Government Officials Say they were released in a swap for detained leaders of the islamic extremist. Nearly 200 girls remain captive but it is unclear how many may have wide. The u. S. Air force is accelerating efforts to increase its firewalls after escalating Cyber Security threats. They are said to be tightening algorithms for networks that control everything from navigation of work lanes to weapons systems. Global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Scarlet we are 30 minutes from the close of trading in new york. Im scarlet fu. Joe im joe weisenthal. Matt and im matt miller. Joe u. S. Declines hearing by more than half after the s p was brought back from a three month low, but the question is whatd you miss . Data isek chinese trade fostering new doubts about the health of the World Economy is the Federal Reserve is preparing to tighten. Chairmanwells fargo and ceo is out, marking a stunning town fall for one of the banking industrys most powerful figures. Discovered donald efforts to self opposition research, so how is he shifting course . Less than 30 minutes to go before the close. Take a look at where the major averages stand right now. Way higherding our with major averages still in the red but it has been a steady progression north with utilities and real estate reinvestment trust leading the way. The drives are financials and tech stocks. Lets go live to the nasdaq where Abigail Doolittle is keeping an ion those tech names. Abigail it has been a down day for the nasdaq but well off the lows. Earlier, the nasdaq had been down more than 1 and some of this recovery is coming within the tech sector. Apple coming down 1. 4 and now it is flat. One consistent drag is the chip space. Clear whats going on here but one Bloomberg Analyst says the week china export numbers could provide a macro headwind plus the fact these stocks are up so much over the last two weeks and months, valuations are high, you could see some profit taking. Gartner did say today that they expect Semi Conductor revenues for 2016 to decline by. 9 year over year. A little choppiness for some of the chip stocks. Are one of the bigger boosts today on a report that the epipen sales for the Third Quarter rose. This is a peak season despite the pricing debacle and even though it is a specialty pharmaceutical company, helping to explain why this down sector is higher and a bit of a boost for the nasdaq. Is a goodeing down way to put it. Biotech down 6 , on pace for their third down week in a row. Thinkre any reason to this may mark a turning point . Call that forto sure. But if we look at a oneyear chart of the nasdaq biotech index this has gone right back below its 50 Day Moving Average over concerns that some technicians and that 200 Day Moving Average, it speaks to the fact that longerterm investors are less interested in the space. Intelligenceberg analyst who focuses on biotech says this sort of volatility heading into the election is to be expected and it could he very positive in terms of medical and Regulatory Information and it could help the Biotech Sector snap back. Abigail doolittle, thank you so much. Joe matt whatd you miss . It was nearly inevitable that john stumpf would step down as the chairman from wells fargo. It was in response to the public outcry of millions of fraudulent accounts opened for customers who never asked for them and thousands of workers that book some who got the ax for them. Butsloan becomes the ceo what are the other details we need to know and what else can wells fargo possibly do to repair its image . Our bloomberg gadfly columnist, mike reagan joins us now. It is a start but they need to do more from here. This is mostly a pr crisis for wells fargo. Are tons of investigations and outstanding lawsuits but ultimately, is it enough to repair that image from a pr standpoint . It is a good start. Obviously they have a lot more to do. An internal doing investigation and i think it depends on how they handle that. They have to come clean to shareholders and say this is all we know. Here is who we are punishing. Millioney created 2 fraudulent accounts and fired 5000 lowlevel employees and you feel like one executive leaving is a good start . Guest it is definitely a good start. When he went to washington to testify, he was not repentant enough and did not offer enough solutions. This was inevitable and he had to do it. I dont think it is enough to regain all the confidence, but it is a start. Thiswells fargo prior to crisis was saying it was a good thing that the bank did not get in much trouble and he himself had a very folksy demeanor. Fargo brand is significantly tarnished by that, how did that effect investors . How much premium was in the market because of that appeal . Guest the stock was trading at a pretty big price valuations. Part of that was reputation and part of it was the reputation for not being in the riskier Capital Markets industry. Warren buffetts seal of approval is a big thing but theyve had some decent Earnings Growth in a have returns in the double digits. The doubledigit line is kind of the line in the san analysts look at if they are not returning above their cost. Matt was buffet at work in this resignation . Guest we dont know. He has not come out and said anything on the record. You assume hes talking a lot behind the scenes. He said hes going to speak about it in november but so far he has not said much publicly. Scarlet the other big news is that you have tim sloan taking over as ceo. He will be ceo but not chairman of the board. Citigroup is the only other bank that has split the ceo and chairman role. Is this a new normal for the banks . Guest i think they will have a hard time trying to justify that. Its going to be an uphill battle. Matt i did a survey among my friends who are obviously laypeople but what did they think he was going to get as a goldman as a golden parachute . I dont think he gets anything extra on top of what hes got. He may walk away with 150 million. Paid 250 he has 41 million in compensation clawed back and theres a good chance there will be discussions about more clawbacks going forward. Do people think we will see more of these types of scandals where theres a similar culture of crossselling and up selling . Is this a wells fargo thing . Guest wells fargo was the poster child for crossselling. They were the most aggressive that it. Other banks do the same thing. Tomorrow, jpmorgan reports and we have some other banks next weekend thats horribly going to be one of the main questions analysts want to know. Do you have a problem like this lurking and what do we need to know about it . Matt thank you very much. For more commentary, go to the bloomberg and as mike mentioned, we are going to be talking Bank Earnings all day tomorrow as we get the big financial kickoff or Bank Earnings. Joe coming up, nobel prizewinning economists Joseph Stiglitz on why he thinks the ecb has failed. This is bloomberg. Joe im joe weisenthal. Whatd you miss . A number of developments on brexit today. The plaintiffs are saying article 50 cannot be triggered without a vote in public. Earlier today, vonnie quinn discussed the issue with nobel prizewinning economist Joseph Stiglitz, an economics professor at Columbia University and chief economist at the roosevelt institute. As a new book out. The European Central bank has failed. Mario draghi said they would do whatever it takes and he has done a lot but the danger of the single mandate was evidenced so clearly in 2011 when jeanclaude treacy a jeanclaude trichet a raised Interest Rates twice as europe was going into a doubledip recession. Any economist would have said thats very foolish he would have said my mandate was focusing on inflation. , it didntmmer happen, but i saw a glimmer of inflation and my job was to make sure that glimmer did not become a reality. That is one example. It has to be focused on employment, on economic growth. to get a mandate changed governed by european laws, thats not going to happen. It could happen, it should happen but my view is it is not likely to happen because the dominant power is germany and germany sees inflation as the problem. Doesnt seem to be worried about the massive unemployment. Use unemployment of 50 for years and years, what is destroying and it seems to be unconcerned or not doing anything about it and so, given germanys focus on austerity and lack of concern about unemployment, i dont see how its going to happen. Vonnie the unemployment that sprung up as a result of that has led to changes in governance with liberal governments failing their electorates. Centristsse supporting the eurozone. Vonnie we are into the fiscal arena. Thatere an argument Central Banks need to be a calmative to fiscal plans like not selling off not government that an amateurs . They have tok support the fiscal policy, but as they themselves have said, Monetary Policy itself has reached a limit. Theyve called for more fiscal policy and they have to be supportive of those kinds of expansionary policies. Selling off the bonds and perhaps even buying additional governmentsonds as need to issue bonds to finance expansionary policies. Lets move to the United States and ask what d. C. In terms of Corporate Tax policies under a Clinton Administration. I know you dont like races to the bottom. Guest she has been very clear about putting forward a more progressive tax policy. One of the things that has happened over the last 35 years as more and more money goes to the top and that means even a small increase in taxes at the top can get a lot of money. But one of the real problems we have been having is this race to the bottom in taxation in which ireland and luxembourg have played a key role. The recent revelation that apple was paying almost no taxes globally illustrates how bad things have become. Vonnie how should a Clinton Administration combat that . It may be britain next that puts in their own Corporate Tax rates. U. S. Corporations paying tax here dont necessarily paid u. S. Corporate tax rate. Guest the countries where the activities occur ought to impose taxes on that activity. A lot of what is going on is what we call profit shifting. The production may occur in one country and they are trying to say a few people in ireland are the source of all of that and its nonsense. Correct tax is the rate to both bring corporations back home and have them not reach enoughnd that would benefit u. S. . Corporations will be operating here. We are the largest market in the world. Sellare going to want to in the United States, so this corporation that corporations are not going to be operating here is nonsense. Vonnie what rate should they be paying . Guest they are not paying the tax rate today, the effective tax rate is very low. So Many Companies like apple and google have a good out how to avoid paying taxes. In my mind, the real issue is lets impose a tax rate and make sure they actually pay it. 12 . E 10 . Be higherhink has to than that. It probably needs to be discussed with other countries because there needs to be some degree of cooperation. The european tax rate is 15 . 20 or 25 isink an appropriate rate. Its also how you combine various taxes. If you have a withholding tax on dividends, that changes what the Corporate Income tax needs to be. Joe that was nobel prizewinning economist Joseph Stiglitz. Bloomberg business flash a look at the biggest business stories in the news right now. Matt in a rare display of investor dissent, shareholders are protesting James Murdochs return as chairman of the paytv company. They are concerned about a previous phone hacking scandal. Castthan 20 of the vote today oppose his reelection to the board. Apollo Global Management and Ethical Energy could close on a deal to buy anglo americans australian coal assets according to people with knowledge of the matter who declined to be identified. The deal may value the assets of more than 1. 5 billion. Anglo is said to extend its final negotiations after the price of a form of coal used to make steel more than doubled. Energy has struck a deal with missouri regulators over its takeover of westar energy. The move brings those companies neared to completing their merger. The agreement would require great plains to keep it capital structure and separate to increase inseek and the retail rate as a result of the purchase. That is your business flash update. Scarlet have some breaking news cabinet oil and gas and williams shares are plunging. Williams is the Pipeline Company and this is after the the federal Energy Regulation commission is perhaps going to delay the atlantic sunrise pipeline. The actual headline is the u. S. Is evaluating alternatives and new rights that involve landowners as not part of the review. And theyll in a filing are requesting comments from landowners and traders are concerned there will be a delay in the pipeline and we see a lot as they continue to sink in late trading right now. We will keep you close it keep you posted. Theres a shortage of marmite. How the slump plays into that in whether what other products are at risk in the u. K. This is bloomberg. Scarlet im scarlet fu. Whatd you miss . Brexit is still brexit. Marmite and a host of other things were not Available Online from tesco. The big reason is a drop in the pound. The drop in the pound value has made imported goods more expensive. The orange line is the euro versus the pound. As the line goes up, the euro is appreciating versus the british pound. Food. Ue line is imported both had been rising but shot up right after the june vote. It is a rate of change everyone is adapting to. This is why unilever, the packaged food giant decided it would raise prices by 10 . Tesco, which is just rebuilding its reputation as a lowpriced chain did not want to pay for that and pass the cost on to customers. Joe says they have resolved this in the last couple of hours, so for marmite fans, that is a relief. Im looking at a concerning chart in the u. S. That has fomc officials paying attention. This is the percentage of nonfinancial debt to gdp and its on the rise. It is not quite back at the levels are on the peak of the crisis, but it is up there. Signs that right at sector leverage our creeping back in and maybe there has not been as much deleveraging as evil thought. Something to keep an eye on, something the fed is watching. Im looking at another brexit chart as well. Ive been looking into a lot of soft commodities. This is the Brexit Effect on wheat. You can see the pound in white and another big leg down. Is a tonbrexit led to of exports from britain. The french are buying as much as they can because their crop got what it in a are worried they might see tariffs go up on wheat, so they have to get it while they can. Joe some good things are happening for the u. K. Matt a lot of good things are happening for the u. K. They got their sovereignty. Scarlet three minutes to go before the major averages and their trading. Kleins across the board and the dow off i 58 points. This is bloomberg. Joe we are moments away from the closing bell. Stocks flowing to their lowest level since july. Japanese yen and gold are concerned about weakening. I am scarlet fu. Joe i am joe weisenthal. Matt i am matt miller. Welcome to viewers turning live in twitter. You can watch it live every day from 4 00 to 5 00 eastern. Scarlet we begin with the market minute. The u. S. Is trying to stage a late rally over the last two hours, but they ran out of steam , going back into the red. They were never out of the red, but we have stocks falling before the beginning of Bank Earnings season tomorrow with financials the biggest lighters. Laggards. Joe kind of an ugly morning, but in the end of every moderate selloff. A very moderate selloff. Matt if you zoomed in, would it be a mirror effect . I am looking at the imap, and financials were done more than 1. 5 . You see a breakdown Industry Groups on the s p. The only real gainers are the real estate. Others Like Health Care and industrials were little changed. More movers to the downside than the upside. As far as stocks, it was interesting. You can use it mov on the bloomberg, arrange them by index points rather than percentage. Berkshire hathaway was the biggest loser for most of the day, after the resignation of john stumpf. Maybe because he has done well for the stock during his tenure relative to his rivals. More to anybody since he took over. The stock was up 500 . Name you cosmetics, a may not know, but it is a 16 billion company that owns brands cross it has been incredible. They own burts bees, a lot of different cosmetics. I was on their webpage. Raise up 11. 4 as they their fiscal year 2714 forecast. Joe two and 10 years yields barely quiet fairly quiet day, but we are seeing declines across the board, not dramatic. Not a big day. Chinese trade at what trade data was weak also, and the yen was strengthening. Below 110,iefly hit now above that level, and that chinese went to a 10 year low against the dollar. Baat had been tumbling along with taiwan stocks because the royal palace had said the kings health was unstable, but traders priced in the uncertainty, and is stronger. Movers, copper falling 2 . We will talk more about it later. Chinese trade data is pretty mediocre, hitting copper which is sensitive. Nicely. Nsend back it had tumbled after production numbers bigger than expected. It