from bloomberg headquarters in new york, good afternoon. i'm david gura. here is what we are watching. how much lower can oil go? scare hurting jubilate. shares down again after the restaurant chain scraps is forecast. a top verizon executive says that they would explore buying the troubled tech company if yahoo! were to put itself up for sale. let's head to the markets desk. after that blockbuster friday we are down across the board looking at the kleins of 1%. but nearssion lows, session lows. take a look at the market year

to date, because the dow turned negative year to date. just holding is had barely above water with 2% gains and the nasdaq up at 7% because ash stocks have led the way far as the big winners of this year. loser is our energy stocks. if you look at the imap for today, you will see industry groups, energy is the big loser of the s&p trade. down 4%. telecom, consumer staples, utilities the only gainers. david: commodities are leaving the selloff? my producer has done something very cool. he put together a few boards -- i'm going to show you the commodity and related stocks moving down because of that commodity.

kicking it off with crude oil. you see it is down 5.5%. really unbelievable. .80 for a barrel of west texas intermediate. unbelievable fall. and chevron down almost 3%. the biggest losers on the dow jones industrial average. net gas has been falling almost as much as crude. down 16%. these are the biggest percentage losers on the s&p today. take a look at copper. freeport matt moran down 6.7%. thanks very much.

let's go to mark crumpton at the news desk. david, thank you. thousands of employees and san bernardino county went back to work this monday. it has been five days since a county restaurant inspector and his wife opened fire on a gathering of coworkers at a holiday party. investigators are still looking into what led i eat farouq and his wife tashfeen malik to shoot his coworkers last wednesday area -- what led site need ook.uq -- syed far americans overwhelmingly 'ssapprove of president obama foreign policy. 61% of americans think it is somewhat likely we will have a terrorist attack in the next few weeks. the u.s. attorney general

loretta lynch announced the civil rights investigation of the chicago police department. attorney general lynch: we will examine policies, practices, and data. at the end of the investigation, we will issue a report of our finding and if we discover unconstitutional findings, we will release them publicly, and we will work with the city to edelman appropriate reforms. mark: the action comes to weeks after the city released video of a chicago police officer shooting a black teenager 16 times. officer jason van dyke has been charged with first-degree murder. forced theemanuel police commissioner to resign. former president jimmy carter has told a georgia congregation his cancer free. mr. carter revealed four months ago melanoma had spread to his brain. the 91-year-old carter has maintained his busy pace,

despite radiation and chemotherapy treatments. you can get more on these and other breaking bloomberg.com stories 24 hours a day at the new bloomberg.com. from the bloomberg first word , i'm mark crumpton. david, back to you. the big story. down the most in seven years today. investors worried that it will carry forward after opec abandoned controlling prices. we have this report from our bureau down in houston. let's go back to that decision much asy in vienna, so it was a decision. this is really every member of opec for himself. give us a sense of what saudi arabia is trying to do here. you lot of people think and read between the lines they are going after shale. the competition with the shale producers in the u.s., and the crazy thing about that is, shale can respond very butkly to price movements,

what might actually be the effect is it will have more effect on other areas around the world where it is more expensive to drill oil. the arctic and the oilsands of canada and offshore. attempt to go after the market share that shale is getting may end up kind of having an effect on many other markets around the world. juergen onad daniel the show friday. we asked what effect this has on u.s. producers. he used the word "devastate." -- ahas had a drum man did dramatic affect and it continues to do so. david w: they are flailing without anything to grab onto. it is hard to compare -- the comparison of the 1980's, the last drop we had 5, 6, 7 years ago? nobody has confidence on really where it is going to go. some try to speculate that by second quarter of next year,

second half of next year it will start to bottom and maybe hover along the bottom and start to go up, but nobody has that granularity. so, the service companies are waiting for what the customers are going to do. we cwt i touching a 36-year low. as you look out again, who knows what is going to happen here -- what are other shocks that could affect oil prices ahead of the next opec meeting in june? the thing.at is you have the june opec meeting as probably one of the biggest points to watch for, but beyond that, just watching to see the -- thats from the u.s. may affect some rigs trying to go back to work and service companies holding off on laying off anymore if they think that for whenpotential

budgets get reset for the new year. other than that you are waiting until june. we have talked in the past about the difficulty opec members have coming to consensus. what that means, and if ability coming to a consensus. are we seeing a reconfiguration of opec's role in the global oil market? think you will always -- as one of your guests said earlier in the day, opec will always command attention. the market will still watch to see what opec does, but it is a question of whether opec is doing things that affect the markets or if other players are affecting the market like what she was doing by cutting back so much. it will always hold attention in the market though. talked aboute not iran.

obviously a player in that meeting last week. depending on what happens with the iranian nuclear deal, sanctions, how variable is that when you look at the market? david w: it definitely is a variable and it's one that will tose output, so it's going have to be something that gets factor in. i think the market is expecting that will happen. dramatically affects oil prices even more, the market share is sort of already baked in with the price of oil. all right, david, thank you. , who coversd wethe the energy market for us, joining us from houston. aaa shares -- cipollini shares down. lowering hiss price target by 200 dollars.

general motors walks away from a deal to sell its appliance business to electrolux. who is waiting in the wings? ♪

david: welcome back to "bloomberg markets." look at theto bloomberg business flash. a new survey finds that economists are slightly less bullish for prospects of

economic growth next year. forecasts are of 2.6% next year, and that is slightly down from the survey in september. they expect the jobs market to continue dropping. the unemployment rate will be down by 2016. the unemployment rate now's dance at five percent. according to data compiled by european targets were at the lowest percentage in seven years. theabout 22% of total. u.s. companies have been the subject of 2 trillion dollars in takeovers this year. the wto in canada and mexico can slap billions of dollars of terex on u.s. goods. thewto has previously found country of origin labeling rules

put canadian livestock at a disadvantage. you can get more news at bloomberg.com. let's get back to the market desk were matt miller has company news. m&a: there's really great news. pep boys looks like it will be the subject of a bidding war. $15.50.ahn offering he already has a 12 percent stake. but bridgestone already offered to buy pep boys back in october for $15 a share. so, it looks like investors are hoping this will continue. up 1.5are trading percent. then there are the staples, office depot combination that had really been pushed for by star board capital. both of those companies talk to the ftc to see if they could get

a deal done. recently we had staples come out and say they are willing to make concessions. it looks like that is in pretty serious jeopardy and as a result, the shares are coming down a. , green mountain getting taken over by a group of companies including mondaleez. keurig a 78% premium to green mountain. just about three dollars shy of that trading now. the interesting thing is the peripheral traits. coke is not moving much, but owns a 70% stake in greenmount. what is the other one? soda stream -- david: beverage technology. matt: that is flying. david: thank you.

chipotle is struggling to damage from an e. coli outbreak at its restaurants. woes are -- their helping other food chains. let me bring in our guest. you had a hold on this company before this happened. you cut your price target by $200. what do you see as the main problems of this company, exclusive of the e. coli scandal that continues? they continue to build new stores, you see those new stores impact sales growth to the tune e.already going into this coli crisis. that's number one. number two, the supply chain, there's been a lot of questions about the supply change -- supply chain, beginning with the pork shortage.

that continues to grow. chipotle has to find additional sources of supply. where that is going to come from. so, you know, down the line, they may have to start farming to secure that kind of supply in the future. this is a company that has put a lot of focus on local supplies. is that starting to change? they are looking at testing the products. what does jubilee have with regard to the supply chain? they have to look at the u.k. and australia. of are also seeing a lot ,ompeting restaurants out there

and they have very high growth rates as well. at the end of the day, they are looking at additional sources. david: you had vegetarians getting sick, so it doesn't seem to be a problem with meat suppliers. i can only imagine the longer the scandal is drawn out, the worse it is for the company. absolutely, we could see another step down in the sales, which is a big concern going forward. the big issue is that most of the food items there are not on the shelf very long. so, the problem occurred and the source of the problem is no longer there. it's probably discarded. you have to go back and find where the source of the problem came from. it's almost impossible. let me ask you to look in

your crystal ball. how do you see the company recovering -- how do you see that in 2016? i think by q4 next year, we should see sales flatten. but it will be a long ride. so we get that visibility to be able to count on it. ,avid: thank you so much, nick joining us from los angeles. really appreciate it. still to come, and ge pulls the plug on a deal with electrolux. what happened? we dive into the details, next. ♪

david: welcome back to "bloomberg markets." electricwith general taking a hit today. they abandoned their planned to sell their plans his business to electrolux. what happened here? this was a deal that was making its way through the courts. what happened today? ge ever don't think anticipated this being such a difficult deal to close. they agree to this more than a

year ago and the doj objected this has to summer. it went to trial this past month. ge could pull out of the deal today if it had not closed. ge did not know where it was going to bend them what the outcome is going to be. for them it made more sense to pull out and get this breakup fee they have asked for. about that, what stands in the way of them getting the breakup fee? print.ell, the fine ge thinks that they should get it. electrolux has said that they will review that. tty confident. ge still want to spin off the appliances component of the company. how big of a setback is it? could end up being a good thing if they get more than the $3.3 billion, when they eventually do sell it. of the feeling seems to be ge will not

have too much of a problem selling it. david: why is the company interested in doing this? ge, this is part of a bigger effort to focus on its industrial manufacturing. they are also getting rid of ge capital, most of it, and really focusing on core industrial businesses. so, for them, this consumer focused business was not as much of a priority for them. when you look at the potential suitors, who stands out? rick: there are a handful of companies, like lg, samsung, asia and companies who may want to increase their presence in the u.s. they make a lot of sense. four ge, the doj objected to electrolux because electrolux has such a significant market share in the u.s. for companies that are smaller, they may not raise the same regulatory hurdles. david: in the end wasn't

antitrust objections that scuttled this or the sense that a better deal could be arranged? rick: probably a little bit of both. i think ge is pretty confident here and investors are pretty confident this will turn out pretty well for them in the end. david: for those who do not know, what is under the aegis of electrolux these days? it's a swedish company. rick: they have brands like frigidaire and aeg. is a realthis setback. they were hoping to expand in the u.s.. they have to pickup the pieces and figure out where to hold from here. david: not a setback for ge, but for electrolux, a bigger one, and what are they going to do as they tried to pick up the pieces? rick: you know, i don't know. they will probably have to try a more organic expansion. david: thanks so much.

still ahead on "bloomberg markets," the commodities route shows no sign of letting up. oil at a six-year low. we break it up by sector, coming up next. ♪ . .

the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. ♪ david: from bloomberg

headquarters in new york, this is "bloomberg markets." mark: san bernardino officials say they will increase security at counter facilities as thousands of employees returned to work today after last week's deadly mass shooting -- increased security at county facilities. >> we want to make sure people understand that our hearts are heavy during this time, but yet, we must move forward, and today, we are opening up san bernardino county that do business. more there will be security guards at the facilities, and they will be armed. u.s. department of homeland security will in the suit a new alert system. secretary johnson says details will be introduced soon. this will be the third terror alert is to put in place by dhhs since the 9/11 attacks -- the third terror alert system to be

put in place by dhhs since the 9/11 attacks. signs are emerging that islamic state may now have money generateseven as isil thousands of dollars a month, the group seems to have troubles financing is ruled over syria and iraq. u.s.-led coalition efforts to cut off financing appear to be working with airstrikes significantly degrading eight's oil refining capacity and its ability to transport oil in tanker convoys. it is december 7, a date which president roosevelt said will live in infamy. japan launched a surprise and devastating attack on the u.s. naval fleet at pearl harbor in hawaii. 2400 americans were killed. more than 3000 people are expected to attend observances

on ap or overlooking the uss arizona memorial. you can get more on these and other breaking stories 24 hours . day at the new bloomberg.com >> commodities markets are closing in new york. let's take a look at some of today's biggest movers. brent tumbled to a six-year low. oil has slumped 40% in 2014, when opec decided to defend market share against u.s. shale producers. gas for immediate delivery in each case tumbled most in three weeks. u.k. is europe's most traded market. in copperpositions futures and options surged in the past five weeks, total bearish wagers doubled last month approaching a record set last month even as prices have dropped more than 10% since then. court steeredme clear of a u.s. politically -- fight on gun

rights. an appeal from puerto rico regarding the island's debt crisis. what is at stake here in this case involving puerto rico? than it's a little more $20 million of that, the debt owed by the public utilities, and the supreme court is going to decide if they can take advantage of a puerto rico law that lets them essentially declare bankruptcy and horse creditors to take less than the full dollar. david: give me a sense of the timing here, why the court decided to do this now.

greg: now is when they got the appeal. the appeal came form -- from puerto rico. this term ends in june, so the court will be able to issue a decision within six months or so. down theurt strikes law, then you know what the answer is. if they uphold the law, there's another argument that bondholders are using the challenges, so it's possible the fight could go on even longer than that. lastly, on this particular case, what is pretty co trying toto ri get, a bit more leverage? greg: practically, yes. if the supreme court says they actually have the ability to force them to accept something through this recovery act, then, yes, they will have even more leverage to negotiate an even tougher deal. david: stay with us. i want to bring in paul, who covers legal issues.

let's talk about the second decision from the court today. walk us through the history of that and what the challenge was. paul: the united states supreme court said there was a constitutional law under the second amendment for people to keep handguns in the home. the questions and then has been how that ruling applies to other kinds of gun control. that ruling clearly struck down an across-the-board ban on handguns in the city. lower federal courts have generally been upholding existing gun-control laws in various jurisdictions and pro-gun rights advocates have been bringing cases to the supreme court and saying, "please take another look at this," because lower courts are basically defying the 2008 ruling. this case from highland park, illinois, is the latest case of that, and the supreme court is basically saying they are going to take a pass one more time,

leaving it in the lower court to let it percolate and not way into the dispute at this time. david: how widespread our bands ans like thisare b you >> there are a number of states and district of columbia that semiautomatic rifles. california bans some types of semiautomatic rifles. even when you have one in place, that does not mean that they are completely unavailable, as we have sadly observed in the san bernadino massacre. david: we have hillary rodham clinton, you wrote a piece about this in october. this is something that congress .et expire a few years back you wrote interestingly about the constitutionality of reinstating a ban like that one. paul: if the supreme court had taken it, this would have then a

venue for the supreme court to say if they are going to expand their ruling on handguns to apply also to a ban on semiautomatic rifles. now, we will just have to wait and see. interestingly, two members of the court -- justices scalia and thomas -- say they are ready right now to decide the issue, and it's very clear they would strike down such a ban on semiautomatic rifles. us a sense of how it is decided what cases the court will weigh in on. paul mentioning scalia and thomas would be interested in taking up a case like this. we really have not had a major gun case in the supreme court since 2010? was heller, and hit of years later they said that ruling applied to citizens aides as well as the district of columbia. since then, the court has repeatedly turned down cases. there's a big issue where lower courts disagreed about if the heller decision applies outside the homes if you have a constitutional right to carry a

firearm with you. for whatever reason, the courts just have not had an appetite to get into the case. takes four justices to agree to view the case. today, it appears that only two, at least publicly, said they wanted to. david: do they explain the rationale? greg: they did. they essentially said they had real questions about if the lower courts are ignoring the heller decision and if the seventh or get in this case it to that confining situation of a handgun in the home. they said, "we need to get in -- thend tell a courts courts that the second amendment is not a second-rate constitutional protection." up with they, i put top the way smith & wesson shares have performed in light of the san bernadino shooting. here we are touching a high we have not seen since 2007, but there is something cyclical the way this plays out in the market.

paul: there's a perverse aspect in the gun market in the united states were even the hint of a debate about stricter gun controls causes at least some gun owners to go back to the buy yet another firearm. that, of course, is good news for firearm manufacturers as well as wholesalers and retailers. as a result, we are seeing that smith & wesson are having strong years, and the firearm marketplace as a whole is healthy, despite the fact sales have been strong for several years now and under normal economic supply and demand circumstances, you would expect the consumer market would be pretty much satiated. you for joining us. coming up in the next 20 minutes of "bloomberg markets," verizon enters the conversation about yahoo!'s future. a top executive said verizon would consider buying the struggling tech company if it comes up for sale.

for years, one of the easiest ways for bond traders to make money was be skeptical on the fed's view on interest rates. those days may be coming to an end. ♪

david: welcome back to "bloomberg markets." time now for some of the biggest business stories in the news right now. foreign investors are pulling their money out of turkey, and record outflows are expected to continue. $7.6 billion in assets includes $1.4 billion in assets alone. among actors threatening turkey

us economy -- war in neighboring syria and russian sanctions. citigroup possible to supply the european just the legal structure of its banking operations would leave and under direct ecb supervision for the first time. this according to people with knowledge of the matter. the new ceo of barclays is considering even deeper cuts at the bank securities unit. people with knowledge of the matter say they are considering reductions that would mean the elimination of another 20% of the unit cost bankers. those cuts would be in addition to an existing program to reduce staff at the investment anchor by 7000 through 2016. you can always get more business news at bloomberg.com. it's go to the market desk where matt miller has the latest. met, transportation? matt: i'm looking at any

companies that need to pay a hefty portion of their revenue and fuel costs doing well today. as an example, airlines. you can see big gains, especially jet, down here, 4%. american airlines of one point 5%. the funny thing is most of these companies say they hedge so that they don't have to pay more for oil and it's expensive, but you would also assume they do not have to pay less when it's cheap, but nonetheless, the market likes it when oil goes down for airlines. also, tesla -- i was just looking into this -- tesla has over 14,000 workers, but they are looking for another 1600 and change. job openings so they are looking , and theyat is in us are almost profitable doing it. you can see tesla right now up about .2%. not really moving the market, but it do want to move out to california and work for the electric carmaker, there is room for you. as far as more of a depressing

story, ever since the tragic events out in california, gun -- or at least investors expect gun sales to rise. this happens every time we have a horrible shooting event. a lot of customers are expected they willrs to think be new gun regulations -- obviously, there should be. as a result, we have to rush out and buy guns now. typically, you do see sales spike. however, historically, you have not seen a lot of extra regulation. all that worry for nothing. that -- i just don't understand this, you know? if you think there's going to be more gun regulations coming soon, you have to run out and buy your ar-15 straightaway. it happens over and over again, so investors are right to pile into these stocks when these occur, but i just would not feel right doing it. i do not know if that is an unnecessary editorial on my part.

it.d: well, you have aired an investor conference today in new york, verizon's chief investment officer says the ifpany take a look at yahoo! it comes up for sale. joining us now is paul sweeney. the yahoo! board meeting to talk about what happens next. we have not heard the outcome yet. what couldidea happen, what we could learn. paul: there's a couple of scenarios at least initially. one, yahoo! just perceives with their existing plan, which is to pursue a tax-free spinoff of its alibaba state, worth more than $30 billion. the tax-free nature is certainly in question. that is prodding some shareholders to say, "let's think about something different. something different might reselling off the existing core operating business of yahoo!. that is this generates almost $900 billion of ebitda, so it is a very viable ongoing business.

lots of cash fw. presumably, there would be interest out there in the marketplace. david: that is the newest scenario. when did this get advanced? >> when the armrest chose not to pre-approve the tax-free nature, a whole newcted level of risk. perhaps yahoo! should think about spinning out or selling out its core business. david: we had the aol acquisition. you mentioned the ad benefits. what is for rise in trying to do here, become more of a content

provider? paul: i think they are. i think they are looking at online video, principally mobile online video. when they acquired aol last year, they were not really buying the media assets like engadget adn tech crunch. they were buying the aspects.tic i think it will be something similar to the extent they do look at yahoo!. there is a lot of value in yahoo!, a lot of cash flow. there's a big audience that goes to yahoo! finance and yahoo! sports. certainly lots of viable businesses, but i think they are just looking to get greater expertise in online video, mobile video, and verizon did launch their go 90 product about a month ago now, which is an online video service. i think they are looking to make investment, looking to get smarter. yahoo! may be an opportunity for them. david: a search engine cares so

much about patients when it comes to getting search results quickly -- so much about patience. do much more patience investors have with marissa mayer and with the current board structure to get it turned around into something they would act? paul: i think it's very thin. the honeymoon is certainly over with marissa mayer. when she came on board, she did do a lot of very good things. she brought a lot of very good talent. she made yahoo! kind of a hit laced to work again -- kind of a hip place to work again. made some acquisitions, tumblr probably being the most notable. what she did not deliver is revenue growth. ofhave not seen anything out the financial results that would suggest she and her management team have turned things around, so many are saying this may not be fixable.

maybe it is really nothing that can be done, so let's sell off the pieces. david: always great to talk to you. obama callsresident on silicon valley to aid in the fight against terrorism. we bring you that story next.

david: welcome back to "bloomberg markets." last night, president obama called on silicon valley tech companies to join the fight against islamic state. president obama: i have for the departments of state and homeland security to review the visa program under which the

female terrorist in san bernardino originally came to this country. that is why i will urge high-tech and law enforcement leaders to make it harder for terrorists to use technology to escape from justice. david: joining us now to discuss the implications of that is bloomberg editor at large cory johnson, joining us here in new york, here for the week. good to talk to you. when we talk about the industry the rules that president obama is describing, we looking at encryption issues? cory: there are a handful of issues. first of all, silicon valley benefits greatly from the spinning of the u.s. government, so they see the u.s. government as a customer at one level. twoi think that there's ways to look at this. consumerto look at the companies that have products that consumers use and everyone else in the world uses, and you have to have the enterprise

technology sector. while they might a the same things, such as "we don't want to create backdoors," and they have very similar issues like exposing the networks to vulnerabilities -- david: a backdoor is a means by which the government could get an inside look. cory: right, and this was apparently mandated by the supreme court to over time in the prism program, which the nsa is spending $20 million euro on, to get those backdoors into the data. the publication of edward snowden's documents -- i just put it in my twitter account -- showed all of these companies over time succumbing to the pressure from the federal government and nsa to leak their customers' information. silicon valley has reacted completely the other way saying that they are hurting the business and hurting our promises to our customers. the end result is important because when you look at companies, cisco saying sales are dramatically hurt because of nsa problems. c saying theynte

cannot sell secured a product in europe because what is going on with the nsa. american businesses saying these policies by the nsa and the thing requested yesterday by hillary clinton and president obama will hurt their businesses. it's not just about the first .mendment these companies very concerned about what this means for their ability to compete in the global marketplace. the relationship like between washington, d.c., and silicon valley yahoo! ash carter going out there presumably to talk about innovation and how that could benefit the defense department. is there an opportunity to give people in the government an opportunity to talk to executives? comments last night from president obama and from hillary clinton yesterday should be taken in the context of this ongoing discussion that indeed, hillary clinton, when she was

secretary of state, was part of about how much they can give, how much they should have to compromise their system for the benefit of the nsa and cia and throughity to look those documents and systems. silicon valley had the upper hand in the last few months in those conversations, and you have seen a big turnaround with the events in paris and san bernardino that maybe the companies will be shamed into actually opening up their systems. david: she suggested in that speech that elvis like youtube and twitter take down the speech from members of islamic state. thank you so much for joining us. cory johnson from "bloomberg west," and they sure to tune in tonight to "bloomberg west" for a roundtable discussion on virtual reality. ♪

newt's 3:00 p.m. in york. welcome to "bloomberg markets."

from bloomberg world headquarters in new york, good afternoon. here's what we are watching at this hour -- stocks are down to start the week but moving slightly off their lows as energy shares sink the broader market. crude oil touching its lowest level since the financial crisis, dropping below the $38 a barrel mark. opec deciding to abandon its production cap. when is oil going to bottom and recover? it may be game over for the staples-office depot merger. the government moving to stop the deal, saying it would hurt large companies that buy office supplies. anti-competitive. well, we are one hour away from the close of trade on this monday as we kick off the week. abigail doolittle has the latest on this selloff. s