goldman. davidter in mexico city with the treasury secretary jack lew. ♪ francine: this is bloomberg "surveillance." i am francine lacqua in london, tom keene in new york. here is the bloomberg business flash. taylor: air berlin announced its largest job cuts in almost 40 years of flying. it will cut its fleet in half. 40 planes will go to lufthansa and 35 will go elsewhere. air berlin has lost more than a billion dollars. saudi arabia has made a u-turn on oil. they have agreed to cut production in order to boost prices, the first supply cut in eight years. for the past two years saudi arabia has had a pump at will policy. will eliminate 9600 jobs and suspend dividends. take charge of about $1.2 billion for restructuring costs. that is your bloomberg business flash. francine: taylor, thank you so much. coming up is bloomberg shortly. banks, german banks and u.s. banks. jonathan: i thought it was stunning the job cuts coming through from commerzbank. we will be talking about that. in the words o

>> i would question, david, that premise but i think this is more likely just goldman sachs not wanting to be brought into the whole political sphere as it already is by both candidates. i mean -- david: wait, wait, wait. melissa: come on. david: jonathan, they're saying you can contribute to clinton, you can not contribute to trump. doesn't that thrust them right into the political arena? >> they're saying it for pay for play reasons, david. as you already alluded to. the fact they don't want to be accused of being involved in payola. as of course several of the candidates have. frankly i don't blame them for wanting to be not associated with donald trump campaign. given what he said about a lot of things -- david: some people would say they made out like bandits over past seven years. no wonder they don't want to change. thanks, guys, appreciate it. melissa: members of the federal servon t hoteat ngre queionsheth the enre stem eds overul. vid:onaltrumlayi out his an tboosour lita d naonalecury. amonhis oposs ging genel 30ays comup wh a spificlan deft is. we'll put to the experts. lt.

david: the former goldman sachs leader who could be secretary donald trump is elected. carol: and how one small american company successfully faced down stiff competition from china. david: all that ahead on "bloomberg businessweek." ♪ carol: i'm here with an editor and you have a great story about the controversy involving mylan epipen's pricing. they doubled the price of it. all of a sudden there was a lot , of attention brought to it. they reduced the price and brought out a generic. it has made everybody take a look at the industry of pricing -- drug pricing. >> the correspondent does a good job of explaining just how crazy drug pricing has become and how hard it is to fix the problem. of course, epipens, it is widely used by people with terrible allergies, including myself. carol: it is necessary. >> it is especially necessary for kids who have a lot of allergies. it used to be that you could get two epipens for $100 apiece. now $600 is a lot. , what peter shows in the story is how hard it would be to fix this. this is the excuse that the ceo of mylan made. what she

david: i appreciate that. he is the ceo of american electric power. still ahead, former goldman sachs partner steve working for donald trump. when he hopes to get in the white house. ♪ ♪ marketshis is bloomberg , i am david gura. vonnie: it is time for the latest business flash, looking at the biggest stories in the news right now. tpg is wanting and tell. this is according to people with knowledge. they have held preliminary talks as as muchand mcafee as $3 million. david: cicada is developing a vaccine for the zika virus. they will receive about $20 million to fund research and manufacturing. human trials next year. visae: lisa is inviting -- is inviting talks between lenders. the test will determine if the block chain based solution can help with settlement times and credit risk transfer. that is the latest business flash. david: donald trump's fundraiser comes from a place fans love to hate, goldman sachs. he surprised many wall street friends. he was in the latest bloomberg businessweek. carol massar spoke to him. he? ephen menu 10, who is >> he is donald trump top fundrais

goldman will have to follow its competitors and premature brca these markets. david: thank you. 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 y

as goldman says, david, you've got debates, a fed meeting, weak data, net weak they argue, and that'shy they say again 2100 year end. >> yeah. and an economy that keeps kind of chugging along with an employment number that really wasn't too bad after people sort of got another look at it from the last month. you know, carl, we're only a week away, right? roughly a week away from that fed meeting. nine days. >> next tuesday and wednesday. and the quiet period starts tomorrow. so this is it. >> that's it. >> i'm very good here reminding people of the calendar. that's my role. so nine days, i'm counting down. >> but friday's still at the end of this week? >> it is. it is. and we still have to work on this friday, i believe. >> economic data picks up toward the end of the week as well. retail sales. it's a quiet day today. today it's about fed speak, which seems to matter more these days than the market. it's like everything -- i was gone last week and all of a sudden rosengren is a hawk, which i think caught a lot of people by surprise because he's been one of the most outspoken doves, a

this is bloomberg. ♪ david: this is "bloomberg ." coming in the next hour, goldmanr will be with us. emma: the yahoo! data breach is worse than originally reported. an attacker stole the personal information of at least 500 million yahoo! users two years ago. yahoo! was tiptop in july when it received a report that someone was selling information on the black market. the jobs would be lost all over the country and not just in london. he also said there were very few financial centers outside of london that could accommodate clearinghouses. thatount pictures is paramount pictures is taking it right on for a movie that will not even hit theaters until january. the movie is monster trucks. all paramount says in a statement is that the write-down is related to the expected performance of an unreleased film. lower for longer reinforced this week by the boj and the fed is spurring investors to hunt around the world for yields where they can find it. one place they can look is latin america. the president of argentina spoke to bloomberg television earlier this month on the

goldman and nicole brown. been superficial and careless in my judgment and glad to stand here in front of everyone today and tell you i am sorry. >> in hollywood, i am david daniel. >> okay. we love for you to weigh in on social media. we are on twitter. are those our twitter handles? we have twitter, yeah, we do. @krystal new love to hear what you have to say. kids are going to get a kick out of the next interview. >> this might be something they enjoy. kidville offers something for everyone kid of every age. also a member of the rocking >> we are children's center. high quality and toys, children's salon, host birthday parties, 11,000 square foot lo and theatre which houses our music program. >> is this like a day care, camp, how does it work? >> we are not a day care, kids age 6:00 is who we focus on. interactive fun classes. older kids 3-up can be dropped science, art, yoga, dance and music programs. >> so good especially for our little ones. i am learning this right now. even when one year olds don't miss anything. getting them started, music, crafts, arts, all of these different activities is very beneficial. >> absolutely. we the word. if anyone br

david asman. this is "after the bell." this marks the third straight day of triple digit closes for the dow. chevron, goldmanhs, american express, exxon among today's biggest drags. apple, surprising we'll talk about that, the only stock in the dow 30 ending in the green.

david: that is why we have you on the program. that is the chief economist at goldman sachs.nathan: counting down to the cash open in new york city. here is the mood. american express of 1.5%, the company reporting a 10% dividend boost. check out the global story right now. futures dead flat in the united states. europe has a bit of pain. the ftse down 0.6%. the dax off by a full percentage point. deutsche bank down by just over 2%, a record low at the close yesterday. here is the story in the fx market. dollar/yen -- margins from the japanese yen. in the bond market, yields lower by three basis points. nymex crude -- the iranians turning up in algeria to talk, not to make a deal. market openn to the from new york city, this is bloomberg. ♪ jonathan: this is "bloomberg go." we are about 25 seconds away from the open. down 18 on the dow. negative about two points on the s&p 500. pain felt on the dax. deutsche bank down by over 2%. another record low over in germany. you hear the bell ring in new york city. bylds come in on treasuries three basis points on the 10 year. softer,

david asman. this is "after the bell." this marks the third straight day of triple digit closes for the dow. chevron, goldman sachs, american express, exxon among today's biggest drags. apple, surprising we'll talk about that, the only stock in the dow 30 ending in the green. lori rothman has market movers from the floor in the nyse. first to the cme and trader scott shellady. many analysts blaming the drop in oil prices for the market loss, scott. we've seen other days with 3% oil drop that didn't lead to 250 point drop in the dow. so what else, what else is going on besides oil? >> well, i think the underlying problem here is the fact that we've got equity prices overstretched because of free money. i have said before, you know, we don't have interest rate problem here in the u.s. but the fed has an interest rate problem, right this they have pushed us out the risk curve looking for yield. that is the big problem. no, we don't have a problem with our interest rates as a country but the fed has to find a way town wind this that's why this little hiccup here sent things tumbling down. bearish news in oil sen

david cameron. larry sanders said he was inspired by his brothers success and is a green party candidate in oxfordshire. heidi cruise is returning to goldmann a newly created role in the houston office. she left the bank last year to help her husband ted cruz in his quest for the republican presidential nomination. according to a staff memo, cruz will report to the head of private wealth management for the southwest region. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. i am nina melendez. this is bloomberg. ♪ emily: this is "bloomberg west." i'm emily chang. disclosed 1/2hoo! of one billion of its users were affected in the biggest security breach of all time. that is more than twice the size in 2012 ands hack 100 million accounts bigger than what used to be considered the biggest hack of all time, myspace. today we learned yahoo! was first tipped off of a possible breach sometime in july when a hacker advertised 280 million user credentials for sale on the black market. in 2012 and 100 million accounts bigger than what used to be considered the biggest hack of all time,july 2y the co

cut: and the opec deal to but goldman sachs says this could raise prices up to $10 a barrel. davidonathand westin waste ferro and alix steel. banks are in the news today. jonathan: brutal. mario draghi has a message for banks and may be a message for banks beyond europe -- if you have david: a problem, it's you're doing. i think john stumpf may get that message today. alix: that will be pivotal to watch and we will bring it to you live. this is it, opec finally cutting production. the market didn't think we would see this. why do we care? idea is that we are seeing an interest in breakeven's in the u.s. and that his pivotal. david: if. alix: if it just for races the creates limited downside potential it can have a long-lasting effect. we will be digging into this in the next two hours. we have great interviews with you including simon smiles. we will discuss geopolitical concerns weighing on the treasury market. plus, an exclusive interview with jack lew. not to be missed. theyou are looking at markets and futures are relatively flat? a bit of a risk on rally helped by oil? jonatha

david: the fed decision asked congress for new legislation. what effect would that have? tom: goldmanbank that is most active. we do not take up much of an industry much of the except for goldman sachs. you put it under the umbrella of more regulations coming, the pendulum has not turned. the whole economy needs the pendulum to turn. jonathan: sticking with us, the ceo of kbw. positive on the session by 1/10 of 1%. a stronger dollar on the back of comments by the boston fed president moving into the camp who thinkakers gradual timing will prolong the economy. the dollar is stronger off those comments. david: a fascinating 2 days coming up. rates bottomedys in july and it is time to be defensive. gary stern gives us his advice. that -- this is bloomberg. ♪ i am: this is bloomberg, david westin. 15 years ago this sunday america was attacked on 9/11. we learned they targeted the world trade center and wall street to strike at the heart of our financial market. we will have a moment of silence in memory of the victims. was us is tom michaud, who there that day. where were you, what happen

goldman sachs asset management. >> coming curves up, the top rag , weighing ins us on fed chair yellen's testimony. this is bloomberg. ♪ davidew york and 7:00 p.m. in london. vonnie: welcome to "bloomberg markets." we are live at bloomberg world headquarters in new york. covering stories out of canada, washington and zurich. coming back from losses during most of the session, stops hovering around the flat line -- janet yellen said the majority of central bankers see a rate hike this year. whereore on her testimony she revealed that the central bank is taking a close look at the biggest banks. we will hear from maxine waters later this hour. duke energy wants to bring natural gas to pennsylvania, ohio and west virginia best how the company plans to make it happen. markets close in two hours. julie hyman is here with the

goldman sachs. some of these guys are already feeling a 25 basis point increase. davided the rules. chris, you get to vote by yourself. mr. ailman: i love the boj story, because i think it is very profound, because it is structural. they can't grow the balance sheets through the roof and it would not grow the economy does you could grow the balance sheets through the roof and it would not grow the economy. david: alix wins. we have: coming up, from president barack obama live from the u.n. general assembly it we're counting you down to the open, 34 minutes away. ♪ a jonathan: 30 and it's away from the opening bell in new york city. this is bloomberg . we set up for the boj and the fed decision. markets treading water. alix: any clarity? a little bit of risk taking on it to the markets into the big central-bank decision day. highs of thend the session. no big positions being taken on her jonathan: no, volatility is right down there somewhere. the fx market today, the dollar, marginal strength. you see it in the bond market, yield coming in at the long end, the revers

david: first back to the markets. whether it is politics or earnings recession, the dow tumbling for the second straight day. ending down 160 points. looks like 164 right now. goldman sachs, jpmorgan, home depot among today's biggest drags. oil a bright spot. phil flynn, of price futures watching energy climb from the cme. lori rothman from the floor of the new york stock exchange. often times oil is up but do it is going in different direction. >> wall street doesn't like uncertainty, with the big debate coming up, a lot of anxiety ahead of that. i think it is fair to say played into pressure we saw on u.s. stocks. the other factor was deutsche bank weekend report saying german government will not offer aid to deutsche bank to help it cover its 14 billion-dollar fines being charged by u.s. regulators for deutch bank's role in the mortgage business leading up of course to the financial crisis in 2007 and '08. have a look at financials. there was certainly spillover effect on that. financials led markets lower. jpmorgan chase down two points. morgan stanley a lot of an 3/4 of 1%. i want to talk about homebuilders. august sales were down but not as much as economists

with the downgrade over at goldman sachs, on equity forurn goldman is well below management twitter up 10%, and getting a boost. if you are davidng the nfl on your twitter feed yesterday and that was big news. about nine more games to come in that helps twitter. get a new card up on other areas, you have abigail doolittle joining us from the nasdaq. also over to mark barton in london. abigail, you will connect gopro. abigail: happy friday and gopro shares higher in the premarket under a new initiation of coverage at merrill lynch with a buy rating and street price target of 19 dollars per share. this is ahead of their fourth quarter upgrade product cycle. merrill lynch sees come back for gopro. also higher, shares of the health care company higher on the reuters report that the active investors of star board have export sales and talks are expected soon. plunging in the premarket, down more than 85% in the premarket on the news that the company's respiratory disease vaccine failed to meet the primary endpoint of the critical phase three study. i am betting that investors who were long, those shares of novavax are equally surpri

goldman sachs cohead of macro and market research. bayer bids up for monsanto so will this clinch a deal? this is bloomberg. ♪ scarlet: you are watching bloomberg markets. davido mergers and acquisitions starting with bayer which has sweetened its offered for monsanto for a second time. they are above the current monsanto share price. jeff mccracken joins us now. intial offer in may and opt july. sinces has been going on may. we are at 127. 50 per share. a german newspaper cannot with a story that said bayer had bumped up the offer to 130. bayer wanted to clarify they are at 127.50. i think the deal will happen regardless. this has been progressing pretty well over the last couple of months. they are allowing them to conduct due diligence and they are talking and getting access to the books and monsanto does not have any other options. it's not like someone else will show up to by them. doubt and dupont are working on their deal. -- dow and dupont are working on their deal. scarlet: why have the shares decline since the initial offer? >> people are concerned that a deal will happen and then regulators will block it. a lot of this is tied to whether ors u.s. r

david: she is not up there to talk about rates, but there is a lot of talk about rates, whether she wants to earn not. goldman sachs has a 65% chance, if you include november and december, for rate hikes by the end of the year. does that seem reasonable? matt: it is where the markets have been. over the last few days, the probability has fallen below 50% for the first time in a month. markets are starting to question if it is on the cards this year. we are starting to get data on the second half of the year, economic growth that is not much better than the first half. some people have doubts as to whether we will be in a position to raise rates. that is an open question. there is a lot of time to find out. david: matt, thank you so much. later, bloomberg will have full coverage of fed chair janet yellen's testimony before congress. alix: oil is popping 2% higher. the latest news seems to come from iranian state tv saying they are willing to work with opec and non-opec members to help oil stability. anyone buying it? the market seems to be. >> it is definitely a more conciliatory tone compared to what we heard