tv Bloomberg Markets Bloomberg November 25, 2015 12:00pm-2:01pm EST
military way, turkey and russia in terms of trade connections is a huge issue economically good if russia seeks to exact retribution in that form, that could be just as damaging as if they looked to intervene elsewhere. that is an issue we need to do grapple with and the president will be watching very, very mostly what you are hoping for will be that he has prevailed, that we can actually get cohesion around what people want to identify as the principal threat to security and sovereign nations both in europe and the u.s. right now, that is the islamic state. this become a hurdle to achieving that consensus, it certainly has. president will be deeply focused on making sure the parties and actors involved are focused on that instead of side issues. the president is in a huge bind market andms of the
what is talking about. he faces huge rhetoric. but also, do people understand what it means to have a ground game in syria, how much money that would take, how many years we would have to be in these countries? with an outcome at best ambiguous and impossible to see. loss of lives, thousands and perhaps tens of thousands. listening to military advisers, he can see that is a difficult choice, when he does not want to engage in. he is facing a reaction from the american public and europeans what are youll as, doing to stop this, how are you, the president, under which i feel safe. >> is there a correlation
between the need and the obligation for the president to dress security concerns and policy issues, the greater that is, the worse it is for democrats of 20 fix it -- of 2016? >> the bottom has not fallen out. he is still supported by a lot of americans. there has not been very often a rallying effect. even after bin laden was killed, his approval ratings spiked up low briefly and then came back down. he has not been able to unite the country very much and he also has not built relations overseas. history will report one of the challenges the president brought on himself was in a time like this, not many world leaders consider the president his friend and that creates challenges. erik: you are from the president right now. mr. obama: my fpm -- my fbi obama -- director, for a regular
update on security posture post paris and going into the holiday season. i think all of us recognize how horrific and heinous what took place in paris was paired as i said yesterday, for many of us, the events touched deep given the connection between the united states and france, the degree to which americans see and paris a way of life that is so familiar to us here in american cities. given the shocking images, and all americans have been asking safeother whether it is here, whether it is safe to fly or gather. i know families have discussed their fears of the threat around their dinner table, many for the first time since september 11. it is understandable that people worry something similar could happen here. watching the events in paris
made the threat feel closer to home. as we go into thanksgiving weekend, i want the american people to know that we are taking every possible step to keep the homeland safe. isil, we are going after wherever it highs. that has been our strategy for more than a year. i will speak about this in more detail in the coming weeks but let me remind the american ofple of what our coalition 65 nations is doing to destroy these terrorists and defeat their ideology. our military and partners have conducted more than 8 million strongholds on equipment. the airstrikes along with the efforts of our partners on the ground have taken out key leaders and territory from isil in iraq and syria. work to choke off their financing and supply lines and counter their recruitment and messaging.
america is already supporting french airstrikes in syria, yesterday, president hollande and i agree we will step up that even further and do more of the work together. up on isil where it lives. until they are beaten. that is our first goal. the second, we continue to do everything possible to prevent attacks at home and abroad and prevent foreign terror fighters in the united states and other nations. since 9/11, we have taken extraordinary measures to strengthen our homeland security in everything from aviation security to border security. we have improved upon these actions over time. is an event, we learn something from it and we continue to refine. we continue to improve upon our
approaches as we speak. of nonow, we know specific and credible tout -- intelligence indicating a plot on the homeland. that is based on the latest information i just received in the situation room. it is similar to the information , the briefing i received on saturday, before i left on my trip last week. weekendcans travel this to be with their loved ones, i want them to know our counter -- counterterrorism, intelligence, homeland security, and law enforcement professionals on every level are working overtime. they are continually monitoring threats at home and abroad, continually evaluating our security. they are constantly working to protect all of us. their work has prevented attacks. their efforts have save lives. they serve every hour of every
day for the sake of our security. they did so before paris and they do so now. credit, andare or without a break for the holidays. i want theline is american people to know entering the holidays that the combined resources of the military and intelligence and homeland security agencies are on the case. they are vigilant, relentless, and effective. specificent of a credible threat, the public will be informed. we do think it is useful for people as they go about their business, to be vigilant. if you see something suspicious, say something. that is always helpful. but otherwise, americans should go about the usual thanksgiving activities, spending time with family and friends and
celebrating our blessings. while the threat of terrorism is a troubling reality of our age, we are both equipped to prevent attacks, and we are resilient in the face of those who would try to do us harm. that is something we can all be thankful for. happy thanksgiving, everybody. >> mr. president [indiscernible] that was president obama with a thanksgiving message to americans, be safe and be vigilant, speaking to the white house here this wednesday before the national holiday. megan murphy and are with me. mark, what was the point of that? the president had no news to share with the american public. mark: to reassure people during a holiday time when a lot of people are traveling, they are talking about things to reassure the american public and to try again to sell a point that he is frustrated is not getting
through, that he has built a broad coalition of countries around the world who will fight isis and that there is a plan to deal with them. and finally, an ongoing effort to hit the right tone. parking area. he is trying to have another do over on that from the immediate aftermath. some people close to him felt erik: it wasn't quite right. say was word he did not more. he talked about stepping up coordination. that is not actually dropping more bonds. i think people assume the airstrikes will increase and still, the ball is very much in support of the french and the british to say, what do they want to do? tois still an opportunity have better coordination. it is not just a matter of pr and that he doesn't want to admit or technology change in policy. he believes negotiations get aside out of power -- get
president assad out of power. he believes it is the right solution for the country and the world and he does not want to change. he just wants to step things up. usk: megan was telling earlier about the struggles and the criticism the president had faced in his choice of words and his tone that he has taken. mark makes the point the president is trying again to hit the right tone. did you hear anything different in the way he addressed these issues? not and i was surprised with the tony took. towning a more emotional -- tone. that was all business for him. he is incredibly frustrated he cannot get the message through that he believes the strategy we have is the right one and he cannot seem to win the message with the american public. i think he was trying to get a little bit of a chance to push that out and i think he was
obviously trying to stop -- strike a note of reassurance. , his language there, no credible threat right now. whether or not he is still getting it across to make meaningful change in this campaign is a question to be answered. as you rightly note, we will upping shift in terms of airstrikes, sharing intelligence, whether that will move the needle in the short-term and even the long-term it has yet to be seen. very much megan murphy and here with me in new york, mark halperin. .hat will do it for me stay tuned to we have much more coming after this short break. ♪
clubs it is nearly a quarter past noon in new york. >> welcome to bloomberg markets. scarlet: good afternoon and i'm scarlet fu. steel. am alix president obama says the u.s. and allies are stepping up pressure on islamic state. for mr. obama as he assured americans the government is doing it -- all it can. in the bears ready to pounce the new year? we speak to one analyst who says yes. scarlet: year end you -- deals are driving november car sales. about to run out of gas? first, julie hyman. julie: volume is lower on the
last trading day before they've giving. yes, the stocks are in the green but not huge gains. the nasdaq doing the best of the three major averages. the earnings season is in its last dying throes if you will appear we have companies that have come out with earnings. an interesting situation here. coming out and giving a disappointing share. hewlett-packard enterprise also coming out with a forecast but the tenor of the commentary is a little more positive. these two companies still reported as a combined entity. out extrapolation to figure what was going on at each. and dear is out with surprising results. the company's earnings are falling but not as much as
analysts were anticipating. prices have continued to decline. the company said sales will continue to be weak in 2016 but that it will fare better than in prior downturns. alix: that is a surprise. a slew of economic data out today, a lot of it modeling in the middle of expectations. did the markets move on this? we have seen some movements. one thing i want to point out is what we're seeing in the spread between the 10 year and the two year. it is now the smallest and's back in february and it was like this has to do with the fed's preferred measure of inflation. it was smaller than anticipated and this gives credence to the idea the fed will indeed be very gradual. the interest rate increases, we also had blackrock coming out and seeing monetary policy even
after the fed begins to raise rates and pimco coming out and saying the u.s. market is now pretty well prepared for interest rate increases. finally a quick check on the euro as well. earlier we had seen a substantial weakness falling. it has been coming back and little bit here, but also all of this has to do with economic data as well as the inflation commentary coming out. if you look at u.s. stock indexes, they're holding at three-week highs as investors prepare for the thanksgiving holiday. alix: joining us now is david at j.p. morgan asset managements. when you look at the asset classes, which one had not yet placed in a december rate hike? david: obviously, there are a couple of weeks before the fed
meets. corporate profit data has not been spectacular. a baduity markets has news is good news behavior to it where they want the -- the continued liquidity but the reactions are much smaller than what we saw a couple of years ago. i think the equity market is getting there. hopefully everybody will be on board. scarlet: the nasdaq doing fairly well. it is not clear we will get major up or down movement. market looksthe like, this ambivalence? david: in part of it, the bull market is mature. you would expect it to be muted. consider isece to profit growth. when you buy a share of stock, you're paying for a share of cash flows. if they are not materializing, it makes it difficult to continue to pay more more for stocks. with underlying economic growth moderate, negative territory, a flat year for the s&p, it is
relatively in line for fundamentals. scarlet: the earnings has come down a little bit. david: exactly. after a flat 2015, we expect moderate profit growth in 2016, somewhere around 5%, in line with the trend. a two dividend yield on top of that, still high returns on u.s. equities going forward. stymied earnings in the u.s. is the stronger dollar as well as oil. we have seen so much money flowing to the dollar. it builds up into anticipation of a rate hike. what is your outlook for the dollar as the fed prepares to hike? david: if you look at the past five times the fed ike has raised, in 80's, it depreciated after the hike. the dollar per share before they hike and then sold off after they made the first move to what we are now is a little bit of remark and sell the news. the difference is monetary
policy around the world is still extremely easy. there is downward pressure on the euro, downward pressure on the end. be determined. the path of least resistance for the dollar is up but hopefully not, we will see the same types of games we saw the end of 2014, making companies better able to generate profits. scarlet: we have seen geopolitical risks take things down a little bit, but it did not really knock the wind out of any of the markets. what is the best safe haven with the most appropriate? treasuries still make a lot of sense. the dollars in u.s. treasuries, they are risk-free assets in the traditional and what is important, particularly as it pertains to fix income is with the fed getting ready to raise rates, where are some other places in the world where you can get the same level of risk with it -- a more common native central bank, thinking about the particular -- the longer maturity balance. in negatived yields, but finding those assets where there is still downward
pressure in interest rates, to us, it makes a lot of sense. lot ofhere seems to be a chatter out of what is the real interest rate, the longer equilibrium rate. where is the biggest risk? people are not taking inflation seriously. a lot of the energy effects, depressing over the past 12 months, have been off in the past december. the moderate rise of gasoline prices or even if they stay where they are, as the euro rear per energy effects rolloff come inflation will move to percent. inflation could rise a little bit faster than a lot of people are but his -- anticipating, causing the fed to hike rates faster than they anticipated. scarlet: the structure changes next year. david: exactly. $50 per barrel versus $60 per barrel a year ago. thank you so much can we
really appreciate it. david loved the let's. today,that report expectations grind a little higher versus following the last couple of months. that is also interesting to notice. scarlet: still ahead, the u.s. car market is at a peak right fromith them up 17 units -- on an annual basis. that discussion is next. ♪
take a look at the annual sales rate. 17 million units. a huge recovery from 2009, when we were below 10 million. profitability has been really low, much better than the last cycle. how much more juice can we squeeze out? scarlet: one thing we point out is china has driven this to a large extent overall auto sales. in the united states, the people that ability here is something people tend to overlook. one thing that was pointed out is financing played a major role here. wider credit availability, lease terms are also longer. is six or seven years at what that does is pull forward demand. people hold onto their cars longer and they do not need a new car during that time. months or used vehicles lower than that. this is a concern. the industry needs people to
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welcome. laura: thank you. president obama made a statement on the nation's capital man security posture heading into -- leading his national security team in the room. president obama: i want the american people to know that we are taking every possible step to keep our homeland safe. said therepresident is no specific and credible intelligence about their spot in the u.s. intelligence at this time. he said if there were to be and credible threat, the public would be informed. the president also said americans should go about their usual thanksgiving activities. someghanistan, they said of the most closely involved in the attacks on half black been suspended. senator john did not reveal a name or how many people have been temporarily removed from their jobs. were killed people
in last month passes a tasker police armed with automatic weapons guarded schools in the belgian capital as they reopened for the first time since emergency measures were imposed. running again after a four-day shutdown. frenchle, the belgium authorities continued the hunt for two suspect believed to be directly linked to the terror attacks. theunited nations says planet is halfway there to dangerous levels of global warming. in a new report, the u.n. said the average temperature for 2016 will beat last year's record. the average temperature for this year will be about one degree above the benchmark temperature and scientist say after a two degree increase, climate change could become catastrophic. a look at our first word news right now. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. from the first word desk, i am laura keller. scarlet: thank you so much.
john kerry just spoke, urging calm and dialogue after -- a russian jet was shot down. russia's foreign minister said it was an unpremeditated act by turkey. pressure --h president said -- urged peace and dialogue and community. >> no expects us to be silent and nonreactive to the constant violation of our border security. to eight hands of the right sovereignty and our rights. we definitely do not want to escalate the incident. the french president hollande will travel to moscow tomorrow in the battle against , despitetate differences over syria's future leadership. earlier, bloomberg markets spoke in theretired admiral current dean of the fletcher
school at tufts university. >> i don't think we will see a significant flare up in levels of combat and i don't think turkey and russia will go to work. i don't think this incident will particularly change the course of what is going on in syria. is it dangerous? yes. does it indicate an extremely fractious and difficult demand for battle space over syria, absolutely. these kinds of incidents occur from time to time. in 2012, turkey had a jet of theirs, a fighter plane that was shot down by syrian air defenses. these kinds of things happen. folks in general are trying to take the tension out of it and they will succeed. i do not see a big flareup. i know you have given thoughts on the war on isis and the attacks in paris have inspired the french at the very least to respond in force. how will this play out? >> what i think we will hear and
see in the days ahead, as president hollande in france clears the tour, is a clear coalition effort against the islamic state. you will find, i think, a greater emphasis on putting more boots on the ground in order to amp up the aviation campaign to pick and find targets, more special for -- special forces, more sharing of intelligence, and more cyber. i think those will be what we will see going forward. i think the boots will be a combination, probably 15 to 20,000 u.s. and allied boots. let's not forget we already have 3000 boots on the ground. our european allies have over 1000. i think we will have to raise that to 10 to 15,000. i do not predict 100,000 or 150,000, which is what we had in iraq and afghanistan. the majority of the boots will come from the kurds, who have
100,000 fighters, from iraqi security forces who have 75,000 fighters, and per hacked over time, from turkey and jordan. large standing land armies. alix: that was animal -- admiral james. joining us now for more on this complicated and tense situation, sam one unit. what is your read on the situation now? >> i agree you will not see world war iii break out over this, but what happened yesterday is the first time the nato jet shot down a russian jet , since 1952 during the korean war. triggered that in the market yesterday. as the general said, it will not trigger reactions because neither side wants to see escalation. they are busy dealing with the islamic state and terrorism in the war in syria.
i do not think there will be a big flare in the eu backed by the u.s. on russia by this. what this makes more complicated is, you know, the exacerbated situation in syria. this definitely does not help or add in any way to the diplomatic efforts going on in vienna to try to find some kind of cease-fire or a peaceful end to the war now in its fifth year. it will only get more complicated. do you think the back room conversation was like when this went down? what was president obama doing and putin said, you cannot do this and merkel calling and saying you cannot escalate this. what is the background chatter? classic you're talking about western european leaders with president obama, one can only guess. much this is what they wanted to avoid. russia has all the sudden created its own allied with iran to protect president bashar
.l-assad iraq is about three times the size of new york state. you have that small a space in all these countries going in and carrying out airstrikes left and right. when you have that much space, there are bound to be confliction's. help that does not they probably thought this is not helping any of our troubles right now. turkey says to us russia keeps on interfering. that is probably what they are concerned about the most. that is my guess. alix: where does this leave nato? thenteresting to me, after shooting down happened, the turkish government came out and said we going to the security ouncil and the u.n.
at the end of the day, the letter that the turkish government sent to the u.n. kind why it shot down the russian plane. that was basically it. when the russian ambassador did, it's about whether they would seek action, he was very noncommittal and we will see have -- how it plays out. first, i think we need to see what the french president does when he goes to moscow. he does not have an easy job tomorrow. whatnk he was hoping that happened in paris weeks ago, that those attacks would create a new momentum to finally end .he war now with this crisis, i have a feeling that might not because they need to quell the escalation that happened over the past 24 hours. alix: you already downgraded from coalition to collaboration.
we appreciate it. tune in today to "with all due respect." karl rove, we will find out his take on donald trump and jeb bush and so much more. scarlet: coming up, an interesting debate on the central bank this week. some officials say the latest data shows no need for further easing. the biggest loser among retailers in the s&p 500 and we will ask the ceo why the performance has been so challenging. up at the top of the hour, ceo martin will be joining us to talk about 5000%. what is next. a all's still ok and is
scarlet: your watching bloomberg. i am scarlet fu. here is what we are watching. the european central bank looks to closely watch inflation. the latest outlook from the ecv -- ecb vice president. has ledprobe in brazil to the arrest of a billionaire banker. scarlet: macy's is looking toward china. the plans to grab the market. first, let's start in europe where the ecb vice president spoke exclusively to bloomberg. he maintains there is no objective for the euro's exchange rate. we don't have any objective regarding the exchange rate. directn you do, no relation with the exchange rate. that is very clear to what we're doing is because we have inflation which is very low and you want to ensure price
stability in both directions. all the rest is up to the to our to react policies, which are strictly determined by domestic factors. billionaireslian under arrest in the nation's and corruption investigation. was turned into latin america's's independent investment bank. they are investigating the pay to play scheme involving builders and a government owned oil company. macy's, known primarily for brick-and-mortar locations in the u.s. has been pushing its global presence it to china. the ceo explains the cautious rollout in the country. >> it is all brand-new for us and we are not marketing the did aggressively because we not want to overpromise. you get a big demand spike in china, you can be out of inventory in a hurry. the worst commodities selloff in a generation may not end for a while according to black rock. the world's's largest money
manager protects the market is heading lower and the demand is weakening especially in commodities intensive economies like china. now for us to provide context in the background in topics of interest. today's black that -- topic is black friday. the biggest shopping day of the year in the u.s.. the entire weekend accounts for 10 or 15% of all holiday sales. appeal forack friday consumers who would rather shop at a few swipes and clicks. retailers are pulling out all the stops. they may be too late because more than half of consumers say they are relying less on black friday to make holiday purchases. retail sales over thanksgiving fell about 11% even as overall spending from november to december increased. background, no one can pinpoint how the day got its name. it is the myth that it is the day retailers turn profitable
for the year. most are in the black long before the first friday of november. over the years, black friday has been earlier with stores opening at midnight and thanks giving day. online, sales slipped forward as well. in 2005, cyber monday was born to describe a surge in the web purchases on the first is this day after the holiday. retailers put more than two green dollars in online sales in the u.s. the tension rises. retailers caught between a rock and a hard place. some say they have no choice and they want to stake a claim to shoppers wallets while others refusal tod their open on thanksgiving as a stand against rampant consumerism and with the increase in choices and a trend toward shopping on experiences rather than stuff, lining up for deals on black friday are fading for good -- fading to greg. stories, visit
bloomberg.com and we will have more black friday shopping in moments and more with the macy's ceo. find out why shares have had such a rough ride this year. for now, i want to go to abigail doolittle live from the nasdaq and she has the latest on two of today's's top performance starting with tesla. >> that is right, sharply higher after credit suisse saying in early january volume report should ease investor concerns around the fourth quarter as it pertains to volumes and model s rants. in addition, an analyst thinks 2016 could be much better than investors are thinking with a, nation of strong volume growth and expense reduction. he says four dollars per share in 2016 is reasonable, more than double consensus. another stock trading much higher. this stock is up amid a lot of positive commentary. this is in the wake of a much better than expected fiscal
fourth-quarter reported last week. stocks traded down more than 20% . the current spotlight is on the -- growth driver for the stock. it has been a tough year for them, something that left shares trading at a significant discount to peers and something that could be attracting new investors. jinx again. thanks so much. scarlet: here's a look at how major averages are trading before this thing's. gains all around. ♪
scarlet: it is pretty but kind of cold today. i'm scarlet fu. time now for the bloomberg business flash, a look at the biggest stories in the news right now. a step toward ending a long-run labor dispute, the union called off a strike plan for tomorrow and friday. it has moved in the direction of workers on pensions. scarlet: the parent of united pilots 13% raise next year. a raise that size would make you knighted pilots right around the highest paid in the u.s. airline industry. it has an agreement in principle with the pilots union. alix: feeders are looking to boost revenue anyway they can when the new star wars movie comes out next month. they will sell posters and even cocktails. one reason theaters will pay a higher than normal percentage for each ticket to disney. scarlet: you can always get more
news on star wars and other business news at lumber.com. what is the new yoda rita? and how would you ask for one at the concession stand? drink me -- i don't know. yoda speak was really good last time. that is why asked you. black friday is less than 48 hours away. yesterday's consumer confidence data was the weakest in more than a year and options like amazon same-day delivery drive more and more customers away from brick-and-mortar stores as they shop online. alix: matt broke down the macy's sales trajectory on the big screen and was joined by the "bloomberg " earlier this morning with stephanie ruhle. matt: to be fair, over the last five years, overturn has
challenged the s&p by 5% but you have got here a breakaway gap. in technical terms, it could mean a turnaround. you have got managers and customers but you have got your shareholders. they are the owners and you are the agent of the shareholder what do you do about this? stephanie: your fourth customer. >> what -- let me back up. out the formed by 400%. macy's has had a total earnings per share of 5.2%. that is our track record and it is crystal clear. matt: i see macy's over the last five years, total return if you could wring it back up, beating the s&p by 40%. this is the difference in total return, the white line being macy's and the orange line being s&p. stephanie: it looks good to me. loud andtell you clear, maybe it is the start point we are talking about but i promise you shareholders have been rewarded handsomely by
being a macy's shareholder and they will again. as i said yesterday, when i was out there talking to investors, i believe not only our sweaters are on sale, but stock prices at this point in time for it we have consistently delivered. when we have had challenges, this company and this team has consistently come back and outperformed the market place. we are going against stronger numbers than our competitors and there is something to that when you have a strong business building on top of that, is much more difficult than when you have had a depreciated [indiscernible] matt: what has happened over the last couple of months that this is a really pronounced turnaround in the price, that u.s. retail customers? is that the global picture? what is the problem? stephanie: warm weather. a couple ofpicked individual companies but frankly, the market response to
retail has been very challenging. on a broader retail look, there is no question everybody has been significantly impacted on their stock price. that is obvious. there is no question about it. this has been one of the warmest winters we have all experienced. by market and by individual locations, we can talk about 20 or 30 degree warmer temperatures from october all the way through november. international tourism, not everybody, some of these other stores you mentioned, none of these stores have an international tour. if you do, the dollar has an impact on that. note rest and about it. the strength of the dollar makes it less valuable pair when the brazilians are trying to chapter, it is very clear, you can see that location and tracking by currency by individual store. postings are impacting us. they won't impact us forever. has amebody who short-term focus, i totally get it and i totally understand the impact you are seeing here. but if you believe in the history of what we have been
able to a come bush when our backs have been against the wall, you bet on this company. scarlet: that was our interview with the macy's ceo on bloomberg this morning. part of the issue is you are seeing a lot of industries having very high inventory and they have to manage that. alix: especially apparel companies. you can take a look at inventory to sales ratios and the buildup we have seen in the last few months. you basic he had a lot of inventory restocking in anticipation of stronger demand and that kind of demand has not materialized as well. in order to make room for the new stuff, you pass them onto tj maxx. it hurts the guys in the middle. and there is a lot of spending on things that are not close, experiences and on media as well. take a look inside the bloomberg terminal. you look inside the stoxx, netflix, theyon,
have clearly outperformed the s&p 500. over the past month, stocks up 7.4%. ones&p 500 up marginally by third of 1%. that is the case if you stretch it out for the past year. one and a quarter percent. stocks up 66%. alix: that speaks to the power of amazon. coming up, pharma's bad boy is making headlines from drug pricing productions to his new biotech bet. we will talk to him next. ♪
markets. from bloomberg world headquarters in new york, alix: here is what we are watching -- consumers are spending less and setting more even as wages accelerate. its not what retailers want to hear into the holiday shopping season. the ceo of a pharmaceutical company will join us. alix: target has been planning for black friday and a lot is riding on it. scarlet: we need to go over to the markets desk and julie hyman. we have so much data, did we get a direction? julie: we didn't because the data itself did not have much direction.
it was mixed with personal spending that was lower than estimated as well as a measure of inflation. we had a business spending as part of the durable goods report on business equipment that was better than estimated and consumer confidence was down and new ham sales were up just a new home sales were up. -- new home sales were up. health care is the best performing group. pfizer and allergan are rebounding. consumer discretionary stocks are doing relatively well today. on the bottom of the pack, we have utilities shares. if you look at the individual movers within utilities, you've got energy which is leaving some of death leading some of the declines in that group area we were looking for the reason behind us because we are not seeing a meaningful bump up and interest rates. report that said electricity output is down 11.9% one of thehat may be
things weighing on utility shares. alix: what about oil? all the world oil is getting dumped in the u.s.? julie: it seems like inventories are continuing to climb. they climbed less than estimated but still up. climbing for the second week in a low and oil came off the lows after the inventories report but still lower on the session by about 1/4 of 1% on production and inventory. over the past year, here are the inventories that continue to climb. the pace of increases has moderated to some extent. here you have production down here and this has been trending lower for two straight weeks. those lines i guess need to go more down on the production side and more down on the inventory
side. that would be better for the prices. alix: thank you so much. scarlet: let's check in on the first word news. a: president obama wants to reassure the american people that the u.s. is doing everything it can to defeat the islamic state. made a statement for the white house a short time ago. >> in the event of a specific, credible threat, the public will be informed. foro think it's useful people as they go about their business to be vigilant. if you see something suspicious, say something. that is always helpful. otherwise, american should go about their usual thanksgiving weekend activities. laura: he spoke after a briefing with his national security team. he has also said law enforcement and intelligence officials are working around the clock to keep our country safe. belgium has a new terror
suspects on its radar. they're searching for a man seen driving a car between brussels and paris with one of the suspected organizers of the paris attacks. they were spotted two days before the attacks. rush of may go to the un security council over the downing of that russian workplan. that is from the russian foreign minister who says the turkish decision to shut down the plane may have been planned. a questionthere is about turkey defending the syrian border to protect syrian rebels. israel is demanding an end to violence by palestinians before it improves conditions in the west bank. that follows a meeting between the israeli prime minister and secretary of state john kerry. theamin netanyahu blames palestinian leaders for the daily attacks. if they will allow palestinians
to build infrastructure, israel must build more, he says. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. alix: thank you so much. martin shkreli was dubbed the most hated man in america after it increase the price of his drug used to treat hiv. he said he would take some action. to lowere have agreed the price to something that is more affordable. they wille says prices with hospitals. now asshkreli is with us well as drew armstrong. turing says discounts with hospitals could reach as much as 50%. this is after a 5000% price
increase. we are still talking about a very expensive drug. how does this potential discount make the drug more affordable? >> it has always been affordable. scarlet: after the 5000% increase? >> yes. scarlet: can you explain it again? >> n i gave interviews on thiso, subject. it's available to every customer that needs it. alix: what you feel there is so much outcry? why did you feel you got so much heat? it started the drug pricing conversation washington as well. >> i think possible customers needed a lower price. the customers who can get the product conformity's debt from pharmacies have no issues. theartin spoke to university in atlanta. they said last year, before you guys release the drug, they were
spending $18,000 per year to stock 14 bottles which is the volume they need. this is for acute cases. they said they budgeted for this year for over $1 million because the price increased. that will come down with some of the discounts you will be offering. from talking to other hospitals, it seems these guys were already negotiating some discounts from the list price through those purchasers or at their supply power. who will end up getting these discounts? how much will they be? there is information the press release and we tried to get information yesterday and were not able to about a reduction in the list price that would not translate into a benefit to patients. i'm struggling to understand who will get these discounts or if this is going to be hospitals attention -- attending to negotiate. >> high-volume hospitals will be able to get discounts of up to 50%. that's the burden of the high cost. >> what about other hospitals?
maybe they only see a handful of patients a year? disease soery rare to stock a 100 count bottle's expenses and we had made a 30 count bottle which will be more affordable. less pills, less price. that will be helpful to these patients. alix: how many hospitals have you been talking to? we are trying to focus on the top 800 hospitals in the country and will go to the next year doing that. scarlet: you have said no patient needing this drug would be denied access. how can you ensure that? >> the same way every other drug company does, some of it is given away for one dollar. i have said that many times. >> you talk about the patient access programs and physician to give you credit for some of the things you have been doing. it begs the question -- are commercial payers get this?
are people who need this getting reimbursed and will they have access to these discounts or is it just so hospitals can suck more easily? >> i'm not sure he understand your question. the goal of our system is that no patient is left behind. 60% of our drugs are given away for one dollars. . there are other safety nets and is further price reduction will help even more for hospitals who have difficulty stocking high volumes. >> when you're dealing with the patient paying premiums and their insurance company has to pay hundreds of thousands of dollars for this drug, that affects what that patient another patients will pay. >> you're dead wrong, it is one of the strongest dishes one of the smallest drugs in the pharmaceutical >> market. it has an effect on what patients pay. >> it's a $500 billion system. it does not affect the system at all. >> because it's such a small drug, you guys can do this and who cares? is just icing on the cake?
>> you have to take into perspective the reality of the situation. it sounds like you are distorting it. this drug is so tiny. >> what if everybody did what you are doing now? >> that's not possible. scarlet: what is the most effective way of keeping patients'out-of-pocket fences low? >> insurance. scarlet: the way it is now? co-paylutely, it renders at a limited price and the affordable care act renders co-pays adequately low prices. something became a in the news today -- you and other investors bought a 70% stake incalabosos which i been left for dragon the drugs weren't working and people did not think there was promised. what did you see in a company that other people were missing question mark >> we acquired a majority of cal which is a
publicobios glee traded company. the trials are starting right now for their drug and we are excited and hopefully the patient to have this terrible, fatal disease will get better. we will know in the first or second quarter if the trial works. alix: what do you feel you saw that people didn't. it seems they have been struggling for a while and there many different ways you could have invested in the company. you might have waited until they went into bankruptcy. why did you go about it in this way? >> we could not get the company to call us back which was unusual. we see this in corporate america. there's a lot of irresponsibility especially in health care management teams in corporate america so he bought the company on the open market ourselves. we named ourselves the new management and the company now has the cash to do this clinical trial could -- that could be his life-saving drug for cancer patients. the stock market is innovation. givenare drugs that were
away for $1 million and sold for $20 billion a handful of years later. this happens all the time and i think it will be eight promising drug. scarlet: you plan to operate these as separate companies. >> that's right. 2 are there no synergies down the road. >> maybe down the road but we yearocused on three survival drugs which are 20%. there is no fda drug like what we are looking for. >> you have a 70% stake in the company? are you trading additionally or acquiring more shares question ?ark > >> kenny trading on that stock would have to be revealed in 24 hours a you will know. there is section 16 be of the sec act that you cannot sell a stock within six months after acquiring more than a 10% stake without diebold in profits.
without divulging profits. alix: we saw of problems of ion trait. scarlet: how could shorts have driven up the share price question mark >> i don't pay attention to the stock market. we have to make sure this drug gets developed. cmmml has a lot of promise. glaxosmithkline bought a similar drug. this and thereuy is more cash in the company than the price i paid. i'm looking forward to the future of this medicine. alix: it seems like the chatter after the filing came out is that this could be a reverse merger. >> i don't see a reason or need to reverse merge turing. very few people have focused on is drug and no one's asked me why i did this. why do you think it's worth so much more than what you pay for it? it's not a stock market game or
trick. this is about dying patients in a drug that can work for those patients.0 turing is doing great and can ipo anytime it wants. we are focused on creating value. kalabios, i expect we can announce an acquisition for them to acquire new product by the end of this year. . we are in talks with three separate acquisitions that can create more value. scarlet: would this be drugs for common or rare diseases? >> probably rare diseases. 2 of them are not fda approved and one is. they are progressing rapidly in could be great fits. scarlet: when it comes to the commercial prospects of a drug, way skill not an advantage? >> it is but at the end of the day, these are two separate companies. i assume that's what you're referring to. scarlet: you're going after medicines that treat rare diseases. >> yeah, we know other companies have done remarkably well with rare disease drugs because they are very expensive and rarely used.
these are not drugs that make up the bulk of pharmaceutical revenue but they can still be blockbusters and they are important to the patients who need these medicines have to be high price for there is not enough volume to make up a revenue. there is no interest in drug makers to sell these drugs for a handful of people. the folks who previously owned this drug, what did they fail to see? why did it fail so badly with them? >> that's a great question. i think it's credibility and trustworthiness. they tried and other diseases and they failed in the third attempt, if you ask invested to find another program, it will not be received well. when we came in with fresh n fresh ideas and said we support this and investors in my last two companies know my track record which is good, i think we will be successful. alix: you mentioned other potential and mende deals?
-- and many deals? m&a deals. >> r&d is the greatest return. i am not a one trick pony. raising drug prices of great way to make returns for investors but a better way is to develop novel drugs for very sick patients that don't have any choices and that's what we do. up,let: just to wrap things for the democratic presidential candidate, they are looking at a controversial pricing of drugs. what would you say to them and what don't they understand? >> they understand that people like me have to take huge risks. we need another $100 million that i will give to them so we can develop certain drugs. hope soithcmml have no the system these the ability to people might 3000 cost us and it costs $100,000 for me to want to risk that money or i would invest in
something else. there has to be an incentive for drugmakers to do this expensive research. otherwise, i would not have rescued the company. alix: thank you so much. we've got more coming up on "bloomberg markets." m b graduates, consulting is the industry to be in but not for the long haul. we will extend wide. alix: the latest eco-data has consumer spending rising very little but how do these numbers factor into the rate decision? scarlet: u.s. airlines is betting that oil prices will not rally anytime soon and they bought hundreds of millions on hedges because of the crash in crude oil. ♪
alix: welcome back. scarlet: let's go to our markets desk with julie hyman. edison which has been a volatile stock is volatile once again today. it's falling after it was downgraded to a cell at ubs. the shares are up by 14%. it has been a pretty dismal year for this company. some of the hedge funds that have been involved either cut their stakes entirely or trimmed them. say that theat ubs changes they have made, it moved the cfo of its company to be the ceo of one is its affiliated companies. some of these moves suggest that the sun edison liquidity problems may be worse than the market is pricing in. in terms of the structure of the company, there have been a lot of questions. sun edison is a company that makes solar component.
it then builds solar factories and has placed them into other affiliate companies. you look atobal and the shares and terraform power and the stocks are declining today. it divides and sells assets from these affiliates. that's one of the reasons why there has been questions. in terms of the volatility, one way you can measure volatility is through beta. usingeqs ofh the companies and the russell 2000 that have the highest beta, the highest they'll attila t, versus the underlying index. sun edison has had base hit that is the highest. it is essentially two times is volatile as the russell 2000. these are interesting movements the stock has seen. an addition, we have seen a short interest climb to some
extent on the stock. it's the short interest ratio as a percentage of the average trading volume has fallen but the absolute short interest which is on the bottom chart has as peopled climbed have made similar commentary to are ubs says today and they betting the stock will continue to go down. scarlet: thank you so much. up next, these school students going to consulting after graduation are not in it for the long-haul haul sort of they go next? ♪3
are most likely who can move on from a few years later. they flock to consulting and stay for a while and then they move on to other industries. more than talled thousand 700 alumni of full-time mba programs. this is what they showed -- as an industry of people is switched careers 6-8 years after mba. consulting is the most with retail coming in second but overall, it beats it by far. scarlet: where do these people end up going? the hot industry right now is technology. they flock to technology and they also flock to financial services. the thing is, consulting is popular but for the short-term. it's a good way to use as a transition from your previous industry to a new industry. you get to try different industries with different companies. you don't need to be a next for going in. it might be better off not to know a whole lot. then you can make changes easily. there are no sacred cows.
alix: it's not a bad thing necessarily to leave and go somewhere else. then it gives them contact into other industries and potential business. it's not like loyalty or leaving your company, it actually helps. 2 former consultants leading banks, james gorman and the ceo of credit suisse started off at mckinsey and both have done a lot to change the bank around. they have that mindset. had, today's eco-data painting a mixed picture and we will tell you how it impacts what the fed may be thinking. ♪
you, president obama made a statement on the nation's homeland security posture going into the holiday season. he says there are no specific credible threats against the u.s. right now. people tothe american know entering the holidays that the combined resources of our military, our intelligence, and our homeland security agencies are on the case. they are vigilant, relentless, and effective. a: he spoke after briefing with his national security team and urged americans to not hesitate to travel or attend public events this weekend. nato is urging de-escalation after turkey shut down that russian warplane. the military alliances calling for further discussion between turkey and russia. the turkish prime minister is downing of the jet saying moscow was warned that turkey will defend its borders. he tried to ease tension saying andia is turkey's friend
neighbor. it's day three of the french aesidents push to build coalition against the islamic state. after yesterday's meeting with president obama, he talked today with german chancellor angela merkel. she says germany is ready to strengthen its military commitment in global hotspots. less than 10 weeks before iowa past the first vote for the presidential campaign, there is a virtual tie the top of the polls. the survey shows donald trump with 25% and ted cruz a 23%. that's within the margin of error. ted cruz has backed away from statements for the last few days, he has agreed with trump on immigration and setting up a registry of american muslims. on these andore other breaking stories 24 hours a day at the new bloomberg.com. alix: thank you so much.
of eco-data is a mixed picture with consumer spending rising less than forecast in durable goods orders climbing 3%, almost twice as much as economists estimated. scarlet: how does this factor into the federal reserve rate decision month? we go to many a lap list with more. -- we go to minneapolis for more. the list is so long -- how does the fed sort out this data? what kind of picture doesn't paint of the u.s. economy? >> i think the most concerning data was personal consumption with rose only 1/ of1 one0 percent which is below expectations and pulling that annual rate below 3% which is about half of what we saw this time last year. fomc statement, the fed pointed to consumer consumption is one of the bright spots in the economy. actuala disappointing
retail sales report coupled with a disappointing consumption report this morning. it appears that officials may be overly optimistic in terms of the consumer. it's another feather in the doves cap. the other data point -- concerning among a slew of information we got this morning was that inflation number. ce was up well less than expected and we strip out food and energy, they have been blamed for the dis-inflationary trend. this time around, we strip of those out in the core was flat. we see another month of very sluggishly low prices. fed officials are confident that inflation will reverse course but all the evidence does not suggest that type of optimism as of yet. there are signs that we are seeing left off in some areas of the economy, for example wages and salaries jumped more dramatically.
you had expectations for inflation that were higher than we saw over the last few months. capital goods orders were also at a three month high. these would counter your point. >> i think we were seeing some signs of improvement. nice jumpncome was a and wages saw a nice increase in october. that is against the backdrop of note change the month prior. we are seeing a lot of volatility in terms of wages on basis. annual we are talking about 4.5% which is still positive at about one percentage point below where we were this time last year. it is that slow decline or that loss of momentum that the fed will be concerned about. even when we look at business investment like durable goods which we typically strip out, defense and aircraft orders, to get the underlying component, it bump ince upward
october but on an annual basis, you are talking 4/10 of 1% so business is clearly hesitant to invest in any market degree in terms of equipment or structure or full-time high wage employees. it seems to be that the economy is taking steps in the right direction but for the fed gearing up to raise raise, this is hardly the type of robust data you would expect. scarlet: it may not be robust but when you look at durable non-, the increase in defense capital goods when you back at aircraft seems to suggest that manufacturing is stabilizing. have we seen the worst of the soft patch and manufacturing? >> i don't know if we can say that. looking at the regional indicators we got earlier in the week, they have missed to the downside. i think there still is a lingering implication of a strong dollar, inventory overhang, slower demand internationally and a mystically that will continue to keep manufacturing at the lower levels. while we may not see further
decline, i think it's too early to say the manufacturing sector is on the mend. 2016 i know you have a rate hike call. the yield has come down today so there is a rotation into treasuries. does that signify that december is less likely? have you interpret that spread? >> certainly, the market is looking for december. a 70% implied probability of a rate increase in the final meeting of the year. we have seen that type of implied probability before going into the march meeting, the june meeting, the september meeting. the market seems to be chasing the fed in terms of that rhetoric of expecting a rate increase by the end of the year. all along, the fed has said they were data dependent. they anticipate the date it would be much stronger right now. remaining adheres to data dependent and watching the underlying fundamentals, we callt to maintain our
for the fed to be online with their expectation of a 2016 rate increase. if the fed is watching the calendar or feels bullied by the market, we expect the fed to raise rates in december. however, as they have said before, the pathways more important and committee members have said it may take years to get back to a new normal level. the market is accepting that language and anticipating may be 75 basis points at most on an annual basis in terms of sequential rate hikes. alix: thank you so much for joining us. keep tuning in because we will continue this conversation with doug ramsey. that is coming up at 3:00 p.m. he is not always a bear. scarlet: he's sort of bearish. coming up in the next 20 minutes, oil prices decline
after u.s. crude stockpiles rise for a ninth straight week. we will look into how the oversupply and has airlines rethinking their hedging strategy. alix: for companies like target planning from black friday, it's a year round event. we will take you inside their plan to win the friday in anza. scarlet: while target cells have been steady, j.crew is headed in the opposite direction. investor concerns are mounting. ♪
california wants full flag and to recall three liter diesel automobiles. as 45 days to assemble a recall plan on citing potential issues with vehicles dating from 2009-2015. the recall plan applies to audi and porsche. capital airways will recruit potential eyeless with no flight experience. the airline will provide its own trading under proposal waiting approval from federal regulators. candidates will have to meet u.s. requirements including 1500 hrs of flight experience to be certified as commercial airline pilot. alix: there will be more cars on u.s. highways this weekend, more than any other thanksgiving than 2007. says 47 million people travel because of cheap gas. gas is $.70 less than it was a year ago. you can always get more business
news at bloomberg.com. scarlet: let's go to the markets desk and julie hyman. julie: i will look at two stocks that are making choice for the holidays, mattel and hasbro. they have done very differently. both stocks are trading higher today but if you look over the past year, you will see very different fortunes for these companies. we have seen mattel down for the year to date while hasbro has managed to climb by about 38%. by al fell on the year wide margin as well. what's interesting is that investors still appear to be fairly negative on mattel and fairly positive on hasbro at least if you look at the short interest. despite the underperformance of mattel, the short interest in the stock continues to climb and it's now at 21% which is unusually high for a company of its size. the hasbro short interest is at
7.5%. what accounts for the big difference? we have seen the mattel sales lagging to some extent. hasbro has the lights thing -- the licensing agreement to the release of "star wars." perhaps that gives hasbro a competitive advantage. some analysts say going into the holiday season that hasbro is not that will position that perhaps mattel has been overdone. we will see what happens once the holidays are all said and done. you or maybe both of you will likely be buying some of that star wars merchandise. scarlet: this one. alix: no, no, no. thanks so much. we turn our focus to oil because over the past year, crude oil has slumped 42% in the face of a global supply glut. scarlet: earlier today, erik
schatzker spoke to daniel yergin. he asked him what he saw on a recent trip to the middle east. >> there were a couple of things that stood out. whatr one is the focus of you talked about, inventories. seeing global inventories is an overhang. signecond thing was no that there will be any reversal from this market share strategy. thirdly, what was striking to me was the focus on iran and the sense in the gulf countries of being surrounded by iran and how big bet war in yemen moves to them. there is much less talk about isis and more about what they call the new persian empire. erik: how is it that that is the case? here and in france and western europe right now, the focus is squarely on isis but it had been before. if you go further into the middle east, they are not paying attention to that problem? attention. paying
in kuwait city, they had a bomb there in a mosque that killed 50 people. there is continuing isis activity. they see iran and the context of this nuclear agreement. iran is a regional power and they feel surrounded because they see iraq as iranian satellite and they look at bahrain and has below -- and has hezbollah. they are at war in yemen not with ices in iraq or syria. there was talk a few days ago that the saudi's were prepared to cooperate with other producers in the region. it was nothing more than a blip in the market. how come? >> they have gone partway on this market share strategy. what made people think there
would be a changes we have seen a lot of people from saudi arabia and the gulf countries going to russia. when i was in kuwait the week before, the emir went to see vladimir putin and they met in tehran earlier this week at the gas exporting forum. you see saudi arabia talking about a $10 billion investment in russian agriculture. is there some deal? the middle east countries say they are willing to cut if everybody else does but the u.s. will not cut intentionally. it's doing it inadvertently. the focus is on whether russia will make any cuts and they don't see that happening. the signs are they will stick with the strategy at least for another year or so. scarlet: that was the vice chairman of ihs. alix: more on oil, u.s. airlines are betting oil prices will not rally any time soon. united, continental, delta of the latest to reduce their fuel
hedging to a six-year low. american airlines the biggest global carrier and close its last hedging position last year. does that tell us there is a bottom? scarlet: betting on higher oil prices has been costly for these airlines. look at the losses over the past three quarters. almost $2 billion for delta. million for united. $326 million for southwest. and set the practice the pace for a lot of these airlines to do hedging when oil prices were on the rise. alix: the ideas if you lock in the prices now, if prices rise, you will be getting fuel for cheaper. if they fall, you don't want to hedge because you want to take advantage of the falling oil prices. in some ways, airlines are saying oil prices will fall further. production companies are saying something different. if you look at how the
airlines are preparing your hedges next year, delta is preparing for 5% versus 40% last year. hedged versus17% 30 5% last year. southwest has kept its hedges in line with last year. they view it as catastrophic insurance. flipside, u.s. producers, only seven out of 23 are hedged at maybe 50%. that is very different from last year. they wind up thinking that oil prices could go higher. if you hedge, you will go lower and they are going to risk their cash flow because they think prices will go higher. scarlet: they have a front row seat to all of this. as we go to break, we want to tell you that french president francois hollande and angela merkel are speaking right now and had a meeting in paris today. these are live pictures. the twoe leaders of
alix: welcome back. scarlet: the biggest day in u.s. retail is rapidly approaching. we are talking about black friday. as consumers get there while it's ready, the stores are putting months of planning into action. shannon pettypiece joins us with how target has been preparing for the big day. when does it start? what does it take for black friday to happen? >> it takes a year of planning for one day of shopping. employeesabout 300 either full-time or part-time who spend their full-year planning for black friday.
true, i talked to one employee the other day at a store in long island about what is involved. >> i start planning for black friday last black friday. looking at what worked well and didn't work well and looking at how we took care of the team and what were the hot sellers and maybe what didn't sell is great. he will be involved in everything from how many people they hire and where they will put the tvs in the stores, how you get the employees and the crowd motivated and excited. for them, it is more than just sales. sometimes it's the biggest sales day but sometimes it's not. sometimes it's close to do christmas but it's about a branding image experience. target wants their loyal customers to come out and have a great time and associate a great feeling with target on that day. scarlet: part of that is differentiating themselves from rivals. what is a company like target due to set the tone for itself? >> some of their rivals have to
hold back on black friday. rei and staples said they will not open on thanksgiving. rei said they wanted customers to take a hike that day. there has been talk about whether black friday is as big as it always was. for target and walmart, it is as big as ever. they are expecting record numbers of turnout to come to their stores. the target strategy is little different. they say they are starting to spread out the deals. some people took that to mean that black friday is not that big a deal. target says it's about getting people in on black friday and then getting them to come back two days later to get the new deal that's being offered. they are trying alix: to drive more and more people to the store. alix:this brings us to cyber money were amazon dominates. it's really amazon that striving if so how does mobile wind up playing in for these guys? >> is huge for target.
they expect a record number of visitors to come for mobile. they are doing things like on black friday, there is thanksgiving eve and they put a map of the store on the mobile app to draw people into the mobile app. you can go there and find where in the story you want to go. these are things to drive this. in thes the big elephant room which is amazon and online. why do people go to us during black friday we can wait and get as good or better deals on cyber monday? the retailers say it's about the experience and people like going to the stores and people like that event. it's a family event and that's what retail is trying to become, more of an experience. alix: when i did black friday one time i had off from work, i was online. i went to the store and set in front of the computer to get the best deal. websites crashed and it did not work well. it was more challenging.
they have to compete with so much more than just actual costs. it's the whole experience online. >> maybe this the reason people don't want to come to the store. they might not want the hassle they will not sell out in one second. scarlet: how do they enhance the experience for people? people outside the u.s. think about the stampedes on black friday and the violence that occurs on a day where everyone needs to get everything all at once. >> i have never gotten in a line at 3:00 a.m. to wait for a tv deal. store ins at a target long island yesterday, i talked to a woman who was the line ambassador whose job is to keep people motivated, to cheer them on. they do the wave, they hand out coffee, hot chocolate and treats to keep people in line and motivated and happy and maybe keep them cqalm and collected.
target said security planning is a big thing. they have a command center at headquarters that monitors this. it plans they will have review i the police. death by the police. -- by the police. scarlet: they need to fire t-shirts into the crowd. everyone wants freebies. alix: thank you so much. lord skadoming up, wski at 4:00 p.m. talking russia-turkey relations. alix: karl rove will join us to discuss the state of the republican presidential race. ♪
from bloomberg world headquarters, good afternoon. here is what we are watching at this hour. we start with the markets. stocks edging higher in a quiet day of trading and of the things giving holiday. -- i had of the -- ahead of the thanksgiving holiday. a ho-hum shopping season and huge debt load hitting the retailer pretty hard. petrobras scandal hitting a high profile target. the corruption probe engulfed the country's political scene. we kick things up on this wednesday with a look at the markets desk where julie hyman has the latest. julie: we do have trading volume down.