from bloomberg world headquarters here in new york, good morning. i am betty liu. oil is falling. new york's low with close in more than six years after opec crude rose to a three-year high and november. why it will continue. watch out loyal -- lower oil prices. companies and crisis management mode. plus, a new strategy from glencore. sending shares skyrocketing. volkswagen ceo talk to bloomberg as they struggle with cleansing sales. a lot happening on this thursday morning. have an hour into the trading session so far. heading to the markets

desk where matt miller has the latest. : what an exciting day. north americaati will bring his brand-new bike. the major indexes. not a lot of movement. the affinity of three points. dow jones up about 34 right now. was very dramatic this morning. just like tuesday morning we saw a huge drop. about an hour later. now available come back. $36.5 for a while. very exciting. look at the seasonal picture of oil. it is a great way to look at a commodity and index for how is performed seasonally. you can see we got crushed in a oil attribute

at $160 per barrel after it peaked. we did not see that until last year. asterisk this a horrible drop. -- this year looking at an 11% drop, and only number 10. very interest in move. the saudis and iranians to try to produce each other out of business. look at natural gas. initially did not come down with oil and then move down. we have still been it down. not gas stock has not moved down as much. oil stock has not moved down that much either. take a look at the equity. ginter morgan, second day in a row of games after nine days of losses. watch the big oil stocks as

well. they will determine the direction of the sexes they put up moves anywhere near as weretic as the oil moves this morning. chevron, exxon, the biggest talk . these are the biggest stocks on the indexes, and they will move them around. betty: we will check on them later then. at the markets desk. no a check of first word news. david: thank you. swiss security official says geneva police are actively searching for suspects in connection with the terror attacks and paris. they are increasing terrorism level and working with authorities to track -- track down suspects. legal action against greece, italy and croatia to failure to register refugees held -- correctly. he. secretary general said

is reasonably optimistic countries will reach strong agreements to slow global warming at the paris climate talks. the climate change currently under negotiation will require all countries to pitch in to cut emissions. dozens of demonstrators staged a die in, the latest protest over the killing of a lack teenager by a white police officer. the officers charged with murder. critics are calling for rahm emanuel to resign. emmanuel promised reforms yesterday in an emotional's reach. an illinois lawmaker is opposing a bill that would let illinois voters to recall the mayor, not currently allowed under law. services are scheduled today for san bernardino county worker who died in the shooting. friends and family members of those killed visited the shooting scene yesterday. the friend who bought the assault rifles used in the shooting were related through marriage and may have plotted the attack three years ago. that is a look at the first word

news right now. more on these and other stories at bloomberg.com. betty: thank you. making thee again headlines this morning. crude output at a three-year high. number showing no sign of production. wti and brent are both lower this morning. bloomberg intelligence energy analyst peter pelikan joins us now with more on this. you would think by now this output, this would be all priced in. when will it be all priced and in the oil market? big question oil markets are trying to figure out. we got the monthly report, and essentially what they are saying is production is going off. 37.1 million barrels per day. betty: is that a record? >> is that -- that is one of the

highest records on record absolutely. what they are saying is where will it come from? >> it is not coming from opec. it will come from non--opec nations. curtaildict they will 300 80,000 barrels per day in 2016. that is good news on the but the problem is if you run the numbers like you did this morning, it shows potential balance in the marketplace by the end of second quarter 2016. the wild card is iran. once you've at that in the add that in the picture come the same picture as you are today, the market oversupplied i 1.4 million barrels per day. basically, they could offset the production cuts we might see from the other players. the other players would be u.s. >> absolutely.

essentially anyone not within opec. betty: will it be extremely difficult to call a bottom? don't even try at that point, right? >> i think what we're seeing with market structure, it will happen over months or potentially a year. it takes multiple years. people are trying to figure out how this works from saudi arabia declaring thing was not the still quoted in the u.s. becoming a producer. that is the macro ship that will take time to work through the marketplace. page 98 of the opec report, they essentially believe not opec supply will pick up in the fourth order, which adds another degree of uncertainty for what is going on in betty: the oil market. what would that mean? >> you have to look at page 98 to find out. bedtimeome light

reading. saying on commodities but moving from oil to the metta world. glencore stop having the best day since october after revealing an updated strategy in response to the deepening slump in commodity prices. the stock is up almost 8%. ryan chilcote jennings us from london on the details. what exactly is getting shareholders fired up here you the name of the game is cutting debt. that is what investors are pleased about. basically there is $30 billion worth of debt. they have a larger debt burden than anyone else in the industry. today they said they would cut it down by 18 billion by the end of next year, more than what they were planning on for next year. deked is the achilles heel and debt investors are pleased by the announcement from the

company that they have already secured $8.7 billion worth of debt reduction. they like the detail and think it is a plausible approach. betty: how exactly are they planning to do this? >> there is two things. one is to cut capex. in 2006. a few million this year. the second tool is asset sales. they are already announced they want to raise $2 billion selling off assets. today they announced if they are successful they would like to target 3,000,000,000-4,000,000,000 dollars. one thing they talked about selling is the agricultural unit, at least a stake. they said they would consider the holes -- selling the whole business of the got a really good offer. they said in addition to talking to the private buyers, they would consider ipoing the unit. saidlook at all this and

we will deposit it there. looking at where they can save money. doing in a way that when i hugely cut profits in 2016. talking about the ceo, what is he bringing to the table in terms of china -- trying to get glencore out of the commodities route? quite us is where he is at his best. he is a trained accountant and has a laserlike focus at cutting costs and keeping his eye on the bottom line. this guy is intensely competitive. national champion for south africa as is the locker. he runs every morning, does not drink. everybody who knows him, and i have met him a half-dozen times, says he is very intense. he has lost $3.7 billion just this year on the back of decline in share price. so he wants to turn the company around.

he made that clear today in the conference call. he said i do not like the debt situation we are in, and i do not want to ever be in it again. betty: that is interesting what i heard, speed walker. ryan chilcote in london for us. ,he chairman of bloomberg lp the parents of bloomberg lp is a senior executive non-director at glencore. much more ahead in the next half hour. face very tough decisions. we look at their notes billionaire ceo elizabeth holmes . what she told bloomberg businessweek. shaking up management as aig faces investor pressure to face profitability. move-in or move out. we cannot forget volkswagen. outcompany will find a way

of the diesel image and -- in missions cheating scandal. those and much more coming up on bloomberg markets. ♪

betty: good morning. welcome back to the markets desk. solar stocks are not doing well today. first solar came out with the 2015 outlook and disappointed the market. sales between 3.9 and $4.1 billion. the market wanted to beat. first solar down 10% right now. most solar stocks are off. i should say sun edison, the worst-performing stock of the entire year is actually gaining

right now. just a little bit. making amendments to and acquisition and also got a new contract from a canadian power supplier. chipotle, the ceo was on one of the network morning shows. and suggest the probe, what is going on with the food and the probe will be done by today. men's wearhouse, you will not love the way you look if you are long on the stop, because it is down 25%. today, by three shares, get one free. betty: thank you so much. you cannot wait until you pull it cleans up so

you can get your burrito from for lunch. a lot of news affecting emerging markets. developing nate should -- nations have been having a rough year. down 30%. what is ahead for emerging >> aheadn 2000 teen? for emerging markets equities at morgan stanley. good to see you again. i know you have been quite bearish on china, specifically after the stock market crash. if you look at what is markets, in emerging we have been in this bear phase four for-five years now. i think many countries have adjusted. the currencies have fallen very sharply from brazil to russia to south africa. the currencies are down very

sharply. the currencies are not cheap. big change from what we had in 2011 when brazil was a sticker shock from what we were seeing. not adjusted.s the currency in china is still overvalued. the currency needs to adjust. is what you are still seeing in the marketplace. especially with the chinese weakening. betty: so if we were to fall 10%, would we add in the that is then? >> currency. >> the second one is debt. even though it there is so much talk of rebalancing in china, here is the most important thing expanding know, it is

twice the pace of the economy in china. this is not a sustainable model. has been china's problem really since 2000 nine. since 2008 the debt profile was quite stable. since then, it has exploded. we have the largest debt file of any country. it is trying to reach an .nrealistic growth target they just do not have the underlying fundamentals to do so. china is working the population growth this year. nothe research has shown, country in history has been able to grow on a sustained basis on the basis of negative demographic. they are trying to grow at a negative pace to meet the growth targets. betty: do you feel we're at the point in aturning

lot of countries. you mentioned venezuela, argentina, even south africa overnight this year and the finance minister being fired. are we at a turning point in many of the emerging market? >> gooduth africa, the one news is that technocrats. now we have such a populist move in south africa where the finance minister has been fired. this has been a turning point. other countries there is some evidence. like in latin america. i was in chile in april. he had a great line when i met him. he said in my history in latin america is when times are bad, policy turns right. when times are good, policy

turns left. what you see in venezuela and possibly brazil, populism is being shown the door as the country faces problems. moreare electing traditional leaders to try to set the country right. you can argue it is the emerging world. it is asia, too. so i think it is very country specific. those countries that are electing new leaders and are asking for reform is a positive sign. south africa is a bad example of this overnight. betty: it is an outlier. we will talk more on the specific countries and what is going on in argentina, venezuela, and the rest of south america. argentina getting a new president. later in right-leaning

more than three decades. just how upbeat is the country's economic outlook right now deck we will dig further into this in a moment. ♪

betty: as we just talked about, argentina has a new resident. he inherits the country with an nation estimated at 25 percent. foreign reserves at a nine-year low. joining me is the head of emerging markets equity. she has interviewed him and has a story in this week's business week about what may lay ahead for argentina. so have interviewed him, talk to me about what kind of leader he is. >> he is the only politician

that has ever answered all of my questions directly. he is not announced he was running or president directly when i interviewed him. he answered every western directly current and i think that is what investors are really drawn to about four. he is not perfect, but he will meet with you, will tell you what is going on, and has been very open about fixing the relationship between argentina and investors. seems to know what needs to get done. betty: exactly. so what will be his first steps you go >> he definitely needs to tackle some of the capital controls that are strangling the economy. very difficult to get money there. it goes from citizens to the economies. so he needs to start letting

those go a little bit. he has said that is one of the top priorities. he needs to sit down with the holders of defaulted debt from 2001, because until he resolved the pending issue, they cannot abroad. without the financing, it will be difficult to do the things they need to do to liberalize the economy, which in the beginning will be painful to go through the austerity measures. you need the money coming into lesson the blow. betty: there is talk about releasing currency control and lifting the devaluation as well. this falls into what you were describing earlier about how a lot of these countries have already devalued their currencies. how much more disruptive will it be? >> all of the emerging market countries will have one more like down. that is the problem with this vicious circle, china currency

is still overvalued and needs to adjust. many of the emerging markets have already adjusted. this is coming from a possible china adjustment. agree there are deep rooted problems in argentina. the adjustment will require very painful in 2016 and 2017. i think it will be premature in the markets to have the run-up. betty: thank you very much. you can read her story on argentina and this week's is this week. ♪

betty: live from bloomberg world headquarters in downtown manhattan, you are watching over television. i am betty liu. house speaker paul ryan says

money will be included in the omnibus federal budget. he made the promise during a meeting with house republicans. democrats and jon stewart have pushed hard for the extension of benefits. it covers those second while theing through the ruins of world trade center after the 9/11 attack. donald trump has canceled his visit to syria. dozens of israeli lawmakers said trump should not be admitted because of his, and to prohibit muslims from entering the united states. hillary clinton won the endorsement of the american federation of government employees. the union represents 600 70 thousand workers in the federal government and district of columbia. today president obama will sign the bill that calls for swifter changes for how teachers are evaluated. the legislation is a rewrite of

the no child left behind law takes power away from the federal government and gives it back to the state. the nominations are out for the 73rd annual golden globe awards. maxnation are carol, mad fury road, and spotlight. best television series drama and fire, game of thrones, and the outlander. it will air gin rate 10 on nbc. look at the top stories. -- it will air january 10 on nbc. betty: i have watched 10%. the highly touted tech startup that has raised hundreds of millions of dollars is now under heavy scrutiny. . closer look critics say the affordable lab tests are not what they seem to be. reporter is a -- interviewed

elizabeth holmes for the peas. a lot of us have been watching the company work $9 billion. what was she like? >> she is very charismatic. she has an incredible personal story. the kind of story silicon valley loves. she is a prodigy. she taught herself computer programming in mandarin. college.ed out of she started her company when she was 19. she has been driven and focused. she has been very successful at getting support from powerful mentors. she has a powerful board of directors that includes henry kissinger, former defense secretary, members of congress, some of the biggest investors in silicon valley backing her company. she has been under all of this cruelty lately.

what has she set about the criticism of her company? >> i think it has been hard for her. she is been on the cover of magazines. betty: she was not talking to press either. >> people were coming to her and , most to take her picture powerful women of silicon valley kind of thing. a couple of weeks ago it started with silicon valley and that kind of thing, suggesting the company is not using them right now, not being totally upfront about that. i think it was white devastating for her. because she is running a private company and because she has gotten such kind treatment in the media, i do not think she had the infrastructure in place to deal with the crisis like this and it really was a crisis. it was, and it continues

to be. david boys is a legal advisor. about this and the critics. this is what he said. >> they have published more data and made more information available than any of the other lab companies. it is in part because of the arguments going back and forth between it and competitors, is being challenged to do things no other lab company is doing. let me give you an example. no other laboratory company submits its tests to the fda. confidence they have in the lab tests. betty: why hasn't that been able to quiet the critics? right, other lab

companies do not. they are using tried and true technologies. the test and machines they run the tests on and are doing things that have been going on for quite some time. everyone knows they are a certain level of reliability. they do get approval before they buy the machines. they have developed all of their own technology. the tests and the analyzer machines that do the analysis. they do all of that in-house. they are saying this will distract the industry. that is why people are paying -- taking another look at them. a question wee could see an investigation into them? >> if they do not comport with the data, that could hurt them. i know they're working very hard to assemble the proof a they need to show the test better as accurate as the other methods of

there. at this point they will have to deliver on that because people are paying really close attention. people are paying attention to is because compensation is so generous. said, she is a media darling. we interviewed her in october before all of this blew up. lex for us, it is really about making sure we build a solid foundation. there are so many technology foundations that have grown too fast. cannot afford to grow too fast. we think about it city by city building out a framework and building on it as we can ensure the integrity of the service. betty: outside of changing her board around, what else is she doing to adjust the allegations?

>> they have been and what companies like to call still mode. they have been doing their thing very quietly and have been paranoid about sharing details with competitors. now they're are saying we will invite people into try it for themselves. they are planning to publish data in a medical journal. they have not specified when or theyjournal, but they say have the data people are asking for. they have submitted it to the fda to get the test approved. will comely they through. i think they're trying to gather up what they have and make it presentable so that people can come in and hopefully go out and talk about what they saw. sheila, thank you. be sure to pick up your issue of bloomberg " business week"

tomorrow. facing company management challenges is aig facing pressure from carl icahn to boost returns. ceo peter hancock announced he is shaking up management. the stock reacting to the news at this hour. i want to bring in our reporter who covers aig who covers -- fling -- bring in our reporter who covers aig. an interesting angle here. on this particular note, is this in reaction to carl icahn? >> this has been in the works for about a year. peter hancock was going to shrink the leadership team from 15 people to about 10. the thing that is really surprising here is who left. the people that have left, the biggest name is david herzog, cfo. he recently just joined the committee by the u.s. treasury.

people said he could been ceo at some point. he is departing. the other person leaving that is pretty surprising is john doyle. he is in charge of operations. replacing him as cfo is the former chief risk officer. risk is everything in an interim company. that makes some sense. his departure is really a surprise. what they're also saying is somewhat a mixed tag. now you have a lot of people that will have to perform. the plan iswhat next for the new leaders. possible success. , he was there since

2008. he is very well respected. of the senior management change, what else is on top that peter hancock had promised shareholders? >> he promised a re-shaking of the organization and the company. we will see what happens. people are already asking about kevin hogan, the guy in charge of consumer insurance takes a greater role in overseeing japanese unit. they have had trouble integrating units in japan, and some people want them to solve those units as well. the question, does this increase leadership. meaning will they increase this or give it away? have some breaking news here on an automaker, fiat chrysler. the u.s. imposing a $70 million on fiat chrysler.

the department of transportation finding fiat chrysler saying the company must provide missing early warning data. again, imposing a $70 million penalty fine on fiat chrysler. much more on automakers. staying on the road today, because volkswagen is turning a corner. we will hear from the ceo and how he is defending his brand. a road ahead for the prized possession. that is the ducati motorcycle brand. ahead.d that and much more coming up.

betty: welcome back.

breaking news on fiat chrysler. a $70 million penalty fine on your chrysler. i went to get some context on this with matt miller. -- want to get. seems tot chrysler have the biggest problem with this. multiple brands. not just chrysler but ferrari has had this issue. $70 million. reaction not negative. is a company growing in leaps and bounds. chrysler is the brand making all the money for the rest of the company. they are imposing the money because fiat chrysler is not giving them enough money,

right? >> that is correct. not enough money on injuries or fatalities. saidis something the ceo they will improve. so it is old news i hate to say. $70 million fine. negative, at least on the stock price right now. the autoer who covers news. the number of the number of vehicles is much smaller than previously thought. the automaker said defending the decision will not be easy. hans nichols spoke with the volkswagen ceo earlier and his life in germany. have they turned a corner here think they are. good morning to you in new york. they area view starting to get a handle on the

crisis. what they ended up doing is having a whistleblower program that ended at the end of november. better senseing a of the nitrogen oxide challenges and the co2 challenge. they seem to think the actual cost may be less than expected it. have a listen. >> when it comes to co2, the situation is no different. it diderent from what look earlier in early november. we had assumed 800,000 vehicles were affected. we have initiated a number of detailed investigations with the support of the german authorities. we cannot say the initial suspicion of 800 thousands affected. >> there are two strong indications this company does think they are seeing the light and the end of the tunnel.

they think and whether this without job cuts. yes, that is a volkswagen sign behind me. they have ducati motorcycle. those looks like they will keep on me. the volkswagen company with 12 brand is not going to change. >> no need to sell any of the assets. for theut what is next executives. >> i get they do next? to play assignment desk editor from volkswagen. matt miller needs to get down to washington, d.c. and it looks like he will make his first trip . have a listen. >> it looks like the technical

solution. it makes no sense. now we see with an agreement next week that will offer a technical fix. >> that is the latest. we heard from the chairman as well talking about how to maintain market share that will be a challenge. the topnk they air in position to do that here at volkswagen. thank you. hans nichols in germany on volkswagen. staying in europe. i want to go to mark barton. we are rising. you guys are hitting another low. check out this company. so many times we are fast about it falling. best performer in london. you know the story.

it was read at the detriment plan. that is a good story for glencore shareholder plans. is not alldes maker about dow chemical in dupont. it's may the target of a bid from chem china. it is rising today. i have only allowed 40 seconds. holidays -- there that. i will see you in 40 minutes. we will be back with him for the european close. we continue to make some new highs. abigail doolittle has the latest from the nasdaq. starting with apple. j >> we are starting with apple in gopro. eisen out with a bold call saying that apple could target gopro for a major acquisition if he says acquisitions are right for tim cook to make a deal in gopro would help apple catch up in the

area of drones. it has been a difficult year for shareholders of gopro, down more than 70%. the timing could be just right. -- the stock down more than 7%. shares priced at $21 per share are expected to trade very ticker.under the the company raised more than $400 million, making this i feel larger than square and match. betty: thank you. abigail doolittle live at the new nasdaq. as the volkswagen scandal winds mentioned it before, the ceo of ducati north american operations joins us. take a look at that bike. after the break. ♪

betty: returning now to volkswagen next chapter. the ceo tells hans nichols the vast vw empire will in fact remain together. think in just a few years we will see a more successful volkswagen company then we see right now. brands including assets, ducati and your stake in sc buyer, will those stay in the volkswagen family? >> these are all very successful, and there is no reason whatsoever to consider getting rid of those assets. betty: this news provides a nextmed asset for our guest, the ceo of ducati north america. no interview would be complete without matt miller next to me who owns a ducati.

i own a number of ducati's. looks like it is going to be one more soon. betty: keeping all the brands, including ducati. that is the news. are you feeling any kind of low back from the volkswagen scandal? >> not at all. happening.hings are this will be a record year. record for six months. you are continuing to hit a higher number of motorcycles you sell here in the u.s. you brought with you the new model. this is going to be a huge growth strategy for you. you are breaking into the cruiser model with this. >> yes. it wasa is to years ago a first step in the cruiser market. it was not really a cruiser that was the question. with this one there was no

question. the riding position. matt: do you think americans that are used to that big, heavy harleys will get into the liquid e?ol, lighter bik >> i do not think it will make a difference. the bigger point is the lighter position. the best transmission. the idea is entering the cruiser market. we have the engine. with the driving belt, a new for us. all points. betty: who is your target audience for this one? >> in the cruiser markets we have a lot of different population, which is very different. once aa is someone who

cruiser with sophistication, style, italian style, sophistication and all the electronic -- sophisticated. the idea is someone will go once a further and enjoy design and style. matt: will you sell $100,000 next year with this gekko >> i would like. betty: thank you so much. ceo of ducati north america areas mapped miller here. first time we have been on television and the u.s. an exclusive, a first. can i get on it? when we go to break? betty: much more on this ♪.

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from bloomberg world headquarters here in new york, good morning. i'm betty liu. u.s. stocks higher and climbing evermore. oil under pressure after opec says that crude production hit a three-month high last month. and how companies from aaa to volkswagen are handling damaging headlines and fixing problems. -- two important decisions leaving key interest rates at record lows with the fed decision coming down next week. about an hour and a half and a half into the trading session. let's go to the markets desk is lookinginocencio at the latest. we are hitting session highs a

little bit ago? amy: yes, we are right at session highs. yesterday we were hovering at one-month lows, but energy up thetoday are climbing indexes. the dow is up the most at .7%, here.e nasdaq up by .4% the markets have been tracking the fall in the price of oil after opec did push aside those quotas last friday. let's look at what it is doing. it is down by two thirds of a percent, pretty much near session lows. the same -- at pretty much not at the same level since 2009. let's dive in my bloomberg terminal and look at the global commodity prices. function.e glc

you can basically see all oil commodities are down today and here today. nymex crude is down by nearly 30%. brent crude down by 31%. gas commodities are seeing gains turnaround, betty, from yesterday. betty: what about the gains in that gas? ramy: this has to do with versus gas stockpiles the energy administration. they fell by 76 billion cubic feet lest week. you can see that is getting a very big leg up. right now it is up by 1%, happening after that data came out. taking a look at other energy stocks, they are the biggest sector gainer on the s&p, consol energy specifically. last time i checked, it is the s&p's biggest gainer.

chesapeake and diamond also seeing some tailwind off of that, up almost 4%. betty: ramy inocencio at the markets desk. let's continue with david gura who has our first word news. toid: president obama is set sign a bill that will look at how teachers are evaluating. it takes power away from the gives itovernment and back to the states. student still have to take federally required reading and math exams. permanent tax breaks will speed up talks on a spending bill. republicans want to avoid a repeat of the government shutdown we saw in 2013. funerals for the people killed in the california massacre will begin today. ofuneral begins for one these san bernardino county workers who died in the shootings. visited theamily

scene yesterday. northeastern university in boston will give campus police semiautomatic rifles. school officials say the weapons will be used if there is a high level threat. boston a please -- boston police oppose the plan. donald trump has scrapped a trip to israel. advisersnetanyahu's urged him to cancel the meeting republican presidential candidate. trump says he will reschedule after he is president. at the first word new desk -- news desk, i'm david gura. as thethese stocks market tries to fend off oil prices and higher interest

rates. will we see more of the same in 2016? we are joined by a blackrock chief global investment strategist. will it be more of the same in 2016? what do you think? >> i think some of these things will continue in. commoditiesg at under pressure. still an environment that is difficult for commodities with a weaker dollar, the climbing margins. there are opportunities, but it's going to be a tough year compared to 2013. betty: right, it certainly going uncertainch more year. given opportunities, is it going to be in equities? with caveats. we have a bull market that is going to enter its seventh year. they're a very few places

outside emerging markets where stocks are cheap. overall our expectation is equity returns will be on the low side globally. betty: we have an interesting correlations, right, russ? i know we have some charts. rise, throw up these charts in outlook forruss's 2016. inflation rises, where we see the rates. do you expect to the fed is most definitely going to raise rates next week given what we have seen in the last few days, and what do you expect in the next year? russ: we think that the fed is going to raise rates. it's high time that cycle started. the pace of is,

hikes and 2016 -- we think it is modest. likely to is appreciate, not just because of what the fed is doing, but central banks are doing. tighten,d begins to many other world central banks, japan,larly in europe, and china, will be easing aggressively and that will give the dollar they left. betty: guys, let's bring this up see this,ou cannot but emerging markets, exports, commodity prices, those will remain attached to china, as they have been over the last 15 years or more. certainly many commodities are tied to china. as china changes from economy driven by fixed investment to consumption, that demand for industrial metals will go down. that said, i do not think it is all about china. as we think about the broader

market space, there are countries that stand to benefit from these trends. lower commodity prices -- india imports about 85% of their oil. very energy prices is a significant tailwind for the indian economy. we have seen faster growth out of india than china in recent quarters. that is very different from what we just heard from ruchir sharma at morgan stanley, russ. he notes that we are still waiting for -- is the yuan going to fall further and what will they do about the debt blowing up? i guess i could argue about the terminology. i'm not sure the debt is blowing up. china has significant assets. the net amount of debt is manageable. it does not mean china will not be a source of risk. it does mean china will continue to slow, but this is becoming a

withheterogeneous space commodity importers as well as exporters and countries that have become better about embracing reform for some of the back splatters. are always trying to figure out, right, what are the big blacks won moments that are going to derail all of us? we have known -- what are the moments that are going to derail all of us? we have known unknowns. what do you think is the most risky known unknown here? : i think there are these types of view political risk, but i do not think the u.s. election is a significant risk. certainly china is one risk. the other is europe. we have a lot of events coming up in europe, a referendum on the u.k.'s place within the eu coming up this summer.

you have elections people will start to focus on in germany and france in early 2017, and finally you have this unknown about the largest refugee crisis since the second world war affecting european politics. i think that bears watching. russ, thank you so much. much more ahead in the next half hour of "bloomberg markets." business is working to keep shareholders happy. can aaa downplay that e. coli scare? the ceo apologizing. them play that e. coli scare? and volkswagen, trying to find its way out of the emissions scandal. and how are investors to metals

flashing? our investors reacting? they seem to be sharing these moves. ♪

betty: good morning and welcome back to "bloomberg markets." time for the bloomberg business flash. there may be more consolidation processing business. global payments is in talks to buy a smaller rival, hartline systems. no comment from either company. tryinging companies are to tap into retailers offering online and mobile shopping. a out a past that the -- b of

past of the annual stress test and persuaded regulators they could pass models. they could have been forced to cut dividends or stock buybacks. and a shakeup at aig. at the insurance giant being pressured by carl icahn. the chief executive among those leading. fire some of the top 400 investors and reported a loss in the fourth quarter. you can always get more business news at bloomberg.com. marketss head to our desk where rami ennis and seo has a check on company movers and men's wearhouse is one, inocenciowhere ramy has a check on company movers. like it mayt looks be regretting the purchase of joseph a bank.

right now you can see men's wearhouse shares losing a quarter of their value today. the company's cea pointing to tougher competition from other retailers and then i glued -- winning to fell ceo tougher competition from other retailers. after issuing% weak sales guidance for the next quarter. sales and profits were above analyst estimates, 50 asares are below the well as 200-day moving averages. moving on to energy -- first solar also a victim of weak guidance today. down 10% after saying its 2016 rough it will likely beat estimates, but sales might fall short of targets. its margin trends will also disappoint. finally in food, yum! brands'

shares down -- not as much as the other -- but still buy a three and a quarter here. accelerating losses after the retailer gave a less than positive view of its china sales. perhaps no surprise, a couple months ago we saw its china sales were not doing so well. november same-store sales fell 3%, and that was led by 9% plunge over pizza hut and this reversed an uptick we saw, betty, in september as well as october. ok, ramy inocencio at the markets desk. let's head to the nasdaq where avid it -- abigail doolittle is there for us. apple is something you are watching? and gopro.ple a bold call -- one says that conditions are "right" for apple apple to consider a gopro

acquisition. this would put apple in the drone phase of er. it has been tough this year for gopro. nasdaq, a system ticker, 21 under its dollars per share. it raised $21 million, higher than the map ipo and the square ipo. ready? ,etty: thank you so much abigail doolittle, there for us at the nasdaq. , an outbreak of nora virus, resulting in the temporary closure of a boston branch. the ceo apologized to customers. look at our quality of

ingredients over time, we have made great strides with better quality food, more organics, more local and sustainably raised foods. this was a very unfortunate incident and i'm deeply sorry this happened. betty: joining us now to discuss this, bloomberg reporter greg jim auto -- craig. ok, so craig, the stock is up today. stock iseem like the working? >> potentially. the stock has been getting battered. i think maybe people are responding to the apology. a little bit of a change in tone. they were criticizing the media. a bit of a change of tone from the ceo, steve ells. doty: the right move to

this? >> absolutely the right move today. if you asked me this question yesterday, i would say why have chipotle not gotten out there? ceo not spoken on this issue? betty: did it take too long? too long,t did take but maybe they did not know enough and they would not have been as sincere and it would have backfired. best to go out when you know exactly what to say and tell the whole story rather than a piece of the story. betty: craig, do they have a better handle on what is going on in these two separate instances? craig: in boston, they seem to have a better handle -- betty: an unfortunate coincidence? craig: you could say it is a

streak of bad luck. 120 people with noravirus. e. coli situation, it still undecided. even this morning on "the today ells saying we did hundreds and hundreds of tests and we still don't know. it's a difficult problem. betty: you want to know when it will be safe and if they do not know, you don't know. we have another comment from steve ells. let's play it, guys. in place have put practices that our epidemiologist says will put us 10 or 15 years ahead of industry norms, and i believe this will be the safest restaurant to eat at. betty: do you believe that, richard? inhard: the proof is always the pudding. what does that mean? does it mean previously they were not a safe restaurant? the real question is what do

they do about food safety? update, update, update. they need to let their consumers tow it is ok to go back chipotle. betty: i guess the key question is, when do they know? do they keep those stores closed? do they come out with a big marketing publicity campaign? what do they do here? a lot of this is you have to wait for the results. you can't say what you don't know and you can give a half answer to a question you don't necessarily have all of the facts too. they have to get all of the facts and know where they can go with those facts. at the same time, when those facts start to come together and there is a better story of what it is, i'm sure chipotle will get out there with a big, big where they will

be with food safety, and re-apologize again and again and again. craig, is there any precedent for this, is there a playbook that chipotle could follow? jack-in-the-box went through this. it was much more serious for jack-in-the-box. 700 people got sick. taco bell, that was in the range of two bullet. they faced the climbing sales for a couple quarters after that. it is a rough road ahead for chipotle. cdc,nk it closure with the get the marketing, loyal customers back in. ancannot think there is i overnight fix to what they are facing. betty: thank you. andks to craig giammona richard. as two central banks it diverge, the bank of england is caught in

the middle. we will discuss that and the european close. ♪

betty: we are moments away from the european close. bloomberg's mark barton standing by in london. we drill down to the most important stories, and mark, you guys are climbing back from some of these losses? stoxx 400y, is the going to close up or down? betty: are you asking me to place a bet? we do not gamble at bloomberg. will it finish lower or higher? betty: i do not want to place bets, but it looks by the momentum we will be closing higher, right? were on track,

betty for the seventh decline, but as you say, four minutes to go. is the trend your friend, betty? the bank of england, no change in rates. the bank of england fighting wages, fighting the oil price. was it a more dovish sounding bank? our economist at jefferies will join us. glencore, the great corporate story of the day. correspondent will be filling us in on that and we will be going to johannesburg to talk about the chaos and south african markets. onty, i am keeping an eye this. our own battle of the charts. ♪

betty: welcome back to "bloomberg markets." is 11:30 a.m. in new york, but it is 4:30 p.m. in london. let's bring it to mark barton as

we are wrapping up the european trading session. we are bouncing back up? mark: bouncing back up, glencore giving a boost to european mining companies. the european close starts right now. --"the european close" starts right now. betty: we will take you to london to johannesburg. mark, kick it off. mark: betty, check it out. .1 percent. [laughter] if we are down, it will be the seventh day. it has barely changed. interestingly, one of the losing stocks in london today -- what is happening in south africa,