agreement cannot be reached. goldman sachs has cut its oil forecast. pushing brent below $50 a barrel next year. the potential for crude to drop as low as $20 a barrel. china is taking big steps to make the yuan more of an international currency could the country opened its foreign the mystic exchange market to central banks. imf whoengle's spoke to says china opening up is a positive sign. >> it is the way to move. it is important to the market base. gradually. the interestsure is market-based. >> does the remedy need to be floatable? >> not necessarily. jonathan: the hong kong trade of yuan is up. to nick, let's get out waters. , the question remains. what are the government up to the -- what is the government up to? --: the shark is nick: the shark is in the water. when the government intervenes, it sends a message saying be. watch where you are swimming. establish a more freely convertible yuan, given the market control here it -- control. that pushes down the onshore yuan. interpretive as a way to push speculators out. to push up short positions. if the government more control ov

oil from goldman sachs. >> we have the man behind it. if it happens it could be a nightmare for the entire oil industry from north dakota to texas to venezuela to russia. one year ago, by the way, that's when oil's descent began. crude down 50% in just a year. >>> what are you going to be doing with your money on thursday next week at 2:01 p.m. eastern? we'll help you make some decisions whether the make makes a move or not. >>> doctors are likely to change their procedures after hearing this major news on blood pressure. everybody needs to pay attention. >>> a lot to do today. we'll start with a check on oil trading because oil is down by 3%. one reason might be a note from goldman sachs that came out this morning suggesting that oil could -- not will, but could fall as low as $20 per barrel saying, "the oil market is even more oversupplied than we had expected and the potential for oil prices to fall to such levels which we estimate near $20 a barrel is becoming greater as oil storage continues to fill." powerful note. just to be clear, guys, goldman sachs not saying this will hap

oil? goldman sachs has possibly $20. others liars think it is drying up. joe: europe's yesterday crisis this refugee crisis. -- europe's refugee crisis. call dateher pla overall.- calm day hud rising streak in the s&p. really a wait and see kind of vibe. joe: the index is still very , but this-- elevated has been a much quieter week. we have not had the swings. america says that the fed has never raised rates when the vix is over 25. volatility is key when the fed looks at it. market volatility is going to be the key issue. we will talk about it a lot over the next year days. i want to take a look at the goldman sachs financial condition index. stockhis does is take prices, credit spreads, and overall we are right around a five-year high. goldman sachs had no doubt today saying that because this is so high, it has done the fence tightening for it. 400as actually risen by s.sis point joe: one view is that it has done with his work for it, is that they should not go while conditions are being tightened. but if the market is already pricing and rate hikes they can do one for free. m

. this is goldman sachs came out today cutting its price forecast and crude could go below $20 a barrel in the near term. joining me from philadelphia is orckpresident of the sch group. thanks for joining us. they say $20 will is not the base case scenario, but it turns out the global surplus and supply of oil is even greater than they initially thought. do you agree with that analysis? that goldman has put this on the bear market, it seems like we've seen the bottom of the market. about a bank that was telling us oil was going to average $100 a barrel. seven years ago to the day in 2008 said oil in 2009 would average $140 a barrel. we nearly missed that by $80 a barrel. let's take these long-term forecasts for what they are. they are nothing but guesses. let's focus on what we know right now. it seems like everyone wants to talk about supply. it's been ugly and u.s. oil. this been more than 70,000 job cuts this year alone. withthe banks get done re-determinations in the fall and the credit lines dry up, it's ugly. it's going to be murderous next year. therefore, we are looking a

sore thumb. facebook and goldman sachs. and goldman sachs reports on october 15th. that stock has been bludgeoned with the rest of the financials. i can tell you kata gorive lick i think they'll report a record quarter and the stock will trade in kind. and the sell youft has been so much that goldman sachs i think will rally off the quarter. and facebook to me has held in relatively well. i know it sold off yesterday. got it all back toad. when facebook reports on the 27th they'll too have a record quarter and see the stock north of $100. >> financials are having a hard time lately. and you would think goldman sachs would benefit from the volatility in trading across assets. >> that is the play in goldman sachs. we saw jeffries had horrendous trading and everybody is thinking that goldman sachs is much better at it than anybody else and they'll benefit from that. we'll see. it is something to look at into the fourth quarter. look at what hasn't worked in the last quarter that may work going forward. >> look, first of all, don't let dan nathan here talk about facebook. those bear c

-- a few months away from a global recession. we will hear from goldman sachs top economists after the break. ♪ jonathan: 18 minutes past the hour. the bank of japan refrains from boosting the stimulus. the economist from goldman sachs are among those who project the moves. the yen strengthens. he has been sworn in as australia's six prime minister in eight years. he is a former executive at goldman sachs. giants --ead with with plans in china. >> we see an enormous process underway in china. where convinced that china will continue to grow no longer into digits, but it will grow. we are getting ready for this. .here is growth which is why in the northwest, -- our plan is to build a budget west of china. spathan: 19 minutes into the trading session. the ftse 100 coming off the back of a three-day losing streak. by .2%.igh biggest two-day drop in three weeks. switch up the board. you -- thatd buys flat. we are an hour and minutes away expected to drop back to 0% inflation. another bank struggling to generate inflation is the bank of japan. they'll again drops below 120. the boj re

rogers around $40 because things are bottoming out. although goldman sachs at $20 is on the way. dagen: $200 call us about the time oil is peaking. sandra: the market is having a hard time with oil at energy prices. >> the supply demand fundamentals i think will get better for oil. it will be great but they will get better. together important thing thing to pay attention to that is getting messages for transmission effect, the gasoline prices in oil prices. the look of retail sales and how they track for q3. retail sales are retail sales or 4.8% up in q3, which is a huge quarter. that effect is coming through into consumer spending which is what we want to see and what we were missing this year. a positive sign from an economic standpoint. sandra: good toy. phil flynn, is there any standup price level that things start to change that you are watching? >> you know, not so much because the economy is better but we are shocked how quickly u.s. production falls. that is the balance today. we are not done as much as the stocks are today because of that. sandra: will keep watching and

gains in oil yesterday. today we're down and that's after goldman sachs slashed it's 2016 forecast to $49. 50 down from $62. the investment bank says opec production surprised sharply on the upside however goldman says oil should bottom out over the next 6 to 12 months. as we look at things today. 45.01 for wti. brent 48.0. >> you know the talk of the day among traders has been about the hedge fund billionaire david tepper about his call on the markets and he told cnbc that he is getting cautious on stocks. >> i'm not as bullish as i could be because i have problems westernings growth. i have problems with multiples. all kienls nds of problems. however if you invest in the stock market, an earnings grow a little bit, they grow 5.5% a year or something like that you all make money. >> now he also explained what it would take for him to get investing in companies we merging markets exposure. >> i like to see when some of those big stocks we merging market components, their pes come down. show me with the increased volatility and they're out of the last two year range, show me that. w

prices go? goldman sachs says $20 a barrel is not out of the question. focus on netflix. they're planning to take on hollywood and win its first all square. a move that could reshape the movie business. ♪ pimm: good afternoon, i am pimm fox. liu.: i am betty let's look at how the markets are trading. it has been volatile this week and is today. s&p futures are recovering, but lower. in the green, up 20 points. the nasdaq is off, but smaller. 1/10 of 1%. what was dragging down the index was energy shares. look at exxon, transocean -- those stocks are still lower and waiting on the indexes. oil prices have been dropping. they are still in the red right now. they are also recovering from their lows. brent is off by 1.4%. part of that reason is continuing concern about the oversupply, the stockpiles we are seeing around the world, particularly in the united states where supplies are 100 million barrels above the five-year seasonal average. 100 million barrels. that is going to take a long time to work through. you: inventory builds in see what habits to the price when we get that i

the headlines. good to see you. i want to ask you about goldman sachs making a play for mom and pop investors with a new line of low cost etfs and i believe reportedly some are even cheaper than some of those from vanguard. do you see this as competition for you? >> well, i never thought we'd be in competition with goldman sachs for anything, but you have to understand that etfs today are a very unusual kind of index fund. they're largely created for speculators rather than for long-term investors, and this year the numbers are something like this, that the trading in etfs for the year is going to be something like $1.4 trillion -- i'm sorry, $14 trillion and trading in the hundred largest stocks is going to be about $16 trillion, and yet etfs have this tiny, tiny asset base compared to the market. so etfs are turning over at around 950% per year and common stocks, the old way of speculating, are turning around at about 120%. so if goldman sachs wants to get into the game of speculation, i salute them. and if they want to beat our prices at vanguard, i don't know how durable that wi

sachs because goldman is weighing on the dow. ceo lloyd blankfein revealing today he has cancer. in a memo to employees he writes, quote, my form of lymphoma is highly curable. my treatment plan is over the several months in new york. my doctors advise during treatment i will work substantially as normal leading the firm. my colleague, steve cortez is here. steve, talk about the effect on the stock here. investors, they look to lloyd for leadership. goldman saks clearly looks to lloyd for leadership. when a ceo falls ill like this, we saw this in the case of jpmorgan and jamie dimon. he had throat cancer, what happens to the schoolgy of investors buying into that stock -- psychologygy? >> trish, listen, lloyd blankfein has been such a powerful and effective leader not just for goldman sachs, but to all of wall street. he embodies wall street to the rest of the world. it is distressing and serious that he has a serious illness, this is transparent they have to be transparent with employees and investors about his condition. if it worsens they need to say so. as long as they do that, i'

stock, the shares resume their downward trend and last week we also got a warning from goldman sachs as well. goldman sachs basically setting the shares below 100 for the first time ever. investec dealt another blow yesterday. there was little value for shareholders if low commodity prices continue to persist. >> well, the glencore bears may be circling but some analysts are waving the white flag. it is an overreaction maintaining it's buy rating. dan scott vice president of investment strategy and global research joins us in zurich and we're joined in studio by the head of global natural resources at investic. let me kick things off with you because the note or the quote that really scared a lot of investors, equity investors was if major commodity prices remain at current levels nearly all could evaporate. were you surprised by the reaction you saw yesterday? >> we were surprised by the reaction but it hit a nerve with the market as a whole. that's the most important thing that high levels of debt are of great concern when commodity prices do what they're doing right now. we were very

when it comes to oil? goldman sachs is $20, others say it's drying up. europe's refugee crisis. what does it mean for the economy and the rest of the world. calm day.her the s&p at its highest level since september -- that does not make sense -- since august. a two day rising streak in the s&p, but a wait and see kind of vibe. joe: there is still clutter,the vix is still well below where it was when markets tumbled in august, but this is been a much quieter week. alix: something that will blow your mind, the head of bank of america says the fed has never raised rates above a dollar 25. joe: i don't know what to make of that. that will be a key weather market volatility keeps the fed from acting. bloombergng into the terminal, looking at the goldman sachs financial conditions index. stockhis does, it takes prices, credit spreads, fx, and we are near a five-year high. goldman sachs with a great note that said because this is so high, it has done its fed tightening for it. since the beginning of this basisit has risen by 142 points, which is roughly equivalent to a 100 point basis point

what you miss. with the chief economist at goldman sachs to talk about what is that they are -- is at stake. alix: the past is prologue. what happened the last three times the fed raised rates. brazil, it is all about with the global markets turmoil. when of the top ceos is your best. alix: we have to begin with the markets. it was quite a rally. at one point the dow was up well over 230 points. all u.s. stocks are of about 1%. a risk on dave. caterpillar was back in the dow. one thing that we saw was dollar strength. it does not like the market was rallying because they thought the fed would be on hold. everybody was up, it looks like a true risk on day. alix: right around 2:00, it dipped extremely. spokesman said's that president obama was not for the house ban to lift oil experts. joe: this will be a whale until that happens. we do want to take a deep dive into the bloomberg terminal looking at the 25 year charge up i guess and manufacturing group looking at the previous rate high cycle you have 1990 4, 1999 and 2000. what is interesting about this is it comes from goldman sachs an

about bank of america, goldman sachs and more. again, we're all over this market selloff. the dow is off its lows. still down 246 points. you're watching cnbc, first in business worldwide. stick around. >>> the company raised price of a drug used to treat infections of $13.50 a pill to $750 much here's what he had to say whether that drug price would be cut. >> doctors are come out saying that you guys need to revise the pricing strategy. patients can't get access to the drugs. they're trying to hoard it in order to provide it. do you feel badly about what is happening? >> no, we're increasing access to patients. i think that we're dra mat beingly increasing it and lower co-pays and giving more drug away for free. half of the drug we give away is for $1. i'm not sure what you're talking about. >> you are going to change the price? >> no. >> for more on this story, we have our health care reporter with us. melissa is at the nasdaq. you've been doing digging on the founder and ceo of touring pharmaceutical. >> in addition to being sued by the company he previously founded that he had s

. we are also joined by goldman sachs partner, colin coleman. welcome to the program. is,ess the place to start probably glencore. pricing its issuance, placing the issuance at 125 pence a share. let's get caroline's take on this. straight to caroline hyde and get her view on what we are getting out. caroline: we did have that news that 125 p was basically the limit if you didn't bid of of 125 or on the nose, you risk missing out. 125 pence is indeed the price they are going for. a slight discount to have a shares finished trade yesterday in london, 128 pence. pricing at 125 pence. proceeds therefore of 1.6 billion pounds overall. this being used to shore up the balance sheet, to pay down debt. it was just last week that the head of glencore said he would be trying to knock down debt to the tune of $10 billion, by a third, to ensure they can keep their credit rating at triple b. ofy are saying the result the equity raise is 125 pence per share. very near that record low that we hit yesterday in london trade. anna: caroline, thank you. caroline hyde with the details of glencore. guy: th

. -- goldman in gold sachs saying that a failure to his production fast require $20 a barrel. gold futures also falling today. cold at a one-month low. it investors hold off on making big moves before next week's fed meeting. betty: we are erasing those losses in stocks. that is bringing down the gains we have seen in the bond market. treasuries, still buying going on. in the currency markets, the dollar is on pace for a weekly loss here. that is a different story than what we've seen with the strength of the dollar. we are at very elevated levels. that has contributed to some economists who say it's unlikely the fed will raise interest rates next week. tops get a look at the stories. ceremonies across the nation today marking the tragic events that occurred on this date 14 years ago. house, president obama and first lady michelle obama observed a moment of silence at a quarter 40 6 a.m. 8:46 a.m. victims families read the names of those killed when the twin towers collapsed. remembrances are taking place at the pentagon and the flight 93 national memorial in western pennsylvania.

. oil through 2015, then you had goldman sachs saying, get this, oil could hit $20 a barrel. is this even possible, or is an oil recovery on the way for all of us? let's bring in the six-time number one all-american fixed income energy analyst and chief strategy officer ted isad. thank you for being here, sir. let's talk about this. i have to start with the saudis. they cut our production, but then they say, oh, demand for our oil is going to be higher. really? [laughter] >> the saudis are trying to stop us from being able to produce oil, and in the short term it will be successful that they will be able to cut out a lot of the production and so forth. eventually the technologies that we're developing and the ability of the u.s. oil industry to lower costs will make it so we can resume higher production. for the near term i think saudi arabia's been successful in driving down supply. cheryl: yeah. well, i say the saudis, i mean opec, but that is the saudis. >> right. no, i agree. cheryl: what do you think is going to be the biggest piece of pressure on global oil supply? we have talk

begin again. mark: a new forecast from goldman sachs. it expects as of the five the red this year. they have lowered their price index for the index. represent the first decline for the index since 2011. there is a big transaction in the tobacco industry. has agreed tocan sell its natural american spirit -- japan. -- japan tobacco. they have been selling overseas to help offset a stagnating smoking rate of home. recordns have bought a property inin manhattan this year. canada's accounted for more real estate sales in manhattan than any other foreign country. those are your top stories that we are following at this hour. up in the next hour, we will be taking a look at glencore. everything you need to know about the commodity giant. plus, the battle over the control of your television box. it rages on. exclusivein an interview with the italian prime minister, he tells the bloomberg editor-in-chief that it is time for world leaders to pull russia back from the cold. we will have much more just ahead. ♪ mark: welcome back to bloomberg market day, i am mark crumpton. pimm: i am pimm fox.

" breakfast he does not think the u.s. economy can bear an increase right now. goldman sachs message carries a lot of weight. we are watching beer this morning. it is not too early. it would bring together the world to biggest beer makers and control half of the industry's profits. the shares of both gaining big. sab miller trading up in london. anheuser-busch trading here. let's look at the top headlines. u.s. consumer prices are down for the first time in seven months thanks mostly to lower gasoline. the government reports the consumer price index fell in august about 1/10 of 1%. that reverses a slight increase in july. gas prices fell more than 4%. not counting food and energy prices, core inflation rose modestly last month. also 1/10 of 1%. the consumer price report will be the last piece of the data puzzle for policymakers deciding if interest rates should rise. this is the first of a two-day meeting leading to an announcement on rates tomorrow. the inflation rate will be a key component in the decision and is running well below the fed's target. a chief economist at goldman sac

going on with the dow, the nasdaq and the s&p, earlier this morning, goldman sachs was not feeling the bullish love and let the markets know. goldman slashed s&p forecast to 2,000 from 2100 and as you see on the screen, we're at 1877. just got three months left to get up to that price target. attention is being turned somewhere else at this hour. tonight much of the developed world will wait in anticipation to see a new product made in america hoping to disrupt the entire auto industry. tesla ceo elon musk is set to debut that. latest creation comes out tonight 11:00 p.m. eastern. the new model x. watch the doors and you'll see the gull wing expression that is something people are waiting to see. just like we are! this will be tesla's first suv. there go the gull wings, they look like spider wings. hoping to blow past consumer expectations, will it be the minivan killer for the luxury set, will it compete with the luxury vehicles or alleged apple car that's years from coming out. time for a bull and bear to go at it. in our bear corner, he's hissing, do bears his? john patridis is

. call.onth a bullish goldman sachs has gone one step further, seating $20. why is it difficult to get a consensus on oil? $20 not to forecast, i think it is more than $40 level. mark: that there is a wide range nonetheless. >> really is. people talk about commodities team very volatile. that is nothing in energy. we are talking 50%, 60% volatility that we are used to this is normal for commodities. take that away, things the rest of the commodity complex -- i think you're reverting to a situation where oil is going to behave like the rest of the commodity complex. looks very weak in regard to supply. you're in for a volatile. timeframe. if you have volatility is hard to pinpoint it down. mark: you say we are in for a volatile time. what sort of volatility are we expecting? we are talking and telling our investors to basically be prepared on the oil side for a world of between 14, 15, and brent between 45 and 55 areas that sounds very range bound, but you will get the first of volatility within those ranges white we call those ranges, because they make a sensible sense from a cost perspe

street getting more pessimistic. what is that about? julie: goldman sachs. they are cutting their forecast for the year's end for the s&p 500 to 21 500. it is down 8% since the big drop that began in august. they followed on the heels of cutting their forecast. he is even more pessimistic. he is watching a couple of things behind this call. energy earnings continue to be under pressure from lower oil prices. he says that china's growth will be a full percentage point worse than economists are estimated. continued instability from indecision in washington, d.c.. finally, he points at the federal reserve and says that in years when we see interest rates go up, multiples are compressed. take a look at my terminal. a graphic of the s&p 500. forecast onaverage wall street. 75, wellge, it is 21 above our current levels. we have started to have strategists cut their estimates, but not enough to bring it down to the levels we are at right now. looking at the earnings ratio for the s&p 500, this is looking at the past three years of this ratio versus the actual price on the s&p 500. one of

begin though with goldman sachs's new call on the market. cutting the year end forecast for the s&p 500. the firm also cutting the earnings estimates for the s&p 500. dominick chu breaks it down. >> goldman sachs says 2,000 is the new number. they take it down. it was 2100 before. now we're down to 2,000. so the target goes lower because they say there are a number of drags. a slowing u.s. economy. that's going to be a drag. the biggest economy in the world. the second biggest economy in the world, china, is also going to be slowing down as well economically. so those two big drags. and then slumping energy prices, three of the main reasons why goldman sachs thinks we could be due for at least a slower momentum stock market. we'll put that way. take a look at the reasons why. they're saying, hey, look at least for outperformance in stocks that have certain criteria. they're looking at four specifically. higher sales exposure and catch returns to shareholders. higher quality companies with earnings and sales growth. and stronger balance sheets. they're not as exposed to leverage. so

$39 per barrel. his team at goldman sachs looks for oil to move, as low as 20. , theore importantly ramifications affect all commodity producers. eswar prasad is professor at cornell university and at brookings institution. he is the former head of the imf china division and joins us this morning. is the commodities super cycle over? is the commodity gain done? it suddenly does not look good for a con -- for commodities. china actually does manage to leave out of this economy away from investment, which means less demand for economy -- for commodities. either way i see much weakness. tom: we are going to talk to you en later about china. i believe one dollar 95 send gasoline is a good thing. it has got to be great. eswar: one of the reasons we are seeing weakness in oil, the supply response coming from the u.s. barrel, a lot0 a of production has come online in the less two years is not going to be economical. this will mean a structural shift. potentialo there is a winner for new year -- for u.s. manufacturers. eswar: there has been a good net positive. david co there is a resurgenc

structure at goldman sachs about changing equity goals -- calls. goldman sachs adjust your equity perspective yesterday after the announcement and the press conference? >> the answer is we have not made adjustments to our global view on the economies or the markets. the reason is that our chief economist has nailed this quite well. tom: he nailed this call. in two ways. one was what the fed was going to do and he has been a big point of view for a long time that it was not going to be december 2015 or sometime in 2016 was more likely. what i think is more important preview we have on the global economy. basically, the u.s. is nevertheless one of the strongest economies in the world. we the largest economy in the world. clearly what's happening here matters a great deal but when we take a look at the other large economies -- china, for example -- there is a clear to celebration going on. we know new york is a mixed bag. germany performing far better than the others. he was economic growth is 1% higher than it is in other countries in europe. when we take a look at what is the centr

markets still have room to run. goldman sachs thinks so. we will talk to the head of the newest emerging markets etf. ♪ scarlet: good afternoon. i'm scarlet fu. alix: julie hyman is looking at the markets. we want to look back at the last quarter. august has aged me like 10 years. julie: i don't know that we have any guarantee that the fourth quarter will be any better. we are seeing some optimism in the market today. we saw little bit of a faltering in this rally about an hour ago, hour and a half ago. we saw the major averages trimming their gains but they come right back again. quarterke a look at the and see how we have done. if you look at the s&p 500, it suffered its worst order in about 4 years. 7% drop for the s&p 500. this is a quarterly chart of the s&p, 7.3%, the worst quarter since the third of 2011 when we saw a 14% drop. there aren't any big surprises here. energy andr materials shares, health care lead lower -- led lower. utilities, the only major industry group in the s&p 500 that traded during the quarter higher after we saw the yields lower. we will talk more about th

prices tumbling nearly 2% after opec and goldman sachs cut price expectations on oil. oil down almost go%. >>> today we remember the events of september 11, 2001. the country will pause to honor thousands of lives lost in the terrorist attack 14 years ago today. we'll bring you those moments throughout the morning on the fox business network. stay with us there. >>> the war of words heats up between republican presidential frontrunner donald trump and other members of the field. blake burman with the details out of washington. blake, good morning to you. maria: hi, maria, good morning to you as well. we start with bobby jindal who basically weren't on a rant against donald trump. he described the republican frontrunner as narcissist, egomaniac and as shallow. that was really just the beginning. jindal continued to the biggest attacks on trump to date last night speaking with lou dobbs. >> conservatives have an important choice to make. do we apply proven conservative principles or turn on a man who stands for nothing but himself in donald trump? >> reporter: as you might imagine trump di

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yen as well. brazilian -- ♪ tom: good morning. headlines on lloyd blankfein at goldman sachs. michael: a letter from lloyd to shareholders. he has been diagnosed with lymphoma. he says his doctors and his own expectation is that he will be cured. big news from goldman sachs. we wish him the best. more banking is today, taking place in charlotte, north carolina. we see here that, sorry, that there is a special shareholder a big vote on whether --erik schatzker, talk to me a little bit about the importance of the meeting. erik: given that the news just came out, i think it is worth speaking just for a minute on that. let's reiterate, everyone should hope he gets better. thinge that is the human to do. but also for the sake of the shareholders. he has done a great job running goldman sachs. it is still the >> act on wall street in so many respects. we must talk about who might need to lead goldman sachs in his absence were he to take a of absence.ave clearly, if it were short-term, all eyes were turned to the president of the firm who said years ago that he would love to be the chief exe

. barclays, alexi on. cut equal weight. goldman sachs, with a price target of 50. i am bill maloney. tom: thank you. bloomberg terminal. michael: a brief correction here. malcolm will be the new prime minister there. i'm reading more analysis. --probably means we lose the the best named finance minister in the world. we are 10 days away or so. michael: this is your official program for finance, economics, politics, and hockey. tom: it was great to see a great goalie for the new york rangers to futures are mixed here. valley nonvolatile this morning. michael with us. we continue our discussion. how should our listeners use the vix? asymmetric and only when there is a lot of fear out there is it valued. transfer the way your family or your friends in your neighborhood should use this? >> it is a little more nuanced. what i like to look at is when , how thingsurbulent have turned. what often happens when you get a big volatility spike, the vix curve is normally upwardly slow. in other words, the futures are higher than the spot market. that is often a good signal for a market bottom. w

: how about this? goldman sachs says the risks of going to $20 per barrel for oil are increasing. now, there's a forecast for you. basically they're saying the bottom has not yet been reached for the price of oil. scott shellady, come on in, goldman sachs is saying what you've been saying for a long, long time. do you feel vindicated, scott? >> i don't know if i feel vindicated. maybe they're short and need to cover it, but i'm a little skeptical of those calls, but, yes, i believe it's a supply issue, number one, number two, an economic slowdown issue as well. i think that supplies plus slowdowns mean we'll slowly grind lower. stuart: scott, do you think that the price of oil leads stocks? it's a correlation, oil goes down, stocks go down, is it a reliable pointer? >> it has been as of late and i actually had a conference call with our customers, i feel as though oil has been leading this market rather than equities and that's funnier, because i'd like to say that i think that equities have been leading the fed. they've started to ignore economic conditions and more worried what is h

down a fraction, it's been down 36 days in a row. now this. goldman sachs chief lloyd blankfein disclosing he's suffering from a curable form of cancer. he will begin chemotherapy. during that time he'll continue to lead the company. >> we wish him the best. vw, volkswagen, acknowledging the ignition's cheating issue is related to 11 million worldwide. that's the information we got earlier. ashley: 11 million and they admit to rigging their cars and the epa has been pressing them for a year to come out clean. you should present that some of the vehicles are diesel. that's where it could have an effect and the testing for this em has rush roomed. it's going to be a huge fine and i think that the head are going to roll. stuart: the vw chief said that they screwed up. ashley: there's a board meeting and i think he could be on the way out. stuart: hillary kramer is with us, a question i've got to ask. volkswagen under pressure, would you be considering buying it? >> i would, 20% yesterday and 20% today. ap it's not going away and put money on it. stuart: i can remember toyota sinkin

"the pulse" is coming up. we will be speaking to the chief executive of goldman sachs asset management about the fed and bank of england. ♪ francine: fed pushes for 2015. adjusting stocks while gold and bonds shift. who is driving vw? matche's with his miller -- thias mueller could be the new boss. ♪ good morning to our viewers in europe and africa, good evening to those in asia. welcome to those just waking up in the u.s. google said to be under u.s. android. scrutiny over european regulators are looking into this. we were expecting something in the next couple weeks. first time i'm hearing that google may be under investigation over android in the u.s. under the u.s. antitrust regulator. we will see whether this has an impact on google related stocks. repercussions to fromof the other companies the software that google uses. the fed is back in focus after janet yellen said she is writing raise interest rates this year. speaking in massachusetts last night, the federal reserve chair said she intends to let the labor market run hot for a a while to heal lingering scars of the crash

-mail. >> i'm sure he's got my e-mail. >> all right, coming u, he's been neutral on goldman sachs for four years now. saying it's time to buy. why is he turning bullish? the analyst is going to join us just ahead. plus, streaming ain the spotligt at the emmys last night. are they winning stocks as well? the answer's coming up. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. theno one surface...out there. no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... ...and the road you're on. the 2016 c-class. see your authorized dealer for exceptional offers through mercedes-benz f

the down side. goldman sachs, you can see the lines starting to converge. perhaps we'll see a negative sign there. on the other side of the banking spectrum, wells fargo doesn't do securities but a lot of lending. those shares seeing the down side show up here as well. if you check out morgan stanley, goldman sachs getting across there. back over to you, melissa. >> thanks so much. just a couple of weeks ago, here's what carter said about the banks. >> if we were just to go back on the line, this implies another 12-15%. >> yeah, i think you look to the november 24th spread in the xlf. >> and of course, since the time of the trade it's only gotten worse. what do you see and make of the death crosses? >> do you want to start with that first? >> whatever you want. >> if you think about it, that's, in order for, to reach the point where a shorter term average has crossed a longer term average, by definition you've made no upper cross. at the moment you're four or five months into the circumstance. it's not you got a big deal but what is a big deal is the massive in the general. th

. breakdowne commodity continues. goldman sachs cut its forecast saying crude could dip to $20 a barrel. >> kroger reported better than expected quarterly profits helped by operating expenses and higher gasoline margins. the cheap fight -- the chief financial officer of kroger will join us. ♪ olivia: good morning, welcome back. i'm olivia stern. : i am pimm fox. let's look at how markets are trading. u.s. stocks, the s&p 500 down .5%. murphy oil, transocean, lower. is dow jones is setting -- shedding 4/10 of a point. the nasdaq is down more than 30 points. olivia: we are down but still on track for a gain for the week ahead of the meeting next week, and that is weighing on treasury markets. treasuries are rising for the first time in a week as stocks falter. the 10-year note down by five basis points trading at 2.17%. a lot of action in brazil after s&p downgraded its rating on brazil sovereign debt to junk status. here's what happened to the brazilian royal. they're up by 30% to the u.s. dollar. we heard from the banks that they thought the royal could go to for per dollar. -- four p

making any money. what does that mean? it's hard stuff to understand. >> shares of goldman sachs closed down around 2% after falling around 3% on the back of the news that lloyd blankfein has been diagnosed with a curable form of lipoma. he will run the company as normal but had to cut down travel plans during the course of treatment. the firm plans to expand the responsibilities of goldman's coo. >> brian moynihan will maintain his role as chairman and ceo of the company. 63% of shares cast were in favor of allowing him to keep both posts despite an on going push from other activist investors to separate the roles. let's look at shares in this hour. in germany they're up by 1%. >> still to come on the program, market volatility, currency intervention, slowing growth and cyber hacking, what does this mean? and the chinese president makes his first official state visit to the united states. more after the short break. >>> 400 million users only nine months after getting to 300 million and pope francis and chinese president xi jingping continue their visits to the united states. >> insura

. goldman sachs also said the world's is oversupply is bigger than first thought and that could pull prices to $20 per barrel. oil is down almost 30% from its closing peak in june. let's look at notable equity movers monday. first, alibaba and yahoo!. the chinese firm could fall another 50%. note, analysts still give the company a buy rating with a price target of $93 and $.20. the stock closed friday at $64 and change below its ipo prices. apple was on the rise today. to top up site contributor the s&p 500. sales of its new iphone plus models reached between 12 million to 13 million units, last year passes opening sales of about 10 million units. that is a wrap of the markets as we had to the close. the economy versus the stock market as we approach the next step in the next few days. stocks plummeted while economic data appeared strong. recent declines say about the state of the u.s. market? , spokenaging director about it on bloomberg television earlier today. sam: there is a lot of concern as to whether the market decline is foreshadowing a potential recession in the u.s. we got the fir

have had to tighten. goldman sachs was pointing to the fact that we may have already had the equivalent of 325 aces point rate hikes. let's bring that chart up for our viewers to show that goldman sachs index. you can see it pushing higher. does that play into the fed, and how much is a problem for that for them? every time they talk about getting on zero, the market pushes them back. christopher: there is no need for them to hike -- there has already been tightening for financial condition. in the at the ford curve inflation market and they will show you there is absolutely no inflation anywhere to be seen. in terms of the fed signaling that there should be a hike at some point this year, they were also expecting some wage gains to come through. the midpoint of the area estimates and there is still no wage gains to be seen. something is wrong in their models. jonathan: so they change the models? christopher: and they drop the plots. all rates have to come down. there isn't nearly as much of inflation in the system, nearly as much likelihood for wage gains. jonathan: let's talk about ma

, you know, knowing that earnings must be too high, expectations for 2016, well, goldman sachs today cuts their earnings expectations for 2016 for the s&p to $120. okay. they bring their earnings expectations down. where should the market be trading then relative to that? they say 17 1/2 times. market should be at 2,100 next year. meager returns is what david costan, the chief market strategist at goldman sachs is looking for next year. how do you play the market tiaa kraft portfolio manager with trillions of dollars under management. how do you play the market in that? >> exactly what he is saying. u.s. centric, high quality companies, good cash return. those are companies that will do quite well in this environment. so far actually we've seen a bunch of companies that have reported like general mills, like auto zone, like car max, like red hat and adobe. they've done quite well. they're either leaders in their space, they're quality companies, and those are the kinds of names that are going to do better when this market recovers. now, i don't know if that's in the next week or two

are why we hit that low. now on the topic of oil price, goldman sachs slashed it's 2016 forecast for brent to $49.50 per bar real down from $62. opec production surprised sharply on the upside. the firm has upgraded it's view on europe's energy stocks from neutral to cautious. goldman also raised total to a buy and bp to neutral. those are the latest calls from goldman sachs. let's check in on broader markets now in europe. susan. >> let's take a look at the broader markets. what's happening at the european session so far. after europe snapped the three day winning streak yesterday we're continuing the losing ways into the weekend. we're lower by .4% and this is after a pretty wobbly asia session we just came off of. gains yesterday in the u.s. let's check in on the weekly performance of global equity benchmarks. let's see what's happening in europe this week. it's not bad. we're seeing gains so far but pretty light volume. that's the story across asia and also in the u.s. as well. i want to highlight what's happening in japan because for the week we did see gains of 2.5% and on frid

date. but another knock against volkswagen. >>> chief operating officer from goldman sachs gary cohn warning of the tech sectors looking bubblish. here is his quote -- for their take, contentively editor in chief joe lazifakis. did i nail that? >> close enough. deirdre: and jack hittery. joe, what is the take on this? he says there's a massive difference between this bubble, the last one and goes onto say there's a bubble. >> no doubt there's a massive difference. in 2000 looking at 400 million internet users, say it's over 3 billion. ad revenue in e-commerce up by a factor of 15. a much different market. deirdre: what is your take jillian? >> private venture capital, last time it was ipos, i think it is bubblish. the last anecdote is great show going in saying what would it take for a company to be denied 10 million, 15 million and people in silicon valley saying this wouldn't happen. deirdre: a great idea to flip it around and say what have to do to be refused money. >> exactly. deirdre: jack? >> the good news is there's a lot of companies with real revenue and real growth, lo

%, it's down 90. >> goldman sachs one of the stocks dragging the down on that news about ceo lloyd blankfein's health. we have the latest coming up. >> hank paulson speaks to us exclusively. he's hosting china's president and tech ceos at a conference in seattle. find out what their main message will be coming up. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. stocks dragging the down on that it's more than the cloud. it's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next. >>> welcome back. the dow dn 237 points. what did you say,

the market opened. she did it to stay alert and keblthed to me. goldman sachs gave me as much time as i needed to spend with her before she died. i never forgot how easy it was for a parent or son and daughter to talk about stocks which is a major reason some of you watch the show. i pledged to my mom i would do something more creative than make money with money, something fulfilled by the show. despite all these different inputs, the process of picking winning stocks can be upended by events and the great recession and the ability of the competitors to knock it off in stride which brings me to the fifth stock, gantos. a woman's apparel chain that the goldman sachs research department loved and had a close relationship with. it was heavily promoted by the firm. i tried to get my father to buy stock in the chain. woe hear nothing of it. i asked him why. we had the best analyst on the street. he said, no one goes there. i told him that was impossible. it was way too highly rated by go goldman. my father said, let's take a trip to franklin mills, a giant outlet mall that he used to go

today looks like this. crude reality, why goldman sachs says oil could hit $20 a barrel. what that means to your money. buy the builders? with housing one of the brightest spots in the economy. are the stocks in that space really a best bet? someone on the street says yes. our experts are going to weigh in. we begin with the markets, stocks trying to go positive yet again at this hour. it is the final trading day of the week. investors now turn their attention to next week that two-day fed meeting, wednesday and thursday. josh, you get the feeling as though people may be paralyzed a little bit until they figure out exactly what the fed is going to do next week. >> i'm going to tell you something, this is one of the most fascinating times to be a market participate that i can remember in my entire career. if you look at the technicals. they line up perfectly with the biggest theme on the street. what's the fed going to do next week. there's been a failure to get a v bottom. we did not have that classic v that we've had going back to 2012. instead we've got this triangular formation

call. obviously, when the chief economist of goldman sachs talks, everyone will be. this was a long dated call. >> that is exactly right. he was always december. people thought he would capitulate. now a lot more economists have gone toward him rather than the other way around. alix: goldman sachs financial index takes a look at stock moves, to see if they need tightening. it has increased 2%. the third biggest move in the past three decades. have them andnks they all try to capture exactly what you are talking about. credit spreads, the stock market and the strength of the dollar. they are going in that direction showing there is tightening. there are two schools of the view here. one is that the fed does not have to tighten. others say the fed cannot because the markets are tightening. talking about that, it will be an interesting conversation. isx: he says yes the call december but the fed should be easing based on the tightening we have seen. that was a pretty intense call. >> that was an exciting thing. based on the goldman sachs measure, if anything, the fed should be easing.

see the after reaching a 17 year high this year. that goes back to goldman sachs slashing their forecast, may we see $20 a barrel? i do not know if it is a positive but it does give a boost to certain countries. cheap oil mean to produce for less and that drives gdp. manus: it does, indeed. oilrig count drop in u.s. production has been dropping for five weeks. the longest streak in 11 years. a lot to chreew over in terms of where we are with the opec and non-opec supply. francine: china's central bank was seen taking the step of extending its currency support measures to the offshore market. manus: it is the latest in a series of extraordinary moves aimed at halting capital outflows and easy pressures on the yuan, following the largest evaluation in more than two decades. the imf has welcomed the move and is managing director spoke to stephen engle at the world economic forum. >> it is important because -- [indiscernible] i think it is a very careful step. the first step open to the central banker. because currency today, the central bank holds a lot of renminbi in hand. theuse

seeing. sachs --d yet, goldman goldman released this report where they say speaking about that volatility is exactly what we are not going to see the fed raise rates and all the volatility in the last couple weeks equals three interest rate hikes. because volatility has gone up, financial convictions have tightened. the market has done some of the work that the fed would otherwise do. they are right there. issue --t's part of a we're in the midst of paradigms.ng we're going from a world in constant in awere wish to where markets are less comfortable about central bank's ability to increase volatility. transitiont is the we are in and it's important. let's talk about the oil markets. goldman put out another estimate . we are 100 million barrels above the five-year average. output is not going to scale back. stockpiles are going to keep them being added in the u.s.. is that reasonable? because, if possible the market has been unhinged. market has had an earthquake on the supply side, on the demand side. the pricing dynamics have completely changed. they are right in saying don't