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tv   Bloomberg Markets  Bloomberg  September 23, 2015 10:00am-11:01am EDT

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owners here in the u.s. it will depend on who you ask. we look at two very different calls. china's president has a busy itinerary in seattle today, including dinner with ill gates. it will have a report throughout the day. ♪ alix steel: good morning. you're looking at stocks but he was taking a bit of a breather after the s&p hit its lows level in a two-week -- this is kind of call compared what we saw yesterday. pretty amazing considering china's pmi saw seven straight month of contraction. with a continued to pay attention to volkswagen. discountding at a 51%
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to its european auto peers. it's gotten completely destroyed over the last few days. deutsche bank downgraded them. it seeing estimates cut by 35% over the next two years due to this ongoing scandal. it's having a permeating effect throughout the markets. look at the euro versus the dollar. that's a 200 day moving average. you see that euro below that longer-term trend line. a note today saying that is because of volkswagen. it is rather the company's specific event can permeate all different kinds of asset classes. let's look at what is making news this morning. china's president is working -- alleging to work with the u.s. to fight cybercrime.
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he spoke to business executives last night. he said china is a staunch defender of cyber security. >> the international community should work together to build a peaceful, secure, open, and cooperative cyberspace. aina is ready to set up high-level joint dialogue mechanism with united states on fighting cybercrime. alix: the obama administration may be skeptical. the u.s. planes china for massive cyber attacks on american companies and government agencies. china is cutting a pair of deals with boeing. the news agency said the jet maker will build a 737 completion center in china and they are buying 300 boeing jets. agreed toeaders have spread asylum seekers across the continent. countries will be required to take in a share of 120,000 refugees. that is a fraction of those who
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arrived in this year. four countries oppose the plan. ecb president mario draghi says the bank needs time to determine if more economic stimulus is needed. he told the europeans that of the central -- if the inflation outlook weakens, they would not hesitate to act. some policymakers are reluctant to increase stimulus. -- journalist in egypt imprisoned in egypt will be let go today. there are given three year prison terms for reporting what they called "false news." the fate of a third journalist behind bars is not known. a baseball legend is that that fans will remember him and smiled. 'st he barra'-- yogi berra hilarious mixed up sayings make people forget he was one of the all-time catchers.
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he was 90 years old. those are some of your top stories. coming up in the next hour, wall street has two very different views of china's main manufacturing metal, copper. a bond king has some thoughts of what the reserve should be doing. find it with bill gross says they should be doing about interest rates. he is not in the race, but we will tell you how far vice president biden has come in a new poll. the fallout from the volkswagen admissions scandal -- emissions scandal has reached the highest levels of the company. facing increasing pressure from the german government to act quickly in managing the crisis. hans nichols joins us now from berlin for the latest. what is happening right now at vw headquarters? -- i amat is where
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heading there in a little bit. it's basically do the command center for dr. vendor corn. he is making his case to the board tonight. .t's a five-member board they will make a recommendation for a friday meeting of the full 20-member board. the most recent development is that fitch said they may be downgraded. it may be cut by -- this is from fitch. cash flow is robust. they say vw suffers from damage due its reputation. we are getting the rating agencies involved in while. spreads of increased 175% to ensure vs debt. that is a remarkable move. alix: is there any sense there is anyway he can keep his job over the longer term without more oversight in some capacity? is he ishink his case
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an engineer and a technical guy and a technical guy in what they have is a technical problem that requires a technical solution. this is not necessarily a pr problem or a larger public policy problem. if that is your argument in the board agrees with him on that, he may be in a position to keep his job. six month ago in april we had a big vw power scandal. one of the grandsons of the founder of the company made a play to throw out dr. martin vendorcorn. he said he did not do enough to capture market share in the u.s. with this scandal taking place, lack of share in the u.s. and lack of something to compete for environmental from the consumers. when that happened the board was very quick to rally around dr.
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vandercorn but that hasn't happened this time. alix: thanky so much. 500,000 voltssome like vehicles in the u.s. have their own questions. what compensation could they received and what is happened to the value of their cars. to discuss the impact of the scandal in the u.s., i want to bring in that dealer renzo -- matct delorenzo. how does this scandal affect owners here in the u.s.? valuein terms of resale it's probably a hold. a lot will be determined on what happens with the epa in terms of a recall and if that recall affects the performance or the fuel economy of the vehicle. a fix, willre is customers fix it if it does hurt the fuel economy and his overall performance -- and its overall
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performance? matt: in some states like california we do have to get your car smog to get license plates, it will be easier to track as vehicles because they will have to be tested. in states where you don't, there is little incentive for me to bring my car in the possibility of it actually getting worse feel economy or not driving as well as it would before the fix. they could be a big problem. it's one of the things they will have to sort through. how will they sent -- handle this recall. alix: when you look at the potential for diesel markets, it's small in the u.s. versus europe. nail for male -- diesel cars or is there hope? matt: i think it will hasten the demise of the diesel because even in europe some urban centers are starting to ban or are looking at banning them because of the particulate matter that comes out of them.
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i think you are seeing the hybridizationing and electrification of the automobile and this will make that happen faster. alix: in terms of the regulatory issues, because it was fascinating that they hired the u.s. law firm that defended bp and the oil spill and 2010 and a tory issues.l matt: i think a lot of the certification is done by the manufacturers themselves. and the epa in other agencies basically spot check. they don't check everything. when a problem like this occurs and there is a reassessment of the regulatory structure. and i think that will happen in this case. especially with the missions because this is not the first time somebody has been caught cheating and they will be coming
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down heavily on vw and other manufacturers where they find they have other similar defeat devices. alix: you don't know about the fix is. what do you do if you own this car and what he traded in and get some money? what do you do? matt: that could be part of the settlement. you bought the car based on its fuel economy and performance. if it does not live up to that --mise, they will certainly there will certainly be class-action lawsuits and recalls and settlements. that is the best protection right now. the market is not too friendly to diesels because of this thing. you might want to hang onto your vehicle and drive it and wait and drive it in wait-and-see with the fix is going to be and how it will affect your car and see if you are eligible for any compensation for whatever fix goes forward. alix: thank you so much.
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the more coming up on "bloomberg market day." two very different calls on the copper committee. if goldman sachs on one hand and citi on the other. ♪
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♪ welcome back alix:. -- alix: welcome back. holiday sales in the u.s. maker lesson last year. sales increase as much as 4%. last year shopping was up more than 5%. they say stagnant wages may hold back consumers. a milestone for facebook's instagram. they passed 400 million monthly users.
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that is more than twitter. more than three fourths of instagram's users are outside the u.s.. the fastest areas are brazil, japan, and indonesia. reports saying traditional books being killed by electronic ones are premature. new stats showed e-books leveling off with 20% of the market share. a trade group says shares fell 10% in the first five months of this year. those are some of your top stories. stocks trying to bounce back. that miller is standing by with a look at where we stand early in the session. considering that the pmi number out of china, you would've inspected some kind of more severe drop in stocks -- stocks. matt: last night when it was reading about the china factory news i thought oil the tank that it recovered again. we saw the same thing for european stocks.
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nasdaq really unchanged. the s&p and the dow are very little changed. you have weight on these red arrows. after we saw a dip and a recovery we are not seeing it in this market. we did see it in carnival cruises. they were down yesterday on the reduction of its forecast for 2016 earnings. now a slew of analysts have come out and said the drop was overdone and this is a buying opportunity. you see the shares up 2% right per share.73 u.s. steel. it's had real problems over the last few weeks of trading. it is down now for 15 of the past 17 trading sessions. it's down 30% over that time.
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it was looking like a little recovery p market but is now lost that momentum which is -- free market but is now -- i have to change the colors. the burnt orange. you see the steel index down about 40% year to date. bloombergte, bc the commodities index down about 25% over the last 12 months. commodities in general dropping across the board and that is one of the reasons you see u.s. steel coming down and empathy with the index. you see other commodity movers dropping. commodities, gold, copper, it bys it will cut its cap x $1 billion. i feel like i should not be
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telling you about commodities. usually you tell me about commodities. it's like a role reversal. alix: it's an interaction. you mentioned freeport. a lot of its revenue last year came from asia so the china exposure, matt, there you go. evidence of a further sldown in the manufacturing and next port sectors in china. their pmi for september came in at 47. that is the lowest in more than six years. it is remain below 50 since march. in 12 hourso doubt that show very different perspectives on china's main opper.cturing metal, c citing heavy surpluses until 2019. hoffman -- ask can ken hoffman.
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i read the two most opposite reports i could ever read about copper. goldman looking at about $4800 per ton this year in city ton.ng at $5665 per >> if you're bullish on copper and you are city, most of the miners believe this is a low. chinese copper demand is a little slow but there is a lot of mining issues. you just saw glencore cut copper production and next month china will come out with their --e-year plan for there'll maybe they will come up with a huge infrastructure bill. if you're bearish like goldman sachs you are like, wait a minute. copper demand is not very good. bloomberg intelligence believes top or demand is down 2% to 4% and that might be conservative. that's a really bad note. they are looking at the chinese demand which everybody thought
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could never go negative but it is negative and that is that for the copper market alix:. alix: what winds up happening with stimulus enters the market? you'll want to buy air-conditioners and refrigerators and those things use copper. goldman says regardless you are looking at slowing credit growth, deleveraging, overbuilding in the property market so there's nothing to support copper. both seem really legit to me. >ken: nobody can understand china. he is 100% right. anyone who says they understand china is not telling you the truth because there is something called the kerry trade where a lot of people were buying inventory in leveraging finance off of it. we do not know how big it is an d in that nickel market it is been massive.
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is sick dishes because it was a financial trade. if they were right, it blows the cover off the copper market and it is very bearish and they have to change the models. alix: that definitely deals with the demand side looking at supply. again, two very different interpretations. they're cutting cap x, and shutting down mines. you have goldman saying you are not -- it does not matter because it's about we demand. which is going to take more presidents in setting the short-term copper price? ken: what do you usually see is demand set supplied. a majority of company's are continuing on with the plan. the cost of producing copper is 20% to 30% low where the copper price is today. it was really a brave step of glencore to say we are not outright cutting.
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the majority of companies are still adding to supply. that is what goldman is worried about. can, you are sticking with me coming up on the bloomberg market day." a mixed picture for the markets right now. we will be right back. ♪
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♪ alix: welcome back. a quick check on the markets. a relatively calm day considering we have the china pmi down for seven consecutive months. the nasdaq slightly positive after giving totally beaten-down the last two days due to biotech stocks and health-care stocks. s&p, tech and financials are leading the way as well as consumer staples. telecom, ands, industrials. hillary clinton is starting to
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feel the heat. a new poll shows her still leading the democratic field but her numbers are slipping. the surprising emergence of vice president joe biden. ann joins us now. unreal because he is not actually in the race. ann: this is a national poll and we do not nominate candidates for the national election. this is a bit of a what if. he would be one point ahead of bernie sanders and relatively close to hillary clinton. one of the things we see that explains that is the favorability numbers and joe biden is actually up. every other national figure that we measured was down, including the pope. alix: the pope is down? ann: just a few points. hillary clinton was down 10 points. it does say there is a little
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bit of shakiness in the democratic field right now. alix: how much of this is normal when you have a candidate enter the race because you're not happy with the front runner? is as normal politics? ann: i think you would be wrong to overstate the importance of this. jiggerss a lot of for who will be the leader. he has not had to deal with the press is a real candidate. this is just a moment in time but it says there is a readiness among one in four. alix: how did he pull versus hillary clinton with women? ann: reasonably well. it's more interesting to expand it hillary clinton estimate we had quite a big lead with women. now she gets 35% among women, 30% among men. it's just not that much of a difference that people expect. alix: what about bernie sanders
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and donald trump and ben sanders? where they ranking out? ann: we will be releasing republican numbers tomorrow. you'll have to wait for that. alix: we will check back in with you tomorrow. thanks so much. still ahead on "bloomberg market day," the pope is in washington meeting with president obama. we will discuss his agenda on his first trip to the united states. what the president and the pope want to get out of these conversations. ♪
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alix: welcome back. look at theick a markets where stocks are trading and fluctuating around a two week low.
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couple things going on. you do have china pmi contacting and you also had ecb president mario draghi saying that more time is needed to consider what the risk for the economic outlook warrant a step up in stimulus. the expectation was that the boj and ecb could continue to pump money into the system to offset issues in the global economy. we do have breaking economic data. it is u.s. weekly oil inventories and matt miller breaks down inventories. matt: it is falling. 1.92 million- barrels to be exact. more than the estimate. you are looking for a drop of 1.1, so that oil strength that we saw this morning even with the chinese pmi is set to continue for the session. i want to go through the numbers . gasoline inventories actually rose 1.39 -- 1.37i should say 762ion barrels and we are
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as the forecast, so gasoline inventories rose and they actually had a drop of 2.1 million and we were looking for a gain of about one million. 2.2%, so wefell same as2.2% drop, the last week and only looking for about .5 of 1%. we had inventories falling more than anticipated and as a result, the crude continues to rise. alix: they were entering refinery maintenance for the next couple of months, so you are seeing refineries call back a little bit. will watch the product stocks built. we will take a deep dive on oil. let's get to some other top headlines this morning. a new development in the investigation of hillary clinton's e-mail. bloomberg is learning they have
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recovered official and personal e-mails from a server. pr is looking into whether classified information was mishandled. a french prosecutor says corruption probe should be dropped. imf chief faces preliminary charges of negligence over her role in arbitration ruling. that handed more than $535 million to french businessman while lagarde was the finance minister. they did not say why they wanted to drop the matter and it is up to investigating magistrates to decide if lagarde stands trial. to zero outpledging greenhouse emissions from their operations by 2050. the ceo is one of the chief executives urging governments to adopt their own neck zero target. he spoke to bloomberg's francine in an exclusive interview. >> it is our duty as the ceos to set an example of the sure we are not driven by the shareholder privacy but we are
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driven by the need of consumers. alix: later this week in new york, the united nations will hold meetings on sustainable development. prime minister says they were not in recession despite the data showing otherwise. joe oliver tells the ap that it is largely confirmed to the energy sector and canada's economy receded .5 of 1% from april through june after citing .8 of 1% in the first three months of the year. the nfl is the first pro sport to use drones. the faa says pro football can use drones to shoot films, documentaries and tv segments the not for games or to film overcrowded stadiums. those are some of your top stories. coming up on the bloomberg notket day," joe biden has even said he is running for president but that does not stop his rise in the polls. instagram is seen instant success. they announced they hit a new
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milestone, leaving twitter in the dust. les, chinese president is meeting with business and technology leaders in seattle. we will find out what he had to say about cyber security. pope francis begins his first the visit with a meeting at white house going on right now. the pontiff was happy to kick things off at the speech this morning on the white house lawn. i am happy to be a guest in was built by which storm families. [applause] more on the pope's agenda, let's bring in father robert, cofounder of action tank focusthe think on moral economics. thank you for joining us. i was surprised to hear that the
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pope was speaking in english. it seems the majority of his speeches will be in spanish. father robert: yes, it is an effort to speak english. this is his first visit to the united states and he is never lived in an english speaking country that i know he was working very hard. i'm not sure if he is scheduled to speak in english tomorrow to congress. alix: the reason i brought that up is it points to what in essence he advocates when he is in the u.s. he advocates a stance on immigration, income inequality. father robert: also, you notice what you said about religious liberty. he not only talked about in general terms religious liberty but identified himself with the bishops of the united states who have a deep concern about the religious liberty issues related to health care bills. alix: what is his goal? being hit, first time in the u.s., only the third pope to
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meet with the u.s. president, what does he want to get out of talking a president obama? father robert: it would be the fourth pope because called the sixth did this in the 1960's. i think what he wants to do is have a presence for the catholic population but to also witnessed the dignity of the family. that was the reason he came to the united states. he will be meeting in philadelphia, but also this week about other things like the cyclical that he wrote which has concern about the environment. the poor, marginalized, immigrants and it really resonated with me because when i met the pope two years ago, the first thing i said in italian was -- you know, we are both italian-americans. he speaks to the immigrant population from that generation right up to the president. alix: what about climate change? it seems a lot of people who love the pope are not excited on
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his stance on climate change saying it should not be from the pulpit that he talks about that. father robert: i think the concern is that if the pope is going to delve into the ofricacies of the science climate change, the cause of climate change, much less the remedies for whatever change there may be in the climate that this is kind of gearing up the centrality. i think people would be less concerned if the pope says -- we have a stewardship obligation to our environment because that is what god entrusted to men and woman in the garden of eden, but beyond that and getting into the policy stuff like immigration, concerns for the poor, how do we do this? that is a little less central to the churches teachings. alix: what is president obama tried to get out of the conversations? it is obviously good pr to be next to the pope, but what does he actually get? this pope is:
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incredibly popular in the united states, not just among catholics but a lot of other people. every photo op he can get with the pope and also whatever you to theto link himself pope in terms of his policies. i think this is a very delicate dance going on right now. alix: you raise a good point. also a delicate dance for the members of congress who may be catholic but are republicans or democrats and they might disagree with things like climate change, like gay marriage, like abortion and what the pope believes. the kind of internal dynamics is that bring out the political landscape? father robert: as you can imagine, these are people running for office constantly so they want to be associated with him. in a way, he has the perfect equalunity to be an opportunity offender, i don't mean that in a little sense, but he will offer challenges to both sides of the aisle. he does not come at this as a
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as aician, he comes pastor, the leader of the catholic church. everybody will be dancing around to see if they can get a part of the popularity. alix: thank you so much for joining us, father robert. acton robert: it is the institute, not action. alix: my apologies. ahead, how much oil inventory does the u.s. still have and what does the maintenance season of the next few months going to bring? ♪
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alix: welcome back. we are one hour into the market day so time to get you caught up around the world. we start in asia with the nikkei
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falling almost 2% and the hang seng down 2.2 5% and the shanghai composite out more than 2%. one big story, they're worried about china's manufacturing industry. stephen engle has more from hong kong. engle: the pmi has not been this low since the death of the global financial crisis. preliminary readings from september came in well below forecasted. we were expecting 47.5. it is the seventh consecutive month the gauge has been a contraction, reflecting low demand and of the capacity at chinese factories and puts further pressure on authorities to me that 7% for your gdp target. seattle thatd in the chinese economic growth will stay steady at a medium to high rate. growth is under pressure. alix: let's head over to europe where ryan chilcote stands five. ryan: pretty interesting day on the european equity markets.
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a little bit of the next but look at the footsie nearly up 2%. today put at the top airline pick by morgan stanley. one of the reasons we see it do so well today is we move on and look over at the euro which is exciting today because we just heard from mr. mario draghi. he spoke at 2:00 p.m. local time, doubtless was a short while ago and i think people thought he would be a bit more dovish than he was. the euro was up 5.5 of 1%. 1.11 range. finally, we have the charts up, let me show you folks like an because the day would not become -- folks like an -- folks like in which is a .3% today. pretty extraordinary but let's face it. take a look at the six months for this stock and it is down by
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more than 50%. monday and tuesday alone, killer days for the stock. it lost more than 35% of its value on those two days. it is back a little bit. ite some investors saying has been punished too much but there is an awful lot of negative news flow. the ceo of the company of the last eight years bought close to 600,000 people and he is teetering in front of some of the most important people in the supervisory board trying to hang onto his job. you have the french and germans both talking about how the crackdown on the company needs to continue. matt, over to you. interesting toe see how the market reacts to the result of the meeting. in the u.s., we have a lack of movement on the index is. in european markets and an oil as well, we kind of solid dip on the chinese and recovery but we have not seen that come through. the s&p 500 up .1 above percent
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in the dow jones industrial average down 20 points to 16,309, so not a lot of movement. that me show you that imap function that maps out the s&p 500 as far as which companies do the best and which are doing the worst by industry. here you can see that you have green and i.t. and green and health care, but industrials are doing poorly. all read and consumer staples not so hot either. as far as what we see in the industry action, materials are big dry, telecoms of the dry, consumer staples and really only energy, health care and i.t. keeping us up there. we were talking about oil earlier and i gave you the drop that we saw in the u.s. oil inventory and that is really expected with the oil price as well. let me pull that up so we can see how oil as done since his other inventory numbers. still up by a good and again at
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2.3%. here you can see, you know what? let me. this out because i think it is interesting. overnight, we had the chinese pmi and we came down with the recovery and a big spike or a decent sized spot, i don't want to overplay my hand, inventory numbers dropped 1.9 million barrels and we were looking only for 1.1 million barrel drop. keep an eye on oil prices through the market. thank you so much. speaking of oil, it is rising after productions of crude inventory dropped with the commodity hitting a six year low over concerns of china's growth feeling the volatility. here are the futures for oil. you see that big spike, i will collect the big spike with inventory numbers, and i'm joined by vincent, senior analyst of the u.s. oil and gas for bloomberg intelligence.
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we talk nerd oil chat all the time. why the big spike? vincent: it is the crude inventory spike back to go down about 2 million barrels. api projected that would be down barrels, 3.7illion million barrels. let's consider that could inventory, stockpiles are still 27%, 20% above the five-year average which is significant. on the product side, you had a building gasoline abruptly one million barrels, 1.5 million barrels. alix: which makes sense because summer driving time is over. and say: so the seasonal affective place. we have refining maintenance and demand is likely to wayne. longer-term, you have this rather robust stockpile of crude that you have to get through odd million some barrels above the five-year average. alix: i don't know if we have a good answer, but it stood out to
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me that it was about 2 million barrels drop. the reason is because we have seen a built in desolate four weeks. yes, you are using crude but you make it into a product no one is aing, creating of glut in different market. vincent: in anticipation of the heating in the winter season could be one possibility. alix: what about production? usually, we get a read on weekly production numbers that have been trending down recently, part has been alaska and half has been shale. griffin said: -- vincent: they suggest that roughly 9.1 million barrels a day is relatively flat week over frombut it is still down earlier in the year at the peak of a 9.6 million barrels per day. we have seen this trough, this peak and now turning down roughly 400,000 barrels a day over the last couple of months. alix: what is interesting is the
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result has really been looking at the market. crude wti in the u.s. and overseas is trading between three dollars and four girls a barrel. or fours at 20, -- dollars a barrel. they were at 20, $25 and what is it about the u.s. market that is tighter than the rest of the world? flux coming upin and the supply cadence that is trending down. within the branch market, overall seaborne would be impacted by factors of geopolitics which are much more difficult to analyze as opposed to counting the barrels in the u.s. and county that demand in the u.s. as well. had a great aspect notes on what is going on at wti a few days ago and saying the idea is as you seats doors oversee in europe with 80% capacity, we are at 56% capacity in the u.s. and we will see a
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ton more imports and oil coming in from overseas because we have the room. what you think of the dynamic? vincent: there will likely be more imports as spreads narrow. we have a lot of crude inventory to get past. we are roughly 100 million barrels above the five-year average, so quite significant. we are seeing crude production come on off so that will help. alix: what kind of inventory build do you think we will see as we see more finding maintenance kick in? freight -- vincent: you will see that utilization come down and you should still see some built in to storage as we push through the next couple of weeks and then the next couple of months as we get ready for that winter season. alix: i take away is that we saw a drop but we will see more imports that will come into inventory and or inventory build because of the refining maintenance. this seems more of a one up.
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yournt: one caveat is production coming off about 500,000 barrels from that the growth of this year. demand side, awesome, good stuff. i appreciate it. my go to oil men on the ground. still ahead in the bloomberg "market day," bill gross suggesting venues for investors. we will look at what the group is demanding the fed to do.
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welcome back. i am alix steel. has adviceill gross for the fed -- caps off zero and get out quick. they decided to give the benchmark rate near zero and future traders are betting it will stay there until the end of the year. will gross says it will have bad results. bloomberg's merry child joins us with details. when and where did he say this? i think he may have just something to say and wants to get it out. he has been doing outlooks since
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the 1970's and 1980's since pimco. alix: soak it up interest rates asap, what is his main thesis for that? mary: he says capitalism is on the verge of breaking, pretty drastic, and this monetary place allpolicy in these years reduces the ability theseybody to save and pension funds and insurance companies, all of their business models are breaking, and he says it is dangerous and the fed policy only helps to spur asset price increases and has been discouraging any kind of investment in the economy. alix: did he give any sense of his forecast for rate increases? 25 dips is no big deal" turned the investment from the pension anytimed not returning soon, so did you talk about the case? mary: he thinks it will be slower than people anticipate. onook at what markets say
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what rates will be and there is a dispersion what people say they do not believe the fed and they don't think they will meet great targets. alix: meaning we will see a lower interest rate environment for longer? mary: right. it seems as if he is asking and x was retelling the fed, this is my advice. here is more of what he positions for and when he was them to listen to and maybe they should consider the theories. alix: i totally get that thesis, but is he positioning himself for what he once versus what he thinks will happen? mary: it is unclear. one of his favorite strategies is benching the portfolio it short data corporate and bind them before they mature and that is a reliable and tiny amount of yield you are getting but that is his reliable weight of making money based on what he thinks interest rates are and where he
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thinks it will go. that is a little bit of ida's first strategy, but he did not talk a lot about position in the letter. he talked about retaining quality, trying to navigate will change the fed things. alix: who will be hurt the most by the policy? : he points to americans come up holders, and he says they are being cooked alive. -- the 401(k) holders, and he says there because the alive. alix: thank you so much. much more coming up in the next hour of bloomberg "market day." the latest on the crisis of volkswagen. ♪ ♪
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(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. alix: it is 11:00 in new york. 8:00 a.m. in san francisco and 4:00 p.m. in san francisco. -- in new york. company?lead the
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regaining the trust of u.s. consumers. we will discuss both of the issues. scarlet: instagram conquers the here andth the users overseas. cory johnson gives us a snapshot of the success. china's president tours the pacific northwest, we will have a live report from seattle with the latest. ♪ alix: breaking news. the ceo of volkswagen is going to resign coming out just now. says he requested the step down and he is stunned that the misconduct happened in volkswagen on such a scale. we continue to get headlines. he is not aware of wrongdoing on his part. the live

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