loss and will cut hundreds of high-level jobs. plus, carl icahn is pushing for a breakup. and searching for a cure. my cold milk and talks about his foundation's fight against cancer. -- michael milken talks about his foundation's fight against cancer. stephanie: good morning. hope you are ready and primed for a big day on "bloomberg ." i'm stephanie ruhle. david: i'm david westin. we have interesting and important people with us today. us, michaelh milken. and our cohost, erik schatzker. -- starting with us, alan patricof. and our cohost, erik schatzker.

stephanie: to get in the conversation, send us an instant bloomberg on your terminal. you can message us loomberggo.nc mr. clinton, i know you are at the net game last night on social media. come on by. we have room. david: also, get a terminal. let's start with the first word with david gura. david: there is a report that the u.s. stops the flow to a rack of billions of dollars. there is fear the money was ending up in iranian banks and being turned over to islamic state. the dollars are now flowing again after a iraqi officials agreed to put in tighter controls. the u.s. is sending warships into waters in the south china sea heard that comes from the --mander of the u.s. pacific

that it is meant to prevent an erosion of international law. last week a u.s. ro worship sales within 12 miles of an island built by china. airbus a320 one scraped its tail a landing and needed to be repaired. not donepair is properly, it could lead to the midair breakup that occurred saturday. part of the tail section was found away from the other wreckage, indicating it had broken off. now to a check of the markets with matt miller. matt: we are looking at futures falling across the board. after yesterday, the s&p erased all of its losses from august, now down a little bit, about a five-point drop. and the dow jones many drops are down 29 points. i want to point out a couple of issues we are watching in today's market. first off, we have gold down for the fourth day in a row. it was gaining earlier, now it is dropping.

as we get closer to the december meeting and investors inspect more likely a weight -- a rate ldcrease, you'll see goals continue to selloff. blizzard, the maker of "call of duty," buying candy crush maker king digital. public last year for 2250 -- at 22.50. it is being taken up at $18. standard & poor's has put the banks on a negative credit watch, may be cutting their credit ratings because of new rules that would require them to have more debt at his convertible into equity to a verdict government bailout. stephanie: i am keeping my eye on office depot. they are closing 50 stores in

2016. this is not just bad news for office depot, but what does it mean for a company like hp? yesterday they announced splitting off. the kind of products they make our front and center in a store like office depot. erik: keep in mind that office depot is trying to merge with staples. there is still some question as to whether there will be some antitrust push back. stephanie: joseph a bank and staples and office depot -- it could not get sexier. across the board, it seems like stocks are finding their groove. the dow closed yesterday at the highest level since mid-july. at thedaq 100 closed highest level in 15 years. this is mind blowing if you actually think about what performance has been for investors over the last two months. volatility has them up, inside out. david: we continue from october into november. it is pretty bold.

erik: i have been looking at the price-to-earnings ratio. the s&pre looking at 500 at 2100 right now and saying we are back to august 17 but we have not actually hit a new high for the year and maybe things are not so frothy after all. if you look at the price-to-earnings ratio, for 2016 estimated earnings, you see the stock market is at a new high because earnings estimates have been downgraded. the economy is not growing that quickly, and if the price-to-earnings ratio is the best barometer of frothing us, -- of frothiness, we are frothier then we were. started at office depot in 1984 as a venture capitalist.

and king digital -- you have two of my companies here this morning. stephanie: bring it. alan: p/e ratios are what counts. ultimately, you have to have earnings. unfortunately, most of the venture capitalists are backing today like most of the organizations, they do not have earnings. it is really multiple revenues. stephanie: are you concerned that we are back in the 1999 scenario? we talked about all these disruptive innovators and they say if we told you how much money we just raise -- alan: right on the mark. the thingm ultimately that really counts is free cash flow. if you do not have that, shareholders get tired of supporting companies by continuing to infuse money where there is no earning power.

ultimately what counties p/e ratio. erik: are venture capitalists too willing to support companies that are not making money? alan: that is a very big conversation today. people have different points of view. norma's an and abundance of capital, particularly at the later stages enormous-- there is an abundance of capital, particularly at the later stages. many of these companies are working on negative gross margins today, which means the are less than what the cost of producing that service is. erik: in other words, they are giving it away. alan: they are giving it away. erik: amazing when you are giving it away how easy it is to sell stuff. alan: the cost will bring themselves down by volume. we have to wait and see. news, alangood

patricof is going to stay with us. ubs is reorganizing management, third-quarter profits more than doubled. manus cranny is with us from zurich and sat down with the ceo following these announcements. what do you make of ubs' delay and return on equity targets? i think this is what the market is most focused on, second time in three years that they have delayed, pushed back. the target is 15%. the target for this year, they are going to try that. this is a story where you have tax helping the numbers today, legal charges helping the numbers today. get this, investment banks, a 33% return because he is capital light, flow have a. muchnk the market is very -- there is a delay, and he

would argue that it is not a delay, that it is the reality of where we are in the world. that weesponse will be at, that we will get closer to the 15% this year. i think we are not delaying it. return onusting our equity targets. out of 21.ted out, 4 these adjustments are driven by external factor. microeconomic mainly, interest rates outlook. the worst -- "adjustment" is what he is alking about there. in switzerland you are talking about negative interest rates and a fed that is on delay mode. maybe they go in december, maybe in march. roll the dice -- 50/50.

it is dealing in a new world and a , which we thought was going to -- whether it is just good pr in the message, i sort of get it. cranny, thank you for joining us from europe with your important interview. .ow we want to turn to aig aig has just made an announcement that they will be cutting their senior level of employees by 400 people. i wonder if this means that carl icahn is already getting his way. stephanie: when you have another quarter of losses, you have to do something. david: bloomberg's sonali basak joins us. what is his job cut and ozment telling us? -- his job cut announcements telling us? sonali: this is a lot more

severe than a lot more people were expecting. constructionllion costs are going to take, $300 million goes to severance and termination. it is definitely big, but shares are down this morning. the market is not necessarily reacting positively yet. people are going to want to see more. people want to see restructuring in terms of what you will take out of business. david: often the market reacts favorably when there is cost cutting. are they reacting to the earnings not news rather than the cost cuts? sonali: they are reacting to both. they took charges on hedge funds, a state in china that it typically performed well, but the previous quarter had a lot of turmoil in china. the earnings came out to $.54 a share compared to more than a dollar estimate from analysts

surveyed by bloomberg. so people were upset about the earnings, but these people really want to see what is down the line for aig in terms of what they can do to turn around the ship. erik: the big problem for peter hancock is that he has lost control of the narrative. carl icahn is in control of the narrative. you are right that at some point investors may look at things like restructuring. it is expensive and some job cuts as a positive -- it seems everything he does is in response to the demands that carl icahn is making that we need to break the company up. wherever he is, he sucks the air out of the room, he and donald trump, in each of their orbits, they take the air out of the room. stephanie: if you are the ceo of a publicly traded company, how do you fight back? carl icahn and donald trump have

so many weapons -- if you are the chair of the company, how do you come back? erik: at the end of the day, what matters is that shareholders win. what is not clear is that whether in the situations carl icahn enters the shareholders end up being the victors. everyone knows what cells in the news is negative stories, controversy, and certainly carl icahn creates that kind of controversy wherever he is. even when enactments are involved, it is not at the same noise level as one carl icahn is involved as an activist. it creates an atmosphere in which shareholders may be more receptive to carl icahn and saying there is some money that can be found here, bringing up some of the regulatory capital by splitting it up. alwayshe outsider can

see where you can make cuts, and probably that is the case of any large american corporation. carl icahn, frankly, is very smart. he knows what he is doing. stephanie: we assume that he does. the benefit of the doubt that we give carl icahn is extraordinary. if you are the ceo of a company on a board that you know that carl icahn is knocking, he has a track record to move it. if you are peter, you are backed into a corner. erik: it is not like he is sitting on his hands. carl icahn entered the picture less than a week ago. we do not know if the restructuring plan, as announced today, existed a week ago before carl icahn was part of the discussion. alan: nothing happens in a week. this happened -- this has to be planned before him. i cannot imagine a ceo reacting to carl icahn. david: there was a larger narrative that carl seized here with his restructuring.

few hundredtting a jobs, actually breaking the company up into pieces. thatll be hard to seize narrative back. they post better numbers. the only way to silence carl icahn is by putting the numbers on the board and reviving the stock price. if you can do that, then the argument does not hold much water. nothing better than a higher stock price. stephanie: we have to move on. sonali basak, breaking it down. and if you want to get involved in the conversation, please do. alan, have a question for message us. or send us a tweet. you can always find us there. when we come back, we are talking volkswagen getting hit by more emissions allegations. -- with this time,

they are not taking it on the chin. we are just getting started. ♪

david: time for the bloomberg business flash. it couldow estimates have to pay up to $5.3 billion. the firm has held talks with the justice department over settlement claims involving sales of mortgage bonds. a person familiar with that metal says -- with that matter says it could cost bloomberg up to $3 billion. activision will pay $5.9 billion for king digital. activision is the biggest videogame maker in the u.s., making call of duty and world of warcraft. in demand for bmw's sport-utility vehicles rose. so did sales of the 2 series and 4 series cars.

they are locked in a battle with audi to maintain the lead with luxury car sales. stephanie: we are focused on shares of volkswagen, the stock down almost 3% after the company rejected epa allegations that it is cheating on diesel emissions tests. let's bring in hans nichols, who is following the story in berlin. give us an update. this stock has only gone in one direction over the last month. opportunity?ing not if the night keeps falling. hans: we do not know. we do not know how far they can reverse. we do know that 10,000 vehicles, according to the epa, could be affected. 10,000 is not a lot. what is important is the brand. the brands are porsche and audi. up to this point, porsche had not been affected. late yesterday in germany,

middle of the afternoon, here is what they said. they said vw has once again failed to comply with the law that protects clean-air for americans. volkswagen is saying while they describe the software in these vehicles a little bit in accurately, the fundamental software does not amount to a defeat device that they install on the other cars that they basically cops to. no stretch ishat involved to change emissions results in an admissible way. importantly, the porsche 2015 that has been affected, according to the epa, and then tro models -- quat they have not sold yet, but they

are not on the streets, they are still on the lots. david: as i understand it, the distinction here, which is a good legal one but to the public it is subtle, is between adequately disclosing and intentionally misleading. that is a hard thing for a ceo to sell. when they arely already on the hook for damages that they do not quite know from the epa what they are going to total. the epa could throw the book at them and ask for $18 billion in damages. that is just the epa side. there are a lot of estimates, but no one has a good sense for how much this is going to cost. there are estimates ranging from 30 billion euros to 70 billion euros. i am not in a position to give volkswagen any sort of advice. i am puzzd by the antagonistic tone toward the regulators. that you do them a fair amount of damage. david: hans nichols nichols in

berlin, thank you for joining us. let's turn back to alan patricof. ?s there a bubble stephanie referred to the late 1990's that we all remember fondly. but it strikes me, there might be one big difference. a lot of those companies were publicly traded. they have gone with an ipo. now we are seeing these unicorns backed by companies like yours. is that a big difference? -- you haveicorns to put it in context. are lessabout -- there than 150, a unicorn defined as $1uation in excess of billion. if you are over $10 billion, you will probably have five to 10 at most. the number of venture capital investments are probably in the tens of thousands. there are more than 2000 or 3000 every year. or in nonell group

of us know what the reality is because we do not have access to the figures. the first big one that is important is square, which is going to go public this week. they are setting the pricing. that will be an indicator. i have said all along, the unicorns must go public. they do not have the alternative of selling out in a private deal because there valuation has -- because their valuation has gotten too date. we are -- has gotten too big. now it is going to be accessible to the public market, and all the things you are talking about goingagen, aig, ubs, is to affect the unicorn. what happens next quarter? much of that investing has been emotional in the last year. that fear of missing out -- when originalabout the backing of these companies and what the valuations are, people

get excited and in the us and they are piling in. could that be a signal that this is a bubble and it is going to burst? when you look at insurance companies and investors racing to the valleys? alan: i do not want to put us into some special -- we do not play in that area. we play in the earlier stage, small valuations. stephanie: are you selling to some of those guys? alan: i would love to. large funds have a lot of money that they have to put to work, and they think they will be in a pre-ipo valuation. that is why you see investments and theand airbnb squares. the test will come -- first you have to have an ipo market. this year it has been very weak. if you look at the numbers, it is way down from where last week is. -- have ultimate test they done so in the first

quarter and the second quarter? , it is bubble breaks going to permeate all the way down the line to the private companies. have --t greg croft, how have you avoided that? you had buddy media and -- alan: i am you follow our record. we have gotten into all of those companies when they were doing no business or $2 million. takexcessive valuations place in the sea rounds where companies are much larger. we have to go to a commercial. alan patricof. we will be back with more. you are watching "bloomberg ." ♪

david: something pretty extraordinary happened in thailand sunday. this is -- cam footage which

captured what appeared to be a giant meteor crossing the night sky. site saidstronomical that it was expected to be a meteor. stephanie: the only shower i saw was last night watching the panthers game. just watching it on tv you felt like you needed an umbrella. david: the panthers are doing pretty well. welcome back. here with us for the hour is three tom keene, fresh off the airwaves, the radio airwaves -- you have the morning must read for us. rogoff talkingn up the fed. essay on short, sharp communication challenges that are out there bank. there. are out

alan patricof, have you ever dialed up a president, a secretary of treasury, and said, "you idiot, do not raise rates"? do, it willer they be wrong. if they raise rates, you will have naysayers complaining about what they did. know how toybody calculate any transaction? nobody in the room could do it. do you know how to calculate the rate? rate the short-term overnight is, what, 20 basis points? are you taking internal rates of return after what jalan yellen and ben bernanke -- after what janet yellen and ben bernanke have done? alan: i subscribe to the theory that we should be prescribing this type of value to long-term expectations.

dealing with companies in the unicorn state that are growing today at 100% per year, and all these valuations are predicated on a continuation of those kind of extraordinary rates. grow 50%, you almost cannot raise money today. assume -- i wonder if the world of alan patricof assumes prices go down if rates go up. are we going to go down in value? alan: it is not going to be anything. they do not play that world. buying those stocks and building those companies -- first of all, it is all based on equity financing. it is not real long-term debt. debt does not enter an interest rate into the picture. it is equity financing. david: i want to defend the fed

for a moment because there will be naysayers, no question. in terms of the markets, the way they have handled this, i wonder if the markets have not baked in whatever happens, so that there will not be a major shift in the market no matter what happens. tom: ken rogoff is talking about that. were you better off when there was less committed haitian? alan: absolutely. -- when there was less communication? absolutely. it was not that way 10 years ago. nobody paidtivity, that much attention. stephanie: are we paying attention as to how much business is getting done? we love to talk about it and the media loves to elevated. alan: i do not think it makes that much difference. you would not see these kinds of massive buyout worried about a quarter percent or a half percent. tom: one of our young turks

yesterday, i had to educate them . stephanie: you had to educate them? tom: when did you meet them? when did you meet hewlett and packard? alan: i assume they met back in the -- tom: did you ever meet them? alan: no, i did not. tom: what does the new hewlett-packard do? she does meg whitman do as tries to save technology with guys like you doing all these other projects? alan: first of all, we only wish our companies would get -- office depot in 1984, it had two stores. today we are talking about closing down 50. at this stage, we are long gone. david: what does hewlett-packard do? we know what they do -- they split. good company, bad company.

tom: they are struggling with innovation, 47 deals every 12 minutes. hard for: it is very these technology companies to turn the page. when you think about innovation, you think about the sharpest, youngest minds. do they want to go work at hewlett-packard or ibm? alan: that is the sad part. igive a lot of speeches and keep saying you do not have to start a company because the graduated -- the guy who graduated last year things that is smart. go to work for a startup, and make a difference in a big company. general motors, hewlett-packard, ibm -- they can use a lot of the smart rains and make an impact. ibm,anie: if you are hp or you need to bring the sexy to the graduate students and undergrads from top universities to make them want to be part of your organization. right now they want to be part of a jack dorsey world.

certainly out in the midwest, they are more successful in attracting graduates from local schools. coasts do not have all the brains in this country. my day, if people went to work at disney, they went to work at espn and not the daily news. a son who went to harvard. that was the best job you can get coming out of harvard, strap planning at disney. david: they ramik company back in those days. tom, thank you for joining us from "surveillance." now we will return to the frontiers of medical research. i sat down with michael milken in new york city. we started with the outlook for funding. i am more optimistic than i

have been for the last six years . that is how long i have been as the ih director. we made marks in terms of appropriations for nih. now it looks as if there is a budget deal for the next two years that breaks through the sequester, which has been the most incredibly stupid way of managing a budget that you could imagine. it is wonderful to have that relief. the appropriators need to figure out how to divide this up. the other bright light is the 21st century cures bill, which billion for nih over five years. that will be -- that had in it 8.7 billion dollars for nih over the five years. we need to turn the corner. maybe this is the year when we will. david: i know you are a big proponent of the 21st century to your bill.

what are the chances it will be enacted? michael: i like to step back. when i think about the effort we 1998, between 1995 and with thousands of others, we had half a million people in washington and around the country that double the nih budget, tripled the nci budget, increased financing of cdc. when people say what changes the course of history, that incremental investment that stopped in 2004 has laid the groundwork for the science today. as we think about it, those seven innings, the american incrementalted in $250 billion. are we going to be around in the eight or nine in -- in the eighth or ninth inning, from

that standpoint? the leaders in bioscience will be the leaders of the world. so china, india, u.k., singapore, japan -- whereas we have decreased, they have substantially increased. those people in business probably underestimate more than more than fact that 50% of all economic growth in the last 200 years is tied to medical research, bioscience, and public health. the statistic that i always focus on is, in 4 million years of human elavil illusion -- of human elavil illusion -- of human evolution, we have byended the average lifespan

40 years in the last few decades. relationship with francis long before his time at nih, but this is important. we are making decisions about the future of this country. as you know, there are many challenges for medical research companies that are based in the united states. stephanie: is one of the challenges that american people have become so addicted to short-termism and short-term is all? you were looking for the -- and short-term resolve? is that one of the challenges for america, that they want yours and they are not willing to go back in time? i do not think so. francis? francis: companies are in this unfortunate situation of being driven by the quarterly report,

which is probably not good for them either. medical research is not what you call a 100 yard -- -- a 100-yard dash. we should be working on that now. maybe we should have been working on it five years ago. they are long here in terms of going to a basic science recovery. a real breakthrough has happen in the last few years. if you go back and try to figure out what were the steps that got us there, a recent analysis said it was probably close to a century of work, had probably 7000 scientists who made significant contributions to get us to these checkpoint inhibitors, which are such amazing advances for diseases like melanoma. we have to make sure we are not getting so focused on all of our money going to outsiders, today's has to go to cancer, to .iabetes

you never know when that next breakthrough is coming from. michael: i think the founding of --ter cures was saving times saving time saves lives. when france's sequence the human genome, it took 13 years. today for $1000 in an hour, you can get your results. i personally believe that we are living in an age that you can actually find a solution for your disease in your own lifetime for the first time in history. the solution might be extension of life, not that you have eliminated the disease, but you of theabled a delay ultimate outcome of potentially using her life. so you find a solution, and this message, we need to focus on the end scientists. if i step back and look at the last 40 some i'd years of our own philanthropy, i would tell

you the highest rate of return has been finding young scientists in their late 20's and early 30's, and most nobel prizes have been issued for people who had ideas when they were in college or graduate school. they might have won them at 65, but the basis of that idea -- stephanie: the one, the only michael milken. there are 75 leading companies today who worked back in the tech space. since his company dissolved. alan: he is a hero, in my opinion. i watched the transition from the creditors ball to where we are today. because of his own personal medical problem, prostate cancer, he devoted his life to some incredible things, science and the cure for cancer. he saved a lot of lives,

personally. stephanie: we will have more of our interview with michael milken and francis collins later in the show. but we will have more with alan patricof in just a minute. tweet us or send us an instant bloomberg. talking to the ceo and cofounder of one of the new right-sharing apps. ♪

david: this is "bloomberg ." toyota had its best october yet in the u.s. 2000apanese automaker had -- 200,000 vehicles here last month. that is 11% more than a year ago. company officials

think they will need to sell only half the many -- half that many to satisfy regulators. walgreens is the nation's biggest drugstore chain, with about 8100 locations. the newest james bond film is expected to have the biggest u.s. opening in the 53-year history of the double 07 -- of the 007 series. it is expected to pull in $90 million over the weekend. with "specter," their deal with sony expires. that is the news you need to know at this hour. stephanie: now joining us, via cofounder and ceo. alan patricof is here. you will need to know this. it is his number one mode of transport in new york city. via guy.

congratulations. you started this business in 2012. how did it come to be? very much.nk you my cofounder and i started this in 2012. we were inspired by a private shuttle that operates in israel, a supplement to the public transom sister -- the public transport system. they are a great way to add the public transport service. we had the idea that we could add a layer of technology to this and route them dynamically so that you could book them on your phone and they would take you where you need to go. you get this sort of dynamic bus experience that is efficient, quick, and affordable. stephanie: are the drivers full-time employees? daniel: they are independent contractors. we only operate mondays and p.m. s, 6:30 to 9:00

they work with us when they choose. alan: you pay them an hourly rate as opposed to the other services? daniel: that is another difference that we have. we pay them based on the amount of time they work versus the number of rides, the number of people that they pick up. that gives the service a very specific field. we have plenty of women drivers, too. they are not rushing to the next pickup. feel.t a very calm david: tell me about your market plan. i do not remember the last time something was this viral. how did you get this so widespread so quickly? daniel: that is one of the great things about via. they tell their friends. 90% of the people join us through referrals or word-of-mouth. that has been one of our great selling points. it comes down to the fact that people want to have great access

to affordable transportation. cities with good public transit, people use them. they sell the cars or they do not buy cars. use somethingto that is dynamic, that works for the city and helps reduce congestion and pollution. stephanie: we know uber's number one problem is not funding, it is regulation. it is the government stopping them, blocking them. daniel: we are about to launch in new york city. so far that has not been a problem. a shared ride -- we typically will have four or five people in the vehicle and it is good for the city. we hope that continues as we expand to other cities. would you want uber to buy you? daniel: we are not for sale. the market has tremendous potential. if you look at the business that are providing, it

is creating a better taxi service. we have the opportunity to create a much bigger bus service. the: i was looking on bloomberg terminal for evaluations for some of these companies. there are so many. you are looking at the evaluation for -- at the valuation for an indian company suchrecently, many people as tiger global put money into -- about $1.1 billion. there are so many of these businesses. none of them have gone public. is that not the kind of thing that entrepreneurs and start up companies want to do anymore? there is no need to go public? daniel: i cannot speak to all these other folks. it is way too early for us to go public. at this point i think it is a bit too early.

alan: what kind of growth rate from a revenue standpoint do you talk about? growth point for us is 20%. alan: that translates, in terms of the conversation we had, to 200% or 300% per year. hit that about 25 times so far. david: what is your load factor? at five dollars a pop, you have to have several people in the car to make it work. daniel: we need to build the scale. when we first launched in an wea, expanding the hours operate, if we do not have enough people to fill the car, it does not work for us. we are incentivized to get as many people as possible in the car. a vehicle in the morning may have as many as five. stephanie: we have to talk barriers of entry. what happens when uber says we

have a great idea? us, there isnk for pretty unique technology in doing this and efficiently. the product we have built has been grilled -- has been built from the ground up for sharing. we ask you to walk to the corner, you are waiting for the vehicle. it feels like the bus. we are putting this on top of an existing service like uber. it is certainly harder. a very good service and it works. i learned from my west coast office. they taught me a word. is a user,," which not an investor. i promote it to my friends. it is tough to sell to some people who think it is more elegant to have either a chauffeured car or a private ride. it is a good experience. stephanie: congratulations.

daniel: thanks very much. david: thanks so much for joining us. before we go, we have to talk to you about politics. you are a big hillary clinton supporter. is that fair to say? alan: i have fully disclosed my leanings. david: what is your quick take on the republicans? alan: i think they are confused and cannot figure out what to do. the argument against cnbc -- i thought that was a great debate where they asked real questions. i guess the republicans cannot handle real questions because they were very substantive area they look at them as hostile. i thought it made the program more interesting. stephanie: is it concerning at all that hillary clinton seems to be taking somewhat of an aggressive stance against wall street when she has some pretty big wall street backers? alan: i am not concerned. hillary is a very smart woman.

she knows the facts and she knows that wall street has some good aspects to it. the height of a primary, lots of things get more polarized than they are, and i think after we get past this phase, there will be a more balanced position. i do not think that she has the hostility some people think she has. you like to see her run against the least? alan: who is the most substantive? i think john kasich. stephanie: when we return, activist blizzard is buying the maker of the popular game candy crushed. more on that when we return. ♪

vw rejects claims that a try to fake emission test with a bigger engine. aig, carl icahn has

more ammunition to break up the insurer. they will fire hundreds of senior staff. challenge.ou how to get men involved in the progress of working women. -- and tina brown's new challenge. how to get men involved in the progress of working women. welcome to the second hour of "bloomberg ." i am david weston. stephanie: i am stephanie ruhle. here with us is the ceo tina brown, also known for her time as editor in chief at "vanity and "the new yorker." let's give you first word news. david, what do you have? david: transcanada corporation wants to delay on the keystone pipeline.

they have asked the state department to suspend their assessment of the $8 billion project because they want to work with nebraska authorities on the pipelines route, but critics say transcanada is hoping to delay the decision until after the election in hopes the next president will be republican. those killed in the crash of a russian jetliner making a visit to the st. petersburg more today. nine bodies have been identified and the jet was bringing vacationers back to russia from egypt. egypt's president is scoffing islamic state lehman that it brought down the airbus. russia's government and airline officials are making conflicting claims about the cause. angela merkel that support on the approach to the refugee crisis. the head of germany's lobby says the refugees if sacrifices are made. angela merkel has refused to close germany's borders. now over to matt miller. down across the board

after the s&p 500 erased all of august loss yesterday. we are saying -- we are seeing many contracts down about 41 points for the dow jones. to a look at shares and fitbit. this company crushed it on our news, beating eps, crushed sales, lifting sales forecast going forward but it will sell conditional 7 million shares and that could be as many as 21 million and it will lift restrictions on employees selling stocks, so that is why you see fitbit shares down 8% in i have beent, but looking into the wearable market and it had 70% of the market share between now jawbone. hadican eagle outfitters and beating eps with $.34 a share, prillaman are third quarter paragraph sales up 9% and they are buying a small

brand. fiat cross the, i have been looking forward to car sales. jeep sales soaring as usual, the huge, huge winner for fiat chrysler. fiat chrysler sales for november up 15% and we're looking for games of 13%, so it is 67 months of consecutive failed for fiat chrysler. that is not unexpected that shares are down 1.5% in the premarket. stephanie: as you said, fitbit lifted the seller's restriction on the insiders and the employees who could sell their shares, that is 10%. that is 2.3 million. once that clears and them selling does not mean they do not believe in the company but they simply could want to buy a house. you could see a series spy up again, because they crushed it. matt: it is amazing how well they do versus i would've

thought jawbone owns the market because we here in the office that they are all using those, what is it? the fitness challenge. stephanie: we did a great when this summer and we will get it back, but it is not necessary they are killing job on. look at nike, adidas, under killing theis not other, the category is getting bigger and bigger. connected fitness is growing. david: interesting. stephanie: that is a bad shot. david: now we have to go from fitbit to candy crush. halloween may be over, but there is a sweet candy deal this morning. king digital to by entertainment, the maker of candy crush and a $5.9 billion -- $5.9 million deal. us as we this struck will cut this morning. at first, a strange marriage between call of duty and candy crush, different games.

carolyn: brutality meets sweet is a bizarre mixture, but it is relevant for where i am because king is based in ireland, making the most of the rather advertising corporate tax rate they have in ireland, but this is a 6 billion, closed a $6 billion bet on mobile. "call of duty" maker has gone the taste for mobile gaming. digital card game that does well, and now they want to embrace the franchise that is candy crush and candy buth tsonga, but -- saga, they have made more than 200 games. i can only think of two games, the candy crush games, and they will have to be more than a one trick pony. to $6 billion worth of volume and that is interesting, it is a 60% premium

in the waking digital was trading today. compare to the ipo price elastic, this is 20% under that. people were wearing about the future of the company. stephanie: what is the value proposition for them? two they just want to get into the smartphone game? caroline: i think that is right. this is the biggest startup event in the world. 40,000 people are gathered at aremoment and all consumers computing on mobile. you see the likes of google getting into the enterprise because we will move enterprise to mobile as well. it is all about being a touch away from smartphone and i think this is a big that on mobile gaming and smartphones. when everyone commutes, they play candy creche, of the competitor to people who want to own your mobile space. david: matt miller, take us to bloomberg. matt: one of our most basic functions or fundamental functions of financial analysis,

fa, i look at this for king digital and i noticed that it is a cash cow. they have $785 million in cash just sitting on the books. that income is 572. up from nothing in 2013 and they are steadily making 550, 5 hundred 60, 500 $80 million a year. this is the kind of cash cow that may warrant a $6 billion purchase -- $6 million purchase price. stephanie: caroline, we will see more of you today. he will be sitting down with the chairman bill ford later today at 10:30 eastern on bloomberg television. tina, 40,000 people in dublin for a tech summit. many people have said the live event business is getting overcrowded and people who simply need to get jobs or raise money, but is that not the case? you were in the epicenter.

tina: the more people are addicted to the screens, the more they want to go out. it is a fact, it is odd, but people are so tied into their that itle mobile world is only really by going to abuse things that they have social interaction. it is a tremendous, booming thing. people want to get out and what does he live content. i think it has a little to do with how media has become so disappointing in terms of being able to give you a nurturing content in terms of or diving deep into content. it is hard to do that. hard to do that imprint because that is dying and online, it is about the intake of information. if you want to dive deep and get that nurturing nutritionist content, live is appealing. stephanie: if you have a question 14 a brown, guess what you can do?

you can not just tweet us that send us an instant bloomberg. what do you want to know? she wants and nutrient rich experience and you will get that right here. she is delivering that. we have got to go back to europe, not to dublin, we are taking it to volkswagen setting up a showdown with u.s. regulators after they projected the epa's allegations that the emissions scandal included porsche and other high-end brands. we will bring hans nichols who was following the story. : what we have from volkswagen is saying they did not fiddle with the device and they did not install that on the porsches and audis, but they didn't advertise them falsely. the charge from the epa is it is inually doing something not the interest of u.s. consumers or u.s. air breathers and here's what they said -- folks five and has failed in the obligations to

comply with the air --volkswagen has failed to comply with the obligations for clean air. they say that they may have done false advertising but they did not install it. volkswagen stresses that no software has been installed in the diesel engines to change emission results in and in the in an inadmissible way. we have new auto registration here in germany for the month of september. we have everyone who is in the positive territory, except volkswagen, they actually went down below the overall market when down about 0.9%. forward is at the highest with 11% -- ford is at the highest of 11%. maybe there is a move toward american manufacturers. david: tina, you have covered scandals through the years. one of the first years is -- one of the first rules is to get out in front of it. i don't feel like volkswagen is getting out in front of it.

tina: it reminds you of the british phone hacking scandal, spreading stain that will go on and on. the things that is bad about the new portion news is the new ceo and is he going to clean up the situation? if he turns out to be tarnished by this, this is an mega-disaster for volkswagen. good. it does not look hans nichols, thank you. tina brown is staying with us. if you have questions, you can send this message is on instant bloomberg on the terminal or social media on twitter at bloomberg tv at our own handles. up next, research shows many companies do not think inflation is a big deal. we explored this next on "bloomberg ." ♪

welcome back.

you are watching "bloomberg ." aig earning calls underweight and the ceo is under attack from carl icahn and is already addressing his proposal. let's take you to julie hyman in the newsroom who is been on call. addresseder hancock the carl icahn proposal right of way, almost out of the gate. the company slipped into three and hancock says, no, it does not make financial sense. he and the board management had considered this on a number of occasions. easily, they considered the but up that carl icahn proposed into property and casualty to life in shirt and a mortgage insurer. he says it does not make financial sense. he says we will meet with carl icahn and talk to him about what he has or what he thinks to further share our conclusions and give him an opportunity to elaborate on his views. pretty clear that aig is saying,

we will not do this at this time. david: thank you. we will have more updates because it sounds like the battle is joined. julie: without a doubt. david: they will be going to shareholders. julie: good for peter for standing up. stephanie: they did not make him ceo for nothing. david: meantime, brendan greeley is with us. welcome. i was perplexed by this when they first phrased it, but explain it. i will walk you through it. i found a paper being presented at the european central bank this week. basically, it is once again shocking to discover how the economists know about how businesses actually make decisions. economists look at the business data sets. the data sets we're looking at our surveys from new zealand. wyatt new zealand? new zealand used to have crazy inflation and then they set up inflation target machine of 2% in 1990, so this has been a

model for the rest of the banks. with is a data set interviews with 3000 businesses of what they think inflation expectations are going to be. when they discovered when they looked at this is that there were two basic set of inflation expectations. there were some companies that understood what was happening. there is a nice distribution to look at inflation under 5% and this is pretty much how it behaves. as nurses understand what is happening with inflation, only half. the rest, distribution looks like this and they don't pay attention to inflation and they don't know what causes it to move. there is a difference among kinds of companies. let's pull up the third chart. if you get manufacturing and trade, a are exposed to foreign exchange and they have to follow and understand inflation. very poor understanding of what information does. these companies are professional and financial services and construction as well. matter? this

monetary policy is supposed to guide expectations of inflation. you have heard of forward guidance, something we have been championing since the recession and firms making decisions. it does not work for way we think because people do not behave the way we think. bias betweennstant economists and central banks assuming everybody is looking at available data but that is not too, even for businesses jeopardy since it skated -- even for businesses who are pretty sophisticated. david: the fed is sending out messages that companies are not getting? brendan: correct. david: the fed seems to spend time and effort but i'm not sure it is working. i have am fascinated human behavior never factors into some of these type of decisions at all. greed, insecurity, impatience, neither are human -- their human factors no one factors in and we see that becoming a crisis financially when business people

have not figured out into behavior. david: and jealousy and rivalry. tina: there is that. toxic testosterone. all of this drives the market. david: what is amazing is when you talk to economist, his work, he won the nobel prize about how people are irrational, and it still is finding its way into real economic views. the lifetime is huge. tina: humans are deeply messy. closure is emotional a huge issue and bringing women into the mix is important. stephanie: ding, ding, ding. tina: i know plenty of limited have none, but making that diversity is critical because that impacts it. -- we onlywe should heard about yet you in the last.

. headhunters say it is one of the top things they look for. i had not even heard of it. womanone of my heroes, a leading financial institution in iceland, the only one that did not go belly up during the financial crisis. she said, i do not get this. everyone else was charging around and making terrible decisions and she said, i am not doing it. brendan: sheila in the u.s. said this was in same. the only regulator. said this was insane, the only regulator. they're using testosterone to say, look couple i can be. there are real differences in the way people act financially. david: if you look internationally on leadership, when you have more women in leadership in the countries, the country's and to do better with fewer wars, better investments. tina: at the woman of the world

summit, they made a point that it is the power of three on the board. one woman is a token, two women is a minority and three women is the decision-making group and you have to have three, that is the motto. stephanie: where is the disconnect? talk about what you have learned at the woman in the world summit. there are women who want to be ceo and there is not a company out there today that will openly admit they do not want that, so why isn't it happening yet? people havehink people they know, so when it comes to picking boards, i do think the men that are mostly in charge want to have the people in the foxhole on a deal with so they turn to that person or people they know in that circle. sore are predominantly men, that reinforces it again and again. secondly, one of the big problems is this leadership pipeline of women is not getting better. theory small games in that --

very small gains in that. so many women are dropping out of the work force and it has a huge problem in the goes back to the worklife and women just give up that a certain point and say they cannot handle all of this with so little family time. they will have to make horrible decision. stephanie: is that corporate america's fault or is that just life? tina: i think there are real changes in corporate america. with these companies are beginning to understand is it is bad for business for women to leave. you invest all this time and money to grope women leaders and then they disappear, so you have this is alike task myth -- this is a male ceo, but they recently decreed a 16 week, fully paid leave and that is the first multinational agenda. they found that recruiting and training employees to replace women cost 27 billion dollars,

far higher than the $20 billion of maternity benefits. it is good for business because it keeps women in the workforce. stephanie: the companies are ready for it, they want to bring women back, are their husbands, home?s ready to stay tina: amazon is now giving eight weeks of paid paternity leave which i think is good. m&a, we had the german defense minister, amazing woman with seven children and the defense minister, who she has been involved in her career. she dresses these issues of work life and she has seven kids. she is unbelievable. she changed maternity laws in germany. they have one year paid maternity leave and also two months, in addition, paid paternity leave which the men only get if they stay home when their wives return to work.

it has transformed the whole women, and inn, germany, it was a competitive culture where he recalled a raven mother if you left home and went to work. david: matt miller, weigh in. matt: i found this interesting in the controly room found it for me. this shows women in charge of companies, it is a barclays leadership index in the white and orange is the s&p 500. thehave to see that since inception of the index in june of 2008, it is up 110, 111 percent, so maybe it would be smart to invest in companies run by women. brendan: i think also policy extract and culture follows. this is something i have a lot of experience with. i wife is a professional with lots of german fresh and they were astonished she decided not to stay home.

also asked the host of additional women, i feel like men are just coming to the discussion and discovery what the daddy track is. we are beginning to have arguments with their own bosses about with the daddy track is. if we are going to have women in the work horse, it is not just about men staying home and taking a traditional female role, it is about finding out how they have to change and what does this fast-track look like. stephanie: my school meetings need to stop being at 9:00 a.m. are you watching? we have to go to commercial. before we go, i want to share one of your notable interviews with amy, who is clearly got the quite the road. take a look. they did the things that, it is personal, but i will share. have to do with e-mails. i did learn you should always say exactly what you think

directly to people all of the time, yes, everybody understood because we all live in this. we all are nice. [laughter] stephanie: revealing. what was your take away? tina: i thought she was quite brave and controversial. doing the course of the interview, i asked how she respond to the fact that the and theyere revealed pay women stars less than a, including stars to the mind to the jennifer lawrence and she said, women will settle for it. women settle for less. david: we will come back to you. tina brown will stay with us, next on "bloomberg ." ♪ 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. stephanie: welcome back. you are watching "bloomberg ." hewitt this, women in the world summit tina brown and founder of

tina brown media, live. i love when this happens, david. three women on set. david: it is happening more and more often. stephanie: you do not need of a shtag and initiative. david: one is the token, right? i am a token. stephanie: thank you. david: we go to david gora. david: they will send warships into china sea. he said the navy's freedom of navigation patrols are meant to prevent an erosion of international law. the u.s. warship sailed within 12 miles of the artificial reef health by china plastic. of money tol flow iraq because there were peers that they were ending up in iranian banks and possibly being turned over to the islamic state. this is according to "the wall street journal."

the dollars are flowing again after iraqi officials agreed to put in control. they are trying to help -- saddam hussein was in power and he had close ties with iraqi exiles, journalist, and near conservatives in washington. he tried to show that saddam hussein had mass instruction -- had mass weapons of destruction and the magician tried to distance themselves from him. matt: first off, we have been talking about king digital all day. a little videogame maker that got taken out. x ile -- glu mobile and zynga are up today. i want to talk about sprint. they more than doubled the size of the loss that analysts were anticipating. they lost 15 cents and we're they areor loss of --

also cutting investment by $2.5 billion. that could be a problem if they want to gain more customers. pioneer also down one send and that is better than what they're looking for, the loss of a nickel but pioneer revenue miss my 557 versus 782. and remember, this was a big game yesterday at 5% and they said they could double by 2020, well we see, the budget that with 2015 outlook of 325 and they had expected 345. a estimate was 336, so vis budget down 7% in the premarket. david: thank you. there is an aig investor meeting underway as we speak and hear hancock shooting down carl icahn's proposal to break the insurance. julie hyman has been listening. what have you heard?

been going have through financial statements to talk about why they missed by such a wide margin, aig, and it mostly has to do with investment results and market volatility. i want to reiterate what hancock said at the top, almost immediately addressing the icon -- the carl icahn proposal. listen to what he had to say. peter hancock: lettuce outline the plan that includes separation. board haveand the carefully reviewed such a separation on many occasions, including the recent past. it concluded it did not make financial sense. we will meet with them to further share our conclusions and give them an opportunity to elaborate on his views. julie: among other reasons, hancock says that the status of aig as a non-bank significantly important financial institution has not limited the ability to

return capital, one of the things carl icahn has talked about. he said they have noted the benefit that aig has from being diversified through different business lines, and he also pointed out that if there was this separation, it would result in a loss of at least one third of the companies deferred tax assets. hancock making his case to keep aig united. david: as you listen to what ceo hancock says, it does not sound like much of for cap remise on the issue of breaking up the company. brooke: it doesn't, but this is not the quarter you want to come out with any happen activist over your shoulder and pushing to perform better, cut costs, and this is not great for aig. it does not look that awesome. stephanie: what also peter hancock to? brooke: he does make a good point with deferred tax assets, that has been of the concern, what you do it does and it is important to preserve the benefit because it is significant for aig.

there are other alternatives. you could sell divisions, push harder on cost cuts, and having that activist there will have them take a more serious look at what they could be doing better. andd: thank you, julie, thank you, brooke, for joining us. stephanie: we will take a look at how to do good business. alan betty liu sat down with warren's eldest son, and he is investing williams to tackle the world's biggest issues by global hunger. eddie asked him about the difference between -- betty asked about the difference between philanthropy and charity. >> we try to avoid charity if we can and think about we do as an investment, so if you look at what we are doing in congo, we are building three hydroelectric plants. that is an investment and people that benefit are the national park, who has part ownership in the long, and will continue to receive income.

people benefit from it, obviously, in their homes having electricity for the first time, and businesses will be built, so farmers will benefit. that is an investment to us. charity kind of comes into play when there is not a good opportunity to make an investment, but you feel that there is something you should do, you're compelled to do it. stephanie: it is not just tina brown's first visit to liu iserg ," betty in the house. welcome. one thought,to get philanthropy and charity, it seems more and more business leaders are all about impact. ana: this is definitely search trend, which is to have these major business people coming into this area as bill gates has, and to apply this kind of nba attitude in how you create social innovation that will have a big return. attitude and how you

create social innovation that will have a big return. it creates jobs, but at the same time, they could get overly mbaish about it because it is messy. david: there is a limit, but there is the basic difference between systemic change as opposed to just steps. the old, teach a person to fish rather than give them a fish to eat. betty: one of the things he said which is fascinating, he said when he first started giving, he looked at everything like a project. well, this is our project in the congo, and he said, eventually, you go home and what you do disappears, so it you need to do is look at these not as projects that is long-term investments that you are there for 20 years, 30 years and the results will not happen overnight. one criticism of things like philanthropy is that you are giving money away and you not

looking at the return. i think that has been more against his dad warned buffett and bill gates in the giving pledge. the very rich have said they're going to give away more than half of their money, but where does the money really go? that has been one of the things people have said it is not good about the giving pledge. howard had talked about that criticism and i want you to hear what he said. say it i would definitely is working. some people get irritated and do not think it is a good idea, you get all of that. the fact is, my dad could tell you or bill could tell you, you havex amount of people -- you have x amount of people signed up with billions of dollars and that is positive. no one is pressured into it. when of the best to come out of the giving pledge is how families for the first time are sitting down with other about,ions and talking talking about what they want to do and how they will do with it.

that is a really positive thing to have happen. the biggest mistake you could make with 12 and kids is not communicate. -- with wealth and kids is not communicate. david: tina, you have a foundation. tina: i don't, actually. david: i thought you did because one of the things i have seen is applying for grants and you talked about this mba approach that has become more difficult you through put more hoops and you have to justify with the business plan. tina: there is a lot of language attached to people moving into the space and maybe it is the language that i call application language. my concern is there is an awful audit [indiscernible] talking these people about their process and you start to feel that it is not reaching the ground. i do think it is a bit of a trend in these big statements and a vanity is attached. i will own this project and

solve this problem when the truth is you have to find what wto -- what the world food organization will cut off feeding in refugee camps because the fact is there was no money and no grants. it is a question of how deep the people in refugee camps. betty: that is a great point because that is one of the points howard was making. he says to himself, he has a small and the foundation where he could be in that and he compares himself to bill gates. you talk about process, they have immense processes. stephanie: there is nothing small that happens in buffett camp. these generous entrepreneurs, but there is also a big danger. mark zuckerberg eight $100 million and a lot of money got wasted because -- gave $100

million and a lot got wasted. david: there was an entire book written about the disaster. thank you. good to have you for the first time, betty. betty's interview is on the cover of this month's magazine and tina brown will stay with us. us --ve questions or for questions 14 or for us, you can send it to us on ib, instant bloomberg terminal or treatise. us.r tweet the winners and losers in the media according to tina brown. ♪

this is "bloomberg ." yet chrysler rose 15% last month in the u.s., beating estimates. up 33%, overall, they were down 2% but truck sales rose

20%. big month for toyota, the japanese automakers will more than 200,000 equals in the u.s. last month, 10% more than one year ago and been estimates. it was the best october ever for their rav-4 and highlander suvs. -- they say they should have longer-term debt that has either interested in loans but it has fun because they need to keep rates low to similar growth. -- look to stimulate growth. david: thank you. tina, you had a career in media online, and now you are doing live. tell us what that tradition is about. tina: i am in partnership with "new york times" and we are now a joint venture. the take new york summit which we do every april. we are going to india in two

weeks time, which is exciting. we are creating a global platform for women by adding a fourth summit, one each quarter, and creating a global community of women who can feed content, video, programs which you can take between these different global ventures. it is exciting and i don't think it has been done in quite the way we are doing it because we really do is live journalism. this is not about interviews or just discussions. these are about narratives, or the life magazine because it combined stories and cutting-edge issues with high-profile women telling their stories. it is like a magazine. stephanie: what does this mean for traditional media? when you turn on your television set at night and say, what is on television at 8:00 p.m., does that exist in your world? tina: i think tv drama, netflix

has been changed our whole lives. ofave become a binge watcher all the kind of offerings that you see in terms of the world. what i love about it most is we have global access the content. you can watch incredible danish dramas. stephanie: where do you get your news? tina: i find that the drama has become far more important and online is where i go for news because i don't look at television. india, myaking of wife is in india right now and yesterday, she text me and said she was watching "bloomberg " on her iphone in the cabin call cut it. can you believe that? between french channel 24, bbc, i have read the whole lot before i even get to work. i am not going to tvs for news,

i go for drama. stephanie: some people poke holes of platforms like twitter saying information comes from anyone, anywhere. tina: i think it misses the institutional weight of the press. there was a point when there was far more focused media and you could make an impact with a was something everybody has seen and everybody thought was important. the biggest problem -- even though we have a huge find the content, it is that traction for these big, important things. i definitely in the world is much less policed than it was. the great irony is that the more news media we have, the less we can get the traction going in the pressure going to make huge changes in our society. it is a story not getting told. david: "new york times" and "the washington post" can do longform and episode series in print that

have an effect. many outlets.not that is to outlets. there is enormous pressure on these institutions. "the washington post" has fusions, but the economics of these things are hard because there is a lot in volume on opposed to having print and they have not come to tally, so people are just having to always keep having cutting editorials, and it is interesting. never cut the suit, right? they won't say, all of you guys, you should just go and have more creative people, no, he will cut 30 photographers, 25 bureau chiefs, reporters, that is the way it is. stephanie: we are seeing a change because it is not the suits. it is the brooklyn beards, companies like feist, but

vice does not have to tell the same story like "washington post." isa: what i love about vice their ambition. het shane smith does is and ilet's go, charge, think it is great. most of these mbd companies and musclebound by problems and they have no freedom to act that way. inid: let's go back to women the world. you will expand by going four times a year. how was you plan to expand -- how old do you plan to expand? tina: i am interested in doing something three times or four times a year at the times of the summits because it is that permanent thing left behind. people kind of want that, so i'm interested in that. i think would be interesting to try. stephanie: before we go, let's have -- you could have one media medium, one platform, what would

it be? to get your information. tina: i think bbc. david: that was going to be my guest. stephanie: it started with a b and she met bloomberg. tina, thank you. tina brown, ceo of tina brown five. you will stay with us. we are returning to the partnering of tours conference in new york where we spoke to mike milken and francis collins. here's what we asked them about the prospects for precision method -- for precision medicine. david: what are the prospects and over what period time? from gets way one-size-fits-all to preventing illness are treating disease to something that is individualized, taking full account of that individual's genome, exposures, livestock, the hitter patterns, and tried to get the right fit for that individual.

we have been doing versions of sense of medicine for a long time. eyeglasses or blood transfusions, we want to be sure there is something individualized. most of the time today, if you go to your doctor, and you need a prescription or some intervention, you will probably get a recommendation based on the average response and patient . we are not average people. the opportunity now emerges because you're getting all of this traditional insight from genomics, environmental measurements, from being able to walk around with wearable sensors that are keeping track of our exercise and our diet. to do that kind of precision approach, this is a big transition, and inflection point, if you call it that. from where we happen to where we want to go. this program is just about to get launched and we aim to follow one million americans who long periods of time

for partners and sign up to make electronic health records, dna sequence, environmental and dietary experiences, all of that available and it will teach us how to apply that paradigm in a way that we have never been able to do previously. i think there is enormous potential significance in terms of maintaining health and treating chronic illness. willecision medicine change everything in the way we look at treating a human being. we need to treat people for that disease. because the cost has dropped, -- one millionth of what used to become a we cannot treat you for your disease. a recent approval among lung ofcer drugs only affects 1% the people with lung cancer, but for them it is a solution. imagine what this will do to health-care cost when you no longer take drugs or are treated with things that will not work for you and have high confidence

that when they tell you that this will work for you, you will be treated with something for your disease and not a disease. stephanie: are you concerned we will have a slow down? drug companies who have huge spans are getting focus right now. hillary clinton has already voiced concerns about the cost of prescription drugs and how some drug companies can potentially hike the price is. are you concerned with hillary clinton as our president or even the focus for getting out of washington that these drug companies are going to be forced to cut r&b spend? >> i think the public in general is worried about the cost and when one looks at the trend of overall health care spending, you have to be concerned about something of that sort. i think the focus ought to be, what does that therapeutic get you? gets cost a fortune and it you two months in additional survival, that is not quite as

compelling but if it is a chore and you take it once and you are done, and you were otherwise headed for next up in the next months, -- stephanie: then it does not matter if it goes up in price 700%. say, and it iso a controversial area, and we did the research and we basically make sure it is right, basic science, the companies we work with are partners and we want them to succeed because we don't make pills and they did, but in terms of how prices are set, that is way outside the bar area of expertise or having much in the way of impact. >> competition is an amazing thing. >> yes. >> in the short run, you might be able to raise prices, but if there is a too large of a profitt -- of the margin, competition comes into the marketplace, so you might have anomalies in the short run. in the long run, they are corrected. stephanie: but people lose their

lives in the short run. toin the short run, we have measure cost versus benefit and that the people underestimate what a life is worth. if you look, for example, how do much of what an individual life is worth? we dramatically underestimate that. david: that was michael milk and chairman and francis collins. pretty extort discussion. stephanie: extraordinary, and honor. david: i agree. next, barclays investment bank vice-chairman is here. we talk everything from kandi crushed to auto sales on -- from candy crushed to auto sales on "bloomberg ." ♪

david: 30 minutes from the opening bell, welcome to "bloomberg ." i am david westin. stephanie wrote

and we are joined by erik schatzker. erik: the vice-chairman of investment banking at barclays, barbara, great to have you. let's begin this hour with first word and here is david. relatives are making a good visit to st. petersburg more today. authorities say 10 bodies have been identified. they were bringing vacationers home from egypt. egypt's president claimed islamic state brought on the airbus. russia's government is making conflicting claims about the cause and they're telling diplomats to avoid the crash site until the investigation and. the company behind the keystone pipeline was to seal a court case comes out before seeking federal approval. transcanada asked them to spin -- ask them to suspend the nebraskad colossus in questions the proposed route, one of the three states apart and would cross. activists staged high-profile protest and they propelled to a

balcony at bank of america stadium during the colton panthers game in charlotte, north carolina. the bank is helping dominion help build a natural gas facility and environmentalists oppose. a far cry from next year voting, when americans will choose the next president, marijuana is an issue on that the ballot. measures in ohio will determine if they should legalize marijuana and who should vote it. colorado is deciding what to do with the tax windfall from marijuana there. matt: let's take a look at futures after the s&p 500 raised losses in august and it is back down to date or the futures are about 3.5 points. industrial futures down about 18 points. if you take a look in your terminal and type in wrp in the bloomberg, you will get future bets on what the fed will do. you can see in december right now, futures are indicating a

52% chance the fed will raise rates in december, so that is up from 33% one month ago. it has had a serious effect on bonds. the take a look at 10 year are still outors of bonds because if the fed raises rates, you do not want to own old bonds, you want your bonds that have a bigger coupon. also, take a look at the euro right now because this policy discrepancy is coming back into play. if the fed raises rates and the ecb is still doing serious or then you want to be over here, earning more money on your money then you would be if you are over in europe. take a look at u.s. banks. s&p 500 calling into question the radiance of jpmorgan, bank of america, citigroup, up about eight banks because of the fact that there are new regulations approved by

the fed plastic that say if they're real problems, they have to have enough equity that they will not need a bailout by the government, and if they're not too big to fail, maybe they are not the best credit rating s&p 500 could give them. erik: thank you. it is time for the five stories of markets with barbara byrne, number one, tough times at aig. first quarterly loss since 2012 and they plan to cut 400 senior-level jobs. julie hyman has been on the conference call, and peter hancock waited on the carl icahn proposal, did he not? julie: he did. on the strike at the beginning, that is what people wanted to hear about, so he said that the management and board have repeatedly considered what carl icahn is bringing forth, even before. that is to break aig up into three companies, property and casualty insurer, wife insurer, and mortgage insurer. -- life insurance,

and mortgage insurer. they said they had recently considered it and decided it did not make financial sense. he said the company gets a diversification benefit from the rating agencies, in other words, the rating agencies gives them extra credit, if you will, for having that diversified business. in addition, he said even with this significant financial theus at aig has because of size, they have been able to return capital to shareholders, so for right now, the company is standing pat on that plan, even as, as you say, aig came out with a quarter that was far below what analysts had been anticipating. erik: thank you. barbara, whether a dispute peter hancock at aig, or anybody else, how difficult is it asked this yet -- ceo to be heard above carl icahn's megaphone? barbara: i think you can be heard. over 235vist i find

and 45, so carl icahn's iconic in his own way, and it is great that he is still going. i think the activism side is much bigger than -- over 200 billion of assets in activist funds versus $50 billion six years ago. that leverages up to $5 trillion to $6 trillion of purchasing power. you will see increasing trends of companies calling for leveraging companies, increasingly even operating companies differently. it will not just because like on. we find ceos face this constantly. stephanie: you separate good activism from that activism. we see them make a noise but they do not have to be long-term holders. these ceos have to operate companies. barbara: you are right, i am careful on that, you are agnostic on who was good and bad because on any given day, we can be both. it is a question of are they asking the right questions?

matt: i have an interesting look at price, aig versus traveler and ace in the bloomberg. it trails and aig's price-to-book by a lot. there is some room for activism, maybe some need for activism in this or at this company, aig. erik: there is a need for something. stephanie: i will give you number two, standard chartered blasting 15,000 jobs, that is 17% of the workforce in order to by 2018.billion the ceo is trying to reverse the damage by his predecessor. every ceo says that. shares are trading down almost 10%. as they about 5% reorganize management and postpone profitability target after a disappointing

third-quarter report. barbara? the banking industry, will it find its way, especially european banks? theirms they did not get houses in order in time. barbara: i think it is normal. i have been in the business or 35 years and not barclays international. i have a great deal of empathy for ubs and standard charter and deutsche bank as we restructure to meet regulatory requirements, so i think that organizations will get there. we started with a lot of restructuring about 14 months or 60 months ago of getting the cost in line. bill winters is coming under criticism for waiting too long to do this capital raise because the stock has dropped some 40% since he took over as ceo. given the fact it has only been a few months, is that a little unfair? barbara: it is unfair, but it is then an industry that is so

lifeblood of commerce, which is what banking is which is like a to be dependent out at the parties when things go wrong -- which is like it to be the pinata at the parties when things go wrong, but you are restructuring and he went through a financial crisis, a baking crisis. unlike anything since 1907, i don't think anyone was around then, but some might happen, but you have not seen that and it takes, on average, 10 years out in seven years in, so i think it is the right restructuring and we will continue to see it as executives correct course. david: the number three story, u.s. videogame maker has agreed to by king digital, the maker of candy crushed for $5.9 billion. it adds a top mobile to their arsenal. has revenue expected to reach $36 billion and that is projected to grow by more than

50% by 2019. i am curious, i have heard there is a lot of cash as king throwing that out regularly and mobile, but third, king is trading below what ipo price. what is driving the deal? harbor: consolidation. a large trade over 5 billion, driving -- barbara: consolidation. a large trade over by billion dollars. in this case, you get synergies, mobile platforms, technology, and probably generational with "world of warcraft" and it should be an interesting combination, but very much focused on going into the mobile platform and extending the reach is of the business. stephanie: do you play a lot? you and i would "call of duty" and "world of warcraft." stephanie: number four, the u.s. canadian brewer is in talks to buy sab miller's majority stake

in the american joint venture, according to -- the move is seen as critical to winning regulatory approval for the poor is planned of the $104 billion takeover of anheuser-busch inbev as bloomberg reported. tomorrow's deadline for ab inbev is to make a formal offer for sab miller. whether we get into the details of the deal or not, let's talk antitrust. deals are getting bigger and bigger and this regulatory environment, do you think they will clear? barbara: i think what you are seeing in the regulatory environment, as far as customizing, they have to and find solutions. the bigger things get, it creates more opportunities for companies trying to pick off, a challenge for large companies will be can they keep the assets that are critical to what make the merger make sense strategically in the first place? stephanie: they paid all of that money and at the end of the day, there has been a high-yield that

. -- high-yield debt. erik: number five, bank of america ships cash management assets the blackrock. and separate cache the council be merged into blackrock products, and the deal boosts blackrock managed cash assets and this is the day, getting bigger part, to $370 billion, equivalent to the $4.5 trillion blackrock total. the transaction is expected to close in the first half of next year. three quick thoughts, first, this kind of answers the question of how does blackrock get bigger? it would be difficult to see them doing a multibillion-dollar merger, another one, but for bank of america, it explains a lot. in a zero interest rate environment, managing cash is a terrible business. furthermore, the fed does not want thanks cap cash deposits, they want them to have debt so that in a crisis, it can turn to

equity. barbara: that is right. assets are moving to logical columns and it is a zero interest rate environment, expensive for bank of america to manage that and the fed does not want them to have that so they're moving to a home when they can have size and scale and presumably spread the cost. erik: does it feel like this will be the first of several like steels, in other words, if those factors are driving bank of america to make this decision, other banks must feel the same? barbara: i think it will be particular to each individual institution, whether it bank of america used the cash before that, it could be different. erik: barbara bertha barclays and those other stories that matter to markets now. stephanie: barbara will be with us for the hour. but do you want to ask her? you can message us at "bloomberg " or join the conversation by sending us a tweet. coming up next, automakers are coming out with october sale numbers. it will break them down, next.

one of matt miller's favorite activities. ♪

david: this is "bloomberg ." stephanie mentioned auto sale numbers. chryslers get fiat -- sales climbed by one third, fiat chrysler's best october in 14 years. toyota coming off a big month, u.s. sales top 200,000, 10% more than one year ago. they said it was the best month ever for sales of the highlander seb.av-4 folks like and is denied the latest accusations. with larger diesel engines also have the software that trick tests.

it has affected 11 million people's worldwide. matt miller has a look at the premarket. matt: we are checking out some of the movers on our needs. archer daniels midland is one and best on both earnings revenue sides, so archer daniels midland moving down almost 6% in the premarket. office depot with third-quarter sales missed third-quarter eps, in line with office depot shutting down stores and getting rid of employees, and that is normally investors like that but the company like this, it is also mergers in doubt, so down the percent in the premarket. beat by one penny but revenue misses acolyte, so sales were down $3.3 billion and we will looking for a gain of 3.4 2 billion. is cereal out of fashion?

i ate cereal every day. stephanie: are you eating no carbs? you are the reason it is going down. matt: no meat or beer, but cereal isok, right -- ok, right? we are getting vehicle sales, which were up 13% below the 40% estimate and fiat chrysler had sales of 15%. this new fight -- the senior vice president joining us now, welcome. take us to the numbers. jeff: we are talking about another fantastic month after we thought there would be a pullback given the high level we hit on a selling rate last month. we will be pumping rate up again. it was often consensus little bit but in double-digit growth

rates. david: how long can this keep up? matt: a question a lot of people are asking, but we just talked to people from ford and gm on earnings the last couple of weeks and they said they think it could last a couple more years. adam jonas over at morgan --nley thinks the numbers but merely great numbers out of the companies as far as growth and profit are signs of a top, and he says this is a sign or a signal that you should be getting out of the industry as investments. david: there was demand after 2008 and people stopped buying cars for a time, is there a limit to these kinds of demand? barbara: i will find out. financing is cheap at the topline revenue growth and we are not seen that in a lot of earnings this quarter. we are seeing about 70% of topline growth and meet their earnings growth, the

opposite of what we are seeing, so it tells me that they have the ability to run this a bit longer and also tells me that the consumer, this is the consumer-driven event and that is a positive sign for the economy as a whole. stephanie: we talked about auto financing, not necessarily where autots manufactures make money, but it is in the financing business. just: no question, when you look at the overall environment, consumers -- jeff: the question, when you look at the overall environment, we are seeing a big rebound in leasing, so i think all of those doctors, leasing is on most 30% of transactions, and all of those factors are driving consumers into showrooms. also benefits the finance companies. there is no question will continue to show the level of earnings that supports the auto industry and automakers. erik: i want to ask you about the latest development concerning volkswagen.

according to the epa, volkswagen had cheap devices on not just two liter diesels but three. volkswagen is denying it but the letter from the epa is raising serious concerns about one of two things, if there is a conspiracy at volkswagen or does anybody them know what is going on? jeff: it does take a lot of questions. we will see this play out over the next weeks, if not months, so it will be a long road to see were the truth lies. and ultimately how consumers respond. so far, we have not seen a massive pullback in sales, but volkswagen is using higher levels of incentives to manage through this scandal. matt: and they don't only make diesels. tina had one of the best points, new ceo wasthat the the head of porsche and he has been brought in as someone to clean up the mess. stephanie: but what if the mess was in his house, too?

matt: exactly. porsche has the biggest margins over any other volkswagen brand and any brand in the world. you see porsche margins out of --over how the margins and audi margins and volkswagen basically has to give away the make shares. if the ceo was close to it and making the same products, that is a bigger problem. jeff: today's allegations point the finger at audi and porsche, not just volkswagen. matt: the letter from epa is clear, it says the cause of devices installed in them that allow them to act differently as far as the toxins they are spitting out of their exhaust pipes and when they are in testing then when they are on the road. if they are sending out poisonous toxins that are 40

times the real limit, it is a real concern for porsche and the company. barbara has got to weigh in. from a corporate crisis management respect, some people have compared it to enron and others bp, what is your take? barbara: it is real the fact that we are talking about it and it is a global brand, the real crisis of confidence in the company. any time you touch a brand in this way, and any time you have a situation where the customer or the client is impacted, it will take some time to fix this. changing up management and making it right is something that happens and you have to fix it. from the banking industry, whom i to throw stones? you have behavioral issues, you need to root out the cause and move forward and be there for your customers. david: given the specificity of the epa letter, for volkswagen

to come out and say that they do not have this to five, it was a missed medication, they must have been some studying to believe they had a good case on this. so.: one would hope given the way they responded to the initial study and cannot to say, yes, we did do this, stick with us and we will ask this, i would suspect that if that were the case for the porsche and audi, you would hope there may come clean as well. however, they initially denied it was in any other engine other than the one that was represented initially with the two leader. -- 2-liter. if it ends up being too, this opens up a whole new can of issues in the u.s. and globally. looking at their diesel penetration in europe, this could be catastrophic. stephanie: thank you. jeff, thank you. barbara burns mentioned bad actors but there are good

actors. there you have got at the new york public library cala, steve stevezman -- gala, schwarzman, and it was a big night in new york. ♪

stephanie: welcome back, you are watching bloomberg . the year of the megadeal. m&a is on track to smash records and yesterday we asked goldman sachs head of m&a if he expects this to continue. >> the nature of the deals we are seeing are large transactions. that continues to be what we see in the pipeline. shareholders receive the seals quite well. at thee continues to be table, so when we look at the pipeline, we are encouraged. stephanie: barbara byrne of

barclays is here. do you agree? barbara: i do. this is the largest m&a year we have seen on record ever in terms of size. there are actually fewer deals that have occurred but they are bigger. of 70% ofn terms transactions are over five ilion dollars. and what that speaks to our major transactions among incorporates. that's what you are seeing. are reaching for revenues and cost reductions, trying to address technology changes to increase productivity. and i think it will continue. companies have been ratcheting down guidance, do you expect that to drive because profits are so hard to come by? most companies are making their profit estimates.

where they are challenged is on revenue and a large part of that , where can we grow? and that goes back to global growth. and that speaks to the macro environment. so whether you have china, who ,tated they would stay at 6.5% or the qs with rates as an all-time low, we have spent 12 trillion in qe. so they are pedal to the metal. point asus hike is not going to make a difference. at what point does it begin to matter? barbara: rates matter of right now. at which point in acquisitions? it does matter right now. it depends on where the transactions are occurring. many of the times they can occur is in higher yields. in the energy arena for the rates are back up 300-400 points.

becauseways will matter it is the cost of funds. the real question is, do we ever get back to real interest rates as we might remember, the present-4%? and when that happens, what does that do? erik: what does that do? stephanie: we are one million miles away. bigara: we are all having debates about when he goes up to andasis points from 0%, that tells you, and also you will have the u.s. moving rates and you have qe going forward in europe and interestingly, we ,ave alluded to this in times but you have alluded to the sovereign wealth funds in norway or saudi arabia that have $3 $3 trillion in assets

and they are selling them now. so that is negative qe. that is having an impact on the markets. that makes sense because those are commodity markets. erik: we talked earlier about the sab miller deal. we raised the question as to how many industries out there, particularly in this country, have reached max consolidation. where into trust becomes a barrier to any dealmaking of any size whatsoever? barbara: one of the things to think about is what does technology mean to that? i was having a conversation yesterday, how big can you get? the new york times talked about this on sunday, there was an op-ed. and they said m&a was bad for inequality. erik: that was the takeaway. barbara: m&a is about regenerating companies and creating opportunities for jobs.

but 10 years ago, if you have books were sold, he wouldn't have thought kindle was going to transform. , youed to have blockbuster would rent those things and it would be a cash flow machine. but it disappeared. and look ather kodak. it had every opportunity to be the leader in digital and it missed it. it didn't do m&a when it needed to. and it is not just a question of huge m&a, although that is what bankers focus on. is barbell.ll -- it the only way we are ever going to get lift off economically is if we can get technology to give us greater productivity, that will give us the ability to move revenues and push wages. that is where we need to get. i guess theut

disappointment long-term, when we look at corporate america, they spend more time buying back shares been doing anything else. what is the value there? barbara: it is an interesting point. zero --st of capital is when the cost of capital is zero, the number one rate of stock is buying back stock. so that tells you, where do i buy? you are trying to balance capital allocation with shares and growth. david: this is an important point. when you buy back shares, you admit that you have no better idea of what to do with the cash. if the fixed income allocation, especially if rates go up, they are looking at total return. you are looking for dividend stocks to perform well. thingthe same

economically, but i agree. i think you can be recorded for doing a smart transaction that gives you the ability to grow. and that managements do exist in order to be able to grow asset races. -- asset basis. david: matt, let's check in. first off, you can see the index is down across the board. futures indicated that. s&p 500 down 6.5 points. the dow jones is down 30 points. -- shows you an industrial breakdown. who are the winners and losers? today is a day where it is almost all red. there is only one gainer and that is energy. take a look, you can click into it. the big winners

are. look for the brightest green spot and you can see conoco phillips is one of the biggest winners of the day. at what oil is doing today and you will see oil. up 2%. 47.05 right now. gold is on the way down on the concern that the federal reserve is raising rates. if you individual movers. aig, we have been talking about that with julie for the entire program. going up against i caught -- going up against carl icahn doesn't usually hope a share price. selling 14sharing -- million shares people don't like that. foras raised its forecast the whole year and crush it as far as earnings in the third quarter. and then you have the avis budget group plummeting.

currency factors were the reasons that it missed on earnings. what it is also lowering its forecast. big problems there, as shareholders are concerned. a drop of 12%. let's head over to abigail doolittle. she is thinking a look at the nasdaq movers. abigail: monday's merger mania seems to be continuing. activision blizzard is buying king digital entertainment for by $.9 billion. dutydeal unifies call of with the leading mobile game, candy crush. that her presents a 16% premium at monday's close, but it is at a 20% discount to king's ipo price. both companies are very excited thatactivision ceo saying

the combined entities were serving half a billion players each month. other than youtube and facebook, there isn't it bigger market for entertainment. as anl continue to be run independent unit, it opens up opportunities that they didn't have before. are twoup on this news trading stocks wargaming, zynga and blue mobile. next in today's value proposition, how do millennials feel about banks? do they love them, hate them or don't trust them? stay with us. ♪

david: this is bloomberg . blackrock will manage $87 billion of assets for bank of america clients.

bank of america money funds are being merged into black rocks offerings. it will push the assets over three inches $70 billion. walgreens is going to sell up to 1000 stores in the takeover of rite aid. the company says selling half of that could set aside regulators. walgreens is the biggest u.s. drug chain with 8100 stores. changing breakfast habits are catwalks. sales and revenue slumped in the third quarter. you can blame that on matt miller's new diet. more americans are grabbing their morning meal on the run. this is where we zero in on controversy, the future of inking. do millennials trust tanks? here to kick off the conversation is barbara byrne.

old-school financial institutions seem to have lost the trust of the millennial generation by way of quite demonstratively screwing their parents through the financial collapse, during the most emotional time in these now adults, but at that time kids, days. it is not that they hate the banks, they just don't trust them. erik: with a different point of view, here is the ceo of wells fargo. >> the human interaction is still critical. offices areion and still in office the important. erik: millennials will still go to banks? >> they will. they open up the first account. my 40th year in the industry. this is the strongest growth i

have seen. i have ever seen in terms of deposits, loans and household acquisition because we have distribution and we have customers who want to deal with us. so when you say millennials don't want distribution, i would say you are 95% right. they don't use it every day. but if you don't have it, they won't bank with you. erik: barbara byrne of not aey's, so, you are commercial banker but you are a banker. i do have done a lot of business. barbara: and i am the mother of four millennials. erik: where do you stand? barbara: i think they're both right in some respect. thetal is the flow of banking industry. you have to have a bank account. what is changing now is

technology. millennials will be the largest working force out there. they need to bank somewhere and some of them -- and many of them bank on their phones. that all of it has to clear somewhere. it is not just the phone, where is the cash? it has to happen, so i think the millennials -- the two issues, do they trust banks? trust is what banks are supposed to be. it is very safe. i can put my money in this palace. but we don't have palaces anymore. we have a phone and you have to trust that money is going forward. trust is key, and rebuilding that trust. four millennials, it will be a real challenge to see how they force the industry. great gift to banking and business because they ask questions and they have a lot of drive. i thinke a lot of edge,

the edge is entertaining. when you think about our industry, investment banking, people will say that nobody wants to be hired. really, we get about 20,000 applications for 200 jobs. they're great jobs and the issue is finding the right people for the right time. stephanie: the financial crisis happened over six years. why can't banks change the narrative? it will take a while to get to a normalized economy. isn you break trust, which what happened with financial institutions, it takes time to earn it back. and you earn it back by performance and actions. messageneed to take the from what the trust was an you need to reinvest it in the business and in your people. your employees, clients -- stephanie: you had a ceo, antony jenkins, that is what his mantra is doing the right thing and

treating people well. and the story didn't end well with him. did an: i think he amazing job from the cultural perspective. think about where we were in the summer when bob diamond exited quickly because of the issue around my board. a terrific job on cultures and value. i don't think he failed, i think he succeeded by building that platform and now we have a new ceo coming in who i have yet to meet. and he will take it from there. erik: knowing what you know will the new ceo, how culture adapt to having an american in charge of a british bank? barbara: i don't think about british and americans. stephanie: we are global citizens. barbara: we are. i was there a couple of ago when the rumor broke on jeff and i

asked several women from jpmorgan what they thought of they wouldy said walk over hot coals for him. women don't say that about men very often. [laughter] it was pretty unusual. so i think it is going to be great. leadership is about sequencing and handing off. see you go to antony jenkins who reestablished the coulter and the initial restructuring and now jeff will come in and move on from there. erik: how long do you think it takes, going back to the comments about rebuilding trust, before that cycle hits the bottom and starts to move upward? barbara: i said earlier in a crisis that it takes up to 10 years. we are seven years in, we may have another three years of climbing out it is true that

this generation has made change. and about how technology has changed and how people are banking. erik: photographs of checks. barbara: different ways in which capital is being raised. crowdsourcing. to the wellsk fargo ceo, you have to have infrastructure area and when it comes time to buy your first house, you probably won't do your mortgage on your phone. i think we all fight the last four, what is the next four? stephanie: times are changing so much. think barbara byrne could be the new ceo, but that is just me. david: next on bloomberg , a look at some of the best moments. ♪

david: let's take a look at some of the shows highlights as heard on bloomberg go. >> unicorns must go public. have the alternative because the valuation has gotten too big. all of the things you are talking about with volkswagen, ups -- it all affects the volkswagen -- the unicorn. the highest return has been finding young scientists. have been prizes issued for people who had ideas when they were in college or graduate school. stephanie: you are not for sale? >> no. a product that we have built is built from the ground up. you get a very different feel. how humanscinated by behavior doesn't factor in. bringing three women into the mix is important. havehat women necessarily

an emotional push. i know plenty of women who have none, but making that diversity in the decision-making process is critical. >> in an industry that is the lifeblood of commerce, that is what you get to be the piñata at the party. it takes 10 years to come out of it and we are seven years in. it is the right type of restructuring. before you go, let's talk about the film project. i understand that stephanie and erik schatzker star in it? barbara: it is a film called it is about a woman banker,n investment taking a high-tech company public. stephanie: how did you get involved in this? film finance is a gnarly place to put your money. trying to get that money back out --

barbara: i was involved earlier this year when a friend came to me and introduced me to alicia reiner. an actress who is also a producer. she told me about the story, it is a story on wall street where the woman is the protagonist. is the investment banker in her early 40's. she is taking companies public and is in a man's world. it is a story that hasn't been told. they said they couldn't raise the money because nobody would support a woman's film. you're probably seen a lot about the fact that wall street is women -- wall street is bad for women in business, and take a look at the film industry. there is a big study going on. erik: is there something autobiographical going on in that? no, likely not. i'm a huge supporter of women in

the business. i think there should be more of them. and i thought, here is something where i can make a difference. it is a story that i wanted to be told and i thought it would be fun. david: when is it out? they just re-cut some scenes. they felt like some of the news casting scenes worked strong enough. [laughter] stephanie: they screened it and said, what is missing? [laughter] barbara: it is exciting to see a woman take the lead. stephanie: we had a great day with you barbara byrne. what a day. that doesn't for us on bloomberg go. we will see you tomorrow at 7:00. ♪

10:00 in new york and 11:00 p.m. in hong kong. welcome to bloomberg markets.

from bloomberg world headquarters, good morning, i am a little. here is what we're watching this hour. aig is firing back. the insurance giant is rejecting the proposal from carl icahn to break up, saying that splitting off is not the right thing to do. ubs, the swiss bank reorganizes management and pushes back profit margins for the third time in two years. and the forward of the future? how much will the web it be a part of your car. we will ask the chairman. we have some breaking economic news this morning. want to head to julie hyman, she has those numbers. julie: