bonnie: we're going to take from you washington to london and cover stories out of germany and china in the next hour. here's what we're watching. 255,000, that's how many jobs were added in the u.s. in the month of july, blowing out estimates from economists we surveyed. a promising bump, but will it be enough for the federal reserve to raise rates in september? mark: despite disappointing earnings, allianz's c.f.o. tells bloomberg that there will nobody more cost cuts. we'll bring you his comments on the next phase for one of the world's biggest mutual funds. bonnie: and the state of play from one state with record-setting job growth, delaware governor gives his prediction for labor growth. we're about 30 minutes into the

trading day. this jobs data, let's head straight to the desk. >> i am looking at the markets right now, and although it's early, we are at session highs right now. this is where we stand because of that seller jobs data that did come out at 8:30 a.m. the dow, s&p, and the nasdaq are all up on the order of .7 or more, nearly 1% higher for the nasdaq. the s&p 500, look at this number, actually that is now our new record intraday high off of that jobs data. let's see what's been happening in terms of the pop we saw. let's take a look at an e.s.a. n terms of the last few hours. this came in right after the jobs data, short of 55,000, a jobs reporter for the july, and we saw that coming in, out 2160, past the mark, and we're just up near those record highs.

this is where we stand. in addition to that, we've got some earnings to tell you about as well, as something happening in the cancer drug industry. this has to be with bristol-myers squibb, down 17%. it turns out its lung cancer drug failed in late-stage trials. they were hoping for it to be a first-line cancer drug. this actually accounts for about 17% of bristol-myers squibb's revenue. on the flip side of that, look at this, merck is up. it had a pop of 11%. the reason it's popping is because its drug competes in second-line treatment. we're seeing a little bit of give and take there. let's get on to earnings. priceline.com reported their second-quarter profit, up by more than 5% here. it turns out the number of hotel room booked across its website is growing. it says that the gross travel bookings that it saw jumped 19%, to nearly $18 billion.

the expectation year-on-year was $15 billion or so. also, let's move on over to rack space hosting. this is a cloud computing service. look at this, up nearly 11% here, rallying the most in two years as of yesterday, still continuing that trend. "the wall street journal" is reporting that it's nearing a deal that it could be taken over by a private equity firm. that deal could be valued as much as $4 billion. with jobs data coming and equities all rising higher, let's look at what's happening with bank stocks. right now it is the biggest mover on the s&p 500 in terms of a sector. j.p. morgan up 2%. bank of america is the biggest point lift right now, up 3.6%. wells fargo is also up by 1.3% am let's look at what's happening with the u.s. 10-year yield. of course, the two-year does -- two-year, not 10-year, two-year yield coming up six basis points. his is ureblt most sensitive

treasury when it comes to potential interest rate rises. right now it's about .71%. mark, over to you. mark: we are 19 minutes away from the end of the friday session. this is the stoxx 600 intraday. that's just before the release of the u.s. jobs report. you're up roughly .5%. look at, that up by 1% now. have a look at the industry groups. bear with me. there you go. every industry group is raising today, led by autos, banks, travel and will he sure. we need to rise by another .5% to achieve another weekly gain, which will be the fourth consecutive weekly gain, longest winning stretch in over two months. but we need to rise further. this company is falling big time today, r.b.s., 9% down today. the u.k., government-owned biggest than expected second quarter loss t. set aside money to cover a lawsuit over its 2008 share sale. the chief executive, he's halfway through this five-year

plan to get into a domestic lender. of course, it's been hit by brexit, the bank of england cutting rates today t. may not reach its 2019 goal this year, this company has lost 41% of its value. let's get to italy's biggest publicly traded investment bank. it says fiscal fourth quarter profit rose a bigger than estimated 31%. it set aside less money for bad loans. it proposed a higher dividend as well. media banker shares up by 8.4% today. and allianz, europe's biggest insurer, second-quarter profit almost half. it missed estimates and is facing higher claims from natural casters, charges for the expected sale of its south korea unit. it did confirm its full-year operating profit target. but as we know, european insurers are under pressure. low interest rates are hurting investment returns. shares in allianz off the lows of the today, but still 2.5%

lower today. let's go to our news today. alisa has more from our newsroom. >> donald trump is making a rare admission that he was wrong. he claimed he saw a video of a u.s. cash payment going to iran. trump tweeted this morning, the plane i sue television was a hostage plane in geneva, switzerland, not the plane carrying $400 million in cash iran. trump said wednesday he saw video showing the money being delivered. the campaign said thursday that was incorrect, yet trump repeated the claim hours later at a rally. senior members of angela merkel's party are defending her refugee party as the german chancellor's approval rating takes a dramatic fall. voter support for merkel slumped 12 percentage points to 47% in july. that's the second lowest rating of her third term, which began in 2013, driving the dissatisfaction is a series of terror attacks that has unsettled the public and sparked political opposition.

in south africa, the chief whip of the ruling african national congress says the party has conceded defeat in nelson mandela bay. that's an area of the country's eastern cape province that includes the city of port elizabeth. with 98% of the vote counted, the opposition democratic alliance has nearly 47% of the vote to about 41% for the a.n.c. the a.n.c. is also poised to lose overall control of johannesburg and the capital city of pretoria. the death toll from the bastille day truck attack in nice is now 85. the latest victim died in the hospital. the 56-year-old man, his wife, and their 13-year-old son were killed when a truck driven by a tunisian man barreled down on july 14. islamic state claimed responsibility for that attack. new revelations now about the missing malaysia airline flight 370. ma labor is acknowledging for the first time that one of the pilots had plotted a course on

his home flight simulator to the southern indian ocean. now, that's where the missing jet is believed to have gone down, but an official says the simulator included many destinations and that there's no evidence the plane was deliberately crashed. global news 24 hours a day, powered by more than 2,600 journalists and analyst in more than 120 countries. this is bloomberg. von snow vonnie: thanks. getting back now to jobs day. another month of robust jobs growth, and healthy revisions to prior months. if you're looking for a different read on the labor markets, hiring at the state level may provide some clarity. joining us now is democratic governor jack markell of delaware, who's had record-setting job growth in a state with one of the fastest jobs markets that is seeing fast growth. governor markell, toe what do you attribute this fast job growth in delaware? governor: first of all, good to be with you, and obviously we

will never rest until whoverb wants a job has one. our focus has really been exactly where the employers say it should be, around economic development, around workforce development, making sure that we have people whose skills match their needs. that's a huge focus. we've also, you know, done a lot of regulatory issues, making sure delaware continues to stay affordable, continues to be a place where government is responsive. and there's no one single thing, so we've really focused on a voter of issues. vonnie: you do have some advantages, neighboring states even like pennsylvania don't, taxs to delaware, for example, and some other advantageous things that are attributable to your admission and the government in delaware. what would you say to states that say you're taking jobs away from their states? governor: we really believe that the best economic development is to help the employers who are already here grow. and we've seen some terrific

employment by a knoll local employers over the last few years. of course, when companies are looking to move, we are interested in talking to them. just, for example, in the last year, we have a paper bag manufacturer from ireland that was looking for a place on the east coast. they chose delaware. we have a company from bavaria and germany that makes events, flooring materials. they had never done anything in the united states before they chose dover, delaware, as their home to open a manufacturing plant. so we are open to all jobs, but we really do try to focus on supporting those who are already here. mark: how much ask the jobs boom at risk? we've got this dow chemical, did you point merger. did you point says it's going to cut 10% of its workforce. what impact is that going to have? governor: well, dupont is a company that's been important in delaware for over 200 years now. when i was growing up here in delaware, dupont had more than 20,000 employees. now they have about a quarter of that.

we live in a world of continuing uncertainty. so we're pleased that when dupont and dow merged and they break into three different companies, delaware will retain two of the three headquarters. but our job is to really make the most of tough situations as well. we look forward, and we're already moving to make sure that many of the people who were leaving do you -- leaving dupont have a home here, starting new innovative companies themself. we've got great cooperation with institutions of higher education, with government, and we are all hands on deck to make sure that these folks land well. mark: the delaware business roundtable has this report out, it's a 45-page report. it's titled "delaware growth agenda," and it calls for fundamental changes to the state's strategy for growing the economy, for creating jobs. how important is this report? what changes need to be

implemented? governor: our strategy has really been from we've heard from business leaders. i've probably had 2,000 conversations with them. over and over again, what they say is the most important thing that we can do is to focus on making sure we have employees with the right skills, that we have a good regulatory system in place, that is affordable, that we have strong connections between our institutions of higher education and local employers. so i think we've done on that in that regard. one of their suggestions has to do with essentially spinning out the economic development office, out of state governments, into more of a public-private partnership. i think it's worth looking at. there are other states that have done it. i don't know enough to say whether or not it's what we should do, but it's certainly worth taking a look at. vonnie: governor, what do you say to those saying the loophole is helping delaware, and there are many reasons why companies want to headquarter there? you mentioned ireland.

governor: yeah, so we are very proud of our preeminent place when it comes to corporate governance. our market share in that area continues to be as strong as it's ever been. when companies around the world decide that they want a u.s. incorporation, we encourage them to choose delaware. that being said -- vonnie: it's beneficial to them to allow capacity as well. governor: no, no, that's really not true. i know that that's what, you know, some tend to suggest, but really, the reason they come, there are three reasons. one is our corporate laws, by far the best understood in the country. it's the one that's taught at every law school. we have a very extensive body of corporate law, which makes it much more predictable. we also have the best business court in the country, both the court of chancery, as well as our superior court. year in and year out wided regardly and ranked as the best court system in the country, adding, of course, to the supreme court as well. and finally, we have a division of corporations that's unlike

any government agency you've ever seen. and if you need to make sure you get the papers on a particular incorporation or the bylaws, we get them to you quickly. when it comes to the irish company that located here, eally had nothing to do with those laws. it had to do with having a responsible workforce. we have certain advantages just based on our geography, within a several hour drive, we have access to tens of millions of customers on the east coast. we're right between new york and washington. there are some advantages -- go ahead. mark: governor, really quickly, because we're running out of time. big story on the bloomberg today, trump cratering. new polls say there's deep trouble for the republican nominee. it's the new poll in pennsylvania. hillary clinton is 11 points ahead. trump's top strategists say that's a key area. is trump imploding? governor: it certainly seems like he is. i hope that he is. i hope that people are waking up to, you know, just the fact -- i mean, secretary clinton

would start day one as a commander in chief ready to lead. it's just -- it seems obvious to me that he would not be. so i certainly hope that his campaign is imploding. mark: governor jack markell of delaware, thank you for joining us here on bloomberg television. coming up -- allianz's chief financial officer explaining why he's optimistic about pimco's performance, even during these challenging times. this is bloomberg. ♪

vonnie: you're watching "bloomberg markets." beautiful friday here in london, mark. mark: the sun's out. live from london, i'm mark barton. let's get to allianz.

shares are falling today. second-quarter profit almost halving earlier. europe's biggest insurer facing higher claims from natural disasters and charges to the expected sale of its south korea unit t. wasn't all bad news. e c.f.o. said that aim p.e., since the departure of bill gross, have finally stabilized, and the company won't need additional cost cuts. in an earlier interview, they addresseded the next phase of the bond fund and begun by talking about the new choiment of the new pimco chief executive. >> when he arrives there, i think he can really start to lead pimco also in the next development phase. maybe that is less known. pimco is already by now a very strong hedge fund manager. i think when we would isolate our hedge fund businesses at pimco, we would actually be in the top 10 rank in the global list of hedge fund managers.

so i think we need further to broaden our asset classes. mark: pimco's ratio, there's the profitability, also improved to 62% in the second quarter. right, still ahead -- in the race for the first bitcoin e.t.f., can the winklevoss twins at a time lead? we'll size up the competition, next. this is bloomberg. ♪

mark: live from london and new york, i'm march barton. vonnie: i'm vonnie quinn. you're watching bloomberg markets. just want to give you a quick check of the markets this jobs friday. we saw the nasdaq top its record closing high a few moments ago, up 1%, 5 points.

same for the s&p 500, an intraday high of .7%, now 14 points. the dow jones industrial average is up .8% for a gain of 148 points. the two-year yield, 71 basis points. and that spread widening 85 basis points. time for our e.t.f. friday segment. >> thanks very much. wo filings for bitcoin-related e.t.f.'s have challenged the winklevoss twins. here to discuss why the first one to get approval wins is eric, who covers e.t.f.'s for bloomberg intelligence. happy friday. this is such an interesting topic here. before we get to that, tell me why it's so important to be the first one to get the profit for the e.t.f.'s here. eric: it's huge, especially e.t.f.'s, because of the trading volume f. you're the first one out, people start to trade and you then the volume picks up, zphent bigger fish come in, and then it's just downhill from there.

so i'll give you an example. g.l.d. was the first gold e.t.f. t now has 65% of the assets. and 70% of the trading volume. l.q.d. was the first bond e.t.f., it now has 35% of the assets and also about the same in terms of volume. so it is huge. but even taking a step back, being an e.t.f. wrap is also huge. bitcoin is something a lot of people don't know know thousand get. if you put it in a wrapper, it allows anybody to access it easily, and the e.t.f. structure is very lean, mean, and efficient. it will trade close to the n.a.v., which is a huge problem with current counts. the spreads are wide. an e.t.f. will clean up a lot of what's wrong with some of the funds out there. and that's why they're waiting in line to try to get s.e.c. approval. remy: before we get into the

two new companies, let's start with the original filing with the winklevoss twins coming one that. tell me about that. eric: that was filed three years ago in july. they've made about 11 or 12 different adjustments. they've been tweaking it for years. the latest adjustment, they moved from nyse to bats, which is supposed to be a little more technologically savvy, and they've also changed lawyers. they were using a lawyer who was a legend. she helped put spy through the s.e.c. and hundreds of e.t.f. increase a. i guess after three years, they thought shift course. whether that works, we'll see. it's a shame for them frpbl because bitcoin, while this thing has been -- with the s.e.c., bitcoin is up hundred%. it's a shame, because a good return -- i know, because good returns can help draw traffic. so it's a bummer for them that it's been that well without the e.t.f. approval. remy: does this speak to potential confidence and what they're doing with all the changes, these 11 to 12

changes? eric: i think it's more about the s.e.c. every time they make a change, you can almost see them addressing an s.e.c. concern. remy: let's get to the new companies. tell me about each of zphem how hey compare with each other. eric: bitcoin e.t.f., big ifference. that could be a way that they leapfrog the winklevoss, which would be an utter shame, because the winklevoss had obviously bad luck with the facebook situation, and they were really ahead, three years ago they filed. but they apparently chose not to do insurance. i don't know if that's a game changer for the s.e.c. i'm not sure if it would jack up the expense ratio. all this is unknown. but it is interesting differentiation. the other one is the easter e.t.f. easter is another currency, the second biggest one, up and coming. this one is the -- the prospectus is a little not

complete, so i don't think this would ever an proved before the other two. but it is interesting that somebody thinks it's worth it to put something in registration for another currency. it shows you the optimism the people have with this industry. remy: is there one you think that's favored center what you're hearing? eric: i have to we winklevoss. they probably have relationships with the s.e.c. they've got the money, the backing. but this insurance one is interesting. remy: thanks very much, eric, this super interesting stuff. vonnie: absolutely. that's for sure. once again, we're seeing records today after the better than forecast jobs report. the dow up .7%. we're going to check with the paychex c.e.o. next on markets. this is bloomberg. ♪

vonnie: live from bloomberg headquarters. mark: let's check in with first

word news. alisa parenti has more from our news and. alisa: secretary of state john kerry is headed to turkey sometime this month. relations between the two countries have been strained over the possible extradition of a muslim cleric accused of masterminding the coup attempt. the number of people being hired for permanent positions in the u.k. slumped the most in seven years in july according to report by the recruitment and employment federation, describing the drop as a freefall. a fresh indication of brexit decision will hold back economic growth. yesterday the bank of england said that the outlook had weakened markedly. officials are bracing for the possibility of economic retaliation from china which is angry at south korea for his decision to deploy a u.s. missile shield. the korea international trade association, and inflation -- has identify 26 measures in

place by china that hurt its members. be damaging. could south korean exports have fallen for 19 straight months. will issueeror akito a rare video message on monday after speculation he wants to abdicate. palace officials say his message will convey his thoughts about his official duties. akito is expected to avoid reference to an abdication, s a step not written in imperial law and would require a legal process he cannot request. he is 82 years up. fifa's ethics committee has clear president -- of alleged misconduct. an internal memo -- was leaked to the media and said that infantino took flights from world cup hosts russia and qatar. global news 24 hours a day powered by more than 2600

journalists and analysts in more than 120 countries, i'm alisa parenti. this is bloomberg. report.the u.s. jobs jumping by 225,000 in july for the second straight months. too. climbing, we are joined by someone with firsthand knowledge of the labor markets. of the of paychex, one nation's largest payroll processes that pays one of every 12 american private sector employees. he joins us for an exclusive interview from rochester. thank you. what was your main take away from today. you see this at a granular level all the time. martin: nice to see a strong growth. it has been choppy the last few months. our data on small business job growth has been similar. bit choppy the last few months but overall for the year to date, certainly a stronger job growth and we saw last year and over a base year, which we use in an index, the paychex small

business index, back to 2004. so, pretty steady, good growth at this point. vonnie: any evidence from your turningt employers are contractors into full-time employees, or any of that sort of thing? martin: no, actually i think we are seeing more part-time employment. i think employers, small businesses are being a bit cautious with the election with additional regulatory issues like overtime rules coming into effect in december. we're seeing a bigger rise and part-time employment, and we are seeing it -- part-time uployment alsmost making 10%. that is up for percentage points from three years ago. more part-time and the biggest increase we are seeing an sectors is leisure and hospitality. so, discretionary income being spent on other services like personal care, pet care, that is where the biggest job growth has been. ink: you have done some work

the election, the impact on hiring, the impact on wages. average earnings the last months on months 2.6%. what did your study uncover? martin: with the election coming up, it is interesting for small businesses. if you have over 100 employees, 100-500, you are holding back. our survey showed they are holding back from making additional hiring decisions and raising wages till they see how it election pans out because could have cost impacts. the small you debt as his business, you get under 50 employees, you're enough that impacted by the election because you do not have the flexibility to decide not to hire or not. mark: you also had your july small business survey out this week. what were the highlights of the report? martin: the highlight on the small business index was that a little bits down from june but year to date, it continues to be over last year

and better from that standpoint and that the major growth parts of the u.s. is in the southeast region. ofre seeing the states florida, georgia, north carolina and virginia have the best job growth year-over-year. i think that's helped by housing as well as other services. discretionary services. people have a little bit more money in their hands of lower gas prices. they are spending on vacations and that is where we are seeing the best job growth. vonnie: have you looked forward to the election and thought about what might happen and how you might need to change things depending on who is in the administration? martin: well, i think small businesses are going to be cautious about hiring because both candidates, it is not clear yet which candidate is best for business. and small business in particular. both have not said very clearly they are going to lower tax rates. so, that is a concern. and with more regulation, that

always makes it more difficult for small businesses to expand or even add more employees because you have overtime rules coming up. we have more stringent health care rules. more enforcement of those roles at least based on the current government right now. vonnie: how have the inclusion of higher minimum wages in certain states, how have those conclusions affected what you see at paychex? our data, we on have seen a correlation that those states who have increased the minimum wage rate do have a slower job growth than the states that have not. so, we are watching this closely to see if there are specific cities and states where they have raised the minimum wage or in the process of raising it, that has slow job growth a little bit. the index is about a half a percent lower, the job growth index is a half a percent lower in those states that have increased the minimum wage. mark: you have got a presence in

germany. what is stopping you expanding in the u.k.? you must be tempted with sterling down 10% against the dollar since brexit. martin: mark, we are always looking for ways to expand. we have been in germany for a number of years and have a successful business there payroll and other services for small businesses. we are always looking to grow and acquire possibly other businesses. i hope that opportunity will come up in the u.k. it looks like a great market to be in. mark: how are you feeling the landscape in germany? there's a bit of political up a field -- upheaval with brexit, with the refugee crisis. you have a german election next year. what is the business backdrop, as we approach a crucial political phase in germany? it seemseah, so far, to be pretty consistent for small businesses. alwaysusinesses don't have as much flexibility but our

growth area there has been pretty good and pretty consistent. we're adding new businesses. we have not seen a big increase in small business is going out of business. so, we're feeling pretty good about germany. uslooks pretty consistent to as the election gets closer, maybe that make some difference but we have not seen it at this point. it has been pretty positive. mark: great to see you. thanks for joining us. martin mucci, the paychex chief executive office. r. coming up on bloomberg television, malaysian investment 1mdb at the center of investigations involving corruption. now goldman sachs is being questioned over its involvement. this is bloomberg. ♪

you're watching bloomberg. i'm vonnie quinn. mark: this is your global business report. here's what we're watching today. more bank of scotland posed a big quarterly loss. the future does not look much brighter. legal costs are weighing on the bank. vonnie: bank of america is under fire for what it paid its executives. the chief operating officer receives -- mark: in today's quick take, it is a rough time for gold. fewer players are getting into the swing of it. what would it take for the sport to regain its popularity? e begin with bank earnings. royal bank of scotland posting a larger than expected lost in the second quarter. it's still dealing with problems from the past. rbs says legal costs related to a lawsuit over its 2008 shares sales weighed heavily on the results.

an interview with manus cranny, the cfo said the future will be difficult for u.k. landers. re heading into an environment that is structurally lower. in terms of profitability. for the large u.k. banks. going to make it harder for subscale -- banks. rbs is halfway through a five-year plan to transform itself from a global titan into a domestic lender as the u.k. economy begins to unravel after brexit. mark: europe's biggest insurer missing earnings estimates. second-quarter profit at allianz coming in 50% lower than a year ago. much of that was due to higher claims from natural disasters. the company is holding onto its target for full-year operating profit. insurers are under pressure is low interest rates credit investment returns. -- as low interest rates crimp investment returns. the s.e.c. is interested in the

the5 million aid topaid to chief operating officer p here and more than even brian monahan. they chided the lender for not describing what drove compensation decisions. german factory orders unexpectedly declining in june, as investment goods from within the euro area slumped ahead of britain's referendum. thers fell .4% from may, third straight month demand remained below estimates. vonnie: time now for our bloomberg quick take. a background on issues of interest. when tiger woods' golf game imploded in 2009, the entire sport got stuck in the rough.

the question is -- will the sport not renowned for embracing change adapt quickly enough? the number of u.s. golfers has dropped from tiger propelled peak of 31 million in 2003. the decline has been more severe in japan, one of the sports heartland. offsetting growth -- in china and india. nike, the world's largest maker of sporting goods, says it will stop selling golf equipment. while adidas is also shifting away from the sport. here is the background. the scottish aristocrats are came up with a version of the sport in the 15th century and the american middle class that embraced it from the 1890's had plenty of time and money for the game. that does not fit easily with modern life. once aage age ofe avid week players jumped to 63 years in 204, u14.

arey's 50 year olds unlikely to be able to retire as early as their 65 year old partners. reformers point to another old-fashioned sport -- by developing high energy version such as cricket. thinkg seem to be taking a turn for the better of late. . players last new year than at any time. the problem is retaining them. that calls for changes like shorter courses with less rough. few disagree that golf should be more beginner friendly but critics wonder whether -- arcane rules and traditions may be its own worst enemy. you can read more about golf at niquik on the bloomberg. head to bloomberg.com for more stories. mark: goldman sachs has been

summoned by new york's top banking regulator. she wants the firm to supply more information about 1mdb. of particular interest, information on due diligence, the bank -- for the transfer of proceeds from three bond offerings. joining us now with more on what it could mean for goldman, bloomberg's keri geiger who covers financial crimes. what exactly is new york's top banking regulator asking for? is,: the crux of it goldman underwrote several billion dollars of bonds for the 1mdb fund. and a lot of that money, due to investigations by the department of justice and authorities in other countries, appears to have disappeared. and possibly been basically -- money laundered. what regulators are looking for is what type of records and due diligence and research did

goldman sachs do on how the funds raised from those bonds were basically transmitted to the parties that received them. mark: is there any implication of wrongdoing here by goldman? keri: goldman has, right now is doingcused of doing anything wrong. however, they are part of a very large, sprawling investigation that is looking at several aspects of the 1mdb scandal, of course, their role in it which was the underwriters for how 1mdb basically raised $6 billion. vonnie: there are so many different regulators and agencies involved. how are they coordinating? keri: 10 years ago that would have been a very difficult challenge. but as you probably noticed over the last few years, a lot of the big, global investigations on wall street, libor fixing, foreign-exchange fixing, sanctions, you have multiple countries involved. that haselationship been built up between

prosecutors here and switzerland and the u.k. and other places, as well as the regulators, has improved. would happen,at what with the worst outcome be of were to be found in some way liable? keri: the worst outcome is they did not do proper due diligence on how the money was sister did. there could-- money was distributed. it could be a violation of the bank secrecy act, which is not doing proper due diligence and is required by government for all banks to do. it could also be, if this money the proceeds of these bonds were used for money laundering, there could the applications for the bank as well. this is ongoing. has not been accused of any wrongdoing as of yet. precedents tother we have for this? it's 1mdb, and it's huge. has this ever happened in

relation to other sovereign wealth funds? keri: sovereign wealth funds are opaque investment corporations. as the title implies, they are run by countries. there is very little transparency in how money moves in and out. what was so surprising and shocking about the 1mdb issue is money that was race for infrastructure development in malaysia, power plants in electricity and roads, just disappeared. it appears that a lot of that money was used by a cohort a basically malaysian politicians and citizens to finance things wolf"the willful 0-- of wall street" and buy art. vonnie: a fascinating story. that is keri geiger with the store on goldman summoned over 1mdb obond sales. looking for the perfect way to capture your vacation memories? forget the camera. you can hire hollywood filmmaker

to make a drone video of your trip. ♪

theie: in the hunt for perfect vacation souvenir we have gone from camcorders to selfie sticks. the next big trend -- drone. black tomato has launched a new service called drone the world. a hollywood filmmaker to create tailor-made videos. joining me is tom -- black tomato cofounder. how on earth did the idea for this service come about? >> it is simply an extension of how people are capturing their holiday experiences. holidays are about creating memories and capturing them. we just looked at the technology, how it is evolving and realized we were working with fantastic drone photographers as a whole new dimension and how you can see -- and see the destinations you are

traveling to from a new perspective. vonnie: how does it work that you team up with a hollywood producer? >> what we do as a company is we spend a whole -- building contacts and networks to work with interesting people who can bring destinations to life in a way that we think is a fantastic approach to travel. it was through that that we got to me so wonderful drone photographers i collaborated with them. could they work with us in our clients to really help them blow up their travel experiences and show it in a brilliant piece of film? if i could dohis the style of direction. michael bay-esque. no one harmed. . you have load the swift moving camera shots and explosions tim burton -- you make a gothic video. can you choose the style of filming? >> yes, you can. the whole part of this travel experience is a personal travel experience. yeah. the whole part of the process

is to work with these drone photographers i directors and to understand just how you want your travel experience to be captured. you do default to these guys and girls because they are experts and they understand the destinations very well. to capture in a way that you will look back and marvel at the experience. guidance but their certainly it is fine for people to have input on how they want their expense to be captured. mark: how long is the typical video? how much does it cost to produce ? >> the typical video is 2-3 minutes. it goes down to personal preference. the costs will vary according to the length of time that you want the video to be shot for and how many eidts you want. we have a great iceland experience for three days and three nights, the drone photographer being with you. starts at $5,500 per-person. itn you added in, we think

is affordable but a gige is something that will keep paying back time and time again -- but it gives you something. vonnie: are you responsible for the drone or does it magically appear at your destination? >> you can do both. a number of clients it magically appears with the photographer. these people are experts in their field and know the best drones and how they capture these environments are the best posissible way. amateurish users of drones, they want to understand how to best use it. they may have bought their own drone, but we are bringing in the top guys to show them how to get the most out of this technology. for many trips to come. vonnie: black tomato cofounder. you can read more about the vacation videos at bloomberg -- head to ni pursuitgo on the bloomberg. mark: you say tomato, i say to-mahto. i thought you were irish.

vonnie: it makes much more sense to say tomato now. mark: you have turned. royal bank of scotland posts another loss saying it will probably -- take even longer than expected to reach targets for profitability. its biggestordisk drop in 3.5 years after the world's biggest maker -- trims its profit forecast. we will bring her interviews from top executives of both companies. here is what is happening to european stocks. we are 34 minutes away from the end of the friday session. we've had the boe, we have had today's jobs report. looks like we could see the three week winning run come to an end. this is bloomberg. ♪

vonnie: it is 11:00 a.m. in new york. and 11:00 p.m. in hong kong. mark: 30 minutes left in the trading day in europe today.

you are watching the european close on bloomberg markets. we're going to take you from los angeles to washington and cover stories out of the u.k. in the next hour. here is what we are watching today. sharesank of scotland falling after posting a wider the next beta second quarter los a loss.r posting a post brexit slowdown. vonnie: renewed vigor and the u.s. labor markets. payrolls climb while wage growth promised acceleration. its biggest has drop in three point five years. the company trim sales on profit sales for the year