Even started. He is proven to the world what it means to have an unqualified commanderinchief. It involves more than 25,000 iraqi troops. Cordoned off eight villages on the city policies outskirts. 25,000 iraqi troops in addition to airplanes and advisers. Officials are criticizing efforts by the United Nations to strengthen sanctions, a nuclear test in september. Officials tell the Associated Press the proposed sanctions accused the u. S. Of orchestrating the punishment. Day andews 24 hours a more than 120 countries. This is bloomberg. Amanda live from bloomberg World Headquarters in new york. Rise monday stocks unleashing unleashing a fresh round of earnings. At t can add wall street to the list of skeptics. Andsome lawmakers politicians have come out against the deal. Ameritradel, td tim later this hour we will break it all down into days the numbers do not lie. Cliff lets take a look at where the major averages stand. Echoing what is happening globally, igniting enthusiasm. Area of weakness. You see cyclical stocks forward toward fridayss number. We are looking for a nice rally. A lot of strength being driven by technology. Trading at an alltime record high. Another top view. Higher as itg raised its price target to 14 and inline revenue number for the Third Quarter. In december quarter relative to themmerce, basically saying company reporting is Third Quarter after the close. Quarter,rt fourth shares are up an amazing 20 . Betterthanexpected quarter. Investors are looking at earnings and revenues and 45 million iphone units to be sold. Earlier today, our team spoke to sean harrison. Bullish rightfully so. He still expects strength. And the december quarter to be strong driven by growth. He outlined the idea that some investors are getting concerned with a march quarter. Using the idea that we could see a repeat of last year around the iphone 7. Betterthanexpected iphone 7 launch propelling into the next year. Interesting asking us to look to the second quarter. At 449 date,look. His is a fiveyear chart the huge diversions last time last year when there was a diversions. Revenue shot up and the stock shot down in anticipation. It is not a traditional use of charts. We have a white line around revenue and it suggests a happy with the street is looking for, a small decline in revenue. Into the december quarter, recovery in revenue. The street could have this one right into 2017. All right. Thank you. Oliver you probably know about the 85. 4 billion takeover. The biggest announced deal so far this year. May have been overshadowed by at t, the stake in hilton and td america trade. Spoke to one of the most influential m a bankers in the industry. Of north american jeff asked whether we were in store for another big round of industry consolidation. In some ways, all of the deals is what is interesting. Completely different Industry Sectors. One is Media Telecom and the other is real estate. The common driver is the need for growth. People are thinking much more creatively about growth. A convergence between telecom and media content and distribution. People talk about i want to get the same content and some way, the steel creates the ability for a perfect feedback loop because you get to get peoples reaction, tv, mobile, broadband. It may be a little thinking outofthebox. In some ways when youre in this type of market where you are thaty look for growth, growth can be facilitated by robust equity market. Youre able to deliver that through a nontraditional combination. We talk about this a lot. See that across multiple different Industry Sectors where people are making bolder moves in terms of vertical integration. This is one such example. Have beenese stocks up since friday and a little today. There are a lot of questions and appropriately, has the bar been in terms of what is it mean for scale and having a. Omplete to deliver at t has done exactly that. They raised the bar. Buying 25 stake in hilton, they have done a number of deals over in the United States. Year, what is their view of the leisure leisure space . It is an interesting company. Off of what a Global Company is today, they are a fortune 500 Global Company. People, one third in europe and one third in the u. S. The origin is in china. At in terms of tourism and hospitality, 120 million people. Last year, approaching 300 billion. In the past he the past six years, the gross has made 17 in terms of the number of people representing tourism. That is a huge opportunity. If you look how it is, it is a small percentage of what you would see an terms of the Tourism Market and the western hemisphere. We see a huge first. Have a figure out the cultural better than a few years ago . I think it is hard to make a broad generalization. The understanding of a timeline of having u. S. Deals, it is better than when it came onto the market. What you are required to hit. You see a number of minority deals happen. The head of the m a. More than any other nonfinancial short in the u. S. Corporate bond market. Up next, we put that debt load in the dutch into context. This is bloomberg. Scarlet gold is still up but it has not recovered from the plunge earlier in the month. This is what youre looking at here. Auctions held by hedge funds and other speculators. A Third Straight he sees tighter u. S. Monetary policy, pricing and injuries and sometimes, most likely december. A lot of divisiveness over where gold is headed. Lipase they will rise, they will have an influence on availability. My only is there the largest in history, the best kind of credit they could get, already a big player in the market. Issuer, nowate bond the single largest of the group. Take a look at the other names on the list. Credit to fuel mergers. It raises an interesting question of what is striving the strategy behind the mergers and how much of that is simply the availability of credit and how much of it is credit strategy that will lead to longterm shareholder growth. Few of those charts have stuff in common. Maybe the other ones will jump on the on board. Mine is simple. Big implications. Corporate ceos have been talking about the election. Relative to history, it is happening quite a bit. Point, in the previous election, we had about roughly half the mentions of the u. S. Election as we had right now. Very few people are talking about it. About beingkdrop very hesitant to talk about outlooks going into the next quarters and the next year. You talk about quarterly for the end of the year and people are hesitant to give an assessment fewuse of the fed and a other things. 2008 is a big outlier. Grappling with bigger issues. Like plunging stock prices. Exactly. Interesting trend. We were just talking m a, a deal with online brokers. Coming up next, the Td Ameritrade president and ceo. Scarlet time for a look at some of the biggest business stories in the news right now. The phony Bank Accounts get a is hurting wells fargo. Consulting firms find that 14 of existing customers have decided to leave the bank, which would result in a for the dollar loss in revenue. 30 of existing customers claim they are putting a total of 212 billion in deposits at risk. Lawsuit questioning the safety is an attack on free speech rights. They say Research Backs their claim that they are vulnerable to hackers. Lied forit claims they financial gain. To first u. S. Car unit practice the top three in liability rank and. Sedan afterodel s losing it last year. Holiday reprieve, senior lenders have agreed to give the train the chain reading room. That is according to people with knowledge of the matter. Too much at 75 million Credit Facilities limiting how much it could access. That is your update. Known for targeting real estate companies, is one skin making waves. E has his sights set at broader markets this year. Toan open letter shareholders following the companys moved to shanking to strengthen directors on the board, saying it was an attempt to stifle voiceless. They have not responded as far as i know, since i have been in here. Knew we were coming. We started our engagement in june. They shrank the board. One less available for election. They are in violation of the charter, which is problematic. You have been urging for responses. I wonder what you have gotten from other shareholders, and black rock. He does the biggest investors in the company. Right now, reaching out for them, they do not want to talk unless they have to do with a vote. Engagedt we would be with them paired is their way to get the investors engaged earlier on Corporate Governance . Devaluing the merits of the nominees that both sides put up. It is really over the past 20 years, and i think there is a compelling day for change. I mentioned you had said you see trumans opportunity for the stock. It is now trading in the low 70s, in line with the past five years. As recently as august, it was trading at 81. Where should it be . We think it is 126, in line with most expectations. A tremendous amount of upside. If you read the reports, many analysts tagged discount on Corporate Governance among operating issues as well. 24 milesnter has across the u. S. It expanded to china and south korea. Do you think this was the wrong move or bad timing . These are the best malls in the United States. These malls have been doing very well in terms of doing growing earnings. They will continue to. The first time they had up and running available for lease. Unhappy with the extension, investors want to own the u. S. Small. They do not want to own the asian malls. A company iny singapore that owns the malls. I think the south korea asset will be a great success. Very similar to an we were involved with mgm. If you want to buy in las vegas, you want to buy in mgm u. S. America overall, over stored. They target high Income Properties highend shoppers as well. Will that catch up with them . On, a will want to try it 700 pair of shoes, tesla car, people want to go and feel in touch and try it on. There are not many of those malls in the u. S. They know they will get shoppers coming to them because of that activity within the centers. You have more than two decades of experience. What do you think people get wrong the most when it comes to investing in real estate . It is not a dividend yield or a bond substitute. They are growing the earnings in the stocks go up. Faye are not bond substitutes. Now where the stocks are going down because Interest Rates are going up, that will pass. It will pass and the stocks will come back and underlie the asset end of thebly by the year as investors realize this flowt a bond, it is a cash growing. Of course, when you look at what has been going on today in the market, it is a blowout month and day for yields. I have it on my screen. You can see so far 450 5 billion worth of deals are announced. Roughly 6 of that in north america, up about 60 yearoveryear. 20 of that was done in asia. The largest deal was when we were just talking about. At t has purchased time warner twice the size1, of the next biggest deal. If you look at the chart that highlights the kinds of moves we have seen, you will see the number of deals has dropped off. But the value of the deals have increased. There are much bigger in value. It is amazing to see them overshadowed, the sheer size increasing. You get the sense they tend to be larger and lest strategic. Cheap credit has a big part of it. Momentum picking up in different sectors. Quarter for, this is a big boost. Start to a year that otherwise was little bit quieter and is now picking up. Goless than four minutes to before the close. This is bloomberg. Anchor we are moments away from the closing bell. Tocks advancing treasury dropping as Economic Data bolsters the case for higher rates this year. I am scarlet fu. Anchor and i am oliver running. Live streaming on twitter. You can watch that every weekday from 4 00 to 5 00 p. M. Eastern. Scarlet u. S. Stocks start the week with gains. Eight of 11 major groups in the s p 500 rising with tech leading the way. Oliver i will start off with. Ech in some sectors the nasdaq was doing pretty well today and led to gains up a full percent. It is leading the rest of the market. Telecom down, obviously. At t a little bit in the red group down on the day. A couple interesting stock picks that i saw were moving around a little bit. Cocacola volume was really high today. It was one of the most highly traded stocks in the market. Boeing had interesting activity, open interest is pretty high. Twocola was trading at a standard deviation. A little bit of activity on those three stocks and then finally closing it out with volatility in general. We are now below, close right at 13 . Volatility going down and starting to fade away a little bit. Scarlet take a look at some. Ntraday Strong Manufacturing gauge hitting a oneyear high, looking the week,he end of new speculation into what and when the fed will move. Over spain and portugal, getting today as a bit of a risk off appetite hits the market. Government Political Risk taken out of the equation. Portugal reaffirmed the only Bond Rating Agency still to have the government treasuries at Investment Grade would be a bit of a disaster. Relief in the market in europe. You have seen a as well in terms of a little bit of a boosting of the risk. Let us stay with him up and take a look at the euro, near a sevenmonth low versus the dollar. Date, i should say, it has paired its gain to 0. 1 . I am paying attention to emergingmarket currencies. Losing see the dollar against the brazilian currency. There is also a lot of anticipation of dollar inflows. I included the chinese offshore yuan. The new record to watch out for a 6. 8. Investors are taking more money out of the country so capital flight continues. Bitcoin is up by 3 . At a threemonth high and we might be seeing more trading demand for bitcoin as that capital flees china. Anchor it is falling to a fiveweek low. That is hurting a lot of folks because there was a sense that natural gas, were heading into cooler weather, and it was time for them to back off, which they did at exactly the wrong time. It may not will here. The bears may be moved too fast. Those are market minutes. Meritrade said it would it combines two of the Largest Online brokerages. It met some scale at a time when small investors are moving away from stock trading. The Td Ameritrade president joins us. I want to start with the rationale for the deal. There is a real sense that that part of your business is under threat, that whether it is robo , you will face increasing pressure. Was it that Competitive Pressure that drove this acquisition . We are finding that we are able to invest in all elements of our business, whether it be our robo platform in a few weeks or this particular deal with scott trade ttrade because it gives us an enormous amount of scale. There has been a lot of focus on the Financial Sector, especially in a lot of things who are try to figure out where they are going to get their revenue from. Profits just shrink for you guys. Ultimately, you are in that same kind of cool. Where is money to be made in equity trading . How does this deal that you up to survive in that market . In the powerieve of american markets and not our Business Model is a great one. The deal gives us bigger scale. We add our 7 million clients account. We will have about 1 trillion in client assets when the deal closes and more importantly what Td Ameritrade has that the founder of scottrade recognized is that we have a number of platforms that are cutting edge that he would like to have but did not have the scale to be able to invest in. Combined, we have lots of opportunities. Overall, the brokerage industry is dealing with lower activity. His is a structural or cyclical issue . A structural or cyclical issue . Cyclical. Guest guest cyclical. Obviously, Regulatory Approval is pending and we would expect that to happen sometime in 2017, and we are confident they will give us a fair hearing. Theer with regards to structural versus cyclical, as more and more investors move in, they can buy the etf through the business. Structural a impediments to the fees based income stream . Bitt it might be a little over time. That is one of the reasons we are adding other capabilities like our robo platform or our advice space businesses. This gives us a client base. What we find is that the tdma or to a client is similar to the scottrade client, but the market the Td Ameritrade client is scottrade the stoc client. We think we will have a better opportunity to provide more services to scottrade clients and therefore get more revenue streams. Anchor another big theme we are seeing out there is the enormous amounts of cash sitting on the sidelines. On my brokers earn interest on client cash. Rocksing to black whetherondering you are seeing something similar . Retailif you look at our or institutional clients, on average, they see somewhere around 20 on hand in cash and our institutional client, it is half that. Average, 15 . We have seen Cash Holdings go up a little bit as people have gone on the sidelines because it is down a little. One of the places the banks are still doing well is on the management side. How much is this strategy is about migrating even those low margin trading customers into the part of your business . Guest that is an opportunity for us. Is a keyhat strategy for us. Having an additional 3 million client accounts in order to offer the services that we already have, not with Landing Building out notwithstanding building out. Anchor you are acquiring the scottrade banks as part of this transaction. Is that part of the deal or is there a Strategic Value as you roll that into your u. S. Operations . G