In the meantime, four dozen people have been cleared at risk for ebola, or they will be today. They had all come in contact with Thomas Duncan, the man who died of the disease. Exposure is being blamed on current protocols. New guidelines are on the way for hospitals. Clearly, when you go into a hospital, having to intubate one of the things is going to be complete covering with no skin showing whatsoever. Thate dallas hospital treated Thomas Duncan says it followed cdc safety procedures. Shares of ibm are down more than 8 premarket. Ibm has been struggling to cope with a shift to cloud computing. The company says it will update projections in january. Earlier ibm says it would pay another companys takeover. Ibm paying global foundries 1. 5 to takeover three years the chipmaking unit. Apple paythe allows shoppers to buy products using their iphones. Apple has signed up banks and credit card issuers of such as mastercard and visa, and it will be going up against paypal. Apples reporting earnings after the bell today. Speaking of ebay, venture recent s market and he says it marks the right time to step down. He has complete confidence in ebays management to handle the split. Emily chang told that every tech company will eventually be split up. They will probably benefit from breaking up. I am involved and i feel so good about both of those moves in this case,ally it is probably getting ahead of what will happen anyway. And a recordbreaking night for peyton manning, who broke that fars nfl record with his 509th career touchdown pass. Forhrew for four touchdowns a win over the San Francisco 49ers. Back to the story on ibm. Big blue is paying global foundries to take over its unprofitable chipmaking unit. Joining us with a look at what this means for the company, is Bloomberg Intelligence semiconductor analyst. Realtimeunique research on injuries. Finally ibm was able to offload this unit. What took them so long . I think the haggling of the price was an issue. There are details of how long r d was going to be continuing with another issue. For ibm, i think the focus now is on Services Going forward. The burden hangover, of the Hardware Division across pcs and servers. Now chipmaking is off the table. ,t is now Going Forward exclusively focusing on software and services, which is what they have claimed they want to be for a long time. Yet their stock is plummeting right now. There were some issues with sales. There was some weakness. That could be a hangover on the companys sales in the near future. In the short term. Again, Going Forward, it brings ibm completely away from hardware, chips, manufacturing. Global foundries, on the other expanding capacity, and it presents a strong number to taiwan, the marketshare leader in that space. This is sort of a winwin for both companies in terms of product positioning and where they want to be. Does this mean ibm is completely out of the chips business . From a manufacturing perspective, yes. There is still some r d exposure, as a result of the 3 billion they are going to spend over the next few years in that space. In the of an option play long term, but in the near term they are completely out of. Anufacturing thank you for joining us. Moving and shaking this hour, yes, it is him. Lon musk starting today, drivers can order teslas model through alibabas Online Shopping mall. Cut down the time it takes to ramp up sales in china by selling directly on the web, and that way he will not have to set up a network of dealerships across the country. Tesla began sales in china last april, and china could be even a bigger market than it is in the u. S. In other corporate news, snap chat rolled out its first advertisements. A 22nd movie trailer for a horror film, as the messaging startup takes its first step toward justifying the 10 billion valuation. I want to bring in paul sweeney of Bloomberg Intelligence, the director of north american research. Also joining us is scott galloway. I will talk to him in a moment about markets. At about mark injuries and about mark and recent. A 10 billion valuation. At some point investors will want to seek a return on that type of investment. Int suggests a big revenue profit stream somewhere down the road. What you are seeing down the road is snap chat dipping their toe into the advertising business. They are not jumping headfirst, but they are dipping their child, trying to put some agent to the product. These are ads dipping their toe, trying to some agent into these products. I wouldsomething characterize because they said they did not want to become totally rude, ok. But at some point they will have to go farther if they want to attract big advertisers to the story. This is a User Experience that advertisers are interested in because it is really the younger demos that may or not may or may not be migrating to some of these Newer Services that are in a good position from a user perspective. They have 700 million snaps every month, so there is definitely the traffic there. You have expressed skepticism about the evaluations of these startups. Do you think snap chat is going into this the right way . I think so. Instagram, who in a subtle way. Advertising. Reportedly for 450 billion dollars to topline. You are also looking at a core hook at a core at a cohort that is very finicky. Is scared toe death of young people, so they will tread lightly here. They are going to tread lightly. Andreesen has had an allout fist fight against carl icahn, but he has finally decided to resign from the ebay board. What do you make of that . I think it is the right move. He has been on the board six years. He is incredibly successful adventure capital. He is often ranked number one by anybody they are now a tier one venture capitalist. They have been incredibly successful. And a public dispute with carl icahn is just a distraction for shareholders that does not serve anybody any good. This is a good thing for shareholders, a good thing for i would not be surprised if we find out several years from now that this is a toe for carl icahn for him calm down. This was appearing as if it sen doing this on his own terms, right, paul . It is. As i said back in the day when this was announced, it is a great transaction for paypal, that it allows paypal to attract and find new business partners, new forms to the existing ebay business, which was intertwined closely with paypal. It is a little less clear at this stage how the ebay platform does benefit, but clearly this is a transaction that probably had to happen. Paul, great to see you. Paul feeney at Bloomberg Intelligence. We will talk a lot more about advertising and all the headlines in tech and media because aol chairman and Ceo Tim Armstrong will be joining me later in this hour. Back to the world news that ebola the world health says nigeria and senegal are now ebola free. But it still affects people mainly in west african countries. Many drug manufacturers are jockeying meeting are for a pharmaceutical position. What is the latest update on the drugs that could treat people with ebola. There are two different categories. Drugs that could treat people and then vaccines. As far as drugs go, there are three main drugs that have beginning a lot of buzz. , and one by tekmira. The three i mentioned earlier are a big deal. Of those three, two are drugs that doctors say are a big deal. Doctors call them the monkey bars. They have been tested on monkeys. Those drugs are made by check mirror and zmapp. And available on a wide scale as well. It is a complicated answer. We are hearing well into 2015. The challenge with monkeys is that they are really hard to make. We are trying to speed up production of zmapp. And then tk m ebola is very limited, the supplies, as far as right now. We do not know about the future, but it will take some time to make them. They have to undergo clinical trials, and once they are fda it proved fda approved, they can be used for the general public. It is hard to scale the production of these drugs, and they are so new they have not been proven on humans yet. What do we know about funding now . Is there extra funding that will be available to the government newinance some of these treatments . Governments around the world are putting money into this fight against ebola. Right now the u. S. Is working vaccine. O to develop a they have started clinical trials. They will be working on these criminal trials both in the u k and in africa. Candidate is shipping some experimental vaccines to africa. Funding is canada is shipping some experimental vaccines to africa. They are willing to find anything that can help at this point. Thank you so much, Shelby Holliday here it we will be speaking with one of those companies rushing to clear vaccinations, already beginning testing them on people. In oh Via Pharmaceuticals will be my guest in a moment. We are starting off another trading week. What a week it was last week. It looks like we may be stabilizing. Equity futures are still down. Ibm is dragging down the markets this morning. Julie hyman has more, as we are on the markets here it are coit is time for futures in focus. We are looking at oil futures, trading higher. That is amid speculation that they dropped too far, too fast. After falling into a bear market and dropping below 80 a barrel, we have seen a rebound. Joining right now is rj of futures senior commodity broker. Bloomberg intelligence provides unique, realtime surveillance on industries. I want to start with you on this will rebound we have seen. We had a note from goldman last week saying there is not in fact the Oil Oversupply that some folks are talking about. Is that with the rebound is about, or are there more technical things driving it . If you love back to the demandsupply dynamic, what you have is a if you go back to hastenant production been added at a pretty solid clip. In 2014 we will probably add another billion barrels a day. Another Million Barrels a day. Returns are acceptable in the 70 range, so even with crude at these levels, at the rebound we have seen, challenges remain. Would you agree with that that we are going to see more supply coming online, and that oil in the longerterm could still be under pressure . It is jumping up to 29 year highs. There is a Global Supply glut, and i think that will continue to improve. Money managers are all caught in a position substantially. Last week we saw Money Managers taking those positions off. Then the short interest. I kind of rally here. We are adding the shortterm positions. Those shorte about positions. Talk to me about what kind of levels you are looking at and how you would trade it. That threeday rally was right above the 83 level. A stop loss near 85 thomas that is going to be your Risk Management there. Rates will probably term back up, in the high 90s, upper level like that. Another plunged down into the 70s. It seems like we do get some buying there. Prices cannot go down forever, so that appears to be a good support level. And a laymans terms, you said you would be selling oil when it reaches 83, so you are risking to bucks you are risking two bucks. But youre really risking 2000. If oil is headed back, your profit could be 4000 or 5,000, depending on how low it goes. I am curious when you talk about the supply equation what is the magic number for oil where you see demand picking back up more meaningfully and you see a better balance . What theou think about producers are rewarded for doing they are rewarded for maintaining that production, rewarded for maintaining that reserve growth. Even with prices at these levels and returns exceeding the 70 range, a book continued to produce it will continue to produce. The supply side is more transparent. Dark a really quick, if we could squeeze in here, what is it . Story of demand and supply balances, the story of too much oil sloshing around. There could be some tightening in the balance is Going Forward. Thank you guys so much for walking us through oil. It is very important as of late. Speak of oil, what about russia . New beef with mcdonalds. The look at the latest crackdown on the fast food giant. You are watching in the loop , live on Bloomberg Television, streaming on your phone. A group of investors in hong kong and abu dhabi reportedly will bid to buy reebok from adidas. For almostht reebok 4 billion back in 2006, breaking up already. Reported its earnings. As its are under pressure shifts its focus to cloud based technology. Is widening its crackdown on mcdonalds. The fast food chain says consumer safety regulators are expecting more are inspecting more than 200 of its restaurants. A Russian Court has closed nine locations. A responseieve it is to western sanctions on russia. Running high,rs doctors and scientists are on the fast track to create a prevents the deadly disease from spreading. Several Biotech Companies have already begun testing their vaccines on people. You know Via Pharmaceuticals is one of them. A look at the stock. It has surged in the face of all the widespread selling. You can imagine why. Inovios president joins us now. How close are you to being able to bring your vaccine to the market . Thank you for inviting me here. It is great to be here. Inovio is working on a vaccine that will go into human testing in the next few months. If that is successful, we could see a fast tracking hopefully of this to the market in the next several months to one year. This still sounds like a long time for those of us in the grips of panic here over ebola. Tell us what is different about your vaccine than the others that are being tested. Inovio pharmaceuticals is a phase3 Oncology Products company, but we feel that our technology had to be applied to help to curb this outbreak. We are using fully synthetic dna basis for our vaccines and therapies. Instead of using conventional virally we just use the genetic codes that encode for an ebola antigen. So this way it can be safely developed and it can be developed more rapidly. That is what we are doing. Does that mean you can manufacture more more quickly, and is it cheaper for you to produce . Also ournufacturing is advantage, as well as the scalability. We can scale to a larger manufacturing scale much quicker. Testing, which was already published about a year and a half ago, we were able to protect 100 of the animals, both guinea pigs and mice, from active lethal exposure to the ebola virus. So we feel very good about the potential of our vaccine. Are you getting any extra funding support right now at all from the government to support these efforts . Vio has received over 15 million in various grants and contracts in the past for other Vaccine Developments. We are in discussions with other agencies to receive funding, perhaps in accordance with our development from various government agencies. But we feel that we had more obligation and scientific obligation to truly apply what could be a game changer in Vaccine Development for ebola, curbing the ebola vaccine. I want to bring in this point. Some of your colleagues in the industry, other executives at companies that are developing vaccines, have criticized the government saying that we could have had a vaccine on the market 10 years earlier if the government had focused on this type of treatment and on this virus. Thet to read for you Washington Free beacon. They did an analysis on government funding and criticized the analysis on government funding. That is quite a statement coming from them. The nih the point that has been funding pet projects and not ebola. Play mondayo morning quarterback, but we are beyond that time. Crisis, weential should put all of our resources together. It is going to take a lot of coordination between various industry groups, companies, and ngos to help to curb this current outbreak. We can have criticisms, and analyses after this out week is gone, but what we are doing is applying our resources to develop these new products to help to curb the outbreak. Thank you for joining us. And ebola News Conference is happening right now but Dallas County judge and mayor are giving up leads on the ebola situation in dallas. After texass Health Officials cleared 43 people. In the meantime, the new ebola czar gets to work this week. Face . Ill he t as we mentioned, snapcha rolled out its first movie advertising platform, as it takes its first steps toward justifying that 10 billion valuation. According to snapchat, users will receive occasional ads in the recent updates section. Users can choose if they want to watch it. I want to focus on different ways to bring adds to the viewer. I am sure advertising and different ways to deliver advertising is going to be a big topic for you. Great to have you on this morning. I know you do not like to comment on other peoples strategies, but what do you make of their entrance into advertising . , i amis great to see you excited to be a techcrunch at techcrunch. 8 of global media participation is happening online, but only a little bit of spending. That gap is worth tens of millions of dollars. The more people who put the pressure in the online ad space, i think they will win. We have grown for six quarters in a row, top and bottom line. Snapchat getting in, other people getting in, there is a huge opportunity in this is mis business. The lingering question, as you have more platforms for advertisers, is that going to bring rates down, and squeeze margins . As you know, we have focused on premium advertising and premium content brands and for ourvideo advertising great our cost per at has been going up. We have done a very good job managing our yield by giving advertisers great results. I think from where we sit right are 200 companies and ad tech. What is going to get down to 2040 companies, and then it will be down to 1020. Aol sits in the top 10 companies, we plan on rolling out a lot of things to stay ahead of the marketplace next year. Competition brings out the best in our company, and i think there is a lot of innovation left. It is a huge industry. We had the people at founders for him here in New York Forum here in new york last week. I know you are at techcrunch europe, and youre speaking about creating jobs and the Tech Industry there. I am surprised why some of the numbers that shows that in london there are more Financial Technology jobs being created in london than even new york now. Somet me do you statistics. The company has had 407 companies participate in battlefield over the years. In the last four years in the u. K. , there have been 500,000 Technology Companies registered, that is 10. 9 of the jobs in the u. K. , mainly around startups. One of the only areas that is growing for new jobs is started. There are 1800 people here today if you look a high me. We do these events and china will do them in the u. S. , california, San Francisco, new york, this is one of the highest Energy Events i have ever been to. The notion that europe is not doing over well overall as an economy, tech has a lot of Energy Behind it. There are some great entrepreneurs here. Quite speaking of technology, we have seen a fair share of split ups, but now there is a lot of talk about mergers. Afteroard has been marissa mayer, saying she should split yahoo up and urge part of the company with aol. What is your thought . When you hear those types of rumors floating around, it is because we are doing very well as a company. We took the worst merger in history, and we have come back six quarters in a row now. Is, we are a company that is a great size company, we are 40 headcount roughly smaller than when we spot off from time warner. We are one of the singular companies that has kept headcount down while we use the future of the internet to propel the company. Id that is why you hear people talk about our company now overall. Not have any specific comments to make a by yahoo , but i have a lot to say about aol and our global teletubbies which is very strong. Im very excited for 2015. You have rebuilt aol. And as you say, i know that star d tried to come after you a few years ago, and they failed in a proxy vote. To your credit, it does look like an attractive target. Have you had any discussions with yahoo , have you talked all . This board at we have had a policy inside the company which is to focus on our operations. Ol,you look back at al and the struggles we had to go through to turn the company around, we would have never been here any other way. The agenda for the Board Meeting tonight is transformation, how do we take the next steps as a company . I am going to beginning a presentation, and there is no mention of yahoo . Always great to speak with you. You have been forthright about all the questions i have asked. Up, most ceos and cfos are cut from different cloth. Now that is shown in their educational background. And amazon brings his Delivery Service to the big apple. There has been a sea change in several see suites as of late. Csuites as of late. Is rooting to be it ister for ceos proving to be no better for ceos. What is going on . We recently looked into the turnover, and background of americas corporate leaders. And the managing director who led the study joins me now. Rather than rising coming to see the number of ceos turning over actually declining through the end of the year. That is right. We think the number of ceos from l turnover standpoint wil decline, while the clos will coos will begin to turnover. Ceos are taking on those responsibilities, and that could be a good thing or a bad thing. A good thing in the mind of the board. The ceos will traditionally now become more of an operating role. A bad thing in the mind of a ceo , because the Strategic Initiatives that they were once so involved that are being evened out to other members of the suite. What have you made of the recent slate of ceos that have had to step down . There are a variety of reasons, but is very common theme . Activists are playing heavily in this market. I think this turnover is going to continue at least for a little while. We seem to be evening out a little bit, but activists play a huge role. I thought this was interesting. You did other research in your study. One of the things you found consistently is that ceos come es,m ivy league universiti and coos come from the big ten schools. And cfos. We have noticed that. Cfos, we have about 80 in our study that come from the big 10, schools like illinois, indiana, wisconsin, with accounting and financing programs. On generalo focus management and consumer facing degrees. They have wonderful talent on that side. Big ten schools lead by a huge margin for accounting. Were talking about technology this morning. These Big Tech Companies have been out with their diversity reports, and theyre pretty dismal. In the c suite there is more diversity in texan you find in in tech then you find in any other part of the country . And any other industry. Indian asian demographics, hispanic demographics, and there are more ceos in that demographic in the Technology Industry today from microsoft, adobe, juniper, then there are any other industry. That is a small sample set. We have seven or eight listed, opposed to the four or five in manufacturing and health care sectors. Technology does outpace those sectors from a totality of diversity. Thank you for joining us. And cfos. Y on ceos coming up, the view from the top. One it costs to live almost 1400 feet up. And elon musk has found a way to dealerships in china. He is selling on alibaba. Today tesla will begin selling its luxury electric cars on alibabas site for anyone who is willing down to put down 8,200. They are trying to reach buyers on chinas main level. Jamie covers the Auto Industry for bloomberg. It seems like a little bit of a surprise. The automakers there are selling mainstream brand like chevrolet, and it is not at least selling there. It is not their normal portion, these are luxury retailers. This is a defensive move. If alibaba is going to become the portal to the internet for chinese consumers, he is going to want to have a space there because china is a super important market for tesla. He sees that is becoming their biggest market as it is for the rest of the industry. Do we know if this is going tesla from actually building their own stores in china . It would not seem so. It seems like that is part of the defense o blade to make sure that they are in the online mall. Years of hundred selling cars and having dealers being treated shabbily. You do not have that in china. They are going to want to pick out exactly what they want, and have it the way they want it. Cars are prepackaged and put it out there like an ebay right now. Have generaluccess motors and volkswagen have silently these cars on the mall . Selling these cars on the mall . Motors sells more cars in china and that it does the u. S. A is about 4 million year. Like to goverywhere kick the tires, see the car, get in, and say this is the car i am buying. The consumers and china are largely the same. I do not think i could buy a car online only. Thank you for joining us. Bloomberg big number, 95 million. That is what it will cost to buy the penthouse in the tallest residential building in the western hemisphere. Stories tall, almost 1400 feet. That is higher than the empire state building. You can only imagine the amenities yard walltowall marble, a wine cellar, and those 10 foot windows to breathtaking views of manhattan. Bloomberg television is on the markets. Y futures are climbing back from the lows of the session. The speed of the selling was what scared investors. We are on the markets again in 30 minutes. Amountion, that is the wiped off of the Berkshire Hathaway stake things to a rough quarter thanks to a rough quarter. Welcome back to in the loop. Heres a look at our top stories this morning. Futures indicate that stocks will be mixed at the open. Shares have lost ground for four weeks in the row. Organizationlth the clearing victory on one front in the war against ebola. The who says that nigeria is now ebola free. Seven people there have died from this disease. Transmitted by a and man who traveled there in july. New guidelines will still be issued. You have to be completely covered, the protocol will be finalized soon. Complete covering, no skip showing whatsoever. Good news for the dozens of people who helped to clear that dallas, they in have either been cleared of the disease or will be today. Heio draghi says the plans to expand the banks Balance Sheets to stave off inflation in the euro area. Mark andreessen says it is time to say goodbye to ebay. The Company Announced plans to spin off the paypal unit. He has complete confidence can emails ability choose what the company in ebay possibility to spin off the company. I feel so good, i am involved at hp and ebay, and i feel good about those moves because an case it is getting ahead of what is going on. Shares down after the company says it will no longer regions 2015 course. Being heard i the shifting cloud computing. They saw a marked slowdown in sales last month. At the same time, they are unloading their moneylosing p making business and we want to count you down to the open with the top 10 headlines that are hitting our radar before the valve. Before the bell. Lets start with ebola. More specifically about the companies that are jockeying for positions of profit in this global fight against the disease. Usile pharmaceuticals told about their timeline for the vaccine. Theyre working on a vaccine that would go into testing in the next two months few months. Hopefully we could see a fast the work inthis to the row months to a year. Tracking in their world is six months to a year, which could not come soon enough for some people. What you have to think about it is that nigeria is ebola free. Which is good news. They have been very savvy in the Tech Industry. They have been able to track it will meditation from the first index case. This is a step in the right direction. Who knew it would affect the markets the way it did last week. Tumblr. Ine, popularliances with Television Shows going to help verizons growth. Tumblr the reason why hy starboard is a yahoo saying they need to let up. Split up. What they are doing is questioning her strategy of tying all of these other together. Twitter had a really good and easier time to convince these advertisers and tv studios to create the links as energy, because people are watching tv same time. Ter at the and watching your snapchat feed. Ad, roll out their first for a movie. They are trying to say on their blog that we need to make money. Were not going to be totally rude. I love the fact that they said they cannot be rude, because you did not hear twitter or facebook say that. They are not actually mining the user data, unlike facebook and twitter. But isnt that the whole fitness model of advertising . Can selln you expensive ads because it is targeted. Quite where are you going to put it then . About sponsored content, which is one of the big big revenue drivers revenue drivers. Advertising, whether we like it or not for users is here tuesday. To stay. M a deals at their highest since 2008. As we have been saying, this is all thanks to jack lew who broke up a bunch of deals here. I think this story is a little bit overblown. These were financially structured to have tax deals. These were not value ceosuctive deals because side chance to really make a place for a constructive market. There was cheesy topline growth and it was about taxes. And the markets are having their own version of whether or not theyre going off of the cliff as well. Public inhoo did go london last week, and has gone up 3 . Perhaps the Capital Markets are more stable than this headline. Thet could be easier after transition and some of these companies. Mcdonalds under the spotlight. Into hundred around the country. The mcdonalds in question square risk in square has shut its doors. This comes after the food ban import. I think this is clearly political retaliate. Ion. Story from mcdonalds that is closer to home, apparently there dollar menu dollarre not a anymore. Their prices of 3 since the end of june. The burgers are getting more expensive. Inflation in the economy. Coming up, we continue our countdown with a deep deep diveamazon into amazon. To countdown to the opening bell. We are now halfway through, which means it is time for a deep dive into number of five. Amazon launching same day Delivery Service in new york on friday. Aggressivelyn pursuing a cut of the 600 billion grocery industry. Fresh direct from the citys leading Online Grocery. How do they feel about this . Ceo jason is and joining me. Great to see you. How do you feel like jeff about jeff bezos on your territory . We are not surprised but a lot of layers are going to try to enter the industry. When you say early adoption, that is super early. You look at the 600 billion, only 1 this actually Online Grocery orders. Nationally, that is right. Any otherpare it to consumable, it is the lowest of all, and it is the single largest industry. Knowing that amazon will come into your territory, have you done anything different . Our strategy has always been the same, to focus on fresh. We have always been the best in fresh. Theres dreaded you would be to price cut you on prices. We are extremely competitive and our supply chain is extremely extensive. Give you drill down deeper into that . Give me a sense of how competitive you are with rice line. With the price line. We do not know where they will price the commodities, but were credited with all of the local grocery stores. Do you do same day delivery . We currently do not. What is your sense . Is it too expensive to get into it . Timee consumers over you are going to demand it. Youve to find a way to do it economically that matches the way they want. Customers actually do not want to pay a premium for same day delivery. Faye expect that they will get their groceries for everything they expect they will get their groceries for the same amount. Is there a possibility to do that . But we cannot talk about it. What about apple pay . How important will not be for your customers . Will that be for your customers . Make ourselves available to any way our customers want to pay. We have a very loyal base. We will be signed onto it. Are you going to do same day delivery . May be in the next year. We will find out. Thank you for joining us. Markg up, andreessen calls it one of his jobs. A breakup of a huge company. Loop. Come back to in the we will get back to bringing you the most important stories you need to know before the bell. Number four as apple, we have freshiscussing with the direct ceo, that apple pay is starting today. They say they are not on apple yet, but they will be because the customers are demanding it. Hit billions ofd dollars, so this is a important play. Theyjohn donahoe says will split into two companies, there will be a lot of cash on the books which will make apple pay varies very. Scary. You wonder if it is going to be one company that wins. Beare says they will compatible with apple pay, there is google wallet, in a lot of different people are coming at this issue of global payments. The advantage that apple pay has is that they have users accounts. And that logic works very well for people as well paypal as well. Bloomberg lp is an investor in the Capital Funds of andreessen horowitz. He is stepping down. Carl icahn and him had a very contentious relationship. Carl icahn was pushing for these companies to split. A big twitter field. Eud. He called him an evil captain kirk. As you say, it seems about time for Marc Andreessen to step down. Gracie has eager and Better Things to worry about. With emily chang he talked about how his future is outside of ebay. Adidas is jumping on this report that a group of investors plan to stay in about 2. 2 billion for the reebok unit. The story has been nike and under armour. Can the Parent Company ever let rival competitors really rise up to compete . I cannot think of an example where that has turned out well. But this company was acquired back in 2006. I think nike is facing a lot of competition from these smaller players were you can go online and make your own 10 issue. Tennis shoe. We can make a really great outfit. Storyer armour is the here. As we near the opening bell, it Bloomberg Television is on the markets. We will give you a final check ere futures are trading right before the bell. Welcome back to it i want to get you back to the most important stories. Ibm is our number one story. Warren buffett is having a bad day this monday. His shares take a hit in ibm. They are plunging in the premarket. He has about a billion dollar paper loss, the stock fall down about 8 after they came out with not just disappointing thirdquarter results, but the big disappointment was they have to take back their forecast after selling their chip unit. Day for ibm, and Warren Buffett your pal. A buying opportunity. All the Tech Companies are going to have to shake up. Chips is a business that intel dominates. It is a sign of the times that they will shift into the cloud. What strategic advantage does ibm have in clouds that microsoft does not . This is just them saying that they will not hit fourthquarter targets or 2015 targets because it is not so good on the books. Ibm is not factoring into that line anymore. About orone talking questioning the leadership right now . This was a big bet for her. A fiveyear plan to boost revenue. So to go back on that plan four years in she has Warren Buffett backing g. She took too long. Kickoff, i want to bring in the chief equity strategist at wells fargo funds management. He says that after last week these are bold market corrections. They are rapid, brutal. Slowly. Kets start off so you say this is a good case that we are in a bull market. Take the market changing of minds. That we start off completely complacent and end up doubting everything. We have to have that changed to give 40 . When you start off like we did the last couple of weeks, things can be different. But usually means we do not have a deeply embedded complacency. News like ibm is not a positive key factorsuse the you need things to be rising. Is that a false sense of security that the fed will be there no matter what . It is like having lifeboats on a ship, you hope you do not need them, but it is nice to have them there. I do not think the fed cares about having them there. The fed is watching out for the economy, and we are a thermostat for the economy to reflect what is going on. The fed has been using the life was the past couple years. Do you want to be a Warren Buffett and be greedy, or be in the sidelines . I would rather be in than out. But i do not want to be all the way one way or another. There is not an incredible appetite for stocks that there was in 2012 at 2013. He did not go up in january. That is not a huge thing, but i do think that rationally and call way, which is what i tried to be when i get scared, is that the fed is going to be there. No sign that the rulings of the rollings coming over. Of market cap about 4 from last year, it looks pretty good. It seems like people are individually picking the names. I look in a forward earnings number. That line has been rising, and has been rising continuously since 2010 and late 2009. The pe is around 15 tons, and in years, profitability has been high. Earnings start to falter. Maybe i should use another benchmark. As long as the earnings numbers is going up, that metric is ok. So far it looks good. Do you think we can go another 10 percent or 15 down . Anything can happen. I will be surprised if it happens. There are a lot of bad things that could happen in the world. It could get worse before it gets better. Seemed to be happening with these markets is right around lunch time you see this post, whether it is based on economic data, or someone making the earnings call, it is hard to tell. I have a question about oil. The move in oil has been stunning. It has bounced back a little bit, trading at about 82. 5 per barrel. What does this impact have on your portfolio . It is going to have a build up. To go much slower were going to have issues. We have isis and all of these other things going on. I think there is a lot of hydrocarbons that we are finding out in scranton pennsylvania. That helps the consumer. That is a plus for industry in the united states. Cost for going down. Costs are going down. Ishave a dichotomy, the u. S. Doing well, the rest of the world is not. I think they come to us rather than the other way around. Thank you. Chief manager of the strategy markets. The s p lower by a marginal amount. We will have much more on the markets and the ebola crisis. Thes presidency bowls are. Etting to work this week the World Health Organization has declared nigeria in full of free this morning. The Officials Say that this is a spectacular Success Story that shows the world that ebola can be contained. What can we learn from nigerias victory . The new ebola czar start work this week. Were joined by michael brown, he is a former emergency official at fema. What is the work that is laid out . To crisis comes management, the first thing he is going to have to do is to lay out what is his authority. You have the cdc, and then you have health and Human Services who has an assistant secretary whose job is respond to biological crises in the country. Secretary of health and Human Services. Youre going to have to establish shortterm, so just. Speak. So justo there just to represent the president , or to manage communication . Think about the statutory authorities. Haveelt he and dr. Frieden specific statutory authorities and they report to the secondary ,f health and Human Services who also has an assistant secretary who is supposed to be doing these ink. So it raises the question of what authority does the socalled sta czar have . Of time you are in the midst a crisis and you throw in additional bureaucracy, which is the way d. C. Works, it will become more confused. The president needs to step up and give the Job Description and explain what he is doing. A Bloomberg View column from says that whatd, obama should have thought was a commanding figure that could cut through bureaucracy, manage tens of thousands of people, and counter political irresponsibility. He feels he should have appointed david petraeus. Find that fascinating. I know general betray us, he is a great guy, and he knows how to do those things. The question would then be, would people be raising the issue . I do not think you have to be a medical doctor if youre going to organize things. You have to be a management person. So that question would go away. Petraeus, was general what authority would he have . Thepeaking on behalf of president , and did the president give him this authority . Is thestion is, who person, and what can he do, and what is he supposed to be doing . Ofaside from the questions authority, what about our own emergency procedures . Any now are we only getting close from the cdc that maybe they need to revamp their protocols and dealing with the ball up. Who takes the role on this . Think aboutneeds to this. In 2004, Congress Passed bio and they put a ton of money in getting the country ready to repair for bio attacks and bio threats. They created an assistant secretary whose job is to help respond to coordinate all of this. Congress needs to ask what have you done with all that money . The assistantb of secretary, what have we accomplished, and who is making the roles . Ules . It raises the question of all of this money we have spent, and hasnt been spent effectively and has it been spent effectively . What does it take for this country to become a bowl of free ebola free . What does that mean . If the United Kingdom has done, france has done it, even other countries within western parts of africa have restricted the flow of travel between and among their countries, they know that first and foremost that is what you have to do. I think if we do that, and we make sure that we are spending money on bio research for the right things we will be on the right track. Until then we are flapping around i am afraid. Thank you for joining us. Lets get you caught up on some of the top tech stories on our bloomberg west radar. Falling for the fifth straight , chinas government has ordered mobilephone charis to reduce subsidies carriers to reduce subsidies. This morning we had a chance to ask the aol chairman if he would be considering a deal with the yahoo . A Board Meeting tonight, and i can tell you what is on the agenda. That agenda is transformation, how do we take the next step operationally as a company, and im giving the born a presentation. There is not the one mention of yahoo or anyone else. Not one mention at all. We will check all of the latest attack and media of tech and media on bloomberg west. Erik schatzker is here ahead of his program. Youre talking with someone who because we will have a 10 decline. Imagine if you got in an elevator and had no idea if it were going up or down. That is i where investors are right now. Bob says that the elevator is going down. He says that investors are going to want to take more risk off the table, and that treasuries could test 1. 5 before they test 3 . There is at least a 5050 chance that we will get Something Like qe4 out of the fed. And oft a delay to the thetaper end of hte taper. Could we be talking about qe 10 in 10 years . I dont think so. He predicted a correction within the next three to four weeks, so his timing was impeccable. What he did not see was the magnitude of the drop. Stocks went down more than 7 . He did not see the persistence of uncertainty. He thought it might be a buying opportunity because he anticipated that mario draghi would step in with quantitative easing. Now is where is investors risk appetite, and at what point does it make sense to go back in . What is scary about this recent decline is that it was we were of vague why declining. Maybe we thought it was ebola, we could, but at least say in 2007 at 2008 that you know exactly what was going on. It was because of the subprime mortgage crisis. You could point to specific factors about why it tanked. Is why may be, technicals are a better way to measure the markets and some of the fundamental act relations that we are constantly looking for. B said he and no expectation that the s p 500 would and above above where they were, and they did not. Still ahead, speaking about markets, the ecb is beginning its active lying program buying program. Time now for the global outlook. Nigerias now ebola free. All agencies in the end i ebola fought together. In dallas, 43 people have been cleared of risk. Stepping up efforts to keep a syrian town from being overrun by islamic state. They have also stepped up airstrikes on targets in the area. The ecb just lots of french and spanish bonds. Spend upwilling to to 1. 3 trillion to stave off inflation. Tomorrow, find out where he is putting his money, and what is ahead in the political arena ahead of the elections. That is all at 8 00 a. M. Eastern. It is 56 minutes past the hour, we are on the markets. We are 30 minutes into the trading day. All of theweek volatility, all of the declines, all of this handwringing about , stocks arefrom now not much changed, but it depends on which of the benchmarks you are looking at. Down, the nasdaq up, but the dow was down. Theres a little bit of stabilization, but perhaps a decision being made in the markets. For more on what investors should be watching, and what is going on today i am joined by our stocks editor. Lets talk about what were seeing today with the dow falling so much more than the other averages. What is going on . Remember that the dow was an old average and it is still weighted by share rise. Any company with high share price can have an outsized impact on its end. Ibm was out today basically saying were not going to meet their earnings forecast for 2015. That is having an oversized impact on the value. Energy and consumer shares are up, so it seems like things are stabilizing. The dow at the moment is an outlier because of ibm. Was outperforming the s p 500, and i saw some commentary that said that that may bring about less downside. What do you make of this . That is certainly a good sign. Small caps had been underperforming for most of the year. A lot of people view them as more of a gauge for appetite for risk and that was troubling to a lot of people. Obey like to see small caps confirming records in the s p 500. The small cap gauge was outperforming, so there was a long speculation about why. That might have been part of it. But a lot of people were saying that it was a shortterm bottom and a little more confidence. We have not had that classic direction, a 10 decline from highs where down about 7 from the highs, we are currently about 7 . In some degree it is no mans land. Aing three years without correction has made people nervous. A dime lasturned on year, and said that bottom on the s p 500. So the question is that the bottom . So the opinions are divided, some people thinking that we will retest that. And get into an elevator, you do not know if it is going up or down. Ist is what this morning like. We going in all directions at once. Thank you so much. We will be on the markets in 30 minutes. Market makers is next. A think that last week was cut from the stock market . You have not seen anything yet. Dropbout another 50 before the end of november . The squeeze, energy companies, did they really get hurt when Oil Prices Fell . We will be speaking with the former president of shell oil. Cutting the cord, do they want to make it easier for you . What does this mean for cable and satellite