be a silver bullet for the economy, as was promised by some nor the express lane to climate change promised -- climate disaster promised by others. some of thent on reasons why the state department rejected the pipeline. first, the pipeline would not make a meaningful long-term contribution to our economy. congress is serious about wanting to create jobs, this was not the way to do it. if they want to do it, what we should be doing is passing a bipartisan infrastructure plan that could create more than 30 times as many jobs per year as the pipeline would and, in the long run, would benefit our economy and our workers for decades to come. -- business has created businesses created 2.5 million new jobs over the past 68 months

, the longest streak on record. the unemployment rate fell to 5% . this congress should pass a serious infrastructure plan and keep those jobs coming. that would make a difference. the pipeline would not have made a serious impact on those and on the american people's prospects for the future. would note pipeline lower gas prices for american consumers. in fact, gas prices have already been falling steadily. the national average gas price is down about $.77 over a year ago. it is down a dollar over two years ago. 27 overwn a dollar three years ago -- one dollar 27 cents over three years ago. in 41 states, drivers can find forgas station selling gas

less than two dollars. createdgone ahead and jobs and lower gas prices without this. , shipping dirtier crude oil into our country would not increase america's energy security. what has increased energy is reducing our reliance on dirty fossil fuels from unstable parts of the world. toee years ago, i set a goal decrease our oil imports. year. that goal last five years early. time in twot decades, the united states of america now produces more oil than we buy from other countries. the truth is, the united states will continue to rely on oil and

gas as we transition, as we must transition to a clean energy economy. that transition will take some time. also growing more quickly than many anticipated. think about it, since i took office, we double the distance of cars will go on a gallon gas by 2020 five. we tripled up our we generate from the wind. multiply the power we generated from the sun 20 times over. our biggest and most successful businesses are going all in on clean energy. thanks in part to the investments we made, there are all what he parts of america of the windparts and sun is cheaper than dirtier power. the old rules said we could not transition to clean energy without squeezing businesses and

consumers. but this is america and we have come up with new ways and new technologies to break down the old rules. homegrown american energy is booming, energy prices are falling, and over the past decade, even as our economy has continued to grow, america has qatar total carbon pollution more than any other country on earth. today, the united states of america is leading on climate change with our investments in clean energy and energy efficiency. america is leading on climate change with new rules on power plants that will protect our air so that our kids can breathe. america is leading on climate change by working with other big emitters to encourage and announced new commitments to reduce harmful greenhouse gas emissions. in part, because of that american leadership, more than 100 50 nations representing nearly 90% of global emissions

have put forward plans to cut pollution. leader is now a global when it comes to taking serious action to fight climate change. frankly, improving -- proving that project would have undercut that global leadership. that is the biggest risk we face. not acting. today, we are continuing to lead by example because of we are going to prevent large parts of this earth from becoming inhospitable and uninhabitable in our lifetimes, we are going to have to keep some fossil fuels in the ground rather than burn them. as long as i'm president of the united states, america is going to hold ourselves to the same we holdndards to which the rest of the world. in three weeks, i look forward to joining my fellow world leaders in paris where we have got to come together around an ambitious framework to protect the one planet we've still got while we still can.

if we want to prevent the worst effects of climate change, the time is now. .ot later, not someday right here, right now. i'm optimistic about what we can accomplish together. i'm optimistic because our own country proves every day, one step at a time, that not only do we have the power to combat this threat, we can do it while creating new jobs, while growing our economy, while saving money, well helping consumers, and most of all, leaving our kids a cleaner, safer planet at the same time. what our own ingenuity and action can do. that is what we can accomplish. america is prepared to show the rest of the world the way forward. thank you very much. the president of the

united states speaking at the roosevelt room in the white house. the obama administration deciding to reject the application for the keystone xl pipeline. the president saying it would not serve the national interest of the united states. he went on to say that keystone had an overinflated role in our national the president discours. phil mattingly is at the white house. your reaction to the president's remarks. the president trying to take on the criticisms in advance and try to undercut what proponents of this project had said would be its greatest benefits, whether it was gas prices, jobs created, or energy security. the president does not believe that this project would have aded the united states in large way in any of those issues. thatf the key points was this would undercut the obama administration effort in the

global leadership related to climate change, even if the impact would have been negligible. the willingness to accept it would have undercut what the obama administration is trying to do with china, india, all of their global emitters as they other climate talks. mark: what does this mean for the administration going forward now that you have the official rejection of this application? it looks like it is going to be an issue for the next congress come january. administration, is to put this behind

them, to move forward, to focus on the parents -- paris climate talks. they have already passed a bill to approve the keystone pipeline that the president vetoed. i would not be surprised to see the senate and house go after it again. thisimportantly, how becomes an issue on the campaign trail determines the future of this project, if there is one. all of the democratic candidates have come out in opposition to this project. all of the republican candidates fail -- favorite. -- favor it. the timing of this, you mentioned and the president did

as well, those talks coming up in paris on global climate change. does this give the united states more leverage heading into those talks. internal politics being what they are, do other global leaders understand that just because the united states decided to reject the application that it means this is far from done. phil: i think overinflated is the word the president used to describe this issue. other countries have never looked at this as a big determinant for how the united date positions itself on climate change. it would have given negotiators from other countries something to point to two undercut the administration had they approved everybody recognizes that this issue was not going to go away. if there is a republican in the white house coming up, this

issue will most certainly not go away. countries may have been tepid in this reaction to how this proceeded. mark: phil mattingly joining us from the white house. 5:00 p.m.ming up at new york time, more coverage of the administration costs rejection of transcanada's application to build the keystone xl pipeline. "with all due respect" 5:00 p.m. new york time. i'm mark crumpton in new york. alex and scarlett, good day. what does this mean for the oil world? let's bring in rob barnett. he joins us from washington.

rob, canada has been trying to build pipelines forever. there are three other pipelines that they want to build to get oil out. where do they put their oil? right now, canada has a captive energy market. without keystone, that jeopardizes some of the flows into the u.s.. the in bridge has the northern gateway project. seeing the, you are oil get boxed in by successful environmental campaigns to keep that oil in the ground. we are going to compare wes canadian select. you can see the really big cap.

the oil cannot get out of the country. captive market. do about transcanada oil now? >> they may reapply, but it would be in their interest to wait until after the 2016 presidential election. it is very unlikely obama is going to change his mind on the keystone pipeline. congress could ultimately weigh in. they have ultimately passed approve theto pipeline, but they don't have enough votes to overturn the veto. alex: we are hearing president obama speak. in reality, we still import

record amounts of canadian crude. we actually need the crew they have. they have a different type of quality than we have. -- net, it does not matt matter how much we are importing in the u.s. -- pumping in the u.s.. >> we are a net importer of oil for the foreseeable future. canada happens to be our largest oil trading partner. it is canada, not some country in the middle east. pipelines are an important part of that relationship. i think it thing to keep an eye on is whether we see increased in via railroads. even though the pipeline is currently off the table, there is not any kind of prohibition against trading oil with canada as a blanket policy. what happens when

production falls off and oil prices start rising? if we are in a world of higher oil prices, you will see developng pressure to that resource. canada has the third-largest crude and oil reserves on the planet. they have a very big slate of oil just north of the u.s. border. if we have higher prices, that will increase the economic .ncentive as the keystone pipeline demonstrates, you have to have the infrastructure to do that. part of that is pipelines or rail or some other means. bloomberg intelligence did the math and said that the rail movements can transport 200,000 barrels per day this year and that is a quarter of what would be transported by keystone pipeline. what you estimate that rail

shipments could be in 2016-20 17 if keystone is a no go? -- >> rail is a lot more flexible than a pipeline. once you put it pipeline in place, it is what it is. you have the capacity to move however much through it. with where roads -- railroads, you have a lot more flexibility. it will have to do with how they shuffle their fleets. there is a lot of competition to ship oil using railroads in other parts of the u.s. there will be competition for getting the tank cars to bring the oil to market. alex: it seems -- scarlet: it seems like every administration touts how they want the country to be energy independent. was this a good or bad thing to

be energy independent? >> think you have seen president obama's remarks and i think we saw that climate is ultimately trumping energy security or energy independent as a key driver of his decision. alreadylready noted, we are a net importer of oil. that by placing greater emphasis on domestic production, energy efficient the, and renewables, maybe at some point in the far future we could still have that energy security and energy independence. onstill are a nation reliant oil from other countries. totally. that was kind of my point. if we are not going to get it from keystone, are we going to get it from saudi arabia.

where are we going to get that oil that we are not going to get through keystone. >> i think keystone was about which oil goes to which refinery. would be bringing oil from canada, which is a heavier kind of crude. it is in many ways quite similar to the type of oil produced in venezuela, which they also have heavy crude there. you could season similarities. perhaps if we don't have that oil coming from canada, you would look to a place like venezuela or we have a big oil trading relationship with mexico. you might see the refiners looking there also. i think that there will definitely be continued imports of oil into the u.s. for the foreseeable future.

pretty much all forecasts show that. it's got to come from somewhere. if it is not canada, the next in line would be mexico and venezuela. at least as we are currently doing it. alex: does this have any implication as to what we are going to pay at the pump. >> this is a big part of the keystone argument. supporters of the project claimed that it will reduce oil prices slightly. the way i think about it is with anyone piece of infrastructure, it is very hard to see the impact on the global oil price of a pipeline or an individual well. be ink it would probably the noise. if you add that all across every well and every pipeline, maybe you do start to talk about an impact. watch the thing to

watch about whether it will impact prices. is it a one off or is it a trend where we are going to try to stop other pipelines, try to stop development of oil resources generally here in the united states and in canada. alex: awesome stuff. thank you so much, rob burnett for joining us in washington. if you take a look at transcanada, u.s. what it means for that company. here you can kind of chart the keystone success when it comes to transcanada. it is pretty grim. you see the drop off. that kind of says it all. transcanada. scarlet: we have much more coming up on "bloomberg markets. the jobs number killed at this month. is this what the fed needs to begin normalization? alex: valiant was once the darling of hedge funds. what has become of that romance? is the chinese stock

market ready to ascend once again? ♪

scarlet: welcome back to bloomberg markets. i'm scarlet fu. alex: i'm alix steel. it is job stay. payrolls,t jump in far surpassing expectations. scarlet: will this give the feder the green light to raise interest rates? carl, you have been calling for a december rate increase for a while now. this jobs report gives us the go-ahead? >> i think this clinches it. , conditions were a little unsettled because of international factors and weekend just had -- and we had

just had a very disappointing reading while the american growth engine is back on track. i would say that the bar is actually fairly high not to make the move given some of the statements of that officials over the last couple of weeks. alix: one of the standouts was the average hourly earnings coming in at 2.5%. does that mean that the phillips curve is alive and well? once you get tighter slack, wages start to rise? >> it is hard to make a firm conclusion on the basis of one number, but it heads in that direction, certainly. fed officials and private economy have been debating about the phillips curve and whether it was still operational. we have gone from 10% unemployment down to 5% without moving the wage growth needle very much. this was the best we have had since 2009. it also corroborates anecdotal

evidence we have been getting to suggest that we have broken out of that strain and that should be very, very good, not just for the outlook on nation, but the added income that should reinforce consumer spending. scarlet: what is the risk that tightenwill need to faster than currently anticipated? >> it would be a good problem to have. they have been very comfortable in communicating. i think that is still the central scenario. if we get more numbers like we had this morning, it will be a challenge to stay gradual. scarlet: thank you so much. we do have some breaking news for you. julie hyman is that our news desk. julie: it is with the stock movements. apparently jim chain us is talking about it at a conference today. we are watching alibaba and

j.d..com. according to the reporting, alibaba is being shorted by chanos who is talking about accounting issues he sees that the company. he has been negative on china for quite some time. if you look at the alibaba shares, we saw a pretty quick drop as this headline came out. down 3%. as a hedge, he says he is long jd.com. those shares surge at the same time. along watching yahoo! with alibaba. that has been falling right along with it. scarlet: thank you so much. alibaba has been on a bit of a tear the last couple of days. alix: lots more coming up on "bloomberg markets." we will be back on the other side of this break. ♪

alix: welcome back to bloomberg markets, i am alix steel. scarlet: we'll check in with

mark. president obama is rejecting transcanada's keystone xl pipeline, because he is not believe it serves the national interest. the president said keystone had taken on an overinflated role in the once political discourse. a this pipeline would not be silver bullet for the economy, as was promised by some, nor the express lane to climate disaster as claimed by others. seven years of debate over project that ballooned into a contentious issue. lowered shale boom has gasoline prices, lowering the arguments for the project. tourists stranded in egypt after the jet crash are heading home. britain grounded flights to the area where the airplane crashed

last weekend. fears that obama brought down the airplane caused the suspensions, but it has not been proven. chris christie and mike huckabee will not be on the main stage next tuesday when the white house will does meet in milwaukee. the top eight candidates will be in prime time. chris christie and huckabee will join bobby jindal and rick an earlier forum. three candidates to not qualify for either event. did x online about the effects of climate change? by new a investigation york. investigators want to know if exxon promptly revealed what it's researchers knew about environmental effects of climate change. that is our first word news.

you can get more on these and other breaking stories 24 hours a day at bloomberg first -- bloomberg.com. managers havend flown into stock, making it the second most hedge fund and company after our again. valiant's fall from grace has erased $40 billion from their pocket in 12 weeks. it is now close to their early peak in august. who will buy it now? here to talk about the romance between valiant and its hedge fund paramore's, as alix mentioned, this is a crowded name. 7% of fundamental head shares owned valiant. 5% in the top 10 position. .he average weight is 10% what is it about valiant that is attractive to hedge funds?

>> the catchphrase was that it was created for hedge funds by hedge funds. however, when you start from the top with the executives, you mckenzie, looking at the overall philosophy of what they do, it ties into what hedge fund managers do. they find an edge in the market to give them added value on top of what stocks are doing in general to charge a fee for. they look at the market, find information, they try to get an edge so that they can evaluate an investment and make money. then they can move onto the next thing. golly it is doing the same thing with drugs. they say which revenues are not being maximized. with a folded into what we do, make money, and moveon. you had a lot of hedge fund guys say, i understand.

this makes sense. scarlet: does that mean the ownership is very long? >> it largely is. we know that there are some folks that are very short on stock, but if you look at the type of managers -- you have 22 shareholders that have at least a 1% stake in the company, that is a lot. i higher percentage of 1% companies in the s&p. we have a big portion, six percent, closer to 21 million shares. the last 13 filings may be a little behind. theeyond the hedge fund, rumors that valiant is growth oriented investors, there is a lot of value. greenberg told my colleague this he could add to his acquisitions, they would. growtht see a lot of the

hedge fund, you do not invest those high bids saying we'll double down and try again. i do not know how well it will go over with their clients is value investors try to put the value in a value stock. alix: where investors looking at the right numbers when they decided to invest in the first time? >> that is a good question. it is a complicated business model that gets into the dangerous nature of crowded stocks. about this story is that it pertains to a broader theme. what happens when you have a market where it is hard to find growth and a company that will give you a solid return. it is not only valiant. that is specific to valiant, the divisions, but other health-care stocks are falling. the story with valiant is the story from august when there was volatility and health care

stocks. a lot of investors and hedge fund guys with the same objective hit the button. that created a rapid increase in the quiddity, maybe not the liquidity, but the volume. erik schatzker was talking about the hedge funds that owned valiant and made a point on when and how they sell that have to do with redemption. you have to sell it, or sell something else in your portfolio . what is your best estimate. >> it is hard to say. some people have already said that they are in that position. not to go off on a tangent, but it is an knowledge is with goldman selling peers men shares. when valiant started falling in late september, when we were talking to people, they said how good it get worse? if the margin falls started happening.

the investors that were high on stock for a long time have to start creating capital, they will be selling some of their portfolio. again, that is when you have a contagion that can spread from one specific stock to a larger industry. scarlet: bill ackman is very local and his defense in a conference call. else has been vocal in their defense? who is following the lachman's lead? >> a lot of people look at bill ackman, they see pershing square with a good solid record. greenberg told out and told us, he was high as well. a 2001 article with my colleague , he was adamant about the fact that he already has a large stake. he said, how can you add more? looking at projected earnings and cash flow. if you look at valiant trading now, six times projected earnings next year, five times

of theed cash flow, half s&p. if you believe in stock and story, you have to be on board. the thinks it will go to 450. alix: bill ackman pointed out that he was a long-term believer. but he did say there's a lot of volatility surrounding the stock . whether or not you believe and a fundamental story, the actual stock is broken. how do you buy it? >> you can say which you want about the citroen report, about other hedge fund managers saying they are short. the bottom line is the stock is below $100 at this point. it has taken a meteoric fall. validity.to be some it is definitely broken. it is a broken growth stock. at some point, it may converge into a value stock, but that is

a philosophical discussion. if something is able, even if it is cheap on an earnings basis, it will keep going down. soldyesterday when goldman the shares, it moved fast. i think that is an effect of what can happen when there are big stakes that are sold. prices will go down fast. the shares are toxic. scarlet: it goes back to currency.ock as they borrow to make acquisitions, that is the business model. alix: the debt has seen volatility. debt should be more stable. it is not as dramatic. "go" they said the same thing. if you have a solid of view on the company, maybe you can go into the debt run. .he stock is definitely toxic

if you looked at the amount it was traded. before september, .5% was traded on a daily basis. it is now up to 5% on average. in october, 14%. if you have to get out of a big stake come you may have trouble finding buyers. you'll have to bring the price down. that is why you were down 14% when a large stake was sold from goldman. scarlet: inside the bloomberg terminal you can see the share tumble. if you look at volume, that is the explosion of trading that you were referring to. massive. some can take, maybe it has become more liquid. more is being traded. there is a big outspread that is not showing up to their. ackman wantedll to get out of the stock. he has 21 million shares.

abouterage would take him 13 days if he operated selling 10% of what is traded on valeant today, which i am told that can be a standard ratio of selling. if he wants to take 10% of the traded volume a day, it would take him 13 days. to do that faster, if you want out, bill ackman does not sound like he will, but i'm sure other people will want to, but that moves the share price down fast and hard. alix: this is fascinating. i love numbers. thank you. scarlet: that article is available on bloomberg.com. still to come on "bloomberg markets" the euro and dollar. alix: they are surging. scarlet: that follows the blockbuster u.s. jobs report. we will check on global equities.

alix: a fresh look at current regulations. are they a help or hindrance. scarlet: strong growth and jobs encourage -- will it encourage the right to raise rates, and what does it do to the trajectory of the rate increase? ♪

alix: welcome back to bloomberg markets. scarlet: it is time for the bloomberg business flash. news has learned that holiday in owner intercontinental hotels group is exploring a potential sale or merger according to people with knowledge of the matter. intercontinental has a value of $7.9 million. they are talking about whether to sell or confine with a

competitor. alix: a legal expert things a new inquiry targeting exxon mobil could lead to investigations of other oil companies. they want to know if exxon mobil new that global warming would hurt the environment and did not tell investors or the public. they are getting documents. scarlet: building a bomber $80 billion. the selection process is fundamentally flawed. boeing and lockheed are trying to keep alive their plans to build the first military bomber cents the cold war. you get more business news at bloomberg.com. alix: we want to start in u.s. markets. abigail doolittle has the latest from the nasdaq. looking at the top performers. end of: ending the near

the trading week, we thought it would be a good time to look at the top performers, starting with amazon. the top performer is up 5.2 4%, hitting a new record high. there could be a few factors, including the tailwind from a strong third quarter driven by the amazon web services unit. according to a bloomberg probability of a profit based from the high-margin cloudy union, and continued growth with prime subscribers for the holiday season. they are up 113% year to date. 5.23%.k, they are up revenue record high yesterday a stellar hit third-quarter, announcing they have more than one billion users hitting the site daily. they said monthly average users .rew by 14% to 1.5 5 billion

there is a new high price target of 155 at piper jaffray's. another 40%,by rounding out the top five at the nasdaq -- we are looking at google, microsoft, and apple. >> thank you so much. now, we want to look at how trading closed in china. it was a busy week. we had a lot of data over the weekend after the markets closed. we got the headline that ipos will be allowed. the ban will be lifted. there wasefore that, a weekly advance in hong kong on speculation the gains were relative to earnings. takata facing questions about a solvency as a parade of

big-name customers defect. >> the latest results show that continues to reel from the near collapse of its airbag business, subject to the biggest automotive safety recall. 75%.s cut its forecast by despite an exit us, it has maintained its sales view. toyota joined honda in ditching the takata: airbags. they found a rupture with excessive force. the faulty airbags are linked to more than 100 injuries and 8 deaths. takata fell 6% in tokyo share trade on friday. scarlet: reporting in hong kong. market regulators are announcing they will lift the five month old man on ipos. that will have an effect on the market. seen share

prices -- if inning of the band does go ahead. alix: it is an interesting decision. they have back in july. the question is what it will do to the market. ipo's have been highflying before. they were sucking a lot of money into the markets. it also seems to say that the government has confidence in the poc, and that there helping monetary policy. scarlet: i wonder how much is so companies can tap the equity market for funds rather than issue more debt. there's a lot about deat -- a lot about debt levels for companies. anytime you try to talk about china come you try to read the tea leaves about what the intentions are. alix: the idea that maybe they do that they will not want to load debt and have a foreign

exchange risk when it comes to the dollar versus the yan. -- the yuan. have a lot that will come online very quickly. if it actually follows through. inrlet: that is what we have the system now. company may wait to see if the federal reserve raises interest rates and how that is absorbed by the market before going further. banks up, international like deutsche bank are shrinking. the future of the financials may not be as grim as it seems. where banking is expanding, next. ♪

alix: welcome back, i am alix steel. scarlet: i'm scarlet fu. banks are shrinking and prompting central bankers to look at the current levels of regulation.

alix: brendan greeley is in chicago attending the annual federal reserve banking conference. only he would find that awesome and interesting. what is the big idea out of the conference now? brendan: and only you two would have me on to talk about a big idea. i wanted to learn about the deutsche bank syndrome. international banks shrinking their footprint. it is a european phenomenon. european banks are falling back, but that is not all over the world. since 2006, european banks operating abroad has declined. there has been steady growth in regional banks from developing growings that has been the entire time and unabated during the crisis. you have a russian bank that has bought all of the eastern european assets of austria's bank.

this is happening all over the world. latin america, hsbc sold some of its assets. by locale bought banks. this is not the end of internationalization, it is the beginning of reasonable as asian ionalization. scarlet: the deutsche bank return on equity has been shrinking. in the last quarter it turned negative. i contrast you have pnt still higher. is a european banking phenomenon. how do we know that u.s. banks view the international phenomenon? brendan: when you look at the aggregate data, there has not been a huge change in u.s. banks abroad. the trend is european banks pulling back. we hear discussions with

increasingly local authorities are saying i don't care how much capital you have in your home district, you have to be capitalized here to take a loss. don't want say, we to leave capital in each of the countries, we have to move it efficiently. is not necessarily happening. in the conference, they said the only place we have really seen that with subsidiaries stuck in the country where they operate is in the balkans where the greek banks have had to pull back. globally, again, we are seeing this not working out for deutsche bank. it is working out for other regional banks. this is from the data from the imf, culture matters. if you operate close to home, you can do it. alix: it reminds with the u.s. went through after the financial crisis. it was all about the regional

banks without exposure to international markets, not as heavily regulated, not under dodd-frank. they could benefit from pockets of strain. brendan: we'll also see more easing of dodd-frank for smaller banks within the u.s. under $3 million. we will really see that, as well. you, bloomberg's senior economic correspondent in chicago. he will be in new york next week. alix: coming up in the next hour of "bloomberg markets" we are looking at the markets and the reaction to the fed. with the jobs number means for the trajectory of the red -- fed hike. ♪

scarlet: welcome to bloomberg markets.

from bloomberg world had risen york, good afternoon, i am scarlet fu appeared -- headquarters in new york, good afternoon, i'm scarlet fu. his wall street breaking out the champagne? alix: president obama and his seven years of political wrangling saying that the keystone project. where does the energy debate go from here? saying no to the keystone project. and tryed to be focused to be in good position when something bad happens. asrlet: his ambitious goals

a philanthropist this hour. first come we had over to the markets where julie hyman has the latest on this jobs friday. julie: jobs friday. i don't know if i should emphasize the jobs or the friday because those are equally important. we had that jobs report coming in far above what even the highest economist estimates we'd survey. not only the reactions from the jobs numbers, the extration for what this is going to mean for the federal reserve, the likelihood of a rate increase in december has been going up. the major averages fluctuating in it. we are seeing higher trading point delivered this of the trading blame about 70% above the 10 day average. more than two stocks falling in the s&p prep or one that is rising.

-- for everyone that is rising. financials have been strong throughout the day on the jobs report and the fed expectations. utilities have been weakening, tend to fall when we see rates go higher. we had some disappointing earnings. rates have been key today and have been key over the past week or so as we've seen treasury yields continue to move higher. the treasury yield at its highest in five years. the 10 year yield at its highes. 2.33% for the 10 year. the dollar strengthening against its major trading partners. rising against the japanese yen and the euro and the pound fall versus the dollar. all of this has been bad news for gold. gold prices falling sharply. alix: there are some individual standouts. heinz with its

first earnings report as a combined company. the company's revenue down 9% and was measured to include copper bowl results from a year earlier -- comparable results from a year earlier. kraft heinz has embarked on this cost-cutting program. semiconductor makers out with her next today doing very welcome a the gains in the s&p. nvidia, sky works come all of these out with earnings that beat analyst estimates. alix: let's check in on the bloomberg first word news this afternoon. you both so much. the obama administration has decided to reject transcanada's keystone xl pipeline. it ends at seven years of debate

over a project that ballooned into a contentious issue. >> secretary kerry informed me that after extensive public outreach and consultation with other cabinet agencies, the state department has decided that the keystone xl pipeline would not serve the national interest of the night states. -- of the united states. mark: backers expected to challenge the decision in court. get aoject could also fresh look in 2017 if a republican wins the white house. fights toseveral bring back -- several flights turned around in midair. airlines and scaling back the number of flights they plan to operate. the u.k. grounded all flights to and from the sinai peninsula. russia announced today it would suspend all flights to egypt until securities is improved at

egyptian airports. investigators into arkansas, the scene today of a bus crash that killed six people. there's no indication drugs or alcohol were involved. the charter bus ran off interstate and hit a bridge and bookman -- campaign officials admitted ason central point in his personal story was made up. his application and acceptance into west point military academy. this came in response to an inquiry from political. the academy has no record of person applying or being admitted to the school. , he wrote he turned down a full scholarship to west point. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. alix: thank you so much.

president obama rejected transcanada's bid to build the keystone xl pipeline, one of the most contentious environmental issues of his presidency. scarlet: iraq's guest says the keystone excellent pipeline is the wrong kind of energy t debate -- our next guest. alix: you help companies with their environmental policy. what should transcanada do differently next time? >> i'm not sure there will be a next time. i'm not sure what they can do. we are in the midst of a very deep shift in energy, moving away from fossil fuels. this decision was really about energy choices and seeing if one leader in one country can make a different decision. and not invest in fossil fuel infrastructure. i don't think it will come back. they can try. scarlet: why reject it now and why is the timing so significant

in light of what is to come in the next few weeks? >> it's really interesting, the timing that it was seven years to get here. they could have kept going, cap this on hold until his last day on office. i think it's because of the paris meeting. world leaders are coming together to talk about an agreement on climate and this strengthens obama's hand in a very real way. he's been building the story the u.s. is a leader again on climate and energy. he's brought companies along, had them pledge with him. this is the kind of policy stance he can take very publicly and strengthen his hand going into the meeting. alix: part of this is a shift in policy, environmental friendly policies. we've seen as he be sales in the u.s. off the charts -- suv sales in the u.s. off the charts. the argument is not playing out

right now. >> there is a real difference someen fossil fuels and use of them and others. renewable energy does not compete with oil. the price of oil dropping is almost a distraction on something. pays back inency tremendous ways, still a really good place to invest for companies. that is the advice i give. we are seeing more and more investment in renewables and efficiency across companies and across their supply chains. when it comes to actually using the oil come if we will buy more suvs that teslas, we need the gasoline. -- it is not moving not instantaneous. we will be using oil for a long time. that is the reality. there is a rise in sales of electric cars.

that increase has low down. the rate of increase has lived on because oil prices have been down for almost a year now. -- that rate increase has slowed down. we look at today's gas prices, something we always do as consumers, businesses take a longer view of energy investment. businesses take a longer view -- what does this decision by president obama and this message he is sending out to everyone mean for big oil companies like exxon mobil? >> is a really interesting and tough time for the oil industry. exxon is under tremendous pressure now. they faced lawsuits in legal action about what they knew about climate change going back 40 years. how they actively work against climate science. they are facing enormous pressure. we are moving away from fossil fuels. that will leave the oil and gas companies with stranded assets. up to half or two thirds of the

assets on their balance sheets are not going to be used. we will not take them up or burned them or use them in that way. we might use them for petrochemicals or airlines but not in the ways we've been using it today. alix: what kind of infrastructure do we really need to be building in the u.s.? >> we need a better grid. that's one of the things that has been very clear. we need basic and researcher. our roads and bridges are not doing so great. grid and wetter need a smarter great and there is a lot of technology and a lot of investment heading that way now. it does require some national policy and regional policy to push that to make that happen. we need a grid that will take all the data coming out, all the devices getting connected and all the energy sources getting mynected -- i generate half energy in my home.

scarlet: still a lot of work to be done. thank you so much. really insightful, really interesting conversation. coming up in the next 20 minutes , blockbuster job growth in october. who is doing all the hiring? the ceos of career builders will be here to tell us. the leaders of the to meet tomorrow -- why it's important and what they are likely to a compass. an etf investing in bitcoin has been having a pretty good few weeks. ♪

alix: you are watching bloomberg markets.

it is time now for the bloomberg business flash. the biggest business stories in the news right now. scarlet: square setting its ipo at 27 million shares. square is aiming for evaluation of$4.2 billion, well short the $6 billion it's all in its latest funding round. a will use some of the proceeds to acquire couple memory businesses. alix: alibaba buying a video service in all caps deal -- all cash deal. they're looking to stream more content to chinese internet users. ownership will help alibaba delivery u.s. films and drama series to more than a third of china's population. scarlet: boeing and lockheed martin challenging the pentagon's selection of northrop grumman -- the pair cost of selection process that calls the selection process blog.

-- the pair calls the selection process flawed. you can get more business news at bloomberg.com. alix: julie hyman has a check on the company movers on this really calm day. julie: relatively so. i'm noticing some headlines coming out on verizon. reuters is reporting that the company is exploring asset sales of up to $10 million. a bump up in the shares. shares is still down on the session but a bump up, leg up on these headlines. it could be including the asset sales, the business formerly known as mci. take a look at weight watchers, stock surging after the company's latest earnings report . profit and sales topping analyst estimates.

shares up 36% are incredible gain here. the company announced a partnership with oprah winfrey last month. the past order to not include the effects of that. it's already making progress, trying to shift to more of a lifestyle brand than just a weight-loss brand. , the stock up more than doubled since its ipo earlier this year. shares falling today even after pop and sales beat analyst estimates. -- profit and sales beat analyst estimates. we saw a gain in the after hours after the numbers came out and then gradually a movement lower. john ivanhoe says the shares remain fully priced here. even with those strong numbers, looks like there's some folks selling today. scarlet: julie hyman, thank you

so much. the u.s. labor market bounced back in october. for more perspective on how this can impact the markets, let's bring in the chief market strategist at wunderlich securities. what the a look at markets are pricing in for a rate hike, we are looking at 70% chance of a rate hike in december. or the markets accurately reflecting that? >> i think so. the thing about what the market has done since the lows of september -- that's on the heels of what turned out to be better than expected earnings and better economic data and real stabilization of the data stream coming out of china. the market is taking the cues from the economy. we've talked about that a lot. go back to october, the percentage of people who thought

the big move in december was less than 30% -- you had a significant shift in the market is digesting that pretty well. earnings,n terms of 89 percent of the way through the s&p 500 reporting results. next week will be critical because we have the big retailers announcing results. retail sales numbers fell. what is the set up as we look for the consumer to really show strength here? >> a couple things will happen could we have department stores, macy's and jcpenney coming out next week and the retail sales for the month of october. you may have a pretty good report that guidance may be lackluster. , we thinkwarm weather about that in setting in outerwear is not selling right now. a company like macy's that may do better, they make it was guidance poor because we are not

selling coats. take a look at the markets, the chatter right now has been will we see a steeper rate hike cycle now that the jobs number was so awesome? should the markets be prepared for a tighter fed? >> markets are prepared to get the first lift out of the way. we headed into this year with two major headwinds. greece and then china. both of those have led to two some extent. alleviatedthose have to some extent. we will be lower for longer. the markets can handle that. if we get a pickup in inflation and wage prices, they may have to pick the peso. right now, we are in pretty good shape. -- they may have to pick the pace up.

alix: still ahead, the job report demolishes expectations. what are employers sing about the state of the labor market? we will talk to the ceo of careerbuilder. ♪

scarlet: this is bloomberg markets. alix: as we been telling you october job numbers were really stellar come employment back with a vengeance. scarlet: payrolls had the biggest gain all your. what does this mean for employers? alix: i'm next guest is on the front lines of who is hiring an matt ferguson, the ceo of careerbuilder. what are you seeing firsthand in the job market? report was very

positive. overlyer two were negative. the actual market was somewhere in between. i was happy to see wages go up 2.5%. of 2008.st since may there's really strong signals in this report that are good for everybody. scarlet: they are averaged out. i want to hear about wages. report, health care wages went down the most. the clinical positions were up. when you look at family and individual services, those were down 20%. brought the whole category down 4%. cutbacks andlot of government over the last six or seven years. the biggest gainer was information. a rise of 13%. those companies doing well. alix: this is one of the first

orders headquarters where we can see the impact of minimum wage across the board. what has been the effect of minimum wage on hiring? followr retailers will suit because there is a more competitive labor market there. now that those retailers have made the announcement -- you see it in other industries like insurance. they will compete for some of the same workers. the first quarter of next year, more employers will announce similar things. the last two months, the jobs report for august and some timber had a lot of people worrying that the u.s. economy was slowing down by quite a bit. this jobs report refutes that. what are you hearing from employers? >> i don't think you see much difference between august and today for employers. they were positive on the labor market.

feeling it was tight in certain segments. gradualseen a improvement over the last several months. today may be a bit more positive. if you averaged them out, that is a good statement of where we are. alix: where do you see the biggest labor mismatch right now? >> obviously, you see it in technology and engineering. and some other areas. welding has been a place where people have not been able to find welders. some people can find auto technicians. auto sales have been strong over the last year. you see it in a lot of areas that are skilled, not as high jeter as a web developer -- web developer or engineer. scarlet: what is your prediction

for 2016? >> or retailers will announce higher minimum wages. we've seen the participation rate going up. it has been down. these good job reports over the next several months more people entering the labor market. scarlet: a different perspective on jobs than what we usually get. employers did not see much of a difference between august and this past month even though the jobs number has created such swings in the marketplace. alix: still ahead, a china-taiwan summit. the top leaders will meet on saturday. we will talk about the significance. ♪

alix: welcome back to bloomberg markets. scarlet: let's start with the headlines out of bloomberg first reviews.

matt: nice to see you ladies this afternoon. president obama has rejected the keystone xl pipeline. debate has lasted seven years also strained relations between the united states and canada. >> this pipeline would neither be a symbol of rolet for the economy that silver bullet for the economy nor expressly to crime an climate disaster. >> the presidential candidates responded quickly. marco rubio called it a huge mistake and jeb bush said it was a self-inflicted attack on the u.s. economy. slow going for british tourists trying to rehome -- return home from egypt today. several of today's flights have turned around in midair. did exxon mobil lie to the public and to its investors

about the effects of climate change? that question is the focus of a wide-ranging investigation of the company by the new york state attorney general. it will giant must respond to the subpoena seeking documents by going back nearly years -- 40 years. feifa president sepp blatter hospitalized for -- the 79-year-old was suspended for 90 committee.a's ethics that is a look at our first word news right now. you can get more on these and other breaking stories 24 hours a day on the new bloomberg.com. scarlet: thank you so much. a historic meeting is set for this weekend. chinese president xi jinping and

taiwan's president ma ying-jeou tomorrow.eting marke alix: joining us now from washington to talk about that significance of the meeting is eurasia group's director of asia practice. scarlet: this meeting is eight years in the making. they had a lot of negotiations to get through before this was done. having this meeting now? >> the timing is all about the upcoming election in taiwan. we will have general elections in taiwan the 16th of january. the opposition party is widely expected to win that election in a landslide. deposition candidate will probably win. it could be eight years before a discussion like this could

happen again. the window is closing. scarlet: what is the message xi jinping wants to send to the next president of taiwan? >> taiwan rejects the framework of the 1992 consensus which has guided all of the concessions we have seen between china and taiwan over the course of the past eight years. concerned --rdly highly concerned that the future of the relationship itself is in question around election. they are trying to shape that. alix: china unveiled its 13 five-year plan. how does taiwan fit into that plan? >> beijing in the five-year plan guiding document that came out this week actually said it expects future negotiations on economic issues will be under the 92 agreement framework.

they are already putting out some benchmarks about how they as relationship should operate moving forward. bloomberg news has a great article on how careful all the wording needs to be for this meeting. tea leafl be a lot of reading in terms of who moves first and how they are shaking hands. there's not going to be any joint press briefing. how much back channeling libby will there behis post meeting -- how much back channeling will there be post meeting? >> they will call each other mister. ask xi-jeou said he will jinping to give taiwan more international space. prioritylearly a top for the president of taiwan and a big problem for the relationship right now. in the conversation, the right be something interesting that comes out of it in terms of how beijing thinks about taiwan's

role. alix: they've been reaching out to japan, reaching out to create. it's not like they love their relationship with them. -- reaching out to create. korea.ching out to back,y are taking a step bit of a softer approach and we see that plane ouwith a number of countries right now. scarlet: at the root of the aoblem is that both agree on one china principle but don't agree on what that means. for bothhe definition sides and tell us how that definition will evolve over the next 5-10 years. >> the most interesting thing rejects thathe dpp there is a consensus about the one china principle. is taiwan going to do and what is taiwan going to say about the relationship of import? -- going forward?

that is unclear at this point. trained diver's vocation is one of her major policy parties. -- trade diversification is one of her major policy priorities. scarlet: when we get word of this meeting -- >> the u.s. has a huge horse in this race because the u.s. is committed to ensuring taiwan's ability to defend itself. the u.s. interest by far is to have a very stable, very positive relationship. the pressure from the u.s. high.ment will be very alix: who is going to put their hand out first when the the presidents meet? >> i think xi jinping.

paperslanted in taiwan's in a number of ways. -- taiwan's favor in a number of ways. that that is something we have to watch out for. p, bettingoming u on bi bitcoin. it's been having a couple good weeks. alix: a king of a different sort. lundqvist talks about how we will get back -- give back. scarlet: it is job stay in america. will the report translate into higher interest rates? ♪

scarlet: welcome back to bloomberg markets. it is time for the bloomberg business/. alix: holtz wagons cheap designer is headed into retirement. chief designer is headed into retirement. he will remain as an advisor after retiring at the end of november. the news release did not mention the company scandal. scarlet: united auto workers union members ready to approve a new four-year contract with general motors. workers voted overwhelmingly for the deal today. if approved, the contract would cover 52,000 jim factory workers. alix: the ceo of united continental preparing to return to work. weeks after suffering a heart attack.

oscar says he will be back in the first quarter. his first communication since taking medical leave in october. you can always get more business news at bloomberg.com. scarlet: let's head back to the markets desk where julie hyman has the latest looking at the retailers today before the big sales number next week. julie: they've got some reasons to decline today. -- the founder tothe company did not want merge with joseph a bank but that's what it is. joseph a bank has been scaling back on discounts. sales at thetore chain down almost 15% last quarter and could decline as much as 25% in the fourth quarter. huge declines as men's wearhouse now has been trying to skill back on that discount strategy. shares collapsing 44%.

, those sharesroup down sharply as well, 58% decline. the company reported results after the close yesterday. they make branded merchandise. they have been making peanuts merchandise that has not been going over as well. an analyst come out today and say even with that decline, the stock is likely to be in the penalty box until there is greater clarity resulting with what's going on with peanuts. those shares down very sharply. despite the stronger-than-expected jobs report, seeing the retail spider etf down by more than 1%. one of the worst performers we are watching today. ,ne thing i wanted to highlight

we saw an increase in average hourly earnings year-over-year of 2.5%. the increase in retail earnings has been even more rapid than that. that is something various retailers have been citing as something that is representing a rise in labor costs. this is the year-over-year increase. hourly wages, this is retail, this is the overall private payroll numbers. it has been outpacing it close to 3.5%. another way to look at this is on an absolute basis. this is a shorter-term chart. this goes back to the beginning -- goes back about a year. retail wages and white, overall wages and orange. increases we've been seeing. up.age hourly wages going wages,are paying those it can be a bit painful. alix: thank you so much.

a strong month for car sales as automakers important especially strong sales or october. -- for october. just starting an eclectic group of etf's. scarlet: joining us with more is eric. tell us about the most profitable way you can play this. >> the most popular way to directly play auto stocks -- you will not get a lot of auto stocks in the s&p 500. the first trust global auto index. the ticker carz. it tracks 30 automakers. japan and ay, smattering of other countries. it is up 8% the past month. $5 million inflows. nobody is really invested in this over the years because automakers have underperformed over the past three or four years. cheap ands looking

has a nice boost. minas volkswagen, all the stocks are up. where they have normally gone to get a little auto love is in the german etf or japan etf. alix: if you want to avoid volkswagen, you want to bet on japan. other two car companies that are big and the japan etf are doing really well. in both cases, a lot of investors will go for the currency hedged version. if you are an automaker, you want to export your cars. in both cases, qe has been part of the play there. the idea of the currency going down helps the exports and that has jump started these two etf's. scarlet: do any of these have tesla? has a 2%he carz weight against tesla.

where you have to go is interesting. the etf's with the highest in tesla are the alternative energy etf's. the global alternative energy has a 9% waiting to tesla. over the past three years, this etf is up 80%. tesla accounts for 35% of that performance. i've never seen one stock have such a big effect on etf. if tesla is in the etf, that's good. alix: what are the flows like for that? one of just go by tesla? >> you do get other alternative energy stocks. it depends. gex is not a tesla play but ends up being one. ,et's say tesla goes down 700% down 90%, this would dilute that problem. when something is going great, you want a single stock route but the diverse projects you if

the opposite happens. bitcoin has been on a bit of a tear the past couple of days. is there an etf that allows us to cash in on that? >> no. there has been a lot of misinformation out there. registrationetf in , the bitcoin trust. it has the ticker coin. the whole thing is ready to go. they are doing in the real way, tc approval.t f there are other products out there -- bitcoin gets investment trust. this is the one that is over-the-counter. a fund that trades over-the-counter, new regulatory approval. -- no regulatory approval. alix: do you think that will be

bitcoinsth physical versus underlying future contracts like gold? >> correct. that is part of the thing that the ftc is taking her time with. bitcoin is electronic. that is one of the things that might be holding -- they modeled it after gld. they wanted to be ready for prime time when it does get approved. alix: awesome stuff. think you so much. alix: coming up, hockey fans know henrik lundqvist as the goaltender always in the right place at the right time. he takes the same careful approach to investing. focusedi tried to be and tried to be in good position when something bad happens. he goes out of his way when it comes to philanthropy. we will talk about his charitable foundation, next. ♪

alix: welcome back to bloomberg markets. you would have to say that the new york rangers goalie henrik lundqvist has it all. he's made a $10 million this year, and olympic gold medalist. scarlet: they don't call him the king for nothing. he's always been focused on giving back. he took part in the global charity day which generated over -- what motivates a star athlete from sweden to make a plethora big impact in the u.s. -- philanthropic impact in the u.s.? >> back home, it is we take for granted of it. --h the structure we have the schools in the health care and all that.

you see a lot of people that don't have that ability and they are not as fortunate. i wanted to reach people back home and other places around the world and start to think about life after my career. scarlet: you mentioned how different philanthropy is in sweden. how does it play out in the dominican republic? how do you tell your efforts there -- tailor your efforts there? >> your money goes a long way when you go down there. we plan to bring a lot of poise playbooks and notebooks and all that. toys and playbooks and notebooks and all that. there are organizations in new york we want to support. scarlet: because of social media come athletes like you are able to connect with your fans in a way that others cannot in the past. do you see evidence that your fans feel closer to your

philanthropic work? henrik: i hope so. i can tell a huge difference between now and when i started. when i came to new york 10 years ago. it's the way people can follow what's going on -- you can stay connected with your fans and raise awareness and a couple seconds of texting. you try to use that as well. more important, more effective for your foundation to get a front-page mention in the new york times or to get 50,000 instagram likes? henrik: good question for i don't think i'm the right man to answer that. we do both. we tried to get out there and and youut your mission use social media but also sit down and do good interviews, hopefully. scarlet: that was henrik lundqvist of the new york rangers. -- which isow is

more effective now, being mentioned in the new york times or grassroots efforts on social media? >> a really tough question. i don't think right now there is a correct answer. five years, 10 years down the line, we will know that answer. a lot ofcertainly evidence that the social media impact of celebrities and impact athletes was not there 10 years ago. alix: is this a growing trend for athletes? harrie: not every athlete should have their own foundation. athletes do amazing things for good causes. henrik lundqvist is unique because he is the real deal. he is the guy who should have his own foundation. it's a huge trend for athletes to align their brand with philanthropic causes.

'ws executiveist director is one of the best in the business. he is the real deal. scarlet: the opportunity to you haveith companies endorsement plans with, how has that changed the game? theerek jeter is one of first people to do this and start a trend where he incorporated his endorsement deals into his foundation. it's all about sustainability. is not efficient for these athletes to keep it in their own money into their philanthropic endeavors. making $30ot be million every year for the rest of their lives. is where endorsers or sponsors can get involved and create sustainability. scarlet: is this a distinct new york experience? do you see this for other athletes in other cities? >> is definitely different. new york is amazing and people

of their athletes are. -- love their athletes here. all across the world, there's athletes doing amazing things. these guys have global impact. they can do amazing things all over the world. scarlet: they have access to the best financial lines on wall street. alix: true. fascinating. great stuff. thank you so much. great interview, scarlet. scarlet: that was really fun. once more coming up. -- much more coming up. ♪

♪ >> welcome to "bloomberg markets ." ♪

david: here is what we're watching this hour. two huge to vote is for the energy industry and the earth climate. president obama rejected the controversy over keystone pipeline proposal and i thought under investigation for his climate change disclosures. ? how is in for oil underemployment is coming up fast on jobs day. mostit janet yellen's importantly labor market measures is now looking a lot better. an intriguing development and ben carson's campaign. allegations he lied about his acceptance to the u.s. military academy at west point. let's head to julie hyman. julie: you'd expect on a daily got a big jobs report would have a little bit more market action in terms of the decisive direction.