david: we are live in bloomberg said borders in new york the next hour and covering stories out of sentences, detroit, .ashington, and berlin markets have stabilized. stocks are higher admitted deals and a rally in apple. -- after fourre months of talks, they are -- bayer agrees to buy monsanto. in the race for the white house titans. -- and the race for the white house titans. donald trump leads hillary clinton in ohio. julie hyman. we are seeing stocks give up some of the gains that have been studied through the day. the dow had been higher for much of the session by about a quarter percent. getting much of its

gains. what is going on? looks like oil prices are part of the story. they are making new lows today after inventory reports showed an unexpected drawdown in crude oil inventories and a large built in distillates. the map here. we have bond yields lower today. benefit utilities in real estate and telecom stocks. we have the energy shares down .9%. materials off by a quarter percent. more evenly split on the wheel between red and green at this point. we see stocks slip on over into the red. when we see the dow is lower today, boeing is the worst-performing stock by weights within that average. we also have to talk about apple here. with tech in the top spot, apple is a big reason why.

it is also coming off the highs of the session. sprint and t-mobile made comments that iphone 7 preorders are way above what they have seen for prior models, but verizon is throwing a little bit of cold water on that. the vice president spoke at a bank of america-merrill lynch conference today and said that iphone 7 preorders are well within the normal range. we seeing the big numbers are hearing about from t-mobile and sprint. in the know apple is a strong performer for the second day in a row -- as you can see, this little leg down is because of that commentary from verizon. vonnie: let's check in on "first word" news this afternoon. mark crumpton has that. mark: myanmar leader aung san suu kyi met with president obama today in the oval office. i indicatedama: after consulting with suu that

the united states is prepared to lift sanctions we have imposed on burma for quite some time. bush president george h.w. suspended trade in 1989, citing myanmar's refusal to recognize workers rights. was $207rade in 2015 million. a new bloomberg politics poll shows donald trump leading hillary clinton in the key battleground state of ohio. she leads vincent -- he leads 43%ton 40% to 43% -- 48% to among likely voters. he pulls strongly among white women and white men without a college degree. clinton has faced backlash for calling half of trump's supporters deplorables, and there is growing concern over her help after she was seen stumbling and diagnosed with pneumonia. trump will make a speech at the economic club at 11:15 a.m.

local time. bloomberg will have live coverage with the question-and-answer session of with john paulson immediately after the speech. a judge wants defense and prosecution to provide a list of potential witnesses as jury screenings begin in the charleston church shooting trial. the judge wants the lists included on a questionnaire to determine if potential jurors know any witnesses. of discharge charged with a hate crime for the slayings of the churchgoers. he faces the death penalty. federal trial is scheduled to begin november. report confirms widespread corruption in afghanistan has undermined efforts to rebuild the country. the special inspector general for afghanistan reconstruction says the u.s. congressd to desk -- contributed to the escalation of corruption by being too slow to recognize corruption as it injected tens of billions into the afghan economy. global news 24 hours a day

powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. vonnie? vonnie: thanks. hard to believe but we are eight weeks away from election day. investors are weighing what impact a donald trump victory might have on the markets and economy. check out this chart. it is courtesy of bank of america-merrill lynch. many of the managers surveyed last week said a republican win in november is one of the biggest terrorist for the -- biggest tail risks for the u.s. economy. others include inflation taking off. daviddiscuss this with stockman, former manager of the elvis of management and budget under ronald reagan -- office of management and budget under ronald reagan, and the author of a new book. it is out ofieve this world that we might have a republican presidency? it is very possible

because we are in a different ballgame. they had a phrase back in 1992, the clinton people, which said it's the economy, stupid. people today need to be saying it's the fed, stupid. the reason trump is unexpectedly doing so well in this election ispaign is flyover america hurting and hurting badly because of the negative impact of said policies-- fed policies. 2% inflation targeting is a job and wage destroy you. rates is a retirement hit of enormous magnitude. andive monetary stimulus turnedying has basically the stock market into a casino in the cease we-- c-suites of

america, executives, into an alternative -- vonnie: what has trump concretely suggested as an alternative? david s.: he pointed out the elephant in the room. he said that this is a phony market, a false economy, and janet yellen should be ashamed of herself. finally, someone called attention to the core of the problem, which is the federal reserve. it has created massive wealth for the bicoastal elites, created enormous bubbles. ats market is crazy today its current value, 25 times trailing earnings when earnings are falling and sooner or later we are going to have a recession. therefore, the start of wisdom on this is to go after the heart of the problem, which is the federal reserve, and call them out for policies that only help wall street and punish -- he has called them out,

but what you make of the rigor of his argument thus far? he says that the fed's acting at the behest of the obama administration. you look at his economic plans, they are not that well fleshed out. this is a candidate who could be doing more, you could admit, to flesh out -- david s.: i agree with that and as time goes on he will flesh it out but we will have chaos there will be a washington totally divided in conflict because for the first time the fundamental policies of the last 30 years are being challenged and i don't think there would be any smooth transition. finally, the vaunted independence of the fed will be challenged. finally, congress is going to wake up and realize that workers and retirees throughout america are being punished by this policy, and that wall street is totally out of control. david g.: how would a president do that? you have members of congress needs to befed

audited and more needs to be done but you have an organization's most be running politically. how do you change what it is supposed to be doing? david s.: you have to take control, ok? there is no such thing as independence of the federal reserve. it is entirely a political institution. why in the world are they afraid to raise interest rates after 93 months -- vonnie: but -- david s.: wait a minute. when the vice chairman of the fed says we are at full employment, that is political in a profound way. vonnie: the fed chair does say there is slack and a lot of members say there is slack in the employment rate. david s.: the point is, they cannot do anything about the slack that is there. that is structural. that needs to be addressed by supply-side policies. that needs to be addressed by renewed incentives for investment. we are not getting any investment. real business investment today after depreciation is 20% lower

than it was in the year 2000. we have no breadwinner jobs that have been created in the last 10 or 15 years. part-time jobs. my point is if we are going to change direction and we get a new president and it is not hillary clinton, then someone needs to tell janet yellen, you are done, you are finished, you have wrecked this and your people have wrecked this economy . you ought to resign, and we are going to put in a new slate of people that are going to run the central bank in a way that is compatible with productive capital. david g.: let's look at the other side of the coin. congress has been so handicapped by itself largely the last eight years. if the central bank is no longer doing what it has been doing and it falls upon the in administration and congress to do more, what gives you optimism that that is going to happen? david s.: well, i don't know what is going to happen if there is a trump presidency.

my book is not any kind of brief for donald trump. my book is more saying that what we have been doing for 30 years has come to a dead-end. we cannot print anymore money. -- 60le dollars of debt chile dollars of debt on this economy. congress is not going to have fiscal stimulus. what we are going to have to do and basicallyh liberate capitalism to try to recover without all of this help from washington, without all the stimulus, monetary intervention, and so forth. david g.: david, great to speak to you. head ofockman, former the office of management and budget under president ronald reagan. next year it will increase spending for driverless and electric cars. we will break down that strategy. and tonight, bloomberg premieres a new six part series, "big

problems, big thinkers." an impressive group of leaders including warren buffett, ted turner him and madeleine albright. tonight at 8:00 p.m. eastern, the first issue will focus on planet change. this is bloomberg. ♪

david: this is "bloomberg markets." i am david gura. vonnie: i am vonnie quinn. ford shares are extending losses and are at a five-week low. bloomberg's scarlet fu has the breakdown in today's "numbers don't lie." scarlet: ford shares have fallen 29% alan mulally retired. let's dig into ford in today's

"numbers don't lie." the red line is when alan mullally began as ceo ran through the recession to 2014. the green line is when mark fields took over and you can see the steady decline in the share price since then. fields was the dominant presence during mullally's rain and he is pursuing the 1-4 to strategy with great success. record profits from which you can see with the orange line, even as the stock is struggling. there is a dip in net income last quarter when the company missed analyst estimates. ford has been very upfront about its concerns. i mean, the big picture in here is total u.s. sales have been climbing for the past decade and may have paid that 18 million. august sales reflected that with every major automaker missing analyst estimates. but the biggest concern about those august sales were light truck sales. they have been outpacing car

sales for many years now, creating is pretty big cap. you can see why cars, the white line, cars the orange line. u.s.op-selling overall vehicle fell 6% in august from a year ago. outside of lagging sales, ford is boosting spending on new businesses such as driverless cars, electric cars, while fixing weaknesses in luxury autos and emerging markets. all these moves have done little to appease investors. ford shares trail g.m. and the s&p 500 -- four in blue, gm in orange, the s&p 500 in white and 2014. in the long-term, the ceo thinks investments will pay off. he says he is "very confident ford is going to deliver." news,: and in hedge fund one of the oldest and most expensive hedge funds is changing management seats amid

losses. in response to an investor backlash that is roiling the industry. simone foxman of bloomberg news has been covering the story. let's be clear, they're cutting fees but still taking plenty off the top. smione: right, and what is a little bit humorous and the story is that the fees were as high as 2.6% and now they are between 2.2, 2.5% management fees. still charging 27.5% on performance. vonnie: that is the major number. obviously, if it is a loss, they're not taking 27% of the loss. any profits? simone: well, the typical 2.20 since theen birth of the industry. that is what people like bill gross, what they are coming out and saying these fees cannot last it is not that the caxton level fee that they are talking

about. i want to call your attention to one specific line in this wrote, which is the ceo that the hedge fund industry was not created for managers to live well on management the surpluses -- management fee surpluses. his caxton breaking even now, or is there more to it? david: continuing what you are reading from there, saying it is important to organize that the entire industry has moved lower on global prices. what is he have to say about this environment and situating caxton in that? simone: caxton, if you look at the lastseveral years, few years has been up handful percent. now they are down 2.6, not an awful number, just not great. investors are looking at places like caxton and saying what am i paying for? vonnie: warren buffett describes

them -- isn't pretending in feescular to caston, just and bill gross calls it a giant ripoff. of course you would like to have it in his fund that he would like to have it in his fund. is it worth it for investors to be in there for the long haul? simone: i think what investors really need to think about is why they are and hedge funds in the first place. you have seen some people come and say they are not made for the massive returns. said this was meant to manage risk and you diminish losses in periods of volatility. if that is what you are in therefore, you got to think about what you are paying for that vs. what kind of fee structure you would be willing to pay for returns a la george

soros year after year after year. david: appreciate it. simone foxman of bloomberg news. fourth time is the charm for bayer. this is bloomberg. ♪

vonnie: this is "bloomberg markets." i am vonnie quinn. david: i am david gura. bayer has clinched a deal to take over monsanto. the deal is valued at $66 billion, the biggest merger this year and the largest foreign takeover by a german company. if the transaction is approved, it will create the world's largest supplier of seeds and pesticides. jeff mccracken spoke to the ceo of both properties today and he joins us now. something you have to the ceo of monsanto about was the name. monsanto is an and that is politically fraught in some quarters. let's hear what hugh grant had

to say. less ahe key in this is name than the products developed. we haven't actually talked about that but i would be open. bigger things to solve in this. david: bigger things to solve, the name is not paramount. jeff: it's interesting. i'm not sure i believe them, but he is basically saying he is open to the monsanto name going away, which is investing could guess been around since 1901 -- it has been around since 1901. not sure americans will cry that there is no more monsanto. not like coca-cola. the name in europe is almost seen as poisonous because of the genetic modification of seeds and what they're doing with farming and agriculture there. decidewere bayer you may in a few years that there is no reason to have the monsanto name anymore. vonnie: you also asked about who

is running the company and personnel hirings and firings and so forth. let's listen to what they had to say. >> particularly on people come what is going to be important is the senior management teams of both companies sit together, jointly assess whose career is developed best in the new organization. and that we can actually help our people to drive their careers but also in the combined organization's best interest, that will be ahead of us, that will take a lot of time and diligence. vonnie: that was the bayer ceo saying "i want to lead to the company," and realizing he can't say that. jeff: yeah, i think it is most likely that he will be the person who runs the company. the best we could get out of hugh grant is "i will be here in 12 to 15 months."

that is not saying much because they set the deal will not close until the end of next year. my guess is bowman will run the company and hugh grant will get tens of millions of dollars and people will shake his hand and he will move on and run some company down the road. i'm not sure they were entirely honest about where the conversation stood. vonnie: at this point monsanto has to do a deal. jeff: right, and as i said with the interview, hugh grant probably has himself to blame because he tried and failed twice to buy a company that went to china. this whole ag, chemical space is consolidating rapidly. the other question they weren't able or willing to answer is what are the regulators going to do? used to be six plays, down to 4 to will they let the deals go through? david: how big an issue is that for regulars, the fact that we have had such concentration?

jeff: the big motivation is yet from companies and consumers through from companies are pushing to lower prices. what bayer and monsanto are saying, if we can work together and get the seed business and fertilizer business and the lowerag space, we will prices. there will be pushed back from farmers and we will see regulars and politicians pushing against this deal over the next 12 to 15 months. vonnie: jeff mccracken, thank you. great interviews there. coming up, we speak with the ceo of twitch. will the website become a streaming rival to netflix? this is bloomberg. ♪

♪ vonnie: welcome back to "bloomberg markets." here are today's big movers. gold is trying to rebound after

the fed meeting has traders on edge. remains a situation little unsettled in brazil. 1.1% therefore sugar prices. crude oil tumbling. perhaps a volatile couple of days of for crude oil as inventory declines. we will be speaking about that in a moment. 43 .58 at the close. of course, it may only be temporary. inside a bloomberg. here's a look at the correlation. oil and isis, type it into your chart library. 3520. the natural gas index, it had been on the rise, turning over a little bit now. david? david: we are joined now by carolyn, who created that chart for us.

two weeks of inventory declines, what's going on here? carolyn: the market is focused on where it should be. distillates and gasoline inventories, both of which were up. we are at the end of the driving season. more importantly, that distillate inventory is going up and we need a lot of distillates . it is dependent on the weather, but we need to stock up. david: where do you think we are? we have michael whitner here. he says we could see rebounding by 2017. what do you see? of in thewe are kind middle. i think the market is long-term looking at the opec meeting and wondering if they are going to get their acts together. we have seen a take up in production from all of the opec countries. when they do set price and if they do agree, it will be at high levels.

that then agreeing and setting this fed like policy if you will will be supportive of the market. along the chart, looking at the various commodities, looking at corn, soybeans, oil, it's a dramatic chart here. 30 519 in the chart laboratory. what are we seeing here? this is the grain sub index for the bloomberg commodity index and a factor that has been big this year. really, the metals and energy have been the ones taking the center stage for performance. but one to watch. the top three performers on that chart in the soybean complex, they have really been taking charge. there are some concerns, supply and demand is pretty tight. we have seen a drop off today and that is in light of what we think are the weaker chinese demand numbers.

definitely something to watch. as we go into planning season in south america, we are through it in north america, but on to the next. -- david:so much thank you so much. mark crumpton has the headlines. mark: donald trump released a health summary during the taping show" today.z joined by his daughter, he discussed his personal health and health care policies. the hour-long interview airs on thursday. hillary clinton's team has an additional two weeks to respond to questions from judicial watch about her e-mail practices. a judge ordered her to respond september 29. by her campaign requested an untilion and she has october 13. the conservative group has filed

several lawsuits seeking work-related e-mails and other documents related to her tenure as secretary of state. is aiming at taking in 100,000 refugees from around the world in the coming year, according to a senior white house official. it would be a nearly 30% increase from the previous year. advocacy groups say that it is still far short of what's needed. israelitreating former president for a stroke say that his condition has improved slightly. it is still serious. one day after he was rushed to the hospital for treatment. he has been in a medically induced, but has regained consciousness from time to time. he is 93 years old. global news, 24 hours per day, powered by 2600 journalists and analysts in one hundred 20 countries. i'm mark crumpton, this is bloomberg. vonnie: twitch, the videogame

streaming service that amazon bought for over a billion dollars is streaming out -- stretching out. showing reruns of amazon prime shows on the service. joined by the twitch ceo. cannot wait to listen to the interview. much, thank you so vonnie. emmett, thank you for joining us. i know that there was a lot of chatting going on on the sidelines. how useful was that pilot test? emmett: we found that debuting new video on twitch, new on-demand series, is a really great way to get not only engagement and interactivity, but get a burst of attention and new viewers. the twitch audience is always interested in picking up new stuff. i think it looked -- worked really well. emily: this is something that

netflix, for example, can't do. do you see more integration in the future? have been working closely with amazon studios, figuring out how to help promote their videos and ways to get twitch content and influencers into amazon content. dohink we will definitely more in the future but we are still very much in the experimentation phase. what has it been like working with jeff bezos? emmett: it has been amazing. i probably work most with andy at uws, but working with jeff bezos has been really, really interesting. -- i've beenen doing this for about 10 years -- there are not many people that have significantly more and deeper experience than i do, but the amazon leadership team in general -- which i have a huge amount of respect for, because

it's been an amazing opportunity to be able to learn from people who are actually more experienced and maybe smarter than i am. i have that's a touch arrogant, but that hasn't been an opportunity i've had a lot in my career. i the wiz the ceo, founding a startup, it's been really cool to learn more. you said that there is a big integration between amazon and twitch coming. what can you tell us? we will this work? emmett: have been trying to for your out with amazon -- how do we create something that drives value for twitch streamers, the drives value for creators, that's who we focused on. for the whole twitch community, while being a great thing for amazon. i think we've finally figured out an amazing integration point that is going to let us do that. i look forward to the speculation on what that might be. you have been streaming

the political conventions, art classes, we talked about the pilot. will you be going in any of these directions? emmett: we have discovered that even as we have done more non-gaming content, it is a social community for gamers, clearly, gamers don't just like games. they like all kinds of stuff. tohave seen great responses other content. the creative content we have been putting out there. today we are launching a that ising channel going to have live people doing programming computers, doing computer programming. i think that's going to be exciting as well. we got a great response from the community, lots of growth they're. david: what about -- emily: what about integration that is more retail focused? connecting gamers to games on amazon? emmett: i think that it's clear

that the twitch audience buys a lot of games and gaming hardware. the used twitch as a place to discover what to buy. don'truggle is that we want to go build something that feels like a need to. it would be easy enough to slap a bunch of links all over twitch , but that's not really useful for the community and we don't think it would actually drive much activity in the end. we are looking for places to do that that you made it to the community. have been firm about community values and the values of the company. an issue, and in the gaming community it can be relentless. what sort of progress have you made on changing that? emily: -- emmett: it's a really hard program -- problem. any time you open a chat room to let people talk, people are

talking who you would rather were not part of your community. i was really proud of the work around the dnc and rnc in particular. obviously when talking about a political convention, that's a powder keg waiting to explode in terms of toxicity and people having a negative experience. we did some things we've never done before. the one i'm most excited about is auto moderation. the first time running an automated moderation system that blocks messages using machine learning. we found that while it could not block anything -- everything, it could grab a lot of the worst stuff and enable the human moderators to have less to deal with. that was very effective there. we are looking at rolling that out widely now that we have tested it. emily: a quick question -- social eating is big in south korea, that's the new hot thing. how big do you think this phenomenon could become? meet -- social

it's huge and south korea. it's one of those trends where i don't frankly understand it. me being really interested in peopleg gaming, a lot of wanting to play games on the internet, who wants to do that? i'm cautious at writing anything off. just because i don't like it doesn't mean that there isn't a group of people for whom this is exciting. i'm in the wait and see mode. i think it could be huge. ,mily: all right, emmett shear thank you so much for joining us. back to you, guys. vonnie: i've been caught -- david: thank you so much. i've been caught on camera eating, there was not widespread appeal. this is bloomberg. ♪

david: this is "bloomberg markets." vonnie: a new poll has donald trump gaining a lead in the critical battleground state of ohio. ,eading clinton by five points which is quite strong, obviously, david. the reason ohio is so critical is because no one has won the reliably sincee 1964. david: these campaigns heavily focused on these rust belt states. hillaryaign, if not clinton herself, because she has

been focused on coop rating. i'm eager to hear how much her comments are resonated with voters in ohio. reporter bring in our for politics from d.c. , reflected in those numbers, are concerns about hillary clinton's health and the comments that she made about half of donald trump's supporters being in the basket of deplorable's? >> the poll came at a time when clinton was facing a lot of negative reaction to the comment about basket of deplorable's. she had pneumonia, it was leave sohy she had to abruptly. these polls are taken during a certain time of negative attention. troublinghis is still news for the clinton campaign because it reflects a trend. that holes have been tightening nationally.

donald trump has gained some ground lately. vonnie: it seems like a hillary clinton campaign is finally taking notice. but what can they do? clearly, there have been warning signs until now. not just this particular poll. is it something they are doing wrong, strategy wise? sahil: i don't know about that. i think that partially this is just reflecting the reality of the electorate. this is a very divided electorate. 47% to 47% with a small group of undecided voters of for grabs. this was always likely to be a close election. the tree and's that hillary clinton might be on the road to a landslide against trump increasingly don't seem to be panning out because donald trump is coalescing republican voters. the clinton campaign announced this morning that they've opened

new offices in ohio. focalbviously a huge point. no president has been elected without ohio since 1964. having said that, the clinton campaign remains in a good position right now. states,p and other key like virginia, colorado. with a higher percentage of college-educated voters. donald trump, even though he is closing in, he still has to run the table and get a lot more of these battleground states that she does. david: trump enjoying the support of union members, that took me by surprise. what explains that, do you think? sahil: right, that was a fascinating finding. one of the most intriguing in the poll. it's all about the issue of trade. donald trump is the first major party candidate we have had in several decades who has made

anti-trade and protecting -- anti-trade sentiment a centerpiece of his campaign. in the poll we saw that more than half the voters in ohio believe that trade deals like .afta are harmful to their jobs thinkhan anything else i it's an issue of trade, but it remains to be seen what percentage of the voters he will actually get. vonnie: sahil kapur, thank you. david: time for look at some of the biggest is this stories in the news right now. a new report from mckinsey says that jobs -- job cuts alone won't be enough to change -- save the world's biggest bank. reports of three to five global full-service banks may survive. the others, mckinsey says, will have to squash their desires to be all things to all customers so that they can eliminate fixed costs. spotify, with success in the digital music space, the ceo of the world's largest music

subscription service had 40 million paying customers. double the total from apple. that is your business flash update. vonnie: coming up, take a spin in uber's driverless cars. they were rolled out in pittsburgh today. ♪

david: bloomberg markets, i'm david gura. driverless cars are hitting the roads in pittsburgh. uber is rolling out its first driverless cars to customers in the city. we travel to pittsburgh for an early look. fore are here in pittsburgh uber's self driving car launch. opening the app, here we go. you will see that there is a pinwheel thing on top.

a sensor, that is the most important sensor, mapping the road and basically telling the car where to go. in all there are a dozen of these. lasers, cameras, radar's. joining us,drivers but the idea is to get people to understand what it's like without somebody behind the wheel. so, we are in the uber. i am going to press this giant green button that says let's ride. there is a sort of weird colorful psychedelic map that is showing all the stuff going on around us. the driver is sort of hovering with his hands over the wheel, but not touching the wheel, or just barely touching the wheel. here we are, we are stopping at a stop sign. there are cars going by. you can see them on the screen. take the drivers

seat and basically experience what it's like to be a safety driver. so, this is eerie. it really feels like the car has a mind of its own. it's weird, you know? you are fighting the tendency to grab the wheel. grazing thet of wheel, ready to go, but otherwise of them literally nothing. i'm just sort of sitting here, enjoying the ride. max joins us now to tell us what it was like behind the wheel of a self driving car. max, how nervous were you? max: i would say five? weirdly bland, once it starts happening. even the moment where i was in the drivers seat and the wheel started turning, it started to feel normal. how this stuff is probably closer than you think it is.

david: there were sensors on the roof, elsewhere in the car. what is the system monitoring on the road? way broadly speaking, the that these things work, they take pictures with lasers, radar, actual cameras, of everything around. road signs, pedestrians, parked cars, everything, comparing what it sees with what it wants to see. where it sees a variance it says -- wait, we have to get around that parked car, stop at that sign, or whatever. the most important thing is the spinning wheel on top. that's a custom-made lidar sensor. although elon musk is not a fan, he has his own way, but most custom knees -- custom -- most companies are using this. vonnie: it was going to be more crews, more discreet. uber is pretty adamant that

this is a prototype. that they have some further along models that look a bit isn't quite the hat as pronounced. i think that long-term some of this stuff will be built-in. on the other hand, i don't know how you get around that spinning thing, so they will look different. then we are used to. david: what about people who are watching all of this unfold? when this was announced, emily chang here interviewed the mayor of pittsburgh. said the city was etc. -- excited about being a testing ground. were people apprehensive? max: we got some funny looks. people shouting on the street -- what is that -- that kind of thing. of uber drivers about this and they generally shrug at it. i think mostly because they see it correctly is kind of a long-term thing. most uber drivers, it is a second job or something they are doing temporarily. they are not thinking that they

will be out of work in 20 years, though you could imagine that this played out in a long time scale, that could happen. it, max.preciate more of that story and all today's top headlines on "bloomberg west," including an interview with chinese electric carmaker. of new yorkhe state versus hank greenberg. he finally has his day in court after an 11 year delay. we will have an exclusive interview with him, coming up. this is bloomberg. ♪

david: it is 3:00 p.m. new york. vonnie: welcome to bloomberg

markets. ♪ vonnie: we're live from bloomberg world headquarters in new york for the next hour. covering stories out of stanford 's go, mexico city, and hong kong. oil --g u.s. stocks amid overshadowing a rally in apple shares. greenberg finally gets his day in court. he will a lawsuit that again within a day it ago. we will hear what he has to a on that case is of interview. buying monsanto, creating one of world passes largest agrochemical firms. we will hear from the ceo who should can on the deal after month. in one hour.oses julie hyman has the latest. julie: the essence 500 was recently negative and turned up one again and the dow is in the red down by an point and the

nasdaq is off the highs of the action. the next day, seemingly showing after the roller coaster we have seen in the past few sessions, volume is so elevated, still above the 30 day average. so heavy trading is going on even if the price action has not been as dramatic. where the drama has led is with oil prices in the correlation well as what is going on with stocks. here, you have crude oil today in the s&p 500. we have seen oil down for much of the session and the s&p 500 held a pretty well until about an hour ago oil took another 500 lower in the us you went along with it. that seems to be putting pressure on stocks the most as we head into the close here. another group showing we is today is the pharmacy benefit

managers and that is after the company's cf all yesterday said at a morgan family often spent , are perhapsors differing price increases since other farms event managers income is tied to volume in the overall amount of product they are selling, this could put pressure on their income. down about three point, cardinal areas, one of the other of weakness we are seeing in a market rolling over to some degree as we head toward the close. thank you. now is checked the headlines. mark crumpton is with the newsroom. mark: the atlantic news conference is showing the end he double-a's lead and moving all of the championships north airline appear the move is in response to a a loss comes they could read the discrimination against members of the lgbt community.

the decision includes all championships this act is clear including the football game scheduled to take based in charlotte december. the number two senate democrat is urging hillary clinton to's thick with merrick garland if she wins the white house. minority whip dick durbin shared his views after meeting with judgment -- judge garland on capitol hill. republicans have refused consider the nomination, saying it is the job for the next president. the white house says it will off her trade in a fit to miramar, the leader met today with president obama in the oval office. u.s. president ever to travel there, i could see the enormous potential that andabout to be unleashed nobody represented that better.

companies watched closely for signs they would get more at this fast growing southeastern nation before the former military leaders change the name in 1989. it will improve the nuclear power plant subject to certain commissions of voting to one of the -- one official familiar with the matter. there have an sense about security since the chinese company would provide one third of the financing and the cost is another concern. news 24 hours a day powered by more than 2600 journalists and analysts in over 100 and countries. this is bloomberg. back to you. >> thank you. hank greenberg finally gets his day in court, sued by elliott visser over a decade ago. howard smith accused of reading the books with transactions to hide the true financial condition.

opening arguments began yesterday. david west of with greenberg outside the courthouse. the first session was how this dispute could have gone on so long and why he and you fight it for so long. click did nothing improper. what he did i just cannot accept. >> is your ultimate goal vindication? >> call it what you want. >> more broadly, let's talk about the issue of where the line is senior management between in his mistake that get made in every corporation and wrongdoing. when do we hold senior management accountable? where is a line? difficult. in some states, they understand that they are ready for it. in some states, they don't.

secret. think it is any should not the way you eat drawing the line. >> when you talk about elliott spitzer is long gone is point. we've had events attorney general's consent. what have they told you? then -- a tendency to go at your. attorney general's office, why they have to go after him, they describe him as a rich and business man. i never thought it was illegal to be rich or a businessman or even power. indication to evils play

because they are successful at business, that is very dangerous. frompeople are not immune the law. a lot of things people are upset about, a lot of the people , the people who took over it when he was forced 2005, the-- resign in aople he helped put it off, very risky, he brought down aig's stock, terrible [indiscernible] . so i think there is a lot of anger out there. it is important to distinguish between the executives who have knowledge to participate in

-- nooing, and those who ceo of a multibillion-dollar operation can ensure he is taken care of when everybody in the company is doing it. >> it is disheartening that your own government, the greatest insurance company in his great off or what purpose? do we benefit from that? we used to employ 100,000 people. we are down now. order thousand jobs. not all of new york but nonetheless, around the country and elsewhere. exactly right, the role of government. david: that was the exclusive interview with hank ream berg and his lawyer. vonnie: coming up, what does it ?ake to get twitter

an account kennel. how can wells fargo recover? a rise of streaming services, formers have hit the road to make money in concert revenues have commuted to make records. we will speak to one of the biggest names in business. now.ck look at the majors the essence you 500 down a single point at the moment. the nasdaq is cleaning onto the gains of about one third of 1%. this is number. -- this is bloomberg. ♪

vonnie: late last week, we learned wells fargo had fired

500,000 evil and paid $180 million in fines because employees were meeting sales goes -- sales goals. 3526, the wells are go share price. in -- in pink. most is negative. about to join us on this story because social media just lit up. a lot of outrage. the ceo will be speaking about this. facing a similar audience about his colleague.

laura keller joins us now. it is great to have you here. let me ask you what he can expect when he goes to washington next week. and analysts you quote in your piece says it is never a good sign when you have to defend yourself in washington. >> yes. i think a lot of the analyst we have talked to have really looked at this as a place where congress is going to really stick it to him. not necessarily fair but he is a banker and there are a lot of in washington that people brought up this said, this is an opportunity for the politicians to grill someone who is ahead of a bank. right now, they are a bit of a whipping boy. there from the financial crisis and they play out once more in this arena.

david: this is someone who has an held up in it -- as an is employer in the banking industry here in do we know yet how much this damaged his reputation? >> i think they want to be able to have him go before the panel and see how he does and what the reaction is. even today, they sent out an e-mail to 16.5 account holders, that is more than the affected accounts, 2 million authorized. so they are really trying to move toward. they did do a lot of media interviews today, trying to talk through some of the issues and there are a lot of questions that the centers will want to ask about the details. vonnie: it is no surprise social media lit up, as you can see from that one of chart in your story, negative.

were most of these comments about customers taking steps to close accounts or cut themselves off from wealth argo test from wells fargo and anyway? >> i read a lot of tweets were people were saying, i do not like this and i want to move away the bank. we see people actually do that but i think people look at this and they are surprised. they know what it means. it is not like his other scandals where people have no ap is an is cap and arcane trading problem for example. this is something people can really latch onto. vonnie: you go to the library and you see how they have in with wells fargo because shares fell the most this year and it is a long portrait. thank you. she is our finance reporter, at least one of them. david: time for a look at some of the biggest is the stories in the news right now.

ahead of bank of america's's operations in italy becomes a new chief executive. effective the 20th after feeling a stress test in july. under pressure to raise new capital and sell billions in bad loans. a ceo is standing up for lgbt employees. to bloomberg, the company plans to hire -- the state law he considers to be unfair to gaze. to gays. largestof the subscription service tweeted 40 million customers, up from 30 million in march and nearly double the total at apple. that is your business flash update. vonnie: thank you. music business changed in our miss the. from albums sales to touring.

that makes promoters one of the most important layers of the game. of global music and president of global touring about the changing lance given working with big names. >> when i started in the business, it was a very different model. touring and shows were about selling records. now, it is a different landscape in terms of how people act as an eye music, but what really is highlighted is the live performance is, shows, and tours, it is the way artists and and it israte revenue an activity that engages so many evil because it cannot be replicated.

groupe us a sense of the attentional of the music industry because people like madonna and dance like rolling rely on the touring business for most of the revenue no longer the outcomes sales. >> i do not see that changing anytime soon. the world has opened up quite dramatic the in terms of touring in the last 10 or 15 years. when i started in the business there were 15 to 20 countries that were to take a tour to. now it is 50 to 60. it has changed dramatically in terms of global reach. >> do you think are is a need to revolutionary -- revolutionize the current model? can it be relevant years from now? itthere is no action to me is an experience that cannot be

replicated. it is show is this -- business and there is nothing quite like going to a show and seeing your favorite artist and hearing the song and watching them create a show to present. it is a unique and exciting periods. i do not see it diminishing at all. think some people are wondering how you do with egos in the business. with lady gaga, madonna, youtube, sting, how do you do it? >> i do not and that are too challenging. i expect that artist's have a clear and strong view who they are and how they want to be concert or in the media and i respect that. you know, it comes with the

territory but the rewards far outweigh the challenges. let's put it that way. that was live nation's chairman of is a. marketstill ahead, the may seem to become calm her but we show you why the vote hillary may not be over. this is bloomberg. ♪

david: this is bloomberg markets. vonnie: here is julie hyman. julie: thanks. joining me for today's options insight is kevin kelly. today is a little more calm.

if you look at various indicators, it does not mean you will stay muted for long. >> that was a great time to put on hedges. you know there is an equal and opposite reaction for every action. elevated. we don't know how earnings season will be. earnings season is anticipated to do well. that is what may be the next catalyst one way or another. that is why use a volatility remained elevated today. apple up over 4%. you look at the other constituents, one name is performing and carrying the market. >> doing well the past couple of days. i phone seven orders have been

very strong and even though horizons comments were little more cautious, the stock is holding up well. collects apple, they are not going to disclose their sales. telecom the domestic carriers are you look at the in u.s.ales, 40% here domestic and 60% overseas. they want that to be the next leg of growth for them especially in asia when you look at india and china. they had not gotten the traction they wanted. they said that would drive the stock further. it is good because it is good for the ecosystem. 40% year-over-year. that is great for them. international

demand. you think the phone will drive that demand in china and other entries mark -- countries? software is starting to follow and we have seen the competitor actually have him and they had to pull that out. now that there is a refresh cycle happening, people may switch from android over there. there are great ways to play this in the options market. one way we could do it, the stock has moved significantly, you can sell in monthly call option right here, $112 strike expiring on over 14th. that is the weekly option. a call so you can take in about $2.7.

you're comfortable with the move and you want to lock in the gains, take that off the table, get a good yield, and this is before earnings. you still get that should you like the stock further. four times the amount of calls are being traded in apple. exactly. >> ok. kevin, talking to us about apple. david: thank you. still ahead, we will talk to market currencies in stocks. how you can adjust your portfolio accordingly. this is bloomberg. ♪

scarlet: you are watching bloomberg markets. mark crumpton has more from the

newsroom. military willeli be given 30 and million dollars over 10 years. it is the largest agreement the u.s. has ever had with any country and replaces another long-standing deal -- it calls for italy to eventually spend all the money on the u.s. made military equipment. widespread corruption in afghanistan it -- has undermined efforts to rebuild the country. the specter -- special director says the u.s. contributed to the escalation of corruption by being too slow to recognize the problem as it injected tens of billions of dollars into the afghan economy. leadd trump holds a slim over hillary clinton in nevada according to a new monitor showssity poll that travel with a 42% lead over clinton. and jillson has 8% stein will not appear on the ballot.

gapblicans are closing the democrats and registering key voters according to data compiled by the associated press, which says the juveniles he has also maintained a razor thin advantage in iowa. election day is a deep -- eight weeks away. powered by more than 2600 in morests and analysts then 120 countries, i am mark martin -- i am mark crumpton. scarlet: let's head live to the nasdaq where we have abigail doolittle with more of a check on what is going on. abigail: we have the nasdaq hanging on by a thread. it down the s&p 500 have both turned lower dude -- due in some degree to the weakness in the energy sector. wasreason the nasdaq

sharply higher and now slightly higher is apple. apple is up for the third day in a row for the biggest three-day gain since august of last year. they put out a report saying demand for iphone seven ships or orders for iphone seven ships are better than expected. and of course, apple itself, scarlet. suppliers are helping today. the nasdaqted out, in particular, what reason is there to think the strength will continue? >> from a fundamental standpoint, there is evidence investors believe iphone seven will be the thing to return apple to top and bottom line growth. sales and earnings growing and moving in the right direction again. from a technical perspective, the bloomberg 3397.

this is a six-year chart for apple. typically, most of those have been ready bullish. in the newapple put one suggesting there is more upside ahead. was wroteerm uptrend in a few years ago, a mixed technical signal. we could see the apple rate higher from here. the nasdaq is higher after yesterday's climb and the rally is fairly modest. if you could call it a rally. a standout drag all day has been american airlines sharply on the downgrade saying outperformance, this is a measure of revenue in the airline industry, now priced in relative to peers.

a look at btv 3528, this is american airlines. the moving day average, it acted as resistant to selling pressure on the stocks. back on the 200 day moving average suggesting that could be a downside ahead for the shares of american airlines. they actually raised price target on the downgrade call. stock suggests it would fall well below the new price target there and it is well in line. thank you. >> the selloff in emerging market currency shocked investors while the emerging market index fell 1.7% in a four-day slide. still about the lowest since 2014.

how can you trade around it? joining us now is the head of research at global capital markets. thank you. over the last week, emerging markets have gotten slammed. ultimately, will interest-rate at the long and continue to drive the show here and continue to be what pushes ems around? factors that led to the rally. this point iso now it is a question of liquidity and slows being equally as important as it is fundamental. we see fixed income in the second quarter. the question is, will that continue if the fed hike september?

>> we saw a poll come out at 5:00 p.m. said donald trump was leading by five points in ohio and immediately, the peso has , for instance the view on the u.s. election. you can see clearly on short-term things. here, the peso versus the clinton differential. i guess it kind of shows that but what do you make of that? >> the mexican peso suffers because it is not only a product for the election. the fact is the trump factor is and there is a thread in the event he would become president. very liquid and very easy to immunize the portfolio if they are bearish. a very cheap and liquid currency. undervalued at current levels.

heightened volatility and one month at the futures on terms of the fx volatility, that has surged in the past couple of days. some of it comes on the back of the trump phenomenon. lesset: does it become a -- less of a proxy? >> it is still easy. in front of the possibility of a sinner the next exit increased. looking -- just to get more return. they can fit on 1.5% u.s. treasury forever, they need to look for the return.

>> people have gotten some returns in places like rizzo. they're are starting to see the risk show up. there was a second sunday of protest that he also have some concerns. facing allegations of corruption as well. >> fed fund has moved wants. be -- i continue to be bullish with respect to brazil. upside.ll see

principally move by the fact there is such a massive underperformer for the past few years that there is still upside for fixed income and the perspective. scarlet: china did not come up once during this. joe: people were talking about that a lot last year, lack of demand for raw materials. it is not as much a part. >> i would say it is inciting more interest in yields. commodities are more stable. investors underweight emerging markets to increase valuation to market or even overweight. >> i pulled up a chart going back a little bit. see i have it here, you can see how much it surged lately, right up there. you can see that search.

i want to turn to venezuela because -- explain what is theyning in venezuela? >> have a perverse commitment to paying their debt at the expense of imports. there is a scarcity of dollars. when defense will run out of money? details. have the my concern is investors approaching car. 2020 without the corresponding terms to compensate for that. it is not yet coming to fruition and we need to buy from the private sector to have that be successful. joe: thank you very much. scarlet: coming up, the biggest deal of the year got solidified today. $66 billion.

theill hear from company'ceo. this is bloomberg. ♪

scarlet: time for the bloomberg business flash come a look at some of the biggest is the stories in the news right now. after cutting ties with argentina, the bank is open once again for business in the south american nation. a standoff forced them to close argentina but the bank says the company is more like a to repay debts because of a -- financial and economic sectors. days, thechaotic company is now drawing

comparisons to game of thrones. that is hbo where no character is every truly safe. noted thet notice -- ceo and cfo along with two profit warnings, namely how to improve credibility to an back investor confidence. tnt and tbs will be the exclusive cable homes for all the star wars feature films. network emirsdes of last year'star wars and upcoming road one, a star wars story. uber riders in pittsburgh are getting a glimpse of the future by selling a car capable of driving itself. self driving ford fusions will pick up uber operators opting to but hesitate in the program. they will seize control of things go wrong. over becomes the first company

in the u.s. to make self driving cars available to the public. that is your business flash update. joe: finally clashed its deal with monsanto with an offer of $66 billion. shortly after the announced, bloomberg's executive and -- editor talked to the monsanto ceo hugh grant. >> one thing that is most important to see is what is needed to support farmers in addressing and -- the ever increasing demand for output and more yield. better innovative solutions that have to be developed. you and he have been working on this for years. both companies, what we bring to the table with chemistry and

what monsanto brings to the table with heritage, agronomic analytics, a great combination to help address the challenges. >> because farmers are trying to do more with less. >> and they have to do it in an ever more environmentally sustainable fashion and you can only address it with better solutions that are not available today but that we are working on tomorrow. we have been writing about this since man you have been talking about this since for that. blame butone to himself because the year before that, you were talking with syngenta. do you feel bad you and that being taught as opposed to buying another company? >> not at all. the strategy is the same and has been consistent throughout. it is an industry going to consolidation.

unlockat this as we will yields around the world. they are looking for answers. what -- unlocks that going forward. deal.a great >> you like regulators will make it difficult for you? --seems like the market trades $20 a low. worry the eu let just eu regulators will block the deal. do you fill confident you will do whatever it is needed to get through? >> regulatory challenges have been discussed very intensively as part of negotiations and beyond. you look at it jointly, to assess how big.

because thisd combination is highly complementary and for the size of the transaction, that is what our assessment feared. agencies, they're preparing themselves already now to address regulatory concerns and so they can serve up to what the transaction and the combination to the business line. >> have you laid out what kind of sales you are willing to do to get across regulator concerns? >> we have a provision in the agreement that addresses the volume and also as testimony

they would have to pay should they ultimately not succeed with regulatory approvals and is necessary. >> compared to some of the transactions at the moment, he is the preeminent pipeline. the attraction, the unlock new products but i take that will be a piece of the dialogue with regulators but the overlap is fairly minimal. >> people are concerned about jeanette -- genetic modification of craft. goes away?that will we see the name go away, around for 160 years or more in the united dates?

>> in previous conversations, i have been flexible. getting products developed. it.uld be open to tore are bigger things solve. >> there has not been any discussion around the name. we looked at what we need to do in order to realize that was the first and only priority that has an driving it up until now. >> that was bloomberg's executive editor jeff mccracken. scarlet: coming up, more of the same with the gender pay gap. we have a chart that proves it. this is bloomberg. ♪

scarlet: time now to look at some charset illustrate the market action. ford is holding an investor meeting today and we see shares struggle. since fallen 29% retirement. the chart nicely encapsulate -- encapsulates that action. the red line signals when the era began. he guided the carmaker through the recession and the only big three automakers that did not get a bailout. the 2010 earnings announcement through the high mark, you could see the stock dipping since then. it is not fair to say this is his fault here he was the coo under before that and was president as well and is keeping up with the strategy.

it is not like he changed course in any way. yet that is fairly striking. >> it is interesting because car sales are seen to be very good at record high. so many more cars than it was at 2011 at the peak. that has not translated to a much stronger stock. >> it might have peaked already. >> very recently. still much higher than it was in 2010. all right. i am looking at trading of six. the etn. something extraordinary happened yesterday. had more volume than any individual stock. showed the volume in the etn.

you can see for the first time ever, there was more trading and i think that speaks to a couple of different things. one is there was a shift where people wanted to trade volatility and people wanted to be in those to hedge them and tuesday, a big and very volatile day, one of the biggest we had all year. the accommodation of the reawakening of volatility plus the interest of volatility as a product finally gave it the extraordinary new level of activity. not even volatility as a product but as asset classes. this was not a great that. >> but there is so much interest in taking a position on volatility itself. you can see it is growing. >> we had lead data coming out and what you will find is the latest data showing the gender

pay gap is narrowing, the smallest on record going back to 1960. you will see the white line on top is men. the average male earnings is $61,000 whereas for women, last median pay was $41,000. we are rounding it up. still $.81 on the dollar for the one dollar that they earned. still not exactly where we need to be. $.20 short. least we're getting closer to parity. that does it for bloomberg markets. averagesok at major with less conformist ago before the close. ♪

scarlet: we are moments away from the closing bell. i am scarlet fu. joe: i am joe weisenthal.

♪ [bells ringing] scarlet: oil declining below $44 per barrel. joe: the question is what did you miss? persist.jitters we breakdown moves across asset classes. we look ahead of the fed decision pushing unemployment further lower. donald trump has a five-point lead over hillary clinton in ohio. we dig into the number later this hour. treasury advances.