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tv   Bloomberg Markets  Bloomberg  October 5, 2015 2:00pm-3:01pm EDT

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from bloomberg headquarters in new york, i'm david guerra and here is that we are watching this hour. shares of one core rallied after the company is south -- company is solvent. how should the west react to rush' strike in syria? and apple pay has failed to catch on with consumers one year after it was introduced. marketset's head to the were julie hyman has the latest. julie: we are watching a rally that has remained intact. andee stocks on the rise they are gaining steam as we had throughout the day. the continuation of the rally from friday when we got worse than estimated jobs data followed by worse than estimated
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data on the services sector this morning. rates are not going to be going up anytime soon. that could help the snap back and the dismal third-quarter that was for stock. we have some important stocks doing well with general electric rising on that investment. rising,t and cisco also so it is a cyclical rebound, but a lot of different groups are participating. david: i have to ask about the bond market. julie: we saw a significant move below 2%, reflecting the perception the fed will remain on hold for the rest of the year. we are seeing that come up with the buying of stocks and selling in bonds driving yields higher but still close to 2%.
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take a look at my bloomberg terminal at what the expectations are for what the fed is going to do. 10%t now, we only see a chance that we would see an interest rate increase. it only goes to more than 50% at the march meeting and the expectation continues to come .ower and lower that is the chart you see at the bottom of your screen, the diminishing expectations there. chart and how it is being posted into the swap market. the bottomslice it, line is the fed says rates are going to be going on at a certain trajectory and market participants are not buying it. david: thank you very much.
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it was only a week or so ago that we avoided a government shutdown and here we go again -- our next guest says there's a 50% chance there will be a shutdown in december. expert and aget bureaucratic bookie. why are you placing the odds that 50%? and: i'm starting at 50% could go up from here. all of the decisions will be much more difficult. we will have a new leadership team, and untested new leadership team that may not know where the coffee machines are. just a few hours ago, they said it's not part of his vernacular. planned parenthood is still around -- in other words, we have not solved anything.
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it will be much more difficult for everybody. david: you have speaker boehner was something nobody could have predicted. i'm curious what kind of vacuum that creates. having speaker boehner say he is out. for a sort of more cohesive environment. was a weekboehner and still is a week speaker. look at what has happened -- there's a challenge that the leadership has opposed. i know boehner and mcconnell would like to cut a deal with and democratse and the white house are saying no. it's not clear that the
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republicans are going to follow. david: i want to ask about the debt limit and the debt ceiling. how fraught do you think that part of the argument is going to be? stan: i'm one of the few people who doesn't think that's going to be a big deal. that's the bill that keeps the government-funded, so it is possible they will have to deal with that if they don't do a temporary short-term extension. republicans have come under a lot of pressure -- if you want to mess with something, it should be the continuing resolution to shut down the government. i'm one of those people who think that the debt ceiling will be punted and they will fix it for a year or two. david: i used to live in washington and i've -- what do
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people in washington make of how quickly this happens and how cyclical it seems to be? not even cyclical anymore. one thing i hear from our clients is this has become business as usual and they are discounting some of it because it hasn't happened. the i try to tell them is situation is significantly different and the republican caucus is two or three parties working together in a parliamentary system. has come before should be taken as an indication of what will come. david: it seems like the lost art is the business of governing on the hill. when you look at that, is there interest in that? it's a tool he sees in his toolbox. >> it's also a significant part
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-- am republican caucus going to argue with the premise -- it's not as if it is a lost art. reason for being in washington. making government work that are or work at all is not what a significant part of washington is trying to do. republicans feel that to the extent voters don't like the way washington is going, they tend to vote against government. that's a vote against republicans, they think. david: what are we looking forward to? on october 8, we may have a vote for republican leadership. that's the next big thing to
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happen. david: thank you very much. we have a first look at what's coming up with mark crumpton. mark: an american airlines violet dyed midflight after a medical emergency. the flight left the next certainly after midnight. it was diverted after the pilot's death and the copilot landed the flight safely. there were 140 passengers on board. no word on what caused his death. the rain keeps pounding south carolina after three days of historic flooding. rescue teams are going door to in swampheck on people neighborhoods. at least nine deaths have been blamed on storms into states. more than a foot of rain fell across south carolina and drenched the other states. joaquin is hurricane
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heading out to the atlantic. the storm knocked out power to thousands. forecasters say the hurricane is now a category one storm, packing winds of 85 miles an hour. more on the aftermath of the hurricane -- the missing cargo the search for survivors will continue. contact with the ship was lost five days ago during the hurricane. coast guard ships and planes discovered a debris field about 90 miles from the bahamas. one body was found. the crew included 28 americans. vice president biden is reportedly very -- nearing a decision on a white house run. the vice president will decide whether to challenge hillary clinton as soon as next week. confidants say he is appearing to lead toward a run. that is a look at our first word news -- you can find the latest news on
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david: coming up in the next 20 minutes of the bloomberg market day, who could be the next rory mcilroy? we will introduce you to the feeder system to the pga tour. when core shares are rallying as the company says it is not like lehman brothers. but can the company really turn itself around? ♪
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to thewelcome back bloomberg market day. let's head to the markets desk where julie hyman has a check on company movers. julie: the first has to do with potash. the company is giving up on it
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attempted acquisition of a german company. it was an $8.8 billion acquisition and potash has been pursuing them for about a year's time. finally giving up on that and that's sending its shares up to some degree. disappointment that deal was not going to go through. i guess the question is what now will happen within the industry and will there be other companies trying to acquire them? largest of these companies. i'm also looking at alcoa. it's a big week for the company and they report earnings after the close. it is usually seen as the leading edge in terms of
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companies reporting their numbers. a fastenings contract. this is a large contract for the recognizes theo transition they have been trying to make some raw aluminum to a maker of finished project -- finished products. of aluminum itself has not been very strong. david: thank you very much. what is -- what does the future of finance look like? tomorrow, some of the most lauded leaders will come together at the most influential summit and they will share their perspective. erik schatzker will be in the middle of it all and he joins us with a preview of the event. who will you be talking with? erik: i'm very fortunate because i get to conduct two conversations.
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smith, how would i put it -- what is the best adjective to describe jeff smith? activist on a rocket ship to the moon. nowhere, and the space of three short years, he's become one of the most influential activist. he is the guy who swept out the darden restaurant board last year -- a historic win for activists. i will also talk to barry diller . he calls himself the senior executive of iac. he's the man behind the assembly of the online dating website it's going to ipo as the match group. i'm not the only guy who gets to play a role.
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tophanie will be talking bill ackman, the ceo and founder of pershing square. 's known be the world activist. i think he's fighting for that role with carl icahn. they fight about other things, i should add. and it's not all just in new york. to emphasize the global nature of finance and the interconnectedness of finance and markets, which is the business we are in. we are holding concurrent events in hong kong and london. to my knowledge, the first appearance in a public setting like this since he departed deutsche bank -- that will be amazing. the private equity tighten behind terra firma will be in that event.
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class andmaster custom presentation to our audience only. it is going to be pretty extraordinary. david: are there other themes you expect to unfold? --erik: i'm going to be talking about where barry diller is going. that is the business everyone is in. the transformative, disruptive role of technology will be a recurring theme, as is this idea of interconnectedness. and the role technology is playing in increasing the degree to which the world of finance is interconnected. that is something i guarantee you are going to hear. this is thed to list of the 50 most influential
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people in the markets. janet yellen is at the top of that list. argue with that? who has her finger on a bigger button that janet yellen? avon: thank you very much. bloomberg markets's most influential summit meeting tomorrow for a day of newsmaking conversation. that's live tomorrow on bloomberg television. still ahead on the bloomberg market day, meet the next generation of golfers -- can they help and industry in the rough? ♪
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to thewelcome back bloomberg market day. the new pga tour season begins
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in less than two weeks in california. and a 23-year-old earned his place in the big tour, making a 25 foot birdie putt. the tour has become the primary pass to securing membership to the pga tour. joining me now are three rising golf stars. let me ask what the tournament was like and what it means for you going forward. guest: it is my first win in the united states. we have been traveling the last entereeks and i had to the last one to get a victory. i can't wait to start on the pga tour. david: obviously winning one of these is a big deal. there's something called an exemption and a chance to get to
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the pga tour. explain the system. the top 50 guys from that their tour cards. we've playedinals last four weeks. it gives us a year on the pga tour. is going to be the biggest difference for you between the tour and pga tour? tost: i'm going to try treated the same. there's a lot of opportunity for partnerships for different companies and it's a big step. i'm excited to see what it all entails. you all are wearing hats and have sponsors. does the endorsement side change from one to the next? do you get more offers? guest: definitely.
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it's a bigger stage and we get a lot of coverage and tv. the more tv you get, the more money you get. week towhy we try every be on tv and on the radio. david: for you doesn't change much? guest: you get to meet a lot of influential people and they like to be part of golf, so we meet a lot of great people and get a lot of tv time. david: i'm struck by how individual a golf game is. it is on you. if you can't make a tournament, that's a great psychic loss. burden through the financial burden? there is a lot of pressure there.
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the pga tour protects you a little bit. we trynt liability and tuesday healthy and prepare financially if there is a setback to plan well. where people come in who know a lot more about money than i do that can help me. i have a good team and it's nice to surround yourself with helpful and influential people. team: how do you find a for around you? how do you find a team you trust and what do they do? it took me four years to set a team for what is next. there are so many options and there are a lot of people involved.
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it is a big sport moneywise and hard to put everything together. david: who is the golfer to watch? i have enjoyed watching some of the young guys like jordan day and rickie fowler. those guys have really stepped up. i've grown up watching tiger woods. david: still do? guest: not much. fun to watch and i have enjoyed seeing some of the young guys step up. mickelson was more when i was growing up, but ricky guys are playing
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great golf and they are going at it every weekend it is fun to watch. david: thank you very much. glencore ounces back. we will look at how one of the biggest commodity traders hold off the comeback. ♪
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david: from bloomberg world headquarters in new york, this is the bloomberg markets a.
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at first wordook -- mark crumpton has more from the news desk. mark: an amtrak train headed from vermont to washington, d.c. has derailed and central vermont. late word from the associated press quotes amtrak officials as saying at least seven people were hurt, one seriously. theak says the rate -- train struck a rockslide about 20 miles southwest of mount hillier. outgoing house speaker, john boehner, says his replacement will be elected october 29 with other leadership posts decided later. the republican conference is still meeting to elect a speaker nominee by secret ballot. kevin mccarthy of california is considered his likely a successor. but jason j fits is mounted and unexpected challenge. the u.s. and 11 other pacific rim nations have agreed on the landmark free trade deal and already, ford is calling on congress to reject it, saying the deal fails to address
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currency manipulation. ford says the obama administration should renegotiate. the deal covers everything from tariff reductions to intellectual property rights. some coaching changes and professional sports -- the miami dolphins have fired their head coach just four games into the new season. the era concluded after 24 wins and 24 losses, including sunday's defeat at the hands of the new york jets in london. dan campbell is expected to take over on an interim basis. and the washington nationals have parted ways with manager matt williams. the team was expected to repeat as national league east champs but failed to make the post season. pepsi is going back to the future, paying homage to the iconic film trilogy with pepsi perfect. the company is only making 6500 bottles and they will only be
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sold while supplies last. the soda is featured in the second "back to the future" film. that is a look at our first learned -- first look news right now. 6500 bottles -- they will be on ebay before you know it. commodities just closed. let's look at some of the market biggest closers. copper gaining as to companies warn the market is likely to tighten. now to the commodities stories -- glencore is rounding back. when core shares have climbed more than 60%. let's take a deeper look at this roller coaster ride. this has been a crazy ride for investors who are probably eager for it to stop.
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what has been driving all of this? i think what is going on is that it's a company that wants to be a private company but it is a public company. you will have thousands of analysts converge for an event called metals week. i will be there and bloomberg will have a huge conference. we asked glencore to speak and they are still thinking about it but i have a feeling they may not do it because it is not their style. the problem that hurt them this year is that by being a bit of a private company and not really going out and telling their story, some analysts decided they would tell the story and they started to tell a very negative story and that started the stock down. then we had the news last thursday that really crushed the stock. barclays met some investor groups and started to tell their side of the story, that they better learn how to
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tell their story to this street. the chairman of bloomberg nonexecutive and just bearing that in mind, i know they have been trying to reconfigure itself and has done away with its dividend. what kind of shape is this company in? ken: glencore is the creme de la creme of metal traders. a lot of people thought they would go back private again. it's the premier company in the space in terms of trading. it has left them with some debt and they are trying to recognize -- trying to reconcile that. how do they move metal and oil and make money from it? what are they going to do with the cash flows since the merger? have madelysts
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comparisons to lehman and say they have the lehman moment and have debated that comparison. one analyst says the company has leverage but it is not near an x essential threat to the company. after the 2008 financial crisis, regulators have forced big banks to get out of the commodities lending business. the risk is if all of the banks stop lending to these companies come a would be a major problem to the marketplace. i think what they became comfortable with is there is stuff backing a lot of their trades and it's a bit of a risk that regulators have foisted it again, glencore
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is the biggest and most stable out there but it is public. this: you mentioned company has not been a great job telling its story what is going on here. have they gotten better? are you finding when the market moves that it's able to make a convincing case? ken: i think they are thinking about that strategy more. they really need to do that a bit more and become a bit more out there with the financial media. i think they are being forced to do so whether they like to or not. to be a bigntinues story. thank you for taking the time. up, tensions continue to escalate in syria as russia steps up its airstrikes and nato calls an emergency meeting over what it calls an unacceptable intrusion.
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we will hear from nicholas burns. apple pay marks its first anniversary but the tech giant may not have much to celebrate when it comes to mobile payment services. with.s. stocks rallying what we can expect from the markets later this week. ♪
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to thewelcome back bloomberg market day. let's head to the markets desk
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where julie lott -- were julie hyman has the latest. stocks are rising to the highs of the session. not only has it been strengthening and is the fifth straight day stocks have been higher, the longest streak we've seen this year for the s&p 500. wes amidst this perception are not going to see interest rates go up anytime soon. by me iw emphasized asked them services report that came in weaker than estimated following on the heels of friday's job reports. this is a one-year chart, but if you look at what it is doing today, we see the dollar of just a little bit. it has been losing ground versus a number of various global currencies. yen and theapanese -- the various currencies
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we are seeing there. let's display the currency names to get a better idea. theor what is going on in commodities market, we see oil after we had the account showing a decrease for the fifth straight week giving some support to oil prices. as for copper, let's take a look at what copper is doing today. copper futures up and participating in this risk on environment across the market. much. thank you very coming up on the number of market day for apple pay. from sanng joins me francisco to discuss why the payment services not catching on, next.
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david: welcome back to the bloomberg market day. i'm david gora. let's turn to the tent situation syria where the russian military continues to construct -- continues to conduct airstrikes. the british premise or says it's not helping the fight against terrorism. mr. cameron: the tragedy is most of the russian airstrikes have that imparts of syria not l, but by othersi opponents of the regime. so they are backing the butcher, i thought, which is a terrible mistake for them and the world. it is going to make the region more unstable. david: joining us now is
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nicholas burns, the former u.s. ambassador to nato. what approach do you think the u.s. should be taking in light of what we have seen russia do in the last few days? burns: the u.s. has to decide how it's going to respond to this major russian strategic move over the last week. the russians have completely repositioned themselves in syria and built up their military apparatus. they have lighter aircraft and they are conducting major bombing campaigns against groups that are friendly to the united states, britain, and other western countries. it is a policy that needs a response and perhaps putin has bitten off more than he can chew. in a way, they are going to let
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and it is essential to make sure we do not collide both air forces. but if you have not seen the kind of strategic counter move from the united states a lot of critics have called for, which would be for the u.s. and its allies to arm the moderate and intensify our own air campaign against islamic state. president putin is the one with the initiatives. david: a lot of people have floated the idea with the u.s. enforcing a no-fly zone. what would make that difficult? theburns: i think administration has exaggerated the degree of difficulty. we have a lot of experience setting up no-fly zones. we've done it in a rack to great effect. there is an obvious need for it.
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the syrian government is using barrel bombs and firing them indiscriminately to kill thousands of civilians and terrorize them. they are creating a refugee stream blasting into civilian neighborhoods in aleppo and the mask to the -- and damascus. to create refugees owns where they could go for support and safety and have the protection of the no-fly zone is something we know how to do well. turkey is now part of the u.s. alliance after many years of not doing so. the arab countries are with thed to working united states and the european allies in nato, this is what we do as a matter of course. if the obama administration wishes to do it, the administration does not want to be pushed into any kind of more pronounced role in syria. is the a no-fly zone
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best way to protect civilians and limit the ability of the syrian government to extend its power. david: i want to ask about the diplomatic channels between the u.s. and russia. a chilly meeting between president putin and president obama and a warm relationship the o-matichey have equivalent of a friendship. what does that mean for the diplomatic relationship between the two countries? thaturns: it is important we have talks between the government. theye sanctioning government and trying to isolate russia. to be realistic, russia has a major impact and influence in syria and russia was a major part of iran negotiations.
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afghanistan and counter narcotics and north korea, russia is a factor in the world. servingn in diplomacy both republican and democratic administrations that you most often have to work with governments you might not like very much. you have to work with it, if you are looking for nonmilitary solutions. is going toat war end, maybe years from now, unfortunately, at the negotiating table. that would mean the united states and russia have to talk. i don't think president putin and president obama have an effective relationship, but seems to be ay bull communicate clearly and i
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think that is a positive. david: you mentioned the huge .nflux of migrants into europe at some point in your career, you were ambassador to greece. what has been going on in that country and how are they dealing with it when it comes to its relationship with the european union starting to go through a jet assess? mr. burns: it has been a horrible set of circumstances in greece. this for the half-year time of economic uncertainty and collapse. greece has been experiencing a depression, their economy having with used over 25%, unemployment levels at 50%. experienced a much deeper crisis than the united states and canada and now, to be hit by this refugee crisis, some of these tiny greek islands, you
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15,000ave 10,000 or refugees and it's the capacity of the government to handle an influx of people. it is quite evident. i think the greeks are in a difficult time of testing on the economic front. they have this agreement with the european union and other creditors. can the greek government regain their economic footing and be in a position to repay those loans? that is the question. on the refugee front, they are getting help on the european union, but they need more. it is a country under assault and the government's ability to just be effective on a daily basis is being tested by both of these crises. nicholas burns, former ambassador to nato, thank you for your time today. switching gears, vanity fair's annual power list of the leading
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innovators and disruptors is coming up. emily chang joins me now from san francisco with more. what can we expect to hear from this conference? what are you looking forward to? it is a very exciting conference and last year was the inaugural conference. this year, they have mark zuckerberg joining them. he is number one on the new establishment list. the head of design at apple will be on stage and we will be catching up with a lot of great people on the sidelines. oaks, the fair creators of "silicon valley" on hbo. opportunity to get some time and talk to them about what they see as the future of technology. this is the one-year
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anniversary of the release of apple pay. since the release one year ago, we have seen lackluster adoption. of retailor just 1% transactions. has it been a failing of apple to push this out and make it something consumers would be interested in? that is something merchants are telling us. for example, panera pay says it's in the low single digits right now. another retailer we spoke to said apple is not doing a very good job promoting it. ishink one of the problems some people don't know how to use apple pay and don't understand why they should. it decreases the time it takes at checkout but it's not difficult to take out your credit card. apple is saying they are only looking at more growth going forward.
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they are looking for more growth down the line. one thing that is happening is there's a huge shift to chip and pin cards. that could increase the amount of time transactions take it you have to leave your card there a little longer which might and send people to use apple pay. david: i'm curious to what degree this space is competitive. do you have -- is it a pretty slow space overall? emily: google has been trying to do this for many years. it was called google wallet and nobody used it. google is trying to rebrand with android wallet and samsung has its own version. it seems very few people are using these competing services. if you look at the broader landscape, they are leading in the sense they have the most fairly so far, but it is
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lackluster. it is something that will take time to get them place if indeed it does. i have apple pay on my phone and my watch. i don't really use it that often -- that often. david: let me ask you what has come up on your show. talk to me about what you have coming up. i'm so excited -- we have one of the characters portrayed in the film, he is portrayed by jeff daniels in the movie. michael fassbender plays steve jobs. this is a role a number of actors turned down, including leonardo dicaprio and even aaron sorkin did not want michael fassbender to play this role, but now they are talking about oscars.
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a number of people who have seen the film are positive about it, so we will talk about the portrayal and you can expect more coverage of this movie. david: have you seen the movie yet? but i didave not, interview aaron sorkin last year and he told me t was the most proud of any script ever -- he felt so good about the way he wrote this movie, that he could wait for it to come out. david: thank you very much. , theg up, deepak chopra author and motivational speaker is teaming up with paul tudor jones. find out what the unlikely partners are working on. ♪
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>> it is 3:00 in new york a 8:00 in hong kong. welcome to the "bloomberg market day."
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from bloomberg world headquarters in new york. i am betty liu. here is what we are watching this hour. an hour to go until the market closes and stocks are surging higher. the s&p on the verge of the longest rally of the year. high-profile insider trading convictions could be in doubt thanks to the supreme court. we will explore what is next after the court refused to hear a government appeal. hillary clinton releases new gun-control proposals. will it be enough to reverse slumping poll numbers as she tries to draw a distinction with her rival, bernie sanders? we are about one hour from the close of trade on this monday. let's head to the markets desk where julie hyman has the latest. we are near our highs of the session. julie: we are. it has been


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