we are live at bloomberg world headquarters over the next hour. covering stories out of san francisco, florida, washington, and portugal. treasuries are falling, posting their longest slide since april, while the dollar is up with a mixed picture for stocks. above the keyg $50 per barrel mark. --mbing inventories declining inventories are still fueling that rally. hurricane matthew is closing in on florida and has been upgraded to category four. impact ofscuss the what meteorologists are calling a potentially historic storm. markets are closing in two hours. julie joins us with the latest. julie: we have little changed

today ahead of tomorrow's jobs report, after today's better than estimated jobless claims report. a's not unusual for us to see little bit of a treading water ahead of a big jobs report, as investors are waiting to see if there will be more evidence that the fed does have room to raise rates this year, perhaps even as early as november. take a look at the breakdown of the groups in today's session. health care and industrials falling. health care is the big outlier. rising,s, energy are along with real estate, interestingly, even as we see those treasury yields on the rise. as you look at a couple of key movers today, you think twitter is that, falling -- is bad, falling by 20%, after recode reported we would not see a google bid for the company, perhaps apple and disney, not interested either. then there is alnylam after they

ended development of a late stage development of drug for a rare disease because of safety concerns. a huge tumble in this stock. as of last night, it was a $6 billion market cap company. mention what we are seeing with the u.s. dollar. we've seen treasury yields rising. the dollar has been rising as well. the bloomberg dollar index is at its highest since july 28. as we've seen the dollar climbed, we are seeing gold really take a hit. down 1.25 percent, below its 200-day moving average. are higher materials as a group, gold miners are not. they are all trading lower today. david: julie hyman with the market update. let's check on the bloomberg "first word" news. mark crumpton has more. mark c.: haitian officials have dramatically raised the known

death toll from hurricane matthew as they finally reached corners of the country that had been cut off by the rampaging storm. the interior minister says at least 108 have been killed. that raises the toll across the caribbean to 114. the storm is headed for the southeastern united states. almost 2 million people living along the coast have been urged to evacuate before matthew arrives. the category four hurricane is taking aim at a, florida, and the carolinas. georgia, florida, and the carolinas. the hurricane is expected to be near the florida coast tonight. hillary clinton and donald trump are in a statistical dead heat in new hampshire. libertarian gary johnson gets 5%. 1% support to green party jill -- green party's jill stein.

new jersey transit is implementing a new rule for trains pulling into hoboken. the conductor will join the engineer whenever the train arrives. it comes a week after a crash into the terminal left one person dead and 100 others injured. the engineer was alone when that train crashed. he's told federal investigators he has no memory of the incident. the united nations envoy for syria says the city of aleppo could be destroyed if militant fighters don't leave and syrian and russian governments don't stop the bombing campaign. he also warns that thousands could die by the end of the year. he drew parallels between aleppo and previous mass killings in bosnia and rwanda, saying the u.n. would continue to seek a resolution to the five-year conflict. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. vonnie: thank you. stocks off to a bit heavy rocky

start this fourth quarter. youseptember jobs report, tomorrow morning, is forecast to show a pickup in hiring, which could bolster the case for higher rates. investors are bracing for the start of earnings season, next week. joining us, brian nick. he oversees almost $900 billion in assets. we have seen a bit of a change in the last few days. treasuries higher, dollar higher, oil rallying. to what do you attribute this? brian: i think it's a combination of some better economic news we have seen. anybody concerned about the private sector in the u.s., the ism figures, has to be happy about how the numbers have come in this month, looking like the economy has picked up some steam. it will givehe --

the fed more faith that it can raise rates. it's running out of excuses that at thiscuses not to point. david: we were talking with mohamed el-erian earlier today. he talked about what the chief imf economist said this week. let's listen to what mohamed said. >> imagine that you are on a plane. people are telling you suddenly we are going to change the engines midflight. how would you feel about this? it's not clear you can change the engines while maintaining a smooth flight, and that's a concern. that's what you are seeing people start to worry. warning was quite striking. the imf is not a political institution, yet the imf said political risk is one of the major risks facing the global economy. david: i wouldn't want to be a passenger on that plane. brian: we have a long history in this country of peaceful transitions of power, even

believe -- between different, lyrical parties so i don't -- even between different political parties, so i don't think it should weigh on investors. i get asked the question, given the fact the election is so close, how should i invest. i think it should not be one of the top three or four factors influencing the market over the remainder of this year. if we see an unexpected tightening in the polls, you could see some volatility. you have to go back pretty far to see when a presidential in -- election in the u.s. had a dramatic influence. vonnie: we are getting another round of earnings next week. a lot of people said even though we've been in earnings, it's not going to get any better. is something we have to watch very carefully. we've been in a holding pattern with the s&p 500 for a couple months. the post-brexit rally we saw was impressive,, but we have not made gains, given that the market was waiting for sure this

earnings recession is indeed the product of energy recession and strengthened u.s. dollar. both factors should be fading as we head into the second half of this year, the last quarter of this year. it's not going to be a question of when earnings turn positive, but what's the trajectory of the growth once they turn positive. we are seeing evidence of wage inflation. that will eat into corporate profits. the economy is growing at 2%, 2. 5%. that's not going to translate into significant revenue growth. -- come frome wendy oil -- vonnie: i was in -- david i was in colombia last week. what's it going to take for those of the needs to do better? brian: brazil is up about 60%. it's not as attractive as it was before that. we prefer looking elsewhere within emerging markets.

india is one of the big calls from some of our portfolio managers. senseakes a lot of long-term. india is increasingly well-run. they've taken steps to making economic reforms. the currency is relatively weak. if you are a dollar investor, you can feel good about where you are getting in. the eurozone has upside. the banks get deep enough, then come back. it's not an investment without risk, but it seems like it's worth making right now, particularly as stocks have become more expensive in the u.s. vonnie: tia is investing in the stock of european banks? brian: we have to look at that sector. there's a lot of regulatory risk. if you are looking where in the world can i get that 10%, 15%, higher return that i'm not getting right now in the u.s., that's one area you have to look at. the ecb feels more comfortable tapering off asset purchases, maybe raising interest rates next year. vonnie: can we get more

specifics on which country cost banks -- which countries' banks? brian: there will be headlines around individual banks. owning too much of anyone is certainly not without its risk -- of anyy one is certainly not without its risk. diversification makes sense. some of the banks have the portfolios right now in india and other places in the world. it's not just about being in the eurozone. when ity one place comes to financials is a bit risky, even in the u.s. where we see financials doing better as rates go up. vonnie: brian nick, strategist at tiaa global assets management. breaking news on qualcomm. let's go to julie hyman at the markets desk. julie: qualcomm had been talked about as a suitor for nxp semiconductors. according to a bloomberg news

story by alex sherman and ian king, who covers the semiconductor industry, qualcomm is the only company in talks to acquire nxp and is making progress toward an agreement. they are only apparently 10% apart evaluation, where the two sides are valuing the company. 75% cash, 25% stock. this is according to people with knowledge of the matter. qualcomm apparently still considering its options and talks with nxp are in the early stages. nxp pushing for a price of $120. qualcomm pushing for a price closer to $110 per share. both parties are close to making a deal. the share is up -- scherzer up about 1%. -- the shares are up about 1%. ticker.i is the

the semiconductor industry has seen a lot of activity in terms of acquisitions, so this would be the latest in a string of them. this would be pretty sizable. the current valuation of nxpi, $36 billion is the current market cap of that company. david: we will be talking with cory johnson, who follows qualcomm very closely, later this hour. coming up, ricardo felix talks about the state of portugal's economy and why he is confident portugal can maintain its credit rating. this is bloomberg. ♪

vonnie: this is "bloomberg

markets." i'm vonnie quinn. david: walmart is butting heads with the u.s. over how to wrap up a long-running investigation. the retailer paid $600 million to resolve probes into whether he bribed officials in markets including -- whether it bribed officials in markets including mexico. the retailer maintains it is cooperating with the government. deutsche bank will eliminate 1000 jobs in germany. the move comes after the lender reach an agreement with the labor union. the cuts will be spread across human resources, asset management, and -- liquidating.is it managed about $500 million and is in the process of returning capital to investors. that's your "business flash

update." vonnie: now to portugal. yields on the 10 year bond are surging. we spoke with portugal's secretary of state for treasury ricardo felix. how concerned he is about losing portugal's investment grade status. ricardo: it is a very important rating agent. we have been in close contact. we are aware that we need to present a budget so that we -- and the budget is going to be presented on october 14, with all the ingredients necessary in order to grant the rating agencies confidence to the fact that we will fulfill the commitments. in particular, we are aiming at a deficit below 2.5% this year. the budget for the deficit next year is below 2% with the primary surplus increasing.

the trend is declining over the period. >> you are fairly confident that the outlook will also be maintained, just briefly yes or no? ricardo: yes, we are pretty confident about the information we disclosed from the conversations we had, that the rating would be maintained on the outlook will be maintained over the next assessment on the 21st of october. >> in the case then of portugal's bonds being the worst performers among developed markets, what can you do to change that. -- that? what are you going to do. i have a note -- to do? i have a note. you going, what are to do to attract investors back into portuguese debt? no reforms related with

social security have been rolled back. the reforms have been maintained. they will be maintained over the future. the reforms that are needed now and that we are taking these reforms forward are related with the evolution of the banking sector and dealing with nonperforming loans. in this respect, we are doing a great effort, preparing a plan related to that, such that after bank recapitalization and the bank capital levels improve after all this period of 2016 -- in the end of 2016, you have a situation that is much better than the one found in late-2015. then we can discuss this situation by recognizing first -- then considering the possibility of different measures to solve these npl's.

the discussion has been on the table. this needs to be something that has the ownership of the banking system and the banking system should be conscious that they need to leave this process of solving the issue of npl's on their balance sheets. we lack of coordination mechanism. help toto mitigate and solve this issue. vonnie: i want to show viewers a chart on the terminal which shows the spread of portugal bonds to german bonds, the 10 year. it's rising. obviously nowhere near the levels through the crisis. but there's a little bit of anxiety among investors. will debt to gdp ratio fall? will that be something that will convince investors that portugal is getting its act together? will it rise? ricardo: the next year, 2017, it

will fall. this year, we need to take into account that we need to have a nieslution of many -- mom from last year. this year, we have been accumulating cash to redeem that bond that matures in october. vonnie: that was ricardo felix, portugal's secretary of state for treasury. david: still ahead, the tech entrepreneur who pushed -- out of china. that's next. this is bloomberg. ♪

vonnie: this is "bloomberg markets." i'm vonnie quinn. david: i'm david gura. the chinese tech billionaire successfully one a -- won a turf or with uber -- turf war with

uber. brad stone joins us now from san francisco. his nickname is "the number s -- "the uber slayer." he is a young billionaire living in beijing. isd: out of nowhere, here he in the business vanguard, running the uber of china. uber in that blockbuster deal over the summer sold their chinese business to -- he seems mild-mannered. i think the secret to his successes the militaristic mentality, intensity, and ambition that travis kalanick showed at uber. he has raised a ton of money. he has that indigenous and manage -- indigenous advantage of being an internet company in china. they are now positioned as the leader of ridesharing and right

ridehailing in china. vonnie: how long do they get to hold on to that spot? how much money do they have to spend to do that? brad: less now than uber has left. left. that uber has the chinese government is still reviewing the deal over antitrust concerns. i was in beijing last week, taking rides on didi and uber pool, and with the help of my colleagues, talking to other rates and -- other riders and drivers. with didi, we might see an ipo attempt in the future. aboutwei talked to us investments in things like driverless cars and alternative forms of transportation, like commuter buses and bikes. he thinks he can have an impact

on the huge transportation problem in china. david: he owes a huge debt to this corporation. brad: part of the fun of the story was telling this incredible story of these last four years in china, where all of these uber clones started competing at the same time starting in 2012. didi's big;s -- competitors got the investment from alibaba. didi turned to the alibaba archrival, tencent. chat wasial network booming at the same time. didint funneled money into the same time alibaba was funding money into their rival. they did a deal together as uber was making a big bet on china. the's a lesson about

relationship of the big three, alibaba, baidu, or tencent. vonnie: -- david: the piece includes an amazing, must read anecdote. vonnie: still ahead, the be crossing auld big psychological threshold as it moves past $50 per barrel. we discuss is the next big barrier will be $60, or could wti track lower? right now trading at $50.41 per barrel. this is bloomberg. ♪

from bloomberg world headquarters in new york, this is "bloomberg markets." i'm vonnie quinn. let's take a look at some of the bigger movers. metals continue to pull back.

copper fell for a fourth day, its longest losing streak since august. now, at the close of the down almost 1%. sugar is coming back from its highest level in four years, down almost 3%. hedge funds have made the biggest ever bullish positions in sugar, sending prices up to 2% this year. now traders are wondering. when speculators will sell and how quickly prices could fall. sugar is one to watch. live hogs falling to seven-year lows on a bearish government report, back up by about 4%. the big story in commodities today is oil. you can see it in the bloomberg chart library. oil -- it's actually

breaking $50. open interest is surging, which is a bit of an anomaly. question,as an open because a lot of traders are betting on the fact that it may go lower. we shall see. david? david: we will get back to oil in just a second. breaking news, "the wall street journal" says the snapchat is eyeing an ipo. billion. we will continue to follow that story this afternoon. now more insight on oil's search surge and whether the prices will continue to rise, andrew cosgrove. how much room is there to run? andrew: it's certainly possible to get to a whole number such as $55, now that we've broken $50.

in june, the highs were about $51.50. that will probably be the next technical level that people are watching at the moment. i think earnings season is going to be telling about expectations on how quickly u.s. oil production can rebound. perhaps as they start to get more excited, more bullish on bringing on their backlog of completed wells and adding new rigs, maybe that tempers the market enthusiasm a little bit. week, we had this short positions that were three times as high as they were back in june when the price peaked, so there probably is a little bit of unwinding or short covering, i guess you want to call it, driving us fire right now. vonnie: what are the other catalogs we should be watching for before november's opec meeting and the federal reserve meeting as well? andrew: sure. the market was also secondarily supported this week on the

relatively -- pretty big u.s. oil inventory drop. this was the furthest we've come over the past five years with current inventories not bottoming. potentially, as the next couple weeks filtered through, that may turn from somewhat of a bullish catalyst to a bearish catalyst. people will be watching earnings season for what bmps are starting to say about their production plans for next year. they will probably err to being side, sore positive that may temper enthusiasm as well. david: we've seen oil prices rise 10%, 11% since the opec agreement was announced last week. what kind of difference do you side, so that may temper enthusiasm as well. david:expect this to make, thisn production? supply andfar as demand models go, if they are able to limit production within the 32 15 million to 33 million barrel range -- 32.5 million to

-- illion barrel range that is not included barrels that come back from libya or nigeria. i ran is exempt. -- iran is exempt. iraq may not be willing to cut as much as some of the original notes from the algiers meeting had anticipated. there are a lot of questions. we may get some range bound market over the next couple weeks because people are afraid to take a position or have too much conviction. david: that's andrew cosgrove joining us from new jersey. vonnie: let's check out the headlines on the bloomberg's "first word" news. president obama has declared a state of emergency in florida, whose coastlines are under the cross hairs of hurricane matthew. the white house says the order authorizes the department of homeland security and fema to

coordinate disaster relief efforts. the storm has strengthened to a category four with maximum miles perwinds at 140 hour. matthew is expected to make landfall in florida, then turn north and pass just off the south carolina coast late tomorrow or early saturday. the storm is being blamed for more than 100 deaths in the caribbean. hillary clinton holds a slim lead over donald trump in florida. 41% to 38% inrump the survey. libertarian gary johnson has 6%. green party's jill stein has 3%. belgian prosecutors say a suspect has been charged with attempted murder in what they call a terrorist context in connection with the stabbing attack that injured two brussels police officers on wednesday. the suspects brother has also been detained. judgeestigating specializing in terrorism cases will decide whether he should be

kept in custody by tomorrow. 75 years after his death during the attack on pearl harbor, a navy seaman is making the journey home. 20 years old at the time of his death, he was buried as an unknown in a hawaiian cemetery. he was finally identified last year from dna testing and dental records. on friday, wagoner's remains are being flown to wichita, kansas. the memorial service is planned for saturday. global news, 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: let's get more on hurricane matthew mv finance impact it could have -- and the financial impact it could have. joining us is brian sullivan. a number of theme parks are closing down as the storm approaches. what are we anticipating in terms of the effects this storm could have? from s.: estimates range

$25 million to $35 billion of damage. depending on how the storm tracks. the question is whether it stays offshore or comes onshore. that will mean billions of dollars of worth of damage either way. vonnie: damage to structures and so forth. but what other kinds of fallout in terms of damage? airlines have to cancel flights. people are evacuating. brian s.: the evacuation order 2 millionabout people. airlines have canceled thousands of flights. most of those are out of the florida airports, but a lot of flights around the country get tied up with the equipment. the themetioned, parks have all closed. cruise lines have diverted about 19 ships.

this is an impact on the way across the world. david: we will get the next advisory at 5:00. words,e not mincing calling this storm extremely dangerous. what do they expect in terms of or casting, where it might go, how it is approaching florida -- of forecasting, where it might go, how it is approaching florida? brian s.: the question is does it actually touch the coast or not? does -- this is the $64 billion question. the area with hurricane force wind is a little bit offshore. if it is closer to shore, numbers will go up astronomically. once we get past 24 billion dollars, we have cracked the top 10 of most expensive storms on record in the united states. vonnie: investors -- insurers

are down today as a result. bring us back to the last major storm that hit florida and what it cost the state. brian s.: the last major storm was wilma 10 years ago -- 11 years ago, excuse me. 2005.r, that was the year where there were a record 28 storms in the atlantic ocean. what everybody remembers most is katrina, which was in the hundreds of billions of dollars. matthew is not going to get to that level. it is not the same kind of storm. it's not coming in at the same angle some of these other past storms did. this is more of a glancing blow as opposed to a stab to the heart. david: what kind of role could display? could these systems interact? s.: not really.

no was upgraded to a hurricane just a few minutes before i came on the air. usually the larger storm will eat the smaller storm. they are far enough apart right now that nothing is going to happen. nicole is going to spin around in circles and won't be a threat to anyone. david: meteorological cannibalism. vonnie: coming up, will president obama's climbing approval rating factor in for hillary clinton? this is bloomberg. ♪

vonnie: this is "bloomberg markets." i am vonnie quinn. david: i am david gura.

president obama's approval rating now stands at 55%. that's the highest it's been at any time since his first year in office. willie translate into gains for hillary clinton and other translate-- will it into gains for hillary clinton and other democrats? what does it mean for him as a campaigner for her over these next few weeks? >> it's a good thing for her that she has president obama to campaign for her. his approval ratings keep going up. they are well north of 50%, which is a good sign for his party. her approval ratings are much lower, as our donald trump's. to beesident is proving an important asset to her in the final weeks of this election. two of the single business -- biggest indications of how an election is going to go is the incredible -- approval rating and how the economy is doing. people are awesome mystic --

people are optimistic that things are going well. that bodes well for the party in power. this is good news for her. vonnie: at this point, do you not have to worry about disapproval ratings? the other end of the spectrum? sahil: they are all part of the same picture. her disapproval ratings are high. donald trump's disapproval ratings are high. president obama's disapproval rates have been falling. the president is in positive territory. are in clinton and trump negative territory in terms of public perception. david: i want to talk about state-level polling. use that as a way to talk about the way the campaigns are preparing. real clear politics -- the latest numbers. what do we know about how hillary clinton's campaign and donald trump's campaign are positioned going into these final weeks? the latestsahil: donald trump ig

good in ohio. it's a few percentage points more republican demographically than the country as a whole. disproportionately higher -- folder and this -- disproportionately older and more white. he is doing well in iowa, high percentage of voters without college degrees. that's why he's putting in play states like nevada and florida as well. overall, hillary clinton remains in the driver seat, doing well in states like colorado and pennsylvania. keep a close eye on those states. as long as she keeps that firewall -- and it is her firewall, donald trump needs to run the table in the other swing states and win a state like wisconsin or new hampshire that hasn't gone republican in a very long time. vonnie: let's look ahead to the next debate. what will the concentration beyond for both of them? sahil: it will be a town hall format.

the big question is whether donald trump can improve on his stumbles of the last debate. canmost important one being he avoid taking the debate -- taking the bait. can he avoid getting into these petty battles that get to the question of his thin skin? hillary clinton went in with a strategy of trying to get under his skin. it worked and it led to a very bad stretch for him. the secondat in debate would be my answer. david: there is a debate special ahead of that town hall presidential debate on sunday, hosted by mark halperin and john heilemann, starting at equal and 30 p.m. in new york -- starting at 8:30 p.m. in new york. vonnie: time for our bloomberg business flash. qualcomm is in talks to acquire nxp semiconductors.

this is according to people with knowledge of the matter. a valuation gap of less than 10% between qualcomm and nxp. qualcomm is considering a deal structure of 75% cash, 25% stock. nxp would prefer all-cash. norway says it plans to spend $28 billion of its oil fund to boost its economic recovery. the finance ministry says that the record amount of -- is equivalence to -- is equivalent the/10 of 1% of country's value. for now, sumner redstone won't face a deposition. a delaware judge delayed proceedings until he rules on a defense motion to dismiss. that ruling won't come until next year. redstone's lawyers say subjecting the 93-year-old to a

deposition would pose health risks. let's head to julie hyman now for today's "sector spyder report." thee: i'm taking a look at biotech. it is down 3%. sector spdr'sr that we track, this is the worst performer. alnylam sector pharmaceuticals . we are showing the to-date -- two-day chart. today alone and has been down as ith as 48% -- today alone has been down as much as 48%. there were safety concerns about a drug to treat a rare disease. more patients taking the disease -- the drug were dying than those taking the placebo.

it was being tested for a condition called hereditary httr annelid oasis -- amyloidosis. --s can be a potentially this could be a potentially promising drug for the company, now no longer. we are watching biotech companies making associated drugs that were similar. they are falling now, in simply -- sympathy with alnylam. all of that putting pressure on the biotech sector. there's also the idea that we are seeing biotechs recently under some pressure. mylan is under fire from congress for allegedly overcharging for its added 10 -- its epi-pen. there has been chatter about more scrutiny on drugmakers, biotech companies included, and their pricing of drugs. etf hasns the biotech

fallen this year, down by nearly 8%. you guys were talking about the election. biotech's and drugmakers will be an important group to watch as we get closer to and then beyond the presidential election. vonnie: thank you very much. david: coming up, we will talk about shares of twitter experience in whiplash. details of possible buying trickle out of silicon valley. this is bloomberg. ♪

david: this is "bloomberg markets." i am david gura. vonnie: i am vonnie quinn. qualcomm is said to be moving closer to a deal to purchase dutch chipmaker nxp. bloomberg editor at large cory johnson joins us from san francisco with more. why is this of interest to

qualcomm? cory: there is a lot of consolidation happening across all segments of the semiconductor business. there aren't a lot of deals that are left to be done out there. consolidation is the order of the day. operatingunity for margin reduction is available. the like-minded companies are .ooking at this qualcomm, while very different than nxp, is not completely dissimilar in the way some of the other companies are. obviously needll in the middle at some point, but will it be on terms or valuation? cory they will: meet in the middle or not. they haven't been able to do that thus far. what we understand from alex sherman and ian king of bloomberg news is a difference of 10%. the structure of the deal is quite different. an xp, of course, would like all cash -- nxp, of course, would

like all cash. qualcomm would like to use some stock as well. qualcomm has loads of cash. they could use that to acquire nxp, which is based in the netherlands. there is some advantage to that. nxp once more cash. qualcomm wants to use some stock. it's more important for the markets how these different segments represent the way technology is coming together. david: you mentioned the consolidation in this space. we've seen record deals in this space already recently. cory: we've certainly seen some giant ones. i think what's curious about this one in particular is it really talks about market and it talks about this convergence between mobile phones and automotive. mobile phones and automotive have been a focus for nxp, which brought us the chip that gives us a google wallet or a samsung wallet or apple pay.

in every smart phone that has these, every terminal that has the readers that can read these kind of mobile payments, or every gas pump -- those are most likely chips from nxp. they dominate in that sector. with nxp's acquisition of free got a lot more exposure to automobiles, where the chips are increasingly smart, from analog chips to increasingly high-performance chips. you have the phones connection, qualcomm's historic, strong base, the mobile phone connection to those cars. frees why you see nxp with scale coming closer and closer to qualcomm. you can imagine a future where you have the phone and the car coming together. intel and texas instruments looked at nxp. they said no. this is nxp's only chance at a

deal. how come they haven't reached a deal yet? intel and texas cory: qualcomm has a stronger leveraging position. there is no one out there who wants to buy this company. it has worse margins than qualcomm's, decidedly so. it's a lot more volatile, because the shipments from automakers are even more volatile from phone makers, so to speak. it will be interesting to see if this comes together. vonnie: later today, bloomberg technology and emily chang will have more on that story. she will be speaking with xiaomi's president of operations plus sling's ceo. david: there's not much movement ahead of the labor report coming out tomorrow. ♪

vonnie: it's 3:00 p.m. in new london, thism. in

is bloomberg markets. david: we are live from bloomberg's world headquarters in new york covering stories in washington, florida, the u.k., and frankfurt. world leaders are gathered for the annual imf world bank and. christine lagarde told as a settlement for deutsche bank had better happen sooner than later. goldman sachs is pulling more money from the famous alum. shadowshadow -- and the of a hard brexit is spreading across britain's financial markets with the pound fall into a 30-year low. the u.k. chancellor maintains the country is still open for business. let's check the markets about one hour away from the close of trading. julie hyman. julie: we have a drift in the u.s. markets. had ofttle change i

tomorrow's jobs report, even though their sons -- seems to be some optimism. the read right now at 142,000. that'll be the number to watch. among others, in the morning. there is action occurring elsewhere -- in the bond market. jobless claims came in better the next day -- estimated, and a lot of the economic data has been better than estimates as of late. you see the 10-year yield, it has been on a five-year losing streak in price, rising trend in yield. that is the longest streak we have seen going back to april. we see a bump of 18 basis points. the yield jumps to the highest it's been since before the u.k. vote to exit the eu. we are watching the dollar on the rise. it has been having a bit of a winning streak. what is interesting as crude oil is going up at the same time. the classic inverse relationship

not in effect today. crude oil rising above $50 a barrel, helped in part by the recent talk about opec's production cut, plant production cut, and the supply data out yesterday. gold is falling, contrary to the u.s. dollar and the u.s. yield. gold prices going below the 200-day moving action. there is individual stock action. over those rising on the speculation it might get a bid from the like of dislikes of kroger. -- isr company is the is commenting on speculation. both stocks are on the rise. quick check on qualcomm and nxp after bloomberg reported qualcomm and nxp semiconductors were making progress. they were about 10% apart in terms of negotiation on valuation. qualcomm, one of the biggest

chipmakers. and it speak, not so small itself -- annex peak, not so small itself. this could be another big semi conductor deal. vonnie: let's check in on the headlines with the first word news desk. mark crumpton. mark: haitian officials are dramatically raising the known death toll from hurricane matthew as they finally begin to reach corners of the country cut off by the rampaging storm. the interior ministry says at least 108 people were killed. that is up from a previous count of 23. that raises the hurricane's overall toll across the 114.bean to forecasters at the national hurricane center are warning that large waves pushed by the storm could threaten lives and property in florida hours before the category four hurricane's e ye hits the shore. it has maxim sustained wind of 140 miles per hour. hundreds of thousands of people

across the southeastern united states have boarded-up homes and businesses and fled inland. tosia has issued a warning the states against attacking forces are with the syrian government. it is the latest sign of escalating tensions between moscow and russia -- moscow and washington. the kremlin says it is a direct threat against russians the put in the area. some praise today for hillary clinton from an unlikely source -- mike pence. the republican nominee for secretary clinton and donald trump have many admirable qualities for young people to look up to. show in on nbc's today responding to the question is donald trump a role model for children. the same question tripped up kelly i ought earlier this week. she initially said yes, then backtracked. clinton and trump are in a statistical dead heat in new

hampshire. clinton tops a boston globe survey. gary johnson gets 5%, with 1% for joe's time. 7% of likely voters say they are undecided. global news 24 hours a day, powered by 2600 journalists and analysts in over 120 countries. i am mark clinton. this is bloomberg. david: international monetary fund is holding annual meetings in washington and besides the global economy, banks are in focus, particularly deutsche bank as it deals with a fine from the u.s. justice department. earlier, tom keene and francine lacqua spoke to christine lagarde about deutsche bank. ms. lagarde: deutsche bank is a systemic institution and is strongly interrelated with many other banking institutions around the world. we believe that deutsche bank, like many other banks, has to

look at this business model, which i am sure it does, because it is in the process of selling assets here and there -- it has to look at its long-term profitability, given, you know, the lower bound interest rates we have around the world, and for probably longer than many what size itecide wants to have, and how it wants to strengthen its whole balance sheet, but it is not the only one in the banking landscape to have to do that job. we believe that many banks have to look to do a bit of introspection into how they want to be. i would mention something else by which has been made quite obvious this week. digital banking is really hitting the radar screen in a big way. if you look at what ing announced a few days ago, this will happen too many banks, which will probably move more in the direction of using digital tools, leveraging their

technology platforms, and probably, as a result, cutting costs. are talkingd you about the business models we often talk about for european banks, but do you think his incisions have to rush to find a settlement on deutsche bank in specific, and what happens if they don't? ms. lagarde: i am a lawyer, and i think a bad settlement is always better than a good trial. we are not in a trial mode, clearly in the case of deutsche bank. a settlement would certainly be welcome because it would deliver what weightty as to to bank would have to carry, and whether it matches its provision or not. so, the sooner or better. tom: early in our collective financial crisis used it up at the council of foreign relations in washington, in search of adults in the room. for european banks in general, what this is about is the

courage and the will to clear bad loans -- underperforming loans. how can the imf assist italian banks, german banks -- banks in general -- to find the courage to finally write down the balance sheet? well, you know, tom, that we have advocated for a long time that there be real banking union within the euro area. there is a degree of banking union. efforts have been made. it is not completed. there is not a fiscal backstop that could support a can -- significant effort in reforming, and probably right-sizing the system, as they are probably planning to do. so, that is step number one. step number two, we have to say things as we see them. sometimes it is not welcome. if we see significant amount of in balance of npl's sheet, we have to say so.

we do that privately in bilateral discussions, and numbers, aggregating because we never want to single out one institution versus the other. you will have noticed in our mobile financial stability report, we hardly mention any names, but we talk in general. tom: do you see how they do that -- francine: it is very diplomatic. tom: it is almost like "bloomberg surveillance" -- what we have every day. francine: i think metta mudguard is more diplomatic than we are. if you're a u.s. bank, -- madam lagarde is more diplomatic than we are. ms. lagarde: even if the economic situation improves, which we hope it will, if policymakers make the right decision and move into action mode, there is still about 25% of the banking system that is not going to be prosperous. that calls for re-examination --

the work any business leader has to do looking at his business. tom: this report from the financial stability report, the green report, and this speaks to steve major at hsbc looking for low rates and low rates out until 2021 -- this quote "the solvency of many life insurance companies and pension funds is threatened by a prolonged period rates."nterest you provided leadership on this, saying it is about duration, the chronic nature of low rates. how do negative rates fold into this chronic sense of lack of return? ms. lagarde: it calls for re-examination of those two sectors as well -- the insurance sector, and the pension fund sector. this is particularly true for the life insurance sector. this is but true for countries with a level of return is prescribed by law -- this is particularly true for countries where a level of return is

prescribed by law. david: that was christine lagarde speaking to tom keene and francine lacqua. catch "bloomberg surveillance" tomorrow -- they will be live right here on bloom in television and brick radio. areie: coming up, ties fraying between goldman sachs and leon cooperman after he was hit with insider trading charges. ♪

this is bloomberg markets. david: i am vonnie quinn. david:i am david gura -- i am

vonnie quinn. david: i am david gura. time for a look at the bloomberg business flash. it remains on cap to be the vc.gest year for the sea -- some firms have decided to raise money earlier in case economic conditions were too long. new york city's comptroller wants facebook, goldman sachs, dow chemical, and 13 other companies to disclose data on the diversity of suppliers, looking for information on firms owned by minorities and women. a letter cap and extends a 2014 initiative that asks for some of details from the largest investments. and that is your business flash update. omega: leon cooperman's advisors is hit with a major plan to withdraw.

he is accused of insider trading, a charge he denies. joining us now is bloomberg news reporter dakin campbell. is it difficult for a retirement fund to pull money for anything is proven or tried in any way? it is a good question. it looks a little early for goldman to be making this decision, but from the folks i spoke to, they act as a fiduciary for the participants. you know, they thought their duty as fiduciaries was to move ahead of this. i do not think they're trying to say anything about their view about whether cooperman is guilty or not. it is just, he is, in the regulatory crosshairs right now, so they want to move and several the tie. david: it makes me wonder how risky the headline risk is right now. bloomberg news spoke with leon cooperman. aboutid he have to say

the charges leveled against him and his move from goldman sachs? dakin: he is adamant that he is innocent and he said that to us yesterday. he also said that earlier when the sec charges came out, and when he had an opportunity to settle, and decided against it. he will fight the sec until the very end. the point he made about the goldman sachs money specifically was those returns had beaten all major stock market indexes since he got the mandate, which was may, 1993. so, over 20 years ago. so, the point he wanted to make was this is not a return thing. this is, you know, related to hank, -- overover hank -- vonnie: and he is -- david: and he is an alum. it has to smart. dakin: i think it does. vonnie: christina lagarde just

said and bad settlement is better than a good trial. he is not taking the advice. tell us about the fun they don't. in august, they said they were pulling $350 million out of -- and that was for a similar reason. at the time, the department of justice was investigating over bribes allegedly paid to win business in africa. since goldman pulled their -ziff settled with the .oj you can see the parallels. we do not expect cooperman to settle, and we do not really know if he is innocent or guilty here, but, yeah, two big, prominent, hedge fund managers, goldman alumni, and goldman taking an interesting step. just for context -- it

is $300 million, but what is in the goldman retirement fund question mark dakin: -- fund? dakin: good question. it is $6.6 billion, submitted million dollars is not a huge amount of the overall fund. vonnie: not nothing either. dakin campbell, thank you. looking at gold, gold has been taken a beating in the past week as speculation grows of a rate hike from the fed in december. asia, the daybreak evolution mining chairman was asked what he sees gold prices heading. >> in context, conditions are favorable for gold, but as a gold mining company, the only thing we can do is ensure we get costs down, generate cash flow, and you see that consistently. >> how about in the longer term

-- other factors that give you confidence prices will go higher? klie i am optimistic. n: we are in an environment with unprecedented interest rate. it is difficult to see rates rising a lot -- maybe 1% over the next one to two years, but is that a lot in terms of how far they have come down? in that environment gold is going to be attractive to investors. now, jake, gold futures are down in the past four days, and evolution mining shares are down 9.7% in the same timeframe. if this continues -- if gold continues to fall, what is your strategy? is klien: so, our strategy very much the same as we have been talking about since we really form the company almost five years ago.

the holy grail in the gold industry is getting costs down. we are doing that by improving the quality of our portfolio. encinas do five transactions, which have now made us -- you have seen us do five transactions. we are producing gold at between 800 and 860 australian dollars all in sustaining costs. we are making a margin of about 47%. asare running the business if the gold price is 1500 australian dollars an ounce. vonnie: that was jake klein speaking on "daybreak asia." david: we are looking at the best buys in the biotech sector. ♪

-- ie: david: this is bloomberg markets

pad i am david gura. vonnie: i am vonnie quinn. time for options in said. julie hyman. julie: scott bauer joins me from the co we in -- cme in chicago. options todayat ahead of tomorrow's jobs report -- or lack of action, what stands out to you in the market? our people setting up? mr. bauer: it seemed like people were trying to buy detection early on. that waned throughout the day. like you said, there is almost this lack of action now going into tomorrow, and i, kind of get the feeling, julie, that the marketplace in general's expecting a strong number tomorrow, and that the potential rate hike in december is starting to get priced in. as it gets pricey -- we

had been on the track that good news was used as bad news. when a rate hike was priced in, that could affect equities. is that the mindset you are saying? mr. bauer: i would say that was the case up until a few weeks ago, and now i feel people are expecting the good number tomorrow -- the impetus behind the fed really having good rationale to raise rates. i do not think if we get a real strong number tomorrow, i do not think we are going to selloff. i think that is going to be almost a relief -- finally the fed can really, you know, make their decision. we can get the rate hike out of the way and move on. that is why i am seeing it right now. julie: in your trade today, you which weng at thexpi, talked about the last hour. it is falling because of individual components, but there are political risks associated with this.

talk to me about what you are looking at here. mr. bauer: absolutely. like you said about the political risk, with the debates next week, there is definitely some nervousness -- let's call it -- in this biotech space, but it is a great etf. it is the spider etf. what i really like is implied code-4 the option is really increase, i had of the debate coming up next week. what i want to do is take advantage of that. -- 66.5%5 area is some area is major support. 64/63 putsell the spreads next week. i am selling the 64 put, by the 63 put, do that for about $.35, maybe a little better. what i don't mind is if the xpi continues to go down, 63.5 is an area where i would want to get

long. this heightened volatility is allowing me to sell the put spread, and if it bounces off of their or never reads there, great, by the end of next week, i can make this $.35. if i let it go, the most i can lose is $.65 because it can only expand to a dollar. if it drops down to 63.5 or lower, i am ok with that because that is a place i want to get long. julie: we will be watching it -- add it to the list with a mexican peso of things to watch. david: u.k. chancellor of hammond is on a mission to reassure. highlights of his interview coming up. ♪

from bloomberg world headquarters in midtown manhattan, i am scarlet fu. dakin: i am joe weisenthal --

joe matt: it's just the headlines. mark crumpton. mark: president obama has declared a state of emergency in florida, whose coastline is in the crosshairs of hurricane matthew. the news comes after the president received a hurricane briefing. the white house says the order authorizes the department of homeland security and fema to coordinate disaster relief asked -- efforts. the storm has strengthened to a category four with maximum sustained rand at 140 miles per hour. matthew is expected to make landfall in florida, turnover -- north, and pass off the south carolina coast late tomorrow early saturday. the storm is being blamed for more than 100 deaths in the caribbean. hillary clinton holds a slim lead over donald trump in florida. 48% -- 41% torump 38%. libertarian gary johnson has 6%. jill stein has 3%.

new details about the stabbing rampage last month that a minnesota mall. theral authorities say attack was likely premeditated, and that the suspect was recently radicalize. two steaked with knives. the off-duty officer who fatally shot him inside of a macy's won't face charges. none of the 10 people stopped had life-threatening injuries. isn'trsey transit limiting a new rule for trains pulling into the hoboken terminal. the conductor will now join the engineer whenever the train arrives. it comes a week after the crash into the terminal that killed one woman and injured more than 100 others. the engineer was alone when the incident occurred. federalold investigators he has no memory of the incident. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg.

joe? joe: u.k. chancellor philip hammond is in new york on a investors reassure that it is his first trip to the -- in july.eplacing he set down with john mcswain. in the long-term, u.k. is an outward looking nation with strong trading links and investment links around the world, and outside of the european union, we will build on those historic trading links, and we will leverage the advantage of an economy which is, in many respects, more mid-atlantic than 20 miles off the coast of europe in the way it approaches markets, the way attitudemarket works, to doing business, and, of course, legal system. i think most people in britain feel, probably, halfway across

the atlantic between the u.s. and europe rather than just 20 miles off the coast of europe, and 3000 miles away from the u.s.. john: you say that in new york, where a lot of people listened voiceresa may's speech, a that sounded much more critical of business than something we have heard in a long time. certainly more critical than david cameron, certainly more critical than tony blair. is this a government that is antibusiness in some way? was that the message you wanted to send? mr. hammond: absolutely not. this is a pro business government, strongly supportive of open markets, free markets, open economies, free trade, but we have a problem, and it is not just a british problem. it is a developed world problem of in keeping our populations engaged and supportive of our market capitalism economic

model. there are people who feel -- and you are seeing it here in the u.s. through the primary campaign -- people who feel the economy is not working for them anymore, that they are the losers out of globalization, that it works for some, but it doesn't work for all. what theresa may was setting out was a recognition that we have to reengage those people who feel they do not have a stake in the economy anymore. for ad suggest that liberal market capitalism to be firmly rooted, we have to address any symptoms, any signs of a sizable group of our population becoming disenchanted with the model, whether it is in the u.s., europe, or the u.k.. we need to seize the challenge and respond to it, and that is what we intend to do. waspoint that theresa may particularly making was that the health of the economic model

overall depends on government being compared to intervene and deal with market failures -- deal with rogue operators, and we have had one or two bad examples in the u.k. recently of companies abusing market power, of directors abusing their control of companies -- of companies abusing workers. we have to be robust about those kinds of things to have a healthy model of capitalism, ago,as 100 something years the u.s. had to be robust about monopolistic models in order to ensure the health of capitalism. john: if you had taken on this new theodore roosevelt type of thing, that would surely imply -- whether you still cling to the idea of liberal economics, it would be a more interventionist government and we have seen before. mr. hammond: the prime minister said very clearly there is a limit to the power of government, but that does not mean government has no power at all.

a power andas responsibility to intervene, certainly when markets are broken. they have an obligation to intervene, to make sure they work properly and effectively. this should not be anything that alarms people in the vast majority of businesses who operate responsibly, competitively, and getting this right is essential to allowing us to continue to send out that strong message that the best way of making people free and prosperous is to have a liberal market economy that works, that drives the creation of wealth, and the distribution of wealth across that economy in a way that sees everyone benefiting from that economic growth. you abouti ask something i know you cannot intervene in in, but would be extending your views -- the sterling, which has gone down rather rapidly since breakfast. --it roughly at the level

since brexit. is it roughly at a level that you think works -- do the pluses and minuses roughly balance out? mr. hammond: we do not target and exchange rate level pay we have a free exchange rate. the market will make its judgment on the appropriate level of sterling at any given time, and history tells us those judgments can move fairly significantly on fairly small theocations, but one of self-the nine ordinances for chancellors is that we do not -- self-denying ordinances for chancellors as we do not speculate. john: you do not see unhappy about the current level. it would not be unusual for a chance into protested his too high or too low. mr. hammond: the market determines the appropriate level of stirling, and we are committed to a free-flowing market exchange system. joe: that was u.k. chancellor

philip hammond speaking with bloomberg editor-in-chief john mcswain here at bloomberg. markets close in just under 30 minutes, and while there has been movement with other asset classes like gold, oil, treasuries, and currencies, you did not see a lot today on the major equity averages, and you still do not see very much. the nasdaq currently down .1%. abigail doolittle is down at the market decide. the major averages not moving much but under the hood there has been more activity. abigail: indeed. it is interesting. we have the nasdaq going down into the close ever so slightly, but there has been some intra--- intraday choppy volatility to the downside. at one point, the composite index was down, so a bit of a recovery. unable to pull up with the s&p has done, turning green. one thing that makes this interesting that we talked about earlier was the fact the big

drag this morning, health care, is still the big drag this money. the nasdaq bio indexes near session lows, down 2.3%. we have seen a recovery in some of the mega cap tech names, and the bright spot, the big boost all day has been apple, up about 1% on the day. high or days in a row. we have positive comments on the iphone 7. it suggests demand is strong, and this is consistent with other street analyst commentary we have had over the last few weeks. thus rbc -- he is saying that quarter bodes well for apple's fiscal fourth-quarter report on october 27. that is consistent with positive checks we have been hearing on the iphone 7. pi are getting -- up, especially with

sources saying the valuation gap is roughly less than 10% at this point. so, it appears that it could be pretty close to being done. we will know more soon. as for biotech, it is a big waiting. health care is about a 40% weighting to the nasdaq. we go to g #btv 3849. we have the biotech index, the nasdaq in two blue. twothere is a strong correlation between the for much of the last year -- blue. there is a strong correlation between the two for much of the last year, but nasdaq say near record highs with the big sector weighting starting to drag. -- i often say time will tell, but it is true here -- an important one to keep an ion since it is considered to be a tell on the risk on the risk off mentality. matt: abigail doolittle, thank

you very much. coming up, we speak with the chief market strategist is is the quarter i had could be chock-full of market volatility. this is ♪ bloomberg. ♪-- bloomberg. ♪

matt: this is bloomberg markets. i am mark miller -- what could knock markets out of their summer languor -- a confluence election, the u.s. expected italian referendum, and a re-tightening of monetary policy from the fed could do the trick, according to steve would, who joins us now. you think these things could get together and knock markets down, or boost them up?

mr. wood: i think it is going to be tough. restart volatility. one of the issues we have had in the u.s., we think the economic cycle is ok. we're not calling for a recession, and we do not see a recession -- but valuation prices are getting risky. use the underweight, rotating to europe. valuations ultimately a matter, and right now they look rich in the united states. do you think volatility -- implied volatility is so low in the u.s.? all of these things are coming up -- the election, possible december rate hike, probably november, by december seen as more likely, the italian referendum coming on people's radars -- it is hard to find any -- everyone talks about it, but there is no sign it is showing up in the market. how do you explain the discrepancy?

mr. wood: i think it is complacency. the federal reserve has been holding the markets in suspense. one year ago we were looking at the fed guiding toward four rate hikes, and now we are convinced it will be a one and done in the december meetings. if you have taken the fed risk out in the near term -- we think there is a valuation argument that is increasingly important. bull runen a 7.5 year that has been very strong. people benefited. it is an opportunity to look elsewhere. also, the volatility is providing valuation opportunities. the u.s. is up, pushing 8%. so, take advantage of that, as you can. scarlet: it seems everyone is pricing in a fed rate hike for december. it is deja vu -- last year we had a fed rate hike in december. what followed was this massive selloff and all these concerns about recession. what confidence do you have we will not repeat the same instability once again? it pertains to the

fed rate hike, we had the december rate hike last year, but the guidance of the fed is it would be followed by another four in 2016. that is a different scenario than we see going into the first quarter of 2017, and we do not have a terribly high recession risk of ability for the datasets. the united states looks ok. european economy is improving. scarlet: you could have made that argument last year. mr. wood: i think you would have not made the are you -- you would say the u.s. is raking in december, and guiding for four additional hikes. scarlet: but the recession risks were not there last year, were they? mr. wood: i think it is a little bit higher than that combine a much higher than that, mostly due to the age of the expansion in the u.s.. trivial, not zero, but it is certainly not our base case scenario going into next year. joe: one of the themes in the market is all the safety trades seem to be not working well. low beta is not working well.

treasury selling off. gold selling off. i'm looking at a chart i have been tracking -- the ratio of consumer discretionary stocks to staples -- people rotating out of the staples and to the riskier, discretionary stocks. given how intense the popularity was of the safe, risky asset, so to speak, for the first part of this year, does this have longer to run in your view? mr. wood: i think so, and we run globally diversified, multi-asset strategies, and a more cyclical orientation is more likely to pay off. valuations matter. safety trade, fixed income analogs within the equity space have gotten very dear as well. we keep coming back to a valuation argument in large part, and i think part of what is going on here, too, is the federal reserve has been forcing the hand of investors for some time. it is manifested in the search for yield, but central banks have taken risk-free off the

table for most investors, and the need to understand where they are likely to get paid over the next one, 3, 5 years. competition for risk is sparse, but you do to be active, and you need to be global. matt: is dollar strength for the major russell indexes a problem/ ? they are smaller the selector cap companies. is it an issue? mr. wood: i think it is. it is less significant in small-cap space. it is less likely to in cap earnings. we see in the earnings cycle in the u.s. right now is the talent of the dollar strength. i do not know that will continue dramatically in terms of percentage changes in 20 17 like it did in 2016. matt: you do not think dollar strength will you dramatically? mr. stone: i think it's stable -- mr. wood: i think it stabilizes. with a broad bessette, it is likely to remain strong, but not likely to rally into additional strength in 2017. scarlet: talk about warning

signs emanating from the corporate sector, especially when he comes to a rise in corporate leverage. talk about how the risk might play out in 2017. mr. wood: leverage is increasing in the united states. the fed is very likely to move in december, in our opinion. one of those boxes being taken the u.s. space -- you underweight your u.s. exposure. you now want to go crazy. he's not want to short the market. we are not saying do something dramatic. use a trim, underweight, to farm areas where the u.s. is not going to be tightening in japan, europe, and corporate debt, if you are issuing in europe, you're getting paid to do so. there might be less immediate pressure. matt: steve, thanks very much. steve what, -- wood. scarlet: time for the bloomberg business flash. mars is buying out the preferred

stake warren buffett held in the wrigley chewing gum business. the candy company looks to signify ownership and reduce interest expenses. it accelerates the mars exit from securities on which it had to pay a 5% annual dividend to one buffet's berkshire hathaway. facebook is banking on a wireless future in virtual-reality. mark zuckerberg announced a new product that will not require connection to a personal computer. he says oculus has spent $250 million on developers of the vr expanse, and plans to pledge to order $50 more. tv networks might be forced to give away more commercial time this nfl season than a year ago, trying to make up for one of the worst rating declines in a decade. viewership for primetime games dropped 14% from last year, the coveted 18 to 49-year-old in the graphic. snapshot has said to be gone preparing filings for an ipo. this is according to people familiar with the matter.

the company, which recently changed its name to snap inc could list as early as march. the site known for its disappearing text and photos valuationh a market of $25 billion according to "the wall street journal." and that is your business flash update. joe: tough times for walmart -- the u.s. government is wrapping up pressure on the retail giant to pay at least $60 million to settle a long-running bride case. we will tell you what the news is doing to the price. ♪

scarlet: this is bloomberg markets. i am scarlet fu. i'm keep an eye on wal-mart shears, the second biggest drag on the dow after american express. the bottom panel shows how the stock is trading at levels not seen since last may, or i should say mid-may. a use -- a move of this

magnitude is fairly unusual. you see a sort of distribution. in the past four to five months, the most frequent movies between down .4% and up .5%. today's move of 3.3% is an outlier, outside of the normal curve of distribution. what is going on -- wrong with?omar -- walmart? stores, andclose you have a long-term decisions, but it is causing short-term pain and asked. the meantime, it is under pressure to resolve a bribery case with the government for six engine million dollars. matt: it did have one day up 9.6%. scarlet: that is true. also an outlier. matt: what an incredible outlier. speaking of outliers -- that is what i have with universal insurance holdings could i chose a five-year chart. it is investing to see what

happened last year. at the end of the chart, you see a big 10% drop. that is because his company insures homes in florida against things like hurricanes, so it is tough when hurricane matthew escorts to a category four storm and approaches the coast. the red vertical line is when whitney tilson was shorting it, saying it would go to zero. the company had to raise capital, and raising capital because of the short call is what is holding them back from further drops today. joe: i am looking at tweets about twitter using the bloomberg social tracker thing. i am looking at the sentiment of what people are tweeting about twitter -- the white bar is when people are saying good things about the covenant. the blue bars are when people are negative. go back about two weeks -- people were excited about the possibility of a sale, maybe google, disney, apple -- lots of positive tweets. we know how beleaguered the stock has been. enthusiasm. flashforward today -- negative

tweets on the news reported by outlets, that google is not interested. multiple parties are looking at it and saying we do not want to buy twitter. kind of like lucy pulling away the football moment for twitter investors. scarlet: i love that. it is so meta--- tweets about twitter. that does it for bloomberg markets. "what jim is" and the market close is next. averageshe market people we are on the eve of jobs day, which means there is not a lot going on on indexes. the s&p up almost one point. this is bloomberg. ♪

>> we are seconds away from the

closing bell, u.s. stocks ending with little change. little change in the s&p 500. matt: i'm matt miller. the s&p 500 eking out a slight gain as investors await tomorrow's biggest jobs report. joe: what did you miss? scarlet: central banks are starting to think about ways out of the bond buying maize. what happened to quantitative easing -- when quantitative easing runs out of runway? matt: as global leaders gather at the imf meeting, even christine lagarde couldn't help but chime in on the developing deutsche bank story. she told bloomberg a bad settlement is always better than a good trial. the jobs all eyes on