We will dig into that in a few minutes. To theot confined financials. A relatively broad selloff. Groups Like Health Care are leading the downturn in todays session. At the lows of the day of the moment. The dow down 1. 5 . The nasdaq is really bucking the trend. In todays session we are watching what has been going on with crude oil as the meeting in algiers is happening among opec members. You can see crude oil prices up more than 3 in part as it looks like saudi arabia is opening the door to future Production Target deals. It is contingent upon access on our ron. The dollar falling today also. Offshore drillers doing among the best. Transocean leading some of the games in todays session. At the dowing movers. Goldman sachs initiating coverage of some of the stocks. Morgan stanley out with negative commentary. Marriott is the only one on the approved list. Winners. Ip side realty even as hotel stocks fell off, Real Estate Investment trusts going higher. They seem to be benefiting from lower rates. The yield, which has fallen 12 basis points, many of the real estate socks have been real estate stocks have been the winner. A good tradeoff between the financials and the reit. Mark crumpton has more from the newsroom. And donaldry clinton trump square off tonight in the first of the president ial debate. In a new poll, shows them tied in a twoway race. The survey has the candidate each with 46 when thirdparty candidates are included donald trump leave 4641. There are predictions tonights could be the most watched president ial debate ever. You can see it all here on bloomberg tv. Our coverage will include 30 minute preand post debate shows led by mark halperin, john heiman and the bloomberg political debate team. Police and houston, texas, say nine people were shot and wounded by a lawyer who had urged who had issues with his farm. We shot and killed the man after he reportedly fired shots at officers. A bomb squad robot is looking at a portion of that is believed to be the shooters. Nine people were treated and released. Jury selections underway in the the charleston, south carolina, church suspect. 80 jurors reported to the courthouse today. He is charged with hate crimes and obstruction with religion in the june 2013 religion deaths of nine black parishioners at the manual amd church. Adio location data shows missile that downed a malaysian airliner over Eastern Ukraine in 2014. It was not fire from territory controlled by firebox rebels. Todays claim came two days before the reports on where the ending was fired from flight 218. More than 2600 journalists and analysts in more than 26 countries. This is bloomberg. Time now for the deals report. Every monday we circle in on the m a analysis. Today were talking about private equity. Standing byccracken with ahead of u. S. M a at rbc capital markets. Has advised a number of major acquisitions. Thank you. Veto hereky to have with us. Good day, sir. I know that rbc is one of the biggest banks and has a great balance sheet. You use that a lot in private equity. We are way past the 2006 timeframe when you had a huge lbos. Now . Is the strategy it is interesting, this year we have seen the strategy is quite a bit of monetizing the better investments. They have been looking at a fundraising cycle. If you look at the larger , the blackstone, apollo, tpg. You mentioned 2006 and 2007, the private equity sponsors driving 35 market on the m a side. Only a quarter of the marketplace. The firms focused on technology or software have certainly found more opportunities. Diamond resorts and fresh markets. It feels like in terms of taking Companies Drive it, we are in an era where typically the deals are 500 million, perhaps 3 billion at most. Is that the right time, the value they are going after . There has been a number of factors driving that. One is that financing is readily available. What happens in those types of transactions, the low mid market, they are readily able to get the financing from one, two, maybe three banks. There are multiple tranches, many more banks that need to be involved. As we look at the backup for the half of the year, and everyone is it acting at december rate hike, you want to get deals done quick. Private equity funds do not want to partner anymore. They are partnering the strategic rationale. Talk about those two funds and what the expertise is if you. Ill they have built up a long history and a very successful track record. Vista is targeting an 8 billion fund. They are pursuing much larger transactions. Earlier this bot solaris for a little over 6 billion. They just did info blocks a couple of weeks ago at about 1. 6 billion. We of been active with both of these funds. The buy side of the corporate. We actually advised ncr on buying vigil in sight. They have found success primarily because they have identified a niche industry vertical. Not just technology, more in the software space. They have Standard Operating Procedures have put in place where they believe we can obtain similar to a corporate. As a result, they can out bid a lot of the brethren and be comparable to a corporate ire. Corporate buyer. They have also built many of the companies after the initial investment. That certainly helps to lower the overall cost. How much dry powder do the private equity firms have gekko a number that keeps rolling every quarter. In the u. S. Over a billion of dried powder as of the last quarterly information. If you look globally, it has to be over 1. 3 trillion. That is an amazing number when you consider the funds out there. A number of the fundraisers have been varies pacific funds. You are seeing some of the most recent funds that have been of size like the folks at brookfield that have raised 14 billion and 15 billion funds respectively focus on infrastructure. You are actually seeing general fund and specific funds with significant capital. Theyre trying to find the right places right now to put that to work, which is certainly tough in this environment given the level of evaluations. You are at rbc, so i would be remiss if i did not ask you about canada. Are they more outbound or inbounds focus . Two years ago the Canadian Dollar was generally on par with the u. S. Dollar. From a buying perspective, if you go back the past two years, there has been an incredible focus outbound. As a result, outbound activity inbound2. 5 times activity. For four years before that, it was actually the reverse is the reverse. Canadalarger players in are looking outbound to grow. The smaller players are becoming much more targets. We have been incredibly active on that fund. I think we are running out of time. Appreciate your time. Thank you. With the head of u. S. Mergers and acquisitions at rbc capital markets. Scarlet Deutsche Bank shares dropping to a record low after a report saying the German Government will not jump into save the troubled lender. More on the chart next. This is bloomberg. Julie you are watchingjulie i am juliemarkets. Hyman with scarlet fu. Deutsche bank shares dropped to a record low after immediate reports that the government will not jump into back the lender. Losing 53 of the market value the sheer. That is something you are focusing on, the market value. Every day it seems like we see another like low work in the stock. Investors are selling off the bond. Julie what is interesting is the report that the German Government will not bail them folksnd yet, not a lot of believing that. The investors said the German Government will bail them out. Is the National Elections next september. All of this is being reflected in the stock. Line is the shares, and then we have the cocoa bonds. The yield has been spiking. About what it was when there was the last round of questions. Stockoming as we see the falling. Scarlet here is a longerterm picture of Deutsche Bank. He calls it the fall of Deutsche Bank in one chart. The white line around the bottom is the market value. The blue line is jp morgan. Once upon a time, they were both valued at the same level. Since then, the valuation has taken off. Citigroup has just been provided as another point of contrast. Citigroup has had its own , not necessarily with the same issues, but the good thing versus bad bank. Market value is considerably higher as well. This is something investors will have to grapple with. It is not so much which a bank has gone down but that it has not recovered in the same way the u. S. Bank has. The troubles plaguing the european Banking System have maintained. Hours away from Hillary Clinton and donald trump taking the stage in the first head to head debate. Of the head to the site debate next. This is bloomberg. Scarlet tonight Hillary Clinton and donald trump will face off at hofstra, university in new york. Complete coverage of the debate here. You want to tune in for full analysis. Again, beginning at 8 30. Julie now, lets head to the site of the debate. Eagerlyth everyone else awaiting this evening. Good to see you. I am here with sarah huckabee, eager Trump Campaign advisor. The entire room will be filled with analysts. What kind of donald trump will we see tonight . I think you will see exactly what we have seen on the campaign trail. He will talk about his passion for america and putting american america first. He is not a scripted career politician. That contrast will be start tonight. We have seen donald trump who has made some quite controversial comments. They have been politically incorrect. Is that the donald trump that will show up tonight or will he be more scripted . I think he will be more respectful and really president ial tonight. I do not think we will see any of that tonight. One of the things people will be watching tonight is to see particularly how candidates make the appeal to independent voters who are not that thrilled about donald trump or Hillary Clinton and are making the lesser of two two equals argument. How are they going to reach out that are not excited about the candidacy . In the large part we are looking at an america where 70 of the voters want change. Hillary clinton represents everything that is the status quo. Contrast that with donald trump who is new and fresh. I think that it is going to be a big appeal. We have a new poll out that locked. Ey are when you factor in third party candidates, trump has the lead, a slight edge. Candidatesirdparty factor into the Trump Campaign strategy moving forward . I think the message is the same. It is talking about the economy, national security, putting the america first. Donald trump is the only one doing that in this race and the only one who really has any credibility to do that. Your critics will argue donald trump has not beens pacific on policy issues. Wells fargo collapsed just the other day. Can we expect the Trump Campaign moreart to release specific policy, whether it is combating isis or how they deal with Financial Services regulatory insurance . He has done that over the past two months. He has done quite a few policies teaches and will continue to do that leading up to november. What is the worstcase scenario tonight . I do not think there is the worstcase scenario for our team. We are surging in the polls. There is a lot of enthusiasm, unlike anything i have ever seen for a republican nominee. Debatee is to lose the tonight, is that game over . I do not think that is going to happen, so we are not going to worry about it. In my final question, what happens if donald trump is . A lot a lesser moment of people i speak with saying perhaps he is not as scripted. What does he have to do to convince people that he knows the ins and outs of the business . Donald trump is incredibly smart. He has the ability to take tons of information and process it quickly. I think you will see that tonight. The American People are looking for authenticity. I think you will see that in a big way from donald trump versus the robotic Hillary Clinton. Thank you all very much. We will all be watching. Coming up, his Silicon Valley reid hoffman has taken a strong position against donald trump. Strategy. His unique this is bloomberg. Scarlet buy from bloomberg World Headquarters in new york, and scarlet fu. Julie this is number markets. Headlinen with from first word news. Mark crumpton has more from the newsroom. Mark c. donald trump is looking to apply his new campaign discipline at tonights first debate. Trump and Hillary Clinton face off at new yorks half for university. Politics survey, it shows that the two are in a dead heat with 46 each. Trump leads when thirdparty candidates are included. You can watch the debate on tv. Mberg t theter will livestream bloomberg broadcast. A vote could be held this week as democrats and republicans promised to override president obamas legislation that allows victims to sue1 saudi arabia. Protests continue for a six night in charlotte, north waslina as the curfew lifted. About 100 people gathered across the street from bank of America Stadium before the Carolina PanthersFootball Game to protest the shooting. A lawyer for Joaquin El Chapo guzman will argue that his client was the victim of torture. Says specialt security measures are needed after his escape from the maximumsecurity prison near mexico city in 2015. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Julie thank you so much. I want to take a look at what is going on in stocks right now. Selloff today, kind of triggered by Deutsche Bank, but really broader than that. The s p is more heavily weighted towards energy stocks. Take a look at the bloomberg. Energy shares, although they have pared gains considerably, still the yunnan to 1 10 of 1 . Utilities and real estate early in the green. We are seeing a deepening of the selloff today. Financials are lower yet. Health care though is also part of what is going on today. Off. R is selling michael kors is leading some selling very. A relatively broad selloff that we are seeing. Some investors are saying there are some trepidation around the debate tonight. Scarlet i was going to say, that may be one reason that the bonds are lower. The debate highlights the degree of uncertainty out there. Morgan stanley actually published a note saying that investors are underprepared for the possibility of a Trump Presidency. They maybe need to think about this as more of an outside chance that this could happen. If he does become the president , you are talking about president who could very quickly put into effect many of his policies. His policies are on trade protectionism as well as the economy. These are issues that perhaps investors should price in as they look ahead to november. Julie i just quickly wanted to bring up the 10year note here on the bloomberg. You can see, on the right side of the screen, yields are the lowest they have been in about a months time. Of course, the fed factors into it. , pushingeard last week Great Expectations into december. As you point out, perhaps investors are not adequately handicapping, ensuring an unexpected outcome in the president ial race. Scarlet there are a lot of questions about what this means for commodities. As we try to figure out if donald trump is ahead of the polls or not. This might be the ultimate safety point for investors. Speaking of the intersection between politics and business, a number of heavyweights have announced their support for Hillary Clinton. Others have simply come out against donald trump. You have reid hoffman offering to donate 5 million to veterans if donald trump releases his tax returns by october 19, the day of the final debate. Emily, i will hand over to you. Emily reid hoffman joining me here. We are on television and radio, so welcome to our listeners and viewers. You have gone further than heavyweights, promising 5 million if donald trump releases his tax returns. This would go to veterans. Why did you take it a step further . I think it is important to reveal income taxes. Income taxes do not live here you can know whether a person is honest about their wealth, there for lambs 30 there for them t philanthropy. The cofounder of facebook offering 20 million to republicans in this election. Money for anfering interview. What concerns you the most about donald trump . I do not think he has a policy plan. I think he asserts he will make things better for the middle class, by dont think he has plans for any of that. Emily what would be the impact of a Trump Presidency on Silicon Valley . It would range between disasters and terrible, somewhere in there. That is partially because what we do is take these risks to build global products. We built these things, like iphones, google, and other kinds of services to represent america to the world. Would greatlyes damage that. T is not a single deal emily you spent some time with hillary. What has been your impression . My impression is she waxy be a great leader. She iss questions, curious. She is very focused on small business, on essentially how does every american get a job in the future and how to we make . Hat happen is investing in Small Businesses . How to we make it all happened so we get a Better Future together. What do iches it with do, how to get everyone involved in making that happen, what are the ways you can help doing this. About theme questions economy, about middleclass, about technology helping the middle class. Letteryou sign a supporting hillary claim. Clinton. What do you think she has to do to attract Younger Voters . Hil