and then to new hampshire. i think i am entitled to come cut the ribbon of one of the biggest hotels in the world. mark: tonight, an exclusive interview with donald trump and the mark halperin. it will air tonight. and hillary clinton accused donald trump of -- american workers. a new poll shows mr. trump has a new release in the sunshine state, which is a must win for his white house. donald trump leads hillary clinton in florida where a raise were third-party candidates are included. he is getting support from independents and showing in this poll is stronger than in other recent surveys from that state. if donald trump wins all of the states that donald -- that mitt romney won in his run, he will still need more votes to win the presidency. and setting fires to a camp that was later torn down in france. french authorities dismantled the camp, known as the jungle. it was seen as a symbol of the migrant crisis. people are being moved to other centers where they can seek asylum. global news, 24 hours a day, powered by more than 2600 journalists in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ scarlet: we are 30 minutes from the close of trading. i'm scarlet fu. matt: i'm matt miller. >> and i'm all over run it. scarlet: energy producers seeing a drop after stockpiles unexpected lead dropped. matt: but the question is, would you miss -- what'd you miss? tesla reporting earnings and wall street will get an update on elon musk's plans to go be on to the electric vehicle. and some of the heaviest weighted companies will report to mark, including at-bat and -- google and amazon drilling down on all the revenue streams from alphabet. and donald trump has a slim advantage in florida, according to a politics poll. it is a critical state, but will it be enough to get him to the white house. we will hear from donald trump himself later this hour. ♪ towards thee head close, looking at the major averages. mixed movement on the stock market today. dow in the green and some of the big industrial stocks are doing pretty well. nasdaq 500 flat and the is hurting. so we will get more on that. and getting information from abigail doolittle at the nasdaq. abigail: the nasdaq was trading lower all day. not flipping green like the s&p 500 did earlier. and the big drag today has been apple. disappointment around the company in the september quarter, that was basically in line. but the stock has gone up so much, more than 20% from the last quarterly report, that the expectations could have been high. so we are looking at a reset there. and also some other big tech stocks are dragging, amazon and alphabets ahead of the earnings reports for tomorrow. the blowout wings -- buffalo wild wings shares at a low, showing how investors good because this. $1.22 on earnings. that is a slight decline of 1.4%. saying hefargo -- would not be surprised if they lower the full-year earnings outlook because of cost earnings. it will be interesting to see what happens. and tesla reporting after the bell. investors are looking at a loss of $.53 per share. they announced the number of these goals -- vehicles ordered, over -- and the surge in vehicles is better than expected, but there was discounting. the big story around tesla could be an accounting change that could create confusion among the earnings estimates and perhaps a bit of a headache. it will be interesting to see how it plays out. oliver: tesla is a volatile stock, especially after the earnings that can jump a lot. we will be in store for a wild ride? look,l: we will take a this is a one-year chart of tesla and where we see the volatility in the beginning of the year, they were down 42% at one point. then up again. after that, they have been trading in a range, getting tighter and tighter, they do not really have a great deal of clarity as far as what is ahead. typically, these ranges, those that get tighter, produce huge directional moves either up or down. whether it is in earnings report , it is unclear. but sometime in the future, we are likely to see a volatile move from tesla. oliver: thank you for the recap. scarlet: breaking news on snapchat. the company will stick to raise as much as $4 billion in their planned ipo. this ipo could value snapchat at about $25 billion to around $35 billion. no final decision made yet. and it could change. but they did say that those people we talked to, that it could reach as much as $40 billion for that valuation. one thing to keep in mind, because the revenue is less than $1 billion, they will file with the sec. so we will be getting this kind of news. and snapchat is the name of the app, the name of the company is snap inco. matt: it will be hard to price this. oliver: these types of social media companies, it is hard to figure out what they are worth. matt: i cannot even figure out what they do. how does it work? oliver: anytime of the day i have snapchat, but basically they have a platform where you can put stories and videos up, and you are looking at all of your friends, that is part of it. there is more to it than that. but there have been some changes as of late. scarlet: a representative from snapchat declined to comment on our reporting. we know that they already picked morgan stanley to lead the offering. there are other banks involved as well, including j.p. morgan and others. looking at these big banks for the eventual ipo. matt: we should mention that our tech reporters continue to break stories on this company. and just a recap, snapchat will be raising as much as $4 billion, planning to raise, in their public offering. arealex and to sarah -- alex and sarah big snapchat people? oliver: they are. and they are raising the value on the company. matt: let's bring in tom. tom, let me ask about this tech ipo. it has been slower this year, especially the tech sector ipos. will we have an inflection point? will this signal a pickup? tom: absolutely. the fact that we are looking at a big ipo early in the year, because we think it will be before march 2017, we think it will be heralded as a bigger year for ipos next year. there is obviously uncertainty in the areas of the world, with regard to the election, but it is definitely less any and the closer that we get -- lessening the closer we get to november. so those concerns that were standing in the way, have started to retreat. we have seen the ipos come back at the end of this year. absolutely, the fact that snapchat is looking to raise $4 billion and valuation is higher than the last time we saw them raise in the public market, that is something that is bullish for investors in the market. scarlet: why would they want to go public? there is 20 of money in silicon valley -- there is plenty of money in silicon valley and they would not have to disclose all of this information to everyone. tom: companies are staying private so much longer and there is so much money in silicon valley, but not just silicon valley anymore, there are hedge world,fidelity's of the and it has changed is the scene there. with snapchat, you will be able to raise is in of the amount of money in one swoop, and it will help with their expansion, their pivot. they started as a company that, oh yeah, they are the ones that the teenagers use to send disappearing messages. things they probably should not be sunday. but it has come a long way in pivoting itselfe- into making itself in advertising company and a place where people are sharing photos, doing a lot of things that you do on facebook. so increasingly you are seeing snap move into the direction that facebook is moving. and if you look at what facebook has done, snapchat, if they can't get anywhere near that, you are looking at a company that has more room to grow, so these are things they can do. and remember, when you are a private company, at some point you want employees and executives to have that exit and opportunity to unlock some of the values they have been sitting on, waiting year after year, not able to tap into their shares. so this is an event that will enable them to do that. and it also is annexed it for the adventure -- for the venture capital firm, those waiting for the company's to go public. and these companies have been holding out for so long, it is nice for them to have an exit. matt: i wonder how many people actually are using it outside of oliver's generation. if i look at my facebook, my mom is on there, my aunts and uncles, grandparents. is your mom on snapchat? tom: no. that is why we like it so much. matt: that is why you like it. a $40 billionfies valuation, do you foresee a time oliver win every generation in every country in the world is using it? watchm: it is interesting to the market value. oliver: this could bring the valuation closer to $25 billion-30 $5 billion, it last time around was less than half and that. so what point in the process can we get more clarity on what it will come to market as? tom: it will take some time to get clarity there. it is a wide range. one person we spoke to said that the value could get higher into the $40 billion range. that could be a little bit ambitious, a little bit aspirational. but at the same time, you know, snap has gone through this tremendous transformation and increasingly marketers are looking at it as a way to reach their audience. it is new, different, fun. it is something that is singular from what you see on twitter and facebook and other media giants. the challenge that snap will have is making snapchat more appealing to more generations. you are right, matt. somebody over 30 years old, or over 40 years old, it is something i have yet to embrace. and people from my generation have yet to really embrace it with a lot of gusto. it is seen as something that the younger generation does. and you will see as more marketers get involved, they will look at the appeal and they will definitely increase the urgency of making this something that other people can understand and appeal it to a much broader base. matt: your story has people taking -- paying more attention. you broke the news that snapchat is looking to raise $4 billion for an ipo. we will continue to follow this story. scarlet: coming up, looking at the giant that is out of that's -- alphabet. will investors be paying attention to the report tomorrow? this is bloomberg. ♪ ♪ scarlet: i'm scarlet fu and this is "bloomberg markets." google has spent years telling wall street that investing in non-advertisement businesses will pay off. last quarter, they posted results that suggested that is starting to happen. check out alphabet in the numbers don't lie. google is going strong. if you look at the other part of the business where sales jumped 33%, a record for the second quarter, and looking at cloud computing and software driving those gains. and this is part of their effort to diversify. advertising which is at the top, remain the main revenue driver. it is responsible for $19 billion of the overall $21.5 billion for the second quarter. youtube --ales and there again is the white line, bringing in the most monthly mobile users in the u.s. this helps google keep pace with facebook mother blue line. and that facebook accounts for half of the mobile advertising market. youtube has a commanding lead in video watch time. even with snapchat and their daily video use. youtube may average more than 300 million hours daily and at this audience should help them with ad sales, expected to rise 21% to more than $5 billion in 2016. as you can see, it will grow even more in the future. part of that could come from youtube's new streaming service, which will launch in the first quarter of next year. at the same time, google wants to convert on the augmented reality market. they released a virtual reality headset that is cheaper than other options in the market. larry page is making the move after some of the moonshot businesses like google fiber and nest are overhauled. and we will be following alphabet's result after thursday's closing bell. matt: we have breaking news. saying thatri british banks are unlikely to rules asir passporting they are now. he was asked by a bloomberg news reporter on the telephone whether or not the u.k. would be able to lose passporting rights for the banks operating in london, but again something -- gain something of similar equivalents. a direct quote, "what we are not trying to do is fit into an existing box, we are trying to create a new model." he believes banks operating of the u.k. will lose passporting rights. this is the trade minister. this is obviously a huge issue, because the city of london is dependent on banks and a lot of them have staked their claim and to say they will stay there, i am thinking of barclays, who say they are committed to london. others have said, we may have to think about moving thousands of people out. so not only is it important for london and the banks there, but for a number of other financial capitals or would be financial capitals, paris, frankfurt, dublin, a lot of them lying for possible -- vying for possible business. oliver: and focusing on the banks, this is the banking center of europe. however, it is not just banks. you have other companies as well that they will have to think about how this changes their business. insurance companies, asset managers, about 20% of insurance exports go to the block. so this will affect many people. and they are connected to the eu clients, said this is a far-reaching thing. this has been the question hovering over the impact of brexit. it is a geopolitical thing, but at the same time, people who are anti-brexit, this is the stuff they are concerned about. how will it affect movement from businesses in the u.k. outside of the country? oft: and this is all part theresa may's hard-line stance on brexit. scarlet: the hard brexit they were worried about. they initially thought they would be able to have it both ways the keeping access to the single market and maintaining sovereignty. increasingly, it looks like she is prepared to give up the access to the single market in exchange for the right to control that border. next, warning that the key to software corporations is breakdowns. looking at india's largest conglomerate. this is bloomberg. ♪ ♪ scarlet: i'm scarlet fu. the biggest loser in the s&p 500 today, down 16%. it makes medical devices. this is the function out of bloomberg that allows you to track the surprises and how it does relative to expectations. we are looking at revenue. because, this is a first time that it missed revenue estimates. looking at the negative 1.3%. that is the first time it has happened in two years. you have to go all the way back to 2014, the last time it happened. until this week, edwards had been one of the top performers, of as much as 50% year to date. but the culprit here was reduced selling in france. a lot of analysts notes say it is a good time to buy it for the weakness. oliver: you can also buy on sentiment. the first focus, looking at the love panic index. this is based on different inputs much i to figure out if investor sentiments are bullish or bearish. we are looking at the prize index. -- surprise index. zero and when this goes over, people are feeling bullish. we are not quite there for some people. there is hesitation. matt: i read a story this morning on the bloomberg website about tata, they control some many different units and the chairman of the group has just up down. this is a look at the most important units that tata owns. the yellow line is the market cap, when cyrus took over. and then the white line is what happened since he has been running the company. you can see some of the biggest units, the consultancy has lost about $20 billion in market cap. rs has lostta moto market cap. that could be a reason he is being pushed out. scarlet: you can also check out on bloomberg. the market close is next. scarlet: your moments away from the closing bell. "what'd you miss?" uninspiring outlook from apple. bonds trading on fixed income markets. i am scarlet fu. anchor: i am matt miller. oliver: i am oliver renick's. you can watch our closing bell coverage on twitter every weekday from 4:00 p.m. to 5:00 p.m.. scarlet: we begin with our market minute. the dow mixed day with closing up by 30 points and the nasdaq losing ground. a pickup in activity. the laggards here once real estate stocks. financials were the best performers. matt: i am taking a look at the imf here. is leden on the screen by financials, industrials, and energy names, real estate, health care and telecoms were the big losers. i like to click into the financials here to see what they did during the day because at the end of the trading session, we got news about brexit. it does not seem to have affected the financials trading here. some banks are going to be losers and some are going to be winners, if indeed banks in london lose passporting rights. at some of theok winners and losers in the stock market today. i must all of the earnings related. chipotle.ks in -- tanked for chipotle. on earnings estimates, but missed on revenue estimates, and also put out some soft out look figures. to an order percent drop by apple is worse by 10% drop by chipotle. boeing coming out with a positive earnings surprise, boosting the stop by on 5%. runer: you're giving me a for my money. i am going to look up on today. but as look at the two-year and 10 years. looking at the u.s. first, a bit of a selling. note.n the 10-year same thing happening on the two-year notes in the ups wall, so to some degree, very slight fly in the curves. it moves a little bit more on the yield curve. want to check out what is going on with breakeven. i am going to talk about breakevens. they keep going up with inflation expectations. matt: i have a deep dive on that later on. we'll wait. scarlet: let us go to currencies in the meantime. up in asianhot trading after an increase in cpi, reduced the odds of a cut from the rba, but it steadily erased those as commodity prices decline. earnings from australian banks are due out tonight. emerging market currencies down. the big wants to pay attention peso,r are the rand, and riel. minister was inside presenting his midterm budget. the pacer declining after that's peso declining. oraloxy for the elect chances for donald trump. the peso falling by the most in a month. matt: general commodity index switches down around the lowest point in the week here in your five-day gnp on bloomberg. .own about 2% some weaknesses in the second day of decline, so not a great week. secondly, looking at specific oil figures here. both down. i am going to talk about brent oil later. they are down almost 2.10, 170 basis points each. not forming on, but corn. we are looking at one, which is actually, this is a six month figure, so we are down. september, up 17%. part of that is coming from the idea there is going to be significant demand for ethanol, so a pretty good day for corn. scarlet: those are today's market minute. you can find the charts using the function at the bottom of your screen. at lengtham looking of inflation revising and this is what oliver was alluding to as well. matt: this is a 10 year breakeven late and you can see it has been shooting up since the end of june. in fact, even after i made this chart this morning, it has come up higher. right now, we are looking at about 1.75 on the 10 year breakeven rate. almost there. this is made more interesting by the fact that a lot of smart are sayingthere inflation is coming back the time or at least it is difficult to tell. rieder said bonds are his golf game. he is not good with the driver but with the tipping watch. tips are for winners, said jeff. is changing his view. that is a very interesting piece of the market news i thought, today, and it continues on throughout the trading. oliver: this is against the backdrop of fed officials and inflation and the possibility of what could happen if we do not like. i want to look at correlation measures and socks. something that should help fund managers trying to pick stocks. this chart is jc j index on the bloomberg. this is basically showing you it has gone down. ultimately, the trend from earlier in the year is improving . this should be favorable to asset managers. fewer stocks are moving in the same direction. know, fund managers have been vastly underperforming the benchmarks. this could be a sign that maybe the next couple months, they can catch up to the benchmark. scarlet: some dispersion, finally. are going to combine all the asset classes here and look at how everything has gone quiet all at once across all asset classes. june 30, 2015, this is the start date. line is the treasury's move index at a two-year low. the red line is jpmorgan volatility index. the green line measures oil volatility, at a 15 month low. you can see the drop down over the last couple of weeks there. everything is headed lower. it is like summer, but not. it is not clear if this is ormplacently nervousness. there is the ecb meeting in december. anchor: often times, correlation drops when higher -- with higher volatility. anchor: never earnings out from tesla that are at least on the revenue side, $2.3 billion, the adjusted eps of $.71, the earnings-per-share seems to blow away the estimate. looking for 20 three cents, so $.71 it's far above the fact. on the revenue side, actually, bloomberg saying there is an estimated loss of $.54 on the earnings side. the eps of $.71 is even better than the 23% estimate. we are looking at revenue of $2.3 billion. m, $1.8 a new ee billion of what we were looking for, so $2.2 billion would be better than that as well. scarlet: if we going to matt's terminal, this highlights the new function that gives us a lot more of the key metrics that we need to look for here. anchor: this is that eem function on tesla. it shows you what the street was looking for, $1.88 billion was the sales number it was looking eps, a loss of $.18 is what the street was looking for, the mean estimate of all of the analyst estimates that we have and then the gap eps number was $.54, so if you go back into the headline, you can compare that to what we have got. $.71 was the adjusted eps figure and the sales figure was $2.3 billion. it looks like much better than what the analysts had been estimating. scarlet: if anyone wants to follow along with the headlines matt is reading, you can do to the bloomberg, our live blog. it has all the context and headlines what we need to know. david welsh is one of our reporters for your forecast here of one-way billion dollars from our top editor and fourth quarter deliveries. just over 25,000. the context for tesla is what matters here, the company needs to bring in some cash as well. it is under pressure to deliver on its forecast on the earnings estimate because it wants to be the stock price higher and sell shares and raise cash. anchor: it was to give them cash and you want to think about their plans are producing those vehicles, getting them out there. they do say that when they are looking at their goal for vehicles produced in 2018, it is still on route. they are saying they are going to dial down a little bit in terms of expenditures. they have seen a 2.3 billion in estimated for the year, down to 1.8. was about half of what they had expected. that is pretty interesting as well. you look at the cash flow, which has turned positive, expected to be negative. it does seem there is decent news to be found here. there's a lot of people in the cave. there's a lot of people in the bouquets. he is saying revenue is a myth. .2.3 million fortunately for us, david welsh is going to go to the camera in detroit and walk us through some of these numbers as it is such an interesting company in what they do and how they report and sometimes, it is a little bit using to follow along. the after-hours traded all over the place. we close roughly around 202 dollars per hour. as it is just coming out, trading is just now continuing and you can follow us on long on bloomberg live as we parse through this. this is a company where there is a lot of push and pull. i'm sure there will be a lot for everyone. the tagliani street is a positive report. -- the: we go back tagline on the street is a positive report. that was a lower than what they had in the second quarter. in addition to that, tesla says it is cutting its borrowing facilities by $178 million. cash conservation a key theme for tesla. anchor: let us talk to david welsh right now, joining us from detroit, michigan. it is a to me like clear beat on the sales side and an even bigger beat on the earnings side. david: $.71 is pretty big. i think this is only the second profit, quarterly profit that tesla has reported. the analyst earnings were all over the map. one said they would makes $.50 a shar. the other one said they would lose $.71 a share. this one has been a tough one to predict. they are starting to push ahead with engineering for future models. analysts tofor the get a handle on this. have a change in accounting. they are using fewer non-gap exceptions and costs when they figure out exceptions in costs. when tesla makes money, it is big news. you will probably see a big pop in the shares even though they are all over the place right now. this has only happened once before, so it is going to be very good for them. anchor: there is opposing viewpoints on the company. tesla, what don they want to see here and is there something that is going to , this is pause and say still a longer-term problem, just a quarterly report. is there anything they can find fodder for here? haidi: david: you have to dig -- david: you have to dig into the numbers. what you can look at, and this happens with car companies because the engineering costs for future products are so high, if you put off a little bit of engineering work in cutting those checks for a just a week and pushing it into the next quarter, you can do some things with the numbers and it is not playing with the accounting. it is when you actually pay the bills and do the work. when you have as much product development and engineering as tesla does, they could make a case like that that this is basically when it comes to cash flow, working capital issue and profit, just sort of putting expenses off a little bit. very strong sales in the third quarter, so right now, inis looking like the pie the face that elon musk wanted for the detractors and naysayers on wall street. anchor: isn't that the challenge facing tesla right now? heid: there are two big pies is hoping to throw. one is the model three. they always said they would start building it late when he, but i don't think most people were anticipating it a made 2008 sales they. -- sales date. the stock took a hit the date the amounts the proposal. if you can get that proposal, get his car out on time, he will improve and a lot of the detractors wrong on a lot of big issues. anchor: shares are up 11.5%. this is a company whose shares -- to.d: you may have 11% is big on the missing piece a short andle for medium-term investors has been profitability and positive cash flow. this is not just that they made a share.nies $.71 a share of real money. it beat a lot of those who thought they were going to make money in the quarter. that just on the surface, for a lot of investors, is an up to say that this business is not just a hat in hand company going to wall street every five or six months for more cash. they might be able to stand on andr feet to some degree will not need to be getting cash as much as we have seen in the past. anchor: that may also issue a quick bloomberg markets correction. i meant $11, not 11%. it was up $11, and now it is up $12, 13 dollars, so a 6.5% gain. david welsh, think you for joining us and clarifying those things for us. this is bloomberg. ♪ scarlet: we have group on shares tumbling after the coupon website said it is buying livingsocial, a competitor. this deal will close by the end of november. there is no price tag put on this acquisition. acquisition the consideration is not material, apparently. they reported third-quarter results. .he adjusted loss is one cent revenue beat by $11 million, beat the consensus estimate for the full year. groupon raising its revenue for -- forecast. when you look at estimates, not material. still, the forecast is in mind what analysts -- with what analysts were looking for. ishor: it looks like groupon going to hold a conference call at 5:00 p.m., so if anyone wants to tune in on that, you can find the address on the bloomberg. scarlet: we'll discuss volatility in tesla with ashish shah. ♪ scarlet: "what'd you miss?" volatilities, but did you really miss it? if you come inside the bloomberg, this is my deep dive from earlier. it shows the lack of volatility and asset classes. everything is quieting down. we are looking at multi-month or sometimes multi-year loads for some of these asset classes. treasuries, volatility at a two-year low. i want to bring in as she chief investment officer and head of fixed income -- ashish shah, chief investment officer and head of fixed income. do you think all of this quiet is complacency on a business? ashish: it is neither. it is a lack of yield. everyone is looking for yield and income and having trouble finding it. what are you going to do if you want to generate yield in this environment? you are going to some volatility. we think that obviously creates problems. if you remember, 15 months ago was the flash crash in august. at 15.it is you are realizing, five. that is amazing. anchor: you are not talking about the yuan devaluation? ashish: no, i am talking about the yuan devaluation. impliedom 50 to 15 on in 15 months, that is a very different kind of environment. it is almost like we are in a , smooth pond, smooth sailing, and there is black swans left and right and you have to look out for them. anchor: i guess you can look out for a blocks one. let us say some of -- black swans. the economic data feels solid enough that the fed is going to go, the market thinks they are going to go in december. you have that element which has improved from the economic side. you have a currency regime around the world that is a .ittle bit less volatile our investors not right to have more assurance right now? ashish: you are seeing better growth, particularly in developed markets, but better growth overall, and we are seeing more inflation right now. we think you will end up seeing inflation double over the course of the year, so there is a change going on. it has been exactly one month since you saw the sterling flash crash. it is not like volatility is gone. there is opportunities as a fraction of that change going on when it comes to inflation. ,carlet: it is lack of yield does that mean that volatility has become an asset class in and of itself? ashish: selling volatility has always been one way of getting that yield. not a lot of people like to do it, but it has always been one way. you have to remember that when it comes to that market. another way is obviously the broader credit and fixed income markets. in that space, we see meaningful opportunity coming as a result of this rising inflation. is selling volatility may be good news for the rest of the market if you are not on that side of the trade? iraq or not to suffer when it comes back. they provide a cushion. ashish: they do provide a cushion, but again, you see the's flash crashes and you want to try to avoid these crowded trades that keep creeping up because everyone is diving into whatever they think works. anchor: i want to come back and jump into the terminal to illustrate what the selloff might be because there was this major correction last year, but if i am interpreting what you say right, this could be a different area. we are talking about yields here. this is showing you the s&p 500. versus 10 year we'll. the bottom relation between bonds and the yield. when it turns red, they are positively correlated in price. this has picked up quite a bit with the two being very correlated. it was the norm in the previous 30 years. what is happening here? ashish: so, we definitely see that quantitative easing is impacting that relationship between risk and risk reducing assets. one of the concerns we have right now is that as you see this inflation pickup, as the fed titans, even though they are s, even though they are tightening very slowly, you have to make sure you are going it into areas where there is good value and staying away from crowded trades. one thing we have been telling investors they have to be really careful about is duration because investors have poured into passive and gone after what they thought was a good performing passive asset class and in fact, they have got in the longer the rations. every investor out there needs to check the duration on their passive portfolio. scarlet: what about corporate credit? the us in a lot of companies raising money by selling debt. are these corporate credit issues attractive at the current price and the kind of environment? ashish: we think they are ok. it is a difficult environment for yield. going toe, you are keep seeing these deal take place, so where we like investing is actually in the secure space as well as in the emerging market space. those are two spot where people are being very disciplined around risk or actually taking down leverage. that is what you want to see as a credit investor. anchor: thank you for sticking with us through the reports. ashish shah. tohor: that is moved politics now. donald trump opened his new hotel in washington today, 13 days until the election. got to speak with the republican nominee about his campaign. i was just trying to say that we build a great building, took it out of the doldrums, and belted under budget and ahead of schedule. under budget and out ahead of schedule. we are in such trouble. this.appy with this building has turned out to be so amazing. mark: how does the building connect to your presidential aspirations? mr. trump: under budget, ahead of schedule. you look at what is going on, we are $20 trillion, and that was really, now, also, i wanted to comment stop, and it takes an hour and a half, but what it really says is you can do things under budget and great work. this will be one of the great hotels of the world. under budget and ahead of schedule. our country has to do things on the budget and ahead of schedule. to heare you surprised that hillary clinton has already criticized the hotel question marks -- hotel? mr. trump: i would not be surprised. just let me say, we had no undocumented workers. a false report was written that they found a couple out of the thousands of people that built it. we had no undocumented workers building this hotel, and in fact, we used e-verify for every single worker, was e-verify, and a newspaper came over and looked and said, "i think that person is undocumented." e-verify building. every single worker was documented and perfected. mark: are therefore not as in the building? mr. trump: that i do not know. i would like to make it so there were not, but unfortunately, this country does not make things any more. if you look, our country does not make things anymore. things you buy, air-conditioners moved to mexico. china, mexico, germany, they are making all of our products. this is one of the reasons i am running, because i know how to turn it around. when you build something like this, so much of the bidding have to go to other countries because we do not make products anymore. i would love to buy television sets made in the united states but they are all made in south korea and japan. mark: did the speech of differently? -- feel differently? mr. trump: it is different. when i am speaking in front of 25,000 people, like last night we had an amazing crowd. we have amazing crowd all over. we have maximum crowds. 25,000 and 15,000 that could not get in. the reason they told me why they could not let them in, stampede. mark: people told me this was a great trump speech. mr. trump: i think they are different, but that speech would not be well received if i am in front of 25,000 people with the spirit to make america great again, but that speech for the opening of a great hotel that employs a lot of people, etc., that is appropriate. mark: you redefine how candidates talk about polls. what is your general sense of where you are in the battleground states? mr. trump: i think we are winning iowa, winning ohio, winning florida, winning florida by much more than your poll says. that i think we are going to do fantastically in pennsylvania, winning north carolina, and will soon be winning new hampshire. we are going up, there. very close. i think, when i go there, people see, look, it is jobs, thick our vets.ary, fix our don't let the world take advantage of us. the message is absolutely the right message. i think we are going to win. mark: wikileaks, you and your campaign -- what you want people to know about your message? mr. trump: wikileaks shows how could that the whole thing is. it shows how unbelievably dishonest the whole thing is. you know what else it shows? john podesta says to things about hillary clinton. when he says she has bad instincts, honestly, i would not like anyone talking about me the way he talks about her. he comes out strongly that she has bad instincts, and she does not know what she is doing. mark: do you think your team is sending e-mails about you? mr. trump: i hope not. bernie sanders says she has bad judgment. when i look at any nelson by john podesta, that hillary clinton, who he works for, has bad instincts, that is a terrible thing to say. by the way, i do not want my president to have bad instincts. ark: under the weather? mr. trump: i feel great. that is not me. we will win. i really believe it. by the way, i wouldn't say it if i didn't really believe it. win -- we will try to win, we are going to win. if you look state-by-state, florida, we are up. believe me, that number is a low number, i really believe it. mark: you are not worried about arizona, utah, georgia? mr. trump: arizona is great. obamacare is going up 100% in arizona. i want stronger borders, which they want. sure, it is closer and i have a third party person running, which doesn't exactly help me. but arizona, i have been great in arizona and i think we will have a very big victory in arizona, strong borders, and we are going to terminate obamacare. it is a disaster. it was on a, just about higher than anybody else, over 100% increase. hillary clinton want to keep it and make it even more expensive. we are going to win arizona. we are also going to be doing a massive tax cut. she is going to raise taxes, i am going to lower taxes. mark: do you want to revise and extend health care? mr. trump: no, i don't want to revise. obamacare is a disaster. mark: using private coverage? mr. trump: i have so many different companies with obamacare, contractors with obamacare, and those people are suffering. i was not referring to the people. i did not bring them out to talk about obamacare or health care, i brought them out to show what a great place that is. but obamacare, people are suffering with obamacare. number one, it does not work. number two, it is so expensive they cannot afford it. number three, it is closing up businesses. mark: you are going back to battleground states right now? mr. trump: i am going back to north carolina. anchor: that was donald trump was not proper and -- with mark halperin. you can catch that right here on bloomberg television. scarlet: stocks closing the day mixed. the real action is in the after hours where we get heard from texas instruments, the chipmaker beating and raising third quarter beating estimates. it sees fourth-quarter revenue in a higher range to what it had previously indicated. that is still in line with what analysts were anticipating. tohor: we each have a stock talk about in the after hours. i will say mine is far and away the most interesting. anchor: i don't know, i have one that is beating on top and bottom line and selling off. anchor: that's groupon. tesla. it made the first profit in eight quarters so they made a profit of $.71 instead of a loss of $.17 or $.54 depending on which measure you look at. the company beat on sales as $2.2 billion in sales. we were looking at 1.8 billion dollars in sales. tesla just beating on everything will measure, up $10.41 in the after-hours or 5.2%. looking at groupon, admittedly less exciting. scarlet: not if you are a groupon deal lover. anchor: you are a snapchat guy, so do you use groupon a lot? anchor: i don't know. 709.illion, estimated the shares are now selling off a little bit. , scarlet of course told us earlier, they did announce they are going to buy livingsocial, which is still around. scarlet: it is a competitor. anchor: the acquisition was immaterial, they said, but they are going to close on that pretty quickly and chairs moving down, so perhaps the narrow beat they had was not quite enough. anchor: who would have thought you could take livingsocial out for an immaterial price? "what'd you miss?" shares of waste management declined. insted by higher volumes yield. the trust collector raised its annual guidance for adjusted earnings. joining us now from houston is waste management ceo david steiner. thank you so much for coming on the program. the me ask you how you beat -- let me ask you how you beat on earnings and sales. was the business doing better than analysts had estimated? were they too low with their estimates? alld: we are clicking on cylinders. when you look at waste management, there is three things to look at. quarter on price, 70 basis points higher than last year. we had a great quarter on volume, over 100 basis points higher than last year, and then recycling, which has been a drag for us the last three years added three cents to the quarters. we sort of have price, volume, and cost going in our favor. we were about 13.5 percent up from an earnings point of view, beat wall street consensus, internal expectations. we have been doing it all year and continue to do it in the fourth quarter. anchor: bloomberg businessweek wrote a story at the beginning of the month about how it has been tough for california, for example, putting so many bottles and cans in landfills instead of getting them to recycling centers or out to china, which would normally buy that because commodity prices have been too low. how have you seen a turnaround in the business? david: there is no doubt about that. when you look at that there is commodities that are recycled, there is some at right now are profitable. those are primarily fiber and metals, so aluminum cans are profitable and all the paper you put into your recycling bin, whether it is cardboard, newspaper, those types of things are very profitable. once you move into organics and glass, they become less profitable because the markets are down. in california, they do things to subsidize those materials to make it where we can make a profit and people can recycle those. elsewhere in the country, sometimes it does not work economically, but we say we will do whatever we do what our customer wants. we can recycle everything you have, 100% of it. it is just a matter of how much do you want to pay so we can remain profitable and we can get those materials actually recycled? scarlet: when prices are low, you have to charge municipalities to continue recycling. i want an update from you. are you renegotiating recycling contract with pounds and cities across the u.s.? what kind of numbers can you give us? david: we are about 90% through structuring the contracts. look, you tell us what you want us to recycle and what we will do is build you a matrix. you tell us the materials you want to recycle and we will tell you how much it cost us to recycle those and bad on a small profit for us and those will be the dollars that we will either get from selling the product or most of it from selling the product and maybe the municipality has to put out some dollars, two. wind commodity prices come back, it gets to the point where they can recycle for free. the commodity price can cover our processing costs. processing some materials is cheaper than others. it isou process them cheaper sometimes than others. we can put together a matrix or all of our customers whether they are municipal or commercial customers and businesses, we can put together a matrix that says what we want to recycle and we will tell you what the price will be, and we commit the best economic and environmental decision. anchor: the company right now, i'm not sure if it is one of the companies that falls under an interesting classification in benchmark indexes where you are classified as growth and value. how do you see your company, value or growth? becauset is interesting those various definitions that we all look at, i always look at them and it's interesting because i see sort of in a lot of different categories. what we tried to do is plain and simple, create shareholder value. we are all about taking our free cash flow and growing it. about five years ago, our baseline is about $1.2 billion of free cash. just today, our new baseline is about $1.5 billion of free cash. we have grown cash very handsomely over the last few years and started to see revenue growth, which makes us look like a growth company. on the other hand, we had a couple years of high profitability, but lower revenue growth, and when i am saying is, we will take it either way. we are looking for bottom-line profitability growth. if that means we have the loses some revenue because we have to lose some recycling contracts, so be it, as long as we are able to generate more cash for our his shareholders -- our shareholders. scarlet: we will just take the growth, all right. we love talking to about this sense of where the economy is headed. you are almost a proxy for the economy. , renovations, knocked down new homes,-- ,enovations, knocked downs result in a lot of -- david: we have been in a demand, supply deficit for the last eight years. we are not producing enough homes to meet demand for new home creation, new family we should be producing more houses. i find it interesting that one of the reasons we are not producing the houses is because we do not have the skilled labor. sector, thek at our transportation sector, i am also on the board of fedex, we have a shortage of skilled drivers and mechanics. here we are with hundreds of thousands of jobs that can be filled and everybody talks about closing the income gap by raising the minimum wage. i say close the income gap by raising the minimum level of training. if we can train people to be mechanics or drivers, if we can train people to be skilled jobs are oute there. let us not talk about closing that wage gap is looking at a minimum wage job. how about we train people to get a high value job. how about a job as one of our mechanics where you can make 60,000 to $80,000. how about skilled craftsmen in the homebuilding industry where you can make really good money, a lot more than minimum wage? let us look at minimum training rather than minimum wage. matt: talked about your free cash flow. your dividend is the bottom line dow jones industrial companies. are you going to raise that, put cash to work there? david: annually, we look at our dividend and have raised it over for percent -- 4% to 10%. cash,generate more free when we go from one point $4 billion as a baseline to $1.5 billion as a baseline, we have a hundred million dollars of extra cash. i would fully expect that we'll continue to grow the evident commensurate with cash flow growth. anchor: david, thank you so much for joining us. david steiner from houston, texas. anchor: coming up, a depreciating yuan is setting another currency growing, bitcoin. ♪ scarlet: i am scarlet fu, "what'd you miss?" yuan iskness in the resulting in a boon for another currency. come into the bloomberg for my deep dive. when they go low, we go high. i like michelle obama. when the yuan goes down and value, and i have inverted it here, that is the blue line, you see bitcoin, and bitcoin is very popular in china. china accounts for 90% of their trading in the bitcoin and crypto currency in general. it allows chinese people to invest in other currencies, another way to get around cap outflows. anchor: it is the answer to so many questions. anchor: does it not raise even more questions with a? anchor: i don't think so, no. anchor: you get that coin, right -- bitcoin, right? i think the answer is no. anchor: and adjusting chart on bloomberg from our first word commodities team is a forward-looking take on brent prices. we are talking about brent, not crude. the topline is showing you to bank from contracts, and the blue one is for june futures. the white one is for november. --t you are looking at the looking at is the spread. you can see the blue line has moved up. the bottom panel shows the spread. if i have oil in store, i might want to hold onto it. take into account, that if you assume it inventories are generally going to be positive, at some point, somebody has got to give. prices will react negatively and move down. anchor: this is the dreaded or celebrated contango trade. it is so valuable later on that you are more likely to hold it on a container ship or somewhere rather than bring it in and selling it. great charts. of next, highlights from our exclusive interview with the ceo of my capacity. this is bloomberg. ♪ scarlet: "what'd you miss?" paschi sixmonte dei investors. marco morelli spoke exclusively to bloomberg daybreak europe. i thinki've --marco: the business plan projections was the first step toward moving bank -- when the bundebank, and seek outside investors. this is something we could have started on the on the business of the new business plan. in this is already best interest is already there. we moved to stage two and see where we are heading. guest: that is it for the interest. our investors actively approaching you? marco: at this stage, at that stage, we could not engage. this is what we are going to do. manus: lots of press reports that you are speaking with qatar, abu dhabi. are you approaching sovereign wealth funds? are you moan focused on asia or america? -- more focused on asia or america? marco: we want to speak with a multitude of different investors and then we will will define what is the best route we want to pursue and see what is the most appropriate potential. do you have a number in your head? are you opened all things? marco: we are open to all things. this is going to be a mixture of interest from core investors, interest from institutional investors. we need to find out what is eventually the conversion rate of bond conversion we are going to loan in the next few weeks, so difficult to gauge as we speak, what is going to be -- manus: what would you hope for? you have 5 billion you want to raise. what is your best ambition on this, because the three legs of this deal are tied together, aren't they? marco: they are. at my ambition as the ceo of the bank is to look for long-term stability. we need to make sure the bank eventually -- manus: how much would you like to see that converted from debt? marco: difficult. hugetually receive a interest from bondholders to entertain talks vis-a-vis the potential conversion, so at this stage, difficult to come up with a firm number, but this is, at the end of the day, we want to make sure the bank raises the 5 billion. the 5 billion are actually a base upon which we projected the plan, and this is what we want. scarlet: dallas monte dei paschi's ceo martin marelli. -- marco morelli. this is bloomberg. ♪ scarlet: "what'd you miss?" tesla reported its first profit in eight quarters. livingsocial. don't miss this. you third quarter gp coming out at 4:30 a.m. new york time. matt: deutsche bank report earnings. oliver: john: i'm john heilemann. mark: and i'm mark halperin. all due respect to donald trump's statement today, he may have been above schedule, but you are a little lower count. mark: a schoolyard fistfight. dan hillary clinton message finale. less than two weeks away from the election, donald trump did what every underdog presidential candidate would do, attend a hotel ribbon-cutting with his family in washington dc. there has been some head scratching over this move, with critics accusing

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