Doctors without borders. Heres new york governor andrew cuomo. We had a fortunate circumstance here that the affected person was a doctor, a person who worked with doctors without borders. He was familiar with the etc. , andy, symptoms, he handles himself accordingly. Yet close contact with three other people including his girlfriend, who is now quarantined. Is exiting thee duracell battery unit. They want to spin off to resell into a standalone company. Spin off duracell to a standalone company. Png posted quarterly profit that matched estimates. Thirdquarter earnings at fort fell by less than expected. In china for to now outsells toyota. Last month ford said it would not achieve profit goals for this year. Pickup hasing f150 been suspended while it prepares to roll out an aluminum body version. Amazon forecast sales and profits for the fourth order that missed wall street estimates. The online retailer is on track to post is worst annual loss in 11 years. , spending more on same day infrastructure for sunday delivery. It is just classic amazon spending at a greater rate. I think a lot of it is infrastructure more infrastructurerelated whenever. More infrastructurerelated than ever. Jeff bezos has been pouring and gainingrones customers for the amazon prime service. Story forferent microsoft. Ceo Satya Nadella has been trying to turn the company around but he appears to be getting some traction. Quarterly sales be estimates. Sales were up in Cloud Computing, tablets, and even the struggling nokia mobilephone unit. To the top story this morning, the first case of ebola here in new york city, diagnosed in new york city. 3yearold dr. Bein after being treated in isolation after testing positive for the virus. Shelby holliday is outside Bellevue Hospital where he is being treated. Shelby, you have been talking to someone healthcare workers. What have they been telling you . Isoutside the hospital i incredibly busy. There was a helicopter above us a little while ago. , the healthcare workers say it is indebted, very calm, not seeing the same level of patient they usually do, especially on a friday. It appears clients and customers are staying away from the hospital. The doctors girlfriend is a hospital also. Is that the hospital also. This hospital, bellevue, has been designated as one of the eight by new york officials that has been set up and prepared to handle cases of ebola. Healthcare workers have been doing drills, practicing on vacation practicing on fake patients, did the symposium on personal protective gear. When we asked healthcare workers if you feel prepared and confident the hospital to handle it, they kind of shrugged and gave us an unfair not give us they gave us a not very reassuring answer. We will be watching updates. This is unfolding. It appears as though things are pretty calm right now. Not very reassuring to hear what you just said, shelby. What about the protocols of the hospital . Do they feel they can handle and contain this disease . Sorry, im having trouble hearing with all the traffic. Protocols in the hospital . Do they feel like they have the right to recall right protocols in place . And we say that they do learned last night at the News Conference that this hospital has been prepared and designated as a special hospital to treat ebola. The workers have been preparing. It appears as if they are prepared and ready to handle this. Are with the workers inside. We will see. We are looking to see if the will be coming to new york. There is a lot of interest in experimental drugs. Every patient treated in the u. S. Has been treated with some sort of experimental drugs. Health officials are still tracking people who are in contact with this patient. We know he was on the subway, in an uber cap, at a bowling alley. We are expecting more about those events and locations as well. Thank you so much, Shelby Holliday outside Bellevue Hospital. Moving and shaking this hour, microsoft cofounder paul allen. He is pledging to spend 100 million of his work into five ebola 25 ebola. Ebola. Fight he is donating money for training and let equipment in liberia. According to the bloomberg billionaires list, he is worth more than 17 billion. Bill gates is also donating 50 million through his own foundation to fight ebola. Mark zuckerberg and his wife have donated 25 million. Tech titans, but on the corporate front, Quarterly Results from amazon and microsoft. Yesterday,n stumbles tom giles joins us for more. It was a tale of two cap titans two tech titans. Amazon has been this hot company and people were willing to accept to bezos spending like you know what kind of sailor. The patient is starting to wear thin. Microsoft for years has been what can microsoft do right . Not innovative anymore, tired they became the laughingstock of the Tech Industry in many respects. Nadella has come in and he is resetting expectations and he you are starting to get some payoff. They are growing at a faster clip and they are starting to see results. The stock price is showing it. Is it just the fact that the losses were so big and so much worse than amazon that investors are losing patience . What happens is you are willing to put up with spending for years and years and years because you are expecting there is going to be payoff down the road. People want to know, when are we . Ing to get that payoff the fire phone, it flopped. At some point investors say you are spending on the warehouse but wheres the payoff . When you see stuff like the fire phone, that is just one example. Start to ask the question, at what point are we going to get that payoff that you keep promising . This turnaround at microsoft is for real . He is taking it seriously that they need to convert to the cloud. The focus is on the cloud. Companies is really growing at a very rapid clip. The biggest challenge for microsoft is what . Keeping the momentum going. How long does that last . Tom giles, Bloomberg News managing editor for technology. Back to the big story, what the ebola czar needs to do to make a difference and calm the country down. We will talk to one of the few americans that has held a similar title and Crisis Management. And the growing number of viewers who have cut the cable court then turned to streaming video. As we have been reporting, dr. Craig spencer who recently returned to new york from africa has been tested positive for ebola. He is being treated in isolation at Bellevue Hospital. This latest scare. In the review of the newly claim. Ebola czar, ron he was appointed a few days ago by the president to coordinate the national response. Joining us now, one of the few people to also be named czar by policymakers, ken feinberg, who coordinated the response to katrina, aig, the bp oil spill. Great to have you in the studio. You have been in the role of Crisis Management in both the private and the public sectors. When you see an appointment like the ebola czar, what does he have to do . It is all about coordination and administration. I am appointed after the fact to distribute funds or to determine compensation. Appointed, i been think, because of his administrative skill to sort of coordinate the various aspects of response to the ebola epidemic. That is what he has been selected. Much different role than i do. More difficult . I would not say it is more difficult. It is different. He has to anticipate and prepare, well as i, long whereas i come along with a pool of money to distribute to eligible claimants. Although in aig you were still in the thick of things. You do not come too much in the aftermath of what happened with aig. That is correct, but congress aw in my role was limited to 175 individuals to determine whether, patient what the compensation package should be. Ron klain has a regulatory role with his very good expertise to administer and coordinate response to a potential problem. How difficult is this job going to be . It is a challenge because you have various he is trying to coordinate various responses in different countries, in the united states, different Public Health services. If anybody can do it, hes probably the guy who can do it. Do you know him, by the way . No. One of the biggest critiques of this role so far as no one is quite sure of what decisionmaking capability he has in this role. Clear what the he may be able to take or whether this is simply a communications role, trying to tell the public and calm the public down when a case like this breaks out. We shall see. A role like that, which is rather unique has ever been created. It will evolve over time and we will see if there is an efficient, Effective Response as needed to the situation. Be will the money go out the door and a streamlined way so, too, the proof will be that thanks to ron and his administrator skills and it seems that there is quote a nation if everybodys working from the same page. Do you think the president should have picked somebody else . Bloombergne of our columnists, said he would have liked to see general petraeus in Something Like this, someone more familiar with trying to coordinate different bodies and being the decisionmaker. In general, essentially, who is going to start with marching orders. We shall see. I am reading it like you are a hearing it on the public airwaves. It seems to me that one of rons strengths is his ability to coordinate, get things done, streamline processes so that everybody is working from the same page. The proof will be over the next few weeks and months are we seeing a more systematic, Effective Response with in tandem withng the same rules and guidelines. How do you think the government has handled it so far . It is a rather unique situation. I am not an expert in this, but there are isolated examples. What i notice is the constant repetition that it is very unlikely that this is going to grow into something going to become a big epidemic. Have heard what i that i am a private citizen like you on this. Reading the papers and hoping this doesnt spread. I have got to wonder if you have any special advice. Any special advice for someone like ron klain . What do they needed to do when they get into office . , openness, transparency giving the public a sense that it is being managed and handled appropriately. In all of these programs that i have been involved in, all of the words in the interviews. It doesnt matter at the end of the day. The only thing that matters at the end of the day have you achieved the objective, in my case, getting money out the door quickly with a minimum of controversy, minimum of delay, fficient way . In my designated assignments, that is the only thing that. Atters have you achieved the objective of convincing people that the program is being administered fairly, quickly, efficiently . That is the way you measure this. In this case the end goal how we kept the market public, and cap we made the u. S. Cap we kept the margin of calm the American Public calm and kept the u. S. Ebolafree . Are administrating this gm compensation fund. We will be back with ken feinberg and he is here with us to talk about the latest job and what he is getting right now in terms of submissions. Deadit is the walking who. Doctor you are watching in the loop live on Bloomberg Television and streaming on mobile and bloomberg. Com. I am betty liu. Saudiroad via arabia produced more oil last month but exported less. Global supplies are rising as the u. S. Funds the most in almost three decades. Crude fell into a bear market this month as Oil Producers cut prices on speculation theyre competing for market share in asia. Network by almost half of bbc america. The network behind the walking men paid 200 million. And toyota is selling part of its stake in tesla. The worlds biggest automaker invested 50 million in elon its mayompany ahead of 2010 ipl, making it one of tesla house teslas biggest shareholders. Announced that it has sold his shares in tesla median preparation of more coming up from the company. Bloomberg television is on the markets. Equity futures a little speech by this newly diagnosed case of ebola in new york city. Taking down stocks just a bit. We are on the markets again in 30 minutes. Automobiles, General Motors jumped 12 in the third quarter. Yesterday the cfo assured investors that the recall had little impact on business. The Sales Results would indicate that our new products continue to resonate with customers. We continue to our dealers and the efforts we are taking to see improved sales. Seen a Material Impact on sales thus far. All right, but the ignition switch recall case is hardly any gms rear view mirror. Victims have until the end of this year to file claims. Injured. Were they are eligible for compensation by the automaker. 600 millionside dollars for this purpose is to joining us is the administrator of those funds, attorney ken feinberg. Doubleder of deaths has in the claims that were found. Was that surprising to you . No. Gm said there were 13 confirmed deaths from their engineers draw definitive conclusions. But gm always know, and it is reflected in the composition protocol, that a program that ,ooks more to legal standards rather than engineering standards was going to show was going to show an increase. I am certainly not surprised. The program seems to be working well. Light att want to make all of the deaths and injuries. But the numbers seem to be pretty modest. You are right, although every death is one death too many. Of course. And every injury is one too many. But we have received about 5000 claims so far, we are going through them, some are deficient. Some people file and they dont include any information at all about the accident. Almost half the claims are like that. So we go back to the claimant you have got to come up with something to show that the defective switch was the proximate cause of the accident. And we work with claimants to try to do that. Gm has been very cooperative on this. So you dont just throw those out. The people who are trying to get some money and have no basis there may be some who try to game the system but for the most part we try to go back and forth and get additional information. Send us the rest of the accident, sent us the statement and send us the maintenance records. We will work with the claimant and their lawyers to try and see if we can come to a resolution. You have had a few thousand claims come in to be filed over the last few months. You have been accepting claims. Do you expect this will be the same pace throughout through the end of the year . At the very beginning of the program there is a spike in the number of quick claims. Then it sort of tails off. Then in december you have until december 31. Realize there is a deadline tended to file a flood of claims. They realize the deadline is coming up. Thats right. After between thanksgiving and the end of the year, they will be somewhat of a spike as we near the deadline. Do you feel that gm and your own fund is doing a good enough job of telling people making people aware that there is this fund, that it is accepting claims, and that these are the parameters by which you can claim compensation . I think that unless the iant lives on mars mean, there is no way we have not reached out with recall notice information, with personal letters, with communication on television, radio, the media. I dont think it is possible that nobody has known. Claimantmay be a somewhere who does not read or watch television, but we have everything we can to make the informve this program to individual would be claimants. There is this program and if you file we will work with you. Now in in the meantime g. M. Set aside 600 million for the spot. You leave it to gm to decide what they want to set aside. It seems like the pace of the claims were getting is that the right number to set aside . Based on the way this is going, it would appear that what they have reserved is adequate. We shall see. There may be a spike in legitimate claims. We have to process those claims into 2015. So far i would say that the program is working, it has been effective in getting claims processed. As you say, there are already 29 deaths, another 30 or so injuries. It is working. The program is working as gm intended it to work and i think it will prove to be successful. Now you know a lot more about the Auto Industry that you did before, having been a part of this, having taken on this job. We have heard so much more about recalls, the latest being the airbags. Should there be unfortunately one hereld be another for the victims of these airbags, but should there be widespread regulation, nationwide recall coming out based on what we know so far about the airbags . Once you get into the regulatory world, the relationship to these Auto Companies and subcontractors from that is beyond my jurisdiction. What i am asked to do this after a particular tragedy we whether it be 9 11 or bp, know there are claimants that should be compensated. They asked me to help design and administer those programs. That is where my jurisdiction begins and ends. That unfortunately there may be another case we could thanks for coming in. We always appreciate it. Coming up, beyond the bundle. How do you create a Media Company for the 21st century . We dive into the future of television as part of our special focus on making the cut. Browns, russia, and ebola. The latest edition of business week takes a look at Crisis Management and the obama presidency. It appears the revolution would be streamed. There is no denying the explosive growth of online video streaming and the growing masses that are cutting the cords, eliminating the price paytv accounts in favor of Internet Connection and a netflix login. Olivia sterns joins us with more. I am assuming that a lot of them are really young uns. As wey are millenials, like to say, people born after 1980. Er is ase cord cutt bit of a misnomer because most of them have never even had cable. It is more accurate to call them cord nevers. 12. 5 of all people aged 18 to 34 stream tv only. Youou have netflix or hulu are much more likely to do that. In terms of demographics, these tend to be, surprise surprise, urban people, hightech people, People Living in International Areas new york city, the bay with aeattle, all areas high concentration of these socalled cord cutters. They tend to be more female than male and the overwhelming reason is sports. If you talk to millenials, the toson that you have cable is have this big fancy sports bottles so they can watch all the games. Nevers, does it really end up being cheaper for them not to have a cable subscription . Again, it goes back to sports. Half the cost for the cable packages sports so if you dont want that, you are saving money. That is why we are seeing more of the cord shaving category with skinny tv offerings that a lot of these people are renters. Not people who are going to commit to signing up for a monthly pace of his. Paid service. You areave a tablet much more likely to be setting up for just the top tv and the one of those cord cutters. Terwell, i am not a cord cut but i do watch a lot on my tablet. I want to bring in somebody who knows a lot about cord cutting, any debate or a Media Companies like buzzfeed. By the way, are you a cord cuter . Shaver. So you get your basic . That is what we do. Cutting is a bit of a misnomer, as the previous segment said. I view it as a redefinition of the bottle. Cable was a very large bundle hundreds of channels. Held together by a few temples at a time. Last week we announced with hbo and cbs and espn moving sports leagues to go direct. You can see that the movement is now to redefine the bundle. Hbo is a bundle. Netflix is a bundle. Rati isdo you mean, about hbo is a bundle . Bundle of media, bundle of content. 10 million to 12 Million People are now cord cutters. If those people want to get hbo they can get it for a few bucks a month. Does that sound reasonable, by the way . I think the price point still high. Hbo is still a lot of money. With netflix you still have the quality. Cbs, about seven dollars. You can see how your new bundle your personalized bundle, it could be a whole lot more than that. Universal, he has been one of the first of these old media executives to come out and say why are we doing this . He said something in a Conference Call the other day it is going to be a challenge cannibalize what is already a really, really good business. The question, of course, is can they help it . The tide is turning against them anyway. The tide is turning. The other piece that wasnt mentioned is the massive swing in mobile video viewing. You talked about the tablet a little bit and mobile video. Plus, a at the iphone 6 tablet pretty much, comfortably watching shows. Data on how to see many people are watching primary video at home over wifi. In some cases that Second Screen is actually becoming the first screen, because of the mobility around the home. I can watch it wherever i want in which case the Cable Companies wouldnt have to worry. That the companies could still be delivering Broadband Service but will not be able to keep up with a multiuse cases, multiuse cases that technology and mobility provides. Therefore the bundle gets redefine. The other issue we have not touched upon the advertisers. The advertisers still see that television is the only platform right now where you can gather tens of millions of eyeballs in one place. There hasnt been any other place on digital where you can still do that. Were you are able to do that. I think that is an i think that is changing. They manage to get that kind of acrossand those kinds the Facebook Network and have a billion people were looking at that string. I said earlier that i think the first phase is remodeling. Bundlingd phase is into these other streams. Tumblr, twitter, always all these media committees will be reaggravating the video and charging for it, jim. Thank you so much. John borthwick, ceo of betaworks. We have breaking news right now. I want to go to mia saini. Including 25ews euroarea banks, set to fail the comprehensive excessive assessment which looks at how much liquidity and capital is on the balance sheet, all of this according to preliminary results seen by Bloomberg News. The number of banks that would have shortfalls even after Capital Raising on september 30 ,s the subject of ongoing talks according to one person familiar with the matter. We also understand the negotiations continue with about 10 banks showing you have to have a net shortfall after the 2014 capital measures have been put in place. And ecb spokesperson said that the special bank cannot comment on Straight Commission about the outcome of comprehensive assessments. As it stands, 25 euroarea banks are said to fail ecb standards and the euro, glee comes stalling on this news. The euro is falling on this news. Much more in just a few moments. You, a newve told york doctor who returned from africa is in an Isolation Unit in Bellevue Hospital. He showed symptoms yesterday. The news is spooking the markets of it. Equity futures are lower ahead of the bell. Mark mobius said he did not fear that this outbreak would cause another market rout. Can disease like ebola travel very fast and wide and move into developed countries, european countries, u. S. , and so forth. I frankly believe they will be able to nip this in the bud, because they have vaccines and other treatments that can be used. I am not that concerned. The nice thing about it is that they caught it early. I dont think it is going to have a big impact on the markets. Not a big impact on the he just said, he does travel fast, so what is the further spread of the virus mean for the travel industry in particular . Also, what has been going on with oil prices as the Global Economy slows down . I want to bring in the former American Airlines chairman and ceo robert crandall. Great to have you back on the program. In your view, is ebola going to be a threat obviously, not just for our lives, but for the travel industry . Are we going to see a big slowdown in travel given the News Headlines on this . I dont think so. Ook, the guy who runs delta was live on this yesterday and they said there has been no visible impact. Look, i think what is pretty clear is that if you suddenly add an obvious outbreak of many cases in western europe and the united states, it would clearly have an impact. Based on the number of cases so far and a very aggressive response of government and the fact that it isnt airborne, until something much more dramatic happens, i dont think you will see much impact. Do airlines have what it takes to handle and screen for ebola . It takes governments, betty. Certainly the airlines have got space and personnel and they can participate. But in dealing with this kind of thing you need the authority of governments to do the things that need doing. What about the airlines themselves . What can they do to protect not only the passengers but their staff . How well can they prepare . All they can do, all any of us can do, is followed to dictates of people who face this medically. The airlines are not able to deal with issues like ebola. Governments are. Airlines will do exactly what they are told to do and they will do it with precision and bigger because the airlines are interested in suppressing this to the extent possible. This is really a governmental issue, not an airline issue. Not private industry issue. Before we go, i have got to ask you about Lower Oil Prices. Some have said that this will be good for the airlines. Others say it will completely change the economy of the airline industry. I. No, i dont think so, but i dont think so, betty. The only impact it will have look at yesterdays profitability announcement. You can conclude from that that Lower Oil Prices are helpful and consolidation works. The airlines are making more money than they have made in many years. The consequence i was very taken aback when earlier this week, i guess last week, somebody on all streets of we dont want the airlines to make a lot of money because then they will expand. Wait a minute, that sounds like the inverse of the way capitalism is supposed to work. Bob, thank you so much. We will be back in two minutes on in the loop. Is 56 minutes past our rich means Bloomberg Television is on the markets. Equity futures are lower. The new case of ebola has some investors worried that we will see another round of selling last week. Coming up, we are counting down to the opening bell with the top 10 stories you need to know before the open, including procter gamble, announcing this morning is exiting another one of its popular businesses. Detergent. Ot tide you are watching in the loop on Bloomberg Television, streaming on your tablet and bloomberg. Com. Welcome back to in the loop. Here is a look at our top stories. Will open slightly lower this morning. The Dow Jones Industrial average opened up 1 yesterday. Now authorities in new york one to know who a dr. Came into contact with before testing positive for ebola yesterday. Week ago he returned from west africa where he is been working with doctors without borders. He and two friends have been quarantined. An member of congress is renewing calls for a travel ban. A congressman from utah. If you have into one of the ravaged areas there in west africa, i do think youre going to have to be in some sort of quarantined, isolation, or coolingoff. For at least 21 days. And selfring quarantined did not work for you . People get kevin figure, they get anxious, they want to leave. Ups expecting a busy Holiday Shopping season. They are projecting that shipments will rise 11 in december. They are trying to avoid the holiday problems they faced last year, whether it is a surge late rs, and loss of packages. Thirdquarter profits fell less than. Expected. Rising sales in china have made up for some of the losses. They said they would fall short of this years profit goal last quarter. The online retailer likely to post its biggest annual loss in 12 years. Amazon reported its against quarterly losses 2003. Jeff bezos has been betting big on everything from drones to regular programming. Are spending more on same day, on no dig on infrastructure for sunday delivery. Is classic amazon spending at a greater rate. In his infrastructure related more than ever. Shares of amazon being thrashed in the premarket, down more than 10 . Were 30 minutes away from the opening bell. Let dont you doubt of the top 10 headlines that are hitting our radar before the bell. Down with the top 10 headlines that are hitting our radar before the bell. Procter gamble. The company reporting earnings inline with estimates. They will exit the battery business. They will create a standalone company, part of the push to get out of 100 or so slower selling brand so he can focus on things like pamper diapers. The fact that they have more than 100 brands amazes me. And they want to get rid of 100 smaller brands . Panic, thatense of means less support for them, they have to go out and do it all over again. Pushed for innovations that have not borne fruit as of yet. P g. Is his second bid at 6 since is up about he came back of may of last year. Outpaced that and then some. The stock is not gained traction, the profits of not gained traction. Speaking of slimming down, the Online Food Delivery service reported more than a 400 increase in quarterly profits as more people order online through their app. This is. It grew 50 , 4. 6 million users from a year earlier. Do you use it . I dont. I live in a suburb. An interesting tidbit in the Conference Call. Almost all people who ordered takeout to it by calling the 95 ofant directly, people. Oldfashioned. 10 argan share in your city which is the best of all of the cities they cater to city share in new york which is the best of all the cities they cater to. Pushey are doing this to advertise on tv, which are not a lot of people would do. Flying itsairlines first dreamliner to atlanta, their u. S. A shareholder, delta airlines. Have boughtrriers as well. Liner but frankly, they are late to the game. British airways have already debuted it. I both lived in hong kong, and urgent set the standard v standard. The it was the flight to take, the airline to take it virgin was supposed to capitalize on that cool factor, but they have lost ground. And have Vivian Westwood designed uniforms, we will see if they get any traction. Tesla, toyota, selling some of the stake of the jointly designed plugin suv. This is an part in dissipation of the massmarket car in 2015. An investor to be i in a company they might be a competitor of. He has doubled down on these lithiumion batteries with this giga factory is building in nevada. He says the technology is not there yet. If you leave aside the relationship between these various companies, youre also realizing a tiny outfit. Those tesla shares of them quite well, so that has to be part of the motivation. Downaying in automobiles, substantially from 1. 3 billion, but it is better than what was it. What was expected. We know that some of the japanese automakers the antijapanese sentiment is great news for all of the u. S. Automakers, probably for the german automakers as well. You cannot get to risk cited about the ford results excited about the ford results. They are still down. Drop thanaller estimated, but it is still not doing very well. Because of recall expenses in america taking a big hit on the bottom line. Feels more and more scary, like it is getting out of hand, what else is going to be recalled, what other part of my car is going to be recalled . We continue our countdown coming up. We take a deep dive into amazon. Track fory is on its biggest loss in more than a decade. we continue to countdown to the opening bell, we are halfway through. It is time for our deep dive. Microsoft and amazon about the tale of the two tech giants. Investors reacting favorably to Satya Nadellas turnaround in Cloud Computing. Sales in the most recent quarter be estimates. Beat estimates. Amazon, down almost 10 after reporting profits that are down the lowest in more than a decade. I have to talk about the amazon story. That is incredible, some of the numbers that they put out. They said they were going to lose in the third quarter, but not by this much, almost a dollar a share here. Nothere is an issue, youre seeing the results of a top run. 200 million short on the top line . Yes. And a weaker holiday forecast. You feel like all of these holiday initiatives is not paying off. God is why investors are putting that ise towel why investors are putting in the white towel. Are they saying the honeymoon is over for jeff bezos . Yes. Comes down to you have the goodwill. Investors are willing to spend as long as you see results. And now you are not seeing revenue acceleration, and theyre getting away from their core dna. Selling things. To takempanies start their eye off the ball, that is in technology where the pain starts. One of our bloomberg editor said this morning that amazon fire is considered a failure. One example of how jeff reseaus mind have been wrong in his investment in jeff bezos might have been wrong in his investment. Phonenderstand the smart and massmarket and them trying it. Pizza andfferent than hamburgers, and was just a bad move. Wall,back is against the and the honeymoon is over, and you compare it to Satya Nadella where the honeymoon is just starting. What what was the Biggest Surprise for you in this market icrosoft report . Really starting to see growth on the cloud. You really feel like you have a pie along points that has taken microsoft into this next renaissance chapter of growth after a decade of pain under steve ballmer. He has moved quicker than an ibm and hp into Cloud Computing . Rosecoloredf his glasses, made the tough calls, made some acquisitions, and now there is visibility. In the next year or two good we see investors eyeing the microsoft story. After a decade of very difficult times. What would make shareholders happy now on amazon . What they do not like that he is spending money with little return. They want to see discipline. Its selling off of the business. Ic hi last thing you want to see is good money go after bad. Him create aee Holiday Season that could be better than it. Expected. Thank you for joining us. Amazon better watch out, there is a new rival on the horizon. We will talk about him in a moment. Welcome back. We get back to bringing you the most important stories you need to know before the bell. Lets continue with one of the favorites. Favorite as an hated. Ron johnson getting back into the game. Offer Online Shoppers help in choosing products. There are so many Companies Like that out there that are doing this weird quirks what this story says is that in front to deal her, it is aimed at your bigger spending, bigger ticket purchases that you did not just want to go on the internet and by uy. You need more guidance to consider. It is sounding like you get more human touch. And a lot of places have a decent return policy. It sounds like a try before you buy idea, but a lot of people buy things anyway and then return it. If everything is done online, the holding that gets in the way is how do you find the time to return it . That is a good point. That hits up on this trend that advertisers see which is, when you are recommending things to buy, that is much more effect to them being just told in a commercial to buy it. More than 90 billion of paid pause asrs are on cau deal. Tors consider a new i have a feeling that they do not want to show everyone just how much money they pay. It is mind boggling how much is being paid to espn. Rather than relying on corporate espionage, they are going to have to have it all out in the open. Your competitors are paying. The negotiating between all of the parties involved, as to how much the cable and the Satellite Networks pay the networks, it is really fierce. It is so complicated. Also threatening, saying that it would cause irrecoverable harm. All of the lobbies are out in force. Television and bb set networks joining forces. Bbc America Networks joining forces. I have not watched many of these shows. Which is unusual for me. There is only so much you can cram into one day, you look and choose very carefully. They want to combine their forces, get more programming so they have more leverage. Especially when they are negotiating with the cable providers. It is all about your position at the negotiating table. They have the hottest show right now, walking dead. As we near the opening bell, we are on the markets. Lets get a check of futures right ahead of the open. They have settled slightly lower . Our top story and the opening bell is next. Welcome back to in the loop. Bring you the most important stories before the bell. Number one is the market. We saw equity futures fluctuating out there. New york has its first case of ebola. A doctor that has returned from west africa where he was treating patients as part of doctors without orders. Spoke to bloomberg about the impact on the market. Can disease like ebola travel very fast and wide, and to move into developed countries like european countries, the u. S. , and so forth. I believe they will be able to know this in the nick , because they already have vaccines. They caught it early. I do not think it will have a big impact on the markets. We thought that as well in the u. S. That things were on the we get scared again by this one case. I think the fear of ebola is worth in the actual case is worse than the actual case. Ocks start to trade, we will see the impact to day. The recent pullback starts a move higher in stocks. But how can you say that when even just one case in new york city gets people scared . The markets were back very aggressively. Even without an ebola scare, we had a little bit of consolidation here. To me, markets have rolled off overnight and into this that is the normal sign of a recovery. Ebola does have to be considered here, as far as the broader point it isat this starting to be aggressively managed here. Finally. It seemed like we are finally attacking it. It seems like the ebola headlines tend to have a bit of an effect on the market when they come out. But we have seen more volatility, if we are in a delicate place in the market already. Then we see a bigger pullback, on any headline we see around the globe. If you had this headline a month ago, when the markets were pushing into new highs, and sentiment was in the fraud levels, itfroth would have been a catalyst. Now you have retracted to 12 month lows. In my mind it is all about the broader context. Mind, that is a normal course of business, and not an indication that something is broken. I wonder how much you take your lead from other asset classes. We have a chart that shows the correlation between credit and asset classes. They peaked in june, july, and made another run in september. How much are you looking for credit to give a shift in the sentiment . All the time. The bond markets always lead equities here. One metric that i have been looking at a lot is the moving index which measures treasury volatility. That has been grinding into lifetime lows during the first half of the year, and then owsrted making higher l back in july. That, combined with the currency volatility created moved the vix into the higher range. What you think about this crunch into the credit market . These during moves jarring moves, that defined this october volatility. Had theause you have shock absorbers from the big banks not making the money like they used to, that does not mean things are broken. The path by which securities move might be a different path. The economics fundamentally different . I do not think so. The broadness of these moves was very sharp. Vix, it looked at the was not that unusual. With the abruptness so we spoke with Mohamed Elerian yesterday and we asked his big lessons from last weeks selling great let me play part of his description of what he learned. Volatility is back because the foundation of the market is weak. The fundamentals are not strong. Nough to support this level o we sold off yesterday on a rumor, that the chinese would be down. This is a tentative market very easily dislocated . One way or another. Shock absorbers anymore. The economy is not Strong Enough yet. I was addressing the liquidity issues. For example not Strong Enough or these for these types of rumors. Certainly, the china fact exactlymmed is right, it is a huge issue going forward. But the chinese tend to address these issues going forward, and they have the means to address these issues. The big question for my mind in october was the eurozone because you had the inflationary scarce that were scares that were pretty nasty. Does it have the will, does it have the way . Mario draghi said they had the will, but the path was uncertain. We have seen them come in and overssets almost every day the sessions. There does seem the be to be the ability to continue to do this. Thank you for joining us on this friday morning. Up, we will tell you how to get smart about your cable bundle. Epic travels on the in streaming music. Was brad pitt getting grilled on funny or die, the website hosted by sactown zack. Ss traditional cable providers are feeling the heat from the top providers like amazon and netflix, there is speculation that the a la carte cable packages or allout cord cutting or around the corner. We are seeing signs of cord shaving, which means that consumers are being smart about their bundle. Our editor of media and telecom is here for our special today. Cord shaving is to still get a bundle of tv channels, but a smaller bundle than your typical, i pay 100, and i get this massive amount of channels i do not watch. Two things are happening. Cable companies are starting to offer bundles of a slimmer bundle of channels. If you do not want to watch sports, you can get an entertainment package and cut out espn. We have seen that the number of households that have espn have come back a little bit, more so than the overall cord cutting. Consumerser hand, as get more savvy about what they want, they may have the option of saying we do not want any cable whatsoever. That is going to force the Cable Companies to adjust to some degree to make these packages available. Do we know how many of them are court shavers . Shavers . A the wall street journal did graphic, espn is down the most the cause more people if they are going this route are likely targeting Sports Networks as the ones they want to drop, because they are the most expensive ones. If i pay 100 for my full cable basket of channels, if i can get every thing but sports, maybe i can only pay 60 or 70. Mostyou get the other Popular Networks that are down 2 or 3 . The cable providers not just the goahead and do this . They are not going to be proactive about this. I think there needs to be evidence that cord cutting is starting to pick up steam before they start offering new slimmer bundles of channels. If they can more or less make you take everything, they are going to make you do this because margins are the highest on the larger channels. As there evidence that cord cutting is starting to pick up . No. With hbo ghostwriting to disaggregate, we might see some go starting to disaggregate, we might see some evidence. Most of the customers are either at t with verizon fios, universe, or even satellite. Thank you so much. The Cable Company still get you on broadband . Absolutely. You might have to pay out if you get one of these packages. Thank you. Stay with bloomberg all day long as we dive into the future of television in our special series. And make sure to stay tuned for , he ismer cnn president falling right into that cord cutting phenomenon. Here are our top stories. , theola scare for uber driver is not at risk, and neither are any of the subsequent passengers. The largest Internet Radio service has hit a speed bump. They rose 5 in the third quarter, being challenged by apple and google. Carl icahn is back at it. To twitter to defend his position as he tries to save the taj mahal, which is on the brink of becoming the fifth closed casino in Atlantic City. He says now is not the time to fight, now is the time to stop and ask what can i do to help j and our jobs . Joining me now is stephanie ruhle. I spoke with him a few days ago, here is what he specifically had to say. I did not even want to put 100 million into it, but it is a complicated thing. You cannot have the union contracts, because there is no money. The company is out of money, but they do not want to believe it. In, andut 100 million just lose it. Even if you did not pay interest, it is losing 7 million, 8 million a month, we cannot have that. Euros the thing. Tajere is the thing, the needs to shut its doors. He gave 80 million a couple of years ago to the tropicana, and turned it around. And he will give them 100 million dollars, but he has to break a local contract. Of health care, the lowwage employees will get covered by obamacare, and if they close completely, those people do not have to worry about pensions, they will not have a job at all. To fightings used corporate boards and ceos. He says i fight for the little guy and the shareholder. Local54, stop fighting me. Twitter today, to say i will save your jobs. Thank you. We will be talking more about Atlantic City and its demise of the Gaming Business on thursday of next week with been mayor of with the mayor of Atlantic City. Time now for the global outlook. A doctor is being treated for ebola in new city. New york city. Inis in an isolation ward manhattan hospital. His fiancee and two friends have been quarantined. A runoff in an election in brazil for the first time. Never this is seen as the more business friendly candidate. He wants to slow down of the inflation. And 20 five banks are set to fail the ecb stress test. Some of europes bni iggest banks are reacting. The Central Bank Hopes to resolve with increased transparency, and resolve confidence. Breaks down what it could mean. Is judgment day for europes banks. The first stress test of the Financial System in three years will reveal once and for all which lenders could survive in a comic shop. If it works,s credit will start flowing again and europe will be jolted out of its slump. The aftermath of the sovereign crisis. The first is a review of asset quality. That will determine which banks have too many bad loans. The second is the actual stress test which stimulates crisis conditions to gauge the resilience of bank balance sheets. Ideally some banks will fail, or the whole exercise will not inspire confidence. The bigger question is how financial giants like deutsche bank, do. Any falling short one of two weeks to submit a capital plan and six to nine months to implement it. Mentioned, we will get results on this sunday on that stress test. Ofmonday, all three these veteran wall street sted in aust inve peertopeer lending company. That is monday at 8 00 a. M. Eastern. Have a great weekend. Is 56 minutes past the hour which means that Bloomberg Television is on the markets. 30 minutes into the trading day, lets get you caught up on were here stocks are trading. We are seeing straight green on the boards. Ebola concerns weighing in on investor sentiment. For its500 is headed biggest rally since the very first week of january 2013. They have posted quarterly profits that beat analyst estimates. We will show you the picture for treasuries, rising yields on the 10 year. Will stick with bonds, last week, call it a wakeup call for investors who had gotten used to pretty much these muted christs lengths as volatility surged to the highest level in more than a year. That volatility is not going away. The chief investment strategist with a look at why he last week was so volatile. Buttility here to stay, what is blackrock saying in terms of timing . They think this is a shift back to normal. We have gotten used to and complacent with this idea of record low volatility for a couple of years. Now we see it really picking up as people get more used to the idea of the fed backing away from the bond purchases next week, possibly forever. There are some questions about that. But they wont be stopping the quantitative easing justice, and he will be hiking benchmark rates next year. It looks like when you look at the landscape, whether or not investors are looking to dump the riskier assets hold onto them. There has been a huge swing and high yield bond values. Some investment firms are saying now is a good time to buy, as yields are high. At the center, people are saying were going to be entering a sustained rising rate environment, these bonds have most fromiting the the stimulus program. They might stand to lose the most win rates to rise. At the same time, rates are not rising. Rise, butect them to they are falling. The 10 year has come down 3 since last year. This has defied everyones expectations. 100 of wall street analysts expected them to rise, and they are falling. People are all on the same side of a trait that has been wrong. Is ar everyone or there loser, so who is winning, who is losing, given the Current Space . The Federal Reserve is winning. They hold a significant proportion of the treasuries. Investors that are plowing into the longerterm treasuries have done incredibly well this year. 20 gains. Highyield bonds less so. The hedge funds that wereare feeling the pain. Some are losing, and some have done well. The global macro focus hedge funds might have had more trouble. What has changed now more than a month ago . I do not know of it as oil prices falling, the outlook will look weaker, we do not know growth next year, ebola is getting people concerned, although we do not know the real accomack applications for that. Implications for that. Thank you. Li from bloomberg headquarters in new york, this isve Market Makers with Erik Schatzker and stephanie ruhle. They are on the hunt for thene who may have come doctor may have come in contact with before he was officially diagnosed with ebola. Forecastline retailer sales and earnings that missed estimates. Will jeff bezos rethink his strategy . Cutting the cord. Bad news for cable operators. It is getting easier to pull