record in only half the time. republicans take on financial regulation last night's debate, one can it it says if he wins that will never be another bailout. ♪ stephanie: from hong kong, to london, to write here in new york city, welcome to "bloomberg ." david: give a big difference china, to london, all around the world. if francine lacqua here to covered with us. an important day, i'm also coming off the victoria's secret show last night so with a bit of a tire day. i was in the audience, obviously in the audience.

[laughter] stephanie: there were a lot of with that love america there. david: you december the first bird with bonnie quinn. bonnie: it was a record-breaking day for singles in alibaba. the e-commerce giant beat last year's sales with still 12 hours to go. is trying to reverse the companies plunge in market value. russia has come off with a plan aimed at ending the civil war in syria. the plan calls for syria to vote on a new constitution. this russian plan makes no dussian -- mention of assa stepping down. republican presidential candidates battled again last night in there for the debate. eight of them were onstage in milwaukee. one of the things arrested that was how to reform the financial system. >> would you bailout the big

banks again? absolutely not. candidate, of the john kasich, accused wall street of showing too much agreed. you can get more on these and other stories 24 hours a day at bloomberg.com. david: thanks for much, now it's time to look of it's going on in the markets. manus cranny is our man for that. you can't get enough of us from the european side. equity markets are getting a little bit of a boost in terms of china. the retail sale story, doing a little bit better than we anticipated. europe, in the heart of there was a bit of a relief rally for them. the site, they missed -- this is a dime nearly 6% for them. guys and girls hitting the

training floors, let's see how u.s. equity futures are opening. we have a report card virtually unchanged. s&p 500 up by one third. 74% have beat profit numbers in the u.s.. call for a big drop in probability in the u.s. report card is not exactly coming home to roost. let's check the mighty dollar. the dollar comes off a roaring rally. that rally,to me the ramp up is topping night. the market is getting ready for a fed hike in december, fine, but what about the most doveish fed hike anywhere in the world. one big story, it is about beer, we like more beer, and it is miller and anheuser-busch, we

wait to see the deal closes. you very muchnk stay on the london beat, francine is here having a little bank of england -- holding an open forum on the future direction for financial regulations. the big question, when will the central bank became over monetary policy? joining us now is andrew hall dean. andrew, let'some, start. what is your message, or central message here at open forum? when you look at financial markets right now, give us an idea how strong the health of the market today is. overw: well, we have seen the course of the last six or ofen years a big raft reform to make them stronger, fairer, and more robust.

i think that is a work in progress, it is made good progress. in the purpose of today's forum, it is a take of what we got to. have we gone too far? have we not gone far enough, and putting financial markets on a firmer footing? that is really the estimates of today's event. stephanie: have we? theew: well, one of purposes of bringing in not just those inside finance and policy makers like me, but also wider society, the users of financial markets is to ask that question. we don't know what the answers, we can't to know while the answers to whether we are done just the right thing. or we could tweak regulations one way or the other. today is about to listening. is reflectedhat back to wes from market

participants, borrowers, savers, about what they think if more needs to be done. position ofs in a some agnosticism. stephanie: when you look at regulation and risk-taking, this goes back to what the bank's primary role is what does monetary policy. the you believe the next move is a rate hike or a rate cut? we set well last week, pretty clearly what we thought was happening in the u.k. economy, a solid recovery, but with pricing pressures -- inflation is still pretty low. for the vast majority of our policy committee we're happy 5% as theyates at 0. have been for a number of years. looking into the future, we said

it will as elsewhere, depend on how the economy does in the period ahead. there are tailwinds from the slowing of world growth. remains pretty strong, it'll be a question of balancing those factors. one thing he would say is that when rates do rise, we expect that have to be somewhat more limited than the past. the and what will be somewhat lower than in the past. francine: i know you don't want to make that call because you mentioned headwinds. but from where you are sitting, are we seeing more or less headwinds from emerging markets and we were seeing six weeks ago? think: hm, well, i clearly if you compare where we

are now to where we were in the middle of the year, we have had quite a ripple in the emerging market economies. ont will hold back somewhat global growth. that is a story we talked about last week in our inflation report. that is one side of the equation. on the other, here in the u.k. spending domestically remains pretty robust. this is a balance of internal and external factors which will determine which way next for interest rates. for now, we're happy where we are. that balance will determine whether the next move comes a sooner, or later indeed whether the next move is up or we stick will be off for now. i'm curious about the relationship of your thinking process to be fed back here in the united states. to what extent has the fed and are they thinking made your life more difficult in setting

monetary policy over there? open economy, of course, what happens in the u.s., what happened to the euro area matters greatly to us. therefore, the course of monetary policy in the u.s. and asia also matters greatly. question, it is difficult, as we know only too well, to know the precise causes of interest rates. everyone expects that uncertainty. we understand the degree of imprecision that is involved as the economy is moving around. that has not made our life more difficult. our world is difficult enough already. stephanie: i wanted to pick up on something you said, you said depending on what comes out will make us decide whether we hike or whether we stay.

you seem to be moving away from what you said in september that we could see the rate going down. am i reading you correctly? clear: well, it is very in the monetary policy committee has been very clear, that if the economy were to slow down risk or to the materialize on the horizon, then of course we stand ready to move monetary policy in either direction to cushion the effect of that. i have been clear on that during the course of this year. that is a risk, it is by no means a certainty. i think all of us on the committee know there are things we could do to cushion the by lifting monetary policy. that is my central view, it is everyone central view, but

we stand ready to do what is necessary. francine: when will we know the china slowdown is just a hiccup, or a real problem in terms of monetary policy? i think we will see that in the data over the course of the next few months. of course, it is not just a china story. we are talking about risks and a number of the emerging markets right now. that is one of the key headwinds to global growth at the moment. we will track those developments across emerging markets and elsewhere. our colleagues in the area and elsewhere, i think looking ahead , the next three to six months that will tell us a lot about what we're seeing here, and if it is a temporary weak spot or

something order herbal. something more durable. david: i have two questions, what are the risks of overregulation? we see a lot of increased regulations as the financial crisis, but what are the risks of overregulation? number two, how will you know when you're running those risks? ll, therem, we certainly is some risk of that. how could they not be, actually? we have done a whole range of --ngs -- a vast rabnge range of things on the regulatory front. it would be remarkable if all of those things landed perfectly. perhaps the overshot a bit and there is some examples of overregulation. perhaps there are examples of the opposite. conversationg that with those in finance, and those

using finance, will tell us quite a lot about whether you orht be squeezing too much not squeezing sufficiently. again, it will be data dependent. we look at the evidence, and we will cut our cloth on the regulatory front accordingly. do peoplehow much talk about brexit and making it more difficult for you to raise interest rates in the u.k.? so, with a range of contacts around the u.k. we speak to them all of the topics that does come up is brexit. as best we can tell, that is not at present having a significant impact on the spending, investment decisions of companies.

not a weighing much at the economy right now. of course, that is something we want to watch in the months and years ahead to make your that is still the case. for now, there can't just have it, but this is not appear to have much of an impact on the economy at large. david: andrew, chief economist at the bank of england, thank you very much for joining us. ," next on "bloomberg smashes it single day sales record. as you mentioned earlier today, it is veterans day. we spoke with a former marine not ary officer was project manager here at bloomberg's internal creative agency. >> i join the marine corps in 2002 after he graduated from college. i was an officer for six years, i did deployments to iraq. you are not allowed to fail, there is no retreat or surrender. you always find a way to succeed in the cobblers the mission with

the resources you have and the people you have. the way that i changed from going on to deployments to iraq is being much more appreciative of all of the things we have here in the united states. bloomberg is a very better and friendly company. -- very veteran friendly company.

stephanie: welcome back and welcome to "bloomberg ." now it is time to go global, and ishad to china where alibaba already smashed it single day sales record. our own emily chang is in beijing, she spoke with the international president michael evans. hello emily, tell us more about mike evans and what he brings to the company. the goldman pedigree is a big deal. a big deal, this is

a guy that spends 20 years as the vice chairman of goldman sachs. he has been brought in by aliba ba to turn this into a global company. but the last three months since he joined the company, he has been living out of his suitcase traveling around the world striking deals with the brands and retail partners. you may think this company has potential, but since it is nonpublic the stock has been on a roller coaster. what is that say about investor confidence? michael: i'm in a small category of people that is much more confidence about the resilience of the chinese economy notwithstanding the many challenges that exist here. the fact that the economy probably is slowing down a bit, i think growth will exceed expectations particularly international investor expectations. theonline component of that online component of that growth i think will continue to be strong.

we are seeing that today in the performance of 1111 in terms of domestic consumption and international interest in this program. i think it will be fine. stephanie: clearly, it is a great day for the company adds chinese consumers. sales are soaring, but in terms of the share price, the stock is down 21% year to date. when will be see the reaction there? alibaba has to prove they can sustain these kinds of sales outside of a single day. they want to show this is a global company, and that is what investment needs to see. there are many signs that points to that, but they need to show the chinese consumers will keep spending and that alibaba's future is not necessarily tied to industrial output. in pastors -- investors will be looking closer if they can make good at becoming an

international company to have 50% of revenue coming from abroad. stephanie: mike evans, that is just the beginning. in an hour, emily chang will be sitting down with the founder jack ma, you don't want to miss that. david? david: thanks post up on restaurant the world is causing major risks to the global economy. ian bremmer joined us now, the founder of the eurasia group. identify three places around the world that if something went wrong can really affect markets, business, commerce. the first thing i came up with is the refugee crisis in europe. we have 5 million refugees coming just from syria, only 6% admitted to europe so far. the ability of the europeans to integrate these people is virtually nil. backlash, the populism that comes in the european capitals, and the

biggest issue is that since the financial crisis, since the markets have been able to finish that is angela merkel's leadership. that will take a direct challenge as a consequence of these refugees. david: to pick up on that, her leadership which many people think is really profound is very unpopular. it is a popular in europe, and germany, and it will get worse. thankfully, we have not yet had incident inbdo type germany. i wish i could say we were going to continue along that path. but the likelihood you could see extremists that are in these hundreds of thousands of people streaming in from syria that are going to create activities of the germans will then profoundly react to, this is actually very high. legacy which had been one of rule of law is really unraveling by the moment. david: steady as she goes

management style, she has that, and this is a fairly progressive state. you'll get to think back to 9/11 when the stock market crashed and we had a terrible time. some of like that in europe could have profound economic effects. ian: there are still so many issues, you're the british referendum, the portuguese government that may be moved against austerity, and the ability of the europeans to respond to these crises really has so far relied on merkel's leadership. that is eroded, never mind deutsche bank and volkswagen, this will be something investors be much less confident about. david: what about is you in the middle east? ian: everything. the thing that bothers me most is saudi arabia, everything that could go wrong is. a probably spend 20% of their financial reserves this year on

their budget. they don't have virtually any debt, but you are seeing countries around the region go away from saudi arabia. you're seeing the egyptians welcoming the russians in syria, the pakistani government telling the saudi's we will not help you in yemen. is not that the saudi's are leading a sunni bloc, they're becoming increasingly isolated while they are fighting wars on the borders, while the iranians are much more powerful. while opec's powers have gone away. fundamentally, the question of legitimacy of the saudi regime which has been based on lots of oil, lots of cash, and influence, they are going away. it has to worry you about the stability of what had been a significant ally of the united states. david: we can talk about risk of a talking about isis or isil. what do you call it?

it is in the news all the time, what could be the economic effects? : the economic effects the region are small in the sense oil.iraq is producing more isis has the territory that has the resources. the issue is that isis is expanding and becoming more strategic in their attack. the ability of isis to carry out a bombing attack on a russian of theithin a week's russian started their military intervention in syria -- that this kind of unheard of. if they can do that, the question of are we going to see not just local, but trying to hit the europeans, the russians, the turks, ultimately the americans, that is something the world and the u.s. can overreact -- david: we are not seen this. it is a nationstate at the same

time. ian: i think the islamic state is very easy to break apart, but , that isl qaeda 3.0 something we could be seeing an awful lot more of. david: thank you for an much, please stay with us. up next, lera ceo will join us to discuss what wheels you need this winter. the only way to get better is to challenge yourself,

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

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. david: welcome back to " with this is>,

eurasia group founder ian brenner. and tom. stephanie: nice bow tie. : he had to be a few, this is a planetary counsel i think it is called. don't know if you can see it, this is dr. carl sagan. nye, the: bill commencement speaker master. let's get some first of news. bonnie: we start with the mega brewer deal. anheuser-busch is offering to buy miller for $170 billion. it would give them a control of a fourth the world's beer market. that still has to be approved by antitrust authorities in a number of countries. in akron, ohio authorities say there are no survivors on a

small jet crashed into an apartment has. nine people are believed to have been on board. the plane was trying to land when it crashed. it is the single day shopping extravaganza, it took alibaba only half as much time to sell its much product visited last year. top sellers include apparel by nike, levi's. you can get these and others 24 hours a day at the new bloomberg.com. david: tom morning must-read, do you have any? tom: let's continue the dialogue, a little history. thoughts are on climate change, 50 years of theering lbj in 1965 existence of greenhouse effect takes us back to 1824 that into the earth's atmosphere is an insulator.

carriedicist tyndall out laboratory experiments. they pick the burning coal would warm the earth. i go to you,a, ian this is all old the news and yet we just do nothing. whenever our view, where doing nothing. we are doing a lot more this into the chinese, 70% more coal and they have been admitting to in terms of missions. now they have to change their estimates. i think we should stop having global climate summits. the g-20 and security council and all of these meetings were having coming up in paris -- stephanie: tom is so excited for this paris trip. agree that we need to engage the debate in the of crisis conditions in certain areas.

ian: by getting everyone together, everyone is finger-pointing. you need to have smaller groups. tom: you are too young, you and ofamember the pollution l -- of la when you could not see the san gabriel mountains. david: it was literally yellow. tom: why did we change that, look -- we could not change other issues? ian: the chinese are doing everything they can to make the and quality more acceptable so the wealthy will live there. research just that a global poll asking people how concerned they were about climate change. it was very interesting to see the countries emitting the most tend to be the people least concern about climate change. you will lose her territory, you're really concerned. back to want to go

smaller groups. i wonder for trying to solve this may top and down by the very bottom up. disclosure, mike is doing that, he is going to smaller groups. beijing has adopted a fairly revolutionary approach. ian: the reason the transpacific partnership works is because the u.s. stopped trying to do global and got countries aligned with each other. you can't do global on climate, you have to find those groups, the entrepreneurs, the mayors -- stephanie: the countries who needed the most don't have that kind of strong leadership. ian: the point is, you do have individual groupings of countries that see problems from a more similar lens.

the u.s. is more likely to do something on climate if they're in a room other advanced economies. identifying as business opportunity. tom: i was taken aback by the new york times article on coal. fires, at indonesian the meetings, you will attend, will this be addressed in any way? will see much we more about asian growth, sustainability, china, and going from 7% to 6.5%. the fact that they're not buying as many commodities any more. australia is about to go into a recession. those are the urging and parsing -- pressing issues. climate is just not moving the needle fast enough. david: final thought that you

had to paris? pollution in the los angeles. it is gone. it is amazing what they accomplished. you can see those mountains, i could never see them. stephanie: a great way to see this mountains? from a motorcycle, that takes us to our next conversation. makes vehicles that make you love winter including snowmobiles. take a look at this bad boy it is called a timber sled. tractor, scott is the chairman and appropriate today on veterans day a former naval officer. welcome. scott: i lived in long beach in the early 90's, i was there for a lot of that smog. was done by societal change, and that is what is missing. david: and ironically richard nixon in the clean air act. stephanie: when you're living in

long beach, you may have been driving a motorcycle. let's talk about the business you are in and the economy. we're seeing brands like harley get hurt. when you look at the strong dollar, and japan cutting prices -- what is that mean for your business? goes back to innovation, values, and brand. investmentignificant in technology and we had a big challenge going up against one of the biggest and best brands of the world. were uprcycle sales 150% in the third quarter. actually see a tremendous opportunity to continue to build out distribution. we will launch a new motorcycle next week. we feel there was great opportunity as we bring innovation to the market. we compete against the japanese. for 30 been competing years, we worked our way up to

number one market share. listen, the timber sled nobody can argue that is pretty cool, but how big of a business is that really at a time when people might not have money to spend? scott: it is not a luxury item. stephanie: a ski, a sled, tractor? sled is single digit thousands, if every small business, but it gives us the thertunity to bring in off-road motorcycle guys of which there are hundreds of thousands of to introduce them to the sport of snowmobiling. $300 -- for $5300 you can convert your ride to a great drive in the snow. spot -- respond to the environmentalists and a 12 gauge shotgun? scott: the most iraqi way we do that is a lithium-ion ranger for

that hunter. they can have the product within range, so thath hunter is our friend in many ways. quite often, you will find hundreds using polaris products. tom: are they quieter machines in the used to be? scott: of course, that technology has gotten significantly better. fuel economy is better, and the power is certainly increase. david: i want to talk about currency, how much of your business is overseas? how much is the dollar hurting you at this point? of our sales are outside of the nine it states. we have seen a significant impact. it would've been up significantly higher with the exception of currency. we see in opportunity for us to use that to our advantage.

stephanie: mary jo white, she does on the weekend drive a motorcycle. david: thank you very much. tom: i'm just trying to visualize stephanie ruhle with the snowmobile. driving a motorcycle, i can barely drive a car. david: ian will be staying with us, a check on future stocks. sales of china retails climbed by the most in the year. ♪

welcome back, he which are latest. -- here is your latest. bonnie: this is according to

people familiar, they say pfizer and allergan would likely split. germany has cleared away for flight attendants to expand their strike. their calling for a three-day walkout. labor leaders are fighting back against efforts to restructure to compete with low-cost airlines. it is a big blow, new york's attorney general order draft kings and faneuil to cease operations in the state. table dan daily fantasy sports contests. eric seidman called the businesses illegal gambling. both insist what they do is legal. that is the news you need to know. david: last night, the spotlight was on milwaukee with the presidents -- present to candidates sparred out there.

mark halperin was out there for the debate, but i want to start with who was the biggest loser, the banks. there was a lot of beating up of the banks. take a listen to what ted cruz said about them last night. >> would you been up the big banks again? i will give you an answer, absolutely not. i know you have a report card wanted to share it with us and talk a little bit about how everyone seems to agree that the banks had to be beaten up on. and: well, as you know, viewers now, the financial has not in general recovered in terms of their public image since the financial crisis. do, and easy thing to either party, to take shots at the banks and say they are responsible. a little bit of the rhetoric was misleading because with fdic protection, consumers are not

nearly as vulnerable as some of the rhetoric suggested, but there was no doubt the banking community was an easy target for senator cruz. banks are still trying to recover the trust of the public in the wake of what happened in the bush administration. stephanie: al hunt, easy target or is it productive? al: sure it is, most people in america are still struggling. the banks are doing great, or big banks are doing great and i think ted cruz came from the right, audit of company from the left, crews touched every political erogenous stone last night. anti-big banks, anti-hillary media, andti-news even sugar subsidies which is marco rubio's favorite. mark: i agree. he also had one of the biggest flubs of the night when he was

asked which five american department he would get rid of he mentioned the department of commerce twice. nonetheless -- stephanie: he really thinks. also reminiscent of another politician from texas. ian: he distinguished himself on a night when not a lot of people were watching. .his was a substantive debate trump did not do much, carson did not do much, but this was the fourth, and keep like getting tired unmatured this is news. stephanie: mark, and he reports to give out? mark: i punched them out, people don't like when i have everyone roughly the same, but that was how my side. i thought cruz and rubio of the political athletes of this group. they excel at rhetoric and hitting issues that voters in the base of the party really care about. i had ever knows bunched up as a

i except the john kasich rated him higher than a lot of people who thought he was a disaster. , like a has a problem jeb bush, which is the issues that animates them are issues that rub the base the wrong way. they both tried to make an electability argument i thought yesterday everyone, case it was the weakest of the group came away to say that their supporters in themselves that i made the case that i wanted to make. i think they have all improved over time because they have now had four debate under their belt. onphanie: jeb bush opining banks and capital requirement. banks now have higher concentration of risk and assets in the capital requirements are not high enough. if we were serious, we would raise the capital requirements. stephanie: al, want to weigh in here?

frank did raise the capital requirements. i, with quite -- great did not think it was that substantive of a debate. i heard every line many times before. what the moderators did was overreacted to the snide, snarky, cnbc debate and tossed one softball after another and the candidates hit it out of the park but we did not learn a whole lot new. mark: i agree completely, we learned nothing, but it was a more substantive debate in that the questions were all on policy. stephanie: we know the answers already. the answers with already heard before. these are talking points from a large number of politicians. when there at least a beating on each other there is entertainment. we did not get the bread, circuses, just a substantive policy debate.

up, mark, can move i'm curious i'm a we are still several months away from the iowa caucus, what do these debates really do? stephanie: sell advertisements. david: that's right come but what is the real goal? are: well, look, they reaching a larger audience and they do in their day-to-day campaign. the biggest thing that was teased out is that at the heart of the debate to the republican kind ofectorate is what person should be nominated? ame of the most likely when general election, or someone i can say we need a conservative nominee and an outsider who does not fit the profile of who the parties typically nominate. andp and carson and cruz

rubio are making that different candidates, conservative candidates, are what we need. kasich andbush -- bush making case. al: i thought jeb bush had his best debate last night and it was not enough political oxygen to go around. i don't take it mattered. the context was that ben carson and marco rubio will be in the crosshairs. they left that a hair messed up. that was the interesting question, and to some extent that was the fault of the other politicians. jeb bush had a terrible and aence taking on marco previous debate, so did not try this time. donald trump stayed away from the others, including ben carson.

stephanie: gentlemen, thank you so much for getting up early for us. ian, we not letting you go anywhere. he was something i think you should take a quick look at where south african blue moon dimon up for auction in geneva tonight. it is expected to fetch a $55 million it is a mere 12 carats, my birthday is next month. have tv -- how tv is trying to attract younger viewers. ♪

stephanie: time from some news. if you hate commercials, there was good news you may see fewer of them. media companies are cutting back in an attempt to bring in younger viewers.

what you make of this? david: if you can't fix it, feature-rich. we are doing a big favor, the will be more programming and less commercials. by the way, we used to do this in broadcasting and we do it for a while and everyone would back off. stephanie: is this another example of behaviors changing because millennials are saying i'm not taking it this way? deals -- millennials are using this for video, if we can grab a video on facebook and youtube with hundreds of thousands of viewers, this is disruptive. stephanie: we will back with more "bloomberg ." ♪

super singles's day. still counting. new figures show china's

consumer spending is on the rise. fidelity/is the rate of snapshot. what does it mean for valuations in the valley -- they honored us with their service. on veterans day, how wall street honors our veterans. david: from tokyo to paris, to write here in york city, welcome back to the second hour of "bloomberg ." i am david weston. stephanie: i'm stephanie ruhle. here with us through the hour, tom giles, and co-anchor, erik schatzker, who i can tell -- for: it is a bloody quarter macy's here to reporting adjusted earnings -- reporting $.66.ed earnings of

it is not always clear if the reported earnings per share number matches up with analyst estimates, but here is something that is clear -- not sales came in at 5.87 billion dollars. analysts were looking for $6.1 billion. you can see macy's is trading down, accelerating the declines in premarket trading. this is a company that has disappointed on revenue for nine of the past 10 quarters. something is wrong with terry lundgren machine. stephanie: it is not just terry lundgren's machine -- retail across the board is hurting. you cannot walk into this office without walking into any retailer with sales, discounts --look at single state single day in china. it is about sales. erik: except we were intoxicated

that lundgren had done something different at macy's, mastering the on the channel when every single retailer in america could not figure it out. macy's look like it was doing a good job. if i am not mistaken, macy's has a deal with alibaba, which we will talk about. david: at the macro level, retail sales are not going down. they are going up. they are losing market share to someone. those dollars are going someplace. tom: one word -- amazon. everyone wants to get their sales online -- macy's, target, the companies you just mentioned, but they still have a very tiny fraction of the overall e-commerce market. e-commerce is the going gangbusters, and amazon benefits. stephanie: oddly enough, walmart does not want you to compare itself to target or calls,. they are same look at us like amazon. if you think about online

shopping, even if macy's or walmart offers it, amazon is where you go. erik: here are two final things to say about mrs.. it is all about guidance. stephanie: except you hate guidance. erik: no, it is estimates i have an issue with. cfos can bring as much guidance as they would like. macy's is cutting its full-year from $4.20 previously. a slight drop there. it is also cutting its outlook for comparable store sales, or same-store sales. that is the final word from macy's. it does not look good right now, headed into the all-important christmas shopping season. stephanie: is this a middle-class story -- a story of the middle-income consumers who have evaporated out of the system that simply do not have the money? when you look at neiman marcus, they are doing better. are high-end.

people at nordstrom are selling on commission. some people want that -- they want you to give them five suits to choose from even though i only want one. on the lower-end, they're going to walmart, dollar stores, looking for discounts. stephanie: this story is a classic example of the erosion of the middle class no longer existing. erik: i do not agree with that at all. tom, i have to give you full props. fiscalarter, macy's third quarter matches up well against amazon. amazon's sales increased 33%. macy's sales are down 1.8%. stephanie: but how do you think about amazon -- everyone goes to amazon. erik: including the middle class. tom: you also see a change in

what people are buying. the middle class has less of a dollar, so they are buying iphones, gadgets -- it is less about clothing, designer labels. if you are a higher income family, you can buy whatever you want. you can buy the designer labels, walk into a nordstrom. nordstrom prices have only gotten higher. erik: have they? stephanie: they have. library -- my burberry trench coat. $2700. let's take you to vonnie. vonnie: republicans squared off in a debate. one of the more contentious issues, immigration. mr. bush: they are doing high-five when they hear this in the clinton demonstration. we have to win the presidency,

and that is a practical plan, allow people to earn legal status where they were, do not commit crime, learn english. : the politics of it would be very different if a lawyers were crossing the rio grande, or if people with journalism degrees were coming down and driving down the wages in the press. jeb bush called for higher capital requirements for banks. ted cruz said big banks should never be bailed out again. say asylumthorities seekers are getting desperate as the weather turns colder. 14 refugees trying to reach greece drowned when their boats sank. 4000 refugees are waiting to enter macedonia. about 200 are being admitted every hour. thousands of buses are lined up there. russia is holding a new plan aimed at ending the civil war in syria, letting syrians vote on

the constitution and eventually the president. the plan does not call for rush -- syrian president bashar al-assad to step down. you get more on these and other stories 24 hours a day at the new bloomberg.com. david: thank you. chinese e-commerce giant alibaba is smashing it single day record, $11 billion in 12 hours. "bloomberg west" anchor emily chang is in beijing. let's go to her for the latest on the numbers over there. there, david -- we see the numbers rolling in behind me. $12.6 billion now in transactions conducted on alibaba's platforms on this single day. this is a record. they beat the record after 12 hours. we still have three more hours to go. maill be speaking with jack in a few moments, talking about what happened today and his

global vision for alibaba, but you guys were talking about macy's. macy's is a partner for the first time. it is an example of a u.s. company that does not have physical retail stores. in china. this is an opportunity for them to reach chinese consumers. i know you guys were arguing about the erosion of the middle class in the night of states. the middle class is rising here in china, and if a company like macy's can cap the rising chinese consumer, that could be a huge opportunity for them. stephanie: the theme is all about globalization. you mentioned macy's is partnering with alibaba. who else? apple,nike, burberry, cosco -- chinese consumers want international bands -- brands and they want him on the discount. if he can get them on the cheap, they will buy them today. jack ma was here on stage talking about the future of the company and the chinese economy,

bumpy 5, 10ll be a months ahead, and the companies that can weather that are the companies that do not depend entirely on the chinese community. that is what he is trying to do, create a global company that can interact with international brands, like the ones i mentioned. all of these copies are clamoring to enter china, but as we know, there are a lot of challenges when it comes to reaching this market. time will tell whether alibaba can do that not just today, but every day. david: i i didn't -- do not want to take anything away from alibaba's success, but of this $12 billion, how much would have passed through anyway -- yesterday or tomorrow? emily: that is a very, very good question, and customers we have been talking to, they have been setting up the orders. we talked to one person who said everybody in their office three ordered an air purifier, and the transaction is being counted

today. it is a question of how it is that they will keep this up not just today, but tomorrow, and the rest of the year. that is what alibaba was trying to show. we talk about mike evans, the guy from goldman sachs who is coming into focus on international growth, international strategy. he has been living out of a suitcase, traveling around the world, trying to get retailers to join alibaba's platform. it is a big question, something we will be watching, and some thing i will be asking jack ma a little bit later on. erik: do we have any idea how profitable singles day use for alibaba, or is it a loss leader to bring in additional customers so that they get hooked to the platform? emily: that is a really good question, erik. we will not know the numbers, how profitable this day in particular has been, will have been for them until we see the latest earnings results. they are investing a count in advertising, investing a lot in

getting retailers and retailers on the platform. the way this works -- in a lot of cases you have 180,000 brick-and-mortar stores participating. they have deals going straight to people's smartphones. when you walk into the store, you open it up, and you unlock a deal, so to speak. alibaba is investing heavily on this particular day, but the question is can they sustain that throughout the year. emily chang, thank you for joining us. stay tuned for emily chang exclusive --emily chang's diskless of interview with jack ma. that is in the 9:00 hour on "bloomberg ." erik: unicredit plans to cut its workforce by 13,000 jobs. 6000 of those jobs are from the sale of the ukrainian unit. this is more of the same. we have seen this from barclays, standard chartered, and even

bigger job cuts from deutsche bank. but there is a massive restructure -- restructuring going on in the european banking industry. unicredit is under pressure, responding with a plan that it says will increase net income, more or less double net income, by about 5 billion euros in 2018. david: let's put it -- stephanie: let's put it in perspective -- these european banks to late to the game. where have they been? erik: they have been waiting. stephanie: there you go. erik: now we get the results. 18,200 jobs is what unicredit is targeting for its workforce reduction. breaking news right now. stephanie: thank you. today in france, president francis hollande laid a wreath to remember veterans on this veterans day. here at bloomberg, the founder of the military veterans committee spoke to us about the

common obstacles veterans face joining the workforce. john: they underestimate themselves. they need to have that energy they had in the army. they have never had to write a resume. they struggle with transitioning skills from the military to the civilian force. i encourage them to think about themselves, to have tremendous leadership skills and other soft skills, and the other ones can be taught. ♪

stephanie: welcome back. you're watching "bloomberg ." time for a best of bloomberg, where we bring in stars, taking a look at some quotes. us?n, what do you have for i want to pull up the

first quote here. i want to look at this 1 -- i "there is adplay -- real chance that the unorthodox he becomes the new orthodoxy. knowanie: i did not orthodoxy was a word. jason: this is about negative interest rates, and the idea of a conventional wisdom says negative interest rate sorry terrible idea, investors will freak out, but what we have seen recently in places like sweden is the actually works at something of an economic stimulus. it encourages lending and spending, as they say. so, maybe, this unorthodox thing is an orthodox way to go. david: radel you has a presentation on this. he says the next time it is

around, we'll going to the negative territory, because we have use of everything in the positive. we have no place else to go. jason: it is interesting -- on that point, if you go back historically, volker time, high interest rates were double digits. stephanie: that is not even in our -- you cannot even use the term "high interest rates" in the current environment. jason: right. it is amazing. everything is relevant. high back then was double digits. high now is 5%, 6%. stephanie: you have to give us ivan. i love his quote. -- "a let's go to that 1 number of trends have passed social,-- there goes mobile, big data, analytics, cloud, and ibm is trying to play catch-up in all of those." stephanie: you had a feeling i would pick this one. tom, what do you think of this? tom: we had a story about this.

we asked the question, why are so many people, including warren buffett, so many people holding onto the stock? this is a company that had slowing growth, falling sales, missing the trends that ivan is talking about. the fact of the matter is people still see there is a transformation underway there, and they are confident is going to continue. stephanie: also, it is a blue-chip name. when people think ibm -- they like it. listen, there are other major investors that have been very short, very negative on ibm the last few years. david: i i just -- just love this visual. stephanie: big missed here. in fairness, they are turning it around. stephanie: tom, you are stay with us. jason, thank you so much, my friend. he is like what? no more? sorry. next, fidelity writes down the

value of its stake in snap chat -- this is really important -- by 25%. our silicon valley unicorns losing their luster? this is a big, big story. ♪ futures is time now for in focus. i am erik schatzker. lastr has traded lower the five sessions headed into today, and it is now at a six-year low. the metal has slumped on the strengthening u.s. dollar and slowing growth in china. strategyhe director of at bell curve capital with us from the cme. 2.1970- copper touched this morning. where is the next level of support? level of support is five levels below at 2.15.

we believe there is going to be a lot of stop-hitting here at 2.19. again, all-time lows -- not only six-year lows, all-time lows. aboveded at an average three dollars for the last six years, so this move down is big news here on the cme. factorsris, a couple of were between the u.s. dollar and perceptions out of demand in china. which is more important right now? chirs: i believe the demand out of china, as you see this move lower, was carrying it to all-time lows. industrial numbers came out. to fiveised it lowered point 8%. it came out at 5.6%. percentalmost 4/10 of a lower than the average. we see a definite slowdown in china. the american copper council meeting begins today in fort lauderdale, is that correct? chris: that is correct.

erik: how important will that be to set the stage for a potential upgrade in 2016? think it is important. it has been covered by bloomberg. i believe overall, the strong dollar is continuing to carry metals lower -- copper and gold. like volume today, veterans day -- as you can see, not many people behind me, but that being said, once trading picks up again tomorrow, i think we could see that 2.15 handle in copper. erik: chris, thank you very much. chris gersch is with bell curve capital. he is with the cme. thank you very much this morning. more "bloomberg " coming up next. ♪ stephanie: welcome back. you are watching "bloomberg ."

while we are here in new york city, ecb president mario draghi is speaking in london, taking part of the bank of england conference on reforming financial markets. you can hear his speech in full on the bloomer, no -- term -- bloomberg terminal using live go or bloomberg.com on the live event channel. stephanie: looking forward to what he has -- david: looking forward to what he has to say. reduced its stake in snack chat by 25%, following a right down of tech startup lockbox. our companies no longer able to live up to expectations? tom giles, i am surprised -- yesterday we were talking about the dramatic views of snapshot, catching up with facebook, now fidelity dropped their stick by 25%. stephanie: it is a liquidity issue. when you need to go sell it, it is a different story. tom: there are a couple of

things going on --for years, millions of dollars have been pouring into these colonies, as we started to call them, unicorns, special company. now we see companies like fidelity having to release data, we get a glimpse into how they value them, and they are starting to say, wait a minute, these companies are not quite worth as much as we thought they were. they have a business model, but there is way too much money chasing after too few good ideas. david: that is what is interesting about this. in the late-19 90's when there was a tech bubble, people went public, so the markets were looking at valuations all of the time. a lot of these valuations are private money. you do not get a peek. because fidelity's public, you get a peek. stephanie: this is venture capital fundraising versus tech valuations. look, it has been a runaway train. -- it is these

traditional running managers and insurance companies that have invest and the and they say i have -- envy and they sat have to get to california and throw money at these investments, and when they market their books, it is not so clean. tom: you've not have movement in the market like you do with a publicly traded company where you see day to day how they are hurting, how they are healthy. david: do we see something is not? i recently are seeing something we are not saying. ipo square -- we got their respect. they raised money at a $6 billion valuation, but they are value waiting themselves at -- valuing themselves at $4.2 billion. some say they are being conservative. they could come out and say we're going to go to the higher end of the range, a higher valuation, but there is a big delta at $2 billion. david: that is effectively a

down round and nobody wants a down round in this business. stephanie: a lot of the people invested in the early rounds cannot get into -- out of their positions. there were people, early , whotors in bet -- uber like to be investors now, but they cannot sell out at their positions. there is not the liquidity right now. it looks good on paper, and you sound cool at a cocktail party if you say you are an early investor in snapshot, twitter, or certainly uber. tom, your stay with us. we have more to cover. first, about one of my favorite check out thes -- path of kate. when we come back, talking google. ♪ the only way to get better is to challenge yourself,

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

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. stephanie: welcome back to "bloomberg ." you are looking at a live shot of the memorial amphitheater in

virginia today, veterans day. in new york, we are about to have a conversation we like to call your best self, when we think about leadership, great management, and ways to improve all aspects of your life, being your best self, and who better ,o join us then laszlo bach head of people operations at google. google, wenk about think about disruption, but given the size, one would think it is a mega conglomerate. one of the reasons you split, was it to keep that drive, the entrepreneurial spirit? : it is hard to sustain innovation and growth when you get big and we have 60,000 employees now. we very much realize we might not have it all right. me -- we may want to get try different things.

them the chance to build their own thing within this bigger company and the resources we can give them to be successful. what is so special about the start of environment that makes employees, leaders so excited question mark --excited? mr. boch the impact. at google, you change a line of code, you feel it every day. change -- the chance to change something and impact the world right away the next day is enormous. say feelinghen you things, it takes me to the people data you had at google -- your average person at a company three years ago did not want to fill out a 360 review. you have gone a different direction. what is gathering the data and information about the way your employees feel, and i would say some old school employees with a

field -- who cares, do your job. why does it make google a better company, more effective? mr. bock: this might sound funny coming from google, but feelings are everything. you want people to feel happy, motivated, committed. those are all good things for the company. it is also the right thing to do. all the data and surveying is harnessed with the purpose of how to make people happier, and then goodness comes from that. stephanie: what did we learn from that -- marissa mayer and yahoo! gave employees the opportunity to work from home. in theory, that would make them happy, and she walked through the floors and said where is everyone -- this looks like a graveyard. she pulled them back to work, saying they were unproductive. where's the balance between getting your job done, and making people feel good? willock: generally people do the right thing if you tell ofm and you get them a hint

what they are doing. if you are out in left field, doing talking crazy that does not matter to anyone else, your manager may let you know, but you also see it, and your peers will see it and say "laszlo, what are you doing? can you come work with the rest of us?" the problem at the 90% level fixes itself. dataanie: when you collect -- for example, how many women in google put himself up for promotion -- why is it valuable? why do you need data? we dock: the reason is not make great decisions as human beings. we think where you are rational, objective, but there are all these things in our brain that make us make suboptimal, bad decisions. saw women were getting promoted at a lower rate than men and there is no reason that should be the case. when we dug into it, we found that men nominate themselves for

promotions. at google, you do that -- the men do it before they are ready, and the women weight too long, until they are more than ready to we told everyone in the company men are nominating more often, but women are more successful when they are nominating, and the home -- problem went away. women raise their hands earlier and more. we would not have known that a mess we have a data on the behavior. stephanie: what is the advice -- every company should collect the data, or every employee should step up more? let's be honest, think about the resources google has versus your average company. mr. bock: one is absolutely step up more, but it is also not fair to put the onus on people feeling uncomfortable. in our case it was women feeling uncomfortable to raise their hand. it is not fair to say women, you have to behave different way. is the men have to come -- behave different way, the company has to behave

different way. differently, the company has to behave different way. stephanie: you are known to believe that manager should have less power. would solve itself, but you are saying do the opposite. managers are not that helpful. it is important to have a manager. sometimes you are lucky enough to have a great one. most of us, over our careers, have average managers. spend a lot of time managing them. trying to make sure they are happy. taking power away from --agers, google cannot make managers cannot make promotion decisions. i taken that away, the manager is a coach to help people, and you need to structure of the company, my team -- stephanie: if that is the case, we're putting the wrong people in management, because normally, high-end form is, those brutally focused on the bottom line, i

-- in management positions, high-end performance, those brutally focused on the bottom line, i put in management positions and they are not coaches. mr. bock: by finding ways to unlock the power of the team, give the team more freedom, and take power away from the managers, you ashley get better decisions. stephanie: what else have you learned through data? another thing we worked on as he went back to this notion of healthiness. we feed people -- give people free food, free snacks, and we figure people are going to be happier, more productive, if they are healthier. it will save on health insurance costs as well. stephanie: has it saved on health insurance costs because we learn to spread yesterday will stop doing that and it will save them $600,000. mr. bock: we did simple things like where you go to get drinks. we put water and have free beverages behind clear gas, and

unhealthy beverages -- glass and unhealthy beverages behind opaque glass. health insurance costs have been to curve. they are going up everywhere, but the rate they are increasing has slowed to medically, and we think it is in part because of these initiatives around health and these small nudges. stephanie: millennial's -- we hear so much about what they want, what they need. are they these unbelief -- unbelievable professionals that we need to satisfy, and the social good -- i know you're tired of that answer mr. bock:. mr. bock:-- answer. mr. bock: i will skip the social good. when we interview melendez, they want all of the stuff -- freedom, social good. when you talk to people that have been in the workforce for 20 years, 30 years, they say the same thing, but 20 years ago you for that stuff.

millennial's are more vocal, but they want the same thing all of us want. if you are 50 years old, six years old in the workforce, people at that age want freedom, -- 60 years old in the workforce, people at that age want freedom, autonomy. we want to get to everyone, and that attracts millennial's. can mature companies change their egos to satisfy employees not just with compensation, not just with big management jobs. one would say it is easy for google to do it. you are the first of your kind. mr. bock: what is cool is we actually were not the first -- there have been a lot of companies doing this without the science and data because they have good instincts. stephanie: like who? mr. bock: there is a company called wegmans, a family-owned chain, and they have always given their employees freedom. their coo told me this great story about this bakery worker that a customer call, i have a wedding tomorrow, the cake got screwed up, can somebody help me? the breaking worry -- the bakery

worker shuts down the bakery completely, bigs the cake, complete me shuts down, they lose a day of revenue. a guy comes back and his manager says that was the right thing to do. if you want to give advice to an employee about how you get more out of your job, how you perform better, what would it be? mr. bock: the biggest thing would be what is the right thing for the end user. just focus on doing the right thing for them, and every thing else will work out. stephanie: hold on -- what is the right thing? ati'm some of that shops neiman marcus, the right thing is sell me things that 70% off, but that is not the right thing for the store. mr. bock: here's what i would say -- take a small risk that faces you in the favor of your customers. if you are a small, trying to figure out how to advertise on google, we have a business that helps you. we have people on our team that are asked the same question again and again by a family-owned boot manufacturer,

or what have you. they said is there anything else i could do, the customer said i am hungry, i would love a pizza. they ordered a pizza and expense that. it was a crazy, weird, dumb thing to do, and the customer loved it. the manager said it was the right thing to do. for $20, we won the lifetime loyalty of this customer because the employees that i will order you a pizza. stephanie: here is my take away -- and do things that are so crazy they just might work. laszlo, thank you for joining up at laszlo bock. today's your best self. here is a bloomberg byte before we go -- most viewed person, neil cache kari, just named -- kashkari just named

federal reserve governor in milwaukee. he ran for office. markets are green. we're looking pretty good. stick around. ♪

vonnie: welcome back to "bloomberg ."i am vonnie quinn. u.s.argest retailer in the missed estimates -- macy's says they missed with the reason of unseasonably warm water. -- warm weather. the italian bank unicredit plans to cut almost 20,000 jobs by 2018. unicredit is cutting costs to improve profitability. and singles day may be coming to a city near you --alibaba chairman jack ma says he may 24-houre company's

shopping promotion to the u.s. and eu cap. alibaba has already handled more $12 billion. we will speak with jack ma at 9:30 a.m. eastern on bloomberg tv. david: broker-dealer drexel hamilton is one of several wall street firms of a military servicemen and women reenter the workforce. i went down and spoke with drexler hamilton and some veterans who are couple of years ago were in combat and now are working on trading desk. kim alonso spent four years on carrier harry s truman, supporting other missions in afghanistan, but the most daunting expense came after she returned stateside. thing, was the scariest there are much more scariest things -- scary things than war out there and that is the lesson i learned, trying to provide for your family, making sure you can

put food on the table, you're not getting a call -- it is much more scarier than war. is among the veterans that have found a career in finance at drexel hamilton. the firm founded by vietnam veteran lawrence dog was created to help veterans reenter the workforce. half of its 97 employees are combat veterans, 25 of the severely wounded. jim, a former managing director at salomon brothers and lehman brothers, runs the firm. jim: the main interest is to help more veterans. they have kept us safe for the last 15 years, so when we put them back with the family and give them a shot at the american jim, it heals a lot of wounds. david: how big can you get and maintain that sense of team? james: it is hard to turn these people away when they have served the country and on everything they have done. we do not turn them away, but we have to turn a profit. david: air force veteran preston carlson through 80 combat missions aced out of bagram

airbase in afghanistan. he flew the a-10 war hawks. preston: simply, we are showing up on the worst day. we would be called constantly in a firefight. our job is to get there and essentially stop the firefight so everyone can make it home. david: back here at home, he joined drexel hamilton three and a half months ago. in some ways, you are like all of the rest of us -- have the same hopes, dreams, ambitions. in some ways, you are very different for months who have not really experienced combat. how important is it to you to have other combat veterans around you in the workplace? resource.n incredible you have an immediate friend and someone that has a similar frame of reference, regardless of what they did, and that is comforting. it is encouraging, and it is a positive. has their own personal expense transitioning

out of the service, and mine was trying to get on to wall street. i kept being told by hiring managers, recruiters, we are sorry, but you did not attend our campus recruiting event, and i always say there was no cap this recruiting in jalalabad, afghanistan. graduate johnint martinko did seven towards, has been with drexel hamilton for three years. he received three bronze stars and now he is a managing director or capital markets. john m.: preston, who you met -- it is an adjusting than it. we are working together again, not on a battlefield, but on the trading floor. david: they're very much like the people you're calling up air support from. john m.: different call

assignments. david: if you were able to call up leadership ask and ask one thing for veterans, what would it be? kim: start off by hiring one veteran that really gets it. you can recruit more veterans. the value will show itself. david: that is drexel hamilton can we are joined by two colleagues that are also service members -- by day, justin day works for bloomberg trading solutions, and he is also a .ajor justin wolff also, brooke sweeny, who recently joined bloomberg editorial after serving in the marine corps and naval rotc. welcome to broker the best both of you. justin, pick up where drexel hamilton left off. what is the challenge? justin: the transition phase is challenging. ashley just got home a couple of weeks ago. i'm still going through the transition. i am returning from africa. the biggest thing for a transitioning veteran is for

them to be forthcoming in the information they have. they love to tell stories, but one of the great things about talking to other veterans, whether they are out of drexel hamilton or bloomberg, they have the ability to understand some of their backgrounds. one of the things we did here at bloomberg was create the bloomberg military veterans committee to help facilitate that and grow, so whether it is awareness or hiring, the transition is key. david: it is interesting, stephanie, talking to these people, they call them minorities, minority employees, which is ethnically true, a small minority of veterans coming back. stephanie: but drexel hamilton employees brought up a great point -- in terms of trying to get a job when you return from the military, they are out of the sequence. banks -- the financial industry has spent so much time and money on recruiting efforts to basically five specific schools, and if you are not on that specific and the a trajectory or go to one of those undergrad programs and get on that schedule, you are out of luck. there are not as opportunities anymore. did you find that?

absolutely. i could not agree more. i think it is difficult because one veterans enter the workplace the skill set might not be as amount ofs i did x years trading with this company. it is different. they have more of those soft skills, but they are just as invaluable. stephanie: they are not soft skills, they are problem-solving. wall street spent time and money looking for candidates that had four internships, but you know what they could not do, solve anything. veterans can. david: tells about your story. how many the planets have you done? my third.is is i have been to afghanistan twice, and africa, recently. people looking for jobs, having veterans, it is a transition phase, but it is also a volunteer workforce. from my standpoint, i actually worked at bloomberg and volunteered after 2001. david: why did you join?

justin: i come from a background -- i went to the virginia military institute, and ironically, today is founders vmi, founders day as well as veterans day. after september 11, i was at the world trade center site volunteering and i came across a couple of individuals in the united state air force and i asked them where they were based, where they were stationed, and they mentioned the international guard here in new york, so i reached out to those individuals and picked up a pilot slot a few years ago. david: brooke, what took you toward the military? brooke: so, i came right into the military out of high school. my brother is an officer in the navy. my grandfather served in the marine corps. follow theed me to same suit, and i've never been one to shy away from the challenge, so the marine corps really intrigued me in that sense. so, i did naval rotc throughout all of college, and i was a

marine option there. of myit was the best time life -- i have to tell you. i miss it every day. stephanie: people that say bloomberg is really hard-core, it is nothing compared from -- to where they came from. major justin justin wolfe --justin wolfe, brooke sweeny, think you so much. tom giles, thank you for spending the hour with us. we will have more of "bloomberg " when we return. ♪

stephanie: you think it is a big day in china? it is a big day in bloomberg. still to come this morning, .libaba founder jack ma that is at 9:30 a.m. eastern. you do not want to miss it. stick with us. you are watching "bloomberg ." ♪

>> we are now 30 minutes from the opening bell here in new york. stephanie: we are joined by our

co-anger, eric. i-5, once again. the chief risk officer for matt lynn patterson is with us. this firm manages 7.5 billion. a nice split. thank you. >> thank you for having me. first we take you over for the first word. >> thank you. aplan calling for constitution to be written with an 18 months and put up for a vote. could notal-assad help to develop it, but it does not say he should step down either. crews from ohio will search for the wreckage in a business jet in akron. nine people were on board. no one was in the building. the victims have not been identified.

restaurants nationwide are marking this veterans day with specials for veterans. apples, chilies, among many offering discounts, like free white, and blue pancakes at i hop. you can get more on these and other breaking stories at the new bloomberg.com. >> let's kick off the futures right now. our three indexes are in the green headed towards the open. the s&p is up, the dow in the nasdaq falling similarly despite news out of china that industrial production rose less than expected, 5.6% as opposed to an expected 5.8%. retail sales jumped by more than expected numbers, about 11%. beijing is trying to move towards a more consumer-oriented economy, which is a step in the right direction. treasuriesok at

right now, the 10 year is moving right now, the yield, 2.3% right now, it's been at this level since november 6. a december rate hike is a possibility there. over to oil, let's take a look at that and see a how it is performing right now. oil is down by one served -- 1% right now. crude stockpiles are again on , a 6.3 million barrel rise in the majority, much higher than the 1.3 million that analysts were expecting. the weekly oil inventory report is pushed back by the veterans day holiday. sticking to oil news recently crossing the terminal, anadarko says that they did try to buy apache corporation in an all stock transaction. taken with the shares, they are up in pre-market by nearly 2%.

6.2%. corporation is down the target was rejected and it was said that note discussions of substance occurred. interestingly, if that had been successful the combined companies would have produced 580,000 barrels of crude, beating the entire country of output. big powerhouses there. erik: time for the five stories that matter to markets now, beginning with anheuser-busch, $75 billioncord loan to back its acquisition of sab miller. buy isde the offer to this morning, sealing a long anticipated deal that combines the worlds to largest ruing firms into a single company controlling about half of the industry's profit. yours is a firm that it cares deeply about credit. ashman, what does it say to you

that banks are willing to loan $75 billion on a single deal? and this is not an isolated case. some $50 billion in debt are bought -- block -- backing the dell acquisition. ashman: look, it's not news to anyone that people are trying to pull liquidity out of the banks and regulators are trying to make it more conservative, so banks are hunkering down and doing what they really want to do. do overlyu could not risky loans, so lets to loans with risky clients. this is exactly what the regulators want, banks doing what they do best. lend money. how about another big thing that banks are doing? firing people. unicredit cutting its workforce or 14%, bymployees, 2018, as they seek to improve returns. the bank will cut positions in germany, austria, and italy.

the unicredit ceo is joining executives in turning to job reductions as a way to improve profitability. aom your perspective, is this positive? as banks get out of businesses, you can get into direct lending or in the negative, they can do less the service you. one aspect that we have all talked about his does look, banks are getting out of business by definition, asset returns will have to get cheaper . that's the good side of the story. the slightly less pleasant side is banks getting out of businesses in the united states means that there is less liquidity in the markets. it's much, much, much harder to transact now than it was precrisis. that's a: maybe positive? because it was so easy to get liquidity before the crisis in structure. ask, maybe that was a problem? not evone shld play. ashwin: perhaps, perhaps,

perhaps, but it will take time for other market participants to get used to this. also, as you make the banks safer entities you make them a bit more conservative. there are entire swaths of the u.s. population that cannot get access to credit, which is a problem. david: number three, retail, alibaba single day. the e-commerce emporium has $12 billion ined sales with another four hours to go. top-selling items have been baby related. that might be about the one child policy that has been changed. levi's products. they even brought in daniel craig and cam -- kevin spacey to add glamour to it. shares are up in premarket trading and there are so encouraging retail numbers as well. i would buy anything is daniel craig sold it to me. what does this say about china? the policy of

reorienting their economy to be more consumer focused seems to be working. it's a step in the right direction, along with to go, but it's great news. number four, the department of justice sued continental holdings in an attempt to block the takeoff and landing rights at work national airport, arguing the deal the antitrustaise division -- allowing united to acquire even more spots would fortify their monopoly position ." the justice department is stepping up after a decade of mergers. not so friendly skies. i'm not sure that this would cross the desk at madeleine patterson, but we see merger and acquisition consolidating industries to an almost unprecedented degree,

airlines being one, health insurance being another. does it seem to you that this is just the opening volley in the next battle for the doj and fcc to root out and maybe the fcc to root out anti-competitive behavior these hegemonic industries? i think so. about a year and a half ago the doj was involved then with american airlines, 25 pages saying why the merger shouldn't go through. i think it is the doj doing its thing again. again. vivendi, dropping the most in seven years after earmarking a 10 -- $7 billion cash pile in what? none media content, raising concerns among investors that they may limit their returns of funds to shareholders in the future. the company's ceo said that it was time for vivendi to be able to grow again. the steepest intraday decline for the stock since october of

2008. so many investors are saying -- it's time to be long-term and company liken a vivendi starts to think long-term -- stephanie: hold on, it's easy to say we are going to be long-term in our thinking. that's like me saying i'm going to work out today and be healthy. they aren't doing it. does mean of going to do it. guaranteesbillion in ? you will pay more for talent. that's not how you do it. you do it hit by hit. take the $10 billion and go spend it. look, you got money and we want it back. will all right, we continue. those are the five stories that matter to markets right now. stephanie: guess what else? after 9 a.m., we can talk about drinking. italy just produced the biggest grape crop ever for sparkling wine, but prices aren't going to drop anytime soon because then

vei s -- then tuners -- intners are stockpiling. are you a percentile guy? ashwin: sometimes, early on a sunday morning. stephanie: early? what about you, david? david: millennial's. erik: not early on a sunday morning. [laughter] stephanie: there you go. later in the hour we are going to wrap up all the ball' record-breaking singles they with an interview with their executive chairman, jack mob. maybe we will toast. ♪

>> sales targets in the third quarter, the department stores lowering its outlook for the year.

one-time costs boosted to close about one dozen stores, shares down 28% this year. t-mobile is upgrading its customers and allowing to stream free of charge, most not counted on the data cap. speeds are streaming by lowering the amount of data. big changes in the bloomberg billionaires index. jeff bezos move past carlos now worth $58s billion. amazon shares have more than doubled this year. that is your latest bloomberg catch.s jcpenney is surging up by 3.5% after same-store sales topped analyst estimate, a fourth straight sales gain for jcpenney, its first under its new ceo, marvin ellison. checking on kohl's now, having a

choppy week, dropping by 5% on monday, then it's best day since february yesterday, today taking a look at where it's going right now, down by 4% after jefferies lower the earnings estimate saying that recent warm weather is hurting the company, which is of course similar to macy's. coming up next, why management matters, who is on top? ♪

erik: that's a live shot, folks, of the two of the unknown soldier on this veterans day. remembrance day in the british commonwealth. ."u are watching "bloomberg go warren buffett says that it's almost impossible to overpay a truly extraordinary ceo. carl icahn says that the ceo is the most important decision for

a company to make. but finding such truly extraordinary men and women isn't easy. in a new report, funds tracking global advisors set up to make it a bit easier. george crunched the numbers to identify five ceos that he says belong in the captain ahab club. john malone, radel kirk, eiland musk, scott thompson. scott l thompson, not to be confused with another scott thompson. did you decide if these of five men -- of course you look at women as well, ended up being the five that deserved mention? it was a systematic approach and we tried to find people with three specific criteria. they had to have had more than two jobs. the reason behind that is to tease out new investment opportunities. while they were in their jobs, see you know, cfo or chairman, they had to have at outperform

not only the s&p 500 but their peers. when you put those buckets together, these are the three that stood out to us -- five that stood out to us. why malone? stephanie: because is great? erik: i mean why at the top? malone, the commandments, you reserve special mention for him as someone who has created an enormous amount of value for investors. george: he's just a special person. when we tease out what these done, they have all are innovators, either from a technology perspective or even financial perspective. they have incredible drive, and ability to inspire people, but paradoxically and ability to let things go, which i think makes for a good money manager. malone has done that multiple times throughout his career. he is just an incredible example of someone who has innovated incredibly from a financial perspective.

he also let things go. he sold at&t after 25 years. this was his baby, you know? after that he has done things -- and incredible, career of letting things go, creating value for people, just being an all-around very good -- david: have a work around it with him some, he has a sense of a terrain, a large terrain, to know where he can take it vantage and where he cannot. almost in a military sense. he knows when he has the high ground and when he doesn't. he knows how to deal with it better than any other i've seen. george raises an interesting point about letting go. that's one of the hardest things we have to deal with in this business. stephanie: that emotional attachment to the idea. remember bill lachman and jcpenney? ashwin: or the facts change.

george: sometimes the facts change. at 50, you buy something then the next day it's 40. stephanie: by moore. typically, stopping yourself out is the only risk management you can do. it's very hard. it's interesting that that comes up is a quality of management or leadership. ivid: i was curious -- erik: was curious that you chose elon musk for this rarefied group. he has a track record that is not nearly as long and there are still a lot of skeptics around what he is going to be able to a competition terms of generating profit at tesla. because at one point, at some point, and thierry, the profits have to show up to match the appreciation in the stock price. george: they do. he's also shown those characteristics. selling pay pile, cello -- selling other businesses it was involved in.

wrinkly, i think he was let go of tesla if he didn't have the opportunity it did. he so believes he's on the cusp of something very great and very innovative that he's willing to keep plugging along. if you are still alive, were steve just would steve jobs be on this list? ashwin: absolute -- george: absolutely. ashwin: there is a debate going on, what is the management, what do you think these people leaders?? managers? does it matter? george: i think both. leaders are able to inspire people and without question, these people do. yunnan musk. people work countless hours for him because they think they are serving a mission. but at the same time, he's a .anager making decisions we have to bring a certain component in-house, he does it. he sets goals that are far above what anyone thinks they can do, theyt the end of the day

mostly do them. he built an electric car when people were incredibly skeptical about it. stephanie: this is a perfect time to put ed green on the list. talk about being skeptical about what's going on, dupont. why is he such a skeptical can to get -- candidate? george: when he took over, he partnered with john malone. the companies gained a tremendous share because he given the idea, from what i've read, to basically tied equity compensation to customers to drive market share. after that they gained tremendous market share and hustle the company to motorola. he someone i think and do an incredible job. he went into tyco and spun off to companies twice. if anyone can take over a dupont, where there appears to be tremendous value, he can do it. you go.e: well, there i love this list, it's great.

thank you, george. how do i say or last name? george: [indiscernible] stephanie: before we go, a quick bloomberg bite -- who is on the tying of the list? john malone. there you go. ♪

stephanie: welcome back. you are watching "go." ashwin is still here. this is one of my favorite portions of the show, digging into investing. you recently wrote a piece saying that bonds are back. music to my ears. what do you mean by that? ashwin: one of the things that happened in the craziness of the last few weeks, a phenomenon that started last year. a divergence where credit starts this year credit has

already started. >> let's show everyone what you are talking about. we chose to illustrate it with the hyg, giving us a proxy for the price at which credit is trading, like the s&p 500. that we wroteace was like -- look, if you want to invest in a market that's distressed in illiquid, credit is the one that is in trouble right now. marketrts of the credit have been particularly bad. at, we have been looking the mobile securities market, you know about this, the toxic cm bs the blue of the world -- what a different world right now. a world where underwriting standards are better. these are structured securities, so on a structured basis you are much higher up in the cap structure than five or 10 years ago. and yet, yet these assets are trading on a relative basis.

back in the precrisis time they would trade at 50 basis times with investment grade. [applause] ashwin: i think that part of this is that people are reluctant to own these assets. there is something unusual happening in beijing today, the ringing of the opening bell at the new york stock exchange is in beijing because of singles they being celebrated here by the alibaba group executive, chairman jack markel. how does this work? is this part of the deal to get them listed on the stock exchange? stephanie: listen, if you are tom farley, you take any excuse to go visit. nok: as you guys know, i'm great fan of the opening bell, the reason i wanted to mention it is because it is unusual and our own emily chang is interviewing jack ma today and

we want you to watch that interview. get back: we've got to to this conversation for just one minute. when you say that things are relatively liquid, put that in perspective. classes, cmss asset bs does not seem liquid at all. no, it's not, and is a little this scary when it happens, you have to trade differently, effectively. i started here 20 years ago. high trade with somewhere in the middle getting lost the taking of risk, but the new paradigm of looks a lot like the old one, we will go back to those days again because banks will start being thanks again. something you have to get used to. the good news is that there is one player, one pool of capital, which means step act. which is great for return guys like us. we want this to happen, but it's

the getting there that will be painful. stephanie: in the meantime are you on the sidelines? is nott asset repricing good for you. be careful have to about what you buy and what you don't buy. look, there are times where we aren't involved. we look the other way with other assets to look at. now, for example, like i said before, the distressed market is . -- is interesting to us there are parts of the commercial mortgage-backed security market that are interesting. by mandate we don't have to be involved. we don't have to do a particular thing and i think that that's were the power of the franchise lies. peopleie: six months ago talked about being excited about energy and they got killed. any view on an energy asset is an indirect view of oil prices. stephanie: has to be. we try one of the things to do is have energy exposure

that's independent of oil price. there are other things to look at. it's not a particular sector. its assets. you know how this works. liquid stuff gets sold before the illiquid stuff. it's exciting but it sinks in if you are the safe liquid stuff you go you can't believe that you're the guy getting whacked if you're the good guy and the move -- in the room. nobody in the business can call the absolute bottom. if they claim that can, they are fabricating. david: there must be buying opportunities, they are selling things -- how do you identify the ones that are good purchases? ashwin: that's all we do for living. given what's happening with the banks and the credit markets in general, companies that don't need big access to capital markets in the short to medium term, there is a special source

and that's one thing you have to pay attention to. is this divergence between credit and equity going to persist or is it a temporary phenomenon? look, it has persisted to, and these are not great examples but if you go back in history to when these things happen, most recently in 2007, they made new highs in february with credits selling off and a new high in october, but then bad things happen in every thing falls apart. we are in the need of re-lever and the end of the credit cycle part of the trade. let me copy out that. i don't know how long this will last and i don't think that anyone else does either. in 1998 it lasted for years. stephanie: what does a rate hike mean to you? ashwin: in december? that's done, from our perspective. it's going to happen. the real risk is what happens after that, right?

the fed told us in september that they were going to raise rates 100 basis points in 2016. the market in its wisdom said no, you will raise rates 50 basis points. that's where the real tussle will happen. i will tell you why. in 2004, we got it right. we got it right by saying that i'm going to raise you 25 basis points every six weeks. in 1994 we didn't get it so right. we bailed out mexico and orange county. erik: interior the economy is chugging along at a speed adequate enough to create inflationary pressure, that signals a healthy environment for corporate. ashwin: yes. erik: unless you hit a refinancing wall. ashwin: if you are a company that needs access on a repeated

basis, the cost of the credit has just gone up and continues to. the second, i think, is the worst or best-kept secret about u.s. asset markets, we can -- we care a lot about what the short-term rates are doing. we will run our models and we will look at where the pe should be based on the notice, but we did to work a long time ago showing that the greatest correlation if there is one it all is between valuation multiples and the short rate, which is a little counterintuitive. can i go back for a moment to bank liquidity? stephanie: please, yes. ashwin: your positions are becoming more illiquid as you get out of the market, so how much of a discount are you finding yourself having to apply to the marks? ashwin: those markets have always been on the less liquid side. we structure our assets like that, our funds like that.

it is less about the drying up. liquidity has dried up in that space. i think what we start to see happen is markets tending to work like this. people with super liquid stuff, the super liquid stuff is interesting to us. in some cases on what we call theer quality assets, distressed. stephanie: specifically you know longer have the sell side taking a position is your -- in your face. they can do that. ashwin: sure, but liquidity is provided by the dealer. what happened is that that prop guy is gone. stephanie: now he works for you. ashwin: he's gone. from a competitive perspective, we feel better and that is a double-edged sword. you get more conservative, you're going to kill liquidity. that's what's happening right now. you see it in every market

across the board. not just us. stephanie: maybe liquidity gets people into markets they should not have been in to begin with? ashwin: fine, then it will take time if there is a paradigm shift. stephanie: we will content -- erik: we will continue in just a moment, but now we need to find out where things stand on the market. ramy: major markets, as you can see, are all up across the board , but in the premarket they are heading higher, giving up some of those gains. 10%, similars up to the dow and nasdaq. china is one factor i want to talk about despite production numbers out of the country positive data showed retail was an expected to a more consumer-oriented economy where beijing said they wanted to achieve, but not the worst performer, which is macy's, they

posted third-quarter sales that missed estimates. look at that, down more than 10% . the reason for this is because of unseasonably warm weather hurting the demand of their fall goods. moving along to the pharma world, allergan is up about one third of 1%. ceo is because the pfizer ian reid may yield the top job to brent saunders if the drug giants can agree on merger terms. that is it they don't split into separate units. aree more mature jugs nearing the end of their patents. alibaba is what we have been talking about all morning. this is after they made a singles they sales record with half a day left to go in china. by 4:30 p.m., the number was approaching $11 billion.

he could move it to london or new york in the future and try to tap personalities like he did in beijing. let's go straight to abigail with a look at the notable movers. abigail: horizon pharma, shares they saidng after that they were dropping lyndon care from their network, saying that lyndon is mainly dispensing drugs from horizon. they are also suing horizon for $140 million, with the spokesman saying that they refused to honor certain contractual obligations as they refused to cover the money rightfully due to clients. but in a statement they said that lyndon care being a captive of pharma is false. but nonetheless it's been a tough second half for them as these shares are off significantly amid scrutiny of the use of specialty pharma drug pricing exacerbated by what an

calling the value situation from the record high in july. david? david: we are moments away from the alibaba group interview with jack ma. he had a great day last night, but so did i. victoria's secret fashion show, including trevor noah, those girls are good-looking. thena gomez performed over weekend. they do this why? to get people and up for the holiday season. i promise you. amped up,e pretty without a doubt. i know we have to go to break, but really quick, have you seen the board of the day? .t's a thomas jefferson "i like the dream of the future better than the history of the past." the worst investment advice

ever, ever. for you investors, care about the history, not your dreams. david: by the way, he went broke. not a good investor. stephanie: there you go. architect, maybe. we will be right back. ♪

welcome back to "bloomberg " and we have a big day tomorrow, stephanie. businessmen, investor, flipped of us, with us here. big day. yesterday, i sat down with brian moynihan. i asked him how often he experiences someone trying to hack into bank of america. hit on occasion. in terms of the indictment things, one of the things i see going forward, david, is the institutionsetween

and government continuing to move forward so that we can find the people are not good people and take care of them. this is a worldwide problem because it knows no battery -- no boundaries. like anything else, it's easy to -- like the difference in first -- in physical space, the number of people they can be moved can be done from anywhere. david: bank of america has a particular position to have unique insight into the economy. where do you think we are right >>'s been very interesting to watch the september to october term. in the third quarter what happened in july and august was pretty strong on consumer spending, slowing down largely because of what was going on in the world. october is probably one of the

strongest months of this year relative to october of last year. from low gas prices, people are spending that money, probably near 5%, near 4% without that. it is a strong economy. with athat translated consistent move from the consumer to spend with unemployment levels down. -- what doestion is we pay attention to? about construction? i know you had a fair amount of participation in investing. brian: housing starts have bounced around and disappointed some people, but the reality is that things are up year-over-year. housing is constructive and multifamily is still strong. we expect that. that is also creating job development. projects cannot be imported. you have to build the house to encourage it.

just people borrowing home-equity loans, starting to put on a new roof, a new air-conditioning system, plus the new housing building with a stronger base for construction. which is good. david: these were good numbers, but in the short-term the market has reacted in a sketchy way. brian: i'm a -- never pay attention to the market. they react week, then strong, but what that showed was the underlying strength of job formation, which is critical. , for a lotight on 5% of our lifetime that was unbelievable and now we are saying it might go far below that? people read that, so the market has the probability of its judgment of a fed rate rise and the minute some other news comes where they say there might

be things in the economy not aowing so fast, you pull back little bit. the important thing is that the economy is growing, which is critical to the rest of the world, as we do a lot in the world and it depends on us being strong. david: there's been speculation on a rate hike in december. if that happened, what would it do to bank of america's business? it's 4.5sically, billion round numbers for every increase in the rate rise. when it's always a zero interest hitting a floor with loan prices going up, it's a good thing for banking. this is been a tough environment. said, we have repositioned the company and rebuild the earnings stream with

a simpler, more straightforward , which paid $4 billion plus in the last quarter. so, that came from i sit down with brian moynihan, but i want to go something you were talking about, ashwin bulchandani. when you talk about a risk facing us out there, i'm hearing more the risk of germanic or a abrupt rate hike. what he actually said was that if there is a rapid rate hike there is a concern that inflation might start to take off and the fed would have to jump in more aggressively. how concerned are you about that? i am concerned about a rate hike, but there are two things that concern me between market expectations, the rate hike and the fed. the other is if you go back and look at the inflation numbers, cbi was last printed at 1.9% year-over-year.

the headline was flat because oil has done what it's done and energy has done what it. simple math says that if energy stays here, that will go up to a core number that is pretty healthy. 1.9% is nothing to scoff at and that's coming from services and from rent. there is some underlying inflation force in this country that we have been waiting for for six years. yes, it is a concern, but it largely boils down to the fed and their message. they know and we know that it's a pretty big deal for rates to go from zero to one. zero to 25? not so much. david: is the fed trying to avoid 1998? exactly. aey are also trying to avoid 2004 type scenario. it's a delicate balance. this is a new fad that they need to figure out, message a little better.

david: will be talking to ashwin bulchandani and getting his final thoughts here on "bloomberg ." ♪

welcome back. you are watching "bloomberg ." before we get back to ashwin bulchandani, let's talk about alibaba. erik: we have been talking about singles they all a long and how they have smashed the singles day sales record in excess of $13 billion. but it doesn't matter. it doesn't matter if jack ma tomgs the opening bell with farley, it doesn't matter if it's $13 billion. the investor community, it's a bronx cheer for alibaba right now. as you can see. this stock is coming close, close to, within $10 of its ipo

price. it's fascinating to watch the hype, right? train out of this vessel. remember, alibaba ipo day was one of the most exciting days you seen on the stock exchange since i don't know when. the fact that we are seeing no result, what does that tell you about the broader markets? is the enthusiasm and momentum gone? question that we are all grappling with right now. we are going to raise rates at its having an effect on our markets, the doj will also factor in and raise rates. stephanie: thank you so much, ashwin bulchandani. that does it for us ♪. we will see you tomorrow. ♪

betty: welcome to bloomberg markets. alibaba saying singles day has eclipsed last year's record.

we will go to emily chang in with jack ma for the latest. emily: thank you so much. i also want to welcome our listeners on bloomberg radio. jack ma, great to see you again, thanks for doing this. you blew through last year singles record in half the time but i'm curious, how does this compare to a typical day at alibaba? jack: compared to the typical day? are looking at 13.6 billion right now, what does it look like on an average wednesday? jack: nominally, we have close to one billion something. maybe a little more. this thing we have been preparing for more than three months, preparing for the supply, the buyers, promotions. a lot of things.