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tv   Bloomberg Markets  Bloomberg  September 3, 2015 10:00am-11:01am EDT

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>> good morning, everyone. i am olivia sterns. we have got mario draghi moving markets. .ust wrapped up a press, rents the european central bank indicating he will support the economy more if it is warranted. in the meantime, we have breaking economic news coming out of the u.s.. i want to get to matt miller. matt: it looks like janet yellen has another reason to put off in august. nonmanufacturing index falling to a reading of 59 from 60.3 in the previous month. this was better than investors had anticipated, or economists we had surveyed. we got a 59 and anything above 50, obviously indicates an expansion.
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but it is lower than we got the previous month in july. the isn, not manufacturing composite index walling to a ofding of 59 from a reading 16.3 in the month of july. olivia? >> thank you, matt miller let's get to a check of where u.s. stocks are trading. stocks are moving modestly higher. chinese markets are closed see can see the dow is up nearly 100 points off session highs. overall, the vic's down, less volatility, and steady trading. in the markets is in the euro. you see it right before 9:00 a.m. eastern time. we heard from the central banks in andhe would step would support the european economy more if needed for whatever steps were under his mandate to fight off the inflation in the eurozone and try to keep the economy growing. i want to show you what is
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happening to oil. you are seeing movement as well in the commodities. a wild ride that it has been for west texas, all the way back to 4719 per barrel in trading. i want to take a look at top stories crossing the u.s. terminal at this hour. the ecb cut its forecast for growth and inflation for the next two ears. conference, mario draghi said the euro zone economy will grow just 1.4% this year. he also revamped quantitative easing measures, which he says have kept the economy growing. draghi: overall, the measures we have put in place since june of 2014 provide clear support for improvements both in borrowing conditions for firms and households and in credit flows across the euro area. olivia: there has been more speculation --
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the biggestcing military cuts in almost two decades. the world got a look at china passes military might during the parade today. said he cut 300,000 soldiers from the 2.3 million strong army. stephen engle file this report. >> i'm reporting outside in the heart of beijing where the parade is literally rolling by here. have the artillery of the people's liberation army as they celebrate the 70th anniversary of the ending of world war ii. to showhis opportunity his grip on the military but also to show unity to the chinese people. this --ion to beijing, he is also sending a message to the world and to the region that
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china is a unified power and that it will be a force to be reckoned with. troops are only the beginning for a china is expected to overhaul the military and put it under a unified command. and congress is expected to begin debating the iran nuclear agreement next week that lawmakers will not be able to kill the deal. president obama has the 34 boat -- votes he needs in the senate, enough to sustain a veto if the congress votes to reject the deal. first-time claims front employment benefits rose more than expected last week. labor department says the start of the new school year may lead in the jobs data, but claims are still below 300,000, indicating employers are holding onto workers. the jobs report comes out at 8:30 a.m. in the morning. a decline of more than 7% last month, more than economists forecast. exports were little changed.
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they are expected to phone the coming months because of the stronger u.s. dollar. the kyle wants to consolidate his hold, saying this morning the russian billionaire is nearing a deal to buy portions of the park the noter in what he does currently own. the enterprises owns 55% of the arena and 25% and those are your top stories at this hour. much more, including the tables, are set for uber theres to decide whether treated as employees. the impact this has on the economy's growth. plus, the fda ruled mayonnaise is not mayonnaise without eggs. the loser in that battle will join us later in the hour. us, just how successful has trumped been in business and how well has he managed his empire?
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that is the cover of bloomberg businessweek this week and a conversation we will have with max later this hour p or of those stories and more are coming up. fort, stocks are rebounding the worst in over a decade, shifting the focus from china to what is going on here at home. the upcoming fed meeting were janet yellen could announce the first interest rate hike since 2006. joining me now to discuss is the senior portfolio manager at u.s. bank. thank you for coming in this morning. while couple of weeks on the market. what will it take to stabilize the markets besides the chinese equity markets literally being closed? >> it is certainly a good start. what will be the catalyst for bringing call him back to the markets? it will be around getting clarity, round u.s. monetary policy. will they or won't they? that is a big debate. investors will be anxious to get
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away for holiday weekend. is there a number that could take september off the table? >> certainly we would expect already the likelihood of the september move has been diminished but not removed. if we saw deterioration as far on theoverall number nonfarm payrolls, or deterioration in the average hourly earnings. they will really be a focus for them. the potential for which going forward. olivia: looking at fed funds that has actually come down in recent days. rates,fed does not raise we have seen a lot of theamental data suggesting
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u.s. economy is doing well. inyou're right, particularly the last couple of weeks. productivity gains. gdp being revised up. developed of a economy phenomena. the issue that they would be surrounding themselves, again the absence of the presence of inflation, like mario draghi and , againss conference using a specific term about transitory nature, but acknowledging the has been downside surprise to inflation expectations. olivia: he is literally fighting deflation. say these days? you must get a lot of phone calls from panicked investors who want to run for the hills.
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how do you get them to stay in the market? has been a general calm and resolve as far as clients are concerned. a lot of that goes to the notion that they were comfortable to the definition of investment objectives and their asset allocation as well. they were not particularly assetd 21 particular classes. that has tended to make them and appreciative of the opportunity, having recently increased cash balances in the portfolio. they're looking at this as an opportunity to migrate into higher quality issues. olivia: you are tell me your clients are not biting their nails? >> there uncomfortable but not panicked. .livia: thank you so much senior portfolio manager for the private climate reserve. up on the bloomberg market day, much more including a tough road ahead for over here at facing a class-action lawsuit
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say they'reers who more than just independent contractors. they are employees. we will hear from the attorney representing those drivers next. do not go away. ♪
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olivia: good morning and welcome back. straight to a check of markets. the second day of the tao taking aim at another triple digit gain. matt miller joins us with more in the newsroom. matt: it looks like we are clawing back. we were down a most 400 points on monday but yesterday, up to 93. we are adding almost 100 points if we close at this area. the s&p 500 also liking what mario draghi had to say.
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investors obviously love qe, up ofough -- up three corners 1% there as well. i want to talk about individual names here and one of them will buy kramers, which is the generics unit at ucb, the belgian pharmaceutical company, supposed to add 10%, they say, as far as profits are concerned this year. another 20% next year and beyond. that is a big gain, 15% for $1.3 billion purchase. i also want to talk about lululemon, not just because eyes -- i applaud the fashion sense they have brought to limit around the world, but because a note came out. it said they think lululemon will see higher same-store sales throughout the rest of the year and that it will do a lot better than the street expects. as a result, what a great store. i love the weight is organized.
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i love the tights, i love the way they fit. i actually own a pair of lululemon shorts. olivia: fascinating. i'm thrilled that we have not seen those in the office. matt: i will wear them for you tomorrow. will be casually for -- casual friday. my spiritual gangster shirt as well. thank you so much for the fascinating stock update. now i look at stories. in a more serious note, a marine and nine others were hurt, one killed. officials say the helicopter .ade a hard landing the cause of the accident is currently under investigation. the county cap -- county clerk in kentucky who refused to issue marriage license to same-sex couples will be in federal court today. kim davis could face contempt of court.
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she says her christian faith will not allow her to issue the license is. we actually have breaking news again. i want to get back to matt miller, not talking about lululemon. matt: all joking aside, tom brady has a penalty be in nfl commissioner roger goodell in the deflategate court case. obviously, we know what is happening here. goodell wanted to suspend tom brady for four games for allegedly cheating in the super bowl by orderly his -- ordering his underlings to deflate the football so he could have a better chance of throwing it were better accuracy or distance. has beaten in the suit, appealing the ruling. this headline literally came out about 100 seconds ago, 90 seconds ago, and instantly became one of the most read stories on the terminal worldwide. it is something people in the
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market care about, that bloomberg customers want to know about. brady has overturned roger goodell passes decision in the deflategate case. i think everybody cares about it. some cameramen working to really excited that tom brady play in the season opener. no more four-game suspension. tom brady is winning his appeal. egg may have just hit a bump in the road to federal judge granted class-action status to a lawsuit claiming the company treats its drivers as employees and not independent contractors. the ruling could grant uber drivers the right to unionize. to uber, that threatens break its breakneck pace of growth and potentially threaten its $50 billion valuation. before we begin, i want to point out uber has come out and said they disagree with the judge. there really is
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no typical driver, the key question they say. shannon, thank you so much for joining us this morning. is theing exactly what stake in that click -- in that case. the independent contractors avoid all kinds of labor costs. the workers do not get unemployment and the company does not have to worry about it. we are challenging that because over is acting like an employer. uber says the case would affect 15,000 drivers in the
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california region. how much will this affect? classical take a little time to sort out who is included. toone not included may have contact us. list and weng the will pursue the claims for everyone who wants to be included. we just do not yet know exactly how many. olivia: when do you expect there to be a trial? >> there will still be work to sort out the ruling on who wants to join the case if they are not .ncluded what do you think are
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the implications for other companies here in the so-called sharing economy? will we see other economies who treat the people who work for them as independent contractors rather than employees with benefits? >> unfortunately, we are seeing a lot of that. we have heard a lot against these companies trying to follow bloomberg's model year it they have washed over get away with it and they think it is ok but it is not. we are guess at budget these sharing economy start of really trying to avoid labor costs and byor olive -- obligations calling the workforce independent contractors. a lot of attention has been paid and it could be important for how these other companies perceive it. what do you say to some people who say actually the labor laws are the problem and that is what is out dated and the labor market, we cannot just put people in the categories of
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full-time employees of benefits , thatependent contractors it has created a third type of worker? >> i disagree with that. we have seen the same arguments made for decades. i have heard so many companies say our workers or something different. not that many employees that actually like not getting paid, not getting the protections they are entitled to. $60,000 -- $60 billion company. it can afford it. if it is allowed to get away with not paying the costs, it is undercutting competitors edit hers a lot of people. olivia: thank you so much. we will leave it there. joining us on skype from boston. check on theother markets. don't go away. ♪
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whena: not many remember
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investors did not have to fight algorithms. erik schatzker found someone who does an boy she something special. this is irene. she is the oldest woman on wall street. >> i started in 1942, during the war. .here has been a member turned she has been warning at the same since 1973 and still manages money for clients. everything, including her office, right next door. she would not have it any other way. >> grown old with me. and when they come, i tell them
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-- left behind. but in a bear market, better off. if you are not a bowl, how would you describe yourself? -- bull, how would you describe yourself? age and experience. she is seen just about every fat in finance come and go. >> all the nonsense people bring up these days. anothere grew up in era, decades before anyone ever heard or square. >> private banker. i started at a young age. i never went through any college. erik: hers was a carefree life of luxury.
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it came to a terrible and with the rise of hitler and the not these. >> the march of 1941. 700 people. erik: 15 years later, she caught a week, landing a job as an investment driver. classic 1957. she sits on the investment committee to she stopped going to the office to just months ago after an illness. now she works at an apartment. rareagues say she exudes a patience and discipline. sudden, incisively, she will speak and cut right to
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the heart of the issue. her clients recognize she is not always easy, that she will tell it like it is whether the client wants to hear it or not. they laugh sometimes at that but ultimately respect it. erik: she never thought she lived to be 100 let alone work at this age, yet she still has one regret. >> why did you want to be a traitor? >> fun. erik: erik schatzker, bloomberg. olivia: an incredible woman there. don't go away. ♪ the only way to get better is to challenge yourself,
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and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,
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we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. olivia: welcome back to now some top stories facing across the terminal. thebrady has defeated in
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deflategate case. excited tom brady knesset up for the next season. failedan one month of settlement talks between the nfl and its players union. west down trains are stopped as the nation's migrant prices are stupid. trainssuspended direct to the west for security reasons. refugees poured into the budapest train station today. more than 3000 migrants caps on of the station. many of them in syria. guatemala, their president is offering to resign. he faces arrest over the alleged involvement in the bribery scandal. their meeting in emergency sessions today to discuss the matter. market turmoil. growingindustries are
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in aarly the fastest pace decade. that is according to the factory index. that makes up over 90% of the economy, everything from retail to restaurants. consumers grew less confident in the economy last week and they give some of the lamb to the global market. about half of the series was conducted during the selloff. already using the force in the far-off galaxy's they opened a new tar wars toys. episode seven, the force awakens, hits theaters just before christmas. stories athe top this hour. coming up in the next hour, the ecb moving markets this morning after announcing it will give a -- andative easing
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mayonnaise or not mayonnaise. that is the question. it is just not mayonnaise and therefore must change his name -- it's name. we will talk to the ceo about its fight with regulators. and the automaker in europe has made acquisitions this year but should it be making more and should be making bigger ones? we will ask the cfo. verizon has agreed to by the mobile ad company for about $250. in the latest acquisition and well has made to expand its presence in the mobile advertising market, tim armstrong joins us now on the news and on the phone. thank you for taking the time is speak with us this morning. children million dollars this year for a company with an adjusted net loss of $80 million last year on 300 million dollars in sales. those are the numbers. what is the value of millennials media to aol? how does it help you grow your
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business? >> we're at a change here at online is changing to mobile. the businesses we are in and are part of, we were able to turn around and well through the transaction to a global partnership with microsoft. neilst announced with more all targeted at essentially what will be a major fundamental shift in what advertising is consumed and monetize video and mobile. marketplace where video and mobile will be about $40 billion each of new spending over the next three to five years. millennial is one of the best platforms at mobile space which will do programmatic advertising, driven by software. , the verizon
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subscriber base, we do multi-billion dollars of advertising revenue. for majority of that is software where advertising millennial as a big leg to our stool, a big focus around mobile advertising. a very talented team of people and a very robust top of our scale. scale onputting our their technology overall. a standalone millennial was a company that build up a lot of talent and a lot of technology. game changeble to the ability to be an impact player across the entire globe with mobile. you used language that this as another leg to your stool. do you feel you now have the scale you need with google and facebook or will you see verizon do another acquisition in this targeted digital advertising
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space? >> you know the history of aol. basically, we are a company that went from declining to growing. almostreaching only -- half a billion people across our markets. if you look at google and facebook, both companies have done a good job of holding up their platforms. i would say we are the third platform company now. if you look at what we have been able to a calm push in video and global content brands like the huffington post and the advertising platforms business andifically around video programmatic advertising, we at millennial to it, as a comfort -- as a customer across the world interested in marketing, and marketing to digital i think aol has to be on that list with google, and i think we are the third player in this game now
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and we will aggressively pursue that in the years to come. marketplacee group that will be global. seeia: we are excited to what you have got with go 90. it is a pared down video service aimed at a younger audience to what else can you tell us about that video product? >> that has been a verizon product. i think they are set to release more information around it coming this fall. i was a part of the strategy for us doing the deal, verizon has been a smart company that has transitioned to a wireless theness and, more portly, wireless business has gone directly into the mobile scale, london to think about things like a service for mobile. if you look at viewership in the future, you will have roughly 80% of viewership in the next five years for video was digital
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transitioning to mobile. i think they are bringing that kind of strategic thought process to where mobile is going. we bringing essentially the platform to monetize and the of verizon'shere plans plus the ot service, plus monetization and ability and content is really a powerful combination. i think you will see a lot from rison this fall. relaunching the verizon brand, which looks great, you will see me being a part of rison, you will see exciting things and that is a big part of that, and real showmanship on verizon's advantage ofy take the future of mobile overall. you will see the service plus a number of other things we will do together that will be very powerful. olivia: we are looking forward to it.
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when we first started hearing whispers about the product coming out of verizon, we thought maybe it would be a full scripture and based tv platform. it now looks like a more pared down version. we thought we would get it out this summer. what has been the hold up? >> i think basically, conditions in terms of what they have been focused on is first and foremost making sure that everything they are doing from a strategic roadmap is coming together. aol's part of that announcement. just got done this summer. we're just going through immigration with them, which is going well. they have been methodically building out what looks to me to be something that will be a powerful future of media technology type company and play for verizon. i think the service is part of that. i would not mistake timing with
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the strategy they have had in terms of moving a product forward and thinking about the future. i will let the larger verizon entity, really come i think they will showcase a very powerful products in the future and i think timing wise, they are doing exactly the right thing in terms of making sure all the ducks are strategically in a row. halo has been very happy to be a part of the process. olivia: we wish you luck. thank you so much. draghi makingario waves in the market after cutting the euro area passes economic growth outlook and revamping qe. reaction is next. ♪
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olivia: welcome back. it is time to get you caught up with all the market action in the world. asia, many are glad to see chinese markets are closed as they commemorate the second world war. the rise of about .5%. in mumbai, the sensex rose. now, let's get a check on where u.s. markets are trading now. i want to get back to matt. mario draghi cutting his outlook for growth and saying emergencyy needs more measures. we are adding 132 points right the dow jones industrial average pit we nearly got back all what we lost monday.
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yesterday, we gained 300 and 150 now. almost there. the s&p up and the nasdaq is lagging of the three. let's look at commodities. we would see disappointing numbers here? let's see oil. can we see the oil screen here? it is not the case. we see oil gaining again. at some point, can assure you copper? do we have the copper screen? we're trying to bring it up. areny case, oil and copper both gaining because of the promise of extended q he and because of the gains we see in equity markets. copper at a three week high. you also see economies that produce this stuff. alcoa is up today.
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they have been getting slaughtered of late, but they are showing gains here in the u.s. markets here and i will toss it over to mark barton, who has always been helpful. how has it been going in europe? that is live television. it is all going well here. mario draghi telling investors today that the ecb can now buy a higher portion of each country's debt. stocks rose, the euro fell, government bonds are rising. breather.taking a no trading in china today and tomorrow. , cutting intentional the inflation forecast, cutting the gdp forecast as well, citing the emerging market, rousing a threat. european stocks rising for the second consecutive day. the euro fared in a was telling us how the east tv
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has taken on the new flexibility when it comes to buying each member's debt. that.t the euro falling against the .ollar, now down an astonishing fall today. i have been telling you about sterling's performance. it is down by .4%. it is the worst losing run six -- since october last year. u.k. service a report showing the slow space in more than two years. it underscores that this economy right here is slowing in the third quarter. how did the bond market take mario draghi's birthday? gifts as heiver of adjusted bond purchases. yield falling ins hasten italy and france and in germany as
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well. it is all about the ecb raising the limits on its bond buying program. there is no need to save you. when you always is to say, it is all happening, olivia. though trading below the u.s. 10 year. thank you, mark barton joining us from london. european central bank left all unchanged as expected. he cut the euro area's growth outlook and also said the ecb will use all tools at its disposal as needed. >> we wanted to emphasize in the discussion we have today, a willingness to act, a readiness to act, and capacity to act. ready, willing, and able. you heard it from his mouth.
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joining us is the chief economist from frankfurt. i know we are having a little trouble with the line, but give me reaction to what you heard from mario draghi this morning. dovishink it was a very present on his birthday to markets. to more qe,e door it doeshe same time, not even discuss how and when it walked through the door. we have to wait only if the economy starts to falter. is qe in europe working? it is, workingnt to the extent that we do see a gradual economic recovery taking place. thes obviously not taken to -- mainly driven by energy prices, and not in by -- nothing qe can do about it.
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how worried should we be about diversions in the eurozone, the french economy deteriorating? is.t they are converging more toward germany. really, this german access is not working any longer. to leader france starts germany, number two of the euro zone of the economy. plus, number three, italy, we will never see strong growth numbers coming out of the entire euro zone. how much attention is mario draghi paying to what is happening in china? >> a lot. it is about china and emerging markets. these are important export destinations for the entire euro
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zone. paying a lot of attention to it. forecasts were already finalized in mid august. the latest stretch of worries and then corrections in china. he is still very cautious and he needs more numbers. right now, if you look at indicators, they remain strong. the eurozone economy has not yet shown any sign of weakness as a result to the emerging market buries. olivia: that is interesting. i have to ask you as an economist is in europe, we are to crossfugees trying the mediterranean, these terrible scenes this week at the train station in budapest. afford to take in all of these migrants? what is your analysis of what the actual economic impact is of immigration? request a very tough decision. i think europe can afford to
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take them on and i think europe also does need immigration, especially a country like germany in the coming years. they do need immigration. it right now, the issue is is not really organized and structured. they will have to make up their mind how they will deal with it. they need more structured, european wide policies to really cope with the issue. >> we will leave it there. thank you so much, the chief economist of ing joining us. still ahead, when is mayo not mayonnaise? i will tell you what the fda says when we come back. ♪
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olivia: it turns out the vegans friendly's bread of just mayo is up to be. is cracked the fda says it is not really mayo because it does not contain eggs. the food startup company that makes the spread has raised
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$100.9 in funding and is backed by bill gates. calls itself the world passes fastest-growing food company. it is not the first time the company has run into trouble over its just a male brand. joining us from san francisco, josh, also joining us from washington is bloomberg news reporter anna. scott, let's start with you. this is not the first time you are challenged on calling it mayonnaise and what if the argument you're making for keeping the name question mark >> -- name? off, in nearly 65% oil, and we call the product mayo and we do say it is a creep. i do think, important to point we started a company for a point, we started to have an impact, to use less water and less land, to take out some stowed him -- some sodium and
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cholesterol or i'm optimistic the good folks there see the deeper purpose of what we are doing, besides the fact that we are not actually using the term mayonnaise. if you ask a union labor, 30 years later from the moment they -- they withdrew it. they saw the impact we are having and are pretty straight on the legal marriage as well. onvia: let's bring you in the fda angle. who knew the fda regulated mayonnaise. why are they involved in this? that has been an interesting comment that has come up as this has unfolded. standardth the fda has identities for tons of food, dairy and cheese products. we are now finding out mayo as well. they want to make sure when you go to the grocery store and you buy a product, that you have some assurance that it is what it claims to be. that is where they have gone involved. that food ise sure
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meeting eight certain definition. -- a certain definition. olivia: big companies are worried if you are making mayonnaise without eggs, that is bad news for their business. you think it is the egg companies? >> the associated press reported that the american egg board was pretty involved in a larger campaign to try to discredit our work, paying bloggers who did not disclosed destin not disclose, even paying someone to call whole foods, our good friends there, to attempt to block distribution of our product. good on whole foods, it is a principles centered company, they did not have any response to it. they decided to keep us on the shelves and we continue to do well with them. the larger point, some folks have asked me, why not just put dressing underneath it? why do you care so much about mayo? company tostart this be a male company.
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we started it to say, if you could start over with food, what would that look like? a little bit better for the body and the environment, it would taste better and be less expensive care and whatever enables us to do that, especially if we can use natural ingredients, we will do that. i would not be surprised if this is the last time we have some of these issues. we did not start the company to play small. to have a deeper, and more important impact on our system. joiningthank you for us. also my thanks to anna edney, our bloomberg news reporter who covers the fda. interesting conversation. who knew? it is not just mayo until it has eggs. ♪
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11:00 a.m. in new york city, 8:00 a.m. in san francisco and 4:00 p.m. in london. >> exposed to europe's recovery and china's stumble.
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we will ask continentals's cfo if you think china is having a cold or the flu. olivia: twitter needs to find a third shares have a fallen 22% amid the leadership turn while. -- turmoil. >> what about the other side of donald trump? we will go inside the trump empire, next. olivia: good morning, everybody. brendan: we are 90 minutes into the trading day in new york. we will begin with a look at the markets right now. , 1.3 percent for the s&p 500, dow up 1.2%, nasdaq just up a percent.


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