The fed is expected to raise the benchmark Interest Rate sometime next year. Some question whether that might be too soon given what we have seen in the markets. A potential merger in the Railroad Industry will not be happening at least for now. Rejected a proposal sometime in the past week. A deal would have created a rail specific transcontinental reach. If there will be another offer. Down 11 bill ackman on the first day of trading in amsterdam. Panic and redemption define investors. Here is what he said. We are not Berkshire Hathaway. That is not a bad business model. You think about a longduration business strategy. We will buy large stakes in Public Companies like we have in the past. Do you think of yourself more like Warren Buffett . A betterk that is choice. Im friendly with mr. Carl icahn. In terms of Investment Strategy, we are much more like Berkshire Hathaway. The first time, someone has contracted ebola inside the United States. Is Hazardous Materials crew decontaminating the apartment of a Health Care Worker in dallas. She came down with ebola after treating the man who was being treated for the disease at texas presbyterian. There was a breach in protocol. Been dozens of Health Care Workers who had time with thomas eric duncan. Hong kong truck and taxi drivers losing their patients with prodemocracy demonstrators. Hundreds tried to break through barricades set up of the protesters. The protests have created massive traffic jams. Drivers say that is costing them money. On the corporate front, we have breaking news on Janus Capital. The company has agreed to acquire velocity shareholdings, the Parent Company of Exchange TraderCompany Velocity shares. What bill gross is up to. He had a very good morning. They are looking to buy velocityshares for the tune of 30 million. The deal is subject to Regulatory Approval and should be finalized within the Fourth Quarter of this year. Sayseo of velocityshares there is a lot of synergy between the two firms and he looks forward to boosting the etf growth. Bill gross is no stranger to etfs. He was the head of pimcos etf return product. He will have a lot of say in how this one is going to be run specifically. Bill gross will have some way of managing this fund. Etfle want to boost presents. Much more aggressive janus under bill gross already. Back and getstep more perspective on the markets and how they are trading, particularly after the selloff we have seen. European stocks and futures are rising. Julie hyman, put a doll in perspective put it all in perspective. It was sort of a remarkable week. It looks like a turning point in terms of sentiment and where we saw trading. German economic data, chinese economic data, profit warnings from some relatively Small Tech Companies in the United States that caused a ripple effect. The s p 500 down around 3 for the week. Sow 1. 5 trillion off the value of u. S. Stock markets. The s p encapsulating that. If you look at the world index, you see emerging markets also falling. Definitely, a lot of concern among global stock markets. Illustrating the interconnectedness of what we have seen in the selloff. Take a look at what we have seen in the treasury market. Stocks falling to the 200 day moving average. We so the 10 year yield falling to remarkably low levels. 2. 28 . We are continuing to see futures point to lower yields. The bond market is closed today. That could cause a little bit of light volume. We are seeing a little bit of a lookup and futures as we see markets globally start to bounce back to some extent. Selloff ofy get i those proportions, we tend to have traders and investors take a look back. Will it be sustained . Is the big question. Julie hyman, our senior markets correspondent. Moving and shaking this hour, of the asset ceo management business says we will not be getting a 10 market correction. She says, stocks will only fall a little bit or they will follow a lot, nothing in between, no middle ground. She said, we will get a 2 correction with a lot of cash coming in on the way down or we are going to get a real correction and it is going to be a lot worse than 10 . A big warning from her. The s p has fallen a most 6 from its peak last month. One company we are watching closely is the newly merged fiatchrysler which will make its debut on the Stock Exchange today. It has beat sales for years in a row, but has left the goals for its first five years as a new company. Matt miller joins us now. What are they trying to achieve here . They are the sixthlargest automaker. They are. They have a ton of brands. Fiat, alfa romeo. Most of the brands are in the u. S. That is one of the main reasons the ceo wanted to move most of the lifting over here. He hopes to have a 6040 split. He wants 60 of the shares to trade on the nyse. He has incredibly lofty goals for the next five years. He wants to boost sales and revenue. He has a lot to do between now and then. He wants to double margins from 4 to 7 . 4 is pretty sad in the auto industry. 7 would be a lot better. A number ofecute on levels in order to achieve that by the time he wants to retire ris collect for aris ferra for a living. The most important thing is jeep. It has grown over the last five 27 per year. That is the fastestgrowing retail auto brand in the world of anyone else. They will achieve one Million Units in sales this year and a want to double that by next year. Do you drive a jeep . I do not. I could see you in one. Someday we could all be in a eheap if the seat jeep if th ceo has his druthers. [laughter] i will be interviewing him tonight. Thank you so much, matt miller. On the chrysler ipo. I want to turn back to a broader focus on the markets. I wanto ort washington advisers. To see if at great this morning. I know we were having some connection problems nick, great to see you this morning to him having some connection problems, which is why we are actually on the phone with you this morning. I respect every, but mice mary, but my take is we are not going into a bear market. The real debate is does this thing abort quickly and the fear goes away or does it lengthen . That is what i am unsure about. What would make you more sure . What are you looking for . One, what should we worry about . There is a global slowdown led by europe. Germany is flat on its back. Worries about japan and some other emerging economies. Sayingf people have been that the strong dollar is going to hurt the u. S. Economy. You have to put that in perspective. It has been a big move against the euro, but not against all of our trading partners. I dont see that as a negative. Falling oil prices are bad for investors long oil but they are good for the consumer, they are putting more money in the pocket. That is a stabilizing effect. Oil prices have fallen Something Like 20 so far. Yes, that is good for the economy when it filters down to lower gas prices, but that is also a really bad sign about the Global Economy. That is true. You have to ask, what is the cause of it . Price might oil continue for a little bit longer. If they are selfcorrecting , some of them argued to put more people possible money into peoples pockets and you have lower Interest Rates. Slowdown,s a global the fed will keep it up a for a longer. Of time a longer period of time. Thank you so much. The chief economist at Fort Washington advisors. Ackmanup, what will bill do with all the money he raised in his ipo . Getting about 2. 7 billion in his ipo. We have much more from that exclusive interview with him from the netherlands. The latest big company to be targeted by hackers, kmart, as if they do not have enough trouble. What they are doing to protect their customers. As we mentioned, bill ackman has gone dutch, kind of. Shares of Pershing Square are in the red. The stock has dropped as much as 11 before recovering just a little bit. Hans nichols spoke exclusively to bill ackman, where he disclosed where the new money raised will be spent. List the u. S. , you cannot that pays Incentive Fees when you on securities. With think of it like an Investment Holding company, but technically it is a closed end fund and we have to be an offshore entity. And london Stock Exchanges. In london, there is the specialist market. We will be the 25th largest company. I think people will look us is a real company and it will contribute to the liquidity. Liquidity is one of the main reasons for this . Yes. Are you going to go on a shopping spree before christmas . Capital gets repopulated among all the funds we match. We have about 18 billion in capital. The cash we have raised we intend to use for a new commitment. New commitment we will announce in the next 4560 days and the capital will go to that investment. A usbased company . A usbased company. Are you going to give me a hand . No. A hint . No. Heard about 16. 8 crybaby shareholders. No. Carl icahn might call me that in the old days. The reference was to the fact that in those days government was not something that i was was top of mind for shareholders and shareholder activists. I think it is a very positive trend. Im glad you brought up carl icahn. You see these trades to the end of the earth. Their investments. We think of it like an Investment Holding company. We are not Berkshire Hathaway, but that is not a bad business model. You think about it longduration Investment Strategy. In publicly invest markets, but we will buy large stakes and Public Companies that will enable us to have a Large Capital base to manage the duration of investments. You think of yourself more of a Warren Buffett than a carl icahn . I think that is a better choice. In terms of Investment Strategy we are much more like Berkshire Hathaway than carl icahn. Hans nichols pushing some buttons with bill ackman. [laughter] he joins us now from amsterdam. Do not call bill ackman a trader and he will bite your head off. [laughter] yeah. I thought it was going to get in trouble when i suggested he was a crybaby shareholder. He was fine with that. I suggested he was a trader and then he was not the kind of amsterdam mello that many around the streets here clearly are. [laughter] did not ask him about the smell of Something Sweet and leafy in the air. [laughter] you can clearly smell something that is in the air here. On his bid for allergen, he has owners ofced the allergen to have a meeting with him. He is still bill ackman of change. He is looking for positions. They have increased their position at fannie and freddie. They are going to go and spend 6 billion all in one place sometime before the end of november. Bill ackman has a surprise for us. One company is about to get surprised. Hise has something in pocket he is going to be showing to us very soon. What about herbalife . What did he say about that . Thee basically says situation in venezuela on how they are accounting for their currency, where herbalife is giving it a one to 10 ratio. Official rates are one to 103. He believes this will start unraveling and have Price Waterhouse cooper, the accounting agency, really take a harder look at the books. Developments on herbalife out of venezuela as being significant and a potential catalyst. We have all talked about the herbalife game over and over. His investment is at parity. He has kind of broke even. We will see how much further it broke down and whether this short is a big win for him. Try not to breathe into heavily around you. Hans nichols reporting from amsterdam. Much more ahead, including the backlash. Linkedin may be being a higher price than a wants to get customers in china. The deadly disease comes home. The first time someone gets infected with ebola inside the United States. You are watching in the loop. Live on Bloomberg Television. It is columbus day. Here is a look at our top headlines. The crackdown on tax aversion is not stopping some buyers. This deal will shift the u. S. Medical Technology Company costs feel to the u. K. And cut its tax phil. Kmart bill. Kmart is the latest retailer to be hit by hackers. Kmart will provide free credit monitoring customers. At the disorganized month and were hacked. Who shop at the store this past month and were hacked. Different economist wins the nobel prize a french economist wins the nobel prize. Bloomberg television is on the markets. It moment of trepidation as to where markets are headed. It is time for futures and focus. Gold futures trading at the highest levels as people look for safety. There are other things going on here as well. Joining we with more joining me with more is joseph stone and todd horwitz. You. Lets start with we have seen this rebound in gold as people scramble for safety. When you have the fed coming out and saying, we might remove , youmodation more slowly would think that that would not necessarily be good for gold. Sure. After we saw the good jobs report come out two fridays ago, a lot of people bid the price down. We are seeing a lot of good Economic Growth in the United States, a lot of people said. When they got the minutes, they saw the fed was not saying we are ready to do this. We are seeing the economic slowdown in europe and china, suggesting we might seek sewer growth Slower Growth here. Todd, im curious as to what you are seeing in your perspective on the trading floor. Are we going to see more downsides for gold in the shortterm . Good morning. I think that gold has taken all the punches that it can take for now. Last week, we went down to that low last year. E kind of made a Double Bottom it has been the victim of a much stronger u. S. Dollar. It has been the victim of a lot of sellers coming into it. You take all of those considerations and now we come bottom and it the looks like a fair buy. I think we will see possibly 1300. Andok at it as a commodity not an asset, that is directly affected by the strength of the dollar. Weakness in the dollar will create strengthen gold. People will come in that do look as a fair class. I think old has taken all the punches it can take to the downside. I think gold will work its way higher to the 1300 level. A buyer around 1220, you would still look for a bit of a pullback . I would not have a problem buying at 1200. 5. 1220 isndred 20 good as a. Im looking to make a nice little spot on this trade. I want to put the trade in laymans terms. Lets assume he is buying gold to 1250, if it goes up that would leave a profit of 30. If it bounces, he could make a profit of 3000. Im curious about this idea of the Double Bottom. You are looking at a from a fundamental and a technical perspective. Do you think that means we also dont see much more downside . This has been so much of a dollar trade. We had such a rise for a long time. As the dollar becomes more expensive, it is more expensive to buy gold. If people are making bets that they think we will see too much of a runup, the price of the dollar is over bid, then yes, the price may continue higher. That is a bet that a lot of people are making and some arent. Thank you some much. We will have more on the markets and 30 minutes. Thank you so much. Back to the crisis, the ebola crisis. A breach in protocol. That is what cdc and dallas officials are attributing to the first case of ebola contracted within the u. S. Borders. What the breach means is yet to be seen. In thed see more cases coming days despite seemingly thorough precautions. Shall be has been following all holiday hasshelby been following all of these developments. What is happening here . We are getting mixed messages and that is what is so alarming to so many people. Ebola is a deadly disease. It has entered america and infected an american. We dont know what the breach in protocol was. We know this nurse treated thomas eric duncan, the man who lost his life to ebola last week. She followedsays all necessary procedures and was following protocol. Shortly after she was diagnosed, the cdc made a bold statement. We dont know what occurred in the care of the original patient in dallas, but at some point, there was a breach in protocol and that breach in protocol resulted in this infection. President obama has called on the cdc to speed up the investigation, figure it out as soon as possible, but we are hearing intense criticism from National Nurses united and other groups saying that hospitals are not prepared and nurses feel they are not ready to handle ebola if it walks into their emergency room. They are saying, dont blame us. Look at the overall system. How prepared are american hospitals around the country . Advises hospitals, but they do not actually oversee them. It is unclear how prepared hospitals are. 80 of nurses have not received proper training or education. That is causing a scare. Overseas, nurses and liberia are on strike because eight in 10 do not have the necessary gear to treat ebola. This is a problem worldwide. With thousands of troops approved to go overseas to treat ebola, it is not just a health crisis, it could be a National Security crisis. Americans are definitely worried about this. Shelby, thank you so much. Breaking news on a retailer. Allison naming marvin as president and ceo designate. Julie hyman joins us now with more on who he is and what that means for jcpenney. Is interesting. Jcpenney had its First Investor meeting since jenny wary of 2012 last week. Gentlemann that the had been there for about 18 months and he was only supposed to be an interim person. He had returned to the retailer after he had been ceo and then ron johnson had taken over that enacted changes that did not come up with. Marvin allison is not going to august 1 of next year. This is an unusually large rampup. Allison is the executive Vice President of stores at home depot. He will be coming into a little bit of a different industry, in terms of what they are going to be selling. They dont want to make any mistakes. They are giving a very long leadin time. He also had positions at other retailers, including target. We will have much more on marvin ellison. Coming up, my exclusive interview with the ceo of linkedin and the challenges of doing business is in china. Last week, we brought you my exclusive interview with the linkedin ceo. He disclosed of the company had to compromise some of its values to crack the Chinese Market. They launched a local chinese inguage site, a huge step attracting 144 million potential new customers. That business has come at the useruser\against backlash against selfcensorship. Who feelare people strongly about supporting freedom of expression and we feel the same. We are strong advocates for freedom of expression. We are very from opponents of censorship. The challenges that if you want to do business in china and we think there is an opportunity there to create jobs and Economic Opportunity for a huge population, it is one of the largest economies in the world, you know, china has stated an objective of migrating over 200 50 Million People from rural areas into urban areas. We think a platform like linkedin can help with that transition, can help create jobs, and economic opportunities, and can help connect people within china to opportunities in the economy. You see Multinational Companies in china that are starting to expand globally. You see companies who want to do business within china from outside of china. We think as a platform come a we can create a lot of value for members and customers. To do so, means of complying with chinese law and that means doing things we are not comfortable with and where we have had to compromise on some of our values. We think that the value that can be created in china is worth doing business there. We think we will continue to be very thoughtful about our approach and we gave a lot of thought to this. We did not go in without proactively thinking through what kind of challenges we would face. We made the decision that we wanted to enter china well over 18 months ago. The challenge was thinking about how we were going to do it, which values we would be open to compromising by virtue of doing business there and which we would not and where we would draw very firm lines. Can you give me an example of where you did have to compromise and where you said im going to stand firm . Censorship is something we would prefer not doing, obviously. To communicate to a member the fact that their profile will remain in accessible as a certain word or phrase is on the profile is gut wrenching, to be honest with you. It is not something any of us want to be doing. Times, in order to do business there, it is necessary to apply to the law. That would be an example. A gut wrenching decision. I want to bring in paul kedrosky. Knowings feel entrance in china . Order tosell out in get into the market . We also out. All sell out. Did you seelell out . Everyday. [laughter] the exact same risk exists in china. If you do not launch quickly, you have to clone your business and then you are going to get beat up because you have to purchase as an entrenched competitor. In your view, with a have been better off not going to the Chinese Market . I think they had to. I think the difficult part in the business is that there is fundamentally a contradiction in the business. The trouble is that they do not like their business enough. They want people to stay on their site for more hours a day using content. At that point, you run into the censorship problem. The core business of linkedin is not running contrary. They wanted to get more and more users. That growth is slowing down. Growth rates are slowing down, which is why they are looking at other markets and other segments in the u. S. I want to say another comment einer said they are going for younger and younger consumers. Is one of ourbers fastestgrowing segments and demographics. We are helping them select which colleges they want to apply to and attend by virtue of starting to think about their career. I heard you chuckle. Are you skeptical . Skeptical. But there was a certain inevitability to that part of the business. It really does not fit in very nicely with a lot of the things they already do. Yes, it is important to get people on the service early. They are not u. S. News world report. This is linkedin we are talking about. Certain businesses have good franchises in opposition. So this is a tough position. I dont think this is the right way to get there. Joining you so much for us. Paul kedrosky, are bloomberg contributing editor who sells out every day, he just said that on Bloomberg Television. [laughter] a big week for Bank Earnings. She goes . Dy as is there a red flag . We will hear from one of bankings leading analysts. Season. Earnings Bank Earnings kick off this week. Jpmorgan is the first bank on tap. Sincetheir first report disclosing for data breach that affected 83 million households and small businesses. Joining me for a preview is paul miller. One of the most respected Bank Analysts on the streets. Going into thean earnings season. We do like jpmorgan. We think they will put up pretty good quarter up there tomorrow. They will probably be ok in the Third Quarter and that will help jpmorgan a lot. You are getting loan growth, which is helpful. What is still an issue is the Net Interest Margin is very weak. The 10 year yield continues to fall. Guidance is still going to be somewhat cautious. I think jpmorgan is probably going to have a pretty good quarter. You mentioned fixed income trading. Volatility eased over the last quarter. What is behind that . I think it is the overseas markets. Fixed income training trading , you dont what they have done until the end of the quarter when they give new guidance. There has been a lot of news about the volatility. That has not been there in the last year or year and a half. That should help jpmorgan and citibank and bank of america. Of lowtioned fed policy Interest Rates continuing to come down on treasuries. Isnt this fed policy continue to buffer the liquidity . They continue to get this easy ride by the fed policy. They do get this easy ride on the liquidity side. Yieldneed a very steep curve. Right now, we have a very flat one. What happens when the rate starts to go up . If it goes up on the short end, there is more pressure on margins. That is why we are more cautious on the regionals. Igo banks of a lot more levers to play with to move forward bigger banks have a lot more levers to play with to move forward. The 10 year continues to be week, which is overall bad. How indicative will jpmorgans results before the regional banks . You have to sit there and take a look at the details. What we are going to probably see is that margins continue to show weakness, which will be bad for the regional banks. Have fixed income to cushion the results. The bigger banks have a lot more leverage to move forward come a was a regionals are playing by the economy. , while the regionals are playing by the economy. We did hear from jamie dimon for the First Time Since he disclosed his cancer diagnosis. Here is part of foot he told the financial conference on friday about regulation and how that is affecting banks like his. The regulators are talking about finetuning some of these things. We want to have both. Have had 56 years of rules and regulations. We are in favor of that and the system is so much stronger, but at some point, we need to focus on making the world wealth. Banks in particular pretty much absorbed that risk . They have. It is not really getting better. It is still continuing worse. There are still a lot of rules they have to finish up. It has been hard on all of these banks, not just jpmorgan, but the regionals. The cost of regulation is through the roof. The bigger banks have the advantage because they can spread the costs out over their assets. At some point, the government does have to back off a little bit. Overall regulation is not backing off and i think the government needs to back off. What about the higher cost of presenting protecting banks . That is another issue. That is not a government issue. That is the world we live in. Every time you open up the paper, it seems like somebody is getting hacked. That is an expense the banks have to absorb. Thank you. Paul miller. As the Bank Earnings kick off. Why one media critic is characterizing yahoo Ceo Marissa Mayer as a deer in headlights. Ouch. More on that story. The hour. Tes past a Bloomberg Television is on the markets. Futures are rebounding slightly after one of the worst stock drops of this year. S p futures up. We are on the markets again in 30 minutes. Intog up, chrysler roles the new york Stock Exchange. We will have much ahead on the newly merged auto giant that is trading this morning. Mohamed elerian on the economy, afterrkets, and hurting the jets lost yesterday. We are live. Welcome back where we are 30 minutes away from the opening bell. Futures are opening slightly higher. Jones industrial average has now given up all of their the year. Reason to come to new york is to rated against the other automakers. One of bill ackmans funds has gone public. It is not a winner today. It in anabout exclusive interview. Wellso talks about his publicized thoughts on herbalife. You see Companies Like colgate writing off their entire operation. Herbalife has been marketing the revenues and earnings from venezuela at 10 to one. Of herbalife are down more than 40 so far this year. New concerns about the Health Care Worker who treated that ebola case in dallas. One of them has come down with the disease. Dont know what occurred in the care of the index patient, the original patient in dallas. But at some point there was a breach in protocol, and matt rich in protocol resulted in this infection. The Health Care Worker had been working protective gear. The dallas caregivers were monitoring their own health. On a lighter note, it is a mystery at 35,000 feet. Gulfstream is known for its highend business jets. Now according to the wall street journal, it will roll out a new plane tomorrow. The company is not saying a itd, it will not even admit is holding an event this week. Those are the top stories we need to watch. Arestors around the world so focused on increasing volatility in the u. S. , and markets are kicking off a new sick and we are kicking off a ment called before the valverde the top 10 stories before the valvbell. Normally we do not cover this kind of news. A 30 million acquisition, really . By Janus Capital . Signifying a more aggressive approach i janus thenal which has i asleep at the wheel when it came to mutual funds. The Pimco Total Return Fund has an etf that is benchmark has a benchmark with it. He was the one who spearheaded that move there so one would then draw the conclusion that he might do the same when he goes over to janus. You get the feeling when you read the story that he is going to start Something Big with this company. Jcpenney naming Marvin Elliston the president and ceo designate. Fromll be taking over mike. How many times can mike retire . They will do this transition process that will culminate in august. How have they done pretty well under allman . Any worse, and they would be closing. When they did they investor meeting, they say the succession planning is really intense right now. They did not give any hen does 2wood he would be done, but he transitionhe process is not complete, but it is well on its way. They fire the guy, and that brought him back to only do the same thing when an excellent work when it actually worked. Kmart got hacked last week, and now they are offering free credit monitoring. That is not enough. Free creditet monitoring anyone pretty view of creditl wate monitoring anywhere. If you have a capital one credit card, you get free credit monitoring. You should be able to figure it out before it shows up on a credit report. It is a glacial event women actually happens. When that actually happens. If they got another credit card in your name, you would not necessarily know about it. I recently has a credit card ntolen, and you just put a alert on your account for 30 days or 90 days, and that is free. Not sure what more theyre trying to do something, talking about it, trying to do something. It is a positive thing, less negative. Everyone is susceptible. Someone under fire is marissa mayer. Did you see this . Monday, called up Ceo Marissa Mayer. He has an honor her back since she became ceo been on her she became ceo. R in the her a dee headlights ceo. Is eitherys she terrified or confused at public events. I have not noticed this. I have seen her speaking in a lot of these events. We have the ball here who have interviewed her a lot. We have people here who have interviewed her a lot. She has to turn her back to you turn her attention back to yahoo . I do not get it. He is nott only as saying something new. A lot of people said that once the ipo happened, and to give their money from the sale, that now it is time to see what she is really made of. Continue our began countdown to the opening bell. And mohammed elerian is joining us with a look at whether the Global Economic slowdown should be affecting global policy. We continue our countdown to the opening bell with number six. Fiat chrysler set to make its trading debut on the new york Stock Exchange, giving more u. S. Investors a chance to tap into the growing Global Market for cars and trucks. Industryo bring in an consultant, and matt miller is joining us. Cars. You love first off, you say that this is expose someng to full nerve abilities that fiat chrysler. Is one of the most marginal automakers in the business. It is launching into a market that seems to be turning from bold to bear. That is not a great equation from the getgo. Not just the equities market, it is the car industry right now. A couple of weeks ago forge dropped a bombshell and said that our european losses are still massive, and were going to mean huge loss in south america. A lot of these problems are due areas that sergio marchionne. Ants to sell to south america, brazil in particular is a huge market for fiat. And exposes the problem in the mass market. Theres plenty of time to price the merger into the share price of just fiat before this new york float. Hugee not seen any improvement. I do not think investors see real synergy where this merger is worth more than the share of its part. It is not solve all their automakers problems. Perhaps they can step into another mode, a merger or partnership. That is what he is talking about. Recently said he sees more consolidation within the auto industry, and then a new number one could he created with an acquisition. That has to be the password for fiat chrysler. They just are not solid enough on the massmarket side to survive longterm. They do not have the efficiency of scale, the common platforms they need. The real question is who do they partner with . Targeting a are french automaker, but the hey are tied up that with a chinese company. Ourets talk about he favorite subject. Elon musk. Scathing column on friday on musk. The interview i did on friday, and what he said about automation. Important to is differentiate autonomous driving from autopilot. Autopilot is what they have in airplanes. We use the same term they use an airplanes, where there is a station there will still be a pilot. The onus is on the pilot to make sure that the autopilot does the right thing. Were not yet stage where you could go to sleep and wake up at your destination. Autonomous ifbeen that were the case. People love his old futurism, relies onr business consistent, pragmatic, longterm leadership. There will be even fewer musksnities for personal touch. You say he will be limited by being an ageold car company . Right now, it is a start up. Their facilities and a feels like a start up. It has that energy, that excitement, and look at the stock market obviously their equity, people believe in this company because of their vision for the future and because of what elon musk personally stands for. Works right now with a relatively small luxury brand. Build, andtinue to become more of an everyday automaker, the opportunities for this kind of futurism are going to be reduced. The ability to stand out in the marketplace is going to be ridiculously reduced. It is a challenge of scaling up. Thank you. We will be back in two minutes with the opening bell. Welcome back lets get back to bring you the most important stories you to know before the bell. Number five, tech stocks. The nasdaq dropping over 2 last week alone. And what that hit was microchip stocks. Microchip technology the company came out with a sales and the ceo says he thinks there will be a correction in the industry. That created a lot of concern. All of this is sparking a lot of concern. Were going to start to see these earnings come out, and perhaps this is a sign that the market does not think they are going to meet up, or that their forecast is going to meet with the market expects going forward. It is a good barometer of how companies are spending, about how consumers are spending. They are saying it is going to be a downturn, and youre going to see that come to fruition later on when you look at consumer sites. Everything is in the cloud. Canadian railway mergerhing csx with a proposal that was denied. One would think, although it is directly clear, that he would be pushing or hoping to wish for consolidation. The question is will it happen is burning . Burlington northern tried this with canadian national, and that did not work out because of regulatory concerns. The ageold formula is when someone makes you an offer you first say no and wait for them to go back with a sweetened deal. We do not have any evidence that they will come back with a sweetened deal, but that is the way things go. Call is still there biggest there biggestis cargo. I have a quote, the stock is down which is good, if it went up we would have sold it to love. O low. If the stock had gone up ummed he have been bombe out . Of course you want this to go up, especially if youre going to do more of this. And then he said something to hans nichols, that he wants to take the bulk of the money that was raised, 2. 7 billion, and he was to put it into one company. And he will show his cards in about a month and a half. He left to tease this kind of stuff, so we will find out then when it is. Mary callahan made some comments over the weekend about the market. She said we are going to get them 2 correction with a lot of cash coming in on the way down, or were going to be getting a really big direction, and will be a lot worse than 10 . Nothing in between. I do not consider that a correction. She is already a risen star. She is a big deal at j. P. Morgan, and people listen to what she has to say. This is a very bold call, and i admire that. You do not want people to run with the pack and talk consensus all the time. We keep hearing calls like this. Is this any different than past calls for correction . If it is something in the middle, then she is wrong. Of the way only we are lightly rebounding this monday morning. Welcome back. We are a few moments away from the opening bell. Matt and julie staying with us. You cannot shake us with to. Number one story, stanley said a slowdown in the World Economy could undermine the u. S. Expansion. This is what he said about the possibility. If foreign growth is beginning and anticipated, the concert was for the u. S. Economy could lead to the fed removing accommodation more slowly than otherwise. Did have to read his paper to say that . He did not want to make a mistake. This is something that the markets would be happy about. Thisews is good news in sense, because they want the fed to leave the punch bowl out a little bit longer and spike it. You will get the questions that we have been giving, is that how much will it really work . Besides, what is left . The equity markets only care about jews asset prices. Asset prices. Former pimco ceo, Mohamed Elerian joining us on the phone. You were following some of the comments from the officials over the weekend. You think they might be prepared to raise Interest Rates . I think a couple of things. One is that the fed and others are worried about the week level ifnomic outlook, especially the balance of risk is on the downside. And they also do not want equity markets to correct too quickly, and therefore they are coming short. H we are showing given out this week when she said to be careful of the disconnect between too little economic risktaking, and too much and agile risktaking. That is the problem. Unless the Global Economy picks than keeping asset prices up for having the state of having them higher is not going to work. Do you think the imf got it right when they give other ctions a week ago . I think they were right to write down the global prospects. It has a geopolitical angle to it. With all due respect, the imf forecast seems to be often wrong. And revised down a lot. And they previously were telling governments, to spending,heir preaching austerity, and now they say to go out and spend. Are they behind the curve all the time or just recently . Everyone has been consistently revising growth projection down. From the fed to the imf, people have been way too optimistic. How long it has taken to incorporate this notion that we do have a secular and structural problem with the Global Economy. Why do they trail the private sector . Been too optimistic as well. If you look at growth theections, they tended on side of being too high rather than too low. We tend to because think cyclically, while we are still living in a structural economy. So much for that Stanley Fischer trying to juggle the market higher. What does that mean when we are having these comments come out . If you it heard the fed say a year ago that weird way to stay more, data for longer, stocks would have rebounded. This rebound has not been a huge one. The federals reserve accommodations at this point . How much can it really achieve . Something happened last week. Normally what would happen is that the fed is reassuring that rates are lower, and they are, look at what happened this morning, how negative some of the rates in germany are. But something happened last week in addition to the price decline. There was significant volatility. If you add up the daily moves in the dow up and down, you had above 10 of the index. This volatility ask against the reassuring words of the fed, and against the push impact of lower Interest Rates. Does not come down, new cash will not go into the markets like it has in the past. Were going to see a lot of jerky movements and stocks today, particularly with the bond markets close. Veryught these were interesting coming out from mary wean at j. P. Morgan will either get a slight correction or decline of 2 , or we will get something that is much bigger, above 10 . She is on the extreme. She says there is no middle ground here in a market. How do you feel . Would you agree with her . She have sympathy for where is coming from because the main mover of the market right now is economic prospects. They are not going to change much. They are not going to change policy. It is how much cash is committed to the market. Getsw cash committed, we are going to have a very shallow correction and then we will continue up. Cash that is on the sideline, and there is a lot of it, if it does not command, youre not going to have a lot. The main price center is this idle cash. I wonder what you think about the situation in russia and how that is effect in europe. For has already warned that russia is going to cause a much rigor than anticipated loss. We are expecting the same to be true with general motors. Last week all of the Economic News out of germany was rent were and some respec speculating that the russian economy might be bigger than people anticipated before hand. Do you think that is the problem over there . It is playing a larger role. The 4 contraction was a wakeup call. With thet had to do lower demand coming from the east. The main issue about russia is that the Global Economy cannot afford, from majoric perspective a counter sanction. Further dealings in ukraine, the west will have no choice but to put sanctions on energy and finance. And if that happens they will have counters sanctions in terms of energy flow. Do you havesue is more sanctions than counters sanctions. Griffin Vladimir Putin has major leverage. Then Vladimir Putin has made ajor leverage. He has to play at dell or it delicately. His local preliterate he is very high. Popularity is very high. You probably do not drink, but if you did, you might he hung over from nursing your ones from last nights game over the jets against the broncos. That was brutal. Was typical jets. They start strong, and then they collapse, and in the give us some hope, and then they taken away. Congratulations on your eagles win. It was very sad day for new york sports. My poor giants. We hate to keep bringing you on after a jets loss. We need to break that losing streak. Thank you for joining us. Coming up, snapchat said it is not our fault, there is a controversy in the mobile app about photos that did not disappear. Snapchat has been hacked. Images that,000 users thought have been deleted have been reportedly released online. The hack is being called this e snappening. Some explicit pictures, some of which may be of children. Mark zuckerberg promoting the facebook project internet. Org which aims to give Free Basic Internet Services to a large portion of the world. Stay with Bloomberg Televisions fee at chrysler makes his debut on the new york Stock Exchange. Live from the floor of the new york Stock Exchange at 2 00 p. M. Eastern. This has been a longstanding fight. Longstanding ebook war with publishers. Could lose aon lot. We went to see him in palm beach, florida where he writes these amazing books. What he say about putting an end to the standoff . Pushover,terson is no which you might expect from an author. He was the ceo of the Advertising Agency for the first 20 years of his career as an author. He moonlighted as an author, if you will. He only went fulltime in 1996. Himself als recovering advertising executive. But as a former madison avenue man he knows the value of optics, both good and bad, and how perception matters. This is what he said when i asked him what should i set be hette be doing . Wouldi ran the company, i he inclined to live in seattle until it got resolved. I would be in a hotel everyday. I would be camping out in front of jeffs house. Invite every writer in the world to come out here and be involved in the negotiation. My style, and im not in their , is to be much more aggressive and proactive. But i can understand why they are fearful. I would love to see him jeffsout on doorstep. Hachette needs to be careful. What does he say about his relationship with jeff bezos . His looks are Still Available with amazon. The problem is that they do not make their unpublished works available for preorder and delivery on the back catalog. So he and others have suffered from that. For thee an invited campfire retreats that they hold for authors, and they inspire kids to read. That is one of pattersons personal preoccupations. Nobody has talked about this dispute, but this is the kind of relationship he thinks he has with jeff. We are not buds. But his wife and his kids were very nice and so i have no reason to believe that he is not a nice enough guy. Of pouncing onng wounded in cells, i do not think iat is a wounded gazelles, do not think that is a great comparison. Do not think that is the optimum for companies in this country. Jeffis notion that bezos has of being a cheetah pouncing on the weaker companies, he thinks they can have more of a collaboration. Thank you. It is time for the Global Outlook for the second time in a little more than a month to Worlds LargestEyewear Company is looking for a new ceo. The current one is leaving because of the appointment of a board member. And hong kong, police had to get between prodemocracy demonstrators of those demanding that the protests come to an end. The demonstrations have caused massive traffic jams. Turkey has gotten off the sidelines in the fight against islamic state. They will open their military bases to coalition troops. Turkey has been in a size four been criticized for the reluctant to help the coalition. Tomorrow, former white house on why heector thinks the fed has it all wrong with monetary policy. We will also be to the ceo of the cleveland clinic. S arerepared hospital with the growing ebola crisis. That is tomorrow on in the loop. We are coming up on 56 past the hour. Bloomberg televisions only markets. 30 minutes into the trading day, pointing higher in futures. The dow getting hit by a quarter percent. Hit,asdaq giving technology is the drag today on the major averages. Vix, a return to volatility. It was up a whopping 45 last week. We saw the big swings in the market day by day. As now rebounded this morning even as we are seeing stocks going lower. Ir more volatility on joined i am joined by aloliver. What made a difference from the other selloffs we have seen this year . Terms of the size of the s p swings, we have moves of a point and a half or larger. We had gains that were quickly erased. It is very volatile in the market. Having those big swings come play is jostling investors a little bit. We have some strategies reports, and even though no one is changing for his points we say traders be more hesitant to do the by the dip the diplemy the buy mentality that has been in play. Obviously the big thing here is we are pushing the sunset of qe. When you look at todays trading, any swings they might see, it is a holiday in much of the country. Some of the strategist notes i have seen say we could see some volatility within the session because it is thinly traded. There are some people who do not come to work today. The bond market is closed as well. Roleyou look at the volatility is playing right now, it is not just about whether your fundamentally positive or negative but you have to take into account. You have to assess what your play is here. When you previously had a dip, you could buy the sector that got the out beat out. But for a large part, what. And saying to me in the past 48 hours is that they will now be looking at those stocks that going forward. They are not very dependent on the Growth Strategy monday will look at financials. That is going to be even more relevant this week. What are you hearing from folks in terms of what theyre watching this week once with it once we get beyond this day . The daily moving average. The last time we dip below that was november. Thank you. Ahead to the week, more volatility in the store perhaps. Live from bloomberg headquarters in new york, this is market makers. Fasten your seatbelts, it will be a bumpy ride with all that market volatility. Target iskmans next a u. S. Company and they make their trading debut in amsterdam. And achilles heel for hillary clinton, there is some sobering results for the Democratic Front runner. Everybody, its a new week on market makers. I am olist