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tv   Bloomberg Markets  Bloomberg  October 12, 2015 12:00pm-2:01pm EDT

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julie: good afternoon. i am alix steele. dellet: i am scarlet fu, puts up $67 billion to buy emc, the largest tech acquisition ever driven by storage. alix: glencore adds copper to the list of assets to unload passengers are losing out. who is cashing in on their misery? for more on today's activity, we want to head to the market desk. julie has the latest. we are at the height of the session. julie: looked like initially we were going to stop out after last week's gain. that stall has revved up a
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little but it is a very little bit. not seeinge session a lot. the dow only up a quarter of 1%. let's look at the push-pool. hearing from fed officials that there is a likelihood we could see rates go higher by the end of the year. we are not seeing much movement. that means utilities are the best performing group. that is one of the continuing factors. the more defensive groups doing better appeared on the downside, materials and energy stocks. -- that installed out has installed out and we are seeing shares pull back. alix: crude down about $48 a barrel. what an energy are the biggest laggards? lousy performers, chesapeake energy is one of the worst energy performance this
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year is down pretty sharply. transocean and southwestern energy, stocks that have already been battered. mentioned oil prices, i want to look at what is going on. we have seen oil come off 3%. a couple different crosscurrents going on in oil. opec is saying that last month's production was the highest since 2012. that will be downward pressure. goldman sachs reiterating its stance on commodities. hedge funds are actually getting long oil. we had seen net longs in oil from hedge funds fall to their lowest and some time and we've seen a rebound. take a look at old today. we are seeing it at a three-month high. still other about .5% as we see the likelihood, at least
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perceived by the markets, that rates are going to remain low despite what we are hearing from the various fed officials. how much stocker can take from today's trading. volume and equities is down 24% from the 10 day average. julie: it is columbus day and we are waiting for earnings. scarlet: a big one tomorrow will be jp morgan. thank you so much. alix: let's check in on the first work news. mark crumpton has more. mark: thank you. a femaled nations says staffer in afghanistan was killed on her way to work today. she was shot by 2 unidentified gunmen on a motorcycle. no one has claimed responsibility. earlier, nato announced the nationalities of the five service members who died in a helicopter crash this weekend. the helicopter hit an observational balloon. the crash killed two british service members, two americans and a french contractor.
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the democratic contenders will face off in las vegas tuesday night in the first debate between the major candidates. the latest cbs news survey shows hillary clinton is still the front runner favored by nearly voters.mary republican presidential front runner donald trump says germany has gone too far when it comes in refugees. german chancellor angela merkel has agreed to take in about 800,000 refugees this year. trump criticized her sunday on "face the nation." >> i love the safe zone, i do not like migration, i do not like the people. -- the people coming. they are going to have riots in germany i always thought merkel was a great leader. she has done in germany is explain. mark: a cbs poll shows trump leads ben carson by six percentage points. pennsylvania is facing a budget deficit. some republican lawmakers think answer.ning is the
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they say it is better than raising taxes and are predicting hundreds of millions of dollars ,n one-time life thing fees plus collections from taxing a new stream of profits. it would be the third time in six years the state expanded gambling. roseberg, oregon students returning to class at the local community college -- at umpqua community college for the first time since a gunman opened fire, killing nine people. his own lifeok after exchanging fire with police. that's a look at our news. find the latest on bloomberg.com. back to you. scarlet: thank you. two landmark technology companies are becoming one, dell $67 billion. for alix: the largest deal ever in the technology industry. here is peter, currently with citigroup and previously with the white house. is taking advantage
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of attractive financing. you try to place that amount of debt in a market, it would be more challenging. it is a timing issue. the big question is, is the world evolving so rapidly that even this deal does not get them where they need to be. scarlet: alex sherman broke this story and he joins us from san francisco. what's interesting is that dell and emc are combining and getting bigger at a time when the trend is to break into smaller and more specialized companies. for instance, he would pocket -- hewlett-packard, google or even. toyed with the notion of spinning out its share of the group that derives quite a bit of value from. activist investor elliott and advised emc not to do this deal. elliott is now supporting the deal. after emc pushed back hard on
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the idea of spinning off vmware. vmware shares today of and over the past few days, they are down significantly. i think vmware investors would have preferred the spin out option, thinking they would be able to derive more from that. details of this deal is that a shareholder of emc will receive share, about 24 of which will be in cash and nine dollars will be in a tracking that trades with emc's interest in vmware. emc owned about 80% of vmware and still on about 70%. the ownership will now be dell. alix: talking about what this might mean going forward, emc has a good business and a bad business. they have their old storage business that is not doing well. it is weighing on their business
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growing faster like the newer storage unit. what is dell going to do? are they going to spin it off or absorb it? 's plan, if you believe them, by acquiring emc's storage business, which is geared towards large enterprise can do is, what dell now repurpose and start marketing the storage business to small businesses and medium-sized businesses. connected by selling servers. they say they can have three times the revenue synergies by having this company combined as one by taking advantage of these crops selling opportunities. it would not surprise me if dell spun out some of the businesses at emc or maybe even some businesses dell already owns in lever.to help de they are taking on about $50
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billion of new debt to do this deal and have said we are going over they delever next 18-20 four months. the only way they can do that unless they have immediate synergies is to start selling off some assets to pay down that debt. scarlet: alex sherman, thank you. alex sherman in san francisco. dell he broke the story on dell acquiring emc. alix: a convention on how to fix washington is taking place in new hampshire. are there, their plan to break the gridlock in d.c., next. scarlet: glencore is digging for cash. minedering selling two s. will it restore confidence ? alix: malaysian airlines is rebuilding its image. is it too little, too late? ♪
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alix: welcome back to the bloomberg "market day." i am alix steel. scarlet: i am scarlet fu. its: ab inbev has raised bid for sab miller, offering $104 billion. sab miller has refused to negotiate and says ab inbev is undervaluing the company. with matte will check campbell shortly mercedes-benz is the top-selling luxury car brand for the third month in a row. deliveries for september rising twice as fast as audi and bmw pits sales climbed 16% last month, driven by demand for suvs.
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alix: opec counting on stronger demand for oil next year. the cartel came out with its forecast, disclosing last month it pumped the most in three years. opec is predicting production by nonmembers will shrink in 2016. get more business news at bloomberg.com. scarlet: we will head back to the markets. at theyman will look micro and give us update on individual companies. julie: twitter may be cutting jobs. we don't have confirmation. andas reported friday sarah frier said they could be in engineering. the company has 4100 employees around the world. jack dorsey was made the permanent ceo of the company and this would be part of his effort to improve business. shares today down 6.5%. price line shares in the opposite direction. cantor fitzgerald said hotel
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room rates continue to improve in europe and the u.s. 'sat's good news for priceline bookings. that could be good for the company's guidance. trading higher by more than 2 percent. we are talking videogames today. it all has to do with star wars. one of my favorite topics. toctronic arts take interactive. the initial read on star wars battlefront is getting a positive reaction. there's been a lot of anticipation of the movie as well as the games. you see some video behind me. one stock that is going down, green mountain is falling. moremount and public by than 2% after it was listed as one of the short ideas on a list from an analyst. short list has
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been falling. alix: i took off work to see the movie. julie: do you just up? alix: i have a hat. scarlet: that would be a yes. alix is going to give us a review. probleme no levels solver convention is underway in manchester, new hampshire. the event stresses the need for bipartisanship when it comes to issues such as job creation and the economy. scarlet: ben bernanke urged action from washington in a recent wall street journal op-ed. he wrote that monetary policy can no longer be the only game in town. fiscal policy makers need to step up. we need to do more to improve worker skills and support r&d. joining us is andrew test of lows corporation -- joining us oew'sdrew tisch of l
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corporation and the former governor. alix: do you think there is will among candidates to do what bernanke says? put the onus on them? not much of are's will today. the no labels convention is to see if we cannot have a will going forward with new candidates. we will have new leadership in 2017. they are running right now, let's get them on record and let's get them committed. eight presidential candidates coming into new hampshire today. 1000 plus voters in new hampshire. a few votes can make a big difference between first and fourth in a new hampshire primary. this is the right conversation for the country to have. one conversation point will be on jobs. one of your initiatives is to create 25 million jobs over the next decade. we have a chart that shows the number of people working part-time for economic reasons. it has come down dramatically
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since the middle of last year but it has a long way to go before reaching levels we saw in 2007 or 2000. the lows are not as low as they used to be. thissue is whether reflects structural changes and whether part-time work is just going to be more common going forward. over to you, andrew. is the jobs, is the transition beinge part-time jobs driven by employers or employees? >> i think it is being driven by both to what we need to do is create a balance. so that those that want to be employed full-time have good, excellent jobs available to them. and those that want to work part-time have the ability to work part-time. we need to create and train people for the proper jobs that match their skill sets. alix: sort of to piggyback on work in the
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company's see sweet, what would we need to see to filter more money for capital investment orrsus a dividend buyback plan what do you need to see from congress and presidential candidates? >> we need a plan from congress that addresses the fact that we do not have the right people doing the right jobs. there just needs to be a proper employment -- and i want to leave that up to our elected officials, who promises all these jobs and then they go and argue about it and nothing ever gets done. one of the other point is we also need predictability and stability in things like the tax code, regulatory climate. we are seeing progress on trade. the kind ofve stable governmental environment that we need to be turbocharging growth in this country. we've had a very weak recovery tiered to comment earlier about
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the number of part-time jobs, we could do better. we are underperforming against our potential and i think that is what is frustrating. that is what leaves millions of people dissatisfied with where they are in life today. scarlet: have you reached out to any of the freedom caucus members? trying to disrupt the flow of congress. governor? tend think i'm not sure what you mean by that question, can you repeat it? you reached out to any members of the freedom caucus, the ones who are disrupting politics, as opposed to the presidential candidates. they are going to abstract getting work done. >> the freedom caucus, that is part of the problem. no question that that is a difficult thing in the house conference but it is not the reason they cannot get 60 votes
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in the senate to take up all the budget bills. both sides have something to the blamed for. nobody is blameless. you.et: thank we've got to leave it there. we've been speaking with andrew es.ch and john engl alix: inflation indicators are all about oil. we've got two charts showing you how closely they are correlated.
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scarlet: welcome back to
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bloomberg "market day" in new york. i am scarlet fu. alix: i am alix steel. scarlet: the bond market is closed and the stock market is open. we've been talking about is the impact of oil on macro indicators. whether it is inflation or anything else. the swings in oil prices have set the tone, starting with inflation expectations. not what the fed is looking at but how investors price in price increases. i have a chart from stephen englander of citigroup. the top shows the 10 year break even rates for the u.s. and germany, what investors think rates will look like. the bottom is brent crude, the benchmark. oil is supposed to be transitory. central banks are supposed to look past it and they say they do but there is a clear correlation between these two panels and you can see how oils move shows up long-term.
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when oil was sinking, it drove the headline numbers lower, which the fed does not use. it drove inflation expectations down as well. alix: you are looking at three oil charts. with the exception of two inflation charts and one oil chart. scarlet: what happens when oil recovers? what do the central banks do with that? alix: then it puts the pressure, we havethe brakes on qe seen. piggybacking on that, jeffries had a great note saying there's a good correlation between the 5-year and plied inflation expectation and u.s. earnings revision. the idea is if you do not have good underlying earnings growth, the yield curve is going to be dictating stock movement. if we extrapolate, what we are looking at is a chart of oil versus the s&p earnings revision. it is going to be dictated by
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what oil prices will be in the future is what earnings will be now. that is a difficult proposition. scarlet: especially given the swing we have seen in oil. since the middle of last year, oil tumbled but you kind of had this recovery through the summer before we started tumbling again. what visibility do companies have? from goldman sachs said their six-month forecast is $40 a barrel. they see the potential for more downside. the idea is if that is dictating what is happening with inflation expectations and that is dictating what is happening to earnings, can earnings recover and anyway or see meaningful growth if you have oil between 30 dollars-$50 a barrel. the forward curve does not see a $60 a barrel for another year. is that enough to stabilize expectations? scarlet: how do fed policymakers divorce oil from monetary policy
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? alix: there is stimulus when it comes to oil, we have not seen that as much in the u.s.. thatan in their note said china is levered to some of the aspects of the commodity chain that they do not get that kind of stimulus boost and that is an issue of why it cannot go out and support earnings. scarlet: we are starting to see that. everyone tries to determine how it shows up and i think we are constantly surprised by ways in which it does and does not show up. every day,at oil, that will tell you what you need to know. scarlet: we will continue talking about commodities. glencore trying to cut its debt, open to selling a couple mines. is that enough? ♪
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alix: from bloomberg world
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headquarters, welcome back. i'm alix steel. scarlet: i am scarlet fu. let's get our afternoon started with headlines from the news. we check in with mark crumpton. mark: europe issues a warning to russia. european union foreign ministers demanding russia stop attacking moderate syrian rebels opposed to president assad. they say russia should only balm islamic state or other recognized terrorist. airlines are being warmed to .void flying over iraq or iran could prove dangerous. launching missiles from the caspian sea. techies interim prime minister says the islamic state is the suspect in deadly suicide bombings. nearly 100 people were killed in ankara, hundreds were wounded. those took place at a rally calling for a peaceful solution to turkey's fight with kurdish rebels.
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the washington post describing today's guilty verdict of reporter jason rezaian as an injustice. went on trial for charges of espionage. princeton professor is the winner of this year's nobel prize in economics. honored for his studies of poverty in india and the factors linked to health in rich and poor countries. that is a look at our news. you can find the latest on bloomberg.com. back to you. .lix: glencore is cutting debt planning to cut a $30 billion debt led by a third in the midst of a rout in price is in talks to sell two mines in australia and chile. ken, can you give us some context? assetsnificant are the
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in australia and chile versus other copper holdings? >> these are small assets. this is part of the portfolio of things that glencore is trying to the marketplace. one course stock was even down today. this is a small part of the huge portfolio. it seems as if they are taking assets andh cost offering them for sale. the real gems of the business are off the table, good for the long-term. alix: does this mean glencore thinks copper prices have not yet bottomed if they are going 400ield $300 billion or nine dollars in free cash flow? lme week in is london, all the traders try to figure out what is going to happen in 2016. that is the number one topic. maybe there's more downside in the copper price. bhp say it has hit
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bottom and everything is going to go up. alix: rio says we are not going to shut down mines. is glencore leaving cash on the table when their competitors are out there producing? >> that is the point. iron ore has been the example, bhp and rio say we are low-cost and we're going to produce. -- theroyed the cup price of iron ore. but we are hearing is we do not care, we are still making money and we don't care about the price of copper. it is an interesting move on the part of rio and bhp. you would think they could be the adults in the room and cut back a little bit. every time the price goes down it hurts their bottom line. scarlet: going back to glencore and speaking of strategic moves, glencore said it was approached by buyers, unsolicited interest. why is that important? peoplee is a lot of doing a lot of deals right now.
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i have talked to some bankers and had lunch with some bankers. there's a lot going on. by them saying it is up for sale, let's hear some bids, people have probably approached them and they are going to get more serious. alix: this is a buyers market. why would glencore want to sell assets when the buyers have the control at the end of the day? presumably you would wait and sell when copper is much higher and make more money. what is the point? >> when you run of that much debt and you are worried about the market, that gets you into a market. dave told the market they will get that down. scarlet: i want to tell you something jim chanos told us. go thisn bloomberg morning. >> we know the company pretty well. a is a company that was reasonably high return on capital business enable market that has turned into a low return on capital and below
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their cost of capital. years, past handful of not the last year, this company was declining in its returns since 2012. and so it is a change business here it is not a trading house anymore. it is a collection of mines with a trading operation. scarlet: jim chanos added he's concerned about the company because it is supposed to have a great trading reputation. what they've been doing is buying things at the top of the market and looking to sell at the bottom. that mean glencore is calling the bottom of the market? >> if you are jim chanos and you like to short, you can see what he thinks. as for glencore, i think they are trying to right the ship and take a look at markets and repurpose the company. it might be smaller but it would be more profitable at the end of the day. scarlet: are there any sacred cows in glencore's portfolio? >> depends how concerned they are about debt levels.
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if someone offers the right price for the right property, he has said they will sell it. when you look at glencore's vision and you hear what jim chanos said, do you think they will sell mines and more of a trading operation? is that in the cards? >> there's thought that glencore has been a good trading business, probably be best. they are a great trading company . it sort of fell into the xstrata mine assets. now they are getting away from that and selling off and a lot of those assets and getting back more to what they know well, which is trading. alix: in london talking to big investors, what is their number one question when it comes to glencore. >> i think the question is more about the market. if the copper price keeps going down another 20-30%, who is going to be left in business?
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that is what the analysts came out last week saying, if the price stays here, there's all sorts of problems and that is the number one question. there is a huge fight about work copper's price is going from here. citigroup is bullish on copper. it is fascinating how the two halves are opposite sides. alix: as a disclaimer, peter grauer, the chairman of lp is a senior independent executive at glencore. scarlet: malaysia airlines going through and image overhaul. we feel the frustration of flight delays. a look at how airports are cashing in. scarlet: budweiser has not lost its taste for sab miller. rises the offer to buy
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its rival. will it be enough? ♪
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alix: -- scarlet: welcome back, i'm scarlet fu. eli lilly will stop development of an experimental cholesterol drug. eli lilly says the drug was not effective enough in clinical trials. the company will take the charge of as much as $90 million in the first quarter. alix: the fcc is pushing back -- the sec is pushing back the deadline for office depot merger.
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staples ones to acquire its one-time rival. scarlet: uaw is using social media to sell fear chrysler fiales on -- to sell chrysler. uaw members will vote on the proposal during the next two weeks. get more business news at bloomberg.com. alix: time for a look at u.s. markets. frommiller has the latest midtown manhattan. the nasdaq up six points. matt:: nasdaq is gaining. if you look at a longer-term chart, the last week in the half has been strong for the nasdaq. your today it had been rough in august and september. it has gained back for the most part what it had lost and is now positive for the year. check out some interesting stories. gainingsee mattel
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because parents had a cover 's newsaying that mattel management may be able to patch up the relationship with disney. tell's rising star has been driven mostly by the frozen line of toys it was making. it lost the license and it is going to hasbro now. itthey can get it back now, could gain 35% over the next year. amgen me, regeneron and are doing well today because eli lilly is doing poorly. drug, ay pulling its bad cholesterol deter but good cholesterol enhancer. it was not effective enough. merck had a similar drug that may also not be effective. it is only in phase three. that is benefiting competitors that have drugs that are proven
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effective in beating bad cholesterol. there is a note out, it talked about the cyclicals gaining over the last week. also heof the rise but lists a bunch of stocks that have no cash positions and weak cash flow on equity. keurig,cludes green mountain coffee roasters not today. let's take a look at the european close. the six-dayover, rise in european stocks, the longest since july, has ended. the stoxx 600, 39 minutes after the session began. investors are pondering the next move in u.s. interest rates and hoping for more stimulus from china. the ftse 100 snapping an eight-day winning streak. mining shares ending their
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longest run since 2000. dave rose for nine consecutive days and added 26% or 45 billion euros. it is over. i can say that many times today. those are the big losing shares in europe. rwe earlier up 15%, the biggest increase since 2008. the industry has enough funds to pay for the shutdown and cleanup of its nuclear power plant, a huge sigh of relief from rwe, encore down 6% it is in talks to in chile and mines australia. it could fetch as much as $1 billion. sab miller down 1.3%, avn best 43.50sing a new offer, 42.15, well below the price. investors still do not think it is going to happen.
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drovehinese stocks gains for asia. investing in the mainline is not fainthearted and seems unhinged from what is happening on the ground. david has more from hong kong. david: let's look where we may be heading for the shanghai composite. tom schroeder, a veteran technical analyst, he called a peek off shanghai in april and predicted a phasing out in the summer. he told bloomberg shanghai will head towards 4100 and fall back down to.400 by early as next year. that is a 25 percent rally until christmas and then a sudden 41% drop. it is a china story but really how chinese policymakers react. this played out clearly in the summer, where you get the transmission mechanism into global markets. buckle up. scarlet: good advice.
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finaltomorrow we get the word into because of the crash of the malaysia airlines flight 17. went down in7 ukraine last year in july, four months after mh370 disappeared. scarlet: malaysia's carrier has since gone private and is trying to re-branch amid virtual bankruptcy. a look at the state of malaysia airlines. months since the word saw these images, billowing smoke and wreckage from the crash of malaysia airlines flight 17. the financial impact was very quick. its stock price plunged 13% after that. it managed to climb by 33% through december but then it stopped. that is because the company delisted from the stock exchange. it is now owned by malaysia's
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sovereign wealth fund and is restructuring under a $1.9 billion revamp. capacity cuts are one of the biggest results. australia seeing the biggest cut , 39 percent less capacity. six cities cut to five. brisbane flights gone. sydney, melbourne, perth, adelaide and our when getting capacity cuts according to the for asiased center pacific aviation. north asia seeing one of every five flights cut. south asia getting similar cuts, 20 percent less capacity. europe is the second biggest hit after australia. gone, 26%ry 4 flights down. frankfurt and istanbul off the map. london, paris and amsterdam are left. there is one standout, southeast asia. it is only 1% up. malaysia airlines focusing on its core region of south east asia. a quick look at north america.
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there is a 0% change. that is because there are no flights. the only flight to los angeles was canceled in april 20 14. around the world, the company is cutting 16% of its capacity. more than one of every 10 flights no longer in service. at our own data, you can see cuts in capacity have been needed for a a while. this graph shows passenger numbers from 2012 and they had a three-year high at the end of 2013, plunging by one million passengers in the nine months after. since they are private now, we don't have public numbers. scarlet: cuts to capacity is a change and another is leadership. there is a guy who is in charge his nickname is "the terminator." ramy: that is what he's being called in some media reports. that is christoph mueller, he arrived in march 2015. the first non-malaysian to head the carrier and former ceo
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of ireland's aer lingus, which he turned to profitability in a year or so. he has a reputation for axing people. he did prove that true. down to 14,000, one third of its staff will now be gone. malaysia airlines might sell or lease two of its six airbus a three 80's. it is leasing smaller cheaper .lanes malaysia airlines assigned a lease for airbus a350s. malaysia airlines is shedding staff as well as shedding some planes. we are looking ahead to tomorrow. much.thank you so up, why coming
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passengers waiting out delays have become profit centers in the u.s. it what it means for travelers, straight ahead. alix: they collude. ♪
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alix: welcome back to bloomberg "market day." i am alix steel. scarlet: i am scarlet fu. several hundred southwest airline flights were delayed when a computer which forced the airline to manually process all passengers. it does not expect today's
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flights to the effective. almost half a million flights relate to their destinations last year, the most since 2003. air traveler pain has led to financial gain for airports. .ate smith looked into this will.i.am delayed, i go by food. >> sounds like you are like everyone else. the highest delays since 2003. people are spending more money that they did not expect they would need. they did not anticipate they would be that hungry or waiting two hours for a flight. actually there's been a revenue .witch 10 years ago it was 60% that came from airline fees, coming in and out and those coming into the airport. split, 50-50 from food
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and drinks. it is a complete business model shift for the airports. scarlet: why are airports responding in this way? rather than working with the airlines to improve the facilities and add terminals? kate: you're not seeing that much passenger growth in that area. it is volatile and goes up and down with the economy. when things are not going well, air travel takes a dive. in the past 15 years you saw a 6.5% decline in passenger growth in 2001. following 9/11. in 2000 force you saw almost a 9% jump. we showed the chart, it is relatively flat. there is not a lot of money to be made. what you are seeing is where the growth opportunity is, people buying a beer and things like that. scarlet: what you just said, $100. airlines flying spirit
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way back in the day and all we did was drink beer and eat. are they getting a cut? the airport was skimming. as an investor, what kind of risks does that make? kate: this has been a huge problem for musical bond investors that by the debt that backs these expansions, it has always been an historically. that is easy to predict. these are often multiyear contracts. you will have a hub airport and you know how many flights are coming to that airport regardless of if they are full or not. amounts ofat x an flights are coming in. to not go off unless they are full. it is harder to protect how many flights are coming in and hard to predict how much money is someone going to spend at the airport.
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how do you quantify an overpriced pint of beer? how do you quantify three magazine instead of one at hudson news. investors are not really sure. and that i spoke to rating companies, they are not really sure. what they are doing until they can get their arms around it is backing into it. it is always a plus, there's more money coming into an airport. they will say the more concessions you can sell, the less an airline has to pay. that is all they have so far. scarlet: a revolving business model. alix: thank you so much. scarlet: we will discuss budweiser, still hankering for an sab miller drank. ♪
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alix: it's 1:00 p.m. in hong kong. scarlet: welcome to the "bloomberg market day." ♪
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alix: from bloomberg world headquarters in new york, good morning. here's what we are watching at this hour, how to position yourself in a volatile market. the energy sector is where it's at. but is that the rate strategy? -- the right strategy? alix: upping the price for sabmiller days before a deadline. scarlet: an exclusive interview with the head of the copper and coal group. what john sebastian has to say about the state of mining and minerals. whereof the market desk julie hyman has the latest on what's been a quiet monday. the bond market is closed. julie: it doesn't seem like as many people are around as usual,
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there is relatively light volume relative to what we've been seeing recently. and there's relatively little movement in stocks as well. we could see a rally continuing from last week, but it is not going to be a big win does happen. take a look at the bloomberg terminal for the best and worst performers. it looks like the rally is broadening to some extent. i'm seeing energy and materials as the worst performers, utilities and consumer ,iscretionary and health care so the typical defensive groups are leading the gains right now. single drag biggest on the s&p 500 after stopping development of the key drug. julie: it's a drug that was designed to help raise or good cholesterol. there are drugs aimed at decreasing bad cholesterol, this was one that was in development. didn'tpany says it really show effectiveness, so it is pulling it. it's going to take a charge of $90 million to do so, that's
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five cents a share. according to analysts, this was a potential blockbuster drug. one analyst estimating it could be more than $2 billion in revenue by 2026 of the gains steam. is removal of that potential definitely what is sending down those eli lilly shares. mark has a similar drug and development, and those shares also been hit by these. a the flipside, amgen had similar drug approved by u.s. and european regulars this year for patients with high cholesterol. both of those stocks are higher a deal they are offering that looks better on a competitive basis. an interesting situation with eli lilly. i have a graphic of revenue and r&d as a percentage of sales, but we will have it later. alix: along with many of these other health care biotech names were the darlings of the market over the last five years in terms of health care. those are also rolling over as it rotates from the health care names into energy.
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is the catalyst and then you also have the long positions getting liquidated. julie: this is a concrete piece versus thepfizer more vague concerns that have been out there about drug pricing and about valuations. this is something that looks like it actually going to hurt their business. scarlet: julie hyman, thank you. we check in with her shortly for more individual company news. alix: let's check in with mark crumpton who has more from the news desk. isket: outrageous injustice how the washington post describes today's conviction of one of its reporters in iran. a seriesund guilty on of charges, including espionage. the judiciary official announce the verdict on iran's state-run tv, but offered no details. his lawyer says an appeal can be filed within 20 days. the u.s. and prison rights criticized iran for trying the man in secret. he has been held for more than
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one year. community college students return to class for the first time since a deadly shooting their earlier this month. killed, nineere others wounded when a gunman opened fire in a classroom on october 1. authorities say the gunman took his own life after being wounded by police. governments want russia to stop bombing moderate groups opposed to syrian president bashar al-assad. the demand follows days of aerial bombardment and cruise missile attacks. foreign ministers of the eu's 28 nations say russia's actions are of deep concern and must cease immediately. they fear president's intervention could extend a bloody civil war that is now in its fifth year. dutch officials on tuesday are scheduled to release their report into the fatal crash of malaysia airlines flight 17. it is unlikely there will be any definitive finger-pointing. instead, the report will describe the damage observed,
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and possibly indicate what weaponry might have been involved. the boeing 777 crashed en route from amsterdam to kuala lumpur in july of 2014. all people on board were killed. one hasfficials say no claimed responsibility for shooting and killing a united nations aid worker in kandahar this morning. officials say the woman was on her way to work when two gunmen on a motorcycle shot and killed her. earlier today, nato released the nationalities of the five people killed in a weekend helicopter crash at the alliances base in afghanistan. the dead are identified as to americans, two british serviceman, and a french civilian contractor. the helicopter reportedly hit an observational balloon. withdrawing the officers standing outside the ecuadorian embassy in central arrest with orders to julian assange. the officers have been stationed there on 24 hour watch since
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julian assange sought refuge there in june of 2012. london metropolitan police say that through april of this year, the cost to run the operation is nearly $18 million. julian assange is wanted for failing to answer sexual soldiers is in sweden. police say they will use covert tactics to try and arrest him. that's a look at our first word news right now. you can always find the latest news on bloomberg.com. thank you. we are back to the market and we know that stocks have been on a roll so far this month. plenty of hurdles remain as evidenced by the recent reversal of momentum, which is also less and one third of the mages and sender -- may to september rally. alix: how do you view this reversal in momentum? >> is a really tough market. year, down 2% for the they may be down 3% or 4% and
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they only have 60 trading days left to get back to flat or up on the year. the reverse momentum is biotech. 30% year to date on average. now they are back to flat. they have a lot of tough decisions to make in the final two months of the year. in a beario techs are market. they have been for a while. you looked under the hood and found a couple of interest in facts her. there are two kinds of companies, solidly profitable and those who are not. nick: the ones with no profit are up, the ones that don't are down. investors are looking for names that have promise for the upside. on the regular line, profits aren't important. shift?e expect that to the guys who make real earnings are going to take up the helm? nick: he does feel that way. we see investors looking at biotech, and they do seem to want to split the difference and
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look at biotech names that have good fundamentals but aren't profitable rather than the more speculative names. scarlet: have to cell phone analysts play into this? they didn't capitalize on the selloff. nick: that was a mr. jimmy. when we looked at recommendations from the peak three months ago to the trough last week, all the analysts did was upgrade their favorite names to strong by and pull the plug on marginal lands to hold. they didn't upgrade the whole group, they kept the whole group fairly constant, just picking and choosing what they like best. alix: the other thing has been dividends. there's a great chart of the number of dividend players, it's really been on the rise. what happens to these guys as the credit markets seize up, the fed raises rates. does this not support the market? nick: dividends are not on a because profit market -- the margins expanded. payouts helped buoy the
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ratio. i think it's going to slow dramatically, corporate boards hate to cut dividends. --y are not going to want to revenue growth needs to pick up and it's not happening yet. scarlet: what is the bigger priority? maintaining the dividend, growing the dividend, or being able to buy back shares? nick: the priority has been buybacks. corporations use dividends to signal their earning power and the potential earnings growth of the company. but it is stock buybacks that we see as the primary way to hand cash back to shareholders. that will be an important factor in q4 as well. if this slows,x: what is going to prop up the sales market? is the bottom-line question. q3 is going to be orders down 2% to 3%, maybe flat if we get lucky. there's a lot of focus on q4 guidance.
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the s&p is looking for earnings growth of more than 10% for q4 versus q4 last year. a?x: is that accent nick: that's with energy. that's about 4% of the energy earnings. is 24%, 25% of earnings for the market in q4. alix: thank you, apple. coming up in the next 20 minutes, the latest on the showdown brewing between anheuser-busch and sabmiller now that a $104 billion deal is on the table. alix: goodell 62 $7 billion purchase of the serious challenge to hewlett-packard? scarlet: the read on copper. we have an exclusive look at it you -- exclusive interview. ♪
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welcome backlix: to the bloomberg market day. lilly will stop development of an experimental cholesterol drug with blockbuster potential. the drug wasn't effective enough in clinical trials. the company will take a charge of as much night -- is $90 million. ferrari is off to the -- expectingsing to price high. alix: uaw members at fiat chrysler will vote for contracts in the next two weeks. it narrows the gap between so-called tier one workers and
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new are hires. both groups of employees would have the same profit sharing plan. scarlet: you can always get more business is that bloomberg.com. julie hyman has a check on some individual company movers. there is some m&a to talk about. julie: it's in the technology industry. this is the deal we knew was coming, dell agreed to by emc for about $67 billion. it is the largest tech deal ever. we're talking about a price of $24.05 a share. emc is trading higher, but vmware is sharply lower. emc is not getting much of a lift because we have been talking about this deal now since last week. the premium we're looking at is about 28% if you look at the price before reports of this deal first began to surface. vmware is lower, we will see shares of this tracking stock
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issued for about nine dollars a share. it sounds like there is concern about more supply of the shares coming to market with these tracking stocks -- striking shares being released. that appears to be what's putting pressure on vmware. the company came out with numbers this morning for earnings, its guidance on earnings above what analysts had forecast. that's not helping the stock. i was watching shares of oracle, i reported earlier that oracle will not step in to try and make competing bid for emc. most analysts say they don't expect any competing bids for the company. all of this caps off what has been a very fertile time for m&a and technology. take a look at my bloomberg terminal, i have a five-year look at m&a quarter by quarter. this is the number of deals, the blue lines of the value of deals we have been looking at here at we seen a big surge in the value of deals here in the fourth quarter heading into the fourth quarter looks like it is hidden by my computer.
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the number of deals is down for the third quarter, but the value is significant in part because of this record deal. scarlet: julie hyman, thank you. more on that emc dell deal later. today the world's largest brewing company raised its offer to $103.6 billion and sabmiller has rejected three previous proposals, for an analysis of this fluid situation, our chief business correspondent matt campbell joins us from london. what is different this time? sabmiller rejected three previous proposals, how different is this one? --matt: it is a substantial increase. starting to look like something that is going to be very hard for the sabmiller board to say no to. their largest shareholder is
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already on board, they were on board with the prior lower offers. they are even more on board now, presumably. the sabmiller board is meeting in london today, i think everyone expects to hear from the very soon about whether this will in fact bring them to the table. alix: the share price for sabmiller is still trading significantly below the offer price of $43.50. it doesn't seem like the deal is going to get done by that. att: there's a little bit of hangover from pfizer astrazeneca , if you cast your mind back a year to that situation. it's very similar. us-based or certainly looking to acquirer buy a storied important british company under deadline pressure because of the system that exists here in the united kingdom about 28 day timeline for these bids. ellen fell apart. i think there's a little bit of reluctance about investors to find themselves in a similar situation again. but this one does feel certainly
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closer to being a concluded situation then after seneca pfizer ever did. reporting lot of the indicates that many people think around 45 is where the deal gets done. does that set up base with a different scenario from what has been offered? ist: what has been out there sabmiller is looking for something in the range of 44 to 45 pounds a share. this is 4350. it's not the final offer, there is the possibility that if sab comes to the table and opens of the books and cooperates, that number could edge up just a little bit higher. i don't think this is the end of the game, but we are certainly getting closer to something they can probably say yes to. matt campbell joining us from london with that deadline creeping up. alix: still ahead on the "bloomberg market day," does the largest acquisition -- technology acquisition ever make sense in a world where big tex seems to be slimming down?
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scarlet: welcome back to the bloomberg market day. largest technology deal ever is in the works. dell is offering to buy emc for $67 billion. there are a lot of questions regarding the deal, for more let's go live to bloomberg radio to talk to carol massar. carol: it could be the largest technology acquisition ever. we welcome everyone was watching us on bloomberg television, and withis bloomberg radio carol massar in new york and cory johnson. let's talk about dell acquiring emc. with us is anand srinivasan,
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senior intelligence for our in-house group of experts. it's been floated out for the last week, we were getting ready. it's a huge deal, the largest analogy acquisition ever. dell is going to have to take on a lot of debt to do it. is this something that makes sense on a strategic level? anand: it does. the fact that a pc heavy company at an enterprise storage heavy company have come together to broaden their respective platforms does make sense on a strategic level. that said, the transaction as you mentioned is large, and it is complex, both in terms of financing needs, coupled with the fact that one entity is private, the use of tracking stock, the potential ipo of a small security company, i don't know if that will be talked about it all. and in silver lake and michael
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dell are contributing to the deal as well. in terms of the size as well as the complexity, this deal is unusual in the corporate i.t. landscape. but it is much needed. [no audio] cory: a tech company where you have services and security and pcs and servers all under one roof, maybe it isn't necessary. anand: that's a fantastic question, cory johnson. the event is just the beginning of the transformation. the fact that emc is undergoing restructuring is already out there. there undergoing $850 million cost cut and they are
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dramatically trying to revamp the company for the cloud model. arguably, again, this is a big if. the emcwere to complete transaction by mid next year and undergo a dramatic revamp of both the dell part of the business and the emc part of the business, as a private entity towards the cloud model, maybe they can pull it off in a couple of years. we've seen technology companies getting simpler and simpler, focusing on a few businesses that make sense. doesn't this kind of go against that? exactly against that. the point remains that just because it is simple doesn't make it successful. carol: fair enough. anand: the transformation that is going on in corporate i.t. right now is pretty drastic. everybody is pivoting towards the hybrid cloud model, corporations start to use i.t. in a typical cloud manner. the point is, the cloud they
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want to the example five by the likes of google, facebook, amazon. that is the cloud they want. faster, cheaper, more flexible. corporate i.t. doesn't want any part of it. you change or you die. cory: also in this, emc storage business, i have a great love for joe tucci, but their storage revenues have been declining dramatically year after year, just 3% growth in storage year after year. it's not like dell is acquiring the emc of five years ago. anand: absolutely true. they are doing it partly for the vmware software company, which is part of the transformation towards the cloud model. you got to figure out what you want to do with the storage assets. storage in and of itself has value. it is growing. and there is value on top of it in terms of the software that emc provides. the question is, how you transform that into the cloud
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model? i think that transformation is better done private. srinivasan, thank you. about 1.5%,re up but they are differently off their highs of the session. you, carol massar. we are working out the kinks with a technical of getting radio on tv. still have the bloomberg market day, copper keeps declining, it's not as a surly reflecting supply and demand. the head of the world's number two mining company sounds the alarm on short-sellers. we have been talking about this for a while. shortselling copper, great story. we'll be right back. ♪
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alix: from bloomberg world headquarters in new york, welcome back to the "bloomberg market day."
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scarlet: let's start with the headlines. we check in with mark crumpton. presidentialratic contender martin o'malley says the nation doesn't just need new leadership, it needs a new way of governing. om alley was the first of eight candidates from both parties participating in a new hampshire event hosted by no labels, the independent group was created after the 2010 midterms to help bridge the divide between republicans and democrats. ,n the gop side, donald trump lindsey graham, chris christie, and john kasich are also speaking. bernie sanders and former virginia senator jim webb address the gathering by video. in turkey, protesters took to the streets to condemn the suicide bombings that killed nearly 100 people and wounded hundreds more at a weekend peace rally. rallyeally took place -- took place as the coordination was trying to be made between government officials and authorities with the protesters.
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but the protesters accuse officials of not taking measures to help prevent that bombing. hundreds killed, hundreds more wounded and the protesters even accuse the government of being behind it the deadly attack. the interim prime minister says the islamic state is the primary suspect in that bombing. in other news on this monday, princeton professor angus deaton is the winner of this year's nobel prize in economics. the scottish born man was honored on his studies in consumption policy and welfare. he is best known on how individuals consumers make choices. pennsylvania is facing a deeper budget deficit, and republican lawmakers been gaining is the answer. they say it's better than raising taxes and they are protecting hundreds of millions of dollars in one-time licensing fees, plus collections from taxing the new steam of profits. wouldtension of gambling be the nation's third in six
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years. the associated repass -- press is reporting the appeal is unlikely to be scheduled today. this weekend in the game versus the nets, utley slid into second base and broke the leg of the shortstop. m kobe chief ava officer -- m chief said it was an illegal slide and he will miss the rest of the postseason. aim three is tonight at citi field in new york. that's a look at the first word news now. you can find the latest news on bloomberg.com. alix: i thought of you when i heard the news. market: i almost tax to do. alix: i just found out about it from you. mark: there may be baseball justice. scarlet: back could get ugly really fast. mark crumpton. thank you.
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according to the head of copper or rio tinto, the world's second-biggest mining company. metal has lost more than 40% of its value since prices hit a record in 2011. john sebastian jock said short-sellers should be wary. we arehe tougher space not trading on fundamentals. i think a good example is there are lots of shortselling in copper. we see the pickup in terms of shortselling copper in china a few months ago. -- decided to change the rules, where people were no longer authorized to short sell, and therefore what we experienced were a series of copper for ause proxy for the chinese economy and started to short sell. today, if you were to look at it without any guidance on the
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if you look at where the prices are compared to the cost curve, there is something that doesn't stack up. we believe that there are a series of players which are using copper as a proxy for the general chinese economy, therefore taking a position. it can be a very dangerous game in the medium and long-term because as we mentioned earlier today, at some stage we expect the copper market to move into a deficit. you don't want to have a short position when the market is moving into a deficit. >> the question is how long do you think it will take for that process to shake out? so does move back to supply demand fundamentals? >> i hope that within the next two to three years, we move into a deficit position and therefore we enjoyed a more fundamental type context. fundamentals, if a market place copper iron are dominated by china, copper is 40%.
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does that concern you in any way? at a time when people are so bearish on china? i can read through china and various ways, by the official , how do via yourself you see china? >> as far as copper is concerned, we are not concerned about china. as you said, china council more than 40% of the copper consumption. following is -- i have mines in mongolia and a $2 billion copper trade with mongolia. to have trouble with racing -- placing my product? no. does china have issues in raising credit because all the business we are doing in china is based on reserve credit, the answer is no. ,e had concerned the year ago
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the answer was yes and we were very careful. but today, i'm not concerned. there are a couple of dimensions which are important for my perspective, which is i believe that the chinese government has the will and has the financial means to sort out the issue if there were an issue. if you look in the past, they have a very -- [indiscernible] there's lots of kpi in the marketplace, and in the recent weeks, if you look at the inventory, the metrics are moving in the right direction. i don't want to sound naïve, but back to the first point, as a businessman, when i look at the other book and i look at the evidence when you place the product in the marketplace, do you have any choice? absolutely not. scarlet: that was john sebastian and what's really
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fascinating to me is that when you have these big miners, these very different views on china and they base their business on what they think china is going to do, and how healthy china is, they are totally different. the first thing he will say is i have no clue what's going on with china. it's like a black box. that's not what you heard from rio tinto ceo. hoffman of bloomberg intelligence was telling us the way china uses copper is not necessarily a reflection of how it actually uses copper for industrial reasons. it's an actually a cheap loan for so many chinese companies and investors. scarlet: you wind up importing copper, you take alone outside of the country off of that, take the money into the country and put it to work in high-yielding where it is's supporting imports. you don't know how much of the stockpile you see there's being used for financing or friend user demand. the result of it is you have rio tinto committing to copper production, they are not selling anything, you have glencore that selling assets.
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of thee taking money off table, rio tinto is taking advantage of supply coming off-line elsewhere. it also creates this divergence among the profitability of these miners when it comes to copper. alix: you can't get visibility, and what if that extends outside of china because of what the lme says stockpiles of copper out a seven month low, but who knows if that's because of financial engineering because of chinese investors or because companies are actually using it? alix: lots more ahead on the "bloomberg market day." break, we are to bringing you a press conference at princeton, where an economist is speaking about winning the nobel prize in economics. more on that later. ♪
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scarlet: welcome back to the "bloomberg market day." alix: time now for the business last. the first story, a big blow to the man known as the bonking. investors pulling $47 million from janice local, run by bill gross. analysts say that his performance this year trailed, and 60%firm lost 1.4% of other and constrained bond funds. backet: the sec is pushing the review of the staples and office depot decision. staples wants to play -- wants to acquire his rival. two executives fled the
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scene with their shirts wretchedly ripped off their back after they were allegedly assaulted by union activists. they were protesting the airline for planning job cut the longer hours. scarlet: we want to go back to that news conference with nobel prize professor agnes deaton, speaking right there. understandearchers consumption on their flow through to the economy. >> while he did it. people keep congratulating me today, and i keep thinking, for what? it's really because it takes a long time to sink in, and it's really hard to believe that i'm not going to pinch myself and wake up and there will be no phone call, and all the rest of it. i'm still getting used to it.
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i do want to say a few things. i really want to thank princeton for what it has done for me, and for the place it provided me to colleagues amazing over the years. what i wasvided looking for when i came here from britain, which was a place where you could work without having to worry about all the extraneous things that go on in so many universities. that has been a truly wonderful experience for me in princeton as a whole. wonderful graduate students, wonderful students, one of colleagues. i wanted to say a little bit the school. for me, the woodrow wilson school is one of the parts of this i like the most. that nobel laureates don't usually come from public policy schools.
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the woodrow wilson school has a very different way of going about its business than most other public policy schools. in that it really believes in academic excellence, then all of us are economist in the school, and their members of one of the world's best economics department. , think, if i can count right this is probably the third nobel prize that has come to the woodrow wilson school, which is three more than pretty much anywhere else. [applause] king: many magnitude -- deaton: many magnitude more than elsewhere. it's a model people are challenged, and the feeling that to some extent of it is are hands, it's hard to have policy practitioners, people really interested in policy. if you look back in the record, i just don't think that's true. there have been terrific people, my ex colleague ben bernanke
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will be talking here next week. alan krueger, they just a whole host of people who have come up through the woodrow wilson school, met the highest standards of academic achievement. as is like a nobel prize to the woodrow wilson school, in a sense. i think that's a truly wonderful thing. [applause] angus deaton: i would just a little bit about my own work. i always thought i was unlikely. alix: that is angus deaton, the princeton university professor who won the nobel prize in economics. we will check in more to get some context around that award. we had over the julie hyman. market on flata day. julie: it is a holiday for many people, kids in new york city
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are off school for example. taking a look at major averages, we are seeing a mixed picture right now. i should mention the bond market is closed today, even as stocks continue to trade. it's worth mentioning that we heard from fed officials over the weekend and today, we heard from stanley fischer, the fed vice chairman over the weekend. reiterating the theme we have heard from so many fed officials, there is a likelihood that we will see a rate increase by the end of the year. it doesn't seem like the market is buying it. yes, the bond market is closed. i have been looking at work on my bloomberg terminal -- wir probabilityatp, priced in. it's a slight increase. we have been seeing a number have her closer to 33, 30 4%. but nonetheless still lower than you would think, considering what we have been hearing from federal reserve officials. move in the dollar.
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the dollar has been taking a dip, trading at a seven-week low. that would appear to reflect these diminished expectations of rate increase by years end. his similar story when you look at emerging-market stocks today. the msci emerging market index heading for its highest close since august 11. so before the selloff, we see an increased flow into emerging markets as well. and finally, a quick check on gold, trading at its highest since july 6. you can see a better than .5%. scarlet: thank you. alix: jinx. since the beginning of october, , hostingmarket surge biggest short-term gains. scarlet: kim is advanced be sustained? joining us is vincent cignarella. we had a little august and september emerging market currency. things have turned around.
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the question is, we swung from extreme pessimism to extreme optimism. why exactly did they rally? somewhat. a lot of it is on the back of what happened with the federal reserve. anecdotal with the fed not emerging markets become an attractive place to be because of yield. and the carriage rate is reignited. scarlet: does any of this say we were really short, these high beta currencies and we're going to cover those shorts now because the fed didn't act? what part of that is going to be a technical basis? vincent: you are seeing the trade unwind and folks taking way verynt a very long quickly. it doesn't continue in one direction at all, all the time. the fed in some of the data took some of that the gas out of that trade and you are seeing serious profit-taking. some folks are getting back into
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long positions, they do offer a very attractive interest rate differential trade. if the ideas the fed isn't going to do anything until next year, there is some time to perhaps earn some kerry and make some money. scarlet: hsbc was comparing what we saw in the emerging-market currencies this time of what we saw in say the 1990's. are we at the point of a crisis? vincent: it's not a crisis. it was a complete the different situation. this is backed by the people's bank of china. with 3.5 trillion reserves behind any tacit uploads. there's a lot of ammunition to slow this. will it continue? it's very likely. the foreign reserves of the chinese government continue to decline. it is still a down trend. as far as global growth is
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depressed, those reserves will continue to be deflated. mentally get to the point where that is the crisis issue i would say to look at. once china and watch china reserves. alix: looking at the dollar, weekendtanley had this and talk about the dollar, that we have seen peak dollar that's why you're seeing a change in the momentum trading in the s&p. we are selling health care and biotech and we're going to buy industrial energy. you laugh i said peak dollar. vincent: i try to make the higher the lows, that's why on the side of the business. it's the most dangerous game to try and take the high or low at anything. if you want to say perhaps temporarily, given what we've talked about in the fed not doing anything for a while, they give some room for the dollar to trend sideways and maybe decline. but monetary policy diversions favors the u.s. longer-term. the next step of the fed will be to increase, where you have the
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majority of countries around the world with potentially decreasing. as long as the market is focusing on interest-rate and monetary policy being the driver of currencies, then i think the fed has to move. scarlet: thank you, vincent cignarella. he chuckled when you said that. alix: coming up on the "bloomberg market day," you are now watching a live shot of the press conference of princeton university professor angus deaton, who won the nobel prize in economics. his research focuses on consumers in poverty and we learn more about him when we come back. ♪
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angus deaton: i had a pretty good idea of what was and they say nice things about me. scarlet: you are listening to
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the winner of a nobel prize in economics. deaton, a professor at princeton. he analyzes consumption, poverty, and wealth. in awarding the prize, they stated to design economic policy that promotes welfare and reduces policy -- poverty, you must understand individual conception courses. angus deaton has enhanced this understanding. for more context, we bring in brendan greeley. tell us more about angus dean himself, how is he seen by his peers? brandon: you should look at the state of economics before angus deaton and after augustine. economics was moral philosophy, we imagine what people might do when we build models around these assumptions of what those people might do. angus eaton is amazing with data. he looked at household survey data and he made 11 advances in
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econometrics, the study of how we use data. that sounds boring, but it's very important because people are different. you give the same economic stimulus to a population of people and different people, who have credit, who don't have credit, will respond differently. angus deaton is the forefather of looking at economics that way. more recently, he has been studying welfare. look at our, we guests. the other thing you pointed out as you can just look at the aggregates, how overall economic growth is doing. you have to look at how it is distributed among people, because that informs how people make choices. alix: isn't that like studying happiness? how do you quantify that? brendan: executive the right question. he is like the zen philosopher of economics. every time someone says what is the answer he will come back and look at the data and say what is the question? he had a paper that says a lot of people who don't have children on average are happier who people who are with children. a subjectknow that's
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near and dear to the hearts of everyone at this table. but he looked at the data and how was pulled together and he said there might be something going on here, which is people who might be happier with kids have them in people who might not be happier with kids don't. the question is important. scarlet: brendan greeley, thank you with some context on angus deaton. alix: much more ahead on the "bloomberg market day." today, emily chang will sit down with apple's cofounder steve wozniacki at 5:45 p.m. eastern. we don't want to miss it. scarlet: is he going to give us a review of the movie? alix: i hope so. scarlet: who played him? seth rogen. ♪
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david: welcome to the bloomberg market day.
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from bloomberg world headquarters in new york, good afternoon, i am david garrow. it is the largest technology deal in history. dell is buying emc for $65 billion. what this means for the company and their competitors. after a turbulent 2014 that saw two crashes, malaysia airlines is try to turn itself around. hannah las vegas strip is getting bigger. we take a look at the companies betting on the expansion of sin city. let's head to the markets desk. julie hyman has the latest on this columbus day. julie: which means, apparently, some people stayed home. volume is about 20% to 30% lower than average. that much direction in stocks.

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