decision on whether or not to raise interest rates. economists are split on what the outcome will be. scarlet: we will take you to where the euro space giant is opening its factoring mobile, alabama. fiat chryslersing for union negotiations. why the uaw is skipping the three biggest automakers this year. good day from bloomberg headquarters in new york. i'm mark crumpton with scarlet fu. we will talk to our chief economist from bloomberg economics in just a moment. there seems to be a split. scarlet: bloomberg intelligence

has been firm on what they see the fed decision is. ahead of that, let's look at how stocks are faring this afternoon. this morning, they opened lower and we quickly hit our session lows around mid day. there you have the numbers -- down 47 point. come inside the bloomberg terminal to look at the intraday moves. you can see declines of about .3%. we have not then above the unchanged line. if you look at the different industry groups, it has been fairly consistent in terms of leading the way lower. materials and energy companies down each by .8% on the back of falling commodities prices. and treasuries -- a quick check on that as well before the fed meeting on wednesday. the 10 year yielding 2.19% and now unchanged.

some selling in treasuries on the longer end of the yield curve. oil: we were looking at earlier today -- look at nymex crude. it is down 1.3% and brent crude was lower as well. still trying to breach the $50 a barrel mark for a time now and oil, kind of the gauge of what has been going on in this economy through 2015. you see oil go up and down, slowness in china, it's all having an impact. was the industrial production data out of china that caused this weakness in commodity prices. mark: wall street economists remain divided over whether the fedll be a move by this week. the probability of an increase continues to rise for future hikes. scarlet: so we need to bring in carl riccadonna, the chief

economist from bloomberg intelligence. you have been firm that the fed would move in september, but late last week, you adjusted your timetable. carl: we had to make an adjustment to the call. having the september call was a dovish outlook and the fed has delivered, but they delivered to such an extent, especially with the volatility in chinese devaluation, they are going to continue to air on the side of caution and wait a bit longer. mark: was the change all about : china and: -- carl the market volatility. they are scratching their head over whether this will affect consumer confidence and business confidence. our first glimpse came last friday with the consumer sentiment data, when we saw a six point pullback. that puts it at a 12 month low for sentiment. philly fedwe get the

manufacturing survey and that will provide an early read if we are seeing negative feedback into the business sector. scarlet: are these data points on their own enough to influence the fed? carl: they are not sufficiently crucial to steer the fed but i have this hesitancy and this will only add fuel to the fire. i think they wait until october and signal fewer and slower rates over the next year or two. that is an easing of sorts, so they will ease before they hike and keep the option open to hike in october. janet yellen can further cements that by calling for a post meeting press conference at the october meeting. mark: we talked earlier about china roiling the markets. what impact will a fed move have on the slowdown we are seeing in china? a fed move or sequence of moves would actually help the

local economy. everyone is in a race to devalue their currency. if the fed is hiking rates, especially if they are hiking aggressively, that augers for a strong dollar and therefore weak currencies across the board in terms of non-dollar currencies. that comes at a cost to the u.s. janet yellennot -- does not want to push ahead of the sharp increase we have seen year to date. , thank: carl riccadonna you very much. mark: let's take a look at the top stories we are following at this hour. a professor is confirmed dead after a shooting at alta state university. all remains on lockdown. authorities are sweeping holdings as they search for a shooter. students, faculty, and staff are guys to take shelter.

credit squeeze will pay more than $80 million to settle dark fool claims. details areere it not made public. this was bank will pay more than $50 million in fines, a record settlement with the fcc. the bank would pay $30 million to the new york attorney general. mark: the former trader sent to jail is appealing his sentence. tom hayes was found guilty of manipulating libor while working at ubs and citigroup and is serving a 14 year term. a london judge must decide whether to let the appeal go forward. scarlet: fulks wagon plans to take advantage of the weaker euro. in an exclusive interview, the chairman spoke with hans nichols at the frankfurt auto show. >> the euro at the moment is

undervalued. but you know how the world economy goes, some too low, sometimes it is too high, which is why we are trying to manage our production of components to uncouple us from these risks which is why we are investing in the u.s., mexico and china. false leg and brands include porsche and lamborghini. mark: the kentucky county clerk is back at work this monday. she promised not to interfere with issuing gay marriage licenses. but she did question there validity. she was overcome with emotion while discussing her predicament. >> i am no hero. i'm just a person placed here by the grace of god. i just want to serve my neighbors quietly without

violating my conscience. released davis was from jail with strict orders not to enter here with her clerks issuing same-sex marriage licenses. the governor and attorney general of the state and county attorney say the licenses are valid. scarlet: the dallas cowboys are the most illegal sports franchise according to "forms" which put the team's at $4 billion. s" whichding to "forbe put the teams value at $4 billion. the new england patriots and -- dallas owner jerry jones bought the team in 1989 for $140 million. mark: and he was smiling last night when they beat the giants at the last minute. scarlet: on to our top stories -- contract for 140,000 u.s. autoworkers ask -- expire at midnight tonight.

the talks are entering their final stretch. a surprise move, the union chose fiat as the target for negotiating a new labor agreement. if a deal is not reached in time, it could result in a strike. now.est joins me the choice of fiat chrysler, was that a surprise? guest: a bit of a surprise, but it shouldn't have been. it's not generally the weakest the uaw chooses, but where it thinks it will get the most agreement on key issues. this time, it is bridging the gap between two clear wages. it would make it easier to sell the agreement to the other two, whatever is reached here, but i think it was this sense that movement was possible. the fact that it is coming so

late in the game, literally within hours of the deadline, makes the target company a bit less important this time around. scarlet: what makes the union bank they have a common ground with the chrysler? what makes them think they can get this done mark -- get this done? harley: the chair at fiat chrysler has been very vocal about the in critical of two-tiered wages. disruptive on the factory floor and there should be a single rate for people doing this work. he has spoken about a lower senior rate, which the uaw is not particularly keen on. the second dimension is there's good personal chemistry between and theident of the uaw ceo which could prove important in the endgame. the union has been negotiating with all three and it looks like there's movement in tough

negotiations with all three. is carriedt where it over the finish line. he play --ve learned he canceled plans to attend the frankfurt motor show. is that an indication a deal could be near? not necessarily. it is an indication he wants to be here on the ground if there's any snag at the last minute. they can sit down and hammer it out. it could mean a deal is near but it means certainly that he wants to be on top of things on the ground. scarlet: what the likelihood there might the a strike anyway? think it's very unlikely. certainly unlikely there will be a long strike and even unlikely that there will be a short chrysler,ause at fiat they are running at capacity and could not pick up loss production. unlikelyhasize that

and impossible are two very different concepts. about why to us two-tiered wages are still a sticking point. harley: it was wildly unpopular with the uaw. they negotiated in 2007 in what looks like was a moment of crisis and it means entry-level workers earn about $16 an hour. senior workers earn about $28 hour and often, they are side-by-side doing the same job. it creates a bit of resentment on the shop floor and that can be disruptive. you have been following auto labor relations for decades. if there's anse of strike, what would be more effective for the union, a short strike or long strike? i don't think the union thinks of it in those terms. dennis williams says we view a strike as a failure at the

bargaining table. but a short strike happens if there is a long -- a logjam. so neither side is looking toward to a strike this time around. there is another critical issue that hasn't been as visible, , future future product plans and more jobs in the industry. the uaw is very aware of that and a strike does not necessarily help that process. scarlet: thank you very much. mark: much more ahead on the bloomberg market day. fox slightly in the red and we are watching the markets in the last two hours of trading. right now, you see about a .4% decline on all the major indexes. bloomberg market day continues in a moment. ♪

mark: welcome back to bloomberg market day. i'm mark crumpton here with scarlet fu. a check ont's get the stock market. it looks like nine out of 10 industry groups are down with utilities bucking the trend. ramy: we are keeping a look on the markets today and china industrial output came in weaker than expected over the weekend. investors are cautious as we head into the september fed meeting, even though analysts think the possibility of the rate rising is falling. the dow jones is down by about .4%. looking at my bloomberg terminal, let's check the performance of the s&p's 10 sectors. materials and energy stocks are

the biggest laggards and have then the entire day because of the weaker than expected china data. utilities have then in the grain for the entire day. stocks, they are falling today. nucorteel, ak steel and are all down and china is the reason. chinese steel out put rose in august up 1.7%. this is according to data from the national bureau of statistics and despite a government ordered shut down even as the world deals with the growing field glut. u.s. steel down the most high about 4.3%. weekr is falling after the china production output and shares in freeport mack brown are taking a hit, down by about two point -- down by about 2%. it gets 20% more from oil which is down significantly, so we can

see that reaction. chemical stocks feeling the dow down by about 1.25% after a report by the dallas fed on the petrochemical industry as a whole showed an abrupt decline in capacity. wells fargo added to its priority stock list but it is still definitely the bigger weight. what is you know notable is that it is monday and typically there are a lot of m&a deals to talk about. there is a lack of m&a deals. the: even this late in year, but you scan your bloomberg terminal and they are not there. scarlet: if you come inside the bloomberg terminal, we can show you there is $9.7 billion of deals announced and 104 different transactions. with the heels of

the three day weekend. mark: night and day. we are going to continue to follow that and other stories also. but coming up, european union countries are struggling with a flood of refugees have announced plans to fortify their frontiers. scarlet: how ready is europe to take on this crisis? we will discuss. ♪

scarlet: over the weekend, germany temporarily closed its border with russia as many questioned how it plans to follow through on how to take 800,000 refugees. mark: the dean of the fletcher school at test university and former supreme allied commander of nato spoke with the bloomberg intelligence team.

>> first and foremost, you have to do it safely and that means setting. isis that a temporary closure of the german boarder is to facilitate a better that he process. you look at social networks and cell phones -- you cannot do that with 10,000 people a day, so you slow the flow down. i think that is how we do it safely. but this is not a european problem. this is a transatlantic problem, if not a global problem. we are all in this together. our agencies working with german and french agencies to figure out who the potential bad guys are smart that is the biggest concern. >> it is the biggest concern and the answer is yes. there is very strong transatlantic cooperation at all levels looking at intelligence, looking at the biometrics, looking at the high-tech ways we can do this as well as putting people on the ground to

understand who we are dealing with as people come across. tom: the immediacy of your quote in foreign policy magazine on the 100 thousand we would have, that we would take into the united states, we should first and foremost agree to take a significant number of refugees. thus are, the administration has committed to taking 10000 and that is far too few. we know that but i also know in every single article, the nations are overwhelmed with the influx. help thetitutions will u.s. and germany and for that matter, help switzerland? first andhink foremost, the private sector and our network of families in the united states and europe can do a great deal in this space and we are seeing that in germany and we have a long history of it

in the united states. in terms of international institutions, the u.n. high commission for refugees and the various international nongovernmental organizations from the red cross to doctors without borders have a significant role to play. and i would say our militaries have a role to lay. huge manpower and a lot of logistic muscle. see nato, you could stepping in and helping with the humanitarian side. the united states could easily absorb 100 house and refugees. often to help us understand the middle east. with the responsibility of the gulf states and how can they be urged to meet it? guest: there responsibility is huge and everything we have talked about the star is palliative -- that is dealing with symptoms. we need to go to the source.

war and the gulf states have the money, they have the capability, and they can help us tempt down isis, which is a sunni phenomena. they can stand against a baltimore against what iran is doing and their responsibilities are huge. tom: let's switch to the application -- the fletcher school of diplomacy. what is the prescription for what the obama administration iould do on syria? guest: would argue first and foremost that it is an international solution. that means holding out this coalition to include the gulf states. we need to get turkey more engaged with game with ground troops on syrian territory. siden ramp up the bombing of this thing and we need more special forces in the country

and we need to play the long game, which is the diplomatic soft power side as well. scarlet: that was the enough the fletcher school at test and a former allied to premium matter former allied supreme commander of nato. mark: this is a problem of epic proportions. video we have seen of people literally dying on braces -- it is heartbreaking. the criticism is the international community has been slow to move. scarlet: it is good to see germany taking a leading role. we have much more coming up. we will take you up to the market close. ♪ sure, tv has evolved over the years.

it's gotten squarer. brighter. bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. scarlet: you come back to the bloomberg market day. i'm scarlet fu. the pentagon is trying to decide whether to cancel the last of three ships being built by

general dynamics. that catches the ship is already under construction. is ass lyndon b. johnson destroyer being built under a $22 billion contracts. they could run into opposition in congress where the ship holding program enjoys strong support. airbus is going after boeing in its home market. they will build an assembly plant in mobile, alabama. it's only the second factory may have built outside of europe. whether theyceo are building in alabama because of cheaper wages. >> labor costs here are competitive, but if you make a strategic decision, it's one of many factors that have to come into the picture before you make a decision. scarlet: airbus has about 20% of the u.s. market for jets but it wants to get to 50%. a private equity firm has agreed

to buy solera holdings. .5 oh in pay x dollars, including debt, representing a 16% premium. the widow of steve jobs wants to rethink high school. he is starting a $50 million project to create high schools with new approaches to education. she said the current system was created for the system we needed a century ago. those are your top stories. get back to one of our top stories him earlier -- matt miller had a chance to talk to the president and ceo of airbus earlier today. investment was a strategic one, to be strong in the biggest market, which is america. we are looking at overall competitiveness. after the learning curve cost,

we believe this assembly line will be globally as efficient as european ones. we have looked at the pure cost efficiency, we probably would have located this investment in mexico. we wanted to be strongly present in america. matt: you still have an opportunity to invest in mexico. 48 planesing to build a year here. 100are going to be selling or more in the u.s. markets. is there room for expansion? guest: there is room for expansion here. we are not the only ones who have these assembly lines outside of europe. we are in china. we are now in mobile. this is difficult to manage. to around 50 across

at the end of 2017. are manufacturing in many different regions and all u.s. carriers for example by airbus planes. the plane to separate division from the military division? we think of that as a nationalistic thing whereas airbus is a global endeavor. is based ons commercial divisions, so airbus aircraft is the one investing here and we have our defense and space division and a helicopter division. products, butof it is clear that this investment from airbus will enhance the image at this level and for

future difference competitions, clearly mobile will play a role. market not a huge just in the u.s. but globally. you have a lot of orders out of asia and a lot of orders in the americas in north and south america top do you have enough reduction to meet those orders when this final assembly line goes to full production? we have a close to 60% market share, but we need to produce more faster. this assembly line will completely contribute to it. we will reach about 50 aircraft a month by 2007 globally and probably take a decision this year whether we go up again.

matt: where do you have room to produce more? we would continue to strengthen our european side but there is also potential for mobile. any potential of going to mexico or south america? it is a growing are good for you. guest: you are right. but we cannot spread plants around the world. america andcted for north america and on the other countries like mexico, we would other y look at -- other assembly lines. scarlet: coming up, as oil production declines, production .s slowing opec comes out with its monthly report. we will break it down.

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scarlet: welcome back to the bloomberg market day. i'm scarlet fu. check ono get a quick commodities. looks like it is down for metals and energy prices. ramy: that is in large part because of chinese output over the weekend. timeopping for the fifth concernby about 1.3% on

the slowdown will deepen. theman sachs saying that world's oversupply is bigger than first thought. that could pull prices to $20 a barrel. almost 30% from its closing peak in june. copper is also falling after that production i was telling you about, down by about 1.3%. china is the biggest industrial metals consumer and consumes an amazing amount of copper each year. fallingelated to copper , including freeport matt moran. over to the price of gold -- the safe haven is rising right now from earlier, up by about .4%. it is still near a one-month low as investors dumped holdings or exchange traded projects -- exchange traded products.

higher interest rates mean investors would likely pull money out of gold and into a stronger dollar. major commodities slipping right there, all in nature territory. major territory. opec says we are getting closer to a autumn in shale oil production which means eventually, demand must tell up. why is opec so up the mystic? bloss fromh javier london. oil prices heading to $20 -- well -- opec provided a relatively optimistic view of the oil market saying the time of low oil prices is beginning to have an impact not only in

the united states but elsewhere. it has seen very little growth close by, that means in a way you could say a saudi arabia led strategy of lowering the price of oil is starting to make some appropriate advances. scarlet: what is their track record with these monthly market of dates? is it wishful thinking? is it a political statement of any kind? javier:: you could -- the markets are quite conservative and 10 to underestimate oil demand growth and overestimate non-opec production growth. market will they take this analysis is quite conservative and not use a political statement. : i want to get a sense if

there is a level of discord because when we talk about where oil prices are headed, there's so much inconsistency whether it is from the ia or different banks. is there a dispute on where oil will go? javier: you can say there is a dispute but saudi arabia is very happy about what is happening. members like iraq and libya would like to see higher oil prices but in general, opec is in agreement that we will stay with relatively low oil prices. : what is the response from a non-opec producers? javier: i think most producers agree with the opec view.

2015 and 2016.r like thein places united states, we're going to see reduction in brazil and other areas of high cost. in general, the oil industry is in agreement with opec and non-opec production will be very significant. isty: another thing that significant is how the commodities behave. he sees a long winter for commodities and cites the drop in commodities in the russian ruble as deterring them from cutting the ruble. does opec mention currencies in its report? javier: yes. it's one of the things keeping it from falling this year.

still very high because the price of oil has fallen. the ruble has collapsed against the dollar and the currency of those oil-producing countries remain under pressure and it's going to keep non-opec production higher than otherwise. a lot of the challenge opec is facing is coming from companies that have the dollar as the main rnc and those are the u.s. shale producers and those countries are having no benefit from the currency movement. let's get to the top stories this hour. bernie sanders is surging to double digit leads in iowa and new hampshire. a new poll shows he has 10 percentage points ahead of hillary clinton among i would

democrats. edgeermont senator has an in new hampshire as well as the. as for vice president joe biden, he is third in both states even though he is not officially in the race. donald trump is getting out of the beauty pageant business. franchise to the agency. owner afterle buying out nbc universal. they had a messy breakup after his disparaging remarks about mexican immigrants. financial details of the deal were not disclosed. if you own the irs more than $100 million, get your check in the mail go starting next year, the irs will no longer accept checks of that amount or larger. 14 checks in the last taxis were written for that amount or more. those checks must be processed manually and their cost associated with that.

bloombergon the market day -- a new workout goal to help pharmaceutical companies get their products to market. ♪

scarlet: the u.s. justice department is trying to clean up

the world of soccer. during a press conference today, u.s. attorney general, loretta lynch, said it is not over yet. : our investigation remains active and is ongoing and has in fact handed may. as i made clear at our initial announcement, the scope of our investigation is not omitted and we are following the evidence where it leads. i'm grateful for the cooperation and evidence we have received from all quarters. taste upon that cooperation and new evidence, we anticipate pursuing additional charges against individuals and entities. scarlet: earlier this day, olivia sterns and i spoke with hugo miller about when we will get some of those charges and names. hugo: we don't have any sense of timing. the -- michael lauber said we are not even at the halftime break of this football match.

i think what is the biggest question is who would be on the charge sheet next. the question is would sepp bl atter going to be among those charged? loretta lynch was not going to be drawn on that particular point. she said she cannot comment that said i would not comment on his travel plans because for those paying attention, it was the case that people said he is afraid to step foot in the united states for fear of being arrested. olivia: we want to -- do you have any sense of scale, how many further arrest there could be your asset seizures there could be? hugo: arrests, numbers, it could well be 10 or more as was the case when the first 14 were arrested in may.

thatwas interesting is they weighed in on what has happened in terms of assets being seized as well as account being frozen. he talked about real estate being frozen and even apartments in the swiss alps which would lead to conjecture that these were perhaps gifts paid to officials in return for their swiss outut apartments -- swiss alp apartments were among the asset. and of course there is the decision about russia and qatar hosting world cup events. who is leading the organization right now if he is here to step foot in the u.s. and there's another reelection coming up in that you are a?

hugo: if you asked him today coming you --, he would say he's very much in control. now the horse race begins between the head of the european football federation, the korean who heads up again by jockeying to replace him, but he would say no one has charged me with anything and i'm leaving -- i am leaving this organization for at least next four months. fitbits were once relegated to sweaty rest, they are now helping get drugs to pharmacists more quickly. they are hoping biometric data could or effectively determine if a treatment is working. ourmore, let's bring in reporter from bloomberg news he wrote the story. can theyate a reading

provide? a lot of people say when they work out, it doesn't count it as a step. it's only when they are actually walking that it is counted as a step. they are not the only gadgets being used, so there are realmn the medical data that instead of being on your wrist, they can stick to your chest or some of them, anywhere on your body. made for being clinical trials like this where they know what they are going to be looking for, how many steps you are taking and what is your heart rate. there is a distinction to be made between these consumer tracking devices and ones produced for this specific purpose. what kind of information is being gathered and tell us how it rings products to market more

quickly. when you are looking at something like how many steps you are taking during the day, the pharmaceutical companies want to know that because movement is a big heart -- if you have something like lou gehrig's disease that does not have a lot of treatment right now, it's a big part of is a drug working on that particular disease? it is a quality-of-life issue. company canutical find out how is the disease progressing and how is someone based on theug movement that they are doing that hopefully improves with time. scarlet: how widespread is this practice right now? do we have numbers on comedy trials are in process mark guest: i did a search where the trials are run and it looks like trialsre almost 300 using wearables.

i looked for trials using an accelerometer. that is a beefed up the odometer. scarlet: going down the road, if this does work, how does this impact the insurance industry? the hope for the pharmaceutical companies as they can improve the value of their drugs and show quality-of-life is improving and hopefully get insurance companies to agree to pay the prices they charge for those drugs. it has been a constant battle on the pricing of drugs and other payers complaining they are way too high. this the -- if the pharmaceutical companies could pay and show they might have an easier time eating those payments. scarlet: the product we showed was one of the more on a truce of products. most of them are still fairly clunky.

they are not as clunky as they used to be that they are gradually adding better and for the drugmakers, it is a benefit to be as small and unobtrusive as possible so maybe people wearing them won't remember that they are on. and continue to do the activities they usually do and what not tailor their movements for the device. thank you for covering this. still ahead on the bloomberg market day, will it be another sales record for the new iphone? we have the numbers and what is interesting here is that apple did not tell us quite as much as it normally does. ♪

mark: this is "the bloomberg market day perricone day."

apple is set to smash records with the latest iphone. preorders are exceptionally strong. we will break down those numbers. could not signal a run in 2016. scarlet: good afternoon, everyone. martha: it has been an interesting ride today. a check of the screen shows moretors seem to be paying attention to the upcoming federal reserve meeting and whether there will be federal interest rates. the averages are down about .4%. the s&p 500 at 1951. the dow jones industrial average at