>> from bloomberg's headquarters . here is what we are watching. reverse spinoff, the phrase of the day as yahoos latest plan to keep its alibaba stake and spin off its web business. dow chemical and dewpoint late stage merger talks, would create biggest transaction in chemicals industry. donald trump under fire for anti-muslim comments. what does the public think? let's head to the markets desk. ge is said to be in advanced talks for halliburton drilling assets. they want to buy the drill bits and drilling services division.

general electric is up by 6/10 of a percent. however is up by 3.4%. selling the business could fetch as much as $5 billion in total for halliburton. we will be watching that. let's take a look at the markets right now. we've seen a major turnaround. in the green with the dow rising 200 points, only to end up red across the board. crude inventories at the lowest in three months, helping to pull the market down. a look at the health of the s&p right now. eight of the 10 sectors are in the red. materials and energies are the only sectors and green.

meantime, the nasdaq, you can see that it never made it out of the gate. gains, and s&p saw huge but the nasdaq started in the red then continued its slide down, down 1.6%. >> how about companies in the nasdaq. >> the word is apple, apple shares are down by two and a quarter percent. this is because reports put plans for a new streaming tv service on hold. that hold on the tv plan was reported by cbs. thee may be ball thing at high cost of content. alking at the high price of content. crude is down.

spiked, thathat it is when crude inventories came out showing they felt by 3.6 million barrels. we have given up all those gains and are on track to continue the declines. >> thanks. let's get an update on bloomberg first word news. from rahmpology today emanuel during a special session of the city council. he expressed regret that a year before police release video of the fatal shooting of a black teenager, and for the white officer to be charged. >> i take responsibility for what happened, because it happened on my watch. we are going to fix it. it is my responsibility. if we're going to begin the healing process, the first step

in that journey is my step, and i am sorry. mark: he also addressed ts mistrust of police. tois sorry that they have warn their children to be suspicious of officers. john kerry says the united states will increase the money it provides for climate grants to $860 million by 2020. the money would be part of an existing promise by wealthy countries to jointly mobilize 100 billion dollars annually in climate finance. it must be approved by congress. feist president biden says it donald trump wins the nomination , he will be defeated easily by hillary clinton in a general election. in an interview, the vice president said mrs. clinton "wins in a walk." mr. biden said "i don't know

knowhis motive is, but i what he is preaching is a very, very dangerous brew for america." german chancellor and/or merkel is time's person of the year. they say she showed leadership in the refugee crisis and greece debt crisis. you can get more on these and other breaking stories at the new bloomberg.com. david: yahoo! scrapping its plans to spin off its stake in al obama. marissa mayer tried to convince investors why this is a good idea today. >> it is a large part of our market capitalization driven by the alibaba stake. a separation provides greater transparency to ensure that yahoo! is accurately valued,

especially as we improve products in operation. david: investors are not cheering the move. yahoo! down 3% as the company changes course again. it is considering bundling the rest of its core assets into another company. i know you are on that conference call this morning. in recent weeks, a lot was made of potential tax implications. what did she have to say about that on the call? cory: they contend the best thing would have been to spin off alibaba. they assist -- insisted they could have done it tax-free. it would have taken years for the investors to hash it out with the irs. because it was going to take so long, they will pursue this other path. david: give us a sense of what this company might look like. >> alibaba and everything else.

right now, investors put all their hopes and dreams into the plus,a stake, 30 billion but you will see basically a company that does give more scrutiny, more focus with its core business now. ibaba shroudthe al will be lifted and you will see how well it is doing. that will be a change. but at the end of the day, investors are looking at the alibaba stake. david: what about that, the new emphasis on transparency. what might we learn about the company? cory: the issue with this is that it is going on and on, so now investors are looking at this deal and thinking the spinoff is great. the delay in this might have

created some of the weakness in the stock. it was a brilliant note today that refers to it. is aoldman said this mirror of the other transaction we proposed. ken goldman said this was a mirror of the other transaction we proposed, kicking alibaba out of the company. themhe benefits will help make it clear to investors what ,he company is, attract talent all of those benefits will have to wait another year. it has been too long to get to this turnaround. there's no growth happening. david: on cory's point, the alibaba arrangement took two years to hash out. the company spent a lot of time and energy on that. marissa mayer is trying to turn

this company around. it seems to me that these been off plans have to be occupying a lot of time. >> that's a great question. there is concern out there that this is an ongoing distraction for marissa mayer and the management team. that said, she has been working with this huge distraction since he got there. i think investors might be saying, you have been here for three and a half years, let's see something. we want to see some results. we got another disappointing quarter in october when they reported. they are losing ground of facebook, google. story, and positive marissa mayer needs to show something that says we are on the right path. so far it has been more words than action. david: i wonder who might be interested in this new company if the spinoff goes through. we heard from members of the horizon executive team expressing potential interest. -- of value or

interest to another company? in siliconest joke valley, so what is yahoo!? they are confused about those two goals. , goodn just acquired aol content and a lot of technology. yahoo! does both of those things. it makes sense. this constant state of turnaround, where it is profitable and throwing off cash and cash on the balance sheet, but at some point you have to grow. in marissa mayer they have one of the highest-paid ceos it in , 47of corporate america c main dollars in non-cash comp. $47 million in non-cash comp.

up, two giants of american industry may soon be one. more on the potential merger between dow and dupont. brown --t mack freeport is scaling down. we'll show you the brand-new results of a bloomberg poll in just a minute. ♪

david: welcome back to pimm "bloomberg markets". the department of agriculture has raised its corn surplus forecast. increasing competition from brazil and canada takes a bite out of exports. supplies may corn be 1.78 5 billion bushels, an increase from last month's estimate. puerto rico's governor may call a special a session to approve a measure that allows the islands electric company to restructure its that. the deal struck between the puerto rico power authority and bondholders could fall apart without legislative approval. the u.s. supreme court is considering reinstating a law that would let the utilities restructure their obligations. boston college says a number of students sickened last weekend

to written his -- has risen 120. the boston public health commission says the illnesses were likely caused by nora virus . results are not expected for a couple of days. let's head back to our markets desk. >> on going to talk about some of the winners. .e will start off with wynn this is after the founder bought one million shares for $64 million. investors are happy with that. it is up by 13 and a third percent. it is being seen as a vote of confidence in the casino. shares still down to do 4% for the year. dear to my near and stomach, krispy kreme, is ahead by 3.8%.

the doughnut retailer says it will be raising prices during its earnings announcement last night. pricing outlook overriding concern same-store sales that were lighter this quarter, that might raise -- make raising margins harder to achieve. advanced auto parts shares off of their highs, but still up by more than 2% on the day. o'reilly automotive is a potential suitor. the news here is just the latest with auto-parts retailer is forng after the bidding war the voice -- pep boys. david: thanks. and dupont in talks for a

potential merger. talk to me about the timing of this. why would this deal happen now? ofthere has been a lot consolidation in the agricultural industry since monsanto made its bid. the deal did not go through, but others have said there as been widespread industry talk since then. an agricultural deal was widely expected to be happening. apparently those talks for an agricultural merger morphed into the consolidation of dow and appoint into one company now. both companies have activist investors involved, which added to the pressure to find new growth by consolidating. david: when you look at these two companies, how similar are

they as big chemical conglomerates? >> they're not as similar as some might expect. focus, a commodities their biggest earnings area is plastics derived from oil and gas, which has done well for them recently. they've been trying to move out of the commodity area by selling their chlorine business, the biggest in the world. they are making other moves. dupont has a bigger agricultural business, a bigger solar materials business, biofuels, , materials for firefighting. a specialtyof focus. they both make chemicals, but they are is not that much of an overlap. -- there is not that much of an overlap. david: you look at what might happen, and it seems to be indicative of what is playing

out in the space. we will have three spinoffs. they will be three very focused, very clean businesses that will go on and acquire other companies. thatpinoff from here is -- somebody else will make a run in the distant future does not too distant future. it never stops with one deal. as biggesthat together and helps the regulators let the deals go through. david: how nervous making his today's announcement for european competitors? >> i would assume everybody else

wants to get bigger to compete. the prospect of monsanto and another combining, pesticides and seeds, has everybody else talking to get bigger to to remain competitive. monsanto still wants to acquire a big pesticide maker and will be trying to look europe.cquisition in i agree with jeff. david: i wonder if you could pull that thread that jack brought up about the role of activist investors. be --n peltz, stan low >> this is a clear win for them. earlier this year, it looked

like nelson had i lost because he tried to knock out on a lot of the board at dupont and failed. dupont is aunning experience good separating companies out, and that is what he will do now. david: thank you very much. still ahead, pep boys giving bridgestone until friday to top carl icahn's offer. how far are they willing to go? ♪

david: welcome back to "bloomberg markets".

i am david gura. pep boys playing hard to get. is it worth the price. with why bridgestone initially was interested in this company. it is a japan-based company. interested in was expanding further into the united states. this company has 2000 service centers in the u.s.. arounds has something 7500 service bays in the u.s.. it would be away for bridgestone to expand its services in the u.s. pretty easily. david: put this into a larger context. other auto-parts companies are doing pretty well right now. >> that's correct. there are a lot of things driving that.

the average age of cars is the highest it has been, a love and years. -- 11 years. there are 250 million cars on the road, another record. the cars are getting more complex. they need to turn to mechanics, professional shops, and that's where these auto-parts companies are getting sales. david: let me ask you about carl icahn, the way he went about doing this, buying a stake in the company. what is attractive to him about pep boys? >> carl icahn bought a company called auto plus, the u.s. wing of a canadian company. they are a retailer. take pep boysto and at that to auto plus and expand the business that way. sees there is plenty

of space in the u.s. base to consolidate. they want to roll these companies up to -- into larger more efficient entities. david: thank you very much. still ahead on "bloomberg theets", freeport-mcmoran latest big minor scaling back during the commodities rally. ♪

david: from bloomberg's headquarters, this is "bloomberg markets". i am david gura.

mark crumpton has more from our news desk. mark: president obama says the 13th amendment which abolished slavery meant freedom for all. the president joint congressional leaders on capitol hill today to mark the amendments 150th anniversary. president obama says the remnants of slavery had had a lasting impact. >> we would do a disservice to those warriors of justice, lincoln, king,, were we to deny that the scars of our nation's are still with us today. mark: the president urged americans to push back against bigotry and all forms. will be formally charged with last month shooting outside a planned parenthood clinic. there is evidence that he was

deeply concerned about abortion. he reportedly said "no more baby parts" when he was arrested. a baltimore maryland police officer charged with manslaughter in the death of freddie gray testified today, saying he did not call for a medic because freddie gay was "-- freddie gray -- william porter was the second witness called by the defense. penalty he pentyl -- faces is five years. the second time justices have looked at how the university of texas admits students. the case potentially could limit or a box -- abolish racial preferences. -- u.s. space station international space station accepted its first shipment in years. it grabbed the capsule and

cargo, including christmas presents and much needed groceries. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. i am mark crumpton. david: commodity markets are closing in new york. let's look at today's biggest movers, wti, a choppy session. ..s. oil stocks fell 7% the rally was short-lived. now settling at just over $37. ge in advanced talks for halliburton's drilling assets. the slump in oil prices has weighed on earnings, but the company has indicated a willingness to continue expanding in that area. the mining sector is feeling the pinch from the collapse of the commodity sector. freeport-mcmoran scrapping its dividend and scaling back operations. investors are welcoming the

news. are these steps enough to keep it afloat? yesterday, i played a quotation ,rom the ceo of rio tinto calling it fantasyland that iron ore prices would get to $30. you correctly prognosticate it that the news that would set it in motion scrapping its dividend. >> i wish it was that easy. the mining industry needs to adjust to the new chinese reality. they need to cut substantially. the disappointing thing investors are finding with freeport-mcmoran is that they said they were cut another 100 million pounds of production, but did not say anything about company production expected to be up 15% next year. they are not fooling anyone. the stock heavily shorted went

and then down. mines,ed to cut production, and capital expenditure to low levels to get the supply and demand back in balance. david: for seeing that scaling back across the board. >> freeport-mcmoran tells us that we will curtail copper and aluminum production more. we'll also pull back on the expenditures on oil and gas. we saw the same yesterday from anglo american. every day i'm talking to traders and i keep saying, do you think we will see more cuts very what we're hearing now is that i would not be shocked anymore. is that dividend no safe? >> investors care more about the cash they have than the cash

they are giving away. the more companies that have been giving away a dividend and will now have to pull things in for 2016 and 2017, and make sure they're paying back debt. it's hard to believe these guys would not in the longer see these as something they could not take off the table. in dramaticescribed affect what this commodities contraction has looked like. when you look at freeport-mcmoran, what are the difficulties this company faces? theou go back in time, freeport-mcmoran problem came when they merged with her oil and gas business. an amazingmoran has mine in indonesia, and unbelievable asset. they have some great assets. they were worried that bhp or rio tinto would buy them. at the time, oil was over $100 and they thought everything would be ok.

look at what has happened. they have to find a way to divest themselves of the oil and gas business. it bywas a little bit of cutting the capital expenditure for that business. david: the writing was on the wall for so long. why did it take company so long to do something about this? >> mining companies just don't stop producing. the ramp up took many years. a lot of these companies like anglo american and freeport-mcmoran started to overextend. the money was good, china was buying, but as prices fell off and plummeted, it's not like you can say we are closing this mine. it does take a little bit of time to bring things off line. these are some very serious issues that all these mining companies know of. it is a very cyclical industry. i'm like saying we will end things today, that is not realistic. david: thank you so much.

coming up in the next 20 minutes, donald trump at the center of another controversy. this time a proposal to temporarily ban muslims from entering the united states. with emily chang set down troy carter talking about streaming spotify and the taylor swift problem. coming up, ed morris joins the program. that is at 4:30 p.m. eastern on bloomberg television. ♪

david: welcome back to "bloomberg markets". i am david gura. there's a new poll out on donald trump. mark halperin joins me now. we should do the headline number first. republicans likely to vote in 65% of those surveyed said they would favor the kind of band that donald trump has proposed. am i reading that right? >> you are. i'm not surprised. it is an unusual situation. a presidential candidate proposing something that no other candidate agrees with. in fact, they denounced him. cheneye people from dick to hillary saying the exact same thing about it. and yet, if you are a republican, you have to wonder about a position that is different from 65% of the people likely to pick our next nominee. that does not happen often in politics. david: you say you are a bit

surprised to you thought it would be higher. as a lot of applause. >> i'm not surprised. if you take a poll of trump supporters, i'm sure it would be higher. the fact that 65% of the general electorate, here you have something that is supported by two thirds of republican voters. asked is iftion transposition is more likely to vote for him given his position. 37% of primary voters said they would be more likely to vote or him because of that position. that is a big number four one position, and one denounced by the republican speaker of the house. almost every other candidate has spoken out, denouncing his position. primary voters say

this makes me more likely to vote. have we heard from any major politician coming out and saying they are behind donald trump. >> rick santorum said he supported something similar, comparable, but no, it has not been embraced by almost anybody else. talk radio have embraced it. it is an unusual situation to have the front runner say this is my position and to have almost everybody else denounce it. i think we have done the first poll to test this. it will be interesting to see if will beticians reaction a change of mind. david: talk about how this breaks down. let's start first with education. of those with no college, 43% said they would back the proposal. survey as compared to what we expect they electorate to be like, but that

would only make the thing to be less ocular. degreesithout college tend to be more likely to support donald trump and like even people, but with less education still like it -- more education, rather. david: circling back to something else you said. beone else seems to attaching to what he is saying, feeding into a narrative that donald trump has cultivated carefully, that being the establishment does not want to hear what i have to say or is against me. >> one of the things that trump did was start to emphasize that this is temporary. whereas at the beginning when he was enunciating it, it seemed like a permanent ban. that softening has reduced some of the political heat on him, but the people who like this idea, two thirds according to our online poll of republican likely voters, they like the

general notion that these are unsafe times. trump is doing something that is strong in the view of people who like it. doing something decisive, that is matching the mood of how people feel after what happened in paris and san bernardino. of theoliticians, most leading politicians in the republican party, are saying no, this is against what america stands for. that is a very sharp break. and trump can say, i am with the people. how thisen you look at breaks down by age, under 5031% favor,- under 50, 31% 36% opposed. does he have a lot of support with young people? >> trump does well with everyone. people do better with who are less educated than people with college and advanced degrees. he has done well with young

voters and older voters. david: thank you very much. we'll have more on those polls tonight on "with all due respect." that's tonight at 5:00 p.m. eastern time. now it's time for the bloomberg business flash. its aggressive push to expand, planning to open 32 more locations in 2016. 22 stores in the u.s., and 10 overseas. it continues to move in on untapped international markets. inco was the biggest loser the s&p 500 today, missing its earnings estimate, increasing technology spending and beefing up online presence. the decision to raise the minimum wage to $15 an hour will go into effect over three years in new york city and six years in other part of the state.

a majority of u.s. renters older than 40, a shift that reflects the lasting damage of the housing crash and and a zing population. a study undercuts the notions that the twentysomethings are behind the rental boom. 47% were older than 40. you can always get more business news at bloomberg.com. let's head back to the "bloomberg markets" desk. >> i want to talk about again with chipotle. let's take a look at what is happening. up by 2%. you can see this leg up that just happened in the past 20 minutes, 7/10 of 1%. chipotle hasause just commented in an e-mail statement saying that all the cases we have been talking about are all contained at one boston location.

investors are feeling a little relief. they say all their employees will not return to work until it is cleared and they are tested .or norovirus yahoo! making major news earlier today. the company will not spin off alibaba because investors are worried about tax risks. yahoo! is down by 3%, but off its lows. shares have lost a third of their value year to date. shares are stuck at levels from nearly 10 years ago in 2006. looking at retailers, another laggard is cosco. , down byr session lows

5.75%. ,t missed earnings estimates coming in at $1.09 a share. analysts had expected $1.18 a chair -- a share. investors clearly are hanging onto that negative information. let's head on over to the yoga world. lululemon tanking, down 12.7%. it missed its lowered profit target, blaming warmer winter weather for weaker sales and discounts it needs to do to move the stock. when i was talking about colombian sports wear and macy's come also seeing a negative impact from warmer winter weather. david: no need for a heavy jacket here in new york. thank you very much. coming up on "bloomberg markets"

, spotify in the works to make morelatform will -- appealing. we will tell you how after the break. ♪

david: welcome back to "bloomberg markets". i am david gura. artistsit will let some offer their new releases only on the paid service, a concession and switch up that required all music be available not only on the paid edition. thoughts on artists taking a stand on streaming. spotify needsw if to get over the taylor swift problem as much as it is people have to see the future. free already exists. it is a flawed argument when you

say i don't want my music on any service that offers free, winfrey are ready exists. >> is taylor swift wrong? wrong, butsay it's it is a flawed argument. david: emily chang me now. it sounds like what he is saying is that the horse is out of the barn? conversations which right before spotify made this concession. taylor swift's albums still are not on spotify. troy carter is saying you can still listen to music for free in a lot of places, youtube, pandora. it does not make sense for her to argue that you should not be able to put music out there for free. spotifyare hearing from today is that they are willing to make this major concession to labels and artists. adele also withheld her latest

album. coldplay has withheld its latest album from free streaming services. bit of anike it is a experiment where spotify will allow some artists, and that's the interesting thing because it looks like some artists will get special treatment and some ton't him a which could lead other additional challenges, but it will be interesting to see how this plays out. we are waiting for a lot of new are you -- new albums next year, , so itest, lady gaga will be interesting to see how spotify executes. david: there are artists in the pantheon of artists, select level of those who like a dell can walk away from streaming. how big of an option is that for most musical artists? >> it's not an option for most artists. many of them are queuing to get their music on spotify and

pandora. these are independent artist without the weight of hollywood behind them. says they aretify trying to champion these people who don't have these traditional avenues. the founder of pandora told me the same thing. that said, look at what happened with adele's album. i've heard every single song on that album and i had to buy it myself to listen to it, and i don't like lying music. for most artists, it doesn't work. david: we think of troy as somebody closely tied to music, but it is broader than that. >> he founded a country called atom factory. he manages artists, john legend, megan trainor, but he is also investing in technology, working

with lady gaga, one of the first to use social media to get her music out there. he has a first look at deals like uber, dropbox, spotify. he is an investor and all those companies. over and -- uber and lyft. i ask him who wins in this scenario. take a listen. >> as we look at this complicated transportation ecosystem, i feel like it is going -- there's going to be enough room for both. i don't think there will be a winner take all. so, winner may take most in the opinion of troy carter. david: i'm still taken by his sneakers in that. to sayhave anything

about how highly valued it is now? >> he believes winter is coming. we have been hearing this from investors. the way he describes it is that we will see a series of many corrections.- mini it is time for some sort of correction. david: thank you so much. on can see her interview studio 1.0 with troy carter. that's tonight at 9:00 p.m. eastern right here on bloomberg television. hour, up in the next stocks tumbling with the fed decision on the horizon. ♪ . .

david: welcome to bloomberg markets.

from bloomberg world new york, i'mn david gray in for betty liu. stocks tumbling to a four-week low with technology starks hardest hit. is it profit-taking or sign of something more? talks are heating up between ge and halliburton -- how it could help in its takeover of baker hughes. apple steps out to overhaul the pay-tv bundle. mediay can't facedown giants, can any company question mark we are one hour away from the closing. amy: we started out in a good way with the doubt popping about 200 points and now we have given up all of those gains. looking at the numbers, we are scraping bottom and it looks like we are not going anywhere. 1% and the down nasdaq down the most, by