Hickox says the actions against her were politics, not science. She says new Jersey Governor Chris Christie was see was being dishonest when she called when he called her quarantine necessary and she has much on any symptoms of ebola and is now at her home in maine. I understand that the community has been through a lot in the past week. I apologize to them for that. I will not go into town and be in crowded public places. I have had a few friends come visit me in my home and that is absolutely fantastic. A judge in maine rejected her request by state officials to quarantine her. One of the Worlds LargestAdvertising Companies is making a big push into digital. The french firm has agreed to pay 3. 7 billion forsabient based here in boston. The Companies Say they have agreed to build a joint platform. The European Airline is flying high. Ryanair upgraded its profit for the second time this year. Any slowdown in the economy could push travelers in its direction. The ceo also said lower fuel prices are helping. Fuel is helping at the moment. Oil prices are falling and we are hedged to march 16, about 93 per barrel. By raising load factors which have been taken up four percent, it spreads the unit cost across more passengers and thats the key to is lowering our unit cost. They hope to return to profit after losing money in its last fiscal year. It was the wind and not the runners that set the record of a new york city marathon. The wind was blowing 35 miles per hour. One. Yan kenyan pulled away in the home stretch. With octoberut sales, up 22 . Thats go over to matt miller. Its the 55th consecutive month of rising sales for chrysler. Is listed on the New York Stock Exchange and beat analyst estimates. They sold over 170,000 vehicles in the month of october. The really interesting thing to focus in on is the game at jeep, over 50 sales growth for the jeep brand come the best ever october the that brent. It is these lower gas prices that are helping yet chrysler so mort jeeves and helping Companies Across the Automotive Industry so mort suvs especially the small crossovers but also the bigger ones. Gas is down to 2. 50 in some places. People at the pump are thinking maybe they can afford to buy an suv in some instead of a small car. Cheers a small cars are falling. I will look into this release and see if i can find any hands of the fiat 500 losing ground. Suvs and jeeps and chryslers are doing quite well. The gas does are gaining speed. Our election day is finally here and control of congress and 36 governorships are on the line in tomorrows election. Republicans are feeling pretty good. They seem to be gaining momentum. Peter cook has the latest on the race. How nervous are democrats right now . They are very nervous. What we see now is a late push by republicans. It has added to the hostile environment that democrats are already facing going into this election and are dealing with an unpopular president. Americans are still worried about the economy despite signs of recent improvements and add the ebola scare and the Islamic State and the arab insurgency around this election time and its been difficult challenge for democrats. We see that play out in the final weekend of this campaign. The momentum is clearly with republicans. In iowa, the republican is up 17 points which is a big blow to democrats. Toy were counting on braley pull out a victory in iowa. Iskentucky, Mitch Mcconnell hoping to become the majority leader. It has been a tight race there. The latest poll, nine point advantage. Its a challenging and firemen and he looks safer as he is poised to become the Senate Majority leader. And youve got the state of georgia, the democrats best hope to still a republican seat. Has run outn really Good Campaign but she is trailing by four points. Democrats really have to play a perfect hand of fate can control the u. S. Senate. It is a daunting challenge. It looks like it is too close to call right now. Republicans need a net gain of six senate seats, which ones are looking most likely . Victoryasiest path for includes going through montana, west virginia, and south dakota. These are three states that him locked up or republicans for a while. Every poll indicates they will take those seats. The next best bet in terms of getting that magic number is iowa, and probably colorado. Candidate has been leading consistently. It has been a tight race and that has been a good race and that would be a big blow for democrats. Louisiana is the category of likely to flip to republicans. Democrat Mary Landrieu is taught is trying to survive in a very red state. It may only get decided after a runoff in december in louisiana and georgia and the same thing when i get decided until a january runoff and there is still a possibility we will finish election day and still not know who has control of the u. S. Senate. If republicans take control of the Senate Finally for the first time in nearly a decade, how will the white house respond . Its tough decisions for this white house. We will see either confrontation at every turn or maybe just the possibility of compromise in some key areas. People have talked about business tax reform, trade, infrastructure where there is Common Ground to the white house and congressional republicans. Come first test could after the election will president obama deliver on his promise to issue that executive order easing deportations were some undocumented immigrants in this country. If he does that, it could poison the well right away and signal these final two years of his presidency could be marked by confrontation. We will have to wait and see but the white house has some decisions on a on its hands if republicans to control the senate. When the polls start to close tomorrow, we will start the bloomberg all it takes election all nighter. For covers for races across the u. S. Starting at 7 p. M. Eastern going on all night. Billionaire Richard Branson says he will slow his quest for space space durham tourism after the crash of his first flight. Has aral investigators too early to draw conclusions about why the ship rock apart killing the copilot and seriously injuring the pilot. We are a long way from finding cause. We still have months and months of investigation to do and a lot we dont know. We have extensive data sources to go through. This was the second accident in just a week involving a private spacecraft after an unmanned supply rocket from orbital science exploded seconds after liftoff. All of this mean for the upandcoming space to remit Space Tourism industry. The tragic events raises questions about the viability of Space Tourism but also what will happen from here on out. Analyst and space he said because we are talking about Richard Branson having this huge issue, that is going to essentially set back the industry 13 years. He is more optimistic than another analyst who says his industry will get set back 35 years. Regardless, some issues need to be ironed out like safety standards. Number two, more tests need to be done. This is just the fourth time the Virgin Atlantic flight was tested. It was due to go up in spring of next year but there needs to be more mixers of fuel and inspection of systems. Richard branson and 2010 said he might be flying in orbit with his son by 2012 and i spoke to them then and he said they would do it by the end of 2013. It was not just his ambition to travel in space, he thought it would be a game changer for the whole commercial air travel industry. Take a listen be the start. There could be 70 people from Great Britain to australia mets three or four hours. For years, he has said this we done october, 2012 and now the tragic accident on friday pushes that horizon back further. Who are some of the other players and who is leading the pack . He the pioneer and as a result, 800 willing people believe in his mission to put people in space and he has collected close to 80 million as a result. Players include export aerospace. It will be interesting to see who maintains the number two could because number one be versioned galactic but if you look at export aerospace, they have done some test flights but there is not much of a track record as of yet. They have not given a time table and the issue is funding because they are not funded by billionaires. And they are not selling tickets yet. Yes, no one has given a clear timetable. Sierra nevada is working on their version called the dream chaser. They did not get a contract from nasa a couple of months ago but they have met all of the requirements. This is probably one of the safest. They have done several tests. You have a blue origin which is backed by jeff bezos. A lowcost option into amazon style. It looks like the industry is going to take a hit. After the tragic accident, regulators will likely get a call which could affect things. That is a good thing. Safety is of the utmost importance. Of course, thank you so much. Moving and shaking this hour, Billionaire Hedge Fund manager david einhorn, his company gained more than two percent of his Main Hedge Fund last month as his peers were losing money because of market volatility. The Greenlight Fund is up almost five percent this year. The hfr Global Hedge Fund yearx is down this and they plan to accept more money new money for the first time in two years. Coming up, online retailers are bracing for the surge, Holiday Shoppers are expected to by 13 more on the web than they did a year ago. Branson spacehard ship to crash and investigators say will be month before we know and we will talk with a former astronaut from nasa, mark kelly. Rolling backare the christmas kickoff amazon started offering a series of daily deals and walmart slashed prices or roll them back on 20,000 items moving up the usual kickoff day by nearly a month. I want to bring in marketelwood where he explores american shopping habits. Good morning and thank you for joining us. To bes a good idea marking down all of your merchandise so far in advance . For the shoppers, is thrilling. 40 off but for retailers, its called a price war because there are casualties. Doing at this early in advance of christmas i think shows they are really scared. It certainly does rate of desperation. Rita of desperation. Black friday was the day when retailers went to the black and became profitable. Isnt there a risk that they will cannibalize themselves . Thats a great point but the risk is that we are chemically programmed to respond to discounts. Dopamine i call buyagra. Once you try your the dopamine with the deals, it means more and more deals and more often to get that going. Its a vicious circle. That will eat into their bottom line at some point. How do the discounts stack up . I went out to walmartcom and i gearh for disney frozen and i found thanks. The dolls were rolled back at walmart. Itwhen walmart announced would price match with amazon which is a huge deal there were rumors going around that that will be a formal announcement, the irony is that walmart. Com was already 17 cheaper than amazon anyway. Walmart is saying we will price match but is more of a pr stunt. I would start with walmart before i go to amazon. Back to the idea ofbuyagra, we had the ceo of guilt and this is the man who pioneered the flash cell model whicl. Are consumers suffering in the United States. Is big fundamental challenge that it is never executed online as good as amazon. When they grow another 20 billion, is another knife cut into the walmart longterm strategy i dont think they will turn that around. There is a little bit of fatigue over flashy sales. What will it take to turn shoppers on . The problem with flash sales is that they are just malls online. Guilt, one of my sources tilde 40 of its merchandise is specially made for guilt. That means youre not really getting anything that was originally expensive. Youre getting knockoffs. Tilt has bad return policies and its hard to get a refund. I would rather go to a local outlet mall where i can take things back. A day out at and the outlet mall. There was a lot of disappointment laster because many thousands of presence never mated underneath the Christmas Tree because everybody waited until december 23 to take advantage of free overnight shipping. There was bad weather and perhaps there was not enough staff at ups and fedex. Have we learned any lessons from last year . I hope so. The simple thing to do is not to wait till just before christmas but go to a Sales Associate and go to Customer Service online and ask for discounts in advance. I think you will find that they are imperative give you some great deals before they advertise. You can currently snag that 11 power deal a few weeks in advance and not worry about the shipping. Also retailers are trying to promote instore pickup because they get rid of that cost of distribution and shipping. Any big comparisons between what will be different this year versus last year . We are just going to see more migration online. Costco said they will not be open on thanksgiving. That is telling us is everything is shifting online. Perhaps the stores will not be open on thanksgiving but its encouraging people to check the digital channel. Its all digital. If everybody is moving up these discounts, do those terms mean anything anymore . I think cyber monday will go away because that was really an invention on the back of black friday. Always lack freddie will be a popculture moment but if you want online deals, you will cook with turkey and have your laptop next to you. Thank you so much. We appreciate your time. Still to come, falling gas prices and rising car sales, is there any connection . We get the latest figures from the big automakers coming up in five minutes. Good morning, this is in the loop, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com. I am Olivia Sterns in for betty liu. 13 years after the terrorist attacks of september 11, 2000 one, the World Trade Center is open for business again. World trade center 1, 104 stories officially opens today. Conde nast will be the First Company to move into the building which is the tallest in the country. A former bank of america employee has been charged with the murder of two women in hong kong. U. K. National work at the banks Merrill Lynch unit since july of last year. He faces life in prison if convicted. The murders occurred almost 11 after anotheray employee was killed. October was a strong month for automobile sales. Nissan and chrysler Beat Estimates. Nissan reported 13 increase. Crossover fell. A similar story at chrysler, overall sales were up 22 versus estimates of 20 . Truck sales rose 28 but car sales were up only four percent. People are really buying the gas guzzlers. On the markets Bloomberg Television is. Time for futures and focus gold futures are trading near a fouryear low this morning. The precious metal capped its first monthly declines of the year last week. Joining me with a look at what is pushing down the present gold and how you can make money off of this move to the low side lets bring in greg bender and craig hurwitz. Greg, what is behind this selloff . Take all the headlines and you combine them together its all about the dollar. The dollar going higher is better for gold and commodities. On top of that is a strong start market and disinflation and wage growth and oil these are combining to give an offer to gold. Youre also referring to the fact that the fed stopped quantitative easing at the same time you have the bank of japan saying they will start buying assets and make a move toward japanese bonds to equity and that pushed down the yen which helped the dollar and that is what gold is where it is. It was almost like timed perfectly and traders have been focused on a pattern the gold market back to june, 2013. 1180 1200his support level but when it bounces off of that, it has been weaker and weaker. Last week we had the first close before that support levels of the trend followers will be looking to sell gold looking for lower prices, maybe as low as 1000. One of the followers is todd horwitz. How . Would you be treating gold now agree withning, i everything greg said. He is 100 correct. Ofver, the short side the boat is getting full. As a traitor, im looking for a bounce a little over four year lows. I think we will get some sort of Short Covering rally. He the jobs number this week and mario draghi speaking this week so i am looking for a nice bounce off of this 1170 level. Below 11 60s the most recent low. I think weve got a good chance to run back to 121250. Other than that, the trend is lower but as a traitor come im looking for a quick bounce i think we can make a quick score by ingold at about 1170. Were looking to move back toward 1200. Let me get this straight you say you will be a buyer of gold at the current price which is about 1170 per ounce. Youre expecting it to rally and get back to about 1200 which is a profit of 30. Since gold trays and contracts of 100 ounces, you are saying youll be making a profit of close to 3000. Time for a little pop quiz the word of the week this week is Commodity Trading advisor. Can i call itcta . Thats whats known as in the business and a commodity trader advisor is like a Financial Advisor except for commodities and not stocks or bonds. Do islly what ctas manage money and managed futures accounts. They have a bunch of different strategies they employ. , shortuld be technical golden long coffee, or they could be fundamental where they specialize in one sector or another like energy or Precious Metals. I feel so much smarter. I learned a new term as well as new trend, my thanks to you. Again in the markets 30 minutes. Republicans are feeling good about tomorrows midterm wartions but that clinton room veteran says why the gop should not celebrate just yet. Plus, 400 Million People around the globe suffer from diabetes and we will hear from the ceo of the Worlds Largest insulin maker. Its election day tomorrow and republicans are confident they can take control of the senate. Joining me now is someone who feels the opposite, the democratic strategist and war room veteran, simon rosenberg. Also with us is Jonathan Allen of Bloomberg NewsWashington Bureau chief. Simon, what do the polls have wrong and why do you think the democrats the democrats will hold the senate . I think democrats going to election day feeling pretty good. If you look at the numbers the last couple of days, these races are dead even and voters are starting to show up with much more intensity. All of the early vote numbers which are actual people who have voted, the polls of them very positive that puts democrats far above what we had anticipated. I dont think this thing is done i think both parties will wake up on election after Election Night with some victories in some losses i will be a mixed bag for both parties. What has simon got wrong . I think republicans will have a big night on Election Night. Its a question of how much they win and whether they win. Its possible they will win some of the big races. Its certain they will win . Up half all pick dozen to as many as 18 seats. It could be five to eight in the senate alone and that matters if its five, democrats hold the senate of its eight,. Republicans take the senate we are hearing from voters that they want president obama to get his agenda done. What do you think are the readthroughs of what you see happen in the midterm elections for what will happen in 2016 . I found it interesting that democrats are doing better than some people expected in georgia and arizona. The republicans will lose the governorship of florida and in pennsylvania and probably in wisconsin. There is a lot of weakness for the republicans in core battleground states. They will need to win the presidency and keep the senate in 2016. Flips, ite senate will be a very unstable tenure for Mitch Mcconnell and probably very short. The democrats will be oddson favorite to flip the senate back in 2016. Victoryld be apyrrhic for republicans. If you look at the pole from sunday, the race is dead even. This is a divided electorate that is not giving a mandate to either side. Lets talk about the most controversial races such as iowa. Extremely is doing well. This is a senate seat that was held by the democrats for nearly 30 years and here comes joni ernst at the very popular commercial where she brags about castrating pigs. What is it about that mess is that resonates with voters in iowa . [laughter] i think that ad the secular put her on the map. Particularthat ad in put her on the map. She has to sting mr. Self as a candidate. With herrecent ad Walking Around pigs like she is Walking Around washington. She has turned out to be a much better candidate than anyone thought she would be. That race is close. There was a sevenpoint lead in one poll. Aday we see one that has five. I think she still has the advantage. She has a clean message that she is a mother and a soldier and an independent leader and that sells well in iowa. This is a quotation from ted cruz said one of the reasons republicans of lost elections recently as we have failed to engage in a meaningful way on the great issues of the day. What do you think are the key issues that the 2014 midterms are going to be decided on . In a funny way, this was an election that was not really about some overarching powerful thing other than a little bit of unhappiness with the president. There is not a major debate about the economy and it was not a major debate about health care and there was concern about Foreign Policy without a well it take you live alternative. Its another reason why the republicans dont enter into this next cycle with any kind of clear mandate. They did not make a big argument about where they wanted to take the country and that is unfortunate for all of us. It would have been better if this is a big debate about the big issues of the day. The cover of bloomberg politics. Com is have guns have become a defining issue in the 2014 midterms. After living in europe are a couple of years, is jarring to arehow politicians associated themselves with images of firearms. Will this be a game changer for 2014, guns . There are certain pockets of like alaska,ates arkansas, where youve got a gun culture. There are gun owners who feel like their guns are going to be taken away from them. We have not seen any movement to actually get anywhere on that in washington. I think that feeling and that perception has driven some voters and will drive some voters to the polls. Thank u andenberg, also thanks to Jonathan Allen. We will be here tomorrow with all night coverage after the election. Still to come, what caused richard ransons experimental station to crash . I will speak to see Richard Branson himself just ahead. Late last week, macdonells will roll out a new management structure. The Fast Food Restaurant chain will give more autonomy to regional managers allowing menu items to better reflect local taste. This is a huge change. They usually offer the same menu everywhere in the world. U. S. Sales at mcdonalds have weakened along with its shares and there has been speculation it could be a target for activist investors. Would that be a good idea . With me this is morning from Harvard Business school. Thank you for joining us. Such ayou think this is bad idea for activist to get involved in mac donalds after we have seen how much success three g capital had with burger king . I dont know that it would be a bad idea. I think activists are at their best when they focus on portfolio businesses, Capital Allocations, and govern out. Theyre not necessarily at their best when they try to coach management and how to improve margins around the company better. Thats not their expertise own activist coming in has to decide whether there are some things they can move the needle on. I think coaching a Management Team on running a business is probably not their highest and best use. We see some activists stepping beyond the traditional boundaries of living up a small stake. Im thinking of Eddie Lampert at sears and bill ackman with herbalife. Why are they taking on these cases . Is this a smart move . I think those are examples where maybe an activist got a little bit out over their skis. They are not experts at running companies. They do have a lot of expertise in may be looking at portfolio businesses and maybe there is a high growth and low Growth Business and if you split them up, it would create value or maybe Capital Allocation could be more effectively done, Share Repurchase separating real estate or maybe there is a governance issue. With Eddie Lampert and bill ackman when bill ackman has focused on those three core areas, he has been a more effective activist than when he has gotten involved as in jcpenney and coaching management. He has got a little too far in those cases and it has not worked out as well. When somebody like dan loeb approaches the ceo of dow chemical and tells him he should be able to make a chemical compound in two years, how do you think the board of dow should respond . This is a tricky point they have to treat an activist like dan loeb or any activist with respect as they would any other shareholder. The have to listen to what he is saying, they have to do their analysis but then their job is not to roll over. Their job is when they disagreed to do what they think is right, not what the activist wants. Heardure Andrew Liviris that piece of advice and might have rolled his eyes but his job is to treat the activist with respect and listen to everything he says and think whether there is a nugget in there that might be good advice. Fair enough. The midterm elections are tomorrow, do you think most ceos are not focused on that . Is not that they are not focused. On a time you turn football game, you will see for ads. Everyone is aware of them. At the federal level in this country, probably not much will change for the most significant thing going on at the federal level is what the Federal Reserve is doing. For congress, the big issues are immigration reform, ideally reforming social security, medicare, medicaid, Infrastructure Spending that thing people have low expectations as well as may that washington will be able to make progress on those things. People are best served focusing on what the fed is doing and more importantly focusing on the economy and their business and their markets and running their businesses. I think the expectation is not much will change from d. C. Israels as a result from this election. Professor robert kaplan, thank you so much. Worldso come, why is the largest insulin maker setting its sights so high. . Plus, what caused Richard Bransons spaceship to crash . I will speak to serve Richard Branson himself next. Billionaire Richard Branson said he will slow his quest for Space Tourism after the crash of his experience all spacecraft on friday. Federal investigators have begun studying the fatal test flight. Certain Richard Branson says version is sir Richard Branson is cooperating. Thank you for joining us. Initially come it looked like it might be something wrong with the new fuel mix that had not been tested much. We are hearing that there might have been a defect with a function that helps the craft ascended to the atmosphere that could have been deployed early. Can you give us an update . Well, some elements of the press speculated that it was an and some press said it was fuel tanks and some people said it was rockets. The ntsb quite rightly said that and weshould speculate had to watch the footage and those of selfproclaimed experts. Night andame out last said clearly that was not the fuel. The 400 wonderful engineers that worked on the side of the spaceship was not the case. The ntsb and the people that will speak about causes and they do a thorough investigation, that aey indicated was lever have impressed a few seconds sooner than it should ave been and we will leave it up to the ntsb to decide whether that had an effect on that was the cause. It is still early days. Have any sense of how long you anticipate you will have to Lay Development plans for Virgin Galactic . Ntsb hason what the seen, they have told us to push ahead as fast as possible with the building of the next spaceship and get testing as quickly as possible. Confident thatly there is no fundamental flaw in their team will be working 24 hours per day to get back on track. One day, we will do it. How long will that be before you buy before you build a second ship . Well, i would rather not speculate on the time. We are months away from getting a second ship built. Obviously, then we have to go through an extensive test program with our brave astronauts and test pilots once again. Only when they have put it through its paces will i be ready to go up and once im 800 incredible astronauts have stuck with us and we have other astronauts who have signed up since the accident. We should then be able to fly. This is rocket science, literally. I cannot imagine how competition this is but i remember in 2010, you were hoping to be flying in orbit by the end of 2012. I spoke to you at the air show in britain and the summer of 2012 and you are hoping to be in orbit by the end of 2013. Here we are in 2014 and before this accident, you are hoping to be flying with your son later this spring. Do you think you are overly ambitious . I dont think anybody has ever accused me of pushing Virgin Galactic too far. Plenty ofd accusations of pushing it to slowly. We were preparing to go this spring. The team feeling very confident that there would be a few more test flights and then we would be ready to go. Something happened, we dont know whether for sure whether butas human error or what the ntsb will say very clearly what got in the way of the program. Up and pick ourselves get back on track. I apologize but we have a satellite window down. There were several safety exemptions, a 2004 law giving minimal regulation to Space Tourism do you expect to see more regulations around what you are welding with version galactic as a result of this crash . Regulation is important. People have got to feel comfortable in space when they go up and weve got to feel comfortable about taking people up. But thats why test pilots put their lives on the line to see if theres any little thing that the 400 engineers on earth have missed. Pilots have put it through its paces, i think these authorities and their cells will start taking people up. Sir richard thank you very much. We wish you the best of luck. Thank you. We will be back in two minutes. Welcome back to in the loop. Here is look at our top stories futures are indicating that stocks will be lower at the open and u. S. Equities begin lower after a recordsetting friday. Republicans hope to capitalize on antiobama sentiment and democrats have launched a lastditch get out the vote effort. The midterm elections are tomorrow and hundreds of races are at stake that the election will come down to a handful of states. Republicans need to pick up six senate seats to regain the majority. The gop is expected to increase its already substantial majority in the house. Investigators are looking to the crash of Richard Bransons experiments spaceship and they will not rule out pilot error. To say the spaceship disintegrated over the mohave desert after a device to slow the craft dissent was deployed prematurely. The spaceships copilot was killed in the pilot was seriously injured. Moments ago, we spoke with sir Richard Branson and he is confident that hers no fundamental flaw in this patient design. Ofricans cannot do math Sport Utility vehicles. Octoberrmakers reported sales that Beat Estimates and demand for suvs kept growing as the price of gasoline keeps falling. Chryslers sales rose 22 overall which is the 55th month in a row that they have increased. We will hear from ford and General Motors later this hour. Medicaler in the services industries, Laboratory Corporation of america has or 6. 1o buy covenant billion. Labcorp makes medical diagnostic processes. Worlds largest maker of insulin reassured investors last week with better than estimated earnings and a strong growth forecast for next year. The announcement came days after sanofi warned of a sharp downturn for its diabetes business. Joining me now is the novo no rdisk ceo. This very us, in competitive field of diabetes companies, how is it that your Company Remains in into this price pressure among diabetes drugs . We do feel the price pressure. Its just that we have an Excellent Organization in the u. S. And we are gaining market share. We are decidedly better than that of the competition. You are in houston to announce a Big Partnership with the city to combat diabetes because 2 3 of diabetes live in cities. Outhave already rolled it in mexico city and copenhagen. What is the strategy . Want to team up with key case houstonhis and mexico city and copenhagen, and a couple of cities in asia. Why people inning urban areas get more diabetes than people in rural areas and then get together to discuss the findings and take some action. What is it you have learned from the other cities where you have already rolled this out . Why is it that there is such a high incidence rate of diabetes in urban areas . It is social economic issues, that urbans such planning and distances from home to work and an inability to get exercise in a safe environment, a change in lifestyle and foodstuffs lots of complex issues that are at play. We need to learn from each other how this can basically be dealt with. I would like to turn your back to the question about drug pricing of insulin. Why do you feel this type of treasure is not seen in other disease areas like Rheumatoid Arthritis which is much bigger with several players also involved . What is it about insulin . The pharmaceutical marketplace is like any other marketplace characterized by competition when the buy side is consolidating, they get more strength. Maturitys are reaching , meeting patent expiration, they are often prone to more competition. All of that is reflected in the ongoing prices of insulins and other drugs. In 10 years, how do you think medicine and health care in general will be paid for given the increasing rise of highly priced but very effective drugs . Thee should remember that total drug billing in the United States is not increasing. Its going down because of patent expiration on highvolume drugs that used to be expensive but are now affordable. That actually is a development we see all over the world. Innovative drugs are being replaced by generics as they go off patent. This is funding the ability to innovate and find new therapies. We still have to revolutionize therapy and human health. Let me jump back to diabetes and obesity. The link between obesity and diabetes is very strong. You also have a new drug out for obesity. I have covered many obesity drugs before. They have all come out with something and these drugs never seem to work despite all the high hopes. There are lots of problems launching them. Why do you think your new obesity product will be different . All, a city like houston where i am, about 1 3 of the Adult Population has diabetes is means they have the higher rate of obesity. We need to do something about it. Pharmaceutical intervention is one way. The reason it has not worked in the past is that there has been no real recognition that obesity is a condition and it is not just moral failure. Therefore, medical intervention has to find its place and we are optimistic that her drug will. Thank you so much for being with us. Up, the former nasa astronaut captain mark kelly joins us here for a look at how the crest of the burgeon galactic spaceship the crash of the Virgin Galactic spaceship could affect the space durham is industry. The Space Tourism industry. We are 20 minutes away from the start of trading celebs count down so lets count down. U. S. Me that a investigators have started their investigation into the Virgin Atlantic crash. Thate ntsb are the people will speak about causes and they are doing a very thorough investigation. Was that andicated lever had been pressed a few Second Center than it should have been and we will leave it up to the ntsb to decide whether that had any effect and when and whether that was the cause. For more on what may have happened and what it means to future space programs, let me bring in someone with a lot of experience, former nasa astronaut captain mark kelly joins us from tucson, arizona as a special advisor to elon musk at spacex. Thank you for joining us. Lets start with Richard Branson said. He says it might have been an actual user error. What is your reaction . I think what richard is doing is repeating what the ntsb said. This will take a lot of time to look at all the evidence and come up with a definitive conclusion of what caused this accident. What the ntsb said is there is some indication that the feathering system of the spacecraft deployed earlier than it normally would and shortly after that is when the breakup occurred. Those are facts. It still will take some time to come up with a cause of the mishap. What does it sound to you like . For the ntsb to come out and say we noticed on video and telemetry that the pilot basically unlocked the withoutng system and any further action, the feathering system was deployed or put into place or was activated, and then two seconds later, the vehicle lost data and they lost a video which indicates that the breakup happened. I think video from the ground confirms that. The focus of the ntsb investigation right now. At some later point, they might decide to change that but it seems that the feathering system of the spacecraft is the focus of the investigation right now. Captain telik, you are a former nasa astronaut and you are currently at rising spacex which is a private company. Usually these companies are doing rigorous safety testing. Do they do the same as nasa does . Absolutely, many employees that richard has a Virgin Galactic are former nasa employees. The Vice President runs operations there used to essentially do the same job at nasa for my last Space Shuttle flight, mike moses, who is incredibly talented. He is smart and i know he is focused on safety all the time. You have to understand that this is a difficult thing to do under the best of circumstances. Its risky and there will be accidents. It is only by taking risks and doing difficult rings that we progress in aviation or any other business or industry. Richard branson said he will push forward to try to build a new spaceship as soon as possible. Do you think an incident like this should give him more pause . I am happy to hear him say that. We have to push ahead we should not let things like the slowest down. We have to take a little bit of a step back and while he says he will press ahead, at the same time, i know they will look at what the ntsb uncovers and they will fix the problem. They will adjusted and start flying and testing again and hopefully soon, there are passengers flying on Virgin Galactic spacecraft first into suborbital flight and then maybe later, maybe this is the way we get around the planet. That is something that richard told me himself. Two years ago, he said going up to orbit and getting to australia would be just two hours. Its a great idea but there are many hurdles that still remain. You said these commercial companies are being as rigorous with the safety testing as nasa but lawmakers have carved out special safety exemptions. Fore was a 2004 law pulling minimal resident minimal regulationventures. Was that a mistake . I dont think so. You have to allow these private commercial companies the Available Space to take the risk. When you look at it, they are not taking the risk with the general public right now with passengers. They are taking the risk with test pilots. These are guys like myself who sign up to do this job because they love what they do. They are given this space and free of certain kinds of regulation at this point and eventually, when they start putting passengers on board, i imagine the regulation will change. The first goal of the faa is to protect the general public which is protect the people on the ground. Ther job is not to protect company and test pilots on board. At this point, i think it was the right decision. Because this is literally uncharted territory, there has been confusion over which regulator should be spearheading the investigation. The ntsb is looking into this but as a result of what has happened, this tragic crash, do you expect to see the likes of spacex against more regulation . No, i dont think so. Spacex is done a fabulous job delivering cargo to the International Space station. They have done a number of times now. Spacex is looking at delivering crewmembers to the space station. That is not the general public. These will be nasa astronauts that are required to get there. I dont think the faa will change the way they regulate spacex. Thentsb is just organization that is doing the investigation. Thats because they are so good at it. The way that Virgin Galactic and that get to an answer soon as have the ntsb do this. Is in uncharted territory because it space and we have not sent the civilian public into space before. The faa is giving them a lot of leeway right now. We do not have passengers on board yet. Thats an important point. Captain mark kelly, thank you for joining us this morning. Our countdown to the opening bell continues so stay with us. We are just getting started. Welcome back to in the loop. I was going to wear pink this morning. Richmond fed president jeffrey lacher says hes not worried about prices rising too fast and he is an inflation hawk and makes the point that we have ended quantitative easing but until we start to actually sell back the bonds, the stimulus remains in place. Scarlet has been covering the oil story. With oil falling falling this month, how can any believe inflation is coming back . He says inflation is not the problem he once saw it is. As. When he was a Voting Member of the fmo see, he wanted to tighten Monetary Policy at every meeting. Willm curious of this damage the feds credibility in terms of hitting the two percent target. They have talked about how they wanted to get there. No evidencere is and plays we are creeping towards that, we are at 1. 4 . There is no evidence anywhere of inflation creeping up. Maybe food prices. Number three is dunkin donuts. They are revealing a new hybrid pastry. They call it a croissantdoughnut. Its 20 layers of goodness. I have not tried one yet. Morning and this the glaze is amazing. It tastes like a glazed doughnut. This is good stuff. It tastes a little like a bagel, surprisingly chilly. Breakfast is getting more competitive. Out with aell coming waffle tocco, i dont think the krone cronut will hold up. I think its really good. Its also 2. 49. Is cheaper than they want the other place. Actualcronut has been trademarked. The new york by doughnut. When i did the piece in hong kong, they called it the cronut. Neither of you look like you read many of them. Ctober was a strong month for automobile sales. The story of gasoline seems to be driving cars. It could be a kneejerk reaction because gas prices are below three dollars, the lowest in four years, that have not been that low for very long. Its very shortsighted to run out and buy an suv. I checked with Bloomberg Intelligence and they said gasoline plays a factor when the prices arising. When it comes down, people dont look at is as much. They look at the tradein value of a car and how much insurance costs and these other factors. Gasoline is an added boost but its not really the key reason why someone would go out and buy an suv. To use to be a time when these Car Companies would struggle because they would see sales for the big suvs decline depending on where oil rises were. Now pretty much, you have a variety of cars under one umbrella. One company gets the bust of oath deals gets the best of both deals. And financing is really easy. We will take a rate as we near the opening l herriot the opening bell. On friday, the s p and dow closed at record highs so futures are basically flat. The dow is a notch lower and the nasdaq is a little higher but record territory for the s p and the tao. We will be back in just a moment. Welcome back. We are bringing you the most important stories you need to know about the opening bell. Jobs and Economy Taking Center Stage as voters get set to hit the polls. President obama and the democrats have not been able to take credit for the gains in the labor market. It is very interesting. It is the economy, stupid. But it does not seem to be the economy, will midterm voters are making their decisions on. Republicans have been up front of saying this is not what we want. The challenge for them will be to pivot from that. We had a chart earlier this morning on how real wages for most of americans who had a whoege degree film 9 had a College Degree fell 9 . I saw that chart this morning and was curious. It could be bigger if you had people with a College Degree working in jobs that fit their skill set. The problem is you have individuals with masters degrees who are not doing the right work. Starbucks. Exactly, which could be fun. We have the bell. Stocks kick off another trading week. The u. S. T is not clear has recovered from the recession and is worried europe and china could pull us backwards. Good morning. Thanks for joining us. It has got to be annoying to the president. Unemployment has come down to below 6 . Gdp is at 3. 5 . Housing market is looking good. It looks and smells like recovery. Why do you think we are not in a recovery . Aswe are in a recovery, meager as it is. It is just the rest of the world is not following along. The u. S. Can only pull some much weight by itself. The recent volatility serves to highlight how uncertain we are politically, economically, geopolitically, and financially. The weakness in europe is disconcerting. The deceleration in emerging markets may serve to undermine our recovery in the u. S. The u. S. Cannot do it alone. We live in a global economy. The rest of the economies have to pull their own weight. We have so many guests who talk about the weakness in europe and how they are overweight europe. Isnt there a disconnect . The reason you are overweight is you think mario draghi will come through. He is not going to be able to get those stagnant economies growing again . No question. Riskserm, the downturn may outweigh it. Would remain overweight in our portfolio at american century. But longerterm, we are putting some chips on the european markets. That is because of the relative valuation picture. The u. S. Has done well economically and financially if you look at the stock Market Indices around the world. In terms of relative valuations, you have to bet on the undervalued markets looking out two or three years. We have auto Sales Numbers coming across the terminal for october. Sales were down 1. 8 , but that was better than forecast. There were estimates of a drop of 4. 3 . Auto sales up 5. 2 against estimates of 3. 1 . Both companies struggling with recalls. Ford betting big on china. For china, manufacturing slowing as well. Do we presume china will stick economy plan to tip its towards a consumption led one rather than coming to some stimulus . I think there is no question they will continue on that track. Whether they are successful remains to be seen. Big issue for us in the u. S. If europe and china cannot get their economies going in the right direction, china is clearly growing in real terms but they are decelerating. That will put pressure on commodities and demand outside its own borders. It is a real issue for us here. As someone who has lived in china, it seems the Chinese Market is more concerned about reforms. Becaused argue perhaps of the shanghai index. If you see what is happening with gold, we are talking about the slowdown in terms of the Global Growth picture. Goingondering if we are to see a revival in gold because of what is happening globally. 1. 2 billion has been pulled out from gold and other Precious Metals so far this year. It is very possible. Gold is a safe haven asset so it tends to move with the vix. People run to it in a calamity. It is always good to have a little gold in your portfolio as a safe haven. But ultimately it is not driven by supply and demand. Is driven by fear and greed. And perhaps inflation. With oil prices, we are seeing little of that these days. Thanks for joining us. Come, americans think bigger. Soccer moms are cheering for suvs thanks to lower gas prices. More on this shift after the break. Chrysler posting another month of strong u. S. Sales with a 22 increase in october. The lowest gas prices in four years are helping change the behavior and decisions of american car buyers. Mike jackson about the impact of lower gas prices. Prices does not impact the total number of vehicles sold but it definitely impacts the types of vehicles people buy. Despite the fact that people say fuel efficiency is their number one issue when they buy a vehicle, i tell you when gasoline prices go down we see an immediate shift towards larger, faster vehicles, particularly trucks. Thisining me to discuss change for larger, faster vehicles is the editorinchief of the autoblog and our chief markets strategist has been coming through sales results. Break down the numbers this morning. Justseems like a rash move to be buying more trucks and suvs because gas prices have been below three dollars for five minutes. Thisat is a trend all year. If you look at data from the start of the year, sales of small cars have been faltering down about 2. 5 for subcompacts. The small crossover utility 14 according to auto data. Suv sales have outstripped small cars each month of this year. It is not just this month that things have picked up for the suvs and small cars or something investors are shunning. Is this americas love affair with big trucks and cars . Yeah. Everyone wants the most car you can buy. It is fuelefficient. Whichw Jeep Cherokee posted 50 sales growth can get 30 miles per gallon. We dont need to panic. Buyers will buy something bigger but it will not lead to a glut of escalates on the roads. It is not your fathers escalade. U. S. Vehicle fleet is more efficient than in the past. He gets an average of 24. 1 miles per gallon. Improved. E technology has enabled us to get more fuel efficient, so maybe some of the considerations people used to have have fallen by the wayside. Finally we know the government did something about efficiency and emissions standards. On the flipside, do falling gas prices mean it is hurting sales of hybrids and electric cars . I talked to an analyst at Bloomberg Intelligence. He was saying the lower gas prices, the longer the payback on the Technology Premium you pay for tesla. Where it is factor not in your best interest in terms of how much you say to buy one of these electric vehicles. Youre talking about 10 years making the difference over a regular car. Regular cars are more efficient. Hybrids are taking the biggest hit down about 18 for the year. Electric car sales do not correspond to reality. Today, nissan reportedlys sales are up huge over last year. Huge is still not that many cars. People who buy tesla are not that worried about gas prices. You have other considerations. Likely, they are heavily invested in the stock market. Talk about the recalls. To what extent are using a recall impact . Basically none at this point because everyone is recalling. Recalls have outpaced any other year and the year is not over yet. We have seen a lot of recalls from g. M. , but ford and chrysler have had recalls. The airbag recall hit everyone. Mazda. Ford, g. M. , bmw, no one is exempt from recalls. Read the story about an airbag blowing shrapnel into a driver . There are few choices. You could drive a volvo. Your dad should feel very good about himself with a volvo, Station Wagon is a great car to buy. People have fatigue. If you hear about a new recall everyday companies stopped paying attention. Who has been hardest hit by the recalls . Obviously, g. M. But is that showing up in sales . They are doing better than ford. I think we will continue to see chrysler and g. M. Do well. I think ford will struggle until they get the f1 50 on the market. Or everyone will buy a volvo hybrid. Thanks so much for joining us. At the top tech stories on our bloomberg west radar. Apple is talking to investors about its first ever bond sale in euros according to persons familiar with the matter. That would allow apple to borrow at the lowest rate relative to dollardenominated debt in six years. New york may grant transitional licenses to small bitcoin firms and other startups that deal in virtual currency. The state superintendent of Financial Services says that would prevent firms from being crushed by huge supplies and cost. New york has been developing a bitcoin license to prevent money laundering. This video has been going viral. In twoedevil deathdefying walks in chicago. He did it without a harness or safety net. He didthose walks blindfolded roughly 600 feet above the ground. He is part of the seventh generation of the famous flying will end the flamboyant flying while in the family wallenda family. Truly insane. The las vegas event focuses on commerce. Erik schatzker is there and joins me now. Good morning. What can we look forward to . Good morning. This is about the future of money. Apple play is just the beginning. We are getting into biometrics, beacons. We are already in the bitcoin era. Ist it is going to amount to a cashless world in which paying for things is easier and much more secure but kind of like facebook, it comes at a price. All these companies that want to provide us with electronic Financial Services will no much more about us and how we spend money. Without information, they will be able to do things we like, to offer services and rewards and Loyalty Programs and discounts we might like. But in exchange, they will know a lot more about us. There are 7500 people convening in las vegas for money 20 20. It gets into the future of money. It is not what we know it as today. I know you have great interviews coming up. Youre there for two days. We are looking forward to all of it. Staying with global payments, bill went overseas to sweden ahead of the event. We are increasingly seeing alternatives to Cash Payments in that country. It may even push traditional money out. Take a look. Shopping for snacks in stockholm has gotten simpler in recent years. It is done. In part, that is thanks to cashless payment systems. Cash presents a lot of problems for society as a whole. A lot of people want to use cash. In sweden, it is lower and lower. While an estimated 55 of u. S. Consumer payments are made with cash, in sweden that is down to 41 . We are connected to the cashless system. We are there. We also have the network because we are on the mobile data network. His firm now operates in 30 different countries. Sweden, it enabled is just one of several Companies Competing to replace cash. It is a strong digital entrepreneurship phase. Entrepreneurs want to challenge the old Banking Industry by providing this new innovative mobile payment services. The old Banking Industry has reacted with six of swedens largest ranks banding together in 2012 to build an instantaneous mobile payment platform. We share the development costs. We see customers adopting new Technology Like mobile payments. We all saw this need where we could replace cash. The idea that banks could cooperate to kill off cash might be unthinkable elsewhere. But it is not so surprising in sweden where bills and coins recently constituted less than 3 of the countrys domestic product compared to an average across the euro area of almost 10 . Many Bank Branches here no longer carry hard currency. Vendors use a wireless card readers to accept credit and debit card payments. Cellphone stores post signs saying no cash accepted. Sweden printer the first banknotes 350 years ago. The new technologies have not stopped the banks from designing new notes for 2015. She may control the countrys physical currency but says she never carries cash. We are quite neutral even though we are the one to provide society with cash. Cash is not necessarily the best payment instrument. Nation where fewer retail transactions are carried out in cash and almost everyone has access to the internet, the new bills may be the last the swedes ever need. Stockholm, sweden. Inhat does it for the loop. Betty liu will be back next week with big interviews. That he also be speaking to the nasdaq ceo betty will also be speaking to the nasdaq ceo. That is all starting tomorrow at 8 00 eastern. Stay tuned. It is 56 past the hour. Bloomberg television is on the markets. Mixed can see, call it a day so far. For the most part, stocks were down as global weakness has been hitting the boards. We had disappointing manufacturing numbers from china. That is translating into the way the dollar is trading, strengthening to almost a sevenyear high versus the yen. 4 ,ral gas up close to surging the most in five weeks on forecasts for unusually cold weather. That would create more demand. You can see treasuries. We will stick with moms because debt investors saw volatility sore the most in a year. Who were the biggest winners and losers . Here to break it down as always is our debt specialist. Lets talk about the winners first. You saw a safe haven trade that won out. There was volatility and a dip in yields in safe haven assets. Yields did bounce back but give up some of the gains. When yields drop, prices rise. Overall, the safe havens did seem to win out. People were looking for stability. We are seeing more growth in the u. S. , more stabilizing economic signs. You were seeing plunging oil prices which raised concerns about Global Growth. As Global Growth slows, there is less demand for oil. Issue,he Global Growth if you look outside the u. S. , some of the biggest losers were in places like russia. With russia, you have a bunch of different things. Sanctions are hitting the economy. You have oil prices dropping. That takes a huge bite out of their income. One of their main businesses is energy and oil. They are losing out on that front. Putin is not ingratiating himself with the global powers that be. That is definitely having an effect on the economy as well. Another big loser was greece the ecbthere is concern is backing away from some measures is had taken to support borrowing. Yields have risen significantly. Their debt loss about 10 according to one index last month. As you talk to Market Participants and reflect on october, what caused the volatility we are seeing . There is a lot of questions about that. Theres a lot of fingerpointing at hedge funds saying they were leveraged, they had all the same trades. They had to get out at the same time. A couple of bad things happened at once. Oil prices dropping, fannie mae and freddie mac decision which caused prices to plunge for a lot of hedge funds owning that stock. You also have treasuries falling. That was also unexpected. They fell to such a low level a lot of people to get forced people betting against treasuries to foreclose on those bets and by that treasuries to close out the short positions which further caused yields to drop because it pushed up prices of the treasuries. All these different factors played into it. Another issue that will be ongoing is diverting Monetary Policy, diverging central banks. That is a big issue. We have to leave it there. Thank you. We are on the markets in 30 minutes. Market makers is next. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. House and before your cash is trash . Apple pay and did coin bitcoin are the start. We will see how soon until a truly cashless society. Republicans are the favorites to capture the senate. We will talk to bloombergs political gurus. Luck of the irish. Thha