weakened inton -- a tropical storm fay, triggering record flooding. rescuers are working to learn the full extent of the damage. the 33esident pence says passengers and seven crew members who died when their plane went down in pennsylvania may have saved his life. federal investigators determined they fought against the al qaeda hijackers on 911. the plane crashed before it hit its intended target. >> as long as america endures, we will tell their story. generations of americans will be inspired by the faithful and courageous words and deeds of the heroes. pence, a member of congress at the time, was at the capital when he heard a hijacked plane was headed that way.

he called it the longest five minutes of his life. a warning from brexit secretary davis, who says there could be a chaotic departure from the union. -- rejectsjust accusations the government launched a power grab with a bill that seeks to enshrine the eu law into legislation. the united nations security council is scheduled to vote today on a new water down sanctions resolution against north korea, eliminating u.s. demands to ban all oil imports to the country and freeze international assets of the government and kim jong-un. >> the version on the table is strong. it is a very significant set of additional sanctions on imports into north korea. and other measures as well. it was agreed to yesterday after final negotiations between

the u.s. and china, north korea's ally and main trading partner. global news 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ julia: live from bloomberg's world headquarters in new york. scarlet: i am scarlet fu. joe: i am joe weisenthal. julia: the s&p is heading toward an all-time closing high. carter: what did you miss -- joe: what did you miss? scarlet: hurricane irma may go down as one of the worst storms and florida's history.

russia and china backed the sanctions proposals against north korea. the apple event tomorrow is being billed as one of the biggest events in years. more on the company's latest push for the iphone. julia: let's get straight to our top story. millions afford are without power in the wake of hurricane irma. the storm continues to go through georgia. the cost of total damages has dropped to $49 billion from $200 billion earlier, in terms of estimates. our very own reporter is reporting in palm beach. great to have you with us. explain what kind of damage you have seen. what attempts are being made to get back to some sort of normality? >> this is one of the most exclusive, expensive retail locations in america. it is empty.

m beach is a ghost town. we had to talk to the police and tell them what we were doing, reporting on the damage. they aren't even letting the residents in. we're talking about people like the kock brothers, ken griffin, ken langone, the billionaires who live here in palm beach, as far as their vacation homes are concerned. this is a town with an average medium sales price of almost a million dollars. is the one current we have seen on the road. i am going to wave him through. scarlet: seo it is -- see who it is! people whosee the

run this town have tidied up some of the palms, scattered across the street earlier. we saw a lot worse in orlando. it was supposed to be a two-hour, 43 minute drive. did you have to refuel? >> the hardest thing was finding gas. we had to wait about 45 minutes in line. we were only able to find one station along i-95. least that had gas. there were other folks lined up, trying to get gas. only 87 octane was available. $20, cashed it to only. the irony there is that it was

owned by the venezuelan government. think of the hurricane in florida as floating the administration and venezuela. -- in venezuela. --saw flemings, uprooted floodings, and uprooted palm trees. here,se to tell the story as opposed to that boulevard into palm beach. what thesegine people were hearing as those palms tilted over. downedoned flooding, trees, billboards have been blown out. sayinge authorities anything about the return of power and the return of people to the area? >> as far as this area is concerned, palm beach is trying to tidy things up.

folks were writing down the street on a bicycle. -- riding down the street on a bicycle. some people are getting back on the island. but it is controlled access. police are at every point. it will take weeks to answer your question. i expect palm beach will be up and running far faster than other parts of the state with a tax bracket like this. people will be allowed to return to their homes at least tomorrow in cases like palm beach. our bloomberg editor at large reporting live in palm beach. we'll be checking in with him. ising up, the united nations weighing new sanctions on north korea. we will tell you what options are on the table with the former u.s. ambassador to the u.n. and the former governor of new mexico. from new york, this is bloomberg.

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>> it is time for our stocks of the hour. shares are the most in more than a month. tesla gave extra battery juice to florida drivers in the evacuation zone, they turned on the software to give those cars an extra boost. that is one reason shares are up. they did open to new charging stations, one in chicago, and one in boston. that was probably a big part of this. this is the tailwind. apple is having its best day in

quite a few days. this is a bullish tailwind. >> this story about tesla enabling this tailwind is interesting. it speaks to the future of automobiles, were part of what we own is a service controlled by a centralized company as cars get more autonomous. cool.l: it is also the humanitarian aspects relative to this story. theseer piece is probably -- the supercharger networks. the model 3, the cheaper car coming out, the goal is for half a million cars next year, versus 84,000 cars this year. we can see what this looks like if we hop into the bloomberg and take a look at the financial analysis. the company has put up $12 billion. in 2018, $20.6 billion.

73% growth. it is coming off of this model three. people need to be able to charge their cars. the company has been talking about supermarkets, convenience stores, and you can see that all the numbers trickle off of this. we were talking to morgan stanley -- an analyst on friday about trucking imports. if you were doing long journeys and you have to charge for hours, it is not viable. if you can incorporate supercharging, it would be beneficial. competition,n the gm, of course. let's hop back to the bloomberg. is, this isd dot the end of this year.

in white, teslab. . blue, gm. yellow, vw. by the end of the next year, tesla is on top, with 700,000 cars sold if they hit those targets. gm back here. vw taking over. it is unclear how the trucking market plays into that. tesla is going to be the dominant force if they had those targets. julia: great to have you on. it is time to the bloomberg is this flash. -- bloomberg business flash. holds a 25 percent increase in store traffic in the first few days after the deal closed. jumpedgrocery sales $500,000 in the first week. amazon is hiring hundreds of workers in china to regain

market share from alibaba. 1300 jobs have been posted online. market share in china has been hurt by fears competition fierce competition. united nations security council is scheduled to vote on new sanctions against north korea, as punishment after the nation tested its most powerful nuclear missile. the u.s. is watering down and singin proposal. if even thisnclear would be approved by other members of the un security council. joining us now to talk about these negotiations is someone who is been at the table before. bill richardson is a former u.s. ambassador to the u.n.. he joins us now from massachusetts. thank you for joining us. my first question to you -- do you think this will come down to a vote today? bill: i do.

if not today, tomorrow. i think it would be a watered-down resolution. i don't think we're going to get what we wanted, which is oil exports and imports cut out for holding theirr international assets. we'll probably get away with a compromise, a watered-down version that includes a natural .as, including textile exports significant, but not enough to bring them to their knees. a veryon't support strong resolution that caps off their oil. -- were we have been able to get a strong form of this resolution, what you think it would accomplish? trade goesf all

through china. imports,ff their oil all of their energy relating to oil, is very significant. it means there electricity -- their electricity is dwindling. economic,heir maritime activity -- it is significant. exports, we have given those sanctions. oil would have been significant. north korea has shown it is ready to live with these sanctions, and they continue their missile and new productivity. the answer is diplomacy. julia: this draft also lays out the nuclearization of north korea. you have justng

said and the reactions we have seen from kim jong-un, that is a feasible long-term strategy? what do you think diplomacy should ultimately be targeting if it isn't? recognize thato we need to talk to north korea in some way. but get something in exchange. what we can realistically debt is a freeze on their nuclear activity short-term. and then try to negotiate a demilitarization. -- a denuclearization. that is their biggest negotiating card. veryong-un may be destabilizing and if somebody that is unpredictable, but i think he's suicidal. nk he's -- i don't thi suicidal.

some kind of lessening of economic tension in the peninsula were he negotiates directly with the u.s. is what he wants. nobody knows. i have been there a times, -- eight times, and have negotiated with the regime. he has an endgame. and he is ready to show his cards. we have to be careful and not overreact and not keep talking about preemptive military strikes. some kind of diplomatic deal, and general kelly at the white house, he has brought some order to the national security team on this issue. rhetoric is alarming on both sides. reportingin japan was that north korean foreign officials are meeting with former u.s. officials to start the dialogue. are you hearing anything, and do

you believe, despite all the rhetoric behind the scenes, that talks are being had? -- kimrth koreans jong-un has to send a signal. i remembered negotiating with them on warmbier, the young man who died as a prisoner. i think there are lower-level foreign ministry types that want to see a dialogue, but they have to get approval from kim jong-un and the military forces that run the country. there has to be some kind of a diplomatic breakthrough. i don't think china is the one that is going to pursue this. turmoil for use in the region. even now they have been supporting stronger sanctions, they are not enough to bring

north korea to their knees. is enough -- it is enough to punish them, but not enough to make a difference. a lot of people were expecting that north korea would have fired a missile to mark the anniversary of its founding this weekend. the fact that it didn't, is that a good sign? it is better news than nothing. i recall every holiday, and there was one saturday, the north koreans do something dramatic. they didn't do it. maybe that is good. i wouldn't be surprised if they do some kind of a missile test over the next few days. that is how they usually operate. maybe they are calculating, waiting to see what the u.s. reaction is. i don't think we should seize warlike, andbe

talk so military conscious of a preemptive strike. we should support the south koreans. we are not working well with them and going in different directions. standby japan. -- stand by japan. send a signal we are ready to have some kind of diplomatic negotiations, maybe brokered by angela merkel or the pulp, new actors that are needed. pope, new actors that are needed. joe: how much of the drive to get new weapons is motivated by saddam hussein, those leaders? >> urinalysis is correct. correct.nalysis is once saddam hussein and gaddafi

gave up their weapons, they were destroyed. i think his main message is, this is not going to happen to me. this is why i am going to continue this effort to upgrade my nuclear missile capabilities, maybe hit the united states. eventually, he has to have an endgame. i don't believe he is suicidal. his company will be destroyed, and i think he -- his country will be destroyed, and i think he knows that. waiting for that endgame is going to be difficult, but the way to do it is through diplomacy instead of all of this much he's no, with everyone , withening -- machismo everyone threatening each other and nothing seemed to happen. tinderbox.rea is a julia: great to chat with you.

bill richardson, the former u.s. ambassador to the united nations. coming up next, we have three charts you can't miss. from new york, this is bloomberg. ♪

>> what'd you miss? a big cyber leap for insurers, after irma not being as bad as previously thought. credit.cks the price of an insurance policy against the defaulting companies. reinsurers have a lot of capital. they haven't had to drive down because of the absence of a big storm. there is the relief. julia: i am looking at the relationship between the pickup

we tend to see after storm related activity. the blue line is showing what happens to the 10 year treasury yield, it tends to reduce. , that was the relationship we saw. rates were a lot higher. 2017, we have already seen that higher, despite the consent about how low tenure -- 10- year's already are. do we see 10 years moving lower? vix,i am looking at the the daily net change in the price of the vix. is a histogramde showing the breakdown of the move. -- exactly eight times in the last year have we seen a downward the k-smoove of this magnitude. move of thisd vix

magnitude. scarlet: the market closes next. the major indexes up by better than 1% as we head toward the close. this is bloomberg. ♪

♪ >> "what'd you miss?"

u.s. stocks starting the week higher. i am julia. >> i am joe. >> and i and scarlet fu. >> if you are tuning in on twitter, we like to lock in you to our closing bell coverage. s&pow climbing 22,000, having a record high. gains for all three major indexes. is this relief that hurricane irma was not as bad as expected or that north korea did not fire a missile? >> all 10 sectors within the s&p 500 are higher, led within the financial. the all country world index

which includes developed and emerging markets at a record high. it has been a straight shot of this year. rcent in017 -- 15 pe 2017. of world's biggest makers drugs, they have a new leader. centers anding city equifaxcts -- and continuing to sink 8%. that is a lot of can learn the personal information being hacked of 120 million americans will be something they are paying for for a wild. for a while.

joe: investors breathe a sigh of relief. low as 2.5%. they were talking about irma pushing back the data for the rate hike. let's take a look at the one your chart of the 10 year just yearar chart of the 10 just to put this in perspective. despite the big jump up, we are at the bottom of the year. it as an impact as well. sterling dollar bouncing from a 33 month low. one of the big beneficiaries was the yen. dollar-yen higher than 1.5%.

quickly show you the three-year dollar index chart, that will sense it is on a significant downward trend despite the gains today. bank of england, inflation expected to come above 2%. of sterlingrth decline. loway hitting a four month today. the inflation numbers are on the weaker side. thead the strength of norwegian krone. sensitivity to oil as well. joe: oil gaining about 1% but others selling in commodities. gold futures down 1.5%. sitting with that selloff in the safe haven assets.

cotton falling 3%. cotton and orange juice or two of the crops people were giving up in anticipation of damage from irma. damaging as expected. 66%.ten on a tear of something about china limiting output, heavily mined in china. china limiting its availability and the price has been surging. those are today's market minutes. scarlet: "what'd you miss?" after taking a downtown the failure to introduce more volatility into the market. should we call it a risk on. i have a risk on, risk off index. if we dive into the bloomberg,

yes stocks higher, will fire, treasuries and down -- oil on fire, treasuries down. >> we just made a new high in the s&p 500 futures. on previous high was made august 8 or 9. what happened, nothing happens. north korea was supposed to fire a missile to celebrate, instead they had a big banquet. irma did not cause a lot of damage. there were people affected by that but we're not looking at as bad as we thought in terms of the losses and we are moving on. you look at the bond prices starting to move higher. this big financials crisis going ed downigroup talk third-quarter trading. stock dipped.

no one like that stock going in. this is just getting going. i'm not some guy who is saying by, buy, buy. there's a lot of negativity along institutional investors. they are not happy about the president. they are afraid of north korea. i think we had a lot of deer in the headlights. theyt of folks will going -- are going to get out of the headlights and they are going to start running. joe: what you are describing sounds like the market for years now. people skeptical. goldman had a note, client flipping all these things from valuations to politics to rate

hikes, all these reasons to sell. what would change this story? >> in august 2015 you had the yuan devaluation by the chinese central bank. market started going haywire. we had the big move down. january 2016 we had the move where the boj --there were negative reactions, the yen with the wrong way. we had the selloff. --the end of the selloff let's get some context, -- suddenly every energy stock was going to zero, everyone got negative and everything settled out. there is moves in market as there are moves insecurities. he showed the tungsten chart.

let's see what that does to iron ore and copper. if we get these days where iron ore is moving up and i percent, it is a sign of the function -- percent, it is a sign of good function -- dis function. when we start getting crazy moves in the market, that is what is worrying me area/when you see charts like that. when you see someone saying if au do not own nike you are lunatic. julia: what are the ongoing questions and comments we are seeing. the divergence in value stocks.

we were asking questions in the last 15 days about the spread sales up between 10 year and financials. i saw from your notes that you like financial and you were buying big tech stocks on friday. >> short-term sentiment is the answer. there are times earlier this year when i have been bearish. theyone was buying in on trump bump. i said we are going to see a situation where the yield curve will be compressed. now i feel like everyone is out of the pool. i have macro guys telling me why

don't you go higher and it is 'tat i call the -- why don;t and it is what i call the punctuation affect. ownknee jerk is to financials. as for value versus growth, i think growth has more like to it. growth is scarce. thanks rt, they have viable there are other things to find. if you want growth you have to

own tech stocks, biotech, industrial. julia: great to chat with you. team strategists. coming up tomorrow, an exclusive interview with the goldman sachs president and co-ceo of. it is acting: 30 a.m. eastern time. this is bloomberg. ♪

first wordme for news. officials in georgia say at least one person has been killed as a result of hurricane irma.

the death has been confirmed in worth county. the storm has also been blamed on two deaths in florida. the toll is expected to rise. the trump administration is back at the supreme court, asking justices to endorse enforcement ona straight n-- strict ban refugees. the appellate ruling could take effect as soon as tomorrow and could apply to up to 24,000 refugees. president trump's former strategist says firing fbi director james comey was the biggest mistake in political history. steve bannon said there is no doubt if comey had not been fired there would be no special

counsel investigating the trump campaign's ties with russia. you can see that tomorrow on charlie rose. saudi arabia said it is open to expanding opec's production deal again. the partners agree to keep all options open. the cutback agreement expires next march. the opec producers are trying to trim inventory and reduce prices. this is bloomberg. ♪ "what'd you miss?" the u.s. water down the proposal to punish north korea for its 6th and most powerful nuclear test yet. the security council is expected to vote on the resolution

tonight. what do you think is the minimum they can be achieved tonight in terms of additional sanctions to get russia and china on board? >> we are expecting a vote at 6 p.m. tonight. it is going to a cap on oil and fuel exports to north korea. it is going to increase the ability of nations to freeze the assets of partnership that service north korea -- cargo ships that service north korea. it is not going to include the and it is notorts going to target kim jong-un's assets abroad. chinaknow that russia and need to be convinced to go along with it, what are russia and china's interest when it comes

to north korea? >> china is not interested in clamping down to the point north korea becomes a failed state. the last thing they want on their border is a failed state with nuclear weapons. if the south of control of north korea, they would have u.s. troops on their border. julia: great to chat with you. bloomberg's's team leader for national security. president trump's debt deals with democrats seem to be driving a wedge between republicans and the president. side,g at the negative what about the positive side, could we suggest this will focus republican minds to avoid a

repeat of what we got last week in some kind of substandard, in their view, taxe reform deal. >> take create several legislative days -- it takes several legislative days or they will not have to focus on the debt ceiling. flood insurance is expiring at the end of the month and they have to pass the budget resolution. you have how conservatives who are rumblings they they are not going to -- saying they are not support if they don't know the details. and want to ask about daca the internal republican politics. there's a lot of pressure on each side to get a legislative solution. from a republican, domestic

perspective, there is a lot of reasons why it is hard for republicans to support. >> it is hard for republicans to support. 2018, thatin march is primary season. no one wants to look over their shoulder and be accused of supporting amnesty which is the letter in the world of republican politics -- the sc arlet letter in the world of republican politics. trump will have to make sure these republicans feel protected after passing a rough vote. starting to say nice things about the dreamers promising to do something for them. we saw bigger boehner talking

about immigration -- speaker boehner talking about immigration and nothing happened. julia: what does that political cover look like, steve bannon went on cbs over the weekend and legislationt this would slip the house. hes is makingke the argument for protecting these kids and battling his on base, they call likely it will be that trouble do that -- that trump will do that. julia: we're counting down to apples big lots. this is bloomberg. -- big launch.

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julia: "what'd you miss?" apple's biggest tech event in years is happening tomorrow. joe: you have obviously broken tons of scoops on this new iphone release. what is the number one thing you cannot wait to find out? >> the number one thing i cannot wait to find out is how apple is going to position this potential $1000 price starting point. are they going to say to get

5 dollar aor 44 fiv month. i thought people talking about potential of adding apple music to lessen the burden of that thousand dollar price point. note 7love that mark much of that the only thing is how they frame the price. julia: can apple continue to charge more because they get away with that premium? nothing, if this son is going to sell or not. this fund, no matter how much it costs, apple is not going to be

able to make enough. i think they are its acting people --i think they are expecting people will not buy this phone but i think they are going to claim her over this thing -- clamber over this thing. it will be the story of the year that they will not be able to make enough of these things. apple is only getting 10,000 units across the line which is nothing compared to how many plus of the iphone 8 and 8 are coming off the line in china. scarlet: they're going to be selling three new phones at the same time. and they will be available at the same time? >> all three will be announced together tomorrow. i think they are going to plus andthe 8 and 8 come out with a bang with the

10. month is going to ship a plus.the 8 and 8 it be released in all markets, including china? >> depending on the lot, they diversify. it is going to be a smaller rollout for the 10 phone. countriesly do 7-15 for the opening release date. will china get it? china is one of their top five most important markets, i would be shocked if they were not in china at the same time they were released in the united states. joe: you are going back and forth between calling if the 10 and calling it the x.

how are they going to call it themselves? >> if they call it the x, the iphone x sounds cool. we have the movie xxx or x men apple'sronounces history. os10.ave had mac the history leans towards it being 10 and this is the iphone 10th anniversary. they said there is no way apple would come out with a phone to a knowledge the most important product in the world. the wallpaper is the same as the wallpaper on the first. thank you as always. bloomberg's tv special coverage

of the apple event.

mark: it is time for first word news. continues its march the north. the national weather service cautions the now tropical storm is still capable of producing hurricane force winds. it is moving ever georgia and should be in alabama and tennessee tomorrow. undermage estimate is at $50 billion. 1,day marks 16 years since 9/1 the deadliest terrorist attack on u.s. soil. thousands of survivors, family

members and officials gathered at the world trade center for the calling of the bills -- toiling of the bells and reading of the names to remember. president trump and first lady melania observed a moment of silence at the white house. corker says he is not sure if he will run for election -- reelcetion. he said in a statement today that running for reelection has never been automatic for me. he chairs of the foreign relations committee. he said that president trump has not demonstrated the stability or confidence he needs to demonstrate to be successful. mexican authorities say the massive earthquake that

devastated the southern part of the country last week killed at least 90 people. it damaged or destroyed hundreds of homes and schools. dayal news 24 hours a powered by more than 27 journalists and analysts in more than 120 countries. this is bloomberg. ♪ julia: thank you. scarlet: let's get a recap of today's market action. the s&p 500 at its first record high in under a month. all the major indexes gaining more than 1%. things could have gone a lot worse. we see the markets surging. not to take away what people have suffered from these hurricanes. irma is a tropical storm bud it does remain a threat as it moves through florida into georgia.

it's driving wall of water and winds submerged miami. we spoke about the response to irma. >> fema has a lot of resources. the locals are the first responders. what did not happen in katrina and what happened in texas and here, the communications were o n. it has been remarkable. we made a lot of changes after katrina to fix some of the problems. well.re still working we have a great female administrator in brought along -- in brock long. right now in florida, it is

going to be a supply issue. i am in my home, we have no power, all my trees are down. we're trying to clean the mess up and get back to normal. the real issue is going to be in texas with the house. issue in huge housing texas. joe: give us a sense of the logistical difficulty in housing all the people, providing food, providing water, providing supplies for the long-term relief effort? >> right now people are in shelters. they cannot stay there very long. it is not a very nice place to stay. it is good for about three days. all around houston in texas

there are a lot of major cities they can move people to. state emergency manager, he is helping people in oklahoma. a small percentage of people had flood insurance. people are going to be financially strained. they may not have the wherewithal to rebuild their homes. those are people who are going to have a tough time. julia: how long do you anticipate that t-mobile be involved -- that fema will be involved? >> it is going to be a wild, especially when you have infrastructure damage. people will be involved for a long period of time. they will stay with the state

and locals to make sure they have everything the way it needs to be. we need to look at building codes. florida, we here in changed our building codes. we're not going to see the structural damage. we have to look carefully. what do we do to incentivize states so we are not good building -- so we are not rebuilding the same house over and over again. reminder,rogramming tune in tomorrow morning, we had an exclusive interview with harvey schwartz, goldman sachs president and coo. this is bloomberg. ♪

joe: "what'd you miss?" one of the key factors driving a nation's inflation rate is its population. that is an idea that toward by and senior economist at moody analytics. adam, thank you for joining us. tell us, what is the relationship between population growth and inflation and what caused you to look down this route? >> thanks for having me, the relationship is not necessarily obvious because growing population means more supply as well as demand. whether that translates to greater inflation has a lot to

do with how responsive various parts of the economy are. my suspicion was population growth was inflationary and this operated through the housing market. that is what i investigated. looking at the housing market as a channel through which faster population growth would be higher inflationary. populationory, more will grow. it seems like that will have a natural inflationary impulse. that is a greater supply of workers which would be deflationary. explain to us why the greater demand for housing drive for the whole general inflation. differentkes housing is how unresponsive supply can

be in the short run. some of this is natural constraints. you can only build so many houses at one and some of this is regulatory constraint. it is tough to get the permit and go through the process is to build new houses. in some cities this is especially severe because of zoning restrictions, it is hard to build enough houses to keep up with demand. because of these constraints, because supply cannot immediately respond, housing, when demand goes up, can trigger increase in prices and those prices can trigger inflation. housing is lessers wanted to change in demand because if population fall you are not going to tear down they can housing stock. it is going to sit there and slowly depreciate.

housing is less likely to change demand because if population falls you are not going to tear down housing stock. joe: the most famous example of a country that seems to fit what you are talking about is japan, which is famous for its lack of inflation and lack of population growth. >> it makes you wonder, is it a cool incidents. if the population falling in japan at the same time they seem to be unable to generate inflation? if you just picture the economy and picture there are fewer and fewer people every year and the number of houses is not going down, that is obvious how it

could trigger deflationary pressures. other research has looked at prefecture level data which is states equivalent to and they found in the places where population growth is lowest, you are seeing the greatest deflationary pressures. this is pretty intuitive. a pretty intuitive explanation of why inflation is so stubbornly low. joe: in the u.s. we talk about the national level of inflation. how granular can we get inflation data from the u.s. in terms of region and cities? what specific regions and cities u.s. demonstrate the point you are making? >> in the u.s., the bureau of labor statistics tracks inflation for a number of

cities. that data goes back a far time for some of these places. we have about 23 metro areas where we can go back reasonably far. if you look at the data, not even do any complicated statistical analysis, if you look at the data for detroit and the data for new york, dallas, and you see population growth versus inflation, you can see a relationship jumped out visually in these areas. the two examples i show our denver and detroit. years when population growth is faster than u.s. population growth, inflation is also. the fact that this is visually true in the data with two cities with different population is very telling. joe: is the implication of your

lessthat we should put pressure on the said to meet an arbitrary target? >> it is harder for the fed to me that arbitrary target than they think it is. you see people wondering why inflation is this a really low. people are looking everywhere for headwinds keeping it down. they should consider week akpulation growth -- we population growth as one of those headwinds. joe: senior economist at moody's analytics, thank you so much for joining. still ahead, more on the electric car report we are seeing. next. from new york, this is bloomberg. ♪

julia: "what'd you miss?" willn giant volksawagen install electric versions of all 300 models in the group's f leet. is very robust financially speaking, you do not have to worry, we have the necessary wherewithal to implement power plants. we are making investments every year. we are making profits. we are going to make the money we need. >> do you still feel the need to

selloff certain units if there is possibility of a sale of ducati? is that all still necessary to this plan? >> i have been reading about this in the newspaper, sometimes i don't understand this ongoing discussion. the most important have is to think about our product portfolio on an ongoing basis and ask myself if we are properly position for the future. we are relaxed about this and if and when decisions need to be made in terms of an acquisition or sale, then we will talk about it openly. >> you say in the press release today that you plan on an electrified version of each of the 300 models in your portfolio. will we see a good electric

ducati monster or superbike? >> you have to ask ducati. to answer your question, volksawagen has learned from the past and over the last few years we understand what people want from sustainable mobility. hima selfp e is commitment -- is a self commitment. have set a goal of 2025 to 80 cuddly electric and 30 hybrid 3080 totally electric and hybrid. in germany, i do not see many electric charging stations. in the u.s., there is a lot of work to be done. >> you are right.

the world is not just germany. germany, we do not have the maybeinfrastructure and we can say the offering is bigger than the existing charging infrastructure. we have to strike a balance between the product offering and infrastructure. in europe, there are countries that have a lot more charging station than germany. we are a global company. we want to offer our drivers the entire world and that is what we will do. >> are the regions that are ahead of this, in china, do you see quicker movement towards the electrified infrastructure? >> that seems to be the case as things stand at the moment.

taken right decisions are , we are taking note of that, we are preparing for the situation and we are going to offer electrified products in china when the time is right. >> the focus is going to be on electric and at least some of the investment is taken away from other areas. small diesel engines. fals seen the value of them l and the value of used cars. will we see only large diesel offerings for volkswagen in the future? as diesels are concerned, the exhaust gas willment of a small diesel and i doophisticated not think customers are going to

like this. when it comes to larger, more powerful diesel engines, we aink that the diesel is transistor technology to 100% electability. >> do think the diesel prices in germany will pass after the election? >> i would hope that the basedsion become more tax going forward. we want to make our contribution. we are making investments into the future. on, forabout the focus example, whether or not you are going to sell things off, talking about the unions fighting on that.

is the october election more important than the september election? >> you are addressing the topic and the situation is the saxony doeslower not have an impact on what we are going to do. we're going to work with the next prime minister as we did with the last private. --last prime minister. scarlet: it is now time for the bloomberg business flash. they say png should incorporate brand with more emotion. ofis the 6th biggest manager p&g.

>> china is alerting automakers that it will phase out nonelectric cars. china has vowed to cap is carbon emissions by the year 2030. customers can try on clothing at not merchandise shops. that is your business flash has update. coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

scarlet: "what'd you miss?" the s&p 500 at a new record high the first time in months.

coming up, the un security council votes on whether or not to impose tighter sanctions on north korea. joe: i will be watching goldman sachs. ourr president talks with correspondent at 10:30 a.m. eastern. julia: don't miss this, apple unveils its new products including the new iphone. that's in cupertino, california. we will have a special program at 1:00 p.m. tomorrow. scarlet:

emma: i am emma chandra in new york and you are watching "bloomberg technology." downgraded to a tropical storm but still caused significant damage.

it crossed into georgia where it produced storm surges with south carolina. georgiapeople in without electricity. in florida, more than 6 million were without power. officials in georgia say at least one person has been killed as a result of irma. irma has been blamed for two deaths in florida. rise.ll is expected to the u.k. has defended its response to irma. they have dispatched troops to islands in the caribbean. opposition politicians compared the british response to french which sent minimum thousand troops and had two forgets in position ahead of the storm. today marks 16 years since the soil.iest attack on u.s.