another airplane. and the new route to sally and honolulu, will that change the -- to maui and honolulu, will that change the airplanes at all? david: i don't think so. 20% fuel efficiency, that makes sense also. so, interesting stuff out of virgin, going into dallas love field as well. this new airline, going up for revenues. was watching the interview, and the part i liked how he talked about how he and it's uber investor a place at his private island in the caribbean? cory: yes, his place in the caribbean, just an amazing spot by all accounts, but a lot of business happens there. with a lot of

start of groups that go kite surfing with him there twice a year. charity fundraising. they raised about 600 grand last night at an ocean gala. charitable efforts also getting launched a there. anybody finds their way there. david, i think we need to do that. atid: cory johnson, editor large for bloomberg and a kite surfer there. have a programming note. west" expense to a full hour beginning at 6 p.m. you sometime tonight. theng up we will hear from global cohead of m&a at goldman sachs. ♪

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scarlet: from bloomberg world headquarters, good afternoon. i am betty liu. stocks are getting off to a strong start in november as the u.s. builds on its global rally. manufacturing in the u.s. remains pretty soft. you have shire, treehouse foods, visa among those making marketes uruguay the m&a may be poised for even better times ahead. and aig opens its books in about one hour. will it boost carl icahn's case that the company should be broken up? carl icahn is said to be about 2%, making him among the largest shareholders. are about one hour away from the close on this monday. i want to head to the markets desk where julie hyman