from bloomberg world headquarters in new york, we are covering stories from pittsburgh and washington to dublin, or lynn, and aleppo. regaining bonds composure after uncertainty over -- bayer will be buying monsanto, creating one of the world's biggest agrochemical firms. it ends a month-long courtship. google self driving cars go live in pittsburgh, when it is like to ride in one. we are nearing the halfway point of the u.s. trading day so we need to check in with julie hyman. the drags here are plentiful. julie: the drags are plentiful

and yet the resiliency is relatively strong. we have got stabilization today after those big swings we have seen over the past couple of sessions of at least 1% in the s&p. now we are not seeing moves that are quite as large although the nasdaq is rising to the highs of the day, up three quarters of 1%. we are seeing some of that volatility come out of the .arket in terms of drags, volatility is here to stay when it comes to oil prices. we have weekly oil inventories creating a spike in oil and then a drop. it is down 1.8% and that is because on the one hand there was an unanticipated drawdown in oil inventories on the weekly basis. that was a surprise. there was a huge drawdown last week because of hermine and there was expected to be a bounce back. there was a huge increase in distillate inventory. --t was what is pushing

putting pressure on oil and oil is down as a result. thehe flipside, one of biggest supports for the market today is apple which is contributing more than two and a half points to the gain in the s&p 500, up 4.3%. of the an extension gains we saw yesterday on comments from t-mobile and sprint that they were seen big preorders for the iphone seven. have seen the speed through to the suppliers. it started with dialogue semiconductors in germany. now going through to the u.s. supplies -- suppliers like broadcom. the technology group is the biggest contributor and a beta this the best performer within the s&p. scarlet: we will check in later on. let's get a check on bloomberg first word had lines.

mark crumpton has more. mark: a new bloomberg politics poll underscores how the presidential race has tightened. donald trump has pulled again -- i had in one of the battle grand states, ohio. trump polls well in ohio among men, independence, and union households. one of clinton's problems, the nafta trade bill that passed when her husband was president. 58% say those trade agreements hurt jobs and exports. trump will be in new york on thursday to deliver a speech at the economic club at 11:15 local time. bloomberg will have live coverage of the question and answer session immediately after the speech. hillary clinton will be meeting with foreign leaders during the u.n. general assembly. on her agenda or chats with the

egyptian prime minister. trumpies to cast donald as unprepared and unfit to serve as commander in chief. a federal judge once the prosecution to provide a list of witnesses as jury screenings start and the charleston church trial. they want to determine if potential jurors know any witnesses. dylan roof is caused just charged with a hate crime for the slayings of nine black churchgoers. the federal trial is suspected to start in november. doctors treating shimon perez for a stroke says his condition has improved slightly. old. is 93 years global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i am mark crumpton.

this is bloomberg. intoet: for more insight that bloomberg politics poll that shows donald trump is ahead in ohio we want to bring in megan murphy. megan, a five point lead for donald trump. that a significant meaningful lead given how close the race has been? megan: it is. and ohio is such a crucial battleground state because it is seen as a microcosm of the electorate overall. you mentioned the nafta statistic and how many ohioans think it cost them jobs. what is really interesting is how donald trump has managed to double down on his lead among the white working-class voters. he has a 43 point gap among white men with no college education, a 23 point gap with white women with a lack of a college education.

those are the mirror opposite of the advantages hillary clinton holds among minority voters. scarlet: it is pretty entrenched , these leads of demographic groups and we are seeing trade emerged as a theme breaking through in ohio. isn't breaking through in other states? megan: this is in the context of her having one of the worst weeks and weekends. scarlet: kind of a referendum. megan: in particular there is the health concerns but her using of the term basket of deplorable's does not play well among this group. ohio and theat concerns expressed in areas of this country with extreme anxiety, that filters to michigan, wisconsin, pennsylvania, and even the near

west states. that is going to be difficult for her to get back on the message after that gaffe with the comment. scarlet: do swing voters or first-time voters matter more? megan: are there actually any event -- any swing voters left? that is one factor. when you talk about first-time voters, when you look at gary johnson the libertarian amongate, he pulls a 22% voters under the age of 35 in ohio. he is taking away supporters from her and he is taking away the kind of democrats that may have gone for bernie sanders. on herll be a big effect and that also shows the enthusiasm issue. trends more to a 2004 model, i could help donald trump in areas where we had more of a republican turnout. scarlet: that is a good point

that third-party candidates are taken away from hillary clinton. what about jill stein? megan: she is definitely going to play a factor. in a four party race donald trump's gap stays the same. how they are going to play out and what voters they attract, whether they will take the bernie cohorts. frankly we are in an election were so many voters are just tuning in after labor day and say, i do not like either of these choices and maybe i will go for a third party as a vote for my conscience. there is no question the polls are tightening in battleground states and international polling. what will be interesting to see is if you move beyond the rust belt states and start to look at florida and virginia and what themes are coming through, how these candidates are going to get their message home is where we are going to see the election play out. scarlet: about ohio, i wonder to

what extent john kasich plays. he beat donald trump in the republican primary in march. megan: he has not been able to take what he used as a backlash against trump and carry that over. 38% of people in that poll said they had a relative or someone close who lost a job due to a layoff and that message rings strong. where he really has to carry it he is definitely getting people on board. scarlet: it comes back to the economy, stupid. megan: it always does. scarlet: megan murphy joining us today. tomorrow, donald trump police begin at the economic club of time.rk at 11:15 local meantime, the fourth time is a charm for bayer.

it clinches a deal for monsanto and we will hear from the ceos of each company. this is bloomberg. ♪

scarlet: this is bloomberg markets. i am scarlet fu. it is time for the bloomberg business flash, a look at some of the bigness -- biggest business stories in the news. the private equity firms plan to ohiohree power plants in

and indiana and the deal is expected to close in the first quarter of 2017. aep plans to net about 2.2 billion dollars. in a report from a kinsey shows that job cuts alone are not going to be enough. mckinsey says full businesses must go. the report predicts 325 local full-service banks will survive and the others will have to to be allr desired things to all customers to they can eliminate costs. bayer has reached an agreement to buy monsanto. the deal is valued at 66 billion dollars. antitrustffering a fee of $2 billion. if it goes through it will be the biggest acquisition ever of a german company. that is your business flash update. bloomberg's managing editor for global m&a jeff mccracken sat

bayerith the owners of and monsanto, asking them why agriculture has seen so much consolidation. >> one thing that is most important to see is what is needed in order to support armors in addressing an ever increasing demand for more output and more yield. the only way that can be done is with better innovative solutions that have to be developed. we share a vision, you and i talked about it. the board has been working on it for years, that the combination of both companies with what we bring to the table with heritage and chemistry, and what monsanto brings to the table with heritage and seeds and genomics, would be a great combination to help address the challenges farmers have. >> farmers are trying to do more

with less. to do this in an ever more environmentally sustainable fashion and you can only address it with that are solutions that are not available today but that we are working on for tomorrow. >> we have been writing about this since may and you guys were talking even before. hugh has no one to blame but himself because a year before you were talking about trying to do a deal with syngenta. do you feel bad that you were bought as opposed to buying another company? >> nodded all. the strategy has been consistent throughout and it is an industry that has gone through consolidation. the way i look at this, we are going to unlock additional yield for growth. they are starving for innovation and looking for answers. the combination of the two companies unlocks that potential going forward.

i think this is a great deal. >> do you feel like the regulators are going to make life difficult? it seems like the market is a little skeptical. shares of monsanto were trading $20 below the 20 -- the offer. people are worried the eu regulators will block the deal. you are confident? assume, regulatory challenges have been discussed. intensively as part of our negotiations but also beyond. we have both had very large teams of our own people, antitrust counsel looking at it. we looked at it jointly in order to assess how big the regulatory challenges might be. in a way we are blessed because this combination is one that is highly complementary and has for the size of this transaction, a very low overlap. that is what our assessment has yielded.

forward toing engaging with the regulatory agencies in all countries. we are preparing ourselves already now in order to a dress regulatory concerns and actually request so that we can serve up what is needed in order to get our transaction, and the combination of our business to the finish line. scarlet: that was hugh grant and warner baughman speaking with jeff mccracken. cars --driverless uber's driverless cars in pittsburgh, we will tell you all about it. ♪

scarlet: you are watching "bloomberg markets." driverless cars are hitting the road in pittsburgh. cooper is rolling out its first

self driving cars to customers in the city. max chaffin has been following this story and he went to pittsburgh to get an early look. x: we are here in pittsburgh selfooper -- uber's driving car launch. there is a pinwheel thing on top , that is the lidar sensor that is mapping the road and telling the car where to go. there are dozens of these sensors, 20 cameras, seven lasers, radar. we have these lovely safety drivers joining us but the idea is to get people to understand what it is like without somebody behind the wheel. there in the uber, and i'm going to press this green button that says let's ride. there is a weird colorful

psychedelic map that is showing all of the stuff going on around us. hoveringr is sort of with his hands over the wheel but not touching the wheel or just barely touching the wheel. here we are, stopping at a stop sign. there is cars going by. you can see them on the screen. i am going to take the driver seat and basically experience what it is like to be a safety driver. eerie. gary -- it feels like the car has a mind of its own. you are fighting the tendency to grab the wheel. i have had my hand grazing the wheel and ready to go but otherwise i have done literally nothing. i am just sitting here and join the ride. scarlet: now we want to bring in max to tell us what it was like

behind the wheel of uber's self driving car. how fast you to go? max: i am not sure. i was focused on the fact the steering wheel was turning itself. maybe 20 miles per hour. traffic in the city and i did not go far but it was strange. totally trippy. both howyou realize crazy this is going to be hard because it is easy to get distracted in that position. within 10 minutes i was already kind of wanting to send a text message. scarlet: that is sobering. did you have free reign of the city? were you able to go everywhere? max: they are not saying where the limits are. you have to map all of this out very carefully. i think it is three or four neighborhoods, basically downtown and a couple of other places. your trip has to begin and end

within that mapped area. scarlet: no freeways or anything like that. max: i do not believe there are, although they should be easier in theory. scarlet: you do not have to do much. max: no pedestrians, no bicycles, no dogs jumping out which are more difficult things. scarlet: where their people crossing in front of you and doing a double take? out,we had someone yell what is that thing on your roof? according to safety drivers there are people all the time. it is a funny hat on a car. uber is partnering with although -- with volvo. the lidar sensor is a little bit lower profile and in general i think they look more like regular cars. scarlet: they do not stick out quite as much. max: they stick out that they are elegant. scarlet: tell us about the

waivers you had to sign. max: none. i had a one minute briefing. you are in charge of our safety so you have to be driving in your mind. the way the safety driver works, you have to be mentally driving so you have to think, i am pressing the accelerator even though the computer is doing it. it is really easy to lose focus just because it gets so comfortable very quickly. scarlet: did you grab the wheel out of instinct at any point? max: i was pressing as hard as i could with my left foot as we were breaking. i managed to restrain myself. scarlet: you were trained in order to sit in that driver seat. max: a short briefing. uber has engineers and pittsburgh. there is something like 500 people overall, a group of

safety drivers who are specially trained and are professionals. the idea is if something crazy happened, if the computer had a bug or if a cow ran into the rug -- into the road or something unexpected, there is a red button that you can press, that the safety driver can press it turns the computer off. or if you grab the wheel or touch the pedal it will give control of the car back. scarlet: it is like cruise control when you can reclaim control. is there any red button for the passenger? max: no. the passenger does have an ipad because you see what the computer is seeing and it gives you a sense of how this works. it is this crazy mishmash of sensors that are creating the world's most detailed map in real-time. scarlet: do we know how many self driving cars are on the road? max: they have been a little cagey. i was there monday and i counted

14. i believe there are at least a few more and i would not be surprised if there are also a few self driving cars on the roads quietly in san francisco and palo alto, where uber also has self driving operations. scarlet: you can check out chafkin max driving the uber taxi. talking of desktop into the man who helped bring google to ireland. this is bloomberg. ♪

scarlet: live from bloomberg world headquarters in new york, i'm scarlet who. -- scarlet fu. new poll indicates

voters are concerned about hillary clinton's help. -- health. 22% say that her health is above average. now, 41% say it is below average or poor and 50% say clinton has given false information about her health. appeared to stumble leaving a 9/11 event here in new york city. trumppowell calls donald "a national disgrace" and a leaked e-mail. on e-mails were posted dcleaks.com. ell says the e-mails are authentic and the hackers have a lot more.

russia warns that u.s. backed rebels in syria are avoiding the cease-fire. artillery shells were fired 23 times mostly from areas controlled by rebel forces. syrian troops have not returned fire. the national football league is beginning to efforts to combat concussions. that is according to "the washington post." the plan is said to include money for better protective gear as well as medical research into the effect of head injuries. the leak remains under intense scrutiny over its handling of head injuries suffered by players. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. scarlet: if you look at u.s. stocks, it been hard for the u.s. market to gain any traction whether it is big days of gains or losses.

you have an apple rally. that is helping to support the big indexes. oil prices are back in declining mode. let's go to abigail doolittle live at the nasdaq with more on the tech sector. ,bigail: another bullish day reversing yesterday's loss. one of the big winners for the nasdaq today is netflix. coming on newser of a partnership between netflix and global media or liberty global. yetflix will be offered on pa per tv boxes. investors are little bit more focused on the subscriber numbers, whether or not they can reinvigorate growth of their pre. we have a bullish nugget for

netflix, but overall, lots of uncertainty this year. scarlet: a lot of ups and downs for netflix this year. one of the stocks that is lower in 2016. what does the church are you? -- chart show you? abigail: we see these huge signs of uncertainty. most recently yesterday on a -- itade at the cory appears to be stuck in the range, perhaps suggesting we will see more downside ahead for netflix. i mentioned apple earlier. apple gained yesterday even as the indexes declined. apple held the indexes from declining further. advancingre seeing it

-- biggest apple on its three-day gain since last year. this time without saying the suppliership are better than expected. we have some comments around the 7 and apple watch -- all of this is buying action over the last pew days. -- last fewtion days. last few days,n buyers becoming coupled with the idea that the iphone 7 will bring apple back to topline growth. we will stay with apple. the european commission has

accused island of illegally --shing apple's tax bill both say they plan to appeal the decision in court. island says it is one of the ireland says. martin shanahan joins us. in what specific ways is the io competition commission decision u competition commission decision flawed? martin: the commission is trying to retroactively say it's view -- the commission's decision said on the one hand that ireland should now collect its taxes. elsewhere, maybe

in other european countries and maybe do in the u.s. scarlet: it does call into question the general tax rate at 12.5%. martin: that is a really important point. the commission is not calling into question islands 12.5% -- 12.5%. -- ireland's the regime is not been called into question. this is a historic issue. we think it is extremely to major nonetheless the commission is an overreaching or interfering with a sovereign issue for ireland, our ability to set our own tax rates. scarlet: this is one company. the competition commissioner has made tax avoidance a central issue. something to really focus on. you have apple in ireland. starbucks in the netherlands,

amazon in luxembourg -- everyone is coming under scrutiny now. that theyect to say are unfairly targeting american companies? we fundamentally disagree with the commission as it relates to island. ireland. -- as it relates to ireland. we are one of the first countries in the world to introduce country by country reporting. we have made changes to our taxes them over the years to reflect an evolving economy. what we cannot have is retroactive changes to the tax rolls. what the legislation says to be applied -- they expect the

legislation to be applied. we have a set of circumstances that could not happen today. rules had changed. we intrude country by country reporting. for participant in the profit shifting initiative -- full participant in the profit shifting initiative. ireland's finance ministry has made the point that taxes are a fundamental matter of sovereignty. do you think when we talk about other countries, should other eu countries follow ireland's lead and perhaps cut their own corporate tax rate? martin: that is a matter for those other countries. we've had a transparent, consistent and competitive taxation regime and we are unapologetic about that. sincee the same tax rate

2003. we plan to maintain it. it's for other countries to make a decision. as one of the most globalized economies in the world, an economy that is a pro-business environment. let's argue that other countries to start cutting their corporate tax rate, what else can i went to do to attract investment to its shores? martin: it's worth saying that ireland doesn't have the lowest tax rate in the world. it's one element of our attractive proposition. that is built around our investment in tech and talent. we have a pro-business environment. it is easy to set up a company in ireland at scale up a company in ireland. those companies reinvest consistently to have major substance.

tech hub. to say it is all about taxes is wrong. companieshy the u.s. set up in ireland -- martin: u.s. companies are internationalizing. we have some significant european companies as well. and a significant increase in asian companies coming to ireland. ireland is a great location for internationalization. presume further action will be taken against other american companies that pay corporate taxes in ireland? martin: at the moment, there is no other investigation going on. n asin : island could be

a beneficiary of the brexit vote . n atin: we've see heightened level of activity since the referendum. -- offices across the globe particularly financial services companies at the moment are looking at access to the european market going forward. the key issue at the moment is it is uncertain, we don't know when to u.k. may leave the eu. we don't know how long this negotiations are going to take. tell ouro be able to shareholders and clients that we want certain access to the european market. ireland is definitely in the frame. withet: you are meeting

potential clients. steps are they taking now to start moving to ireland even without waiting for the timeline on article 50 being invoked? it varies depending on the sector and the type of company. potentiallot of investors that have done a lot of due diligence. the are companies that have yet to do all of their due diligence. they are trying to amassed information on different locations. ireland aresland -- in the frame. we are second on the list after the u.k. at the moment. the commonat we have law system and all the other attributes i mentioned. scarlet: thank you for joining us today. coming up, we take a look at what is driving the world of private aviation.

this is bloomberg. ♪

vonnie: you are watching bloomberg. mark: this is your global business report. vonnie: denmark's central bank says it economy is most at risk on brexit. the eu will come out just fine. the next major tax target could be sweden's ikea. they're battling allegations they dodged more than a billion euros in taxes. brazil is in its biggest economic slump in a century.

we begin in copenhagen where the head of denmark's central bank says it is the u.k. that should be worrying about brexit, not the rest of the european union. >> we should take into account that although britain is a very important country, the impact on the european economy is limited. come tothe impact will the british economy. british labor market is showing resilience. the u.k. on up limit rate stayed at 4.9%. thus unemployment rate stayed at 4.9%. the bank of england is forecasting unemployment to rise gradually, hitting 6.5% in two years. the same european regulators that give apple the $40.6 billion tax bill are now looking at sweden's ikea.

the competition commissioner tells bloomberg that officials are examining claims the world's furniture maker uses unfair loopholes to avoid taxes. the complaint came from green party competition. so far, no comment from ikea. vonnie: time for our bloomberg quick takes. brazil's list of problems is the economy in its biggest slump in a century and political gridlock. president dilma rousseff was removed from office. temer is already off to a rocky start. bloomberg quick takes looks at what went wrong in brazil. in recent years, brazil has gone through a roller coaster of turmoil between economic woes,

corruption scandals commit presidential impeachment, brazil is in a deep crisis. any president has that into the spotlight and promised austerity measures. will the slow unraveling of the world's fifth most populous country come to a stop ? , president dilma rousseff was found guilty of financing government spending, temer to serve out her term until 2018. in order to understand the situation now, we have to understand how it got here. that cannot be done without silva --bout the wildly popular and became a symbol of results economic economic brazil's ascent.

president dilma rousseff became the first woman to be elected president in 2010. global prices for raw materials began dropping and the corruption scandal put a severe strain on results economy. the economy shrank 3.8% in 2015. the most in a quarter-century. of --ith dolores president dilma rousseff's write, temer is trying to investigation revealed a deeply corrupt organization and political system. kickbacksollusion and implicating petrobras executives and brazilian officials.

brazil's future is uncertain right now. iner faces a tough task stitching the country back together again. vonnie: that is your global business report. head to bloomberg.com for more stories. ♪

in bloomberg pursuits today, most of us associate air travel with long lines, delays and a lot of discomfort, unless you are planning to take to the sky in a private jet. delta private jets chief operating officer david sneed joins us now. there is tremendous growth in the private aviation industry. what do you credit that to? david: people are spending more money. offer convenience. scarlet: we are talking about

the very wealthy doing better. do you see a link to the perception that flying commercial is more of a drag, it's increasingly uncomfortable? david: i think the convenience factor want to sample the private jet's capability is what drives that. scarlet: do you still have to go through security? david: there is no security. within five minutes, you are on the jet, the door closes and we headed to the runway. that seems unbelievable given the contrast with how it is to fly commercial. do you anticipate some gatekeeping possibilities there in terms of faa or homeland security coming in and saying you have to add some kind of check there? david: i don't see anything on

the near horizon. scarlet: how does it work? you are a subsidiary of delta airlines. david: that is the real difference. we have 70 aircraft today, probably in the air, somewhere around 80 aircraft. of aave a plethora network. so, our mainear or focus is going to be integrating that into the delta global travel network. you pay roughly $100,000 for a youand we guarantee andlability for the jets you pick the size of the jet and the hourly rate. scarlet: you've started a partnership with porsche. david: we announced at this

morning. we are trying to build a seamless travel solution between the airline and the private aviation company we own and it will end up being the porsche service is a surprise and delight. we are looking for passengers that have tight connections. we will expand on that partnership and actually this will become woman reservist. --you fly a private aircraft this will be a private service. -- this will be a complement three service. complementary service. it's 50-50 high net worth individuals and corporations. individuals that just fly private always, we supplement large corporations' flight

departments. scarlet: favorite destination to fly? david: rome. i'm a pilot at delta also. that is one of my favorite routes. much,t: thank you so david sneed. on luxury travel, had to bloomberg pursuits. pursuits. bloomberg ♪

scarlet: it is 1:00 p.m. in new york and 1:00 a.m. in hong kong. welcome to "bloomberg markets."

we are covering stories from mexico city to detroit to berlin and men marred this hour. stocks and bonds are stable. yanmar.nd how this went on for so long and what he continues to fight for so hard. the salesforce ceo is a vocal of those against the lgbt community. we are halfway through the u.s. trading day. let's check in with julie hyman for the latest. to string been able

together two straight days of gains or losses this week. julie: the moves are more muted today. that stabilization that we are finally seeing after that three-day roller coaster jolt for the markets here. the nasdaq is up .6%. , their and s&p 500 ar moves are much smaller today. a lot of strategists are saying the calm may be brief. the gains we are seeing today are also relatively broad-based. a lot of different groups participating. retail is also participating in today's session. there are a couple of notable movers. macy's is up by nearly 3% after it was upgraded to buy over at citigroup. is managing the challenges well.

coach was cut to underweight at morgan stanley. question about whether turnaround at the company is sustainable. tiffany up for the third straight day. there was a report that tiffany had named a new cfo. that has boosted the shares here. scarlet: oil has been down for three out of the last war sessions. -- three at out of the last four sessions. julie: steel rebar is something we've been watching. streak likee a this, you pay attention, it is down for the seventh straight session. this is the old rebar in china. -- steel rebar in china.

we are not seeing as much production. u.s. cameaker in the out with a forecast that was below estimates saying that remain anditions challenge. scarlet: let's get a check on the first word news this afternoon. is throughry clinton one of the roughest a stretches of her presidential campaign. a survey has donald trump leading secretary clinton in a key battleground state, ohio. the margin, 48% to 43% among likely voters in a two-way race. there,n's problems

the nafta trade agreement. donald trump released a health summary during a taping of the dr. oz show. he sure the result of an examination conducted last week by his physician. he discussed his personal health and his health care policy. the hour-long interview airs tomorrow. orlando tourism may be stopping -- softening. the number of hotel rooms sold dropped 2% from the previous year. higher prices at this have lowered attendance at some theme parks. have lowered attendance at some theme parks. myanmar's leader met with president obama at the white house. president george h.w. bush suspended trade in 1989 citing

yanmar's refusal to recognize workers rights. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. scarlet: hank greenberg finally gets his day in court. greenberg and his former cfo were accused of rigging the books with two sham transactions to hide aig's true financial conditions. david westin spoke with mr. greenberg and his lawyer, david the voice. question, how this dispute could have gone on for so long and why he continued to fight so hard. hank: i did nothing improper.

i just cannot accept that. david: is your goal of vindication? you want, butwhat you don't go admitting something you haven't done. david: let's talk more broadly about the issue of where the line is. this is a big issue for the country right now. when do we hold senior management accountable? hank: it depends on who is drawing the line. in some states, they understand that and they reconcile it. in some states, they don't. secret, aink it's any lot of this was political. is that the way you should be drawing the line? david: it was originally brought by eliot spitzer. this point.one at

we have had a two attorney general's since then. >> there has been a tendency to -- theyusinesses described hank as rich and powerful. i've never thought it was illegal to be rich or powerful. the inclination to go after they aremply because rich or successful in business is a very dangerous approach. -- inssmen should not be the financial crisis, a lot of responsibleere

stayed out. they engaged in risky transactions that brought down aig stock. practice, including by hank himself. what's important is to distinguish between executives who have knowledge or participate in wrongdoing and executives who at the scene of because no ceo can ensure that he is taking care of what everyone in the company is doing. it is knowledge and participation.

hank: it is very disheartening when your own government destroys the biggest insurance company in history, for what purpose? please to employ 100,000 people. -- we used to employ 100,000 people. now, it's close to 60,000. is that the right role of government? scarlet: greenberg weighed in on the changes in u.s. politics and industry. starting with the adaptability in the insurance sector. you have to have the right team and right strategies. technology is having an impact on the insurance industry. we have to be on the leading edge of that. you have to be global, you have to understand the global markets. you have to have relationships. you do not do that overnight. it takes years to do that. we had that team. would current

regulation permit you to build that large orbital -- large global organization? hank: you could not do it in and that in a united states overseas headquarters. at place, youget will do it another. i will not ask you who you will vote for or support. what are the attributes we should be looking for as an american people? the: we need to understand country and what is wrong, what has to be done to fix it. we have to create jobs, more jobs. we cannot punish his for going to college and coming up with $300,000 and that. -- punish kids for going to college.

are coming up with $300,000 in debt. david: i agree with everything hank said. we need a leader with experience in domestic politics and internationally. is -- whosebody who ability you can count on. we may not always agree with them. but we know where they stand. we need a president that will help unite the country for all americans, all working together. we need somebody who has that vision and can help us expedited. hank: we are a leader internationally.

when you create a vacuum, it is filled quickly. we lost that role, we have to get it back. scarlet: that was hank greenberg and his lawyer outside the manhattan courthouse yesterday speaking with david westin. mark fields is under pressure, the company's stock failing to respond to a strategy. we will dig into the numbers. this is bloomberg. ♪

scarlet: this is "bloomberg markets." ford shares extending the recent losses and now trading at a pipe week low. the company is holding its

investor meeting. -- a five-week low. shares have fallen 29% since mark fields became ceo. stock. that drop in the red line is when alan mulally began as ceo which was through the recession until 2014. the green line marks when mark fields took over. you can see the steady decline in the share price since then. fields was a dominant presence ulally's rain. -- reign. you can see the rebound enforce net income. net income. ford has been upfront with its concerns. total u.s. sales have been climbing for the past decade and peaked.act have

the biggest concern about those auto sales -- august sales were light truck sales. --y had created this big gap trucks the white line, cars the orange line. sales of the f series pickup truck fell 6% in august from one year ago. outside of lagging sales, ford is spending on new businesses while fixing weaknesses in luxury autos and emerging markets. moves in the short-term have done little to appease investors. fordo shares trail g.m. -- shares trail g.m.. believesfields expenses will pay off. he is very confident ford is

going to deliver. englishead, teaching through apps and social media. a former google product manager figures out an easy way to help mandarin speakers learn the queen's language. this is bloomberg. ♪

>> prosperity can that does all -- lift us all. the population problem, the data show that prosperous countries hit replacement rates or slightly below when people don't think of children as being their social security. -- as countries become

more prosperous, the fertility rate has gone down significantly. scarlet: that was a sneak peek of a new six part series, big problems, big thinkers. it will feature commentaries on the biggest threats to the future of humanity. catch the premiere that starts tonight at 8:00 p.m. eastern time. a former google employee complained about learning english -- learning english through gaming. joins choral master carol massarson -- and cory johnson.

have selina wang with us. explain what happens when you put together a google employee and a masseuse -- studied electrical engineering, went to princeton to get a phd in computer science and than went to the valley and worked for google as a product manager there. he went to a sort of in china friends realized his were spending such a large amount of their paycheck on english classes. he would talk to them and it would seem like they had made very little progress. he had been thinking about this idea for a long time. how do i create something that will solve this problem where people are paying so much for something and getting so little in return? he was introduced to the former chief scientist of amazon and he had this goto place in shanghai at it but massage place.

-- a foot massage place. my job so much come i want to get out of this job, i plan to buy this lo book and read it. he noticed he was carrying a knockoff android smartphone and if i made an kid app and push you content, would you pay ¥100 a month for this? and he said of course, definitely. cory: is the notion that the market is endless for this in china? must-have for atting into college -- teaching expert in china said parents are easily spending thousands of yuan per hour to get the best tutors possible.

there are tens of thousands of schools that have popped up all over china to cater to this market. arol: there are chinese company's that have their own applications to do this. how will this upstart compete against them? selina: his chief scientist and cto came from the likes of alibaba and google, focusing on machine learning ai. you are totally correct, all the tech giants in china have either invested in companies or have crated their own companies within to do online learning. they are not making the same social community and using the same type of artificial intelligence technology this company is using. a lot of them are just taking what is already happening in

classrooms and moving it to the web, which is not as scalable type of business. you can skype with a teacher in intoor an expert in china your home. which is not very different from what is occurring off-line. cory: how important our recent developments in artificial intelligence? that is the backbone of this company. toorder to have an app actually teach and adapt to a student, they have to be able to recognize all the granularity. it's not just and my saying the word right? it's the fluency, the grammar. they have this huge data set of people talking. because they have so much data to power that machine, they are able to predict 97% accuracy how someone is going to answer a

question before the even answer it just based on all the data and knowledge they have. because they are able to predict as a speaker, they are able to continually tailor the course to fit the person using it. carol: what kind of backing do they have? what investors are getting behind it? ina: they have backed the light sick -- the likes of mi -- she just met the founder and she was so impressed with the content. y: how much of it is a chinese company and how much is a silicon valley company? company.t is a chinese

they're working on other languages. other investors in the states are saying can you please help me with mandarin? .arol: selina wang scarlet fu, back to you. scarlet: you can catch more -- on bloomberg radio and television tomorrow, donald trump will be speaking at the economic club of new york. live.l be taking his q&a this is bloomberg. ♪

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from bloomberg world headquarters in new york,

i am the scarlet fu. this is "bloomberg markets." mark crumpton has more from our newsroom. mark: donald trump heads to flint, michigan, today, but one resident is less than enthusiastic. mayor karen weaver, a democrat, says the trump campaign did not consult her before making plans for the visit. she said in a statement that "flint is focused on fixing the problems of lead contamination in our drinking water, not photo ups." hillary clinton will be back on the campaign trail after sitting out a few days for pneumonia. president obama campaign for her in philadelphia. bill clinton says his wife is "feeling great." russians say that rebels of the violated a cease-fire in syria. wants the weeklong truce

extended by 48 hours. tropical storm julia is bringing heavy rain to the northeast coast of florida and southeastern georgia. the national hurricane center of miami says some areas could get up to six inches of rain through friday. outages have been reported along the georgia coastline. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. scarlet: it is now time for "walk the talk," where we look at the pressure points of social outpacing where it is ability to act. sporting events out of north carolina during the 20 16th-2017 school year, after controversial house bill 2 limits civil rights

protections for lgbt individuals. we spoke to the duke university head coach and he shared his thoughts. mike: embarrassing for our state and it has cost our state immense money and jobs. but even more so, it has hurt our image. scarlet: coach k not alone. the salesforce ceo has also been very vocal in his opposition to the law. he spoke exclusively with a brownstone on what his company is doing to combat laws life hb2 from passing. equality is job one, and it is an important part of who salesforce is. equality is stretching across the planet and it can rear its head in many ways.

in georgia, fortunately the law was not sign. the law was signed in north carolina and you can see how the world reacts. basketball teams will not play in north carolina, businesses will not set up shop, like paypal, in north carolina. there is broad vindication for the of cbt community that if you make these kinds of laws, you will pay a price. you will get less investment and i guess, less basketball, too. brad: are we likely to see coordinated action? marc: you are likely to see that. that's how we got it in indiana turned around. mike pence had signed the discriminatory law into place and important industries came in and said we will not stand for this kind of discrimination against our employees. it almost happened in georgia, where the senate set the law to

the governor but the governor push back when he saw how many companies stood against it. we are dealing with it again in north carolina and i've been very heartened to see how the world has come up and said this is not our right. these kinds of laws will not be supported by the world. brad: there is a lot of work to be done on the issue of corporate diversity. salesforce has done a lot, of course. what more should be done? should we be thinking about quotas at companies? marc: you have to look at equality in many different forms . we talked about every ceo adopting a public school. probably nothing more important a company can do then to adopt the local public school. everyone should walk down a few blocks from their home. we all know where our public schools are. neither the principal and ask one question, how can we make the school better?

you'll be surprised, there are specific things you can do easily to make a public school better. when you take the power of a becoming like salesforce, not everyone has to adopt 2 to six, but we can do things to make public schools better. brad: what about diversity activities and the technology industry? marc: i think it is really important. it starts with gender equality. this is extremely important, that women have to be paid the same as men. that is something a lot of companies have not end up for. -- sign up for. also, women have to be given the same opportunities and capabilities and management training as men. two, when you get into racial equality and diversity, this is an area we all have to focus on right now, were carter, do more. --work harder, do more. i will be announcing the chief equality officer at salesforce and assigning the person these three critical things -- focus

on racial equality, focus on lgbtq equality, focus on equality. all of us need to focus on what is going on in the world. d: you said on the issue of compensation, you spent $3 million at salesforce to make pay more equitable. can you say the problem is solved or is it an ongoing issue? marc: i don't think the problem is solved. it is an ongoing issue because you continue to hire managers. you know, brad, we delivered a 26% growth quarter, fastest-growing software company. some of the people we are hiring to keepn with biases women down, and i'm sorry i have to say that, but it is reality. our job is to give them some education and understanding and enlightenment about the situation so we can have true gender equality in our industry. scarlet: that was salesforce.com

ceo marc benioff. thecensus data shows that gender pay gap narrowed in 2015. this chart shows it here. the white line tracks the average median male pay for the 2016 year. the orange line is for women. men are still making more money than women, but the gap is narrowing him and we're looking at the ratio of female-to-mail earnings of almost 30%, the highest since 1960. we have come a long way but a lot more room to make up good coming up, another chart that will explain 2 weeks into september. how does september typically stack up against the rest of the year in this chart of average monthly returns? we will explain and refill the answer next. this is bloomberg. ♪

we have some breaking news. ceo --imarily is a new mark roma really at -- marco marelli is the new ceo. the board auditor just told auditors that marco marelli will be the new ceo of monte paschi. he was until recently the vice chair and ceo of italy for bank of america. he has now been named the new ceo of monte paschi, the

troubled italian lender. we will continue to monitor these headlines. tradingschi is not right now but we will continue to monitor the headlines. this is "bloomberg markets." i am scarlet fu. here is the s&p 500 going all the way back to 1927 but which september? julie hyman will be looking at the details. good scenario or bad scenario? julie: not so good. average decline of 1%, the worst month of the year for the s&p 500 going all the way back to 1927. does not intended to be a good lull ofer the law -- summer when traders come back to work. if you look at the high points of the year, january, july, on average the best month of the year.

december 10th to be strong. to beember tends strong. september tends to be a week month. it should be noted that if you look at the past five years rather than going all the way get a bit927, you of a different scenario, with august in the worst performer. this looks at seasonal averages. this line right here is the average, if you go back the five-year trailing average. 2016 is the third line down. august over the past five years has been a poor month followed by september. if history is any indication, which, scarlet, as we well know, it is not always, it does tend to be a weak time of the year. vix andpikes in the volatility returning as we head into autumn.

this year has been no exception in that regard. scarlet: i like a little warning of past performances. julie: always need the disclaimer. scarlet: september's bid for the federal reserve. jim tisch says that the fed has distorted markets by sticking with ultralow interest rates. he spoke with the "bloomberg go" team this morning. jim: all you can do is grin and bear it. the markets are priced for perfection. 10-year notes are trading at 170. long bonds are trading 80 basis points higher. i think everybody knows that in the long-term securities are going to trade at a loss and you have got to invest. that is exactly what i was

going to ask -- where are you on the margins making decisions? jim: we are definitely short duration. generally we have been buying 10-year note and rolling down the yield curve. said -- theis they fed is managing the entire yield curve. we have rates in the intermediate to long and then a 300 basis points below where they should be and that is causing, in my opinion, all manner of problems. >> the question i'm asking you, we have heard a lot of people talk about bond scarcity. do you feel that? is there an issue with not enough securities out there? jim: we have $45 billion of assets. issue is so important for us. that isn't so important for us. what is important -- the

scarcity issue isn't it so important for us. what is important for us is the level of interest rates. i'm thinking about the entire economy. the fed has been embarked on a policy for the past seven years of zero or near zero interest rates, and it hasn't worked. we have the lowest interest rates in the united states and around the world that we have ever had in the past thousands of years. i promise you, the economy isn't the worst it has been in the past thousands of years. the fed has gotten themselves le of zero interest rates and they don't know how to get out. >> they don't know how to get out or they still think it is the solution? which is it? jim: it could be both, but if it is the solution, why hasn't it worked in the past seven years? if i were the king, i'm thinking that bernanke handle the crisis very well in 2008, 2009.

zero-interest-rate policy made sense for the first two years. but after that it was time to take us out of crisis mode and get back to normalization. >> so make yourself the king. you are going to bring the interest rates up. off something us we are pretty straight this point. there will be market dislocations. how are you prepared for the possibility? jim: we have constant cash flow coming in and we constantly have to invest. we will scale higher as yields go up. >> other opportunities in things like collateralized debt that are more attractive to? jim: everything is so picked over that it is really difficult. the fed owns close to $4 trillion of securities. assets outa lot of of the markets. there is a lot of money

desperately looking for a home, and can't really find it. tisch,: that was jim president and chief executive officer at loews corporation, speaking with the " bloomberg oh" team this morning. more on monte paschi. marco marelli is the new ceo, former bank of america banker. the bank says that the chairman has resigned as well. morelli's appointment will be effective september 20. the chairman resigning as well. quick note on apple shares -- thanks to julie hyman for pointing this out. apple shares are coming off their highs as verizon, one of the providers here, says that iphone preorders are in the normal range. the strength in apple shares coming off a little bit here, off the best levels of the session. previously, the strength was attributed to comments from

t-mobile and sprint regarding record high presale figures for the iphone 7. verizon saying it so far is within wrong role range. let's get you to the "bloomberg business flash ," the biggest business stories right now. miller -- sabhey miller assets valued at $6 million, according to people familiar with the matter. they are speaking with potential advisors about a bid. the process could start next month. united parcel service is planning to hire 95,000 seasonal workers to handle the holiday rush, about the same as the year ago. they will add drivers and driver helpers ahead of the busy season, which starts in november and runs through january. tnt and tbs will be exclusive basic cable homes for all the "

star wars" films, including the network from your of last year's "the force awakens" and the upcoming "rogue one." it includes the original " star wars" films and future installments. that is the "bloomberg business flash." what is the meaning of work in the 21st century? this is bloomberg. ♪

this is "bloomberg markets." i am scarlet. with the jobless rate below 5%, the debate among economists is intensifying. are we at full employment yet? the fed seems to think we are

not there yet because they have not raised interest rates. what structural factors are contributing to that? let's bring in joe weisenthal. it has economists pretty divided. joe: everyone should check it out between tyler cowen and noah smith, a columnist here. but thee a few reasons internet may be the biggest. "it is easier to have fun while unemployed. that is a social problem for some people." scarlet: if there is a greater preference for leisure, why are we not seeing wages go up as a result? replied, "is noah that more of personal failure on the part of the worker in the markets?" scarlet: too many guys staying home playing call of duty in

their parents' basement. you would think that would be a negative labor supply shock and lead to higher wages. joe: this is a popular debate that has broken up because most of the debate has been about the demand for labor and now people are discussing whether there is an issue with the supply of labor, particularly younger males. scarlet: avery the answer is you don't necessarily want those, quality -- joe: that is what tyler is saying. scarlet: with all the leisurely pursuits everyone can have at their fingertips, how can everyone manage the changes as disruptive as the 19th century? that is the key question in a new book "the wealth of humans." yesterday,you miss" joe spoke with ryan avent. ryan: you are right and what is interesting over the last couple of decades is life has been incredibly good in certain

white-collar professions that require knowledge work. they have been rewarded in a paychex with rising wages. at the same time, the work has become more edifying, we get to do stuff we enjoy, we get to work with other people we enjoy being around. at the same time, people on the other end of the workforce have had stagnant paychecks and found their work to be less edifying. the problem is not going to be in the future what happens to people in the highly skilled professions coming up with new ideas and trying to make the economy more innovative. it is going to be can we come up workinstitutions, be it or something else, that is similar to the typical worker, blue-collar worker that hasn't done so well? i don't think it will be a hands-on factory job like 100 years ago. joe: one of the hot debates among the econ blogs in the last weeks has th thin the degree

to which leisure time is much more appealing, video games, social networking, releasing the need to get out of the house and work, money aside. what do you make of this debate that is going on? two you think that maybe working is not such a great substitute for leisure as it may have been before? ryan: i think it is a real thing and is happening in two different ways. one is that you have wages that are not growing nearly as rapidly as they have in past generations. get young people out of the house is weaker. at the same time you have incredible wealth of entertainment opportunities from video games to social networking that make it much easier and more active to have fun in your parents' basement. in some ways that is encouraging people to stay at home. the entertainment side is only going to get better. we will have a virtual reality,

even more immersive. i don't know, maybe that is how we deal with this crisis. we make the synthetic world more attractive so it doesn't matter to a lot of people if they ever find work that is fulfilling. scarlet: so much entertainment options. that was joe weisenthal speaking with ryan avent. coming up on "what'd you miss" later today, we will be speaking to a university of oregon economics professor on the state of macroeconomics. that is coming up at 4:00 p.m. eastern time. this is bloomberg. ♪

david: 2:00 p.m. in new york. i am david gura. i am vonnie quinn. welcome to "bloomberg markets."

david: we are live in bloomberg said borders in new york the next hour and covering stories out of sentences, detroit, .ashington, and berlin markets have stabilized. stocks are higher admitted deals and a rally in apple. -- after fourre months of talks, they are -- bayer agrees to buy monsanto. in the race for the white house titans. -- and the race for the white house titans. donald trump leads hillary clinton in ohio. julie hyman. we are seeing stocks give up some of the gains that have been studied through the day. the dow had been higher for much of the session by about a quarter percent. the s&p also