scarlet: doug ramsey, thank you so much. chief investment officer at leuthold weeden. coming up in the next 20 minutes, controversial ceo martin kelly says the drug is affordable even after the huge price increase. we will check the math. toys "r" us is make a push online, but it could be too late. we will show you where shoppers are going to find the best toy deal. the markets in rally mode -- can we sustain it as we head into the final month of trading? what is economic data tell us? ♪ andlet: good afternoon welcome back to bloomberg markets. i am scarlet fu. time for the bloomberg business flash. california wants volkswagen to recall its three-liter vehicles. potentialis citing vehicles -- issues with the vehicles and the recall what are also applies to audi and porsche cars. withue is breaking historical practices and recruit potential pilots with no flight experience. instead, the airline will provide its own training under a proposal awaiting approval from 5 -- federal regulators. candidates will have to meet u.s. requirements, including 1500 hours of expense to

aix: doug ramsey called for market correction in august.ng to explaining his bearish stock market outlook earlier today. doug: the dow and the s&p look resell it but the average stock has lagged behind. you could argue and i would argue the internal peak of this market was around year and 2014. when you look at the transportation stocks and deep cyclical stocks popping out, utility stocks topping out and most of your equally weighted measures in market breadth topping out in march or april. i think we are working on a topping process and we are close enough to a high on the s&p that i would allow we could make a new cyclical high but a lot of things will not join the s&p at the new high. betty: what is peaking in your view? doug: v peaking process has been underway for many months. you could argue i haven't even brought up to action high-yield bonds, but the high-yield bond markets which was prescient in the equity markets back in 2007 peaked in the summer of 2014 and we have seen cyclical stocks come a small cap stocks and the average port

doug ramsey making his case on a bear market here in 2016. much more ahead.ofmart reporting a beat profits. a sign of progress of the ceo's oil strategy. will be sitting down with the spirit and we are month injured -- monitoring two events. francois hollande in paris. russian president vladimir putin is ordering the russian navy to work with france to fight islamic militants. in washington, paul brian is holding his weekly news conference. he may talk about a task force .n syrian refugee legislation those headlines and more smart coming up. ♪ betty: good morning. welcome back. i going to head to our markets desk and julie hyman. julie: i was talking a few minutes ago about some gains in retail today. talk about the negative side of the equation. urban outfitters is falling for the second straight day, now down 13% tiered and fell yesterday after announcing it was buying a piece of chain, and unorthodox move that was not greeted favorably by investors. after the close of trading, it reported numbers be revenue hello what was anticipated. same-store sales of 1

keep tuning in because we will continue this conversation with doug ramsey.up at 3:00 p.m. he is not always a bear. scarlet: he's sort of bearish. coming up in the next 20 minutes, oil prices decline after u.s. crude stockpiles rise for a ninth straight week. we will look into how the oversupply and has airlines rethinking their hedging strategy. alix: for companies like target planning from black friday, it's a year round event. we will take you inside their plan to win the friday in anza. scarlet: while target cells have been steady, j.crew is headed in the opposite direction. investor concerns are mounting. ♪ scarlet: welcome back. alix: it's time for the bloomberg business flash, a look at some of the biggest business stories in the news. california wants full flag and to recall three liter diesel automobiles. as 45 days to assemble a recall plan on citing potential issues with vehicles dating from 2009-2015. the recall plan applies to audi and porsche. capital airways will recruit potential eyeless with no flight experience. the airline will provide its

alix: want to get your call from doug ramsey, cio, and he has been a bear of the past few months.ds by the call but the s&p will between 5% lower from 2016 and its record high. ability ofthe companies to boost their earnings. what do you think about that call? jeff: that is not our view at charles schwab. we see volatility in the markets but i improving global economic metrics. maybe a halfill be a percent, but that should drive better topline growth, and relate to better earnings, much better than we have seen in the past couple of quarters around the world. it is on the back of that army strike that we can expect to see better marginal performance in global markets next year could look for single digit gains for the stock market. scarlet: what you think if the market starts the press that in? we are looking at the peace margin worry and higher wages. that jeff: is more than rhetoric that i hear. certainly some concern as we see it rising labor costs in the u k and europe -- i'm sorry, the u.k. and u.s.. japanf europe and much of is a lot of room for margins to expand. they have