Definitely the sharpest selloff since the Market Correction in august of last year. A lot of it has to do with the steep selloff in china over night and we had tensions ratcheting up in saudi arabia. We have had a little bit of a recovery. Off the lows of the session. A look at my bloomberg terminal. We have volume increasing over the past several months. Financial volume up considerably. Volume up about 58 and not necessarily a good sign if you see a lot of volume on a down day. Big cap tech following today. Google and facebook were falling last year. Amazon and netflix were the two top performers. In addition to what we sometimes see out of rotation, we had a couple of downgrades for these stocks putting extra pressure on them today. That when youuck look at this thematically, we are kind of in the same laces. One of the biggest games was oil prices and analysts and strategists tend to call a bottom and oil, but without much success. Its still one of the biggest oilproducing regions in the world and then we had a sharp leg down in oil prices. It has to do with risk off sentiment we are seeing today. The other one has to do with chipotle, down after falling in the latter part of last year after concerns over any collide outbreak. Here is the chart on my bloomberg terminal. These are little blue flags that are different news events. Most of them had to do with the progress of the outbreak around the country. We saw that since the outbreak was made public a 30 decline for those shares. A lot of analysts coming out with their commentary saying they are not looking for much of a recovery in 2016. David thank you very much. Some breaking news mary barra named chairman of the board at General Motors. Thats effective immediately. Mark crumpton has more now from the news desk. Mark president obama starting the new year with an effort to tighten the nations gun laws. He is meeting with attorney general Loretta Lynch to discuss executive moves he can take. The president could act as soon as tomorrow, but the white house has a friend guideline. The president will have an announcement quite soon where he will discuss them steps his administration has concluded and he has concluded are within his executive authority that would keep guns out of the hands of people who should not have them. Mark the president will hold a televised town hall meeting on guns. New Leadership Today in philadelphia. Can he served on a city council for more than two decades before he was elected in november. Donald trump says he will keep talking tough about muslims even though his comments are being used in a recruiting video for islamic extremist. He said he has to say what he has to say. Handrump has called for a on muslims entering the United States. The somali group with ties to Islamic State used a clip of trump in its recruiting video. The National Football league is headed to the super bowl. , in the regular season, Peyton Manning came off the desk off the bench. Panthers topped the nfc see. News 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. Coming up in the next hour, china sparking of turmoil in the global markets. There are concerns slowing growth would spread. Its the worst diplomatic crisis since the 1980s. More on the escalation between the two powers and what it means for syria. And shire in talks to buy baxalta. What might be different this time around . David welcome back to Bloomberg Markets. Its time for the bloomberg is this flash. Startoks oculus will taking preorders for its oculus rift Virtual Reality headset on wednesday. No word on price or an actual ship date. Facebook acquired oculus for 2 billion in 2014. Mark adams is planning to resign from micron for health reasons. He will stay with the company until february 1. No word yet on who will replace him. Chickfila says it is delaying the opening of its First Standalone new york city location because of citations were a number of health violations, including the presence of fruit flies. Was inspected on christmas eve. Other violations included failure to properly refrigerate food. Lets get back to the markets desk for the latest on some Silver Linings here. Julie even on a steep selloff every singler have stock going down. A lot of investors buying gold as they look look off the risk scenario. We are also seeing some of the worst performers from last year two stocks caught my eye, each of which was down more than 70 . 3d printing systems and gopro boasted poorly last year and we see something of a bounceback today. Gunmakers also trading higher in anticipation of president obama signing some sort of executive order. Give aso scheduled to live town hall. We tend to see gun buying ahead of moves like these. Finally, lululemon being named as one of the top turnaround stories among retail. It was upgraded to buy from hold from jeffries. The analyst says consensus expectations have been set. Significanthas a opportunity. Those shares of 6 . David new year and another shock to the market. Plunging nearly 7 after manufacturing contracted for a sixth straight month. The selloff could put pressure on policymakers who went to unprecedented links to prop up stock prices last year. Emergency now is an and emerging markets portfolio manager. Was it the manufacturing data that sparked this . Guest i think it could have been a catalyst, but it is a bad macro story. The deeper problems lie with the Balance Sheet and what we are calling the dollar squeeze where we see capital outflows putting pressure on to mastic liquidity. Couple of is a factors but the pmi was maybe only a trigger. Looking to august, it seems like there are some parallels. What do you make of how that functions in trading . Clearlyhere were technical reasons for her the selloff. Bane is also the end of the and we should dismiss those if anything. Theres something much more fundamental theres the state and i dont think it is as dire. If there is anything that can explain the weakness overnight, it is the weakness in the yuan and the basket they want to keep it stable against. Into give us some insight the consciousness of the chinese investor. Is that the key take away . If i were to use one word, i would say manic. We see these wild swings it really itore on is losing confidence in the macro story despite a relatively strong government. Pick suree week macro is a good enough reason to head for the exits. We hear the story of the government telling the story it needs to be doing. What should it do to reassure people in china . Guest first is to use the level of fiscal policy, thats where they have the most breathing space. Ony can spend money supporting the consumer and, to their credit, they are doing that. The second is monetary easing. The fear that we have is too much injection of liquidity would only trigger capital outflows which brings me to the third thing which is Exchange Rate policy. This continues the depreciation of the you want against the basket worries me. If that is the case, we have every reason to be worried. David what does what we have seen today suggest about the interconnectedness of these markets . William i think the china factors will be much more of an issue this year. The old issues will be out the door. China is going to be more of an impact on advanced markets. Ahead, we are going to have to rethink what the shocks and china are going to be about the rest of the markets. David thank you very much. General motors is giving a major. Sed to lyft a keys they will become ally in their competition against uber. The two companies have big plans for the future. Joining me now is the anchor of bloomberg west with two of the people behind the deal. Emily im here with the General Motors president and the ceo of lyft. On are going to be going in a rental netWork Together as well as a self driving car. And notinvest in lyft uber . Guest we have been thinking therea lot of things and will be more changing in the mobility environment in the next years than in the last 50. Is growing faster than any other Rideshare Company. Emily they are growing faster than uber . Guest they are growing faster than any other Rideshare Company. We are super excited. Emily how much faster . Guest not talking about specifics in growth rate. Yearoveryear, we were three x in the United States. Market been gaining share and are excited about the business and the partnership. Emily does this rule out working with who were . This is a deep relationship and the level of integration that needs to happen to bring together what we want to bring together will recall will require our companies to Work Together closely. That is going to be a special partnership that we will be into it. We will be working very closely with lyft. Emily do you see self driving cars taking over the fleet . I think this will evolve over several years and will eventually be the main way people are getting around. As a company that has valued and takes care of drivers along the we will be doing it in the most responsible way, making sure drivers are taking care of that in those years down the road. The first time we have seen a Rideshare Company partner with an automaker. I want to get to the timeline because you expect to see the self driving car on the road from lyft in the next 10 years or sooner. Timelineu see the playing out . I have talked to dan gurley who is on the board of uber who says its going to be more like 20 years. We think this is a journey we are going on to get to this autonomous ondemand network. We have announced we intend to deploy autonomous chevrolet volts on our campus in michigan and that will become a development to do Rapid Development which fits with the autonomous ondemand network we have announced. It is going to be a journey over time and something we will put a lot of resources behind. Emily is sooner than 10 years realistic . How do you see it playing out . Timeyou arrive at that frame . Guest at that moment . I think the experiences interesting. Lets say several years out, you open the lift open the lyft app. Traveling with a group of friends, you will get one kind of experience. From you are coming home work and watching a sports game with other friends. We will be able to create transportation experiences. Emily i would love to see lyft in taco. We believe apple is working on self driving cars and tesla has been working with carnegie mellon. What makes you think you can compete with highly funded Silicon Valley companies . Guest we are a highly funded Detroit Company and are in strong shape from a funding point of view. What is important is we are bringing together for the first time a car company with all the capability we have around autonomous and connectivity around the resources we have from a technical and financial point of view, bringing it together with the fastestgrowing rideshare platform. That is a unique combination and gives us an opportunity to be at the forefront of this change. Emily transportation is becoming more of a service. How does that change or transportation model . Writing in asnot many cars and they dont need necessarily the best car, if they are just a backseat passenger, how does your Business Model change . That change coming and we want to be at the forefront of it. By bringing together the resources of these companies, that puts us in a unique position. Having said that, the real strength in our this this is more outside the urban centers. As muchhe opportunities more of an opportunity that any kind of threat. Emily the rental network . How big are they going to be . Some of the details we cannot release today, but we are working on this immediately. Driver applicants apply but because of the year over the year of their car or size of their car cannot apply. There are others who would like an easy way to earn income and renting a car by the week or month is them that flexibility without the long term commitment of police. Taking care of drivers who want to get the income opportunity with General Motors and the access to General Motors financing power and their fleet of different types of vehicles, we will be rolling this out in several cities and you will see this start in q1 of this year. That will add a lot of value and save a lot of money. Emily do you see financing becoming a bigger part of your Business Model less transportation becomes a service . Guest we see this opportunity as an interesting one that could scale up quickly and we will work to get at the plate as quickly as we can. We can finance them much more quickly to bring the total cost allow morep down and drivers to come onto the platform. Has a valuation bigger than gms market cap. How does that strike you . Guest people have ascribed that evaluation. What we are focused on is the work we are doing together with lyft and we think it will create a huge amount of value for our customers and that will create value for our stockholders. Named mary barra was just chairman of the board. What do you make of that . Guest that is great news obviously and a statement about where the company is and a statement about her strong leadership over the last couple of years. Emily what specifically would you point to . Guest i think that we are here making the announcement and the fact that we are looking forward to the future of mobility and how that is changing and we want to be at the forefront of that instead of letting that happen away from us. We see more change in the next five years than the last 15. As you model out your 2016, what are your Top Priorities . What cities, what strategies are we going to see in 2016 . We think about the business is we want to attract new users, drivers and passengers but expand the cases for existing users. The first time you use the service, maybe you are going out and having a drink. Then you try it for your commute and care how affordable it is. Now we have people using it between 80 and 100 times a month. We will be attracting new users and Building Products to increase user ship from the first use to the 100 user per month. How is the car industry going to be different in 50 years . Driver model is you is the car we need to and park it when you dont. We are seeing the whole model changing. 45 ofrage car is used the time and the rest of the time it since their depreciating. , congestion,ions all of those things it will drive the change. Emily thank you both for joining us. David emily chang, anchor of bloomberg west. More Bloomberg Markets up next. Hiim here to tell homeowners that are sixtytwo and older about a great way to live a better retirement. Its called a reverse mortgage. Call right now to receive your free dvd and booklet with no obligation. It answers questions like. How a reverse mortgage works, how much you qualify for, the ways to receive your money. And more. Plus, when you call now, youll get this magnifier with led light absolutely free when you call the experts at one reverse mortgage today, youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home and heres the best part. You still own your home. Take control of your retirement today from bloomberg world quarters in new york, this is Bloomberg Markets. We want to get a check of our headlines. The house of representatives returns to work today, and repealing obamacare once again topped the agenda. Unlike dozens of previous bills, this one could actually reach the president path to president s desk. United nations envoy for syria iran. Ded to of monsieurorter alassad, andshir they have participated in international talks. Workers in northeast china sent down provisions to four traps in ped miners. Rescuers are drilling a new tunnel in an effort to save them. The federal government is suing volkswagen over conditions Cheating Software found on 6000 vehicles sold in the United States. Alleges themplaint german automaker a legally installed the software to make its diesel engines pass federal emissions standards when undergoing lab testing. Vw could still face separate criminal charges. It is negotiating a massive recall with u. S. Regulators. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. David oil is slumping this afternoon. Futures rochus much as percent this morning after saudi arabia cut ties with iran. To get some perspective on this, we have our reporter from bloomberg intelligence. ,alking through this news today we saw this spike around 11 00 a. M. Eastern time. We saw it go the other way then. An area ofics is focus for us. We discussed this extensively. What we think is you have an Investor Community who is more accepting of a more volatile, more hostile world. Therefore, these types of events are less influential, less provocative when you return to the fundamentals of a very imbalanced market demand versus supply. You have this cross currents of resilient supply colliding against this rather tepid, sluggish Global Demand growth. When you revert to the fundamentals, these types of issues, which are the known and are somewhat depleted in the investors eye. David the biggest twoyear record loss coming into the new year. Lack of sustainable demand. We have had times where demand has been pulled forward, but it has not been sustained. That has been the issue. Supply is one of the factors in the u. S. We had this resilient time of supply growth. Even with this cut in over the over the cpap x past year, that will remain the narrative into 2016. Resilient supply going up against sustainable demand growth in a developing world. David we will talk about factors developing what happened over the weekend. Arabia ishat saudi playing, and the prospect of iran getting back into this market in force how doe. It has