from bloomberg world headquarters in new york, i'm david gura. it's beginning to look a little bit like christmas. the economy grew in the third quarter. nike -- can continue to outperform? they report earnings after the bell. but first, let's head to the markets desk where ramy inocencio has the latest. ramy: we are near session highs, just about at session highs. it looks like markets are shrugging off a drop in existing u.s. home sales. they are at an annualized rate of 4.7 million homes.

nymex crude also trading higher and this is what is happening on the big board. the s&p 500 is up, the dell's biggest gainer up nearly 1%, the nasdaq up by .4%. let's look at crude right now. we are seeing its biggest rise in two months. nymex crude up by 1.25%. it looks like they are looking forward to tomorrow's inventory report. likely that inventories rose one million bills -- barrels last week. morgan stanley has set a rebalancing still may not happen until 2017. david: crudest biking. what does that mean gasoline? is down foras, it the second day in a row. to 2%, just off its session

lows. that fall has obviously pulled down the average price of gas at the pump, and taking a look at how that has happened, ever january 2000 nine, you can see it has risen. and we are back down to 23%. you can see the most important fallen belowit has -- and each licensed driver gets to save $550. a huge number there. before i send it back to you, david -- that may pair some losses if they are also invested in apple. right now, apple shares are pretty much trading flat. you can see how choppy the day has been. they are lowering the price target to 100 $30.

that is because -- $130. that is because of cuts in the apple supply chain. yearly fall.rst --david: mark crumpton has more from our news desk. have signed uple for obamacare them us your. the white house is calling the killing of six u.s. soldiers in afghanistan "cowardly." the americans were killed yesterday while on virtual near bagram airbase. they were targeted by a suicide bomber on a motorcycle. the taliban claimed responsibility. one of the victims was a new

york police detective serving in the air national guard. the attack raises the number of u.s. service people killed in afghanistan this year to 21. u.s. sergeant bowe bergdahl made his first of -- appearance before a judge on charges of desertion and misbehavior before the enemy. he has not decided whether he a court-martial with a jury, or one with a judge. if convicted at a general court-martial, he could get life in prison on the behavioral charge enough to five years for diversion. the man accused of buying rifles used by the san bernardino killers is being held without bail. the judge suggested enrique theuez poses a threat to community. he is facing weapons and terrorism charges. prosecutors say that he bought the rifles used by the shooters

in san bernardino. 14 people were killed in the attack. a texas grand jury has declined to indict anyone in the case of a woman found dead in her jail cell three days after her her controversial arrest. she was taken into custody after a routine traffic stop. shows mr. trump with the support of 28 percent of people nationwide. senator cruz is forced -- four percentage points behind. 20 days until the iowa caucuses. global news powered by 2400 journalists in 150 news bureaus around the world. i'm mark crumpton. david, back to you. the commerce department -- david: the commerce department saying that gdp has expanded

more slowly, lower than 2.1%. betweencials of wavered optimism and concern that slower growth from overseas will spread. growthtart with this number today. the dow revisions showing some growth. as you look ahead to 2016, what is your forecast. do you think we will get above 3% today? i think we are in a slow growth path. we have debt overhang. along with currency issues. i think it does look a little bit better in europe though. david: we will get to that in just a sec. this is something the fed cares an awful lot about. cut.d that rate was that symbolic -- that rate hike. was that symbolic more than

anything else? guest: it took some confusion out of the markets. it shows the fed does have confidence in the economy. we are starting to see wage growth. it is all in the context of a relatively slow economy, but still growing. david: you write in your latest note about trying to reach escape velocity and getting away from the sluggishness and slow inflation. if you look at the rocket ship, what condition is it in? guest: still struggling. i think this is the environment we are going to be in for quite some time. the nature of the recession and also due to demographics. we have an aging world. all of that leads to slow growth. posters obviously the child for that. it's also occurring in europe and the u.s.. david: looking back at the last

year, so much has been about the strength of the u.s. dollar and that is affecting so many parts of the economy. how much of a role do you expect that to play? year theer the last dollar has somewhat stabilized. i think we will start the anniversary off the effects of the rapidly rising dollar. you may expect to be prospects for u.s. earnings to improve a little bit simply because they do not face that had went going forward. david: we were talking about the fed rate hike. what effect will that have on emerging markets? we do think it is negative. emerging markets look supercheap . if you strip out the commodity base, perhaps not so. many are having significant problems. i think if you throw in the impact of currencies raising

rates, i think they still face a lot of headwinds. when we balance it off, very cheap valuations caused by currencies, we're just neutral on emerging markets right now. the one that we talked china, focusedis on the consumer side of things. do you see that turning a corner successfully in the next year? guest: there is a lot of stimulus in china right now. things do seem to be picking up. things are going to slow because the period of rapid industrialization is over and i think you will see consumers take up the slack a little bit. that does mean you will not see the robust demand on the margins for commodities going forward. athink china is undergoing natural slowdown. ared: you think that there is strength guest: in the equity

markets in europe? little behind a the u.s.. they obviously have a lot of stimulus. the market seems to like it some days, some days not. their earnings are forecast to be much better than the u.s. they were for 2015. we think that will be true for 2016. you combine that with reasonable valuations i think you have a better outlook for stocks next year. are looking at this exclusive of the stimulus and all of the economics in europe? guest: yes, yes, just the natural cycle. of course, if emerging markets can really stabilize, that will help europe quite a bit, and their currency relative to the u.s. has depreciated, so that has helped them. to ask you about equities in the u.s. and the -- we to which that is

have had that volatility. you think that will carry into 2016? yeah, you see the subpar earnings outlook and you put that together with the fed raising rates on some schedule, and i think it will act as a break to the economy and then you have to throw in the impact of oil and what you think will happen there. when all is said and done, i think lower gas prices are going to be a benefit to the consumer and you will see them spend more -- not just on apparel, but on other things. bernie, thank you very much. that's bernie williams joining us from san antonio. coming up in the next half hour of bloomberg television, does it pay to own stocks in guns, jails, and funeral homes? and nike reports after the bell. why it is one of the year from test performers. in remarkable triumph in rocket technology for spacex.

♪

david: welcome back to "bloomberg markets." i'm david gura. it's time for the bloomberg business flash. the biggest business stories. he is leaving pimco. he managed separate accounts and 28 months of assets with $50

billion of pimco. exit is unrelated to investors pulling 500 million dollars from the group since 2013. boeing will fail to meet a deadline to show the reduced risk of air tank explosions. the fuel tank instructions are part of the effort to address 747lems that cause a boeing fuel tank to explode over long island, new york back in 1996. the -- the president of the hollister brand will assume a newly created position of chief merchandising officer and that is effective immediately. and the forces with disney's first crack at the "star wars" franchise.

it keeps getting stronger. 288 $.1 million 8nd the global figure, $610. million. that is your bloomberg business flash update. coming up -- gun stocks, coffins, weapons manufacturers, the grim investments that are the key to a winning portfolio. ♪

david: welcome back to "bloomberg markets." jails, cigarettes, coffins. these are the ways one investor is making his money. he has stakes in what some would call grim stocks. talk to me about this company. this is not from win king james in 16 02 -- ck

max: it takes its name from that , but that was a really long time ago. they are in richmond. they are an investor i -- i think you hit all of the important ones. they are the biggest shareholder of the biggest gun company in the u.s. -- which is ruger. they also have an amazing array of investments. to be fair, they also have mattress companies, but they have these holdings and not just companies that make guns, but companies that make ammo, really big weapons. i think they just got a contract to manage part of the nuclear arsenal. it's quite a portfolio. wanted to talk to the guy who founded this company. that did not happen. he declined. is this purely profit driven? max: the guy has a great name. it stephen goddard. but ild not talk to me,

did talk to one of the people that helped him get the company off the ground. he said that people allow their motions to get in the way and steve does not do that. i guess what he would say is there just good stocks. and apparently he's not even particularly a gun enthusiast. right?is that by no means is it characterizing itself is outside the norm by investing in these. it's not as though the company has camouflage backgrounds. there are an interesting group of investors. have quinton toppled in recent years and now they have investors in some of the biggest pension plans in the u.s.. is one ofllister's them, and we remember after the most recent school shooting,

they said they would divest. big deal.was a that's all of the retired teachers in california and we andsitting in manhattan, the teachers fund also had a investment -- i think it was like $30 million. on one hand there are probably people who find these distasteful. but if they are good stocks, the investors have to have an honest conversation about where to draw the line. david: i heard everyone to read the article. a fascinating conversation about the way the gun industry looks. our health care reporter is here with the details -- let's start with the headline ever. 8.3 million, more than forecast. how big a deal is this? this is a big deal for people investing in hospitals, televangelist, also politically

people trying to see if obamacare will be something to invest in? david: why would it be surprising it is so much ire? -- so much higher? reporter: one of the things the government has put a lot of effort into a saying, look, there's this thing called the affordable health care act. just really making people aware. and also that they can afford it. david: how much has the enrollment changed from last year? importantthere is one element in this david -- and thatis just the 38 states have this, and so it doesn't include new york, california. one additional state is included, hawaii, this year. david: i'm interested in the

political dimension. we are headed into the elections. is this something -- this is something brought up by candidates. are the democrats taking this mantle up as something important to show the success of, the affordable care act? reporter: absolutely. hillary clinton is very interested, bernie sanders as well. and marco rubio talking about how he has undercut obamacare. try to take on the law. i think this will continue to be a very political issue. david: how has this played out from this year versus last year? they talked about how the enrollment. would be extended? have we seen that in the past? reporter: going back, the first ?ear, things went poorly, right this year, much, much smoother. they did have to extend the deadline to get days. essentially they could not

handle all of the people who wanted to sign up. going back to that, ira member the structural reform after that catastrophic first year. they were going to bring more people in from the technological side of things. has that worked out well? reporter: they made a lot of improvements to the website. upgraded. they are telling people these are these prescription drugs covered. they're rolling out features -- is the doctor, is the hospital you like to go to covered? -- 8.3lest you seconds million, will that be the final number? reporter: more people will continue to sign up. people generally have until the end of january to enroll. david: ok, thanks so much. breaking news on enrollment in the affordable care act. coming up, athletic giant nike reports earnings after the bell. the stock is on a tear this year. we take a look at the outlook

for next year coming up next. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.

david: live from bloomberg's world headquarters in midtown manhattan, you are watching bloomberg television. let's check the headlines. mark crumpton has those from our new stuff. mark? mark: -- mark: david, thanks. iraqi security forces are making progress read taking the city of ramadi. of ramadi. the city talks aiming to find an end to syria's civil war will restart next month. that is the word from a u.n.

official. diplomats will meet in geneva, as they did for the previous round of talks. the piece per basel was crafted by russia. it does not mention what should be done about syrian president bashar al-assad. western powers want him out, but russia backs him. the families of the victims of sandy hook fell elementary split ahooting will settlement. the settlement was filed against the gunman's mother's estate. they will split the funds from nancy lanza's homeowners insurance. a bomb hoax above a paris bound man found the package and reported into the crew. this was the fourth hoax directed at the carrier since the november terror attacks. local news 24 hours a day, powered by our 2400 journalists and more than 100 50 news bureaus around the world.

i'm mark crumpton. david, back over to you. david: thanks so much. the wayl ladder leading higher -- energy. ramy inocencio is here with the budget report. is nothe usual ladder the laggard today. nymex treating -- trading at a premium to brent for the first time since july. taking a look at where those two stand right now -- nine max crude is still trading at eight -- nymex crude is still trading at a premium. rent crude is down by .6%. some analysts say the possible listing of that -- lifting of that u.s. export ban may be giving a lift to nymex crude. brent crude is definitely not seeing any love. this is a second day of gains in the biggest jump in a week as

nymex crude rises. and finally, natural gas is falling today, basically because of warmer winter weather forecasts. it is at session highs. right now it is up by 6.2%. the reason for this, it's 2016 guidance we saw monday, one oak saying it expects basically to keep its current distribution, into 2016. definitely being an outlier, especially after natural gas is falling. tomorrow is supposed to be 70 degrees here in new york. can you imagine? david: i can't believe it. ramy inocencio with our spdr sector report. can nike continued to outperform will the strong dollar slow it down? returns itsssfully rocket to earth. one giant leap for space travel. ♪

david: welcome back to "bloomberg markets." i'm david gura. nike shares are north of 36% this year -- up 36% this year. they are working in athletic and casual. we want to bring in matt company, who covers the for us at bloomberg news. what is driving this growth? 35%, 36% is sizable? it is china, part of it is north america. one of the key drivers, they want to double the business for 2020. there's a lot of competition for the women consumer. lululemon, that type of yoga wear apparel -- the other big thing is they, going forward,

they want to do more of their own selling, so more through their own stores, their own website, which again could be dicey because they could go customers as foot locker. we hear about the atrophy of customers going to the mall to shop. how is that affecting nike? people are not buying as much apparel, people are not doing as much discretionary spending, and that has not applied to athletics. so, the leisure trend is kind of made fun of, but it actually is a trend and people are buying more sneakers, more yoga pants, it's becoming everyday wear, where as before people were wearing other things. david: and more accepted. is it a global trend when you look at nike's design globally? yeah, for sure.

it's definitely a trend in europe. it's not just in the u.s.. and it's all companies in a two to athletics. locker, under armour is benefiting from this. it does not seem to be slowing down. china's economy is a question mark. -- have they are performed -- will they keep growing? sales outside north america. if that takes a bigger hit, a chunk out of sales, that could hurt them, too. this ambitious revenue target, is it looking likely they will reach that? matt: i think so. if you look at the actual growth rate per year, it's like a 10% growth rate, what they have done the past two years. but again, that is predicated on them doubling business, taking

the online business. i think it's like a billion dollars of their own what they sell through their own websites to $7 billion. it is ambitious. but people have doubted nike and the past and have been proven wrong. there are lots of questions about is this stock valued to high and the stock keeps going up. david: thanks very much. that is matt townsend of bloomberg news. of oilsands is facing challenges as it tries to fend up a takeover bid from suncor energy. itsdian oilsands has missed production guidance every year since 2010 and it just got hit cut.other production pamela richie joins me. talk about this hostile takeover. pamela: this is the biggest hostile takeover we seen in the canadianold signs --

oilsands region, and the company is canadian oilsands as well, which is a little confusing. this is something investors are watching very carefully. the company has had a tough time proving it is a viable standalone company. they do not need investors to vote to take it over. and here it is hit on the production side of things again. background on suncor, which is the acquisitive company here. it goes back to the early days in canada, when the technology became available to essentially mine oil out of the ground in these conditions. and suncor is at the forefront of that. suncor is also a company that 2%kshire hathaway owns a stake in, and they took that stake shortly after they dumped the stake in on mobile. this was the oil holding to replace exxon. former exxon

executive there. suncor is about 12 times bigger than canadian oilsands, the target here. it has refineries and everything. a fully integrated company. just little background. the ceo of is canadian oilsands saying? what is his argument? his argument is we are just fine on our own. syncrude isde -- the target. it is an asset split seven different ways. canadian oilsands, the company, the largest shareholder, followed by imperial oil, where the parent company's show, and suncor has a share. suncor would like to take over canadian oilsands and be the biggest shareholder on this project. the argument from canadian oilsands is it manages the part

of this project very well and does not need an inquirer to come in. they are having a tough time making that argument because productionissing targets, a patchy record, and suncor is well known as a company that is able to cut costs and bring things into order, even in a very difficult operating environment. what is the ceo of suncor saying? what is the william saying? what is his case? you need usntially, and you would be crazy not to accept this offer. shareholders have until january 8 to make a decision. much. thank you very pamela richie, anchor at bloomberg television canada. we will bring you more on spacex's historic landing. that's coming up next. ♪

david: welcome back to "bloomberg markets." for the first time in history an unmanned booster returned safely to earth. it touchdown at cape canaveral last night. it marks a huge triumph for spacex founder elon musk. what does this mean for the future of space travel? west"g us, "bloomberg anchor emily chang. this was something spacex tried to do recently and was unable to do. milestone for elon musk. he tweeted out "welcome back, baby." the samehey try to do thing. the rocket exploded. today, it happened without any

incident. the rocket taking off, the rocket falling back to earth with a nice, soft landing. this means spacex can now do this more cheaply than any other company in the world. 61y can pull off a launch at million dollars. of course, jeff bezos and blue origin did accomplish something similar earlier this year, but that rocket was smaller, it did not go as fast, and spacex has the lead when it comes to the cost. jeff bezos tweeted "welcome to the club," which was congratulatory, but also sort of i got here first. space travel can be cheaper. that means more missions, more explorations, a mission to mars is a realistic possibility. dreamon musk's ultimate is to go to mars, colonize it, and i there. outd: and a rivalry playing

on twitter with backhanded compliments from silicon valley executives -- but how crowded is this space? are these two the vanguard? emily: of course there is blue origin and spacex. they are probably the biggest contenders from a private perspective. their arrivals around the world. there are a number of companies in europe trying to pull this off. spacex says the lead when it comes to companies worldwide. they also did propel 11 different cellar lights -- satellites into orbit that are circling the globe. what is next for them? it's not can they pull this off once, but can they pull this off every time? if a mission fails it's incredibly devastating, it's incredibly expensive. david: one other story you're paying close attention to, and at tradition request for kim dotcom, under scrutiny for

copyrighted- things. our member your exclusive from a couple months back. let's take a listen. : i believe in copyright. i do not believe in copyright extremism. extremism is if you are a hollywood studio and you release your content in one country first, the united states, and roll it out to over a couple months and other countries around the world and expect the internet community in all of these different countries to wait for the relays. netflix herenched in new zealand. the catalog of content you can download here is roughly 10% of what they offer in the united states. that is completely unfair. and because people do not get that access, they are looking for the stuff elsewhere. so, it's a problem created by the content creators. he is at, emily, and

this hearing today. we are supposed to hear today whether or not he is extradited? emily: a judge is going to decide whether there is enough trialce for him to stand in the united states, if there is enough evidence that makes it worth it to extradite him back to the country. he has been under house arrest in new zealand for the last three years. we know about that infamous raid on his big mansion. his assets have been frozen. he is now in an apartment which, to be honest, is not too shabby. he refers to it as the pirate ship here at his argument is megaupload was a filesharing service like any other, just made efforts that to take down pirated content and that hollywood perpetuated the problem. but at about 5:00 p.m. pacific we waiting for that decision. david: all right, "bloomberg

-- we will have more on that extra engineering, i'm sure. checking where the major market indexes are. all in the green. i want to go now to taking stock with kathleen hays who is talking presidential politics. i also want to welcome our bloomberg television listeners to our radio broadcast. we welcome mark halperin, as we do every day. is donald trump your lead, mark? kathleen, in a picture from the norm, we will be leaving with donald trump, talking about his battles with hillary clinton for yesterday, our sense was it was good for both donald trump and hillary clinton. now we will explore where the latest round is still to his advantage or hers. kathleen: what is your view?

i know that u.n. and megan murphy, and for john heilemann this week, had a lengthy discussion. what do you conclude? mark: i think this may be more dangerous for her side than it is for his. this place to the trump brands -- unvarnished talk, not being a normal politician. on the clinton side you have seen today she has made comments indirectly about it, but she and her team have shied away from directly engaging him up until now. i think they recognize that whether trump ins up as the nominee or not, it's not an hillary clinton's interest for this campaign to become a gutter herl. she would rather keep past, her husband for past, she would rather keep that out of this campaign. and trump will have no filter or no reservation about making that part of the dialogue. again, mark is here to tell us about "with all due 5:00 p.m. wall street

time on bluebird television and bloomberg radio. ted cruz, this is what we have been waiting for. having donald trump look over his shoulder yet again and ted cruz is surging ahead now. has pulled roughly even or ahead of trump. roughly even a national polls. at the highest level in any national poll. again in a situation. in any every -- in every other someone has gained on trump, he has lashed out. now they have detente. strangeyou have the situation of trump leaving alone a guy who is, at this point numerically, and in terms of fundraising, ted cruz represents the biggest threat trump has faced to date given where we are in the calendar, and yet he is fighting with hillary clinton and not ted cruz. you think itt do is? are voters getting tired of donald trump? have they heard things -- he resonated, but now he has gone too far?

and how much is it ted cruz from message? what is the message that ted cruz is sending out that is resonating to boost him in the polls? mark: if you look at the numbers, it is not the trump has collapsed in any way. ofmp has done a good job consolidating votes, including some from ben carson. i think ted cruz does better with religious conservatives and tea party activists, southerners. and ted cruz is in a elected office, but still an outsider, has a broader appeal. we should not say that ted cruz is the front runner, but he's getting close to being a co-frontrunner, and remember the money in the bank he has for his campaign and super pac's -- he has for at least reporting that will be critical in january. he has been very little on television ads. that gives them potential air cover to run positive and negative ads january and february in iowa. 4 super pac's

supporting ted cruz. who do they represent? what can you tell us? unusual situation. wealthy families wanted to have -- had different ideas about what a super pac should do. they have largely focused on television ads, including negative television ads. that is what mitt romney's super pac specialized in. some families wanted other things done. field organizing, research, maybe commercial television -- digital, cable, as was broadcast, but maybe more online advertising. are kind ofr pac's owned by and funded by and guided high the wishes of these families, who, they work together to some extent -- kathleen: do you know who these families are? mark: different wealthy families. the mercer family is one of them. they are low-profile people. they are not people who have

been very active and most of them have refused to comment entirely regarding their support for ted cruz. we should say though, he's not only funded well on the super pac side. but he is doing the two types of funding a campaign can do that are than anyone else. grassrootss and checks. no one else's firing all three of those engines the way ted cruz's. that will be a big advantage come january because he spent very little. he spent very little. kathleen: that's powerful when you see the small donor coming in. yesterday the big story was south carolina, lindsey graham, senator running for the white house, very little support, announced he was not going to continue the race. the question yesterday, ok, where do his voters go? where to his donors go? what will you talk about on "with all due respect?" mark: some of his donors have gone to jeb bush already. some of gone to marco rubio.

the political support was negligible. lindsey graham and his friend john mccain will be a big part of the republican stoplishment's search to ted cruz and donald trump. lindsey graham and john mccain have no interest -- they will never be satisfied with either cruz orcruz -- trump or as their nominee. there is no doubt they realize the establishment, putting your finger on the scale on behalf of the candidate could backfire in a lot of ways. ganging up on marco rubio. he is such a sweet face. what are people doing that? mark: it's strange. in most measures, he is pulling in third place. he is having more problems fund-raising than i thought. he is getting more heat than ted cruz or donald trump. he and ted cruz have been battling verbally, although that has been dying down a little bit. you see chris christie, rand paul, very tough media coverage going after marco rubio,

document in some of the skepticism many have about his campaign strategy. he is the guy in the so-called barrel now, which is unusual. we will talk about this on "with all due respect." just as a matter of logic -- why is the third place guy taking the fire instead of the guy in the first or second place? what about the interview our bloomberg politics reporter did with john kasich? had trouble connecting and rising in the polls. what has he had to say? mark: john kasich is a very impressive guy. he has not caught on in a huge way. he, like ms. christie, like bush , -- like chris christie, like bush -- in this david: that was kathleen hays talking to mark halperin. you can listen to bloomberg

radio on the bloomberg radio app or serious xm stations here it you can hear more from mark halperin tonight on "with all on bloomberg television. coming up, we will talk bonds with chris whalen. just checking the markets quickly. the s&p 500 up about three fourths of a percent. this is bloomberg markets on bloomberg television. ♪

scarlet: welcome to "bloomberg markets."

from bloomberg world headquarters in new york, i'm betty liu. stocks are swinging to the upside. data shows the u.s. economy is chugging along, even though housing is dropping. is the santa claus at rally here to stay? bonds are poised to outperform stocks for the second year in a row. a threepeat in 2016? does carl icahn's plan to break up i -- aig the far enough? an hour to go until the market closes on this tuesday afternoon. stks