from bloomberg world headquarters, good afternoon, i'm belly -- betty liu. see chapter four is out tomorrow . the countdown begins. disney earnings are coming out after the bell. will the force be with it? stock diving -- stock is diving below $80 a share. we are one hour away from the close of trade. i want to to head to julie who has the latest. : the tight range we have been in. the bouncing around without direction, because people are waiting for the jobs report for more direction.

take a look at the terminal. what is moving the most. this has been volatile and changing. financials right now are higher. mike regan was talking about it earlier. some of the regional banks are seen as benefiting if rates go higher, will the jobs report help the fed? we will have to wait. fallingare and tech are today. let's talk about health care more --valeant pharmaceuticals 16%, but 14%out now after the company came out in a statement and said the board still supports the ceo. this was after the wall street journal published a story this morning saying that bill ackman was considering selling his entire stake him up before he

decided to actually buy more shares. they had questioned the company leadership. we are seeing biotech shares fall. endo pharmaceuticals has followed a similar playbook to valeant. celgene results reflecting disappointing sales of their cancer medication. there is facebook. technology is falling, facebook is holding onto games, up 5%. $300 billion -- more than that in terms of market cap. betty: incredible. you're watching currencies as well? julie: as we heard from mark carney, this is after the bank of england had decided to remain on rate. carney did they it would be prudent to expect a rate increase in the next year.

even after those comments, the house remains lower -- pound remains lower. he also talked about the strength of the pound saying we have not seen more of an increase in inflation. if you look at the two year yield, in terms of u.k. debt, the has gone lower following the bank of england. if you look at the two year yield in the united states, you're seeing a different scenario with the expectation that the fed might indeed raise rates in december. 0.84%. at one point it was 0.85%. that has been climbing. betty: it has. thank you. julie hyman at the markets desk. let's get a check of the headlines. mark crumpton has more. latestet's get to the with the downing of that russian passenger plane today. the white house saying they

cannot rule out the possibility of terrorism in the crash. it was over the sign a peninsula in egypt. islamic militants took responsibility for it. saying it was in response to a military strike against isis targets in syria. he told reporters he could not discuss what u.s. in touch -- intelligence officials have learned. a new poll finds a majority of americans have doubts about the u.s. plan to stop them. six in 10 surveyed by the associated press disapprove of president obama's strategy for fighting militants in a lot -- iraq and syria. those who want to study be fine print of the pacific rim trade deal have their work cut out. the terms are on line today. the deal may be ratified by congress and 11 other countries. the parliament in the values voted to impeach of the country's vice president. he is accused of plotting to

kill the president. he is facing terrorism charges after a bomb exploded on the president's speedboat in september. the president survived. noticed,bly already but your grocery bill is getting higher. says -- a new u.n. report el niño has caused food prices to climb nearly 4% in october. that is the biggest jump in three years. the news, you at can get more on these and other breaking stories 24 hours at the new bloomberg.com. from a first word desk, i'm mark crumpton. betty: thank you. itk on the fed, and whether may proceed with a december rate hike if payrolls rise as much as wall street is. projecting according to the latest poll, economists expect 185,000 jobs have been added in

october. capeng us is michael --michael gapen and rich moeller. let's start with michael. on what we are expecting, 185,000, will that do it for the fed? michael: it would give the more confidence. i don't think that would be the final answer or word. payroll of rebound in growth, up from the 140,000 we have had in the past two months should be a signal to them that the uncertainties from abroad, the emerging markets weakness, the volatility following the evaluation, that has subsided. firms are in cautionary mode, but now they're back into hiring mode. that is in line with the consensus 185 should edge them closer to moving in december. i would not say it is a done deal.

betty: rich, dig into the details for the report tomorrow. ath: the fed will be looking what happens to the on employment rate. if that falls, it will give them i'd -- get them worried we are in full implement territory. janet yellen has paid attention to appointment. probably maybe most importantly average hourly earnings. finally this tightening of the jobs market if that is leading to any wage increase for americans. , aren'tn many respects wage is important, or as important as an actual number of jobs created? if we see weakness on that front, wouldn't that show some doubt? michael: the fed outlook is clearly tied to economic labor markets,ts

that supports stronger wages, and that helps them get back to 2%. you need labor markets to support the inflation outlook to either allow them to go at a rate they think is except of all. that could -- acceptable. that could be an argument where they end up going slower than planned. i agree with you, at some point you need to see it in wages and services inflation. otherwise the link between the two is difficult and planning for raise increases -- rate increases. someone calls this job reports monumental for the market. rich: until next month. betty: put it in perspective for us. you have seen many of these reports. how important is this. give us some context. compared to other moments in the last two years. rich: as michael said, the fed has put a lot of effort --

emphasis on the job market. not only because of what that means for the overall economy, but for what it means for inflation and getting back to their 2% goal. they really for the focus on this. they have also put the focus on december. this jobs report and the next one that comes out before their meeting in december, they will be crucial to deciding whether they decide to go or not. betty: absolutely critical. michael, earlier as julie referenced, mark carney was interviewed. they left their interest rates unchanged. they've are further on the path when it comes to raising rates. john asked the governor, what about fed policy? how does he view what we are doing? i want you to listen. mark carney: it has been performing well. we have seen them in the high twos.

that is material for demand in the u.k.. that is the one of the reasons we see our economy progressing. i am confident it will make the right decision at the right time. betty: if we start raising, that puts us further out from our peers. should we worry about that? should that be in the context for us? michael: i would make that a secondary consideration. we are 70% consumption. trade and manufacturing are feeling the softness from abroad, those are smaller components. outlook is fed's that consumption is solid, final sales to domestic purchasers is growing closer to 3%. that is similar to what mr. carney said. to takethe fed will try care of its own house, assume the boe does the same. i think the fed will keep there either. betty: -- thank you. both for joining

me. much more ahead in the next 20 minutes of bloomberg markets. disney scared investors last quarter with fears about net cord cutting. investorsars force to think differently. facebook surprised investors. it is now better -- bigger than ge. ceo gets a new vote of confidence from the board and one of the newest investors. ♪

betty: that afternoon and welcome to "bloomberg markets

yuriko -- markets." today, the latest restaurant chain announced they will no longer using regular bigs. --eggs. panera says they will switch to cage free eggs. ge is nearing its decision on whether to leave the connecticut home of more than 40 years. a new budget is raising taxes on wealthy individuals and companies. political leaders and new york, ohio, and taxes are also moving g. -- ge. worker productivity grew in the third quarter. the measure of employee output per hour increased at a 1.6% annualized rate. exceeding wall street estimates.

you can always get more business news at bloomberg.com. in just about an hour, disney will report its quarterly earnings. will be forced be with the media giant -- the force the with the media giant? espn announced losses and the layoffs of 300 workers. chris paul marion joins us from l.a. to give us a big picture on disney. will disney be able to deflect any hard questions on properties because everyone is expecting some gang buster numbers from star wars? chris: it is not come until december. i do not think this will be the star wars quarter yet. thatw in august, they said espn and was experiencing modest subscriber losses.

believe, they will use their words carefully today on the conference call. everyone will be looking at the cable tv is this. -- business. betty: the question is directed at if you will try to deflect questions about espn and cord cutting by focusing on the future and looking at star wars. chris: i am sure will get questions from analyst in terms of star wars. what is the future of that franchise in terms of six more movies, how long can they keep? a going is in the next marvel? is it the next pixar, there will be questions about that. betty: what will analysts be looking for when it comes to espn? sort of commentary on subscriber losses, the future of the cable tv business, profit growth, this is an angst ridden week already with fox and time warner suggesting that the cable

tv business is not robust. everyone will be looking for some vision of the future of tv. betty: it looks like espn has been doing things to cut costs. they are laying off workers. they have closed down properties that are pricey. is that enough? chris: we will see. shrewdly in the past cut costs at espn and delivered profit growth. they have new networks. overall ad revenue in the tv business is pretty strong. that might be a savior this quarter. betty: what about the parks? chris: parks have been going gangbusters for quite a while. they raised ticket prices earlier in the summer, and again last month. they're doing that because people are coming, even at a hundred dollars a day. i expect that will be a strong

profit contributor. betty: the biggest question on investor's minds? chris: the tv business and the film studio. whether this particular quarter will be looking at result for inside out, which was a sleeper hit and antman. whether those movies can continue the strong growth. betty: thank you so much. palmeri.l marion -- more ahead on bloomberg market. facebook growth is surging, so is the stock. has market enthusiasm gotten out of hand? ♪

betty: welcome back to

"bloomberg market." let's head to abigail at the markets. abigail: it has been a big day at the nasdaq. one of the biggest stories is expedia announcing it will acquire home away or 3.9 billion dollars in stock in cash. this represents a 20% premium to home away's close on wednesday. its the home away against competitor, airbnb. it helps expedia by putting it firmly into the vacation rental space in an area users can not currently access to the website. the company's ceo says the deal is clearly important for a certain group of people. we will look to hold the rental products over time. investors are cheering the deal. shares of both stocks are trading higher. the biggest earnings story, facebook shares are surging. trading at a record high after

the company put up a record stellar third-quarter yesterday. beating street estimates. surpassing key metrics. they say they have more than one billion users a day. the monthly user growth is up 14% to 1.5 5 billion. the strength in advertising is contributing to this. price targets have been boosted. takent piper jaffray has his target to a high of 155. this suggests it could move 40% higher than other levels. amazingly, the company market cap now surpasses that of general electric. betty: incredible. facebook is bigger than ge. abigail doolittle at the nasdaq. -- it hasn facebook

been a long ride, but it certainly seems very recent facebook has killed it. i want to get those sarah frier and san francisco. -- in san francisco. it really is video ad revenue that people are excited about. have become ads increasingly common on facebook news feed. this is part of an overall try it -- trend for the company creating ads that are higher quality and get higher prices. they are done in an option basis. instagram also have the full power of facebook's advertising tools. that was all ported over to instagram in the last quarter. it is a huge bump. have already delivered such an incredible quarter, you can see that reflected in the stock movement, what will they do to build on this?

the thing about the -- facebook is they have so much business. they have not even started to think about monetizing whatsapp. oculus has not started shipping headset -- they shipped to developers, but not consumers. that does not start until next year. oculus, whatsapp, the messenger product which is just starting to experiment with businesses coming on -- i think there are many levers of growth that analysts see down the road. that is why there raising the price target. -- they are raising the price target. betty: is it bad news for twitter, google, and others? sarah: i think they are getting a bigger share of the mobile advertising mark

it is growing steadily. i think the difference we see ads as -- is as google's become more frequent, the prices going down. as facebook ads become higher quality, the price goes up. they're trying different strategies to achieve this revenue growth. i think increasingly see -- you see situations like ad blocker on mobile phones. facebook has found ways to in bed -- embed advertising so deeply into the product, it is more difficult to block. none of the ad blockers do it. , they areore we go still missing in that big market in china. is that seen as a headwind for facebook? sarah: mark zuckerberg said he

does not feel like he can connect the world fully until he connects the biggest country. however, china has a big, vibrant, advertising market for facebook. they connect to sell ads to people in other countries. they are still going into china. zuckerberg is putting his mandarin on display, giving frequent speeches. he is trying to appeal to the chinese potential users. no clarity on whether they will get unblocked. betty: sarah frier in san francisco. still ahead, the valeant drama hits a fever pitch. the stock is tanking as the third-largest investor comes out in support of michael pearson, the ceo. more on that story. ♪

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desk. mark: the united states says they cannot pull it -- really out the possibility of terrorism in the crash of a russian plane on egypt's sinai peninsula. they say the u.s. has not determined what brought down the flight. early warnings for flying in the sinai. >> faa noticed two airmen. actually raised the floor on u.s. aircraft. u.s. security officials have been keenly aware of the risk in this part of the world. they have been taking steps all along to address it. mark: the british government says repatriation flights from sinai will begin friday with only hand baggage allowed. refugees aree expected to reach europe before the end of next year.

that is the latest projection from the european union. more than 700,000 people have stopped sanctuary this year. germany reports taking in 181,000 people in october. -- the homeland security department says secret service protection has been approved for donald trump and ben carson. the republican front-runners requested protection last month. approved jeh johnson the request after consulting with five members of congress as required by law. the house of representatives today approved a bill that renews transportation programs for six years, but only pays for three. 363-64l was approved with wide partisan support. it also gives reauthorization to the export bank charter. the national toy hall of fame class of 2015 is out. the winners -- twister, the public, and the super soaker.

last year, little green army men, the rubik's cube, and bubbles took the place. joining old favorites including barbie, frisbee, and viewmaster. that is a look at first word news. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. from the first word desk, i'm mark crumpton. betty: thank you so much. let's get to julie hyman has do -- who has more on what is moving ahead of the closing bell. julie: ahead of earnings after the closing bell. i wanted to take a trip around companies you have been reporting. you are talking about disney. let's start with stake shack -- shake shack the revenues could jump. same-store cells will be a key number. 9.1%. that is the average analyst estimate. the company has opened five new domestic restaurants. those are some of the measures that we will be looking at.

you can see the shares are surging up by 3%. trip advisor will be out with its numbers after the close. earnings per share estimated to rise by 13%. revenue estimated to rise 21%. those shares -- little changed, but there have been acquisitions activity in the industry. it will be interesting to see the commentary. some other companies have reported relatively strong bookings. of course there is disney. disney shares headed into its report, down by 2/10 of 1%. they are trading relatively close to the record high after recovering following the big august as long. as betty was talking up -- big august slump. we will be waiting for commentary about espn. hint as to the effect of cord cutting on the company numbers. this is sort of a waiting.

period before the big star wars rush in the last quarter. let's take a look at the terminal as to how these stocks are performing. here you have disney on the top. stock.he highest priced even though it had a big slump earlier, it is up by 20% year to date. it has mostly recovered. here you have trip advisor up 11% in the middle. and in shake shack stock is up 140% since january. you have to consider these movements in the shares going into these reports. betty: thank you very much. , the plot begins in the drama. the third-largest shareholder bill ackman is coming out in support as he has been of the drugmaker. he writes today a fresh letter to the valeant ceo, he says

quote you are one of the most shareholder oriented ceos i know. you have assured me you are considering any and all alternatives that would benefit shareholders and other stakeholders. that is comforting. joining me now is anthony scilipoti. a sell onl, you have valeant. anthony: that is right. betty: for several years you have been one of those voices who has raised concerns. bill ackman seems comforted by what pearson has done. how about you? anthony: i think pearson is in a tough spot. he needs to make some difficult decisions. i think the decision that was made an became clear in that presentation given to investors, they attempted -- he attempted

to say they did not know or what -- were not quite clear on what they were doing. a few days later when more information came out, they shut down -- claimed to shut down to little or. -- philidore. interesting because valeant controls them. focusing for a moment on bill ackman, are you puzzled or surprised by the amount of -- his publics statement on valeant and his support of the ceo as of late? anthony: i think he is human. put 20% of your

fund in one particular stock, use the stock move. he wrote the e-mail that was circulated in a wall street journal. .t was a knee-jerk reaction maybe he thought about it and said he was supporting the ceo. ready: for those who did not read the story, in the e-mails the they stated they were going to do two things cometh either sell their valeant shares come or by more. he decided to buy more. where do we go from here? do you play -- lay the blame on pearson? pearson, for sure as ceo, but i think there will be some difficult answers that need to be addressed -- or difficult question, that is what was the board's responsibility? what was the auditor's response

ability? what was the regulator in the pharmaceutical industry's hand in all of this. the auditor and the company disclosure -- and looking at just the transactions of the insurance. those questions need to be addressed. betty: this stock is trading at $77. back in august it had reached a 52 week high of 263. where does it go? anthony: i think it will move on news. that i would stock be recommending people buy. if the allegations and news and issues that are circling the name come to fruition these could be damning. betty: what could put a bottom to this?

where could the bottom be? anthony: where can you find bottom? i think when we get answers to the key questions of what happened and what was known and philidore, ourto estimates were they were a significant part of the organic growth. betty: they have already said it will cut ties with this company. they say they resolved that situation. anthony: no, they have not. the question becomes, what is this company do going forward to grow? the past it was a growth by acquisition, does not d, now it isr and put on hold because they cannot make acquisitions. we have heard rumblings they need to spike up the r and d.

until the business model is clear, we cannot get a trajectory on the cash flow projections. betty: anthony, good to see you again. veritasident and ceo of investment research on valeant. bank of england maintaining rates. janet yellen says it is a live possibility for the rate hike in december. ♪

betty: good afternoon and welcome back to "bloomberg markets."

all markets took notice of the bank of england decision to keep the bank rate at a record low. the british pound is tumbling to its lowest level since september. mark carney spoke exclusively with john nichols. carney was noncommittal about when rates may rise. the guidance initially was about early stages of recovery and what are the minimum conditions required before we begin to think of raising them. if you look at the historic reaction from the bank of england, given the string of the 2013 and 22014, the strength of purchasing managers and the growth, historically, the bank would have raised rates three times. you can tell, that would have not been the right thing. it was partly in the hands -- finding the hands of the committee to say let's see what

the attraction is for the recovery. that was a sensible thing to do. i think it actually did give people confidence to continue to invest. subsequent to that we have given guidance about the path of interest rates. limited and gradual. we have repeated it so many times. it is part of the furniture. that is a good thing. that was a colleague made in december of 2013. two years ago we made that call. now it is accepted. it has been consistent. recently what we have been challenged with is what is the right timing of starting the process of limited gradual rate increases. this economy has been making ofe progress in the judgment the committee, including myself, it has not made enough to start that process. at some point that will be there. the majorityr have

of the british people thinking rates will go up in the next year, which is the case today, yes. that is reasonably prudent behavior given the progress the economy has made. given the likely path of rates. do i also want them, particularly businesses to think when rates go up, it will not be the old rate cycle, yes, i would like them to think that. they can plan accordingly. at some point rates will move. it is not today, unfortunately. this will not top your news. betty: again, that was john nichols, editor in -- and chief speaking with mark carney. i want to jeff -- bring in joe. what did you think? end thehink in the civil thing is they would rather wait for the fed to move to go first. the pound was probably a little

bit too strong to their liking. there is no inflation you. -- yet. it is true what he was saying, he wants to make sure the public knows there is likely going to be a rate hike, the half will be gradual. that sounds similar to what we have been hearing. basically i do not think it is much as a clear sign that he necessarily makes it out to be. basically i think it is a lot more simple. they do not like the fact that the account with strong, they wanted the fed to move. betty: it was interesting he said it was reasonably prudent people would think they would raise in 2016. it seems like the consensus it will -- is it will not be until i-17 to see movement -- 2017 to see movement. joe: one of the interesting things is, everyone figures the bank of england is going to go after the fed. as long as the fed waits, there is a good chance the boe will go after. there are good arguments that

the boe should go before the said -- said. -- fed. there is much less evidence there is a lot of labor slack in the u.k. based on participation rates and so forth. it is funny that you have not only the market pricing and the boe will go after the fed, but far after. you wonder once the fed goes come up with a try to jump on that and start going for the sooner hike. betty: tomorrow we will be talking about the jobs report. joe: the thing is, everything they are saying in terms of the main officials and what the market is expecting is december is not just a live meeting, a likely meaning. -- meeting. fordata needs to be bad december to be -- betty: do they get really needs to be really bad?

what if it is neutral? joe: i think of it is neutral there is a good chance we will get the hike in this ever -- in december. 100s -- if we low get further negative revisions to the august and september numbers, that would be the kind of thing that would make it less. if it is something in the high 100 and there is no deterioration, my guess is that the market will feel more confident that they will go in december. betty: i think people want them in clear-cut. they want something really great or bad. joe: we will get the most confusing jobs report. betty: joe, thank you. misseisenthal of what you which is coming up next. all eyes are on the jobs report. -- jobsexplore how jobs markets are in passing --

impacting the market. ♪

betty: welcome back to "bloomberg markets." let's head back to chile -- julie hyman. it seems like we're about to end flat? julie: i wanted to give a summary of the session. this morning we had jobless claims numbers. besides that, it has not been a macro driven day. people waiting for the jobs report tomorrow. ahead of that, if you take a look at the effect on futures, the w.a.r. see, there is a 54% chance it will move in the december meeting. certainly the probability will move one way or the other after the jobs market -- number comes out. the two year -- we're seeing bond investors make their vote.

as we see the yield on the two-year moving its highest .84% that is reflecting that expectation that the fed will indeed move. we have been watching the pound, it has been falling versus the dollar after the bank of england did not raise rates. mark carney told us that it would be prudent to expect rates to go up next year. it looks like the market is expecting it later in the year. we see one dollar 52 is where the euro is trading at the moment. in terms of individual members throughout the session we have been watching, valeant pharmaceuticals once again on the list after a report in the wall street journal that bill ackman was considering selling his entire state before then deciding to actually buy more shares. valeant coming out in a statement saying they support the ceo. the shares are down 14%. the best and worst of the s&p 500 -- ralph lauren doing well. the earnings report shows

reorganization is working. this as the new ceo takes the helm. the shares are up 16%. a record drop or qualcomm after the company earnings missed estimates. the company attributes that to licensing fees, particularly china when it has been having trouble negotiating. betty: thank you so much. we have been reporting, the jobs report is out tomorrow. since added significance the federal reserve has to analyze before the decision is made in december. also concerns about valeant weighing on the market. you have facebook, which just surpassed ge. -- itak it down, here is feels like a schizo market. reporter: you can find signs either way.

there were a lot of things that cleared up september. in august the market was in a bad route. if you looked at volatility measures, if you looked at signs of concern, those have died down. oliver: if you want to be bullish you can find them. earnings, there are companies beating. the company's missing are actually getting hammered hard. earnings are still down. mr. leavy second quarter now that we are seeing the contraction. on the flipside, i think people still points to the economy and say the u.s. has solid numbers. the fed says they might go in december. betty: we will know that tomorrow. oliver: it seems right now the market is starting to think the fed will go in december. betty: let's say we get a great report and it means, ok, the fed will raise in december.

will be market go up? oliver: it is so unclear. you look at what happened and -- in september, the market was dovish. it was relatede to the growth issues that the fed had. it depends on the wording. i think it depends if they were -- #not good tomorrow, the fed goes in december, the market is ready. betty: what if no the number is bad. -- though, the number is bad. to be read into the immediate knee-jerk reaction? oliver: this is what the market does. it is a market where you have big moves on maybe things that should not imply such a large market swing. right now companies are getting hammered as we have a jobs report. you could have a big move either way.

it is a market where today you have a company, valeant that hasn't stopped pacific problems. stock specific problems. i do not think that is on the checklist of the signs of a healthy stock market. betty: just before we go we have breaking news on dupont. syngenta and dupont, according to reports are said to be in talks over and agricultural combination. you can see shares of dupont are spiking after the much trading unchanged throughout. syngenta, in particular up 5%. will have more on "bloomberg markets." ♪

>> we are moments away from the closing bell.

>> u.s. stocks closing mixed joe: the question is, what did you miss? disney earnings out in minutes. the they will tell us about media business. >> and the ripple effects of quantitative easing. >> we begin with the markets. not a lot to get excited about. everyone is paying attention to the jobs report. no one wants to get ahead of it. people say it tilts more towards the summer. conviction o