Federal Health Officials rethinking the way theyve been trying to stop the spread of ebola. The problem is, they dont know how a nurse in dallas became infected, even though she was wearing protective year. Here is the cdc director. It doesnt change the fact it is possible to take care of ebola safely. But it does change substantially how we approach it. It looks like north korea has moved to quell all that. Peculation about kim jong un photos published today show the 31yearold north Korean Leader made his first public appearance in six weeks. He is seen walking with a cane. A south korean newspaper reported cam had been hospitalized after getting surgery on both ankles. For the third time in as many years, potential buyer has walked away from tmobile. Offer to buy majority stakes. Tmobile is the smallest of the four major u. S. Wireless carriers. It is the fastestgrowing of the bunch. Board members are divided over whether to sell. Wereday when stocks falling, extending their selloff, seo chrysler made a successful debut on the new york stock exchange. It is a comeback story. We need to be here for a variety of reasons, to have access to the biggest Capital Market in the world, finance a lot of the plants we laid out, and it feels like being home. I think were in the right place. Very good. With the ipo, bill ackman having the trouble. In amsterdam. Lets do a data check. Bonds, bonds, bonds, currencies and commodities. Futures up to bend. 2. 20 . Yield, just backup 2. 19 earlier. Sterling under 160. Nymex crude trying to make new lows. On to the next screen which shows more of the turmoil right now. Look at the vix. The average is 20. To double over the last week, really speaks to the new volatility. And that is the highest the too. When i wrote this up in our have ago, these were different numbers. Look at the twoyear yield. The 30 year bond yield is absolutely stunning. Is it under 3 . 2. 94 . The migration, theyre down, this offer columbus day closed. We have some difference here. Heres the 30 year bond back 10 years. At 3 , the blue line, how rare it is. This has to do with the world coming to end and washington. This time is different. Toare world really is going end. I dont know if it is going to end. This is a much more orderly drop. It is. Down the go for economic reasons. This will be frontline with us through bloomberg surveillance. Not cap 5. What is our twitter question . What concerns you more . Falling stock prices or bond yields matter more . Please tweet us. Rick reader from blackrock commented on that to your which of the time was trading at 51 basis points this morning. 38 this morning. Institutional investors are betting on a higher rate and they are wrong. After another. No question about that. The idea of the yields down for white set of reasons. We can dive into this this morning. What happened at 4 17 this morning was interesting. Iag. Scarlet fu just laughed. There was jpmorgans earnings. It is supposed to come out at 7 00 a. M. And there like clockwork every quarter. There always release it at 7 00 a. M. There he came out at 4 00 in the morning. Apparently, it was an early release. Did they put it out or did someone inadvertently release it . Our finance team suggest jpmorgan put it out a little too early. And the headline there was a 1 billion Legal Expenses. And missed consensus. How much fun is banking right now . This doesnt stop, does it . It is entertaining. Youre watching the movie too fast. This is a slow economy, a very slow recovery. Everything is falling in place in terms of an clan. You have the loan cycle picking up, broadening as it should. The first thing i look at it of the morgan release is loan growth, 7 . That is not shabby. Above nominal gdp. The issue is qqq. We are ending and everyone else is continuing. This is awkward. Isthe twitter question brilliant. Pros like you are looking at the bond market. What do those low yields in the brutal moves in low yields, for that matter, oil, signal to a pro . The first of signals is something you dont want to accept, maybe we have to, that Global Growth is going to be much slower than we had anticipated. Panic,ond issue is fear, concern. We have a lot of issues out there that are nonus related that drive people into treasuries while they are worried what is going to happen next. There is uncertainty. The good news is, you kick up the volatility to little more normal and now youre seeing the trading results pick up. They just wanted picking up late september. Talks halloween is coming up. Im going a sheila bair this morning. I have my mask already. , eviled to go as a banker banker. We are your budget season. Would you presume there will be further layoffs and firings . I think there might be, but i dont think it is going to be dramatic. I think this is a correction. How severe, we dont know. I dont think that changes the general thrust, which i think is still up. The ideal business is quite strong. Especially after alibaba, many are wondering if that would slow down a little bit. We did see a couple of companies withdraw their plans for a listing. I want to get back to the idea of the slowing of Macro Economic environment. Are we getting out of ourselves and worrying whether brakes are position for her rate environment . I think the banks or opposition for higher rates,. The question is, when we get those heist those highs. Is that priced in . In rightbeing priced now. The last several quarters, the stocks trade off after the earnings. Were getting this anticipatory overreaction. My guess is were blowing the steam off the financials. Financials usually leave the market up and down. As i look at jpmorgan and traits at under 10 times earning trades at 10 times under earnings. Banksrom the money center , what do you see happening in the regionals . The bank of ohios, indianas etc. . Were you have banks closer to those who need loans . It is quite remarkable. Youll see the loan moment him at the original Community Banks momentum at the original Community Banks slightly ahead. This ton, dont expect be traumatic. It is just marginally moving up. Meaning you have loan growth of what, 6 , 7 . Now. Is 6 the hotspot is in business spending and business lending, which is more like 11 or 12 . That is very good. If you pick your stocks carefully, there should be winners. How do have a one buddy dollar Legal Expense . 1 billion Legal Expense . Youre of a currency problem, libor problem, i dont know what else. Talks bring up the chart. Jpmorgan. This is great to see mr. Dimon making comments. Welcome back, jamie dimon, after treatment for a difficult cancer. How do you build 1 billion . Do they get a check . Do they get a bill . What is a, jimmy fallon in jamie dimon like this. It has been overkill othe legal side for a long, long time. The reality is, there are charges on legal and reserves for legal that have exceeded their loan losses for the last five years, including 2008. It exceeds the tarp. There has to be a stop to this. At the moment, the political winds are blowing more toward them. Total net income for jpmorgan at 24 billion. Theyre sitting in the 30 billion range in terms of total reserves and cost. Unbelievable. It takes capital out of the system. You give us such great scope. 30 billion dollars in losses. In our next hour, we will it get the banks and global warming. Are they to blame . Coming up, Hong Kong Police used saws and chainsaws to clear protesters. We will go live to the Business District, next. We will be right back with robert albertson. Good morning. Bloomberg surveillance. Tory birch, what a dynamo. A pretty good fashion statement and then the shoes came out. The flats. The ones with do they make them in your size . You can take the disc off the shoe for the subway or whatever. If you get one pair, you need five pair. In every color. Attory burch this afternoon 5 30. Were going to talk about hong kong. Tensions mounting as prodemocracy protests into a third week and police stood on barricades. Or more we check in live in the Business District in hong kong. Youre standing on the streets of queensway were protesters have camped out for the last three weeks. Has her been any sign of resistance, any conflict as the police toward on his barricades . We are definitely seeing some resistance, but it is very tame. Right now im going to show you things are starting to fire up a little bit. A little more energy this evening karen hong kong. Crowd,ers firing of the telling them to stay calm and do not retaliate and deftly do not react violently to what police are doing definitely do not react filing to what please are doing. Police are taking an aggressive approach when it comes down to taking on his barricades. They say theyre taking back government property, taking back the city. That has been since of tepper 28 when they fired tear gas at protesters since they fired pepper spray and tear gas at protesters. Theyre clogging up a major artery right now. They are made progress. About 100 protesters were on this major artery a couple of hours ago. They were able to move them into a subdivision right here. I do want to mention these Police Officers are not in full riot gear, but they are carrying helmets and shields and case anything happens. You can see a pretty peaceful sit in. This is one of the main entrances into the main protest site. Students are saying right now theyre not moving and im not going to retreat, especially right now, until they achieve universal suffrage. They are Still Standing by their goals. We see the two dozen policemen standing outside. Top Hong Kong Government officials went to china for Economic Development conference. What we know about the response of the government to these latest moves . We really have not heard much. He did speak up a couple of days ago saying he really is starting to get a little impatient by this. He is expected to make an atearance here on thursday the Legislative Council building here in the Government Center for a q a session. The question is, will he appear here or will he try to avoid some of the student protesters . Were still sing a lot of activity here. Police still saying theyre not backing down. They have removed some of the barricades, but not all. Some areas still not cleared up yet. It was touch and go in terms of where we will see the activity tomorrow. Definitely we will be watching closely. Thank you for joining us live from hong kong. They tear down the barricade and the students come back at night and the said every thing up again. They tore them down with chainsaws, which is the headline that grabbed my attention. It seems aggressive, but so far, no signs of violence. Us asert albertson with we look at markets. The headline this morning, the 30 year bond well below 3 . It plunged in the last hour. 2. 95 . What is this linkage of our markets to hong kong into the global challenges out there . Is it for took linkage or more ephemeral . I think more ephemeral. It is powerful. It hinges mostly on what happens in the foreign markets. If foreigners are concerned, if there is what looks to be a very severe slowdown in europe, issues that might interrupt asia , Interest Rates will stay lower longer than they should. That is not good. I think it is the foreign side that is really driving the 30year. Adam, you been doing this for years. How do you ascribe a 2. 21 10 year to an economy growing in the last six months 3. 4 . 4. 6 for the second quarter. I dont believe ive ever seen this. Lets assume it is temporary. They better be. If the long end states this low and we come around us time next your with the fed looking to move short rates, were going to flatten out the yield curve, which would be it is already pretty flat. It is not exactly great now. And a stance by your banks, isnt it . Except for one thing, you are banker and you get a pick between the tenure going up in the short end, you pick the short end because that will drive loan pricing. There is great improvement coming one way or another. That seems d we will keep you abreast of the markets this month. The next hour, the chief executive officer of sap out the new book will join us. It is a really interesting life story of his path to sap. This is bloomberg surveillance. Stay with us. Markets on the move. Good morning, bloomberg surveillance. I am tom keene with scarlet fu and adam johnson. Futures up five thing. Youlls are lower after the columbus day off for the bond market. Lower after the columbus day off for the bond market. Buyer beware, cold snaps. What we do around the weather . I love this. If students visit a college on a cloudy day, theyre mores likely to choose to enroll, purely overcast skies get them to focus on learning and education. And there is when you go to ithaca, new york, and it is liked him below zero when you visit. Talks it is cloudy all the time. It is cloudy all the time. All go outcold, we and buy winter coats and were all idiots. They sell the First Quarter gdp numbers. Do something serious. Formerly of pimco, now the. Hief Economic Advisor how much has the fed distorted money for the market . What we have done as we have driven up certain prices dramatically, and we now probably have a housing bubble. We dont have a construction bubble. It is very committee week. Where is the bubble . It is in home prices. Their backup to about 40 of where they were. In equity prices as well . In stock prices. You also have that in the equity market. And the withdrawal of qe makes people worry that violations the rates will eventually drive. Were back and return a normal face and everyone is scared of it. We want to ask you are twitter question of the day. Which is more concerning . Bond yields bother me more because it is just unreal at these levels. Is any price discovery in the bond market . There is plenty. Thursday will tell us something because we get another round of treasury ports on foreign buying, which has been a key driver of our 10 year. In july, it was negative. What is the pension plan to . Mit investing for 20 years somebody investing for 20 years, do you sell bonds or hedge your profits in bonds . It is the definition of a bubble. Everybody knows it will end, and they dont know when, so they stay in the bond until it is visible. How much downside in the tenure 10 year . It out to be trading closer to nominal gdp, which is about 4 . Do the math. It doesnt necessarily go there immediately, but that is a big, big, big piece of inflation. One of the other groups, markets, commodities. Oil has dropped 20 since june. Where is that bottom . You just heard bob talk about risk in the bond market. We will talk about risk in the Oil Market Next right here on bloomberg surveillance. Good morning, bloomberg surveillance. I am tom keene with scarlet fu and adam johnson. Here are some top headlines. Activist investor bill ackman says he is buying a stake in a u. S. Company and will announce the investment in the next couple of months. The news comes as one of his funds slumped as much as 12 in its dutch trading debut. 22 after having been price the night before a 25. This was obviously an ipo. Abigail johnson gets the nod at fidelitys new ceo replacing her 84yearold father who is been the companys chief executive since 1977. Abigail johnson has worked for the Company Since 1988 and started out as a stock analyst. Today she is one of the worlds richest women with a net worth of about 9 million. Comcast Nbc Universal looks to capitalize on chinas growing middle class. Teaming up with chinese investors on a 3. 3 billion theme park in beijing. The 1000 acre site will include attractions from other universal parks and will be the third universal park in asia. Very good. A data check. Futures up 6. Right now, a little bit better markets. The two year yield is stunning. 50. We opened up. 41. And now lower. Help me out. Talks it takes your breath away. The markets are shocking. Can you pass the vodka . How about some hot water . Oil is down about . 83 that puts wti at 84. 91. The 30 year bond lower. I failed at the data check. No, you didnt. They were moving. You are for clint. Well traders are for clint with a 21 decline in the price of oil since june. Instead of cutting back production to stabilize price, the saudis are actual producing an additional 200,000 barrels per day. It is a must as if theyre pushing oil lower. Our guest explains. Francisco, what is going on here . Do the saudis want to push oil lower . It is pretty clear by the data, they do. Whether it is a market share issue or an issue around their borders with the Islamic State growing stronger, clearly, the saudis have decided to bring global prices lower right here, right now. The islamic religions are trying to capture production in iraq. That is how they have been funding themselves. Is it that simple . The Islamic State probably controls around 30,000 to 40,000 barrels a day. The most effective way to deal with that has been to use military means to damage the installations, rather than act like targeting the price. I think it has more to do with the fact that we do have a coalition trying to help out fight the Islamic State. Back in june, prices were 115 per barrel for brent. We were all scared about 130 oil. The saudis have turned the market around and allow the interest to build on a precautionary basis and allow the price to come up. I want to go to the chart which shows the Second Derivative has been ugly, ugly, ugly. I want to go back to 1986, which is not on that chart. You remember the threat to the cartel. The saudis learned a time there. What is different this time in the opec cartel as they see this rate of change . Share is market actually very high in the cartel. Clearly, there are some longterm threats coming from shale oil in the u. S. We will certainly see the saudis trying to regain some of that space. But i think the real issue is the world cannot afford to have 100100 20es, oil. A middle east war. Where is the bottom on this . Oil an afford 40 and 40 in oil . Kuwait, the uae are in a different category all by themselves. They are small countries with huge wealth. The saudis need 85 to 90 oil. I think as prices slipped down, they will start curtailing. I would expect coming even though theyre