glencore has assets in australia.t also produced its precious metals and minds in south america and australia. both of those options appear on the table. can you explain what a streaming deal is? we may have to talk about this later in the day. david: sure. theaming deals are aimed at sale forward part of its production. tech resources in north america have announced in the last couple weeks streaming deals. a company to reduce the debt on its balance sheet. companies areese looking to shore up their balance sheets. that i guess, is the motivation for glencore. we know there are buyers out there in the market looking to do these kinds of transactions. it would look to be a good fit at this point. guy: thank you for your coverage. the commodities theme today. today marks the start of five days of events at the london metal exchange, ahead of the conference. jeans-sebastian. we asked him about china, which of course, is the world's largest copper consumer. you said, china accounts for 40% of the copper consumption. reme

glencore.avier, we kind of have no news over the weekend, then we have this ridiculous surge in hong kong. before we get to london, what happened in hong kong trading? stock forvery liquid hong kong. the volume was gigantic. it was 5 million shares. in our regular day in london, we do about 250 million shares. there has been this talk about whether glass and bark is ready to start the company. i think that what he's saying is, if someone comes to put on the table a high price for the business, sure. example, if you were to offer me -- do i want to sell my flat in london? absolutely not. if you offer me 30 million pounds, it's yours. is he about to sell glencore? i don't think so. are we hearing anyone entertaining the conversation about buying glencore? absolutely not. jonathan: he speaks later today. it's an opportunity. what's the priority for him today? >> the priority is clear. he's not selling the company. the message should be, we're fine, we're going to continue doing what we have promis

glencore shares rise again. as christine lagarde warns that low commodity prices could persist for long periods. and twitter chatter. shares spike on speculation that cofounder jack dorsey will be named permanent ceo. you are welcome to "the pulse" live from london. i am manus cranny. breaking news on the eurozone. the whole of the manufacturing for the eurozone comes in at 52. so that is a pulmonary reading. tha -- a preliminary reading. a little bit of a drop for spain. germany disappointed before he came to air. don't be fooled. analysts say it will make it to 1.20 by early next year. that is the state of play on the eurozone. manufacturing. let's talk about one other country -- it is china. more evidence this morning that china's stimulus measures may be working. the word is stability. figures show that manufacturing stabilized in the last month. $5 trillion wiped off the chinese stock markets. mark? mark: china closed for a week. the chinese stock market, still chinese data continuing to set the tone. is th

glencore surges. listing jumps as much as 72% following reports the company is talking to potential buyers for its agricultural business. vw's existential crisis. the incoming chairman warns that the emission scandal could threaten the survival of the world's biggest carmaker. asian equities rally. the regional benchmark heads for its longest winning streak in months. ahead of the open, i've got futures higher, much higher. ftse futures up 109 points. dax futures up 170 points. it seems that knows is once again good news. let's get your market open with caroline hyde. caroline: it is lower for longer. cheap cash keeps on coming. as we see that very or u.s. data coming out last week, on friday, 142,000 jobs added. well below expectations. wages don't increase. the market gets exuberant. only a majority in march is when we see more than 50% of a probability of a rate hike. not until march. that is helping drive money into the ftse 100. we are waiting for the dax to open. it closed up half a percentage p

director of glencore.up, a lot of data still to come. pmi day from china. we tell you what you need to watch for the rest of the day and break down the numbers coming out of europe, next. ♪ jonathan: good morning. welcome back. 52 minutes past the hour -- here are your top stories. . china's official factory gauge stabilized around the three-year low pmi climbed to 39.8 in september. china and hong kong exchanges are closed today for holiday. russian warplanes carried out airstrikes in syria. the new comes two days after president putin called for a coordinated response to the islamic state. eight says it hit targets. jack could be back. has reportedly selected jack dorsey to stay on as ceo, this according to -- he has been in the role on an interim basis since june. more top stories -- a lot of data to keep an eye on through the morning. pmi coming out of everywhere. in latin america, asia, and the u.s. as well. 45 u.k. time.: that is almost as for this hour. "the pulse" is up next. --us: jon, did you kno

now, glencore shares have sore this morning. we have reports that the commodities giant is talking to potential buyers. rocked in hong kong and is up over 10%. the company says it is not aware for any reasons for the movement and chairs. the bloomberg chief energy and commodities responder. up 70% at one stage. glencore does not know of any reason why this would ramp u p like this. >> if you look to us 10 days of the share performance of glencore, let's not forget we are talking about a 5100 company. they rarely move more than 5% or 6%. he is in the share price go down more than 50%. very easily traded. there are about 10 million shares today. it was a very good day of trading. hong kong got some perspective at last. more than 300 million shares of glencore changed hands in london. with a little money you actually can move the price of glencore a lot in hong kong. francine: it was down 13 -- 30% on monday, and then back up 15%. there is a danger that it may happen again. javier: i think the company needs to do a lot of explainin

quite a week for glencore. south of the epicenter of global panic, resulting in 29% of its value being erased and one day. the share price has bounced back , but the saga had people wondering if this was a layman -esque moment. so, for havingnk lived through the crisis. i don't think at all you will see the same thing in the commodity sector. i think that it is maybe longer term. predict the decrease or increase that we may see. the europe and the u.s. should do well. more about the year thing. that theree's a view are commodity businesses. are you concerned from european banking respect to that the commodity route may begin to impact the banks in europe in 2016? so. don't think as bankers we have to see 10 years ahead. we have to build businesses to add added value. the energy sector and the commodity sector, it is important, and we remain an important sector. to haveit is important an expertise in the sector, and the right financing. major recipe for success going forward, in this volatile world where at the

glencore goes further.nnounces it is selling two copper mines, adding to the $10 billion debt cutting plan. and battling against grexit. the campaign to keep the u.k. in the european union is launched. we will speak to one of the most the sufferer supporters during this hour.

glencore goes further. the company announces it is selling two copper mines, adding to the $10 billion debt cutting plan. and battling against grexit. the campaign to keep the u.k. in the european union is launched. we will speak to one of the most the sufferer supporters during this hour. a warm welcome to "the pulse," live from london. i manus cranny. rwe and eon have soared in frankfurt street this morning as the german economy minister says the country's utility companies have enough funds to pay for the decommissioning of nuclear plants. hunt nichols is standing by in berlin. hans, this has been one of the theseppressive issues on for quite some time, so this is a relief. hans: it is a relief but it doesn't mean the utilities are out of the woods. yes, you see the stocks up over 10%, but when you look at where they are on the year, eon is down 36% and rwe is down almost 36%. these stocks have taken a battering. what they've learned today is that their provisions along with another three companies, the

glencore is not the next lehman. we begin with the markets. s&p 500 posting its first decline in six days. biotech registering another big loss. they down did -- the dow did manage to eat out. biotech has been the sector to watch. joe: you mentioned them being down 3.8 percent, but it's actually much worse earlier in the day. it was close to 7% at one point. there were a few random headlines about drug price concerns with the story is that this sector just keeps getting slammed day in and day out. byrlet: are stocks being led short covering and we compile the chart -- a chart and the answer says no. what you are looking at is the average short interest level on -- all across the s&p. basically, how short it is, it's actually rising. it hit a four year high yesterday. the reason why that is significant is when you see any credit correction, the interest goes down after a couple of days because people want short coverings. we have not seen a short covering despite that 12% correction. people are still bearish. i would assume -- there is such a b

the glencore resurrection continues. long ago, glencore fell. it has rebounded.sing. these are the biggest gainers on the ftse 100. they seek600 resources indexed, which basically means these companies plus a few more, risen for nine consecutive days. that has not happened since the year 2000. this comes after they gauge fell by 29% in the third quarter. sticking with the mining theme, i had to bring up the price of zinc. zinc has risen the most ever. the most on record. zinc is up by over 10%. the big news was glencore announcing plans to cut production on the precious metal by a third. glencore is the biggest producer of the metal. it is cutting coal production and copper production as it tries to repair its balance sheet, which has been decimated by the slumping commodity prices, which has been caused by the china slowdown. it is the worst over for commodities? of pimco, which says the declines are largely behind us as producers scale back output. oil rising up by 2%. it is up 10% this week. are saying a huge sigh of relief after the fed minutes. higher rates

scarlet: going back to glencore and speaking of strategic moves, glencore said it was approached by buyerssolicited interest. why is that important? peoplee is a lot of doing a lot of deals right now. i have talked to some bankers and had lunch with some bankers. there's a lot going on. by them saying it is up for sale, let's hear some bids, people have probably approached them and they are going to get more serious. alix: this is a buyers market. why would glencore want to sell assets when the buyers have the control at the end of the day? presumably you would wait and sell when copper is much higher and make more money. what is the point? >> when you run of that much debt and you are worried about the market, that gets you into a market. dave told the market they will get that down. scarlet: i want to tell you something jim chanos told us. go thisn bloomberg morning. >> we know the company pretty well. a is a company that was reasonably high return on capital business enable market that has turned into a low return on capital and below their cost of capital. years, past handful of not th

is glencore. week of historic volatility, the commodity giant is facing a dramatic rebound in hong kong. shares are up 72%. reports that glencore is in talks with possible buyers for its agriculture business sent shares surging in hong kong. it's all the heaviest volume among hong kong listed shares. hoping to pare debt amid market concerns about profitability in a time of lower commodity prices. possible bidders include the singapore will find and a japanese company. it generated $26 billion in revenue last year. scarlet: glencore also on the move in european markets. here is a look from london with mark barton. mark: stocks started the week as they finished last week, with again. -- a gain. miners and oil companies were the big two gaining industry groups following commodities. on the data front, not so encouraging. the eurozone risk faltering after growth eased in september. that is the message from today's data on manufacturing and services, which slowed in september. u.k. services expanded at

alix: glencore takes money off the table, and other guys don't been.articularly her thing in the market has been the inventory that we have been. the rumor and the chatter has been glencore is liquidating some of its zinc stock and putting it in inventory to raise cash and what do you think about thesis? >> it is a thesis that is certainly what the market has been thinking. that has accounted for the downward movement in prices actually saw this unwinding as visible inventory in earlier in the year. that started a minor rally that brought prices up front close to $2000 in venture time in january 2 peaking just about 2400 in late may. what really happened there was a shifting of inventory to warehouse. we are starting to see that hard to the market. i think that a lot of the tours are misinterpreting the as the market being a little more surprised than we originally thought. but pretty much it is the same situation as it has been throughout the year. you. thank we wanted to get to the bottom of why this does not make sense for a long time. do not go awa

glencore is in talks to sell two copper mines.modity trader and mine may offload operations in australia and chile, which could fetch as much as $1 billion. glencore announced its debt reduction plan in september. copper prices hit a six-year low in august. let's check in on markets in asia for you right now. ok. let's take a look. to new zealand. it is climbing -- actually, climbing .5% higher. new zealand dollar is slightly weakening this morning. to australia we go right now. it started in the red and it remains there. .4% down. the australian dollar spot is that $.73. .et's head over to japan the nikkei 225 will open just minutes from now. on friday, this was the view from their, closing off one of the best weeks in asia. p 1.6% on friday. yesterday, the market closed. today, we are seeing futures pointing to a lower open. dollar-yen is holding steady at that level. awaiting some trade data coming out of china today. bestse stocks are on their three-day run in six weeks. what is different this time around? let's bring in david

about commodity prices, if you are looking at glencore, have an interesting chart for glencore.at is the fault risk, which continues to rise -- i'm locked out of there. stephanie: really? matt: he continues to rise. it has come down a little bit over the last week. we've seen the price of glencore,. -- come up. you can see commodities prices continue to come down but we are seeing a bit of a reversal of that trade today and on friday. and also a reversal of the glencore plummeting today on friday. over the last friday's you've seen glencore rise and take back what lost on monday. it still down 55% year to date. steve s: i understand this is bad news for those in the commodities business. david: those commodities are inputs for some outputs. it should be benefiting someone in the manufacturing sector. op-ed topoint of the the life that steve schwarzman leads is markets have to clear. we are not alone for balance sheet to clear because the greece and the engine is dirt cheap. we can find endless oil to save our lousy engine. steve schwarzman, when her ballot she's going to be able

. >> glencore surges. they're listening to takeover offers as the commodity trader appears closer to spinning off some of its agricultural assets. >>> in portugal, prime minister becomes the first leader to be re-elected. >>> emerging market emergency. lots of es. the brookings institute warns that developing markets could lead the world economy into a slump as the world bank cuts its growth forecast for east asia. >>> i guess this is a session that marked the tale of two commodity stocks. let's start off with k plus s because canada's potash company has abandoned its bid for the takeover of k&s. now back in august we had k plus s saying the $7.9 billion takeover abandoned the prospects. it could lead to job losses. carolyn, this deal seems to be off now. >> at the other end of the 600 glencore shares spiked after the telegraph suggested the company would, quote, listen to potential takeover offers. the company's also reportedly close to spinning off some of its assets as a number of funds hey stakes in th

you mentioned glencore.s chairman of bloomberg lp a senior independent nonexecutive director at glencore. alix: still ahead, steve jobs back on the big screen. hollywood's latest version of the apple founder premieres this weekend. how his legacy is portrayed. scarlet: this trailer is great. ♪ >> musicians play their instruments. i play the orchestra. worse than usual this morning. i did not think that was possible. it was a system error. fix it. this cannot be fixed in seconds. you have three weeks. scarlet: welcome back to the bloomberg market day. was the trailer for the new steve jobs movie. his legacy continues to grow. that movie will be out today. -- it is notne always flattering. scarlet: his widow try to prevent this movie from getting made. that did not get too far. aaron sorkin wrote the facebook movie. slack from that. he wrote this movie as well. you have to wonder how accurate that is. scarlet: he had to dive into corporate america. what's interesting is the release date of this movie. early oc

the glencore stock is to the price of copper.hen i think about another story and go further left field. vw, and what it means for the platinum industry. if ipo platinum against some of that it would not add up. what is going on with platinum? ben: it is strange, it is been on a steady decline for a number of years. the past few weeks there has been excitement for markets. americans have managed to agree to terms to sell their platinum accents -- assets. is dragging the likes of aluminum up as well even though at current prices it is effectively bust. me but thealk to significance of the bw story. ben: it is not absolutely clear what will be the and result of this. how much that will be going is the catalyst. that is 40% of platinum demand. if that did get eroded, it could be in trouble. that would be a shift to palladium, but they dig up less palladium in the new platinum. jonathan: a quick word on cutting supplies, glencore cutting zinc up by 8.6% this morning. i wonder if this is the beginning of a cycle of cuts, cuts, cuts tha

if glencore comes down, the ftse jumped up. glencore is a huge part of the story in london. that is the reason european markets are doing a little bit better than u.s. futures is mining. markets have -- stephanie: markets have rallied back and our friend tom has been crisscrossing the globe from asia to the middle east to europe. welcome back. tom: thank you. congratulations on a super week. stephanie: you have been globetrotting. what you think of these markets around the world? tom: confusion. i think that take away is that there is confusion on every continent, every tribe, every flag, every asset class, every central bank. is thea result, america beneficiary. the world with unfulfilled expectations is looking for a proxy of value, except -- a safe deposit box of stored value. and it ends up being the u.s. dollar and the american system. so america has its challenges. we have a social barbell that we whether the fed is right or wrong, which i think is kind of ridiculous discussion for laypeople to have. are uncertain.s that is causing volatility in the market. everywhere

and that is because glencore cut back production, 3.8% global production. it is not just zinc, lead and the silver are a byproduct when you mine it. when you cut back in oil rig, you end up influencing natural gas. the same thing. scarlet: this is something that no one expected, when all of these concerns came up about glencore, this is rippled through the rest of the market. alix: this is going to put zinc into a deficit this year and next year, said glencore will lose out on earning potential, because they are giving up money, leaving it on the table, because it is going to be a much tighter market. joe: look at my terminal, a very closely related theme, the total of oil and gas rigs in the u.s.. total combined is now lower than it was during the financial crisis, it does show that oil rigs are still high, but combined they are lower. it shows that there is a lower supply coming online, same thing you are saying about glencore, producers getting out of the game, the same thing with florida oranges, more balanced coming into play. leaving it,re is they're

the european glencore shares they knew why we saw that bounce. the hong kong exchange got a note from glencore saying we don't know what's behind this move. >> if you listen to him he blames it on the speculators on the hedge funds so if you believe him it might be that too. >> could be a short squeeze. i'm telling you. let's talk about commodities. we'll throw in bon jovi as well. our commodities living on a prayer. head to cnbc.com to find out more about the debt dilemma facing some of the biggest players in the energy industry. let's get back to the markets and i want to show you what happened in asia because we also had a rally with the hang seng and the asx 200 looking at their best now. their recovery best in two months time and this is back to the signing of the transpacific partnership. the biggest trade deal signed globally since 1994 when they formed the wto and this opens up 40% of the world's economy. 12 countries being involved here and we saw the nikkei bounce. this was expected because now you have, you know, the auto parts sector

he's saying glencore sees three weeks' copper supply the lowest in many years.sees the lowest copper stocks in years and he sees massive commodities destocking happening around the world. he was also specifically mentioning a mining shutdown in congo and zambia. gl glencore up by 7%. >>> i guess he would have to say that, wouldn't he, your stock being battered as much as it has? you know, i wish we could show you the hong kong list of shares. at one point we were up some 70% for glencore in one session. 70%. paring that back. i'm sure he'll take it. >>> let's get to the headlines. boston fed chief eric rosengren says the fed can raise rates despite the weaker than expect the jobs data. canada's potashe calling off the bid to take over k plus s and american apparel files for bankruptcy protection. can it make a dentist appointment when my teeth are ready? ♪ can it tell the doctor how long you have to wear this thing? ♪ can it tell the flight attendant to please not wake me this time? ♪ the answer is yes, it can. so, the question your customers are really asking i

glencore is trading down about 2%.n londonearlier trading because it is possibly going to sell a couple of copper mines. that will only make a small dent in the debt it wants to reduce. investors are selling that off. it looks like the deal was just announced. i want you to dig into the terminal and give us the latest. but i'm going to turn you to glencore. we have to find out what mr. chanos thinks. said the worst is behind say itdman and citigroup is far from over. jim, welcome. shorte a short -- you are the national gas producer, you are short console. where do you see opportunities and commodities right now? -- the spacebased has been under general deflation for a while now. we saw capital spending go from $14 billion per year to $100.5 billion between 2001 and 2012 because of our friends in china. stephanie: our friends in china? jim: our friends in china. as china and i actually -- inexorably slows, demand for hard commodities are going to be under pressure. what has happened always happens. people expand their i

glencore mounted a pretty strong defense.alists like lenders, shareholders about why the company has a lot of liquidity and plenty of strength to survive in the short-term. that has been effective. august, stock prices moved yesterday. [laughter] anna: what a relief. have, thanksust we staying the same is quite a relief. looking at a report that markets are set for the first annual net outflows this year in 27 years. we have not seen money leaving faster than it is coming into emerging markets. this is quite some turnaround. no wonder we are seeing gyrations. >> between this and the fact that markets are still expecting defense move toward tightening while it is easing. i think the markets are discounting thick liquidity. that means the trust for global market volatility, so we are going to get market volatility. we have seven years of extraordinary liquidity. banks creating more distortion than inflation at this point. as that gets unwound, where the to see more asset volatility. -- we are going to see more asset volatility.

jonathan: glencore versus goldman.he fundamentals of the company, they are cutting supply and that is going to push prices higher. goldman sachs has been out front on the commodity rout and is still calling for another rollover and oil. they've been right, will they be right again? of citigroups talking about that as well. we wanted to get started with something that is cross economics it lena komileva is chief economist at g+ economics. she writes smart, dense -- it is like a two-page long research note that takes a month to read. there's so much information. good to see you. you wore black in mourning for lima. did anything happen at the imf meetings? lena: it is actually blue. did anything happen in peru to change the dialogue that you write about? lena: the comment point between the imf, the g-30, and the financial stability report published last week, what we seeing is the structural flipside of lagarde's new mediocre. in a sense that the cyclical implications of growth risks by this are backed reincarnation of th

what glencore, though, is trying to do is a lot more.y're trying to cut net debt by some $10 billion by the end of next year. with your experience, and how you can slash debt and how quickly you can do that, is that feasible? >> 100%. >> 100% it is feasible? why? >> why because they're a diversified business and they have a lot of opportunity to find some of their asset and i still believe it's very -- it's fundamentally very economically driven company. not unless it's, you know, let's say, colleague, you know, some of their colleague destroy the market. we can see what's happening in some other area and they're very different. it's why they have been hit hard because of coal and energy prices but still people need our product and commodity needs good trading platform and glencore provide best trading platform in our sector. >> do you think that the likes of glencore have been unfairly punished by the market? >> you can see people that took shorter now took the losses. >> what we're seeing among the biggest commodity produces right now

glencore could make up to $1 billion. jpmorgan has raised its price. >>> credit suisse could slash as much as 2 billion franks as part of a rebound. according to swiss newspaper the reports said heads of big department had been told to slash spending by 7 to 10%. j jeff spoke with the bank of finland governor and ecb gov governing president. >> we of course follow the international rules which have been set up by committees where everybody's in and i think it's very important that we respect those rules but there are some details we need to work through. one's, of course, complexity. second i'll give you one example, it's about sme. when we went to the full reform and we assessed the capitol requirements on the basis of the assets, which means housing has very low risk points, housing very high risk points, you look at the experience of housing, perhaps there's something wrong there. you should be able to diversify risks. you have many smes you finance. housing must be careful because bubbles are very heavy because they h

tim: believe it or not, glencore has been a bigger shock. number of surprising reasons, it is surprising to look at the market value lost in glencore's september -- greater than all the greek banks during the crisis. the volatility of glencore shares during the month was greater than the volatility in the greek banks during their summer. and the options market expected the volatility to continue. anna: we saw the beginning of this week, when you see headlines this a momentum was to blame for the glencore flash crash, did that summit real business? bob: i don't think that means anything at all. the reality is very straightforward. what is a correlation between glencore and commodity prices is close to 100%. anna: 30% worse on monday. bob: but you have a natural volatility and glencore's share price, i do not know to what extent their shares are borrowed, but i'm assuming there has been significant shorting of those shares. also, one has to emphasize the correlation between glencore's share price and data coming out rf china and invest io conf

today's glencore news is insane. they are going to cut sink.nk up for its biggest gain as a metal for all time. for itsset zinc up biggest gain as a medal for all time. stephanie: the dancing that is happening -- it is clearly friday and matt miller is here. we need to move on. david co -- david: let's go back to david rubenstein, the cofounder and co-ceo of carlisle. you are a recovering lawyer. and the second thing is, you are a real history buff and you own four copies ---- a copy of the magna carta, a copy of the declaration of independence. we woke up this morning to rally in $2.5 trillion equity markets. oil is up, all good news. let me go to the dark side. as you look around the world, what are you most concerned about. one of the weak points as you ?ook out gekk david: we have not had a recession in six years. we tend to have recessions every seven years, ever since world war ii. so you can expect a recession. i do not think we are there now. expect some slowdown after good growth the last couple of years. i do nothing where likely to g

my colleague,g in alix steel, on glencore.ave been looking at a fantastic chart that shows just how much more volatile things will get. onx: glencore down 30% monday and ending down 6% for the week. take a look into my bloomberg terminal. this is implied volatility for glencore stock. monthite line is one implied volatility, the orange line is three months and the green line is six months. the more bearish the market is, the higher implied volatility goes. a goes to show the markets continue to expect weaker stock performance from glencore over the next six months. scarlet: we'll have to see how everything's going. in the meantime i want to get a look at the underlying commodities price that has caused so much of this turmoil. let's show you how wti crude is trading right now. we have seen risky assets turnaround, and nymex crude is no exception, up by almost 2%. i sound like a broken record here. alix: it's true. the count was really bullish for oil. it cut about 26 oil rigs in the last week. the idea is you pare back those r

. >> glencore plans to spin off more assets. it puts australian and chilean up for sale. >> jack dorsey is planning company wide job cuts to be announced as soon as this week. >>> investors are revving up for ferrari with an ipo road show with a value of $10 million. >>> i'm carolyn rock. coming up. self-censorship. apple turns off the news app in china. find out why. >>> investing in the cloud. dell is expected to have an offer for emc. and are abe's arrows hitting the target. we get kuroda's take on the landmark qe program. >>> happy columbus day. let's quickly check in on u.s. markets and futures are indicating not much. we are coming off the best week for the s&p in the year in 2015. the dow also seeing the best week since early february so, yes, we are on a bit of a role. we're going to be up a point or so for the s&p 500. the dow jones lawyer by 1.5 points. nasdaq down. not much movement so far. let's quickly check in on european markets, shall we, and what's happening across europe. we are close to the one-month highs. th

glencore is the first major minor to do that. that made people look up. of small and mid-t to do that.ing the question is whether you can get a foundation where metal prices can bottom and then finally had back up again. david: you are talking about where the bottom might be for copper. is there a consensus on whether we have hit the bottom? >> none whatsoever. some people -- we look at cost curve. at how low the price of copper could go, it could go significantly lower. was fars ago, copper lower than this, about 30% lower than today. others say, wait a minute, these mines are newer, lower in quality. people are arguing back and forth on how low it could go, or if we have seen the bottom. it's the number one question. a lot of m&a. people like glencore selling of their higher selling mines. others are eager to buy those assets. david: in this industry, when you have a company like glencore shutting down a mine, how quickly can that happen? if you go back into the 1990's, mining company were rapid. they would close mines within months of a downturn in pri

glencore has really recovered. this is where you can feel the contagion.of america thinks it could be as much as $100 billion that the financial system is exposed to when it comes to glencore. i love talking about that kind of thing. joe: i love that chart. i'm glad we finally got to show it. this is a chart -- the question is, is the manufacturing global industry about to pick up? the yellow line is a chart of the s&p industrials relative to s&p relative to stocks overall. as we zoom into the last two years, if i can -- there you go. industrials had been fading hard relative to stocks overall. but in recent months, industrials have been rallying relative to stocks overall. are industrials indicating that maybe manufacturing and global economic activity are going to pick up? and the reason why it might be a sign is -- compare this to the ism. tracking fairly well. as the ism has rolled over, industrial stocks have rolled over, and vice versa. hopefully, that rise is an indication that manufacturing is about to pick back up. scarlet: a leading indicator. th

you have seen glencore. was surprised it took so long to see a meltdown in the commodity-based stocks. the banks will have problems with commodity lending. generally in the industry, generally across the economy, credit is improving. investment-grade credits are at the y.e. for the year. they're not in a bubble. >> is china, are the emergencying markets in a void? >> they are in a void. the problem that line that has and brazil has. in the near term, debt has grown faster than economies. they're indebted. we are in the u.s. we have a productive economy. they don't have the pruk tifrty to pay off that maxed out credit card. i'm cautious on the markets. >> taking you back to bonds. quickly. have we not yet seen the low in yields? >> possibly not. the way i look at this is with say 2% growth in the economy, there's no real reason i can see why the ten-year yield should be above two rather than below. i tend to think that rates will be steady at the urnt level. i don't see a rise. the fed funds should still go u

we view glencore as one of the mining businesses involved in a key commodity, copper.ood structure. trading operation. they provide a foundation for earnings. when you combine their involvement in the right commodities -- with the exception of coal, and their strong trading operation and a management team that actually thinks about returns on capital and has a lot of skin in the it's to us -- by the way, the first time in 15 or 20 years that i have a mining company. >> i was stunned. i want to know how you parse the aencore balance sheet as the tradinggainst operation. can you discern and delineate those two? >> clearly, there was too much debt on the balance sheet given what was happening to the price of copper. it literally got cut in half in the last 18 or 24 months. debtly, there was too much when you look at what would copper went through $5,000. 4500 dollars, probably ok. but given the pace of the , managementopper thought it was important to bolster that balance sheet. anour chairman is independent member of the board of glencoe. do you want to see, as an activi

that is exactly what glencore has done this week.ity, telling people it will get better. it is acknowledging the commodities business is not what it was 12 months ago and it is doing something about it. areare right that companies quicker now to get ahead of the curve rather than being overtaken by events. changing personnel when they need to. thank you very much now let's get a look at the top stories. russia's foreign minister says the country and the for mr. ci july in their fight against syria. expandis not planning to the taxes in syria. >> when they met, i can assure you it was a very constructive atmosphere and very friendly. things in a very open way. reason, i believe they completely understand. he insists the fight should be the global top priority but they are fights alone will not resolve company's's problems. a 14% sales increase for september. the automaker, 66 straight months of delivery. they climbed 40%. fiat and general motors are .rojecting faster fiat, ford, volkswagen, and toyota all have resulted beat estimates.

the base loses today, glencore down 5%. the dax off by .3%.onger euro and a much stronger aussie dollar. a very neutral policy statement this morning. let's get you top stock stories with caroline hyde. caroline: the kickoff on the west -- on the worst quarter. btg down. 14%. an update that the sales are disappointing. it is dragging the stocks lower. glencore the second worst performer down 5%. a bit of a turning point. the shares falling for the first time in three days. 21% surge yesterday. perhaps a little bit of money coming off the table. certainly, hong kong continued to rise higher. four days of rises. ouygues up this morning. they are uplifting their margin growth. sales bygrowing in 10% 2017. this asset they refused to sell for $11 billion as they continue on their trajectory it back to you. -- trajectory. back to you. jonathan: yesterday we saw a drop in the pmi numbers. let's go to berlin. hans, talk to me about the numbers. you have people who say this is a noisy day. another group who say this fuels a narrative that we have a slo

the chairman of bloomberg lp is a nonexecutive director of glencore. to me about what glencore did.ing down and scaling back. everybodyl the news already knows, a $30 billion debt pile, slumping commodity prices. it was obvious to them that they need to start making cuts and one that they announced recently was scaling back on curtailing production of zinc. the market had a bit of a jump after the news was announced, mainly because a lot of people were not just expecting this to come along. >> for those of us who do not know what zinc is used for? >> about half of its use is galvanizing steel. is it a huge deal considering the amount of steel production. long as we see demand for steel, we will have that go with it. decides to cut its output. what happens? we see a real spike. >> we do it we were expecting two large mines. coming off line this year. two of the largest. we were expecting some sort of shift in 2016 according to a number of different analysts. this year, a lot of people think , ok, it is not done yet. a question now, well, will it actually happened? glencore comes out

investors are expecting a bearish outlook when it comes to glencore. joe: that insane day when it 30%. already, the stock has recouped a lot. people will be watching glencore as a bellwether. i want to dive into my terminal. i made a messy chart to tell the story of the global economy. there's no hope breaking down what each line is. here are a few of them. the white line is chinese pmi. the green line is south african power consumption. -- there is a common thing. they are all going down. this is the story of the world economy now. anything related to emerging markets, commodities, china, manufacturing, all going down right now. europe manufacturing still growing, but not the direction we want to see. >> you have a killer auto sales report coming out. is a positive domestic u.s. story, but global manufacturing, commodities, continues to be ugly. theomorrow, we get all-important jobs number, employment data for september. joe: a bloomberg survey of economists says 200-1000 jobs were added last month and that the jobless right will hold steady at 5.1%.

glencore ounces back.will look at how one of the biggest commodity traders hold off the comeback. ♪ david: from bloomberg world headquarters in new york, this is the bloomberg markets a. at first wordook -- mark crumpton has more from the news desk. mark: an amtrak train headed from vermont to washington, d.c. has derailed and central vermont. late word from the associated press quotes amtrak officials as saying at least seven people were hurt, one seriously. theak says the rate -- train struck a rockslide about 20 miles southwest of mount hillier. outgoing house speaker, john boehner, says his replacement will be elected october 29 with other leadership posts decided later. the republican conference is still meeting to elect a speaker nominee by secret ballot. kevin mccarthy of california is considered his likely a successor. but jason j fits is mounted and unexpected challenge. the u.s. and 11 other pacific rim nations have agreed on the landmark free trade deal and already, ford is calling on congress t

shares of glencore also up.hat after the company announced plans to cut annual zinc production by a third. and alcoa's falling after it posted weaker than expected quarterly results, in part due to lower aluminum prices. last night on "mad money," jim was told alcoa's outlook has optimism. >> our experts press injected a deficit for next year in aluminum. then we have seen the stock price, what's in warehouses coming down to levels that are below the levels that we have seen before. i think there could be a lot of optimism in there. >> how much does alcoa predict what is going on? >> if alcoa is splitting into two different part, and then this upstream business, basical basically aluminum and balcite. claus was saying this aluminum company that everyone seems to hate today, if it were separate, it would be like freeport, up 30%, 40%, if glencore is cutting back zinc. we're hearing rationalization to valet. bhp and rio have had big weeks. he said this would be the pure commodity play would like. he said it is a w

ultimately the future for glencore depends on the price of commodities. if the slump continues they are in trouble. francine: what kind of percentage are we talking about? what another 5% drop in the place of copper do it for glencore? >> i think that's a bit strong. if we start to see a move significantly below 5000 dollars, i think concern will come back to the fall about how the company can generate the cash flow it needs. this minor here is has more debt than any of its peers. tom: thank you so much. we've got much to discuss this morning. dominic konstam and carl weinberg are with us. the first same firm anymore, but they have agreed to be with us. not together, but talking back to back. the san francisco 49ers are the worst team in the world. bill gross will join us. stay with us. "bloomberg surveillance." tom: good morning everyone. time for our morning must-read. this on international relations. here's vonnie quinn. this is talking about how russia really has to work with not against america in syria. the russian naval and air presences in syria a

we have news out of glencore.iliar with conversation say the sovereign wealth fund of singapore is among investors that have expressed interest in buying a minority stake in agriculture business. mike: glencore was looking to sell off a portion of its agricultural business. bloomberg reporting today there is interest in it from asia. that is propping up the stock price. it is now up i 4%. let's go over to jon ferro and see how that is affecting the markets overall. i'm looking at the response on an intraday basis. to thisreak it down individual component, the objective is to pay down the debt. the good news there is a buyer potentially for this stake. the unknown will be the price. citigroup putting a price on the unit north of $10 billion. the price will be important but a little bit of optimism to wrap up a very choppy week for this company. i have the stock up 4%. mike: tom keene is with us in boston. he went up there because he could not stand the idea of being in new york when the new york yankees clinched a

for glencore.as investors worry about liquidity and a slumping commodities pricing. glencore responded by seeking to cut his $30 billion debt load by one third and shutting down. the lastre down 30% in month. the worst performer in the u.k. benchmark stock index. the chairman of bloomberg lp, the parent of bloomberg news, is a senior independent nonexecutive director a glencore. jam.t, this is your commodities. david and i sat down with another board member, the former morgan stanley ceo. take a look. >> they had a balance sheet with too much debt on it. we raised in offering. we had begun to cut back on some. you have seen what happened in the dock in the last few days. managers who fun short the stock and play with the cbs, is exactly what happened during the crisis. it is fine for them to do that. creates a lot of volatility. stephanie: our fund managers to blame? you put yourself in the position where our numbers are ordered billion dollars, and you put yourself in a vulnerable position it make

glencore's wild could this be the commodity markets moment?

brings us to commodities, in particular glencore.king at it on my terminal and the implied volatility of glencore, the white line is one month, the orange light is three months, and the green line is six months. it shows that the bearishness of the stock and the volatility is expected to persist for a while. where does this show that we are in the commodity cycle. cycle?he commodity marc: that is an interesting question, and the issue with cycles is you are never 100% sure that you are at the top of the cycle or the bottom of the cycle. my sense is that some commodities are approaching .ajor lows but could they stay low for an extended time frame? even in my global economic outlook that may be the case. scarlet: we do get an increase in prices. for those still hell-bent on expecting all of this easing monetary policy to lead to a hyperinflationary scenario, what might it look like question mark what will we see first -- what might it look like? what will we see first? marc: my guess is the signal would be investors losing -- the sign

outperform.ed to can we get shares of glencore as well?own about 7% off first reaction here to news of the expanded asset sales. glencore likely see dispose of two copper mines. shares are down the most in two weeks, 7.2%. nikkei down 9/10 of 1%. in today's trade, down 3%, down as much as 4%. the accounts, roughly half the decline we are seeing in the nikkei 225. brokerage, their .rice target, ¥30,000 the top in 12 months. that is a decline of 20 -- 12,500. fairly simple. a big decline. back to you. rishaad: numbers out of china, reaction from eve on. - from yvonne. yvonne: let's recap the yen terms. we saw the export fall much narrower than expected. that was surprising. year from 2014. they were expecting a 7.4% drop. much better than what we expected and much better than what we saw prior, when we, in drop.or august, 6.1% we are seeing three straight months of contraction, but ,ccording to the customs bureau we are seeing some good momentum. the third quarter, narrowly , policy as well as orders. the surprised evaluation of the again in

you look at freeport and glencore, and you talk about leverage.opposite of what carl was talk about when he sat on the show with us, judge, and this week he said these are the kind of companies apple specifically that are generating all this cash that should be borrowing so they can use that to buy back. he is not saying to buy back shares. that's a bad idea. leverage can kill, and in these examples brazil and glen core, that could be exactly what's happening. >> all right. coming up, despite getting weak guidance, posting its worst day ever yesterday, one analyst says it's time to buy dunkin' brands. he is next to defend the call. john recommend aing name yesterday that made him a 400% return in less than 30 minutes. he will tell us what, how, why, and what's next. when we come back. when a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast. thankfully, mary miller banks w