we're live at bloomberg world headquarters. covering stories out of san francisco, washington, ireland, and turkey. the post-fed rally losing momentum. stocks hold the advance as shares slumped on -- earlier and oil falls ahead of the meeting. turkey and the u.s. are nato allies but it's too late -- geopolitical positions are becoming more conflicted. will hear from president under the president. and this is not the first time the social media giant faced chatter. this time of i really is on the table. markets close in two hours. julie hyman joins us with the latest. julie: as you can see the stock

has taken a very sharp leg lower. down by 2.5% because research l releasingled gf data that iphone sales have and week. that is what traders are determining the drop to as we see it accelerate. the other thing waiting on stocks is crude oil after bloomberg news reported that a person familiar with a -- saudi arabia's plan, a delegate said saudi arabia is not willing to discuss any kind of output change or production change to stabilize the market at the opec meeting next week. you can see oil when those headlines came out it took a leg lower down by 4%. ig counthe weekly r numbers. the ripple effect this is having , the one-two punch of oil and

now apple. also we are seeing the other energy complex, other members down today. trading lower.s if you look back to stocks and ap, energyk at the im is the worst performing group. check is in the number two spot, down 1.1% dragon part by apple, by sales forces. that is one of the potential bidders. might be close to a sale. we are at the lows of the session following the drop in shares with apple. taking more than 1.5 points off that stuff alone. one stock we have not talked about, higher by 15%. international. the ceo was departing. paul kevin ollie will be --

campanelli is the replacement. underperformed under the prior ceo. this replacement is what is sending stock rack up. > we will have more of an update. manor: the father of the charged with setting off bombs said his personality -- his sons personality changed after a trip. rahami was shot and severely injured and has been unconscious since undergoing surgery. 30 minutes into the orlando the gunmenhooting, called 911 to claim responsibility. he pledged allegiance to islamic state according to transcripts released by the city of orlando.

at one point he told the police negotiator that the u.s. started -- needed to stop bombing syria. 49 people died in the attack and 53 were injured. heidi cruise is returning to goldman sachs in a newly created role in the houston office. husband tedhelp her cruz in his quest for the republican nomination. the will report to southwest region. the pentagon is considering a proposal to spend an additional -- set an additional 500 troops to iraq. the move would be to help forces mosul from islamic state in the coming weeks. than 2600 more journalists and analysts and more than 100 20 countries. this is bloomberg. twitter scherzer surging

as the company moves toward a sale. twitter is holding talks with several potential buyers and is working with goldman sachs according to people familiar with the situation. they say that salesforce is one of the parties interested. tell me why salesforce of all things. why they would want twitter. alex: i do not know. it is a bit of a stretch. cory might be the better one to ask. there is analytics within twitter that you can use. they must want linkedin. you can see more of an enterprise fit with linkedin than twitter. it would be -- twitter is

expensive and if you want to put a premium on top of where it is trading now you can see this thing being more than a $20 billion deal. that is a lot. a lot more for salesforce than for google. the said we're still in early phases here. this story i think because twitter is such a big deal my we will have so many different iterations of what we cover so what we know today is that there has been informal conversations, twitter has been working with goldman sachs were longtime on -- we do know that body language has changed. we can say that they have started these informal conversations with several different parties. you get the sense from everyone i have spoken to today that the trains are on the track. this may be early than what we

would typical -- when we would report a sale. we are in the resale profits. all the things lineup to that. going in that direction. david: in the absence of a clear business strategy the only thing that drives twitter is hopes the company might be acquired. time different, is it a sign that twitter has given up on the prospect for more growth or it is attractive? corey: they are talking to people, at least people familiar tell us. we -- we dodo it is not have to make sense of this. it may make more sense for salesforce. you look at salesforce stocks spelling off -- selling off. we look at the numbers for twitter.

the biggest number is not growing in terms of users. it does have over 300 million users. growth has slowed down quite a bit. but the pace of growth for users is anemic at best for this company. users in the last quarter were at 1%. is seeing it shrink to quarters before that. that is a week number. asnie: it is not as unuseful some of the other numbers. what can they find some way to monetize their user base? corey: they do. that is one of the bright signs. even if they are -- you grow the business two ways. you add more users and chad -- charge more for the ads. doing, whileem they are unable to add users which is a bad sign where the numbers are anemic you can see

the value of a twitter user improving. even ifect more revenue the user base is not going much. the pace of that has been getting worse where it is down 16%. the dollar figure of a dollar 92 is less than the fourth quarter. those numbers are not getting a lot better. you can see they were flat in the last two quarters. that is another thing. a sign of weakness in this business. salesforce may not be able to fix it. david: i have been looking at a long history of speculation. there has been an emphasis on liveness. that has mades this company more desirable? grexit think it is too late to say. since twitter has gone public i feel like this company has,

there is at seen in south park question. two is the has existed all along. one day this great sticky part that a bunch of people use and live on, this portal people are involved with will figure out the way this thing will make us money. stops. user growth maybe it is some sort of subscription or something else and twitter has not got their area. the next step is maybe if we sold it to someone they could figure it out. but i do not know exactly what that figure out is. it is one of the reasons we have not seen an activist investor in twitter. they also do not know who the buyers -- the buyer is. what will be most interesting, who does the end buyer end of being and how much do they pay if there is one?

corey: this is a company where some of the metrics are getting better. but itfast as they were is an expensive stock even before these prices were out there in the news. it is hard to imagine this deal happening at a much higher price. hash out who is taking the underpants. thank you both. littletune in for live coverage of the most influential markets. we're talking some of the biggest names in including the ceo of credit suisse and the ceo of heiress management. this is rumored. ♪

bonnie: you're watching bloomberg markets. two big issues, the u.s. is backing kurdish fighters it considers terrorists and turkey's government accuses the pennsylvania resident as being behind the july coup attempt. x -- extradition. breaks testimonies have been given. staff has said that pennsylvania is behind this. and [indiscernible] to the chief of staff. all of this is in the records. so what are we going to prove? we sent all this to american

authorities. we are sending it. we have such a history. america said to us you catch these terrorists and give them over. them and after catching them we delivered them to america. so now the same thing. we want to head of this and we aren strategic partners. them, give them to us and let us try him. they said the court is going to decide. we can't wait for decisions. this was not committed in the u.s., it was committed in turkey so let us make a decision. >> another area that you are working as an ally in syria.

you have put turkish troops into the country, you are constructing a buffer zone. to protect refugees. -russian peaceican plan which are supported. over the past week that seems to be coming apart with each side accusing the other. you would seem to be an honest broker who could say who is to blame for this plan coming apart , is it america's fault or tosia's fault? >> we have determine the truth. neither america nor russia is as close to syria as we are. we have a 911: the border with syria. border we have citizens living in and around

the border cities where family ties are in syria. we are that close together. syria iste all this mixed up. it is not just syria. iraq is also like that. said, bring down terrorist organization in syria. what are we going to bring it down with? ypg, bring iting down with them. how many countries are in syria is to their 65 countries. we say, look. tour -- also a terrorist organization.

one organization gets taken up by another organization, it is being done wrong. >> you have the u.s. defense secretary talking about continuing to support the white pg -- ypg. is this a source of concern? >> it is a source of concern. three days ago america landed two planes full of weapons. are committing a great run before the eyes of the world. musra is also-- al fighting against daesh. pyd,ey are not terrorist, two childrene the

of the pkk terrorist organizations in my country. they are the same. since there are 65 countries and the coalition let's get together. let's bring down daesh. have no doubt, together we will do it. if you get up and distinguish among terrorists, you are harming turkey. we are disturbed by this terrorist group that you are defending. they constitute a threat to our country. by giving them weapons you are strengthening the state to her future. subject of russia and america i asked you who was to blame for what had happened in the past week more. that thef the belief

one who bombed the u.n. convoy was the regime. the regime founded itself. that is what i think. that we right after bye this aid being delivered our red crescent. our people could not go in and they had to postpone. that is the situation. presidente turkish speaking with bloomberg. david: moore next. this is bloomberg. ♪

david: welcome back to bloomberg markets. now to an investigation by bloomberg businessweek discovering a tragic and not discussed consequence of the recent u.s. budget standoff. militaries helicopters are

killing their own troops. >> the two aircraft, the sea dragon, what is it? >> it is a navy helicopter, the largest, most are full helicopter in the fleet. it drags minesweeping equipment and it has been in use since the 1980's. it is a cold war era aircraft that has an a lot of duty and is old and in some cases fable. >> there is the other one, the super stallion. >> that is the variant of the marine corps used to transport marines and heavy equipment. it can through an external lift ise armored vehicles that 26,000 pounds. it is a hugely strong aircraft. >> before we get started we were ofking, my understanding helicopters are the little ones that hold a handful of people. this is a different scale.

>> these helicopters are 100 feet long, 30 feet high, and -- >> could hold how many people? >> a super stallion can hold 55 marines. >> huge. >> yeah. >> what you detailed are a number of incidents. what had he seen? >> there have been a dismaying and worrying number of fatal crashes that have occurred. a number of them because the aircraft are just very old at this point. things are happening such as wires are rubbing up against fuel lines and causing the escape of fuel and leading to internal fires that lead to a crash. in january of this year, two of the marine super stallions ran milesach other a couple off the coast of hawaii and went down and killed 12 marines in one incident. is still being investigated.

we do not know what went wrong. three days before that accident the commanding officer of the squadron to which those aircraft belong was basically let go because the squadron was not prepared enough for its general missions. >> the criminal is old. >> why hasn't the government replaced it? >> different reasons and different instances. the navy sea dragon has this particular mission of dragging minesweeping equipment. the navy has not come up with a better technology to do that. smaller helicopters are not strong enough to drag this equipment. robotic devices that have been designed to operate off of new warships have not been proven effective. helicopter stays in use but with they call the community, the it, that community has not been adequately invested

meet the navy admitted to during my reporting. they admit that has been what they call degradation of the community. the storyend read online and on newsstands. bonnie: still ahead. debbie ti crude plunging after saudi arabia dismissed argument to stabilize the market. this is bloomberg. ♪

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bonnie: the federal reserve announced it is opposing tighter regulation on commodity holdings. it would boost capital. under the changes from say goldman and morgan stanley could see their lucrative romances with coal, middle, and oil become a more expensive. why is the federal reserve doing this? >> it has been a long concern that a bank could have a catastrophe dealing with the powerplant or some other thatcal commodity holding blows a massive hole in the balance sheet. the fed is concerned about safety and soundness of banks. they have been more concerned after the financial crisis. the main reason they are doing this. there is a concern that it is not appropriate for banks to be owning big chunks of physical commodities while also having huge trading debts that are -- desks that are buying and selling derivatives. it is an unfair trading

advantage. you have a window into the market and saying flows of physical commodities that competitors do not get to see. david: help us understand the distinction between this rule and the one we saw to expect back. how are they different? >> this is well within the fed's authority to make rules for what kind of capital banks have to set aside for their commodities. what the fed was doing was a recommendation to lawmakers in washington about how to make banks safer, how to make them stick to their basic traditional lending money and charging an interest rate to consumers or to people the land money out to. not have the ability to ban merchant banking out right so they want congress to do that. this is all about making banks more the function of lending broker-dealeras a and not making speculative bets on the market. havee: other banks already

to get out of that commodities business for the most part. why goldman and morgan stanley and what effect will this have on them? >> morgan stanley has gotten out of commodities already as have other banks like j.p. morgan. a lot of political scrutiny of those physical commodity businesses. goldman has dragged its feet. it has maintained a bigger presence in physical commodity be a factor.d he has said publicly that their customers like them being in this -- these businesses. it gives them advantages than help them serve customers. that isn't open question whether it is true, if it helps customers are goldman. goldman will have to follow its competitors and premature brca these markets. david: thank you. stand commodities, markets are closing in new york.

debbie ti crude plunging after saudi arabia was said to dismiss the respites for an output agreement to stabilize the market. ahead of talks scheduled to kick off in algiers next week. it has been on a roll courtesy of the federal reserve. central bankers opted to leave interest rates unchanged create our next guest says this is a preview of what is to come. let me pull up a chart here. what we see here is the commodity index on the bottom normalized. there is a huge percentage gain in gold. just talk about how the gold market, how it interrupted with the fed had to say on wednesday. >> looking at the performance of gold this year, gold has performed well. it is one of the top performing markets. we were up 24% less toilet. we

have seen a lot of inflow into the broader commodity space. we have not seen positive this should the broad commodity indices in the last three years. assuming the numbers hold as they are going into the end of the year, this would be the first time that has happened. the appetite for commodities is picking up a little bit and the fundamentals that underpin gold give buyers a reason to buy gold. bonnie: goaltends to trade tends toly -- gold trade differently. how will that play out for the rest of the year especially if are looking for december rate increase? >> this dynamic is why i am so bullish on gold. the psychology of the market begins where we start looking at here comes another fed rate hike. what is the market going to do when the fed moves forward?

the issue is what happens to other markets when the fed raises rates? the lack of volatility and the global equity markets will probably change. gold having that dual personality typically performs well during more volatile markets. if they do not raise rates the upside is obviously there. either way goal this position to perform well. david: let me ask you about oil. we have this meeting coming up in algiers. saudi arabia issued a statement expect tot accept -- play decisions coming out of that meeting. >> i do not think we will see much. i found it interesting this morning, i read a quote from an unnamed official speaking on the basis of anonymity. thatist of the quote was opec new to keep the rumor mill going.

they could control the upside and the downside of crude oil prices which is in their interest. anynot fully expecting agreement that will impact global supplies of crude oil moving forward. bonnie: what is the popular trade among your clients these days? >> there are some commodity markets that are performing very well. natural gas, the supply and demand fundamentals have improved. we backed up the past couple days but we are putting in new highs for the year. some of the agricultural markets are performing well based on some weather issues in brazil. we have seen the sugar and coffee market performing extremely well. you have to pick your spots but the commodity space offers decent opportunities. david: thanks for a much. bonnie: let's check the headlines. more from the newsroom. taylor: hillary clinton and

donald trump are off the campaign trail preparing for their debate. a tech to testing rattle trap. previousreviewing tapes. force -- fory special coverage of the debate. we will be on the ground with special coverage before and after the event and we're teaming up with twitter is the exclusive streaming partner for the debates. sticking with politics, americans are more likely to trust hillary clinton then donald trump to handle a variety of issues facing the country according to a new poll. american voters trust her to handle health care by 42-29%. on race relations 48 to 20 and on russia 4233%. trump earns more trust on one major issue and that is job creation.

authorities in several eastern iowa cities and counties are mobilizing resources to handle flooding from the rain and flooding. it has forced evacuations in several trinity's in northeastern iowa. the national weather service is that flash flooding threat remains high. lights begand as to flicker back on a cross puerto rico. they have struggled to emerge from an island wide blackout. of fire cause the aging utility grid to fail. electricity was restored by earlier today. the majority will likely have power by saturday. news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. bonnie: coming up in politics, it is all about the match between donald trump and hillary

clinton. we will tell you what both need to accomplish to be successful at the first presidential debate 2016. this is bloomberg. ♪

david: this is bloomberg markets. bonnie: it is time for some of the biggest news stories right now. total 30 hotel brands are under the marriott umbrella to create the largest hotel chain in the world. fromfended off a challenge a chinese insurance group which ignited a bidding war.

three of the highest-paid executives at my first century fox were members of the murdoch family. almostmurdoch was paid $35 million. the cochair received a why $4 million. rupert murdoch's actual salary was 7.1 million, the second highest in the s&p 500. that is your business flash update. david: both of the candidates are squarely focused on monday nights presidential debate. they have been preparing for the matchup. clinton has been studying policy memos and donald trump is throwing around ideas with his advisers. alex wayne joins us from washington. first, the degree to which campaign is communicating.

a story that donald trump is doing more preparation than people might have thought. he has constructed a computer model to ascertain helically -- hillary clinton sec logical profile in preparation for the debate. his team is trying to tell the world that he is doing more than ideas around. hillary clinton's people are trying to urge the media and the public not to set too low of a bar for donald trump. to merelythat enough not mess up. he has to show he can be a president. bonnie: they do not know which donald trump is going to turn up, the billy -- the bully who will malign hillary clinton or someone who will take this seriously and get some messages across. it does not matter. hillary needs to get her on message out.

>> the question is what donald trump shows up. practicedery able and baiter. 2008though barack obama in admitted that hillary clinton date him in most of their debates. her performance will be at least steady. we do not know what we will get from donald trump. i suspect he will try to be careful not to look like he is insulting or bullying hillary clinton. months back he was compelled to release a list of names of individuals you might afford -- a point to the supreme court. he has released more names. what prompted that? >> there was an interesting name on though less. senator mike lee of utah. senator leahy is not a term supporter but he is a close ally of ted cruz who has declined to endorse donald trump. there is speculation that trump added the name to his list to

lure an endorsement from ted cruz. a lot of republicans are supporting donald trump because they fear what will happen with the supreme court if hillary clinton is elected. bonnie: that leads us to the political story that cites multiple unidentified sources close to ted cruz that he will doll trump.d -- ted this?endorses will -- if he endorses trump you will make the point that the supreme court is what matters here. i think that could drive some republicans to the polls for trump. david: thank you. tune in monday for special coverage. we will be on the ground in new york with special coverage before and after that event.

we're teaming up with twitter as the exclusive streaming partner. bonnie: the echo has been a huge hit for amazon and apple is attempting to create a similar product. can consumers expect a next level siri? this is bloomberg. ♪

david: this is bloomberg markets. bonnie: no european country is as dependent as its neighbor island -- ireland. they have to deal with the possible brexit.

>> we think there are more negatives and positives. one type -- one point -- and then we have the competitions of northern ireland. we do not want the uk's only land order to be 40 miles north of dublin airport. there is more of a downside. we have a strong financial services sector in dublin. a lot of the big international names there and there are a lot of inquiries since the brexit vote. people who are assessing the position in london. iswill have until everyone -- >> article 50 has not been

triggered but i do not understand how negotiations will pan out. what could be the best possible outcome is to mark >> the best possible position for ireland which is the only thing i can talk about is that the position after the settlement will be close to what the position was before the settlement. haveuld like the u k to full access to the single market and that would be free movement of people. we have been a travel area for centuries with the u k and we would not like anything trips at that. that would be the irish position. there are other positions around europe. it would be a difficult negotiation. >> if you look at the red lines and you look at some of the -- what we have been hearing from politicians, this idea that we have similar agreements to what we have now and get brexit happened, it seems likely. >> europe is good at resolving

difficult problems. i have been there for six years as finance minister. will --d interactive intractable. there is good negotiators there but this is quite difficult. if you look at the campaign in the u k there was an issue first not wanting toin be involved in some kind of european superstructure. once it decided to leave that will not happen. they will not have membership in the european parliament. has gone the british way. single market, the europeans are we wouldt of course like the u k to have full access have the advantage -- can't have the advantages of the european union without carrying out the obligations. likebligations are things

paying their way into the european budgets but more importantly the freedoms, free movement of people from different parts of europe. these are the kind of crunch issues that will require skillful negotiation and comprises. bonnie: that was the irish minister -- finance michael noonan. david: apple is pressing ahead to develop a smart home device and more to amazon's echo. how is apple going to differentiate itself from the echo, what can you do differently here? system wherethis there is different smart home appliances like lights, curtains, ovens, stuff in the kitchen and apple content into that since they created the framework. and allow people to shout at

their echo competitor and say, siri, turn on the lights. there is a lot of stuff they can do in that regard. bonnie: it is surprising they have not done that already. when the echo came out it was almost jumping the gun on apple. apple was the first to get serious -- siri right. >> apple has been working on this initiative for two years which predates the announcement and shipping of the echo and alexis system. they were surprised when amazon beat them to the punch. they worked on speakers that are for home theaters and set up a testing lab on their campus for this. they also considered jamming microphones inside of the apple pd and they have been working on this initiative for a while. wasd: amazon's product

popular, so successful. what is about that that made it so successful? >> one of the key components of the echo is its voice technology vocalnversation interface. siri has stumbled along the way, takes a while to load. can comeds to get siri out with the hardware for it. funny: should apple abandoned the whole idea? -- if apple were to move onto something else maybe it could jump the goma -- gun on amazon instead. >> apple plans to bring some unique features to the table. one of the things we heard about -- is more advanced microphones and speakers. the speaker the -- that can fill up the room with audio. apple would be able to pull that

off, that would be a huge boon for the company. it makes sense in light of their recent acquisition. david: you can get more on this story and other top tech headlines on bloomberg west with emily chang. coming up in the next hour, marriott has become the biggest hotel operator. completion ofhe the starwood deal and his outlook from the fallout of the brexit vote. checking some indicators. we have been trading in a range for most of them. the dollar index unchanged but overall weaker following the fed decision. you can see the yen trading at 101.07. there was that drop post fed meeting. the japanese government can kneel -- 10 year yield is back

in its territory. this is bloomberg. ♪

david: welcome.

we are live from bloomberg headquarters. here is what we are watching. major averages hovering on the lows of the session. when apple is one standout leading and declines. the marriott completed its purchase of starwood today, -- ming my conversation with the ceo on those plans coming up. twitter shares are surging the most in more than two years. julie hyman is standing by with an update. >> declines have to do with apple at least in part.