from bloomberg world headquarters in new york, where covering stories from new york, berlin, bratislava, and beijing this hour. stocks are altering while bond yields are retreating, capping a rocky week where central banks have had to reinvest policy. german chancellor angela merkel has said the eu is in a critical situation p we will get a live update this hour. pandora is ready to go head-to-head with spotify, offering a new on-demand service for five dollars. remarks areergren's coming up. we are halfway through the trading day. let's head over to julie hyman, who has a snapshot of how we are trading. zigzagwe have another

today. all three major averages are down. the nasdaq down the lease today of those averages, as we see people, sort of, taking a pause, and also looking ahead to the fed and bank of japan decisions next week. i should mention volume today. that is something to talk about. take a look here. this is looking at volume today compared with the past 30 days. you see the big spike today, all the way on the end here. we are running about 45% above the 30 day average on the s&p 500 right now. triplet is witching -- witching. it sounds spooky. it tends to cause spikes in volumes and volatility, especially at the open and the close. that is something to watch and consider as the day goes on. in terms of movers on the plus side, we have some tech newsmakers to consider. twitter, last night, broadcast its first nfl game, streamed its first nfl game, and the reviews have been strong. there were some complaints about a little bit of a time delay,

but otherwise the strength of the stream was good, user engagement -- etc.. intel is trading higher after raised its forecast, saying it is seen a resurgence in pc demand, interestingly enough. marbella technology is higher. is holding of the company 16.6%. there is one big waking technologies, a big boost -- we are talking about apple, which went on a four-day run, it's best going on the way back since -- two 2012 on early indications of demand for the latest iphone. down.ers have been coming that is one of the drag we are seeing today. the biggest drag on the major averages is financials. we see bond yields come down a little bit, so that is another factor for the selloff we are seeing in scott -- stocks today. scarlet: julie hyman, thank you

so much. matt: let's check in on the first word news afternoon. mark crumpton has more from the newsroom. mark: it is an issue that has dogged donald trump for years. today, he finally acknowledged president obama's american citizenship. trump spoke earlier at a campaign event in washington. mr. trump: hillary clinton, and her campaign of 2008, started the birther controversy. i finished it. i finished it. you know what i mean. president barack obama was born in the united states, period. did, mr. trump repeated the conspiracy that clinton's 2008 campaign started the birther controversy. there is no evidence that is true, and clinton and her allies

have strongly denied the suggestion. a rash of hacking attacks has election officials in the united states concerned. nine states have asked federal authorities to look for vulnerabilities in voting systems that are tied to the internet. in a recent simulation, the security company symantec said its workers were easily able to hack into an electronic voting machines. the u.s. house intelligence committee says edward snowden caused commend us damage to u.s. national security. federalort says the government will eventually -- a new report says the federal government will eventually spend billions to repair the damage snowden caused by leaking documents about spying operations. snowden is now a fugitive in russia. a movie sympathetic to him opens tonight. at their summit today in slovakia, european union union leaders are talking about unity -- eupose on migration union leaders are talking about unity of purpose on migration. hungary, poland, slovakia, and

the czech republic i calling for a strengthening of security. they also want better -- are calling for a strengthening of security. they also want better control of the eu southern borders. global news 24 hours a day powered by 2600 journalists in over 120 countries. told me with inflation below the target rate, little changed with many fed watchers say the central bank feels little urgency about raising rates. here to give us his reaction is harm bandholz. unicredit. matt: i have a chart here -- of course, the fed looks at tce, minuse cpi, but inflation will we expect to be the transitory costs, still up, 3.2%, continues to climb. do you think the fed has to move soon to get ahead of the curve here? mr. bandholz: i think the fed should have moved more, but

given the fed's rhetoric and focus on the core cpe, i do not think they will do anything next week. there are various measures out, including those published by the regional and central banks -- i think the message from all of those is that underlying inflation in the u.s. is around number 2%. the odd man out, if you want, is the core ce deflator. that is at 1.6%. the fed sometimes ignores the other ones. matt: and suggests that full employment is somewhere below 4.9%? do you agree, and how far below do you think the fed wants to see unemployment? i think the: argument is broader. they look at the participation rate, and maybe they say with a higher participation rate, full employment might be between four

point 5% and 5%, but what the participation rate that low, we would need to see more improvement in the labor market. again, i think we are the point where the fed should have raised rates a little bit more. scarlet: that is something that is for mixing economists, and another thing that is flummoxed productivity.s is you have written about this extensively. you say that these robots -- industrial robots -- are just the latest technical innovation, and the productivity of robots is accountable to the contribution of the steam engine. mr. bandholz: i have to be honest -- it is not quite my result. i was looking at some studies. they are all in their infancy the company. a set is not huge. i mean, globalization is just something that is getting some pace. the study we have on this comes to the conclusion that the pretended -- productivity impact of robots is comparable to the one of steam engines. it is not as strong as the

impact of icp, the computerization in the 1990's, but you must not forget the spending on computers and that stuff is a must five times as high as what companies so far spend on robots. like i said, it is the developing -- beginning of a development. there is some hope this trend will boost productivity. matt: i know eric and andy have written about this extensively at the sloan school of business with a more pessimistic outlook as to how this turns out for the humans in the occasion -- equation. mr. bandholz: right. matt: how do you see this turning out -- will this displace human jobs -- will innovation somehow spring out of this and create whole new jobs? the cakeolz: overall, is getting bigger. growth is faster than it would have been otherwise, but there is no doubt to me this increases inequality. because the jobs that are being replaced are mostly those of -- the lower-skill jobs, and the ones who benefit are the ones

value beyond what robots can do. you have this rising gap. it is -- that is really the upside of global vision -- rising productivity, but -- globalization -- rising productivity, but rising inequality. you look how historically the victims have not necessarily been in the lower skilled in lower wage workers. what is different now -- why has that changed? mr. bandholz: you have referred to the first industrial revolution, or something, when we saw an increase in technological process, and increasing the number of unskilled workers. that is something that has already been different in the 1990's. one important reason is that robots and artificial intelligence in general, they can do a lot of routine jobs, if you want. what they cannot do is what we replace noncognitive skills, and is usually something you find at the upper end of the education spectrum. that is why people with better

education that have higher incomes benefit while the others suffer. matt: they can trade stocks, report the news. i do not know if they have mastered the art of economics yet. mr. bandholz: for sure, not. [laughter] any innovation -- do you see any innovation spurring us on beer -- beyond where we have gotten? mr. bandholz: i am only an economist here. matt: in your reading here. what have you read? mr. bandholz: we have seen it used in car manufacturing, apple, that industry as well, and the latest, newspapers are full of it -- self-driving cars. that is something that in the study. 10% of all workers in the u.s. drive vehicles as part of their jobs. that is the next big thing. it is in its infancy, but i personally have no doubt it will come at some point. scarlet: at the end of your paper, you look at a policy

discussion for this -- what is the best policy prescription that you have read out there, and has anybody started to implement it? mr. bandholz: i think there are triedings government has to do -- first of all, you have to adjust your education system. i'm talking about cognitive versus noncognitive skills, but, you know, it is not everything because people have different basics. not anybody could still be brought up to a level where he or she benefits. i think what we have to do is -- we have to change ownership rules. we have to, maybe, pass on the ownership of these robots to these workers, so that the lower income workers do not only get labor income, if you want, but they also get a little from capital -- the robots. by doing that, i think we would create a bit of the more equal income structure kid we see already in the public debate, not least in the u.s. election can, how many unhappy people we have, and i think this will only

get worse. i think politicians have to wake up to this, and we ditch a vision of ownership is a step in the right direction. scarlet: that is difference from readership edition of wealth -- redistribution of wealth. mr. bandholz: yes. scarlet: explain the difference. mr. bandholz: wealth has been -- when-- when there the gap is too big, you have to redistribute to come on a more solid footing. when it is income, it is gained in addition. if you give workers share of their copies, if you want come it may also encourage them to work -- to feel more married to the covenant, do more, and increase productivity with that angle. scarlet: aligning incentives. harm bandholz, take you so much. unicredit's cheesemaking economist. matt: still ahead, eu leaders are gathered in slovakia to discuss life without the u.k.. we are live in bratislava. this is blue brick. ♪ -- bloomberg. ♪

matt: this is bloomberg markets. i am matt miller. leaders of the european union's 27 nations minus the u.k. are meeting in the slovak capital of bratislava, focusing on immigration, and the economy, as they prepare to negotiate the terms of the brexit. for the latest, let's head to caroline hyde, who is on the ground in bratislava. talk about the main adjectives of this meeting. know, it has been long in terms of sound bites and short in terms of action, but we see overall, an aim for unity. renting appeared the rhetoric took me by surprise -- you have the likes of belgium kind in saying this is a moment of truth, along saying -- with

saying it is a crisis of its various -- very existence, then angela merkel, call him, saying this is a case of war or peace. that is why she is so focused on unity. have a listen. chancellor merkel: now, this is not about expecting one summit to solve all of the problems of europe. we are in a critical situation, but this is about showing through deeds that we are able to get better in areas like sakura, internal, external, fighting terrorism, defense, and that we can get better on questions of growth and jobs. caroline: defense -- that is an interesting one. unity very key. behind me, you see the french in the german flags. previously, it would be the german speaking on their own, and then the french speaking of the room. they have come together, matt, and it seems like they will be talking up the role of defense within the eu if they can work together. but there are real divisions --

the eastern block, poland, checks, somalians, one into focus on -- czech republic, slovakia, wanted to focus on security at the boarding. the italians, the spanish, they want the focus to be on jobs and opportunity. matt: is any progress been made on the brexit? what can they do without article 50 being triggered? caroline: not very much. this is what the elephant in the room is. it is the first in four decades we have had the eu meet without the united kingdom, but they are not about to talk about the future with the united kingdom until article 50 has indeed been revoked. it has been swirling around. boris johnson has been saying it with the italians, that it will come as soon as the first quarter of 2017. the date seems to be put in the mindframe, but as of now we see not much is being discussed in terms of the future -- how they go about negotiating with the

united kingdom, and actually, this whole day has been one of slight awkwardness. they have gone on a vote, and it ran into difficult waters. the type were too low. -- tides were too low. now many have said, part of the pun, not all has gone plain sailing. matt: thank you very much. we hope you get through the day safely. caroline hyde from bratislava. scarlet: it is time for the bloomberg business -- business flash. invited china general nuclear power to make a second-round bid for geothermal energy assets with -- according to people with knowledge of the matter. meanwhile, medical power indonesia is considering joining the bidding process. unilever has expressed interest in buying honest company, the healthful products company cofounded by jessica alba. honest is also working with

goldman sachs and morgan stanley on an ipo. takata, the japanese airbag maker at the center of the recall, has a short list of buyers at the end of next month, potential. they hope to shortlist two or three candidates, and among the possibles, carlyle group and kkr. takata has been negotiate with automakers on cuts went to the lengthy --faulty airbags. had, still, a new bit -- i -- a new billew has been introduced that would releasenald trump to his tax returns unless he can prove the details of an irs audit. this is bloomberg. ♪

you are watching bloomberg

markets. i am matt miller. scarlet: i am scarlet fu. republican presidential nominee donald trump facing a lot of pressure to release tax returns. this week a new bill was introduced that would force trump to prove he is declining to release returns because of an ongoing irs audited with get more details from capitol hill tech support, aaron lorenzo, who joins us from washington. unveiling thecrat bill that would force trump to prove he is under an irs audit. what is a likelihood of support from the rest of the congress? aaron: full congressional support is a little cloudy, i would say, but democrats think they have a winning issue to keep the drumbeat on. matt: how hard is it to prove you are under audit -- doesn't the irs just say you are under audit? aaron: i guess so, but so far mr. trump is using to publicly

disclose anything, he will not do so until the audit is over. senator ron wyden try to get a vote on the senate floor yesterday. he was blocked. it would force that action. matt: the irs will not disclose whether or not donald trump is under audit. aaron: that is right. scarlet: what will the irs tell us -- if you were to press the irs, how much information is it able to reveal? aaron: if we were able to see the tax returns, the backers in congress that want disclosure say there are some data points missing. they say we would know more about the tax rate donald trump phase, understand more about the charitable deductions he might be taking, and we might get a better understanding of how donald trump, if he became president, would want to change the tax code, or preserved certain tax laws that might be favorable to him right now. what about typical procedure -- can we ask the irs whether or not is -- it is

allowed to show tax returns that are under audit, or whether or not we are able to see tax returns that are under an audit? aaron: i think that is more of a privacy issue, but from the congress set of things, like i said, senator ron wyden is trying to force the issue, force trump's hand, and force this going forward, with his bill making president of candidates also have to disclose three years of the past tax returns was to become the major party's nominee. matt: who was the last presidential candidate to withhold his tax returns completely? aaron: according to senator wyden and others pushing this, they say this is about 40 years of tradition. we are looking back into the 1970's the last time any major candidate did not disclose or released these tax returns, and they say donald trump is trying to hide something, and, you know, he is upending many decades of tradition now, so

they think that they need something like the force of law to make this happen. scarlet: and one more question to you --what has the trump campaign said so far about donald trump's tax returns? i know his son, eric, for instance, did make some comments. aaron: the latest is along the lines of what we have heard all along -- he will release them when he is ready to do so, so in the meantime, democrats will keep hammering away, and i think this is a good political talking point, so we will hear from them while we don't hear from mr. tom, i suppose. matt: aaron lorenzo, -- mr. trump, i suppose. lorenzo, thank you for joining us. i wanted to look at gauging the inflationations for are headed. if you come inside the bloomberg, this is the intraday for the 10-day break even, what investors or traders believe inflation would be at over the next 10 years on an annual basis. you see a big leap up following 8:30 a.m. release of the

numbers. we are now at 1.52%. over the long term, we are in a range, but you could say we are trending up since late-january. matt: so, we often look at inflation -- scarlet: late-june, i should say. matt: we also look at food minus,-- -- inflation but one. that donald trump eats a lot of, sugarcane stocks going through a four -- raw cane sugar going through the roof. they continue to rise in price. scarlet: all right, coming up -- matt: we will hear from pandora's ceo tim westergren in a new service -- on a new service. ♪

hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. scarlet: live from bloomberg world headquarters in new york, i am scarlet fu. matt: this is bloomberg markets. let's kick it off with the

headlines. mark crumpton has more from the newsroom. mark c.: president obama says he thinks most people think he was born in the united dates, and he hopes that the election campaign focuses on something else. the remarks come after donald trump said today that mr. obama is a united states citizen. president obama: i'm shocked a question like that would come up at a time when we have so many things to do. i'm not shocked, actually. we have other business to attend to. i'm pretty confident about where i was born, i think most people were as well. my hope would be that the presidential election reflects more serious issues than that. mark c.: trump help to fuel the so-called birther movement which falsely claimed the president was born outside the u.s. he now says he believes that he

was born here. michelle obama makes her first official campaign appearance for virginia.inton in she is speaking at george mason university. clinton seem to have an insurmountable lead, but recent polls show the race tightening. boris johnson told reporters that the u.k. must supply clarity and certainty on its leave the european union. the united nations is blaming the syrian government from preventing aid to reach the besieged city of aleppo. troops have started pulling back from a major road into the city.

global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. matt: pandora acquired licenses from three of the largest rights holders. sony music, universal, and the berlin network. this paves the way for new subscription services including rivals spotify and apple. emily chang sat down with pandora's ceo earlier this morning. >> for sure, in the short term, we have an existing audience. they have been telling us how to use the product. as we build these features that are built on demand in our just shy of 3nce, million in three months. emily: why not go straight to on

demand? >> if you look at the mass consumer, you need more than just two options. you need some mid-tear, which will make the average consumer where they are. if you look at services historically, they have always had multiple price points. i think this is a big step in that direction. it is the first and only mid tier. pandora can do this only because of our existing ad system. with: you struck a deal warner. what else do you need to do? >> built the final product now. this,eed to knowledge striking the deal is a real watershed, i think. industry has sent to us,

we believe in this product you have. we will give you the ability to build these multiple tiers. a company generally building markets. i think -- we have struck these deals and record time. when will we see this? by the end of the year? builds not a long time to a new product. how will this differ from apple music and spotify? the way i would describe it right now is 30 million songs, and a search box. what pandora will do is bring simplicity and intuitiveness to

the existing product and bring it to on demand. then, when you see this product you will say, that is the way it is supposed to be done. for a do you see and need new streaming service in the future? and spotify, new conversations, as we understand it, they are to payto move free users users. >> i do think you need paid to of users.arge portion people love free, but how do you monetize it well enough to not undervalue the value of music. music has value. i think pandora has a unique ability to do that. when you think about our

business model, we have a profitable foundation, which is radio. andearn about their tastes how they use the product. pad tocomes a launching send people into other products. they are profitable for generating royalties. that is kind of the formula for success. not just for us but the industry. emily: spotify has been doing some interesting things with competition. songsre making musicians harder to find on spotify. what you think of that as a competitive tactic. is that comment? will that become more common? >> in the long run, every service will have to think just about the consumer. i think that means the exclusivity's and methodologies will not belong to the world. i think these things go way over

time. there is experimenting going on, can i get leverage from that? if you don't do things good for the consumers, you won't win in the end. emily: you but ticket fly -- bought ticket fly. >> one of the problems that meets solving is how do you bring audiences to see bands. with ticket fly, you log in and through theences service. we have seen this extraordinary phenomenon where, as people get these targeted recommendations to shows in their neighborhoods, they are responding at critical engagement rates and we are seeing shows sell out

methodically. that is the great promise of a successful service like this. it becomes a mother of all sort of platform for musicians. matt: that was emily chang with pandora's ceo. you can hear the rest of that on bloomberg west tonight. scarlet: u.s. stocks opened lower today. though they still remain down, they have come off the worst session. the .he nasdaq here, down i want to head over to abigail doolittle come alive at the nasdaq. abigail: it does feel like we have the nasdaq trying to creep towards even. we will see how the day place out. one stock try to help this move, amazon. this is one of the biggest sovers today as to big analyst

targets.hed their a $1000c capital with target. this mega cap could become more mega. cap,et: speaking of mega one stock on fire is apple. it appears to be one of the biggest drags right now. abigail: it is the biggest drag. it has been a huge week for apple. but the be down today, reason for the stock being up so much this week, positive reports around the iphone seven and preorders. we had the chance to speak with

an analyst over at maximum group. we checked in with him on this and he said is in line with a survey they did in back to that the iphone seven would over deliver relative to low expectations. he sees the iphone seven taking them to topline growth. some good stuff there on apple. scarlet: good stuff but it comes on the heels of a pretty big selloff. you look at the charts, what did we learn from the weakness? abigail: great points. we can take a look at this in .he bloomberg this is a longer-term chart of apple. we see that the kind that you just mentioned into the recent

upswing, not just this time, but back in 2012 and 2013 as well. there was disappointment around the iphone 5 and the bar was set s, whichhe five over deliver it. now, once again, the bar is set low. if they prove to be right, the low bar, the low expectations could really help this stock outperform. from technical perspective it is breaking right above the down trend. it could be set for a bullish move higher. scarlet: thank you so much. matt: coming up, bloomberg pursuits got an exclusive tour after wall of her story a it was acquired for almost $2 billion. we take you inside next.

don't.: the lender >> plan to run to the nearest apple store for an iphone. they say there are none less, unless you preorder.

mark b.: in quick take, reigniting the debate over gmo's in the flu change. -- chain. >> investors are focusing once again on the fed. the latest amount sent -- announcement do on wednesday. beit is absurd not to provin improving the infrastructure. it speaks directly to engaging the private sector and what has been until now, and economy operating well below the potential. mark b.: a german lender says it will not pay $14 billion that prosecutors want to settle the claim. door shipping says that deutscheions -- osh

bank says that negotiations are just beginning. apple has not made enough phones to meet demand. customers who have not pre-ordered will not be able to buy them unless they preorder. breakhas decided to tradition and not announced the first weekend sales figures. samsung will recall the galaxy note smartphone. reports that dozens of the phones caught fire or exploded. there are be calling about one million phones in the united states. >> it is time now for the bloomberg quick take. genetically modified organisms

known as gmo's are as common as corn and as routine as rice. in 70 to ingredients 80% of america's processed foods. here's the situation. two decades after modified crops were first sold, president obama signed a law for ingredients to be disclosed on food packages. more than 60 countries have laboring -- labeling practices. monsanto.are led by other leaders include dow chemical, dupont, and sentient syngenta. here is the background. humans have been modifying crops for centuries. lab methods gave fruits and

vegetables new colors and made grains easier to harvest. here is the argument. gmo supporters point to a that gmo'sconsensus cause no more risk than other crops. consumers remain leery, nonetheless, not only of gmo's but there central place in agriculture. you can read more about gmo's and all of our quick takes on the bloomberg. head to bloomberg.com for more stories. ♪

matt: m bloomberg first news today, we look at the waldorf-astoria, one of new

york's most historic and arctic could actually -- architecture late significant hotels. bloomberg pursuits got a look at the hotel. the story made a huge splash when it hit the website. everybody was talking about it on facebook and twitter. the owners.with now, the president will not say that anymore? >> yet. the u.n. general assembly used to stay at the hotel, but now they have moved to the palace hotel nearby. that does not devalue the property. whole city one block. it has 1400 rooms. matt: massive.

>> massive. among the new owners, the plans spring 2017, it in and renovated for condos. some conservation groups want to make sure the interior is not messed with. ever they paid the most for a u.s. hotel and they will throw more money at it to renovate it. i think the new york conservancy is trying to get that interior marked as >> a landmark. >> correct. the exterior is marked as a landmark. rightfully so, the new owners devote theitant to interior as a landmark.

so much about it is magic. it is where frank sinatra got his start. his bartender is still serving drinks at one of the bars there. there is just so much there. there is a secret train station below the hotel. think got is what i the most attention on social media. the train is amazing. fdr had this made so we would not all see him riding around in a wheelchair. >> exactly. he could take the train in from d.c. and it would connect at grand central. there were special tracks that would take him under the hotel. they could park the limousine on the train and take it directly parking garage, all in the guise of keeping the public unaware about his polio.

matt: there are markings that make people believe that the secret service still uses this. >> exactly. the rest of the hotel was very cagey about explaining. it is unclear. the train itself is still owned by the federal government and has supposedly not moved since 1945, when fdr passed away. matt: the feds still on the train and the tracks to grand central. >> correct. they want to be very secret. that is part of the alert of the hotel. they can have these giant affairs. the ballroom can accommodate up to 30 different security details at a time. matt: i did not know until this created red they velvet cake. velvet cakek of red

as something from the south, but it was made in the 1930's for a guest. they added red color to cheesete cake and cream frosting. .t was a special thing matt: i'm guessing the waldorf salad was invented in the waldorf-astoria. waldorf-astoria but the waldorf hotel and 80 hundreds. they were separate, and at one point merged. when the empire state building went up, it was demolished and went back to the building. storiese of my favorite that you have done.

i learned so much, and at 42, in new york for 20 years, i had no idea there was a train the waldorf-astoria. i recommend you head over to bloomberg pursuits, the destination for the finest things in life, including travel underground in new york, dining, red velvet cake, and $2 billion hotel properties. you can see a wealth of fascinating information at bloomberg pursuits for all of us to enjoy. this is bloomberg. ♪

. .

scarlet: good afternoon, i'm scarlet fu. matt: and i matt miller. welcome to "bloomberg markets."

wey: we're covering --matt: are covering stories from san francisco to washington and berlin and blotto slava -- bratislava. stocks falling around the world as renewed selling in crude that took oil down to $43 a barrel. at one point, even less. dropped energy shares. the dollar is climbing amid u.s. inflation data, 2.3% is what we saw for cpi. deutsche bank says it won't pay the $14 billiondropped energy s. the dollar is climbing settlemet sought by the u.s. justice department. though shares tanked more than 8% in frankfurt. their riskiest bonds plummeted as well. oracle reported first-quarter earnings in the ceo is trying to send a message that he will take

on its competitors in the cloud. we dive into cloud revenues this hour. breaking news, we go back to scarlet. engineer andh, an software provider, robert bosch of germany is now under inquiry. he is under a u.s. criminal probe in the vw deal inquiry. as the widened the probe u.s. is investigating robert bosch. he provided software to the carmaker and conspired with the carmaker to engineer these diesel cars that would ultimately cheat these additions testing. this according to two people familiar with the matter. doj is asking whether automakers, in addition to volkswagen, use this software by bosch to skirt these environment standards. we monitor this and volkswagen shares have fallen and stocks are trading, they had moved 2.5% to 12685

euros. we have more on today's trade. a pause after yesterday's big games an upsurge in volume on the expiration of futures and options contracts, which is typical, financials have been leading losses today and have been declining as we've seen bond yields slide this week. i want to take a look at what we'd seen in terms of the daily trading range for the s&p 500. the summer doldrums are over and how. after that 43 session run we had with adam wu at least 1%. this looks of that daily percentage range in the s&p, it's back with a vengeance. if you look all the way on the right side of the screen behind the spikee seen now in these moves, these outsized moves it for the s&p 500. definitely post-brexit, there

that'sall that -- a lull back with a vengeance. we are watching automakers, because fiat becomes the latest automaker to be out with a recall, recalling 1.4 million cars and trucks in the u.s. to repair condition that may keep seatbelt tighten and airbags from deploying in a crash. it's also recalling vehicles outside of the u.s., 500-9000. recalling 6.3 million cars and suvs for a similar defect. it's down .7%, ford barely down today. tech of getting a bump up, elon musk did say in a twitter post that he hopes to introduce a new version of the autopilot software on wednesday. the company has been talking about adding a radar feature to autopilot. outside of stocks today, we are to ctig the reaction

data. consumer inflation coming in hotter than had been anticipated. that's caused an increase in the dollar, about two thirds of 1%. it's not causing the 10 year yield, which is unchanged as we can see at 1.69%. it's curious that we are seeing that currency reaction, but not necessarily as much of a bond reaction today. scarlet: julie hyman with the latest on the markets. matt: breaking news now on the brexit. the british side of this, chancellor of the a checker, philip hammond, is said to be ready to give up britain's membership in the single market of europe. and give up the banks access, the british-based bank access to the european single market in return for full control over u.k. borders. because that's what a lot of the vote was about three and so the british government is looking to maintain full control over

british borders, and they are willing to give up access to the single market for that control. it's a massive piece of news, scarlet. this means so much for the banks, all of our clients who are based in london, all of the banks who have used london as a hub to access your of it. if they are not able to access europe from there, clearly they are going to move somewhere else. people have been talking about ireland, that's question also because the eu, dishing commission has been attacking ireland and their sovereignty what they are doing for taxes. it could be good news for paris. it could be good news for frankfurt, as drive and gray as the city really is. looking at the british pound, other u.k. acids have stopped trading. the u.k. pound continues to fall the session lows. there's a move on the headline down 1.4%, still around this range. looking at the one-month, you

can see pretty much still in the range, certainly over the last six months, you can see that since the pound declined after the shock of the brexit vote, it twoheld between this 130 135 range. you're seeing instantaneous reaction to these headlines. this is according to people familiar with the matter, it's not official yet. has yet to be50 triggered. these negotiations of yet to start. and before negotiations, you want to take a hard line stance, that can be one strategy, in order to get more of what you want when you have to negotiate. on the amerco and france while law and have said the free movement of people through borders is a redline that they will not cross. britain is saying they want that redline crossed, and they are access to thee up single market. you are looking at live pictures from bratislava right now, on the merkel -- angela merkel

speaking in germany. we will continue to cover this. a piece of britain news that is absolutely vital to global investment banks that possibly london will lose access to the single market. commenting in general on the eu and what they are doing, saying that eu leaders agreed that they need a crisis agenda, the discussions on the eu's future without the u.k. so far off to a great start. pretty much what you expect her to say. matt: this could prove problematic for people from britain living and working elsewhere in europe. people from elsewhere in europe living and working in britain. scarlet: a lot of questions there. matt: people have to start looking at moving back. we look at the currency effectiveness in the second with vince cignarella. scarlet: let's go to mark crumpton with more the bloomberg first word headlines. market: hillary clinton says

donald trump does president obama an apology for his role in the so-called birther movement that questioned the parent -- the presidents american citizenship. clinton said trump's campaign was founded on this outrageous lie. there is no erasing it. she says trump is feeding into the worst impulses of bigotry and bias that lurk in the nation. trump acknowledged he does know the president was born in the u.s., however, he did say the clinton campaign started the birther conspiracy back in 2008 when mrs. clinton and president obama, then senator obama, were both seeking the democratic nomination. former vice president al gore involved today, the new york times reporting the clinton campaign has reached out to him. he would reportedly get involved to emphasize mrs. clinton's importance to climate change rye grass. prosecutors could call at least 200 witnesses during the trial of a woman accused of driving

her car into a homecoming campaign obama state university. four people were killed and dozens injured in the october crash. guiltys is pleaded not to four counts of second-degree murder and other charges. relief teams working alongside north korean soldiers rushed to clear roads, build shelter, and provide food to thousands of people in a remote part of the country near the chinese border. the region was devastated by heavy florida and -- heavy flooding when a typhoon pounded villages last week. officials say the floods killed more than 100 people and crippled infrastructure across the northern korean peninsula. 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. matt: thank you. ,oining us is vince cignarella the currency strategist at editor.

you is a teased bloomberg intelligence analyst. have been working in the currency market for a number of decades, let's say. what do you make of this news out from the chancellor of the exchequer in great britain that they are willing to trade access to the single market for complete sovereignty over their borders. as a currency analyst, what are your first thoughts? vince: this is a political agenda, to be honest. ony didn't move drastically the snows. i'm not sure of traders know what to do with this in the short term. because i bring this up you've been in the currency markets for 30 years. the u.k. in london is the headquarters, it ground zero for trading globally because of the hours. they can take over from asia before handing things off to the u.s.. i would not have been possible without those banking and

passporting rights that the u.k. got because of its membership in the eu. vince: the potential is, this is more of a people issue. similar to what happened in the u.s. with dodd-frank, where derivatives were no longer able to be traded onshore by u.s. banks. that trade moved to singapore in europe. it affected the individuals involved in the market, it didn't really affect the market in general. this is a slightly bigger issue. because of what it means to the pound and what it means to the u.k. and the u.k. financial center. that's a major hub, as you said. battle goes away over time, it would be a big hit for the u.k. economy. it remains to be seen how much you are to disturb that entire structure. it's not necessarily a positive for europe as well. no one knows where that's going to go. matt: i'm looking at a cable right now, i should look at some other pairs. but we're looking at the biggest drop in the pound since august

4. not come as you said, all on this move. most of it was put in and we were down below 131 before this news came out. there is some real weakness in the pound today, down to $1.30. vince: that's a bit of a line in the sand for some. it bounced back nicely, it's been holding there. it pushed higher from time to time. range,in a broad trading something on those lines. it is still an issue that's kind of far away and difficult to get your hands on what it really means. ,carlet: what is driving whether it's cable or pound sterling with euro pound, what would move that pair decisively out of that broad trading range? vince: expectations for the fomc. this is just an add-on. we've seen core data the markets left that off. it's concentrating more on what the potential for the fomc could

be more towards a hawkish lean. the majority of people are expecting this to be neutral. there are some serious risks for potential dissension among one or two recently turned hawk hawkishto potentially leaning statements where the fed might want to nail down the december rate hike or rate hikes this year. if not in september. matt: i want to bring in sanyo donald to talk about is breaking news very about the chancellor of the exchequer said to be willing to give him access to the single market, including mr. portly for our clients and our viewers, bank access to the european markets from the city of london. , and whatant is this does this mean for the future of london is a banking center?

svegnia: we just talking about membership, he still wants to maintain access. shadows into market, retaining all the pound, without some of the curves. is this a realistic prospect? it's aets what he wants, great thing for the u.k., at the moment, it's quite unlikely given what we're hearing from other eu countries. scarlet: isn't that exactly what germany for instance is not willing to give up, which is access to the signal market? you give up membership, you give up access. certainly, they can't give both to the u.k., because every one else will follow suit. svenja: the argument that u.k. will try and make is that london is a major financial center and this is not just important that a remains that way for london, but also for the rest of europe. companies usean

theon to raise financing arguing here is if london goes, it's equally detrimental to european countries. they are hoping there's give-and-take in negotiations. marketnally single membership was seen as something they wanted to retain. is not looking possible to retain this and have control over immigration. the brexit vote is primarily seen as a vote asking for control over immigration. politically it's become a very sensitive topic. matt: you make a very important distinction between access and membership. there is precedent already for a country that has not got membership, norway has no membership, and yet, norway does have access to the single market. they pay a pretty penny for that, now is another issue in the right to vote. the amount of contribution the u.k. had to give to eu coffers

if they want to keep hold of that access without having membership, or the going to have to pay a lot of money to keep it? svenja: this is the question on everyone's minds at the moment. won't start in earnest until the u.k. triggers article 50. at the moment, there's very little talk going on at senior levels because all eu countries are saying you press the button, then we can start really shutting down the ground lines. the u.k. is trying to see what it can arrange before that actually happens. once that trigger is set, they only have three years to potentially draw up a whole blueprint, it's taken the eu decades to work out. the thing about financial confirmations are going to be a sensitive issue. probably not as sensitive as immigration. i'm looking at the pound falling to session lows. we keep saying that because it keeps ticking lower, now down 1.5%, as vince cignarella points

out, it is still within the range that it's been stuck in since the brings up oh. you can see a 13046 is the latest trade. extent philip hammond saying he is willing to accept that the u.k. may have to give up membership of the using single market, but not access is just an opening gambit. one of a one or step very long series of negotiations. svenja: let's make this clear, he hasn't sent this. from people familiar with this thinking, that's a very key distinction. is itoblem you have here of the treasury on one side and hammond, who voted to remain in the eu. and other senior government figures voted to leave. fairlyhave to balance different political views here. as the said before, it's all give-and-take.

of course, if it was hammond making the decision alone, he would say we will try and keep membership. he's got to balance the political tensions within theresa may's cabinet, with trying to keep the banks online. he has been trying to get them around to saying look, we're going to try our hardest great and we are aiming for is pretty much what we've got now, but without the official eu stamp on it. politically -- are there a lot of british people happy to be able to work or who enjoyin, getting a pint with italians in chelsea? the free movement of people, is that on important to people stuck on the island of great britain? svenja: absolutely. i myself rope in paris and i work in u.k. and other countries. this wasn't an overwhelming

vote, it was a very close vote. i think, unfortunately, a lot of these votes are very emotional things. bridget is a very emotional issue for the u.k.. perhaps the reality that they are only just turning to hit, is that now brits will need to get a visa to go to europe. this is not something that was a primary consideration. for some people, you campaign for brexit, it was a popular thing. matt: svenja o'donnell. thank you. we will continue talking about this breaking news. this is bloomberg. ♪

matt: this is "bloomberg markets," i'm matt miller. popi-based carrier freedom has seen immense growth, thanks in part to its free and supercheap sim card.

earlier this month, it launched a new plan with unlimited use of messenger service that facebook page $19 billion for a few years ago. and do investments, let's go to bloomberg carol massar and cory johnson. by the ceo ofined freedompop. >> it's the most innovative, self-proclaimed, the most innovative mobile carrier in the u.s. right now. we offer free mobile services. truly free. we leverage the middle -- business models to be able to deliver that. cory: talk to me about the important to the iphone. stephen: from the perspective of where we play, we don't subsidize phones. service, it's a good thing for consumers, but we don't have the money to spend $500 subsidizing a phone.

iphones, theished 6, 6 plus, and when anyone hits with very limited upgrade the gap between the six plus in the seven is quite narrow. all of a sudden, a refurbished success that we can sell for $300, less than half of an iphone seven become very relevantly valuable, vis-à-vis the new seven. it's an opportunity, you'll have your trade-ins and apple will do the business they do on new. but people switch to iphone or people with the five or older versions don't qualify for the subsidize devices. you are unlikely to go to a seven. based on the fact that the increment the value between a seven and six plus is very negligible. you had me at free. the refurbished market you are playing into, give me an idea of what the costs are freer access to refurbished phones. is it easier to find them and

what kind of demand to have? stephen: all of these trade-ins flood the market. just two months ago, and iphone 6 might've cost us three and $50 to buy, nine of a flood of trade-ins coming. and that same device now is between 200 and $250. that allows us to take a refurbished, like new iphone six be able to sell that for $300. or iphone 6 s, we can sell it for under $400. because the cost basis come down significant since the new iphone seven was announced and all the trade-ins come flooding in. free is nice for a consumer, but usually that for business. where is your revenue? spotify,if you look at they have made free work. we try and sell additional value. we will make our money, if you need more data, 500 minutes, to

inditex. if you need to gigs, we will sell you a wholesale cost. 50% less than the market. the maker margins by selling you value-added services. if you want a second phone number, a couple bucks a month. a number from the u.k. so friends and family can call for free, that's about a month. if you want, and security, we will set that up for a couple of bucks a month. a slew of value-added services. freemium model. stephen: it's just like what you see on the internet. talk about growth in your consumer base. stephen: the fastest-growing mobile character in the u.s., we launched in the u.k. and spain. carol: give me a number. you're saying 10%, 20% growth in terms of subscribers? stephen: 10 times that. you to base doubles of every quarter. we are into the millions already. cory: it's fundamentally

reselling service. stephen: recently networks. when the public ownership with sprint and adding in with the major characters. freedompop, an interesting comment. back to matt miller on bloomberg tv. matt: thank you. you can catch more radio interviews on sirius xm or bloomberg.com. go is the punch and for that. scarlet: etf's are growing in size with absence -- assets more than doubling. we discuss. this is bloomberg. ♪

matt: we are live on the slightly cloudy but gorgeous friday from the worldwide

headquarters in midtown manhattan. i'm matt miller. scarlet: i'm scarlet fu, this is "bloomberg markets." mark crumpton has more. president obama says he gives credit to the american people for knowing the truth. he's reaction to donald trump questioning the president's citizenship. president obama: i'm shocked that a question like that would, when we have so many of the things to do. i'm not that shot, actually. it's really typical. we have other business to attend to. i was putting confident about where i was born. -- pretty confident about where i was born. i think most people were as well. my hope would be that the presidential election reflects more serious issues than that. in recent days, trump campaign staffers have been

examining an article saying how the clinton 2008 campaign systematically attacked mr. obama as they battled for the democratic president nomination. reached for comment on friday, the author of one of the e-mails in question and mrs. clinton's chief strategist at the time said i never had anything to do with starting the discussion of obama's birth certificate, ever. to the contrary, it is completely false. bernie sanders is urging his supporters not to vote for third-party candidate in november. he says that might deny hillary clinton the support she needs to defeat donald trump. interview today, senator sanders said anyone casting a protest vote should imagine four years of trump as president. authorities in columbus, ohio urging calm as they investigate the fatal shooting of a black teen by a white police officer. alice say the 13-year-old was suspect in an armed robbery.

king allegedly pulled a gun on police, which turned out to be a bb gun. the cases drawing comparisons to the 2014 police shooting of 12-year-old tamir rice. he was playing with a pellet gun in the cleveland park when he was shot and killed by police. the u.s. secretary of state john kerry spoke with his russian counterpart, surrogate lever of -- surrogate lever off. him that kerry told unless the aid is allowed, any future military cooperation was not guaranteed. he also called the delays of assistance to aleppo unacceptable. 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, back to you. scarlet: small-cap etf's have doubled in size by offering investors a convenient and

inexpensive way to ride market rallies. the biggest mall cap etf has $28 million in assets. it lost market share to newer interval rivals. joining us now is ken o'keefe. let's set the scene by talking about how these outperform up about 10% if you are looking at 2000, which is this switch in leadership for three-year performance. what does this tell you about the state of the u.s. economy and where people see growth coming from? clearly, the u.s. economy is the growth engine of the world. investors are recognizing that. small-cap companies are more exposed, the bulk of the revenues are coming from the u.s. larger cap companies have more international operations and those international operations are potentially being slow down by slower economies outside the u.s. matt: after the break to vote, the ftse 100 recovered quickly

and they did fairly well, while the 250, which is more of a domestically focused index suffered the consequent is. you have had tremendous success with the 2000 and etf form, think. the size of the etf has quadrupled in the past five or six years. why do you think investors are so avid to get a hold of this in etf form? ken: part of it is to capture that small-cap factor. it's also achieved a simple city of the product. etf's are growing because they offer very rules-based transparent methodology. trying to understand investment, you have to know the active manager in the philosophy and their people and their processes. the index, need to go on their website and open of the methodology book and read. simple as that. people wonder about

liquidity was smaller cap companies, you can't get in and out as quickly as you might like to in the event of market stress. what kind of liquidity requirements are going to be built into these indexes, and how well are they able to withstand a sudden selloff? ken: russell does have liquidity screenings and all of its indexes. russell two thousand has become the industry standard. not only are there etf space on it, but mutual funds based on it , futures based on it. if there's a liquidity squeeze in small cap, there are so many different avenues that investors can use, sony different tools investors can use to manage their portfolios, which adds to the overall economic structure that supports the russell 2000. small-cap etf's don't do as well after big volatility events like the devaluation of the u.n. last year with a brexit vote. flee small-cap

etf's at any whiff of fear globally? ken: there's more volatility in small caps, but what i hope investors are doing is thinking through what is my long-term strategy, what is my long-term asset allocation? i'm going to try and ride out those waves. scarlet: since you are the head of the ftse, i have to ask about the china a shares. msci has not yet done that. why were you so much ahead of the curve? ken: there is new wants there. we have indexes where people started to add chinese a shares, but they aren't our standard indexes. we are providing vehicles for investors who want to start getting exposure to chinese a shares to do that. for most of our indexes, but i conclude emerging markets, china a shares are they are. review ofgular

inclusion. matt: how do you work with etf providers in order to package these indexes into these products that are treatable? -- tradable? on the provider. some of it comes with a very clear mindset of this is what i want, you have it on the shelf that i want to license it. others come in with an investment issue they are trying to solve. our research team works very closely with them to help design and index that solves that investment issue. work with etf providers not only to make an etf out of it index you already have, but also to serve an interest that the etf provider has by creating a new index. ken: absolutely. scarlet: talk about the popularity of these lowball etf's, only to run into trouble

about volatility in the last couple of days. ken: that may be true, they don't always perform day by day is you might like. but overall, the new smart data indexes, which include low volatility, dividend, fundamental indexes etc. action to perform quite well. for example how the dividend index provides 50% more dividend yield than the standard benchmarks. and by a large, the lower volatility indices do provide that low volatility over time. matt: you are hoping investors are not just trading in and out of these in the matter of hours, but actually thing about it and making investment decisions. of the problem retail investors have is jumping out too soon. scarlet: thank you. next, goldman sachs says investors are missing an opportunity in a certain group of stocks that are set to benefit from high rates.

we explain more in today's chart of the day. this is bloomberg. ♪

scarlet: this is "bloomberg markets," i'm scarlet fu. julie hyman with her chart of the day. julie: i would walk into the chart of the day. let's take a look at the imap for today for the groups that are on the move. the group is performing the worst is the financials. 1.2%, energy only second to financials here. between financials of energy that's the biggest drag. we've seen this week financials buffeted around by what's going on with interest rates.

it's important to remember as goldman sachs points out today that financials as one of the groups that can benefit if indeed rates are going to start to go up. we've seen this knee-jerk reaction the where there are hints from the fed that they're going to start tightening, we see stocks overall decline. as goldman points out, financials, banks specifically tend to do better rid their profit margins go up as rates go up. as the chart of the day, one way to articulate this. the white line is the s&p 500 financial sector, divided by the rest of the s&p 500. versus the 10 year treasury yield. this is how financials do relative to the s&p 500, versus the 10 year treasury. in other words, you do see higher correlation to some degree between these two versus the s&p 500 as a whole. the other thing we should point out is the financials are about to be separated from real estate. that's as of the close of trading today.

ratio betweenhe the s&p 500 real estate index and the financials. in other words, when it's going down, real estate is going down relative to the financials. what is going on, real estate is going up relative to financials. real estate lately has been going down relative to the broader index. it's been a drag. in other words, with real estate separated, at least in theory, because real estate tends to be hurt by higher rates, that will remove another drag on the overall financial index. we should be watching financials next week as well stocks, for that matter. independent on the bond market reaction we get to the fomc decision and comments, these are two groups that are really going to be key. one of them could potentially do much better than the other, depending on what happens with rates. to proveit just goes that anything is being driven by the global rate story.

julie hyman, thank you. charti was try to make a to use later, but not just going to steal julie's. chief economic adviser mohamed el-erian says focusing on when the federal reserve hiked rates is causing unnecessary distraction trade we spoke with him earlier on television and gave us his thoughts on what we should be really looking at when it comes to the fed. >> we should be focusing on what is the power of interest rates going to look like? it will be very shallow with lots of stuff goes. and where we going to end up with the terminal rate? well below historical averages. finally, our other policy adjournments going to be helping monetary policy? that is what we should be focusing on, and that's what's when to determine where equity markets, the bond markets, and currency markets end up. not whether the timing is the

september or december. of sense that lot ultimately september or december is not nearly as important as the markets and the fed long-term estimations of their trajectory. but people are so entrenched into this idea that whatever the hiking cycle is, is going to be very slow and inconsistent. and there's not much inflation risk in the future. what's going to kick us out of that expectation in one direction or another? what's going to get us out of this consensus? world, and of the importantly, the policymakers. if the rest of the world stays sluggish, if the policy stays over dependent and overreliance on the fed, then we stay in this world for a while, until it breaks in a major way. the key thing is to ask the question -- what happens outside the u.s. and what happens to fiscal and structural reforms? onrlet: the boj is meeting

september 21st, and arguably, a lot of saying that meeting is more important than the fed meeting next week. certainly for the shape of bond markets around the world. what is your assessment of the bank of japan supposedly trying to stephen the yield curve? >> that the important point. the bank of japan is at the forefront of banks going from being effective to ineffective, to potentially counterproductive. watch the bank of japan. it's a very intriguing meeting. i don't of its more important than the fed. it's more intriguing than the fed. they've indicated they are going to do less in terms of qe and more in terms of negative rates. i think that's a mistake. if they do that, watch the currency. they manned up with a completely counterintuitive reaction in the currency market. matt: back here to the u.s., not necessarily the fed, but fiscal policy, as an economist and as an american, have you thought about this?

look at of should congress be getting ready for, and what are the sizes we should be expecting to see? for that we should see. that you would prescribed. >> we should see, we won't see. we should see is a major of the .tructure investment program it's absurd not to be improving our of the structure when long-term interest rates are so low. directly toaks engaging the private sector and unleashing what until now has been an economy operating well below potential. it's a strong case for every structure investment. there's a strong case for corporate tax reform and there's also a strong case for looking at student debt and trying to addressut how to we today with what a be a major problem in four to five years time. matt: a lot of of people are coming around to this view that you've been advocating, that we should change the policy mix and

do something on every structure spending. a bloomberg view contributor writes there's nothing weird about this. maybe this made a lot of sense in 2010, when we had 10% unemployment, but now we are basically at full employment and we've seen improvement around the world. why now? they are onally full employment and getting close to on inflation, why the sudden spike in interest in finding new ways to juice the economy? >> and of the give it is juicing the economy is much as i think of it as unleashing the private sector. you haveh equation, labor and capital. you have to improve the productivity of capital. the structure investment is absolutely key to making the private sector more engaged, more productive, and to ensure genuine long-term growth. this is not about short-term juicing the economy as much as it is putting it on a road to hire sustainable growth. minimum, reducing the

pressure on potential growth. because that's what's happening today, potential growth is coming down. el-eriant was mohamed talking with me, scarlet, and joe. sales are surging, we talk about the rising popularity and american food culture, next. this is bloomberg. ♪

matt: we look of the pressure points of social change in corporate america. today we are talking america's halal food.e all -- sales of the food are surging, especially among millennials. scarlet: joining us is jeff green.

just, let's start with defining the terms. food?s hala arabict's using traditions to prepare food. it has the added benefit of being considered more clean and better for you. there's not a lot of additives, it's done in a way that the animals are supposed to be treated humanely. things like that. scarlet: no surprises on the wired -- on the rise in the way that people flocked to organic food. jeff: it's often sold in the organic or health food section. scarlet: whole food embraced this, there are a number of brands there and people realize that when they seek it out. it's one of those things where people who are advocates say one of the things they have going for them is many of the people who may be don't even

like muslims love the food. it breaks that paradigm for them. --t: i was starting to see are we starting to see halal food in unusual places? in new york, we see it all over the place and detroit is practically a mecca of halal food. jeff: the idea that came to me in a restaurant that was a melting pot. somebody mentioned to do notice how popular it is, and i started looking into it. one of the point the guys made, which is the cart you have that expanding into sitdown restaurants, the point they made is that their third franchise location is in costa mesa, california, a long way from downtown new york. scarlet: absolutely. the line for that card is long at lunchtime. i wonder to what extent that people extent -- people embrace

uniqueood because it's and they want be attracted to some endeavors. for the adherents, doesn't make a difference. it makes it easier for arabs and muslims to get the food. i talked topeople were going kosher in the past because it wasn't available. with increased interest, one of the guys i talked to said 80% of the people who are buying his food are not muslim, but it's great for him. he's a big brand at whole foods. matt: what are the main dishes here? some of the signature ways of preparing it. my think of swarm a -- i think of shwarma. and other middle eastern food. jeff: it brings in anything that's considered prepared for halal. food, not just

meat and chicken, it runs the gamut of food. one of the fastest-growing areas as delly -- deli. it's more of a preparation. scarlet: you write about how there's a website that tracks the popping up of always different food options. there are some people on the other side you take that to use and advertise it as these in the places you don't want to go. guy --jeff: the guy loves those people and every time he links to their site, he gets more traffic. is the suspicion of muslim culture that being fostered in some parts of society. a professor said it was the same thing with sauerkraut and hamburgers at the turn-of-the-century during the war. nothing isurger, more american than that now. matt: sauerkraut never really made it. where you think we will see the biggest areas for this to hit

other than new york and detroit? jeff: it seems to be spreading out into any urban area. the kind of places where you see whole food stores. we really know is catching on when you see nestlé and things like that, who have big operations outside the u.s., when they served a push into it, you know it's really happening. at this point, it's growing fast , not insignificant, but still pretty small. scarlet: anywhere with a food truck. matt: jeff green with bloomberg news. scarlet: with supply gluts consisting, the state of the farm economy with secretary of state tom vilsack. this is blizzard. ♪ -- this is bloomberg. ♪

>>'s 2:00 p.m. in new york, 11:00 a.m. in san francisco and 7:00 p.m. in hong kong. i'm david gura.

welcome. we are live in bloomberg world headquarters over new york -- in new york over the next hour. the fed and bank of japan hold policy meetings next week. will either central-bank surprise the market? u.s. agriculture secretary tom between theren and monsanto and how the transaction will impact the economy -- tom vilsack ways in -- tom vilsack weighs in on bayer and monsanto. julie: a bit of a pause after the big gains we had yesterday and is to look ahead to the fed meeting next week as well as to the bank of japan, we are seeing a little bit of a deepening of declines at the moment. as we have been noting all