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tv   Bloomberg Markets  Bloomberg  October 20, 2015 2:00pm-3:01pm EDT

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from bloomberg world headquarters in new york, good afternoon. i'm david gora. yum brands is splitting into. the fast food company is spinning off one of the most valuable parts of its business. starting salaries for nba graduates are higher than ever. after graduation, women are still earnss tn men. approval fast-track for a cancer drug it's working on with pfizer. the company's ceo joins us with a look at what else is in the pipeline. but first, let's head to the market desk with bloomberg julie hyman. stocks and now tolerated a little to the downside, averages and the rent a little more significantly, particularly the nasdaq. .75%.
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it seems like biotech. we saw a bit of a mixed picture with green and red evenly split on screen. telecom stocks doing the best after verizon earnings. but health care and technology both teaming up to be the biggest drags on the major averages. health care is down more than double the decline we are seeing intact. take a look at the nasdaq biotech. there's so much vitality within biotech. it's down -- volatility within biotech. horizon pharmaceuticals and afterd, horizon following the new york times that many insurers do not want to pay for many of its medications. and horizon is in the process of trying to buy depomed. is happening in large cap a biotech, it's not just with these little guys. ,f you take a look at biogen
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they are selling their as well. you're going to get earnings for many of these companies as well. analysts are optimistic that this will help with these concerns about pricing behind them, but not today. david: what's the latest on tesla? you were talking about negative reviews. julie: tesla's model s has been really highly rated. its annual reliability survey, consumer reports said there were concerns on the part of tesla drivers about the company's features, including the sunroof, and issues with replacing the electric motor. tesla is out with a statement in just the past few moments, pointing out the consumer reports surveys also still has very high scores for the consumer relationship between tesla and its customers, it's responsiveness, its customer service. replying,ng out in
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making an answer to what consumer reports is saying. it's not helping the stock, which is down 10%. david: julie, thank you. that's julie hyman at the market desk. mark crumpton has more from the news desk. mark: there's one less candidate in the democratic president shall field. today, former virginia senator jim webb officially dropped out of the race for the white house. webb has struggled to gain traction in the polls. jim webb: i'm withdrawing from any consideration of being the democratic nominee for the presidency. this is not reduced in any way my concerns or the challenges facing our country. my belief that i can provide the best leadership in order to meet , are myallenges intentions to remain fully engaged in the debates that are facing us. webb did not rule out launching a presidential run as an independent. his departure comes as hillary clinton's champagnes -- campaign
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is showing signs of a rebound. she is widening her lead in the primary lace -- primary race after losing ground to bernie sanders. shows mrs. clinton leading the primary field with 49% support. that's compared with 29% for senator sanders and 15% for vice president joe biden. nearly 40% of those surveyed said the vp should not run for president. pentagon says the u.s. and russia averaged an agreement that minimizes the risk of incidents in syrian airspace. pentagon spokesman peter cook does not include zones of cooperation or shares of target information. russia began flying bombing missions in cooperation with the syrian government earlier this month. an international coalition that is conducting airstrikes against islamic state targets in syria. you and secretary-general ban ki-moon is in the middle east, visiting israel and the palestinian territories.
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the violence that continues to escalate. the trip comes after a series of palestinian attacks, most of which have involved stabbings that caused panic across israel and raised fears that the region is now on the brink of a new round of violence. that's a look at the first word news right now. you can always find the latest news on david: now to company news. after theyum brands parent company of toggle bell and pizza hut announces plans to spin off its struggling china business. named a days after they protége of carl icahn to the board. the separation of these two businesses gives shareholders the choice to own a growing annuity like franchise cash flow stream. it's the leading restaurant chain with the fastest consumer class. joining me is craig giammona.
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did this come about because of what keith meister agitated for? they've been having trouble with the zipline issue, it's taken them longer than they have said all along to get back on track. they had bad earnings, the stock got crushed a couple weeks back. but it pusheddea, to the forefront. yum inwhen you look at aggregate, how is the business run in china versus the u.s.? craig: the structuring is a vestige of when they try to get out of the restaurant business. 52% of the revenue comes from china. particularly in the u.s., it's not really a big of a part -- especially with the stock price. taco bell get swept under the rug with this china stuff. now they're going to have china more tidy, and these other
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prominent u.s. brands on the other side. they are giving investors two different things they can get involved in. david: this company will run as a franchisee of yum proper in china? that's right. read franchising is a big thing in quick service restaurants. mcdonald's has made a part of its turnaround plan. burger king when 3g capital came in said we are selling off all the restaurants except for 50. it lowers costs and make the balance sheets look better. yum owns a 75% of those restaurants in china. that's a big part of that, getting those off the balance sheet and read franchising as they call it in the industry. they take a royalty payment from the chinese business. the remains to be seen exactly how it will be structured. those businesses are no longer part of the yum balance sheet. struck by, much this company thinks they can grow in china, from 6000 restaurants to 20,000 restaurants. it doesn't give a timetable. it's talking about bringing taco bell to china. how realistic are those goals? china will beink
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ok, and that they will be in china. it's been bad headlines going on a year almost. it seems at this point, it might -- how are they going to emerge from this? that they are still the biggest restaurant and company in china. kfc is the biggest brand and the most stores by location. assuming the macro stuff doesn't get too bad, they think that yum could still be very strong in china. david: they got in so early, now we are seeing other restaurants at their heels. other size they may lose their holding china? -- there hold in china? craig: it's not unlike what we see with mcdonald's in the u.s.. mcdonald's has been around in the u.s. longer than yum in china, they been there since the 80's. there is fatigue, there's younger brands. china has millennials to that have different tastes. kfc, they don't think it's fun
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or exciting. some of the fatigue has set in. david: you mention the supplier scandal couple of times. have emerged from that? craig: they haven't emerged. the brand took a hit, they said it was a couple more months, it's been a couple more months and the sales numbers haven't bounced back. the analysts say they will get there, the sales will come back. there's a burgeoning middle class in china, all signs point to the sale being good. they haven't done that yet, it's been elusive. that's a key piece of the turnaround. david: craig giammona with bloomberg news. coming up in the next 20 minutes of the "bloomberg market day," justin trudeau was victorious in canada's election last night. the real winners might just be certain stocks. released businessweek its annual rankings for the country's top business schools. who ranked highest? that's next. and glencore is cutting back its zinc output for -- by one third.
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what that means for the global market. that's ahead on the "bloomberg market day." . ♪
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david: welcome back to the "bloomberg market day." it's time for the bloomberg business blast, a look at the business -- biggest business stories. buildinge is buying a for $5.3 billion, and it puts manhattan's biggest apartment complex in the hands of the world's largest private equity firm. record theut of the prior owners paid before they walked away from their investment, marking the collapse
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of a big investment. 4000 employees are covered by the deal at the world's largest cargo airline. fedex plans to partially offset the cost of the contract by adding more fuel-efficient planes to its fleet. a coalition of advocacy groups plan to deliver petitions to subways headquarters on thursday, calling for a change --meet raised with now without antibiotics over a six-year timetable. at bloomberg's julie hyman has a check on the markets. julie: i'm going to stick with food and beverage. monster beverage, although it's linked to food.
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and analysts said that some mcdonald's have been testing monster beverages. it could be worth $1.5 billion -- $1.5 million for monster in the united states. coke is forced a partnership with monster, it also owns about 16% of the country -- 16% of the company. this could spread potentially to other fast food restaurants as well, according to that analysts. food, the other stocks we're walking -- we're sam adams coming out in raising its buyback , raised to a neutral from sell over goldman sachs. though shares higher by 6%. and brinker, the owner of chilies, cutting its forecast for revenue in the first quarter
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missed estimates. i'm looking at the breakdown of comparable sales. overall down .5%. -- the only place they saw beating estimates was there international franchisees for chilies. otherwise, negative results sending the shares down by 7%. --uld i make a bad food fun? pun? not so tasty. david: julie hyman at the market desk. when women graduate from top business schools, many of them had a glass ceiling. the average starting salary for women with nba's was $98,000, compared to $105,000 with men. and me are francesca levy jonathan rook. this is a gap that starts after students graduate and widens as time goes on. francesca: it's not the biggest and as they get out of school.
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it continues to 140 for women and 175 for men, 60 years out. -- six to eight years out. one of the things driving that is bonuses. it's not base salary, although that is part of it. is this extra income that many people depend on, that you check of their salary. it comes around every year at the performance review, bosses are making decisions about individual people, it's trending in the direction where qualified men and women are getting different outcomes and the difference grows and grows. david: you have women perhaps you are not on the track to or becoming bosses the same way that men are. francesca: that's right. john crunches all the numbers for us on comedy people women manage. jonathan: the median number of direct and indirect reports for women was three in the survey of alumni and five are men. that's a big gap. david: the data is crunch differently. talk to me about how you approach these rankings. this year harvard is on top,
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what was the change in strategy? jonathan: we pivoted the rankings to focus on job outcomes. in the past we included like faculty research. but mbas want good jobs. we added an alumni survey, which is how we have the new numbers on the gender pay gap. we track people over time. we have job placements and starting salary figures for the first time. harvard beat them out on those quantitative measures. compensationotal for mba alumni from harvard was to 90. -- $290,000. david: where are people going when the graduate from business schools? francesca: 60% and up and financial services, consulting, and tech. those of the industries you think of business school sending two, and that is the industries they are sending them to.
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they are making inroads with entrepreneurship, trying to send more people to startups and doing more nonprofits. it's not yet being reflected in our numbers. we are still seeing the mbas where you expect the mbas to go. those three core industries, tack has been the one that has incrementally picked up. or something like a percent 9% that said right out of mba, they were contact, right now it's 13% or 14%. david: i was reading analysis of how many new business schools crop up, and they're still growth in terms of the quantity of business schools out there. jonathan: it's a decent bet is a business model to include a business school. the nonprofit university, traditional, and the for-profit schools. some of which are accredited by the big accrediting agencies. francesca: we rank over 100 schools. you can see as you scan down on is elite it really business schools where you get
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the biggest nk for your buck, even though this tends to be the priciest ones. just because there are lots and lots more business schools, doesn't mean every single business school will get you those great outcomes for those harvard, columbia, stanford salaries. david: the alumni collections -- connections matter. part ofa: that's a big it. business school is it to your job interview, you want to meet the leaders of the industry you are going into. to want to have connections if you are at stamford, startup funding. at harvard, i don't know. you can meet these people and really get into a very small, elite, privileged group in the certain industries. david: there a caveat at the bottom of this, a note to prospective students saying don't let rankings alone make your decision for you. when you come up with a ranking like this, how do you see it being used? jonathan: it's being used as a starting point. theseusiness schools have
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conditions. there are people applying and getting interviews and getting in. in october you have a lot of people setting out to craft a master list before they call it down to those they will apply to. it's a great starting point. figure out what matters to you and look at the methodology and context of what matters to you. francesca: we are clear about how we refined our rankings. we really look at which schools send you into the best careers. there are plenty of other things that people think about that you can only learn from students or alumni or a number of different factors, even looking at the school's website. think about how much you care about those other things. jonathan: i will give a shout out for continued data-driven articles that will dive into some of these other factors. there is aspects of the campus climate, things you can learn. we collected trove of data, not all of which we fit on this. francesca: we are not in reporting. david: francesca leavy and
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jonathan rook. thank you. we talk more about the tesla stock decline in the wake of the consumer reports review. that's next. ♪
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david: welcome back to the "bloomberg market day." a diveat kessler taking today after consumer reports drops the model s from its -- shares of tesla are taking a dive today. not only did they drop it from their list, but it's a car that consumer reports has been trumpeting for a long time. it's been at the top of the list. how big of a deal is this that we've seen the stock price fall precipitously? >> the most interesting note in the consumer report is the last paragraph when it talks about what does this mean for tessler going forward as they moved to high-volume manufacturing in the model three?
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they are saying is still a great the best a great -- car they tested, but their issues on the service side with the doors, sunroofs, and owners have been very forgiving. tesla is trying to manage expectations and help customers quickly. but this is not a car that is totally problem free. david: you mentioned to squeaks and rattles, but there are complaints about the motor itself. that's much more troubling if people are having to get their motors replaced on a car that's only a couple of years old. dana: that's right. remember, tesla does not have a traditional dealer network. all of the service is happening in house by tesla directly. it's a fast growing company that is trying to build out its service network. it sounds like owners have been happy with the service they have gotten, but the fact that there are service issues with the vehicle is what has led consumer reports to come out with this headline -- reliability doesn't
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match high-performance. david: tesla made such a big deal about how the software in the car can be updated from afar. it sounds very novel. is that going to be the cure-all? buy these things they could be fixed with software updates, or do we not know? can bet one of them fixed with software updates, but their hardware issues. i don't know that software can fix this wiki door. it's just like in a company that is young and new and growing fast. there are kinks that need to be worked out. model s owners need to go the distance, the question is whether owners of the model three will be as forgiving. this is the lower-priced car tesla has been promising for a while, under $35,000. it's been delayed a bit. talk about with the hurdles might be. they are placing a lot on the car coming out. teslayes, and i think always sets very aggressive
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timelines goes the acts -- because the x was delayed. i understand there is a team of people on tesla working very hard on the model three. we are still talking about a company that aims to deliver between 50000 and 55,000 cars to get to the volume they are predicting. i want to ask about the size of production. they are still not making that many cars. dana: right. so far is that delivered about 33,000 for the year. hull with bloomberg news. ,thank you. ♪ ♪
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(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. david: let's get to the headlines. mark crumpton is at the news
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desk. justin addressing supporters at a rally in ottawa, canada, at this hour. you're looking at a live picture. he said last night positive politics led to his victory and he said the canadians send a message of change. he is 43 years old and the son of the late foreign prime he becomes the second youngest prime minister in canadian history. the wisconsin congressman paul ryan is set to be having a change of heart about becoming the next speaker of the house there the washington post reports that before ryan makes a final decision he plans to make assurances from public -- from republican hardliners. he initially said he had no interest in succeeding john boehner. the american cancer society now says women should start gaining annual mammograms at the age of 45 instead of 40.
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it is not a blanket recommendation and women should stick to the doctors for the best plans for them. $550 million settlement with big tobacco. says theeiderman agreement was during a decade-long dispute between tobacco companies. fifa is taking the gag off its ethics committee. is expected to name names wednesday when it publishes a list of officials currently being investigated. the decision is a sharp policy turn for fifa. in the past, the ethics committee has been allowed -- has not been allowed to identify targets. a 12 year term limit for incoming presidents and an age limit of 74. ♪
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that is a look at the first alert news right now. back over to you, david. david: thank you. let's look at commodity movers as trade starts to settle. chilly weather in the northeast is heating up natural gas prices and turning to metals. futures led losses in london today. investors are trying to after glencore cut production in one of the company's rivals plans to expand its operation. joining me now, joe. the chairman of bloomberg lp is a nonexecutive director of glencore. to me about what glencore did. it is closing down and scaling back. everybodyl the news already knows, a $30 billion debt pile, slumping commodity prices. it was obvious to them that they need to start making cuts and one that they announced recently was scaling back on curtailing
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production of zinc. the market had a bit of a jump after the news was announced, mainly because a lot of people were not just expecting this to come along. >> for those of us who do not know what zinc is used for? >> about half of its use is galvanizing steel. is it a huge deal considering the amount of steel production. long as we see demand for steel, we will have that go with it. decides to cut its output. what happens? we see a real spike. >> we do it we were expecting two large mines. coming off line this year. two of the largest. we were expecting some sort of shift in 2016 according to a number of different analysts. this year, a lot of people think , ok, it is not done yet.
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a question now, well, will it actually happened? glencore comes out and says no, we are actually doing this. that is something people were not anticipating. say, prices are low enough for us to continue to produce a profit and now that glencore is off-line, why don't we continue producing. saying we have rivals are able to do this so we will. >> right. this is what we get used to. listen, if you cannot cruise right now, we are cheaper and we can do it ourselves. so this is really what the market is not necessarily struggling with but at least for today, that is possibly why it was a little bit lower. big of an investment over talking about? >> certain analysts, you could be talking not humongous but somewhere between zero and 100,000. but it is up to the analysts to decide. that range is about where you
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see most people if you expected deficit in 2016, there might be more there. david: thank you very much joe. coming up in the next 20 minutes, conservatives are out in canadian of -- canadian elections. atheists come back in history and we will talk to someone in toronto about what industry one big. one of the world's's oldest pharmaceutical manufacturers just teamed up with the world's's biggest pharma company. and marissa mayer is in the hot deep. yahoo! reports its latest earnings to all that and more is coming up. ♪
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david: welcome back. stocks fell when the dow fell 80 points. julie joins me now with a closer look at the sector. been: stocks overall have volatile today, continuing on the trend we have seen recently. as of right now, we seeing stocks up on the lows of the session. all three major averages are negative at the time. to sector david is referring is industrials. look at my bloomberg terminal. we are seeing industrials as one of the few groups, seeing an uptick in volume today versus the 20 day average. volume is 13% above that level. that is rare. of the see almost all other groups are seeing volume declining today. if you look at what is going on here, you can watch the industrial etf, one way to measure it here. you can see is -- it is up about .5%.
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it has to do at least in part with earnings. i want to point out a couple of individual movers that really stand out. dover is one of those. ae maker of machinery for number of different industries. it is curious reaction we are seeing in shares today. they are higher by almost 7% even after the company came out with a forecast for the full year below analyst estimates. it looks like it has adjusted earnings per share from continuing operations for last quarter, above analyst estimates. that seems to be fueling the shares. , the maker ofogy helicopters among other things, the company making a couple of announced mints, announcing its earnings would beat estimates and also the plans to make large acquisitions. it says it will instead direct its cash for $16 billion worth of stock i back. it looks like investors are happy about the cash return to shareholders. david: thank you very that is julie hyman at the market desk.
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the 43 eurosada, liberal party leader just and just wrapping up after sleeping -- justin is just wrapping up after sweeping. now by phone to explain, pamela, i can only assume this is because the prime minister has been not shy to say he plans to run a little bit here on these infrastructure programs. that is exactly right or you plans to run a deficit of $19 billion, u.s. dollars. 25 billion canadian dollars. it is for infrastructure spending and it will also tax the highest earners. that is part of his platform, while giving back if you tax breaks to the middle-class. a technical recession for the first half of the year. oil is a big reason for that. in export. oil is sitting at low prices
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which is a huge impact on canada. he felt it was time to spend and that was in deep contrast to the previous prime minister stephen harper, who had just returned the country to a surplus position and was very proud of that during the campaign. it looks like canadians wanted suspending and wanted some change and this is where it goes from here. crude will also be quite in support of green policies, probably when we see him at the paris summit for climate change toward the end of next month. we will see probably a new canada to out for follow, some of the money going into green infrastructure spending. he also said he is in favor of legalizing marijuana and there could be growth in that sector as well. pamela: he is in favor of regulating it, legalizing it, and we will be seeing a huge jump in a couple of stocks that have been on the market in canada, one of them is canopy
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growth. have the ok from the canadian government for medical marijuana purposes and we have seen investors flow into the stocks through the trade today. david: we saw his facility for retail on the campaign trail. we saw his career. what do we know about how he will govern? he has a lot to take care of here in the next few months area obviously the betrayed deal he has to weigh in on. what do we know about how he will govern? pamela: i think it is a big question. a lot of people voted for change and with that comes a lot of unknowns. he is, as we mentioned, a young prime minister. he is not the youngest actually. joe clark was the youngest a couple of decades back. he is young and frankly was painted as a bit of a bumbler and had a rough start to the
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campaign. it was surprising to many how he found his seat later in the campaign. i think there are questions around it. what we can go on is his platform of a little more taxation for the rich, more spending for the overall economy, and as you say it, perhaps a little regulation and legalization of marijuana. david: pamela joining us by phone. thank you very much. look atme now for a some of the biggest business stories in the news right now. a senate panel will hold a 100 $6 on the proposed billion purchase of sab miller. the chairman, public senator mike of utah said the hearing would be an opportunity to examine the impact of the merger on consumers. senator from minnesota said the merger proposal raises serious antitrust concerns for the $100 billion a year beer industry. the date and time of the hearing has not been set. to pay $787 million to
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u.s. regulators to settle allegations that it violated sanctions in iran and sudan. the french banks will hire an outside monitor to oversee the anti-money laundering controls. sony has read to pay as much as it may dollars to settle claims from employees to settle a data breach linked to the release of the movie "the interview or co- as $4.5l pay as much million per they are set to get as much as three mayan dollars. officials have blamed north korean hackers for the breach. you can always get more business news at turning to the oldest drug maker that has still -- relied on special counters but it is now working with pfizer. a jug making unit that when within a decade without making a product. for more, i am joined by the ceo of merck kj a. great to have both of you with
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us. you will forgive me. i will not be the first to point out there is another merck and you are trying to differentiate yourself and you have done it now. you are reorganizing the company and rebranding it. classes mainly a consequence of the transformation. the company today is not what it was 10 years ago with the acquisitions. the branding gives us his own character, bold and vibrant and focusing on what happened. about thek to me organization. you have been at the helm for eight years and the time has come to a close. talk to me about how the company has changed over the last eight years and what your focus is now? turned from a conglomerate to a company focused on three areas. health care, performance materials, life science.
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leading positions in all three sectors, very much focused on r&d. i would even say we bring the best of both worlds together. we have a long and sustainable and are with the family very much results oriented and before mr. evan this combination now has to be expressed. in the form of business, what products in the pipeline are you most excited about? where do you see the most potential? >> i am excited about oncology. i am also excited by the prospects which could properly prostate in tackling -- as early development, it is something very interesting. 10 is moving
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how much has the development of pharmaceuticals changed? big data used now for all sorts of things. drug developments and i know you have been working on acquisitions in israel as well. has there been a change in how drugs are developed? >> the beginning of the change, big data has an influence not only on the development but the health care industry as a whole. we're focusing very much on follows as it comes to objections and treatment of other things. it is more on communication between the physician and the patient. also, an ever-increasing role, i am sure. >> the price of pharmaceuticals has been a big issue in the news recently. curious if you think that issue will seriously impact the way
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drugs are priced going forward or if it is something that may lose steam. u.s. should be proud of having a private system which rewards innovation. the europeans should take an example of what the u.s. is doing there. it is creating not only countless jobs in the u.s. i would not likely give up on that. it is about rewarding innovation. us have to, all of guarantee affordability for all in the population and that is clear. i would hold that up. david: i think that would surprise a lot of people to hear. how different is the structure in europe than here? >> the prices in europe are much larger, much more controlled.
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their interest -- there are situations where we will not issues to drugs to the market. have talked about collaboration with pfizer. you are looking to acquire aldridge. something that deal is all but done. as you look to the future and you still have a year and a job, do you see more partnerships and more acquisitions like that? what does the future hold? we could announce today that we have cleared the wrath -- the last regulatory hurdle. i expect closing of the andisition in november then we focus on repaying debt and deleveraging the company. focus on partnerships will continue. the pfizer deal is certainly the biggest but not the first and it will not be the last. you can only succeed if you are
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partners with the right people. david: thank you very much. , the biggestt names in tech have just started rolling out third-quarter results with yahoo! reporting in a couple of hours. investorspdates are looking out for? we will tell you coming up next. ♪
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david: marissa mayer is expected to take the hot seat, answering questions about its alibaba steak and key executive departures. johnson joinsorey
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san francisco to talk about it. i have to ask you about that jacket first. it is a bright one. >> it is. breast cancer awareness. every 19 seconds in america, a woman contracts breast cancer. drawing a little attention to that. reporting.! is what have you got? david: it is hard to talk about this company without talking about alibaba. has been increasingly an appendage of this. marissa mayer's thinks she will be able to spin it off. what is the latest? cory: the company continues to say they will spin off the asset by the end of the year. there is no clear indication. what they are trying to do is match their alibaba asset with their chinese -- tiny yahoo!
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small business and put them together as a separate and spun off company. the concern is that the implications will be huge and give thems refused to an early warning or an early sign off saying do not worry, there will not be early passes on the spirit yahoo!'s advisers are telling them they should not be much implication for this. what you can see in the trading of the stock is the market is concerned there will be a taxable result here. if there is none, the yahoo! business is virtually free because the alibaba asset will have such value after the spinoff. that is the big question. will the spinoff happen and can they give us any more clarity about the implications for the people who will own that part of the spinoff? if there are no taxes, yahoo! is a steel. if there are, yahoo! may be overpriced right now.
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understanding that is really the whole thing as far as investors go. discussion, the actual future of yahoo! as a stand-alone business. smith was on making that point. he was saying it is a real value and it is worth buying. >> my stock went up after the early ipo and alibaba has come back down and yahoo! moves to some degree in line with alibaba . as it relates to the expectations for the spinoff, where the stub trades today, which is yahoo!, less a portion of alibaba, it is really not reflecting any value. is it pretty much reflects the worst-case scenario in terms of full -- full taxation. we think it is a terrific opportunity right now.
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>> a little optimism. does that encapsulate how people are feeling? the other thing people will look at is the focus on the yahoo! underlying business to what is the business and what is the value and what have they dollars? billions of we will focus on all of that on bloomberg west with emily chang today. we will have those results. we might know a lot about the future of yahoo!, alibaba, and marissa mayer. david: thanks very much. a lot more for you tomorrow. ♪
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>> welcome to the bloomberg market day. ♪ betty: good afternoon. here is what we're watching this hour. stocks are fluctuating as construction heats up on housing projects in the u.s. multifamily construction appealing broader concerns in the housing market. tesla shares are tanking after the sedan is pulled off of the consumer reports recommended that spirit is it a bump in the road or a serious sign of problems for the elon musk company? and nike shares are up more than 7% this year. that the run may be about to hit the wall. we are one hour from the close of trade on this tuesday. i want to head to the markets where julie hyman is really


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