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tv   Bloomberg Markets  Bloomberg  November 10, 2015 10:00am-11:31am EST

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from bloomberg headquarters in new york, good morning and we have breaking news -- jpmorgan confirms it was one of the major banks that were targeted as a victim of hackers who are indicted and are on trial right now. some of the world's largest banks, jpmorgan confirms they were one of them. they were victims of hack attacks over the past 12 months. hackers are in a federal grand jury trial. the 4 have been identified. we will have more on this story but keep watching this developing story. we are about half an hour into
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the trading session. let's go to the markets desk with julie hyman. julie: we are not seeing much effect on jpmorgan stock. this is a lagging event so let's look at the broader markets. we are still seeing some fluctuation and weakness and a little bit of a mixed market after five days of the kleins for the major averages. -- five days of declines for the major averages. we are getting to the end of earnings season and there is not a lot of catalysts following on last week's jobs report. now there is a bit of a drift. one of the tactical levels people have been watching is the 200 day moving average. this is the s&p 500 and this purple line is the 200 day moving average. it came close to it. it bounced back up again. that's one of the levels that traders have been watching.
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overall, it's kind of a drifting feel with the s&p 500. asty: one stock getting hit apple on this report from credit suisse? julie: it's about the supply chain. we typically have analyst looking at the supply chain for a big company and extrapolate demands from the supply chain. today applee said has lowered its component orders by as much as 10% according to the team in asia. apple shares are down about 2.5%. credit suisse remains positive on apple itself and they highlight the prospect for a new, smaller four inch iphone and there could be renewed demand for that product. as you look at the component makers for apple, we see them declined today. these are a few of the companies affected.
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we've got the supply chain with apple in the center and you can look at the suppliers on the left. you have to do some extrapolation because on the are the suppliers. supplye companies that the suppliers so you have to follow the chain. there are a number of companies that are dependent on apple. betty: thank you. let's check in on first word news. morning, we start with fast food workers marching this morning in nearly 300 u.s. cities. organizers call it their biggest protest yet, a whopper. they are demanding hourly pay of at least $15 per hour which is more than double the federal minimum wage.
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political organizing is also planned for candidates who back there cause. realignmeron wants to with the european union and he called on them to make irreversible changes that would give the u.k. more econ -- autonomy. eu,ere and elsewhere in the some say this is mission impossible. i say why. i do not deny that seeking changes which require the agreement of 27 other democracies and their concerns is a big task. but in a possible one? i do not believe so for a minute. vonnie: one of his main demands is more control over migration. welfare fromar refugees for a few years. teams of european, russian, and middle eastern inspectors are looking at security measures at the cairo international airport after the crash of a russian airliner that took off from the
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airport. they are examining the scanning of passengers, cargo, and tag it. security guards and caterers are being inspected. slovenia wants to build a new wire border fence to keep out the refugees. that's a look at our first word news and you can get these and more stories at the new bloomberg.com. betty: thank you. up theu.s., there is an report out of goldman sachs this morning, they see a 60% chance the u.s. expansion continues and hits the 10 year mark rivaling the record of the 1990's
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expansion. joining us now to talk about global finance is the one and only niall ferguson. he is a professor from harvard. it is great to see you again. looking at this report from goldman sachs where they say this expansion is going to continue in the labor market is improving, do you believe this? i don't think it's an impossibility. we inhabit a very different world from the precrisis world, a world of extraordinary unconventional monetary policy all over the major developed economies and soon in china. i don't think there is any obvious reason to believe that there will be a recession. the only reason people say this is they have a habit d and assume we must beue. that data is showing considerable strength.
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inflation in wages is beginning to show signs of life. that's why the fed is thinking of hiking rates next month. betty: absolutely, but there are predicting or warning that we could see a recession. part of that is prompted by the fed if they raise rates too fast, it could kick the u.s. into recession. david kelley says there is a chance we might see that in 2017. is that a possibility? implied with a 60% possibility, there is a 40% probability for him to be wrong. that's worth taking seriously. the headwinds are there in the strength of the dollar. a fed hike will increase pressure on the dollar.
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that is squeezing some sections of the u.s. economy but it's not an export led growth in the united states. putting thers are crisis behind them. they are beginning to feel some meaningful improvement. it would be surprising if that were to produce a recession. i think the outlook is relatively bright for the united states in 2016 and so does the imf. in 2016.well above 2% it's true for most of the egg english-speaking economies. that a lot oftion it in 2016 or a good amount of it will rise and how china does. this is something you have focused on. the government came out with their latest five-year plan. put said they plan -- they a floor on growth, 6.5%. will they make it and was that a
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mistake to put a number there? well, we all know these growth numbers that are officially released in china have a magical realism policy to them. it could be the growth rate is quite significantly below 6.5%. on the other hand, there is too much pessimism about china and days.s. these i was just in hong kong and when you talk to people who are close to the mainland market, you find out that services like retail are growing yang busters. manufacturings in and construction which we got used to as the leading sector of chinese growth. we are witnessing a significant structural rebalancing in china and that was the intention of the last five year plan. it's not entirely surprising that things have gone according to plan. betty: are you suggesting we stop paying attention to their
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gdp numbers? one has toink look at other numbers like trade numbers. we can double check them against the trade counterparty. it's interesting to notice how much chinese imports are down in the last couple of months. they have big declines and even modest declines in exports. the decline in imports tell you a story you cannot ignore and that's where i'd be inclined to say the growth is nearer 5% right now in china. this will not be picked up and trade figures and the restructuring means we need to attach more importance to different indicators. indicators,chinese our best indicators for tracking the growth of the service sector economy in which domestic consumption plays a bigger role. some people in the west have not
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gotten used to the fact that china is changing structurally. betty: it absolutely is and with that will come a different set of numbers but also different growth rates. you mentioned exports. let's get back to the u.s. economy. the president has written an op-ed on bloomberg view touting the benefit of the transpacific partnership. i want to read you one part of his op-ed where he says that companies that sell their goods around the world can to grow faster and hire more employees and pay higher salaries than companies that don't. what is your view on that? >> it stands to reason in the sense that a lot of the things that are not traded like haircuts are not at high volumes. things that are traded are especially in the united states.
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they are not exporting that much in the way of primary products. high technology is one of those things. cpp becauseead the it's enormously long. act lookthe dodd frank like a tweet. this is a enormous and complicated deal. most people have yet to read their way through the small print. betty: they did try to summarize parts of it for the american public but i agree, it is a slot to get through. will he get through congress? >> i would not like to bet a significant amount of money on that. however the small print reads, it will be relatively easy for the president's opponents in congress to find things to object to. remember, the president's power waver but it was
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never that great to begin with. have been as an effective get congress to do their bidding. tpp has a huge hurdle to get across in washington, d.c. betty: thank you so much. we will have much more on tpp and the president's op-ed today i'll talk with former defense minutes --ill: in 20 cohen in 20 minutes. are coming out of the bloomberg year ahead summit including an interview with united therapeutics ceo. ♪
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betty: good morning and welcome back. we will look at some of the biggest business stories in the news. a court ruling could force general motors to pay millions more in punitive damages. the judge said they could be liable for problems that happened before demurs from bankruptcy six years ago. the losses stem from the defective ignition switches. the plaintiff would have to prove that the reorganized company knew of the problem and covered it up. the uaw proposed contract with ford would do more than boost worker pay. it would bring production of ranger pickups back to america as part of the companies $9 billion plan. members would get raises and
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signing bonuses if they pass the agreement finalized yesterday by uaw leaders. pull to a in thousand dollars to owners of cars and desk volkswagen has offered $1000 to individual owners. many dealers are stuck with cars they cannot sell so vw is offering them cash and no interest loans. you can knows get more business news at bloomberg.com. let's go back to our markets desk and julie hyman. julie: i am looking at consumer spending. there was not enough consumer spending. gas issues continue. issues continue. profit in the past quarter, $.63 and analysts were looking for is due in part to
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banana republic. old navy continues to be a source of strength and is up 4%. the gap has been trying to write the ship. consumer spending is a little better on the housing front. d.r. horton is the largest u.s. homebuilder and the company is out with fiscal earnings that rose by 44%. the strategy has been to try to appeal to all segments of the housing market from entry level to luxury and it looks like that strategy is paying off as the shares right by -- rise by 2.5%. lions gate entertainment actually reported a disappointing quarter because not enough people went to see "the last witch hunter." however, the shares turned there wereply after stakes being taken and the company come about 5 million shares which is 3.4%.
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the liberty ceo and the discovery ceo will be joining the board of lions gate. it looks like there are some options with that and lions gate is still suffering from the absence of hope what the hunger games." did you see "the last witch hunter?" betty: that was off my radar. julie: they made another movie called "american ultra." betty: we just proved it. still ahead, we are going to beijing for the chinese version of cyber monday. holiday rate in $9 billion in 24 hours last year and are they on track to hit the same numbers for alibaba? ♪
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betty: welcome back. we are heading to china.
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retailers are gearing up for the annual shopping festival known as singles day. cecilchang spoke with barra to find out what the smart phone maker is expecting on a single day. >> this is one of the biggest days of the year for e-commerce and china. as an e-commerce company and the third largest we have to be ready for this. we have prepared about 2 million smart phones so we can sell them in one single day. betty: emily chang is in beijing. how much shopping is expected to get done on singles day? emily: this is a good excuse to go out and buy something for yourself. this is something that was invented by alibaba in 2009 as a
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reaction to valentine's day to get single people out there and shop. alibaba is kicking off the biggest shopping day of the year at the water cube, the iconic: big venue, where michael phelps won eight gold medals back in 2008. they expect more than $9 billion in transactions you happen on the alley baba platform. that's what happened lesser but i've seen estimates as high as $14 billion. there are more international brands participating this year. apple, burberry, costco, macy's and we will speak with jack ma as the clock ticks down tomorrow night and we will see the numbers as they get tallied. betty: it's not just about mi, how do for xiao they stack up against the other smartphone makers? all of the big e-commerce companies have a lot to gain on a day like today.
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we also got a chance to catch up with you go berra including their position in the global smart phone market. you see them jumping back and forth with top smart phone companies. given that they are not just a smart phone company, how much do the ratings matter? >> it does not really matter to us because we are a different type of company. i cringe when someone compares as with other smartphone brands. an e-commerce company and operating a different scale and care about different things. we care about engaged users. we care about users who are consuming our services more than we care about somebody lying one of our phones. that's a good way to put it but all of this shows that xiaomi has a lot of competition. they have made good smart phones
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at cheaper prices in many companies are trying to undercut them. they've got more luxury brands participating on singles day so what do we expect from ali baba? they are really trying to turn it into a global holiday. the reality is the majority of the transactions are still happening in china. there whopeople out have been courting their online coupons and are excited to cash them in tomorrow. some of the top items are diapers, smart phones, milk -- it runs the gamut between groceries and electronics and women's fashion. trying toed with encourage women to go out and buy lingerie for themselves. it has become something so much bigger. the estimated high is $14 billion in terms of
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transactions. 760 million packages could be shipped compared to 550 million last year. we are expecting a big day and we will be watching again tomorrow and sitting down with jack ma to see how the numbers stack up. betty: it will be a huge shopping extravaganza. thank you so much. be sure to catch the emily chang interview with alibaba founder and executive chairman m jacka. ♪
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bloomberge from world headquarters, you're
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watching bloomberg television. vonnie quinn has more from our first word news desk. vonnie: republicans will hold a debate tonight. and carson will lead the debate. the main event starts at 9:00 eastern. the panel for lower rated candidates will start at 7:00. there are now 112 prisoners in guantánamo bay, most captured in anti-terror operations. congress would have to sign off new prisoners. university of missouri football players are ending their walkout . they demanded that university presidents ted wolfe resign.
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will offerversity diversity training to all new students, faculty, and staff. and a new study suggests that mexico oil spill may still be on the ocean floor. and others are among newcomers in the baseball hall of fame ballot. hoffman is an all-time all-star record for all time saves until it was passed by another player. ony will be announced january 6. you can get more on these and breaking stories 24 hours a day at the new bloomberg.com. from the bloomberg first word
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desk, in vonnie quinn. president obama is defending the transpacific partnership, saying that it is great for working families and will open up markets for made in america goods and services. companies that sell their goods around the world tend to grow faster, higher more employees, and pay higher salaries than companies that don't. build wirering in and william cowan: who is the founder and chairman of the cohen group. mention that you will be writing a letter or signing a of secretary to support this deal. this is very similar to the position that bloomberg view has, right? >> we have been taking a very
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pro-free trade view in our intorial since we started 2012. it was natural for the president to start selling the transpacific partnership. betty: and how is the reception so far? paula: i guess it is positive. whenever the president write something, april rita. it really only came out just this morning. it will be positive. when the vote comes in congress, it's not going to be quite so rosy. though, niall ferguson was on a few minutes ago. he said do not uncork the champagne just yet. william: i agree. i think it is premature to say it will sail through. if you look at those signing the
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letter supporting what the president has done, saying if this increases, enhances our competitive position and creates more jobs, better paying jobs, it strengthens our economy, but to ournds a message partners through the asian-pacific region, which is the fastest growing region in the world. president obama says we are leaving this. this is a new trade agreement. you will have to lower the taxes on u.s. goods -- 70%y: is that going from down to 0%, something along those lines? paula: yes, but one of the problems, some of the countries in this deal are the anon, malaysia, mexico. they pay lower wages. they are not as developed as the bank of japan, canada. they have a competitive by having lower
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standards. whether it is labor standards, environmental standards. that will be a problem for democrats, when it gets to the house especially. what: bill, i can hear you're saying that it is good for the economy. why do so many on the democratic oppose it? hillary clinton called it the gold stand up one point and she is opposing tbp and several republican candidates for president as well? >> hillary clinton called the gold standard at one point. i think president obama deserves credit for looking past of it.itics the notion that other countries have lower standards, this agreement has raised those. to the extent that there are 8000 taxes imposed on u.s. goods , this reduces those taxes. this is good for the country from economic well-being
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overall, but specifically for those in the middle and lower incomes producing these things. i think enhancing our stature, our economic leadership in stature in the world, this is one way we can do it. other countries are looking at us saying, what is wrong with america? this is one thing where you can say what is right about what we are doing. betty: paula, i want to read from the op-ed from the president. he says these tough new rules, they level the playing field and when american workers have a fair chance to compete, i believe they will win every time. could it be true that tbp does level the playing field? -- that tpp does level the playing field? paula: it does on paper. vietnam, for example, has very low wages, does not allow unions. if you try to form a collective bargaining unit, you effectively
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get fired. this will allow unions, but it depends on how it gets enforced. labor unions in the united states are saying they do not think it will be enforced. they will be against this deal no matter what. they have made up their minds. i think in an election year year, when this comes to a vote, it will be march at the earliest -- i think in an election year, when this comes to a vote, it will be march at the earliest -- you have these standard bearer of the republican party, donald trump, dead set against this and these standard bearer of the democratic party, hillary clinton presumably, dead set against this. i think it will be harder than the president thought it would be when he won the vote in the summertime. come outnald trump has very, very vocally against tpp. he says "this deal is so bad because they do not cover
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currency manipulation. it is the number one weapon used by foreign countries to hurt the united states and take away a jobs." bill, how do you and other defense secretaries portray this as being in our security interests? a area: this applies to -- for the united states to say we will start exporting more into your countries because you of had all of these barriers, we will see these barriers come down over time, not immediately. we had the same issues with wto. this is comparable to that. i know the democrats may be aligned against this. perhaps donald trump will continue to be opposed to it, but traditionally republicans have been in favor of freer trade. betty: jeb bush, marco rubio have supported this. have very few
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democrats, but you need the republicans, and the republicans are not eager to give the president any kind of a victory, unfortunately. here is one case where we should l if possible.ica drop the labels. see if this is in america's interest. i think it is. let's see if congress think that is. cohen,thank you, william and also our paula dwyer, editor of bloomberg view. the economy -- likely free trade will, -- we will look at which candidates will sink or swim. -- likely free trade will come up. though stories and much more coming up on bloomberg television. -- those stories and much more. ♪
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betty: welcome back. this is bloomberg markets. time to get you caught up on all of the action around the world. i want to start in asia where stocks fell after weaker than expected chinese inflation. index was down at one point about 4%. you can see the shanghai six pointdown almost 4%. we have a broader slowdown. jeff eckhard reports of from hong kong. prices fellnsumer slower than the 1.5% in bloomberg's survey.
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was in line goods with estimates. all of the new numbers reflect a slowdown across china and suggests the people's bank of china will respond with new monetary easing, in todem with beijing's efforts manage the economy with fiscal measures. zeb eckert, hong kong. i want to go to manus craney with more reaction -- now i want to go to manus craney with more reaction to the slowdown. 1% in europet yesterday. you have the downside -- here are the big miners here in the european market. that china slowdown really impacting on the commodity story. cement -- who ever thought cement would be sexy?
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big individual names, betty, that have grabbed the limelight. do stay tuned. from the ceo over at vodafone. the stock trading up. guiding the numbers. details to come in the market close show. ericsson basically saying is beginningf 4g to roll out of steam. and look at this ,lonmin, down 27% -- look at this, lonmin, down 27%. this shows there is something really deep seeded wrong with the metals market. they are a record lows, so what is going to happen there? a recordat you have is
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low on the rand, just off that. to raise rates. commodities are lower. emerging markets commodities all around the world are under pressure because of your central bank, the possibility of the fed raising. this is one of the favorite short positions. back to you. betty: thanks so much. manus cranny in london for us. for a look at u.s. markets, i abigail doolittle was she is looking at that report on apple. abigail? abigail: apple is one of the big afterbutors to weakness, the iphone supply chain channel checks are showing weakness. apple seems to have lowered components orders by as much as 10%. this may be driven by weak demand for the iphone 6s. in the long-term, one analyst
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sees this as a positive. weighing onnly shares today with the stock off 2.5%. that is not it. we also have the supply chains to apple, a number of those stocks off significantly including sky works and qualcomm. -- skyworks. back, october 26, one of the companies was guiding down. betty? betty: abigail, thank you. turning to presidential politics, another big showdown for the republican candidates tonight. all of them on the stage have a lot to prove to the voters once again. steve fromring in bloomberg politics to discuss what is at stake. not 10, but eight on stage this time. jeb bush -- is this his last chance? he's got to prove it.
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this is a big moment for jeb bush, a last chance to prove to his donors he has got what it takes. he has to change the narrative. and the caucuses or not until february, but we have the holiday season. people forget about this stuff during the holiday season. -- the caucuses are not until february. to beenave a change narrative and rating picks up again in january. change -- you have a chance to change the narrative and then everything picks up again in january. betty: a loosely he has to change the narrative. told him he had to be aggressive. he tried that. it totally did not work. rubioed to go after marco last time. it did not work. he has to figure out what his style is, what his role is in these debates. how does he look like the
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candidate who is going to take the ball across the finish line when i'm at the moment, he is not performing well on the big stage, on the trail, anywhere. betty: agreed. marco rubio and ted cruz after prove they can, what? sustain the momentum? these are the two names that really came out of the cnbc debate. marco rubio has been scrutinized a lot more since then. he has handled it well, but it will only pick up. superhave been some cruz really hitting them. the first really bad thing that he has said about anyone is that isio is a moderate which terrible. rubio has been pretty good at dodging and weaving on some of the criticisms. tonight.till see some how he performs, i'll prepare he
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is, will tell us a lot about how he runs his campaign -- how prepared he is, will tell us a lot about how he runs his campaign. carson.n ben did you see that press conference friday night? it is like he drank red bulls. betty: there are questions -- steve: there are questions about his biography. some of them are starting to check out. some of it. he has that at his back. but let's not forget, this is a business, economic focused debate and fox has been really intentional saying they would not fall into the same trap that cnbc did by asking more political questions. ben carson has not been very specific on some of these issues. when they get into tax policy and social security and entitlement reforms, all of this kind of stuff -- this is
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something ben carson has not quite delivered on yet. so, people will be watching him and scrutinizing that as well. much veryve, thanks a of course, we are watching trump and whether chris christie can get back on the main stage. steve: he will -- will be fighting hard. betty: paul ryan will be joining tonight, due respect" hist an hour away from hometown. that will be at 5:30 p.m. live. stay tuned for that. ♪
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betty: it was a record night at christie's last night where a chinese billionaire take more than $170 million for medela for a painting of a
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reclining nude. there are concerns that the et might art mark have peaked. >> gavels are pounding at new auctiontop option -- house this week. but the action may hinge more on hong kong, washington, and moscow. will not see the depths of buying you saw from chinese, russian, brazilian collectors the last five years. bloomberg's own art to root tells me she is holding her breath. first in the sotheby's a collection came in at the low end of estimates.
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the morning after, sotheby's 6%.es sank dance to the death. toprter: a guarantee is the weapon. the seller gets to walk away with the top money, whether or not it sales. sale around a a single masterwork. >> there was something very clever. the condition that they would do a whole option, a special option around it. reporter: the event was a success. beat estimates. there are factors that the auction houses cannot control. >> you have a perfect storm right now. you have individuals with
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juventus amounts of cash and you have -- tremendous amounts of cash and you have, in addition, low interest rates. the era of cheap art may end. >> if i were a seller, i will say sell now. is it a bubble? >> that is totally wrong. and there are signs that the market will deflate. is with me inocencio now. what do investors and art collectors want to know if they want to sell? basically if you are likeng top name art -- if the "reclining nude" that you
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saw, you are set. if you are holding things that inus, they may not have an easy time getting that art of their hands. there was a liechtenstein that 94 millionon record, dollars, and i believe the presale estimate was $80 million. it may sell, maybe not. betty:r interesting. amy, -- interesting. ramy, thank you so much. ramy inocencio. ceo ahead. allergen ♪ buddy- nice place, nice car what happened?
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your credit score is 650. that's magic! no, that's credit sesame.com you get so much more than a free credit score so do more with your score at credit sesame.com it is 11 a.m. in new york, 4:00 p.m. and midnight in hong kong.
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welcome to bloomberg markets. from bloomberg world headquarters here in new york, good morning. i'm that he lu. here is what we're watching at this hour. -- i'm betty liu. the attack -- jpmorgan with financialeach of information in u.s. history. we will hear from the ceo of credit sweeties. and vodafone will no longer be as sound as a pound. -- we will hear from the ceo of credit sweeties. news on theking minneapolis fed. bloomberg's julie hyman has the latest. a familiar name to us. a new we will have president. neel kashkari. a familiar name, from pimco,
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also ran for cal of her no's -- governor of california. taking over as the head of the minneapolis federal reserve. neel kashkari, a frequent guest on bloomberg television. that is fed news. let's turn to market news. all the major averages have turned lower. the s&p very slightly so as we hover right above the 200-day moving average for the s&p 500. when you look at the groups that are driving gains and losses today, it looks a lot more mixed the between gains and losses than the overall read on your screen might otherwise indicate. the best, asng they did yesterday. materials doing the worst. remember, we talked about apple helping to drive down tack after
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that call from credit suisse. betty: is that because of the china effect? assuming that is at least part of the equation. ,e are looking at the metals and that seems to be linked to renewed concerns about gold. copper a little bit more sharply down by about .8%. copper does seem to be very to headwinds out of china. newport mining, alcoa, all of them, down not all that much, dragging down the materials group. also, a couple stocks i want to highlight -- oh wins illinois and field air are being reinstated. illinois.
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ie says therequar is a much breathing room. thank you. courtney donohoe has more from our news desk. courtney? courtney: the senate is expected to pass a bill that would bayove moving guantanamo prisoners to the u.s. most were captured in anti-terror raids. is movingtorm kates quickly away from the bahamas and is expected to reach hurricane strength. -- tropical storm kate. the national hurricane center says it will become a hurricane by tonight. it is centered 50 miles south of cape hatteras, north carolina, moving northeast.
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the next stop for president obama's immigration plan may be supreme court. a federal appeals court has locked to the president's plan to prevent more than 5 million immigrants from being reported. justice said that the states will probably win the lawsuit. at least 27 people injured. a shanty cap trying to smuggle themselves in h rock -- shanty camp trying to smuggle themselves in trucks into britain. reports that a overbrought the plane down egypt. that is a look at our first word news right now. you can get more on these and other breaking news 24 hours a day at the new bloomberg.com. first wordoomberg
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desk, i'm courtney donohoe. thank you. now to our breaking news. we have learned that jpmorgan was the target of one of the datast thefts of customer in u.s. history. there will be a conference at 1:00 p.m. eastern time today to explain. securitys, our cyber reporter, michael riley. explain what these charges and tail. sure.er: thise learning more about from last summer. areave learned that there at least four people involved, two in israel, two in the u.s. now we are learning there is in fact a much larger international conspiracy that
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expended over years, that allowed it a hack into at least nine different financial institutions as well as other companies. and was incredibly profitable. the indictment says the co-conspirators made tens of millions of dollars, and at least $100 million in a swiss rank a cap profiting from this scheme. -- swiss bank account profiting from this scheme. betty: those jpmorgan name the other victims? not name theoes victims. it does give substantial clues. we know that fidelity is one of the victims. we know e*trade is one of the victims. they have identified a major bank in charlotte. we have sources that say that is the bank of america. there were pretty hefty institutions hacked by these guys. keep in mind the indictment is not say the people named were the actual hackers. the guy who directed it, and
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is really, has literally hundreds on his payroll. hisindictment describes role as directing the hacks, not doing the hacks. there is an indication that the hackers are still in russia and the indictment does not reach that far yet. betty: there might be more to come? michael: yes. betty: bloomberg's michael riley. describingaders challenges that every ceo will face in 2016. stephanie ruhle is at the summit in midtown miami -- midtown manhattan. stephanie? i am here with the ceo of united therapeutics. reputation is under attack with companies like valeant that spend so little on r&d.
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what do you believe is your role? is to i believe our role bring better medicines to people, but keep in mind over 90% of drug development activities are doing an amazing work. ebenezer like gilead -- companies like gilead have done amazing work. should those drug companies have more regulation? hillary clinton and others have attacked drug pricing. guest: i think technology is on the cusp of changing. medicines will be able to be specifically targeted to individual -- genomes. that will bring down the cost of drugs. stephanie: are there those out
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there gouging in terms of pricing? martine: i think it is the job of the payers to say no. we should put it in the contract that they will not increase the price threefold in a year, and even threefold is extreme. no price increase for one drug, five straight years. should you be developing drugs for, people in the last 20 years of their lives or the first 20 years? there's a lot of argument about should this kind of money be spent? the strength of the free market is drug development -- people in their eighth or ninth decade, they are people, too. these are our parents. they deserve the best medicine. young kids, teenagers, they deserve medicine. the reason you have to be super cautious about a european
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regulatory situation, there would be some people who would never get drugs developed for them. stephanie: europeans and americans basically have the same life expectancy, but what we are spending on health care is exponentially different. why? in the bush administration the prescription drug user act said there would be no negotiation by medicaid about what the drug prices are. most pharmaceutical companies will sell the same drug in europe for half the price they sell in the u.s.. it is not a surprise that their health care costs or have what they are in the u.s. the prices in all of the most -- to becountries priced in a basket across all of those countries. at united therapeutics, our products are priced comparably
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in all different countries. stephanie: you now have to answer to shareholders who want results, who want numbers tomorrow. and you are in a business that can take 5, 10, 20 years. martine: you are exactly right. the key to a successful biotechnology company -- you have to have some things in phase three that will be approved in the next year or two, other things in phase two, other things in phase one. at united therapeutics, we have two drugs in phase three, and we developing manufactured organs, manufactured kidneys, manufactured lungs, so we can address the medical need of people who need transplants but there are not enough organs available. moneynie: given how much you can spend on r&d, what do you make of the valeant model, which is roll up, cut costs,
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spend nothing on r&d, when that is the root of your business, the heart and soul? martine: if you do not invest in r&d, the market will catch up to you. there will be a collapse in value. the aggregator model, if they keep gobbling up companies with phase teed up and phase one products, unfortunately they -- phase two and phase one products, unfortunate leave there are not that many and they do not want to be gobbled up. like --that just by companies and rip them apart -- -- hanie: valeant. martine: martine: they will have a collapse in shareholder value. stephanie: do you see those companies as targets to be acquired question mark at the end of the day they have valuable drugs. martine: those companies are
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like dinosaurs. we want real drug developers, real r&d. our people need real cures. stephanie: it's also an election year. if the nih had better funding, how much further along could we be treating patients, curing diseases right now? it is sort of in your hands. martine: let me give you an example. this year we received the first ever fda approval for nero plus -- , a horrible nueroblastoma, a horrible cancer disease. if not for that, there would not be a treatment today. rothblatt,martine inc. you. i'm going to send it back to you. you so much, stephanie ruhle, "bloomberg " anchor.
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we will have much more in the next hour, including allergan's ceo joining us as well. ♪
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betty: good morning. welcome to bloomberg markets. it is time for bloomberg business flash. the federalent of reserve. yes, neel kashkari. he joined pimco. he is replacing someone who will step down at the end of the year. ranger pickupsce
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back in the u.s. members will get raises and bonuses if they approve the deal finalized yesterday by uaw leaders. -- verizon says it has no interest in buying dish tv. you can always get more business news at bloomberg.com. let's head to the markets desk were julie hyman has a check on company movers, in particular, looking at solar. yes, indeed. sun edison out with its numbers. the company reported much wider losses than had been estimated. of $.92 perd a loss share. $.60 was the loss analyst expected. there has been a lot of concern from investors about the
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company's financial liquidity, this loss really driving down shares. edison is are of sun little unusual. terraform power is down 40% this year. terraform global is down i about half. that also has been weighing on down 18n, shares presented a care this is a stock very widely held by hedge funds. 18%.ares down this is a stock very widely held by hedge fund. if you look at the and i'm etf, 17% thisn -- down year. even though the demand for solar energy is set to expand this year. if you look at individual solar companies, whether it is installers like solar city, manufacturers of solar panels,
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others on the solar supply chain, we are seeing them decline. there is also canadian solar. that company raised its forecast for earnings this year. it cited a demand for solar modules, built new factories. yet those shares are down as well. revenue did fall by 7% and that could also be weighing on the shares. ok, looking at the solar stocks, julie hyman. meeting at the capital markets conference. anchor erikgo>" schatzker sat down and talked about the attention being given to short-sellers. an area we are continuing to look at. erik: do you believe it is necessary? i understand -- there are disclosure requirements for
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those who take long positions, but those do not require for those who take short divisions. a complexis landscape, but it is an issue that has our intense attention. erik: intense attention. what does intense attention mean in sec terms? guest: it means were paying attention to it. erik: that says something. guest: don't over conclude. it is an area that has been discussed for some time. it is something we take very seriously. we are looking at it. the publicabout market being a place for buyers and sellers. -- you talk about the public market being a place for buyers and sellers. is talking down a stock any different than talking down a stock, like activist hedge fund managers often do? all market participants can have a duty in the marketplace, buying and selling securities, not to make materially misleading statements
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omission, theof same thing. no matter what your position is in the market, no matter what the swap is, that is an obligation and a matter of securities law. it inhow appropriate is your view for a market for discipline -- could be a hedge fund manager, someone in research -- to send someone -- send a stock soaring or plummeting based on a tweet question mark we are talking about 140 characters. soaring ortock plummeting based on a tweet? guest: it is a source of information that carries the same obligations -- to be truthful. is there any difference in principle between 140 characters and a four-hour presentation? guest: the essence is the same.
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the essence is the same. same so subject to the scrutiny? not anymore. any source of misstatements is subject to scrutiny. i mentioned activist hedge fund managers and i have another question about them. the moneybeen using in options to build up the economic stakes in the company without having to buy the common stock and, as such, trigger disclosure requirements. it seems to me to be a neat loophole. fair? range ofere are a issues people are focusing on with respect to activist investors and non-activist investors. that is one of them. we are often asked, what is our view of activist investors? they are investors. they are market per dispense. whatever the rules are, they are applicable to them and other investors. -- they are market participants.
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we are taking sides in activist, non-activist. the sechat was again chair mary jo white with erik schatzker. much more coming up on the london we will hear from vodafone's ceo. how is the internet entry of eating to the company bottom line and how about ditching the pound? he will be right that. -- we will be right back. ♪
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betty: we are moments away from the european close. bloomberg's mark barton is joining me from london. for a half-hour we will drill down the most important global news today. market, there is a lot of it on tap, a lot of it focused on the pound. betty, you said it. dave two of the european closing extravaganza, betty. -- day two. i am getting sick of it.
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china, the fed. that is what investors have been dictated to. betty, you said it. the vodafone ceo, vittorio colao , i'm not going to spoil it because we have a big interview coming up. this is our favorite segment of the day. the battle of the charts. who is in love with germany's dax? find out today, betty. and very, very quickly -- david cameron has listed his demands to the eu. he wants to renegotiate written's relationship. -- written's relationship. the european closing seconds away. stay with us. -- britain's relationship. ♪
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betty: welcome back to bloomberg markets. it is 11:30 a.m. here in new 4:30 p.m. in london where markets are finishing the
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day. i want to go to mark barton. mark. mark: china data and the prospects of a december you rate december rate hike. the european close starts right now. betty: we are going to take you from new york to london and beyond in the next half hour. mark, kick things off for us. looks like the markets are settling. the investors are focused on disappointing chinese inflation data. disappointing for the 42nd month, quite an impressive losing streak. the markets. have a look at portugal, betty. we could, in the next hour, here

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