tv Bloomberg Markets Americas Bloomberg October 2, 2017 2:00pm-3:30pm EDT
scarlet: where live in new york. here are the top stories we are covering on the bloomberg and around the world are in police are reporting 58 people dead with hundreds injured after mass shooting in las vegas resulted in the deadly as in u.s. history. kick off the fourth quarter with stocks at record highs. equities getting a boost thanks in part to data showed that manufacturing came in surging. business disney threatening to pull programming from 2.6 million customers. we will discuss just how it deal was reached. let's get you started with the latest on a shooting in las vegas. for that we go to mark crumpton. >> president trump is calling
the killing of 50 people last night and outdoor music festival in las vegas and active quote pure evil. the president praised first responders who stepped into harm's to help the dying and the wounded. the speed with which they acted is miraculous. and prevented further loss of life. people were 500 wounded. the suspected gunman has been identified as 64-year-old stephen paddock. attack from a the room on the 32nd floor of the mandalay bay hotel. word on a motive. islamic state has claimed responsibility for the attack above the u.s. national security council says it's not aware of fact to support that claim. steve scalise is offering his prayers to the victims of the
las vegas shooting. the louisiana republican was seriously wounded at a congressional based practice in june. he returned to congress last week. he tweeted that he and his wife are praying for the victims of this unspeakable violence in las vegas. the u.s. supreme court today opened a high-profile turn with the case about employees rights that could affect 25 million workers. the cases of importance to employers and their workers because it involves how employees can complain about pay and conditions in the workplace. issue is whether businesses can force employees to individually use arbitration to resolve disputes. a decision next -- is expected by the spring. trial of the alleged mastermind of detroit 12 attacks on a u.s. outpost in benghazi. -- that whentold
this hatred boiled over he organized the strike that killed four americans including ambassador chris stevens. he has pleaded not guilty to murder,including providing material support to terrorists and destroying u.s. property while causing death. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this bloomberg. stocks are still at record highs despite the tragic shooting. we will check in with julie hyman. it hasn't been an unusual reaction to see stocks shrug off or operate independently when we get these sorts of tragic events and attacks. not just the united states but around the globe. we are seeing isolated reaction. the major averages all trading at records. the dow and the s&p at
records. this is something we had seen at the end of last week as well. to our tops get story. president donald trump will lead a moment of silence today for the victims of the las vegas shooting. he also announced earlier this morning that he will go to las vegas on wednesday to meet with families and first responders. for more the reaction from washington that spring and margaret talev -- let's bring in margaret talev and kevin cirilli. have heard from donald trump so far is praise for the emergency services. he has a very much kept politics out of it. what is he saying about his decision to go to las vegas on when they of this week? is going to bet traveling to puerto rico tomorrow. some discussions about whether
or not he should keep that trip. made the decision to go ahead and keep that trip. and then make the trip to las vegas. the authorities are working with the white house because they believe essentially the threat has been contained with the death of the apparent shooter. a manageable situation from a law enforcement perspective. one where the white house and the president wanted to reach out and make that human connection. will note the care and degree to which the president sought to manage that message and stick very closely to the script this waying in contrast to the he has handled discussions about the hurricane damage in puerto rico and the political fallout from this. ofis steering clear not only any particularly emotional language but any policy. this is a moment for comforting
and uniting the american people and the president and the white house are taking great care to stick to that very narrow message. scarlet: authorities were careful to say that they did not see any connection to international terrorism. the islamic state did claim responsibility for the shooting thing the shooter was a convert. they didn't provide any evidence for that. can you square what's going on here? no evidence of that whatsoever. intelligence officials as well as those locally on the ground all saying that as of now no evidence suggests at all that there was any outside of allegiance. investigations are ongoing. we should note what the administration and local officials are saying. here on capitol hill democrats move thisying to tragedy into the realm of policy. we have heard from top democrats all throughout the day including
some potential 2020 contenders including elizabeth warren, bernie sanders and joe biden. i want to pull up what nancy pelosi wrote in a letter to speaker paul ryan. she wrote today is a day for prayer, morning and love. it is also a day for action. our words will remain hollow unless we take long overdue action. that was in a letter to speaker ryan. she is calling on the creation of a special committee on gun violence. i just received word from a senior aide to a top republican in leadership who said that that is doubtful that the creation would be there. there is some pending bipartisan legislation in the house. the crux of it is following the legislation put forth between senators joe manchin and pat toomey following the sandy hook
shooting. that never became law. in the immediate problem the politics will continue to unfold. having difference was shot during the tucson tragedy. she is on capitol hill trying to rally cries for gun reform. from sarahcipating huckabee sanders to give a public briefing and a moment of silence led by president trump and the first lady. later this evening they are scheduled to meet with top republican elected officials. in washington before he has to puerto rico. on wednesday he will be in las vegas. unfortunately whatever your politics in this situation it is just one of many instances that we have seen this kind of violence and if nothing has changed up to this point why will it change going forward?
if you look at the pending legislation it looks like it would likely loosen gun control rather than step it up. is that right? the anticipation ahead of the tragedy had been debates over issues such as silencers. it is precisely that question, what has really changed in the american consciousness and the makeup of congress. gun rights versus gun control and safety that have long been drawn. what has changed exactly from that tookhook tragedy place under president obama's time as president to now and the answer right now may be not very much. an opportunity in both cases to try to have this debate. at this point no indication that anything has changed politically or if it has that the lines have hardened.
this is a republican congress and republican-controlled white house. trump has expressed a willingness perhaps to tighten existing enforcements. he has not expressed willingness in the past as a candidate for to take a much harder stance on gun control. there's no reason at this point to see that moving forward. scarlet: the president in terms , heis take on gun laws strove to drive the contrast between him and hillary clinton during the campaign. as margaret mentioned he does support efforts to strengthen the current system. do we know what that means? >> yes. two things i would note. during the campaign we consistently some criticism from his primary republican -- opponents about an evolution on a host of issues
and one of them was gun control. in fact donald trump as a private citizen had published in the early 2000 position on gun control that called for the reigning in of several weapons and an assault weapons ban as well as more stringent policy. he reversed that position during the campaign trail despite criticism from those that he ran against in the republican primary. the second point that i would make is that when we talk about what he means about enforcing current laws on the books he's pointing toward conservative studies that just the current laws on the books are not being properly enforced. talev thank you, margaret and kevin cirilli. abc news correspondent is standing by on the ground in las vegas. give us a sense of what you are seeing and hearing in las vegas
right now. we know that there is still a massive effort to reunite families with their loved ones. many people haven't been able to contact them after the shooting with the number of people injured. there is now a process put in place. they have set up reunification centers for people to try to find their loved ones. officials saying it is going to take some time for the identities of those who have killed and those who have been thated to be released so families can know of their loved ones were involved in last night's shooting. right now that seems to be kind of the focus today. reconnecting families with loved ones and having to share the sad news with some people about their loved ones in this city. julia: the president responded today by praising the emergency
services. how are those hospitals coping with the sheer volumes of people they are treating right now? we are hearing that the hospitals are to capacity. the people are overwhelmed. casualty, with casualties of this number and over 500 people injured, it is such a toge number or any hospital be able to handle especially all at one time. family members trying to get information about their loved ats, these hospitals are capacity and people are overworked right now and definitely overwhelmed. scarlet: thank you for that report. coming up, we switch over to markets. equities climbing to new highs. in appetite for ipo's
i think there will be certainly time for that policy discussion to take place. that's not the place that we are in at this moment. certainly there is a time for that to happen. >> before he was elected president he did have a different view on guns than he had during the campaign. does he believe he could lead a bipartisan effort on that at some point? at what point would that be appropriate? >> that is something we can talk about in the coming days. one of the things we don't want that is try to create laws won't stop these kinds of things from happening. if you look to chicago where you had over 4000 victims of gun related crimes they have thee strictest gun laws in the country. that certainly hasn't helped. when the time comes for the that conversation to take place we can look for things
that have that real impact. can you tell us about his visit tomorrow and do you expect any tension given some of his comments over the weekend? we willve several stops put out later this afternoon. we are going to be spending significant time in puerto rico meeting with first responders as well as storm survivors. put out the details of the exact schedule later today. over the weekend about how people wanted everything done for them -- do you expect that to come up in this conversation? >> i expect the focus to be on the recovery effort which we are fully committed to. the top priority for the federal government is to protect the of those infety affected areas and provide life-sustaining services as we
work together to rebuild their lives. that's going to be the focus not just in the conversations tomorrow but that we have had since this began. i haven't talked to him specifically about who they might be. is doingal government everything within our powers and capabilities to first focus on the life-sustaining and lifesaving measures as well as on the rebuilding process and we've got over 12,000 federal staff on the ground. of 60 seven are partially or fully operational. 14 are back on the electrical grid. in puerto ricos have access to drinking waters. eight commercial airports are operational. 65% of gas stations are opening. these are things we are continuing to push and will be part of that effort. does the president believe
that what happened amounts to an act of domestic terrorism? >> this is an ongoing investigation and it would be premature to weigh in before we have all of the facts. we will leave it to local law enforcement to make those determinations. >> over the weekend the president was very sharply critical of the mayor of san juan. -- inthan her comments terms of dhs getting supplies -- what was she doing that prompted such criticism from the president? focusk -- right now our is to bring the mayor into the coordination effort. this administration as well as other members on the ground have reached out to her. we hope that she will join with us in those efforts and be part of things she has been invited to participate in the events thoseow and we hope that
conversations will happen and we can all work together to go forward. that was white house press secretary sarah huckabee sanders. talking about the tragic events in las vegas. avoiding any talk about what this will mean for future legislation as far as gun control. she cited the example of chicago and their stringent gun laws and effectat has not had the that they were hoping either. president trump going to las vegas on wednesday. will be a moment of silence later this hour. we will take that live when it happens. as u.s. stocks make new record highs there is an interesting dynamic at work. the number of companies coming to market is slowing down. bloomberg data shows that over the years a number of initial public offerings has been falling to about 127 so far this
year. the numberrt shows of publicly traded companies on the nasdaq and new york stock exchange also on the decline. change from the early days of 2003. what does this say about our capital markets? we bring in david hunt. get your take on global stocks bleeding at record highs -- being at record highs. be a lot ofseem to fear a comforting those gains. what are you hearing from your clients on that? about the better equity markets than we have in a while in terms of the price levels. at the beginning of the year we saw a big bounce that came from the so-called trump trade. we were quite skeptical of that. that really petered out to virtually nothing.
the good old-fashioned economies around the world are doing better than people thought. have the top 45 countries growth on year. we have a real reflation opportunity around the world that is happening and that's what u.s. and in the equity markets today. we feel that is actually sustainable. a review would be with rates where they are now that the price level in the equity markets is actually fairly valued. we feel more constructive on equities than we did. scarlet: in the u.s. one fundamental source of support for prices has been less supply whether you are looking at the number of ipos
coming to markets or the number of publicly traded companies in the u.s. what does that signal about the help capital markets? lot about the health public equity markets. there is a real narrowness to what's happening whether that's the record highs we have been talking about, about 40% of the s&p growth this year comes from five stocks. we are seeing a real narrow range of firms attempting to that. the ipo market we are basically at a third of where we were 20 years ago. if you look at the number of new companies. my favorite hurler joke is how many companies do you think are in the wilshire 5000 index. less than 3500. there simply aren't enough companies out there. we have seen a very steady decline in the number of companies publicly listed in the united states. the number of shares
outstanding has also been dropping. julia: the conditions are low interest rate. to these companies that don't want to face the burden of quarterly reporting they can kind of get money elsewhere for the large part. >> that's a great point. there are two reasons and a very good alternative. absolutelysons are as we have seen these companies begin to condo crow and think about going to public markets they have a great alternative and that's private capital. private equity has grown rapidly. if you are a fast-growing --pany at the moment why not we are seeing that happen again and again. until we begin to address the
fundamental problems with the public markets we think that's going to continue. scarlet: what are the implications for retail investors? is the real concern. we have had in this country a democratization of the returns from the capital markets. of the returns were available to retail investors and we are seeing that beginning to really erode. backed a fundamental step to fix the health of that or retail investors will not have access to as many high-growth companies as they have become used to. we will capture how to tackle that very shortly. it's hard when private equity is e -- capturing all the gains. it's really true. the fundamental causes of this decline are too full. to reducehave managed
the amount of resources the sell side is providing in terms of coverage and trading. to small-cap companies. that has happened over a long period of years over a series of regulatory changes. many firms are not making very much money in their cash equity markets so they continue to reduce coverage. it's very difficult to have publicly traded company with no real coverage. realdarily there is pressure on the amount of quarterly earnings you get at a public company. scarlet: david hunt, stay with us. the publicing about equity markets. this is bloomberg. ♪
>> this is "bloomberg markets." scarlet: we have been talking about decline in ipos. they are far from dead. companypublicly traded has become a talking point. is this cyclical? : we have no risk of sales capital supporting the public markets. that needs to change if we are going to reverse the trend. are goingonly way we to make these kinds of returns available to retail investors. private equity has done a good
job of providing an alternative to middle market companies. julia: they are specifically paying for research. you were going to be that much more focused about where your research is. rather than spreading it around. scarlet: -- david: it is a great point. this is the example of a 10 year regulatory path. fairness, we had better transparency and getting better at ensuring there are each conflicts of interests. julia: a bank economic impact as well.
-- a big economic impact as well. scarlet: companies do have access to mutual funds. what kind of risks does that create? a host of new structures are beginning to evolve. mutual funds have started investing privately a. mutual funds have started investing privately. shell funds are being set up. those are not as good as fixing the underlying health of the public securities markets. scarlet: more regulation? david: less. we think there ought to be more tailored regulation for smaller companies. don't have the same standards for fortune 500 companies as we do smaller growth companies. julia: tax incentives?
[crosstalk] scarlet: thank you. has beent on what going on with the shooting in las vegas. mark crumpton has more. the shooting is being called the deadliest ever gun attack in the united states. the nevada governor spoke at a press conference. there is a lot to learn. from this despicable act. i am very angry. we can learn. k: he joined president trump in praising the actions of first responders. .8 people were killed they were attending an outdoor music festival. 500 others were wounded. the gunman killed himself at the mandalay bay hotel and casino. isis is claiming responsibility.
the fbi special agent agent in charge says that hasn't been verified. >> we have determined no connection between isis into this investigation. we will continue to work to ensure this is factually and thoroughly and absolutely investigated. mark: authorities say they believe the suspected shooter acted alone. k'sw motive is is still unknown. president trump says he will travel to las vegas on wednesday to meet with first responders. in remarks this morning, the president congratulated local authorities for their response. he called on a nation to come together. the president and first lady
will be on the south lawn of the white house to lead a moment of silence to honor it comes. -- to honor victims. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. julia: what you do when volatility is pretty dormant? great to have you on the show. how do you get returns when volatility is absent? >> you look for it when you can find it. that doesn't mean all the stock prices are moving in sync with each other. there is still some
cross-sectional volatility. we tend to look at individual stocks and correlations between them. we get a lot of news on the mega cap tech stocks. that is a form of useful volatility. >> there is lots of different things -- tie down the strategy for us. adrian: if you could find a stock that was going to do that,
by it, hold, and get out. we recognize that volatility inherent in stock prices presents an opportunity to buy low and sell high. the stock may even match the market. sometimes, it is a little bit slower. sometimes higher. scarlet: in tech had been struggling for a bit. what have you learned as you made the shift? a strategy has been in place for 30 years. we haven't changed the process.
can adapt to market conditions. learned it is possible to reengineer or readapt the strategy. we have been successfully doing that for a few years. julia: how are you doing this year? a very strong performance. general performance has been excellent. how do investors utilize your strategy? and the fact that you were kind of uk europe? adrian: we are managing a course quantitative for strategies. quite different for us.
we have our own investment step, including trading. janice henderson is instrumental in supporting our strategies. we have a much broader complement really -- comp lementary lineup. we have inflows we are seeing into passive strategy. how do you justify investment? here?re an alternative you can compete on value. establish we to can adapt to different markets. volatility can be extremely low.
sometime high. it is, in fact, in the middle. there is the aspect of providing insights into the volatility space. where is the market -- how is volatility so low? what do you say when they ask you why volatility is so low? adrian: if you look back a couple of years, what we have or volatility of events being swallowed up quicker and quicker. down 10% in two weeks. quarter,d of the first who would've thought it would be of above water? i have to wrap up.
analysts have been talking about plans for automated vehicles. they will be ready in quarters, not years. a $51 price target. viewed as conservatives because of the outlook. he says they will be automated electric vehicles. if you take a look at the bloomberg. the average price target is shy of $40. the stock has now gone higher than that. a little ways to go before it gets to $51. it is interesting these comments are being made. 's currentk at gm
offerings, the chevy bolt has not sold a lot. volt volt has done quite well. julia: great to get your insight. thank you very much. to espn, abc, and the disney channel will continue for millions of subscribers. what does this tell us about the strength of disney and its espn network? in the director of north american research for bloomberg intelligence.
concerns were that disney was not in a strong position as a those two were new contracts -- contracts.to renew but they were able to get meaningful price increases for its cable. the market is saying, it is good to have a deal. maybe the numbers were materially below where they were, but disney is getting paid. scarlet: two college sports networks are being picked up. the sec and the one yet to be launched. what does that say about the strength of college sports? espn still has a lot of clouds in the marketplace. -- clout in the marketplace. disney is probably looking to
cut cable networks. but espn has clout to get paid more and. to additional -- and carry two additional cable networks. julia: do you have any sense how long this deal is? this is the first round of negotiations. typically, these deals run in it the 3-5-year range. in the 3-5-year range. one.was the first big it became really cleo -- clear that court-cutting is a big risk. disneyal both well for and takes some of bear case. case.the bear
we don't know the rate increases in terms of percentage growth. than the other cable operators don't know. how do they go into their negotiations? paul: they will say, we are comcast or whatever, and represents so much of your distribution. they have had a type negotiation. each side tries to say at their position is stronger. cablentent owners and networks and broadcast owners they win, often at the expense of distributors. but they passed higher prices along to consumers like you and i. the director of north american research for bloomberg intelligence. thank you. the actor who plays jamie
progress is being made all the time. scarlet: the numbers show women closing the gaps when it comes to wages. what do these countries gets right? -- : ikolaj: free access to education. health care for everyone. so you can take care of loved ones who are sick democratic -- soutions have to work you can take care of loved ones who are sick. democratic institutions have to work.
you look at gender-based violence, one in three women will experience some kind of violence. sexual or physical in their lifetime. that is insane. scarlet: the actor explained how it is he became a goodwill ambassador. nikolaj: they asked. thrones" is so successful. thought we could turn that into something important. i am all for it. it is not about me. i would rather speak to the folks from unvp. they know a lot. time whereis weird we are afraid of experts and we
don't want to purity truth. tot is -- we don't want appear the truth. that is shocking. i want people to educate themselves and go to these institutions. educate yourself. we have so many challenges. we have to do more. scarlet: that was my conversation with actor and go well ambassador -- and goodwill ambassador nikolaj c oster-waldau. he is very involved. julia: he is great. there is a second part of this conversation where we compare the metaphor of the white walker's has changed. -- the white walkers has changed. this is bloomberg. ♪
12:00 p.m. in san francisco. 8 p.m. in london. while -- scarlet: welcome to "bloomberg markets." ♪ julia: we are live in bloomberg headquarters in new york over the next hour. here are the top stories. is standing in solidarity with las vegas. he led a moment of silence at the white house after the deadliest mass shooting in u.s. history. 58 people are dead. 515 are injured. the shooting is not impacting equities. stocks are hovering at record highs. more consolidation in tech. eco discusses -- ceo
discusses the company strategy. mark crumpton has the latest on the shooting. you saw here on bloomberg tv, the president and stepped onto the south lawn of the white house to lead a moment of silence for last night's mass shooting. it was the worst shooting in modern u.s. history. the president called the shooting an act of "pure evil." he is scheduled to travel to las vegas on wednesday. in the town where the suspect lived say his home was searched. local officers never had contact with him while he was living there. he lived in a three bedroom house in a retirement community in mesquite, nevada. authorities are investigating why he opened fire on an outdoor
music festival in las vegas, leaving 58 data. the white house says this is not a time to renew debate over gun control. sarah huckabee sanders was asked during the press briefing about whether there was a need for stricter gun legislation. sanders says president trump is focused on the victims in distressed it was the time to unite the country. the european union chief is appealing to the swedish prime minister to avoid further force inn and use of the standoff over the catalonian independence referendum. catalonia's regional government says 90% of those who voted yesterday chose independence from spain. it has called for international mediation. three americans have won the nobel prize in medicine. thanhave been awarded more
$1 million for figuring out what jean controls the human -- what gene controls the human body clock. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. let us get a check on how markets are doing. it is the first trading day of the month and of the final quarter of this year. to begin byt looking at what is happening in reaction to the events in las vegas. there are some direct effects from that. mgm resorts is the owner of the yentally bay casino -- mandala bay casino. shares are down i 4%.
the s and p and nasdaq following suit. 2000 joining the others at a record. it is up for the seventh straight session. gaining,of what is industrial companies and manufacturing is doing well. the latest manufacturer survey showed at a 13 year high. arconic, the aluminum products maker, up today. this isway to look at the effect of the hurricanes. take a look at the bloomberg. delivery,supplier specifically. post-hardy, you get a longer --
post-harvey, -- you get a longer lead time with deliveries. and people have to reorder things that were destroyed in the storm. that is what is accounting for that gain. trump says hedent will be traveling to las vegas on wednesday halloween the mass shooting. it is the deadliest in modern u.s. history. ur.ning us is sahil kap tell us more about what the said.ent has mitch mcconnell was speaking.
he was speaking on the senate floor. sahil: president trump called this an act of evil. leaders are offering a very similar response. to reopenhave called the debate over the nation's gun laws, to impose tighter restrictions. thethe banning of high-capacity magazines. julia: the white house press briefing. sanders spoke
about the response to renew gun control. sarah: this is a day of reflection, and a day of gratefulness for those that were saved. there will be time for that policy discussion to take place. that is not worthy are at this moment. at this moment. julia: there is no reason to assume there will -- that anything will change. will relaxolicy, it gun control roles -- ryul -- r ules. sahil: what you just played was in response to a question over the tragedy last night. had it changed the president's opinion on gun laws? that was her way of saying, no.
she said there will be time for a policy discussion, but not at this time. president trump is a staunch opponent of gun control. congress is considering easing restrictions on silencers on firearms, later this fall. allowl as legislation to guns to be carried across state lines. julia: president trump has a busy week. he is heading to puerto rico and las vegas. how does he calibrate his response? he has gained in polls in recent weeks. tragedies are a real
test of leadership. has left countless people without running water, food, electricity. without any way to communicate. that is something that president trump has gotten criticized for. for not being responsive enough. he has met with the mayor of san juan. his speech earlier today on the biggest shootings has been met positively -- vegas shootings has been met positively. he has not handled criticism particularly well in the past. julia: great to get your insights. scarlet: coming up, we bring you the oracle ceo. plans tooftware giant
potential targets. battlegrounds is in talks with microsoft. the want to extend agreement to publish the game exclusively on microsoft's xbox. expect a lot of traffic in the electric car space. nearly 15 models will be marketed i-20 22. -- by 2022. gm is planning to sell 20 electric vehicles by 2023. requires many factors to build more evs or buy credits from rivals. interesting.
oracle will be offering new features in its database service that will help the software company go after amazon's cloud business. thereporter caught up with oracle ceo, starting by asking about the product announcements. mark: it is called the autonomous database. spend hours people tuning databases, trying to patch them. it has become more well-known over the past few months. stuff is going to be done automatically. thomas lee. -- autonomously. it is extremely significant. lower cost. much more secure.
we have been investing. is 140,000.nt inot of that is hiring research and development and sales. repatriate toto the united states. we would invest in the united states. >> your competitors were quick to complain about your growth rates. what do you make of your cloud growth and how it compares to competitors? mark: let us talk about that. rates are the highest they have been in years. was 7%, ofue everything. cloud revenue, higher. revenue growth rate, higher than
our competitors. new c loud --n in yearw cloud systems last have people saying we wouldn't get it down. the growth rate was higher than the year before. people say things. are in as good as a position -- the application's business is growing. we are excited. ahead, the ups and downs of the last quarter of the year. could it be time for a volatility play? how to trade the vix. from new york, this is bloomberg. ♪
julia: this is "bloomberg markets." it is time for options insight with julie hyman. mkme: joining us is jim of holdings. the fourth quarter is the strongest quarter of the year. back 50 or 60 years, the fourth quarter's have been getting stronger over time. because of the effects of hedge funds. what are key things to think about? jim: there is usually more volatility. people are aware of some of that data. the year end run into december. there historically is a good amount of volatility this time of year. it doesn't feel like it, with indices touching at an all-time
high. julie: has there been a volatility trade that has been unusual? clients don't usually put together profit laws and diagrams to understand the implications. this was a client going from october to december, selling 12 -puts to buy 15 strike calls and selling twice as many, 25 strike calls. contractsas 250,000 on the 15 strike and 525,000 on the 25 strike. equities do well, there is a body of activity on the volatility side. millions ofd
dollars to put the structure on. of risk in this transaction if volatility explodes. shockwas a significant into thousand eight. it would cause hundreds of millions of dollars lost in this position. julie: still thinking with the volatility is going to increase -- what are we betting on? jim: you when it volatility is sharply higher -- you win if volatility is sharply higher. selling a 12 strike put in december. turnaround by 20 strike call. you don't have that an enormous risk that went up in this large structure. you continue to plummet all-time lows with equities where they
are -- plumb all-time lows with equities where they are. downside risk, mitigated. dropped sharply from here. unlikely, with realized volatility 4% or 5%. do get some semblance of higher volatility, you have that 20 strike call to have that volatilityn case let's sharply. -- lifts sharply. julie: thank you so much. ahead, it is spain. hundreds of people were injured as spanish police sought to shut down the independence referendum. this is bloomberg.
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news. president trump says he will travel to las vegas to meet with first responders and families of the mass shooting he called "pure evil." mr. trump congratulated local authorities for their response. he called on the nation to come together. security officials say there is no specific credible threat involving other public venues in the u.s. the shooting killed 58 people. more than 500 were wounded. , the gunman,ck died at the scene. he took his own life. he fired from the 32nd floor of casino ontos strip an outdoor country music festival. masss the deadliest shooting in modern u.s. history. no motive has been determined. the father of the sud