tv Bloomberg Markets Bloomberg October 19, 2015 3:00pm-4:01pm EDT
are you reading your favorite classes and welcome to the bloomberg market day akoni -- day." finally vice president make the announcement at the white house? olivia miss his moment of opportunity? toissa mayer's struggling build a stable management team because top executives keep leaving here we will hear what the chairman and founder has to say about her management. i want to head straight to the markets where julie hyman has the latest. kind of all over the place
today. julie: we have got volume at more than 10% below normal for the 10 day average to be specific for the s&p and nasdaq. all three major averages have been mixed throughout the day. the nasdaq is not showing much of strength. take a look at the terminal for what is pushing and pulling today. theles are higher at moment. energy and materials have been big drags. on the more macro basis, chinese thaname in better estimated but still showed a decline. also the national association of homebuilders. showing its highest reading in a decade. it looks like the commodity on the chinese data, we're seeing crude oil down. in biggest one day decline
one day's time. ministerbout the oil calling for a cut in production not for iran itself. confused risk environment, maybe we would see more of a bid in .he safe haven treasuries, we're not seeing a lot of action in the treasury market today on the economic data area we are seeing a very little bit of treasuries as the .ield goes we are seeing a little bit of a left, up .4%. there isnteresting is not a scene overarching across asset classes. it is a mix among other assets as well.
betty: now let's get a head -- a check of the headlines. good afternoon. more from the news desk. good afternoon. >> he turns out the vice president is not expected to make an announcement before the end of the week. that would be just before a major democratic clinical dinner next weekend in iowa. organizers say mr. biden could be accommodated at the last minute should he decide to jump in the race. has aile, hillary clinton 16 point lead over bernie sanders. first conducted since last week's debate, the poll gives clinton's 45% to sanders's 29%. indicates only sanders received a boost from the debate. his support is up i've percent since mid-september. are nowerators
unnoticed here federal regulators will require the regulation of most unmanned air act who ignore safety rules. here is transportation secretary anthony from earlier today. >> we intend to move quickly and it is my hope the task force will complete recommendations in the middle part of november with the goal of having rules in ofce by the middle part december. a the faa is setting up collaboration to work out the details. to prevent meant aircraft from crashing into place or hurting people on the ground. the correct -- the director of the cia may have in his victim of hacking. someone claimed a breach in his personal e-mail account and .osted documents online
the same person or group claims they referred the matter to proper authorities. authorities say wildfire burned 40 miles southeast of boston. fighters.out 275,000 the fire apparently began tuesday when a farmer and pulling a shredder accidentally ignited tallgrass. and, louisiana must continue to provide medicaid funding for at least the next two weeks. the state's governor bobby jindal after several controversially -- controversial leaked.ere the planned parenthood has denied the allegations. that is a look at the first alert news right now.
you can find the latest on bloomberg.com. -- betty: some of the regulations the post on the big banks could have unintended consequences. a -- an exclusive interview with jamie dimon and what he thinks the fed should do. >> they have a lot to do. they are trying to get that done. privately, a lot of them know there are too many regulators and they want to make it simpler. stephanie: that means it ain't happening in our lifetime and we are living in a short-term environment. jamie: it will not happen in the next few years. it is possible people will look back and improve things. change the things that did not work and add things that did work.
stephanie: beautiful. actually happening? jamie: no. stephanie: donald trump specifically said jamie dimon -- what he did not understand was why people like you and other bank ceos in his words, rollover and settle. he said that the fines they are being hit with are so ridiculous. jamie dimon, tough as nails, fight back. jamie: we have a lot of can ditch with these. 150 countries around the world. you have got to do what is right whether or not you agree with it. theare trying to minimize damage is best you can. going to court and fighting five or six different courts and being dragged through the mud
for years and you still end up hanging that kind of money. maybe he would have done a better job in my seat but i do not know. but i will not jeopardize my company. we can't afford to take an indictment. we go in saying we want to settle. please listen to us. you are my judge and my jury. i have no choice. i went through all of the wonderful things here the cities, states, schools, hospitals. .e did a lot stephanie: i remember you
watching -- watching you walking in by yourself. it puts you in a position we say, thank you, sir, may i have another? they say, what? by the way, i have another. jamie: i just do not want to comment. i'm doing the right thing for my company and i'm trying to get some of this stuff behind us. betty: for more on the difficult road ahead for wall street, erik schatzker joins us now. it is not easy to be a ceo these days. erik: it is true. it is not easy. not just because of regulation and not just because the fed is at zero and it is difficult to make money in lending. ,here is no revenue growth partly because of race and partly because of the marketing environment. choicesnks have a few than to cut spending. what is the easiest way to cut
spending? rid of jobs. some 4000 jobs. there are bright spots. equivalent to 10% of the workforce. goldman sachs is not in the lending business. it is not quite as much as the largest commercial banks. inevitablyt stuff his compliance, lawyers, accountants, and the like. goldman sachs, i think you can safely draw the conclusion they have an opportunity here. not like we added 3400 people in one quarter and that is it for the next year. they have been adding people gradually. regular thing has been
established years ago. i know over 14,000 jobs in the past year -- erik: if you dial it back five people, ifst 70,000 you can believe it. bought countrywide to begin with is a disaster. they bought mellor lynch, which helped overall. to put it in perspective, 68 thousand, lloyds has eliminated 38,000. i took a look at banks with more than 100,000 employees around the world. bank of america had to cut the and nominal terms percentage terms. citigroup cut one than 20,000 jobs in five years.
the five banks in the deepest cuts, we talk about 170,000 people. you can make five goldman sachs with that many people. or three morgan stanley's. griml say it still looks but what has been happening is the percentage of employees cut year-over-year shrinking. they are getting to the end of that road even if they are several quarters in the future. betty: thank you so much erik schatzker on the wall street banks and their future. ahead, in washington, hillary clinton is set to testify before a house hearing on the 2012 benghazi terrorist attack. she will testify thursday and we will tell you why her own party is taking shots at the democratic front runner. in canadaon their way where stephen harper is fighting for a fourth term as prime minister.
good to see you, william cowan. ok, bill. bill: the facts as opposed to what the motivations may be. tore may be some out discredit secretary clinton but the facts have to come out and say, why were the diplomats place in libya under these circumstances? we have diplomats out there on the front lines. we want to know, was it necessary to have them in libya at that time. there was something comparable in my mind. the question was the military
requested tanks, army personnel characters. a connection. there should be accountability. wheres particular case, they supplied with the right equipment, were the marines in a position that they could have responded. they support a budget financing for these additional resources among congress turned it down? it would put spotlight on congress saying, what would you do about this? this was one of the things most annoying to me. we're in a situation right now where president putin is in syria and we are debating whether it would shut down the government over the funding of planned parenthood. that sends a signal to countries that we are not taking our responsibilities seriously. that means congress as well.
hillary clinton has to take an oath of office and say, answer every question, as far as the e-mails. is there anything in the e-mail you have not disclosed. tell us what you said, did that have an impact on your decisions. it may be she had no knowledge of specifically what is going on on the ground at this time. she was secretary of state. she may point out the state department had requested funding and it was declined by congress. betty: there are clearly numerous questions. we should take off the party labels and take off the democratic partisan pins that we wear and say, find out what the facts are. says, everything that is yellow, we have got to stop that. betty: you mentioned syria.
inevitably draw the u.s. further into syria? think it will intensify the fighting on the part of the sunni countries in the region to the extent that russia is reporting aside, intensifying the attack. will continueons the fight and that will mean russia itself will find itself with a more complicated environment. betty: so good to see you. ahead, canadians going to the polls in one of the closest elections in the country. we will give you the latest. ♪
betty: welcome back. look at some of the biggest business stories in the news right now. the financial times reports the money from the so-called error recovered the next day. gross figure rather than a net one, which caused the super high payment. as much as 6.9% reporting a loss relating to private equity investment in china. the worst quarter for fixed income since the financial crisis.
the decline was the biggest ,ince august 24 push this 7% the most in the financials index. get more business news at bloomberg.com. most recent polls are suggesting change may be afoot in canada. out a lead over the country's conservative party led by stephen harper. the election could be the candidate's first new leader in almost a decade. here with more is pamela from the toronto stock exchange. pamela, set this out for us. the election is about everything from the oil markets to the refugee crisis. >> it is and it is the most engaged canadians have been an election probably in decades. quite a slightly longer campaign the normal. it has been going on longer than
others. it seems to have allowed a leader of3-year-old, the liberal party, time to practice. he got better as the campaign went on. in manyst bumbling earlier debates. he caught his stride. he portrayed a more confident figure. if you say the ruling of the conservative party has been in power in the last three elections, they were going for a fourth. it would take them over a decade in power. mr. harper has seen canada through the great recession. the course was relatively unscathed through that moment in time. that would not last long because justin said he would run a deficit to kick the party now
all due to the fact the oil prices have been so depressed right lately. >> it is evoking talks of a recession in parts of canada. what are the polls showing now? liberals at for the the moment. the 32% range. the new democratic party, we have three main parties in canada. left-leaning democratic party is not doing well. they were leading quite well out of the gate. we now see them firmly in the third position. >> is it right the outcome might have influence on the bank of influence. is that correct? that is interesting to mark is the governor of the bank of england. he moved on a slightly shorter term. not ofought it is
interest. he thought he would take a stab at being prime minister -- prime minister itself. for thel not take place next little while. it looks like there is a minority little dutch liberal government. -- betty: thank you. i look forward to seeing more of your reports. still ahead, a big week for tech. importantown what is and what is just noise here in technology, we will be back. ♪ the only way to get better is to challenge yourself,
and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. betty: live, you are watching "the bloomberg market day."
has more from the news desk. ramy: first to eastern europe. thousands are crossing to croatia after countries opened their border to serbia today. neither country had allowed them to enter. the death toll in saudi arabia is now more than 2100. that is according to the associated press and almost three times the number given out by saudi officials. a tragedy feeding into the bitter rivalry between the muslims of saudi arabia and the shiite muslims of iran. thousands took to the street in a demonstration against the saudi royal family. they blamed their government for the deadly stampede. afghanistan's defense minister said taliban fighters were hiding inside the doctors without borders hospital by u.s. forces in the northern city
according to the associated press. they say the administrator tells them they consider the hospital a safe place. 22 people died in the bombing. in an unprecedented media campaign, the islamic state is calling on palestinians to israeli attacks against soldiers and civilians. the video urges would be assailants to use any means available. this comes after weeks of attacks, often stabbings. netanyahu benjamin has condemned the deadly beating of a wounded refugee mistakenly shot by a security officer. officers thought he had been involved in an attack on a bus station. an angry mob attacked that refugee as he lay wounded on the ground. the back and forth between amazon and the new york times is not letting up anytime soon. the new york times article took issue with the culture, work and the amazon ceo
vice president jay carney posted a response to the article today claiming that it was misleading. the new york times quickly responded, backing the article as well as its reporters. look at the first alert news right now. you can find the latest on bloomberg.com. betty: thank you so much. a busy week for tech stocks and some of the biggest tech companies report their latest earnings. it is also time to take a look at predictions that did not pan out. scott joins me this morning and you talk about the big hits and misses. the call six months ago was that macy's would win over amazon. >> i was wrong. i totally blew that. i thought macy's and nordstrom would outperform amazon. i think consumers do want a multichannel experience. there is no design -- denying the amazon has had incredible
momentum execution since i gave that presentation. betty: here now to help us to spell more myths in the tech world, it is ryan, the chairman of the guild group and business insider. congratulations. we call you a serial entrepreneur. do you like being called that? >> there is nothing more fun than starting many companies. start at abig head time when they could get unlimited capital in the late 1990's. and they execute. they execute better than almost any company out there. it is impressive and they have a long-term perspective. macy's and walmart have a lot of money. but amazon did it better. when you focus online, you always win online. what about a company that wants to take a little section of it and try to not beat amazon entirely, do you find it harder
and harder the bigger they grow? >> no, amazon is not the issue there. retail is very difficult but it is hard for amazon to be number one in all 100 categories they go after. they do a little bit of everything. they are going after a he right now. they do almost everything. betty: is it harder and harder to do online retail? the market is fundamentally working. you see consolidation. is a low general emerging business. that will not change. there will be winners. amazon is a big winner and many others. it can be over $500 million a year in revenue after just a few years. it shows a demand, that the pies getting bigger. betty: you are in media. congratulations on elling
business insiders. did you ever think you would sell the company? >> i didn't. i didn't even want to in some ways. biggest news site in the world in terms of traffic. about 90 million per month, globally. passthink the insider will the new york times and cnn and will be the largest news site in the united states, which is extraordinary for something we just started eight years ago. i think it will grow. it is a very compelling offer and i think it is a great harder ship. if we expand more and more internationally, i think it will be a great partner owner and i think the business will grow for the next 10 or 15 years. something i think almost no u.s. media company has done, made a commitment to being strong online. they have 70% of revenues and profits from online. 15 years ago, it was 1%.
they have made big steps and purchased and sold things and u.s. media companies in general have not done that and have not made that long-term perspective. i think it will pay off for them. betty: buzz see -- buzz feed and beenf these sites have built on advertisements, selling their content and it being ad supported. now users are rebelling and saying, we will block these here that i was reading a story saying that they are going to tell users, if you will block the advertisements, you will have to pay for the content. how do you keep making money and there is new technology user backlash with advertiser supported content. >> if we were sitting here 10 years ago, you would have said, known could do something like spotify because there is unlimited free music and known to do anything like hulu or
netflix. both of those have worked themselves out and people are paying for consonant -- content. over time, it is not blocking advertisements. it is really stealing content. people are trying to just not pay any money at all. betty: what do you mean? >> content costs tens of millions of dollars to produce. for viewers to say, it would be better for me if i could just get all but not the any advertisements at all and make sure you get no money, it does not work long-term. at macy's checking out, it would be more convenient if i could just not pay for everything. and yet if i walked out with a t-shirt, it is a problem and that is not fair. this will ultimately work at about. there will be advertisements and subscriptions as well. , people areabout getting fed up with advertisements and they now moved to subscription services. paidbe will be unveiling a
subscription service now they find on nbc and cbs, netflix says they will get into a new service likely paid. vices heading in that direction. that eventually going to heat into the ad supported content platforms? >> both will exist. the larger sites will have unlimited amounts of content and the insiderree and actually has a fast-growing subscription business as well. we do millions of dollars of subscription. it is research but it is really value added content they will pay for. it is part of the ecosystem. people are getting content online and they will pay for it one way or another because it is valuable. ofty: you made a chunk change from selling business insider. what do you want to do next? >> i am always starting new companies.
. started contour one company a year. starting one this year, which we will announce later in the year. last year's contour, house for office. that is really helping architects and firms figure out which in terms of furniture and fixtures, what they want to buy and how to get inspiration. years ago, i started a wedding registry company. i am seeing opportunities in many different places. it is a fantastic time to start a company. betty: is there a new area where you start to see more being minted? investors the other day said to me artificial intelligence will be an area where you will see the next crop of billionaires being made. do you have a similar prediction? kevin: i think you will see a number of billionaires. huge companies. starting, still early.
you will see more companies like a funding circle, different versions of it. it is a big space. education and health care are three multi-hundred million, billion dollar industry's that by startups and coming up with better ideas. i am bullish on all three. whenever we talk online, we talk about politics. what about that in your future? forn: i am not running anything right now. mostly at the city and state level often having to do with tech policies. tech policies becoming a more theytant part of what spend money on and services they provided consumers are frustrated they do not have the right products and we are helping everyone make that adjustment. i would like to help out in some way if i can. thanks for having me. is ahead.h more
betty: good afternoon. vice president joe biden is considering a presidential run and the announcement could come at the end of the week. mark joins us now with more. isn't the window almost closed for joe biden? >> the conventional window is closing. you want to make the final deadline. some say, if he decides he is
not ready now, he could wait until next year, february, see how hillary clinton does against bernie sanders and make a late entry. unorthodox but this is an unorthodox year. do not is mixed but i think the bright -- the vice president is looking at that. polls are a snap shot of what we are. donald trump was low and he auld tell reporters, once i'm candidate, people will see me different way. i think biden's tolls are ok given he is not a candidate. once he gets into the race, things could move in one direction. the simply has -- he has gotten out goes away, his poll numbers go down and some say, his advisers say, he gets in the race and poll numbers will go up and people will see him as a real candidate. run as an incumbent vice president and he has never run as a guide who could say, i'm at the end of my career, i
could be barack obama's's partner to democrats. if you like what happened, vote for me. he never ran at a time he could make the argument as compellingly as now. he is oh-fer to as presidential candidate but 14 vice presidents, i think the number that have become president. if you want to look historically at what job leads most directly to president, it is vice president. betty: just before we go, the benghazi committee hearing on thursday, how do you think it will portray hillary clinton? predictedcould have she would go in this position in such a position of strength. republicans really messed up the pr. if the republicans get back on track, they will have to run a great hearing that is compelling also,-- dramatically but new details of the liquid and
amit ghazi in her e-mails, but right now, she is spending the week preparing to the question is, republicans? betty: thank you. the question of when the fed will raise rates is still on the mind of many investors. john williams, a hike should come in the near future. mike mckee sat down with him for an exclusive interview and he joins us now from san francisco. we are looking for much more clarity on where the fed stance. i'm not sure if we got that from williams today. >> at least you know he is ready to raise rates. the new mantra seems to be, soon but slowly. the fed should raise interest rates soon because they would make progress on inflation and unemployment and unemployment will keep going down and there will be more jobs created then we need at the moment. inflation will continue to rise. the only thing is he would not tell us how he would vote at the october or the december fed meetings.
not speculate about what my views are for that meeting. again, we started a process really of deep dive briefings. it starts tomorrow for us. i spent a whole week preparing for the meeting and we will get a lot of materials and again, listen to my colleagues. i will not decide on that today. >> some of the markets suggest what he may do is soften his views a bit to give himself wiggle room in case the data do not come in as forecasts. the forecast is for a lower unemployment rate, but they will not see that a week from wednesday when they have to vote . so at this point, he wants to keep his options open. what do they say about the timing of a rate hike? i sit is interesting because fed governors have not spoken out a lot about what the fed should be doing in recent years. we have not had a dissent from a fed governor in quite some time. both of them suggested last week
that they do not want to see the fed raise rates anytime soon, which raises the question about how much commitment there is at the fed to higher rates. all right. where does it all leave us? how do we walk away from the interview? mike: probably with the feeling the fed is still open to a december move because williams is a voter, of course. if the data come in reasonably as expected, which means we see in the november or december jobs first fridays that the unemployment rate keeps going down, and we do see the expected inflation, and remember a year ago inflation was really falling during the late fall months because of oil prices, that will fall out of the data so inflation goes up as expected, that it becomes a more live option than it is right now. changehe markets will between now and them.
betty: welcome back. let's head to julie hyman with a check on some of the company movers. julie: taking a look at what is going on with major averages first and then we will get to the company movers. a mixed picture throughout the day, volume is below the 10 day average at least for the s&p 500 and the nasdaq. energy has been the big laggard today, the big drag. oil prices have been heading lower and that has been leading
energy stocks lower as wealth or you can see crude oil prices down 2.5% and we have the china gdp number coming in better than estimated but still showing a downward trajectory in growth. we have been watching weight watchers, shares more than doubling on the news oprah winfrey would be taking a 10% stake in the company, participating in the weight-loss program and talking to people about it. some publicity is there. probably exacerbated by the fact the stock is heavily shorted. 57% of the company's shares as a percentage of float are short. extraordinarily high number. she just squeeze them all. all right. thank you so much, julie hyman at the markets desk. despite volatility in the markets, investors should take some hard because we just heard from john liam's speaking to mike mckee earlier today and he says the economy is still on a
good trajectory. >> my own view is the economy is still on a good trajectory. the growth in my forecast continues to be 2% or above that on gdp growth. job gains and on employment to come down by late this year and early next year. i still think we are on a good trajectory. ok let's get to gina martin adams, at wells fargo securities. gina, you have not changed your forecast either. gina: we have not we're sticking our guns, sort of carrying us through. we eventually feel the domestic economy will carry us blow the crisis. it sometimes takes a while and right now, we are dealing with the offsetting impact of an overinvestment in the energy sector, deflating the economy, and maybe a little bit of reinvigoration of domestic growth, housing, you cited the
wells fargo index today at a 10 year high. housing, conditions are pretty solid. prettyr conditions are reasonable. those are offset by the energy sector right now. eventually, the energy sector will reach bottom and we will be able to see the benefits of growth. a 20% spikeems like in oil prices. gina: we thought we reached a bottom back in the march time as well and we had not. the market is in a process of finding the bottom this year, to really get confident that the bottom is in. you want to see prices rise on accelerating demand. quite area. as a matter of fact, global growth estimates have only fallen in the last several. economists are rightsizing growth for 2016. until we see expectations hit bottom and recover, i am just going to suspect that oil is finding a bottom as opposed to
officials having reached it. betty: it does not seem like anything will change her mind. you are changing your forecast in your assumptions. neither are the economic numbers changing her mind. >> not right now. what could change our mind is if -- numbers to take deteriorate substantially. if growth numbers suddenly plummet or rise [indiscernible] ahead and really gets starts moving the fed funds rate a lot, we do. so far, the market is kind of complying with our asked patients or a flat to slightly positive energy earnings growth. no change in the fed funds rate right now. very slow growth. not a lot of inflation. give it a 50-50 chance if they go in december. they still think there is a pretty good chance that in december, they do tighten policy. if not december, they push the
forecasts from march to april most likely. betty: it is too early to rotate inter-energy. -- into energy. , 20% oil prices are rising off of the bottom in late august. the other conditions do not exist. you want oil prices rising on come -- on recovering demand. seegenerally also want to earnings revision momentum turning a corner and it is still negative. the third thing is you want to see the dollar falling. there is an intensely negative correlation between the negative performance and the dollar and that will drag energy for a while, we think. betty: thank you so much. we will be back. ♪ buddy- nice place, nice car what happened?
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economist. scarlet: u.s. stocks living after an eight we hide. commodities rising against all odds. the question is what it you miss? stanley kicks it off with disappointing earnings. scarlet: china selling tons of u.s. debt. commercial banks come to the rescue. are going to speak to a renowned economist on the market's monetary policy. scarlet: we begin with the markets, equity indexes closing just around session