from bloomberg's world headquarters in new york, good afternoon. here is what we are watching this hour. the selloff in commodities picking up steam. crude oil reaching new lows. shire with a sweetened takeover bid of $32 billion will create the world's biggest manufacturer of drugs for rare diseases. it has been two years since the debacle over lululemon's sheer pants. how the ceo is working to bring in new customers and investors. julie: i am excited to hear about that. let's take a look at what's going on today because we continue to see a resumption of selling. earlier today, it looked like

stocks were going to rebound from sharp declines, but that has not quite materialized. the nasdaq is underperforming, and that has been the case for a while now. the eighth day we have seen the composite decline. here is the nasdaq 100, down nearly 10%. indeed, whether you are looking at the composite, which is already in correction mode, or the nasdaq 100, which is poised to enter a correction later today, we have seen technology lead declines during this current downtrend in the market. look at the stocks point wise that have contributed to declines, here they are. is today's trade. apple, you can see, is bouncing back after some recent declines. microsoft, amazon, facebook, and others round it out. they have declined, they

have really helped drag down the nasdaq and the major averages. david: the other big story today is oil. a huge story. it is astonishing, the percentage decline we have seen in oil, not just today, but over the past several weeks, after already seeing a very weak 2015. oil down 6% today, trading just above $31 a barrel. it has been very weak and at its lowest since 2003. sentiment on oil keeps worsening. a lot of analysts have cut their forecast today. take a look at my terminal. commodities price forecast. then click on sentiment. it's pretty obvious here. bearish,sitive, red is

this is neutral -- green is positive, red is bearish, this is neutral. we have an uptick in bearish sentiment and decline in the bullish sentiment. close. friday's it doesn't even account for the selling we're seeing now. david: thank you very much, julie hyman at the markets desk. let's check on the bloomberg first word news. mark crumpton as that. mark: the mexican attorney general's office says it will probably take at least a year or two extradite -- a year to to the unitedhapo states. sean penn is expressing no regrets about his secret visit to guzman. he was asked about images published in mexican news media him withar to show

guzman. he said i have nothing to hide. the president of iran said cruel sanctions will still -- will soon end and the coming year will be one of economic revival. pope francis is calling for bold and creative strategies to help contain europe's migration crisis. francis says europe has the means and the responsibility to welcome refugees without sacrificing security or culture. he deplored the distinction made refugees fleeing persecution and migrants fleeing poverty. he said both are deserving of international protection. a protest by detroit cool teachers has closed more than half the cities schools. thousands of students were forced to stay home as the so-called sickout continued.

the school district has been in turmoil, struggling with millions of debt -- in debt and poor morale. a true original. the legendary david bowie. fans around the world are morning bowie, who died after an 18 month battle with cancer. ground control to major tom, may god's love be with you. bowie released his last album on friday, his birthday. he was 69 years old. global news 24 hours a day powered by 2400 journalists in 100 50 news bureaus around the world. david: thanks, mark. turning to china where the shanghai deposit -- composite declined again overnight.

the economy is set to grow at the weakest pace since 1990, but joseph siegel it's says things are not as bad as they appear. stiglitz says things are not as bad as they appear. >> it's not cataclysmic. it's a slowdown. there is no real news. the ways reminds us is you structure market roles can either diminish them monetary -- diminish of the volatility or increase the volatility. what is happening here, in a sense, as a consequence of some market rules that were not as well-designed as they could he. ceod: joining me now is the at p.r.c. macro advisors and oliver renick, stock market reporter for bloomberg news. you. let me start with it's always difficult to

paraphrase an eminent economies -- economist like joseph stiglitz, but do you agree with him? >> if i dared disagree with a nobel laureate, i will. yields, event bond evaluations of the stock market, a real a not speak to real active electrode toured -- a real economic downturn. they are hurting quite badly because the slowdown in nominal gdp, slowdown in cash flow. also, capital markets are not indicating let's really happening. absence government support -- was really happening. -- what is really happening. the rest of the economy is starting to contract. this is not the time to focus on capital markets as a barometer of the economy.

there is risk aversion. government bonds are your least worst that. date -- bet. you often hear its jobs, its employment that's the real silver lining in the chinese .conomy is that a bright spot? spots.e are bright the service's story is real. manufacturing is good. we expect after the spring festival holiday coming up that firms and policy makers are going to have to get to work solving the unemployment question. they raised the job creation target via million jobs this year, that has doubled -- by a million jobs this year. david: oliver, let me turn to you. it seems like night after night,

there has been some relative calm compared to what we saw last week. oliver: we came in this morning after a pretty rough week last week and a terrible start to the that things were starting to fall apart a little bit. broadly, whether or not china is as bad as it is, or maybe not quite as good as people thought, it obviously matters a lot to stock markets in the u.s. and investors here. for whatever reason that may be, you look across the market and you see things breaking down, not just in energies and materials. if you look at the s&p right now, almost 400 companies are 20% off their highs. you have small caps entering a bear market.

depending on how you want to phrase how bad china is, i think we have seen that there is not a whole lot here to support it. would we be reacting this strongly if we had an earnings landscape in the next six months that looked great or bustling wage numbers? to ask you,ted will, about current seas. there is a spread between onshore and offshore. -- currencies. there is a spread between onshore and offshore. what have we learned about how wide that has become? we have been looking at the forward spreads. is an interesting area. beijing has been given clearance by the imf to condense those ruless because of the

that they can only be 2%. overnightharp spike that's really reflecting the liquidity squeeze. it hasn't spread anywhere else, and maybe it won't. but the real risk is that it might reverberate into hong kong and potentially offshore. that is something to watch. david: you draw great historical parallels to sterling in the 1990's. has a relatively strong current count, the interest rates are going in the wrong direction. together, the current level exchange rate, some would

evaluation is off the best choice. the pboc seems to want to extend its foreign exchange to try a more gradual approach. they have done poorly in terms they mayications, but spend a few hundred billion more before they opt for devaluation. david: thank you. we appreciate it. next one in the minutes of bloomberg markets, jpmorgan is kicking off earnings later this week. it's expected to be the most profitable fourth quarter for banks since 2000 six. what's behind the booster to the bottom line? 2006.ce what's behind the boost to the bottom line? ♪

david: welcome back, it's time for the bloomberg business flash. el will be and able to keep operating as they challenge new york. they will be able to keep accepting bets for now. oil's bumpy ride won't be getting smoother any time soon. the price will keep falling during the first quarter and

stocks are likely to follow and enter bear market territory. oil is trading at its lowest level in 12 years. bowie'ssales for david music are surging following his death. his last album was released friday, just two days before he died from cancer. that is the bloomberg business flash. julie hyman has the latest on some company movers. julie: movers moving down. let's take a look at newmont mining. price oflong with the commodities. this move is especially notable, down 16% after a 71 percent pullback in 2015. the company has really been battered. it also gets most of its revenue from oil so it is not just suffering as metal prices decline. we are seeing record lows from some of the one time hot momentum stocks. fitbit and go pro down today.

twitter and go pro also have seen a momentum to the downside as of late. all again at record lows today, whosethe security company price target was cut by analysts after cautious fourth-quarter checks. shares are down by about 8% today. finally, some multiyear lows for a trio of stocks, all of them at least at 18 month lows as we see the pullback in shares. again, it is part of a longer term trend. we have seen weakness in these stocks. david: thank you, julie hyman at the markets desk. the biggest u.s. banks have seized on one thing they can control, cost. banks are preparing to report

their latest earnings, starting with jpmorgan on thursday. me now is bloomberg's wall street reporter and business editor. let me start with you. i have heard erik schatzker interview a lot of ceos from the -- big banks and the thing he hits on every time is the efficiency ratio. an environmentn where revenue is not easy to generate, they are finding it hard to grow, so they have turned to cost cutting. that is not a good thing for a lot of traders and bankers on wall street, but they have been doing a pretty good job of it in the last couple of years, and we will see that in the fourth quarter. talking about layoffs? we have had tens of thousands of jobs lost. >> we have heard about the layoffs.

the people they have they are paying last. they have been rationalizing real estate footprints. writing smaller checks or fewer checks to the and private investors over the multibillion-dollar settlements for allegedly selling ofmarkets or mortgage-backed securities. that was one thing that really pushed costs up in 2012-2014, and a lot of those are fading away now. this? how unexpected was it was such a high profile case, for him to essentially get off scott free. >> he would probably argue that he has paid for this, but it is much smaller than people expected and there's no way to see this as anything other than a huge victory for him.

ago, the sec was signaling that they wanted to thehim for life from securities industry. others thought he could end up in jail. basically, he has paid a fine and agreed to not manage outside 2018.until he can basically come back as a hedge fund manager. it would be a huge comeback and a shocking one, but i never cease to be surprised. immensehe sec was under pressure to prosecute a case like this. >> i think in this particular up against ame very wealthy, determine defendant who had the best lawyers money could buy. he hired david boys to help fight the sec. he was basically able to wait them out. years, alast couple of number of court rulings have made it harder to prosecute

traders for insider trading. he was able to wait for all of that to play out, and in the end, the ground has shifted under regulators feet. they found they could not pursue the case they thought they were going to write a few years ago when they started this. it's a little surprising. david: has the industry changed, do you think? >> this has generated a lot of pr in terms of compliance and how important it is to keep track of what traders are doing. however, because the defendants have been able to fight these court rulings, it is almost legal to do certain types of insider trading now and it's going to be a lot harder to prosecute those cases. a lot of hedge funds are probably directing more to other types of transactions that will be difficult to keep an eye on.

david: still ahead on bloomberg a megamerger. in details just ahead. ♪

david: welcome back. in a huge pharma deal announced today, scheier agreed to buy xalta in athe -- deal worth about 32 billion dollars. second try was the charm? ?as it the cash >> yes, and it's quite a bit of cash. $18 a share in a deal that comes out to around $12 billion if i have done my math right. deal, son all stock really taking a lot of risk off the table with the cash.

david: scheier is registered in jersey, headquartered in dublin, listed in the u.k., most of the executives are here in the u.s. that tells us all we need to know. wakes that has been -- >> that has been the story. companies overseas doing deals but headquartered elsewhere to get a lower tax rate. david: we are talking about treatments for rare diseases the cost, in many cases, hundreds of thousands of dollars. >> in many ways the rare disease section has been immune from drug price competitiveness. indication when the steel might close? we were talking about this weeks ago. >> i think they said sometime

before the middle of the year. one big question is how it will tax purposes. it's still kind of an open question. shireives at scheier -- x shareholders ba will not get taxed on this. it's a crazy day for news. we have had all sorts of announcements. leadership transition. i think the ceo is going to stay on as the effective chairman. not a huge change in the direction of the company. david: thank you. more bloomberg markets coming up after the break. oil, after the break. ♪

"bloomberg markets." mcauley, mark crumpton has more from the news that.

mark: -- my colleague, mark duncan, has more from the news that. mark: a group of california public school teachers claims fair share fees violate their rights is free speech -- right cover the cost market. conservatives skeptical on the. leader you want to sign a better mom. as a building with the north has called hydrogen bomb he says that it is expectation that they will advance to you is is a monitoring the republican debate split it is the paper endorsed. donald credit for them, saying that he is a conflict of interest. the february debate three days before the state primary. the file second police officer

charged in the death of freddie gray has been delayed. officer caesar goodson's trial is set to start the -- start today that it is now on hold until the state court decides is william porter must testify against goodson. freddie gray guide the injured in the police and let days of riots unless. lottery officials wednesday power you largest ever, now at one $4 billion no one matched all six numbers saturday night. one 292 million. global news for hours day power by our 2400 journalists and 5400 journalists from around the world. david, will you be here if you win? [laughter] david: to be determined. let's take a look at some of today's biggest movers. old you are today after posting

that the august. prices fell around 8%. oil, thinking it. earlier in his most of the market 2000. joining me now to drill down to it, from the economic joining us inm, you are a lot you oil 20 wanted things off by getting cap. collect i think that right now the markets are falling, technical settlement bearish since you had a break below the moving average back in october. really, since then you have seen just downward drive. horse, this is also being by the data china. i think that you seeking cioffi here for now. we really the mental data support. 35 is an case price is

average is order, but you have got better what happened david: you sent along some -- before that would happen. reports,u sent along something widespread there. what can we tell from this? why is this chart so important to you? >> the most important you look 2015 on a global the most important thing was that there were 1.7 million barrels a day, or little bit above that. that was more than what was built inventories every as a rough the year. 625 to december 5 2 million extra barrels of inventory rough the year. that's a lot an overhang fly. that's one of the big problems here in one of the things weighing on rights. flex with these low prices and volatility many are likely

wondering if is a buying opportunity here you get one, do you think? collect it depends on the pmi thought. everyone wants to talk about barrels and supply, but in my in the demand by the most part of the equation right now. pmid: looking at chinese u.s. manufacturing pmi, talk about importance of this one area flex well, this is really important to get it shows the chinese+++

number below if the contracting chinese in 12 of the last 13 months manufacturing has been contracting month after month after month. december the going up contraction actually got worse. on top of that u.s. manufacturing after being last in september and october contracted in november and contract and more number. the u.s. is flirting with perception that this is radical leading indicator of what happened to the entire u.s. economy in the manufacturing is around the of the overall economy. china manufacturing is a 31% of the gdp. china is in a manufacturing session and has been for a year. talk about the sick 15 and number that the government publishes, but that number doesn't matter. the truth is that china is in any fact you session. the u.s. is close to one. china received great growth, u.s. manufacturing wrong he would not be talking about oil in the 20 fossil you are ethos. david: how real of a concern is the you? ake i have a book month about

surviving economic downturn during even looking at the data and pointed towards the u.s. session. looking at in the production, negative year-over-year. retail sales, those are at the weakest levels of the great recession. it's actually weaker than any level in the 2001 recession right now. if you look at it, it's below for him has been all in areas of the. these data points all show the have got real problems in the economy and this really has a leading impact on affect in the service sector. the line share of the economy will follow. get another couple of these sub 50 indexes and you will the the what we're forecast like growth is the end of the year and the contraction in 20. david: where does the strong u.s. dollar factor into this? how does that play into it?

quite into the manufacturing problem. waiting on u.s. export and manufacturing, it hurt competitiveness of the actor, which is again a leading actor for the economy because of jobs are household formation kind of job, feeding into some of the problems. the other interesting thing is that even though there is an inverse relationship between the dollar going up and oil going down, you will notice that the dollar is nowhere near the highest in march or highs of you saw at the end of november. recently than trading between the 30 and 100 day average. the reason we are not as high as we have is an over us mission to the european central bank with two more. we don't expect more from them. are the dollar goes, relatively wrong compared to where it was last year, which has been weighing on export and hurting the u.s. economy. ask you aboutd to

copper before we let you go. we saw that getting robert today is well. >> it's been absolutely -- clobbered. copper and aluminum let the downward trend. want to know where things are going? watch aluminum. these are lowers lows than in the last few months. if aluminum start to turn up, that the time for copper in oil. that is the order in which you want to watch those metals. david: jason, thank you so much. as he's is, he has a book coming out called recession proof. coming up in the next 20 minutes, it's been two years since the sheer pants controversy rocked a lulu lemon. "star wars" breaks in $50 million in china as they chase the global record set by "avatar." how crucial is the chinese market or chinese the

others? after the break he will head back to the international auto show in your from the president and el of volvo. -- president and ceo of volvo. ♪

david: welcome back to "bloomberg market." the to try, where the north american auto show is getting underwear and -- underweight you can find a car like the 800 and in high school. matt: but i bet that thing was a lot of. we are looking at the it,product, the viewers see

the xp 90 over here. i've driven it. we did a review on it. --in a very sick us for car it's been a very successful car. how will this change your sales in 2016? hakan: hakan: hakan: him him him real alternative for customers. you can get what is expected for a volvo end it will help us in the turnaround. your biggestl market. you sold 85,000 or so cars there. are you concerned about the hakan: a totally open

free market like in hong kong. more on speculation. it is disturbing but it is to understandus that china cannot grow enormously fat every year. we can very well live with that. especially as they offer more grow with the market. our challenge is paying tribute and establishing ourselves as the premium brand in china to take market share. matt: what kind of growth are you expecting and when will they the clips your chinese market? going back 10 years, things were much stronger.

the midterm objective is something the retailers need, that's what the brand needs. we will be taking a big step forwards. of course, we do that with a full year of crossover and half a year with reaching new customer segments. that is how we will grow our shares. matt: you had a fantastic tailwind. falling unemployment, and most of the cars that are being sold here are made in sweden, right? you are still going to build a u.s. factory, though. why? hakan: some years later it goes back but i think retail

see moreions can without making money and then losing. the best way of doing that is the natural hedging. we will really strive to be a domestic player. of course, continuing to sell in producing cars. developing much more technology together with american suppliers. matt: you have got to keep your swedishness. it has a very swedish design. absolutely.hakan: we have to produce our cars without contradiction. they are still volvo. stillre of volvo is

scandinavian, still swedish. we have to build on our heritage , i think that's very important. it takes what's important for you, saving the environment. and now i think [no audio] matt: back to you in the studio. david: that was my colleague there, matt miller, speaking with hakan samuelsson first here on bloomberg. now let's go to the markets desk where is taking a look at some movers in the company space. seeing bounce back after increased pressure is placed on the company to exploit -- explore options.

meanwhile, "the wall street journal" is reporting that kohl's is potentially going private. analysts say the company could fetch $95 per share. you see the shares at just $50 right now. interesting analyst commentary today. children's place was upgraded to overweight at morgan stanley. analysts say the company has been making investments in the business that should pay off. the same analyst is also commenting on under armour today, cutting the shares to underweight and saying that they are seeing declining market share in women's apparel with lower average selling prices and footwear. that's weighing on those shares in a big way. nike, up about one quarter of 1%. lulu lemon is looking to in the topt margins

athletes of women who have that extra to spend. that debacle well, the pants that were not supposed to be see-through but in fact were. the company is now focusing its attention on making pants that feel like you are not wearing anything. >> that was almost three years ago now. they had to work on their supply chain. they were making a lot of investments that should have been made before and now they say they are caught up in ready to play offense, meaning bringing new innovation. i have tried these pants. you put them on and they are the most comfortable pants i have ever worn but they are $98. pay forou get women to that premium stretchy pants? david: how big of an undertaking is this for the new ceo? i guess they are in decent shape now, but to look ahead to what might happen down the line?

>> we have seen this with under armour. it's a space filled with competitors. do a lot of what lulu lemon does and it is easy for someone to see the innovation that you put in your product and copy it. if you want to trade down for a lower price, even if you are not trading down very much, you can get a great product. lulu lemon has to cater to a serious athlete and make sure that when we are all wearing jeans and not feel the pants everywhere? we will see. they need to maintain their markets. innovation is clearly how they are going to try to do that. whether or not the customer believes them and thinks innovation is worth paying extra for remains to be seen. you quoted an analyst saying that trying to compete in the space is not easy to do. how much headway had they made getting into that space?

>> they have a lot of elite ambassadors, that's what they call them, but they have not been great at telling a story. they are working with them for feedback on design, making sure that they are solving the problem. that's what they say. that is what mikey does to, but it is a question of going forward and being more visible in those endeavors. julie: -- david: coming up, disney's big bet in china. ♪

david: welcome back. wars: the force awakens" opened in china this past week and took in 53 move -- $53 million. some analysts are even predicting that china will

become the largest movie market in the world by next year. i want to bring in emily chang to break this down for us. earlier today alix steel was talking to an analyst with box office.com and she asked -- what makes a movie successful in china today? >> a big spectacle film. you are looking at blockbuster, big-budget blockbuster popcorn movies, i would say. the story is not that important to the chinese moviegoer. as matureot moviegoers as, say, us. all right, this is a story not so familiar to most people in china yet, the star wars story. having lived in china and tried to go to a couple of budget movie openings, you couldn't get tickets. everyone was so excited to see it. turns out that this was no different, bringing in 53 million dollars over the

weekend. the biggest weekend box office opening in china ever. disney put a lot into marketing this film in china. 5500alking about stormtroopers on the great wall of china. but you are right, what is interesting is of course the original star wars trilogy was not released in china. it was just when the country was recovering from the cultural revolution it was certainly not the kind of film the government wanted people to see. you do have a lot of people in china who have never seen one of lives.ilms in our you have a number of loyal fans there and now there are plenty of ways to see the trilogy now for the people who wanted to. it got some mixed reviews from people who said they did not understand the story line we also saw a rave reviews from people who loved it. again, star wars is chasing avatar, it's a global record, so far at 1.7 billion worldwide.

still a little bit of a ways to go. i remember very well from your interview with jack mock, u.s. them about the business of getting into these companies. legendary entertainment, and offer was just made for that. is interest here in bridging the divide between china and hollywood? certainly. the chinese box office is going up something like 50%. a lot of people at home were sitting on our couches and watching things on demand. they have been very interested in western content. i asked him specifically about buying a studio. he said he hasn't tried but he also said he doesn't think the u.s. studios want to sell, but he also thinks there's a huge inket for western films china. disney opening shanghai disney over there. star wars will play a big role there, you are expected to see

stormtroopers right there with mickey mouse. thank you so much, emily. finally today, london born rock 'n roll artist david bowie died today. david cameron called him a genius, saying that he was a master of reinvention, leaving a body of work that people will still be listening to in 100 years. he did not just innovate in music and fashion, he also paved the way for esoteric asset backed securities. he was the first to securitize in 1997 forams bowie bonds. he died today at the age of 69. ♪ we live in a pick and choose world.

choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore.

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good afternoon, i'm betty liu. here is what we are watching at this hour. things getting worse for stocks, after flirting with games they are falling for a fourth straight day with the nasdaq losingfor its longest streak since 2008. crude oil at a fresh low, falling 6.4%. getting close to slipping below $30 amidst concerns about demand from china. as markets go down, banks are increasingly relying on cost-cutting to boost their bottom line and it may be working as banks are poised to post their biggest quarterly profit in a decade. we are one hour away from the close of trade. i want to head to the markets desk, where julie hyman has the latest on a pretty volatile day. julie: