tv Bloomberg Markets Bloomberg October 16, 2015 10:00am-12:01pm EDT
from bloomberg headquarters in your, i'm betty liu. his whahere's what we're watchig this rfid investors up slightly. it is up to the fact to maintain stimulus. republican fun honor donald trump system with bloomberg television. he is talking tough about business, politics, china, and janet yellen. we will tell you what superstar actress jennifer lawrence is saying about hollywood's gender pay gap and what exactly is going on. and we have some breaking economic news right now. the university of michigan index is out. julie hyman is breaking that for us. coming and better than estimated, rising to 92.1% this month. 89 is what was projected by
economist. coming in well ahead of estimates and rising over last month. interesting, it is driven by lower income americans projecting that wage gains will accelerate. we have seen following energy prices continuing to some extent. that has happened lower income americans as well. the incomethird of scale projecting their pay over the next year will increase by the most in more than a decade. that seems to be helping this sentiment number here as we see it come across this morning. the sentiment, by the way, in the face of what has largely been worse than estimated akamai -- economic data, even over this morning when we had factory orders following once again. let us look at the major averages and we see them whole relatively steady at the wake of this report. , on my terminal the s&p 500 we have been lower than the opening bell. lot of not seen a
reaction yet to these numbers as people digest them. it has been a strong week however for stocks, we should mention. stocks up measured by the s&p 500 by 7/10 of a percent on the week. it is the third straight weekly gain. it looks like a strong october so far. we are not halfway through earnings season yet. we will see what all happens. betty: maybe there is not much reaction because it is a little bit confusing. one day, you're getting good data in the next day, you're not. you have no idea where the economy is going to earnings is telling a story today. julie: general electric is out with their numbers and it be analyst estimates. the company has been winnowing down its business, getting rid of its finance assets. it has engaged its energy and transportation units, although it's all weakness and its industrial units. again about 1%. general electric is not a stock that tends to move an enormous amount on earnings good or bad. 1% gain is not that unusual.
schlumberger out with this earnings and they are not feeling the pinch of lower oil prices. the shares are falling as well. the company has not seen the bottom for oil prices interestingly. another company hurt by oil and gas. it has an oil and gas unit and said that profit was weak in that particular part of the business. the shares down 8/10 of 1%. betty: julie hyman, at our markets desk, thank you much. vonnie quinn has more from our we starterate lonny: with big oil. 10 major international companies to claim their support for action on climate change. including bp say that their goal is to keep the increase in average global temperatures within two degrees celsius and 3.6 degrees fahrenheit. absent from the groups are u.s. producers -- not a single one. here's bps fault o paul duffy.
>> if they voluntary organization. some may and some may not good what you saw was 10% of the world's energy supply, 20% of the world oil and gas production. i think other companies will join us. we have a north american company in new mexico. we have a good representative group deeply committed to working together on these fronts. vonnie: the accord is expected to be reached, at the united nations summit in paris next month. to count are starting them out, but joe biden sending a signal that he is still considering a run for president. biden has been asking democrats about his prospects in early primaries for the president shall nomination. one of biden's closest advisers is telling former staffers that their services may be needed. vice president joe biden is still signaling that intention. we're going to move on to
texas wildfires. they have destroyed about three dozen homes. the place has torched six square miles. the forest service says that it is calling in an air tanker to battle the fire. people living in the area have an urge to evacuated four years ago, a fire in the same area wiped out 1600 houses per california police meanwhile say they expect the mud covered interstate to reopened to traffic this afternoon. interstate five north of los angeles was closed after flash floods stranded hundreds of vehicles and for some motorists to take refuge on top their cars. and that is a look at our first work news right now. you can always find the latest news on bloomberg.com. betty: vonnie quinn, thank you so much. investors appeared to be running away from anything that smacks of risk. all that reeks of market volatility. the big buyer beware flash lines in the attitude toward ipo's. you saw that this week. you saw a group canceling sl.
pressure chain albertsons postponing its offering. first data priced it shares below and marketed range. alex barinka is back to recap what has been a busy week for ipo's and no ipo's. alex: and has been a busy week for me, but there have not been a lot of ipo's. first data is an interesting one. you heard julie talk about that we had some weeks of gains for the s&p 500. i was talking to matt yesterday and he says it is a rested rise. that uneasiness is allowing people to step back and wait on the sidelines and not as silly want to take a chance in a new stock. for the likes of albertsons, a supermarket with low growth and a lot of debt, that is not necessarily an attractive thing to jump into. you also have to keep in mind that we are coming to the end of the year here. andortfolio managers investors are looking at where they are, is now the time to take it that on new shares when you seen a lot of these price
under or trade down? people seem to say probably not. betty: if you can wait, maybe you should wait. does that mean the window is closed for the whole year? alex: there are a few companies doing better. albertsons and first data have not done as well. the buybacks cut off their offerings with a price down. when they started trading couple weeks ago, the ended up pricing below the range since then, the shares have actually traded through the range. they are up around $19. couple dollars below that. it's a new company and a new space. those are going to be the kind of things that my sources and people on the ground are saying how the most opportunity to do well. ferreri is another one still in the pipeline that we are keeping an eye on. they are on the roadshow right now for the u.s. events. that is another big one coming down the chain this year. betty: that will be a fun one. who doesn't like ferrari? alex: i would like to look at a
nice car outside of the stock exchange. betty: alex, thank you. now to an investor who has managed to escape some of his uncertainty in the market, chicago tech and media type seal thehael pharaoh deal this week to sell his company to ibm. the medicalo buy devices company for a billion dollars to bolster healthcare services and center around a business unit called watson health club. let's get more on the deal for michael himself. several years ago, we were talking at titans at the table and you are one of our chicago titans. we knew you were going to do something big. sellinge are -- the idea. are you glad the deal is done? michael: it's a great deal for every one. watson health care will change the world and it merges technology and radiology. betty: exactly how? michael: what we were designing readrch was the ability to
images using artificial intelligence and ibm is gone to supercharge that with their watson infrastructure. betty: was it hard deal to get on? did they want to buy this more than you wanted to sell it? michael: i think it was pretty simpatico. was that we had the peanut butter and they have a chocolate and it was a great reese's peanut butter cup. it was a great, nation. betty: how did it come together? michael: we were meeting with them at their in silicon valley and seeing what they were working on and they saw what we were working on. we went here to new york to their watson offices here downtown. when we both saw it, dr. john kelly and i were meeting for the first time. we saw each other and we decided would be good to bring the two together. betty: when you put this deal together, it seems to me that ibm and others are really looking for new technology in medicine or in health care. this is going to be one of i'm assuming several investments where you take something like imaging and you put it into the
cloud. you add ai on to it? watson's cognitive computing power does change the scheme. it's a game changer. what could've been a billion-dollar market opportunity tended to attend billion-dollar market opportunity for a company like ibm. betty: medical technology -- there is this hot news out there right after you are familiar with the company. -- iel: i sent them at the sat with them at the conference leslie. betty: what you think of the controversy right now? michael: elizabeth is one the most successful offspring ores and she is going to the stage where people do not like new things. betty: the fda? michael: the fda is one of the toughest things to deal with health care. there is a lot of regulatory issues that often was need to be these great ideas. that is why marched partner with knew that we could
design the systems. we know that there were be a lot of hurdles to get each diagnostic system approved. it's very similar to what elizabeth is doing at there are no string out. -- theranos right now. each type of blood test has to be approved by the fda. people do not just want elizabeth to succeed. these testsl of companies that are not happy that elizabeth is trying to do it at $.10 on the dollar for what they charge. betty: are you suggesting that there might be some other motivation behind this? behind the fda scrutiny? michael: i'm just saying that elizabeth has her work cut out for her and that the world will be against her for a while. what she is doing is unbelievably great for consumers and for the world. betty: by the way, and a lot of people say that the regulators have to catch up with the new technology. right that in media, to, as well. it's not just in health care but
in other areas as well. michael: i would agree, yes. betty: michael, stay with me because we are talking more about media because you not only invest in health care, but you invest in media and chicago. we have more with michael. coming up on monday on bloomberg >, an extensive interview with none other than jamie dimon. catch the interview at 9:00 a.m. eastern time right here on bloomberg television's ,. ♪
world and have been dismissed or are in the process of meeting the bank. bankers typically assist each other with training and compliance test, but goldman sachs is taking a higher line on that. volkswagen's share of the europe on the market is falling and the slide began when the cheating scandal emerged bw failed to keep up with competitors on the continent last month. ae european registration up --, 1.5 percentage we can points weaker than the overall number. the investigation of the admissions tests are widening even further. ge is posting third-quarter earnings that beat analyst estimates. sales were up in the aviation and transportation units. overall, the revenue fell short of wall street estimates. the country has been selling off its finance business to focus more on its core manufacturing. you can all get more business news at bloomberg.com. billionaire jack ma is boosting his bet on video streaming. the company has offered $3.6
billion for a remaining stake in the popular video streaming spit site. youku is referred to as china's you too. it's to emulate nflix and we are back with someone who is also making some big investment in mediatech, michael ferro. we know through reports that you own the chicago sun-times. will say thatle you had your big payday out from selling to ibm. are you going to invest in one media? michael: i'm investing in media, but applying artificial where we can. in fact, we on one of the largest live streaming networks right now in united states called the queue. cube, thereon the were 300 simultaneous highs will football games being stream, more than the total amount of nfl games being
broadcast. betty: those are dedicated fans, by the way. michael: you have moms of people and as been doing incredibly well. the reason that we describe this -- design this live streaming platform is to test software. we are able to use artificial intelligence to keep learning and going through all the videos and do actual clipping based on the six human emotions from happiness to sadness and to actually build clips. over the next year or so -- betty: practically applied, what does that mean? michael: let's just say that there is a two hour football game. during it, your time to find out what tha is that great six second moment. right now, you do a clip. producers and directors have to find that clip and edit it. we are showing the computer the clips we are looking for based on sound and visual cues. you can put hundreds of hours -- betty: the people in the audience? video itself.the
the booze and the oz and the cheers. the computer takes that clip and built a whole clip library. we imagine in the coming years we should have a product out with some of hours of film that they shot or youtube videos and we will find the best moments. for them andthem then select based on the clips that we do. betty: so how do you match that up with periscope and other live streaming? michael: periscope and meerkat are giving anybody the opportunity to live stream. the amateurused on sports area, specifically high school sports. betty: it's kind of untapped. michael: it has been growing exponentially, hundreds of percent of growth year over year in the amount of broadcast to teach the computers first. you have to test it out. i imagine espn would love something like this. michael: we have been talking with cbs and es and. betty: what about twitter? they are trying to create more
moments on the platform. michael: we are talking companies like facebook. there's a lot of video out there, but everyone has small attention spans. everyone is looking for that great moment and that is what the cube is about. betty: are you going to invest old media? i know that the question in chicago. are you going to invest in "the sun-times?" michael: when i look at old media, i look at as a distribution platform. there have been properties that are valued quite fairly right. if one has new digital products where they can distribute and advertise through those distributional channels, i do think there could be some goodbyes in the future for us. betty: do you think media valuations are getting out of hand? you have buzz feet at over $1 billion and vices that billion now -- are they overvalued? michael: they are great
companies and they are the future of media. i think buzz feed and vice and fox are awesome. i do not think that they are overvalued. betty: seven years ago, they were not valued at all. michael: by the way, journalism have never been bigger than the world. there's more content matters ever been. there is still people wanting content as he talked about earlier with netflix and amazon meeting content. we think this is a great time to be a journalist and in media. there is a huge growth trajectory. betty: particularly, you say and video and in live streaming and capturing those moments. michael, great to see you. thank you for stopping by. michael ferro. we are talking campaign finances. what donald trump has to say about super pac. that is coming up next. ♪
betty: welcome back to "bloomberg market day." it is time for our friday liquid julie hyman and eric. investors are increasing their u.s. etf's despite having similar products on local changes. i'm here with eric to talk about this. they have their own on the own local exchanges. is it a question of liquidity that they are coming to the u.s. for somewhat etf's?? eric: you nailed it. there are a few other wants like cost and just trust in the u.s. market, but liquidity is major. there are 6300 etf's in the world. the u.s. has 25% of those products. 80% ofunts for the trading volume. you have these companies coalescing in the u.s. market. almost 200ers, it is billion of the 2.1 trillion held by foreign institutions. what is interesting is that the
top 40 or 50 traded etf's -- the liquidity is so massive in them of the last couple of years that it has become a u.s. export. people are actually buying these funds just because they can go and and they're coming in like $50 million. they would be too much of the market in their local change. they come in and they are unnoticed and they can do their trade quickly. they do not really move the market because of how much liquidity is here. julie: we were talking during the break and you were just in trinidad. i take it that this has something to do with finding out more about this phenomenon. eric: i've been learning about this in the academic sense for years, but i went to trinidad and what i saw there was that even in this frontier market, you have asset managers there that are curious and investing in u.s. etf's. for them, they do not have products there to do that. julie: i imagine that there is not a trinidadian etf. eric: that is part of the reason i was there. etf launch their first ever
, but it's an etf type index fund. it's interesting. it was designed to give locals exposure to the trinidad market. with 16 local trinidad stocks plus three energy etf's, because energy is such a big part of their economy. in order to get bigger companies that are there, that used etf's and this product. it was interesting because that is a way that a u.s. etf is the give me for a case like that. we need an energy slug here, so let's use the u.s. energy etf. julie: i'm curious though. if the u.s. is so dominant in terms of volume, why is a country like china that its ownd to create home-based etf rather than creating one in the u.s. or having investors buy into an etf that is based in the u.s.? they're that case, planning etf like that. i was speaking to people at that company that plan etf that hold u.s. etf's as a portal to liquidity. in that case, they were holding 16 local turner that stocks. they were trying to essentially
create the s&p 500 etf in the local market. there's no tender that etf here -- not yet anyway. that is why they did that. about how u.s. investors are effective, they're looking at lower trading costs. when you see foreign institutions coming in, it is a net positive for the u.s. investors because it does bring down the cost to get in and out of the etf. julie: got to leave it there. eric, thank you so much. betty. betty: julie hyman there with a look at the etf markets. still ahead, one on one with the donald. stephanie ruhle sat down with the republican front-runner in new york. they talked politics, the economy, and the fed. stephanie joins us next. ♪
that is what you would spend that much money on it. welcome back. i'm betty liu. let us start with the bloomberg first word news this morning. vonnie quinn has more from our news desk. vonnie: we actually start and hungry because it is closing its quarter with croatia at midnight to stop refugees. a razor wire fence was completed earlier this week. nearly 40,000 migrants have entered hungry this year, most of them trying to reach germany. hungry has arrested hundreds of them under newly passed border laws. meanwhile, a european summit on refugees and the crisis ended in a stalemate over money. angela merkel says the eu had a proposed agreement with turkey on containing the flow of migrants and refugees. other members of the group are dragging their heels over how much aid to give the turks. turkey is harboring more than 2 million refugees. russian airstrikes in syria could now adding even more. president obama will meet today with the leader of south korea.
they will be focusing on the hostile northern neighbor. the key issue is how to cope with rochus asked by north korea. some might think that the north may try another nuclear test for launch. present obama will hold a press conference with the south korean president at 1:30 p.m. eastern time. another blow for the fantasy sports industry. in nevada, the state gaming control board says that daily are gamely and he will need a license. that affects copies like trafficking's and fan to. five states have outlawed the fantasies rules. the diplomat that a hero to millions of americans has died. ken taylor, that is good he was the canadian ambassador to iran who hid six americans at his residence during the 1969 hostage crisis. on their with the cia escape plan and persuaded the canadian government to issue fake passports. taylor's exports became the subject of the 2012 them "argo."
he was 81 years old. first wordook at our news. you can always find the latest at bloomberg.com. vonnie quinn, thank you. republican presidential front-runner donald trump sat down with stephanie ruhle in new york. they talked business, politics, and also china. what china has trump: done to united states is the greatest theft to the history of the world. they have taken hundreds of thousands of jobs. they have taken our money. the beautiful thing is that they take our money and we know china $1.5 trillion. stephanie joins us now with more. i will say that every republican candidate comes out and bashes china because it is politically expedient to do that. what is he really going to say about china when he becomes president? stephanie: betty liu, betty liu
-- either candidate in either and sayses out i what they need to say when they are running for office to get the constituency behind them. who has manyon, ties to wall street, is out there saying we are going to double down on dodd-frank i'm pretty sure that the person who is going to raise a lot of her money runs a hedge fund. let's be honest. betty: did you feel that way about donald? -- he says that he is not going to be like any other president. he is going to do what he says. stephanie: in a different time, if the government was in a different place, i would say how is this going to happen? this is not how the government works. it's outlandish. the government that we currently have doesn't work. nothing is happening. we are in a position right now as americans where we are saying we are so frustrated -- whether it are president, senate, congress, and the gridlock. it's one of those moments where we are saying that this idea is so crazy it just might work. betty: he also had some pretty strong words about the fed and janet yellen. stephanie: there was a lot of
things he said about janet yellen. is ind not say that she cahoots with the president and is just a political animal. i'm not donald trump. listen to what he says. donald trump: janet yellen, for political reasons, is keeping the interest rate so low is that the next guy who takes over as president could have a real problem keeping these in destroyed at this level. this is a political thing. when they get race, perhaps with the next president, he will see some bad things happen. stephanie: is janet yellen failing? donald trump: i do not know she is failing, but i think she is a political person because everyone says she should raise the interest she has always been known as a dove on interest rates, but what she is doing, and i'm sure with the blessing of the president, because he does not want to have a recession or worse and his administration. he is keeping interest rates low and let them go to my golf courses because i the best one in washington. he's going to go play golf. someone is going to suffer. betty: on his golf courses.
stephanie: he packs a mean punch clearly. i had asked him about banking and regulus. he says what everyone does. we need smart regulation. betty, there is no funding. where are you going to get smart regulation when you have these government bodies without any money, without the ability to hire people to pay them wages that would be comparable to the talent that banks can pay their bankers? but he said the bankers need to toughen up. when you look at these people who run the banks and he has went to, he says, i do not know why they keep getting checks from the department of justice the department of justice kicks them in the gut and hit them over the head with a baseball bat and says, we just fined you 12 billion. if he was in jamie dimon see, he would be fighting back. ough?: on what th stephanie: he thinks the banks are settling to see.
he would say tell us what the fine is intel's what the rules are and we will work with than that. donald trump is saying do not do not accept this. stop settlement. if you no did not do anything wrong, fight back. if there's one thing donald trump is known for, he's a fighter. betty: why trout out a legal fight and you may be paying more money? and you are running a bank. and speaking of running a bank, you have jamie dimon on. stephanie: on monday, i will sit down exclusively with jamie dimon. please tweet me questions. i have a lot of homework to do this weekend. betty: it's great timing. it's not a great quarter. stephanie: not at all. stephanie,right, thank you so much. stephanie ruhle there with donald trump. let us stay with donald trump for a moment. he also had harsh words for the super pac. are therump: these pacs
biggest disgusting joke you have ever seen. the are all controlling candidates. when they say the candidate does not speak to the pack and they are not allowed to legally, i guarantee you that these candidates -- i would say every one of them is speaking to their ac and they are not allowed to legally. our campaign laws are a disaster. financing for campaigns are disaster. mine is my own money. i pay my own money. betty: i want to bring in phil mattingly to talk about who exactly is winning the race. donald trump says he has his billions, but who is winning the money race? hel: believe it or not, actually raised $4 million and he is using that money. not entirely honest with what usa merit, but betty, the clear winner for third quarter finally skimming yesterday. the best part about this issue in of itself is that unlike everything else on the campaign trail, it is tough to spin numbers you see hard numbers on these filings come out in these
hard numbers say that democrats on the whole are just crushing it right now in the money race. between hillary clinton and bill bernie sanders, if you look at the money that was raised in the third quarter of this year, democrats brought in -- just the two of them -- more than $55 million. you compare that to repentance. the other top republicans -- ted cruz had a little over $11 million. jeb bush had a little over $11 million. if you look at those two parties combined right now, because the republican field is split up among several different candidates, the democrats are really cleaning up on money right now, that he. -- betty. betty: we just showed jeb bush in terms of total money raised is still on top, phil. phil: this is where donald trump's comments action come into play. jeb bush is on top because his super pac raised over $103 million. contrary to what donald trump said, the super pac in the campaign cannot actually talk. that is illegal in a no people on both sides as they confirmed that they are not talking with
one another. the advantages that no matter what jeb bush brings in three through his campaign, which there are limits. the maxis $200,007 that the donor can bring in. the super pac can bring in whatever it wants. the super pac on its own without any court nation with jeb bush just yesterday booked another $17 million in at the march primary states. that matters when you're playing the long game here, that he could while hubley clinton has a super pac and is raising money near $100 million, jeb bush has the long game planned out right now because of his super pac and because of the extra $100 million that he has in his campaign had nothing to do with raising. betty: i'm a little puzzled by this because a lot of billionaires go for republican candidates. why are the democrats raising so much? phil: hillary clinton a donor base that is very real. you look at hollywood and you look at folks at the hedge fund side of things. when it comes to money on the democratic party, between her husband and her relationships from the 2008 campaign, she has a real donor base.
sanders whobernie did not bring as much money as hillary clinton in the third quarter and was on most grassroots. if you look at these two candidates running for the democratic nomination, hillary clinton has donors that have matched out. these are big donors that used to giving money to campaigns. they are giving $200,007 a piece. donate anymore to hillary clinton. bernie sanders has grassroots giving $30 or $50 that a time. after the $26 million that bernie sanders raise this quarter come he can go back to the donors and raise more money. he has got kind of a window where he can tap into these same people going forward. that is an advantage for him even though hillary clinton has more money in the quarter and more money on hand. bernie sanders has a group of people, a pool if you will, that he can go back to over and over again over the next 12 months. betty: so, thank you so much. phil mattingly of bloomberg politics on the campaign funding trail.
much more ahead, china reporting its gdp numbers on monday. we are going to tell you by the country's economic growth could be the slowest since 2009 and what that means for the market. and then, superstar hollywood actress jennifer lawrence says there is a big gender pay gap in hollywood. surprise, surprise. why she is mad at herself and not pushing for more. and the latest on reports of a cheating scandal at goldman sachs. the company is set to be firing 20 analyst for allegedly violating rules on internal training tests. ♪
close associates of russian president vladimir putin may have benefited from deutsche bank trades under scrutiny from u.s. prosecutors. the justice department is probing whether germany's vetted bank properly transactions that may have messed the flow of money out of russia. it may be a tough bonus season for wall street bond traders. they are seeing a pool drop eyelid percent. equity traders may have something to smile about with their revenue having risen by 18%. and lendl, a legal victory for uber. is not the same as taxi meters. they do not need a license from london transport authority. past, wendy taxi drivers have protested against bloomberg by clogging up roads. you can always get more business news at bloomberg.com. caught up onget action from around the world
could this is your global market check. we will start with asia where the nikkei finished up 1%. it was up 0.8%. the shanghai composite really 1.6%.d up one big story out of the region is china's third-quarter gdp. global investors are going to be looking to beijing on monday when china releases its third-quarter gdp numbers. bloomberg file this preview from hong kong. >> china is reporting its lowest expansion since 2009 with a growth of 3.8% in the third quarter according to bloomberg survey. it is criticized for unreliable data, but the numbers may not fully reflect china straight. from a billion person economy to one that is manufacturing led to one meta-services limited services in real estate are very difficult moments to measure. what does it all mean and a change in china? the smart money at temperament -- templeton says that the
numbers are bigger than a suggested real estate is still wanted one of the most lucrative engines of the nation's economy. betty: now let's head to europe where ryan chilcote has the latest from london. it has been a good day for european equities. stock 600 is the european benchmark it you can see green all over the place in western europe. i will take you inside of france. we'll take a look at this. france's largest retailer coming out today and meeting analyst estimates for sales growth, doing particularly well. not so much in france, but and get this -- spain and italy. one analyst is saying that italy was surprised. it was the bright spot. the cfo of the company today saying that europe has become a source of growth for the company. not exactly what you are expecting to hear on any given day about europe. to lookant to take you
at a couple of other european equities. one company that did not fare well today is hugo boss. having a little bit of the same problem that burberry reported -- weak sales growth the united bytes and getting hit tourist sales there. but also, mainly china. down almost 12% -- the biggest loss in nearly four years, if it closes that way. just an absolutely huge hit. finally, the big story of the morning was nestle, the world's largest food maker. missing on sales growth and a guided people towards sales growth toward organic sales growth growing by 5%. it is now saying it expects 4.5%. the expectation long-term for the company in terms of sales growth is 5%-6%, and yet it has got problems. china again is an issue and maggi noodles in india -- in the world's second-most populist country, they colder noodles
from the shelves -- pull their noodles from the shells. they cannot sell them. these things so like hotcakes. you have the first quarterly loss in india in nearly 15 years. that is the market. back to you come betty. betty: thank you so much, ryan chilcote. we will check back with him when the markets. for a look at the u.s. markets, abigail doolittle has the latest lieve from the nasdaq. abigail: yesterday, the nasdaq was up big. today, we're looking at a more flat situation. you are big losers and one of them is wynn resorts. the stock was off as much as 9% in it has made it up to some percent, but2.7 yet another disappointing earnings report. the company did beat by a penny on the bottom line, but it missed on the top line once again, blaming the weakness in the macau and that the all-important the all-important eip gaming sector has just about disappeared.
in fact, what is being called most candids conference call yet, steve wynn blasted macau for a number of reasons and it's perhaps a reflection that the company's revenue and earnings have steeply declined year-over-year and the stock is down more than 70% from its peak in 2014. it is not quite clear on what will stem those declines, but it probably will have something to do with macau possibly turning to gold again. another earnings story of their is advanced micro devices. half shares are down about a percent at this point. the company at this point did on the bottom line beat slightly. the company announced a jv fujitsu.ip with what is meant to happen here essentially is that the company is going to give factories to the jv partnership in exchange for 371 million dollars in cash you think that might be
betty: welcome back. i'm betty liu. jennifer lawrence made headlines earlier this week when she published an essay about pay inequality in hollywood. when the sony hacks documents showing once had earned significantly less than her male counterparts in "american hustle," she did not get mad at the studios, she got mad at herself. lawrence is the highest-paid female actress and she said that she had no one to blame but
herself you for more on the pay gap in hollywood, i want to mynette, and she finances narratives directed by women. this is good timing right now because there seems to be a lot more awareness of the gender pay gap and that women need to have more equality. you hear that also on the campaign trail. what did you make, seeing that you are in this industry, what did you make of jennifer s comments? mynette: i was so thrilled because she is the highest-paid star and it is come alive to inspire the rest of us to demand gender equality. it is not just among actors, but among directors it is why game changer was one. -- 7% of the top grossing movies were directed by wins. betty: and are not only 7% female directors. mynette: in the independent world, it is 70%.
in the studio world, as you get higher in the runs, women are sort of whittle down unfortunately. betty: we have a quote here from lawrence from the essay that she wrote on leonard dunham's newsletter. mad at myself. i felt as a negotiator because i gave up early. yourself as finding you try to finance these films? are you seeing that there is a bias? mynette: there is it financing is largely controlled by men and they are comfortable financing people who walk and talk with them. that is the number one reason why they are fewer women directors -- the lack of financing. betty: who are you getting financing from? mynette: a great group of social impact investors who care not only about gender equality in the film world, but are also passionate about the arts and film. betty: don't you think that with
more platforms like hulu and netflix and amazon -- is in that leveling the game a bit? are they more open? mynette: they are more open, however, a lot of them in the banks of the staff are populated by old tv executives. i think they are becoming more traditional. but what those companies have done is open up the sort of content format, so there has been the rise of the limited series for example. i think there are more opportunities in episodic now than there ever were. betty: i find that the actors who are getting more noticed and may not have gotten motives -- notice before our women and their giving more chances to jane fonda, who is iconic, but she has not been a really big movie in a long time. now she is on this netflix series. just quickly with some hard numbers here, robert downey, junior is the highest-paid actor.
i thought it was charlie sheen. $80 million. jennifer lawrence at $52 million. you want to talk about hollywood pay gap -- it's right there. betty: absolutely. women are undervalued not just on screen or offscreen. we are undervalued as audiences. more than 50% of ticket sales are a tribute it to women. this whole there's market place opportunity that is on tap. women filmmakers are in undervalued asset, which is why game changers one. -- game changer was formed. betty: thank you so much. a quick programming reminder. on monday, an exclusive interview with jamie ofon, chairman and ceo chase bank. ♪
betty: from bloomberg world headquarters in new york, good morning. i'm betty liu. here is what we are watching this hour. stocks are fluctuating right now. overseas markets are higher right now with investors betting that they will maintain low interest rates. goldman sachs is said to be firing 20 analyst for cheating on internal training test. we will have the latest on this. s is understood me for the accuracy of its blood test. the startup has raised hundreds of millions of dollars and is valued at billions. minutes into the trading session. i want to head back to julie hyman who has the latest. we have eco-date of this morning and earnings as well. julie: the stocks are fluctuating and we have not found a dramatic direction here. i just want to let the s&p 500
and its trajectory. it has been trending lower from where it opened up here we saw stocks bottom out after we got that consumer sentiment number that came in better than estimated. heading back up you all this is a very tight range for stock split once again, the push pull that we have been seeing in recent days. take a look at my bloomberg terminal for a little bit of a closer look at that push pull. health careples and hire an energy is not the worst performing group. some of that has to do with what we have seen with industrial production. we got those numbers as well this morning. take a look here. we have a month over month change in industrial production. all these bars that are going down mean that there is a month of room on decreasing industrial production. we saw that once again on the month. factory usage down. that is causing concerns. to put it into perspective though, as i always like to do, you can also look at the longer-term chart. here is the 10 year chart of
industrial production. you have this big recovery from the recession and that is stalling out of that industrial production number. i was watching the reaction and oil this morning. seen four we have straight down days today. however, it is unchanged and we saw a big drop off after we got that industrial number. there was concern about industrial demand for oil perhaps. betty: julie, thank you some much. julie hyman at a bloomberg markets desk. now, let's get a check on the bloomberg first word news this morning. vonnie quinn has more from our news desk. vonnie: thank you so much, betty. a mystery in turkey. turks say they shot down an unmanned drone near the border with syria. no word on where the drone came from. russia says all that unmanned aircraft is functioning normally. turkey has complained about russian warplanes entering its airspace. today, turkish officials said that russian air operations in syria may lead to accidents. meanwhile, hungry says it will close its border with croatia
tonight at the naked that's to stop refugees. construction of a razor wire fence along the border was impleaded a few days ago. nearly 400,000 migrants have entered turkey this year, most of them trying to reach germany. hungry has arrested hundreds of them under passport laws. republican president looking at donald trump is blaming china for what it has done to the u.s. economy. donald trump set down with stephanie ruhle and says that china has gotten away with the crime. donald trump: what china has done to the united states is the greatest theft in the history of the world. they have taken hundreds of thousands of jobs. they have taken our money. the people thing is that they take her money and we -- we owed china 1.5 chilean dollars. trillion dollars. he also says that janet yellen is keeping interest rates low as a favor to president obama. california is opening up interstate this afternoon.
the highway was closed after flash flood debris blocked the driveway and vehicles were stranded in some drivers had to climb on top of their cars to get out of the way. and wall street is showing its appreciation for hillary clinton. clinton has collected more -- from employees of the six biggest u.s. banks this year than any other presidential candidate. the democratic front runner offered at least one reason for wall street to get behind her. clint says that she will find other ways to regulate the big banks instead of breaking them up. that is a look at her first word news right now. you can always find the latest news on bloomberg.com. betty: vonnie quinn, thank you so much. there may be some job openings now at goldman sachs. the investment bank is dismissing 20 analyst gallipoli and love this is -- and offices including london and new york, for cheating on internal training test. we want to bring in the reporter behind the story. us first exactly --
what are we talking about here? how is this cheating done? what are the details? >> so we do not know exactly how they cheated. these are not regulatory exams. these are very basic training exams that these guys should find so easy. it is after they do five weeks of training in new york. are not inndon guys new york. they are altogether learning about security and bonds and equities and then they do these tests that the ends -- at the ends has a that we have learned these things and we know what we are going to do. these tests are not supposed to be hard at all. betty: who are these analysts? these are entry level, right? sofia: these are twentysomethings, very young. they should be excited about joining goldman sachs gr. they had been at the bank for just months. and then they just cheat on these tests and they are fired
basically before joining full on. they are very, very young guys. betty: they are young guys. what you describe in terms of these tests not been that hard -- isn't it kind of known matt with these tests that men and women help each other out? they may exchange information, maybe? they are just going through the process of getting into orientation here. sofia: exactly. they did not really take these tests seriously. let me just say that this is not just at goldman. this happened across wall street. reallyests are not --ething that people find they didn't take them very seriously. this cheating has been going on for years. it is not the first time. it's not that it was encouraged, but it was not really seen as a problem. the cheating is just cooperation
between everyone taking the test and doing the article of a question that you are not sure of. that kind of thing. betty: it was not seen as a problem. it sounds like there is kind of a gray area here. what goldman has done apparently andet a very strong line said no, there is no gray area. this is unacceptable. you are fired. that, is it surprising that goldman has taken this hard stance? sofia: well, the sources we were speaking to -- they were very surprised. said, analysts from last year had also done this kind of from two years ago, they did this kind of cheating. it was not seen as an issue. they were very surprised. goldman is obviously going to really hard on this and really cranking down. i guess the take away is, betty, should we see this as a good thing that goldman is taking
betty: good morning and welcome back to "bloomberg markets a." it is time for the bloomberg business flash, a look at the biggest business stories in the news right now. consumer confidence up more than expected this month. we saw that an hour ago. the univariate of his -- university of michigan eliminate consumer confidence index posted its first gains in months. lower income americans are predicting that their pay will increase by the most in a decade. fellt at u.s. factories for the second month in a record the stronger dollar is hurting demand overseas and companies in the u.s. have loaded stockpiles. all that is being partially offset though by stronger auto sales numbers. in london, a legal victory for over. -- forever. a judge ruled that smartphones used by their drivers are not the same as taxi meters, so they do not need a license from london transport authority. you can always get more business news at bloomberg.com. it has been a challenging third quarter for the nation's biggest bank. you saw that this week.
for the five big u.s. investment banks reported fixed income trading revenue drop this court. goldman sachs was the worst, down 34%. jpmorgan down 20%. bank of america off 11%. in citigroup fell 5%. we are going to hear from morgan stanley on monday to round out the big banks. what this means for the industry, i want to bring in michael holland. he is the chairman of holland and company. also with us is our banking reporter, hugh son. we are bringing you on because you write a story about how these numbers are going to affect bonuses. year,at this point of the we know that on traders should have a good sense for what their bonuses are going to look like. i then told within two or three weeks that is when the compensation decisions get finalized. most are already in the books and it has been bad. betty: for the first five months at 11%? which isn 11%,
terrible. given that the fixed pie-ish ranking, i would say that most bonuses are going to go down. betty: so lower bonuses, michael, means what? michael: unhappy bankers and unhappy traders. on bloomberg is very revealing. some of these guys are $2 million people a couple of years ago. they were fixed income trading bosses and they made 800,000. for viewers, they would say i could live on a hundred thousand dollars. -- $800,000. but the guys who made $800,000 a few years ago will not be happy. we'll be really unhappy are people in other parts of the organization. we were talking about this before we got on set and that is equity out of. they had a great year and made a lot of money. but they're not going to get very good bonuses. betty: you are mentioning that -- the equity traders. hugh: equity is a much smaller part of wall street's profit engine.
it's up 18% and about $16 billion. michael and i were talking about this dynamic. they are not going to see as big of a bump as they would hope because th of 18% rise. michael, do you want to handle that? michael: they will get a larger piece of the pie in the last few years, but it's going to be -- betty: the pie is getting smaller. so they're going to get more resentful? michael: they are just unhappy. they are more unhappy than the fixed income traders that are down. with fixed income guys, these people -- they made a lot of money for the company. i should get more money than got last year. betty: the consequences of this are what -- more layoffs or banks getting out of this business, too? hugh: goldman on their call talked a lot about the fact that competitors are leaving. competitors in europe are leaving. you are not seeing that yet. goldman had a terrible year, 34%
down. they missed eps for the first time since 2011. it's a terrible quarter for them. you have not seen that flow through to the u.s. players yet. goldman says to have patience. we are tapering under the hood. we are getting rid of rwa's and try to tweak profitability. you will see this come to us and tempted -- in time. say he: didn't the cfo is waiting for other people to go out of business? hugh: he did mention that. hugh:michael: the market share will happen because people leave. betty: can they waited out? hugh: goldman can. michael: jpmorgan could. they are all saying that this passes when you do as well as we do over a month cycle. do not take one quarter and say that they have lost their touch. it's just the opposite. hugh: tickets to the point that jamie dimon and these guys can consider themselves and game
winners. at the end of the game, they have got the ability to hold on while others leave. they're going to benefit from that. they have not yet, but they hope they will. in theseyou cannot be businesses, particularly the trading business, and not have a quarterly dow, . down 34%, that's awful. it's like eli manning throwing interceptions, but he still has two super bowl to jamie dimon can suffer through the spirse. betty: speaking of jamie dimon, we will have him on bloomberg > monday. what would you ask jamie dimon after seeing this quarter? michael: how much less inclusion from washington does he expect over the next five years? that has been such a headwind for everyone, but particularly for the jamie dimons of this
world. they try to do things right, and yet it's politically attractive to have done it. been extorted by various attorneys general and so on. how much less headwind -- i think that is huge. betty: basically, does he believe that the worst is over here? michael: he said that, but i think if it he could guess, because no one knows, what guess it would be. what do you think it would be? hugh: jamie dimon, a lifelong democrat, and the hillary clinton supposed to tax on the banks -- it's not -- these guys are self-aware enough to know that they are still in the penalty box for the financial crisis. they can go around talking about the size of their bonuses and things like that because they are in finance. even though jamie dimon feels like we were not bailed out or
we do not need to be bailed out, y areill accepts that the seen as the poster board for finance and they have to get the downside of that. michael: why not poster girl? betty: they are getting there, michael. i think that is a great point. when an average make and citizens reads that these bonuses are shrinking for wall street, very few of them are going to cry tears. versus $2 million -- where are the tears for that? however, you also have to understand that people will also fall out of the industry. the big bracket firms -- where will they go? betty: they are not starting hedge funds now. look at the hedge fund industry. hugh: that ship has sailed. betty: thank you. michael holland, you are staying with me because you will talk
betty: welcome back to "bloomberg market day." with ge earnings beating estimates, you would think they behind. julie hyman standing by with those because of the market desk. julie: i'm tried to fix my chart on my bloomberg terminal, which we will get to in just a second. we have had a number of industrial countries coming out with perl in the earnings that --sed estimates the most missed estimates. the most egregious is qantas service, down 27%. the coming coming out with preliminary earnings per share
for the continuing operations for 22 to $.24. the prior forecast was for $.44. a big mess for this company. this company provides services to both utility companies and gas pipelines companies. on the electric side, it's seeing small-scale on electric transmission and on the pipeline side, th it delays pop line construction projects. the train company also missing analyst. it said that its agricultural mineral transportation business revenues are up 6%. 5% ofals and petroleum of all other commodity groups dropped. we noticed that coal is not mentioned there. we have seen a big decline for coal. and finally, granger, a provider of motors and tools across a range of industries. this company's third-quarter also missing estimates and cutting its annual forecast. it says it has become the
process of aggressively adjusting its cost structure. so these three stocks and not just falling themselves, but they are causing concerns amongst other industrials as well. and then there's general electric, sort of standing alone today. that's in terms of the gains related to its earnings. it is not a big game -- 1.4%. third-quarter earnings to be analyst estimates and fog in the transportation and aviation units per although, its core industrial business was not as strong . i was looking at the sector breakdown of the lines of business. this is quarter by quarter going back over the past five quarters. the big orange line with the ge capital, which as we know, it has been winding down. that is why that far has been decreasing. power and water is the blue line. aviation is green. oil and gas tank and health care is why. you can see overall that we have seen a steadiness in the main businesses that are not ge capital. concerned if is the industrials business is not going as well. but the other pieces of business are enough to buoy thanks.
the strategy here is getting rid of what is not core businesses. betty: julie, thank you so much. i want to bring back michael holland, a shareholder in ge. he is the chairman of holland and company. he would applaud the decision right now? michael: yes. betty: some may think it's not fast enough. michael: those bars that julie hyman just had up there -- the orange one, for ge capital, the reduction of that orange is so important. what that means is higher motive . it takes a while to get rid of billions of dollars of companies and assets and cash flows at the right price. i think they've done a very good job of that. betty: it's good timing and bad timing. good timing because look at what has gone on with wall street, right? at whattiming with look is going on in china, michael.
they are putting the eggs in a basket at the time when the biggest consumer or producer is faltering here. michael: you and i have had this conversation before of the last couple years. things have been slow in china for the past two years. part of it self-inflicted, part of it what is going on around the world. they're going from a manufacturing economy to a services economy. you know about that. in the meantime, they are also getting rid of corruption, which has a definite effect on what people's do. they are going a little bit more than we are here. forget the government numbers. industrialism exclusively into china will help and in addition, as they're going into the services area, they are also doing health care also. iny will be much bigger china. i think ge will in the future. i think he is worldwide. betty: you go to china often, i know, michael. michael: i was just two weeks
ago in hong kong. betty: has anything changed in the last few months? michael: i was shocked that the pollution in beijing -- just in case you do not know, it was as bad as i've ever seen. what is interesting is to hear the headlines in the talking heads and you talk to the businesses over there. yes, things have been slowing. yes, they have been saying that for the last couple of years. but they certainly aren't going off and quitting. business is being done. there's a decent level, not a great level, but a decent level of business being done and some growth. betty: michael, great to see you. michael: happy friday. betty: youtube. michael holland of holland and company. market "bloomberg day." ♪
you're watching "bloomberg market day," i'm betty liu. vonnie quinn has more from our news desk. vonnie: we start with the drone that was shut down in turkey. there are plenty of questions and few answers about what actually happened in a remote section of turkey. say they shut down an unmanned drone. there is no word who is controlling the drone. russia says it's aircraft are planned -- functioning normally. complaints about russian or planes entering their airspace, turkey officials say that may lead to accidents. longtime aidon's went to capitol hill today behind closed doors in front of the house committee, investigating the deadliest attacks and then ghazi. benghazi. donald trump is lashing out at the way campaigns are financed rate in an interview with stephanie ruhle of bloomberg , trump denounced supertex. -- super pac's. areld trump: these pac's
the biggest, most disgusting thing you have ever seen. when they say the candidate does , i speak to the pac guarantee you, every single one of them is speaking to a pac, and they are not allowed to legally. our campaign laws are a disaster. financing -- my december. i pay my own money. as for donald trump, almost 74,000 people have donated to his campaign. staying on presidential politics, joe biden is still considering whether to run. that -- meanwhile, one of biden's closest advisers is telling him he may be needed. that is a look at first word news right now. you can find the largest news at bloomberg.com. betty: vonnie quinn at the news that. hungary says it is closing down
its border with croatia, and hundreds of thousands of migrants fleeing war-torn syria. meanwhile, the latest summit has concluded in brussels with european officials offering withy an option to deal the migrant crisis. not everyone seems to be on the same page. hans nichols has more from brussels. >> it ended without an agreement on how to coax turkey into helping stem the flow of refugees. that number was too high. apparently for her eastern european neighbors. one margolis began about it afterwards, she almost seemed disappointed. sharing, itirit of is only right for the european union to think about how to participate. going forward, european leaders said they liked the idea of going forward with turkey.
they would need to lift restrictions on turkish citizen suit travel to the eu and an accelerated timetable for joining the club. he accused the eu of being insincere and said his country had already spent a billion dollars on the refugee crisis. he said they are close to being at a breaking point. betty, back to you. betty: that was hans nichols in brussels. back on the markets here, breaking news on the tech front. on twitter, e-mail and bloomberg news right now saying he owns a 4% stake in twitter. he is disclosing that he owns a 4% stake in the company. julie has more at the breaking news desk. there have been tweets coming from steve ballmer's accounts in recent days, there were questions about whether they were legitimate. it is unclear where this originated. bloomberg news asked whether this was accurate. apparently it is, indeed
accurate. you see twitter share spiking on this news. as i watch on the bloomberg terminal, they are coming back down and bouncing around on this. coming from a depressed place when you look at a spike like this. the stock has been on reforming as of late on questions about where it will go from here. under the leadership of jack dorsey. i was also looking at the other top holders. williams, one of the founders, owns 6.8%. owns 3.2%. himself it looked like a bomb or when now become something like the six holder, the six largest holder of twitter, at least if you look according to bloomberg filings. it looks potentially like good news for twitter with the shares spiking on this news. we don't have anything else as of yet in terms of his rationale come if he is saying anything
about whether he wants to be involved in the company in some way. even just the ownership is helping the stocks. betty: i am just reading some of these tweets you are mentioning that have come out, they are industry. is this for real? did his twitter account get hacked? good job at twitter. leaner, more focused, but i bought 4% in the past few months. it looks like that really was him. social media has interesting moments. thanks julie hyman are the breaking news desk. we will be recording johnson who will talk more about tour de force in a moment. back on the refugee story, here at home, the white house is doing its part. how they are asking silicon valley to step in and help raise money to -- to fight the crisis.
million is the number of people despised by the syrian civil war, a number roughly the popular edition of new york city and los angeles combined. global calls to address the crisis grow more desperate. has is why the white house tapped some of the most innovative companies in silicon valley to do their part. >> this is a real problem out of the world. here's how to think about it. here are organizations you can work with to get involved. find the right fit for your product and your users. find a good way to step up and be involved. it started with president obama's september speech to the u.s. senate. behind the scenes, phone calls from the west wing to the tech community ensued. within about a week, code writers from kickstarter, airbnb and in soekarwo were ready to deploy platforms to help. teaming up with the refugee agency, their business was
transformed providing meals and housing thousands and millions of dollars. this will not sell the refugee crisis, but it is a first step. the reach, the credibility of the white house. >> so far, the administration has pledged to accept at least 10,000 refugees next year. many argue it is not nearly enough. are no illusions inside the white house or the tech community that this is the solution to a crisis that has but only captivated horrify the international community. it represents an element, tangible evidence that something can be done, and creating a model for the future. >> sometimes the hardest problems are tackle by 50 people getting together and saying what can we do about is to make a difference? more companies expecting to announce commitment soon, it is not just money, it is awareness. betty: i want to bring in phil
now with more on this. phil, tell us about this kickstarter campaign and how much it raised and what is the result from that? phil: it is different. you are not getting rewards. this is your donation. they ended up raising millions of dollars. 27,000 people donated in the first 24 hours, it brought in over $1 million. the campaign is already over. more companies are starting to get on board. that is why the white house, and youyuan refugee agency -- -- eu refugee agency are surprised that this is something they continue to work on. betty: went to the white house plan to do going forward? >> there is no question this is a huge mountain to climb with the white house getting a ton of criticism for it. how they look with what has happened with this initiative is just as important as raising the money. it is, as i said, awareness. according to the u.n., only 4% of u.s. citizens are even
remotely cognizant of the scope of the refugee problem in syria, in europe right now. the hope is not only will these companies raise money, sending meals, giving housing vouchers, they withdraw recognition on social media and read it when people are not necessarily used to paying attention to something like this. now they see it, not a care about it. that result in more donations. -- that results in more donations. betty: iraqi during mark zuckerberg say that he would make internet access free at these refugee camps -- i remember -- what about these companies? phil: twitter alone announced its donation platform. the tool that it was using for donation, they lost it early for the sole reason of getting ngo's related to the refugee crisis that her access to money. what you are going to see right now is not only corporate
america, not just the fortune companies, it is smaller company's and startups that have interest in this, interest in helping, recognizing there are ways they can use their business models to help. it might not solve everything, but it will at least contribute. i think that is the endgame, the goal that president obama had when he made these are marks of the u.n. general assembly in september. betty: thank you. much more ahead, we have breaking news as i mentioned about former microsoft -- microsoft csc. he confirmed in a bloomberg news e-mail he owns a 4% stake after a mysterious tweet on the twitter page. the stock is up right now on the news. we want more in a moment. -- we will have more in a moment.
betty: welcome back to "bloomberg market a," i'm betty liu. european markets have just closed on trading day ending the week off into the weekend. for a look at today's action, i want to bring in ryan with more. ryan: all green in europe right as you can see, european equity is up, they have finished their second day. that is after asian equities were up as well. you know the reason why. bad economic news is good news for equities. the cac 40 is not far off, almost .6%. one of the reasons for that, nce's biggest retailer
is performing well in france and italy, as well. a pretax earnings growth growing as much as 7%. you don't hear that very much about european peripheries. italyave made spain and for one work. moving on, one stock that did not do quite as well, you might say this is your plan for the day, investors gloucestershire today, shares down almost 11%, worse today in four years. why? tourists spent less money at their shop and the united states. hugo boss had big trouble in china. one thing i want to show you today because i can and it's exciting, a giddy turkish lira. don't be confused. this means the lira has been weakening, but what i want to point out to you is this big line right here which is a dramatic 1% weakening in the turkish lira. why did that happen? the turks had just announced
they downed an aircraft in their airspace. it turns out it was a drone. not as bad as manned aircraft. you saw the turkish lira come back a little bit. when we learned it might be a russian aircraft, we also learned the ruble fell as well. big geopolitical concerns around syria continuing, continuing to move the market, if only briefly. that is what we saw there. turkey is a nato country. russia is flung sorties in syria as well and syrian skies. they had locked had over the last couple of days. russia says it wasn't their aircraft, turkey says it doesn't know who the drum belongs to. investors took note of it today. betty: they did. dramatic moves as you just pointed out. brian in london for us with the london close. the european close. a look at u.s. markets right now. abigail has the latest on the nasdaq in midtown manhattan. of course, we have to talk twitter first, abigail. abigail: here is the nasdaq
market site in new york times square where it is physically flat. one stock getting a nice top is twitter. shares up more than 1% on reports that steve ballmer has a 4% stake in the company. for a stock that has been down as much as 60% from march through august, this is a nice psychological break. what it will lead you in the future is hard to know. for now, i think it is a nice relief rally for twitter investors considering all the uncertainty around the company. microsoft, nice news came out of the amd, advanced microdevices earnings call yesterday, not just for microsoft but sony with amd saying they have seen record and xbox. playstation according to my bloomberg time right now, this could prove to be a nice pop for microsoft considering the xbox platform accounts for 9.7% of revenue for
just behind its office server products and windows. it could be another reason -- microsoft is up and could provide a nice pop for this company going forward. that is all from here, back to you. thank you, abigail doolittle at the nasdaq for us. as she was just talking about, steve ballmer from the e-mail and bloomberg news owning a 4% stake in twitter. we were just looking at moving higher on the news desk. staying around there. corey johnson joins us now from san francisco with more on this. it came about mysteriously on this twitter page. we didn't know whether it was steve ballmer's twitter page or not, but basically commenting twitter is closing he had a 4% stake. corey: a big investment, but from such a wealthy guy, it is not combine the clippers. steve ballmer reporting he has a 4% stake in twitter. twitter is an interesting company.
i think it gets a lot of discussion for a lot of reasons. it did seem that the company put out all of the possible bad news it could before this most recent announcement that jack dorsey would stay as ceo before these ideal fines became public this week. he may be wanted to get every bad piece of news out. the question is has a bottom tier? -- has it bottomed here? the user growth statistics for twitter are concerning where the business is hardly growing in terms of adding you -- users. one way the conversation might change is to adding the value of the users. tanya total value. -- talking about total value. betty: it is a vote of confidence to have steve ballmer on board? for these success types of technologies is worse than next, shall we say? he has launched so many crummy consumer products that maybe he
is not the best guy to endorse another product, but he has made a lot of money, some of that now being put into twitter as investment. betty: does this at least said the company further ahead because they have some very big investors? prince, does, the that set them further ahead? this -- ifn't know this is an endorsement rather than a financial investment. this could have been his funds to decide how to put his money to work. betty: staying on twitter, they had gotten the bad news out of the way, the square ipo, now that is happening. next week, or in the coming weeks, they have to start showing what the product is, or what? corey: i was going through the filing late last night. it is an interesting business. it is interesting in that it has dropped in the same day that the
first ada ipo which is trending down to the second consecutive day, a broken cells price, it is not a good thing for the bikers behind the deal. they were so desperate to get it out that they lower the price on the same day that the square ipo comes out and shows the big changes going on in the credit card payment processing business. in at much lower prices for merchants, but also losing money on every transaction. a big money-losing business. it was interesting to see how it looks like the deal they had a starbucks was a really bad one for square. there getting out of that. they lost a lot of money on a deal over the time that they had it. maybe let them run the system. they lost money on their sale, but made up for in volume. you can see that with the starbucks sale. that business is going to tremendous transition. johnson a bloomberg west in san francisco for us. we want to remind you that coming up on monday on bloomberg
betty: good morning and welcome back to "bloomberg market day. go it is time or today's options inside. here is julie hyman. we are seeing stocks gain traction today. let's start there. this is the third straight weekly game for the s&p 500. stocks fell across the board -- stocks across the board are rising today, although not huge gains. let's take a look at how the options market is reading it. stop -- scott bauer is joining us. out in chicago. and pulling up the vix
looking at where we are today. we are down a little bit. volatility as we have seen stocks rally, volatility has come in here. scott: and really has, and it is interesting. we would've had the rally three or six month ago. we had -- we would have seen the fix straight in the 12-13 handle. maybe the new norm for that lower end is where we are trading now that 16-17 handle. it is a dynamic that as the year has progressed and we have had a couple of these setbacks, these 3-5% setbacks, we have seen the vix rise from the bottom level of 12 or 13 up to 16, 17. julie: i have been talking with traders recently who say if you look out further at the predictive mechanisms for volatility, there is next vacation it will come back. scott: there is no question about that.
the front bank's we look at right now that is trading in the 16 handle, -- the front vix -- that is a projection out over 30 days. going forward, there definitely is a concern out there that something is going to happen, that we will have another 3%-5% pullback. no question. julie: let's get to your trade on the casinos. really fascinating as of late. not been doing well. out with earnings. las vegas out with his numbers on wednesday. a share seven fine. they are down 22% over the past year. what will come out of this earnings report? scott: i think we will see an exact replica of the wind report. ist they are doing in macau so up in the air right now. not only from the standpoint of how many people and how much money is being spent, but now the chinese government has put
-- it is on and speculative regulation that even steve n gyuen came out and said we don't know what is going on there. i looking to buy next week's 48-46. and expires on wednesday. to dollar max on that, all i can loses $.40, i think the whole china situation is going to not knock it back down. julie: we will see if they have choice words for the chinese government. thank you so much, scott bauer of trading advantage. nextll be watching those week. more "bloomberg market day," after the break.
from bloomberg world headquarters in new york, good afternoon, i'm alex steele. tgif. here is what we're watching this hour. janet yellen airing on the side of angels. plus, banks that have funded much of the oil boom have so far escaped the oil bust. find out how banks are still making money off of those deals. >> forget the polls, the all-important presidential fundraising numbers are in. jeb bush is now trailing ben carson and ted cruz. >> we begin with today's activities. we need to head over to the markets desk were julie hyman has the latest. expiration date, is that creating gyration in the market? julie: i guess it is. i would be third friday of the month already? that crept up on me.