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tv   Bloomberg Markets  Bloomberg  November 18, 2015 2:00pm-3:01pm EST

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welcome to bakersfield, i'm vavevave. mark crumpton has more from our newsdesk, mark. mark: most market watchers will be looking for clues on whether the fed will move on interest rates at december's meeting. there is speculation the fed will begin raising rates for the first time in a decade. michael mckee is in washington. michael: the fed officials have to be talked out of a rate increase in december rather than talked into one explaining the change in language in the october 28 statement that suggests that they would consider a rate increase at the december meeting, the minutes say this change was intended to convey the sense that while no decision had been made, it would well become appropriate to initial the normization process at the next meeting provided that unanticipated shocks do not adversely affect the economic output. weaker than expected job growth in august and september led to what the minutes describe as all members agreeing it would be better to wait for all data,
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almost all said the economy is growing fast enough to keep the unemployment rate stable or moving lower. inflation was seen as likely to continue moving higher as the influence of energy and commodity prices diminished, although the risks of a stronger dollar were noted the minutes say. as for the market and international developments that had led them to postpone a september move, they had lessened, the minutes say, market volatility had abated and u.s. financial system had appeared to have weathered the turbulence in the global market without any sign of systemic stress. consumer spending had remained solid. business spending was perhaps stronger than had been anticipated given the drop in fracking energy production and even given the slower job growth we had seen a number of members reported that companies were telling them it was getting harder to higher workers. two other key points, in assessing whether to raise rates, they will assess whether
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current conditions are good but the overall progress toward reaching their goals which could make it easier for them to squff a move. some discussion about whether the were too focused on the first move and it was more important they focus on the longer run path of growth. to that point, the fed staff gave a presentation of what the equiff lib rum rate might be, maximum job growth without triggering acceleration in inflation. it is close to zero currently, well below what it had been in the past given the current level of unemployment. the neutral rate would be lower. that could be a problem, they said, because the fed might not be able to respond to a future recession by cutting rates far enough. david: michael mckee joining us from washington, thanks. we will give you a couple more minutes to dig through those minutes of the fed's latest meeting and hand it back to you for analysis. i'll be back in just a few minutes with an update on the
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paris terror attacks and comments today from the french prosecutor. david, back to you. david: mark, appreciate it. ahead to the markets desk where julie has the latest. julie: it looks like there is still some room nation or going through the minutes to figure out what exactly they mean. to affect there is not any sort of new information, if you will, that stands out. just some nuance to what we already know in that there were some dissenting policymakers that said the wording might communicate too strongly to the market that we were going to see, an increase in december. stocks are holding remarkably steady coming off a tiny, tiny bit to where they were before the minutes coming off. you can look at other asset classs to see more of a reaction. if you look at the bond marker, for example, and look at both the short and longer end, you see more of a reaction there. there is the 10-year yield. it moved down a little bit, but still higher on the day, same situation with the two-year
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taking a leg down in yield, however, it still does remain higher on the day, still seeing a yield of.088%. also we have been watching the reaction in the u.s. dollar here, a little bit of volatility in the wake of these minutes coming out. the dollar still hanging on to a gain which means it's a at a seven-month high and taking a little bit of a leg up there. the perception, the takeaway seems to be the same as it has been, in other words, that we are likely to see an increase in rates in december. david: julie, thank you very much, that is julie hyman at the markets desk. going back to washington to michael mckee for more on those fed minutes. might be, i was struck by what you said that the policymakers have to be talked about not, not into raising rates in december. a lot you can glean from these minutes. among them tone and i wonder what insight with have in the tone, the spirit of debate in the last meet of october. mark: it was a discussion as
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would why they shouldn't race rates. they had gone into the september meeting perhaps expecting that they might be able to raise rates then, but the economy didn't cooperate. the data was slow. we saw overseas developments that concerned them, the dollar and those diminished over the period. while they weren't quite ready to say it was behind them, they hadn't seen the october jobs report, for example, they were at this point still on the path of raising rates sooner rather than later, december or early next year, they hadn't decided yet. a majority were leaning in that direction it appears. david: just remind us, mike, what has happened between the last meeting and when the minutes came out. the october jobs report, the last time we went through this, the last time the minutes came out, there was a dramatic difference between what happened in the jobs report the last time. just give us a sense of the economic indicators we have gotten so far and that portended for many people believing there will be a rate hike in december.
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mike: the two key numbers that have come out, the jobs report and wages started going up. they were talking how members were reporting, companies were suggesting that might be the case. if that pattern tips, the november report on december that might lock things in. we also saw the consumer price index go up a little bit this week. now, we saw the consumer price index fall significantly and the p.c.e. index the fed watches last year at this time because the oil prize collapse happened at that time. that's going to wash out of the ar over year data in the months ahead, particularly in the next two months. that's why they think that the inflation rate is going to ontinue to rise even without just an additional slack being taken up by the library market. the conditions are moving in the direction they expected. their forecasts are starting to come true and they're starting to say, well, it is about time for us to react to that. david: mike, the primary focus
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here among investors seems to be when is it going to happen, in december or later? i suppose the second question on the heels of that is the pace at which this will happen. anything in these minutes to indicate sort of how that might up fold when in fact it does? mike: interestingly enough, they had a discussion about both of those items. they seemed annoyed that the markets is focused on the first date rather than the expected path where they end up. staff presentation is notable in that they discuss where they might end up based on historical versions, the neutral rate might be. given the changes in the global economy and the u.s. economy since the financial crisis, that rate is going to be a lot lower than it was. right now they say rates are just a little bit below where the equiff lib yum! rate would suggest they are in the short run. in the long run, they expect them to be lower than historical. at this point the fed is signaling, the staff is signaling, don't look for a
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significant rate increase over the next couple of years. we're not going to go that far that fast. david: you know how many speeches we have heard from policymakers, we heard from a permanent voting member of the committee talking about the prospect for racing rates. let's listen to a little bit of what he had to say. bill: raising interest rates say good thing, not a bad thing. that's a sign that the economy is actually returning to health, the federal reserve is getting close to achieving our dual mandate objectives. i have often said over the last year or so, i really am looking forward to that day with we begin to normal lies monetary policy, a good thing, not a bad thing. david: he looks forward to the day they raise rates. as you have been listening to the policymakers speak, mike, few weeks, is it pretty fair to say that they're all on the same page when it comes to raising rates? mike: it's beginning to look
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that away, especially among the voting members, bill dudley and dennis flockhart saying he was ready to raise rates at the october meeting, the group wasn't. he agreed to rate. he is pretty much onboard. he is a the conditions on the labor markets side have certainly been met. heard the same from loretta of cleveland and robert kaplan didn't say he was opposed to raising rates, although he agreed with the idea that the pace of rate increases is going to be lower in the future. so basically you have got most of the members at least agreeing it is about time to consider it. they'll wait for the final data between now and december 16, particularly that jobs report, but, again, unless they're talked out of it by the data, they're probably going to go ahead is the sense you get from the minutes. david: that's mike mckee, bloomberg's economic editor giving you his read of the minutes just out a couple minutes ago. still ahead on bloomberg markets, we're talk about syrian migrants in europe and how that is playing out here.
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we'll talk about fantasy sports with the congressman who is advocating for hearings on the matter on capitol hill. ♪ ♪
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david: welcome back to "bloomberg markets," i'm david gura. mark? mark: they were planning another attack, that word today from a frefpble prosecutor after a predawn raid on a paris suburb left at least two people
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dead and 25 others in custody. the prosecutor says the alleged ringleader of friday's attacks was not among those killed or captured. he added that police fired 5,000 rounds during an hour-long exchange of gunfire with those hold up in the apartment. today's arrests are the latest in a nationwide police drag net that has seen nightly raids by security forces under powers granted by the state of emergency that is currently in effect. two air france flights from the u.s. to paris were diverted after the airline received anonymous threats, one from los angeles landed in salt lake city, the other from washington to paris was diverted to halifax in canada. the planes, passengers, and luggage were searched. nothing suspicious was found on either flight. french president francois hollande says his country is at war with islamic state.
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in a televised speech, the president wants a large coalition working together to destroy the terrorist group. you can get more on these and other breaking stories 24 hours a day at the new from the bloomberg first word desk, i'm mark crumpton, david, back to you. david: tomorrow the house will vote on legislation to halt president obama's plan to allow thousands of syrian refugees to seek refuge in the u.s. earlier today the president had strong words for the more than 30 governors who want to block the refugees from settling in their states. president obama: apparently they're scared of widows and orphans coming into the united states of america as part of our tradition of compassion. now, first they were worried about the press being too tough on them during debates. now they're worried about 3-year-old orphans. that doesn't very tough to me. david: bloomberg's phil mattingly has been talking to administration officials about this.
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phil, i want to ask you how this process works. how does the refugee go from syria here to the u.s.? phil: if you want the back story behind the frustration you heard from the president, it's because of the process that is actually in place. there are not thousands of refugees walking into the country. there is a very real vetting process with very real u.s. intelligence and law enforcement agencies involved. it starts like this. the u.n. refugee agency first vets potential refugees. then they're sent over to the united states. once that occurs, it involves a person to person interview with the homeland security agent. then a biometric screening process, retina scans or fingerprints, the results are cross cheshed with databases. you have biographic vetting that goes on as well where the counselor services and the f.b.i. and d.o.d. are involved as william. only after passing through all of those hoops do you start the process of resettlement. david a lot of what you're hearing with the president and the administration officials is a lot of frustration about
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misinformation or lack of information. david: how many people are involved in that process and how long that process inherently takes, i wonder how salient those calls from some politicians are to pause this process are, in other words, u have so many mosque parts, how easy is it to say to stop it for now and pick it up later? phil: if you look at what the process actually is, you make this point, 18 to 24 months is the average for how long this takes. the administration wants to point to more than anything else is the type of individuals coming through. only 2% of the 1,800 individuals that have come through so far are single military age males. this is a program primarily made up of the elderly, children, and family. the administration as you mentioned, a lot of moving parts in place, a lot of things that are going on here, to halt it outright would be very difficult. that's the argument you'll hear as the hill debates this. david: thank you, phil.
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we're joining by the congressman from new jersey. you represent the sixth district in new jersey. your governor came out saying he would oppose any refugees from syrias including orphans under the age of 5. you heard the president referencing about that, talking about widows and orphans. what do you say to your governor in light of what he had to say? >> i would say, look, governor, you're absolutely wrong, but you're just pandering because you're running for president. that's what this is all about. i don't know if the governor believes what he says. the bottom line is that president obama is that this is a very strict vetting process, both when you leave syria through the united nations, when you come here in the united states it's mostly women and children, orphans, widows and to say that we shouldn't continue to allow people to come here for political asylum
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who are fleeing dictatorship, who are fleeing isis, who are religious minorities and likely to be killed in syria if they don't have a place to go, i just think that it's very unfortunate that he is politically posturing with this. david: congressman, the vote as we said is tomorrow on the matter of refugees. have you decide how you'll vote and have you heard from constituents on the matter whether they want more refugees coming to new jersey? congressman: i heard people say one side or the other as is often the case. my understanding is what the speaker is going to put up tomorrow is some effort to at least on its face change the vetting process, but i have no reason to believe that it's meaningful. i don't think it's going to make it any stricter. so i'm at this point would vote against his initiative because it doesn't seem like it's going to make any difference. i think this is just, again, political posturing on the part of the republican leadership and the house.
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it doesn't sound like their initiative would change anything in terms of the vetting process which is already very strict. david: as you have been watching this all play out and continues to play out in europe over the last few months shall the quantity of refugees coming to europe, do you see the need to increase the number of syrian refugees we would allow in this country? would you open to raising the cap to allow more refugees into the u.s.? congressman: i wouldn't be opposes to it. we should be taking our fair share. that is what the president is saying. he mentioned 10,000, probably o morgues in that to the over-- proportion to the overall numbers. all countries should take a share of them so one isn't overburdened. if you remember propose francis said this is our obligation. from if n't look at it they're muslim or christian. they are both.
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the people are fleeing persecution. they're going to be killed by isis or the assaad government. oftentimes their villages are being bombed. we have been a country that takes those who are fleeing for political reasons or seeking religious freedom, and i think we have an obligation to take our share. i'll leave it up to the president to determine what that share should be. david: congressman, stay with us if you would. we're taking a quick check of the markets. you're passionate about the crackdown of daily fantasy sports league. more in just a minute. ♪ ♪
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david: welcome back to "bloomberg markets," i'm david gura. let's turn to the controversy over daily fantasy sport sites. i know this is an issue care about an awful lot. you have been calling for hearings for i long time now. i want to get the stay of play on capitol hill. the venue through which you have been calling through this and any movement on that? is there a hearing date set? congressman: i spoke to the chairman of our committee today. we don't have a committee date set. he still says we will have a hearing, but it doesn't seem like it's likely before christmas because we're so overwhelmed with so many other issues. i think we're talking about early next year. david: >> is this issue one so important to you? you have been outspoken about legalizing sports betting. why this issue, why do you care so much about it? congressman: i started out because i thought it was so hypocritical that the sports leagues continue to oppose sports betting in new jersey and they're actually suing us and spending millions of dollars. meanwhile, those leagues or the
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teams or the owners are investing in fantasy sports, the daily sites, and are promoting. it seems totally hypocritical. i would like to see both legal, both also regulated. i think it's very important when you talk about fantasy sports that they not continue to be unregulated because that people don't really know what they're getting into. the ads are not reviewed by anyone. they can promote and say whatever they want in the ads pretty much. i just think a lot of people are betting not really knowing what the actual situation is with their money. employees insiders of the sites betting on the other sites and winning hundreds of thousands of dollars. i think that the new york attorney general is right when he says that this needs to be regulated. i think it could be regulated on the federal level, though.
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the f.t.c., we have written to the f.k.c., myself and senator melendez, they have the authority to regulate it federally. it may be better than having each state deal with it. right now, i don't blame the new york attorney general. he wants to make sure that it's fair play and that people know what they're getting to. david: congressman, you mentioned states taking action on their own, many calling into question how this industry is regulated. we have seth harris, the new head of a group, an industry group, that says to regulate itself. would that bring you enough confidence if these sites were to set up a body independent of their governance to regulate them, is that enough for you or does it have to be something done at the federal level? congressman: no, i couldn't trust them to regulate themselves. look, for the most part, i don't believe in self-regulation because i think there is too much at stake and they're making too much money for that really to be a transparent process. i do think that it has to be either at the federal level through the f.t.c. which is actually allowed right now. clearly, they have the
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authority under the statute or individual states if the f.t.c. doesn't take action. we're asking the f.t.c. to take some action, hopefully they will. david: a lot of people weighing this, the new york attorney general and many others, representing the sixth district of new jersey, the ranging member of the energy and commerce committee. appreciate your time. still ahead, solar stocks are getting hit this week. the sun power c.e.o. will join us to shed light on where the industry is headed. ♪ ♪
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i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. david: from bloomberg world headquarters in new york, this is bloomberg markets. mark crumpton is at the news desk. mark: authorities in paris
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trying to determine the identities of two people taken into custody following the deadly predawn raid today outside the french capital. they were among seven suspects taken alive. two others died come including a woman who detonated an explosive vest. there is the paris prosecutor. >> in total, eight people have been arrested. seven men and one woman currently being interrogated. the identity of the people arrested in this building are not certain. mark: french president francois hollande is urging his countrymen to defy terrorists by tending to their normal lives. stepping says a bill
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up background checks on syrian and iraqi refugees will not have a religious test. under the legislation, syrian and iraqi refugees could be admitted to the u.s. if they clear security tests. some republicans have suggested that only christian refugees be admitted into the united states. ferguson, the missouri city at the center of the national debate over police brutality and racial injustice has a new manager. he replaces john shaw who resigned in march after a scathing report from the justice department over rosholt -- racial profiling by police. michael brown's death led to several days of riots and protests. blatter has lost his appeal. the latest turn in a growing corruption scandal that has shaken world soccer. of thejected the appeal
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lawyer says the investigation against him was "uniquely one-sided, just and biased." both men deny any wrongdoing. you can get more on these and other breaking stories 24 hours a day at the new to flag just want something that came across the terminal here. a bloomberg politics poll. of u.s. adults surveyed in that poll in the days them eagerly following those attacks in paris and save the nation to not continue a program to resettle up to 10,000 refugees. commodity markets are closing in new york. let's look at the day's biggest movers. crude oil back to unchanged after briefly trading below $40 a girl. nickel dropped to the lowest level in 12 years. -- $40 a barrel.
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sinceggest annual slump 2008. zinc dropped to the lowest in more than six years. worries that demand out of china is weakening. wti hitting the lowest level since august earlier today. will the supply glut continue to put pressure on prices? we had to boone pickens hiserday gazing into crystal ball saying he did not think oil would fall below or dollars a barrel. -- $40 a barrel. >> it fell below $40. you have the reaction to record inventories. it is all about supply, supply, supply right now. we are seeing it pump more and more around the world even though the production is down in the u.s., we have a record amount compared to previous years that we cannot seem to trim out of. >> when we talk about this
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record global inventories, what does that look like? there is a lot of this stuff sitting around? >> there is a lot of visiting around it is waiting to be used. we had the same amount of demand, maybe slightly more demand. it is not a demand problem. it is not like our demand for oil has gone away. we have been very effective about producing it in the u.s. and opec has been producing more than its quota. we are producing more even though we are not drilling more right now because it is so expensive and offshore. the backlog of long-awaited projects are finally coming to fruition and coming online. you have a lot of production in the gulf expo as well. -- gulf of mexico as well. david: what is the winter looking like? sayingave forecasters
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there is no reason why this could not still drop lower. into the 30's or lower. we will have more demand from the refiners if they pick back up again during this seasonal time. it is not expected that that is going to cut much into these record inventories. let's shift gears to renewable energy and the outlook for 2016 and beyond. joining me is tom werner, the ceo of sunpower. i want to ask you about the expiration of these tax credits for solar power. set to expire at the end of next year. what does that mean for your business and the solar business generally? >> the idc expiration is a catalyst for business in the near term. scale seeing utility mother is a lot of projects need to complete in the next five orders.
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we will see that in commercial and residential. gethe longer term, when you 17, we expect a "breeder" in the "breather" in the u.s. market. david: i understand you are looking at new opportunities in california. a reengineering of your business model there. if there is this breather, how will you position yourself for the market? tom: we see policy changes in energy and electricity moving towards open access to the grid and to being a good citizen of the grid. that means for solar, we need to add storage and energy management. since we look over the next 3-5 years, son power becomes more of an energy company. -- sunpower.
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, it we look internationally is still about large-scale power plants. we have a great presence in china, great presence in america in south africa and japan. we are in the right markets. -- it owns 60% of our stock. we are well-positioned to excel in other parts of the world and we just added a new product we think works particularly well in those parts of the world that have a higher cost of capital. we have access to our channels and we get the experience in the main markets. david: when you look at adoption rates and interest in solar power, how anomalous is california? is it difficult to get people outside of that state to consider solar power? we are is anomalous in approaching 30% of the electricity comes from renewables. we are on our way to 50%.
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that is a world record. i would argue it is a leader and it proves the mainstreaming of renewables works. japan, solar is mainstream. and the most economic. italy, hawaii, you will see that happening in chile. that, wembine all of are seeing the mainstreaming of solar. that is a big disruptive and not always linear. clearerall trend is very and the opportunity here is massive. david: thank you so much. tom werner, the chairman and ceo of sunpower emerging-market bonds have been crushed this year by the strong dollar. gilbert is still feeling bullish. linkedin's cofounders has half of multibillion-dollar tech startups will survive.
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the biggest car companies are debuting their latest lines at the l.a. auto show. headll be speaking to gm's of product development index hour. -- in the next hour. ♪
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david: welcome back to the bloomberg markets. time for the bloomberg business flash. the biggest business stories in the news right now. barclays will pay $150 million to newark ranking regulators -- new york banking regulators. they will terminate the head of in a settlement today with new york's department
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of financial services. they have already paid $2.4 billion to regulators. conagra splitting into two independent public companies. slim jim, chef boyardee and pf chang's -- the other company will be called lamb weston. black rock shutting down the global macro hedge fund because of losses in investor redemptions. down 9% this year. its assets at all into under $1 billion. that's have fallen to under $1 billion. let's head back to the markets desk where julie hyman is looking at market reaction to those fed minutes. julie: not seeing an enormous amount of reaction on the equity side, for sure. stocks rising to their highs of the session. that big of paying a leg up.
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hereaw a bit of a leg up and hovering near the highs of the day. the commentary in the fed minutes maybe has something for everyone. some of the fed members dissenting, some reiterating once again that we are likely to see an increase in december. we have had more and more market participants pushing for that increase. if you look at what's going on in the bottom market today, we have seen yields push higher. holding steady here. same situation with the tenure here. -- 10 year here. they are now unchanged as the dollar has been on the move as well, up word. it has now come down to little changed. it happened before the minutes came out. , we are not seeing
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an enormous amount of change. has somet oil, oil other factors affecting it. .t has been rebounding here earlier, we saw all the prices under pressure. that's oil prices under pressure. an unexpected building inventories. we are not seeing as many imports. you would expect more of a drawdown. the read on the data seems to you that there is not as much demand for oil. not good news at a time when there are ample supplies. oil operating separately from what's going on with the fed, to some degree. david: julie hyman at the markets desk. from the u.s. developing markets -- the biggest rally has faded. every --nder of aberdeen asset management joined "bloomberg " this morning.
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>> it has been a tough two years. we have seen outflows from the funds for the last two years . sovereign wealth once selling big-time equities. to top years for aberdeen. -- two tough years. we are seeing quite a bit of interest from u.s. institutions in emerging markets now, which is the first we have seen for two years. we have not seen any retail interest yet or even european interest, really. are here, the institutions investing a bit more. >> is in emerging markets overall or the -- you are long in india. >> we have nothing in china just cause of the corporate governance issues. that did not help. when the meltdown came in chinese equities, it affected everything. we got hit across the board.
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we were a bit too heavy in malaysia where there were political issues. it has been fantastic, mexico has been good. what we have seen is some big corporate's taking the chance to buy subsidiaries. we had a big holding in sab miller and a tobacco company in brazil. we have seen that as a trend. stephanie: we are seeing hedge funds get her day in and day out. you have a lower fee structure. -- get hurt day in and day out. are using money taken out of funds and put into organizations like yours? >> i wish we were. stephanie: i just found it right there for you. >> the flow to separate allocators are coming from the broker-deal site to the investment advisory side. not so much from the hedge fund universe. >> clearly, it makes sense to be
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in the s&p during a bull market run. they will always outperform hedge funds. hedge funds are supposed to be connectors on the downside. best protectors on the downside. long short will underperform. stephanie: why don't you show was what that show was what funds will look like? the next macro master crushing it. i tend to think when you call yourself a master -- here --is is averaging aberdeen here. changesooking at the that martin has done over the last quarter. a reduction in energy holdings. a bit of a reduction in financials. a big increase in i.t. holdings. similar to what we see if i look at druckenmiller or duchesne.
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i wonder what you are doing differently than blackrock. you don't see any changes in their energy holdings. a massive reduction in their financials. here it is. here is the blackrock accra team fund -- macro team fund being wound down. they are not doing something right. >> the themes we like in emerging markets are consumer led. we like countries like india and mexico. india should benefit from the lower energy prices. met: strong holdings and pepsico and yum! brands. c, theindia, we like htf nonstate owned banks. star has been the performer for us but it is quite expensive at the moment.
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orhave been quite fortunate otherwise getting to very big holdings taken over. we have to find the investments to replace them. it is really hard to find another sab miller or the tobacco company in brazil, etc. david: that was the ceo of aberdeen on "bloomberg " this morning. a number of news sites reporting the suspected architect of the pairs of taxes that. more as bloomberg market continues. -- paris attacks is dead. we will bring you a preview, .ext pierr ♪
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david: welcome back to bloomberg markets. just a couple of minutes ago, several news outlets reporting that french police commandos have killed the suspected ringleader of those attacks in paris on friday. he was killed this morning in this predawn raids north of paris. the suspected architect of the attacks on friday has been killed. group, the company behind on my dating sites including, tender and okcupid are pricing tonight after the bell. joining me now is emily chang. will they live up to expectations? emily: we don't know. we are expecting pricing after the bell.
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a lot has been made of squares valuation. -- square's valuation. some say it is not apples to apples. you are looking at different share counts. you look at fully diluted shares based on what they are going for, it could be closer to $5.7 billion. can these companies live up to how private market investors are valuing them? i got a chance to sit down with reid hoffman yesterday, the cofounder of linkedin. he thinks intelligently about these things. are we in a bubble on the why are we seeing this wide disparity in valuations? -- there isens is this quasi-bubble in private. public markets have a lot of interdependency. you see people buying and selling and they can stabilize their price. private tends to be the player that puts the biggest check
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forward. it is easy to get an inflated valuation because someone gets excited about this. leaves the upward trajectory of the market and goes into it. that does not affect things like the internet bubble, pension funds and every thing else as much because it is a focused, small position. but general public market position. we will see more of them because people are trying to figure out airbnb andhe next erro uber's. emily: he is a board member of said, come on, read. he thinks they are unique. david: i wonder how people are looking at this company. looking at square. are they seeing it as a tech company or payments company?
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emily: it gets compared to amazon, google, apple. and analyst said this is a payments company. it should not be compared to apple. it has a better brand then some of these payments competitors. the competitors where is looking at his heartland, paypal, companies that are very different than apple and google. we will have a full interview with reid hoffman. we have a new episode of studio 1.0 coming up tonight. steve is on the board of tesla and space x, very close to elon musk. take a listen. steve: the best partnerships are when the venture investor believes as passionately as the
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entrepreneur. when i hear him explaining it, he has won me over. i have been wrong. i will be run again. when it is right, it is an incredible thing. emily: obsessed with space, says with ai -- obsessed with ai. a pretty fascinating conversation. david: thank you very much. emily chang, anchor of bloomberg west. , we aren the next hour heading to the l.a. on a show for an interview with jim -- gm. ♪
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♪ anchor: it is 4:00 a.m. in hong kong and 3:00 p.m. in new york. welcome to "bloomberg markets"
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♪ from bloomberg world headquarters here in new york, good afternoon. i am betty liu. stocks are extending gains as the fed released its october minutes, adding language stressing that a december rate hike remains very much on the table, and a global macro hedge blackpulling the plug on rock. how much will this hurt the reputation of the world's largest asset manager? and an ipo after the bell, payments for either of them, a match made in heaven for investors, and we are about an hour from the close of trade. i went to head to the markets desk, where bloomberg's julie hyman has the latest on investors welcoming, it seems, the news


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