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

of trading and we check where markets are in a moment -- in a couple of moments. first, we will head to your interview. >> very good. the time now is to pass the transpacific partnership. .o approve the trade deal i spoke earlier today with him. >> you have to remember we did not manufacture anything but when we look at trade --eements, we are looking at through the eyes of customers and they tell us they need to be able to hit the markets covered is important to them that they need market access, some of the complex be taken out of international trading rules. is why we are supporting ttp. you have got a hub in china. it is pursuing a trade deal.

case forild your passing ttp, how integral is the fact china is working on the other side of the pacific on a deal of its own? >> that is true. negotiating and we believe it is a good opportunity for american businesses and american workers. if the u.s. is involved in setting the trade rules for that part of the region, we believe things that are important to us like labor coverages, environmental issues, those areal property, the things they think the world's best suited at the u.s. takes leadership in ttp. david: let me ask you about the optics of speaking out the way you are. those who oppose the deal say this will intrinsically benefit big corporations and you are at the head of the big corporation. are you worried your giving graft to those critics by being so vocal about it?

>> this is an issue where we have to do what we think is for our company, our customers, and our country. believe this is about being able to reach the emerging markets, that the economies are continuing to grow, that this is actually a job creator and not a job killer as some portray it to be. david: i think of your career. you started out as a college student working at night loading trucks. would a younger david have understood the indications of the deal? >> at that time when i was 18 years old, i would not have. it is one of the reasons not only are we having discussions with our customers, showing them deal, butages of the

also talking to our employees and letting them understand the importance of it. a key fact for us as a company that we 22 packages process across the border of the united states, creates another job for ups. come -- our employees can relate packages to jobs and that is the point we are making. david: are you surprised how politicized this has become? i am surprised he little bit how vocal the opposition has been. it is up to us. those of us who understand the trade deal in the 95% of the world passes consumers, the key to american businesses and american workers to be successful is to find ways to serve the markets.

it is up to those of us who makeve in free trade to sure we get our message across and that is what i am doing. david: we had that provision a few days ago on secretary of the treasury said it could be a turning point in the conversation for corporate tax reform. you reacted to that decision? know that it has a direct impact on us with the apple decision. i can tell you we absolutely support content tax reform in the u.s. we are looking for stability for a permanent rate and looking for a competitive rate, i think it and for a5%, competitive, territorial tax to where companies can

bring back profits to overseas. we believe this is a big issue. we understand to get that competitive rate, we would need corporate taxder base and we are in support of that. is anothernk fundamental aspect of working with the u.s. government, that we need to change. >> speaking with me earlier today. with a check of the markets now. was -- if you minutes ago. affect, with fed the language in a statement saying risks are balanced. see the path appears to investors to be a little more clear for the moment. take a look over the course of the day.

we had a depth. stocks have recovered and it is not clear what the dip was all about. moment, it looked like things would go south. what cap stocks afloat and what has been a big source of strength not just today but over the past several months, large-cap tech's shares. trading records today, apple is rallying once again as well. that is a big heart of the gains we are seeing today. laggards, those dragging the most on the s&p 500, a mixed bag. rallying on the week. microsoft, it looks like it is doing well today. yahoo!, we learned in the last hour, confirming that 500 million accounts have been

affected by a hack attack. higherually trading perhaps on the sheer volume of this. we were saying in the newsroom we did not know how many accounts it had. it was not something it had revealed in the past but shares are since lower and off by .4% as we continue to learn more about this attack which yahoo! said happened in 2014. verizon learned of the attack just two days ago. money: thank you for the update. let's get to mark crumpton in the newsroom. mark: the police chief of charlotte, north carolina, says he plans to show video of an officer shooting a black man but the video will not be immediately released to the public. the police chief told reporters the video does not definitively the 43-year-old plane the guide anyone.

police fired tear gas last night at demonstrators are one man was shot and critically wounded but authorities say he was not shot by police. governor of north carolina has declared a state of emergency in charlotte and the mayor is considering a curfew. with thee partnered state of north carolina for additional resources to care for our city. and to secure the safety of our citizens. the safety and security of our community as well as law enforcement officers remains our top priority. police say he ignored demands to drop his gun. neighborhood residents say he is holding a book, not a weapon. bank of america, wells fargo, duke energy, all told employees not to go to work today. president obama will veto a bill allowing 9/11 victims to sue saudi arabia. that word is from josh earnest who says the president believes the law could lead u.s. officials open to retaliatory

losses in foreign courts. american general says the rocket that landed on a military base in -- military base in northern iraq cause human skin to blister. that general joseph made disclosures at a committee hearing today. yesterday, islamic state may have attacked with chemical weapons. contained sulfur mustard blister agent and known was injured. yahoo! extending an advocate -- invitation to address israel passes parliament message. said in return, he would like to address the palestinian legislative council. palestinians have adjusted prime minister netanyahu's pass offers for meetings saying there is no point given his hard-line positions on all core issues. global news 24 hours a day power

by more than 2600's and analysts in over 120 countries. i am mark crumpton and this is bloomberg. vonnie: still-- to come, they start to take their money away from real estate and put into technology. we will explore if the chinese government is ready to step in. and a quick look how markets are faring now. we are trimming some of the gains. the dow is up .6%. the s&p 500 is up 14 points there and the nasdaq winner once again today, up .8%. this is bloomberg.

isny: -- vonnie: this bloomberg markets. david: a raise a concern on german politicians, great people familiar with the matter. the u.s. seeks a $14 billion fine of deutsche bank. they handle the mortgage securities during the 2008 financial crisis. tesla suing governor rich -- rick snyder, challenging a 2014 law that says automakers can only deal of franchise dealerships. was denied for licenses to sell directly to consumers answers -- service vehicles in michigan. willanadian trucker group -- radar sticks on the back of a tractor-trailer container and updates its owner on temperature, location, and other data or it the device is part of

the ceo's's campaign to use the patent and expertise for new industries. that is your update. vonnie: the line between china's financial sector and real estate market might get more blurry. the company is starting to look like shadow banks. me now is betty liu. thank you for joining us. why are companies doing this? >> it is bizarre. how ithand, you can see makes dan -- makes sense. growing by leaps and bounds, it is a good business opportunity and you can make quite a nice profit margin doing that. but it is bizarre. property -- it doesn't seem like it would comply with market regulators at all. neither one, we are not familiar with them at all. they are very domestic. china greenland properties is

one. they are justifying this by saying it helps diversify their business because the property sector is in a bubble about to burst and they're looking for ways to safeguard against a total bust in the property sector in china. david: is this doing anything to feel -- and china? is it you want to be totally cynical, there could be something to various because here we are, chinese property developers loaning money to investors who then put that andy into real estate continue to increase property prices. so there is concern about that. part of the reason why is also because it is not transparent who these investors are, what it is being used for. there is very little transparency around that. vonnie: doing anything about it

or expressing the wish to do anything about it? itthey are keeping an i on but are not doing anything about chinese property companies going into internet financing or online financing. down on thecking online finance industry overall because it can become a very dark shadow banking type of market. as we saw in april, the government crackdown on a lot of lenders. the names are funny. of stuff going on. they have cracked down but the market is over $2 trillion now. so it is huge in china. david cohen the currency decisions a few months back, there was a push and we have seen that more widely than the central bank in china.

how are they navigating that? >> carefully. but they are moving in the right direction and trying to be more transparent. you see that from the top down. but there are many problems. yesterday, we saw the news out giving the clearance to be a u.n. trading hub. banks can do this but they do not want to do it or they are reluctant to probably because they disclosed so much information, they are worried about some of the downfall and the lack of transparency on the side. digesting, as we are today, the fed market -- excuse me, the fed and the impact on the market. also, the japanese markets coming back online. will see reaction, kind of

underwhelming the market, surprisingly. it was justticed above 100, just below 101. all right, betty liu, thank you. andd: still ahead, options sites. looking at trading in the s&p 500 etf. why our next guest says it is time to buy. this is bloomberg.

david: this is bloomberg markets. time now the options insight in that is julie hyman. julie: thank you. joining me is tim, lead strategist at delta derivatives. tim, we have now seen a rally for a couple of days in the wake of the fed.

what kinds of indicators are you looking for in the options market as to whether this will continue? >> we are seeing a stall out. we had the monster rally yesterday and this morning. we saw the vix briefly traded below 12 and rate above here. complacency is back. i think this has stalled out and we may have a countertrend pull back here given the veracity. >> fundamentally, what are some of the other statement -- signals folks will be looking for for the markets in the next several weeks? of the big out earnings cycle, certainly. we have had earnings decline. stocks are not cheap at this

level. by lowering gdp estimates, maybe that is it for a while. cheap money, expensive stock, unit and yang here. going forward, maybe something irelandurope, certainly and bank of japan, kind of disappointed in their monetary policy when they came out of it as well. >> are those risks big enough to start to put on protection here? >> absolutely. will getot think we that simple because money is cheap but once it begins, certainly, they will taken minimal and that may come into play here. oil heading lower has in the linchpin behind the beginning of the rally. i think you could see 3% pullback even the rally we have seen. it certainly would not be anything technically damaging.

what kinds of traits specifically would you be putting on? >> i am looking at using the s&p 500 etf. looking at the vix, the lowest we have seen a long time. shorter-term options cheaper. next week read it to 17, trading under in essence a nine vix here, only up 50 basis points. just looking for a pullback. a 1% pullback, i like the fact that you can get in at the cheapest level in a very long time. >> i believe this is the biggest two-day rally since july with the s&p 500. we may see that kind of pullback. thank you for talking to us about what is going on in the markets now. vonnie: thanks. , covering the

conference, let's dip into the bloomberg terminal. i want to show you a chart that you can access. shows the performance of emerging markets particularly in the last couple of days since the federal reserve did nothing much, we see a continued markete for developing shares. david: it looks like that rally in emerging markets etf on the heels of the federal reserve decision yesterday, widely suspected the fed would not do much yesterday. janet yellen saying the economy looks pretty good, perhaps we will raise but not yet. >> 18%. it continues for emerging markets, at least for now. we care currencies do not hurt and mexico is feeling a lack of rally from the federal reserve.

david: a new chart hourly. still ahead, we will dissect the housing data and examine why .ome sales resale and economists will join us from washington. this is bloomberg. ♪

matt: from number growth headquarters in midtown manhattan, you are watching

bloomberg markets. i am matt miller. joe: i am joe weisenthal. matt: let's check out the headlines with mark crumpton. rahm emanuel and chicago will offer details of a new more comprehensive public safety plan. his speech comes as the nation's third largest city indoors a troubling spike in gun violence and a federal investigation of its police department. mayor emanuel has announced plans to add 1000 loves, expand use of body cameras, and ordered mandatory de-escalation training for all police. security camera footage from the restaurant in new york shows bombing suspect ahmad khan rahami pulling to suitcases from where one of the bonds exploded. prosecutors have charged ronnie with setting a bomb in new jersey, and two in new york city. one of the devices in and had did not explode -- in manhattan did not explode. authorities are working to restore electricity to puerto

fire at a power plant blocked out the entire island. a state of emergency has been declared by the government, which canceled classes at public schools and universities. hospitals also canceled elective surgeries and non-appointments. most government employees in one to were given the day off. in minnesota, a judge has scheduled a closed hearing next week to deal with disputes over the estate of the late rock superstar prince. the order does not say what the disputes are about, or which potential heirs are involved, but it says oral arguments will be heard next thursday. prince died from a nexen of drug overdose in next accidental drug overdose in april. day, i ams 24 hours a mark crumpton. this is bloomberg. matt: thank you very much. markets close in just under 30 minutes. you can see green on the screen. whether you are looking at the

nasdaq, the s&p, or the dow jones industrial average -- let's go to the nasdaq market site where abigail doolittle has more on what is gaining. abigail: i like that -- "green on the screen." it is your kind of a day, the big rallies being driven by tech. the nasdaq is on pace for a second record closing high in a day or two days, and behind us, technology -- alphabet, apple, amazon. we have both alphabet and amazon trading at record highs. as for amazon, the stock is at record high analyst jim kelleher saying he likes the amazon prime services, says it will help amazon be the dominant player in e-commerce -- e-commerce. he also likes the cloud unit and set a $935 price target, suggesting amazon could climb higher. now, but backord

in february commit was off 30% for the year. is there an outlook that sees mazon getting choppy again? abigail: interesting the, we go into the bloomberg and look at 35.. #37 it is a chart that shows a beautiful bull run after amazon reported a better than expected april quarter, and lots of twongth being driven by bush congestion areas. at the end of august, the uptrend started to break. interestingly, it happened on an area of bearish congestion. the sellers are more dominant there. we can see that even on a record high, it has been cap by the ascending selling pressure. this may suggest we could see amazon dropped back down toward of bottom of the area congestion, $750, and if the congestion happens to break to the downside, amazon could go even lower from there. perhaps it will be choppy for

the shares of amazon. access theder to ,harts, you have to type g #btv and the number, but if you want to library, type in matt miller, and it will autocorrect to the library. abigail: he is proud of that one. matt: i that that is something i can tell my grandkids about. thank you. declined and homes signs point to discouraged buyers and the limited selection of property keeping prices high. dataext guest says the raw you roads picture of home sales growth. joining us now, nela richardson. thank you very much. what is the data you are seeing telling you where the housing market is going? ms. richardson: things in outlook look as bad as they seem. if you take july and august together, july looked worse than it was. august -- excuse me, july was

better than it was. august worse than it was. when you ticket two months together, the picture that you sales are still on track to be about 2015. the market week early -- it peaked in the spring. we are seeing a slowdown in those two months taken together, but on hold, this will be the best year yet for housing. scarlet fu: i wonder how much given that thee spring selling season is important for any given year because people want to be settled before the school year begins. absolutely, the single family home, the large, high-priced home, it is usually in high demand earlier in the year, and we saw the market peaked much earlier than it usually does. it in march, and the reason was there were so many aggressive 2015 buyers still in the market, still trying to buy. they came in early. they were playing for keeps, and

they bought early. now you see a different type of higher -- a more patient buyer, who, you know, will take their time to find a home that is right for them. matt: i know there have been labor shortages and credit issues that have kept people from building new single-family homes. do you expect to see that ounce of? well, thedson: builder certainly do. they have the most confidence in new construction going forward and we have seen in a long time. they are confident about teacher and present sales of single-family homes, and we have seen some of these constraints like credit constraints relax a little bit on the residential side. they are finding more funding. labor is still an important factor. there are still not enough workers to build these homes. so, that is still a bottleneck in supply, but in terms of demand boosting supply, they are definitely showing that, and better news for buyers, they are starting to build starter homes again, and that is great for the first time homebuyer.

to go to thatng point because there are a couple of tracks have done well -- high-end as well. homes in prime cities have done amazingly well since the crisis -- san francisco, l.a., new york -- what you see in terms of geography people had not been paying attention to, and price levels, such as the starter homes, that for a while had not been getting built. is the housing boom -- recovery, broadening? ms. richardson: we are seeing some broadening could we track 91 of the largest metro areas in the country. 50% of them had double-digit sales growth year over year in august. that, again, gives you another lens to add to our numbers. we see huge growth in places like detroit, grand rapids, michigan, columbia, south carolina, to give see, new york -- this is not just an east coast, west coast story. the broad, based, strong recovery through the year.

where we feel softness is in places that have been before. d.c. and san francisco. joe: i was in detroit over the weekend and i talked to relatives saying they have seen neighborhoods seeing more investment than we have seen in decades. scarlet: you see some catch up in these areas. i like what you said about how the buyer is more patient that perhaps earlier in the year. tell us more about the more patient higher -- how dependent are they on financing? we know the federal reserve decided to keep interest rates on hold this past week, and, of course, they are looking ahead -- investors are looking ahead to a rate increasing december. with that make a difference in how buyers approach purchases? ms. richardson: it will not really make much of a difference. we survey buyers routinely. we asked them what a full 1% increase in the 30-year mortgage rate -- would it affect your decision to keep looking, make an offer on a home -- last year,

a low number said yes, it would affected. this year, 9%. even a lower percentage this year than last year, 50%. are still high. even if they move up 50 basis points, you will have an historically low rate. buyers understand that. buyers getting mortgages as easily as they were last year or five years ago? ms. richardson: no, unfortunately, there are sticking points. we are seen in a still hard to get a mortgage if you have less than perfect credit. thanks have loosened, but they are not loosening. so, if you are on the margin in terms of credit -- your credit record, your credit score, it'll be hard to get a mortgage. it may be hard to compete with people that have more cash, more down payments to buy those homes that are really in hot cities. scarlet: final question for you -- you say all signs point to a strong fourth quarter when it

comes to existing home sales, sales of previously owned homes -- if you had to point to a challenge, would be on the supply side or the price said? ms. richardson: supply for sure because where we need supply the most is the first-time buyer, the millennial buyer, the affordability. we have not seen the supply come back in huge numbers. like i said, i am optimistic elders are starting there, but they have not done so for the past three years. they have been on the high end. we see much more inventory on the high-end of the market than the low end of the market, and we do have pockets across the country where things have not taken off at all. parts of cleveland, for example. still seeing, real estate is location, location. we are not seen enough for the first time buyers. we still see some areas of the country that are tied to the rest of. neither richardson, thank you for the great -- neither richardson, thank you for being

with us. coming up, --scarlet: coming up europe isn't dangerous water. blackrock's larry fink shares his insight next. this is bloomberg. ♪

♪ is bloomberg markets. i am met with her. the ceo of the world -- matt miller. ceo the worlds largest asset manager, blackrock, larry think, says continued uncertainty and the lack of fiscal action will lead to a global market selloff. he spoke with erik schatzker from the leaders circle in new york. i think-- mr. fink:

political uncertainty is getting larger. uncertainty around brexit is only getting worse. i think we have witnessed -- we have not witnessed erik: aren't the markets telling us brexit is not a big deal? mr. fink: i think, then, the market is not focusing on brexit, or you could interpret it is not a big deal. it will be a big deal. brexit will be a big deal. erik: define big deal. mr. fink: initially, the uk has benefited the weakening of the sterling. we have not even begun the whole concept of brexit. the prime minister suggested that she may apply for article 50 at the end of the first quarter, second quarter. there is time. there would be a lot of noise around that. from what i hear, talking to ceo's in the uk, they are not incrementally hiring. they are not incrementally

planning to invest in the uk until there is more certainty. so, i do believe that brexit will be a big deal. it will have egg consequences -- big consequences in the u k, depending on how the negotiation goes. you suggested the italian referendum. this is serious for europe and italy. if the referendum goes against the prime minister, and there will be greater uncertainty with prime minister renzi, which, in itself, is destabilizing. we witnessed in germany, chancellor merkel losing some of her power. i think she has regained it in the last few days. obviously, her coalition has changed quite a bit through these elections. so, i would argue we are in more dangerous water in europe than we have been in years. erik: so, if you were to -- again, you just said you were less optimistic than the market about many of these things, and we are talking about financial markets broadly -- stocks, bonds, currencies, etc.

where should things be? mr. fink: here is the problem -- if we have more of the same for the next year, the markets will be quite a bit lower. erik: they will be quite a bit lower. "quite a bit" means what? mr. fink: 15%. erik: 15%, if we have more of this unconventional policy. mr. fink: and no policy changes, and results politically with a referendum, things like that in europe. erik: with fringe parties getting bigger. mr. fink: if you have more politcal certainty after november -- if whoever wins the presidency focuses on fiscal policy. if the prime minister of the uk, as she understands brexit could be a big problem, on more fiscal policy, you could find ways of reigniting the economic conditions of the world, which will help the capital markets. erik: people have --

mr. fink: we are at this pivot point that is quite binary. my worry is the market is more binary than the market is trading. erik: in other words, we do not bump along with the s&p at 2150 or 2200. it is either down 15%, or -- mr. fink: up 10%. erik: the pivot point happens when? mr. fink: we will learn more november 7. erik: there will be more certain whoertainty regardless of wins the election. mr. fink: anger does not go away with an election. we have in many countries -- brexit was 52%, 40%. we have divided governments -- 52/48 we have divided governments. here, we have divided countries -- governments across the board.

it is very emotional right now. i have never witnessed worldwide, more emotion. erik: that is the demand on the street level. you also mentioned ceo's in britain you are talking to are not hiring. mr. fink: let me restate that -- in the united states, i think the fourth quarter will be slower than the third quarter. there is no reason to invest until you have more certainty. erik: we're talking about revenue, profit gdp growth? , mr. fink: gdp growth. gdp growth will be weaker until we have more certainty. second, as we enter the realm of the sharing economy -- if you are manufacturing, you do not have to buy the equipment. you could rent it. during this uncertain period of time, i think you will see more -- even if you have demand, you will be renting until you have greater certainty in the future. i believe across the board -- whether it is buying computers, buying the tractor, or something

related to construction, you are renting. i hear this across the board -- that the decision for capital expenditures has been slowed down, but that does not mean they are not adding capacity through renting. joe: that was blackrock ceo larry fink in an exclusive interview with erik schatzker. scarlet: as the rally in european equities resumes, curbing bearish stances could we have the charts to prove it. ♪

is bloomberg markets. i am scarlet fu. we are moments away from the close. let's look at some charts that illustrate market trends. i am focused on something our intelligence analyst published today -- a report on the great cost migration in investment radix because in a low-growth,

low-return world, you have to watch your costs and investors are returning to lower-cost funds. mutual fund puppies are reducing fees to try to stop the exit is, and fees have dropped across. the exact number does not matter. you can see the red trendline going down. equities expense ratio is now 0.7% versus 0.9% in 2010. the question is, is this enough, because even after these slides, these mutual find that mutual fund fees are higher -- these mutual fund fees are higher. they have a long way to go. joe: it is extraordinary -- what will turn this around -- there is an endless sucking sound of fees. scarlet: and how to make up for it. joe: the industry wants to sell etf that do more stuff, high beta -- but it is hard to imagine that trend reversing anytime soon.

matt: unless you get some of that is extraordinarily talented, right? joe: individuals will do fine. but overall -- i am looking at a forecast for european stocks. for the first time in a while, strategists have slightly up the outlook for the stoxx 600, the big and asked. the euro -- index. the euro is up. the market has blocked -- they usuallynd follow the strategists. isre is one that thinks it quicker to ease than a little while ago. there is also talk of physical expansion, -- fiscal expansion, and the loosening of handcuffs that prevent government from spending. maybe the economy is doing better than people thought. we are starting to see tentative signs of optimism creeping into european equities. if you look on a valuation basis, european stocks could look much more attractive.

out: i am going to dampen some optimism in the u.s. -- i have a look at inflation. it is interesting. hillary clark put a lot of these charts together. she has, kind of, a nerd, so the first thing she looked at is the probability distribution of inflation. this is core pce -- what the fed looks at. it just shows you this is the current situation that we are in -- almost 1.6%. the median, mean inflation, going back as far as recorded data, is 1.68%. the fed target is up here at 2%. so, a lot further away, and a lot less likely than where we are right now. much lower than we typically would be a look at core pce going back to the 1960's, before i was born. we had core pce holding under 2%. said would inflation ever

rise -- people have that mindset now, but indeed, in 1966, it rose -- in eight years, to less -- from less than 2% to more than 10%. inflation can pick up quickly and go if given a chance. one of the questions is what would it -- what would push inflation up, and hillary took a look at the trade-weighted dollar versus core pce. i think she got the idea from deutsche bank. economists there say normally the dollar is inversely correlated, or negatively correlated with inflation. if you look at the chart going back to 1996, it looks like the trade-weighted dollar in white tends to be a leading indicator for inflation, so when it goes up, inflation comes up with it. when it goes down, inflation comes back down. the good news is, if you think inflation is a good thing -- the trade-weighted dollar has gained drinks recently. a little bit of a stumble in the last couple of weeks or week --

you can see it should lead inflation a little bit higher. i guess that is maybe a reason for optimism, scarlet. matt: -- scarlet: going back to the core pce, tina why the fed favors pce instead of cpi? it doesn't have to. in theory, they should move in the same direction. maybe it is just a matter of time. scarlet: they just want to see it confirmed. that does it for bloomberg markets. take a look at the major averages with less than four minutes to go before the close. green all around with the equities. the dow up 106 points. this is bloomberg. ♪

♪ >> we are moments away from the

closing bell. it is a sea of green. it this is bloomberg. ♪ >> i am scarlet fu. joe: i am joe weisenthal. "what'd you miss?" i am matt miller. stocks and bonds rally in unison. we break down the moves by asset class. at blackrock's leaders circle event. robot.ear the providing new opportunities for workers according to goldman sachs. we will speak to one of the co-authors. ♪ scarlet: