♪ i aman: good morning, renting greeley. dupont and doubt are talking a merger. 's reversal of fortune is a defeat for marissa mayer. they are scrapping their alibaba stake. what does it mean now for that ceo. and media is at a crossroads. greg maffei.to we will head to the markets where matt miller has the latest. has it been a half an hour already? futures were down this morning. but then we saw a turnaround after the opening.

gaining a0 is now little bit. you could call it unchanged. the nasdaq is still down. maybe more interestingly, if you take a look at the bloomberg terminal and use the imap can break down industry groups and see how they are performing relative to each other. gainerssee that the big right now are materials. energy stocks are up right now. a real turnaround from the last couple of days. the losers are i.t. and consumer staples. -- gaining 3.9%. brendan: over the last four or five days, it has been commodities and oil. is there any change to that? matt: yesterday, we saw a little bit of change. oil tanks around 7:00 in the morning yesterday. -- was trading above $40 on friday.

so that had to do with the fact that opec couldn't set a price. now it is up 2%. gold is also rising again today. as a one-month high. a lot of this movement has to do with the weaker dollar. gold is putting up gains and natural gas, yesterday we saw it come down and then didn't really come back up in the same way that oil had. today, it is at 1.25%. we will get inventory numbers out later. -- dropping for a second week even though it remains warm. i want to point out a couple of great stock stories today. kind hader mo-- beenrg down nine days in a row, it is finally trading upan 7% today. oran came outm

today and it is belt-tightening time for these commodity companies. investors seem to think that maybe they hit a bottom and they are ready to go back and buy them. did you like that? there was a pun in there. oil was tanking. brendan: i love that. we are about to get the first word news. david gura: john kerry says the united states will increase the number of money it gives to $860 million by 2020. he also talked about the growing coalition of rich and poor -- and and ambition ambitious global packs for the united states. >> the u.s. has long supported different capabilities. with each of us doing the best

we can. fair to have higher expectations for developed countries and a sliding staying -- a sliding scale for everyone else. we recognize that. the money will be part of a promise to jointly mobile -- the money must first be approved by congress. gunman who attacked the music hall in paris was a 23-year-old from france. he left to syria in 2013. two out of the three attractors -- three attackers kill themselves. target the islamic state -- that is the assessment. russia's fourth syrian president thinks that russia is bombing rebels who want to overthrow him. thean troops are battling taliban in the second largest city. mostly civilians have been

killed. it is the biggest taliban attack since the northern city three months ago. time magazine's person of the year is angela merkel. she beat out seven other finalists, including donald trump and the ceo of bloomberg. that is a pun free look of the first word news. you can get more on the stories at bloomberg.com. . am david gura brendan: we are getting to the big deal news of the day. dow is set to be in merger talks. joining me now is the senior analyst for chemical breakdown. jason, i will start with you. this looks like exactly what they were asking of dupont seven months ago.

he wanted them to break up their units and cost cutting. is there only one logical path? >> you could argue that it is the end of an era of chemicals and conglomerates. what looks like will come out of this are three more chemical firms. you have to remember that there are points involved with doubt. and a hush agreement was about to expire december 13. so activists on both sides of this. they are pressing for something that is very logical. ande are complex companies a little simplicity here offers new opportunities for both. brendan: there was a throwaway point in an article i read this morning that dewpoint anticipates it could spin off some units to get regulatory approval. that does not seem to be as simple as described. what is the attitude of justice right now? towards mergers?

like, forow, it feels us watching, the u.s. is being very aggressive. we have seen a number of challenges, ge-electrolux. notthey say they are changing their tune, it is that the world is changing. when you get to concentrated industries, you have to wonder whether there will be enough competition. to just a few. that is the overview of what is happening right now. on this particular deal, it does look like it is not quite as simple. but it can be achieved. --will see strong overlap in because they would have such a huge -- in seeds. they will have to work closely with regulators in the u.s. to find out how to make this happen. brendan: when you look at what the department of justice wrote

about the t-mobile merger, they said you have to understand mergers. is there a rubric they will be using to look at the deal? yes, they will look at how many cutters there will be. you probably know better than i do. it looks like there will be enough competitors. seeds and the chemicals, there should be enough. >> it is hard to argue that you have too much market power in that space. in seeds, is important to recognize that there are three biotech global companies as it is now. the pioneer serves as a marketing arm now already. that may not change much. so you will put together a chemical and seed business. been talkingave about the logic within this industry.

is this part of a global phenomenon. if there is still growth, it can happen through mergers? jason: yes, it is. -- that company is complex enough and it follows gdp. haven't been many opportunities to find synergies. but this could unlock those. if you are dow, you have a lot of commodity exposure. that is my pun for you today. [laughter] suddenly you have this agriculture opportunity and you have the commodity story that has a huge upside in the dow site recently. but now you are looking at a threat that lets you get away from this. what is this going to do with both companies for innovation? jason: they are very different.

if you look at the innovation index, you look at what you are innovating and what you are , -- it is aont third of that act out. there are not many places -- it looks like these are two anomaly huge companies. but there is a lot less than you would think. will bring dupont the innovation. high-volume commodities. if it is done. this is a proposal. i'm not sure that this is a done deal. there will be regulatory concerns in the u.s. and europe which has a different stamp on these kinds of things. it will be evaluating it differently. that is always the

biggest asked her in all of these. thank you. jason, arriving with a pun, you are awarded extra points. coming up in the next half an hour, we are watching yahoo! abandoning the plan to spin off alibaba. is this the end of the game for marissa mayer's? we will hear more about the internet survival tactics. those stories and much more coming up on bloomberg television. ♪

brendan: welcome back to "bloomberg markets." let's head to market miller -- two matt miller. we have market movers. we have the all carl icahn

stock check. a lot of news is going on today. pep boys has backed carl icahn's proposal to buy it. over bridgestone. carl icahn came out yesterday and said i will pay $15.50. they liked that. he has a massive stake in this company over the last couple of weeks, since november 24. also, in carl icahn news, is is hertz. he has announced that he has upped his stake. logged -- in the company. he is doubling down and he now owns a 14.3% stake in this

company. freeport.s true with he now owns 100 million shares in the company. he is in this stock at an average of $13.57. now it is only trading at $7.41. another loss for carl icahn. he is a long-term investor. a lot of times he looks better in the end than the middle. brendan: here is your challenge. i want a -- pun. yahoo! has scrapped its selloff of an alibaba spin off. yahoo!'s shares are up on the news. the spinoff, assets and liabilities -- they will be transferred to a newly formed company. mercer mayer addressed the

situation on a call this morning. large portion of the market capitalization driven by the alibaba stake, greater transparency to ensure that yahoo!'s business operations are accurately valued. especially as we continue to improve the product and operations. brendan: joining us to break this down is neil doshi. and also cory johnson. the editor at large. you just suffered through the call. what wisdom do you bring? ry: the clearest comment on the call was when ken goldman said this is a near image of what we propose before. spinning off yahoo!, we are spinning off everything else. andaba shares will trade they will have a new company ee?led yip

brendan: i love that. it is a mirror image. before they said they could do something with the rest of this business and now they are saying they cannot do something. what can be done with the assets that we used to call yahoo!? things.few they can go through the turnaround plan. a haven't been successful they haven't been successful thus far. they can try to sell the business. they can try to find someone who would be interested. verizon pretty easy acquire mers. what could an acquirer do? verizon says the emergency should be a content business. at aol, the ad

platform for distributing ads across the web is a gem. yahoo! is a very strong business. they have been caught up in this like -- what are they and who do they want to be? a technology company or content company? this goes all the way back to the 1990's. every single yahoo! ceo has struggled with this. marissa mayer's has done the same. you have everyone on the outside telling them what they should do. but it is a business that is profitable and yet not growing. is it possible now to look back over the last three years and not blame her as a meyer? they have a huge user base. she tried to make out of them and failed. did she have an impossible task? very i think she had a

challenging task and she has done a lot of the right things. they now have global revenues that will be well over $1 billion in terms of the revenue run rate. so she has done significant things to pivot the company. but it hasn't been enough given the changing landscape. pinterest.tter, a lot of these companies have taken off with advertisers and gained traction. it has been challenging given that the user base has been accurate -- has been stagnant. getting challenges advertising dollar went there are other companies with a bigger scale that are taking ad dollars hand over fist. when the reputation of the manager is great, and the repetition of the business is crumbling, that is what will prevail. brendan: will east timor -- of the assets? smaller units like tumbler and

flickr -- can those be spun off? tumblr -- they said it may go down as one of the worst acquisitions. i disagree. but specifically talking about on the conference call, they said it was a long-term investment. if you bought this new unit, is x yahoo!, would you retain marissa mayer? neil: it is hard to tell. if they can show growth entering the business around, maybe there is an opportunity. know, marissa mayer is pregnant with twins. brendan: i can tell you one of percent -- i can tell you 100%

that it changes your family life. cory: i wish her the best. people have gone through executive tortures their as long as there has been yahoo!. people do want it to succeed. and neilcory johnson doshi, thank you both very much. mayer, give me a call. i can walk you through a career with twins but not yahoo!. still ahead on "bloomberg markets," it is more marissa mayer. ♪

brendan: welcome back to "bloomberg markets." i am brendan greeley.

brazil inflation at it more -- let's bring in julia, she covers brazil. an impeachment process is complicated and drawn out. where are we right now? in the process? >> yesterday we had an eventful day impeachment wise. the lower house of voted and selected a committee that will hear the defense. they then decide if it moves forward. the opposition wants the voting -- there was a lot of confusion in the lower house. a couple of hours later, the supreme court said no, we will stop this procedure until we analyzed. so until next wednesday, we are if theiting mode to see supreme court authorizes the proceedings to move forward. or if we need to start over. those houses of

having a lot of of work to do right now. there was an austerity plan, if tax on financial transactions -- has everything else ground to a halt? >> it has, a little bit. changes in thee 2015 fiscal law which the government needed to approve. but other not, most of the fiscal reform and adjustment to get the economy moving again, they are halted because there is too much instability and they are focused on the impeachment to concentrate on getting those things done. brendan: walk me through what markets are seeing right now in brazil. it seems there is uncertainty with the impeachment process. yes, we saw it in last year's elections. a little bit of a rally every time it looked like -- was

slipping in the polls and we have begun to see that again. the president of the lower house said he was moving forward with the impeachment, the -- rallied a lot. we saw that last night when the on against the lower house. so there is a lot to do with getting a new leader or getting the impeachment process out of the way. brendan: thank you so much for the update. still ahead on bloomberg television, i will be sitting down with the central bank of brazil -- to get his thoughts on the impeachment and the conditions within that country. and what the central bank 10 do and what the legislature cannot. ♪

brendan: live from bloomberg world headquarters, you are watching bloomberg television. we will start with the bloomberg first word news. vice president joe biden

says if donald trump wins the republican presidential nomination, he will be easily defeated by hillary clinton. biden says clinton wins and a walk. the have worked through grieving process. what i'veall along said time and again to others -- attrump is headed to israel the end of the month. he will meet with benjamin netanyahu. two lawmakers are demanding that he be barred from entering the country. an extra debate is scheduled in twopresidential battle -- days after the state of the union address and two weeks before the iowa caucuses. the supreme court is hearing arguments day in a major case on affirmative action. the second time justices have looked at how the university --

and could abolish racial preferences in admittance. let expectancy in the u.s. has stalled for the third year in a row. a child born last year can live to 79. not clear why life expectancy has been flattered suicide and fatal drug overdoses are playing a role. flat.e been brendan: the battle between new media and old media is even hotter today. what does this mean for the company run by the king of cable? john malone. stephanie ruhle is here and she has brought with us -- stephanie: i thought greg was the king of all media. brendan: you are the king of all pop. let's start with yahoo! the news of the day.

the idea is to not sell alibaba but sell yahoo! >> i don't think it is the cell, it was to spin alibaba to avoid taxes. brendan: if yahoo! can be acquired, what could the acquiring company do? >> they had a conference call at 9:00, which i did not participate in. i think what they announced or what has been discussed is that they would spin yahoo! rather than spinelli baba away from yahoo! -- spin all the baba away away from! -- alibaba yahoo! that fact alone makes sense because the potential again and potential tax in yahoo! is much smaller than the potential gain and potential tax in alibaba. >> does anybody know what is

inside? from your perspective, someone with a history of great media acquisitions, can you tell us the value there? >> they report publicly on their numbers. they are turned to move away from display advertising t-mobile. have they moved fast enough, are they growing as quickly as other people in the mobile space? >> is it something you could potentially look at? >> it is not front and center for us. brendan: there are two ways to look at yahoo! either a technology company or media company. ursa minor -- marissa mayer tried to bring in -- what is the value of a media company? >> maybe ask michael bloomberg. it is a series of cash flows over time.

that has declined at yahoo! s growthe had les because they've been investing more. stephanie: in terms of the media landscape, what is the most important narrative right now? where is a meyer has tried to give us her narrative -- marissa mayer has tried to give us her narrative. for you, what is most important? greg: i'm not sure it relates to yahoo! we are focused on subscription businesses. those are the businesses liberty understands best weather be serious xm or charter. 15%hanie: you still have a gap between liberty and rius xm.xm -- si

greg: attractor that would xm.or sirius >> it is all about subscription. what happens if you lose your original content? if howard stern leaves, why iheart? turned to m >> there are a lot of reasons rius xm.ubscribe to si they love the ease of use in the car, the lack of commercials. they love exclusive content like howard stern. optimistic.sed and ot of other exclusive content. >> you can't make that much money on the nfl given how strong -- sirius may be your

best acquisition ever. brendan: you created this tracking stock come a prelude to a possible sale of the {. -- the atlanta braves. what is your plan for the team? >> we have no plans to sell. just the creation of the tracking stock will not change the fact that it is an attractive for us to sell that value oftax basis, the the team has grown over time, the value of all baseball teams has grown. of the braves have done a great job with the new stadium and new tv contract. friends ine your atlanta and opportunity to invest in the team. dodgers,e look at the we thought that price paid was crazy. it looks like a steel. we could be saying the same thing about more basketball teams.

is it about media? >> baseball is an entertainment product. has viewers, people who attend, sponsorship. >> but it is one of the sports that has less and less viewers. has done a great job in a lot of areas, including around the digital arena. the most advanced and has the most digital viewership of any .utlet brendan: the department of justice's attitude toward -- famously, the justice moved before the ftc did to reject the at&t t-mobile deal. what are you looking at in terms of time warner charter?

greg: there are always why this is inut the public interest, why it is not anti-competitive and we have a good case. i'm optimistic that we will move forward with that deal. brendan: do you know what you might have to get rid of? >> i don't believe we will have to get rid of anything. stephanie: really? greg: really. sirius only has 30% of listeners. terrestrial radio seems to be strong. when i look at companies like i heart, why are you so positive about radio? >> there's people who are willing to pay a premium for a script and whether it be hbo or stars or showtime. subscription whether it be hbo or starz for showtime.

radio listenership is strong. iheart has a strong balance sheet. >> we hear consumers no longer want to pay for music. i feel like that has been the narrative for the last seven years. >> we are targeting an older audience than that younger person. are inwho buy new cars the early 40's, willing to pay good numbers. we have over 29 million subscribers in the united states. stephanie: how do you grow? how will he go if young people never want to pay? >> young people do get older. they begin to pay. to ian: we will listen heart radio, spotify --

stephanie: sirius. ♪

stephanie: welcome back to bloomberg markets. getting to sit in for a moment with rent in greeley, continuing the conversation with greg mcfate. orther it's your business not, what is the most important narrative in media today? greg: one narrative out there is the growth of on-demand video. whether that be on-demand video in longform or short form video,

clearly that is the explosion we see in the market place. stephanie: linear tv is dead? a lot of people are watching the nfl on cbs. greg: sports is one of those things people still watch live. and the news. a lot of television is on demand. dvr, server in the cloud or watching digital video on other devices, much more of it is now on demand. brendan: we call this transition cord cutting. you see a longer horizon for that. what does that mean for cable companies? it will change when revenue stream and make another revenue stream more important. greg: there are a couple things going on. just because it is on-demand doesn't mean people will cut the cord. it is appointment viewing. there is some cordless shaving that on, i more bullish

cable networks and cable television will be around for the longer term. cable itself has two revenue areams, a digital stream and stream from video. i'm pretty bullish on that business. i don't think it is going away. not cuttingy are the cord, you need a cord into your house to get that video content even if it is on-demand or coming over the net. this is something the ftc is definitely looking at differently than they did two years ago. what do you anticipate in their approach? greg: i think we have seen some degree that the fcc has been mandating that high-speed broadband at higher rates, 25 megabits came out in the you willn come i think see that go on overtime and that rate will increase.

understandes the ftc the rate of change? when you look at financial regulation in terms of wall street, those who are regulating them don't understand the current challenges. greg: the fcc is our regulator and i'm sure they are doing a wonderful job every day. part of our job is to explain why we are getting more competitive. that is our challenge and they are receptive. stephanie: when i think about appointment viewing, it means i never watch advertisements ever. greg: that is one of the challenges around appointment viewing. dvr penetration is up. linear viewing is down or declining. brendan: when we are talking about dvr penetration, what box are you using to look at the

content? loosening of that market and allowing other companies to compete right there at the point of entry of cable into your house, what is your stance on losing that? greg: google competes plenty well. they have an opportunity to provide video service. brendan: but on the set-top box. greg: they can build their own. god bless them. stephanie: you think of google as competitors? greg: absolutely. apple, google are competitors lots of areas, including cable. cbs, the tvf i am network still has big ad dollars. their eyeballs are declining. hat and buzzfeeds of the world are getting this

eyeballs but have not converted to add dollars. greg: the number of original shows is up from 205 years ago to 400 this year. ago to 400 years this year. there is an explosion of longform and i think there is a risk of a glut their. the short form video is exploding, whether it be youtube videos or what is occurring on snapchat. they have both screens on. that explosion is consuming more and more time, but the rates for that, what people charge for those ads on that kind of device is far less. stephanie: when does that get converted? can convince those

media buyers, what will that mean for the cbs of the world when netflix is putting up better and better content everyday? greg: you noted the declining viewership. there is this bleeding of the most attractive consumers who are spending on the digital screen and the cost for that and is much lower. i don't think it will rise so much because there is lot of inventories there. brendan: there are two trans. longform programming and the declining and dollar in tv. -- added dollar in tv. the cable networks have become content producers. i'm thinking amc. john malone is considering rolling up the free radicals of

programming. what will that look like and what are those channels? greg: there is a benefit to consolidation of the cable networks. there are benefits around having scale to negotiate against district readers. -- distributions. those are the ideas that john is trying to capture. how did the cbs and nbc of the world lose grip? forget short form video and people on youtube jumping over cars. when i think about must-see tv, it is mythbusters on discovery, house of cards on netflix. how did that happen? they cannot put out what kids can on snapchat, but they let content get away from them. there are still great hits on broadcast television. empire.

we have seen an explosion in channels. stephanie: empire would not have gotten made five or six years ago. would have been looked at as a niche market and they would have said no thank you. empire happened in response to the explosion out of amc or netflix. is theret i would say is great content on all forms. the broadcast television lost a lot because there's so many cable channels. we are in the golden age of television in terms of the number of great shows on broadcast and cable and alternatives like netflix. is the future of these channels to stop being with you and i grew up with as a channel and just become an app run by production companies that sits

on a box on your tv? greg: do i think there will be more variety in the ways you reach that content whether it be on your laptop or mobile or television, absolutely. will it be a tv app for apple? we will see. stephanie: his tv the one place that is lacking in terms of being the ultimate consumer product? when you think of all the apps you have and all the have, everything i want i can get online and they tell me what i like. turning on a television with a remote control and scrolling through all those channels seems ancient compared to all the other things we have right now. greg: there is a lot more innovation happening if you look at what comcast is doing with ity --ed he -- xfin brendan: could that market be opened up more? it comes down to the set-top box.

i'm very frustrated by the experience of the set-top box. i have verizon files. i love watching soccer on sunday mornings but i'm frustrated by the work it takes to get through the set-top box. there's a lot of innovation -- look at what comcast has invested. what charter is doing with its active set-top box. brendan: i have to ask you about technology and mature tech businesses. and we talk about snapchat facebook and everybody loves new technology, right now, we are looking at old technology companies struggling to find their groove. microsoft does not have the desire factor that apple does. what do they need to do? greg: you are seeing a lot of innovation at microsoft. they brought themselves to life

and have a lot of momentum. the stock has responded well. suggestions --f what they've done with windows 10 is a lot stronger than what they've done over the last few years. you kingwe will call of all media. >> that is howard stern. ♪

brendan: welcome back to bloomberg television. will take a look at u.s. markets. what is going on? abigail: we are watching lulu lemon, shares highly shorted, stock plunging after the company missed third-quarter estimates. $.35 pasty made

quarter, down 70% year-over-year -- 17%. bloated inventories and big discounts behind his disappointment. the company has been fighting to restore its image. will this miss cause profits in below 2013? decline it will be something to watch. up, we will take another look at yahoo! that is now negative on the day, racing earlier gains. -- be racing earlier gains -- a erasing earlier gains. ♪

york,n: 11:00 a.m. in new welcome to bloomberg markets.

good morning. i'm brendan greeley. here is what we are watching this hour. a meltdown in metals. refiners slashing costs and cutting back dividends. bridge heuncensored tells bloomberg what he thinks about donald comments and his chances to win the election. year. person of the we are 90 minutes into the trading day. we will head to the markets desk were matt miller has the latest. met: we saw futures drop and then turn around. now, we have bounced back substantially on the s&p 500. .6% gain there the dow jones of 163 points.

-- up 163 points. take a look at the imap function on the bloomberg terminal. it looks a heck of a lot different than it did this morning. we were already this morning with the exception of materials and energy. material is strong today after a poor showing of the last few days. the rest of the board has turned green. only i.t. is losing right now. nine out of 10 groups gaining. brendan: what we kept hearing for the last three days is that the market is digesting news from opec. is that digestion over? brendan: the inventory news helped. aec was not able to set production ceiling. opec has not had a production ceiling for 18 months. that brought oil below $40 and down to $36.64.

oil back up. those inventory numbers come inventories dropped by 3.5 billion barrels. we have come back from that big spike. brent is a similar situation. look at brent, which is what the europeans buy, you see a similar chart. gold paring gains after jumping to a one-month high on a weaker dollar that is also helping oil. gold coming back down. 1070 h one ounce. -- 1070 a troy ounce. not gas gaining as the gaskpiles dropped -- nat gaining as the stockpiles dropped for a second week in a row. x wickenden morgan, both of

these stocks up. x, kinder morgan. keene's birthday today. i stole one of the cupcakes office desk. i will get one for you, too. the supreme court heard arguments today in a major case on affirmative action. the second time justices have looked at how the university of texas admits students. the case could potentially limit or abolish racial preferences in admissions. in afghanistan, government talibanave been -- militants attacked the school building at the airport which is home to a database. already seven people were killed.

-- at the airport which is at a nato base. iraqi's have regained control of amadi.ion of room in paris, the third gunman has been identified. authorities say he was a 23-year-old from france. he left for syria in 2013 to join islamic state. two of the three attackers killed themselves with suicide best and the third was shot by police. time magazine's person of the year is angela merkel. she was praised for her leadership in the refugee crisis , beating out seven other finalists including donald trump and the ceo of uber. is a look at our first word is right now. you can get more on these and other breaking stories 24 hours

a day at bloomberg.com. tondan: we will get back whatever big stories, volatile commodities market. regaining --s texas light rallying from a six year low. u.s. oil inventories fell by 3.5 -- joining uss now from stanford, connecticut is the senior commodity stone.ant at imt lsc i have read so many times that iron ore is the point where mines start dropping capacity. are we going to see holdback incapacity in the near future -- pull back in capacity in the near future? >> some are cutting back but the continues all want to

raising production, driving onir costs lower and banking continued chinese demand coming back. i don't really see the rationale in the strategy. it is a race to the bottom. iron ore was at $20 when the rally started. we still have a ways to go if this continues. brendan: are there cost cuts they can find? for hackers and the american west figured out a way to do it ers in the frack american west. edward: everyone is trying to find ways of cutting costs first and cutting production later. whether it is in the fracking industry or iron ore industry or , the firstluminum

alternative is always to lower your costs. commodity producers are being helped by the fact that oil prices are coming down. labor costs are pretty dormant. in some cases, the currencies are helping lower costs like in the case of the russian ruble south african rand. brendan: you mentioned chinese demand. i want to talk about chinese supply. what role is that playing right now? >> the chinese supply is what is driving some of the metals sharply lower. particularly steel. china is exporting its surplus in steel and aluminum to the world market. not wanting to cut, but seeking to export its way out of this glut. supply is really a factor. the government is trying to reform the economy. by reform, you by definition

have to rationalize your economic base. getting these inefficient producers out of the market. it is a hard decision for the authorities to make because it will result in the closing of operations and higher unemployment. brendan: i want to talk about oil after the collapse of opec on friday. markets have been saying, wait, really? that can't be true. really? have they processed this news? have we reached a new balance and oil? edward: i don't think so. december, we will stabilize in most markets in general. heading into the fed meeting. leaving that aside, i still think oil has more downside to go. we have 1.5-2 million barrels a day of excess capacity.

iran claims they can bring in another one million barrels. was somewheretion between five and 6 million barrels a day. they have enormous potential if the sanctions are lifted. unfortunately, no sign of any supply cuts in oil, either. everyone is pumping away. this is a temporary reprieve. brendan: we talk about commodities market as if they are driven by the same thing. one thing that has happened over the last year, oil has been driven by supply. iron and other metals driven by demand. what else has to happen in supply with oil? when that prices driven by economic demand. beenmand for oil has pretty good. u.s. demand is good, chinese demand up 8%. we don't have a demand issue on oil.

we have a supply issue. the supply-side could retrench in one of two ways. we could see less production coming out of the u.s. more importantly, the saudi's have to reassume the role as and sayswing producer we will step in now, $40 oil is low enough. try to balance the markets by holding back some of our supply. thank you. coming in the next half hour of bloomberg markets, joe biden unplugged. our exclusive interview with the vice president. what yes to say about donald and hillaryents clinton in the 2016 race. cyber security in america. what congress hopes to do about it and whether silicon

valley will step in to fight terrorism online. ♪

brendan: good morning. welcome back to bloomberg markets. jobs --nk cutting 9000 it was founded in 1898 as a dutch cooperative to help farmers. bobank. it is difficult to keep that global presence. matt miller has a check on company news. macklin looking at yahoo! because city just cut yahoo! to

neutral. matt: $39. yahoo! still is not trading there. wynn is up-to-date because the ceo has bought another one million shares. when boosted his stake to 11.1 million shares, 10% of the entire company. n with a vote of confidence. maybe he knows a little bit about the company since he runs it. historic the big merger we've been reporting on, the possibility of dupont and dow chemical resulting in a break up into three separate companies. agricultural, plastics. both of those shares rising.

they've done pretty well this year, both worth more than $60 billion in market cap. it would be the biggest high up in the chemicals industry. finally, want to talk about kinder morgan and freeport back rent. moran.eport mac freeport has had a rough year, down 70% year to date. it came out today and said it is suspending its dividend, cutting its much shutting down mines. they have given it a vote of confidence. here's the year to date look, still pretty rough. 8 percent. brendan: vice president joe

biden had an exclusive interview with bloomberg news pic he says donald trump is trading on dangerous ground. margaret whow is did that interview, just returned from traveling with the vice president to ukraine. interesting, he prefers hillary clinton over donald trump, but he stopped short of an endorsement. why? bidenet: vice president told me he had made a commitment to all the democratic contenders and was not going to weigh in and would let the party choose its nominee and he would stand by them. that bidens is pulled consideration over whether or not he would enter the campaign. he was not convinced that hillary clinton was the strongest candidate. he has some concerns about her.

he will now support whoever the nominee is, even if it is her. he has decided not to endorse her in this case. he says this is -- brendan: i'm looking at the things he said when you asked him about donald trump. he is preaching a very dangerous brew for america. it is not hard to imagine what he would say about donald trump. what is his role going to be in the selection? -- this election? makes an effective attack dog. margaret: in the early stages, his role has been behind the scenes. the wise man telling all the competitors to come to me. as the contest emerges, we will who wantsce president

that used to make the case the candidates cannot make or support the case that the wants toc candidate make. precisely how he will do that, we have yet to see. we see him doing his first couple of foreign troops now. -- trips now. brendan: just back from a trip to ukraine with vice president joe biden. you can read more of the interview at bloomberg.com. joining me now is the chronic congressman -- democratic congressman james himes. what are the obstacles right now holding up this cyber security bill?

can you hear me now? what are the difficulties holding up the cyber security bill before congress? representative himes: there's onn last-minute negotiations how aggressive the oversight of the department of command security will be. we are likely to see the cyber security bill part of the overall under this which will keep us here working this weekend. as part of the omnibus. brendan: what can silicon valley companies actually do to help in the fight against terror? it is difficult for them to police the incredible volume of content that goes over their servers every day. how can they carry this out? representative himes: there is a lot they can do come including

sharing best practices and ideas with the experts we have in the federal government. there are networking security experts who know this stuff. making sure those folks are talking to each other, that is a big part of the cyber security bill. there exists this safe avenue for discussions for information to flow back and forth. that is a critical thing. there's a lot of areas where it starts to get a little gray and uncomfortable. i'm not sure you want to ask the of theks and googles world to start deciding what speech is dangerous and what is not. that is a better role for our security services to know and speak about. what sort of elements online are leading to radicalization. brendan: when you talk to government agencies, you hear that encryption technology helps

the bad guys. when you talk to security experts, they say they do, but they help all of us. there is no way to compromise it for the bad guys without compromising it for everyone. i'm nottative himes: sure there is a compromise. have something in mind like a backdoor or some kind of special access for law enforcement. i understand where the director is coming from. theow have on the devices capability to be strongly encrypted in a way that does not allow the fbi to look into the by humanused trafficking rings and drug dealers. reality,o get to this we will not put a backdoor and americans will not tolerate that in their commercial products. , it you do put a backdoor is not just our security services who can get a look.

it is iran, china, russia, etc. brendan: james himes of connecticut. we ran out of time. i would love to have you back on. coming up, we are going to be talking about yahoo! and apple television. this is bloomberg markets. ♪

brendan: apple had plans to develop a life tv service. it has put those plans on hold. ve tv service. now is understand right that the content companies decided it was not in their best interest. i somebody from a content crating company once upon a

time, what is going on? >> we've been hearing about apple doing this for some time. there is a tendency for content creating companies to look at newspapers to say let's jump on that -- they come around to thinking, are we doing this to o cheaply? i just talked to david from discovery. discovery had a deal with netflix and pulled back off of it because they thought they were not getting enough money. subscription, advertising and -- just to sources of revenue. when we see that tv revenue will just bedigital surpassed by digital in the next year, where will channels find their money? >> they have to get to a world where they have a direct relationship with the consumer. you have to have this.

you go through a gatekeeper like facebook or netflix or have a direct service like cbs? that is the nirvana. can you get there? brendan: it looks like an app. you have an app on somebody's set-top box. >> you hope that is the future. the alternative, you have to go through a gatekeeper enable try to a hefty toll along the way. -- charge you a hefty toll along the way. brendan: thank you. european closes next. -- the european close is next. ♪ ♪

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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. bloomberg back to markets. i am brendan greeley. the markets are finishing for the day in london. we bring in mark barton as we wrap up trading over the next 30

minutes. almosturopean stocks are clawing their way back from a rebound. the european close starts right now. ♪ brendan: in the next half an hour we will take you from new york to london to berlin. take us off. for most of the day, european stocks were trading lower that half an hour ago, they rose but they did it right at the close. minors rose. to eight 2009n 3% well, for the seventh executive day, before rebounding. as well.s rebounded ve