Climbed the nasdaq has it did climb to two straight days, but today it is pulling back. Julie i want to break it to bring in some breaking news. The company is expanding its. Ermatology business a continues to pursue its takeover of monsanto. All of this according to people familiar with the situation and justding to news that given a bloomberg. The shares are down about 17 year to date. They sell a little less than 1 in todays session. That too it is going on in the u. S. , a little bit of a pullback in u. S. Stocks. Do with mario draghi, indicating that there will not be any more stimulus, at least not immediately. And that cause a little bit of a selloff in europe and has extended to the u. S. As well. That is coming despite the fact that energy is performing well he very well today. An unexpected drawdown for oil. Drawdown,n unexpected at the biggest one since 1999. 14. 5 Million Barrels declined in inventory. That explains the uptick in oil prices, now about 47 a barrel. We also cited you stocks perform well today. But only oil is climbing come of a natural gas. Inventories rose less than estimated. You look at the top 10 performers in the s p 500, most, if not all of them, or energy stocks. We saw the uptick in yields in european debt as well as the u. S. We have seen this correlation between bonds of the financials, the banks. That is happening was against today is the is go higher. We are seeing the increase in the financials as well. Overall, stocks are lower despite some of these big groups that are doing well. Matt and despite a gain energy. Julie retail is one of the things we are watching. We are seeing supervalu, another Grocery Store chain of another Grocery Store chain coming out with numbers and pier 1 as well. Down 15 . The ceo is departing the company. With weakening traffic tens or stillweak traffic tens. Trends. Matt Mark Crumpton has more from the newsroom. Mark Hillary Clinton says the United States should hunt down and kill the leader of Islamic State. Said theme time, she u. S. Should not put troops on the ground in syria. She spoke at a News Conference here in new york. Lacks i think the approach i have outlined intensifies what we are doing, but also recognizes that there is no in my opinion path forward to Ground Troops that would be an arduous. That clinton also said donald trump sprays of Vladimir Putin miscarry. That means that as president , trump would that the russian leader do what he wants. Gary johnson was asked on nbc about the besieged city of aleppo. He responded with and what is aleppo . More than half of americans now disapprove of obama care. That is according to a new gallup poll. In november, the same survey found 49 were against it. The only surviving suspect in terror attacks is refusing to speak to a judge. He is apparently frustrated by 24hour surveillance of his prison cell. His Attorney Says he is not obligated to explain his silence, but is linked obviously to the constant surveillance. Scarlet investors are watching closely the decision out of keptfurt today as the ecb its Program Unchanged. Policymakers do not see an immediate danger to the euro area from the brexit followup. I think it is all pointed towards december now. Draghi made it clear in an indirect way that the governing council is not satisfied with the underlying trend in inflation and they are committed to keep purchasing assets until they see the path of inflation back on a sustainable direction. Today, but the forecast of 1. 6 inflation in 2018, that is not quite in line with the target and it all points toward an extension, probably to the december meeting. Extensionook at the and we look at present draghi. Does it have to do more than that in december . Andrew it looks like there were a few expectations of some action today. Given the selloff in the markets. Yes, those expectations will be carried forward into december. It is always a hard thing for cannot the ecb control the market expectations. Drug is doing a good job at not sending any signals. Hes giving information very close to his desk his vest. Will see there is no big reason to be concerned about what is going on in december. Manus ive got spain over germany at one full percentage point. Spain trading at a record low in terms of yields. How far can the spread get . Thoughtpreviously, we it could get down to 75 basis points on the 10year. Some of the longerterm concerns about where the eurozone is heading, that is really probably the tightest level. If the ecb does do what we think it does do or will do, which is tells the allocation with the purchases a get away from germany, it could come in the room or. But we are looking at 25 basis points from here on. You had recently spanish yields trade under for a period of time now. With anticipation of the upcoming referendum, is that a spread you would like to play . Broadly neutral in terms of that particular spread. We have a bit more of a preference for state for spain, owing a bit to the fundamentals into the uncertainty of the referendum in italy. Even if the outcome of the referendum were to be a thinkion of it, i dont it is the end of the world in terms of the euros are in. The ecb is throwing a trillion plus of liquidity at this entire market. That technical force alone is going to cap any spread widening. How controversial would be if to best ecide sensitive isly that this is going to be . Andrew the three rules that the ecb has set itself that it will probably has to adjust, all of those three rules are controversial if they are to be relaxed. The p ishe relaxing not the controversial because, at the end of the day, it is the Central Banks that are taking on the risk. The taxpayers in the corvette these will not bear any losses. I knowledge its the legal path of least resistance to move that one appeared i think buying bonds below the deposit facility and relaxing the 33 constraints , those are more controversial than the k. Jonathan was going to give us a steeper curve . Andrew get the governments to spend more money and finance in was30year scarlet that emcos head of portfolio management. Matt still ahead, who will advise aramco when he goes public . We will tell you what banks are in the running for what is the biggest ipo in the history of the universe. This is bloomberg. Scarlet this is Bloomberg Markets. Matt we may be one step closer to what could be the biggest initial Public Offering ever. Company,bian oil commonly known as saudi aramco, an advisor from a to helpboutique banks this company go public and repay 10 of cash in the process. Joins us from the london bureau. Thanks for joining us. What kind of beauty pageant are we talking about here . What are these banks want to have to do to get this business . Know for the last two months at least, there have been many flights back and from riyadh where the top executives at these banks have been pitching to the company. We are just talking about the independent advisor banks. Once these people get added, then they will decide where aramco is going to list. Key financialvery hub in the world tokyo or hong kong or london or new york. It is one more step in a process that is good to take very long and that we probably wont seek come to fruition until about 2018. But it is the biggest deal in the universe, some of you mentioned. Scarlet matt was not exaggerating here. How is the roles of these ependent eggs differ independent banks differ . Probably dohey will is the government will have an advisor. Maybe Michael Klein will be with the government. Then the company will have a separate advisor. Then you have something called a global coordinator, where the banks to the grunt work. So jp has a star there. They will probably add more banks along jp and then two layers down. Why this is a big deal is because they are talking about raising 100 billion. 1. 01if you just look at , youre still talking about 100 million. That is excluding commissions and excluding the money the banks make on financing investors to come in and buy stakes. The size of the stakes that they buy in 100 billion dollars ipo is the size of some pretty chunky m a. That is the kind of money investors are going to look to spend to get at this huge company. So it is a lot of money at stake here. Matt so the banks will have to work hard to get this. What about the exchanges . You mentioned they are looking at places to list. I imagine the New York Stock Exchange is going to go after them. They are probably going to look at frankfurt or london. Ruth maybe asia. Matt yes. Ruth we know that new york, london, hong kong, tokyo now, these are the markets among those who have pitched to them and have been making a really shown case. I think they will also be looking at regulation in each of these markets in the kind of shares, the structure of shares they will list. They want to be very careful. This is a company that we have known so little about. So when they go public, given the huge government interest in what aramco means for saudi arabia, you can imagine that they will be very careful about how much data they want to share, right . So they will see which exchange gives them that kind of the terms that they are looking at. I imagine that everyone will probably want the prestige of having such a big deal on their exchanges, especially in a year when you see ipo volumes have been pretty dismal this year. The largest ipo this year was a 3 billion deal. See 3 billion versus one hundred billion dollars. You can see where everyones energies are expended. Muchet brent has pretty held on the 50 a barrel since august 2015. We know why saudi arabia is Going Forward with this deal. Ruth it is something they will be closely monitoring. Just in terms of execution of this, there is not to speed up the process because there are so many things they need to get in place before they actually got the markets. They need to ensure, when they get there, they have enough investors to actually make this dont happen and make it a success. Now that they said they want to do it, they will be keen to there will be a good aftermarket for it. They will be looking at the price of oil, but they will also look at what kind of discount can this give and how they can diversify. Scarlet thank you so much for joining us. Matt we should mention the price of oil. Drawdown iniggest u. S. Inventory since 1999. As a result, big rally in alternate. You can see it is up almost 4 right now. 47 and . 20 a barrel. 47. 20 a barrel. So id jump. But like ruth said, this isnt going to have such a very of course, brent is the world benchmark, and probably more important. You see a jump across the board on oil. We are still seeing oil that is consistently below 50 a dollar now. Coming up, the iphone 7 plus has been unveiled. Reverse apples can it reverse apples sales slump . This is bloomberg. Scarlet was apples showcasing new iphones the apple watch in and a whole bunch of other features a hit . We asked tim cook accomplished what he needed to the big event. At least for now, they had to deliver in ifo an iphone with a few minor improvements. But now they have a between release. David if you take everything apart from the jack, which is controversial, arent they just catching up with samsung and the marketplace . Absolutely. We got to a point in this isustry where the Technology Moving three to six months behind each other. We are at the point where we are not seeing any revolutionary features. At some point, yes, apple needs to deliver a big step up in functionality. This market, the way we look at it, is not a massive growth market. It will be more of a replacement market. Jonathan if you look at the analyst ratings, it is buy, buy, buy all through 2016. You are looking about 12 upside . What gets us there . Theres going to be positive iphone 7. S about the uplift in natural this quarter. Next quarter, they will expand distribution much faster. Between now and december, we will have positive yields. Us cash flowset to our price tag it. Timko, if are youre tim cook, what are the markets they can pursue more successfully . Expansion lies, they have done a pretty good job. At this point, and he is one of the markets they have focused on. David but arent they way overpriced for india . Absolutely. They needed to come up with those at a lower price point. In terms of geographic expansion, unless they come up with a lower price point. David you are confident all year target price. Your tiger price. What kind of multiple you need . About 10 times free cash flow. They can get us to ground to around 120. When it comes to the sentiment on the stock, it is fairly muted. At this point, expectations are not the high either. That was talking about apple. Moms hockeyhockey fans, this is a return to the ring. I sat down with the nhl commissioner gary bettman. This is bloomberg. Scarlet this is Bloomberg Markets. Matt lets kick it off with the headlines. Mark crumpton has more. Mark a new poll shows donald Hillary Clinton decisively among people who do not have a high school education. Of whitesacked by 55 with no more than a High School Diploma compared to 33 for clinton. Likely voters that have not gone past high school, clinton leads trump 47 to 42 in a to a contest. Representatives from Member States and private industry are meeting in belgium to improve cyber security. Cyber attackers could cause as much damage as conventional military tax. In july, president obama and nato leaders agreed to add cyber space as a domain for alliance operations, along with land, cnn. Air. A and puza tells bloomberg that a proposed post brexit with the eu is completely unrealistic. If it wants market access, it will need to grant access to workers in the eu and submit the legislative oversight. Tim tebow has signed a minorleague contract with the new york mets. The former quarterback will take part in the Instructional League in boards st. Lucie, florida. Scarlet staying on sports, pretournament games for the world of hockey begin today across europe and north america. They culminate in a twoweek tournament in toronto. National preempt Hockey League players from taking part in the lithics . Its complicated in the old picks . In the olympics . Its complicated. I spoke with gary bettman. Gary we went to the last five olympics. Whether or not we go to future olympics really has nothing to do with the world cup. We envision a tremendously successful event the last two weeks of september in toronto. The players Love International competition, love representing the countries. Went to the olympics and have been going with the best intentions. But it has gone a little more complicated. We learned over time that it can be terribly disruptive. But the interesting aspect to it is we dont make any money going to the olympics. That has never been why we have gone. It has always gone for the growth of the game. But its very expensive for us to go to the olympics and that is something that a culmination of the International Olympic committee and the International IceHockey Federation have dealt with. It appears that president bok has said, at least publicly, the ioc is no longer interested in paying those costs. So at some point, well have to discuss that with the double ihf. Our season, for a whole host of reasons we discussed in the past, im not sure that nhl owners will deem it a wise use of time and proceeds to pay for the privilege of going. Scarlet speaking of that, there is a financial benefit to the the nhl andcause the Players Association show the profits. What we gross to as a league, which is going to be over 4 billion this year, the world cup is really just a tiny piece. Scarlet certainly. Talk to me about the different Revenue Streams you will generate from the world cup. Gary all of the above. The games will be covered on media platforms. Websitesnternational for nhl. Com and the world cup in native languages i think seven different languages. The games will be covered. The games will be streamed worldwide. Games will be covered on television worldwide. Rogers has the rights in canada and will cover all the games. Rights. Been on the and the United States, espn will be covering hockey for the first time in more than a decade. Is great. Ortunity this licensing and sponsorship. We have a fan village where he number of our sponsors are activating around the world cup. It really gives the world cup a huge event feel. We have legacy projects we will be doing in toronto. This is a big event. This is a big deal. In ats going to be held city that is an international say. Some people think it is the capital of hockey. In any event, it is a city that has the ability to host major events. And were looking forward to sharing this great event with the people of toronto and people who fly in from all over the world. Scarlet i asked about the media rights. That is such an exciting part of your sport. I wonder what are your discussions, if any, the status of your discussions with Companies Like twitter or facebook . Alternatives to the traditional media giants . Gary unless your they are alternatives. I think their supplements. It gives fans another way to connect to the game and to connect with each other. Havinge we give fans and big events, whether it is the world cup or Outdoor Games or ways that we connect with their fans to give them another touch point of the game, and twitter and facebook enable us to do that as well. Massive you have these deals with rogers in canada and with comcast for the u. S. Rights. Exceptions for Live Streaming . Gary out of market life streaming is something we retain. That is our basis is that is the basis of our relationship with ban tech. We think, for a sport that traditional media probably wasnt something that was availed as much as it could have been, going back in the 1970s and 1980s and early 1990s, the digital what forms have given us an opportunity to d