The kodak oh peter cook on capitol hill where lawmakers are asking tough questions about the ebola crisis. We begin with julie hyman as u. S. Stocks extend a worldwide selloff until we heard from bed president think of st. Louis fed president James Bullard. That was really the turning point. Andael mckee spoke to him he talked about some of the challenges facing the economy right now, particularly globally. However, he went a step further in his comments to Michael Mckee. Listen in. I think a reasonable response from the fed in the situation would be to invoke the cause on the tape or that says the tape was data dependent and we can go apposite on the taper at this juncture. And other words, the winding down of quantitative easing, maybe the fed could posit that. Analyst whog to an pointed out there is not much more of tapering ends on the date of easing. One other caveat is he is not a Voting Member of the fed at this point in time. Nonetheless, the market did seem to take it as a signal of what policymakers are thinking. Of a slow climb rather than a sharp rebound in response to the comments. If you look at what its gaining the most, Energy Stocks have come back. More or less since the s p 500 record since september 18. Materials coming back, industrials coming back as well. Reversal in the treasury market. Yesterday we saw a lot of volatility there as traders were trying to figure out what was the appropriate level. Today there has been some level of volatility and still at very low level on the yield for the 10year. However, yesterday it dipped as low as 1. 86 . I mentioned what is going on ien Energy Stocks mentioned what is going on with Energy Stocks being held up by oil. What were seeing by Oil Investors around the world is a recount operation. Where are we right now . Arencern and investors worried about how much the European Central bank can do to improve the economy, you have that on the table, what is the demand for oil . The Federal Reserve and then the wildcard of ebola. All of that is what investors have to contend with. Julie hyman, thank you so much. Tonight on charlie rose, paul krugman is a Nobel Laureate and the faster princeton university. Here he is on the world economy. Europe is seriously scary. China is in fact seriously scary although it is hard to track. We are not an island. You really would not expecting u. S. To be completely immune to the bad developments. Here we are six years after Lehman Brothers filed and still very fragile. You can see the entire interview tonight at 7 00 and 10 00 new york time here on bloomberg. Next guest says the dovish comments have stabilized risk asset. Alex young is an investment strategist at Oppenheimer Funds in new york and joins me from his firms headquarters. Welcome back and good to see you. We have had a wild ride the past couple of days. Esther bullard telling our economics editor that the lightning the end of the Bond Purchase Program would halt a decline in text based in inflation expectations. I am not surprised it has stabilize the markets. I am not sure how much extending and tapering can do, given how long it has been going on. I think a lot of investors have other are expecting Voting Members will allude to either extending the tapering or throw commentary out there that gets people less concerned about rate hikes in 2015, pushing out expectations. The consensus expectation for the first rate hike for the later part of 2015. But but a little bit of floor underneath that. The markets are and what he called a technically driven correction. You talked about psychology a moment ago. . Hat about investor psychology , tour headwinds from europe and asia driving volatility right now . I think primarily from europe has been at the center of selling. Ebola is hanging out there. I think it is difficult to quantify. I think it is safe to say the majority of volatility has economic origins. If we look at the u. S. Economy, we are little bit more confident than many other investors about the health of the economy. We have an improving job situation, companies beginning to invest. Today we had a very strong philly fed number. I know we had weaker reports earlier in the week. While we acknowledge the weakness in europe will be ahead done headwinds, we do not think we are as wonderful as other investors do. The s p in the low to mid1800s is a buying opportunity. Speaking with alec young in new york. The markets pared losses following the comments. When they came out the s p was around 1837. Currently 40 points higher. You can clearly see looking on the bloomberg terminal at the intraday trading at a pity that the comments really sparked a rally. We have had a lot of selling feeding on itself in the past couple of weeks. Whether it turns out he holds a lot of sway, i think investors are pleased someone step in today to bring a little bit of home to the markets. We learned today applications for Unemployment Benefits fell last week, lowest level in 14 years. Is that enough to calm the markets longterm and withstand the weakness in the European Union . It will take a lot more than that. Continue to see the trends we have been saying over the , it month, several months think investors will get more comfortable, while the u. S. May sell a little bit, is not necessarily headed to a recessionary or a stationary spiral. Another thing that can help is guidance from americans on the call. You favor cyclical cycles over defensive areas. Look mostich ones attractive right now . In this risk off trade recently we have seen people trying to hide in utilities and telecoms. Valuations have been moved up as a result. Given our view on the economy, we think they have that are earnings profiles. Couple that and you get more attractive on the pe to growth basis. That is why we like cyclicals. Looks particularly attractive. Alex young joining us from here in new york. Always a pleasure to have you on and get your expertise. Now to the other top stories we are following on this thursday. Nina pham, the first Dallas Health care worker to be contracted with ebola is in Good Condition and said to be stable. Another Dallas Health care worker has artie been moved to Emory University hospital in atlanta for care. Customs and Health Officials at areorts in four cities scheduled to start taking the temperatures of passengers from three west african countries. No touch thermometers will be used to try to find passengers with fevers. A blockbuster colder quarter for goldman sachs. Marking the straka second Straight Year a beat estimates. Lloyd blankfein sought to limit expenses to keep equity about 10 will he wait on the trading environment to improve. Apples latest product event is underway in cupertino, california. Tim cook has unveiled a new ipad in the wave of the push as chief executive officer and just ahead of the Holiday Shopping season. They introduce the slimmer ipad air to that measured measures 6. 1 millimeters in length. Signed anapple has additional 500 thanks to apple pay. Pay is integrated right in. Everything you need is built into iphone 6 and six plus. Secure, and yes, it is a private way to pay for things. Forook announced preorders the latest iphone in china have will set new records and be available on october 17. That is a look at the stories were following at this hour. Coming up, the Economic Impact of ebola. We will get an outlook from the world bank chief economist for africa. Welcome back. On capitol hill lawmakers are questioning officials on the governments rick response to the ebola crisis. Some are calling it unacceptable. Peter cook is following stories. How has the questioning been so far . Five tough questions for seven of the republicans who have it their recess to come back for this hearing. At the witness table you have six separate officials, namely u. S. Healthcare officials including the director of the cdc facing tough questions about the cdc response. Some calling for him to be fired because of what happened so far. For the most part the questioning has been very tough questions about whether mistakes were made with regard to the handling of the first ebola patient and why in the world to healthcare workers have now come down with this virus as well. People are scared. We need all hands on deck. We need a strategy and need to protect the American People first and foremost. It is not a drill. Atples lives are m stake. There have been a big response about why the United States is imposing a travel ban. By and large the cdc and others saying it might be more risky. You would not be able to track people as easily. For now, no need to travel ban. But theyre open to further limitations down the road if necessary. Thank you. The World Bank South africa is likely to become one of the three Fastest Growing regions next despite of the ebola outbreak. Francisco ferrera as the world bank chief economist for africa and joins me from our washington newsroom. Welcome. Thank you for your time today. Thank you for having me. The world downgraded the expectations for Economic Growth this year in guinea and sierra leone and liberia. Is this depends on when the virus can be contained . Yes, it is. For this year estimates have gone down quite considerably. 4 percent for liberia. Similar amount for sierra leone. This is on the basis of a fairly strong decline in activity in the past two quarters of the year. Still growing positively because the first half of the year was very good. Depend on whether it is contained by the end of 2014. The costs will not be that large next year. Kenny could actually rebound. The other two countries would lose 120 million in foregone output. If things continue in the epidemic continues into the first half of 2015, the estimates are sixfold, six times larger really. About 800 million for what is already a weak economy. How can west africa reap the benefits of public investment, specifically from the International Community it april are afraid to work there and countries will not accept imports . Is a huge driver of the Economic Impact. When asked about west africa as a whole, it is important to remember they only account for 4 or 5 of the gdp of west africa. There are countries like nigeria and senegal and two of these have had ebola cases and were able to contain the epidemic. You can never let your guard down because when there is a forest fire raging nextdoor, you will have a few sparks but other sparks will still fly. Nevertheless, they have shown the Health Care Systems are not as weak in those countries. They were able to deal with them. It is important people do not panic and generalize. In sierraliberia leone suffered greatly, even before the ebola outbreak. Civil wars left thousands of people dead and displaced. Seems as if the countries were just starting to get back on their feet economically. Damage be contained . That is the tragic thing. First of all, the tragedy of the epidemic is human. It is about the thousands of people that are dying, about twice as many or more than a very ill, the family and loved ones. But the Economic Impact is also severe. Economic countries would be weak economic states. They have a history of civil war, which is in part behind the weakness of the Health Systems they have. They never had time to build up the cause of everything going on. They were growing, thats at 8 per year in the past few years. There was a recovery in the sense of getting back on their feet. There is no question this will set them back. The key to everything is how quickly we can contain the epidemic. If it is contained by the end of the year and we get that done, can be back onry its feet and growing again relatively quickly. Most of the economic damage is done by fear rather than destroyed economic capital. Will to Economic Growth in other parts of the african content the enough to contain or mitigate the damage ebola has caused in the western part of the continent . If the epidemic is contained to these three countries without a major spread to the larger economies, then yes because although every life is a human life and matters enormously to all of us, those economies are small in economy so they will not make a huge difference. So far reducing impact on tourism and in both investment elsewhere. We expect if it remains contained the impacts themselves will go way. For next year is africa is still growing upwards of 5 . The world bank chief executive for africa joining us from the washington bureau. Thank you for your time. We appreciate it. Up next, julie hyman will be back with another on the market update. Have things calm down, or is this just a blip before the next it . That story when we return. Welcome back. We are approaching 26 minutes past the hour. That means boomer television is on the market. We are off the session lows. Comments from richard Federal Reserve president of st. Commenting that maybe we could see a positive and the quantitative tapering of quantitative easing. Even though that may not have much of an effect on the economy, definitely had a psychological effect and perhaps combined with the idea that investors have come in. Take a look at what is going on with stocks. The dow is now little changed. The nasdaq now up to about a quarter of 1 . Movers, of individual we have to look at netflix. More than the most in two years. The company set a price increase has slowed subscriber growth. Newlix behind orange is the black and house of cards. Preparing for increased competition. Cbs announcing Subscription Services that will be starting soon. Shares of six flags trading at a new 52week low. The markets more on in 30 minutes. Welcome back to the second onhour of bottom line bloomberg television. I am mark crumpton. Stocks are getting a lift today from James Bullard remarks. He told Bloomberg News today the fed should consider delaying the end of qe. With moren joins me on this and the market reaction. We have actually seen a little bit of reversal on the dow. This actually could have the opposite of fact. I think if investors really sit back and think about this, if they realize the fed will have to come up with more qe, they worseay we are in a much situation than we thought. He did make the point that he is taking a look at inflation in terms of when qe is wound down. Where if it . Here we are six years later and basically no insulation. The fear is deflation. You look at what germany is going through and you have to ask yourself, at what point does this not start to work anymore . Have talked about this before, there is always the law of unintended consequences. There is a danger where people say i do not need to do this today i can do it tomorrow because the fed will still be there keeping rates low. I think it has been difficult to truly value assets because you have the support of the federal theyve, which apparently may be willing or he thinks they should be willing to keep. What happens to the support once qe goes away . Theoretically it should be somewhat painful. Maybe that is the medicine we all need to take. Apparently there are those of the fed right now that do not think we are on stable enough funding to get there. I think in stead of the sugar high we of previously seen, investors are taking a step back and saying maybe this is not as good. A questionngs them about dual mandates. We will talk about this on street smart. We will have danny blanche flower. We were talking about whether or not we needed more qe. We will talk to the nrg ceo david crane. This is a coal company for trying to make alternative energy. Also, some views about elon musk. Elon musk. The conversation. Thank you so much. See event. Americans are increasingly concerned about air travel. Flying from cleveland to dallas on an airliner. Shelby holliday was in cleveland yesterday. How are people there reacting to the news . Panic is not the right ms. Words but people are concerned. A lot of people telling us they are packing masks and wipes to clean the surfaces. Just the fact that this passenger was allowed to fly making people uncertain the government is able to contain the virus. Out,vid gilbert pointed this dallas nurse could have traveled anywhere. Take a listen. This is not a cleveland issue. Harminly feeling closer to to home. Health officials are now scrambling to treat this. They told me yesterday they had no idea she was in the state until she had are the left. Mentor showed no signs of being ill while she was in flight. The cdc says the nurse should not have been traveling. How do we know this kind of thing will not happen again . At this point hard to say how much control the cdc has over. He people typically state Health Officials quarantines and travel restrictions. The cdc does have the power to invoke do not fourth list. Unless they take that unprecedented action, it is extremely difficult to track doctors and nurses who are treated ebola patients. Pretty much relying on an honor system involuntarily voluntary cooperation. Cdc says they have talked with most of the passengers on the flight with the nurse who has now contracted ebola. Time now for the commodities report. Another volatile day. A 6 swing between losses and gains. The new york fed not over rebounded but rallied. Going right to the charts. Oil finishing the day just above the 82. 5 mark after falling to the 79 handle and as high as 85. French rose brent rose. Check out the gasoline number, a lot to do with the latest government supplied data out today. It was out a day late due to the holiday. I loaded oil co. . 79. 78 showed the nations crude oil supply gain last week more than tripled most forecast