Weekly tracking poll. Libertarian gary johnson gets 8 of likely voters, with the green partys jill stein at 4 . In a headtohead matchup, clinton leads trump 5143. Magazine is endorsing Hillary Clinton for president , the first time the fashion bible has endorsed a president ial candidate. The editors wrote we understand clinton has not always been a perfect candidate. Yet her fierce intelligence and considerable expense are reflected in policies and positions that are clear, sound, and hopeful. In belgium, authorities have indicted for people on terrorist activities including financing and recruiting fighters for the Islamic State in syria. As many as 15 people were detained earlier during searches in three cities. Photo Prosecutor Office says no weapons or explosives were found during the searches. And the u. S. State department is denying any involvement with wikileaks founder julian us on angeng in an julian ass losing Internet Access at the Ecuadorian Embassy in london. Secretary of state john kerry says that the conversations with officials are untrue. Ge is trying to avoid extradition to sweden over an alleged case of sexual abuse. Global news 24 hours a day powered by 2600 journalists and analysts in more than 120 countries. Corny collins im courtney collins. This is bloomberg. Scarlet we are 30 minutes from the close of trading. Im scarlet fu. Joe im joe weisenthal. Matt im matt miller. Joe the question is, would you miss . Whatd you miss . Inflation may have been underwhelming but earnings are stand out as we head into the close. Investors are eyeing yahoo and intel very closely. And we are going to be speaking smith. Tels stacy the chipmaker is pivoting aggressively as core pc sales and. And it has been a horrible year for bill ackman could even his adversary even as his adversaries seem to be plotting emise, should we be counting him out . Could bill ackman make a comeback . Scarlet we are heading for the close so lets look at whether stock indexes stand with abigail doolittle. Abigail we see lots of green for the three major averages. Higherp 500, nasdaq all with lots of green. Nasdaq close to one person as the techheavy index charges forward. Lets look at the financials. I socket of strength for u. S. Stocks. Goldman sachs and blackrock and regent financial trading higher. Goldman sachs earnings really stand out. A lot of the strength is driven by fixed income strength come up 49 on a yearoveryear basis. On pace to close at an alltime high. One potential catalyst for alphabet trading higher today could be the new smartphone. Pixel is receiving lots of praise. Alphabet trading nicely higher come on record the big winner is netflix. Shares are trading at levels last seen in december 2015, absolutely surging for the best day in more than three euros. Netflix put up a great Third Quarter. Subscribers Growth Numbers come i should say, beat estimates. They get better guidance for the Third Quarter than was expected. And big praise for david miller. He initiated on the stock two weeks ago with a buy rating, saying this is what he expected. To try yesterday that was a little bit more bearish. We want to look at it today to see what it looks like. Perhaps we should have given it more fair treatment to it. We do see that this is netflix caught in his longterm range. Lots of uncertainty. In therd quarter beat stand of messy quarters. Recently the stock to trade above the 200day moving average good back into the range over the last couple of days. This will be one that time will tell but it could be. Scarlet thank you so much, abigail doolittle. Matt whatd you miss . He has not been a good year and a half for bill ackman. Down to 11. 4 billion thanks in part to massive losses in his portfolio but also because of redemptions. Does he have a comeback left in him . Bloomberg contributing editor bill cohan wrote an article entitled is bill ackman toast . He joins us with inside. Tweeted ittory, i out. It has been published for a day now. I wonder if you have heard back from the bill ackman cap because he did not comment to you for the story. Bill well, matt, it is a good question. Ive heard bits and pieces back from them. Bill is supremely confident, i think we all know that. Let anot going to 13month that setback derail him from his 50 have in your mission he is on to be like warren buffett. Whatever, 13 years into that so he has another 37 or so years to go. He remains agreement confident. He believes he can turn v aleant around. Most of his problems are sort of nestled right up there, which aleant, which is had a horrific run. They think they can turn this around. You say confident, a lot of people in your story say everything. The guys looking at an insider a lot of people in your story say arrogant. The guy is looking at an Insider Trading suit. He is also dealing with huge losses in valley and, which some have said is an unethical trade because that is the company that buys drugs and raises the price 100 or 1000 to make a profit. There is more than one problem for bill ackman. Bill true. He was a he bought into that he would say he bought into valhe would say that he bought into valeant not aware of the jacobin in as and was investing different ceo then he turned out to be. I think the bigger thing is the Insider Trading case, which smacks of Insider Trading it of course, im not a lawyer so i should not practicing without that license. To me, the federal court in california is going to be deciding that. He made 2. 4 billion on having information about valeants bid for allergen that others didnt have and to me that smacks of it. But we will see. These rules are very arcane. There is no law. All interpreted by the courts. He beasley doesnt believe he engaged in insider he always the doesnt leave he engaged in Insider Trading. Scarlet of course, his adversaries would point out that he did. Your article is remarkable for how many partitions there are from other Hedge Fund Managers. It is unusual to see these guys go on the record to slam someone in their own community. Aside from the famous carl icahnbill ackman debate of a few years ago. Look, hedge funds are the ultimate darwinian game. They smell blood in the water related to bill. He does inspire huge amount of schadenfreude. This is an opportunity for them to come out publicly and criticize him because he is beaten down. He has had a rough 13 months. He had a great 2014. Had he not raised Something Like 6 billion in permanent capital. He would be looking like richard perry, if you ask me, just went out of business. Yeah, theyre circling, having fun. Scarlet theyre circling, having fun. He does have a bit of aggression. Who are bill ackmans allies . Bill hmm. Of course, scarlet come i dont reveal my sources. There were some Hedge Fund Managers who were crunching in dging in respect of bill, especially with herbalife. Some feel he got the intellectual argument right about herbalife, not the reaction of the market. Bill is an iconoclast. He is not wellliked. There are not people who are going to rise to his defense at this moment. This is blood sport. This is darwinian. If they smell blood in the water matt even john mcenroe doesnt like bill ackman. Well, 2 hot heads, john mcenroe and bill ackman, and they deserve each other and had quite a grudge match, probably. Joe im going back to this sounds like after the jcpenney debacle, a lot of people writing his obituary then and then and that he had a fantastic performance. Fundamentally like a different moment for him then after that when it seemed like he was on the ropes and then . At a he went to valeant high point and his whole m. O. Is to buy committees like general growth. Nobody thought it would amount to anything. Is to buy companies when they are low or people have given up on them joe like chipotle. E, butyeah, like chipotl that may be indicative of more trouble for them. Valeant was against the grain. It totally collapsed. He has used that as a oneoff mistake which will not be repeated. It is the message he is given to his limited partners. He is very confident. He remains extremely confident in his bill ackman way. Matt lets not forget, he is bill that she is a billionaire. He is a billionaire. Bill not this week. Matt hard to pin down the returns. I have the stock on my bloomberg from the ipo. It is down by half. Some of his adversaries have said he is not returning anything. Some of his supporters say they are making 15 year on him from the good from him. Bill we are in this neverland. Percentages of return over time. Someone talking about absolute return on dollars. When he was a smaller fund in his earlier days at pershing, the amount of money he made was smaller and then the returns were high. Now he is a bigger fund and has lost with valeant billions of dollars and people of done the calculations. He has returned close to zero dollars. He disputes this and he does she think she is making plenty of money for everybody. We will have to see. Very interesting story in vanity fair. Bill cohan, also a bloomberg contributing editor. Make sure you turn in tomorrow tune in tomorrow. Definitely some thing you dont want to miss. 2 00 p. M. New york time. Scarlet vanguard has been a known for its low fees and ceo bill mcnabb talks about how lower they could go. This is bloomberg. Matt whatd you miss . The rise of a low fee index funds. Vanguard started the trend and it averages 3. 8 trillion in global assets. Erik schatzker sat down with vanguard ceo bill mcnabb and the 2 ss competition in the industry. Ss to come edition in the industry. Assessed competition in the industry. Bill what you can expect his overtime across the board we will continue to lower fees as we create economies of scale. It is typically not a product for product thing, from our perspective. It is a way of being. What customers to look at it on a product byproduct basis. Clearly there is a risk. If you dont match, you may lose new assets. That is true, is it not . Bill no, i think clients look at us as somebody who has been talking about this for 40 years and if you look at the inexorable decline of expense ratios, we are equipped to keep doing it. It is not a onetime or temporary thing. It is the way we exist. And there is no risk, for example, that existing assets walked out the door in search of a cheaper fee . Bill people should be looking for value all the time but investors at vanguard know that over time we will continue to do what is right for them. Erik lets talk about it in those terms. What is the average fee investors pay today to be in a Vanguard Fund or etf . Bill if you go across the entire 320 chilean dollars 3. 8 trillion when i started it was in the 60s and 70s. See the slope of the line has continued to be pretty consistent, and it really thereasset management, are economies of scale, and a Business Model is returned as economies of scale to the people who create them. Erik given that trajectory, where do you think it will be five years from now . Bill hard to put an exact number on it. Erik full parking involved working. Ballparking. Bill less than it is today. Erik clearly zero is the theoretical limit for fee reduction. What is the practical limit . On your broadest, largest minute, what is the fee . Bill i dont know the answer to that today, erik, because the scale and technology continues to evolve. Nothing is for free. You have to pay for custody and so forth. As we approach that what we will see these people doing things to collect fees in another area and ,ave more of a headline issue one or two basis points. Money is going to be made somewhere else. For us it is about being transparent, the total cost of ownership. Erik i see. The lowcost fund or etf will be a loss leader and they will make it up elsewhere. Bill i think that is probably already happening. Erik and you are not going to do that . Bill we believe in everyone paying their fair share. If you look at the evolution of the client base, that is what it has been. Yrik when you say with a wr smile it is already happening, who is doing it . Bill you look at the different firms in the different Business Models, and the size of the funds commit is hard to get if i basis points with some of these etfs. Erik just not big enough. What about competition . It is good for the investors in the short run, the short run, but if only the largest firms can survive, that will reduce choice for investors. Bill that is one of the balancing things, watching the competitive market evolve around. There will be consolidation. The large firms will have big advantages in terms of scale. There is room for smaller players that are nimble. I dont think we have seen the end of management. I think we have seen the end of high cost management. You can see boutiques playing in that space, people focused on a particular sector of the market be very successful. What kind of firm is a dinosaur . Bill any traditional high cost manager is going to struggle. Erik what about vanguard . Bill bill we have done everything organically erik i know, that is why i asked the question. Never hereever says is an interesting thing, we never have a growth target and we never spend that much time internally. We spent a lot of time trying to focus on how can we create the most value for our clients. Growth has taking care of itself as a byproduct of that. I think we will continue to drive towards that. Matt that was a vanguard ceo bill mcnabb. Until earnings are coming up. This is bloomberg. Matt what you joe whatd you miss . Whoever wins next months election, the path towards passing your deals may be difficult or undesirable depending on who wins. This is the number of mentions of the word isolationism going all the way back to march 2000. It flows of every once in a while, not really surprising. Peopleperiods of stress cite our country is going to be engaged in a new round of isolationism. But look at the popularity of brexit, donald trump you see a surge in the story count. The idea that countries will retreat from globalization, from tariffs and barriers, becoming a bigger story in the world. Matt that is interesting. Later on i am a chart from the Philadelphia Fed showing how much partisanship has flared up. Right here i have a great chart put together by dan curtis, one of our producers at bloomberg. What this shows use the drag or boost to cpi that you have from these three different components. In purple uc energy you see energy. Thelue you see core, everything else. In white you seafood. The interesting thing is yearoveryear, the drag that energy has been on inflation and the boost that food has been in white on inflation. Even though we have a number of 1. 5 , i believe that was the core number. 2. 2 , that was the yearoveryear change. You can see that energy come even other prices have recovered substantially, has still been a drag on inflation yearoveryear. Scarlet this is an incredible breakdown. Barely any courtroom until december 20 15 excuse me, january. Matt well, thank you, dan curtis. Scarlet intel is reporting after the bill and like every company they are trying to turn to highmargin businesses. Looking at a snapshot of Revenue Growth and the white lines overall Revenue Growth. Clientnge line is computing growth, a combination of pc and mobile and communications. Index of a majority of sales but it has not had much positive Revenue Growth. The red line on top is the data center growth. Pc business but it is inconsistent and that is something people will be watching for after the close. Take a look at the major averages. Less than four minutes before the close. We are moments away from the closing bell. U. S. Equities head toward their biggest day in almost four weeks. The dollar on speculations the fed would [indiscernible] i am scarlet fu. i am joe weisenthal. Matt you can watch our coverage on twitter every weekday from four to five eastern. We love magic. See stocks recovering from the decline. Day wasta point of the the inflation report, consumer matched or slightly missed economist estimates. A lot of buildup to this and then another report. Prizes are rising but not like the fire people would have it was a little bit of a letdown. On the other hand equities are up the board. Estate was added recently. The biggest gainer was health care. Netflix is a clearwater. The subscriber growth beat the estimates. Everyone is excited about stranger things. Harley davidson a big gainer at 9 . Not on takeover talk. The new engine is spurring so many sales in september. Supply sales look fantastic. T the same time, cutting cost higher revenue, lower cost equals big game. It raises its forecast and has the biggest gain in stock in three years. Things are looking to get a little better after it has an open care loss. Scarlet intel just reported results. On that basis analysts were looking for . 67. That is a beat on terms of adjusted earnings per share and also reporting a beat. There is a consensus estimate of . 73. Gross margin, which is one metric intel provides, was 64. 8 . Analysts were looking for 63 . That or profitability from intel than what analysts have been looking for. Continue spending what it has indicated as well. When you look at the outlook for we arerth quarter here, looking at a fourthquarter revenue of 15. 7 billion. Analysts were looking for a range of 15. 9 billion. That pretty much falls in line with the company. The stock is down 4 after hours, it could be on that sort of maybe people were looking more on the outlook. Matt my first job, working for , this stock has had a runup into these earnings over the last three months. That could be one of the reasons where the stock was down. So far it is 1. 8 billion of charges realized to date. Get back to market recap bond market. It is not just mediocre but underwhelming cpi report. Pressure on the fed. I also want to look at 10 year yields. The story is the higher yields we are starting to see it. Ver australia, korea, taiwan ada is driving in the currency market. Was a seven month high. It wasnt enough to fuel faster right expectations. The pound actually strengthened. It may have less to keep cutting rates. Or to contain that price ride. There is also comments from a u. K. Government lawyer that suggests been made to rag on because it faces legal challenges. Kind of delay , we werejusted eps looking for . 14. The bottomline figure beating analyst estimates. The estimate was for 860. That is basically in line with analyst estimates. Yahoo getting some guidance for fourthquarter revenue in the range of 880. This is all very interesting. The only thing that matters for yahoo is whether or not for us