from bloomberg world headquarters in new york, good morning, i'm betty liu. the countdown is on. there are just two weeks to go until black friday. after this morning's retail sales report, retailers are going to need all the help they can get this holiday season. women are breaking the glass ceiling on wall street. goldman sachs announcing it is promoting a record number of women to the firm's second-highest rank yesterday, but is that enough? a record-breaking options -- auction season, some of these cells a record amount of art. who bought what, and for how much. we are a half hour into the trading session. we are down again. markets deskhe where julie hyman is breaking some consumer sentiment numbers.

julie: i cannot provide one because we have the retail numbers which was less than estimated and consumer sentiment is better. university of michigan sentiment for november, the preliminary pointg coming in at 93 one, an increase from 90 last month. it is better than the 91.5 that economists anticipated. a bit of a murky picture. consumer sentiment is improving, it does not appear to be coming from retail. like retailers got only a slight build. there has been a lot of talk about building inventories, stockpiles. that is also evidence in that business number. all three of the major averages are now lower. the big story today is retailers. have the overall

retail number and then individual retailers. fossil, a huge tumble, the biggest in three years. after the company's fourth-quarter forecast was below what analysts were anticipating. many,mpany, like so talking about the negative effects of currency. still, you exclude that, fell by 8%. 10% in the americas, 3% in europe. a lot of concerns about its watch business. then there is nordstrom. macy's cannot couple days ago and missed estimates. nordstrom is also in the negative column. down 17%. profits missing analyst estimates, comparable sales missing estimates. maybe the warmer weather is keeping people outside of stores, but that is not the case at nordstrom. they say there is not a seasonal

component to where they have seen transactions slow down. they say the coat business has been strong, so at least for them, it's not the problem. betty: i hate it when retailers blame the weather. they are seeing these problems as we saw with macy's. we will talk more about this in a moment. let's check in on the first word news with vonnie quinn. good morning, the fate of an islamic state extremist dubbed jihadi john is unknown. he was targeted by a us-led airstrike in syria. been seen in numerous videos showing the beheadings of western hostages but it is unclear whether he was actually killed in that airstrike. >> we are still assessing the results of the strike, but the terrorist associated with deaths need to know this, your days are numbered. and you will be defeated.

>> a u.s. official told the associated press that a drone had targeted a vehicle in which he was believed to be traveling. russian news reports say moscow is banning egypt national carrier from flying to russia in the wake of a metrojet plane crash in the sinai peninsula. the band is effective tomorrow. the final seven seconds of the cockpit voice recording will be sent to a country that has the ability to analyze it. the recordings include a last-second noise. country thehich record will be sent to. a meeting could be make or break this week in syria. officials from several countries will try this weekend to decide fighting forces our common enemies, and which can be included in a transition government. failures could be peace efforts in tatters.

austria says it will build a fence on a small stretch of its border with slovenia. they are the latest country to erect a barrier to manage the flow of refugees. they fence over to meals long will be built at the crossing which has been the main entrance for refugees. earlier, austrians voted not to build a 15-mile fence. israeli officials say a palestinian shot and killed two israelis driving into the west bank. a third has been wounded also in the attack. killedstinians have been this year. that is a look at our first word news right now. you can get more on these stories and more at bloomberg.com. betty: thank you. shopping and retailers, u.s. shoppers are skipping trips

to the mall. up less than expected in october. consumers pocketing that money they are saving from lower gas prices. department stores are suffering because of this. saw, look at nordstrom, down 17%. macy's is off 3%. weekss all happening before the start of the holiday shopping season, and then you have is consumer sentiment numbers that are better than estimated, so what are we to do here? for a closer look, let's bring in our retailer analyst shannon pettypiece. >> it looks like 2009 at some of these retailers. you see the consumer is not feeling like 2009 at all. they are feeling good about themselves. here is what we think is happening. consumers are not spending money on clothes, at least not at the higher end spartan stores. we have seen some doing well in clothes.

even nordstrom said that they were selling plenty of coats. shannon: they are just not selling the volume that they would expect. instead, consumers are pocketing that gas money, like you said, but it has been a year, so come on, people, they need to start spending. when they do spend, it is on home improvement, cars. and electronics. cell phones, tablets, tvs, headphones. those are the places where people are spending their money, not clothes. betty: is that bad news for the economy? we are spending money, just not in certain sect errors. like him onseems retailers there will be certain winners and losers. moreems like the mainstream retailers are doing ok. the higher and retailers, they are morey's,

dependent on apparel and more overseas tourists. that is another factor. we look at what is happening overseas. the strength of the dollar means they are not coming over, or they are going to europe instead and asia. betty: what about nordstrom? i remember earlier this week analysts were saying yes on macy's, but nordstrom is different. they have the rack, they have invested in e-commerce. what happened? like analysteems did not want to believe it, but they said that people were just not coming in. tourism, that may be a big element to the business on the west coast. we will have to see what happens over the holidays. jcpenney did well in the third quarter but they did not raise their guidance going forward, even they did with expectations.

maybe they are saying holidays will not be as strong as expected. had federico marchionne talking about what they needed to do going forward. not spending more than what was planned. we are finding efficiencies and will be looking for more next year. betty: it sounds to me ceos like her will need to make sure that they are disciplined. and in purchasing. if they don't get through the holiday merchandise, clearances will be coming. that is what we need to watch for. this holiday season, if things continue on this trend, it could be difficult for some of these retailers. betty: how does this set aside for the black friday holiday? shannon: if you are a big mass retailer, walmart, target, they are thinking the holidays will be ok.

they have toys, which are expected to be big, they also sell electronics, people buying home things. from the ceos i talked to, even those who are just focused on apparel, that consumers are saving money over the holidays. they don't have a lot of extra money, but what they do they want to spend on big events, a celebration for the family. there is a sense that that is maybe what consumers are saving for, and maybe they will go big. betty: thank you for that, shannon pettypiece. much more coming up. we are staying in retail, talking about online grocers and the battle there. is amazon going to come out on top? areercial real estate firms hustling to fill properties in manhattan. how do they plan to fill 10 million square feet of space? goldman sachs is for moaning 106

women to management positions yesterday, the highest number since 1996. more on breaking the glass ceiling, coming up. ♪

betty: good morning and welcome back to bloomberg markets. at some ofto look the biggest business stories in the news right now. mylan failing to attract a majority of perrigo shareholders today. billion takeover

offer to acquire the drugmaker. shareholderso tender their shares, short of the 50% minimum. air france is firing for employees and suspending 11 unders -- others after union protest turned violent. two executives were forced to flee the scene by jumping over a fence after their shirts were ripped off. while some union members condemned the arrest, others call the firings abusive. the father of minnesota's governor and a key figure in building the family's retail business in target has died. bruce dayton helped target to become a national retail chain. he was 97 years old. you can always get more business news at bloomberg.com. let's go to the nasdaq now were abigail doolittle has more on that mylan story.

basically the takeover that was it. >> absolutely correct. first, let's turn to the markets. we are on pace for the fifth down day in a row at the nasdaq. the composite index is down nearly 1%. surging afterre that bid was rejected by perrigo . only 40% of shares were tendered as opposed to the 50% required. this is consistent with what joseph pop-out told us during an interview. he told us he was very confident that shareholders would reject a bid. its price target to $59 on the news and there were some high-profile investors affected, including john paulson. foras been a tough year mylan. shares are on pace for the worst year since 2008. betty: thank you.

we will have more on this story. a health care reporter will be joining us to get more perspective on this. on to banking, women business leaders are continuing to crack the glass ceiling, but somewhat argue there is still a long way to go. goldman sachs just reported -- promoted 425 employees to management positions yesterday, and a quarter of those were women. it is the highest number of title sincehat 1996, when bill clinton was president. does this make the percentage the highest among goldman compared to other banks? >> certainly, it is a record for goldman. , buts been slow progress progress nonetheless. the 25% of managing directors that are women are still less than the overall proportion of the firm in the u.s., about 37% women.

still progress to be made to match the overall workforce. betty: but a step in the right direction. >> certainly. betty: how significant is this for goldman sachs? >> and used to be an annual event, the promotions. they also have what they call partners, which is a select group of managing directors. now they alternate those years. this was a managing director year. it shows a few things about the business. the proportion from trading was way down, investment banking was way up. that matches the business trends we have seen, record m&a year, trading has not been good the past year years. thatu are seeing less of

and more people in the technology area are being promoted. 70% had an engineering role -- 17% had an engineering role. betty: also a sign of the changing times. what about the millennials? >> 30% of these managing directors were millennials. some younger workers getting pushed up the ladder. betty: you wrote a story about this before, how goldman wants to fast-track some of these younger executives. >> they have sped up some of the promotion for the younger workers. they want to make it seem that you can have a career here, not just a new year's before you go to private equity. they wanted from on the idea that you can make it to the top goldman sachs fairly quickly, and we are seeing that with some of them. betty: remind us what happens at that level. >> typically a higher base salary.

it used to be standard across the board but now it is little different. you could make as much as $400,000 on the base salary, and wildly,m bonuses vary which can push it into the millions. it is a more select group every quarter. they have a town hall for the managing directors to talk about the business. there are some perks to it, but it is ultimately on the track to partner. howy: we talk a lot about the talent is leaving wall street and going to tech or wherever else. that one statistic in your story -- 267,000 applicants last year. just last year alone. >> and they took 3% of them. betty: that is incredible. >> certainly a lot of people that want to work in these places. the concern in the industry is over those three or four people

that they see as stars that are not going there anymore. it is very much on the margins but those people are important to them. it is not just about the broad numbers, but who they see as the right people. betty: michael moore, thank you so much. two top asset managers are slashing costs on some of the extreme traded funds, getting us to a new level of fees. explain what this means for your money and your investments. ♪

julie: welcome back. this week, i shares and shrub cut their fees again on their inad market etf to just .03% what many are calling a fee war. for why that may not be the best term for it is eric balchunas. at least not a wholesale the war. explain what is going on. there is someone of a pricing war on etf's. >> that is a fair term but it is not just everywhere. powershares cut down 2.03%. you invest $10,000 into this etf, you get charged three dollars a year in fees. if attracts 2100 stocks. if you divide that, 700 stocks for one dollar. we are closing in on free etf's. schwab, immediately the next day, said we would cut 2.03,

because we are determined to be the cheapest in the space. even though they are in the news, what is hovering over all of this is the vanguard affect. if you look in areas where vanguard does not have an etf, nobody is cutting costs. going on.o fee war julie: even if vanguard is not the cheapest where they operate, they cost pricing pressure. >> correct. vanguard has been in the industry 15 years. category, iter a came in twice as cheap as anybody else. that triggered everyone to say -- i call it the gnashing of teeth. it is like walmart coming to town, everyone has to lower their costs now. vanguard has affected the lowering of that cost. if you take the case of -- talking about small cap, mid cap, large-cap -- there are

micro cap etf's. the cheapest one in the market is 50 basis points. vendor does not have one. julie: that is the non-walmart town. >> another example, sectors. take all 10 sectors, you can get etf's for any sector 12 basis points. fidelity health care is 12 basis biotechbut the cheapest etf is 35 basis rights. because vanguard does not have a biotech etf. materials it is even worse. a materials etf for 12 basis points, but the aboutst gold miner etf is 30 basis points. julie: so if you want to save money, you need to get specific. >> these are generally in core areas. cheapest etfhe

from each area, you are looking at a well diversified portfolio of equities, bonds, reits, international, the whole thing for about nine basis points. so vanguard is in those core areas. it is in the outer niche areas where they are not. julie: how they are making -- how are they making money in these fee wars? vanguard has a different operating structure, so the profits go back to them. that is the reason why they are such a force. betty: thank you, julie hyman. still ahead, it is the hudson yards hustle. our exclusive look at who the international real estate has recruited as their latest tenet. ♪

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from bloomberg world headquarters here in midtown manhattan, you are watching bloomberg television. i'm betty liu.

let's start with the first word news. vonnie quinn has more from our news desk. avoid's -- agse 20 summit, two security force members and seven civilians have died since november 3. hillary clinton is more than halfway home in the democratic race for the presidential nomination. she is supported by a clear majority of 700 insiders who will vote at the party convention. bernie sanders and martin o'malley tomorrow night on cbs. and the white house race among republicans is getting ugly. donald trump has leveled an attack on ben carson. and he calls his backers stupid. mocked carson for 90

minutes. mr. trump: how stupid are the people of iowa? how stupid are the people of the country that believes this trap -- this crap? here is the good news. he is saying all of that stuff happened combined -- happened, because otherwise he is a liar. the iowa caucuses are less than three months away. police are investigating an anonymous online threats made against a college. college. all employees and students were told not to come to campus. is a liberal arts college about 80 miles north of new york city. there are new safety rules for produce. they include making sure that

for workers wash their hands and that animals do not leave droppings and fields. there are also new rules to ensure the safety of imported food for the u.s. market. that is a look at our first word news right now. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. i'm vonnie quinn. betty? betty: the commercial real estate company founded and run dolphin is a project in the west side of manhattan. the latest company to follow coach and l'oreal will be consolidating their headquarters at hudson yards. they will be buying a 40% stake building. the company's ceo said down with me for an exclusive interview.

>> it's a great thing to bring the two offices together because we find the experience in the office really makes a lot and contributes to our work, and secondly, we were looking at a place, a location, a building where we could really design a modern office for the future. that's really hard to do in narrow offices with floor plans, lots of columns, more windows, and so on. there are great options. we have great options. look to midtown, downtown, but hudson yards was the best? >> yes. betty: does that mean you are 100% occupied? now -- on another announced tenant will be at the

building. the peopleounds of becoming part of hudson yards. andave media and consulting coach obviously from the beginning. i think it is going to round out the people we have there and are interacting in going through our retail, living and working in playing, as we like to say, at hudson yards. i think that has been a big part of the attraction for companies coming to hudson yards. originally, we talked about this is about space and deficiency in modern holdings send all of that -- spatial and efficiency and efficiency in and modern buildings. but we have been focused on how do i attract talent? i want to go someplace where i can use real estate as a talent retention and attraction tool. that has been the way we have transformed hudson yards and that is what corporations are

responding to. betty: i have read reports in a believe the result report this summer that once you are occupied are fully occupied, you may consider selling a stake in 10 hudson yards. eff: some of our original investors -- betty: oxford? is going toford stay, too. we are currently in the market. to sell a 40% stake in the building. at 10 hudson yards, yes. betty: looking at the analysis on what you're going to do with the building, what is more unique about being in hudson yards than other buildings? tenants, thee nature of the development, it is the nature of the floor place.

there is also something about being in the city. there will be issues. it just gives us a perspective. wayy: depending on which you are coming from, right? >> it will create a space where our clients are going to want to come. on a related note, the eb five program, i know they have out how this ab should be extended, this access to financing. that is coming up december 11 in congress. this is been a rift. are you open at all to modification of this program? legislation is up for

renewal december 11. there have been a lot of discussions. it has been a very successful program in terms of job creation at no cost to the taxpayers. looking ateople changing whether the should benefit more rural areas versus suburban areas. there is the definition of unemployment zones that it was originally intended to benefit and the question is whether that is to benefit the workers producing the development or actually where the development is located. in our case, many of our workers travel, not just from that area, but to the suburbs and , which haveareas higher levels of unemployment. we were able to take advantage of that to qualify the site, as many other urban locations have been able to do. betty: what about the limits

though? jeff: we think it should still work for urban development. if it does not pass, what happens? jeff: it would be unfortunate for all urban development programs. only one part of urban capital. small piece of that. it has been helpful to get it started. we hope it gets extended and stays in place. bcg managingas guest talkingur about hudson yards. we will take a closer look at the big push to sell online, particularly groceries. also, the fall options season

wraps up. what were the big hits and misses in the art world? plus, the ipo market. why taking it into the unicorn club may have not been the best choice for a start up. ♪

betty: welcome back. this is bloomberg markets. bloomberg business flash. this is about fantasy sports. a the last few moments, lawsuit against the new york attorney general eric schneider man who has banned players in

new york from going on to a site . we will have much more on that story with our sports reporter. in the meantime, in europe, euro area economic growth unexpectedly slow. missedthe 19-nation bloc estimates. it is down from 4/10 of 1%. the data underscores the vulnerability of the region. the european central bank is examining the need for fresh stimulus. and hulu is in talks to add time warner as an investor. a deal that could value the streaming service at more than $5 billion. time warner fell stake could -- time warner's stake could equal those of current investors. stopped at a traffic stop, but no ticket. why is that? there was no driver.

stopped a officer google self driving car. going a road clogging 20 miles an hour. a person is required to sit on the wheel of self driving cars. even if you are not driving them, you can always get more business news at bloomberg.com. to get you caught up on the action around the world -- or want to start in asia where asia and stocks fell. off, but the hang seng really took a beating, down over 2%. one big story out of the region, singapore-listed commodity manolo dropping. itlam and noble.'reporter:

is performance comes on the back of noble's group profits. the commodities rallied from copper to iron ore has commodity and noble --olam slow growth in china has not helped either. they have been the target of short-sellers. both companies trying to regain confidence by implementing new strategy. toty: and we want to head has thehere mark barton latest. sluggish numbers, mark? mark: betty, you said it. it is kind of a downer today. inis the biggest weekly drop two months as well, the week basically being dominated by the fed, china, corporate earnings.

the euro zone recovery is continuing, but it seems like it is striving with the handbrake on, a perfect analogy to what is happening to the eurozone. pesticidethe swiss maker, a big out performer, up by 7%. for the company to be acquired. syngenta earlier this year not really loving the overtures of monsanto, rejecting them. how about the euro, ready? the decline against the dollar because of the eurozone economic data. 95% chance the ecb will cut its deposit rate by 10 basis points in december, and look at the bond market, betty, today. bond yields are falling because of -- i sound like a broken record -- the eurozone data. u.s., portugal the

worst-performing and bond yields for the month. we are still waiting for the president to announce the next were to get his administration. i see you in about 40 minutes. europeane you for the close, mark. mark barton did. abigail doolittle has the latest on cisco, which is also in the red today. right, betty.'s shares are significantly off after they missed revenue themate and guided down second quarter and full year. the company is blaming this on weaker global and economic growth and a strong u.s. dollar. robinson says it is weakness from a macro perspective. they were flat on the year. now they are down 5% and the stock is having his worst day in tw's. cisco fallout -- electronics, the company received at least 5%

of its revenue from cisco. that weakness was not priced into their shares. one saving grace, however, could be the fact that flextronics trades at a discount to its group. they: abigail doolittle at nasdaq. retail sales numbers out this morning, not great. for this coming black friday, one of the biggest players, walmart, is making a big push online. that means selling groceries on the internet, which they have been doing for some time. ourne grocery is a business next guest says is an untapped resource and source of revenue. the platform is helping supermarket chains like fairway compete with amazon, fresh direct, and others. so, how do they? it seems like these spaces getting crowded. guest: they take advantage of the locations and the trust they

have built up with consumers over years. where would i rather order my cut of beef from? amazon or the local grocery i trust? a hugeermarkets have advantage in their location and they need to leverage it to provide local, online delivery or pickup and that is the name of the game. i do not think it will be won by a national amazon -- walmart has that. i think they roll that out a few months ago. -- i think they rolled that out a few months ago. richard: and they are expanding it, as they should. we are behind when it comes to online shopping overseas? industry.t is a huge $630 billion spent on grocery every year. probably the biggest untapped market for growers.

child have to do with griffey in density. one challenge you have as supermarkets, it never makes sense to ship tropicana are juice through ups. it's got to be local. this is a very regional business. it is huge. number 125 does 270 $5 million a year. think about the first 124. very big business. very few are online and they need to be because the customer is comely -- the customer is going somewhere else. betty: what about those that are specialized online questionnaire google. testing google express. i tried my own at home and they do not deliver there yet. not touchoogle does perishables yet. it's very tricky. it can't be out of the freezer very long. you have to temperature control

it. it's a very sophisticated need inside the store. how do you do that sufficiently -- efficiently out of a supermarket? they make picking extremely efficient and easy. google was to be in front of the customer. this is another way to be in front of the customer. it does take expertise and that trust element. about i don't know ordering my art is juice from google yet. i agree with you. richard from store power. still ahead on bloomberg markets, the fall art auctions are in, and the highlights are in. you will be surprised. ♪

back to bloomberg television. i'm betty liu. seasons big fall auction

is wrapping up. the numbers or rent. it brought and 2.3 billion dollars. it is below the record set in the spring. ramy inocencio takes a look at the hits and misses. billion -- $2 billion changing hands. with al season closes record set. chief among them -- this painting sold 40 times its auction-based -- it's auction price from two decades ago. ans egg shaped work by italian artist, sold by billionaire hedge fund manager roye cohen, and lichtenstein's nurse. 'st it was amadeo modigliani

work, a record for the artist, a former taxi driver. these were the best of the best. there were many misses. like this were all that sold for $2 million less than it did two years ago. patrick is again a told me that blue-chip arts it better. >> [indiscernible] they do not want second-best. christie's stands over sotheby's for the most prized pieces, but it is a fierce rattle to tempt sellers to part with their art area -- to part with their art. >> it is a dance to the death. ramy: the seller gets to walk away with a promised payoff, regardless of whether it sells. the other bees got a record --

sotheby's not a record -- got a record sale, but may not recoup that until 2016. another weapon -- curating a sale around a single masterwork. >> it's very clever. they have a special curated option -- auction. ramy: the event was a success, like the case of the modigliani, the worldhe work in to hit nine figures that an auction. >> if you are a seller, so now. ramy: in terms of a bubble, do you think we are in one? ramy is with us. between the two auctions, who won? ramy: that's what everyone is wondering. it turns out that set of these

won, but christie's was not that far behind. at least for sotheby's, they really needed this win. since june their share price has fallen by 37% or so and that is worse than expected earnings. need: so they really did that. thank you. ramy inocencio here at bloomberg. much more ahead including the ipo market. one minute they go public. we are talking loan depo. what happened with this ipo? ♪

betty: it is 11 a.m. in new london, and in midnight in hong kong. welcome to bloomberg markets.

from bloomberg world headquarters here in new york, good morning. i am betty liu. here is what we are watching. the latest chill in the ipo market. what is scaring off companies? then, breaking news. daily fantasy sports leagues fighting afanduel back against the new york attorney general. syngenta, what would be the biggest acquisition ever by a chinese company area we are 90 minutes into the trading session. i want to head to the markets desk where bloomberg's julie hyman has the latest on the averages. they are lower right now, near the bottom. julie: we had worse than

expected economic data on economic sales. producers contracting. we see all major averages continuing the dissent we have seen in recent days. if you take a look at why bloomberg terminal, you will see under the hood, it is more mixed. yieldsies, bond fall. people buying treasuries on that worse than estimated economic data, and there are two groups that are far and away the worst performers. consumer discretionary and technology. we have been talking about what is going on with consumer discretionary. nordstrom's comes out with missed analyst estimates. we saw a sigh of relief. nordstrom's came out with these numbers that missed estimates. fossil plunging after its numbers also missed. seeing weakness in the watch

market and gamestop being downgraded. is it hitting tech? bute: it is hitting tech, it seems more broad-based than that. we have seen cisco itself trade down after its forecast was below what analysts were anticipating. at five networks also lower. networks also lower. they had a meeting yesterday to boost the stock. we are seeing broad-based weakness in technology today. there's is not necessarily a unifying theme there. have been buying this as other retail was week, but that seems to be changing. tact: that correlation in there. thank you, julie. julie hyman at the news desk. courtney donohoe has more from our news desk. courtney?

courtney: secretary of state john kerry says an airstrike targeting a notorious militant is a warning to all militants. attack targeted jihadi john. whether he is killed or not is not known, but kerry says the message is clear. secretary kerry: the terrorists need toed with daish know this. your days are numbered and you will be defeated. the british man has beh seen be heading -- videos victims on released by the islamic state. the kurds have recaptured the city of sinjar. ae kurds say they now control

row that was a key islamic state supply route. police in iraq say at least 21 people died today in a suicide bombing near baghdad. during services for a shiite militiamen. egypt is asking for help in the investigation of a russian airliner crash. he did not say where the recorder will be sent. and tougher standards will give regulators more control over worker processors and sanitation forms and manufacturers. that is our first word news right now. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. from the first word desk, i'm courtney donohoe. betty: thank you so much.

investors looking at that mortgage lender ipo. the company aborted a plan to sell as much as $540 million of shares to the public hours before it was scheduled to set a price. what happened here? alex barinka joins me with the juicy details. what happened? reporter: juicy details. roughly day yesterday. we heard from sources during the day it looked like they were not able to get the share price that they were looking for. we were hearing it would come in estimates.elow was really vying for the tax premium these newer companies had wanted. you should think of me as a tech company. they are a mortgage lender. they have done a lot of things

online and they were kind of vying for that characterization. betty: but what do they do? getrter: they help people their hands on these mortgages. they have broken down the process and they're working in this old school industry and they said, hey, we can do better than the old guys. betty: do they get it from different resources? alex: they get it from different resources. that was kind of the sideline. we see that with a lot of these disruptive companies. and lonedepot being pulled a slow ipo year it raises questions about where we are going to see for the rest of the market and what happens with other tech companies going forward. betty: is this about lonedepot and the space they play in, or is this more about the overall market? alex if you -- alex: if you

look back six months when fitbit went public in june, they had to raise their price range. at prices started trading $12. so, they went out and had a successful ipo. issuing another round of shares, in additional follow-on and investor demand is not there. betty: issued at discount, right? alex: they were trying to sell about 7 million shares. the only ended up selling about 3 million. people just don't want to get their hands on it. six months ago any of these tech companies could go out -- and now you're not seeing it. this: can you blame any of on square and this down round? don't know that you can

necessarily blame it on square. but they are on the roadshow now, expected to price and start treating next week. it will be interesting to see where their shares into pricing. said, the valuation now is lower than what they got in the last private round. it is not quite at the summit of the tech companies out there. thingsll be one of the in this choppy market. that is square -- and the underwriters will have to pay attention. i will have to look to see if this is one of the big tech companies betty:. -- one of the big tech companies. betty: what are you hearing on the roadshow? alex: a company cannot talk right now. they are in a quiet period.

but they are pushing the eighth, we are a tech company message. they are pushing that this is a pain it -- payment processor. but that is the key to why they have this tech premium. they make things really simple. that is kind of what i have been hearing up until yesterday. ok, all right. alex barinka of bloomberg news. much more ahead in the next half hour of bloomberg markets. goes on offense against the attorney general cease and desist order. a disappointment in the need for fresh stimulus. in syngenta rallying after news of a new suitor. this one is out of china, not monsanto. all of that a more coming up on bloomberg news. ♪

betty: good morning. welcome back to bloomberg markets on this friday. time for the bloomberg is no/, a look at the biggest is the stories right now. u.s. retailers up more than forecast in october. the 10th ofcreased a percentage point after being little changed in september. analysts were looking for a gain of 3/10 of 1%. increased. for -- 4 firing employees. according to an internal document, the 4 were fired for

physical aggression. 11 others were suspended for two weeks without pay. lowering the curtain on beats music, joined to migrate users to apple music through this is according to cnet which says that beats will be shuttered at the end of this month. you can always get more business news at bloomberg.com. let's head back to our markets desk where julie hyman is a check on some of the company movers and this rather big selloff we are having. with: yeah, this has to do what you're just talking to alex barinka about. all companies are doing secondary offerings. ipo's.ely recent let's start with shake shack. the company is falling after it registered a share sale. in says it has 5.1 million shares it is registering to

and so another words, when you see these share sales, you tend to have concern about dilution for existing shareholders. shake shack only had about 2 million shares outstanding as of october 30. also, fitbit and other recent ipo's, the company at its lowest share price since the ipo in june. it is down almost 11% today. it says there is not as much demand for its secondary offering. it is only offering 3 million. the number of shares held by existing stockholders remains unchanged. software,ay come $42.15.at you can see that is above where the stock is trading.

julie, thank you. julie hyman at the markets desk. more shakeup in the world of fantasy news. new york attorney general eric schneiderman after fantasy football a kind of game playing issued a cease-and-desist order. here with more, scott shaw here with more, scott. what is fanduel saying? from the otherlk side of the building, drafting says also filed suit. hired not exactly lightweights in the legal industry. their position is daily fantasy sports is legal, that the attorney general has no basis for making that claim.

they want an injunction so their players continue to play and more importantly, their gaming processes do not pull out. -- their payment processes do not pull out. if it is deemed illegal and they do not get an injunction, then the payment processors will have no choice but to stop taking the payment, and that is what they're really afraid of. how big of a market is new york for draft kings and fanduel? 10% are in california. this is a quarter of your revenue, for your business. these are judith stacey can ill afford to lose. betty: it's the number one market then. guest: it's the number one market. that's where the biggest chunk of players are. it would be terrible for them to lose. they want to set the tone, they are fighting back,

but they are also paying back -- pulling back on advertising as well? they are realizing that this was perhaps unwanted attention, that that was maybe one reason why people look so close at the industry. but they are also asking mba partners if they can defer payment. that is probably to pick up a war chest to fight schneiderman. how much of a war chest to they have question mark david boys does not come cheap. ies does not come cheap. guest: these companies do not get along. gives a large equity stake. you would think they would be working together, but not necessarily. betty: two against one. do they have a lot of cash still? guest: we don't know.

they have raised, sure. they both say if they turned off the advertising spigot today, they would become profitable instantly, but how much they have in reserve, we don't know. betty: they are valued at more than a billion still? guest: better than a billion dollars. betty: much more to come on bloomberg television. stimuluso the ecb question. that is coming up in a moment. stay tuned. ♪

betty: it is a $26 billion deal does not going to happen. the shareot get support they needed to acquire para go. p --errigo.

>> they did not get the turnoff, but if this deal was going to fail, it was going to fail spectacularly. this is what they were trying to way. this is a scenario where they voted in a majority of shares, which did not get them at 80%, an to was required for myl take full control. i think shareholders look at that scenario and saw it as too uncertain. understand, a lot of investors play both sides. this is a space where they were probably looking holistically at the outcome and you could not see them getting to 80%. betty: what happens from here then? likely they will be an acquisition mode. throughout the transaction, has said i want to do

deals. i want to build my business. go back toprobably the drawing board and do something more predictable for them. this deal was going aloft tra into the over the counter space. necessarily give them greater negotiating power in generic and branded pharmaceuticals. they will probably look at the generic and rated pharmaceutical space -- betty: that is more in their wheelhouse. this happened during the debacle with swiss mylan. it was looked at as a defensive deal. it's not necessarily a huge to go of events for mylan back to the drawing board and allow them to stay close to home. betty: they can't go back to perrigo for another year? reporter: they can't go back in

a hostile firm. i do not know if they could not go back differently form, but that is so unlikely, at least for the next year. betty: what about takeovers, that whole sentiment out there? reporter: yeah, if this deal had succeeded it would have been a huge rarity. the hostile approach is not really the way to go. brent saunders from allergan has said, we don't want to do the hostile deals. not going to get involved. a lot of executives do not think it is worth the time because there is so much destruction coming in and you lose the management team and the morale is not going to be there. it's not to see we will not see hostile deals and health care, but i think negotiating on a frilly basis is probably more likely to be what we see going forward. betty: is there any possibility side that they just

go it alone? reporter: they are highly reliant on the epipen product and that is likely to see generic challenges next year. beeneneric competition has pushed out. but they are heavily relying on one product and it has grown a lot for the price increases -- betty: and that is so unpopular now. reporter: investors, for a while, have been waiting to see sleep. up mylan's i think it is more likely they will try to use the cash they have to do more deals. there has been pulled back and concern over what is happening with valeant. maybe the size of the deal changes, but i don't think it changes from the perspective of mylan wanting to do something. betty: thank you so much, cynthia koons, our health care

reporter. mark barton is joining me for the next half hour athlete drill -- as we drill down into the most important news. you guys are down, too. mark: i want to congratulate you, betty, because you made it through a week of working with me. betty: what are you talking about? mark: forget battle of the charts. you deserve a prize. maybe we will give you one at the end of the day. there is an unexpected slowdown in the euro area growth. the euro region is being driven by points. so, there is the color. the head of u.k. rates will join us ubs to delve into these numbers, what the fed is going to do next year, and of course what the bank of england is doing. they aretory -- tabling a $42 billion offer.

it will be china's biggest ever acquisition. and who was the inaugural winner of battle of the charts? betty: yours truly. mark: thank you very much. betty: i did. mark: it was nothing to do with the brilliance of the chart. it was to do with the color. betty: yes, which is as good a benchmark. joe is goingssing to have to up his game, betty. it's all happening. battle of the charts, european close is next. stick around, everyone. ♪

betty: welcome back to bloomberg markets. it is 11:30 in new york. markets are finishing the week.

to wrap up trading over the next 30 minutes. mark. mark: after growth on excessively slow to the third quarter, the european close it starts right now. betty: we are taking you from new york to london to beyond in the next half hour. mark, kick things off for us on how the markets are closing. mark: they have dropped over two months. the big reason today is the unexpected slowdown in eurozone growth, .2% slower than the previous quarter, .4%. one bank economists said the zone recovery is continuing but it is like driving with a handbrake on. we have growth, but it is not much. betty: it isn't. after rebuffing most bids from

monsanto, i know you're looking at so junta -- syngenta, at least that stock is up. mark: that is up 5%, europe's best-performing stock. 49 swissfered former francs. that is what monsanto offered earlier this year. monsanto was rejected. would deal goes ahead, it be china's biggest ever external acquisition. what a deal. what a week of deals we have had. oil deal, now we have a pesticides deal. something for everyone. betty: something is in the air. some deals are breaking up, as we just heard with mylan and para go. it is touch and go for some companies. let's check in on bloomberg first word news. courtney donohoe has more from our news desk. courtney: we are getting word from colonel steve born in baghdad that the u.s. is reasonably certain a drone strike killed a british man

whazi.mohammed m. seeing withtant captives in web videos. there is a high degree of certainty that he was killed. the missiles were launched toward the islamic state stronghold in syria. two israelis were fatally shot today while driving in the west bank. an israeli official says the government, a palestinian, got away. 14 israelis and 79 palestinians have died since mid-september random attacks. cross macedonia into serbia. they are seeking new passes across europe as walls are built to block them. iran says it is on the fence about taking part in syrian he stocks that resume tomorrow in vienna.

u.s., russia, the and more than a dozen other countries are looking for a way to end serious civil war. iran participated in an early round of talks. hillary clinton has reportedly more than halfway to clinching the democratic presidential nomination. an associated press survey found she is supported by most of the 700 plus insiders who will vote at the party's convention. mrs. clinton will debate rival bernie sanders and martin o'malley tomorrow night in the clock eastern on cbs. that is our first word news right now. you can get more on these and other breaking stories at the new bloomberg.com. from the bloomberg first word desk, courtney donohoe. betty: i want to get back to europe and its tepid recovery. growth unexpectedly slowed in the fourth quarter and underscores the region's economic vulnerability. as the edb ponders more stimulus, mark, you're breaking down the data for us in germany and france.

level,t the national they matched estimates. on the flipside, the netherlands, italy, and portugal missed. let's bring in john, the head of the u.k. strategy. figure underscore the weakness of the euro zone recovery? john: it does to a degree. it is better than things were a year ago. that is important. there is clearly still a lot of stimulus required, a lot of support required, and much that is not fixed. mark: how worried are you that the deflationary forces are becoming or could become entrenched? that is the fear. john: we know why inflation is so low around the developed world. largely because of the base fx from the fourth quarter of last year, we really need to see away from zero.

it needs to do it soon or the central bank will keep telling us it may well start getting trenched because of expectations. that will affect wages. it becomes a vicious circle. the next 3-6 months are critical. mark: and the next three weeks are critical. december the third is the big one. we having during up for this once is october 22. stick your head on the block. what are we going to get on december the third? easing, almost certainly. the markets are priced for it. if it is not delivered, there will be a violent reaction. we think the edb want to do it. a want to drive home what qe has already achieved which is relatively improved growth performance. they are worried about inflation. 10 basis point cuts in a deposit rate and spending a. period of quantitative easing. you think the sluggish

growth you are seeing in europe and looking at what is going on in china, what kind of percentage do you put on it that it might cause the feds to delay their tightening? john: it is a good question. we still think the fed hikes in december. they certainly seemed determined to do so. is all the signals we are getting from them. certainly, a deterioration in china and all of that brings with it in commodity and energy markets, for example. worsening aerial status from the eurozone could still delay it. there are problems if they delay it because it sent out a sign that they are not confident enough to get going which is what we think they want. it is a low probability, but the markets are nervous. we need to get our first hike out of the way if possible. betty: they are. stan fisher along with several other fed officials try to talk up the rate rise. i want to play that remark from stanley fischer.

>> it is clear that the appreciation of the dollar and the accompanying foreign weakness has been a sizable shock, but the u.s. economy appears to be weathering those shocks reasonably well. notwithstanding the large effects on sectors -- certain sectors of the economy heavily exposed to international trade. monetary policy has played a key role in achieving these outcomes through deferring relative to what was expected a little over a year ago. betty: john, do you think we could see a big shock at all? if we see the dollar surged higher from here? ahn: i don't think that is real concern for the fed at the moment. they have a relative immunity to the dollar strengthening in terms of what it does to imported inflation because so much is denominated in dollars. they probably would want to say so, but they will be worried for the hike spilling over into

disorderly price action in emerging action -- markets. another reason to get it over and done with and see what it does. if it doesn't unleash, we are sanguine about the consequences, and we think the fed will be, too. u.k. --u didn't see the you said it was dovish, didn't you? john: they want clearly -- unprecedentedly -- the three-year horizon, therefore customer or a -- inflation is an overshoot, the biggest in a decade. there are trying to send out a mixed message. mark: the bank of england is 10 plus six? john: we would say exactly that. the third is december, bank of england, six months off. -- the fed is december. fory: acquisition talk

switzerland's syngenta is back in play, this time from china. we will have those details next. ♪

mark: will come back to bloomberg markets. this is the european close. betty: i'm betty liu in new york. mark: let's get to did a developing story right now. 10eloping as we speak, deutsche bank traders are being minute -- charge with manipulating. we just learned and 11 straighter may be charged as early as next week. it is the latest development in the global investigation into interest rate benchmark braking. here with more is suzy ring. well, suzy. first and foremost, who has been charged?

we havee names -- seen these charges, once. mark:, has a thing going on? it has been going on since 2012 and globally since 2008. we are now eight years down the line. one? it goes to trial charges from at couple years ago, it usually takes a couple of years especially since these are based overseas. mark: what does it mean for the front office? suzy: they say there are more charges to come. they have two conviction so far and they're looking to get more. mark: thank you for joining us. you have had it busy day.

this is the stat of the day. banks and other financial institutions have paid $9 billion in fines tied to libor. let's get to other big business stories in the news right now. betty: there's a lot happening. i want to get over to our big business flash for a big business stories today. a key figure in building his hasly's retailing business died. he worked his way up to become president of the families store and his discount offshoot target grew into a national retail chain. he was 97 years old. campbell soup is recalling three and 55,000 cans of spaghettios original in the u.s. due to a possible choking hazard. 335,000 cans. parts of the lining was found in a small number of the cans. campbell says it is food grade and not harmful if swallowed.

mountain view police pulled over a google self driving car that was being tested after the police noted the car going a road clogging 24 miles per hour and realized it was actually a google autonomous vehicle. a person is required to sit behind the wheel of a self driving car. i knew that would happen. you can always get more business news at bloomberg.com. back to some of the other big stories happening in europe, mark syngenta is making headlines with takeover talks. couple ofbeen just a months since that $46 billion offer from monsanto. syngenta is back in the crossers chemchina.y it would be the biggest acquisition ever by a chinese firm. a managing editor for bloomberg news joins us to discuss what is at stake. they have their -- rejected it, haven't they? what happens now?

>> that is the million-dollar question. as we reported yesterday, they made an offer which we see as a starting point according to people familiar with the matter. negotiations are ongoing. we expect to have more clarity in the coming weeks. mark: what is interesting is they tabled 447, monsanto table 447 earlier. is there a price that could be a knockout? ron: the distinct difference is that monsanto was a mix of stock in shares were as china is all caps very back to be appealing to's agenda shareholders -- syngenta shareholders who are anything but happy after they block the monsanto bid because they have not done well since then. betty: kind of rate atari hurdles what i go through? aaron: there will be trust concerns and political issues. when chinese companies to big acquisitions abroad, a lot of

issues get raised in the u.s.. we have seen them get blocked in the past because of those issues. while there is less overlap in terms of antitrust, there could be political backlash. mark: a different chief political executive then the rejection -- the man sent the rejection took place. did that change the dynamic? john ramsey is a provisional ceo. does that make it more likely the deal will happen or less likely? aaron: a fair thing to say is that the designated ceo and chairman at syngenta are under a lot of pressure. shareholders don't like with the stock is doing. out,ve seen in the u.s., dupont, everyone is seeking out deals. there are a lot of dominoes. with chemchina coming out of the blue, it is more exciting. mark: dow chemical, dupont, what is happening? could the sector be a blaze? aron: we saw in pharma, now it

is in chemicals. the question is who takes the first step, who was the trigger and how do they react? the wildcard is chemchina. mark: what is the significance of effect that if this deal goes ahead -- this is what gets me -- it would be the largest ever deal or acquisition by a chinese company. what is the meaning of that? aaron: let's remember that thishina is state owned or is more than just an m&a deal. this is a clinical deal. they want to secure food supply, production. syngenta provides the broadest for the growth. that shows ambition beyond just commodities. they are going to manufacturing, technology, and that is what makes this interesting. mark: we have touched on some of the biggest this week. move to the u.s.. i lookedat my stats, at step go. the s&p 500 is set to end six

consecutive weeks of gain? betty: their steepest loss in six weeks. it has been great for m&a but not great for the equity b ulls in the u.s.. abigail: shares of the nasdaq are trading lower, as well. for the fifth straight day in the rope, the nasdaq composite index is trading down off by 1% today. a big piece of it is retail. the shares are plunging after the watchmaker missed the record estimates and said that fourth-quarter estimates could fall by as much as 60%. to blame could be increasing competition from wearable technology such as iwatch and fitbit, plus slowing for traffic we have been hearing from the likes of macy's and nordstrom. is said that expectations are negative going into the quarter and results are worse. fromook her target to $25

$46. this stock, fossil group, is on pace for a record worst year, down about 70% year to date. the following continues from nordstrom. both shares are down more than 5% today. lemon is on pace for a straight year down. -- third straight year deck. atty: abigail doolittle live the nasdaq. mark, we have your favorite segment coming up. mark: this is it. i have my trophy from yesterday. the inaugural trophy. very excited. this could be yours if you're lucky. joe needs to up his game. prices of everything from gold to copper are getting hammered today. there it is. how low can commodities go? this is what they are fighting for. ♪

betty: you're watching bloomberg markets and the european time for the global battle of the charts where we look at some of the most telling charts of the day and what they mean for investors. joe weisenthal joins us from new york. you are battling for the coffee cup. that mark barton is holding. joe: i want to win. to win, i went to look at portugal. ortiz data is out today. datau can see, portuguese border on quarter fell to 0%. economist were looking for .4%. this is a big disappointment. the other thing that has been going on is political strife, evil are concerned about the stability of the government, whether an elected government will oppose austerity. here we have a chart of german-portugal 10 year spreads. it has been inching up higher, the gap, the price that portugal has to borrow relative to germany is at its highest level

in four months. an uncertain government and weak growth -- it is back to the troubles we have seen in the eurozone. mark: i love your chart. i love the fact that you put in more color because basically, that is why i won yesterday. as of the color. betty: look at you, mark. mark: i have to ask you something. there was a great article on bloomberg today that said portugal-u.s. treasuries and south african sovereign debt are the worst three performing markets over the last month. they are facing different issues, aren't they? joe: what is going on in portugal is a classic eurozone slump. in the u.s., treasuries are weak because people think the economy will pick up with the fed. in portugal, it is about no growth, concerns about whether the government is going to deliver the reforms in austerity that the market expects. mark: you give me color, check out the color i'm going to give you. i double what you do. this is the commodities

spectrum. we were talking about it yesterday. i asked you what would stop the slide in michael's -- in metals? goldman sachs said only eight substantial rise in chinese metal demand will be subsists -- sufficient to balance the copper and aluminum markets. industrial metals are down to their lowest levels in five or six years. as you know, the selloff isn't confined to industrial metal. look at the bloomberg commodity index. its lowest level since 1999. i have normalized all of these lines from 100. commodities from the index, down by 20%. the worst performer's nickel, 30% lower this year. crude is down 34%, gold isn't even on the chart -- crude is on 24%. there is only one commodity that .as risen it is barely up at all, 2.9%. here is the ringer. i have done technical analysis. the 50 day moving average is below the 200 day moving average. that isn't good. what is good -- the commodity

index, it is oversold on the relative strength index. at 29%. as you know, anything below 30 shows that assets is oversold. the question is do we buy commodities? joe: are you calling the bottom? mark: i am not saying a word. betty: i get to call the winner today, right? say, as i really 's skills, heoe gets the win today. he gets the coffee cup because he was really good at walking the board or it sorry, mark. mark: joe, that is the end of the battle, but the war is still on. the war is still on. it has been a pleasure. with hot chocolate, everyone is a winner. bottom,ne is calling a

joe is saying this might remind us of the crisis we saw just a few years ago. mark, where do the european markets close? the ftse, the dax, today has been about the unexpected slowdown in growth in the eurozone giant this week, it has been about the fed, china, corporate earnings. here is what i am watching in the next couple of days. this is what we are looking at in the next couple of days. have a look at what is happening. the g-20 meets in turkey. the g-20 leaders will meet from sunday. the agenda could be overshadowed by the war in syria and the arriving onumanity european shores by a turkey. have a great weekend, see you monday. ♪

>> happy friday. >> welcome to bloomberg markets.

>> from bloomberg world headquarters in new york, good afternoon, i am scottish folk. i am alix steel. here's what we're watching at this hour. consumers giving more money in their pockets. this is a bad to -- sign for the holiday shopping season? scarlett: employees are looking to cash in. alix: never mind el niño. nickel niño could recap making your trip to the grocery store more expensive. first, let's get started on today's markets with julie hyman where she has had a chance to sit through all of the data. julie: