is it business as usual for wall street? and derek jeter exits yankee stadium in style. scarlet fu could not have written a better script. good morning, everyone. this is "bloomberg surveillance." from derek jeter's new york city. i am tom keene. joining me, scarlet fu and added johnson -- and adam johnson. >> overnight consumer prices rise slightly less than expected. this is the latest indication growth is below trend. inflation.ore >> this is a global theme into october. >> at 8:30 we will get our own read into the u.s. economy. rise -- we will revise it up to 4.6%. in theory. it is currently rated at 4.2%. university of michigan confidence comes out at 955.

-- at 9:55. >> there is a lot of blue chip stock, and i understand that. >> it is like a story. looked ate we yesterday, that is the most offered -- the most awkward. it would break a window because it is that big. president obama speaking at the global health security. he is -- he has left new york, is back in washington. ukraine allia, needing to talk energy. finally, india's prime minister is going to make his first official visit to the u.s. >> and he has a little summons as a background from a decade ago. >> what does he think, it is papers or -- >> i am told it can be delayed until after his visit. he is going to be meeting

ge.s in the u.s. -- pepsi, >> let's do a data check now. after the pullback yesterday, s&p futures, 2000, we are looking at 1964 this morning. 1.2745.-dollar out of the second screen, and well over 15.6. .rent crude under 97 the one story this morning is gold as the ruble continues to weaken. this is a way cool chart. this is a quarterly chart back 20-plus years, and this is the volatility of the ruble. >> like, what do you call them, standard deviation?

exactly. we have spiked up here, creating a new volatility and challenge for mr. putin. to our front page this friday morning, it is a busy one. >> we start with what is happening at this moment. british parliament deciding whether to join a u.s.-led coalition against the islamic threat. david cameron speaking at the moment on the floor of parliament. there he is speaking. >> i will take some more interventions. what i believe a successful outcome would look like -- the motion does not endorse airstrikes on syria and rules out using -- >> the debate there is so much more interesting than in congress, in washington. they really get going. once,brown and cameron over iraq and bringing bodies

home. they really get going. >> like prime minister's questions, the prime minister gets up and takes questions from the floor, and it is aggressive. imagine if senators went after president obama the way -- >> and the house of commons destroyed in the blitz in 1941, rebuilt in 1950. a spectacular room for this debate. >> the prime minister just said they would not commit ground forces, it airstrikes are in the realm of possibility. commit tod they will airstrikes in iraq, but not syria, scarlet? >> believe that is correct. our second front-page story, in washington -- a big guessing game going on. who will replace eric holder? he willnced yesterday be resigning. he will stay on the job until his successor has been confirmed, and the president has not yet picked a successor. a couple big names have been

floated -- solicitor general donald for ellie -- >> this is a kid from the bronx. plain and simple. he was tapped as a child to go to stuyvesant. tracking findsis from the banks, and the 2 -- >> as we all know, a lightning rod for criticism from the right. >> we will talk about what he did for and to the financial industry. and a warning from security experts about a software bug that could be used to take control of all of your computers around the world. it is called shell shock because it comes with software built into more than -- this? do i enjoy getting >> it might just happen. it is connected to these

open-source community platforms, and experts need to figure out a patch to repair it. >> you could be in the ice rink this weekend and get this on your mobile phone? >> i hope not. it covers computers, mobile phones -- >> i imagine there will be some very busy i.t. professionals over the weekend. only affected 500,000 machines. >> only 500,000. >> in this hour, parliament debates joining the coalition. the islamic state has crystallized a need for a new and foreign policy is being crafted with an entirely new calculus to prepare you -- an entirely new calculus. to prepare you, our guest served as undersecretary for secretary clinton. statewilliam cohan on the of wall street.

what is the distinction for prime minister cameron, for president obama? what is front and center? >> for obama, it is what happens with respect to parliament in britain, now debating the issue. the last time he was thinking of taking action, the u.k. decided they were not going to do it. it undermined his readability and position at home. this time it will be different. it is highly likely, as ed -- as thed -- add head of the labor department has said, only in iraq has the government given the consent to the bombing. it has not done that in syria. so the raf is going to go into the coalition and be very effective. >> you combine your work at kennedy with economics as well for secretary clinton. you have traveled numerous times to meet the governments of the east and the arab states.

>> so far you have the gulf states agreeing to participate in the bombing, and that gives the coalition credibility. the real question is what role americans are going to play in helping to make sure that the targeting is effective. so far in iraq has been some benefit and not much with syria. you need very targeting calming, and we need intelligence to do that. we don't have that yet. >> headlines crossing -- the u.k. would act without a vote on syria in an emergency but then go to parliament afterwards on syrian action. he also says there is a strong case that -- >> i have a delicate question. why do we feel we need to get permission from syria when syria has killed 200,000 of its own citizens with chemical weapons? >> we do not feel that way, but

the u.k. has had some issues. up until recently they said they would like to get permission from the government to bomb one of its territories. scarlet is right -- they have to do more in an emergency situation. he wants to maintain his flexibility. to precludewant that possibility. >> to the drama of the moment, the ghosts of 2003. cameron faces different ghosts from tony blair and the legacy the united kingdom has, versus from presidents bush. compare and contrast those ghosts. >> blair was heavily criticized for going along to readily -- going along too readily with the americans. >> and that still is this -- and that still exists. >> and it is still very emotional. they don't want to be seen as doing what exactly americans

say, but there are a lot of brits that are out there fighting for isis, so they have to be part of the mix. intelligence is critical as well as some bombing. >> what is fascinating here, 17th century age history, that was about religion as well. does the u.s. have any kind of working within a sectarian war and being successful? >> it is complicated. i think the u.s. is trying to sort out what is going on. the notion of the border between syria and iraq has been almost completely eroded. the border now is really translucent. anyone can go back and forth across it. and the northern border, because you have all the kurds going back-and-forth -- >> and that is the news over the weekend between turkey and the united states. >> turkey is worried because they want some of the kurds to go north, that they do not want militant kurds going north and supporting kurds in turkey to

too great a degree. >> also setting us up for the weekend, and we turn to something lighter here, derek jeter's tour continues. >> we are already on this? >> he had a game-winning single in the bottom of the ninth to give the yankees a 6-5 victory over baltimore last night. a walkoff hit. yorks his last game in new . he will play out the rest of his career, what is left of it -- aree and cal ripken junior two of the great heroes because they're goodbye parties were really emotional events. >> and yours from the state department was, too, right? >> yes, but not of this caliber. it is important to see that people are loyal to their team and have rate fan following.

cal ripken and derek jeter are two of those. >> he will not play shortstop, but he will probably dh. >> ted williams hit a home run in -- he sat out the rest of the season after that. there for the last at bat. on andid go out incredible high note. even a red sox fan like me can appreciate that. he played in baltimore, in fact. it was really interesting. >> this is like -- red sox royalty. we could end the show right here. >> we have to talk about the iphone. back, what are they doing wrong? institutions to

figure out what is going wrong. >> scandal! >> you are watching "bloomberg surveillance."

>> it is our twitter question of the day. it wraps up this week, too. which poses a bigger threat? thea, shellshocked, or islamic state? tweet us at surveillance -- @surveillance. adam, we are focused on apple as well. >> concerned about the iphone 6 and the ios 8 software.

bill cohan, one of our guests for the hour, i want to go to you on this. you have written a couple of books on institutional breakdowns, with what happened at duke with the lacrosse and the and wall street with financial crisis. is the commonality or some sort of lesson i will help apple get back on track? >> i think we are far away from the kind of breakdown that happened at their stearns or even at duke with the lacrosse scandal. they had this incredible rollout, 10 million phones, and they have a software glitch. they will fix it, i'm sure. there is a lot of pressure on tim cook to do the rollout and get it right. i think he did handle it well. on the backend you, you have software problems. >> there was the antenna problem, the maps problem. is there something institutionally that apple is not getting right? >> i don't buy that.

>> when there are 10 million bmw's released, a few of them are not going to work. it is terrible that people have their shutdowns -- it is terrible that people have their cell phones shut down and not work. it is a new product. it is an important implants that everyone uses day in and day out now. when something does not work and you cannot make a phone call -- >> one of the most incredible products ever that you have in the palm of your hand -- all of that computing power -- and by and large they have done an incredible job. it is a software glitch that i assume that they will fix. they have to. >> does everyone get up in arms when there is a samsung galaxy issue? >> no. >> it is the most valuable company in the world. everyone is focused on apple

after steve jobs, so he gets extra special scrutiny. >> in our next hour, christina warren has some thoughts on this. whether apple has turned a new leaf. we will discuss. this is "bloomberg surveillance." tom, aj, and i will be right back.

>> it is gorgeous, and hopefully on this friday with the president back in washington, less trafficked. ,t has been a little chilly wouldn't you say? >> i had to read -- i had to

wear a sweatshirt when i ran yesterday in the park. one of 4, 5, and six towers going up in midtown, that is a source of conversation. in the distance, 157. if you stand at the top of 157, you can see william cohan's front yard in connecticut. this is "bloomberg surveillance ." >> this is one of the most wrought -- one of the most widely read stories, coming from michael lewis, famed author. he writes about the occupational hazards on wall street. i picked this one out because i liked it a lot, this idea that we focus too much on models and quantity of announcements. seen how we have tried

to model out how mortgages would go bad and whether that would all play out. bill cohan, our guest host for the hour, you read this column two times, you said. >> i like to read everything that michael writes at least two times. this is an important issue. the culture on wall street seems to be all the rage. the new york fed at the end of the -- at the end of october will have a day-long symposium where they address behavior on wall street. he makes an important point in that when people come to wall street they are wide-eyed and idealistic and want to work hard. i want to get paid and do the right thing. over time, the culture changes them. they think they will change the world, and wall street culture changes them and they start behaving badly and get us into all sorts of trouble. his point is you have to be vigilant about that because no one else is going to take care of you. you need to take care of

yourself as you go into this environment. >> he points out that people who work on wall street are primarily loyal to their product rather than the firm they work for. your goal is not -- your goal is to not alienate people. you do not always have your firm's beth interest in mind. bob worked at goldman sachs, a very different culture at the time that you worked there. when i was at lazard, people felt quite loyal to lazard. after the financial crisis, when firms blew up, when they never thought they could possibly low up, they are in free agent mode. bill cohan, who worked at lazard, was in operations and trading and getting things done. and bob hormats, providing intellectual content -- from your point of view, did you see

the culture change toward mr. lewis' cynicism? >> oh, yes. it has become more transactional, much more focused on the markets in which people are operating. the notion of firm loyalty, starting with a firm and ending up in that firm, does not exist. the other was -- yaz.rmats is sort of like >> and there is a lot of interaction in terms of client loyalty to the firm and firm loyalty to the clients. clients want confidence that their are one or two people -- that there are one or two people who have been there a long time and will be there today or tomorrow and one or two years from now. >> salary and bonus register so high that you have to create that transaction. if i don't make $4 million, i am

a failure. loweringd of compensation for all people -- compensation has come down a great deal in the last few years, but they still pay people too much. they do not have to pay people as much. >> this is fascinating. yet tos still not fixed >> i don't think so. >> coming up, peter or zag of want top -- you will keep it right here on bloomberg television. we will be right back.

>> good morning. right now on the floor of parliament in the u.k., ed speaking right now as the u.k. deliberates on whether to get involved with the coalition in iraq. we will continue to monitor these headlines. actually, he has finished speaking. that is a different member of parliament, but we will continue to monitor these headlines as they come out. >> standing behind the two leaders who sit in the middle of parliament. let's go to headlines this friday morning. >> the death toll from the ebola outbreak hops 2900. -- tops 2900.ts

it continues its spread. one and half of them are in liberia. thereions have top 1700 in the last three weeks. president obama wants to shield u.s. service members from high interest that. the administration will propose tougher financial protections for personal loans, making sure -- inquiring minds want to know, ?here is kim jong un he has failed to show up for a major policy meeting in pyongyang. he has not made a public policy meeting in a month. those are top headlines. >> that is some incredible hair, by the way. maybe dennis rodman knows where

kim jong un is. >> we learned in school about the clash of civilizations. there are foreign policies for america. here in 2015, maybe it is simply foreign policy fatigue. we look at ukraine in the middle east but we take our eyes off asia. is serving with the president and secretary clinton. we mentioned north korea, bringing the ever present problem away from our discontents right now. >> they are never dormant for a long time. sometimes they do things that are very unpredictable. notbigger story that has been focused on, i think relations between china and the u.s. are improving considerably. obama will be meeting with gigi paying.

they want to reduce tensions that were problems several months ago, and there are also improvements in japanese-chinese relations, to help lower the decibel level of their suit -- of their dispute. the visit by the president will positive, and that will help stabilize things and stabilize situation in eastern asia. >> expected, unexpected, is that the new foreign policy of america? now our policy is expect the unexpected? >> i think we also have to realize that america has to play a leadership role in dealing with a whole range of issues. one of the things the president talked about dealing with was isis. what is happening in the region is you have instability in northern nigeria. libya is falling apart.

you have al qaeda, this spinoff group from al qaeda. you have a lot of instability in the region, and it is going to be extremely difficult, not just to do with isis but with a wide range of issues. once you deal with them, you have to store record ability -- you have to restore credibility in the eyes of the sunnis. all of these are parts within parts, wheels within wheels of a formidable agenda. then you have ukraine. >> did the president, in your put a new foot forward, with his speech? >> he did a good thing in reasserting that america wanted to play a leadership role, but also that he wanted to do it with a coalition. now the question is can you make the coalition work effectively? there is concern whether you can do with isis, but also with a

range of other destabilizing forces in the area. and can you establish indibility among the sunnis baghdad? you have to bring them not in but other regions. isis may decide that if you bomb it in syria, it will -- >> that shows the complexities that are out there bank. here is my morning must read. in italy, i thought this was a superb essay. a gathering of the modern of metternich, alexander i, and talleyrand is also a dream. there are none.

the leaders we have would -- >> their movements across borders and dealing with them is much more difficult. >> how is this for wall street, bill cohan, to deal with the distraction off to the side? >> i think wall street has a business to do. raising financing, and if the capital markets are strong, wall street throws the stuff off and it does not have much effect. and you read david brooks this is the greatest time to be alive and we should celebrate that. and i think wall street takes that attitude. the markets are strong. the debt markets are incredibly strong. kind of financing, that huge amount of capital that at raised for this company high valuation, that speaks to -- >> you are working with secretary kissinger. whereextraordinary to see

china is. >> i was there bank opening up -- i was there opening up with the early trip with kissinger to china. it has changed radically. the fact is, the reason markets have not been adversely affected -- they have not yet really affected energy. that is where the markets would find a lot of discomfort. even with libyan production down, threats to iraqi production, oil has been rocksolid. >> you could argue that it has been -- >> we will look at oil, economics as well. >> we will also take a look at india, and because their prime minister kicks off a u.s. tour today. we will discuss next on "surveillance." ♪

>> good morning, everyone. "bloomberg surveillance." out twitter question of the day -- which poses the bigger threat -- ebola, shellshock, or the islamic state?

my answer without question is ebola. viruse new shellshock popping up. we will learn more about that in the next week. it is friday in new york city. we say good morning to you. as the u.n. leaves, another visitor to america. >> yes, the indian prime minister will be meeting with president obama along with ceo's pepsico, ge. when we look at what is going on with the indian economy, the s&p raising from stable to negative -- what will his message be not just to the american president but the ceo's? >> the timing could not be better. ,e arrives in the united states

giving a big shot in the arm to confidence in the past two months. indicators -- metro economic -- macroeconomic indicators are already showing. he has been talking about development, and more importantly, he has been wanting to reduce the obstacles to encouragingy private sector investments that can bring back confidence that has been lost. point in aat statement, saying that the new government has the willingness and capacity to implement those long-standing economic reforms. >> specifically, s&p on the upgrade says that it upgrade india from stable to negative based on india's willingness and capacity to perform. what are the reforms that mr. s&p iseds to do that the

so enthused about? >> three things. one, he needs to restore confidence in private sector companies to come back and start investing. second, reduce the hurdles to governance and the obstacles to government policy. more importantly, india has gotten off the growth track merely because of policy flip-flops. this government has come into office saying he will bring consistency to decision making. and more importantly that foreign investors are welcome into this country. officials have been investor friendly, and if the stock market is summing to go by, we have seen $4 billion come into the economy. >> stay with us. robert hormats, one of your

duties was the former prime minister. you were roommates, right? >> we were quite good friends. i went to india a lot, and i still go there. modi meets with president obama, what does he want from the united states? >> i think he wants to demonstrate, as he has in his conversations with leaders of china, leaders of japan, and other countries, he wants to have an extensive -- and expensive foreign policy. but he also wants to attract foreign investments. they need foreign investors. he knows he needs growth, and i think this more business-friendly environment is something he will want. the other thing would be working toether in the indian ocean

do with maritime security and maritime corporation. india's send this back to if we could. what does india want from president obama and the united states? tom, the fact that he is there today sent the message out that washington is, in a sense as he becameed him prime minister. india is looking for investment. multinationale corporations to come to india and create jobs. two days ago, prime minister modi kicked off a campaign asking foreign companies and investors to invest in manufacturing. all he is looking for is, he is saying i will promise you clean governance, that the environment is good to come in and invest. >> thank you.

subramanian joining us from him by. than it so different was 15 or 20 years ago. >> social reform versus business reform. >> and running the country, under congress' leadership, you had mrs. gandhi in the background. had manmohan singh, who is more of a parliament reformer. >> the third largest economy in the region, by the way, behind japan and china. do some photos. i have some good ones today. >> they are not all jeter, right? >> no, they are not all jeter. this was discovered in greece, 2300 years old. guardian7.5-foot tall at the gate. >> this is in northern greece.

>> this is 2300 years old, from the age of alexander the great. this is a newly discovered tomb. >> this is like when geraldo opened the door on tv and there was nothing there bank. except this is the real deal. -- mindto do with freeze. i got a friday brain freeze. youth.al >> having been to greece myself, it is awesome to walk around there. >> you use my vacation days for that. is the ryder, as cup, where tim bishop, the president of the pga, is speaking on stage as in scotland. sky sports fork this image. the first round is just finishing up. >> and the europeans have just

won the first round. beat watson.ust >> at no tiger. , or steppedt asked aside. >> he has not been a factor. >> we go to william cohan on the ryder cup. why do i care if i am not a golf person? do you get emotional at that ceremony right there? tom watson picked the wrong guys. >> there is a pool of 15 or 20 people. >> did they picked the wrong guys? who knows? if they win, they picked the right guys. if they lose, they picked the wrong guys. do they take as much more seriously than in the united states? >> i was watching the bloomberg in the 5:45 timeframe, and

there was an interview with a golf pro. he was talking about how membership at golf clubs are down and people are losing interest in the sport. it is a problem for the sport. >> what will you look for in the ryder cup? >> what will i look for? >> mcilroy. he is playing against sergio garcia. .> numero uno >> we will be right back with more on "bloomberg surveillance ," including the culture on wall street. big changes coming up. coming up withd its -- >> par is not 100. par is not 100. >> we will be right back on "surveillance." ♪

>> this is "bloomberg surveillance." keene and with tom adam johnson. we are going to talk wall street. >> yes, we are. they wanted ad -- new chief banking regulator -- eric holder out as attorney general. the new york fed's upcoming workshop will be about as far as you can get from a conference on wallds to meaningful street. >> i am shocked. cited compensation is one of the key problems. is that what it all boils down to, that people are just paid too much on wall street? they are justhat paid too much, it is an incentive system.

people get rewarded to take big risks with other peoples money. unfortunately, that is still the case. beinggain you see risk mispriced left and right. bonds, 5%, and it is a symbiotic relationship. wall street should not be , but theythose loans are doing it even though they know it could lead to trouble. wall street is aiding and abetting that by selling those securities to investors. >> i know you praised james gorman, the ceo of morgan stanley, for saying that people do get paid too much. >> he is not fixing them. this leadership, in my opinion, needs to come from lloyd blankfein at goldman sachs. he is still the undisputed leader of wall street at goldman. if he does something, if he

changes the compensation system on wall street, arrest of wall street will inevitably have to follow along. he is not doing that. >> let's get a quote here from mr. cohan's epistle to wall street. what about mr. blank fine, the 's chief executive. i would agree with that. this is a guy with real reach across trading and that kind of psychology. what could he do? >> what he could do is tie the compensation and the net worth of the top 500 or so people at goldman sachs -- put that on the line. if something goes wrong at goldman sachs, those people lose their entire net worth like they used to when it was a private partnership. he could do that. >> describe the relationship of the new york fed to wall street.

is it like the new york fed is a hallway monitor or a school prefect? >> no. it should be, but the fed is meant to regulate wall street -- born out of wall street executives trying to save the financial system, not to have a repeat of the financial crisis. beenave interest rates kept so low? it is because wall street wants it. you are not going to have the kind of regulation that you could have. >> bill cohan, thanks. >> and robert hormats, thank you so much as well. >> great to be with you. thanks. rexlet's look at the fo report. the ruble down at the bottom, that is a huge deal.

a big deal into the weekend. ever-weaker russian ruble. >> coming up in the next hour, we are not done with derek jeter. >> why derek jeter? ♪

>> this is "bloomberg

surveillance." >> the prime minister recalls parliament. at this moment, they debate -- should they join the coalition? i cannot believe i am saying this. injeter exits yankee stadium style. scarlet fu could not have written a better script. this is "bloomberg surveillance ." we are live from our world headquarters, friday, september 26. i'm tom keene. fu, adame, scarlet johnson. with us this morning, robert hormats. and here it -- here is adam johnson. >> the latest indication growth still below trend. we will read our own growth. second quarter gdp, rising upwards to 4.6%. that is real growth.

also, the university of michigan confidence number comes out. i believe it is crossing as we speak? >> the loss for last quarter smaller than what analysts are hoping for. we are looking for a loss of $.16. in fact, like very continued to target break-even cash flow by the end of 2015. and for its margin, 47.5% gross margin. >> that is up there with apple. the key comment here is, this marks what is it? the 12th quarter -- no, the ninth quarter in a row of a loss . >> blackberry is still not making money right now. there is a huge shift or a >> we try to bring you the closest we can on mobile toys. blackberry doing better over the last number of months. i don't think a lot of people knew that. sold two million

smartphones. >> this is the chart for blackberry. i will put this out on bloomberg radio-plus here in a moment. story? a cash burn >> it is. the company is not making money. it has several billion dollars. >> and they have the right executive. is that enough on blackberry? >> that's enough. a couple of other items i want to mention -- president obama will be speaking at the global health security agenda summit. russian-ukraine meeting -- >> and secretary kerry burns up the delta shuttle three scarlet, how about company news? that thevernment says

u.s. bank improperly billed customers for extra credit card fees. a major recall by chrysler for the same problem that has been dogging gm. many cars have a dish and problems. they can cause malfunction and stalling. since 2011, chrysler has called more than 2 million vehicles for ignition problems. a proposed food deal gets sweeter. chiquitae plans -- makes plans for a merger. . rival offer pushed it that is company news. >> to the news of the moment, the coalition focuses at this hour on london. prime minister cameron has corralled support for mr. miller

band's party's support. with bloomberg news, traveling with secretary kerry. am glad to have you here today. the leather is green in the house of commons. i don't think there is any leather in the house of congress. >> what is interesting this time is that because the iraqi that hast has you actually asked the u.k. for military assistance, in this case the debate in the parliament is fairly sure it will support military strikes. the same considered situation. >> we say the ghosts of tony blair, because he told me in an interview that he believed it was supporting the u.s. back then that cost him his job. >> robert, what have you learned

in this hour and a half of debate that we have seen? >> most of the time was taken up with a very long opening speech from prime minister david cameron, in which he took a series of interventions, both supportive and quite hostile, people on both sides questioning whether this was a good idea. warhe told them there is no option -- he said the islamic state has declared war on the u.k. so i think -- sorry. please, robert. >> he has the support of the opposition labor party, and that is crucial. this time last year we had another emergency recall of parliament for airstrikes on syria, and his party said that he could not support it, so cameron lost that support. situation, is the

backdrop of emotion. nation,the mood of the the three parties of the united -- as the three parties of the united kingdom debate? >> opinion polling has shown the country moving in support of acting against the islamic state . in recent weeks, it has been brought home that this is a british problem. we have someone apparently with a british accent appearing on youtube, appearing to behead hostages. we have other hostages who are being killed. threatenedare being with death. there was not huge public support for syria. as time the polls show that this is something they should support. i am missing if something, but i need your help understanding, why do the parliamentarians feel they need

permission from syrian authorities to bomb, when it is syrian authorities who have used chemical weapons on 200,000 of their own people? >> this is a very complicated issue. there are two things. the first thing is, the shadow of iraq, the question about whether iraq was a legal war or not. in britain, that is a big thing. democrats feel it was a legal war, as they call it. yesterday, we had a summary of legal advice published by the government. saying the iraq government has asked us to bomb there. not just with their support but with their permission. in syria, no such request exists. so the labor party -- and i think the labor party is driving this. it has not quite been said, but the prime minister said he felt there was a legal basis for

action in syria, and he felt there was a need for action in syria, but he said i do not want a motion for where there is not consensus. and the labor leader said we have questions about syria. i think what happened on wednesday afternoon, when milliband in manchester spoke to cameron when he was in new york at the united nations, he said that we can support you in iraq but not in syria. >> connect the dots. here in the united states between what we are hearing between what is happening with the big terrorist threats and what is going on with iraq and syria are a >> you were talking in thehe british jihadi video. our fbi director said yesterday that the u.s. believes it has identified who that british accent jihadist is, but they are not revealing that to the public at this point. the connection to the terrorist

threat in this country is interesting because just yesterday at a small roundtable reporters, including a bloomberg news reporter, the prime minister of iraq said they had foiled, they had caught some terrorist suspects who were plotting against the parisian and american metro systems. it was interesting because the white house, we immediately went to the white house and they said this is -- and said is this true? the white house said we would have to learn more. remember, subway systems have been targeted in the past, starting with japan with the sarin attack in the 1990's. and london as well. >> there are no official statements as far as official -- s with >> they are on the lookout but they have no credible threat at this point, but it is something they are looking into. it is an issue that has

overshadowed the entire week, terrorist threats. >> robert hutton, thank you so much. we will let you get back to the debate with cameron and mill iband. >> we want to bring in our twitter question. we wanted to find out from you shellshock, or the islamic state is the biggest threat. ebola. to i think the recent information on ebola is shocking. woes.will discuss apple's it had a big launch of the iphone 6 but a lot of problems to deal with as well. what tim cook is doing wrong and right. ♪

>> good morning, everyone. "bloomberg surveillance." is ourlakshmanan guest. off the radar for so many ehran.ans, iran, t there are talks about things with uranian in them. other than that, ken stability be brought?

fly over iran, and then there is the rest of the middle east. how does iran attach itself constructively to these discontents? >> of course it is different, as you point out. it a shia-led nation, but it is persian. thousands of years of history of which they are still very proud. i do think what is interesting is what president rouhani chose to highlight in his u.n. speech. this is the one time of year when he can't speak to the entire world, and the issue he chose to highlight was -- when he can speak to the entire world, and the issue he chose to highlight was cooperation with the u.s. he said if you can give us a nuclear deal, we will cooperate on everything including the fight against terrorists like isis. the u.s. said we will not give you nuclear concessions as in exchange for working with us.

we are already working on isis ourselves. that theue is it arch-led shia are -- >> the struggle in iran are a tween the hardliners and the court. rouhani is not part of that. aom the outside we see him as reformer. and a lot of it is staked on whether he gets a deal out of the nuclear tour that has now been extended to the number 24. all sides were hoping for serious progress in the iran talks this week. negotiatorrussian publicly saying the other night that the iranians have not edged one inch. nothing has improved, i don't know how we are going to get a deal. there has been some pessimism. at the same time, we had john kerry meeting last night and again today with eu foreign-policy chief, so their hope is they can make some

breakthroughs. >> as we look at capitalism, the middle class is not tehran. tehrrth charon -- north an is -- >> terrific briefing. thank you so much. coming up, more on economics, politics, and finance on "bloomberg surveillance." good morning. ♪

>> good morning, everyone. "bloomberg surveillance." johnson.u with adam i am tom keene. we look at the foreign-policy of this nation. news.now, for in company actually, it is domestic. >> intel is making a $1.5 billion investment in china, taking a stake inching why unit group.

strong demand is expected once again for alibaba stock when it begins options trading. it goes live on monday. 270ing volume topped million shares when it debuted on the new york stock exchange a week ago. and three companies are warned to change their operations. lift, and sidecar. it is said that fares are improperly calculated. that is from the files of bloomberg west. >> i am fascinated by government's concern over uber, and all these other companies are going outside government. >> it is kind of like too little, too late. >> you are bypassing regulation.

the question for individuals. if the drivers are not regulated and bonded, you have to be concerned if you do not know who the driver is that you are getting in the car with. what the judicial system effectively addresses? >> i guess, but i would not want to have a problem in the first place. i try to go with someone who is licensed and bonded. bute want to get to apple, we have to ask about this one first. you are the senior tech person at national. what is your take on this? this is theart of government taking responsibility. if the taxi system was not as corrupt as it is, especially in los angeles and san francisco, ber would not have such a huge opportunity to step in. no matter what is happening, you're going with -- that they willid

have to go forward with that approach. living in brooklyn, it is much easier for me to get an uber or a green cap -- then a green tab or a yellow cab. privatehouldn't it be a transaction between two consenting adults? >> people might have expectations that someone is saved and you do not want to get into a situation where you are taken for a ride, if you are choosing to re-shop for the service, you are right. me is that different from saying take me to the airport, drop me off at the store? >> tom, what do you think? >> they have to set up a model that protects passengers, given the certitude that there will be at nationalyou know

, what is the momentum of uber right now? >> portland does not have it, but the citizens wish they did. if you want to call a car, it is terrible. you have to wait 60 minutes. you up cannot pick unless 60 minutes has passed. it is insane. >> within this, does public acclaim overwhelm well-meaning discussions of regulation? >> i think it does. the public wants it because the taxi system, whether you agree or disagree with regulation, the current system is broken. >> with the time we have got, i am stunned, and i give apple -- it for gate -- then -- i give apple credit for bend gate.

have this on your iphone. here is the thing. maps did not work in 2012. siri did not work in 2011. is there a problem in the process at apple? >> there is something every year. last year everybody was getting motion sickness from ios 7. you sell 10 million phones in a weekend, people see a flaw, they will jump on it. it also becomes a messaging problem on apple part -- on apple's part, and addressing it. update wasios 8.1 the real problem, and i think they were silent a little bit too long. >> here is the surveillance scientific notation. we only do this on friday. the -4 phones.

it is a scandal. a -4? is it words, like this too shall pass? >> absolutely, this too shall pass. unless you see a long history like you did with antenna gate. will have to give everybody a free case again. >> how will samsung respond? >> they already have. they have to get their phones out faster, first of all. they are taking advantage of the ir phones saying the are plastic and do not bend. i do not know if that works for

them, saying their phones are of lower quality. >> i have eight more questions. >> you are great, you have to come back and see us again. goodbye for derek jeter at yankee stadium. how much are you willing to see him in enemy territory? ♪

>> bloomberg "surveillance this is." -- this is bloomberg "surveillance." the ebola virus continues its burden west africa. the world health organization says more than 6200 cases have been reported in liberia. inquiring minds want to know where in the world is kim jong-un? the leader failed to show up at a major political meeting this week and has not made a public appearance next month. was reportedly suffering from discomfort. allegedly planned

subway attacks and elsewhere, according to our rack's prime minister who said information came from militants captured in iraq. york mayor ordered more surveillance on city subways. us to our twitter question of the day. which poses a bigger threat? you have ebola, shellshocked, and then the islamic state. attorney generals are always lightening rods for acrimony and debate. serving chiefgest enforcement law enforcement officer of the nation. and dicek can slice the view forward for the next attorney general. donnybrook. how does this process work after the first tuesday in november? whether ortion is not we might they get a name

before the election, and that would be a signal that the democrats, administration is worried there could be a republican senate and there could be a challenge to get someone approved in the next congress, so they want to get it done in the lame duck. it will be a political bloodbath, no matter what. already lying in wait to challenge whoever the president picks for the job. yet to see an article with a beauty list of candidates. are there any obvious choices? >> the list is actually very long. we have heard from administration folks, on capitol hill as well. you can go from people that have ties with the administration and includes the number two at the justice department, james cole, former white house

counsel, catherine rob clark. two other names to keep in house on our, what harris, the attorney general of california, and governor lynch, the other u.s. attorney in new york, the eastern district. she is another rising star within the justice department, someone that holder thinks very highly of. >> what about eric holder's legacy? a big check mark if you are looking at civil rights, but not so much if you look at putting financial crime. >> it is historical matter what, the first black attorney general, someone that was close to the president even before he arrived to the administration. the president will point to his efforts to reinvigorate the civil rights heart of the government. there are questions about his

handling of the financial crisis, why we did not see a prosecution of a high-profile ceo. his supporters will point to his multibillion-dollar settlements with firms as evidence that this was an attorney general very serious about the financial crisis and getting justice after that. secured $37 billion worth of penalties and got the first ever guilty pleas from banks. why would he take the heat? was not a there single prosecution of an executive at a wall street firm. for a lot of progressives and democrats, that is a check against his tenure at the justice department. are other there criticisms from republicans. ,hey are happy to see him go again, waiting to see who the president pick to replace him. >> thank you. >> and thanks to phil mattingly.

the doj admitted last august that they overstated criminal charges but 80%. so the record is a little more flawed than we believed. up slightly after yesterday's big selloff. >> this is bloomberg "surveillance." fu with tom keene and adam johnson. lakshmanan. indira a dramatic night in the bronx last night for a team already out of the playoffs. derek jeter had a walkoff hit against the orioles, driving in the winning run in his final home game. the farewell tour concludes in boston next weekend. our next guest can hook you up with tickets. he is withesident --

us to talk about sports. how much are tickets going for? are there people make their way to fenway? >> how could you ended any better? people are just hoping that he will play in boston. a lot of people are heading up there, we are selling a lot of packages and experiences of their. look at somef you of the best seats up front of the people were paying $1500. the same thing for sunway -- sunday at fenway. up -- play,s sake it will be as dh and not shortstop. what does that mean for the experiences you could together? >> people that go up there are diehard jeter fans. they arere locals and

just excited about giving him a goodbye. it will be interesting either way. he had an incredible ending, you cannot have a better ending, so let's see what happens in boston. >> you are in the heart of the pulse of sports. hitters give you big money to get all the seats that you have access to. how is baseball doing? i see massive anticipation by hockey fans. what is the state of baseball when you look at tickets? >> one of the issues is that there are so many games. the real expense of tickets goes up in the playoffs, but over the past 20 years, even with all the issues going on, the nfl is king you. no doubt that is our primary business. that is what people want. at the end of the day, baseball has stayed steady. the other leagues have jumped up a bit, including hockey. is tot of your job

convince these athletes to pay for highrollers. command can derek jeter versus a lebron james or tiger woods? >> that is a great question. of timell have plenty on his hands, but he will have plenty of opportunities. at the end of the day, he did not do a lot of appearances for sponsors. right now, he has an opportunity to appear and make probably $100,000 loss -- plus. not even showing up at the game, i am talking about showing up for two hours at a corporate function. we just did something with cal game, that the all-star two hours, $150,000.

tot's say we wanted to go the game and hang out with cal ripken for two hours. how much would that cost, how personal is it? >> it is the same price. if you look at a fee of $50,000, whether you have a room of corporate executives, or you just want to hang out, it is the same. most corporations that bring them in, they will have 30 of the best in there. >> we have the ryder cup going on in england. what is the state of golf? >> tiger woods, at least from a spectator appearance, he drives golf. he has not been playing well. when we were doing trips and to the masters, back in the day, i remember masters badges going for $10,000-plus.

now, they needt tiger. >> thank you so much for joining us, robert tuchman. ♪

>> good friday morning, everyone. bloomberg "surveillance." shares, $68, i bought 10,000 shares at 99.70. wrong is right is liu, keene. >> you called me right, i'm so happy about that.

if you would have bought alibaba, it is still up, 30%. not as much as we saw on the first day. the stock has gone down three of the past four trading sessions. one week since the ipo. interesting statistic. i know that you love stats, adam. 8.9 million shares have been shorted. that is only 2% of what is out there right now but it is significant because it's very expensive right now too short alibaba shares. the fact that you have a 2% position on the company is troubling. >> 7% interest rate to borrow? >> yes, compared to a general half a percent. >> you are paid money on your credit balances when you short stocks. in this case, you are paying. >> you have to be pretty determined to think that alibaba is going to fall. out,ber when the ipo came

scarlet, you had some of the statistics. most of these big ipos that we have had in the past have all declined in double digits the first year after the ipo. facebook. i have another stat for you this morning. this is for you. alibaba trades at 18 times sales , compared to ebay, four times, amazon, two times. which would you rather be short? which one is linked to china and the consumer economy? that is what it comes down to. >> what i live there from the late 90's to the early 2000's, everything was about one billion french fries, the potential of the market. >> if you sold one french fry to every person in china. today asking if ali baba bust a market bubble.

>> it is one of those things where it is speculation, who is going to make a mark call? it is interesting, it is in the investor psychology. maybe this is the peak for 2014 until we saw this big route is today. began alibabahat started trading. we will be back on "surveillance." ♪

>> how old do you want to live? that will be our topic monday. it has created quite a conversation. we will talk about ebola and the crisis and will get an up date act, butfordable care we will talk to ezekiel annual -- emmanuelle about this. isgood morning, this bloomberg "surveillance." our guest host of the hour is indira lakshmanan. >> the oil markets is the back

story. it is a requested daniel juergen made famous. so much of the middle east is about hydrocarbons. abu dhabi has tons of oil. oil is the back story. indira lakshmanan on looks at it from the diplomatic point of view. she travels with secretary kerry. we have had so many upsets in the middle east. is oil still the backstory? >> very much, in the middle east and beyond. i have two stories today. the military told us yesterday that in their hits against isis, they went after 12 smaller oil refineries. this is big because prices have been funding itself -- up to $2 million a day -- with smuggled oil. to be able to reclaim the oil

fields is a big deal. >> and this is a refinery smaller than what we see in the hudson river. do not affect the global market and the amount of oil and that isis has been putting out onto the markets has not been affecting the price, but it does affect terrorism. it is fueling their ability to self fund. >> to your other idea, the margin of north dakota, doesn't it change the dialogue for secretary kerry? >> it does. we hear this all the time that shale has changed everything, the way they look at middle east and russia. i am thinking about russia because we have a story that says -- basically talking about u.s. efforts through sanctions to squeeze off a long-term exploration in the arctic and beyond. >> has north dakota changed the or fore for mr. putin

the royalty in saudi arabia? withey have to know that the amount of oil we have now, the whole dynamic is changed and the world is not as dependent on the middle east. russia also has to worry about its future revenues. producers inree the world all roughly produce about 10 million barrels a day. saudi arabia, china, and the u.s. effectively, has opec lost its dominance? >> there is a legacy there. obviously wield a lot of power but i do not think they are as dominant as before. we have to think about it that way. and russia, looking forward, that will be a big change. >> what does secretary kerry do today? doing a lot of things, looking at global health issues, but the most important thing he eudoing is meeting with the

foreign-policy chief and the iranian foreign-policy mr., trying to get back on track to get a nuclear deal before november 24. >> he has a lot of things going on the same time. whatever the politics, we wish him good health. >> speaking of people with a lot of things to take care of, your agenda item has to do with one prime minister making his way to the u.s. >> this is a huge deal. this is the new india, as is modi, from north of bombay. he is here with a different foreign-policy approach. how should we greet him at the white house? >> first of all, we need to reflect on the fact that this man could not have a visa a few weeks -- years ago because of his association with various

hindu national groups. now he is being welcomed and given the right carpentry and. that is big. under the obama administration, the u.s. has stressed india as the world's biggest democracy and we wanted to open up their markets more. retail is a big thing in india that the u.s. has been pressing on. >> within this conversation, it goes to a buffer with china. >> the news overnight, standard and poors upgrades india. on my agenda, i am focused on u.s. gdp. talking about revising the second quarter up to 4.6% from the current 4.2%. that is a big deal. 2.1%verage for the year is

. or, according to the analysts, 3%. 4.6 --to go up to >> this is u.s. gdp handle? quarter, ae second payback, but that is the big deal. on my agenda, time to feel old. the 40th season of "saturday night live" will premiere. the show is known as much for its former castmate as it does for anything live on a weekly basis. who do you think is number one in terms of the top grossing alums? >> i would say dan aykroyd. >> chevy chase is not on the top five. >> it figures that you would pick dan aykroyd because you are his doppelgänger. we put together a photo of you

comparing him. there you go. this out,ng to tweet for those of you on radio. the top grossing alum is eddie murphy. you also have robert downey junior. he is in all those movies. ben stiller and bill murray. vignetteo give you one , by the third week, the world stopped. i remember the night bill murray became a star. he was a replacement for chevy chase. everyone was saying, who is this guy? ondid a couple of things cbs. i cannot help you.

i know who he is. it was stunning what bill murray did. number five.y is chevy chase is number 20 in terms of inflation-adjusted. >> some of the top ones are people that have gone beyond saturday night live, we do not even think of them. >> will ferrell is number eight, i cannot believe that. >> who is the star now? keenan thompson. >> i have not watched in two years. >> i have children now. us go to bed at 7:30 p.m. >> let's get to our twitter

question of the day. we asked which poses a bigger threat, ebola, shellshock, or islamic state? sh here is the response. that is like a donald rumsfeld answer. and finally, it depends on where you live. >> thank you for watching in the united kingdom. are they debating and voting still? >> what do you make of all of this, is u.k. support essential? adds one more active member on this coalition of the 40-plus that the president has

talked about. ned says, they do not know who sandra van ohchr is. >> that's true, i don't know who that is. ♪

>> good morning, it is friday, september 26. we are live from bloomberg world headquarters. you are "in the loop."

i'm betty liu. it has been a terrible week for those long in the stock market. markets are a little calm her today but it raises the question, how low can we go here? we are all over the markets as the countdown to the opening bell. that's good to- our top headlines. stocks in europe are rebounding after yesterday's selloff. futures indicate stocks will be little opened -- little changed at the open. the british parliament debating whether the u.k. should take part in the coalition against the islamic state. british forces would be authorized only to attack in iraq, not syria. believes to have the identity of the man who conducted those beheadings but will not say. i