vonnie: i am vonnie quinn. european close on bloomberg markets. ♪ mark: here are the top stories we are covering from the bloomberg. u.k.,ion heats up in the reaching 3% for the first time in more than five years. should credit suisse be doing more to create value for shareholders? aswill hear from both sides the banking giant makes slow progress on its turnaround plan. we are going to hit the road with the president of general motors, dan ammann. automaker is making a push into autonomous vehicles and ridesharing. when will they see a pair -- a payoff? have a look at where european equities are trading now, 3

vonnie: and live from new york, i am vonnie quinn. this is "european close on bloomberg markets." ♪ mark: here are the top stories we are covering from the bloomberg and around the world. the central banks are looming large with a possible unveiling of president trump's pick for fed chair. in asia, japanese prime minister shinzo abe and what his election the three means. -- election victory means. trump's tax plan building up momentum. plan i december possible? stocks are marginally higher for european stoxx 600. in spain, down by 4/10 of 1%. all of the currencies are declining against the dollar. there is some corporate news today. surging sales in china helping to lift the touch equipment company's profit in the third quarter. sales are up 4% on a comparable basis, and just narrowly missing estimates. at focus, the 126-year-old dutch company is to help technologies. they have moved away from their historic roots in manufacturing lightbulbs, tv's, and compact disc players. shares are up by 1%. big news in japan. this is a great chart

vonnie: i'm vonnie quinn. this is "bloomberg markets."the worst performers for the stoxx 600 today is providence financial. about why to talk shares are down sharply, abigail doolittle. >> not only are shares down today, but on the year, they are down 70%, on pace for the worst year since 1981. june.tory goes back to plunge back in june when the company basically profits would drop by half. back in august, there was a report in the sunday times in london sing the shorts were circling. this massive decline behind today's drop -- barclays downgrading shares to underweight. .nalysts slashing targets they have not updated guidance, plus she doesn't like the fact that the company has lots of outstanding. it seems there could be trouble ahead for some of the debts due in 2019. mark: why is this analyst worried about the company's debt? abigail: when you look at the balance sheet, they don't have a ton of cash, 215 pounds in cash at the halfway mark of this year. we see right here that the debt due in 2019 roughly $250 million. this is more do t

vonnie? vonnie: thank you.oming up, a billionaire activist on the defensive about his stake in adp. carlos rodriguez getting his chance to push back. it is an interview later this hour. right now on capitol hill, the u.s. attorney general jeff sessions testify before the judiciary panel. it is likely to be a wide-ranging testimony. you can follow on the bloomberg. and this is bloomberg. ♪ >> baltimore is on pace the top the number of homicides over new york city. ♪ ♪ vonnie: live from world had coded -- headquarters in new york and london, i'm vonnie quinn. mark: this is "bloomberg markets." gold sliding for a fourth day. the likelihood the next fed chairman will be more hawkish. climbing back about $52 april for crude oil. joining us to discuss. todd, how are we positioned? how should we be positioned ahead of the oil inventory data in 19 minutes time? guest: i think the data has been priced into the market and they are expecting slight declines. i think over all the numbers we have seen have been supportive o

vonnie: exactly.te and local deductions, also part of this sticking point, a group of sticking points. who emerges to make a deal here? the president can only advise. he cannot say yes or no. but this is his plan, right? republicans on capitol hill are the ones tasked with writing out what these deals are going to be. the good news for the president is these are people who are used to negotiating with lawmakers, used to making the sorts of trade-offs they need to get things across the finish line. republicans don't have the best history with that. they were blocked on their attempts to repeal and replace obamacare. this is going to be a real test of the leadership of both the house and senate. one thing republicans have been consistently united on is tax reform. so, it will be a real test to see whether they can do that this time. vonnie: the house freedom caucus seems to be gung ho about this. they don't seem to mind how much the debt ceiling gets raised. but there are republicans who are vehemently

vonnie: from new york, i'm vonnie quinn. adp days left shareholders vote on what has become a close proximity between the company's current management and bill ackman's square which has a stake in the company around 2%. recommending shareholders vote to reelect nine of 10 directors, but that is the same as partial support for bill ackman. iss recommending shareholders withhold their votes for the comin current board membe. two other returns are backing the plan. ceo,oke with adp's current carlos rodriguez. have a listen. >> the board had a meeting with bill, a special meeting to listen to his ideas around margin expansion and other ideas he has run consolidating operations, etc. the board has always been open and continues to be open to new ideas. vonnie: lots of support for bill ackman. at the same time, it is a close battle and a lot of opposition. joining us now for an exquisite interview is greg, who served on the atp board for 14 years. he no longer has a position in adp, have bee having given any outstanding shares ove

vonnie: i'm vonnie quinn. european close on "bloomberg markets." ♪ mark: here are the top stories we are covering on the bloomberg and around the world. barcelonatuation in is the catalog parliament votes declaration of independence and spain invokes a plan to take control. all the market moves. banking ubs liens and its wealth management expertise to post a better quarter. bank is staying ahead of the curve. the ecb has spoken with the boe and the fed next week. we look at whether any of the central banks are in for a major surprise. where european equities are trading right now under 30

vonnie: live from bloomberg world headquarters, i am vonnie quinn.fy says he moves -- the elaborated in an interview with our editor-in-chief. the marketgood for is making sure we do not limit participation to the marketplace, liquidity is critically important. participation, especially in times of stress, when things are like they are right now, with low ball and not much going on, in times of stress, you want to make sure everybody is in the marketplace that can provide -- >> dodd-frank or whatever. >> it would go through the volcker rule, a way was written, i do notdvised, support that and i believe the banks should be allowed to prop trade. there is nothing wrong with it, as long as they are regulated like everybody else. their liquidity is critically important to the marketplace. and for the security of the marketplace. i did not -- i did not like to see them taken out of certain asset classes. you can prop trade in u.s. treasuries on the cash side, but not prop trade in the future side. on u.s. treasury's you some say that is not good, we are n

vonnie: in new york, i am vonnie quinn.berg market. >> please sit down. we have a great group. thank you very much for being here for the incredible work you are doing to help us pass the really historic tax cuts. there has never been anything like this. it's also reform. it's also simplification. we are covering everything, there has never been anything like it. the economy is doing very well. a lot of jobs are going

vonnie: in new york, i am vonnie quinn.s year's nobel prize for economics goes to richard thaler , the university of chicago booth school of business professor, for shutting light on how human weaknesses and biases can impact behavior and ultimately markets. co-authored the bestseller "nudge" with caps on sunstein ass bloomberg view. he joins us on the phone. congratulations, professor thaler. richard: thank you very much. vonnie: what is the most interesting phenomenon of daily life that you would apply behavioral economics philosophy to? richard: i think the miniscule volatility of the stock market -- not that i have been a clinician it, but it is certainly puzzling, and puzzles -- not that i had planned nation for it, but it is certainly puzzling, and puzzles attract my attention. vonnie: the stock market is going higher. do you have a behavioral explanation for this or anything that would help the federal reserve in its decision-making? know, i guess you i would use sherlock holmes' strategy of listening to dogs not bar

vonnie: i'm vonnie quinn. time for our uts friday segment.rtificial intelligence continues its penetration into the asset management business. it will be managed by ibm's watson computer. here to discuss, the senior etf analyst at bloomberg intelligence. lots ofas been used for different things. this is the first time it has been used for money management. >> this is borne out of two young guys who have a relationship with ibm. one is going to be watson. the goal here is to use watson's -- to mimic an army , going toh analysts regulatory filings, news reports and spitting out stocks to invest in. the firm will implement those stocks and rebound if they need to. it is an active strategy. >> i'm wondering how many stocks are going to be in it. you basically make a list based on your criteria. it is small, mid and large. , active share. that just means how much etf is there. this is 98% active share. that is good. there is a lot of active share but it can be win big or lose big. that is what is going to drive into this. if it doesn't it will pro

vonnie: i am vonnie quinn.are watching the catalonia speech we expect from president carles puigdemont which has been delayed for one hour. the opposition lawmakers have abandoned parliament before the speech. the speech to be given by president carles puigdemont has been delayed by one hour and should happen at 1:00 eastern time. we will bring it to you live and you can follow on tv . feud with bob corker could take its toll on tax reform, the president's allies here the world words that fear the world towards -- fear the war of words could put tax reform in peril. to corker not the only one hear from donald trump, who has also lashed out at john mccain. corker is not looking for reelection. let's bring in our national political reporter and kevin cirilli. could goo people that maverick in the senate on the republican side, john mccain is ready to prove he can be a complete maverick when he wants to be. -- any gop led legislation down the drain? >> not necessarily, john mccain will not just vote against ev

vonnie quinn. this is the european close on bloomberg markets. ♪ the top stories we're covering from the bloomberg and around the world, one hour until they possibly moment of truth for catalonia and spain, will be catalonia president declare independence or back down? we are live. questions swirled around prime minister may's future and the outlook for sterling, our guest says it is between a rock and a hard place. silicon valley and washington maybe 3000 miles apart, but tech companies are feeling the government pressure and we will tell you how google and facebook and other companies are in crisis planning mode ahead of congressional testimony next month. now, an equities trading mixed day with the pivotal meeting of catalonia's regional parliament coming up. the euro is rising, up two thirds of 1%. bond yields are gaining. we have had some retail sales data today in the u.k., retail is the clearly losing the battle against high prices, potentially strengthening the case for the bank of england

emily: vonnie, back to you. vonnie: thank you, emily chan.overnork of england mark carney setting the stage for the uk's first rate hike in over a decade. inflation data suggests the economy is at a tipping point and we are following that breaking news. the dow topping 23,000 for the first time. the sixth record milestone reached in the last six months. this is bloomberg. ♪ ♪ live from bloomberg world headquarters in new york, i am vonnie quinn. mark: live from london, i am mark barton. we are nine minutes away from the end of the session, inflation climbing to a five-year high. mark carney says a rate hike may be appropriate in testimony earlier today. he indicated inflation may peak soon. >> it is more likely than not that i will be writing on behalf of the mpc a letter to the chancellor. we expect inflation will peak in around the october, november figure. peeking potentially above the 3% level. mark: joining us, john roe, legal investment management, head of multi-asset funds. quick peek at this chart, sixthr milestone, the milestone in s

vonnie: and from new york, i'm vonnie quinn.hard thaler won this year's nobel prize for economics. the university of chicago professor is responsible for the rise in popularity of behavioral economic, and for shedding light on how human behavior can affect markets. the book has had a great influence on people like conservatives in the u k, democrats in washington and many more groups, too. in a press release, the royal academy of science says, by exploring the consequences of limited rationality, social preferences, and lack of self-control, baylor has shown how these human trait systematically affect individual decisions as well as market outcomes. last year, richard thaler spoke to bloomberg tv about predicting mistakes and markets in order to find other opportunities. >> we don't try to forecast the earnings of some firm. errors inecast the other people's forecasts. because if we try to focus earnings -- because if we try to forecast earnings, we would make the same mistake as everyone else. if you are watching a baseball gam

this is bloomberg. ♪ vonnie: live from new york and london, i'm vonnie quinn.k: i'm mark barton. this is bloomberg markets. ,atalonia is under threat madrid taking over the place over the weekend and cap lawmakers and bureaucrats away from their offices. spanishing in our colony reporter, maria. what charges are they facing? good afternoon. no signs of tension. it would seem no human shields, so to speak. i want to say we've got news from the state prosecutor in madrid. -- he wasssed charges ousted in office him in a of sedition which carries 15 years in prison. the most serious charge is rebellion against the state. that is potentially 30 years in prison. we talked about who paid for this illegal referendum. it is the rest of the regional cabinet and the speaker of the catalan parliament who will also be charged. vonnie: go ahead, mark. tok: is there validity [indiscernible] fled to brussels? another surreal turnout. fled the country, he is in brussels. the idea is to he is potentially going to seek political asylum. apparently there are five members of the re

vonnie: i'm vonnie quinn.t is time for our ctf friday segment. >> appreciate it. we are talking cryptocurrencies. u.s. regulators have been not yet approving a bitcoin etf. pulled ahead in this race. why sweden? >> it is the capital of cryptocurrency. there are now two. has $3t -- bitcoin an that million. it has grown like crazy. when you look at the growth of these there's a lot of money coming in. how does the u.s. investor, do they just talk to their broker, how does that work? >> you have to be more qualified investors. jpmorgan came out. that is what they are using. they are using the sweden provider. this is the one mark cuban mentioned that he mentioned to emily chang last week. this tracks bitcoin. was thews the structure private trust. that is attracting these pros. etf is physically backed. it is a note from the issuer. there is credit risk. >> where do we stand here in the u.s.? what's it is all wiped out. basically, what you have is bitcoin futures. here you do not have them yet. they came out to a

vonnie: and i am vonnie quinn. adobe shares soaring and extending to a record.ring in abigail doolittle to find out why. abigail: the stock is now up 64%, up more than netflix. they give guidance for the fiscal year 18 that was well received, strong revenue growth, earnings, profits. analysts are pretty positive and it establishes the company's dominance as a solutions provider for digital content. is the fact that they are planning for price increases in 2018. we are looking at peak margins. if we take a look at the rental analysis function on adobe systems, we are going to see that the margins had been in the 34% range, but now we are closer to 42%, that is a monster move higher, investors liking it. interest,hort positive story. vonnie: abigail, thank you. now onto the fed. president and fed chair janet yellen are set to meet at the president includes his interviews of candidates he is considering to be the next fed chair. scoop, we learned house conservatives have mounted a campaign urging the president not to reappoint chair yellen. let's get the latest wit

vonnie: thank you.hich youve interview can check out online and later on today on bloomberg television. time to check in on first word news. >> president trump on his way to las vegas to meet with first responders. authorities have released photos from inside stephen paddock's hotel room. the woman described as pad ex-girlfriend return from the philippines. she was met by federal agents. president trump is suggesting puerto rico government debt could be wiped out to help the country recover. he told them that the country owes a lot of money in debt. commentked back the saying they would not bailout puerto rico. president vladimir putin says russia may extend a deal with opec to curb oil supplies through the end of 2018. who spoke on a panel -- putin spoke on a panel. >> we do not know yet whether we are going to extend it. overall, towards a minimum of 2018. in the u.k. a heckler at the conservative party firedence noticed she was . global news 24 hours a day powered by 2700 journalists and analysts in

vonnie: and in new york, i'm vonnie quinn.inance minister german finance minister who step down is warning of another global crisis. he said economists a look at the world are concerned about the increasing risks rising from the accumulation of more and more liquidity, and the growth of public and private debt. i am concerned about this, too. joining us on the potential for financial instability and also are sorry happy to have andreas dombret. he is with me in new york. we'll get to the finance minister's concerns in a minute, but let me ask you the overhaul on global banking rules. how close are we? andreas: it is very hard to say because we have been negotiating for such a long time. there are still differences, but it is, i think on everybody's mind that we need an agreement. it would be good to have an agreement this year. must, but it will be great to have. it will open up the box of pandora. ofare working on year and vascular working on the year end of 2016 numbers. vonnie: the whole world is changed and headquarters ar

vonnie: and i am vonnie quinn.erg markets. " us tol doolittle joins talk about marriage trading action once again today. abigail: a bit of a delayed reaction to that horrible report that put up last week with a missed earnings by 42%. friday was a roller coaster in a big way. if we go to the bloomberg, we can take a look at this. shares are down by as much as percent -- as 6%. ceo david investors a lot of comfort around going forward. we are seeing now their worst day since the brexit announcement in 2016. what is happening here is that investors are taking a look at the earnings and saying that a reset could be a real challenge for the company. that all-important dividend could perhaps be cut. investors not liking the multiple downgrades. the question is whether or not this is an actual reset. it could come down to a bad investor day on november 13. mark: that is clearly the key. beyond the dividend, what else will be discussed? abigail: the dividend will be key. updatesexpect some before november 13, but he on th

vonnie? vonnie: mark, thank you.ek, bloomberg has been focusing on the automation of wall street and the revolution. joining us now is gary norcross, whichent and ceo of fis, is a leader in financial technology. ranking -- more than 10% year to date, which means 25%. congratulations. gary: thank you. vonnie: more than 50,000 employees, and headquartered in jacksonville, florida. what is your main business, and what are you working on next/ ? gary: first, it is a pleasure to be back today on bloomberg. we are exclusively focused on financial services, and we focus on a very broad array. we handle retail banking, retail payments, also wholesale products, so really anything that our clients need to offer in order to compete in the industry. fis offers the capability to help them do that. shery: there was a lot of optimism about the regulation coming from these banks. have you seen that optimism translate into your sales, or are you still waiting?you are right gary: -- we have seen a lot of optimism around regulatory ref

vonnie: i am vonnie quinn. the european close. $11 a month is what netflix will now charge for its most popular u.s. service. shares are higher, up more than 3% on the news, taking it our stock of the hour. julie hyman joins us with a close look at the share price. and we are lucky to have gerry smith, bloomberg news media reporter. he talks about the business side of this decision. investors are delighted. julie: it is trading at a record. netflix at the moment. what is interesting about netflix is, you look at it versus other content providers -- netflix is known for spending making theseent, investments, and not necessarily making a lot on it. in other words, when people are buying these netflix shares, it is essentially this bet on future growth and continuing growth. if you look at the bloomberg and the free cash flow of netflix, it is not there. it is actually negative, especially when you look at in versus traditional media peers. it is here in the light blue bar. discovery,s and viacom, 21st century fox

vonnie quinn. this is the european close on bloomberg markets. ♪ mark: here are the top stories from the bloomberg and around the world. the ecb will remain accommodative as the fed may turn hawkish, driving stocks and the dollar higher. how to invest amid central bank uncertainty. i wall street firms set to get a major reprieve from the upcoming missive to rules and learning goldman sachs may chart $50,000 for post- mifid research. president trump due to meet with members of the senate finance committee, a key committee when it comes to passing tax reform. can he make progress towards this agenda. european equities are trading under 30 minutes until the end of the wednesday session, rising for the first day of three with highest levels for the stoxx 600 since june 19 with all currencies falling against the dollar. bond yields are daily -- gaining. dax isnd in the diverging from the technical momentum indicator. the relative strength index. something usually seen as negative and technical analysis.

this is bloomberg. ♪ vonnie: this is bloomberg markets. i am vonnie quinn. shery anh. vonnie: success brings a problem for companies, how to keep engineering it. microsoft ceo satya nadella was cast with just that when he was tasked to lead microsoft's bing and cloud team. told us on the david rubenstein show. david: you are running the microsoft solutions business but then they said we would like you to run the search business and did you say you cannot compete against google or did you say i am happy to do that? promotedhad just been to lead our business solutions team. i was loving that job, something i had aspired to do. steve comes around and says i have an idea for you. i think you should go run this a very tough task ahead and i don't know if it is a good carrier move, but i need help and think wisely and choose. , wow, this is an interesting choice in front of me. i remember, distinctly going that night to the building in which the bing team and our research team was housed and it was maybe 9:00 or so in the parking lot was full. wow, what is the dea

vonnie: thank you.oming up tomorrow, i will speak with pershing square's bill ackman on his ongoing proxy fight with adp. including the claims from adp that it will lodge a complaint with the sec. that is tomorrow at 12:30 eastern. this is bloomberg. ♪ mark: live from london and new york. i'm mark barton. vonnie: i'm vonnie quinn. this is the european close on bloomberg markets. shares of chipmaker qualcomm 7%, one of the worst performers in the s&p 500. let's find out right now with abigail doolittle. >> there is a report out saying that apple may consider not using qualcomm's chips in their iphones and appetites starting next year. we have had an ongoing legal dispute between these two companies over pavement and this seems to be apple showing its muscle. if you don't do it our way, we will use other chipmakers. it could be anywhere between $.25 and $.60 of earnings next year, depending on what analyst model you look at. what is at stake here, qualcomm trying to reserve its royalty pervy model. if we

vonnie? vonnie: julie hyman, thank you for that.resident trump's former campaign manager paul manafort and is one time business partner, rick gates, charged in russian meddling in the 2016 election facing money laundering and conspiracy in a 12 count indictment. chieftest is our counselor. we had the indictment, 12 counts. what do they include and what is potentially the most damming of the indictments? >> the indictment insult -- the indictment itself does not address collusion between the trump campaign and russia operatives. in that sense, it is just the indictment insult rather than the specific charges that caused the problem. vonnie: we are starting to pull on a piece of string that was pulled before manafort's involvement? marty: correct. these were all purported events that took place before the campaign and do not involve his work is campaign chairman. then again, it does subtly become a real thing for this white house that they have to deal with -- this becomes a real thing that the white house have to deal with. many peop

vonnie: thank you.the house narrowly adopting a budget resolution that is a crucial step in the gop tax overhaul plans. givingpeaker paul ryan his weekly news conference right now and saying he is leaving the details to the ways and means committee, which has already said it will impute tax overhaul legislation on november 1. we will be speaking with a congressman of kentucky, the top democrat on the house budget committee, in moments. this is bloomberg. ♪ mark: live from london and new york, i'm mark barton. vonnie: i'm vonnie quinn, and this is "bloomberg markets." let's get back to politics. u.s. politics and the house today in early a budget resolution that paves the way for potential tax overhaul by the end of the year it was a 216-212 vote that will allow congress to enact tax cuts that increase the federal deficit by up to $1.5 trillion over the next decade. president trump sent out a tweet saying "big news, budget just passed!" by the house floor, condiment john yarmuth said they don't want you

don't miss it, vonnie. vonnie: we have first word news. >> president trump's former campaign manager paul manafort and ex-associate have become the first people charged in the investigation of russian meddling in the election. they face charges including conspiracy against the u.s. and money laundrying. the charges indicate that special council robert mueller's probe is intensifying and could pose a danger to the white house. meanwhile, a former foreign policy advisor to the trump campaign secretly pleaded guilty to charges in the mueller probe. george popadopolus admitted making false statements to the f.b.i. and suggested donald trump meet with leaders during the campaign. and the government is cracking down on leaders of the catalonia independent movement. regional officials will be prosecuted on charges of rebellion. the attorney general has stopped short of ordering their immediate arrest. global news 24 hours a day powered by more than 2,700 journalists and analysts in more than 120 countries. this is

vonnie: thank you for that.bloomberg has been reporting of the automation wave hitting wall street. firms are working to develop software that can suggest trades. advances in technology means summer pretty major job losses as people replaced by automated services. joining us is rishi ganti. thank you for joining us. what is the trend you see most disrupting things? rishi: the trend we see is mass up comprehensive -- copper attentiveness of the attack on automation on jobs rate large. -- writ large. really it is up and down the pay scale, up and down industries. that is becoming conference if. shery: there was a report saying machines are ready to do one third of the jobs being done by banks rank-and-file. where do these people go? speculative,s very but when you haer is a lot of -- hear are a lot of buzzwords like they have to of scale or involve. it will be difficult for that the continue to happen. while job instruction medicare dude automation it does not engender job creation. there is job creation. it is no

vonnie: thank you.ate over the future of health care in the united states, which has taken a step out of the limelight over the last couple of weeks. how it could affect the nation's hospitals is one question. joining us is lloyd dean, ceo of dignity health. it is the largest hospital provider in california. he is also the keynote speaker at the barclays health care summit. let's start not repeals, not replace. what's next for the affordable care act? lloyd: i think what's next is ,here will be continued debate because we have a bipartisan if it will debate that while has slowed right now certainly, it will pick up again. wea health care provider, continue to focus on those things that we think regard late -- regardless of the outcome of the debate, we are called to do. knowincludes costs, we that the current cost of health care in this nation has to decrease. we are focused on new care models. how can we do what we do more efficiently, more effective. how do we make sure that patients are at the center

vonnie: i am vonnie quinn.e now for stock of the hour and trading at a wide range and some big news today -- shares of tesla. this after the company's model three production numbers in this forecast. let's find out more about this from abigail doolittle. it was beat for the other cars, just not the model three. abigail: it's pretty amazing actually. the stock is all over the map and it seems to be par for the course for tesla. you have a miss and then as the trading day goes on, investors see the shares go up. not a surprise in terms of this miss. they did make 260 model three's that were an affordable card to bring the electric vehicle to the mass-market. the forecast had been for 1500. you can so come investors seem to be giving them a little bit of a pass. let's go into the bloomberg and look at the chart g #btv three total fo 3241. over the last several quarters, really tapering off around 25,000. the model s and model x are above the numbers. the model three is below, but since is the first quarter, invest

vonnie: take that.get big size and small size, medium size is beautiful. 250,alking about the ftse the gauge of medium-size companies that was created in october, 1992. 25 years ago, if the white line. since then, it's risen by 740%. line, four times the blue the ftse 100 index, small-cap indexes the aligned, which has performed about half as good as the ftse 250. this is a more domestic oriented gauge. even since brexit, it's up by 17%. this year, it's up 12%. twice as much as the ftse 100. in this case, it has to say , itum-size over one metric lags the ftse 100. that's market cap. the ftse 250 is 415 billion is 2.0 9he ftse 100 trillion pounds. who says tall is best? vonnie: bravo, mark. that was a stunning charge, but get engaged by my tone deaf mark: i know you. vonnie: is not what if friday tied. it's friday the 13th and i may be asking for trouble, i'm going to award today's to danny. -- dani. you've been canceled how many times? dani: i got the sympathy vote. vonnie: you don't want to miss this

vonnie: i am vonnie quinn.l street firms getting an sec fromee from debt reprieve mark barton -- mifid 2. a bunch of charges. barclays is $450,000 for this gold package research. let's get to the person who knows about it, jesse is our reporter in washington, d.c. and follows regulators. where is pricing? it seems like we are all over the map with pricing. >> it is all over the map. this is the first time wall street has had to do this. they are seeing what the market will bear. it will be interesting, we will find out whose research clients are willing to pay for. under the status quo, this is rolled into a bunch of services banks have provided investors. now, they will listing was themselves and proving whether one firm has better research than others. shery: are these banks going to get the data out of jail free card from the sec? ita big dilemma with mifid, is a european role and has caused ripple effects in the u.s. because there is a major conflict between mifid and u.s. rules. there is a situation where,

vonnie: thank you for that.ing headlines from president trump's cabinet meeting ongoing at this hour. he spoke to reporters saying the cabinet meeting is focusing on "critical domestic policy." he asked cabinet members to fight for spending cuts. he also mentioned drug prices were "out-of-control" and the administration would look at welfare reform. we should have pictures and a few moments of the cabinet meeting. about visatalking overstays being out of control and the border wall being needed, so campaign promises coming up again today. jared kushner's family has dominated the new york real estate seen for decades, and now the status could be at risk of a mid revelations of plans for 666 5th avenue. develop it into luxury residence and retail, but there is an attempt to block the deal. tell us the backstory here and what is going on. >> they have alone due february 2019 as a product of buying the building at the height of the market. been planning to knock the building down and build one twice as tall. we neve

vonnie: i am vonnie quinn. this is the european close.ck of the hour is citron research's rate is target. the short-term research firm is criticizing shopify. shopify shares tumbling today. julie hyman is here to explain. what the shopify do? julie: this is not a household name, but it is a big name for bigger retailers and sort of mom-and-pop online retailers. it is an online business that allows merchants to place their products on multiple different channels. it is a platform provider, essentially. the company gets its revenue from a couple of different a subscription solution where people pay a fee to be able to you shopify, and then merchant solutions, which is a percentage of their revenue that is made over these platforms that then goes to shopify. the growth in this has been pretty rapid. if you take a look at the bloomberg, this shows the year-over-year quarterly growth in each of these revenue streams . the total growth is in blue, subscription solutions in orange and merchant solutions in white. that is kind of the backdrop for

vonnie: if barbie's fault.a: they are trying to .ehabilitate barbie not just a particular type of barbie. they are trying to do a fair amount to stem the decline. they came out with rudy big measures today. they said they will increase their company's cost-cutting plan threefold, so they are reducing expenses by about $650 million. previously it was about $200 million. they will be spending the dividend. that will free up $50 million. they are talking to their banking partners about alternative forms of financing. they have bonds maturing in march of next year. as the turnaround plan we were discussing. there is a new ceo. she took over in february. she always said 2017 would be a difficult year. we would start to see the effects of the turnaround plan next year. how bad the results were seen to have surprised them. kids are playing video games but they are also buying toys. that is a problem, connecting the digital kids. julie: we have a headline crossing on exala. akzonobel is approaching them on a merger. we

this is bloomberg. ♪ vonnie: live from new york and london, i am vonnie quinn.k: i'm mark barton. focus to oilres in slightly lower before the release of inventory data in the u.s. allies reassuring traders they will complete that strategy to have a surplus. bob, what to discuss, are you looking out for him today's inventory data? >> good morning and thank you for having me. i see a draw and a drop in crude oil and gas specifically. we have seen a convergence between api and eia lately. eia had the huge gasoline draw and it had a lot to do with a drop in refinery runs that we saw in the data last week. is the piece of data most important to me given the recovery of 2-3 hurricanes. the seasonality of crude oil, october the -- october is playing directly into the seasonality come -- seasonality, october, and then fall know last week or so, continued that into about mid december. that is how the seasonality over the last 20 years or so has played out because of the end of the summer driving season. this year is different. we went in with 95%, up high and last week,

vonnie: fascinating. about amazon, all this talk about where amazon is going to have a new huge building, if not hq. emily: that is a big talk -- that is the big talk in seattle. it is exciting that amazon is expanding and bringing tens of thousands of jobs, but it is a huge loss for seattle and the fact that amazon could not do this in seattle is a big deal. seattle, theage in ceo of amazon consumer worldwide professed the vicinity of a town like pittsburgh any hopes hq to go somewhere with -- hq two go somewhere with strong stem education. i try to get something from the ceo of amazon web services. here is what he had to say. >> that is above my pay grade. none of us really know at this point, where it is going to be. we are in the middle of a process. above hisy one person pay grade and that is of course jeff bezos. it sounds like it is all up to jeff bezos. toni forto ask andy or any hints, and they say they don't know, this is pretty much anyone's guess. vonnie: emily chang, thank you for joining. fa

vonnie: and i am -- i am mark barton. vonnie: and i am vonnie quinn.is the european close on bloomberg markets. ♪ mark: here are the top stories we are covering. in europeing earnings weighing on stocks on the 30th anniversary of black monday. talks between spain and catalonia take a turn after the prime minister suspends catalonia's autonomy. the tug-of-war between spain and catalonia having a ripple effect in europe. fiona frick joins us from the robin hood conference in new york. we are under 30 minutes away from the end of the third base

vonnie: i'm vonnie quinn. this is the european close on "bloomberg markets."e biggest move into years after third-quarter earnings beat estimates. cory johnson is in san francisco and he has with him intel cfo. cory: bob swan joins us to help us dissect this very interesting earning report. glad to have you join us from nearby santa clara. lovely santa clara. bob.nk we have after this earnings report, it was an interesting quarter. i want to have you explain what happened. it was confusing in my model where i saw your marketing cross go from 12% plus the year ago down to 10%. what was the change? it looks like the marker disappeared. mr. swan: first, thanks for having me and good morning. , that's a keys component of our overall cost structure and we continue to invest in driving demand for oems. the couple of things are in the of the quarter and a continuation of what's been going on for the course of the year is increasing our intensity and focus as the end markets continue to evolve. that's been one of the key drivers. secondly, growth. the company is growi

vonnie: i'm vonnie quinn. this is the european close.oking at costco, it beat estimates, but the share price is falling. the share prices falling and one analyst issued a downgrade. emma chandra is here with more. it's a very good fourth quarter. they saw an eds needs, revenue beat, sales beat, but investors are saying all this is underwhelming and the stock is down. you mentioned the analyst downgrade. they've been zeroing in on membership renewal. which is something that's very important for costco, because the huge amount of their revenue comes from that. we have a chart which will show you how membership rules have been falling. , butare still very high they've been going down slowly and with these analysts are saying is is a slow and steady decline. if you take a look at my terminal, have the function for costco and you can see how big a part of revenue or how much revenue was brought in by membership fees for costco. it's very important to them. i must say that cosco has tried to shrug this off saying the drop in renewal rates is l

vonnie: from new york, i am vonnie quinn.r following developments out of las vegas. at least 50 people are dead, more than 400 injured, after a gunman opened fire from a hotel room on the 32nd floor of the mandalay bay resort and casino. authorities identified the gunman as 64-year-old stephen paddock and they say they killed himself when swat officers stormed his hotel room. donald trump is expected to give remarks this hour. mark: let's get to futures in focus. gold dropping to a six-week low. now is bill baruch. crude in a drop for month. what is behind the fall? bill: we are starting to see liquidation. we had a technical fail against the $52 mark. we are starting to see profit dipping as we get to a lower demand season. but ultimately, it is the products. gasoline containing to see you gasoline seeing a new record. if we get below $50 in crude oil, we can see psychological selling kick in as well. mark: do you think we will get to $52 level again or is a downside from here? bill: i am looking at downside from here, with

vonnie: i am vonnie quinn. this is "the european close."s and brands particularly keep up with evolving industry trends when they's businesses like amazon is -- down lower costs and more than 5%. one person who seems to have it figured out is fashion designer and founder tommy hilfiger. he spoke yesterday at the wwwv apparel and retail summit. with us some of the pearls of wisdom that you and chris shared on stage. kris is the genius behind social media and marketing and her daughter kylie started her cosmetics line not two years ago , and the valuation is well over a billion dollars are ready. it is direct to consumer through social media marketing. it sounds quite simple, but when you have hundreds of millions of followers as the kardashian's and jenners do, it is not difficult to tap into your fan base. vonnie: yesterday we saw lord and taylor's flagship store being sold. ringlso saw this morning ke up 40%. is this a pocketbook question? andt that people earn less can afford to buy into something direct to consumer? troll thelennials int

vonnie: i am vonnie quinn.sident trump set to announce his pick for the next chairman of the federal reserve before leaving on his trip to asia early november, according to a white house official. asmp will announce his pick the next federal reserve chair before leaving in early november for an asia trip, according to a person in the administration with knowledge of the plan. in the wake of the explosive allegations brought to harvey weinstein, systematic problems in the workplace have become the center of discussion among business and tech leaders gathering at the wall street he read emilyence chang is standing by with a special guest. -- conference. emily chang is standing by with a special guest. emily: i am here with arianna huffington. arianna: thank you. emily: you have talked about the importance of building workplace culture, and you are working with companies from jpmorgan to airbnb uber to compel cultural changes from the top down. what has been the most surprising thing so far of being in the trenche

vonnie: i am vonnie quinn.ublicans adopted a budget resolution, unlocking a process that will help the gop achieve their goal of cutting taxes by the end of the year. here with the latest is chief washington correspondent kevin cirilli on capitol hill. it may be was not a surprising development but it opens the door for kevin brady to come out with a tax plan. kevin: just within the last couple of minutes we are learning republicans in the house will unveil their official tax proposal on november 1. and then five days later they will take it up for a markup through the committee process, so they again, with the passage of this legit, are on pace -- this budget, are on pace for tax .elief i the end of the year a handful of republicans voted against it over concerns regarding exemptions to the state and local tax deduction. most of those republicans coming from states like california and new york. despite those voting against this legend proposal, the budget was still able to pass -- budget proposal, the budget w

vonnie, that is what you will talk about. vonnie: you read our minds. julie, thank you.he rate for the fed chair in the next year. the president's team said to be leaning toward john taylor and jay powell. president trump has announced to before the decision asia trip on november 3. it could come anytime. joining us is kevin cirilli from capitol hill. here in new york. kevin, let me start with you. is there any candidate which would find it difficult to get past the senate confirmation? kevin: no. i've been speaking with aids to banking committee members all week and i can tell you that while janet yellen, the current federal reserve chair is not their first choice, even she would likely get out and be approved by the senate banking committee and then be passed through and confirmed by the senate. all of the five choices have really been folks that anyone would be ok with in the senate. i want to dive into my terminal. taking a look at who investors are looking and banking on will be the federal reserve chair. jerome powell, his chances have spiked in the past days follo

this is bloomberg. ♪ vonnie: live from bloomberg headquarters in new york, i'm vonnie quinn.ark: you can close is in roughly 12 in its. sergio said manager could see a reduction in staff over the next decade. he told bloomberg we see a lot of contraction in the number of people in our industry. the jobs are going to be much more interesting jobs where human content is crucial to the delivery of the service. this was in the newest magazine. joining us is the co-author of the article. the man who may be wanted to become a professional football player. what was he like? obviously very content and satisfied with what he is done at ubs. it's taken them quite a long way he is at a premium for most european peers. the bank is geared toward wealth management at the moment. they carry larger premiums. it was a big shift in the model that he undertook. a lot of banks are still grappling with finding that. overall, he feels he has taken his firm along way. the has a little bit of frustration with the regulators, he sees them as coming to the point where they need to be learning the less

vonnie: this happened about 10:00 eastern last night.arlier in the day we had -- this is the only thing. the executive order is still getting processed by various agencies and still have to get written up? zach: that's right. , it willtive order take time. probably a few months before we see some rules from agencies for different kinds of new insurance plans. outrers will have to find if they want to sell this our offer new kind of plans. shery: could face legal challenges? zach: we have seen new york and california attorney general already said he will challenge this. we do expect that he comes in. vonnie: we are seeing curtis is him from the health care industry. -- we are seeing criticism from the health care industry. who have a nonpartisan analysis of this? is there an equivalent? zach: analysts have said the paymentst made these -- would make these payments and other trump administration after continuing to make these monthly payments for nine months is choosing to cut them off. that does raise questions. we will see a legal challe

vonnie: in the new york times vonnie. tax reform is a hot topic at the imf world bank meetings.e spoke with director of fiscal affairs. have a listen. ofwhat is going on in terms u.s. tax reform is extremely important. i think it's important to underline that the positions of the imf on the u.s. tax reform year afterade public year on our article force less time this july and we have advocated strongly for u.s. tax codem because the u.s. tax is badly in need of a simplification, in particular when it comes to the corporate income tax. the corporate income tax rate is too high. there are too many exemptions, too many loopholes, complexity is tremendous and complexity is particularly relevant on the international dimension which is a core issue. lastin the uproar of the 24 hours, here is dan fleming in the financial -- financial times. this is a quote from dr. gaspar, the idea here of a response to mick mulvaney of the trump administration. the idea that one would produce additional revenue by lowering tax rates is something that being a conceptual possibility is rarely documented