vonnie: washington, san francisco, puerto rico, and hong kong. climbing higher, post-fed meeting. from the blackrock shares, in new york. it is time for central banks around the globe to act. >> what i would like central bankers from around the world to foris that it is time aggressive fiscal policy. the stakes could not behind a

for both sides. we look at how each candidate is preparing for the highly anticipated event. markets close in two hours and julie hyman is here with the latest. julie: holding any with games andy following on yesterday a little more certainty in the minds of investors as to the trajectory of the red. now that it looks like december is more certain with the data dependent caveat. arethe major averages higher and we are seeing a broad-based rally as well today. real estate stocks at the best individual group. this is a three-year chart of .mazon hitting new records today. they are two of the largest point contributors to the s&p 500. we have been talking for a while about the race to the stock.

upzon appears to be catching as both stocks are trading above. a driver of the gains we're seeing ever since the you k's vote to leave the european union. take a look at the group ranked returns here. i dated this from june 27 after that vote. tech stocks are the best performing group since then up 18%. other movers we wanted to tell $643 million to gain properties in florida. female.cular, a 37% -- premium. lennar shares are up as well. and another company we're watching today, those shares are

aiking 19% according to bloomberg news reporting. the company is achieving the framework to keep operated out of the -- the new proposal has satisfied the new second lien. the may have alienated result. there is some optimism here according to our reporting. david: thank you. now let's check on the bloomberg for his word news. donald trump is calling for a dramatic expansion for energy. he told the shale insight conference in pittsburgh, pennsylvania, he wants a significant reduction in regulations meant to protect his environment of public land. mr. trump: a temporary moratorium on new regulations not compelled by congress or public safety.

he would open federal lands in all sure areas. still leading donald trump. and wallby nbc news street journal has clinton ahead 43% by 37% in a four-way race. a majority of voters view clinton negatively but trump's negatives are even higher. iran's president is blaming world leaders for the spread of terrorism over the last 15 years. military intervention has led to a more insecure world but at the same time, he praised the nuclear deal with the u.s. and five other powers as a win-win for both sides. working to restore electricity for puerto rico's 3.5 million people after a fire at a power plant on wednesday blacked out the entire u.s. territory.

a state of emergency has been cleared by the government, which canceled classes at public schools and universities. hospitals also canceled all elected surgeries and appointments. government employees on puerto rico were given the day off. news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. this is bloomberg. the fixedt's go to income event. erik schatzker is standing by with the global head of lack rock uts unit. erik: i hear with mark weidman. one of the things larry and i did not talk about earlier was the elephant at least in this room, and that is the etf business.

salad andl skip the the soup and go for the red meat. i want to talk to you about the silent road, a provocative piece and you know all about it. it compares asset management and not favorably, i should add. it was called extreme. jack called it idiotic. >> it is a great time for us to talk about the role of etf buses and portfolios. the extent to it things can grow in the markets p are we are years away from that being irrelevant conversation. equities5% of global sit with any investment. ofee children -- $3 trillion hedge fund money.

all out there discovering prices. now, etf's are all very small. >> the rest of us are buying the markets is that. >> its talk about the relationship between strategies and active price setting. even if we are not there yet, at do you lose something in active price setting or the strategy does not perform well enough or efficiently enough because you have lost underlying rights. >> a great question. this as a think about whole, actually starts to earn returns for its clients and expenses. we are a long way from there. we are finding it is not so much versus passive.

how do you use in active portfolios to generate returns when you want japanese equities, brazilian small-cap, or high-yield. >> you are talking about using etf's actively. plenty of benefits. we know about cost savings and to your point, accessibility. than for meeasier to buy japanese equities on the topic. but is there a cost? let's take blackrock's highchairs, high-yield etf as an example. hygmore buying there is of instead of buying the underlying bonds, the less liquidity there is in the underlying bonds in the wider the spread.

>> right now come hyg is about $55 billion in the high-yield market is about 1.5 trillion. we are a pipsqueak with regard to the relative assets. it is a massive trading vehicle and a way to get rapid access to high-yield. it is the most efficient way for investors retail and institutional to buy a high-yield market. you should totally buy that bond. high-yield exposure, this is the most efficient tool for everybody to get in or out of the market. principle for in theory, we are talking about infinite scalability or not here it is very tipping point in which the trade-off tips the balance in the other direction? >> we will know that point when --ive managers are able to that is when we will be there. we're some time away.

shared hisnk thoughts on the growth of strategies with the audience here. two things het believes will fuel asset migration to you etf's. one is lower returns. specifically on lower returns, he said we will need more machines and less humans? that is an onerous statement. >> i think what it is saying is in a world where yields are lower nec on still trading stillve and japanese on trading negative, investors are more price sensitive than they used to be. we have to respond to that by using competitive structures allowing them to use vehicles efficiently and we need to be efficient. it is a metaphor to assess

markets and if that means that certain human labor is less valuable and that is replaced by machines, that is technological process and that is how we think as a technology, eliminate certain investment purposes but freeze up budget for more valuable forms of asset management. >> let's talk about this standard, put into effect by the labor market earlier this year. larry called it a game chamber and i take it you agree. why is it a game changer? >> it is simple. we are seeing a global trend come back to the united states, that the entire world of how we pay for retailers buys is shifting from being about what products we buy to directly paying for advice. fore shift to pain directly advice, it will be a lot bigger than simply retirement accounts. >> i would say over time, it will be most everything in how

people give financial advice. the advisor no longer has an economic sake in which products you buy and he or she becomes much more price sensitive. it means not the end of loss of active, but price sensitivity on active, price sensitivity on low-cost vehicles, and more than they used to. altogether, it means lower revenues and lower costs for asset management industry, that is the game changer he is talking about. more growth efficiency vehicles and plenty of growth for the asset managers. >> a game changer for asset markets and a game-winner for etf's. >> it all comes back to clients. thank you. global head of i share that -- at blackrock. more coming from the fixed income etf midtown.

>> thank you. speaking with the blackrock global chief investment officer at 4:00 p.m.. vonnie: coming up, from the bronze to goldman sachs to fec target. this is bloomberg. ♪

vonnie: just about 95 down .3%.

raised rates at 3 -- by three quarters of one percentage points. the u.s. 10 year yield back down 1.63%. that means it is again flattening 85 asus points. a look at the biggest business stories in the news right now. challengein michigan -- challenge in 2014 loss. franchise dealerships. directly to consumers. the meeting with volkswagen over the emissions testing scandals. compensation. thousands of dollars in addition , europeans will only get their cars fixed. week in april,

down 8000, 200 52,000, below 300,481 weeks, the longest stretch since 1970. bloomberg is this flash. vonnie: to his old hedge fund, now facing the legal fight of his life. following allegations of insider trading, he told investors "it hard work years of and playing by the rules to get ride got and i will not let these people destroy my legacy. here with us now, charting the rise i talking to hedge fund industry experts, he really is one of the standout players. give us the highlights. what did people say after this? brash, aknown as being

very frank and gruff character. that is certainly the way he is handling the invest nation. i do not think anyone is surprised he is fighting back what he sees as seriously misguided allegations. with a five-page letter to investors on why the investigators are wrong, saying i will not go into it. then he had a conference call later in the afternoon about why he is innocent and why they are coming after him. >> it happened about the time that the partners sold one of its units in the city and it appeared, from complaints, that

haveew about this and received this before it was publicly announced, and the sec alleges he traded around it. what he will come back and say is i have been trading for a long time there and he had been in various stocks related to it since 2002. also, i did not make any big moves. i was just going about my business. unclear. he knew it was nonpublic information. that is what it comes down to hear. this will be a process that goes on for years, it will not be over anytime soon. i think what they will need to prove is that he knew it was nonpublic information, that he acted deliberately against the

wishes of the person. you know, it could really come down to a he said she said kind of thing. it is not clear how much this they have documented. again, this will go through courts. he will start residing over this, demanding certain things. it will be a lengthy process. today, thank you for joining us. still ahead, how john oliver the tv host moves markets. next. this is bloomberg. ♪

david: this is bloomberg markets. vonnie: the 50 most influential men and women in financial markets.

the list appears in bloomberg businessweek this week and has some surprises. ellen joins us now. explain how this is put together. >> by a committee of senior editors and writers. david: we have trouble with your microphone, hold on. there you are. by a teamut together of senior writers and editors by bloomberg. the list of 100 and they whittle it down to about 50. david: the president of china is on the list. he and in the president's china as well. >> the president of china has a huge task ahead of them. as -- growing as fast as it used to.

that will affect markets all over the world. vonnie: number 14 on the list, explain who that is. >> the governor of the people's bank of china. he has been in office for about 14 years, widely credited with making this an international currency. it will be in the basket of global exchange currencies put together by the imf. he has had a dramatic attack over time. david: the financial market figures as well. >> she has been low-key over the years, the ceo on j.p. morgan chase and she has become more talking about corporate governance issues and also issues larry fink at blackrock is also talking about,

short termism and how investors for her clients and many retirees, companies need to be thinking longer-term. david: maybe two jamie dimon. vonnie: john oliver, does he move markets? people's understanding of the markets. he has been tackling financial issues for a while. his show on puerto rico's debt was probably watched by millions of people who suddenly moved puerto rico's debt and he has total of issues that are effective markets.

david: mags and reporters and editors every sunday on bloomberg television. vonnie: still ahead, a check on crude oil today. $46 per barrel. -46, up 1.5%. this is bloomberg.

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let's check in on some of the day's egg movers. oil afterith crude they felt by this $.2 million last week. 36 a barrel up two and a quarter percent. their highest level in more than quach or years, up to and a quarter percent. having an impact there. .alm oil rising today finally, in metals, gold is rising. gain of almosta three quarters of 1%. from gold to diamonds, yesterday u.s.ke with -- at the business forum in new york. i asked where his company plans on opening new mines.

south, the just largest new diamond mind -- mine opened in the last two years. investmentollar between us and our partners. our believe in the long-term future of the diamond industry, sending that kind of money. >> that is another indication that is where people are looking. classic comes from sub-saharan africa. >> great minds.

long line, very good -- >> are you investing in that direction or kind of the kinds that you have worth more. >> the places we currently are. vonnie: that was her interview with the ceo. david: breaking news from yahoo!. the copy of certain user account information, one stolen in late 2014. the actors responsible for that information. it may have included names,

password, unencrypted security questions. the investigation should -- suggested did not include unprotected passwords and bank information. information from at least 500 user accounts stolen. no evidence the state-sponsored actor is currently in yahoo!'s network. the headlines. mark crumpton has more from the newsroom. >> the state of emergency in charlotte, south carolina after a deadly police shooting pier 1 one man shot and credit he wounded wednesday night but shotrities say he was not by police. in tuesday's shooting, authorities say a black man over demands to drop his gun. neighborhood residents say he was holding a book and not a weapon. loretta lynch says the obama administration is taking action. >> today, the department of

justice taking four members to charlotte or the office of community oriented policing services has offered technical assistance and support for crowd mediation to local police at a local fbi office stands ready as well. : charlotte's police chief says he will not release video until the family sees at first. fargo, america, wells and duke energy all told employees not to go to work today. mayor will deliver his new and more comprehensive public safety plan for chicago today. the speech comes as the nation's third-largest city deals with the most troubling spike in street violence and an investigation of the police department. has announced plans to add nearly 1000 new police officers, expand the use of body cameras, and order mandatory de-escalation training for all officers.

there is a last-minute scramble in congress to prevent a government shutdown. congressional negotiators are trying to come up with a stopgap spending that keeps them running past september 30. they have not been able to solve a number of issues, including disaster aid, money for the zika virus, and the budget offset. pakistan aranted terrorist state. made before the united nations general assembly. came in response to earlier comments by pakistan's prime minister who demanded the you an investigation into what he called brutalities by indian forces. india blames pakistan for a rebel attack over the weekend that killed 18 indian soldiers in the disputed territory of. day innews 24 hours a over 120 countries. i am mark crumpton and this is bloomberg. back to you.

vonnie: donald trump went after clinton's energy is while speaking at a conference. mr. trump: hillary clinton will cost our economy $5 million at least. she has not only declared war on the miners put oil and natural gas. it supports 10 million jobs in the united states, and you know it is war. it will be worse under her than it has been under president obama. david: donald trump has energy speech comes on monday after racial intent -- racial tensions explode after charlotte. let's start with charlotte. both candidates have weighed in. donald trump has called for a unity message and he says it seems like there is a lack -- between white and black. donald trump us his words there. what have you said? >> they have, to say they want to see

unity among people. they obviously do not want to see ongoing violence and protesters. donald trump has started to modify his mess j little bit. he is still talking about support for police and law and order. he also has concern about times when police have been involved in shootings of people whether unarmed or not. hillary clinton continues to talk about the kinds of things she has before, justice reform and in his cooperation between communities and police departments and that sort of thing. donald trump has begun to modify his statements a little bit. vonnie: hillary clinton has campaign events between now and it first debate -- first of on monday. is that a mistake? should she schedule a public event to address the situation? good question.

hillary clinton has certainly come out in number of times and we have seen the shootings just yesterday, she referred to it as should be and what intolerable. she has done well in the black community. this is an area in which she is visible. it is good for candidates to perhaps address it and that may be something they will do temporarily or briefly while she is prepping for the debate. >> the governor is addressing people import charlotte. you mentioned the debate in the last answer. let me ask you how the candidates are preparing for that. have the candidates decided how they are perching that event? >> absolutely. in some ways, it is typical of how they prepare for a lot of things in the election cycle. hillary and and is hitting the books, she is reading and rereading her briefing papers

and doing mock debates with her team. she is practicing for what she has called not knowing which trump will show up, whether it will he aggressive or the more presidential trump that we have sometimes seen over the last two weeks. donald trump is also meeting routinely with trump advisors but we do not believe he is holding formal mock debates and an attempt to do her answers. we know he is being urged to go after her aggressively but being warned against being a bully. funny: thank you for joining us from washington, d.c. a programming note, tune in to bloomberg television at 8:30 eastern time for the presidential debate. john heilemann will hold a preshow and a post-show and the whole will be live streamed to a new partnership between

bloomberg media and twitter. >> coming up, the prospect of the transpacific partnership may be up in the air. about negotiations and what happens next, this is bloomberg.

david: both presidential candidates are opposing the transpacific partnership and chances of congressional passage during the obama administration are dwindling with each tick of the clock. i spoke with the ambassador and u.s. trade representative about weather is always so much anger with trade. >> trade has always been difficult.

beenhave always controversial and go back to the late 1990's. conferences of seattle, less than 4% unemployment, created 4% jobs, you still had people very concerned about globalization and trade. .here is more continuity of course, in this campaign and the political and lineman, a high profile -- the year has -- increased animation, they are important issues of today, not necessarily affected trade but trade agreements become the scapegoat for other economic ills that you do not get to vote on. -- it has become a major issue of customer sheep -- controversy. >> the stores in seattle, it strikes me people still have that perception of trade agreement.

? this product over the last 15r's in the economy, million new jobs, including over 800,000 manufacturing jobs. we are now manufacturing more in the united visit ever before. we are doing so would few workers and that is the result of automation. the impact of globalization on american wages, no doubt about that. globalization is about shipping and the spread of rock band. it is a force, a genie out of the bottle that we will not be able to put back in. the question is what do we do about it? to we shape globalization make it work for americans. for many others, it is the escape goat against things you do not get to fight against, like authorization -- automation. about the marquis agreement that congress is weighing, the ttp. you are here in new york meeting with 12 liters for some time now. how have they reacted to what

seems like diminishing support for lawmakers for that trade deal? >> they're quite concerned and there are a number of them here for the general assembly meetings. i've have seen some quotations from the prime minister, among upers, who have been talking out how important it is that ttp move forward. both economically and setting the rules for the region in a way that reflects our collective interests and values, but also strategically and how they view positioningategic in the pacific. every country needs to have a good and constructive ,elationship as china and ttp we are not interested in containing china. itself inhina exerts the region, the more our allies in the region want us to be involved. they see ttp as an important

part of the commitment going forward. >> did you tell them some -- things can get past? >> they follow our politics closely and we consult constantly and we inform them of where we are in the process with congress in terms of working out outstanding issues and loving support on both sides of the island in both chambers. they themselves have been trying to make the case in washington around the country about how important this is to get done. we try to provide that insurance but we know that -- we know it will be challenging and there is a pathway forward here we have a window to get this done and they are fully committed and the president reiterated this, fully committed to doing everything we can. >> other members of the cabinet as well. a critic could say there is disconnect there are looking at the rhetoric of capitol hill and what the administration is saying. >> i think the reality is, we talked to members of congress.

i am basically up on capitol consulting with members of congress. much more support than the headlines would have you believe . it is clearly a challenging political environment and no one wants to focus on this prior to the election. a lot of support out there and as members of congress learn what is in the agreement and how it benefits constituents and the key stakeholders they care about, agriculture suppliers, cattlemen, pork reducers, the farm bureau, or manufacturers, technology community, the content community, hollywood or theyding artists, understand what is at stake in they are increasingly understanding what is at stake strategically for the united states. that is a -- bipartisan issue that all officials want to make sure we are not undermining u.s. leaderships in the critically important region. >> what is one thing they do not

get about trade and trade deals? what issues will you try to make that are here as we head toward the term? >> because we are an open labor right-wage now, whether it is mexico or vietnam or any other country around the world. i understand people feeling uncertain about whether the system is fair, that other countries do not have to live by the same rules that we do. the question is what you will do about it. the choice is not trained ttp and the status quote. is in the absence of ttp. our view is you can use agreements to shape the global economy and make it better our values. if we do nothing come all the things we complain about around global economics will continue to exist. whether we want to take action to actually fix them, ttp is a significant step toward in

addressing precisely the number of issues clicks have raised. david: coming up in the next hour, i will speak about why -- is supporting the ttp. julie hyman now for the spider sector report. julie: i am looking at homebuilders. they weref days ago, going down, equities tweet up by 1.1%. we got disappointing data on housing starts and building permits. more disappointing housing data and if you look at existing home sales, that is the number that came out today. we saw on unanticipated month over month decline scenario peers of 5.3 3 million. here is the longer-term five-year chart any see the downtick at the end of the screen. why are homebuilders fed up? it has something to do with the deal at the top of the hour. they agreed to buy wti communities and the value goes

to above $800 million if you include debt. i want to zero in on something else i mentioned. they are trading above the offer price of 2350 per share. they mentioned several times in commentary today that it has time to shop for other officers. that was point out in a story today and said this could be a hot commodity. they are reserving the right to offer all-cash. it is a cash and stock deal. centered in florida where a lot of its pop he is. a selling price of $445,000. you can see why it might the attractive. other homebuilders are also rising, based in's gusto, homes based in columbus, ohio. then on the smaller end, armstrong world industries, and

one of the largest homebuilders. it is interesting, the ripple effect one deal has caused. these sizes of deals are relatively rare within the home building industry. shares of linkedin made an about-face after microsoft sold for $26 billion. we will hear from the ceo about what is on the frontier. ♪

david: this is bloomberg markets. vonnie: linkedin has unveiled its latest product. along with a redesigned desktop and a new feature or two, and has also introduced a new product.

emily joins us now from san francisco. what do they amount to? emily: the deal of course has not been closed yet but one and he did say is he has been rolling up his sleeves and digging up with the team, talking about where the integration starts and what happens first. a look at what he has to say that where he thinks he will see the most product -- >> i -- identity assets in outlook.com so when someone sends you an e-mail, you know who they are. less familiar, you can add them to the network that makes sense. job, whatey changed a company, -- >> one of the most interesting things is they have both said

linkedin will remain essentially a company operating independently sort of like facebook and instagram and jeff they are verys much aligned on that. i believe one of the most interesting things he said was when they announced the deal, it surprised everyone except for about 250 people inside linkedin who were told about this ahead of time and that there were no leaks and no one talked to the press and he think that's beast to the culture but one of the most important things they want is to know ahead of time that so they could process it and be on board when the deal was announced. the prospectbout for more m&a? emily: the deal has obviously kicked off some more m&a but there is some more m&a. more to come. take a listen. >> i think it is more about how

the competitive landscape continues to evolve. i think we will see more rather than less consolidation. >> specifically with regard to business applications that may be purchased by some big cloud companies p or you can imagine amazon or google. we have seen some of these companies acquiring companies and that is where he expects to see more. >> thank you. you can see more of the interview coming up on bloomberg west is :00 p.m. eastern. from: coming up, we hear david about why he is supporting ttp. this is bloomberg.

david: welcome to bloomberg markets.

we are lie from bloomberg warhead could -- world headquarters in new york. stocks, bonds, and commodities are in rally mode of stocks are off the high of the session. ups moves millions of packages around the globe in the head of the country says now it is time to pass the transpacific partnership. we will hear from david in a few minutes. he was homes unexpectedly declined to a six months low last night. prices have been kept high. money: one hour from the close