tv Bloomberg Markets Bloomberg November 16, 2015 3:00pm-4:01pm EST
from bloomberg world am ready luke. here is what we are watching this hour. french president francois hollande calls for a united front to defeat the islamic state following a devastating attack in paris. >> we will eradicate terrorism. terrorism will not destroy our republic. long live the republic. long live france. we speak with ray kelly about keeping the streets of america safe. stocks surge higher. the s&p is on pace to stop its three-day slide as traders away the implications of the paris attacks. wins a bidding war
for star hotels. the deal to buy the sheraton and weston will create the largest hotel company. we are but an hour away from the close of trade. i want to head to the bloomberg markets desk. we thought we would week stuck in -- we would be stuck in this range. >> we are at session highs near trading. -- dow and the s&p past the past the game. superlatives, the s&p is seeing its best day in the past few weeks. the nasdaq is up by nearly 9/10 of a percent. surprise but there is growing proof markets are getting more resilient to terror attacks ever since 9/11. we have a great article online.
meantime, join me and take a look at the imf function. all s&p sectors here are in the green. energy is the biggest gainer, up two .7%, helped by consol energy. einhorn saidid console was his best idea. revealed hebuffett bought 500,000 shares in a filing today. energy, looking at three oil stocks worth taking a chance on. this is because of their exposure to the basin. of the biggest gains, noble is seen the biggest gains. is will remember anadarko coming off of its failed bid last week.
seeing afinitely turnaround today. and another sector having a good day, that would be defense and that is in wake of the present -- in wake of the paris attacks. are up 3.7%,now lockheed martin up to point to nine. today in terms of the energy as well as the defense sector. now i check on the headlines and news. mark crumpton has more from our news desk. : president obama is resisting calls to put ground forces in syria and iraq to fight islamic state. g-20 news,day at the the president says such a move would be counterproductive. he offers strong words for his detractors be at president obama: folks want to pop off and of what theyon
would do without a specific plan. if they think their advisors are somehow better than the chairman and my joint chiefs of staff, and the folks who are actually on the ground, i want to meet them. and we can have that debate. the attacks are called a sickening setback. he added his administrations current strategy would ultimately work. prosecutors have charged two suspects in connection with the attacks. they say additional have failed the -- failed to yield additional suspects. the suspects identities have not been revealed. there have been dozens of arrest. french authorities are identifying the belgian man as the mastermind behind the violence. more victims of friday's attacks are being identified.
french president francois itsande said use in all diversity. he said the victims represented in 19 different nationalities. listeners held for more than 13 years at guantanamo bay, authorities at the authority-based determined the prisoners no longer posed a threat. to inmate population dropped 107. the number of foreigners studying at u.s. colleges set a record. there was a 10% increase last year. the fastest growth rate in more than three decades. more than 975,000 international students on u.s. campuses. one third come from china. you can get these and breaking stories at the new bloomberg.com. i am mark crumpton. back to you. betty: more with what is going
on in paris right now, secretary of state john kerry is speaking in paris as they begin their work week. stores and offices reopen around the city. secretary kerry is outside the u.s. embassy right now. let's listen in quickly. kerry: coming off of the brutal heels of an attack in lebanon and elsewhere, it is an assault on our collective sense of reason and purpose. an attack on civility itself. i want to thank the men and women who briefly reported -- >> trying to maintain some common the aftermath of friday's attacks. live in paris, he has been there since the weekend. brendan, we heard the french boost the number of police officers as well as intelligence officials, how is that playing out not just in
paris but also france? brendan: there is a feeling here a lot like after september 11. stampede areanic we are trying to figure out what was going on. police man, while talking to him someone came up and thanked him for being there. i think part of president aland, hollande's a speech today, there is a much higher tolerance for surveillance here. i walked two blocks that direction and talked to a group of twentysomethings at a cafe. the bernie voters of france. when i asked them a if they are ok with the surveillance powers, putting a camera inside a house, france already has -- the was an active debate and some of them were ok with that.
their sense of civil liberties is far to the right of hours and i think that is something we are only going to see increase in the next several months. betty: that was pretty dramatic footage that you just referenced. says -- president has eu obligations with regards to spending and the deficit. brendan: that was fun. was we are going to do all these things and by the way we may not make our deficit targets for the eq. -- for the eu. it wanted to run up deficits to create some kind of economic growth. it has been close to zero for a wild. while. -- for a
here's a fight we are not going to fight. this all over europe crisis of syrian refugees is costing money. germany announced it is not going to run a surplus. sweden announced it may run a deficit. deficit may not be something we are thinking about in a year or two. betty: back here in new york city they are deploying a new counterterrorism response unit in the wake of the paris -- wake of the terrorist attacks. there is one man who knows the battleground all too well, more police commissioner ray kelly. he successfully prevented an attack following 9/11. he is now the vice chair of k2 intelligence. he joins us now on what it takes to keep new york city safe.
you heard mayor de blasio say 9/11's the years since best 9/11 we saw 20 or so terrorist attacks be at he now unleashed a 500 member unit in the counterterrorism force. are these the right steps? what needs to happen here? >> it comes a point in time where impacts your other operations. generally speaking it is a move in the right direction. blasio do not think that way when he ran. betty: now he is recognizing the bloomberg administration for those efforts. clearly in the united states we think new york city is going to be one of the, if not the top target here for any terrorist.
int exactly has to happen the next few days and what kind of cooperation happens in new york and paris? >> it works very well, there is a free flow between the french and u.s. intelligence and nypd gets some of that by virtue of policet they have a office embedded in the prefecture. one ortega people are there. the interesting thing about it is it is a cop to cup relationship. it is different than having someone in the u.s. embassy. it has a whole different feel to it. it is more of a peer-to-peer relationship to have common experiences. it has worked for the department
in 10 other locations as well. aviv come aligned in, paris, much red, montreal, toronto, those types of relationships exist and it is very helpful. it gives granule information as to what is going on and their primary mission is to protect new york city. trip are listening post wires something that can come to new york. >> what are we hoping to learn from what has happened in the last 48 hours in paris? >> there was the ball made -- how they were communicating when conducting this attack. that was -- those sort of inside
baseball things you want to know about. you want to see if they do anything to prevent another attack or avenue that gives you more intelligence. reports about how these terrorists communicated. some they had found in the raid of the playstation 4, some of these terrorists had been communicating away from intelligence capabilities by just on the video games and on the video game network. is that a new front their? >> these are not dumb people. we have to continue to try to think ahead of them, think out-of-the-box, try to obviously pure's that encryption. encryption is everywhere. i'm sure there are people in washington, the fbi, cia, who are all working on this issue.
encryption is available now. it is clearly an element. we had a much easier time of monitoring chat rooms, monitoring e-mail communications. some -- wasas lest less sophisticated and they weren't as raised up and aware of what we were doing then. now they are very much aware. information,lot of a lot of things out there. even the edward snowden phenomenon is blamed for the increase in encryption. on partsome cooperation of the manufacturers of encryption. that is being discussed in washington. >> the president spoke earlier at the g-20 summit and spoke about how different the islamic
militants are, the terrorists as part of an islamic state. i want to play for you part of how he described them. >> these are killers with fantasies of glory who are very savvy when it comes to social , and are able to infiltrate the minds of not just iraqis or syrians but disaffected individuals around the world area when they activate those individuals, those individuals can do a lot of damage. betty: who are the chances these individuals are here in the united states and they see something happen like this in paris? >> we have seen a lot of acts of
violence that we believe are inspired by isis. many messages were put out to urge people to go forward. is that ourgument religion is being attacked. you have to do what you can in .ny way you can doesn't necessarily have to have a coordinated event. >> why is it then easier to be able to track them? they are so public. an estimated 90,000 retweets or tweets a day. difficult to get your arms around what is meaningful and isn't meeting full -- isn't
his comments suggest france's budget will be more than 3.3% of economic output currently planned for next year. the growth outlook for emerging markets is being compounded by the paris terrorist attacks. the market was already struggling with a downturn from china's economic slowdown and the looming likelihood of a u.s. interest rate increase. tourists look up back on travel to europe. steak and goldman sachs have been reduced by 13%. that frees up cash before buffett completes the purchase of aerospace equipment. than a deal valued at more $30 billion.
betty: welcome back to bloomberg markets. one stock we are watching his marriott. after it announced a $12 billion deal to buy starwood hotels. the former ceo of starwood hotels at the investors conference here in manhattan. >> i think the world is going this way to scale. while i hate to see the company not be around anymore, you want to see your kid grow up and find a good partner and get married. and have lots of little babies. i think they have done an amazing job with the company.
betty: that was berry at the robin hood conference. let's head back to the markets desk, a check on some of the other company movers related to hotel travel stocks. >> it is interesting to see what the stock market is doing relative to the travel industry. turns out the same can't be said. downceline and expedia are 2.5%. priceline is trading at its lowest level in more than a month. airlines are being affected. france was the most visited country in the world last year, getting 84 million people. hit withing the worst a drop of 2%. also looking to travel, carnival as well as royal caribbean cruise lines down.
royal caribbean down by 1.7%. a quick mention. headache mover over and energy. consol energy rallying today alongdavid einhorn went with the stock in the investors conference here in new york. take a look at the reaction to that. 7.2.5 -- 7.25%. some reduction in capital spending. at least some good news on the market right now. betty: we are 30 minutes away from the close of trade. tothis surprising reaction what happened, the tragedy in paris. investors not only taking it in stride, but they are in fact bidding up the stock market. the dow is up.
headline this afternoon. mark crumpton has more from our news desk. mark: u.s. secretary of state to showry is in paris american solidarity with france after last week's deadly terror attacks. a short time ago he made remarks outside the american embassy. kerry: don't mistake what these attacks represent. this is not a clash of civilizations. terrorists have declared war against all civilizations. journalists traveling with him were not allowed to know about his planned visit. it was to be the first restriction to a european capital. a union official says reservations at paris's top hotels have dropped by 50% following the deadliest attacks in the city since world war ii.
a spokeswoman said reservations have been canceled across the board. the tnt network will not be opening -- not be airing an episode of its drama legends because it shows a shooting into the crowd of paris. it will air every run of legends that was originally shown a few weeks ago. they are replacing episodes of supergirl and ncis los angeles. the international space station has taken a power head and spacewalking repairs may be needed. a replacement part must be delivered via rocket. nasa says the crew has been operating normally and is in no danger. requirer failure spacewalking prepares. you can find out 24 hours a day at bloomberg.com. i am mark crumpton.
betty: she is looking at two notable biotech stocks. we look like we are ending on a high here. >> on those two biotech stocks, not so much. down 72% not so long ago. 69% now on the day after asking for more data for the company's lung cancer treatment. promising. efficacy dropped from 30% to 60%. unconfirmed responses were exclusive -- were excluded. shares are on pace for their worst month ever. and these biotech shares are off quite a bit in sympathy. investors may be drawing lung cancerbetween
drugs and treatment. , lunge-mail to bloomberg study duration provides confirmation for the immunogen drug. immunogen selloff was unwarranted and offered investors a buying opportunity. betty: abigail live at the nasdaq. the investors conference has gotten underway in new york. this two day event is an extraordinary gathering of investment minds sharing their market insights in the most important of causes. this year's theme is a redefining of higher returns. stephanie ruhle is there. if she standing by with the ceo of jpmorgan. stephanie? with one of the extraordinary speakers at robin hood. welcome, thank you. this is such an unbelievable thing. why does this make sense to you?
>> robin hood has given over $200 billion in the last seven years of their existence. we have been with them for many years. can first remember when we started working with them. the most important thing is the way robin hood is structured is that the power of the return on their investment turns out to be 15-1. when you think about $23 million turns into 300 plus million and the main focus is poverty and they deal with shelter for the homeless, they deal with trying to make sure people are fed, they deal with the education of the people. when you think about the fact that last night 29,000 kids slept in homeless shelters, it is the work robin hood does that makes us so proud.
when we think about how we want to partner with people, we bring together this conference so that they can come and experience all that robin hood has to offer. look at what robin hood has been able to do. when some but it goes into a robin hood center, you think about getting new handle that eating new housing, they have a 97% chance of never going back into a homeless shelter. stephanie: people are here for the investment ideas. withame back with meeting some of your largest institutional investors, what are they looking for? >> we brought 52 of our largest investors together. in representing about $4 trillion is quite a sizable amount of money. they come together for a variety
of reasons. one is to share the markets on the ideas and talk about different issues, from opportunities to disruption. also it is time for them to be together. you want to be with other people . a stephanie: let's go around the world. you were in europe before the attack friday. what was your take? >> things are doing pretty well in europe. the markets have been holding up ok. prices events of this weekend, which were tragic theater people are looking at these opportunities and they're not just saying should i invest in , weu.s. or european market
try to get down to the private where they canr, because they can afford to do with the liquidity in the markets. they are working with many investment opportunities as possible. everything from opportunities in china and disruptive technologies out in silicon valley. there are a lot of opportunities but they have to be selective because their ticket sizes are so much larger. >> the momentum trade worked. they have to be so specific and drill down doesn't mean we are facing a much choppy or volatile market. >> the market has always been volatile. we are feeling those moments of dislocation from a lack of liquidity.
that doesn't change the way most long-term investors invest. are very selective about the managers that are investing for them. the people that can figure out where the gems are in the marketplace, that can think about how they are going to invest within pockets of europe and where those companies are going to be able to take it vantage of the fact they have a lower euro with exports being able to benefit those companies. >> what can a focus do they have? what asset classes make the most sense? we have seen macro hedge funds go under this year. what strategies seem to be the best in your mind? >> it is nothing we do in a short-term period.
you are not going to be able to figure that out. you need to be able to figure out what the long-term principles are for your portfolio, for you individually or in the case of the investors we were with last week. massive amounts of money for long-term pension funds. try to think about what are , justopportunities because the merger is not a winning strategy for the long term. on the margin you can make those tactical positions. really they are trying to think about where the money should go. >> they feel incredibly challenging right now. it may be fine just to wait on tactical investments. you cannot wait on making sure your portfolio is right. one of the biggest worries we
have are the clients, particularly the individual clients, who have come off the heels of 2008. who have been still scarred by the events of the equity markets and continue to be heavy in cash. that is not a place you want to be for the long-term. and then letting them think about moves on the margin is much more important than the little trade. clients?ou trade those they demanded liquidity. making it so difficult to invest, if many investors would sit we hold onto 2008 it would have had a great year. when you impress on the importance of being a long-term investor, how do you do that when we are living in a world of short-term is him? this don't't need in
need an advisor to say this is what works in a bull market. is when you have to combine very smart thinking with someone who can understand what are your needs, what are your liquidity issues? they had to figure out how to fix their portfolio to provide for the needs of whatever their cash flow requirements were. if you got him to focus on what it was for the long term, if you show how markets recovered in the past, if you showed them what it was they were originally invested for, and where that was most of them were very comfortable in the long-term. they learned from that and they learned to trust their advisors. i think that is when jpmorgan suck quite an inflow of assets from a lot of other advisors who didn't have that history and that sense of being able to
guide. you are trying to keep clients invested. >> there are some big firms trying to push a robo firm advisor. robo advisories nothing but algorithmic and generation to make smart sessions. use algorithmic idea generation in many of the things we do. leaving that solely in the hands of an investor, it can work, it is unlikely to work. i think that is the trick. do you use technology to help you get to the masses? the worst thing they can be as offside in their investment. if that helps them to get
invested, it is doing them a fantastic service. you need very smart investment advice to be of the hold you, to help you understand you might think you could handle a lot of risk. or that you are too timid and you need to be a to take more risk in that. it only comes from years and years of experience and the market. motion -- there is a motion involved in investing. you're talking technology. are you that these tech valuations seem overblown? it is hard because there are tech companies that have changed the way we live. are we forgetting about the fact that may these copies are not so hot ultimately? >> there are copies that are going to be overvalued. when you think about dysfunction, the really hard part of the valuation is figuring out what your denominator of a customer base is going to be.
it is a very hard thing to calculate. state,istracting a city, country, or world? how fast are you going to be a look to displace the incumbents that are servicing whatever marketplace that is? will we talked to the companies we invest in, it is really understanding first of all do they have a model that is not just within a short-term horizon and being able to do short-term disruption and really fundamentally changing things? are the barriers to entry such at it is hard or easy for them to come on the heels and disrupt the disruptors? and then the valuation is something that comes with a lot of time and experience. we spent a lot of time using lookingmpanies -- time at these companies. we think there is a number of fantastic investment opportunities out there. there are some things highly
valued and we just can't understand why. the ceo of credit suisse says he is concerned there could be some thing very negative that could hit the global economy. do you agree? >> there is always some thing that could negatively hit the global economy. that can happen from now until we are done investing. portfolio about is a to mature you can handle those. markets have i way of correcting themselves, but not in a short period of time. you also have to be ready and and haveake advantage the ability to step in and take it vantage of making money off of those. >> many firms out there say you want to be specialized and small and nimble. here we are with six years later with so many copies that want to free -- want to refinance.
>> a lot of our clients are quite sizable so when they need or dorow money to invest some merger acquisition, we can afford to write the check for them. it is a must impossible to think about investing in one country and understand what is happening around the world. us being able to understand, we have clients and 36 different , wetries around the world have clients in lots of different places but 36 main areas where we operate, and help to connect them to understand country, out of country, and being able to provide for them those opportunities, it is a very special thing. with that size and scale comes a moat around us. it is difficult to think about
competing on a global level and provide things jpmorgan and chase provides for our clients, and that is what clients continue to turn to us. stefanie: if there was one asset class, one region, where would you want to be today? never one asset class and never one region. the u.s. is in really strong shape. the u.s. consumer shows more strength every day. i don't think you can bet against the united states of america. i hope that the fed will send a signal to the rest of the world that this economy is on solid footing. and we can go back to normalized rates. someone i can bet on in this room, it is ceo of j.p. morgan asset management. i'm going to send it back to you. stephanie ruhle there with her special guest, the ceo
of j.p. morgan asset management at the robin hood in new york. we will speak with the managing partner at k capital management. still ahead, stocks are rebounding and a big way following those terror attacks in paris between will take a look at how markets respond historically two major world events.
desist orders, say they were running illegal gambling operations. a statewide ban could cost them $35 million in annual revenue. a maryland congressman met -- compass minerals to value that was question employees. they want to focus on allegations that a group of valiant employees helped launch the mail order. requesting the interview. you can always get more business news at bloomberg.com. much more ahead on bloomberg. we are heading to the close this first day of the trading week. here's a look at the various sectors, including some big gains in energy and consumer staple.
indexes. french stocks were resilient after paris attacks and a trend in the financial markets. reactions have become increasingly short-lived. i want to bring in all of her renick, our bloomberg markets reporter for some perspective. increasingly short-lived in the past few years. : the worst case an area for what can happen with financial markets is when you look back at september 11 in the u.s.. that hit the financial markets -- hit the epicenter of the financial markets. really the most protracted losses as a result of a terrorist attack we have seen in the last 16 years. attacks, whether it is in london , what you typically see is a pretty sharp reaction in the equity markets and a clear negative move outwards. in the following week or so, the market is right back to where it
was. was theook at much red, longest one apart from 9/11. it took on 19 days. 14 days later in mumbai. they typically do it pretty quickly. it's really curious. stocks are up in the u.s.. i really think despite how horrific these act are. have quite ayou bit of selling. .own about 4% the contract was down about 5%. it went through the 200 day moving average. coming off the highs we had, i think at some point we are paced to see some green on the screen. some of the more immediate reaction to asset the dollar. within oil has been one of the
contributors with markets in the negative aspects. stocks are doing ok. obviously today it is a little unique. if you look at these events, they have an effect on the broader -- do they change the risk perceptive? president obama has said he went to lengths to make sure people have been involved and it doesn't necessarily change things on a larger global scale. betty: that is it for bloomberg markets. what is you miss and the market closes up next. let's take one last look at how the major averages are doing ahead of the close.
higher.s. stocks closing today. the s&p 500 jumping the most in five weeks. scarlet: the market is on alert after the paris attacks. are doinglobal stock and reaction. alix: fund manager whitney tilton joins us live from the robin hood investors conference. scarlet: what we need to start with this with global equities. this has been an incredible day. asian markets tumbled at the open. as a group the asian stock a six week low. every industry group within that measure declined. not helping was gdp data out of japan that shows it to begin to recession. joe: