Monitoring wall street after last weeks roller coaster ride for stocks. We will get to those stories in just a moment. First, lets get you right to the top story that we are following. Ibm shares plunged the most in the most in four years, struggling to transform fast enough to handle the shifted cloud computing. An earningsd forecast for 2014 and said it will provide an update on its projections in january. Ditching a fiveyear plan to boost profit. The shares tumbled by dragging down the value of the stake held ibms biggestett, shareholder. Earlier, ibm announced an globalnt to pay foundries 1. 5 billion to take over the chip manufacturing division. The deal is part of the ceos efforts to prioritize. Apple reports earnings after the bell as the Company Enters the mobile payment arena. Apple pay allows shoppers to buy products in stores using their iphones. The company has signed a banks and credit card issuers such as mastercard and visa. The new service will compete against paypal and square. Texas Health Officials say about 120 people are now being monitored for possible infection with ebola because they may of the three people in dallas who have the disease. Officials said 43 48 of the original watch list have passed the 21 day maximum incubation period for the viral disease and are now in the clear. Among the 43 who are the when hoping to return to school. They were in contact with a person who had ebola, and the for them to get ebola has lapsed. It is over. They do not have ebola. Their people who have been through an incredible ordeal and they are people who need our compassion, our respect, and our love. President obamas new ebola is expected to start work this week after being chosen on friday to coordinator government what response. Earlier, Bloomberg Television spoke with Michael Brown who served as fema director under president george w. Bush. Really raises the question of, what authority does this socalled czar half and what can you really do and not do . I have to tell you, my concern is, any time youre in the midst of a crisis and you suddenly throw on an additional layer of bureaucracy, this is just how d. C. Works, it becomes even more confused. The president has to step up and say, this is what he is going to be doing, this is his job description, so to speak. The World Health Organization has cleared nigeria and says it is ebolafree, meaning there have been no new cases over the last 42 days, which has doubled fornormal incubation period the virus. On tuesday, Oscar Pistorius will learn his fate as a judge is expected to announce the olympic runners sentence for killing reeva steenkamp. He could be sent to prison, given a suspended sentence and a fine, or receive no time behind bars for shooting stink at multiple times through a door in his home. U. S. Safety regulators are warning owners of more than 4. 7 million vehicles that have been recalled for air bag problems to get them repaired immediately. Inflators can rupture in air bags, causing metal fragments to fly out when the bags are inflated in crashes. The inflators have led to multiple recalls from honda, toyota, nissan, mazda, gm, ford, chrysler, the him, and mitsubishi. That is a look at some of the top stories we are following at this hour. For more on ibm, im joined by david grossman. Welcome to bloomberg bottom line. Thank you so much for your time today. David, Bloomberg Business week has an online story today entitled ibm is even worse shape than it seems. Is that your take as well . Well, lets face it. There are a lot of issues that have been lingering around the stocks for a while. You have the predominately a group vision and other guidance for the year. Of us thought, even though we thought it was coming down. That said, i would probably isolate two issues. Forwould be slowing demand enterprise i. T. , and that is something that has been identified by other larger players in the marketplace. It is a really unique to ibm, other than more exposure in emerging markets were transactional revenue is more significant than it is in the more mature markets. The other thing i would highlight is the software. Software had been growing at 2, 3 times the corporate average and that is 2x the margins of the core business. That is important business to ibm, and that was definitely they admitted some was execution in some was structural. On a Conference Call today, the ceo said ibm is facing what she called unprecedented change in the tech industry, but that change has impacted everyone. Why has ibm been so slow to adapt . Saym not sure that i would they have been slow to adapt, its just a very big company that kind of doesnt turn as nimbly as a smaller enterprise. I feel they have responded, but it is a business that doesnt grow the top line that fast. That arer Companies Less profitable have a lot more flexibility, if you will, to mobilize around the technology because theyre not held as a couple for as highermargin as ibm. It just takes more time to filter through the system. Im speaking on the phone with david grossman, joining us from san francisco. We are talking about ibm. David, that shift to cloud computing, the ability to make that pivot quickly, is that now the measuring stick for Tech Companies . It is one of them. There are several changes going on, but clearly, the moderation to cloud is one of them. They define the private clouds and i think remain probably the leading player in the public cloud. Their new lower margin competitors like amazon and google and some of the others, fantasy got the right formula because theyre competing theyve got to figure out the right formula because theyre competing. They bought a Company Called software a few years ago. I think theyre actually doing some very progressive things related to hire and cloud. Last week, you wrote a note that said it is possible for ibm to reach its fiveyear plan to include increase profits but you are skeptical about the planes usefulness. Why . 20 epsnk it was the roadmap that was established back in 2010. Clearly, the environment has changed quite a bit. We have gone through some pretty significant economic swings, as you mentioned, theres a lot of Significant Technology swings. So the relevance of the roadmap today versus what it was five years ago has diminished. David, ibm also announced today it has reached an agreement to pay global foundries 1. 5 billion to take over the chip manufacturing division. This is part of ginni romettys strategy. Is the timing right for this move or should it have happened earlier . Im sure they would have liked to have had it happen earlier, but it just did not get done, for whatever reason. I dont know the answer to that question. I think it was important. It was consuming cash flow. It was a distraction. It wasnt core to the business anymore. Statistically, longerterm, the right move. We have about 80 seconds left. Ibm shares have fallen almost 3 this year through last week. When will we start to see a turnaround . I think a lot depends on what happens next year. There knock when a comment on the outlook until january. They are not going to comment on the outlook until january. Kind of stabilize earnings and cash flow next year, and i think that creates a base for which the stock continues to perform in 2015. Ondavid grossman, joining us the phone from san francisco. Thank you so much for your time today. The fate of prodemocracy demonstrations in hong kong. We will take a closer look at what these protests are likely to countless. I will speak with jon huntsman, also former u. S. Ambassador to china. Stay with us. Drug manufacturers are jumping at the chance to find treatments and profits in the global fight against ebola. Beeny holliday has following that story. What drugs act or have a shot at treating this virus . There are a few. Come to his around the world are scrambling to join this race to find a cure for ebola, but there are few three Main Companies that are driving the conversation. One is developed tkm ebola. One has zmapp. Dofovir. Other has brinci those are the three drugs the people are talking about. They have been used in the u. S. On an external basis. Two of those three that of actually been proven effective zmapp. Eys, tkmebola and. They are difficult to manufacture. We have already exhausted our supply of zmapp. Tkmebola is very limited. There are trying to scale up the drug so they can be used on an external basis and we can roll out these human trials and, hopefully, head on a path toward approval by fda and use them around the world. What about vaccines . Are we anywhere close . Another good question. Countries around the world are really interested in finding a vaccine. Everyone from china to russia. The vaccines are looking to be most promising right now are ones being made by the u. S. In partnership with glaxosmithkline, actually the human trials have started. Canada announced today it was shipping experiment vaccines to the World Health Organization in geneva, and is my possibly be used in africa. Vaccines are definitely in the pipeline. Again, it is a global interest. Governments, countries, everyone is time to get a piece of this pie. Vaccines may not be ready until well into 2015 or even 2016. So it is tough to tell right now. We will have to wait until we see the results from the human trials. Shelby holliday joining us from the newsroom. Thank you so much. Hong kong because shooters and students are scheduled to meet in an effort to end three weeks of demonstrations. Jon huntsman is now chairman of the Atlantic Council and joins us from washington. Governor, welcome back to bloomberg bottom line. Great to be back with you. Sir, the protesters what more to say choosing hong kongs leaders in a direct election, and that is scheduled for 2017. Is there any chance the Chinese Government will relent to the students demands . I dont think the chinese are incentivized anytime soon to create a greater model for democracy in hong kong. But they are also not incentivized anytime soon to see street demonstrations that might cast a shadow of doubt on the confidence in the viability of hong kong. Because it is a thriving generator of gnp for them. Gdp for them. Certainly, not what it was back in 1997 when they took it over, but a strong special at taunus region so they dont want to see a fail. So theyre going to have to find some middle ground in terms of finding compromises. What that looks like would be in a buddys gas. The discussions with the students will pick up probably tonight our time and they will have to find some middle ground in terms of how the slate of candidates for the chief executive position will ultimately be determined. Governor, what is at stake both politically and economically for china . Is a great concern to the chinese leadership right now. They want to mistake tranquility because without that, they cant grow economically. When you look at the political stakes, i would have to say the Biggest Issue for them longerterm would be taiwan. Kind of the unwritten story here is how they are interpreting this in taiwan. Yet remember when they floated this one country, two systems concept in the late 1980s and early 1990s, he at taiwan in my more than hong kong. With elections looming next year, at least at the municipal level and president ial elections in 2016 in taiwan, they are going to be debating this issue with respect to how hong kong is treated and whether or not china is seen to be living up to their commitments. And that is going to have real implications of a shortterm and longterm, in taiwan. What were really talking about here, i believe it is free speech, has the United States into much of a passive observer . Well, we have be who we are, and we have got certain values associated with our namebrand in the world. I would say, this is an issue we are recognized and respected for. And our voice has not been heard, in my opinion. Whitey suppose that is . Why do you suppose that is . The stakes are credibly high in sensitive when july with china. You have to find the right balance between speaking out on issues we feel deeply and passionate about and the ability to get Business Done in china, where they tend to draw back sometimes, at least with respect to certain other economic and political initiatives, if we are saying the wrong thing. Governor, youre the former u. S. Ambassador to china. How did you find that balance . Well, you cant hide from who we are and what we stand for. That is printable number one. Printable number two is, we typically dont do a very good job in outlining our National Interests with the National Interest of china. We tend to focus only on the areas of disagreement and diversions. We forget theres a lot that we actually share in common, whether it is peace and security in the east asia region, whether it is increasingly korean peninsula, whether it is afghanistan post 2015 when the nato troops are all out, whether it is disease like were seeing with ebola, for example. Theres a lot that would bring us together under extraordinary circumstances like we face today, and we dont do a good enough job in aligning our interests. I would say were going to have to work on that. President obama is scheduled to visit china next month. What is at the top of the economic agenda for the president and for chinese leader ship . I was a top of the agenda from a regional and multilateral standpoint would be the transpacific partnership, which is being negotiated. They probably have had 20 plus rounds of trade discussion so far including 12 nationstates of the pacific, 40 of the worlds gdp. It is a big, big deal. That is probably number one. I would say number two, at least i hope, is a bilateral investment treaty between the u. S. And china, which would make ther and warned her stood rules of the road and more understood the rules of the road here in the u. S. And certainly improve our ability to make investments longerterm in china. Chinese central committee, the ruling party of the commonest party, is holding its Plenary Session in beijing. Are these sessions geared toward change, perhaps giving local jurisdictions more say . Or do the talks reinforce the status quo . They started the fourth plenary of the 18th Party Congress today and that will play out over the next many days. It will be part of the leaderships broadbased and ambitious attempt at reform. Theres an economic reform and a political reform part, which is sort of less apparent to most people. He is going to talk about rule of law over the next couple of days. What that means beyond just the political stability angle and how it affects investment and how it affects business and commercial ties, will have to see over the next little while. Suffice it to say, this round of discussions for the party is extremely important and will definitely play into the leadership agenda. Jon huntsman, served as u. S. Ambassador to china now chairman of the Atlantic Council joining us from washington. Governor, always a pleasure to have you on and get your expertise. On the check in with markets for the latest on monday trading in a little later Stephanie Ruhles exquisite interviews with j. Crew chairman and ceo Mickey Drexler when bottom line returns. It is 26 minutes past the are Bloomberg Television is on the market. By and large, if you take a look at the s p 500 and the nasdaq, consistently been in the green. The one downside to all of this is the dow off by about 1 10 of 1 . I want to show you some of the individual movers in todays session. Matt, look at steve shares trading at a new 52week low. The footwear and excessive accessory cutting profit outlook. Were tracking shares of sears. Offeringlanning an that may raise up to 625 million. We will be on the markets again shortly. Back to you, mark. Welcome back to the second halfhour of bloomberg bottom line. I am Mark Crumpton. The two day robin hood investors conference is underway here in manhattan. The conference features insight from top investors, policymakers, and innovators. My colleague Stephanie Ruhle is there and she has an excuse of interview with Mickey Drexler, chairman and ceo of j. Crew. Thank you so much. Mickey, you have to tell us. What does retail feel like right now . What is the vibe . I think the vibe is challenging, a little difficult, get me the best deal, and you have to be more creative and be more strategic and you just have to deliver more than your competitors deliver. Is it just about offering sales . Gap is offering 75 off. It is hard not to go in. It depends on if you like the goods or not. We are not in the customer looking for a deal business. It is challenging. That is not our business. But it does create a certain environment. How can you afford not to be in a business . Ralph look at brands like lauren, coach, i feel like i by moore and an alum off from them than i do in the retail stores. Businesss a longterm and job for me. We move forward as we see the market demands. We have a very successful factory value business. If retailers want to create by only doing price and cheap, longterm will tell the story. How many retailers are not around over the last 20 years . It is about product. It is about quality and connecting with the customer. Yes, it is challenging right now. Is it a risk only look at other Companies Like gap and target and jcpenney bring in ceos that are not industry insiders . At the end of the day, you are a man who truly knows the product. Does it surprise you other companies are going in a different direction . I think retail is an art and science. How . You better have creative, or if you dont differentiate your product, move forward and design it well or have something that is not available and you just building on price, youre eventually going to lose because someone will sell it for cheaper. I cant comment on what they do. The boards of directors might have a perspective, but to me, ands all about product execution, sourcing and customer service. But isnt the first thing a customer buys the goods . Thin is the cheap way to do it black in his collabo