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 are still going to be higher today and higher

during the week on average is. they are still hanging on to the. -- on to that. mario draghi talked about more stimulus to do what is necessary in the ecb to promote inflation rapidly, in the words of draghi. performer, the best i mean, the dow was the best performer of the three. specifically, we saw a nike and united health. ite was bouncing back and would potentially be pulling back from the exposure of the affordable care act. united health care saw shares dropped sharply. they saw this as a buying opportunity and nike announcing 2-for-1 stock split in a buyback authorization. these are hoping to get the dow

higher today. earlier today, this crossed over into a very early gain and now it is in a very small decline. we will see how that goes into the closing bell today. betty: you are seeing a retailers higher on earnings? yes, but today, it seems as though the glass is more half full than half empty. if you like at some of these retailers and where they are trading today, there they are, abercrombie & fitch is a real out performer. in hibbett sports is raising its full-year earnings forecast. company's performance is doing well, but that is not really the whole story. companies tend to beat estimates. by $25 billion

and we saw a revenue fall by more than $250 billion, so i guess it is better than expected in most cases, and by analysts, but we are looking at year-over-year declines. betty: all right, julie. thank you so much, julie hyman, at our bloomberg market desk. and mark richt and has more on the headlines. mark: thank you, betty. the standoff at a west african hotel is over. the associated press reports at least 27 people are dead after islam extremists stormed a hotel in the molly capital -- the mali capital. france says the number of people who want to join the army has tripled since last friday's terrorist attacks. inquiries through the army website drop -- website increased up to 1500 per day.

the paris attacks have hardened the resolve of the european union members looking to toughen border security, tighten gun laws, and block the flow of funds to extremists groups. they plan to approve policies for collecting and sharing airline passenger information. the 28 nation bloc also includes australia, but it has not agreed on a system of sharing data within its own membership. a man who has been in prison for spying for israel is now a free man. jonathan pollard was released from u.s. prison. wass a free man, but he refused his wish to live freely in israel. you can get more information at our website at bloomberg.com. back to you. betty: mark, thank you. the was mark crumpton at

bloomberg news death. and mario draghi said today that actust ask dac -- must to affect monetary easing. thinking he ism worried about a downside risk. that is, what ever it takes, which means it will push interest rates even more in negative territory. able consider extending its qe, and it said it will act rapidly. dovish than more before. so i think what he is trying to do is try to curtail that downside risk. betty: will the ecb be adding even more stimulus? >> i've been saying it for

months now, they will add more while the fed will raise rates, most probably in december, and what you are going to get is this notion of divergent central banks. betty: now you've got some folks, well, goldman sachs included, saying that they have seen this route before and this global volatility has really taken down emerging markets, and we might actually, by next year, see this happen in goldman sachs, and we could see emerging assets at the bottom, and they are going to start finding their feet. in given this divergence the developing economy, do you believe that? that in certain countries, russia was one, brazil more recently, it did overshoot. an after class for knowledgeable investors who have to be more tactical than they

normally like to be. where we go long-term is really a bigger question, betty. it is a question of whether the global economy is able to hand off to higher growth or alternatively, will we continue to rely on central banks and will we end up with the greater risk of financial instability? that is a critical question and unfortunately, it is one that cannot be answered today, so that is why investors have to be incredibly nimble. that was former pimco ceo mohamed el-erian speaking today. and now i want to bring in carl riccadonna and he is our chief of bloomberg intelligence. carl, it really does look like it shows we are on a path of divergence? carl: yes, all systems are go. i think the fed is moving much more slowly than the. plot had

showed us. they have about 100 basis points tighten for years and it could be as slow as 50 or less, much more slower. it is the u.s.'s willingness to just charge blindly into the night with bank of japan, potentially the chinese central bank, and also the ecb. thet yellen is looking at impact of the dollar on the central european bank. betty: they were saying today all systems are go and it looks like we are going to move off this zero interest rate policy that we have. have very we different varieties from any range of fed speakers. betty: right. carl: yes, and fed chair fisher said, let's just do it. the time is now, the vote of

economy -- the vote of confidence is now, so let's just do it. betty: next week we will have some economic numbers. we have consumer confidence and increasing home sales and other factors. carl: there is really only one data event that could up and the novembert is job reports, so we are looking two weeks ahead. in terms of next week's data, we have some data from october, such as housing data, it has been very volatile for the last several months. we have some data on the trade gap, which should be re-widening again, due to the strong dollar, what the core data released next willon consumer confidence come out on tuesday and then consumer spending on wednesday, and now, this time of year, everything shifts to the focus on the holiday shopping season.

this year, more so than other years, consumer spending is really the sole driver of the economy as we go into the fed liftoff in q4 and the next half of the first year -- the first half of the next year. betty: are we ignoring what seems to be, if you listen therelly to mario draghi, seems to be more of a downside risk of slowing european growth, so are we ignoring that a bit much here? carl: well, the fed liftoff may be just as effective of helping the economy of central europeans as the quantitative easing of the central bank. finally tightening policy and that offers for a stronger dollar and the ecb is easing, so that offers a weaker euro. currencyave weaker boosting exports, manufacturing, the same thing we saw in the '10, and '11.09,

betty: ok, carl riccadonna. thank you so much. coming up, we speak with legendary attorney david boyd. boies,d -- david discussing fantasy football leagues. that in the end of a big market weeks, coming up soon. ♪

betty: good afternoon, and welcome back to "bloomberg markets." i'm betty liu. it is time to look at the business/, and it looks like saudi officials

say that the same software issuesls -- software extend to other cars. the epa is investigating. and tesla is recalling its entire fleet of the sedans. this is after a seatbelt came disconnected. the recall is the largest ever, worldwide.0,000 cars the tesla suv is not affected. and according to people familiar with the matter, jp morgan and other wall street companies are having their loan policy fix salmon. week after the jp morgan audit on corporate lending. you can always get more business news on bloomberg.com. an intense discussion is underway on fantasy for all. they are fighting to stay open

in new york and will square off the state's attorney general next week. draft kings is ready for a fight. earlier today, i sat down with , and hese david boies talked about the fantasy sports fight, as well as the other large case he is on. i think a good compromise is, for example, what the massachusetts attorney general is trying to do. the massachusetts attorney general is looking at this a lot longer than the new york attorney general has been looking at it. he says there are some issues here that needs to be addressed. completely,t agree obviously, on what the massachusetts attorney general wants to do on regulation, but we realize that that is a se nsible way to approach it. betty: let's talk about other situations. you have been on the board of , why don't they just

publish the data a -- board of heranos, so why t don't they just publish the data and make it public? going there are arguments back-and-forth between it and its competitors, and it is being challenged to do things that no other lap company is doing, and theranos is doing that. for example, no other laboratory company submits its tests to the fda, theranos does. clearly ifbut david, they publish quite a bit of it is not enough where the science community is saying that this is pretty outrageous, and if proven true, this would

be enormous? why not just publish this data? david: but it is being published and that is what is frustrating. with all due respect to you in the press, what you do is you see an article in places like "the wall street journal," and you assume that it is true and that becomes your baseline. not the facts. os bumbledhas theran their communications? david: bumbled is what you say in the press. you assume that if a company had company and a- newspaper had a disagreement, the company must have bungled it. i am a great fan of "the wall other journal," newspapers, but they got their facts wrong, they are basing their stories on a whole series of anonymous sources, and these are not just anonymous sources

where you've got an insider whom you are trying to protect, this is where they are sadly competing what competitors have said, and they are refusing to identify who the sources are you they want the readers to know that what they are reporting are simply a tax on theranos by their competitors. betty: ok, but david, could theranos have done a better job, afterwards, in addressing in what they see our completely incorrect accusations? david: right now, the cleveland clinic is doing an analysis, the university of california at san francisco, people are talking to read people are talking all over the country. hospitals, doctors. been in operation in arizona for a year and half. betty: but they stop their

operations, right? i was reading that they don't want to -- david: no, they are continuing to operate right now. what has happened is that there is a of expansion of it, but -- but it ison of it, still going on. the frustrating thing is it that it is very hard for a company to get these facts out there, because people are much more interested in the sensational charges and the negativity than what the actual truth is. betty: that was again, my exclusive inter-do -- exclusive interview today with famed attorney david boies. and market shares of chipotle scarewn after the e. coli expands to more states, including california and right here in new york.

and we are talking about a rally before the close. ♪

betty: welcome back to "bloomberg markets." i am betty liu. it is time now for a look into the options market. senior market correspondent julie hyman is standing more -- standing by on this witching day. julie: yes, witching day. it does sound ominous, and it happens once a month. i spoke with a traitor from alpha shark, and he is joining me out from chicago. jim, it is obviously a witching day. it the volume is down. we are not seeing an indoor mous amount -- an enor

amount of issue here. what is going on here today during witching day? we'll have 3.5 full days next week, and we are not seeing a whole lot in the order flow this week.- we are seeing a pretty choppy day with not a lot of sustained trends in the market. julie: we are also coming to the end of earnings season, and we are not going to have a big catalyst until the fed meeting in december, so do you think that people will be foot -- put on further data trades? we are actually seen the activity across the board's slow down here. but i think that has to do with the fact that we are towards the tail end of the earning cycle. like you said, we are lacking a catalyst, until the fed board meeting in december. time resistance in

the s&p 500 futures here. we haven't been able to break that since the september loads. so there are a lot of different factors contributing to that. i think that i don't really expect a whole lot of movement or break out until we get to that set meeting. -- that fed meeting. julie: there are still a few coming out, palo alto is one of them, and this is what your trade centers on today. the stock has been centered on fading in these reports. right, but it does have a very strong record on earnings day with an average move around 6%, stocks were trading at around 171 today, and give the stock is higher on monday, i would have to roll that target up a little bit. looking at the spread this

wouldg, though spread have a traitor targeting of moving outside that target to about $1.30. we come in onf monday and the stock is higher than the report, i will have to adjust those numbers. it actually has a pretty decent chart given the action. julie: what is your downside risk in this case? we did hear from fireeye recently, in what it called a cyber lull. fireeye, which is a competitor to palo alto, said there hasn't been much demand for its services. right, absolutely, but correlation in the same stocks have been breaking down in these last couple of weeks here. i am not looking at that. i am looking at the historical record of palo alto. that risk is always going to be about $1.30 per share.

i know what my downside is and i know what my upside is. the market is kind of sideways right now. you soall right, thank much. i appreciate it. i am looking at palo alto, and it has been up every single day this week. they you so much, jim, for joining us out from chicago. betty? betty: all right, thank you, julie. the chipotle e. coli problems are expanding into states such as california and new york. they have a burrito of a problem. ♪ ♪

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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. betty: live from bloomberg's world headquarters, you're watching bloomberg markets. mark crumpton has more from the news desk. s president has

convene a meeting to discuss the deadly terror attack. the ap reports at least 27 people were killed when an islamic extremist group with ties to al qaeda stormed a hotel. senators voted to extend the state of emergency for three months. it expands police powers to arrests and searches in specific locations. french police have conducted nearly 800 raids since last week's attack. they say last night alone, police conducted 182 raids. new drugs should not be priced ,ut of reach for patients

according to president obama. he has called for giving medicare legal authority to negotiate prices were high cost specialty drugs. the interim police chief in ferguson, missouri, will leave his post one month earlier than expected. andre anderson submitted his resignation effective december 2. he cited amalie reasons for the early -- family reasons for the early departure. a justicerom department criticized police and court practices in ferguson, for the shooting death of an armed -- unarmed black teenager by a white police officer led to days of rioting and protests. you can get more on these and other breaking stories 24 hours at bloomberg.com. from the first word desk, i'm mark crumpton. abigail.want to go to taking a look at two stocks. i want to start with tesla and the recall.

abigail: shares have been down. they have come back a bit, but that is the reason, the recall of all model s sedan. that is after one customer in europe reported a malfunction potentially with her vehicle in europe. they say it shows the companies they focus on safety. issue here with tesla remains, can this company return to positive pre-cash flow status in 2016? now turning to the stock moving stores has been up after beating third-quarter estimates and boosted the full-year profit outlook. should provet conservatives. it should be noted that growth is slowing and both fiscal year 2016 and 2017.

it is a dilemma faced by many retailers at this time, even on a big rally day. betty: abigail doolittle live. chipotle, those shares are nosediving after the news that three additional states have reported people infected with a strain of e. coli, links to the mexican chain. this is according to the cdc. california, new york, and i lost how -- and ohio join the state. chipotle says they will do deep cleaning and those restaurants, replace the ingredients come and change to prep procedures. here to talk more about this, is greg.erg greg: the stock went up last week when they said they reopened their restaurants in washington and oregon, where they thought the issue originated.

now all of a sudden, more states, new york, california, the stock is getting hit hard. it is not seem like they have moved beyond this, which is not good news. betty: we know it happened -- do we know what happened? they said they sanitized. greg: the feeling was this was contained to the pacific life -- northwest. now out of nowhere, obviously the cdc has been looking at this for some time. the update comes out from new york and california, not behind it yet. they reopened those restaurants in the pacific northwest, but now deep cleaning a whole new set of restaurants. betty: are they closing them? greg: they have not said that, they talked about cleaning. but no plans at this point to close those restaurants. betty: give us the facts. greg: 45 people are sick with this strain of e. coli. 43 specifically linked to a chipotle.

45 people said they ate there before they got sick. cdc says they have the same dna footprint on the strain. they have not been officially linked. betty: has chipotle revealed or talked about the source of all of this? greg: no, the source is not out yet. there is speculation it is produce. the cdc says, menu item, which essentially means the people are saying we ate x. no one knows. betty: some people are pinpointing to their cleaning process, or sourcing? greg: that is the question everyone has. obviously, e. coli outbreak is somewhat common. say, but soon to people are starting to wonder, is it something about the way chipotle does is knows best business -- does business? betty: or if it is a fluke.

greg: it is a deeper problem if it ends up being this is something about the way they source their food. betty: thank you. in a speech in frankfurt this morning, ecb president mario draghi said the central bank will do what it must to raise inflation as quickly as possible. earlier bloomberg's mark barton and i spoke with the founder of gamgo investors. >> they will do whatever they want and the markets will do whatever they want. the point i am making, from 138 on the euro to 106 today, the incremental impact incrementally could go down to present further. a year after it started, or somewhere around 2002, it was down to 88 or 89. the point is, currency has an impact on earnings.

if you are a company in europe that sources all of its goods in local currency and your stock is not moved, those are bargains. mark: give us some margins -- bargains. >> we started a fund in february and raise money there with trading on the new york. what i like is the following -- starting in stockholm, miller, -- millicom is a wireless and cable play in africa. i hope they sell that, reduce their debt, and focus on central and latin america. -- and latin america. secondly i go to a company in denmark called christian hanson, they have terrific products with regards to probiotics. i go to italy for come pare -- compare.

and mark, i am a buyer of rolls-royce. people have stocks for a lot of reasons. 20% on the down 12th. >> that is fantastic. mark: are you buying before or after? >> both. we owned it both management. we expect to do quite well in part because of the growth in commercial aviation at the fact -- ge i have boeing mean doing the engines on a global basis. betty: you mentioned cable and wireless. does this deal with cable and wireless preclude him from going back and doing a deal possibly again with vodafone? : no, because that is a different situation.

they will do clustering and consolidation in central america, latin america, when he picked up in lilac was in chile and puerto rico. at the same time, vodafone and dave should make love together. betty: you think they should go back? mario: they will figure it out. betty: what other aspects are they looking for in europe? owns $13 billion for himself, he is being careful. on the other side, discovery, which he has a fingerprint on bought euro sports, i like that. there is a lot he could look at. his goal is content and distribution. the wake of the terror attacks last friday, you are a buyer of european swords -- stocks.

attackss like fridays in paris, do they deserve you -- deter you as a buyer of european stocks or not? it as we don't look at european stocks, we look at it who has influence over the global marketplace. i took the first flight out of new york after 9/11, that was a terrific buying opportunity. you have to look at what a company does, how do they position themselves, what are the cash flows, and what price am i paying. if the market goes down more than it should, you just say, i want to own it. betty: that was the founder and ceo of gamco investors. much more ahead in the next 20 minutes. mexico's gdp picks up in the third quarter. why are hedge funds so down on the peso? retail stocks are rallying

today, but it has been a rough order. -- quarter. do e-commerce sites deserve the blame? due respect all john kasich joins the program. his super pac is reportedly ready to spend millions in negative advertising against donald trump. that interview at 5:00 p.m. eastern. ♪

betty: good afternoon, and welcome to "bloomberg markets." it is time for the bloomberg business -- business flash, a look at the biggest business stories. is set to raise $100 million in a new round of financing. this is according to the wall street journal saying they were informed by people familiar with the matter.

the company raised capital of the summer, and investors presentations show they generated $339 in the third quarter. goldman sachs says the year of emerging market doldrums are over. they say 2016 could be the year that emerging markets assets hit bottom, and start to turn around. in the last three years, the stocks have trailed market peers by 51%. can always get more business news at bloomberg.com. there is one emerging market -- mexico. expanded at amy faster pace than any economist predicted in the third quarter. they were fueled by domestic consumption. despite the rosy numbers, hedge funds are still shorting the peso. joining us to try to explain this is bloomberg's mexico

chief, carlos rodriguez. and good economic numbers, people want to short the currency, life -- why? carlos: mainly because of the federal reserve. there is a lot of question about what is driving the gdp. this time it is domestic demand. of the the ups and downs mexican economy has to do a lot with how much the u.s. is producing. it is about exports. this time around with oil prices almost at the bottom -- record low for mexico and more than six years, mexico is starting to have a -- their local demand creating goods. when it comes to the peso, the big money is all about the dollar. you see investors all over the world betting that the dollar will be rallying across the board as we move closer to

higher rates. -- thatat are prompting is prompting that the peso will go lower, especially because it is a mostly liquid emerging market currency. betty: that make sense. internally though, what is driving this growth in domestic consumption. carlos: like i said, domestic demand. we are seeing more mexicans go to retailers to buy stuff. the middle class is growing. something are seeing that the mexican government was forecasting is happening. andmiddle class is growing buying more cars, tvs, that is helping retail. retail can increase sales. betty: thank you so much. carlos rodriguez, and mexico

city. -- in mexico city. staying on consumption, but back in the u.s., retail stocks are they up or down? the s&p retailing index has gained 30 -- 23% so far this year. weighted index has tumbled almost 9.2%. it is on track for its worst year since 2008. i want to bring in joe weisenthal, the cohost of "what you miss." joe: a lot of it depends on whether you include amazon or not. amazon is eating everyone's lunch. basically, any index that has amazon and it is doing well. if it is a pure brick and mortar, it is doing badly. when you look at retail cells and companies -- retail sales and companies, if you try to gauge consumers by that, it is

getting difficult. how people shop is changing. betty: it is absolutely changing dramatically. it is not answer the question though, if retail is a buy or not? -- boyd joe: this quarter in retail reminded me of last quarter. member last quarter we had ugly numbers like disney got clobbered. people worry if traditional media will collapse things to new digital. they have held up. after last quarter, people thought maybe it is happening faster, it feels like a lot of the same conversations are happening this time around retail. we all know that e-commerce is growing, it is still pretty small, it has room greg -- room to grow. maybe some of these companies will never thrive in a modern retail area. -

betty: carlos said in mexico people are pocketing some of that gas savings. not only pocketing, but also spending. you are also seeing me, -- you are seeing the economy do a better. -- doing better. joe: the expectation this year, gas will fall in price, we will spend -- it has not been too bad. has been the hero of the economy. has not been absolutely blistering, like a lot of people expected. not terrible -- obviously there was a tailwind, but maybe not as much as people thought. betty: we will get some clues next week with spending numbers. joe, good to see you. today, then his show chairman and chief investment officer at cumberland advisors. he will be on the show. up next, the market close is moments away, a look at how some of the sectors are performing today. ♪

betty: welcome back to "bloomberg markets." markets closed for the week in 10 minutes from now. what a week. stocks on track for the best week in the year. julie has more. julie: before we get to the bond market, i want to mention news that broke a little while ago. supervalu -- the supermarket chain is weighing the sale of save a lot as an alternative to a spinoff. the shares are spiking, up by 4%. getting to the broader markets here, it looks like we are not closing on the highs this session, but coming back from a little bit of a down. it is the so-called witching day. we are seeing volume on the s&p 500 down by 2%.

it will be a last-minute thing as to whether we are going to see the best week of the year were not. -- or not. if you look at the weekly performance of the s&p, i am checking -- and looks like now it is the best week since october night, with a gain of about 3.3%, as we have had this winning week. what has done well? i shall show you on the terminal. in terms of the groups doing well, all of them are up. broad-based gains on the week. consumer discretionary gaming of the most -- gaining the most on retail. industrials are also performing well. even as all of these groups are up, commodities continue to have tonelining town here -- here. crude oil is down 9/10 of 1%. only four sessions the whole month that crude oil has risen

on the day. down for the 5th street -- , they touched the lowest in five years before rebounding. betty: thank you. b&b para on inflation now joins the ranks to stock up on securities set to profit from rising consumer prices. they say the inflation rate underestimates potential for an increase. that is important when you think about the fed and the economy. alexander jointing. -- joins me. >> the funny thing is inflation is not expected to be huge. people are not worried about how much their local cost in two weeks. if you look at the bond market, the estimated inflation that the bond market is pricing in is low.

-- not.6% over 10 years over 10 years, but annually over the next 10 years. it is so low, people are saying it is correlated to oil, it should not be. oil should have no impact on inflation. all of these wall street banks are pointing that out, and they think it could reverse. betty: the bond market investors are pessimistic. pessimistic.y too complacent sounds right. betty: what does that say about the policy? exandra: once the effect of the oil price decline rolls off, you'll get inflation running at 1.8% maybe, that changes the story for the fed. betty: do they worn at all about runaway inflation? alexandra: absolutely not.

no one is worried about that. people are more worried about disinflation. the banks are really just saying that that is not a worry. betty: thank you. for "bloomberg markets." "what you miss" is next. stocks are flirting with the best week of the entire year. have a great weekend. ♪

scarlet: we are moments away from the closing bell. ♪

scarlet: u.s. stocks posting their best weekly gain since october. european government bond yields falling. joe: the question is, what did you miss? shopping holiday season begins, is more trouble ahead? orwell -- or will americans get out and spend? joe: is there more selling ahead, or is it time to buy nike. the paris attacks one week later, our guests says they could send friends -- france into recession. highs inwe made our the first hour, but it has been to lower, we did manage to end the day with gains. it rounded off the best week for the s&p 500 since october. energy stocks falling 1.1%. consumer discretionary where the best performers.