ambassador rice calls the sanctions illegal and unlawful. he says it is -- they are part of the u.s. passes evil intentions to strangle korea. russia and china on board. neither would support an oral embargo or the u.n.'s most senior official on disarmament test and bynuclear north korea is a violation of global norms and the security council passes united stance in taking measures yesterday to curb the north's behavior is crucial to international peace and security. hear, known i could as asking for any collapse. craig -- quite the contrary. talking about regime change. quite the contrary, i have messages stated by all of those countries concerned that is not their intentions. >> the british prime minister has asked president trump to intervene in a court dispute

between boeing and canada's -- to protect jobs out of a plant in northern island. the government relies on both -- both parties to pass legislation. boeing wants the u.s. to impose tariffs on planes. the united nations says the number of refugees fleeing the about 370as spiked to thousand. the official estimate today is more than 50,000 higher than yesterday's. thousands of muslims denied .itizenship have fled on foot the u.s. has condemned the violence in the u.n. says flights have been arriving at nearby nations with supplies. global news -- global news 24 hours a day powered by more than 2700 journalists and analysts in more

than 120 countries. i am mark crumpton. this is bloomberg. ♪ >> we're 30 minutes on the close of trading. stocks continuing to act at records. the s&p just shy. >> the question is whether you miss? >> introducing the iphone 10. tim cook and company betting that consumers will line up for a $1000 -- something else anticipated, in turn around strategy for goldman's trading business. the president and co-ceo explains. if you are wondering is -- why amazon has a can of been in your shopping cart, it has become a supermarket.

>> what did you miss? omaha -- all eyes were on apple for the biggest product launch in a decade. here is tim cook when speaking about the iphone 10. tim: iphone 10, the most vast iphone we ever made. incredible new design, true depth camera system and the more powerful technologies than we ever put in an iphone before. it really is the future of the smartphone. more, principal analyst at forrester research joins us now. great to have you on the show. as far as leaks concerning these products, we have pretty much all the details. more announcements particularly on the iphone 10. there were ahink lot of surprises given the rumors in the market. certainly bringing out first, it was a head fake.

coming.new it was joe: in terms of sales, obviously every time a throw to new thing and they have a big number, are people going to pay for it, how confident are you that this will be a big hit? >> i think it will be a big hit. we question this every time they, with the device and the price goes up. i do not think consumers have to have the next technology today, but by the time the price comes down, consumers are very ready. i think we will see good sales in this holiday season in the next couple of years as well. joe: one thing people's attention, the use of facial interaction, the fastow unlock. the face manipulation features. is this the start of something new about how people interact with mobile devices? >> it is easier to unlock the

device through facial recognition as opposed to pick up the phone and touching it. i think we are a new and fun and innovative way for people to communicate with one another. will have a lot of fun with the camera. i think people will buy this just for the capability to do portrait selfies alone. >> all the details everyone is excited about are on the iphone 10. be just the latest iteration of the existing iphone. does this mean the iphone 10 will be the new standard that will need to be updated every cycle? >> i think it will be like previous cycles where consumers are updating their phones about every two years. i think we are still going to continue to see the trend. look at another big announcement, putting the artificial intelligence chip into the phone. the screen is bigger, it is brighter, and all of that will appeal to consumers. what i think consumers will appreciate this with the ai does

for them. changes will be subtle and will happen over time but we will back and we want not noticed today but we will look back and say cannot believe it was so into mania two years ago. it is such a better experience today. >> a lot of focus is on how the phone is adapted to augment reality on the focus that the company itself is putting on that in particular. they talked around that with snapchat and the work they have .een doing here what did you make of that? is this a pivot point for apple in terms of the augmented reality offering? >> i think i'm the one hand, we could debate who is further ahead but doing so helps apple keep pace with facebook and google and other big giants here on the west coast. i think what we saw was what was expected. how we communicate with friends and family, and it is essential platform for apple and to attract those developers in that revenue, so to speak. and it will be interesting if it

is in more media gaming and communication. not just the iphone. but the reveal of the new apple watch. let's listen to what was said about that. >> last year, we told you the apple watch had already become the number two watch in the world. today, i am thrilled to tell you, the apple watch is now the number one watch in the world. [applause] >> the number one in its market. the latest version will have its cellular connection i will not be tethered to the iphone. do you wonder whether the new generation of apple watch will displace some demand for smartphones or iphones? i do not know it will displace demand for smartphones but it will help apple make the case that it is not just a luxury item or nice to have but something that is more essential.

i believe what apple is doing is building on a strength, as the watch, the fitness and health care device, but when they do things like unlock or untethered it from the phone, the voice is better come we can stream music, communicate on the device and we are starting to see killer applications the watch will have to have for this to become eddie -- a device that is essential for me and not just a device to have to that will help drive sales. joe: it still feels like there are watch people and people not watch people, who may not be inclined to wear an apple watch. that i maygesting have to get an apple watch at some point, though i am not inclined to where the apple watch at all. >> especially with the watch, it is something to experience. when you're listening to music, it becomes my identity device. out paying for things, on a jog, i can pay for stuff on the way home without taking it with me. it is a magical expense.

they upgraded the apple tv. will they make a stronger play for the so-called connected home? right now, a lot of anxiety about amazon running away with this area. how competitive and how much is apple really out fighting back there? >> so i think it does help with that. if we look at where apple sales come from, it is still primarily iphones. the future growth will depend to some extent on the products for the ecosystem. things like the tv on the watch all help but we look forward and apple is more dependent on the ecosystem of partners and for services as well. it is much more compelling for me as a consumer to pay $20 for myic if it is on my watch, tv, my home pot, other devices at home.

>> what about content generation here from app? can we just set that aside given all the announcements we had particularly on the hard where front? that will be critical. absolutelyis crippled -- critical to a great experience i have with the devices. i agree with you. i think what we did here today is live sports. it is the thing everyone points to. we thought, why can't i cut the cord. it is live sports. we do not have to have a cable subscription to get live sports. also the offer of a 80 movies and tv just ok is a generous one. >> thanks to julie, and spoke analyst and the latest on apple from california. coming up, mexico's premise or says the company will likely expand the largest annual oil hedge next year.

in an exclusive interview with jose coming up next. this is bloomberg. ♪

scarlet: mexico will expanded 2018 according to the finance minister. it does this with a small group of investment banks each year in what is considered wall street's's largest and most secretive annual hedge. meeting in new york today to speak with investors, he met exclusively with our investor bureau chief. basically just a couple. it is something we have issued for the last almost 16 years now.

given that now, that location, it is a natural consequence, in a concept, we can review jointly with the market, with the world bank. both location and magnitude actually trigger the bond which would be a payment to mexico. of the epicenter. information will be undercover. and in our territory, that would be covered as well. >> so you are helpful. >> we are purity call out both, fors important recordkeeping, and now that we actually have an impact, one needs to look at the numbers more carefully, and that is why we put in what the market would have, discerning whether or not the chigger is therefore met.

it would be the second time we used it. we've -- the her can also trigger the catastrophic -- our picture in terms of dealing with disasters in mexico, because it adds an element with insurance, and therefore the is to facey year these disasters are from a financial perspective, mexico as well set. our riske manage disaster contingencies. >> another reason every year, mesko's finances, you to one of the biggest commodity hedges and the planet. are you almost done with doing the program for 2018 and what kind can you share? >> there are three elements to that, a buffer in the economic

package. first is the fact that more and more, we use the information to set the limit that would put forth to congress. that provides a certain level of certainty. 46, roughly where futures would have the price on average last year. that gives us an element of certainty. another is relatively recent. we established within the budget have a fundus to that is there in case of the budgetary income. pesos.180 billion it is a good amount to have. it allows us more flexibility when we access the market in terms of prices to look at so the combination of the two, we're ing the market,

the process of finishing the program. the combination of the fund. it puts it in the budget. the set program, 81st -- 80%, 95. >> it is a large program. once we do it every year, when completely done, we'll get the full details but we fire it off so we are confident in saying $46 coverage, have good support. years,ared to previous one thing that is different for mexico now is gasoline prices are liberalized. imply you have to increase a little bit the volume

that you have to protect your rates? there is that element to it in terms of looking at how much we would cover, but both because the platform is smaller, to what we saw on the past, the degree old revenuesely on is that much decreased. it sensitivity to the price, has been reduced. inis to be marginally higher terms of the fact that we don't have the natural coverage be used to have because now our energy balance is pretty much in tune with we almost export as much as we import. it is also true the margin to exposed to the price of oil has been dramatically reduced as well. in 2012, about 37% of revenues

were related. the number went down to 16. beh those factors, it would right to assume the cause was lower than the previous year. again,milar amount, but at this stage, i think from the , 46pective of the debate seems reasonable mostly because we are able to cover it well in the market fund, and it is very much in tune with what the market expected. was a mess can finance mr. speaking exclusively to bloomberg in new york. >> time for a look at some of the biggest business stories in the news right now. j.p. morgan chase, the chief executive officer jamie dimon spoke at an investor conference in new york today. he highlighted bitcoin. >> you cannot have a business

where people can invent a currency out of thin air and think people buying it are really smart. it is worse than -- it will not end well. >> the currency he says is a fraud. has grown fourfold over the past year. closer multimillion dollar deal with airlines, according to the malaysian prime minister who met with president trump today. , 73ncludes 787 dreamliner's seven mock 10 jets and general electric engines. dealdent trump said the could range between 10 billion and $20 billion. crash killedida the florida navy seal. the safety board determined that tesla allowed the driver to use a system on a road it was not designed for. the board recommended they restrict systems not applicable.

that is your bloomberg business flash. scarlet: later today, do not miss an exclusive interview with the show -- with the founder and chairman of hedge fund a mega-advisors. like asia on dave's beginning at 7:00 p.m. new york time at 7:00 a.m. in hong kong. from new york, this is bloomberg. ♪

scarlet: when picking stocks, go big or go home according to oppenheimer funds with equity strategy team. the lead equity strategist said they are set to extend years of gains relative to small caps. the chart shows the ratio between the s&p 500 and the brussels 2000, a small cap -- mark. since his 30 year low in march of 2014, you can see the ratio has recovered about 13% through the end of last week. the ralliesclearly,

last a number of years. there is still more room to go. the hit -- if history is any indication, the current wave of it cap outperformance could last at least two more years. how thest looking at index has done so far this year. about 11%. russell is gaining by 5%. you have seen the boost but it will continue. >> interesting and relative to what we have seen, a significant upside potential there. what about what is going on in europe? despiteseen a selloff all of the optimism we saw a earlier in the year. relationship we have seen, pretty much in the reflation trade, the light wind is showing you what is going on with the european cyclicals here versus defensive. you can see the relative outperformance is 77th percentage points here today. a blue line is showing you what is going on with the generic 10 year yield. despite the part we saw earlier

this year, you can see pretty much flatlined since december of the back end of last year. a number of analysts are coming out and saying we continue to see the cyclicals outperforming here. watch the autos, which amuses me because if we look at what mario he suddenly pushes back on suggesting they have given any clarity at least until december on the retracting qe, but also the strength of the euro we have seen is also a factor and inflation expectations are below where they were when they announced qe. >> it is a great chart and of course similar to the u.s. where there are a lot of reasons to think yields would have been hired where they are the same in germany. you look at that outperformance. it is not as intuitive why rates are as low as they are. here is something that could theoretically be a precursor to hire rates this morning. business optimism survey. it is one of my favorite

economic releases where they ask small businesses all kinds of questions about the economy. check out the white line. they asked them, are you planning on doing more capital expenditures? the percentage of small businesses who say they are, 32%, the highest since 2006. so long in this recovery, people have asked where is the is this investment. there you have it here the blue line, we of course they do see the survey turned chart numbers but the headline small business optimism. right after the election. people in the survey tend to be more conservative, and they were excited donald trump one. -- won. on taxes orlan anything specific, the optimism boost of small business leaders that we saw after the election has held up. interesting stuff with the survey. tommy's to say it was really an optimist -- a pessimism

index. even with that, expenditure plans actually rising. even if optimism is not chaining -- changing, expenditures are. it is fascinating. scarlet: minimum games for record highs for the dow and the s&p. ♪

♪

"what'd you miss?" u.s. stocks rally and cross the board for the s&p 500, record highs. apple shares -- the finally reveal a new product. >> some joe weisenthal. onyou are tuning in live twitter, we want to welcome you to our closing bell coverage every weekday. we begin with our market minutes. s&p 500 index on record highs. quiteg in on 2500, not there yet. quite not as big -- not quite as heir yesterday -- crocs some followthrough. this unveiled an eight s or eight plus, i should say, and the 10. as this has now become known. is -- at the start

of tim cook's recognition for apple overall. then they finish down on 4/10 of 1%. down a bit in anticipation of by phone product launch. something else to keep you posted on, energy. had rallied big time able to cut thinking it would be a supplier there are supporting an open wireless charging center . they're still trying to get clarity on this. for now people pulling back on this. >> another big thing -- crocs enough you necessarily need to buy apple -- we should also highlight mcdonald's, better than this

percent. crocs texas will have a better result this quarter. there is also concern from different research reports that perhaps their sales may stumble a little bit here. >> let's look at the government bond market. to --up, 10 year yield continues to come up. friday was a 2.05 on the 10 year. now up to 2.17%. in the grand scheme of things, this is incredibly low. shinzo abe says it's important for people to target 2% inflation. we'll talk about austrian debt -- ticking higher nicely. today coming out with a century model. aey said they might have model that will pay off in the -- you see the 10

year there. >> what was the yield on that? >> forgot to look it up. > oh no! >> believe it or not, people aren't demanding into much. >> suits going on in the currency -- i want to show you what's going on in sterling as well. and inflation data -- talking about this yesterday. certainly in the last 15 months, feeding into something else -- we have obviously had people today ranting about that coin. the bank of merrill lynch also sang that this is the most crowded trade in the financial markets. there's lots of increases this year. in gold you how much

you have to buy one bitcoin in this chart. let's move on. this with me while i pull one up and try to be organized today. this is looking at china. there been a three-day decline. 7% over the last three days. doesn't sound very exciting but what you are seeing in that they wanted stability ahead of the communist party meeting -- this fall. they have removed the 20% reserve for training at the current form, so that makes it less expensive. that's one to watch. you can see that. you think there's a pickup gain in dollar-one in the last few days -- there is a gain in the last two days. >> this one gaining under one half of a percent. gold flats on the day.

constant of course one of the commodities, potentially going to be affected by irma. coming up another 4%. i looked on the austrian 100 year bond. and to lock up your money monitored for 100 years. one of bloomberg's vehicle one of bloomberg's employees said, this is pretty remarkable. >> "what'd you miss?" risky assets continue to get a paid up. let's get a breakdown of today market moves with oliver renick. technology or art -- technology's norton are the top or bottom of this -- this one is near 10th of 1%. >> this should put to bed all concerns for investors and strategists who say, the only reason the stock market is up is because of this.

that has been disproven. i think what's actually happening is a continuation of working throughout this year. the fact -- past five days has been helping material financials. this is a trade, it is come back on. if you look at the market, seems like there was a brief pause. investors weighed all these risks that were overhanging for some time. they're in general flows leaving stocks. --. equities had been left and into the rest of the world, continuing to have this. there were buyers -- >> talk to us about plans. we were talking about this a few weeks ago, everyone suggesting that when you have this pushing 2-0, we were like, why are they defying gravity here? there is that divergence that we were talking about for 10 year

yields in particular. financials are defying gravity. >> defying gravity has been the story since the election. we pointed this out back in march when the gridlock in the sea was not going anywhere. trump was getting off to a rough >> bank of america, jp morgan -- a lot of these despite this part, despite the fact that the ceo cleared it. this basically said that we will expect lower things in the third-quarter yield year. the market still picked up perhaps from higher changes. >> speaking of defying gravity, massive curves and's the start of the year have not heard banks at all. the last few days -- obviously yesterday was a big risk on move day a little it.

let's hope it's still a continuation. isn't just a story about relief? or is it something more going on? oliver: let me just a few of those points with charts. this one is the reticence on behalf of investors in the market. i'm looking at the total put open interest before call open interest ratio. amusing ratio a nap -- analysis on bloomberg grr . basically, there are more investors interested in this part. ,ou take this back five years this is the one we have seen in 2015, that ratio heading investors, all trying to get a little bit of protection on the downside. you look at the downside market obviously, that's not the case. there is willingness to jump back in. investors come back -- let's come back into the terminal. particular, they are not going chart -- a lot of different stocks, they are lying stocks

that are growing. here's the relationship, a story here. stuff is always overplayed apparently, and to an extent it probably is. --re's a big groep between gap between growth and falling stocks here though. it's pretty astounding. the ranchers incredible. i think investors come to the market for one reason: they need this to return and they can't get it anywhere else. thehe past five days gosar ones that have been gaining. lexus's office entry bond. >> talk to us a little bit about the short positioning here. >> it has been a pretty interesting ride. what's the best way to characterize the chart -- the well, in the markets high, you see some sort stocks go down. that's what we see here.

-- some short stocks go down. this one corrected as the markets slowed down last month. this is a normalized chart right here. this means that a short stock is dutch s&pe us and the 500 index. not a great story for some of these companies, despite a few moments throughout this year in which it has paid off. ofht now it's just a matter shortening the us stocks, but also, when it comes down to it, companies, people that would pay for them. >> as always oliver renick, thank you. >> coming up, all eyes on cupertino state to see what apple's future products have in store. does the launch live up to the hype, and what will happen in the future? we will discuss this next.

from new york, this is bloomberg. ♪

mark: the death toll from irma continues to grow. five people were killed in florida. this deputy died in a head-on collision. died when arter tree fell on top of her. deathsh carolina, four have been reported which includes a city public employee. president trump is expected to visit florida on thursday.

warning that als southeastern u.s. could face food shortages because of hurricane harvey and irma. they will help distribute fuel. meanwhile, people have started returning to the floor -- upper florida keys. an entire region is still lacking water for the most part. overall, more than 12 million people still do not have electricity. john mccain will continue with radiation and chemotherapy. the arizona republican's office says the added an item yesterday -- is a national institute of health than maryland, where he is still receiving treatment. this slows cancer diagnosis in july. the national transportation safety board is saying drivers can't simply -- turn the wheel

over with driver control systems of cars on the market today. chairman says today's automation systems would automate rather than replace human drivers. this meeting was likely to cause -- a fatal crash last year -- driverless car. global news 24 hours a day, powered by more than 2700 journalists and analysts, in more than 120 countries. i'm mark crumpton this is bloomberg. >> "what'd you miss?" apple unveiled its most important new iphone four years to take on competition from the likes of samsung, google, and of chinese-- a host smartphone makers. how's the company set up for the future? let's bring in emily chang, live samples -- life at apple's new campus. great to have you on the show. clearly, a 10 year anniversary is critical. look back at the past, how did

how do step -- cognitive -- did they decide to step this up?> >. the steve jobs theatre of course, named after the cofounder of apple. they opened with an audio recording of steve jobs, talking about why making wonderful products and sharing them with the world is important. iphoneey unveiled the 10, spelt iphone x, but iphone 10. it is of course, the most significant products want for apple potentially in a decade. analysts are expecting it will be the biggest upgrade cycle ever, even though they face headwinds around the world. of course, samsung is the biggest cell phone marker by shipment, another one surpassed apple. even though -- analysts are optimistic about how the iphone will sell. i ran into gene munster, who

thinks it will be a home run. certainly, this iphone will set the stage for technological developments over the next again. take a listen to tim cook. >> the first iphone generation of the technology. to change the world in the process. now, desk it changed the world in the process. -- we are here in this place productday to reveal a that will set path for technology, for the next decade. >> quite to build up of course. when you look at the features of the iphone 10, the better screen individuals -- there's no longer a home button, because you can use your face to open the phone. ita: and it comes -- emily: like touchace, much

id did with your fingerprint. essentially, it knows who you recognize you in the dark, what in a phone. if you're relying on the table, it knows where you are. apple said there is a one in a million chance that someone who is not you would be able to alock your phone, compared to one in 50,000 chance with the fingerprint. 10s person until the iphone -- take a listen to what he has to say. >> the first iphone, we led the way with multitouch. this protected the iphone from turning on when you didn't want to. -- this with iphone 5s .inute fast and easy it's a tricky the gold standard for biometric detection. we know this would do something that's better.

lockedone 10, iphone is until you look at it and it recognizes you. natural. we call this, faye's id. >> i did get my hands on an iphone 10. it's lighter, smaller. if you are loosed to a larger -- onephone, it's larger of the standout features to me is that it has all of this, so you don't have to there was mark, whatever you are looking at. this id, it will be interesting to see how it works. this got a little bit confused, when we were passing the phone back and forth. excited to see attached >> of course, this being the 10 year anniversary of the phone, a lot of this pointed at the fact that this took place in the steve jobs auditorium, the people went into for the first time. how's the influence felt over this event?

of all, the theaters breathtaking. they're suspending elevators, every single details meticulously sought out. this opened with quote of steve jobs. stage talk about him on he got choked up. they talked about the impact of today. take a listen to what tim had to say. christmas day that goes by that we don't think about him. memories have especially come foring back as we prepared today and this event. , but weaken some time can now reflect on him with joy instead of sadness. >> much of today was about honoring steve, his life -- wife

learning how jobs was in the audience. on the other hand is a fresh start here on this new campus, new theater. perhaps apple moving on, for what would steve do -- new decade for the iphone. are thanks to bloomberg technology, emily chang reporting from cupertino, california. this is bloomberg. ♪

>> "what'd you miss?" strategy -- they deliver details on their strategy. a today's presentation was response to investors who were saying two things. what's this strategy, what's happening? on growth, we outlined a broad

series of initiatives identified by $5 billion. within that discussion, we spent a fair bit of time talking about fixed income. taking resources out of the business -- we identified $1 billion for growth opportunity as part of our collective strategy. >> you're looking at $1 billion fixed revenue. doesn't sound like that much. >> one thing core to the we made a series of assumptions. one critical assumption is the environment doesn't change. >> not a lowball -- >> for the environment, nothing changes. with all that was a way to provide our investors with maximum clarity about the impact. we went through business by

states specifically, but also banking, our markets class form, and identify revenue opportunities across the next few years and saying it totaled $5 billion. currently, these are achievable because they grow our client footprints. this has all been underway in this planning for this. >> i have a hard time are we going to have to be having -- maybe a different conversation. navigating that environment for years, now you will return in that environment. one of the things we went through is, the difference between us and large universal banks, some of the differences are quite obvious. again, the underlying assumption is the environment doesn't change. million that $600

allows us, as you grow market share, to drive revenues. how's that built? what specific client plans. as we talk about, we are number one with hedge funds, number three with asset managers. we can provide lots of value to our clients. >> when getting at is, other banks have ready-made those changes. i'm thinking of morgan stanley in particular of course. they had you guys in terms of trading -- and the question but they also navigating that new environment and taking on new risk? >> morgan stanley is a great firm. don't have any insight into what they are doing. i can only talk about what we're doing as a third. if you step back -- we talk about these of the presentation -- you can go through dramatic growth in 2009. market share peak at 19%. industry revenues have

essentially been cut in half. our response to that decline was two things. the risk-weighted assets -- we were able to do that during that decline. what that enabled us to do was reallocate capital across the firm. we also returned 35 billion dollars to shareholders. that's 30% of our market price. will we created was tremendous offering leverage. if i had to billion dollars of revenue i would share those with you, but the $1 billion without operating leverage -- leverage as part of the $5 billion is quite significant. >> that was goldman sachs president harvey schwartz. another big interview later today, leon cooperman will be

joining us at 7:00 p.m. eastern time. ♪ ♪

>> mark: i now for first word news. the trump administration has to end daca, the program for the for it at -- this action. the white house legislative director says principles for the tax overhaul will be announced in days, not weeks. priorities for daca are set to be within the next couple of weeks. president trump have a six-month deadline for -- to address the issue. to china int look november as the square and the poor -- korean peninsula due to pyongyang's nuclear and missile tests, according to a person

familiar with the president plans. the chinese president xi jinping invited president trump to a state visit to china when the two leaders met for the first time. president trump has repeatedly called on china to stop north korea -- and seven july it could quote, easily end the crisis. in paris today, protesters took to the street to protest emmanuel macron's proposed changes to france's labor law. he says this will make it easier to hire and fire workers. demonstrators claim it gives him to powers for workers -- and assess different unions. hundreds of people crowded into a new york city bookstore to see hillary clinton. she is promoting her new book about the 2016 campaign. -- offer public remarks, but signed copies.

she criticizes president and lays out some of the factors she believed contributed to her loss. global news 24 hours a day, powered by more than 2700 journalists and analysts, in more than 120 countries. i'm mark crumpton, this is bloomberg. >> let's recap today's market that down mt. 22,118, appear as well. joe, i'm looking around numbers -- >> so close. nearly 2500. unprecedented move. >> a quick check on nordstrom in after-hours trade. that theeporting families behind nordstrom -- a private equity firm. report,g to this leonard green would provide $1 billion for equities.

9% right now. >> affects data breach has demands on capitol hill. this is somewhat financial companies must do to have a cyberattacks. trump administration wants to renew final -- financial regulations, not strain them. financial relations covered from bloomberg, she joins us now. great to have you on the show. what's the reaction from capitol hill been like? what's the probability of a hearing here? makers have seized on the aqua fax data breach to highlight a whole range of policy issues. one of the comments were this has emerged -- emerged is more rules and regulation. that's for cybersecurity and whether or not there need to be better standards. there's also an issue of regulation of the credit agencies themselves, and whether

or not there should be war more watchdogs looking over and monitoring them. things up an interesting you see, the idea of more rules and regulations. with the agenda the trump administration has been pushing as well as lawmakers on deregulation -- and slashing rule. what's the current state of regulation? is there a carfax regulator? what are the laws governing this? >> great question, one a lot of people have been trying to understand. there's only one agency that facts and a core other credit agencies, that's the consumer financial protection bureau. compared to a bank that has examiners from the fed and other regulators, watching over their is -- at a credit agency. however, this also has authority

to step in and go after companies. >> we know a carfax has byponded to the data breach giving consumers the ability whether to check they have been affected, then offer free credit monitoring for a year. what has been the reaction in washington for the response on the company? >> there's been quite a bit of backlash, certainly because of how they have done it. when consumers went to that freak credit monitoring service, but they find as they waived the right to join a class action lawsuit, or at least they did. that was something that sparked outrage, particularly from democrats here on capitol hill. this leads to question more broadly about republicans efforts to change in arbitration rule announced back in july. this would curb mandatory

arbitrations, and make it easier to -- sue their bank. that's something lawmakers have a limited window, if they wanted to pass legislation. to make this a lot more difficult. >> thank you so much, reporting from capitol hill. coming up, and some has been in's conference for life. how is it doing well in a brick-and-mortar space? online advertising and marketing here. will discuss. this is bloomberg. ♪

>> breaking news. amazon is said to consider boston as it looks for a second

headquarters. unveiled plansn to open up a new second headquarters and basically invited state and local governments. >> never before has there been anything like this. thejor company -- headquarters will cost $5 billion. they do have an association for this. they purchased a local robot -- they would keep the systems back in 2012. they do have infrastructure there, which would give them some experience in the region. >> it's not a lot, it's not that they've decided everything. other factors in proximity to harvard, m.i.t..

>> we should mention amazon declined to comment. as we continue to look for details, we will keep you posted. amazon has been in e-commerce for decades. hopefully this has been aggressively lowering prices. when you look at this -- targeting customer data, it is still missing a mark. here to talk about this paradox -- is a columnist who writes about this. and a bloomberg news reporter who covers amazon. about amazon and its brick-and-mortar duction want to get your thoughts on potentially choosing boston as a second headquarters. it was a west coast and the east coast. >> we have been looking at boston for quite some time. we've been closely tracking, there have been a lot of job postings there.

this high-level palette -- mainly facial recognition. this is something amazon is pursuing aggressively right now. this is really a no-brainer that they would want to go to the boston area because of what's there. >> allen talked to talk to briefly about obviously what we have seen. >> this is incredible. a lot of people expect that online sales and groceries will go down with the head is edition of whole foods.

it's quite the opposite. amazon put 2000 whole foods here on to its website. almost all of those canceled out. only 7% did not sell out entirely. it speaks to the enthusiasm consumers have for this merger. it would be a positive and optimistic sign. >> people are familiar with the 365 thing. it's not like it is a new untested thing. >> it has its own cachet. we talked about amazon's ability to crush everyone else. who talk about how they had all this data on everything, and nobody can possibly compete with that. agree, it's not so simple. i would agree it was amazon -- they think i'm a college student. [laughter] i'm always getting deals on back-to-school electronics, essential steps to try to sell me a rug. i graduated from college 11

years ago. the dupont -- put them on this pedestal, real master this. there's still a lot of work to do there. what he think that is? bloomberg.com >> i think it's hard to know exactly what happened in this particular case. they're personalizing a website, not personalizing this. certainly doing it in these silos and not looking at the consumer holistically. >> to go back to scarlet point, why not? harassed byact -- people. the social media companies aren't doing any better. this one is a classic example. when i was living in the u.k. would get pictures of things causing harm.

>> there doing a very good job here. the tells you the technology really is here and retailers clearly aren't putting enough emphasis on the trade >> great point. >> the whole foods deal was announced -- everyone has their theories about this. oh, this is really about crime. >> is an idea that the world this is a great opportunity to get more touch point, more access to consumers.

it makes a lot of sense for them. --there's integration here will come back to this later. standerg's catholic, olivia -- thank you so much both of you reporters. there has been talked about expanding this report at least three years. people in seattle got the story about thell us more selection, potentially of the headquarters. why have they been thinking about this for so long? why the delay? >> to answer them first, let's emphasize that haven't received

this proposal yet. this person is definitely -- they do this in proximity to harvard and m.i.t.. this one's a big research institution -- and then also good airport and terrific city, urban living -- the cost of living below san francisco or new york, some of the other things were big city living. in terms of why they take so long, we just felt that there have been internal discussions about another location for significant amazon office presence going back a few years. this is when it is coming up in the old. with got to emphasize that amazon is definitely working to

secure a big expansion within seattle at the time. there are likely growing pains, realizing we're getting big for seattle. they're wearing for the right time to slow that church open. >> this is certainly a contender here. what might put another city on top of boston? another city offer that amazon would jump at? incentives,s, big space, and business friendly environment. the big thing from enough for boston, higher education learning, the talent pool, those sorts of things. it's also going to be a test for amazon. amazon will have to think about what they stand for. amazon's is a company, and what it stands for with its employees. those are does the same thing. so a second-tier city that might offer a more -- more affordable cost of living, that may not offer a good pipeline, but a city like boston would with it

ince touche and stash >> we will talk more about this -- >> thank you so much. the scoop on amazon, think you for not that -- that. up next, looking for returns. earth up here. we will discuss this with a frontier funds manager. this is bloomberg. ♪

"what'd you miss?" investors passing of markets and search for returns. bond sale for the year was six times over described.

country included in its perspective -- that it could know exactly where the country is. investors waiting to put their money into regional conference on the globe without the help of a map. let's bring our next predictor -- your frontier and emerging markets fund manages $460 million in assets. great to have you on the show. start top-down. and still looking at the exposure you have within this, 35% in asia, 45% what country are we specifically talking about here, and why focus on financials? >> financials are the ones to look at in markets. >> [laughter] terms of growth, the go along with local markets -- gdp.

we invest in banks as financial inclusion improves in this country. ,unding to consumers, mortgages low and efficient credit cards come other things. this is a great opportunity for growth. africa is one of those big long-term opportunities -- like with nigeria. a bit of a problem the last two years. this one has vastly improved now. there is a great opportunity for investment again. kenya is another one, along with egypt. this market comes in and it's very underpenetrated. if you look at financial penetration, this is less successful than in 2002. there's a long catch-up to be

done in this market. there's more enabling government policies that could help. >> the quick pop-ups certainly there. when you look at financials, closely do you look at regulation ? how well-developed are those rules for investors? >> we look at them closely. as high-quality growth investors, looking at whether the regulatory environment is commuted for growth is important. argentina during the previous regime is different stand now, it has improved. >> when we talked to a lot of emerging markets specialist, they talk about how the domestics economies are structurally much more solid than they were. during previous bull markets, local financial cystic -- system to its, currency assets are more -- local financial systems are

more stable. learned people have from the financial crisis here absolutely. emerging markets have gone decades,ultiple there's been learning there. parking that markets like vietnam, which is to have a lot -- talking issues about markets like vietnam. other places like england -- are included as well. are includedadesh as well. >> service to .1% on an austrian fueled bond right now, there's not a lot of wanting to be picked up in other places right now. >> to look at is dividend yields

in many of these companies interested in going from 4-5. as part high return companies costing 40-45% in some cases. double digits in the high teens-low 20's. overall great investment, if you really -- if you are willing to go past macro riskiness countries. let's talk about it is more interested markets, where is it coming from? is it coming from emerging markets, new money? ask people look beyond emerging markets. lastrontiers to the asset in the next emerging market over 17 years. -- idea is emerging markets would have done really well with this. demandscating financial

for the capital improvement here. time, you would see the frontier as an asset class getting delicate -- dedicated allocations. >> you see a way to diversify as well, there's some combination from markets as well. there's an idea that there is a longer-term play. they're quite volatile. for your investors -- who are your investors, and how do you manage that? >> well, the correlation is low compared to global markets. the reason is, you don't have to many market and esters investing in markets, so you don't have much of a capital flow coming and-out. >> great to chat to you, thank you so much. >> this is bloomberg. ♪

quite thank you you were joining us everyone.

reporter: i'm emma chandra in new york, and you are watching "bloomberg technology." wasdeath toll from irma, the most powerful hurricane ever recorded in the atlantic,

continues to grow. at least five were killed in florida, including a correctional institute sergeant who died in a head-on collision. two people are dead in georgia, including a retired court reporter. are dead in south carolina, including a public works employee on his way to help. president trump is expected to visit florida thursday. russia and china supported a scaled down version of sanctions but councilrea, members came with a warning. no regime change in pyongyang. arizona senator john mccain will continue radiation and chemotherapy for brain cancer while maintaining a regular work schedule in the senate. anain's office said he had mri done yesterday. he disclosed his diagnosis in july. the white house is naming help eggs as communications director