In europe, a bloodbath. Major indexes down more than 1 , the dax off almost 2 europesu get economy going again . Mario draghi and the finance minister different answers. Draghi spoke. Wolfgang schaeuble urged governments to keep up budgetary discipline. Cap up the drumbeat on the necessity for budgetary reforms. I do not sounding argument compelling. Microsoft Ceo Satya Nadella ts a do over on a question about women asking for wages. Womena was asked what should do when they feel uncomfortable asking for a raise. He repeated advice believe in the system. Eeted. Ards, nadella tw close gender must pay gap. As ceo of microsoft, he is wellpositioned to do that. Has unveiled an allwheeldrive version of its model as. The new tesla has a radar that can see through fog, plus two motors to better handle snow. Here we go woah. Did you see that. Out, with aound test drive with elon musk, 691 torque. Er, 687 feet of seconds. N 3. 2 musk told her its not all about speed. Can have theou a moreoperate in efficient regime more of the time. 10 miles more highly range. Other allwheeldrive system, you lose range. In this one, you gain it. 000 without any options. We bring you the full interview with elon musk ahead. Those will sell out. The Worlds Largest online retailer is going to brickandmortar. Amazon will open a store in manhattan during the Holiday Season according to the wall street journal or the permanent no word onrt 0 what it is selling. Global markets are tanking. My guest host for the next hour is not optimistic. Wideranging breadth we saw last year has narrowed. This is a warning sign that the bull market is getting tired and may be coming to its end. Ritholtz Wealth Management joins us. Scarlet fu appeared and want to put into perspective what we found yesterday. It comes on the heels of quite a rally. Placid summer. Y we got a shakeup in the last couple days. 3 days of triple digit point moves for the dow. The last time the dow gyrated this much was 2011. Within the s p 500, almost 90 percent of members declined almost 97 of members declined. For the week, on track for a decline. 2 . And dow down still up year to date. Right, within 5 of all time highs. Longer term, the way bull markets end, they fizzle. Weve seen it with a small caps. Notmidcaps, not as bad but doing nearly as well as the s p 500. Less locomotives pulling the train, it is a. Arning sign we have had this narrowing and that it reversed itself in 2011. Toyou jump to a conclusion quickly eu leave a lot of money on the table. This is a warning shot across the bull. No one could really pinpoint what the trigger it was for yesterdays selloff. Everyone pointed to oil, down 20 from its peak. There was the fomc minutes and a catchup reaction to the rally in bonds. No one could identify one trigger. It is a draghiWolfgang Schaeuble fight. The imf has said europe, theres a problem in europe. Europe has a problem . Markets are frothing. First time ive heard that. A lot of what happens day today is random. Its noisy, theres a cartoon about what starts out as someone using the word sell becomes this giant climax, the same thing happens on the buy side. Theres a tremendous amount of randomness. It is a crowd of monkeys punching keyboards. Sometimes 300. 0, down 300, up what happened that we didnt know . Europe has a problem. Ipos and tech, frothy. Sometimes these things just begin you thought draghi could come to the rescue. We talk about his bazooka, ill do what it takes. When wolfgang shapleigh says when Wolfgang Schaeuble says no way, jose. They met in milan. Problem between europes policymakers. Wein the u. S. , even though have been cutting back jobs and the federal governments growing slower, by and large weve had a reasonable amount of stimulus. A reasonable amount of activity. Plus, qe and tarps and all the other liquidity facilities the fed has put into place. The stock market is doing pretty good. Europe has been running austerity and its been a disaster. We have the next hour. Barry ritholtz, my guest cohost for the hour. Betty is going to be back. The wait is over. Elon musk unveiled the d, betty today for a test drive. It looks amazing. I am surprised, even though i kind of knew what was coming. We give you her reaction, next. Breaking headlines. Lets go to olivia sterns. Blackstone,ine on it is said to divest its advisory business. It will divest its group that advised companies and large investors. Business, which includes mergers and acquisitions, restructuring and fun services parkhill group. The second headline is not 21st century fox and apollo, leanne blacks private equity fund, are forming a new content group. 21st century and apollo to create a content creator. Happy friday. We will talk to you later. The anticipation is over. At an event in california, Tesla Ceo Elon musk unveiled the model which they claim is the fastest fourdoor sedan in the world. Betty liu was at the event. She asked if he was surprised to the reaction of his tweet. The fact that the dual motor has such a significant force, it really improves every element. From handling, even the handling is better than any other although drive. We were able to transfer the torque from front to rear. Of thee the acceleration car. The dual monitor provides redundancy. Seems like an unlikely thing to happen. Maybe i dont know. Maybe it is surprising. I never followed the stock that much. Sometimes the stock moves for random reasons. If that ends up being a barometer, it is not a happy life. Ago, you said you thought the stock was high. It then fell about 10 . Do you still think the stock is a little high . On how people it simply is a longterm part of the stock, there a lot of appreciation that will occur in the longterm. In the shortterm, it is difficult to predict the fluctuations. For as seem as though, company that had a few billion dollars of revenue last year, to have a 30 plus billion dollars market cap is on the high side. Interneteople on the say that. So you still felt that way . It is difficult to predict shortterm fluctuations. Longterm holder of the stock, i do not think they should sell the stock. I think it will appreciate and be much higher than it is today. In terms of shortterm fluctuation, that is impossible to tell. We will go through the features of the model d. Im interested about the legal applications of having autopilot. What happens if the car does crashed . Who is going to be responsible when the car is on autopilot . It is important for us to differentiate autonomous driving versus autopilot. Autopilot is what they had in airplanes. There is still in expectation there will be a pilot. He onus is on the pilot to make sure the autopilot is doing the right thing. We are not at a stage where you can go to sleep and wake up a earne wake up at your destination. We would collect autonomous if that were the case. We are making it easier and more comfortable to drive. Featuresporated safety so the carlos pena slain or and incorporated a lot of safety features so the car will stay in its brain or avoid obstacles. Not address the question. Lets say it is on autopilot. Says is and the driver changes supposed to lanes and it hit this barrier, i went tesla to be responsible. Clear withing to be customers that the responsibility remains with the driver. Were not asserting that the car is capable of driving in the absence of driver oversight. The case at some point in the future. Maybe five or six years from now. Tohink we will be able achieve true autonomous driving where you could literally get in the car, go to sleep, and wake up at your destination. You have to have a fully redundant systems. Everything has got to be redundant so any one system breaking does not result in an accident. You have to prove that out over lanes of miles of driving. To prove thatve to the regulators and convince them it is safe. From the point at which true autonomous driving is possible, which i now think is innate five or six year timeframe you said that before. I thoughte years ago, it was more like 10 years. But based on progress we are making, i think five or six years. Its probably going to take two or three years before the regulators approve it. They will want to make sure it is truly safer than driving with a person. The standard for fully autonomous driving is going to be greater. If it is equivalent, that would not be enough. No change at all in the battery and what you are doing. Is there going to be a change in the driving range . It actually enables a range increase. We are able to balance the efficiency of the motors more. If you have one motor, it is always on a particular efficiency curve. If you have two, you can optimize between them and have the motors operate in their more efficient regime more of the time. The net result is that we are able to get 10 miles more highlight range just by going to do motors. In every other allwheeldrive system, you lose range. Joins us from los angeles. Also joining us, michael, who covers tesla. Betty ive been in an autonomous car. Maybe somewhere between autonomous and autopilot. What does teslas autopilot feel like . I remember. You were speeding along and it stopped for you. Fast. Not go quite as the only fast part was a human being behind the wheel, elon musk. Youht it was really have got to say it is very cool. The car changes lanes for you. What was the most interesting was that he showed me that it was passing a speed limit sign, said 20 30 and one five. Right away on the odometer, it changed and adjusted without you doing anything. It break automatically. Youannot imagine a day where would go into your car and fall asleep and arrive. I would be freaked out. People in the industry agree that that will happen in five years. I do not think elon musk is fall r off. To be theures seem same features in very expensive mercedesbenz products, bmw and rolls royce. They are exciting but not groundbreaking. That is what is interesting. It was a phenomenal car. We talk about the car, thats a different story, that is groundbreaking. That blows away Everything Else in the range. Porsche, lamborghini cannot do this for 120,000. Im not sure this was a game changer. At tesla is playing catchup. You look at allwheeldrive and keeping you in your lane with automatic brakes. These are features that have existed in the election market for a number of years. Something that tesla needed to do to stay competitive. Tesla as a growth story, the more interesting question has always been how and when can they break out of the luxury segment and get into manufacturing, more massmarket cars. Did elon musk have anything to say about that . This is a luxury home run. What about the rest of us . Youre going to see this autopilot feature in every single one of our cars. In the model three, the cheaper version everybody is waiting for. Betty is going to have more from l. A. With different guests. Michael, thank you for joining us. We are going to take a quick break. We are back in two minutes with more in the loop. You are watching in the loop the television and streaming at bloomberg. Com. I am matt miller in for betty liu. Our topook at headlines. The mystery surrounding north unrean leader kim jong deepens after he missed a celebration for the 69th anniversary of the korean workers party. Kim has not seen in more than a since the longest hiatus he came to power in 2011. Senator john mccain says he is disappointed in turkey for its lack of action in fighting islamic state. Mccain appeared yesterday on bloombergs with all due respect pickup he praised the plan to create a buffer zone along the border with syria. Waht e what erdogan wants s a buffer zone and a nofly zone. You have got to have a buffer zone and a nofly zone. That has been rejected by this president. Mccain says essentially Ground Forces will have to be used to fight isis. Because there is no other way to fight it. 2008etails about the financial crisis. The trial of it a bailout of aig, including the fact that Federal Reserve chairman ben bernanke used a secret alias as he tried to save the economy. Ben bernanke signed emails using the name edward quinn. A spokesman said the name did not have any significance. It is a weird choice. 26 minutes after the hour, bloomberg as on the markets. For s p and. 5 down, down future cup down 81 points. After this latter equity markets entered yesterday with the dow falling 334 points. Back to breaking news. From blackstone, divesting its advisory business and making staff changes. Lets get straight to Erik Schatzker. I would like to draw everyones attention away from the markets to talk about what is happening at blackstone. You know this firm for private equity, for credit and real estate investing. The Worlds Largest alternative asset manager. Blackstone is an advisory business. Effectively, and Investment Banking boutique. According to people familiar with the plans, the company is going to spin this advisory independent into an company. It is not selling it. It may ultimately raise some capital. Right now, it is going to be distributed to existing shareholders. They include the chairman and ceo steve schwarzman, who will become the largest shareholder of the new firm. Make for anto interesting situation. , in the middlel here, will be joining blackstone. He had a 27 year career at Morgan Stanley. He will be the ceo of the new advisory business. I want to bring in Barry Ritholtz, Bloomberg View columnist. You mention that this is not necessarily unexpected. That is right. We end up with the company that is making people if its its money not managing money directly but offering products for third parties to use. Where theook at revenue is coming from, this makes a lot of sense. There is all sorts of compliance rules and regulations they have to deal with. There are a lot of Different Things that they are focusing on. Twoink this gives them des different companies, a little bit cleaner and manageable. A problem onremain wall street. Think about Goldman Sachs telling its Investment Bankers they can no longer buy and sell stocks and bonds. Conflicts exists inside blackstone. Think about dell, blackstone wanted to advise michael dell, blackstone as an investor was considering going into business with michael dell. In the end, it was silver lake. That is the conflict laxton has had to wrestle with having this Investment Banking boutique inside the firm. Becomes public, revenues are going to be close to what most and Company Generates what molis and Company Generates. Reasonable to assume that this might have a semimarket value. One has to wonder whether it is going to be fully five. Valued. We continue following this story and we continue following the big story. Markets down, futures off. 5 tothe u. S. , in europe, 1 2 . The bloodbath in equity markets. The worlds Biggest Company is not big enough for one man, activist investor carl icahn. In a letter to tim cook, icahn made a case for why the company aould be trading at 203 share, twice the current price. He reiterated his stance on interview yesterday. Every time they sell a phone it is an annuity. This deserves a better multiple, not a worse one. Timesgoing at 8 or9 earnings when it should be going at 10 or 20 times earnings. Matt levine had a great , which wasthis tongue. Essentially saying carl icahn is talking his book. He wants more money. I want more money and you want more money. Not the best strategy. I dont want to take anything away from carl, hes a phenomenal investor with a tremendous track record. He knows that business really well. On the other hand, you have got upwonder, everybody offering ideas, suggestions, and criticisms for a company that has been by any possible measure wildly successful. Hey, you guys, just because you are the biggest market cap in the world and you disrupted seven separate industries and essentially created for new product lines that did not exist and everybody is imitating you, let me tell you what we should do. It comes across a little bit hubristic. You have to give apple a little bit of the benefit of the doubt. Despite the glitches and peoples hair getting caught, which happens with every phone. My hair has not gotten caught at all. I cant figure out why. Carl icahn does seem persuasive. When he suggests a strategy or Something Like a buyback, which is not really a strategy it is, use of cash. Management fights him and then goes along with him later in every case. Tim cook is no exception. I disagree with that. You see a company with 200 trillion in the bank, i ggerate on purpose, need eventually a buyback is going to happen. Thats what companies that have huge piles of cash do. To say apple did a stock buyback because of carl icahn, i do not buy into that. Theres a difference between taking a company that is on its heels and has internal problems and has managerial problems and , thoseenues have dropped guys are going to do whatever they need to do to make carl icahn happy. Apple can shrug it off and say go away, kate, you are bothering me. This is the Biggest Company in the world by market cap. I appreciate your sarcastic exaggeration. I do not subscribe to the theory that sarcasm is Barry Ritholtz is going to stick with me. Lessons from china. Theolns ceo talks about opportunities and challenges of doing business in asias largest economy. We stay on top of the biggest story of the day, the markets, 334 point drop in the dow yesterday and 2 drop in dax today. Stay with us. Welcome back to in the loop. Social Media Companies like facebook have had a tough time china to crack the Chinese Market. They are told in order to play china, they need to play by the rules. Censorship rules. Site, a hugeched a step in attracting what it sees as when hundred 44 million potential new customers. The entrance has come at some cost. We are talking about selfcensorship. Betty liu sat down with linkedin ceo jeff weiner in san francisco. He discussed what he has learned on the journey to china. You learn a lot about what matters to you as a company. It brings the executives together in terms of their own values and principles. You want to make sure that you are creating a space for people to be able to talk about what matters to them and what is most important to them. You also learn about the challenges and how to best position companies to be able to do business there. They arent thinking through some of the things we were talking about, how you are going to structure the business and china. You have two partners there. We have two partners and investors. It is a joint venture. You must think truth who is going to be leading that effort. , our president e of linkedin and china has a lot of experience with western companies. Has experience with chinese companies. Grew up in china and was educated in the west, is an entrepreneur at heart and an engineer by training. Build a sales oriented company. Very cross disciplinary. That helps tremendously. Our ahead of china reports directly to me. That is very important. At times, youre going to have to make decisions and move quickly to keep up with such an entrepreneurial environment. Historically at some of the companies that have stumbled or experienced challenges, and park that has come from potentially having your head of china report to a head of international that may or may not have reported to the ceo. You have to be leveraging so many different horizontal functions. To make sure you are making the decisions and you were directly involved with whatever was happening in china. I wanted to make sure we could set the team and to be successful. If our team and china needed to navigate the Global Platform or a functional area they were dependent on that was not located or headquartered in china, i wanted to make sure that we would treat that with the right sense of urgency and the right prioritization. That is something i can help with. Is different from other parts of the world. Most of the operations are sales and marketing oriented. China will be one of the first beijing will be one of the first cities. China will be one of the first countries where we will be doing local development. We do local development in india out of bangalore and delhi. , we operate inrt 30 cities around the world. Salesjority of those are and marketing oriented. Before we go, on a final note on china, do you expect that one as big orwill become even bigger market for you than the u. S. . Or not. Defining ite through knowledge workers, our addressable opportunity is 144 million professionals and students, preprofessionals in china. That is one in five when you expand that to include students. To realize our vision, given the increasing importance of china to the Global Economy, it is clearly an important part. Betty liu is back with us from los angeles. Barry ritholtz, my guest host for the hour is still with us. I like to refer to him as my voice of reason. Talk about some of the censorship challenges that linkedin and other companies and china have faced. s talk about facebook problems. Twitter follow some of the same challenges even with the u. S. Government. Yahoo has had difficult times. Almost every Major Technology company that has tried to enter the Chinese Market has had a problem. You mentioned twitter, facebook. They were both banned in china. Facebook users there have limited access to the social media company. Twitter is largely absent. You mentioned yahoo , people forget about this example. 10 years ago, remember yahoo had given some private information on one user and that led tornalist, that persons arrest. Yahoo was essentially heavily criticized for that move. That was the price that they had the paint and that this journalist had to pay for operating in china. Linkedin said they have had their own issues. Payhey were willing to that, pretty amazing. At that time. Interesting to see what is going on with twitter. During times like the arab spring, twitter has not been going to pay that price. Twitter is now fighting for free speech in the u. S. , dealing with government spy agencies. Other companies are willing to do what they need to to make the ultimate profit. Like linkedin. They entered the Chinese Market around the jazz and resolution in china around the jasmine in hong kong and china. Users opposed selfcensorship. You have technicalities where people in the u. S. Were posting about china, the articles were banned around the world, not just in china. There have been stumbles. As you heard from jeff weiner, he things it is more important for the company to be in that market than not. Interesting. My question for jeff weiner, what can i do to stop linkedin from relentlessly spamming me in . Y time i log i do not want to get 1000 resumes a day. It has made the site less useful. I know what you can do. I think theyre going to run in the same problem google has run into an amazon is running into in china. There is a tremendous bias in favor of the home team. It is a government mandate. They arent part of these companies. A fairmpanies do not get shot competing in china. You can try and play by their rules, ultimately there will be a linkedin china imitator and they will get every benefit of the doubt from the Chinese Government and all sorts of linkedinsill go way. We saw it with google and we will see it with facebook and everybody else. Barry ritholtz is going to stay with us. That he has an interviews. We will hear from her throughout the day. Yes . Here for the day. We will take a quick break. Back in two minutes with more in the loop. Have you ever noticed there are always want or two suitcases rattling around the baggage claim after a flight that no one collects . Where does it go . I went to the nations only Unclaimed Baggage retailer in alabama to find out. Checked bags go unclaimed or are lost at the airport. The airlines reunite most of the back eventually. For those that do not make it, scottsboro, alabama. Home of the Unclaimed Baggage center. Americanly store in that buys and resales Unclaimed Baggage from the airline industry. Weve been doing it since 1970. You never know what youre going to find. Stocks 7000 items every day from an inventory of Unclaimed Baggage and cargo. Through decades long purchasing partnerships with air carriers, train lines, and bus lines. Bags are purchased. Whatyees the term and to sell, clean, donate, or throw away. Not as easy as it sounds. Oh. Girl. He was a good anything that says coke has a good resale value. These are her jeans. She was not a great dresser. And one is dry cleaned of the largest drycleaning operations in alabama. Of defenseent protocol is used to clear data from electronics. Many highvalue items, with appraisal papers. Baggage does not sell anything online. There is only enough inventory to support a single brick and mortar location. A bucket list destination for many and a top tourist attraction. Im from california. How do you find this place . An app. Where you from . Michigan. Outside detroit. On our way to san antonio. Items list of unclaimed surprising. Moose antlers, wedding rings, rolex, peoplea will travel with anything. If you are thinking of making a special trip south to find your lost bag, think again. We have people that come in looking for their items. It is like a needle in a haystack. You may have noticed i was wearing in a egyptian caftan. I have a poncho. Digging the hat. I got a cricket bat. Just to illustrate the weird stuff you can get. They have a lot of normal stuff. Beats headphones, iphones, stuff you might buy and use. I feel like i am wearing tom keenes hat. That is fascinating. You would think that lends itself to online. Apparently it is brick and mortar only. Do online. Not each of the items individually would take so long to put in there. The prices are also not incredibly cheap compared to what you would pay on the street. Beats headphones that go for 300 would go there for 200. Not sure what the underwear were going for. They have some interesting stuff. November 1, they have a sale on skis. Kids from colleges around the area will camp out overnight on october 31. Sounds like a horrible halloween. Depending how much you get the skis for. Where going to take a quick break. We will get back to the serious stories of the day. Like the markets. Is meltdown too strong . Yes. We are wildly overdue for a correction. Nhl hockey season is underway. Who are the favorites in the race for the stanley cup . We ask someone who won the cup twice. Is 3. 5s big number trillion. How much Global Equities have lost in value since hitting a record last month. Everywhere you look, the numbers are grim. All caps grill index heading for a third weekly drop, the longest losing streak in 13 months. The s p 500 coming off its worst performance since april. 56 minutes past the hour. Bloomberg is on the markets. S p futures and down futures down. Recovering a bit. We will cover the market story for you. Stay with us, we are back in two minutes. Welcome back to in the loop. Stocks appear headed for another day in the red. Futures indicate stocks will open lower. Stocks in europe and asia also slated. Worlds largest alternative asset manager divesting its advisory business. Like stone will spin off the unit that advises companies and large investors. The spinoff is aimed at reducing conflict of interest at blackstone. The new fourwheeldrive version of teslas model s. It can see through fog. Betty liu got a test drive with elon musk and find out what two motors can do. Seconds, 3912 horsepower. It comes with a time as driving features. As elon musk told betty, it will be sometime before there is a true self driving car. Or six years from now, we will be able to achieve autonomous driving where you can get in the car, go to sleep, and wake up at your destination. Ready fors getting it a venture. Funny First Century thoughts and Apollo Global 21st century fox and Apollo Global. Ecb president mario draghi is at odds with germanys finance minister over what to do with europes economy. Draghi is in washington, d. C. For the imf meeting. Pledging to ease Monetary Policy more if needed. German finance minister wolfgang is warning against u. S. Style quantitative easing. Draghi is hammering away on another issue, the necessity for structural reform. I am well aware of the argument that reform is better achieved in good times. I do not find this argument compelling. The squabbling between the ecb and germany has got investors on adage. What is the best way to position yourself admit the volatility . Joining us is president and chief investment strategist of ardeni research. Still with me, Barry Ritholtz, Bloomberg View columnists. I had been calling you the voice of reason. You point out i am being sensational. Being a little bit sensationalistic. We do see a lot of volatility. 100, 200, 300 point swings days in it grow. The market is swinging between fearing that the Global Economy is slowing and fearing that the Global Economy is slowing. It is bad news. , bad news has been good news as we have seen. Bad news means the central bank will maintain Monetary Policy. The Central Banks are starting to lose their credibility. The ecb has provided a fair amount of liquidity and is continuing to provide more. The bank of japan has provided liquidity. Yet their economies are stalling. Investors are that confused and rightly so. Rather than talk about the Global Economy, lets talk about the Global Economy slowing. Todayseen yesterday and in europe a bit of a global taper tantrum, have we not . Yes and no. I agree that the liquidity that has been provided by central had a hugeot really impact on the economy. The other side of the argument is and as if these guys were not doing it would be. The distinction between europe and japan and the u. S. Is that realtime austerity experiment. U. S. , weve had some local states that have really clamped down on spending. Their economies have suffered. We had a big stimulus year, they did not have that in europe. If you look at how much further ahead in our recovery we are. Not just the stock market, but gradually, admittedly slow, improvements in employment, retail sales, and gdp. Below what we would like to see but ahead of europe. They should not be so focused on their Monetary Policy. They need to look at what they are doing wrong on the fiscal side. Structural changes that draghi is encouraging. The germans are not really doing been. You think the outlook is . We can talk about what should be done. As an investor, you need to worry about what will happen. I dont think we will see much on the fiscal and regulatory side. Italy might be moving further ahead. Spain has made some progress. I would not rule out progress in europe, especially on some of the regulatory issues. What you see now is what you get. The u. S. Economy is going to continue to outperform the rest of the Global Economy. Europe has a problem with their credit system. The central bank there is providing liquidity but the Bank Regulators are stepping on the brakes. Kind of spinning out. Is not working. China is slowing down. A stronger dollar and weaker commodity and oil prices. The downside for the u. S. , the Energy Sector has been a boomer. Oilit may slow down if prices stay down. I think the market is done and will remain choppy. , by 2014 on the s p 500, we got there around september 19. September 18 was the high. We are going have to wait. Next year, we climb higher. I do not disagree. Let me give you a broader context. Last year with dividends, the s p was up over 30 . When you look at the small cap 38 and smallcap growth, smallcap growth was up over 40 . That is not one years returns. That is 2, 3, or four years returns. Way ahead of ourselves. You have been covering this and describing why you thought markets got ahead of themselves. Sometimes you need a period of time to digest. Will tell. At the least, a correction has been overdue. I want to quote neil quoteng, 0 i want to twitter. Anam coming off the top of artificially inflated market. Do you see it that way . With the benefit of hindsight, we had a multiple up last year. They got more than fairly valued at the beginning of the year. This is healthier than continuing to go straight up. From last year is healthy. Even the fed does not know what they are going to do next. Which is also contributing to confusion. The three scenarios normalization, one and done, and none and done. Is not sure where they are going. Ed on the phone. Barry ritholtz will stay with us and keep a lid on some of my froth. Linkedin is the Worlds Largest professional network. With more than 300 million members. The companys ceo, jeff weiner, tells us how he has grown and thrived amid tough competition. Linkedins growth story has been synonymous with the stock stop shares up over 300 . Expanding business to more than 313 million members in over 200 countries and territories. That is spoke exclusively with , who reflected on the past five years. The story is one of Significant Growth in terms of membership and business and in terms of the products and services weve been bringing to enabling members and customers to get value from the platform. Through this company to substantial proportions at a time when the jobs market people were looking for jobs and it was a struggling market for job seekers. The job market has gotten better. Some have said as the market improves, might that be more of a struggle for linkedin . No. Of being a platform helping people to find jobs is wind there are fewer jobs to go around, when people are struggling to find work, they turn to a platform like linkedin. They realize their network can help them find opportunities. When there are more jobs available, recruiters and hiring managers need to find the best possible person. That has been one of our killer apps. The ability to do searches from what now amounts to over 300 million members and find the perfect candidate. Are you a content Company First . Are you a social media Company First . Distinctgot two businesses. We are a professional network. Our professional Network Enables people to generate value by virtue of leveraging 3 primary assets. The first is professional identity. Yourability to tell story. Your experiences and what you are trying to accomplish. The second is as a network specifically and the way you build and nurture relationships ever time. And create opportunities. The third is knowledge. To makeity for People Better decisions faster by virtue of staying informed and becoming more knowledgeable about their industry. Those are enabling capabilities. , those enable people to be better at the jobs they are already in. Is notcontent side, that going to be the high growth part of your business. The higher growth is companies, employers who used your recruiting tools and who are on linkedin. That has been the growth. When you talk about growth, there are different ways to define growth. There is growth in terms of membership, revenue, in terms of our bottom line. There is growth in terms of the way in which members are using and engaging on linkedin. Is funny. You said content is not necessarily a growth engine. Content, in light of our professional publishing efforts, has emerged as one of our fastestgrowing businesses. If you are looking at the number of unique users and page views by virtue not only of posts generated on linkedin but also thirdparty publishers bimonthly views you are growing exponentially. You mentioned a 600 million goal of knowledge brokers. You opened up to younger users. How many members are you signing up that young . Younger members, starting with college students, is one of our fastestgrowing demographics. We just now started to roll out products designed for people who are not yet in college. We are helping them select which college they want to apply to and ultimately attend by virtue of starting to think about their career path. Betty is back with us from los angeles. Me a favor. Simplify what jeff said. Their efforts to grab more members, they are going to not only put out College Rankings for teenagers and graduates, but also, they are going to cull this data they are getting in various cities. They are going to find out where the skills gap is. They are going to go to colleges, technical schools, and years,em in five or 10 this is who you have to train to fill those jobs. That is a forwardlooking data they are gathering. Iste interesting that this what they are doing with this data. Fascinating. I love the idea of Data Analytics as a business driver. I have criticized them for how much junk i get. From your experience as a user and an employer. Every time we have a new hire, we go to linkedin. It is very successful. You are criticizing them as a user, you do not enjoy the experience. I do not enjoy getting buried with resumes. But when you need to hire someone tool. A great well, thatammed as is irritating. For recruiters, it has been an invaluable tool. We hear that employers used to use linkedin and 2 or 3 of the time and now they are using a 10 or 15 . That is where their margins are getting higher and higher. Drivingthe business linkedin now. There are a lot of competitors that you hear less and less of. Look at munster. Inive not heard about them a couple years. Be surprised to see acquisitions. The bottom line, i complain about it but we use it. Barry ritholtz, thank you. Betty, we will see more of you. Goodbye for now. Are you getting sick of me . Im looking forward to watching you throughout the day. I will see you this afternoon. Back in two minutes with more on in the loop. Tomuch more of in the loop come. Betty liu takes a test drive with elon musk in the new model s p85d. Stick around to see what this can do. You are in the loop. 26 minutes past the hour. Bloomberg is on the markets. Momentsin the last before the opening bell. After the huge drops we saw yesterday, the worst day since april in the u. S. The worst week since june 2013 overseas. Futures in america are recovering. S p futures down. 1 . Our futures off 26 points. We live on the markets. Down tooing to count the open with a top 10 stocks, the only ones you need to know about. To kick it off of number 10. Yelp the Online Review site rated a buy. The firm is bullish. Shortterm warned of volatility. Yelp shares are flat. Family dollar reported earnings that trailed estimates with price cuts narrowing Profit Margins during this. Current quarter will be the most challenging of the year. Groupon shares falling. Ever car cutting to sell from equal weight. Equaloes not include rate. Shares , groupon down. Divesting itsis advisory business, according to a person familiar with the plan. The spinoff is an effort to reduce conflict of interest. Stephen schwarzman will be the largest shareholder in the new company. Jp morgan. Jamie dimon makes his first public appearance since undergoing treatment for three cancer throat cancer. He will be joined by james gorman of Morgan Stanley and Brian Moynihan of bank of america. He makes his appearance before the Company Reports earnings next week. Sharesper networks plunge after results that missed the companys forecast. Lower than anticipated demand from service providers, namely here in the u. S. The company will release thirdquarter results october 23. Tesla motors shares in the announcement. Big elon musk was not worried when he sat down with betty liu yesterday. If somebody is a longterm holder of the stock, theres a lot of appreciation. Number three, gt advanced technologies. The bankrupt apple supplier exiting the business of making synthetic sapphire for mobile phones. Interrup it abruptly filed for bankruptcy. Shareholders, starboard is pushing for the company to break up. Marissa mayer facing pressure to reward stockholders. Stock , it is thevix diwali in text is through the rift. Vix has surged to the highest level since february. R anyone wholay fo lived through the readings a polar vortex in equities. Hear the oopepening bell. I will bring in someone who has been warning of a demise. I want to get these two into a decision. Mark, im going to kick it off with you. What do you think were seeing here as far as the equity selloff that we have had yesterday in the u. S. And right now over in europe . Well, i mean, they are there are always a number of factories that depress stock prices. I believe that the fundamental prices r weaker stock in the last few months has been essentially the recognition by the Investment Community that Global Growth is not accelerating but actually slowing down. E have an emerging in emerging economies very clearly the slowdown thats occurring. Particularly in china, where year over year, electricity consumption is down. Year over year, Railway Freight traffic is down. Exports, as reported by china, but not by its trading partners is still expanding, but has also slowed down. And so we have also europe, where at the present time theres practically no growth. And also a slowdown, and essentially the u. S. , where people say growth is accelerating on the up side, but that is not validated by the bond market. Hey, marc, let me jump in here and ask you about the i. M. F. Take on this. Because they are saying yes, there are shaky markets. Especially what were seing in developing markets and europe but that the u. S. Strength is going to rescue us all. Plus you do have mario draghi willing to take any step necessary to save that economy if from another recession. Ha ha ha. No . I think actually we have fiscal policies that are expanding in most countries, because we still have deficits. And we have essentially monetary qualities that are financing the deficits. And i think the principle problem that the current policymakers dont recognize is the fact that the larger the government is, the less growth there will be, the less dynamic the economy will be. Marc, let me ask you a question about that, because that raises a really interesting issue. You and i know each other from various conferences weve attended together. Yes. Yes. Nice to speak to you. Yes. All the things youve mentioned, europe being weak. China slowing down. Those things have all been pretty well known for quite a while. So the question i have for you is, why wednesday and thursday and tugse this tuesday this week . Couldnt this have happened anytime in the past year . In fact in the u. S. Its been like Something Like all these days. Why now as opposed to anytime in the past year . That is a question im very sorry i cannot answer. I couldnt answer why the nasdaq peaked out on march 21st 2000, and not six months earl yore or six months later. These things you just dont know. But the market is signaling something. And i would listen to the markets. The market is no longer telling you that its a straight upwards climb. And maybe the feds can intervene and buy share its. Dont forget that. They can buy futures. Marc, i wanted to ask you, you mentioned china earlier and things we dont know. One thing we dont know is whether they will change their central bank governor. There are those who are desperate to boost economic growth. How much will it have on u. S. Markets if there is a big change on what china does . Well, i think the big issue concerning china is that if the economies close down more, more than they desire, they will also print money. Fter all, they paper. They will also go the way that the others have gone. Namely competitive devaluations that are these to the Global Economy, and to a sound, structural economic scenario. Marc. We know youre the dr. Doom and gloom and think were headed towards qe 99 for those reasons youre the gold bug but the gold has been selling off and continues to take off. Will you buy gold now . Well, the issue here is when has rint money, and this been observed already by can a personous and irving fisher. Not all prices rise at the same time. Quality. Equally. You create price increases in one sector of the economy and then in another sector, and of course gold has a had a huge run between 1999 and 2011, and thats been correcting. And lately what we have is a huge increase in the price of not all art pediatricians but specific artists and in stocks. Especially in the u. S. So eventually the money will flow out of less inflated markets to more inflated so yes, i think gold drops below 1,000 . We dont know that. We dont know how much money they will print but i dont think it will stay there. Its like coffee was at 300 cents a pound and it dropped to 200 cents a pound at year end 2013 and now its more than ouble. Why do you want to buy german buns . Its 80 bies. I agree with mark about that. That theres always the potential for inflation. But keep in mind during the heart of that rally in gold we saw the dollar lose over 40 of its value. So obviously anything priced in dollars, oil, gold, food, goes up. Now, the, to borrow someone elses phrase, the dollar is the cleanest shirt in the hamper. The yen. Go around the world. The euro, where else are you going to go, marc . Scanned naveya . I agree with barry. I agree with barry that the hardest currency is let me ask one more question. Barry and i were talking earlier on twitter. They saw a whole bunch of helicopters practicing their dollar drop hanging over new york for qe 99 but in all seriousness the fed is wrapping when we hear they are going to raise rates in the middle of 2015 . Well see. Even if they increase Interest Rates, its Interest Rate in real terms, and in real terms, i would say, barry, please consider leaving new york, i suppose. Your cost of living increases in new york. And not what the bureau of labor statistics tells you about what inflationis. So Interest Rates will stay negative for a long time, and penalize savers. Nabbed my view as you pointed out german bonds are up 99 . The bonds yield 0. 24 . Got it. So if you justness bond yield then i would say yes, some stocks are very attractive compared to bonds. Inflation we dont see. Thank you marc inflation we see but isnt measured by the bls. Thank you. Of course scarlet and olivia for keeping a lid on it as well. Were back in 2 00. One stock were watching this morning is tesla. Elon musk revealed the newest electric car which has an allwheel drive system, heres betty liu taking a test drive with the man himself. Wow. What did you think when you first experienced this . Like [laughter] ok. What did you think . Not touching anything. No hands. No seat, nothing. What technology is in here . Its a combination of radar, camera with Image Recognition and trawl sonic senses best integrated with maps and realtime traffic and really what enables the capability is the sint sis of all four systems. So when you were accelerating. It would brake by itself by the way. I saw, and ive seen that few times. We saw that person jump aside when he saw you coming. Lets say you were accelerating that quickly and an object flew in your way and you were on autopilot, would it immediately brake on its own . Yes. If it detected that there was something that was going to hit the car it would do its best to mitigate the velocity. In a scenario where you were going 60 miles an hour down the road and something leaps in front of you, theres nothing. Under any circumstances. So it cant do impossible things, but it can improv the safety of where someone doesnt notice theres a pedestrian about to cross the road or that theres a car thats come to a stop in front of them. So in Driver Distraction situations, it could really be a lifesaver. I am jealous and i am psyched to get the test drive that beast. Almost 700 horsepower and almost 700 pound feet of torque. It is insane, autopilot aside. So the eyeballs hit the screen. We will talk about the nhls recordsetting Opening Night with a player who made his mark on the garden right here in new york city. Almost 30 minutes into the trading day. Well, 18 at least. But lets take a look. Because we actually see a bit of a turnaround in u. S. Stocks. At one point futures were down a half percent. Now the dow is adding 68 points to 16,728. Now, to be fair, the dow lost 334 points yesterday. But it was up like 227 the day before. So a lot of volatility and very exciting to watch. Another thing thats very exciting to watch. Hockey. The nhl is off to a roaring start as the a a matchup between the oldest rivals set records. The flyersbruins game delivered the mostwatched Opening Night hockey game in nhl history. Twotime m. V. P. And stanley cup winner adam graves and i brought along my resident hockey expert, fan and hockey mom, scarlet fu who literally knows more about hockey than tom keene. So thats probably fair. Thats probably accurate. So adam, when we said you were going to be on tv at least 10 miami in the office started freaking out saying i hope i can get a picture. And you just got your picture and your sons got his picture as well. Yes. What do you think about the growing popularity of this snort is it about time . Is there a reason for it . For me there were rules changes that freed up the ice and took out the center ice line but players have never been bigger, strongerer, or more skilt than they are now. You have your top eight players and bottom 12 on any team. There used to be a huge gap. The gap was because everyone was so talented, but theres not a game where you dont sit down and dont enjoy it. Its a physical game but the speed has never been as fast as it is now. And the speed is part of what attracts kids. Part of your passion was working with kids and my son when you met up with him at a hockey event. Tell us about your player development, specifically with the rangers. There you are with us. My son. Thats where its at. Its all about the kids and being part of the new york rangers is such a great vehicle to be out in the community and working with these young kids and some of these kids end up being rangers. Ryan mcdonagh our new captain, i played at the university of wisconsin and i can remember back seeing them playing there and now fast forwarding and seeing what they have done in their career and taking a leadership role. That part of being a part of the rangers especially as a fan, im like you guys, im a big fan, so to watch these kids grow up and then become leaders. So i need to ask you what was missing from the Team Last Year that prevented them from winning the cup . Well, certainly you cant take anything away from l. A. Wing two stanley cups. I dont think enough credits given by the way for how far they got. They didnt just not twin cup. They got to the end. But what i will tell you is this is one excellent hockey club. I think the mindset is not hey, it was a great run. Its more unfinished business, and i think thats the way they are going to is that right guinness and nash had two goals last night and assists and this is going to be a better team come the spring and have a better lineup. They are a year older. Organically they are going to be better, so this is an exciting time to be a ranger. Is there anything the nhl can do to make it more popular with fans . Like Everything Else, its a learning process. And theres no hidden i guess secret. Its just continue to grow the game. Hone the game so it continues to appeal and for me its watchturing the essence of it. When you go to a game, youre hooked. So if you can capture that. I know you played with mark messier and won the cup in 1994, who is a better leader, mark messier or derek jeter . Well, i didnt have the privilege of playing alongside derek jeter but of course you nt have the legendary history he had without being great but mark, a legend and i skated beside him for 10 years. Were going to take a quick break. It is 56 past the hour. That means Bloomberg Television on the markets. We want to start with breaking news. Darden reporting the preliminary result of its shareholders meeting. 245eu6 elected all 12 star board nominees. We will continue to keep an eye on that but thats the latest news out of darden. Lets move on to the broader markets. Were about 30 minutes into the starting day and a comeback of sorts for the s p and the dow up after dropping more than 300 points yesterday which of course wiped out the biggest gain of the year which was on wednesday. Its been a long week. The nasdaq still under some ressure still under 37b940 . Right now its come back a little bit as equities have recooped some ground from the previous day. Also taking a look at how oil prices entering a bear market. It continues to lose ground here. 85. 18 and the dollar is stronger. Theres that stronger dollar theme and well see how it plays into the earning season. With the wild week weve had we are joined by michael. Are you surprised that were seeing a little bit of a bounceback this morning . Not really. As you were saying this has been a choppy week and its a little bit of a bouncer. And we may get a little bit of a bigger bounce. So when you look ahead and figure various triggers or catalysts for this, are we able to pinpoint any one trigger . Some said oil prices. Others just said lay, were due for something. A little bit of all of the above is probably the best answer but i think if you had to isolate it to one big theme, we had a potential disinflationary theme in europe and we dont really have a clear path as to whether central bank can really execute upon this expansion the way it was articulated. So there was a couple of Big Questions hanging over that, and that can flow into Global Sentiment as well as is the fed in a position to do any of that . You know, in terms of euro zone economics, no. But in terms of our, what we saw the other day was extremely relevant. The market only reacted for a few hours but i think investors should remember what was in those minutes. That they have explicitly addressed this issue and what has been the single Biggest Issue in terms of guiding policy has been inflation. So this is a new chunk of inflationary force that they have to deal with plus the strong dollar. The fed was very clear on that in their minutes. So what is the biggest gorilla in the room over the past week has been or months, over the next several months it will be more contained by more quickly, retaking center stage next weekend . Sure. And i wouldnt be surprised to see a good earning season again. That should be an important catalyst to get the markets out of this funk. And right now we are still down on the week by about 2 . But it does appear the s p and dow are holding on to their move back. Michael purvis. Thank you. Were back in 30 minutes, Market Makers is up next. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie rule. Markets around the world are lower. Will the u. S. Follow europe and asia into the red again today . Heres what you need to know about the new tesla car it goes from zero to 60 in 3. 2 seconds. And were taking you for a test drive. Lost luggage gets a second life. Going to look at Unclaimed Baggage