Because of disappointing manufacturing numbers and we are taking a second leg downward after initially slumping. Heres what is working and what is not. Followed by Consumer Discretionary and financials. Telecommunications shares, those of the drags on the major averages as we see them wavered to some extent. David cole any of this standout . Note, barclays has a recommending buying. Johnson johnson, eli lilly and merck all is higher. Using these companies to beef up the drug pipeline instead of financially driven m a is preferable. Things like tax inversion for example. We have seen some highprofile ones of those as well. Fairfield innovation will support feeling pricing. We will likely supersede drug pricing concerns on election season rhetoric. Maybe some of that will die down. Also wanted to look at some individual drag on the overall average. Records and percent. Credit suisse saying apple has been cutting in supplier orders and checks reconfirm that. Finally, getting a downgrade to an underperform. Just to be specific this is a fork engine maker industrial uses. The analyst at bank of america not optimistic on that market in the u. S. Thank you. Lets check on the first word news. Mark crumpton is at our news this with more. President obama trying to cool off the heated dispute between the president of russia and of turkey. His urging turkey and russia to focus on the common goal of fighting islamic state. We all have a common enemy. I want to make sure that we threat. That i wouldnt make sure that we remain focused on the need to bring about some sort of political resolution in syria. The president speaking at a News Conference following the global summit on climate change. The diplomatic crisis interrupted last week when the turkish Government Shutdown a russian warplanes. Turkey says it was in their airspace. Russia say they were in syrian airspace. Mr. Cameron said he would not order the attack unless he knew he could win a vote in the house of commons. This has led to a split in the Opposition Labor Party who whoserbyn opposes leader, jeremy corbyn, opposes the attacks. The crash of an air asia flight on a malfunction and pilot error. Investigators say the pilots wrestled each other for control of the lane as they tried to deal with an Electronic System failure. Attorneys for the convicted Boston Marathon bomber have requested a new trial or their arguments were heard today. Dzhokhar tsarnaev was sentenced to death for his role in the attack. He did not attend the hearing. Get more on these and other breaking stories 24 hours a day at the new bloomberg. Com. From the bloomberg first word desk i am mark crumpton. David thank you. The u. S. Treasury and u. S. Agency for International Development are hosting a Financial Inclusion or of an washington today. Moreoal of that is to get into the Financial Systems. We had an exclusive interview with jack lew. Which of the activity to ask the secretary about the dodd frank act and what proposed changes to the bill would be. Reflectof the proposals a desire for clarity, which legislation can provide. I think it is important for regulators to use the flexibility that they have to clarity. He kind of certain requirements in doddfrank, suggestions have been made that a 50 billion. Hreshold you have a 200 billion institution that is on the large brick to be careful not to get into a conversation where we thoseling back that protections that make our system safer. David the secretary talking about the flexibility baked into this law. These five years old, rulemaking is still happening. And are using these regulatory offices around washington dc. You asked him about regional banks. I know there have been regional bankers saying that this law adversely affects them. It really comes down to how you define to small. As the secretary pointed out, he wants to take the threshold of 50 billion and raise it to 500 billion. That arelooks at banks smaller than 1 billion in assets and committed just considers them community banks. The American BankingAssociation Says banks are disappearing every day. One thing we are seeing in this conversation in d. C. Right now about to whom you give your tribe believed that you give regulatory relief is how you define small. It is actually really difficult and very expensive for small even read the regulations and figure out whether or not they are exempt from the regulations. On the other huge of the register of the fdic. Small the matter how bank, a hedge fund will find it, buy it, and use it to trade on the banks books and the definition of regulatory relief is just how willing you are to concede what small is. Had a wideranging conversation with the secretary. You asked him about the news out of the imf recognizing the chinese currency as one of its reserve currencies. This, from the imf can was to bring china into the Global Financial system. To encourageerhaps other Central Banks to start bringing in their own reserves. Reserves in foreign the yen, euro and pound sterling. I asked the secretary would we ever consider the u. S. Treasury asking adding to our reserves . This was his answer. We made clear that we thought it was important that china meet all the standards to be recognized as a currency and a special drying rights basket. We supported the action. We have also had long ongoing discussions with china about their currency and this is brutally have made commitments to us that they will not intervene that are in ways in ways that are unfair. They know we will hold them to those commitments. Indication of how they will do that . Is changing tactics and not being explicit about it. When china open the Infrastructure Bank they decided they were not going to participate. A lot of our allies decided to participate. The u. K. , germany. When we are noted with the world bank and the imf is a move toward bringing china into the Financial System as a carrot rather than keeping them out of the Global Financial system as a stick. That is not the approach the u. S. Chose a year ago. We do not know how they are prepared to do that within the Global Financial system. But the answer to my short question was no. David thank you. You can see his entire review on bloomberg. Com. Coming up in the next hour of Bloomberg Markets, it was once one of the biggest hedge fund. Yearsith one of the best ever for auto sales. But the brakes were put on cheap borrowing. Can the island be the next blooming meet its next payment on january 1 . David welcome back to Bloomberg Markets. It is time for the Bloomberg Business flash. We heard from chicago fed president Charles Evans today. He admits he is getting nervous about the next meeting on december the 16th. He reiterated he would prefer to have more confidence and i do today that inflation is beginning to have higher. Regardless of the exact date and be well appropriate for the funds rate to be still under 1 at the end of 2016. The face of online spending slowed down on cyber monday. Sales rose 26 and the beginning of the weekend. Americans spent an estimated 3 billion. By nonprofit funded isacola to study obesity disbanding. An email showing that they edited their mission statement, and suggested content for their website. You can always get more Business News at bloomberg. Com. But get a check it of the markets desk. Julie Chinese Companies that are listed here in the united states. This company cannot with its earnings after the close yesterday. Third quarter revenue list missed forecast. The company says it will temporarily suspend further forecast on revenue because of domestic jurors. He can see shares down by about 13 . At the decline. We are seeing an increase in another chinese stock that is listed here in the united states. Shares of 3. 3 . Be near and to agreement to buy it. The sheriffs still not trading up to 27 where this deal in theory would take place. And finally not a Chinese Company per se but one that is heavily dependent on that country. The shares up to and a half percent after the stock was raised to outperform from market perform. As theck could do well investor focus starts to shift toward the split in the company. It is spinning off its Chinese Business and also in particular taco bell has been doing well in the united states. Its Chinese Business has been struggling for a number of different reasons. Including any supplier issue that affected the sale quite negatively. David that was so long ago but it is still full of repercussions. Today, blue Crest Capital management will return all outside client money and work on managing his own wealth. He says the lansing game has changed and we want to adapt to the environment as it exists. The landscape has changed. Tell me about whether or not we see a Company Getting in front of that are responding to it . It certainly has changed and hedge funds are not the crazy wild west vehicle that we used to be back in the 90s. Investors care little bit more about the monthtomonth returns. They are watching you quite closely. That is true. However, if that is the only reason you have your performance as fantastic and you were shooting at the moon, you might not come out and say it is that is my speculation. David this has not been fantastic. It has been lackluster, certainly mediocre since 2013, fund, it hascro done a little bit better but certainly this has not been over the moon, nothing to write home about. David when you look at this firm, how much is going to be left after spitting out external clients . I think they want to say several billion dollars. But the exact number is a little unclear. Billion. The firm is 8 aey have already had about billion outside of that fund is about a billion. We do not know how much is in the fund. It is a little unclear right now. Way that investors appetites have changed, is that what is responsible here . They wanted to see the returns they were getting in the 90s into the 2000 . Investors do not want to be losing money. They are paying two and 20 to be invested. David explain what that is. They paid 2 management fee, the money of any of the client puts into the fund, and on top of that 20 of performance in typical hedge fund fees. That is a lot of money when you can do something cheaper. David when you can see how is allocated, what does it look like . This ir prime form focus is making big bets on the market. Mosthas been difficult for management. It has been hard, not a lot of volatility. Passing that come back full force this year. We could not get it. Is the job of managers, to take advantage of whatever volatility there is. So i see both sides a little bit. David lastly, how long will this take to happen for these outside clients . The outside of clients money should be returned by the end of january. About 90 by the end of the first order. The timing after that is a little unclear. You want to make sure that investors are not getting a bad deal. David thank you. Marketsead on bloomberg , u. S. Automakers are kicking into high here. Delivering record sales in the auto economy. David welcome back to Bloomberg Markets. Vw reported auto sales that fell 25 today. Elsewhere has been a stellar month thanks to Strong Economy and lower gas prices. Set to log its best november yet. Lets talk about what is driving this. As an auto reporter i hear those puns it so often. This is heading out to be the third month in a row with seasonally adjusted annual sales of more than 18 million. That is Pretty Amazing right there. Probably the at best year in u. S. History in Human History for u. S. Auto sales. Discounting has had a lot to do with it true car estimates that the industry on average has raised the discounts it is giving on its vehicles to about 6 from last november. Some of them like chrysler and toyota are raising discounts in doubledigit percentage terms. David you got to talk to the president of the americas along the assembly line. What did he have to say . Workersis hiring 2000 at the Assembly Plant in. Entucky to build more trucks to you cannot control gas prices but you can control the way we finance of these vehicles. He had to say this about how long it will last. This has been a component of this industry over the last several years prices have been going up with the red what is happening is that consumers are buying more expensive vehicles and financing for a longer time or leasing. But to help the industry right now, look at transaction prices and the star rate. It is a very healthy industry. That can continue. Interest rates will start rising again. We think it will be healthy for a few years to come. The interesting thing is that he should Interest Rates on his mentioned Interest Rates on his own. They put a blog post out saying that we have 100 basis points will hurt gain, that carmakers by about 3 per month because on the one hand dealers have to pay interest for the inventory they hold on their lot and on the other hand it is going to make it harder to buy the strokes. Joe hendrix did not seem too concerned about it. We are just seeing the average sales price rise and rise. Now over 38,000 acrosstheboard. David you see how impressive tracks have been for trucks lowereen they scaled back to rental car companies. Not make as much money on those cars, and they are incredibly lowmargin vehicles. General motors and board and others are moving the production of these lowmargin vehicles out of the country to mexico. That is what ward uaw tax was all about because their lowmargin vehicles do not have to pay the import taxes that they do on trucks to bring them back in. They are just happy making and selling trucks here. 70 of all the vehicles they sell our trucks. David to work. Still ahead on Bloomberg Markets puerto rico avoid a default on their debt. What is the plan for the island Going Forward . David from bloomberg World Headquarters in new york, lets start with the headlines in the bloomberg first word news. Mark russia is starting to realize that the price of backing syrian president Bashar Alassad is too high. The war before leaving the Climate Summit he says they have not accomplished much since entering the syrian conflict. They have been there for over a month. I think a for a number of my for those who have lived of the situation, they would say that the situation has not changed enough again later. That president st assad can play no role in serious future. Paris has extended the ban on the demonstrations around the site of the global conference until the end of the senate. 300 protesters were taken into custody after they defied the van and fought with police. Attendance was optional today at primary and middle schools. City officials in beijing impose limits on factory of it. Only half of u. S. Households use cell phones according to the u. S. To stick that show more the cord onutting land lines. Only 8 of households have just land lines. 42 have both. You can get more on these and other breaking news 24 hour news cycle for day back on bloomberg. Com. David comedy markets are closing in new york. Lets take a look at todays movers. Weigh ony continue to crude prices. Looking at the opec meeting investors are expecting the defensive market share rather than support prices. Rose to a three week high. Demand client for u. S. Exports over supply and waiting chinese demand metal producers are battling to stay afloat. We entered the milliondollar question, are we at the bottom for commodities . I think the markets are still searching for the bottom. It is going to be the driver. Supplies good to take some time to work out. China is going to take some time before we see what happens with the chinese economy. It is a soft landing or something more disruptive . We have a Market Making event over the next 30 days and that will see what happens to u. S. Interest rates and what does that mean to the u. S. Dollar. That will be the immediate catalyst i would be watching in all of the drivers out there, what is guiding us in terms of commodities . Really interested in your perspective. I do not expect a call from you, just what are the overshoots and the downs . I think copper at these copper linesf the are keeping their heads above water. A quarter of them are probably not or are struggling. And aluminum, about half of the aluminum producers are underwater for a cash flow perspective. Of the producers are keeping their head above water. It is not just if there are some people that are struggling, ist percentage of that there . That is what has happened over the past 40 years. The pain threshold. We some percent away from this . We thought we were a year ago. The prices kept going down and the industry adapted. David puerto rico wasnt data avoided the dusty any goody but like tsonga this has many chapters. They are up against another deadline. Debt today inhe full. They avoided kind of on their direct debt. Off anyps hold potential lawsuits that they could face. David how was the governor able to do this when you see the maneuvering that made this happen. Was the commonwealth will start doing is taking money from revenue that goes to repay other debt, noncentral government debt. Their highway deaths, Convention Center debt, and redirect that revenue to make sure that general obligations and direct debt is paid. The next big payment is coming up january the first. The likelihood they will be able to make that . Have madet that they the payment today is a good sign that they will also meet january 1 but a lot happens f