a.m. in hong kong. welcome to bloomberg markets. from bloomberg world headquarters in new york, good afternoon. i am betty liu. here is what we are watching on this afternoon. stocks are writing the way up riding the wave of them down. forget about star wars, disney may find its next gold mine in china. we will hear from bob iger about company's opportunities and challenges in the world's most populous country. lead apple onuld leaveok for billions -- apple on the hook for billions. we are under an hour to the close of trade on this monday. we have your market check.

we have been looking for direction today. gettinge not exactly at. we are still positive for the day but we are actually near session lows right now. the s&p 500 is up by one third up for 10th dow is of a percent. up by 150 points at the start of the day. up 40 points. into my bloomberg terminal, check out the imap function. you can see the telecoms and consumer staples are here. the biggest leaders right now. been the biggest

library. it is now down by one third percent. let's go ahead and take a look at some of the makeup of the energy sector, including nymex crude. can see, interestingly, it has flipped into the green. it had been down by more than 2%. sinceat its lowest level february 2009 because of those global glut concerns we have been talking about. not seeing any recovery, down by years for brent oil. betty: what about airlines. they are rallying today. ramy: anytime you have a cheaper fuel, it could translate into better margins. by 2%.rly up by nearly 2%.

the ratings for 2016 prospects for airlines. to 9%ry profit could jump higher. fuel hedging is a benefit for cheaper fuel as well. gold right now is higher by about one and a third percent here. on track for two days of gains in a row. gold miners rising off that tailwind. not doing that for investors in bad for investors in the long. betty: now we get our first words news. another to u.s. personnel and one afghan war wounded in an attack. claimed is with

the ability for the suicide bombing. the republican presidential isdidate donald trump exploiting the anxieties of blue men, says president obama. he shared his views with npr before departing for a family vacation in hawaii. >> they are no longer getting the same bargains they got when they went to the factory and were able to support their families on a single paycheck. you combine those things, and it there will be potential anger, frustration, fear. mark: the president compared to some americans concerned about muslims living in the last two past this cremation against gays, black, and living in america.

jeremy carter, the grandson of jimmy carter has died. this comes right after jimmy carter announced he was cancer free. they are not sure about his cause of death. the astronauts took several braketo release the handles on the rail car and move it. it needed to be moved so that a shuttle carrying supplies could be docked at the orbiting space lab. back to you. betty: thank you. more on the markets. the s&p is heading a bit higher today. it was on track for its worst december 4 two the -- december since 2002. us.panel joins

this what do you make of directionless trade? mike: i think it is interesting. we were talking about quadruple witching on friday, and maybe declines on that day and thursday were being exaggerated by the options expiration. it is interesting to come in on a monday morning and see this strong open, futures up a strong. strong. it makes me wonder if jeff has a better sense. but if you're believing in santa claus, today is the day you would want to get in on it. it does not seem to be there. this seems to be an unusual and to the year -- end to the year. jeff: it is an unusual end to the year. , hong kong all

hyped rates as well. globalnting one third of gdp hiking interest rates. we have not seen as an a long time. that contributes volatility to currency, downward pressure on commodity prices and makes it challenging for economies that are dealing with capital flows to manage their economies. i think volatility is here to stay. betty: that is what everyone is saying, that volatility is here to stay. but surely, jeff, the rate decreases that we have seen have been the bigger market forces. the stronger dollar, based on the rate increase has to be better for some of these emerging market economies, no? jeff: it depends. from a market standpoint it would help them. -- from exports standpoint, it would help them. it is weighing on the economy at

the value of their debt is going up, meaning they had more to paying ba back. volatility,ing of when i looking at the vix index, we are elevated, but we are way down from where we were in the summertime. that has been pretty low for most of the year. the swings in the market, even after these big swings we have seen in the last few months still below average from what we have seen in previous years. betty: can we blame volatility for these declines? mike: it is this pick up and volatility. of sleep in this tight range at the beginning of the year. and now it is interesting it is 1.technical analysis on10

in august we were stuck in this narrow range, and now we are stuck in a new range below that. -- old range might look might be a lot more happy if we could get back to that. betty: very true. ech in 2015,iked t you like it next year. what is cheap to you? the mostancials of attractive of the cyclical sectors out of the commodities space. you have some of those financials being helped by qe in europe. economic growth in 2016, that is an underappreciated doria. we talk about the volatility of the risk of a but we will see some of the best global growth in five years. good news for financials, attractively priced. betty: what are people telling you in terms of 2016? mike: a lot of people talking

about financials -- betty: and how cheap they are. mike: that they are too. will we shift away to war in value-oriented approach? you thinks about what about this. the question i would have is the net interest margin will look better for banks, and insurance companies that have a lot to bond investments on their books. they will start a little bit more. at what point is higher interest rates become a burden to the financial stocks? interestet this net margin, but eventually it will hurt alone demand and it will cause more defaults. runway before we have to worry about the things? good question, and a hard one to answer. at the we have a long runway because we have not seen rates

move out on the long end of the curve of a loan. i do not think we will see so many borrowers priced out of the market place. atre is a little bit more the short end of the yield curve. --side of the u.s. you have particularly in japan, and one of buying of assets that helps to improve the acid growth. not just about new loans, but the existing loans looking better in terms of quality and demand. i think it will be good for banks and financial services in general. betty: jeff, thank you. and also thanks to mike reagan, our bloomberg columnist. type gadfommentary, on the terminal. much more coming up in the next hour of bloomberg television. ceo bob iger bullish on china

and star wars. ♪

betty: welcome back to bloomberg markets. it is time for the bloomberg business flash. some of the biggest business stories in the news right now. martin shkreli fired from his job as ceo at kalobios .

its offer for a pesticide and seed maker. is voting onard that before the end of the year. $100 million to public pension , to settle a suit over whale trades. and erickson and apple result a esolve a r fight over patents. apple will make an initial

payment, and then pay royalties as part of the seven-year tax. more on this deal, coming up. that is your business flash for this hour. still ahead on bloomberg markets disney ceo bob iger talks something other than star wars and you can -- espn. ♪

betty: welcome back to bloomberg markets. disney shares are dropping today, even as a new star wars film shatters box office records. estimates that global box office tickets were sold at $528 million or the opening weekend, which would set a new record. but it is much more than just star wars.

the company has lost subscribers at espn. joined bloomberg in an exclusive interview. they discussed investments in china. >> we are very bullish on china. we believe that the chinese , andmer is still spending the chinese consumer represent great market for our company. we are building shanghai disneyland, opening in the spring. we will announce an opening date sometime after the first of the year. we believe we are bringing a not onlyhat is only no high-quality, but will be in high demand among chinese consumers. stephanie: has there been any sort of slowdown? have you tempered that optimism in any way over the last six months? >> we have not. s andonsumer productss a

motion pictures have not shown any signs of slowing down in the chinese economy. you have a huge population base, sorowth in usable income and when you look at shanghai and put a disneyland there, you have access to a huge population base. hundreds of millions of people. 300 million people will be able to travel to shanghai disneyland within a three and a half hour trip, interestingly enough. that is a large consumer base. we are bullish. challengese are some to make that capital investment. what are the special challenges? anywhereare challenges in the world as you try to build something that is that large.

in china, we have had a number of challenges, we are bringing a product to market, meaning what we are actually constructing is very unique. the structures that we build anything park are extremely complex. they are not just buildings, but shows and rides. ofre have not been examples something that complex as what we are building. we have challenges in getting our right, but we confidence and where we are today. we will open in the spring and the rest will be history. will we see the same investment as in orlando in shanghai? see in you will shanghai is a park more technologically advanced than anything we have ever built. that will show in the attraction themselves as well is the

commerce transactions. the consumer will be able to buy their tickets, use their mobile devices in far more advanced and compelling ways than any other place, from a theme park perspective, then where we are today. betty: that was bob iger on bloomberg this morning. ramy is standing by with the options insight. ramy: thank you. joining me is jim strew group. always good to see you. you are looking ahead to next year, especially what -- what happened with the fed last week. you say we should have near-term caution. jim: and the near term, what we are set for most of the year, this in the near term, what we in attendance to hang around for about a month after

the fed begins to tighten. i put this out in january, it will be a quiet couple of weeks with the holiday. it will be unnoticed heading or into early next year. we think there is a shift in the equity volatility that began in august. the futures curve, instead of being 10 to 12 is probably 15. a gentle slope upward. more risk embedded in u.s. equities going forward. move to your trade. why are you looking at it and where is it? >> a lot of parts. catalysts.wo fourth quarter in late january, number one, when they decide not to go into a joint venture with enc. that adds 20 points to earnings in 2006. owns 80% ofer, enc vmw, which is down 30% year to

date. we think there could be a larger share buyback coming. we want to go out to april, we , 70 calluy 6070 cal friends. ramy: anything on the rise in? orizon?izon - - buyback that will stocke stop moving -- moving. stock isthat the trading closer to 19 times. it is really burned out here,

heading into this. hit,ink these catalysts and it could be significantly higher. ramy: thank you so much. more bloomberg markets coming up next. don't go away. ♪ bring your family and friends together

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betty: live from bloomberg world headquarters, you're watching bloomberg television. let's check in on the bloomberg first were news mark crumpton have more from our news desk. mark: a new trial date has been set for the baltimore police officer charged in the death of freddie gray. mistrial was declared last week after the jury was unable to reach a decision in the case porter, the first of six officers to stand trial. begin laterl will

this month, the other five will be tried in next month. lindsey graham has dropped out of the presidential race. he concluded that now is not his time. he was never able to gain s, withn in the poll numbers at or near 1%. michael,ter and the the man who hopes to succeed him have been kicked out of fifa. several other officials face corruption charges. active on amtrak from new york. it will stop or slow trains that are going to fast.

-- too fast. before we get to what is going on in the overall markets, i want to point you to how shares of chipotle air trading. the company is being investigated to its link to additional e. coli cases in three more states. more bad news around food safety. the stock is down 3% as we are left with about 30 minutes in the session. let's go to abigail doolittle, who is alive with more -- who is alive with more -- who is live with more. abigail: the indexes trading in a positive range. in part due to apple. now apple is modestly higher.

war aboutotal of reports of weak demand for the iphone. last week was about the weak demand. we had jpmorgan out with weak comments, talking about the iphone demand would be poor. this happened in early november. credit suisse came out with a added and goldman sachs apple to its conviction by list. the question is maybe will and analyst at apple or defend shares sometime soon? that he: abigail doolittle at : abigailq -- betty ban doolittle at the nasdaq. what does all of that mean for apple? after historic elections of the weekend, no majority government in spain.

betty: time for the bloomberg business flash, biggest business stories and the news. a trader found guilty of manipulating libor. he will now serve 11 years instead of 14. a panel of senior judges rejected the deal against his conviction halloween 18 update hearing. the board has determined that -- that could signal the escalation of a war. icon and bridgestone want to take it vantage of strength and u.s. auto parts and services. bridgestone now has to make another proposal by a wednesday deadline.

staples has offered to divest $1.25 billion of contracts. that is a larger figure than previously disclosed. the federal trade commission rejected that offer without making a counter offer. the company is willing to continue negotiations with regulators. and it turns out hot isn't so green. it is one of the nations most power-hungry industries. the 24-hour demand of indoor growing sites are taxing electricity grids. demand could intensify in 2017. advocates are trying to legalize for recreational use in several states, including california and nevada. that is your business flash for this hour. apple and swedish communications giant ericsson settling a

long-running legal dispute over the terms of a new global licensing pact. they will pay royalties for the next seven years. terms were not disclosed, so how big of a deal is this? joining me is matt larson, director of bloomberg intelligence. he has been following this dispute closely. tell us how big of a deal is this really? matt: this is a big deal for ericsson, big deal for their licensing business. it also sets a great precedent for apple and looking forward at the future of licensing revenue and how apple is sourcing various technologies that it uses in its of devices. been working hard to protect margins on all of its ipads, especially

after the smartphone wars. this is a good benchmark with ericsson having a very good license to negotiate future agreements and protect margins on popular devices. >> who is getting a bigger victory? matt: it is tough to say, especially with the agreements being confidential. if you look at what a are projecting for what the revenue should be, it is a 40% increase in intellectual licensing revenues. at the same time they settle before any major decisions in the litigation. they haven't gone to trial in any of the district court cases. in thevery early litigation, which leads me to believe apple got the terms they were looking for in terms of a royalty rate being assessed on the isis -- on the devices.

>> take a step back and tell us what is at stake and what the contentious legal dispute is over. matt: apple and ericsson entered into a patent licensing agreement that covers various mobile device technologies and some of the backend communication operations covering 3g, 4g, lte, communication technologies. how they connect to wireless and cellular signals. agreement,d into an that expired at the very beginning of 2015. the parties weren't able to reach an agreement on what their next generation licensing terms should look like. what wasry dispute was the proper percentage or proper payments that apple owes to ericsson for use of intellectual property. the bulk of the patents being

used in these technology are ericsson. the net gain is for that licensing set up. have ans this going to impact on other disputes? matt: i think it will. a lot of ericsson's patents are patents, essential meaning they read on industry-standard technologies. andcompanies get together decide what 4g, what lte is going to look like, and now 5g is on the horizon, when they contribute to those technical sanders -- technical standards they are obligated to brand terms. kind of sets an industry standard for a bar for what most companies can expect to receive or what they can expect to pay.

any --we read into anything did we read anything into the timing of this all? matt: they were scheduled for another trial in january. good timing, nobody has really drawn blood. they call into question the enforceability of the patents. it is a pr win-win for the companies. betty: matt larson from bloomberg intelligence. itsaba has hired -- to meet global effort to get rid of counterfeit goods on its website. he previously helped apple get rid of copyright infringement. we are 20 minutes away from the close of trade. have been zigzagging along all session long.

betty: welcome back to bloomberg markets. as u.s. markets close in just a minute, it was a down day across europe. big losses in france. stocks and bonds also drop in spain where the ruling conservative party basically fell short of a majority. what will this mean for trade? that is one of the topics the what a jew miss -- the what did team?ss clear coalition.

people thought the mainstream conservative and this free-market party may have been able to get enough votes. nobody knows how they are going to form a government. if anybody does, they are going to need the help of this modeler -- of the smaller parties. it could be a shot for the independence movement. a lot in the air right now. >> i thought they were losing steam going in. >> they looked like they were dead in the water. trouble greece had this year definitely did not help them. that will be one of the interesting things, how do they make a comeback? debates, somee

younger voters seemed to come back into the party. it just gets to this whole issue facing europe. this party continued to do really well. of the mainstream seem to figure out a message to regain credibility and gain voter trust again. >> is anybody expecting some deep policy actions out of spain? >> the good news from a market stability standpoint is it doesn't look like there is anything immediate. had wanted to restructure spain's debt, they pulled back from their goals that they wanted to do that. there is nobody advocating any radical change regardless of the formation of the government. spain is a huge economy, but it is more this trend we are

seeing. spain is having an ok recovery. it is one of the fastest-growing economies in europe. as unemployment is still high but the trend has been ok. even in spain things have started to go better and better, the fact the mainstream's parties are melting away support is pretty ominous. >> what are some of the indicators? >> i think in terms of growth it has been one of the stronger ones. there is not amazing growth anywhere. but unemployment is still pretty high because they were in such a deep hole. is thatnd when there much pain, you can start to recover fast, but there is still a lot of work and you can get a result like this. eddie bank think -- eddie bank -- betty: thank you so much. chief ofok, the

cumberland advisors will be joining them. let's join bloomberg radio. they are talking with vladimir the committeer of . >> we welcome our bloomberg television members as well. we continue out -- continue our conversation with dr. vladimir kvint. he is a member of the brenton woods committee. his new book a strategy for the global market. we want to return to russia. oil prices have tumbled. they have hit russia so hard. in moscow.rked you will the commodity scale as well. does russia have a strategy for dealing with this oil slide as

brent oil slides to an 11 year low and people continue to see signs of a worsening oil glut? >> russia does not have strategy. by requiredvered financial resources capital, human resources, and material resources. russia aligns on raw materials, natural resources. but all of these resources on oil and natural gas substantially declined. leadership was not ready for this because they didn't have a strategy. nothing is forever. developedas to be

with all preconditions for future changes. it is exactly what happened in russia and russia did not invest enough to science and technology. russia invested in 6.3 times less than the united states. and russian investment to everye and technology, single year for the last five years. there is no basis for future structural changes and natural resources. >> a very important question is how much lower will oil prices go? russia would not be alone.

few people that that oil at $36 per barrel, is this oil price decline over? >> my opinion is not bottom. oil price will continue to decline. it is possible to see oil in the next two or three years at $28 per barrel. serious challenge for green energy, for ethanol. oil is so cheap. there is a development in oil markets. the new potential for global oil sales in the united states. it created a very serious conditions for oil exports and countries in russia.

>> what does this mean for the power of vladimir putin? i have the russian that what is the impact -- what is the impact that may loosens his hold on power? >> it is time to make substantial structural changes. butas clear for many years due to the fact that oil price wasn't that was so high it in change much. for russian people the situation is very difficult. more than 20 million people are below the poverty line. it is roughly 18% of the population. and this strength will continue. problems makeical

it difficult for countries. they created long trends for increasing price for consumer goods, especially for food, beverages, tobacco. it is very difficult for russian people and the salary of russian people is decreasing. i guess it is mandatory for russian leadership to develop a strategy with drastic structural economic change. from china that they are going to take more stimulative steps to help their economy has boosted the metals. they also got beat up pretty badly. >> china is the biggest producer of steel. the situation is quite different.

still a legal test still a platinum and nickel. it used to be the soviet union was the largest producer. now china produces more than russia? and russia gives production at about 59 million that's of steel per year. as a result, steel production will continue to decline except production for pipelines for oil, gas, for oil products. it by 7.5%. precious metals now declining, i guess there's a future to increase -- nearest future price

for russia's metals. going to continue this conversation for our radio listeners. for our tv viewer, let's toss it back to bloody -- back to betty liu. much onhank you so taking stock on bloomberg radio. remy has more on our market check. >> we had two troughs and two crests and we are ending on one more crest. we are ending near session highs. the s&p 500 up two thirds of a percent to the nasdaq the biggest gainer today, up by eight tenths of a percent. pullre seeing a push and from metals most of the day. back inseeing a come crude. 2%had been down by more than

but it is at the flat line. it is now the lowest levels since february 2009. brent crude is not seeing any recovery whatsoever. it is down by 1.8%. this is the lowest level and 11 years. but natural gas is going the other way. nearly 9%, atby 9% right now. part of the reason is the forecast for a colder u.s. midwest in early january. two commodities, gold is pricing higher. games -- twotwo days of gains in a row. of course the christmas holiday, silver and copper, because in -- imports for china rose in silver and copper because china says it is reducing its

production targets. betty: we are climbing back up toward our high of the sessions. points, a now up 112 gain of 6/10 of 1%.

alex: i am out steel, scarlet fu is off today.

u.s. stocks closing higher today. in december. 3.5% joe: the question is what did you miss? alix: we track the move and where this weakness stems from. and spain's inconclusive election. we will stay that we will speak with tina fordham -- we will speak with tina fordham. a prettyt was lackluster day in terms of direction and where we were going. we had a rally. we are coming off of flows of the session. joe: we're back to tac