from bloomberg world headquarters in new york, good morning. here is what we're watching this hour. spain's prime minister mariano rajoy wins the election but loses his majority. spanish stocks and bonds are falling as more uncertainty looms. global oil prices continue to tumble. it burned now reaching to -- brent reaching and 11-year low. we get box office results for "star wars: the force awakens." out of this world are the numbers. an exclusive interview with disney chairman and ceo bob iger on a successful star wars, and what is next for 2016. we have some breaking news on the housing market. let's go to the markets desk.

ramy inocencio has the latest. actually, the housing data is tomorrow. ramy: we will have that tomorrow when it comes out. let's get to the markets. u.s. markets, as you can see across the board, are up by .6% for all the markets. turning around from friday's route. two-day drop in the s&p in a few months. that may show you what is happening in the s&p today. no sectors are doing that at all right now. telecommunications is the biggest sector up .8%, financials, industrials also up about the same order. let's also go to oil. nymex crude is seeing a turnaround, its fourth day of losses in a row. handle, down4

1.6%. this is on the news that we expect the look to continue in 2016. as for brent, and the global benchmark, that is falling to an 11-year low. crude right now down at the $36 handle. a lot of the commodities have come down but there is one energy-related commodity that is actually up. ramy: natural gas. over the past several days, month, we have seen a drop in net. rising today, for the second day in a row. 7%.price is up by this is because the u.s. midwest is expected to get colder, in other words, normal lower temperatures. that would be the first week of january.

it's important to note, inventories are still 9% over their five-year average, and the biggest surplus since 2012. betty: thank you. meantime, let's check the first word news with vonnie quinn. voters in spain's parliamentary elections put the country's political future in doubt. that uncertainty is rattling the bond markets. tom mackenzie is with us from madrid. investors are expecting this to be an uncertain election. all the polls pointed to that. no one expected it to be quite as fragmented as we got. you are seeing that in the bond markets, the yield is up, selling off all day. 2.5%.ex is down that is because investors were hoping the ruling party, the ,arty of prime minister rajoy

would form a coalition with the pro-market citizens. that looks very unlikely now. the prime minister's future is in doubt as well with rival parties saying they will not support him. here is the timeline. horse trading stocks between the political parties on the ground here in spain. herery 13, lawmakers come and they have two months to form a government. if that does not happen, fresh elections. vonnie: thank you. that is the first word news right now. for more, go to bloomberg.com. betty: much more ahead. disney chairman bob iger sitting down exclusively with bloomberg after the record weekend debut of "star wars: the force awakens ." don't miss what he had to say about other parts of his business, including espn and china. and i speak to the currency grew

who called it right on china and the dollar. he says the dollar will have even higher. pimco haveack rock, in common, their love of european debt. why they are still a good buy in 2016. ♪

carol: i want to welcome everyone from bloomberg tv to bloomberg radio. in the house we have dave wilson checking out the equity trade this monday. lisa m from of its is also with us.

me start with you. the tenor of the market over the last week, a bit of a rally and then we pull back. today we have a rally. >> we have gotten used to these ups and downs in the past couple of months and this is the latest example. investors figure we are getting close to the end of the year, it is time for santa claus to show up in the markets. lookd that, you can through the main industry groups in the s&p 500, and you can see they are all higher. definitely a broad-based advance at this point. maybe some optimism, as much as anything, going into next year. 500, bouncedhe s&p off of lows three times going back to november. this would be the third one, assuming we see the gain hold up . a market that has shown some resiliency. we have a market that has been all over the place, a ton of volatility.

although some say this is historically accurate for what we see. lisa: there was a piece this morning from mohamed el-erian talking about, welcome to the year, 2016, where there is no direction. ig upsll see these b and downs. market will move until tipping points are reached. right now you don't have a clear-cut direction given to market from central banks, the way it has been the last several years, and you have investors crowding into a lot of positions , making for a rocky ride. i'm looking at spanish bonds. a big story, in terms of the political environment. lisa: a good deal of political concern that the anti-austerity movement in spain will block to leadership from

coming in and taking direction. out primeshould point minister rajoy lost his majority in spain, and that changes the dynamics. the amazing thing to me is that yields are not up more. now on the 10-year spanish bonds. that is nothing. this just shows the strength of the draghi put. there was a great store today talking about how jpmorgan, blackrock, all the big investors are seeing risky portions of the european sovereign debt market as potentially promising next year because of the draghi put. carol: they say that play is still on. another world in terms of u.s. equities as we wait for earnings. is that the next big focal point for the equity markets? >> it does become that, if only

because we have two weeks of a lag here before those results show up. looking at the latest numbers -- looking at my bloomberg terminal on the standard & poor's 500 -- carol: you were thinking of the santa claus rally. >> of course, you want things to end on an up note. that would bring the s&p 500 back to neutral for the year. in terms of earnings, people anticipating you will see a 6% decline for the fourth quarter. lower earnings in the last couple quarters as well. carol: how much of that is energy? >> pretty much all of it. that said, if you take energy out of the equation, analysts looking for a .6% decline from the rest of the s&p 500. some of the analyst commentary out there -- basically making the point that you cannot expect

stocks to do all that much until earnings start to recover. there is an anticipation that things will be better next year and the year after that. you have to find out if that is the typical optimism among analysts, or whether companies can justify the numbers out there. carol: lisa, talk about the economic front this week. it will be slow. not a lot of folks coming in this morning. lisa: i am long vacation. i am heading out tomorrow. actually, talking about vacation, i am taking a road trip and i'm happy to see gas prices below two dollars a gallon. but that brings me to oil. this is the big economic indicator of the year. prescient, next year will be a bad year economically. next year keeps going down. carol: if it is an economic story.

we have also said it is a supply story. a demand story. demand from china slowing down. carol: an interesting story on the bloomberg, those guys shorting the energy market got out too soon because we have seen energy prices go lower still. story talksand the about shortselling more broadly, and how many had a good year. one who had quite the success with lumbar liquidators, a position that he just got out of last week. a number of these opportunities, even though stocks are stumbling around, the s&p spent the year in a range, whole lot of stocks took a tumble. many investors were able to get on top of that. even if you think of david einhorn and greenlight capital, who has not had a good year, because of the stocks he has been invested in, on the long

side, has not done too well. short betshat his have gone against him. an interesting dynamic at a time when people are looking for stocks to move up. always trying to gauge her face when it comes to different issues. i am feeling ready to go on vacation. no, i'm looking at places like brazil. carol: a trouble spot in terms of the emerging world. lisa: looking at mining companies, thinking, does this make sense? could you see a rebound next year? brazil has gotten pummeled. i'm sure there is a lot of economic uncertainty, a new finance minister stepping in, markets are not impressed, but it could change. still latin america's biggest

economy. what are you watching this week, beyond your vacation? lisa: to see if there is any further turmoil in the markets based on the fed rate rise. carol: how about you? >> my vacation starts wednesday. carol: i am the only one working? thank you for being here. you are listening to the bloomberg advantage on bloomberg tv. stick around. ♪

and welcomemorning back to bloomberg markets. let's go to the markets desk where ramy inocencio is focusing on disney. the stock is down. ramy: it's interesting. i loved the movie. i saw it on saturday in 3-d. sharesld expect disney would be in the positive. we saw that earlier this morning, but as you can see, now

down 1.6%. with all that said, there is a lot of money floating around out there in the galaxy. "star wars: the force awakens" pulled in more than half a billion around the world, $517 million to be exact. that was here of in the u.s. and canada. movies,xpect to more toys, and theme parks over the years. we will see how this star wars saga and drama will keep going. that said, let's see how disney has performed compared to its peers year to date, up by about 14%. see its competitors, fox, viacom are down. stocks even after the lost its steam after espn lost some subscribers this year. some concerns over

espn. thank you, ramy inocencio. staying on disney, chairman and ceo bob iger sat down with bloomberg is morning. he spoke about star wars and espn, and what is most important for the company in 2016. robert: it is bigger than big, bigger than what we thought it would be yesterday. yesterday morning, we cannot with estimates for the weekend , over0 million domestic $500 million total global box office. sunday ended up stronger than we anticipated. so it is more likely to be in the 247 range domestically, even hiring internationally. we expect the total global take for the week and to be in the neighborhood of $528 million. andd: take us into 2016 beyond. what are the big project you are excited about, theme parks, movies? i am trying to absorb

this film that we just put up, and appreciate it a little bit. the biggest priority for us in 2016 is shanghai disneyland, as a company. we have a very strong movie slate on the disney front, on the pixar front. we have a sequel to "finding nemo." we have a sequel to "cap in america." we have a number of great disney films coming out including a remake of "the jungle book" as a live action movie. 2."ce in wonderland we are looking forward to the college football playoffs. there are a lot of priorities as a company. i would say, certainly for me, shanghai disneyland looms the largest. david: we have to talk about august, september. the disney stock came down significantly, tied, in most

people's reporting, to espn and loss of subscribers. can you describe that? thought there was an overreaction to what we said, and the market is the market. we have little control over that. it is clear, television is experiencing some disruptive forces, shall we say. lord knows what impact just calling it disruptive forces will have. it's clear that is happening. there is so much more competition, so much more choice for people, how they spend their leisure time. that is putting pressure on television to be great, obviously, and to be of great value. the price to value relationship has to be great and the user experience must be great. i happen to believe, if you are in a market that is being disrupted, you obviously want that are outucts there in a disrupted market. we believe we have that at the

company, including, obviously, espn. if you are in a market that is changing, you would rather have a strong hand. not have said, what is better than espn in that regard? i agree, the value of live is really important. the licensed sports, the original programming, the brand legendsat espn has, the -- allegiance of fans -- which is short for fanatic -- positions espn really well, even in a market that is being disrupted. we feel long-term espn will be fine. but we refuse to have our heads in the sand or be poly -- about what we're seeing in the marketplace. others may see it differently, but we believe there is disruption going on, more disruption ahead. we are spending a fair amount of time making sure we are well-positioned in that market. isiously, espn, we believe,

something of great value, even in this disrupted world. betty: that was bob iger this morning on bloomberg . the force has been with the dollar this year, holding onto it gains despite a slight decline in the past week after the fed raised rates. while most currency analysts rejected the dollar's strength this year, the number one forecaster of currencies this year is you bury partners, who correctly predicted the dollar would strengthen. that analyst is with me on the prediction he made for the year, also with his prediction or next year. you say there is more to come. background has not changed. i diverted gets in monetary policy across the atlantic. the fed is hiking. the ecb is responding with liquidity. some point, that will be talked about in the marketplace, the possibility of a further expansion of qe.

has hadpean economy every positive factor in its favor over the last year, lower currency, lower energy input prices, looser monetary policy. and yet, growth is struggling. they cannot reach 2%. on employment is coming down slowly from very high levels. betty: they have to do more. the least painful way for the eurozone to solve the problem. betty: clearly, looking at the elections of overnight in spain, there will not be a lot of help from the government. in fact, the opposite. i think we are very likely to have new elections at some point in next 12 months. there will not be a dramatic impact on the rest of the eurozone, but clearly, another factor pushing the euro down. path: described to me the

of the dollar in extreme year, what do you see by the middle of the year, the end? >> we expect the dollar to reach parity with the euro sometime next year, maybe in the spring. the next leg down in the euro will be prompted by further discussions or the possibility of yet another expansion in qe. betty: $.95? $.95, somewhere below parity is probably a good level for the dollar. , with parity, the dollar has spent about a third of its history about parity. there is nothing particularly special or cheap about the euro below parity. betty: we have less than a minute, but the azerbaijani minute, it is a victim of this oil collapse. we will see more like this? >> i don't think it is too dramatic.

this is a very tightly managed currency regime, where the impact on the market, and a number of players that have access are limited. i would tend to think this is leicester medic than the points indicate. clearly, we will see this realignment in commodity exporting countries. betty: some might say, what took the country so long with the decline in oil? thank you so much for joining us. more ahead on bloomberg markets. it is monday morning and one of the republican candidates has decided to drop out of the race. we will talk about that and why donald trump is now demanding an apology from hillary clinton. ♪

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betty: we're live from bloomberg world headquarters in manhattan. let's check in on a bloomberg first word news.

bonnie: the man being held charge with a fake bomb in france is a police officer. the man was detained today when he disembarked after the plane reached paris. the man accused of buying the rifles used in the san bernardino massacres is expected to enter pleas today. henrique marquez faces lessons and terrorism counts. it could mean 35 years in prison. authorities say he illegally bought the assault rifles used to kill 14 people three weeks ago. police killed the couple. worldn who led soccer's governing body for 14 years has been kicked out of the force. latter hast sepp b been banned for 18 years. several current and foreign officials are facing charges. he says he will appeal. that is the first word news.

betty: thank you. for thern to the race white house. one of the republicans is dropping out. lindsey graham making that announcement in the last hour. jennifer epstein joins us with this breaking story. if you are looking at the poll numbers, it's not really a surprise, but why today? absolute lasthe day for him to not end up on the south carolina primary ballot. he's a south carolina senator, so the idea of being on your home state a la might be a spoiler to some other candidate he might endorse and it's a little embarrassing to be honest it when you are out of the race in your own home state. as -- it had been expected for a long time. he is pulling less than 1%, generally speaking. betty: let's talk about the

democratic debate. i believe donald trump was named nine times during the debate. hillary clinton said essentially that donald trump is islamic state's best recruiter. now trump is asking for an apology. jennifer: demanding an apology. clinton: mr. trump has a great capacity to use bluster and bigotry to inflame people. bests become isis' recruiter. what is the response here? jennifer: the challenge for her is that there is no clear evidence that is happening at. there have been all kinds of experts in intelligence to say it is possible that the things he says about tanning muslims from entering the u.s. are the kinds of things that could be used in isis recruitment that

all the people who scour the internet and are plugged into the world devices say there are no videos out there. campaign is saying is there could be someone in the u.s. watching this and is horrified by what they see. they decide they become radicalized in that way, but it is pretty much as of now a false claim. maybe a little unfair to say he is encouraging terrorists. trump has a very thin skin and -- he can dish it out better than he can take it. betty: wall street came up during this debate. let's roll that. should corporate america love hillary clinton: everybody should. fornt to be the president

the struggling, the striving, and the successful. corporate america love a president sanders? mr. sanders: no, i think they won't. , they like hillary, they ain't going to like me and wall street is going to like me even less. betty: what did you think of that? has been his message all along. if anyone on wall street had any doubt, you have it right there. what he isas true to all about. thank you very much. much more ahead as we had to break. you can get all of your business news 24/7 on bloomberg radio. ♪

carol: you are listening to the bloomberg advantage of. we want to talk about what happened with the federal reserve raising interest rates for the first time since the crisis and what it means for the small business community. we have candace caruso joining us at bloomberg radio. it was a big deal for everyone to finally see the fed start to change its monetary policy. what's talk about what it means for small businesses. kind of impact and how quickly of an impact do we see on small business? : it's going to be very incremental and i don't to get will have a drastic impact on small business lending as far as the cost of the capital for the small business owner, i think it will be minor.

because it takes a while to trickle through the system? small,: you will see a incremental increase and , 1.5 at going up to one most. carol: what might it mean for the amount of small businesses that you see? candace: i don't think banks are , it doesn'tsue that enhance the profit or revenue perspective, but it does give them confidence that we are trending in the right direction. there may be more from those bank lenders in providing capital but there won't be any immediate increase in either.

carol: you have a birds eye view of what's going on in the entrepreneurial space. candace: we practice sba loans and have an alternative form of seatingsith retirement that keeps those tax-deferred and penalty free. that's accomplished through a qualified retirement plan. ancan be done with alternative, peer-to-peer, alternative funding as well. thel: you have a look at money flows and the demand as well as. what does it tell you about the small business community? candace: there is definitely demand. i still feel they are an

underserved audience. -- banks have a minimal return on investment, so they want to mitigate that risk. i have not yet gotten comfortable with the small business sector. confidence.ning i think the interest rate is helping them to move in that direction and there are certain verticals like franchising where they feel more comfortable, but it has been filled with those alternative marketplace lenders. carol: does any of that change in a slightly higher rate environment? candace: i don't think it does. we have been experiencing some recovery. advicewhat is your best helping in a retirement fund? what is your checklist?

candace: it allows them to gain interest to their capital and invest it in a way where they have an influence over profitability. a small business is something you need to understand the return on investment. incident buying apple stock, you are buying stock in your own publicly traded business. it does keep it in a tax deferred, penalty free status. it is something he needs to understand the risk level. we are trying to get an idea as we wrap up 2015 and get a good idea of what is to come, we talk about the rate environment staying low. what our small business owners

anticipating based on your actions with them? candace: the rate increase, don't have the liquidity to take on a tremendous amount of expense. they don't necessarily have the flow.- the cash it allows them to plan strategically and build into the economics of their company so that it will encourage the bank lenders. as well as make it affordable. i think that is the intention and we will have to see how individuals react. carol: what about in terms of the political environment? do small business owners have a preference at this point? candace: i think we are early on in the clinical debate.

whether it be through sba loans or peer-to-peer lenders, i think it is a little early to state that they have aligned themselves with one candidate or party. really to enable them to be successful in their entrepreneurship. carol: you mentioned bank funds favored in thebe bank community. any other areas you see them open up their pockets a little more easily? candace: definitely for established businesses, if you have a track record and can show the business has a need and the reachdepending on of that company, they want to see the financials to determine the viability and growth potential of that business. i think it is less vertical driven.

carol: what would have to happen with the fed policy for it to have a bigger impact on small businesses? candace: i think the way they have incrementally done it is responsible and i would hate to see them increase it to drastically because that will diminish their access to capital. carol: thank you very much. ♪

betty: good morning and welcome back to bloomberg markets. doolittleo abigail for more on the rebound we are seeing in the markets. abigail: the composite index is up nearly 1%, in part because of alphabet. shares are trading higher after pacific crest raised its price target. one analyst analyzed the other

bets and determined those pieces make the stock worth more. the company will be reporting a breakout of the segments for the first time in january around its fourth-quarter report. called italyst has the biggest near-term catalyst for the internet stock. influence onggest the market today is apple. and ericsson settled a legal dispute around mobile phone patents, reaching a seven-year deal, under which apple will pay ericsson royalties. this could help ericsson shares trade back higher toward this year's high. betty: abigail doolittle, live at the nasdaq. if you thought the new "star broke a lot of records, you should see the year etf's had.

exactly what kind of records are we talking about that we should get excited about here? let's start with flows. they are on pace to break 250 billion. numberey have the total of new launches. 276 etf's will have launched this year, which is the first time there are more etf's launching than business days. there is literally a j every day. another record is 20 new issuers launching their first new etf. these are like john hancock and jeffrey dunlop's etf aced on the total return strategy took in the most money. the one i find the most traded $98 is sp y

billion in one day, the most any security has ever traded. is driving that exactly? the same thing that has been driving their growth for 20 years -- the low costs. half the people attracted to etf's are liking that they are efficient. vanguard brings fees down to .03%. half the investors like that. the newrs like some of gadgets. these are smart products that tilt a fort -- tilt a portfolio and allow you a chance to outperform. currency hedged etf's took in $50 billion and will basically go long and short out the currency. tree currency would go long and short the euro. talk about energy etf's.

eric: never in the history of etf's has so much money been thrown at trying to call the bottom. or 2take a billion billion, about $24 billion have been thrown at etf that are energy sector etf store ones that track oil futures. you have retail investors, hedge funds and traders using etf products to try to call a bottom in oil. it will be interesting to see if they try to throw money at it. betty: we will see for 2016. thank you very much. another hot topic, the ceo of no more was ousted. resigned following charges of alleged securities fraud. here's what he had to say about those charges.

beating the person often trying to find the merits to make up for it? i would hope the government would not take that kind of approach. ouring us to discuss it is financial crimes reporter. our use apprised he was making these comments now after the arrest? guest: i was not surprised, given his active participation in social media. he said on twitter that these allegations are baseless. but it does not surprise me. the big question that has come up around this and i think his statement implies this, if he had not raised the price of the life-saving drugs for cancer

patients, this would not have happened. this case has a long history and started far before the last few months. we didn't really know who were definitely articles written about him and -- kly speaking, fixture inecame a the american public with the purchase of the single wu-tang clan album. the company he's accused of stealing money from to pay off unrelated business that's actually sued him in august and laid out many of the same transactions in the civil suit laid out in the indictment by federal prosecutors. we have some sound from our interview? martin: we all know drug development is very expensive.

a new drug can cost a billion dollars to develop. it's only fair that we make a profit, take that money and put it back in the patient's hands. guest: this is all -- betty: this is all separate from the arrests, but he said in this interview that he believes those two are linked. investors, there are several investors laid out in the indictment that felt like they had been wronged by him and his hedge fund companies. separate two very issues. he has not been charged for any crimes. he's no longer ceo of touring pharmaceuticals. betty: and there was news this trial for onehis drug was being suspended -- i

believe at uc davis. guest: the company is a very small company and basically waiting for investors to come in. the company is probably in a difficult position figuring out how to navigate its way forward. the company did release an sec filing that they planned to acquire another life-saving drug for another condition and do similar type of pricing guidelines that we saw at touring. witheo or founder charged securities fraud, it's difficult to run a public company, but it seeifficult for them to power and private companies. we will have to see if there is

a plea deal or if this goes to trial. .etty: thank you so much our bloomberg financial crimes reporter. still to come, the uncertain path ahead for spain and its economy following the prime minister's election win. we are talking to a top economist from madrid coming up in the next hour. as we had to break, a reminder that you can get all your on bloomberg 24/7 radio, on stations around the world on the bloomberg radio app or bloomberg radio.com. ♪

is 11 a.m. in new york and 4 p.m. in hong kong. welcome to bloomberg markets.

from bloomberg world headquarters in new york, i'm betty liu. here's what we are watching at this hour -- stocks and bonds are falling in spain after the prime minister wins the election but loses his majority. we are going to look at what could happen next. crude slides to an 11 year low. it could fall more as oil production continues to rise out of opec. plus we will hear more of our exclusive seat -- exclusive interview with disney ceo bob iger after the record shattering disney's new "star wars" film. we are about 90 minutes into the trading session. rebound, ang a steady rebound in the markets. my: the markets are losing a

little bit of steam. let's head to the board and look at where we are. the dow losing a little bit of steam, the nasdaq is up the most, but this comes after the worst two-day drop in the past three months. part of the reason is because of china. monetary policy should be more flexible, which many are interpreting to mean as more stimulus coming out to keep the country's growth from slowing even more. dive into my bloomberg terminal and check out the global commodities prices. nymex crude is down by about 1.5%. gas is also see natural going the other way, up by about 9%.

more on that in a second. most of the metals right here are in the green. this is the global benchmark and it is down by 1.4%. this is the lowest in 11 years. , rising for the second day in a row. midwestbecause the u.s. is expected to get colder. betty: and the dollar is taking a leg lower today. a knock onis having effect with metals as we see that affect in the greenback.

gold is up high more than 13 .ucks an ounce silver futures and copper futures up also. much. thank you very let's check in on the bloomberg first word news with courtney donohoe at the news desk. courtney: first, we look at afghanistan. at least six foreign troops are dead after a suicide, attacked their patrol today in afghanistan near the bagram air force base. the taliban claimed responsibility. an afghan official said the taliban overran a key district in the southern province. there has been fierce fighting in the region since last fall. authorities in china say man-made pile of dirt and debris may have triggered a huge landslide yesterday. rescuers are searching for 91 people believed to have been trapped.

passenger is being detained after a fake bomb forced the diversion of a paris-bound flight. the plane made an emergency landing in kenya after the device was found in a bathroom. the hoax was the fourth against air france in recent weeks. security has been tightened worldwide since the paris month. last aviation experts failed to retrieve information from a flight data recorder from a plane downed in turkey last month. 13 of 16 microchips on its data board are nearly ruined and the remaining three are damaged. down the plane saying it violated its airspace. russia insisted the plane never entered turkish airspace. that is a look at our first word news right now.

much more ahead in the next half hour. box office results for "the force awakens" were out of this world. we will hear more from disney ceo bob iger. and we will hear from a stanford economist who says the signs are already year.

betty: good morning and welcome back to bloomberg markets. "star wars: the force awakens" shattered box office records in its debut weekend. it could bring in 528 million dollars worldwide, more than the company anticipated. robey chairman and ceo eiger sat down and spoke not only about "star wars" but about espn and the outlook for 2016.

bob: we are a big company. something of this size has materiality. how big, i cannot say. what i can say is after "force awakens" we intend to make number eight and number nine. number eight will start shooting sometime in late january. for nineve a director as well as we are making some stand-alone films. including this, there are five "star wars" films in the works. either written, shot, about to developedbout to be in some form. lands,o big theme park one in california and one in florida, in orlando. in all likelihood, there will be star wars lands at our other parks. it is huge for our merchandise. it was one of the largest that

exists in terms of what we call consumer products and it is larger than we even estimated. we have a really strong program andnsing games from ea plans for a lot more. we are veryay successful in a high quality first film that loads extremely well not just for what's ahead creatively, but what's ahead commercially. universe any clue as to two other acquisitions you may -- you did pixar and then you did marvel and they both share some similarity. they generate great content and can be used throughout your franchise. how does it compare in size? bob: it's about the size of marvel. pixar was a few dollars higher.

it's not something we really breakout, so i can't say. they do have a lot of things in common and it starts with great storytelling. that is the heart of the company , going all the way back to 1923 when it was founded by walt disney and his brother really. it's all about storytelling. that's what creates the most value. we had in marvel, stories and characters and great storytelling. with george lucas and "star wars" and "indiana jones" which will be coming, in a world where there is far more content, intellectual property and choice, great stories still hold their value and actually stand out given the choice people have. stephanie: given the power over those franchises, how hard will

it be going forward to green light dig edge it projects that are not known -- big budget projects that are not known. a brand.ave it is still important to invent fresh stories. either fresh stories were older franchises or fresh stories not tied to anything that exists today. "inside out" is a great example of that. we will continue to do that. it is riskier than deriving stories from the known then the unknown. it's important for the creative people who work for us to continue to do it. stephanie: it's also a risk and challenged to take the reins from a critical genius, whose audience has high expectations. that is a risk. bob: i did not look at it as a

risk. i looked at it more as a responsibility. burden.ittedly a heavy you are taking something that is the crown jewel of storytelling. talk about mythology -- by placing it in our hands, that put the huge art of not onlyility on us, to honor the legacy of george lucas and star wars, but all the fans around the world who have such a love for star wars. that was bob iger, chairman and ceo of disney. i can't help but look at the stock price today, which is down, considering those numbers. maybe buy the rumor thomas l the fact. david: if people are speculating. betty: no doubt this is big for disney. david: it's not just a film. consumer products, theme parks, spinoffs, television programs, all of that. betty: what did you make of his

comments on espn? is it enoughed him to make up for some softness at espn? espn is a wonderful franchise and makes a lot of money for them, but he has said publicly the growth rate for espn is tapering off. he said in our interview that the linear cable business is becoming relatively mature. company the size of the walt disney company, if you take 3% or 5% off the growth of espn, that is a lot of money to replace. and you can imagine he is so much happier today talking about "star wars" than espn. what surprised you the most talking to him about their portfolio and the look ahead for 2016? he used the word bullish. they don't give specific titans

and he said that they wouldn't. he said they are bullish for 2016 and beyond based on theme -- themore movies shanghai thing opens this year. that's going to be in the spring. they have marvel spinoffs, they have pixar, they have a lot more movies, and they try to make each one a franchise. you have worked with bob iger. david: with and for. he is a true creative executive. he courted toward lucas to purchase lucasfilms ended the negotiation. he personally had a hand in -- deciding who directed and he watched the dailies as they came in. i talked to him and he had some real and put in some of the major creative decisions. he loves that. he comes out of abc. betty: he's not just about the numbers.

a closee has relationship with george lucas and harrison ford. betty: did you watch it? david: i took my kids yesterday. i loved it and thought it was fantastic. night.i'm going to say david: i won't spoil it for you. coming up, we will look at the economic writing on the wall. we will be right back. ♪

welcomeood morning and back to bloomberg markets. it's time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. the former ubs trader found of manipulated libor had his sentence cut today. a london court says he will serve 11 years instead of 14. three of the u.k.'s most senior appealrejected the

following a two day hearing. staples said it has offered to divest $1.25 billion in aftercial contracts office depot. the federal trade commission rejected the offer without making a counter offer. the company says it is willing to continue negotiations with regulars. pep boys says an offer from carl icahn is a better bid than one from bridgestone. they both want to buy pep boys to take advantage of the strength in the u.s. auto parts and service industry. bridgestone has to make another proposal by a wednesday deadline. shares of pep boys gained 16% this year through the end of last week. is your business flash for this hour. let's head to the markets desk

for a check on some of the company movers starting with joy global. ramy: joy global moving because of analyst recommendations after a call was raised to market perform from underperform. joy global up by about .5%. their acquisitions in hard rock mining are a good strategy, but it did lower its price target to 10 dollars. another stock moving today is tiffany jewelry, raised from a buy to a hold. tiffany shares are getting a nice ump up right now. jeffries says its 12 month price target is getting raised to $100. the main thinking is it is time to get a rare opportunity to get a high quality company at a discount. tiffany shareser did lose nearly 2%, their lowest

since mid-2013. let's look at the performance of joy as well as tiffany year to date. joy is in the orange and you can see joy is down by nearly 75%. 37%.ny is down by nearly if you are in mining or the high-end jewelry business, you have not been having a very good time. betty: thank you. steady growth in the world's largest economies helping to create jobs and push down the unappointed rate. will the u.s. economy be able to withstand the tighter monetary policy question mark tim kaine, a research fellow at the hoover institution says there are signs of a new recession brewing. he joins us from stanford. you see signs of a recession as soon as next year? : i do.

there are always signs of a recession. betty: what does that mean? i'm going to use some "star here.metaphors the force we are worried about is inflation. we are going into a year where we will see the unemployment rate be in the 4% range. jobless claims are insanely low relative to the population. forceble is set for that to really take off and the fed will be trying to keep up. and that will be recessionary. isn't signs of inflation actually signed the economy is growing? if you look at where wages are, we have 1.5 million job seekers, down from 2009, isn't that a good sign?

tim: it is. balance torestore the force and the federal reserve kept interest rates too low for too long. traders know they are accommodative. i don't think it has been healthy and we got ourselves in a bit of a trap. there's just very little margin other than for the fed to have been in a hurry. i think they missed their moment. you see in inflation perhaps getting hotter and hotter next year. you believe that is going to cause the fed to overshoot in hiking rates and that could plunge us into a recession? say they arenot going to overshoot. i have faith janet yellen will try to be appropriate. we've got ourselves on very thin ice. when it takes off, it will be hot and hard to extinguish.

that is the danger. is some would say there data out there that supports your view that americans and perhaps people in general are worried about the economy. there was an interesting story about how people googling about china, it is so different than it was in 2014. let's bring that up. , thehina economy collapsed china economy crashed, china economy crisis -- those are the top searches on china. there you go. wrote a book with glenn hubbard and we emphasized this point -- media coverage of china has focused on its growth rate, not the fact that they are much

smaller than the growth rate. but as soon as they start to contract or shrink, we realize the interconnectedness and, look at brazil for goodness sake. that was a big, booming story and now we do not have expanding trade in the trade we do have is with economies that are weak. china is the key to all of this. surprised you are saying oil is rebounding. look at azerbaijan -- they have plunged because oil prices have dipped so low and are going lower. tim: how much have americans saved because of cheap oil prices? it's about $100 billion. that is great, but compare that to how much does the u.s. pay regarding our debt? that is about 400 billion dollars, closer to 500 billion

dollars, and that's going to go up as the federal reserve raises rates. higher interest rates are going to weigh overwhelm the benefits from cheap oil. betty: thank you very much. are moments away from the european close. a lot of action in europe, including the spanish election. kind of a mixed session for you guys. : we have seen european stocks desperately clinging onto gains but you have to check this out -- this is what political instability does, engulfing spanish assets. we have an inconclusive election. for once, we don't see the two most prominent parties gaining a majority. just one single stock higher in spain.

every industry group is down in spain. down, oil ise down, so we will be looking at the drop in iberian stocks and barclays and of course, we are investigating the ongoing crude route. stay with us. the european close is coming up after this break. ♪

betty: welcome back to bloomberg markets. york and30 a.m. in new 4:30 in london where the markets are finishing up trading.

we wrap up trade over the next 30 minutes and a lot happening in europe. caroline: today of course we are going to be watching the fallout from the inconclusive spanish election outcome. stocks, lower. bonds, lower. the european close is up now. betty: we are going to take you from new york to london to spain in the next half hour, and caroline, kick things off for us . a mostly down day in europe. caroline: keeping up international as ever, and once again red across the board. remember how red it was on friday? we lost 100 billion in terms of valuation of stocks. today, it is all about political