conference. -- end of year press conference. this is a press conference that ranged as widely >> we have a guest in our covering thereau, white house for us. good to see you. give us a sense of what you felt was most noteworthy coming out of the press conference. angela: i thought president obama spend a lot of time building his legacy. he talked about what he has done and setting a positive tone for what he did in 2015. it has been a challenging year for him in the country. he wanted to highlight what he has done as well as talk about next year. he has one more year left and he things done. he sounded optimistic about what he sees out of the new congress with the new speaker and he laid

out a couple of areas, trade and criminal justice reform that he wants to get done and hammer those things out during his last years president. they focused on his tone. i did not notice him getting frustrated with the reporters. angela: even when the cell phone went off. >> he made a joke about it. was thata good mood or part of the strategy? >> he is heading off on two weeks of vacation so why is he not in a good mood so he did acknowledge town directly. he talked about how the fighter -- against islamic state will be a long one. we should not expect any quick victory. he acknowledged that in the past when he has taken credit for victory or said there is in regaining territory.

he said he knows there will be a step forward and outward. he softened his tone on been progresshas against the islamic state. tone was at the front of his mind as he spoke today. his ongoing about seven-year effort to close guantanamo bay. housems of what the white 's attitude, he expressed optimism. he will not assume that congress will say no do you think there is any real hope that that will get done before the president leaves office? resta: it is something he -- promised on day one and has not been able to accomplish. it is some you that he wants to do and he thinks he has the right reasons to do it. namely, money. he talked about the high cost of keeping those small number of

prisoners down to 100 at guantanamo bay but he was not quite ready to say he would use executive action. he stopped short of promising executive action. he is holding out hope for legislative action that can close that prison. >> this has been special coverage. >> don't forget to tune into our show. one of our biggest will be the former senior adviser to al gore and john kerry's presidential campaign. he is the advisor to bernie sanders. more "bloomberg markets" after the break.

betty: welcome to bloomberg markets. ♪ from bloomberg world headquarters here, good afternoon. i am betty liu. theks are tanking to end trading week. the biggest lunch since summertime. why they disappeared. and what are the markets driving markets lower? it is apple. potential softening in iphone sales. what exactly is going on? it did not take long for the new to shatter film records. it has raked in $57 million from thursday's preview. how much benefit will disney see

from this series? the close ofr from trade. what a week it has been. my head is spinning from them moves we have seen not just from stock split the asset classes. first time stocks. julie: it has been that kind of week. you had the run of early in the week with the big rally on the back of the fed. interest-rate increase and now we have this two day. all major averages are around the lows of the session. witching day.ple the expiration of futures and options contracts and it is an s&p rebalancing day. we could see more volume at the ofse in this closing hour trading and potentially more volatility. we'll keep an eye on it. we are seeing the selloff today and the deepest of the selloff is mirrored by the broadness because all the industry groups are lower financials are falling below are -- the lowest. mean fort going to

have and for those that larger brokerage operations? a lot of the cyclically related groups are down today. i wanted to point out the three biggest individual drags in the major averages. apple is betty mentioned. some are raising concerns about the supply-chain indications at what it will mean for iphone sales. disney is down after a downgrade . the company is overpaying for the rights to sporting events. microsoft falling after goldman thes said we were wrong on stock for two years as it went up. -- moved to neutral but that is not helping microsoft chairs. betty: we are seeing buying in safe havens. julie: that is one play so that is pushing prices up and yields

down. ironic again at a time when we are seeing rising rates from the federal reserve area go prices also, we have been watching them recover. the dollar has been lower today but we are seeing gold prices up by 1.5 percent or rebound. we wanted to look at crude which is existing in its universe area it was benefiting from the lower dollar but then starting to come off. we have some headlines from saudi arabia saying it is budgeting for lower oil. the weekly rig count came out and showed an increase in rigs. that has not happened in several weeks. it could mean an uptick in supplies. betty: thank you. let's get to first word news. brendan: president obama held his year-end news conference and took questions on iraq -- a wide range of issues. 6 million people have signed up

for coverage under his health care law. he talked about the budget agreement. wilddent obama: i'm not about everything in it. i'm sure that is true for everyone but it is a budget as i insisted. invest in the military and middle-class without ideological divisions that would have weakened wall street reform for rules on big polluters. brendan: here is the agenda at the end of the year news conference. he has to as she heads to california to meet families of the massacre victims. it will be the stop before he travels to a wide to spend christmas and new year's with his family. he is scheduled to return a few days after new year's to start his last year in office. presidential candidates are preparing for their final debate of the year in new hampshire. leads 59-20ton percent. 64% say clinton would do a theer job of handling

threat of terrorism. comparing with 26% for sanders. clinton 44-38% when it comes to honesty and trustworthiness. the white chicago police officer charged with shooting a black teenager was in court today. facing 56 counts of murder. that led to continuing protests and calls for reform. former subway pitchman jared fogle has been moved to a low security prison in colorado. than 15 yearsmore for possession of child whenever free and traveling to have sex with minors but is appealing his sentence. mother theresa is moving toward sainthood less than two decades after her death. the vatican said today pope francis has credited her with a second miracle. the requirement for sainthood. she won a nobel prize her work caring for the poor.

on these andre other breaking stories 24 hours a day at bloomberg.com. i am brendan greeley. are one ofe shares the big laggards today, moving lower again. moving toward the closing bell. down over 2%. it has not been a great december for apple. the stock is off 9%. the biggest monthly decline since 2014. what is driving the decline? apple is selling off after promotions including naming jeff williams to the coo post. ours dig into this with bloomberg editor at large cory johnson. dan eis. rbcave seen in the past downgraded the stock price of

apple saying there are concerns that iphone sales are going to shrink next year. is that part of the problem here? is -- it got ahead of itself and you see the supply-chain numbers come down. it comes down to growth. you are seeing the stock [inaudible] season.to the holiday the numbers come down and that is where it is a white knuckle period for apple. iphone seven is the optimism, we will see that in february and march but for now it will be a be perio -- bumpy period. it is going to be a nerve-racking period. couldget through, there be some cap allocations. the stock moves back. betty: what is going on there,

is there something going on with the supply-chain? is uncertain if demand is strong. the new model might be different. investor enthusiasm is not there. their growth is coming way down. the iphone 6 and six plus were such a hit. the bigger screen but the way -- they did 234 billion in revenue .nd that was growing 28% we are expecting single-digit sales growth, something more modest for this company. when you look out in imagine the places and ways they will grow it might be harder to come by. has seen chunking sales were a couple of years and the watch is a nascent product. this company is so big.

one of the things that apple has done to control demand is when they announce new phones they will expand the geography. have china on day one for launch there is only so much other places they can go to lunch phones that big. one of the other reasons you see slower growth. betty: what is special about the might justifyit and outperform? is going to do everything. is trying to figure out what is the next big thing. there is a lot of questions that with some of the promotions. they focus on the enterprise market. the iphone 7 is a long time

away. it will be a speed pump period. you are seeing that in shares. 28%y: how can they reheat a growth rate with a valuation like this? corey: it is an expensive item. replacing it with the cheaper watched as i get you there. betty: what can they do next, is there something they can do that can surprise us? dan: it is acquisitions. they have never been a big acquisition company. all consumer side, it is about enhancements to the smartphone, about trying to change their technology. maybe then -- they can buy it. that is what i think when it

comes to acquisitions, that might fit. that is the one that i would put an asterisk around. does that make sense? corey: they do not to acquisitions. -- and acquisitions. anything is possible. historically it is not how they grow. betty: if the stock continues like this could we see a culture change within apple or does tim cook seem like someone who is open to that? part of the culture of this company because it takes so many years to develop the kinds of glass they will use in the phones they will have two or three years from now, they take a long term approach and they do

not care what the stock did unless someone has to buy a boat. betty: you mentioned gopro a few moments ago. gopro as a on possible takeover candidate moved the stock today. the stock is up on this. dan: right now we will go to a surge m&a in 2016. but look at dinosaurs like oracle or hp, ibm. they will look to acquire. any of these companies, you could see m&a. that is something investors are focused on in 2016. betty: thank you. and cory johnson, our bloomberg west editor at large. closing bell.the stocks in a two day losing streak. earlyrst decline since september.

betty: welcome back. time for the is this flash. s flash.es rons being replaced by tills. a $5 millionon bond. the charges are related to his actions before he founded the pharmaceutical company this year. marketing problems. the company will switch its ticket symbol.- they will have a new website with a slightly different pyramid logo. most jobs will be in the back

office positions that will be cut. citigroup had 239 thousand workers at the end of september. you can always get more business news at bloomberg.com. forks have been selling off a second straight day following the fed's first rate hike in nearly 10 years. senior market correspondent julie hyman standing by. is john forng me rhees.- vo i am looking at the major averages falling to the lows of the session. we have seen them bouncing along at the lows all day. it is a quadruple witching day. how are you saying that play out so far? john: absolutely. it has been a spooky week with the fed, with the announcement on wednesday, the hike of way five basis points and the

quadruple witching today on friday. the real theme is more volatility returning to the market. and continued momentum to the downside at least in the beginning. there is a lot of headline risk right now. you have turmoil in the middle east, russia, turkey, etc. there is a lot of uneasiness in the market and that is where you see volatility creeping back up. that being said because of that i want to be a buyer of premium. long volatility, long option. you are looking at the russell 2000. under par -- under performed by 4%, down 6% on the air. the s&p is down 2%. it will lead any pullback.

i'm looking at two january expiration. i am not bearish on stocks in 2016 but we will see a lot more volatility before it goes down. lot of is 20 so it has a room to go higher. we get that 20 8, 30-ish level that we have seen it creep up to. betty: why do you think small volatilel they be more than the larger caps? john: absolutely. small caps tend to be more sensitive to these things than large-cap stocks. you tend to see more exaggerated movement with small caps. i am playing that as a directional, as a movement play. betty: talk to me about your exact trade. john: exactly. looking at two january and one 12 at the iwm at the straddle, january expiration, implying a movement of 477.

i want to align my downside strike price with that measured move target. and sell the 107 put against it with a net credit of $1.25. i am short the market but i am long premium. thank you, joining us from the cboe and chicago. we are seeing stocks fall near the lows in the session even as volume is relatively higher. it is up 15% for the s&p 500 over the 10 day average if you look at it versus the 100 day average. we are saying it higher by 26%. this could partially be an effect of that witching we were talking about. you tend to see an uptick on volume on the days of these futures and options expiration's. financials are down the most today, down by 2%. there is a lot of talk about

what higher rates are going to mean for stocks broadly but of course financials specifically since their invitations for the real estate market, the level of trading as well and as you heard john talking about, implications for volatility. betty: financials, checked one of the worst performance here on the s&p. much more ahead on "bloomberg markets." -- making wars, also and $57 million. can the film offset a decline in disney's cable is this -- business? stocks falling to the lows of the session. ♪

bloomberg'sfrom world headquarters, you're watching "bloomberg markets." i am betty liu. brendan greeley has more from our news desk. "bloomberg market day president

obama held his new and -- his year-end news conference. 60 million had signed up for health coverage. he talked about terror threats. president obama: it is very difficult for us to detect lone wolf plots or plots involving a husband and wife in this case this by the incredible vigilance that professionalism -- and the professionalism of security, it is not that different from us trying to detect the next mass shooter. we do not always see it. they are always -- not always medicating publicly. if you do not catch what they say publicly it becomes a challenge. brendan: he does not plan any public appearances when he stops in california to meet with

families of the massacre. he will return in january after new to start his last year in office. the house and senate have passed a one point -- a $1 trillion spending measure and lifts a 40-year-old ban on crude oil exports and revives dozens of expired text rakes. the bill goes to president obama. presidential candidates are appearing for the final debate of the year. 64% say clinton would do a better job of handling the threat of terrorism compared with 26% for sanders. he live -- leads when it comes to honesty and trustworthiness. how close is too close to the action? the wife of a golf star jason day was removed after a

collision with lebron james crashing to her at courtside. she was hospitalized and is out today. he is the world's number two golfer. can get more on these and other stories at bloomberg.com. we have less than 30 minutes till the close of trade. we are near the session lows. want to get to abigail doolittle. been a volatile week. what -- and% and now we are flat. and below the0 200 day moving average. may signal more volatility. acting as a drag on the

composite indexes apple. the biggest single point index mover is down having its worst month in two years amid reports of supply chain weakness. that could mean that is weak demand for the iphone. jpmorgan was at with this sort capitalntary and rbc cut estimates for the march and june quarter. a big question here maybe whether or not other analysts and banks follow suit. to end on a bright note, blackberry posted a better-than-expected fiscal third-quarter this morning. they posted a loss of three .ents versus two cents this sought -- stock has been surging. there may be a turnaround. .ost of the street is bearish .e has a speculative buy rating in an e-mail he said the company is making transition to the software platform where valuations are higher. this could allow investors to

bid the stock up more. betty: thank you. doolittle live at the nasdaq. shares are selling off. the reason is a downgrade. here is the key question. can disney overcome slowing growth? the numbers. down aremuch of ticket sales star wars right now? >> a lot. 91%. on fandango it sold more tickets in any other movie. this is a new record for thursday night previews. looking at $72 million overseas.

single day records. china opens january 9. it is making a lot of money. betty: what are fans saying, what are you hearing from them? >> fans are liking it. it looks like star wars and it is fun like star wars. it is satisfying for fans. is it a perfect movie? no. no movies are perfect but it could be satisfying. it definitely sets up the next installment. we will get a star wars movie every single now for the foreseeable future in they do a good job of setting us up and raising our anticipation and getting us on board for what is to come. betty: you're saying tons of sales so are there certain markets where it is more robust than others that you are seeing right now? >> not really. it is across the board. we are saying, that opening was 53%. of 25.-- above the age

we are seeing a lot of the older star wars fans, people who grew up with the original trilogy. it harkens back to the original trilogy. it feels like that first movie. a little bit of the second and third. they want to see the new characters and all characters. betty: they want to see the female characters. >> they do. 84% of people were most interested in the female characters. the big -- good news is that daisy ridley is the best part of this movie. new characters are the best part of this movie. watch out for that movie. will be a character to fall in love with. the director was 11 years old when he saw it.

it is incredible to think that way. the reviews overall have been pretty positive. the new york times wrote that the movie is good, it delivers the thrills with a touch of humanity. overall it seems like the reviews are positive. >> exactly. the director knows what he is doing. we are seeing a lot of nostalgia movies. the people who grew up in the late 70's, early 80's are the ones making movies right now. "jurassic world" which "star wars" is trying to top. we're seeing this trend of nostalgia going back into the 80's, early 90's. they are making movies right now and there is a large amount of people who want to see more stories in these universes. betty: i grew up in philadelphia. it harkens back to rocky.

is saying they want to watch this movie. this weekend will be the biggest of 2015. >> we have to see. 208 million, jurassic world, that is the current all-time est grossing weekend. numbers,ng these early it is breaking records everywhere. i would not be surprised because the reviews are really good. yesterday we sold more tickets than any day in the history of fandango and that will continue throughout the weekend. a pretty good is shot. having a roughre day. the dow is down and you can see where over 300 points. we're coming back from saw those egg losses earlier.

on stocks.ing watch ♪

betty: good afternoon and welcome back. biggestt some of the business stories in the news right now. jpmorgan has agreed to settle and ftc case involving disclosure failures. it was accused of failing to disclose plans of its own products. the bank will a $267 million and two of its units admitted they did wrong. and ending six years in the u.s. selling to blackstone group. is to cut debt.

shopping centers are located in the north east and texas. a british drug maker is going to buy a portfolio of experiential -- experimental hiv treatments. quitol-myers decided to efforts in virology. you can always get more business news at bloomberg.com. there has been plenty of news today on banking jobs. citigroup is planning to thousand job cuts following more than -- morgan stanley's news. planning to eliminate 1200 workers worldwide. for more, michael moore who covers banks. on the morgan stanley front we were expecting this news or was this is price here? michael: morgan stanley has been known for a couple weeks.

we first broke that. those cuts have been ongoing. there were some reports for more in equities. that seems to be more of the typical size as opposed to the fixed income cuts which were shrinking that business. citigroup was a bit of a surprise. betty: with the morgan stanley cuts will some of these jobs be taken back up? michael: some on the equity side. they have the top ranked equities business by revenue. a lot of these banks at the end of the year cut some of the low performers and tried to bring on some others. you may -- the fixed income is more of a secular shift to a smaller business. betty: what did you make of the citigroup cuts? middle: those are in the and back office. it continues this trend we have been seeing in the european

banks in the u.s. banks of trying to cut costs. revenue growth has not been the -- the past couple years so they are trained to do with a can. the biggest u.s. banks will -- are on pace for a lower cost base than they had a year ago or two years ago. some of that is on the legal side. a lot of that is replacing headcount with technology and bringing down their cost ace on a permanent level. -- comparedid these to what we have seen in the past or around the same time here in the fourth quarter for the other banks? michael: it is a smaller cut them we have seen in some previous years. they have cut a lot of the big chunks like jpmorgan is taking a lot out of there mortgage business and foreclosures have gone down. get is tinkering, trying to -- squeeze those last few cost

cuts out of the business. citigroup has over 200,000 employees so this is a relatively small cut. betty: amazing after those cuts, they have more than 200,000 employees. it is incredible. thank you. covering banks for us. in energy, crude oil extended the decline today. energy stocks have had a rough go of it. are there any buying energy?ities in we spoke with bruce richards, the ceo of marathon asset management and here is his take on that. bruce: energy is 18% of the high-yield market. you are talking about a couple hundred billion dollars of energy names that exist in the marketplace. there is 500 companies that represent that and we think the default rate for energy companies in the next three years will approach 30%. eight to 10% annual default rates for next asked the next three years. about 25 to 30%.

and as high as one third of these companies will be forced into some type of restructuring. 34.5 dollars to debut ti we saw earlier this morning, it will go lower. because of opec and what did not get agreed to at the last meeting. expect lower prices. go back and look at the charts and you will see that back in december of 2008, wti intraday touched 3240. we will test that level with rather high certainty and we will pierce that level and go into the 20's. >> what does that say about marathon, what is your appetite for these assets? are you sitting back and saying -- waiting for oil to pierce lower levels before you commit capital? >> we have cared back a couple of positions and added to some shorts. it is an ongoing --

short hard is it to energy names in the high-yield market right now? >> you can short energy names. >> you cannot do it in a single name. you can short bonds. do you haveexposure to energy? >> not much. 4% or 5%. >> of the total word fully oh. -- portfolio. cashat percentage is in and compare that to last year? >> percentage of cash has gone from 20% cash to around 40% cash. >> is it because you believe we are headed downward? cycle itselfcredit and how cheap credit has become and how dislocated the market has become to less liquidity in the system. i am sure it is a bigger subject

than just energy. it speaks to the high-yield market. >> it seems crazy to me in terms of historically. when was the last time you were heavily weighted in cash? >> it has been a few years since we have been this light in our position. >> reports are you are not alone. >> credit is back to 2009 levels in terms of spread in -- and it will add a lot of aperture 90. it is out with the new and we want to be positioned as the new year starts to buy what has fallen from grace. betty: that was bruce richards. the last full trading week of the year. the markets close in 10 minutes and you can see markets are selling off. we are bouncing off the session lows. ♪

betty: welcome back. markets are closing for the day and for the week in less than 10 minutes. julie hyman has your market check. we are coming back from a down day. julie: we have been bouncing at the close because of witching. pretty deeply in the red here, pretty firmly in the red for the major averages and for december thus far it has not been are typical december because we have had so much selling. if you take a look at my terminal i have the heat map of the historical performance. what you want to look at is this corner here. 3.2%, the decline we have seen in december thus far this year. that compares to the 10 year average for a gain of 1.2% and a five your -- five-year average of 2%. december's 10 to be a strong month for the market so this been ar thus far has not typical one. we still have a couple weeks

left. we will see if it turns around. a couple of the things i wanted to check, one of them is oil. oil had been one of those things that had been limiting declines in the market as energy shares were holding up better as oil was rising. it gave up its gains among other things. the weekly rate count from baker hughes showing an increase in riggs last rate -- last week. something that has been helping oil as we head into the afternoon was the dollar. the dollar has been declining after its recent winning streak. goldve seen copper and gaining. to look at the treasury market as we have seen money flow out, it is flowing into bonds. we are seeing yields push lower on the 10 and the 2-year note. interesting in this week that we did get an interest rate increase. betty: thank you. julie hyman at the markets desk. let's get more insight into this wild week for the market.

the best commentary section on the terminal. we have been talking about equities but what about the bond markets? what are the bond markets telling you? lisa: people are pretty excited coming out of the fed. seemed like we had momentum behind our backs. we were ready to go. we are growing slowly but we can keep going. janet yellen came out and delivered it perfectly. yields rose and credit rallied for the riskier corporate credit rally and that has reversed. you have seen on yields as julie was pointing out degrees for the u.s. government tenure and two-year. -- 10-year and two-year. the 10-year treasury yields will end next year between 1.9% and 2.2%. far below where we are now. potentially below where we are now. again -- one of the most

striking points of data today was that beige book that came out of china. it points to you have more of an independent look at the chinese economy which has been behind a lot of the global growth. this sets us up for another year of middling to negative economic prospects for the world. hity: do you think we got at all by china? quadruple witching is very much part of the story. there was a fascinating note from a strategist at j.p. morgan, this guy has been uncanny in predicting swings in the market east on -- based on program trading and derivatives. a week ago he wrote there is $600 billion worth of puts on the s&p 500 set to expire today and typically an investor buys those as an insurance policy.

if they expire out of the money meeting worthless, it is no big deal. asot of them in this case expiration approached were in the money. you could sell them -- exercise the puts today and sell the s&p 500 for 20 or 30 points higher than where it is trading. puts downward pressure because the people who wrote those puts, they sell the underlying stock market to hedge their losses and it can have a negative effect. for today at least that is the main story. check back on monday. another technical effect, people are pulling their cash and leaving. we saw some of the biggest outflows this year. the biggest for high-yield bond flows were more than $3 billion of withdrawals with leverage loan funds at $2 billion. you saw some withdrawals from investment grade credit. investors are keeping their

chips off the table. below $35,ces still that is having a ripple effect. that is a technical situation where you have money going and who is going to dive in right now? mark: it complicates the picture to have a fed increase before the end of the year, it clouds the picture a bit about what is going on in markets. betty: thank you mark regan and lisa abramowicz. archmore commentary, se bloomberg gadfly. that is it for bloomberg markets. we are accelerating some losses as we get to the close. ♪

>> we are moments away from the closing bell. >> alix steel is off today. i am joe weisenthal.

[bell] scarlet: u.s. stocks closing lower today, heading for the biggest two-day slump in three months. the s&p 500 is racing the weekly gain. joe: the question is, "what'd you miss?". scarlet: very icing green ways and on what is holding back growth. currency, we will discuss the charts that show china's position on the world stage. scarlet: and credit woes, how banks are structuring after being in a weaker spot in the market. we begin of course with the markets, pretty much a down day from the get-go. and if you look right now, we are pre-much closing at lowe's in the session. this is the worst days in september 1. i was just looking at the point to swing 3