from bloomberg's that quarters in new york, good afternoon. i'm david gura. mario draghi set the stage for the central bank to add more stimulus when it meets in a couple of weeks. he says he is ready to act quickly to boost inflation. will geopolitical risks derail his plan? it doesn't look like anything can stop nike after its most profitable year ever. it announces a 2-for-1 share split and a buyback. but is that a good investment? today, new album drops but it is not available for streaming. can she get people to buy her album the old-fashioned way? julie hyman has the latest. julie: we been stealing -- we have been seeing a rally, and the volatility we've been seeing

lately, volume down great slightly from the 10 day average, down about 1.6% for the s&p 500. it is a witching day, which means the periodic expiration of futures and options contract, which tends to cause more volatility and volume, but there's no sign of that for the moment. major averages are up in the neighborhood of about .5%. that's as we go through the session. i want to return to what's going on outside of oxfam get a look at the bond market. we did here for mario draghi this morning saying once again the ecb will do whatever is necessary to rapidly accelerate inflation. this is not really a new comments, but just serves to emphasize what he has said in the past. we curiously saw yields on the 10 year go lower. one would think they would be moving higher in contrast to what's happening in europe. now we are seeing a bit of a take-up on the 10 year similar trajectory for the two-year today as well. was little changed

to the downside, now it is not changed at all. more notable today is the movement in german sovereign debt on the to your side. we were seeing over the past year a record low yield on that two-year. without only got the mario draghi comments, we also got prices that defined more in october that had been forecast. all of this is having an effect on the hero -- on the euro as well. selloff, 10652 now, down around lows of the session versus the u.s. dollar. david: we are also going to talk about retail. julie: there's been a big bounce back today, and it has to do with some fundamentals. news out from big companies and retail, abercrombie & fitch, the latest results showing the turnaround it has embarked upon is finally starting to take root , up 27% after comparable sales for hollister, up 3% ahead of estimates. 17% after up-to-date

that sporting goods chain raised its forecast for earnings, and this after some news on retail raised concerns about the health of sporting goods. cabela's is higher after we reported the company is considering putting itself up for sale. s pro shop would be one of the buyers. david: that's julie hyman at the news desk. mark crumpton is at the news desk. mark: a deadly standoff in a west african hotel is reportedly over. islamic extremists stormed a razan hotel in mali this morning. least 22, and as many as 27 people have been killed. at least two militants are among the dead, others may have escaped. of theficials say all 170 hostages taken by the attackers have been released. the french senate voted to extend the state of emergency for three months. it expands police powers to carry out arrests and searches,

and allows authorities to forbid the movement of persons of vehicles at specific times and places. in the meantime, french police have conducted nearly 800 raids since last week's attacks. the interior ministry says last line alone, police conducted 182 people andning 17 seizing weapons and drugs. 164 people have been placed under house arrest with new powers permitted under the state of emergency law. another person has died from last week's attacks in paris area that brings the death toll to 130. it's according to the prime minister. he made the announcement today in a speech to the senate, which did extend that state of emergency. hundreds of other people were wounded in the attacks, many of them severely. the obama administration is asking the u.s. supreme court for a speedy decision on its plans to shield millions of immigrants living in the country illegally from deportation.

legal papers are calling for the courts immediate review of the administration's desire to protect as many as 5 million immigrants. the immigrants affected by the plan or mainly the parents of american citizens and lawful permanent residents. the interim police chief in ferguson, missouri will exit one month earlier than expected. andre anderson submitted his resignation effective december 2. he cited family reasons for the early departure. former chief tom jackson resigned in march after a report from the u.s. justice department criticized police and court practices in ferguson. proteste of writing a following the august 2014 shooting death of an unarmed african-american teenager by a white police officer. you can get more on these and other breaking stories, 24 hours a day at the new bloomberg.com. from the bloomberg first word desk, i'm mark crumpton. europe, ecbg to president mario draghi said the

settlement will do whatever it takes to raise inflation as quickly as possible. decide the current trajectory of our policy is not sufficient to achieve our objectives, we will do what we must to raise inflation as quickly as possible. our prize stability mandate requires of us. david: the euro beginning into a seven month low against the dollar following his remarks. continued?reefall joining me is against norv it -- jens nordvig. indication that it's all but certain that in two weeks, there will be more. jens: the question is what they do, not whether they do anything at all. what's important is that when they deliver the previous round of easing, they said we have done what we can on interest rates, and now they are opening up the toolbox again and saying maybe -20 basis points is not

the full, and perhaps we can go substantially lower. i think what's going to happen is a cut rates to -30 baseboards and they say that's not even the maximum we can do. you're sort of going to keep their options much more open. that's going to be quite important to the trend of the euro. david: i want to ask you about risk. this past week has brought difficulty from the attacks in paris. since then we've seen discussion about what form europe is going to take in the next few months and years. what effect does that have on the currency? jens: if you look at how risk markets globally have been trading, obviously, we traded down the asian open in the wake of the terrible news we had over the weekend. during the course of the week, we really recovered remarkably. in the context of how the euro was trading, it's the lowest yielding currency, it tends to get weaker when we have relatively favorable risk sentiment globally. that's we've seen this week. in 2016, we had a

diversions and military policy, the fed is preparing to raise interest rates, could happen as soon as next month. the ecb is talking about more stimulus doing the opposite. do you expect that to continue? jens: certainly for the next several months, that will be the main pattern we are seeing. i think it is realistic to forecast the move to parity now because of that diversions, and also because of the risk sentiment not being as negative as it was over the summer. aat made it very hard for trend like that to really play out because we had erratic volatility all the time. there was also repatriation of flow back into the eurozone, not for fundamental reasons, but people just talking about the investment they have elsewhere in brought money back temporarily to europe that's not happening now, and it's the reason why the euro can gradually go down. i think that's way to be the trend for the time being. the question is at some point, are we going to have these events? willis said lift off price, and we look ahead to how far as the fed really going to go?

it's not going to be about liftoff. david: what are you forecasting? december for the rate rise, the pace of that, what do you think it might look like? jens: we had a lot of debate about that. thatnk the most likely is we have a rate rise from the fed in december. and they really don't want to indicate this is something that looks like previous tightening cycles. they want to move away from these quarterly steps. i could easily imagine a situation where they go the first time in december, don't do anything in march, and maybe we have to wait all the way until june before you get a second rate rise. that's going to be a powerful signal that the cycle is very unusual and much lower than anything we've seen before. --id: that's jens durant jens nordvig. the company warns of an even more difficult fourth quarter. -- results televisual story

tell a bigger story about what shoppers wants. argentinians head to the polls to elect a new president. why this vote matters for markets in the region. plus, hundred harrison on his companies -- hunter harrison and whether he is ready to boost his offering. ♪

david: welcome back to "bloomberg markets." and david gura.

a time for the look at the biggest business stories in the news right now. the sugar and corn industry is reached a secret settlement in their billion-dollar battle over sweeteners. both sides announce the confidential deal today. it ends at trial that pitted sugar against high fructose corn syrup. made a false advertising claim, and the corn refiners countersued for $530 million, accusing the sugar industry of making false and misleading statements about their products. tesla motors is recalling its entire fleet of model less bands. -- model s sedans. the recall is the company's largest ever, involving 90,000 cars worldwide. the model x suv is not affected. hackers were able to see debit and credit information from people who dined or shopped at 54 of its hotels. the locations include sheraton, westin, and w locations.

malware was found in retail areas, but not at the front desk, where guests pay for their stays. they say the malware, which has since been removed, affected systems as early as november of 2014. you can always get more business .ews at bloomberg.com julie hyman is a check of some movers. julie: we have a company that helps companies manage web traffic. shares are down 4.5%, cut to sell from neutral over goldman sachs. endless cutting their price target to $52 a share, saying the media delivery revenue for the company will take longer to materialize in 2016, also a couple weeks ago, there were concerns about its clients having their own proprietary systems and it seems as though bellini is concerned about that as well. if industry shares are pulling back today, there is this concern over the treasury issuing new rules on tax and version deals are in the one

that's been getting the most attention has been pfizer and allergan, but see if industries in the process of buying operations from a dutch fertilizer maker, oci. there's concerns there as well. sun edison in the news again today, this time it ain't downgraded over jpmorgan. the endless there says the company might still be able to escape its ongoing liquidity prices, likely to avoid bankruptcy. whatever, it's still a fluid and risky situation. the analyst over there says he is deeply disappointed he didn't downgraded ahead of its death spiral. shares are down 86% so far this year. david: julie hyman, thank you. nike and gap have seen big swings today, nike remains a hit with consumers and announced a $12 billion stock buyback, well gap continues to struggle, cutting its annual forecast amid banjog sales grid shelly

is here, you were writing a bit about both of these companies. let's start with nike. you were suggesting this may not of been the best decision for the company to make. they could have acquired one of their competitors like lululemon. is nearnike stock all-time highs. it's a 30% so far this year. it's basically buying back stock at more expensive levels than they could just by lululemon. david: what accounts for nike strength. ? there's a crossover between casual wear and athletic wear, with nike? shelly: nike's odd taher, and that's exactly it. as the rest of the world is catching up to this whole concept, nike has already been there. ,avid: let's talk about gap company that's been struggling for a while. what accounts for that? is it what they are selling, or something more? shelly: it's looking at the difference between how old navy is doing to banana republic. it

shows a bifurcation of the market, we have people looking for cheap stuff that old navy and more expensive stuff at higher-end retail stores. you have brands like banana republic in between, that middle market that no one is really shopping for anymore. david: you did have some success, the lower end of that with old navy, it's head of that part of company just left for ralph lauren. how hard will it be for them to replace them? shelly: banana republic's creative director also left, and she was the one who was supposed to turn it around. changes,of personnel fairly new ceo, they really have to get their leadership back together before they're going to be able to turn around the company. can a how quickly retailer like banana republic or gap is able to turn it around? if they reengineer the project make it different, can they do that quickly? will it take some time? time.: it does take some

we heard the gap ceo say just wait till the spring, that's when everything new comes about. you have to wonder our consumers really going to wait? david: what really surprises me is a bad third quarter, a forecast for about fourth quarter in which there are many major holidays, it seems so counterintuitive that things will be worse in the fourth quarter than the third. shelly: the saying is never bet against the american consumer, they will go out and shop. they'res are worried, going to set guidance saying we don't have the fourth quarter is going to go. the most promotional time of the year. you have amazon undercutting everyone, and these retailers need to be able to play in that game. david: is there a retailer like gap that is doing well? one that stands out as being on the ball? shelly: there are a fair amount of retailers that are doing well, mainly t.j. maxx or off-price, where people are going and shopping right now. banjo, if you have

a terminal, you can read her column in others, just use the function gadfly go. still ahead on "bloomberg markets," the argentinian election. who will be the next president, and how we handle the next economic problems? we told about that after the break. ♪

david: welcome back to "bloomberg markets." i'm david gura. we have breaking news, julie hyman is at the breaking news desk. julie: an update on the e. coli situation at aaa. the cdc has an update saying

three additional states have reported people infected with the strain of e. coli that has been linked to chipotle restaurants since the last update. the states affected are sick states -- 6 states. oregon and washington still have the highest concentration of cases, the other states just have one or two cases each. the cdc says epidemiological source isuggests the common ingredient meals served. shares taking a tumble, down 5%. they have recovered since first reporting there was in the e. coli linked illness at one of the restaurants. originally it was indeed in the pacific northwest. we've seen shares pull back about 9% overall during the month of november, since this problem was first reported. we will bring you any updates or commentary from the company as soon as we get it. david: that's julie hyman at the

markets desk with breaking news. the people of argentina go back to the polls on sunday to choose between two candidates in a runoff election for president. plan to resolve the long-standing dispute with creditors. katia porzecanski is here. the focus is here on change. what is that change going to look like? runner -- or he was the front runner in the first round, he is the party candidate promising more of a gradual change. to benot saying i'm going doing anything overnight that is going to shock anybody. he is promising a lot of the things that were some of the aspects of the current presidency. he says he's not going to roll back subsidies on utilities and energy, which i lived in buenos aires, i played -- i paid five

dollars a month for electricity. those things that really contributing to the huge budget deficit, he saying he is going to change those. the market candidate is the allidate that is close to the investors here in new york and around the world. he says i'm going to do everything you want me to do. and that includes lifting capital controls, which is really stifle that economy. if you think about it, capital controls means not only is a everyday folksat can buy dollars, but that means that companies can't repatriate their money, they can't send away dividends, at least large quantities of that, importers can't bring in supplies. that creates a supply chain backup. he said he will unwind a lot of those things. and that will create, or could potentially create an overnight if you do doubt his right away, that could impact people much more

suddenly, but in the long-term, for the best. david: if we go back four weeks, the polling was wrong. there has been polling -- how much credence should we put into that? i think it would behoove everyone to take the polls with a grain of salt, but they don't. shares on the rebel and extra up 25% since the first round, and bonds are up 5%. everyone is basically saying he's going to win because the polls are now saying he was going to lose, to saying he's going to win in the second round. we've seen polling data be wrong around the world. year, if yout would bet on the polls, you will have bet wrong. i hope there are no regrets here, but what you going to do, not look at polls? david: i'm wondering what this

means, this 12 year dynasty really, and what it means for the region in particular? they've been very supportive of a leftist bloc in south america. that: it is part of leftist bloc, there is going to be pressure on the next president to reintegrate with the rest of the world. argentina has become very isolated from the rest of the world. haven't enabled cap capital markets since they developed in 2001. if they could do that, which requires them to settle with the holdouts, these are folks that bondheld that defaulted debt since 2001, they could bring in a tremendous amount of money and really change the face of that country. david: katia porzecanski with bloomberg news. still ahead on "bloomberg markets," australia. ♪

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headquarters in new york, this is "bloomberg market day." i am david gora. -- gura. headlines with mark crumpton. a terrorist attack mali.ed today in the french senate has voted to extend a state of emergency for three months. they will extend police powers to conduct searches. meanwhile, french police have conducted nearly 800 raids since last week's terrorist attacks. last night alone, police

conducted 182 raids containing 72 people and seizing drugs. these are under a powers permitted under the state of emergency laws. a record-breaking month for the republican national committee. million cashas $20 on hand. -- the rncurress chairman rinse peavy us -- rence says -- and hillary clinton leads vermont senator bernie sanders. that is among those who are among registered democrats or those who lean that way. included vice

president joe biden, who decided not to pursue the nomination. hill christmas tree arrived in washington earlier today. the tree came in from over 4000 miles away where it was grown in alaska. the lighting ceremony will take place on december 2. on these andore other breaking stories 24 hours a day at the new bloomberg.com. from the bloomberg news desk, i'm mark crumpton. david, back to you. you.: mark, thank crude is closing lower this week. the sugar and corn industries, as we mentioned, reached an settlement over sweeteners. should be awhat natural sweetener. let's turn to mining now.

australia has transitioned from mining construction to non-mining activity. thering in michael live of national bank of australia -- blive. how has this affected the economy over the last few months? this explains why it mining investments are turning down in australia right now. it is restraining australian incomes. -- justust described ♪ described for us what this looks like. michael: we are all concerned about the fiscal cliff and it is going to take about 3% or 4% out of the australian economy. david: there have been proposals by the federal government, i gather, to put more money in

infrastructure spending. i think as one form of investment turns down, we will a another pick up. we would like to see some government infrastructure come in as well. the new prime minister seems to be on the same wavelength. david: what about the housing market. any signs of growth they're? michael -- growth there. positivethere are signs but also signs of trouble as well. the central bank is concerned about the rapid growth in house prices. david: we were talking about the mining sector. i know that natural gas is a huge export to the country as well? ishael: in real terms, it

the same amount spent on the apollo moon program. australia will become the biggest exporter of this in the world. and will mean extra income net job losses as we shift to new expectations. coal or coal mixture have jobs that are also very specialized and a lot of people come from new zealand to work on these projects. david: we talked about the relationship tonight between australia and china. spentose who have not that much time in australia, how robust is the economy in australia? focus onwe tend to commodities, but it also includes tourism, and one of our market growing tourism

is when people go on holidays. the service economy is also tied into that china story. david: in 2016, how do you see the economy faring? model -- michael: it will be enough to stabilize the market and it is clearly a long way from the recession that a lot of people have been worried about. david: michael, thank you so much for joining us here today in new york. and pacific railway proposed to competitor no effect southern. norfolk southern consider the $28 billion bid to low. we set out with erik schatzker to find out more. k: was that too low of an offer? model innk that one

one of the other things may be one number, but the message that i have tried to send out yesterday is that we had to talk. right, but you have to make this work for your shareholders as well. i find it hard to see it you could offer much more in cash because you are levering up canadian pacific? >> yeah, but you have to understand potentially the value is it's, and that something that is exciting to us. erik: ok.- exciting enough where you will persuade the shareholders to go along with you? they got to see the promise of this deal, so are we talking about 10% more than what is on the table now? >> erik, i don't want to strap a

number to it. the thing i want to avoid in negotiating is the media or paper. that is not the best place to negotiate. [laughter] >> everybody has a priority>>. priority.ybody has a >> i think, is there room? yes. did we draw a line in the sand? no. did we say, what does it take? no response. of you know, given some their wants, we are happy to sit down with them and we figure there are going to be correspondence saying, let's sit down and talk. : when you say correspondence, how are you planning to communicate with them? >> just through the e-mail. stephanie: what's your background, do you and the ceo know each other? >> no.

we had a quick dinner and i spent two hours with him a few months ago. stephanie: how different is this from other deals? >> i think it is a lot different, i think the culture of the two different companies is a lot different and you know, they've had a lot of turnover at know,p and we think, you it is a nice opportunity for us and our shareholders and the north american net worth as well if the u.s. what are the factors that make you want to make this decision, is it efficiency is, is it network efficiencies, is it tax efficiencies, is it pricing efficiencies? what do you think is the most important and wanting to combine the two? >> if you had to take one out of the list, it is clearly

operational efficiencies and driving shareholder value. we are to some degree an outlier, we see the world a little differently than some rails and i don't what their position is going to be, but i know this. if this can't get approved, i think that we would -- i think that they would be in error. everything that shippers have asked for in the past, we are addressing. weer barriers, bottleneck, are willing to make a more competitive landscape out there. was canadian pacific ceo hunter harrison this morning on bloomberg . coming up in the next few minutes of bloomberg's "markets," we will have the latest from the bloomberg polls. why adele shuns streaming. why she and sony are shunning

the online outlet. that is coming up on the next hour of bloomberg's "markets." ♪ ♪

tesla motors is recalling its entire fleet of model s sedans. they want to check the fleet after a seatbelt became disconnected.

this involves 90,000 cars worldwide. it's a sign that the new "star wars" sequel could become the biggest sequel of all time. the "star wars: the force movie has already taken in $50 million in advance sales. and you can always get more blue -- business news at bloomberg.com. food themei got a here. let's start with chipotle. the centers of disease control said that the e. coli outbreak linked to food at chipotle has now widened and now six states have now been affected total. commons some sort of food item being served at restaurants. when this e. coli outbreak was

first reported just in washington and oregon, there was talk from analysts and investors saying that it seems contained, that perhaps this news now shows that perhaps it is not. fresh food market fresh market sales was down. is on a fiscal basis and it has seen a decline of 2.26%. there are two missing estimates in the traffic for zoe's kitchen, and finally, tyson has a plan that would affect 280 jobs. one would think that might be a good thing, and the shares are down by 1.5%. david: that is julie hyman there at the market desk. and donald trump has taken to

twitter to share his not so happy views on john kasich. now,halperin joins us mark, good to have you here. beefesting to see a between a front runner and a not front runner, john kasich. trump was not going after john kasich, he was going after a lot of other people, but he has turned his attention. kasich made it clear that they were going to try to take down trump. in of the biggest questions politics in the last three or four months is, where would someone put up several million dollars to go after trump? john kasich's campaign know that their man is far behind, so they

are going to be one of the first one to go after him in a big way. million dollars is being targeted in new hampshire and they have made some, shall we say, creative ads in the past. they're are going to go after whether trump is fit to be president, fit to be commander in chief. we will see. you mentioned frank davis, he is a good ad maker with a history of making good ads that not only get attention, but are oversized for a lot more than just $2.5 million, so let's see what they come up with. i think it is going to be heartening for a lot of people in the establishment who say, you know, we like john kasich, and the idea is to stop donald trump. david: let me ask you about the new bloomberg politics poll. mark: hillary clinton has a very

big lead, and that's not surprising, but the national numbers show that in a new hampshire and iowa, sanders is really staking his hopes. but it does reflect what we have thought for a while, they hillary clinton, based on her foreign policy experience, she is still ahead of bernie sanders and former maryland mayor martin o'malley. iss campaign knows that she never going to fall behind him nationally unless he does well in those local places. many people are not willing to entertain bernie sanders, martin o'malley, and they have decided on hillary clinton. thed: -- mark: one of things that she did in that strong debate is that she is there hope. she doesn't want to lose the presidency when republicans are run capitol hill and the supreme

court, so they think she is going to win and they want her to win. even from some of them, they might agree with sanders on some of the issues or a lot of issues, but she is the one that is going to win and she's the one that can take the white house for the democrats. david: based on iowa and new hampshire, based on the results that you look at this poll, are there things in the democratic platform that bernie sanders is known for the people like him for? a capacity to continue to make the case, particularly in domestic and economic issues, in issues of money and politics, which makes her quite formidable against him. , thankall right, mark you very much. that is the manager, mark halperin, of bloomberg politics. you can watch him tonight on "with all due respect" with his

john heilemann tonight. look at howe artists are taking a stand on streaming. ♪

david: welcome back to "bloomberg markets," i am david gura. released her new album, but don't expect to hear it on spotify or other online streaming websites. we're joined from san francisco bible bloomberg editor at large, cory johnson. ask our guest,me how big are these sales projected to be? >> it is unbelievable and it is

great for the music industry. if you look back 15 years ago, it in sync had released 4.2 million records and they buy 2.5 listenership to million records. so when you look, the only place you can push -- can purchase albums, it is making a statement to the industry that physical albums can still be sold. cori, let me just switch over to you and ask you, adele has made a move that taylor swift just made a few months back. i thinki think -- cory: we have a bifurcation of the market, where these artists command different terms in the

way that they sell their products, and they have control over a different set of demands over their fans. they can indeed limit their audiences i saying, i am indeed only going to sell to you in this way, and they can really get away with it. for the rest of the music industry, they are going to have to go where the users are, and increasingly, users are streaming, not where they are going to go out to itunes and buy a song, one at a time. david: marcie, how are companies dealing with that? artists have complained, big artists, small artists, medium artists, is the industry trying to accommodate that at all? marcie: i think they are trying to, but if you look at artists, they are making pennies on the dollar versus three dollars and sometimes upwards of five 's song.for an album you see a dell doing this, but

adele doing this, but there is going to be a halo effect for justin bieber, one direction, and other artists. david: for streaming, that we pay money for nephites, so why is audio legging there? so muchthey having trouble getting this streaming music going? cory: the complaints that artists have are interesting because pandora is a company that has relatively just started and they are paying more in royalties that a lot of their other competitors out there. since the streaming companies, whether it is spotify or pandora, different business models, of course, are paying a lot to the record companies, the record companies are not paying a lot to those artists, so not surprisingly, we are seeing these artists complain about the

streaming process. cory, think you very much, and marcy, thank you very much. that is cory johnson, bloomberg editor at large, and marcie a llen. on monday, we speak with sylvia mathews burwell, secretary of health and human services. that interview is at 2:00 p.m. here in new york. ♪

>> it is 3:00 p.m. in new york, 12:00 noon in san francisco.

welcome to "bloomberg markets." ♪ good afternoon, i am betty liu. from stocks to the fed to the ecb, laying the groundwork for more stimulus. we are going to speak with guests on this. and the e. coli outbreak is tied restaurants in new york and california. about one hour away from the close of trade this friday and andy in the trading week. i want to get to our bloomberg desk where julie hyman has the latest. julie, we did give up some early gains, but we are still higher. julie: yes, we st