♪ david: from bloomberg headquarters in new york, good afternoon. ra.m david gu what is atonomy, stake, and who has the most to lose? in an exclusive interview, brian moynihan joins us live from the season is inption full swing in new york. there are hundreds of millions of dollars that have already changed hands. we will look at who is blind what and for how much, but 'srst, let's go to bloomberg julie hyman. julie: we have a mixed picture.

earlier, stocks were lower, and now we are drifting. after a above, and then six-week rally, we have seen a rise-day the klein, or what was a five-date to klein -- we have seen a five-day decline. stop -- start with beer, because we are waiting for that in it is looking at the rest of the miller stake from bug. that was something that was talked about if ab inbev of does come in and make that acquisition. they would pay $10 billion for the 58% stake that it does not already own in miller coors. again, this is according to dow jones. we could get information on an ab inbev deal as soon as tomorrow.

proposal to be made, but up until now, it has always been speculation. and it upcoming investor meeting. says they will not be creating an investment trust 3: at this is something some investors had been pushing for. you can see that investing was halted, but now it is higher. they said they will focus on cutting costs by about $500 million and decreasing the amount of stores. it will try to franchise more expendituresapital declining. david: there was the unsolicited takeover bid. julie: yes, it was a petroleum company who made that deal, and you can see that apache shares are trading lower, as our an

adarko shares. if you look at the premium that some analysts are talking about that apache what have to get if it was required, it would be larger than the market cap of anadarko, and an analyst at oppenheimer says it is not a combination in my view, and the market agrees. david: julie hyman at the markets desk, and mark crumpton has more. : thank you very much be congress has passed a 700 policy bill.r the president has been trying to kuan time oh prison since he took office. the legislation, and today, the senate followed suit. of forcing the government portugal to resign less than two

weeks after it took over, the result of an alliance between the socialist and communist parties, both strong supporters of anti- measures. the prime minister has promised to deal with austerity measures after an $84 billion bailout in 2011. the international olympic committee is calling for disciplinary action after a report accusing russia of a wide ranging state-sponsored doping program. they say that athletes could be stripped of their medals. there are charges, and they are anding them offensive groundless, and following the resignation of university theident tim wolfe, university is making changes beginning in january. there were weeks of criticism. workers demonstrating today in nearly 300 cities.

$15 an hour. this would be more than double the federal minimum wage. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. amm the bloomberg desk, i mark crumpton. back over to you. david: some stocks are standing out. kbw regional bank index is up this year for stocks expected to rise. marketring in a chief technician. good too happy with us. before we dig into this, talk to right now.ere we are we had great markets last week. yesterday, a bit of a route. where do things stand? guest: we are coming into an area where there is a lot of s&p hasce, and the

found a level that it likes. and there is the year-end performance chase, and on the flip side, there is a lot of stocks that make up the performance for the s&p, so if you look underneath the surface, like this,ormally but that does not mean it cannot grind higher. you point out that this could be a good buy. why is that? they were actually outperforming leading into the jobs number, but what is interesting is that they are just now starting to break above their 2007 highs with the overall index, so that is a pattern that we like. there is a lot of support that we like, and then we have the interest rate component. correlate more with the spread, so we are seeing this spread start to break out to the upside. but if we are just looking at

the price charts, again, we like the fact that they are starting to break around that resistance. david: and housing stocks, as well and you are looking at those. jonathan: yes. homebuilders are giving us a little bit of caution. it is stunning to break out a bit. that could be some early signs that it is starting to weekend. to try to highlight some of the names that are underperforming in home building itself. some of am struck by the seasonality of this stuff. you mention we are approaching the time of year for small caps as opposed to large gaps, like there is a time of the year for that. explain. yes, there is a difference in performance from large cap and small-cap.

that tends to work better when to do better.d it tends to bode well for the small caps as we go into the end of the year and next year. another note out from jpmorgan, goldman saying there is just a 10% to 15% chance with the fed poised to raise rates, and then it is talking about recessions in the past 50 or's. if history very important to you when you look at what could we wanto mark jonathan: to look at what is happening. market is notthe healthy. one of the things we look at it an index relative to the market.

this is relative to the s&p. if you look at the ratio, that is breaking down some multiyear cap, so it is the big large-cap stocks, and that is a concern as we head into next year. david: all right, jonathan, we appreciate you coming in. that is jonathan krinsky from mkm. insultingly and adequate. i will ask the senator what he thinks the car maker should be doing instead, and betting on china. how a smartphone maker is trying to cash in on the countries single biggest shopping day, and fighting out weston's regarding his credibility for ben carson, and what is tonight live from milwaukee. ♪

david: welcome back to "bloomberg markets." i am david gura. a judge in san francisco has tossed out a significant portion of a lawsuit against uber. the drivers claimed that they had been missed classified -- misclassified. this affects massachusetts, as well. theft of consumer data from a u.s. financial institution. u.s. attorney for the

southern district of new york steroids andyber says it suggests there is a new area in cybercrime with more than 83 million jpmorgan customers hit. trade included scott financial services and dow jones, a unit of new score, and a media company has its sights set on expansion, for an online radio service outside the u.s., according to people with knowledge of the matter of pandora. they are talking about accessing their catalog. ben door has been wounded by competition and slowing domestic has been pandora wounded by competition and slowing domestic growth. julie: some out with earnings. let's look at lionsgate. and have you seen the latest "witch hunter"? apparently, you were the only

one who did not see it. they are still suffering from "hunger games" franchise, and yet, the shares are higher because of a company taking stakes in the company, a total stake of 3.4%. the ceo and the discovery ceo will be joining the board of lionsgate, so that is what is helping them boost shares even as the company earnings miss estimates, because of "thepointing movies like last witch hunter." other shares, that by nearly 16% after earnings beat estimates, and they have several large contracts. however, its growth may be moderate going forward. it looks like for now, the shares are reflecting a lot of optimism, and gap shares are lower. they are coming out with --minate earnings, about 62%

s and $.67 per share is what they saw. the natera public advocate sales down last quarter. down, -- banana republic were down last quarter. ceo has been trying to shake up management, but it does not look to be bearing fruit just yet. david: ok, thank you, julie. just votednate has fromn guantanamo detainees coming to the u.s., and the >> we will like a handle. fromrd blumenthal joins us

capitol hill. certificatee a gift , and i wonder how satisfied you are with what volkswagen has done with that gesture? which are: very unsatisfied. it is an offer that is insultingly inadequate, and it raises the question about whether these owners will be forced to forgo any legal rights. they deftly should not be compelled to sacrifice any of those rights through legal action, but more fundamentally, what volkswagen should be doing -- afering a buy that buyback. this is very different from what they promised these owners. david: when you talk about a buyback, they should have the right to return cars to volkswagen? how do you envision that?

blumenthal: there should be an offer of money if people do not want to return their car, but if they want to return it, they should be offered an amount that is by some kind of mediator that would determine what the fair price is. remember, these owners now have a car that is substantially less valuable on resell. money, and the fault is at directly and solely the company. david: taking place in many countries, so many parts of the world, what role do you see the u.s. senate playing going forward? advancingu see them this? senator blumenthal: there should be investigations, which i believe are ongoing with the department of justice and the federal trade commission. department of justice has the ability to investigate either fraud against the consumers for

false statements to the united states government, which are the criminalder code, and the federal trade commission has an obligation to investigate the misrepresentation and deception to consumers and exact penalties, as it would in any consumer case, but consumers themselves have remedy, and they will be using them, and the united states senate has a role to investigate whether the existing laws are sufficient to deter this kind of wrongdoing. issues with concealment that happen here. that mayve automobile cause a public safety or health issue, although the threat here is not directly at safety. no one is going to go off the road, as they did with the gm ignition defect, but i think that there is a cause for concern.

david: senator, when you are back at talking to constituents, what is the concern? what do they have to say? senator blumenthal: i have talked to dealers, and they are as much a victim as the consumers. without anyese cars inkling that they contained this theware capacity to cheat and so the dealers are suffering as much as the consumers, in different magnitudes, in different ways, but i want to work and cooperate with them. in fact, that they are compensated. for the losses they have incurred, and talking to consumers, they are pretty angry. they are disappointed and pretty outraged. david: while we are on the subject, the new trade deal at the white house, i know there are still early days.

we have just received the final text of it ourselves. as you are going through the document, what are you looking for as you make up your mind on whether or not to support that deal? senator blumenthal: on jobs and the economy. economict drives progress or inhibits it, and whether it is enforceable. i have yet to be convinced that this agreement meets the test that i think should be imposed. it is a high bar. we need to learn from history and experience that the selling of these agreements sometimes far exceeds what they actually deliver. you.: i wanted to ask there is a new speaker of the house. he is promising to change the atmosphere there on capitol hill. have you noticed that change? op is the, there is a big change. do you see an air in which more will be ushered in as a result

of the new speakership with paul ?yan -- with ryan senator blumenthal: where i sit, our defense has traditionally been bipartisan, and i hope it will continue to be. also a military measure that substantially increases the amount that will go to veterans over the bill that we considered previously. i fought for a higher amount. was, in effect, bipartisan, and i hope that veterans will present another issue where we can work together in a bipartisan way. going to work as hard and as long as possible to reach across the isle, because in aed to do more of it bipartisan manner, particular concerning jobs and our economy.

david: all right, senator, thank you for joining us. senator richard blumenthal joining us from capitol hill. tomorrow, anday it raked in billions in sales last year. what about online retailers? we will have that story, next. ♪

♪ "vid: welcome back to bloomberg markets. well i am david gora -- gura. and finding out what the smartphone maker expects. is one of the biggest days of the year in china, so it is the third-largest e-commerce company. we have prepared about 2 million smartphones so that we can sell them in one single day. cory: i am joined by

johnson. important is this? we had a huge figure last year. are we likely to hit a similar figure it next year -- this year? cory: emily had an interview with a phone company, and the sales of alibaba are important to this company that sells phones, but i also think it is aomirtant in the way that xi is trying to distinguish itself. check out what he had to say. >> it does not really matter to us, because we are such a different type of company, you know? i always strain when someone compares us with others be at we are operating at a different frequency and on a different scale. we care about different things to get we care about in gauged users. we care about users considering our services as opposed to people buying smartphones. he is saying is the

fact that they have really crummy profit margins, we will have other streams down the line. it is hard to believe -- also, there are questions of whether they will be able to cell phones in a credible way outside of china, where they are already losing market share. large bloomberg editor at cory johnson, and tomorrow, emily chang is going to be with an interviewith with mike evans right here on bloomberg television. ♪

♪ bloombergm headquarters in new york, this is "bloomberg markets." i am david gura.

mark crumpton. examining security measures at the cairo airport, afterthe russian crash taking off from the sharm el sheikh airport. they are looking at passengers and baggage that are scared as they make their way to the airport. security guards and caterers are also being inspected. and starting to build razor wire fences on the border with croatia in an effort to stem the flow of refugees, and officials say the fences will be used to direct the refugee flow, not to close the border. thousands of people have crossed into slovenia since mid october when hungary closed its border with croatia. secretary jack lew is heading to the ukraine to meet with the finance minister and other government officials over the weekend. he will also meet with members parliament, and

then he will go to the group of 20 leaders summit. u.s. citiese 300 where workers are walking off the job. are demanding hourly pay of at least $15. that would be more than double the federal minimum wage. is tropical storm kate moving quickly away from the bahamas and is expected to reach hurricane strength, the wind increasing to nearly 70 miles per hour. the national hurricane center says some strengthening is expected, and kate is expected to become a hurricane by tonight. it is centered south of cape hatteras north carolina and is moving northeast. on thesean get more and other breaking stories 24 hours a day at the new bloomberg.com. word"he bloomberg "first desk, i am mark crumpton. david: let's take a look at some of the day passed its biggest movers.

some stocks rebounding after the biggest fall in two weeks. stay at their current level in 2016 and 2017, and looking at sugar, sugar gaining with concerns about el niño persisting, and projected u.s. to 50exports were lowered million bushels, and that is the lowest level since 1972, and looking at u.s. export sales, they are lagging well behind, and the supplies remain as corn from, brazil continues to trail that from the u.s., and in milwaukee, they will debate business and the economy, and there is a lot at stake for those front and center, and let's go to mark halperin. let's start with jeb bush, with a rather lackluster performance

last time. what does he have to do tonight? mark: i say this jokingly but part serious. he needs to establish that he is his own man, and he needs to talk about issues that animate him to want to be president. are years reason why people thought of him as a potential future president. tonight is not his last chance, but it is important. a potentially great president. about ben carson? someone who has attracted a lot of attention, certainly with scrutiny the last few days? mark: it will be a lot of scrutiny, perhaps the most in his life. they will focus on business, economics, finance, to ask him about some of the credibility issues, and i think you will see what typically happens with then

carson in these debates, which is they will find his performance stellar, and doubters of his long-term viability was see this. this does not project the way a normal successful candidate does, and i do believe you will see them be pretty forceful coming back. david: i want to point to something that is released, and government ethics is in the economy, and rounding out the top issues, they are focused on the economy and business. is this something that a can convince them that most americans want? mark: it is a very big deal. if they do focus on the economy, but there is no

shortage of topics, and there is an area where there are some distinctions, unlike where they basically single from the same anti-obama hymnal, and they are pretty technical. in some cases, about the tax code or about entitlement reform, and we will see how willing the moderators are to have what could amount to a 101tively dry econ discussion with personality and politics that often is a spark in a debate like this. david: there was a lot of criticism by the republican party about how the previous was handled or moderated. how different is this going to be from the one we saw weeks ago? : in terms of format, how long they are given, and the time to rebut, that is longer, as well, but i think the bigger with eightmight be

people on the stage as opposed to 10, or like previously when we had more, they will have a chance to engage their rivals and will do just that. david: not on stage tonight, governor chris christie. does he have a presence there? is he talking to reporters? is he making his presence known? mark: i have not seen him yet. there is that event before the main event, and i think you will see him shine there. and governor christie will get time to talk and time to make his case, but there is no way to .ave a moment of people again, these debates, as much as people do not like it, they are about big moments of strength. it is not going to have the same resonance in news coverage, which is, again, a big part of what these are about.

david: just quickly, scott walker calls wisconsin home. mark: he will be at the debate tonight. endorse anywill not time soon, but he is certainly looking at the establishment candidates who he thinks have the best chance of stopping donald trump and beating hillary clinton, marco rubio probably first, but also jeb bush and john kasich. john kasich also a walker supporter. david: all right, mark, thank you, and paul ryan will be a guest on the show tonight, and on bloomberg markets, mitigating risk is now a top job of a ceo, and brian moynihan joint us for another exclusive interview live upcomingbloomberg summit, and you are looking at

the second most expensive piece of art sold at auction that sell glasslike, but will it dan the appetite for art? is weak demand for the iphone 6 s. ♪

♪ david: welcome back to bloombe markets. i am david gura. stories in biggest business news, and approaching corporation about a

combination, and if it goes through, it will be the biggest in the oil and gas market this year. apache rejected a previous offer. it is unclear whether talks will resume. or whether or not and darker will walk away. whether -- or whether anadarko will walk away. gaincdonald's announced a in u.s. sales after seven consecutive quarters of decline. and there is a new president at the federal reserve neil cache kari, a banker who rode -- kashkari. and you can always get more business news at bloomberg.com.

the s&p suffered its worst -- its worst in turn day drop in a while. julie: the largest u.s. homebuilder is trying to employ a strategy where it appeals to and itts of the market, is up after the earnings beat estimates. the companye up in grows its dividend by 28%, and the company said sales were up 23%, orders up 19%. and this is helping to lift other homebuilders, as well, in this session. you can see kb home's and others, all of them are increasing after that report from d.r. horton.

is an etf thatt we used to deal with homebuilders. this is up by about 1.2%. effect from ripple it. but we should mention there is under performance this year. if you take a look at my bloomberg terminal, this is versus the s&p 500. most of the drop has been more recently. it has not recovered along with the s&p 500. the is an effect that higher rates have. we can also take a look at the valuation. the valuation for this group, we have seen the valuations go higher even as earning estimates are lower, so the upper graph is the earnings per share, the writs, pe, and in other

the estimated earnings per share. there, i have it. it is trading around 10 right now, which is around the historical range of seven to 10, and the estimates for 2016 have been coming down. david: thank you, julie hyman at the markets desk. , we will have brian moynihan being interviewed by my colleague at the summit. that is coming up after the break on bloomberg markets. ♪

♪ david: welcome back to "bloomberg markets." i am david gura. manhattan, hyatt in we are joined with an exclusive interview with brian moynihan. so from one david to another, take it away.

david: thanks very much to the other david. i am here with brian moynihan. thank you for joining us. oynihan: good to be here. david: we are talking about cyber risk and how much that is on your mind. give us a snapshot. what will you do to manage risk? mr. moynahan: we are good people. we are willing to spend the money because it is our customer. have a good governance process with how we behave internally and how we manage the risk, and we have done a great job of staying ahead of it, but you always have to move forward and think about what can happen next. david: and it is not just a mechanical problem. it is not just machines. it is people. han: it is people, how

people use devices, how people go out in the world. personal hygiene. it is like nothing else. you have security cards to get into the building, and then we have to have great security. we have to have a set of rational policies, but you have to be very disciplined about it, and then you have to invest the money to make it work, and on the rare occasion it does not work -- in the southern district, there was something that fortunately did not involve your bank but another bank, but it is not a lack of trying the people are trying to get into bank of america systems. how often do you experience attempts? han: we do not talk about those, but you should assume we get hit on occasion, a what we do is defend well. one of the things i see going forward, david, is the

cooperation with institutions and governments. it has to continue to move forward. statesthe united government, or foreign governments, as well? oynihan: you can find a way to get to people from anywhere. the physical space, you can assure the resources with a relatively few number of dollars and can do it from anywhere. david: does that mean that the amount of cooperation that has to go on is far different from the way we think about terrorism , more physical, and it takes more money, and ships and things like that? do -- the extent do you share the experiences with what you have learned for developing your own defenses? han: we have a round table, and we have forums where

we compare results, and even the people who work with the industrywide groups, these that are sponsored by the industry, and then the government comes together periodically to make sure that we know what they know, that they can share. is a good amount of cooperation. david: let's move to the economy, because bank of america is in a particular position given that you have so many customers. where do you think we are in the economy right now? han: if you went july, august, september, in the third quarter, it was pretty strong with consumer spending, and it's loaded just a hair, largely because of what was going on in the world, and it right back up -- it slowed just a hair. money.are spending their aggregate spending is probably near 5%, not taking account of the gas prices, so it is a

strong economy, and as we see that translate in, because it didn't move by the consumer to -- d, and wage growth david: how is construction? n: they have bounced about and have disappointed some, that they are year over year about 10%, so housing is still very strong. you have to build a house globally. seeing people borrow. put a new roof on. a new air condition system. house andthe new

building is providing a stronger base for construction, which is good. so are a lot of things you just talked about, and then there were the remarkable job numbers we got just last friday, good numbers, and yet the markets in the short-term have reacted in a sketchy way, i would say. ynihan: i never watch the short term because they react strong, and then they react weak. unemployment is teetering right on 5%, which for a lot of our lifetimes, we thought was an unbelievable number, and now we are saying it would be different. and this is a judgment of the and that if it comes out in the last 48 hours and the important thing is the economy is growing, and

the u.s. economy growing is critical to the rest of the world. for us being strong. david: there is a lot of speculation with the treasury but 20 fiveet, basis points, december, if that happened, what would it do to the bank of america business? an: there is a certain number per rate rise, and when and wee the deposits, have the rates, this is been a very tough environment, and now, that being said, we have positioned the company to get through the mortgage crisis, and now there is a simpler, more straightforward way. the company made $4 billion plus in the last quarter. so spend a minute on

china, and you and i have talked about china over the years. how do you assess what is going on in china right now? an: when you think about what it takes for it to move forward, our experts still think it will move forward. was 6.5%. rate so whether our experts are right this week or not, but in the long-term, you have a tremendous development of one billion coming into society and doing the things that people have done in this country for a long time, and that is good. if it keeps going, there will be momentary ups and downs. it is a very difficult job. david: what numbers are we looking at? themoynihan: i rely on

experts, and they come back in and you have got to have confidence. and it is also confidence that they are moving ford. david: as you look forward to next year, the biggest opportunity, the biggest risk? : this year, last year, which is basically with our core customers to do one more thing. other that is one more in cymer to do a checking account or a ours is to do- one more thing. ours is just to do a little better or a lot better one client at a time. we have great products, great capabilities, so we will focus on our customers. david: thank you, brian

moynahan, chairman and ceo of bank of america. david: this is just down the street at the park hyatt in manhattan. and apple shares coming lower after a credit squeeze report -- a creditsuisse report. ♪ . .

scarlet: welcome to bloomberg markets.

from bloomberg world headquarters in new york, i'm betty liu and here's what we are watching this hour. stocks bouncing between gains and losses as a prospect of a december fed rate hike -- are the glory days of the iphone behind it? new warnings about softening demand. playboy says its business is all about being sexy and smart. the companies ceo joins us to tell us why he is remaking playboy's image. we are about an hour away from the closing bell on this tuesday, kind of a gloomy tuesday. julie hyman has the latest on the slight gain we are seeing. julie: