>> have from bloomberg world headquarters in new york, i'm mark crumpton, and this is "online." president obama escalates the offensive against islamic state militants will stop we will look at scotland's currency future if the vote for independence goes through. and more questions on the ray rice video and nfl commissioner roger goodell. to our viewers in the united states and those of you joining us from around the world, welcome. we have full coverage of the

stocks and stories making headlines today. we have a first-hand look at the atming economy and a look currency if scotland's vote for independence goes forward. but we begin at the white house as president obama orders airstrikes on heisel militants. the cost of these airstrikes is unknown, but so are the consequences. >> there are a lot of unknowns with monthly president laid out last night in what was about a 15 minute speech, giving the most extensive look at his administration's strategy to date. one thing we do know is that door for an an open expanded airstrike capability. take a listen. >> i have made it clear that we will hunt down terrorists who threaten our country, no matter where they are. means i will not hesitate to take action in heisel in syria as well as a rock. mys is a core principle of

presidency -- if you threaten america, you will find no safe haven. clear president has made he has the authorization to move forward with syria. senior administration officials say it's not a matter of if, it is when they will be striking syria. targets have already been provided to the president and he's deciding on those and the pentagon will move forward or stop >> regional alliances are essential to this strategy. is there anyone country the united states will rely on? saudi arabia. the president touched on it last night, but behind the scenes, there has been a major push from top administration officials. john kerry is in saudi arabia today. president's top terrorism adviser made a trip to saudi arabia last week. they want to secure a commitment, one that they were able to lock down yesterday, that saudi arabia would support the efforts to train and equip syrian rebels that have been vetted by u.s. sources.

not only will they support them, but they will serve as the host for u.s. military forces training syrian rebels owing forward. the fact they could get saudi arabia lot it is a big step forward. however, there are multiple countries in the region the u.s. want alliances with. so far, they've gotten some good responses, particularly in turkey, they're worried about not being able to lock in a full commitment to this point. -- x thank you. we will have more on president obama's speech ahead. i will speak with a senior fellow at the council for foreign relations hearing about 10 minutes. the president announced today the u.s. will join the european union and intensify sanctions against russia beginning on write a. the new habits are poised to halt aliens and oil exploration in russia. some of the world largest energy companies search for crude formation in russia's arctic.

are these the most devastating impact yet? >> by far. we have seen somebody sanctions that the united states and european union have been trying to put on russia bit by bit over the last six months, but we can say it has been getting them around the edges, hitting particular energy companies and defense the bunnies, trying to tighten up financing. with this particular move, we had a scoop and reviewed this -- it's a really big deal because it means shutting down cooperation not only on goods, but services will stop between western companies and russia over arctic shale and deep-sea exploration. energy companies responding to this? they stand to lose billions. >> we talk to exxon, shell and

bp -- each one has said we will study the sanctions when they are published when they comply with the law. they can't be happy with this because it's tying up not only millions of dollars of sunk costs they have to spend on the rental of rigs and other equipment while this work is suspended. it is also delaying billions of dollars of potential barrels of oil that they were expecting to have in these reserves will stop delayed profit in business can be as bad as lost money in the short term, so it is bad for them. the idea is this is an effort to wield a huge economic hammer over the head of the demand his inner circle. of vladimirking putin -- has he seen a drop in his approval ratings with these new sanctions? >> that's a good question. all along through this crimea crisis, we have seen a huge support for vladimir putin among the russian people.

he has banged the drum of nationalism and so far has been working for him. sanctions get worse and worse and hit the billionaires in his inner circle and start to hit the russian economy -- remember, russian gdp is highly dependent on the oil and energy industry. that is when we might start to see a turnaround because he has staked the entire future of the russian state on extractive resources, so this is where the u.s. and he you are hoping things will turn around and he will be pressured to back down from interference in ukraine. >> as you well know, the line coming out of the kremlin is throughout russian history, people have been through so much. are a few sanctions going to upset rings? , and it reminds me of this notion that the russian people can survive anything and they have survived worse. it reminds me of the ayatollah in iran who said in the 1980's

we can survive sanctions and was able to survive the iran-iraq war for a long time. leaderse these insular in these countries where there's a feeling they can survive but the world has changed in the last 20 or 30 years. everything is so globally interdependent and russia is very tied to the european and u.s. economies. i don't think they are going to be able to shed the sanctions as easily as they might have in the past. >> thank you so much. , a closer look at president obama's strategy to combat islamic militants, the strategy he presented to the american people and the world last night on the eve of the 9/11 anniversary. images frome of the this morning's commemoration of the september 11 attacks. ♪

>> welcome back. this is "bottom line." we continue our examination of president obama's strategy to battle islamic state. max booz is from the council of foreign relations and has served as an advisor to u.s. commanders in iraq and afghanistan. , invisiblebook armies, and epic history of guerrilla warfare from ancient times to the present provides an alternative view of military history. he joins me now from his offices

in new york. thank you for joining me. in a piece or commentary magazine, you wrote president obama laid out the right objective last night, but you report your there are ample grounds for concern that however good the president is at describing the threat, his actions are not sufficient to overcome it. why not? >> he imposed some severe limitations in terms of what we are going to do will stop ursa and foremost, he said repeatedly no boots on the ground all stop nobody wants to send large american combat formations to iraq, but a lot of experts including me and others like the former commander of central command have said we probably -- 10,000ce of 10,000 to 15,000 to act as advisors. to enable the capacity of our local allies will stop president obama is ruling that out.

of these going to rely on airstrikes alone, it's going to be hard to dislodge the most powerful terror group in the world which controls a state the size of the united kingdom all stop >> you were concerned about what the president did not say last night. that he and the military chain of command included tipping the countries and in the name of transparency was not a good idea? >> i'm not sure what you're getting at? >> some things they did not want to say. they did not want to reveal the entire strategy for fear of tipping their hand in what they were going to do to dismantle this group. >> i think they should have done less forthcoming in what they reveal because the president says no boots on the ground, he is signaling there are limits to our willingness to take on i sold and that encourages our enemies and discourages our friends. it runs counter to the best

president obama received from the director of central command who wanted some special operations troops on the ground. what president obama is going to do, but it didn't sound like he was granting it last night. he's not signaling the kind of seriousness of intent we need to roll back this terrorist group and the dramatic gains they have made in the last x months. >> can the president rely on middle east allies to fight i sold? we saw secretary kerry meeting with the saudi king today and will meet with other golf member nations. can the u.s. rely on this coalition when the u.s. themselves have diversion interest? though.word from them we are expecting our allies to carry the load, we are going to be waiting a lot of -- a long time. that's a lot of the problem right now all stop the reason

libya has plunged into chaos as we have pulled back and our allies have not stepped forward to fill the vacuum. there are things we can ask the saudi's, the jordanians, and others to do, but they're not going to take a leadership role, especially if they have doubts. i think there are serious doubts. if you talk to analysts in the middle east, they will tell you we are not sure we can trust this white house and we are not sure if the president will be with us when the chips are down all stop >> what are the economics of taking the fight to isolate? what impacts will this have on u.s. military spending? the u.s. says this will be a sustained effort that will take years, what might it mean for future u.s. budgetary plans as to mark >> i think we should rethink the precipitous decline in military spending which will trim roughly a trillion dollars from our defense budget.

that will cut our military by about 30%. afford toink we can do that when we are facing threats like ukraine, syria and iraq. i'm dismayed to see there's not much talk in washington right now. pretty much zero talk about reversing these cuts in defense spending which i think to be on the table. but so far, it is not being talked about at all. >> the political calculus cannot be ignored. will congress give the president the results it needs, or will the mid-term elections get in the way? >> i think they understand the american people are fed up with isolate and they are concerned about this group beheading americans and terrorizing the middle east. i think congress will get the president the resources he needs but i think congress is not eager for an up or down vote on

the strategy because they don't want to go on the record themselves will stop they want the president to carry the ball. want them to understand what they are seeing on these videos. what is the sense that the council of foreign relations? do the american people understand the urgency of the threat right now? fax if you read the public opinion polls, i think the answer is yes. the american people have been jarred out of their stupor and understand we cannot afford to do that. there is support for president obama to take more aggressive being too he risks small minded in the way he approaches this campaign. he's only going to send 1500 personnel, i'm not sure they can get the job done. i don't think it matters whether we sent 1500 or 15,000.

is addressinga the desire to do something, but it will will not address the rhetoric. >> max news is from the national council of foreign relations. thank you for your time and perspective. coming up, good news or your wallet -- local food prices have fallen to their lowest level in almost four years. we will have the details next. ♪

>> we are only a few weeks away from the debut of our new broadcast -- bloomberg politics, "with all due respect." that will be launched on monday, over six at 5:00 p.m. new york time,

only here on bloomberg television. as the united states prepares for a record harvest, global food prices have fallen to their lowest levels in years, according to a new united nations index out today. my colleague joined now from washington. you are literally just back from indiana. how is the harvest proceeding and our farmers pleased with what they are seeing so far? >> the harvest is going well. according crop quality in indiana is very high. weathere had wonderful this summer, timely rains and not too hot stop you see a global supply response as you eluded to in your intro and that's leading to lower prices for commodities around the world. soybean cropsrd and wheat and rice inventories are healthier than they were a few years ago. you see the supply response easing pressure on food inflation but making it tougher for a farmer to make a profit these days. is down by one third

since april. any sign of relief for those falling prices? monthlysda released its estimate for leading stocks and the answer is no. they upped their forecast for this year's corn and soybean crops which are both that record. inventories next year are expected to be higher than they were forecasted and as a result, using commodity prices -- corn and soybeans have touched or your lows. we have seen levels we were given taking about two years ago. >> what were the farmers telling you? >> they were trying to figure out how they are going to deal with this glut. >> some of the great plains states where you're having supply disruptions and ends that are becoming oversupplied -- you also see a real shift in the economy as far as corn and soybean.

record prices this year, so you see farmers thinking maybe we are in the wrong line of business this time around. >> the situation with corn and soybeans -- how do you contrast that with what is going on with livestock when hogg and cattle prices are at a record? >> what you're seeing our shifts going on the farm economy. take a look at the recent eta we have had and there have been a recent inflection point. for the first time, you see livestock income in the united states higher than crop income this time around. you see real structural changes in the livestock market where supply and demand are getting more closely aligned. cattle had the biggest rally since july of 2011 and we've seen a drop-off in hogs. by historical standards, still a good market for bacon producers. >> how does this story play out

over the next few months? what kind of adjustments will farmers and consumers have to make? >> is one of the challenges with agriculture. the plants have been planted on the harvest is coming. you're just ealing with a glut and working through. acreage,ee a shift in and with livestock, you can see a supply response thereto. but it takes two or three years to get those animals to market will stop this will be playing itself out or months and years to come. >> what are consumers looking at? >> you are looking at a moderation of food and relation. the livestock side will take a wild for the supply response to go through. but if you watch the price of read closely, you should not see much inflation over the next few months. >> bloomberg's agriculture reporting -- reporter.

26 minutes past the hour, that means bloomberg television is on the markets will stop olivia sterns is standing by on a down day on wall street. >> it is a down day with the equity benchmarks on the red. we have been paring losses as we head into the afternoon and it's close to a session high, still down by about two points. the nasdaq off the most, down by about 13 points. a couple of individual names we are watching -- lululemon, the yoga wear maker boosting its annual forecast after posting earnings that beat analyst estimates will stop the stock up more than 13% to a five-year high. they been adding more close that can be worn outside of yoga studios. lululemon is looking to menswear for growth and also overseas. let's show you shares of alcoa today -- down by about 1% will stop the company signed a billion-dollar contract with

boeing. the agreement will be the sole supplier of winning the scams of all of the leg's must how it -- metallic structure planes will stop that equal to a quarter of their total aerospace revenue last year. ♪

x welcome back to the second half-hour of "bottom line." i'm mark crumpton in new york. the national football league is taking more criticism over its handling of the ray rice investigation. areemale u.s. senators calling on the league to introduce a zero tolerance policy on domestic violence. according to the associated trust, a law enforcement official seven at age of ray rice hitting his then the on say to the nfl back in april. for more, i'm joined by trish regan. the investigation is continuing and nfl players are dealing with the mystic disputes and still

playing for their respective teams will stop like that is the real problem here. it's good to see the 16 female senators, out and say this is not acceptable. you get a guy like greg hardy out of the carolina panthers defensive end. this guy was actually found guilty of assaulting his girlfriend twice. hand or roger goodell comes out and says to the media that one time is enough, one time is too many and he is referring to ray rice and at the same time, you've got players like greg hardy you have an convicted in a court of law and found guilty. the video?because >> of course the video made a difference because all of america was ceding it over and over again and it registered how despicable it was what this guy did.

play and for the nfl to allow him to play created a much bigger controversy. what you have other guys like hardy who have and found guilty and they are still laying. think about mcdonald were the suggs.e of rice, terrel an interesting report there were his longtime girlfriend and wife filed a protective order in 2012. >> it brings up the question -- this is not a new phenomenon. as has been going on for years old stop stories like this have been going on since before roger goodell became the commissioner of the national vote all-league. protective of their brand? >> i think that is indeed what you are seeing. it's a different set of standards if a player is allowed to do this. if you think about any other job, if you are found guilty of

domestic violence -- can you imagine if you are a ceo -- would you keep your position as ceo? there's a different standard for these athletes and at the end of the day, it's annexed for an early profitable business. people love to watch for all. >> as you well know, this is not just about rose sports. we seen it happen in college sports and we've heard it about happening -- heard about it happening in high school sports where guys with women aiding have abused them or commit acts of the mystic violence. the 16 female senators got involved, is this a wake-up call for this country? >> it should be a wake-up call. set oft have one standards for athletes and another for the rest of america. i'm a mother.er,

how can a family sit down and watch a football game, watch the ravens play, knowing a player if he beats up his girlfriend, a woman, his wife, anyone, he will get to games were now six games double for smoking a joint. their standards and you question how they are valuing women in society. >> and the baltimore ravens play tonight. the ceo of the nasdaq will join us. he's got a lot to say on tax inversions and we will play some peter cook's interview with treasury secretary jack lew. he says more needs to be done. >> some of them sent a letter to burger king saying u.s. taxpayers pay for the roads you track your goods on, how can you do this? >> we will talk about the

importance of tax reform. of president and cio virginia research will he there with ideas on how to invest in these markets. we will talk to him about these street will stop >> " smart" is at the top of the hour. coming up, watch out for that strange fax message or e-mail. research shows it's the most common form of a data breach. we'll have more on cyber security and how you can attack yourself in just a moment. ♪

>> welcome back. it's time for today's latin america report. argentina's house approved a bill that would allow the government to pay international bonds locally. it's an attempt to get around the u.s. court ruling that had the nation default for the second time. it would permit overseas investors to swap bonds for new debt -- new debt issued under

domestic laws. the bill must now be approved by the president. separatists in northern spain staged protests to demand a secession sentiment vote that the spanish government insists would be illegal. the catalonia regional leader said the government is not wavering from plans to hold a referendum on november 9 in the region of 7.6 million people. experts say any attempt assured to be blocked by spain boss constitutional report. west"nder that "bloomberg will bring you a special, "the alibaba story." tonight at nine :00 new york time and nine pacific time in california right here on bloomberg television. earlier this week, home depot confirmed a breach of credit card information at its stores.

they have not released details about how make cards may have been compromised, but it follows a similar incident at target last december which exposed about 40 million cards. one insurance firm look at 1500 cases of data breaches and found some new trends. kathryn keith joins me in the studio. what did your analysis of the breaches conclude? >> that they are on the rise and that malware and system intrusions are on the rise. there's a huge prevalence of malware now. no longer do you have to be a guru hacker or expert to perpetrate a fraud. you can be a five-year-old purchasing a malware program online and that makes it very simple for anybody to go by a program and execute a malware scheme. >> they are actually making it

easier? >> it is much more easy at this thing. that lets organizations at much greater risk. >> beasley looked at the forensic cost of database breaches. how much is the cost to source cominghese breaches are from? >> costs can run into the millions of dollars. that's why program of insurance is very important will stop tunneling forensic cost, but legal costs, notification costs, credit monitoring -- those can mount into the millions and most organizations do not have those expenses built into their budget. >> i imagine if you were an investor in a public company and these costs are rising, that will cut into their bottom line as well. >> you're starting to see the word of directors in the c suite taking notice and asking hard questions about how they can better protect their organization. enough companies set up of an economic firewall or are they late to the game? do companies insist it's not

going to happen and then they're scrambling to identify and fix the problem? >> we are seeing a change in the conversation. itwere hearing a lot of can't happen to us, but with these large breaches hitting the news, more organizations are saying it can happen to us and may indeed happen to us and we assemblean, we need to all the tools we need in one place at one time to respond to a data incident. >> was target a wake-up call? >> target was a wake-up call, particularly when high-ranking officials lost their job. there's no greater wake-up call them that. morecryption is getting complicated and companies are making it more difficult for someone to preach a data field. what does it mean for the evolution of malware and for those who would commit these crimes? withhey able to keep up

the technological changes? >> they keep up with it at a greater pace than i.t. professionals do. >> how do they do that? >> through government-sponsored initiatives abroad, through a political mission, through economic gain. there are businesses to invest a lot of money into keeping current and staying a step ahead of the rest of us. ways -- whatbest are the best ways companies and individuals can protect ourselves? forably the easiest way someone to steal information is on your smart phone. you think it's safe, but it's probably not. >> you mentioned encryption, and that's one thing that they are not doing enough of. encryption used to be more costly that it is an today, organizations should encrypt all of their portable devices. >> we have the graphic on how to avoid data breaches. what are some of these things designed to do? >> to make it harder for external sources to access your

systems. one method you may have heard of is through social engineering where people will get targeted e-mails sent to them -- you might get an e-mail saying this is an interesting bulletin that relates to your job. open a money know your thoughts. that could be an e-mail designed to get you to click on the document and when you do so, malware will be released into the system. what they do these breaches become a threat to national security or are they already? >> i'm not an expert on national security but i imagine our government is looking at this very seriously because if these onudsters can perpetrate target and home depot, i imagine they have their sights on bigger targets. in the 1500 cases you have looked at, what was the most disturbing thing that came to mind? disturbing thing is

organizations are not spending the time they should to prepare for a data breach. >> they are still not? >> a still do not have incident response plans, they don't have the tools and resources assembled so if a data incident occurs, they can easily" clean respondent answer questions of the press and from their constituents. that is what we do. we help our customers stay prepared and stay ready and be able to respond very well. ahead of beasley response division joining me. thank you. up next, we focus on scotland and the potential costs of independence. with the voter week away, the consequences for the country's currency could be complicated. " on bloomberg television continues in just a moment will stop -- just a moment. ♪

x tonight on "charlie rose" a conversation with henry kissinger. dr. kissinger served as secretary of state national skirt he adviser under presidents nixon and ford. he will discuss his new book tonight at 8:00 and 10:00 right here on bloomberg. residents of scotland will vote next week in the country's first ever independence referendum.

if scotland splits from the united kingdom, the consequences for the country's currency could be complicated. >> the u.k. consists of england, ands, northern ireland scotland, where residents will vote on whether they should remain in this united kingdom or breakaway to form an independent scotland for the first time in more than 300 years. but the scots, english, welsh and northern irish share more than a monarchy, they share a currency. what happens to the british pound if the u.k. got smaller? scottish would likely keep the pound. those who oppose independent say a scotland that leaves loses the pound automatically. >> the pound sterling doesn't along to any one of the individual countries, and belongs to the united kingdom as

a whole. >> scottish nationalists call lissette and empty threat because it would damage currencies on both sides. they say a currency union would benefit both nations. i natural might the negotiation. the bank of england says the rules could end up -- could impact an independent scotland. >> the credit union is incompatible. >> the polls say most ordinary brits say they should lose the power of the pound. aother intriguing option with tradable currency like that sterling -- they could use it without consent, just like panama spends u.s. dollars without u.s. say so. >> my colleague joins me now in this duty of. how seriously are people taking this idea that scotland might continue to use the pound sterling? >> one thing that's important to

note is lot of the campaign against independence don't want to talk about contingency plans in case it seen as a weakness. yesterday, the bank of england was talking to a treasury committee and inside the parliament, he said one of the crucial things is making sure forreserve suspicions independent to operate independently. >> how big might these reserves be? >> he was talking about in a size, 100% of the gdp would be necessary. it's obviously going to be very difficult for a new scotland to develop a less than a split with the rest of the united kingdom. some of the u.k. lawmakers say they would have to raise taxes and lower spending. >> thank you very much. ofck out the latest edition bloomberg business week. it newsstands and your tablet today. you can read that with our new business week out.

stay with us as we continue to cover the scotland independence vote. ♪

>> get the latest headlines at the top of the hour on your tablet and streaming on bloomberg.com. that does it for this edition of on the markets with olivia sterns is next. >> it is 56 minutes past the hour which means bloomberg

television is on the markets. one hour to go before the close and stocks are still in the red, but they have been paring losses as we head into the afternoon. almost flat for the day and the dow jones off by .2%. the nasdaq down by .1%. the s&p still within 1% of its all-time high it hit last week. is stock we want to look at apple -- shares in the red coming off a 52 week high apple earlier this month. we saw shares drop slightly on the day of the launch of the iphone 6 and the iwatch. yesterday, they got a nice pop, but they are down today by about .3%. the launch of the new phone and watch could have major implications for carriers who scramble to cut prices to lure those desperately seeking a new upgrade. for more, i want to bring in john butler, our senior telecom analyst. thanks for joining us. let's begin -- walk us through

the deals we are seeing from the carriers in advance of the debut on september 19 will stop >> it is interesting. the big for carriers have come out with deals. they will want to capture what i think is going to be an upgrade cycle from the current iphone generation to these larger screens. there is a lot of pent-up demand out there and the carriers are reacting. verizon is out with a $60 per month deal with two gigabits of data. at&t is at $70 as is spent. t-mobile is that $80 a month with unlimited data. everyone is out there trying to attract new business with different enticements to bring them in. >> i believe i saw a $200 gift card from verizon. that is compelling. the t-mobile deal sounds like the best -- unlimited data is

hard to get your hands on. what kind of bad business for the bottom line of these carriers? on one hand, they want to bring in the customers but on the other hand, that could eat into their margins. >> a little bit. with the financing program, it's good for the margin for the carriers because they're not paying the subsidy out all stop it's not really hitting the books in the same way the subsidy would and that is where the model is going right now. inarly, consumers are voting favor of those subsidies and i think people, i think americans in general like to buy some assets on time. it looks like smart phones are included in that mix. >> what triggered that transaction? shifting from carriers subsidizing handsets to consumers seeking out financing of their own? >> that's a great question. t-mobile was out with the first financing plan and they are all

about consumer choice. when the new ceo at t-mobile took over, he shook things up not only as a company, but in the industry in general. one of its first moves was to offer that financing alternative because they don't have to pay ort up front payment of $200 $300 for a premium smartphone. they can pay it off over time. >> there you go. thank you for joining us. we will be on the market again in 30 minutes. "street smart" is up next. ♪

>> we have 60 minutes to go until the close. stocks are finally getting into the green. and "streetegan smart" starts now. . coming up today on the big show, president obama vows to destroy the islamic state but questions remain about which allies might join the plan. is the president doing enough to