bomb exploded in the london underground. minister theresa may says it is important for law enforcement to focus on the extremism and hate that incites terrorism as they move ahead. she spoke after meeting with her governments of emergency committee. >> this is why we are working with the internet companies. the home secretary of silicon valley spoke with the chairman of internet companies. i will be chairing a session with president macron from france to talk about more what we can be doing -- about what we can be doing. yard is looking to ensure that security services have what they need to fight internet propaganda. president trump says the terror attack in london is the latest example of why the u.s. travel ban should be expanded.

the president called the explosion another attack by a loser terrorist and suggested london police missed an opportunity to prevent it in an early-morning tweet. his travel ban that targets mostly muslim nations should be larger, tougher, and more specific, but that would not be politically correct. the president will meet with leaders of south korea and japan next week in the wake of last nights missile launch by north korea, according to an administration official. the u.s. is not planning to announce any further retaliation, and there are no plans to push for additional sanctions. the u.s. continues to lean on china to use it oil deliveries as leverage against north korea. has cut off medicaid funding to a nursing home were eight people died after

hurricane irma. workers say the air conditioning failed during the storm as they struggled to keep residents cool. police have opened a criminal investigation. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ julia: live from new york in the world headquarters of bloomberg. scarlet: i am scarlet fail. joe: i am joe wiesenthal. 30 minutes from the close of trading. joe: what'd you miss? the top of the agenda for

the united national general assembly. we speak with the former u.n. ambassador. the china regulators clamp down on trading. we are seconds away from speaking with the owner of the atlanta falcons. he says his team's locker room is on fire, and joins us live from the brand-new stadium right now. scarlet: what'd you miss? a huge weekend coming up for the new mercedes-benz stadium in atlanta. -- 140,000 fans are expected. fans will find two dollar atdogs, five dollar beer, 63,000 square foot video board. joining us now from the $1.5 billion stadium is the owner of

the falcons. he is the cofounder of home depot. great to speak with you. i want to kick in and start with concession pricing. the lowest in a pro sports. you say you can feed a family of four for under $30. you think you will make it up in volume. give us a sense of what the early numbers show. is this a more profitable model? r: the success we have had so far with food and beverage is incredible. everything is right on. have every type of food you can imagine within this building. it is all priced based on family-friendly pricing. restauranteurs will operate from other facilities in the community, everything from their

restaurants are priced all the same. it is not based on weekend or season, it is forever. games, theis college super bowl, or the final four. the results in many of the earlier games we've had, soccer matches, the preseason games, we have sold more food and beverage before the event began than we did at the georgia dome throughout the entire event. fans are appreciative and enjoying it. the volume is there. one of the most important ways -- if fans are showing appreciation for us, we need to find a way to say thank you to them for our franchise, for their franchise. scarlet: the fans clearly appreciate this.

have you heard of other sports team owners were willing to adopt this model? nfl ow i had a several ners will quietly asked me, what were you thinking? then my background, philosophy of home depot has things at they right levels and pass the savings on to customers. int turned into huge volumes his stores across the nation. tores across the nation. people not only appreciate they can come here and enjoy a full day before the event starts, they will stay hours after. they will have an appreciation.

a example will set for other venues and other stadiums. we are trying to find ways to say thank you to the fans. for these venues and events. that is one of the ways to do it. food and beverage is a big deal. as a young dad, that was important to me. and i know it's important to a lot of families. scarlet: fans are coming to the united games. it is set to break the mls attendance record on saturday. are you learning anything from soccer that can be translated to the nfl? arthur: the records we have broken this year, it is not just for expansion.

we broke every record in a major league soccer within 22 years. we are leading the league in terms of averages over every other club. we are selling more average inendance tickets than exist major baseball, hockey, or basketball today. the commissioner will contact me and say, are those real numbers? --y will be here said day, they will be here saturday, 4:00. it has been an incredible story. what you learn from that is the energy of the fans. the energy is really amazing. soccer fans stand up during halftime. they are on their feet. the noise and the celebration they are projecting to each other. the sense of community, and the sense of relationships with the

players, incredible. the rules are different in the nfl. we spent a lot of time talking to the soccer supporter groups and we ask them how they create the energy they do? scarlet: moving to fans at home. let us talk about ratings for nfl games. they were down for most of the opening weekend, when we have the hurricane coverage. we have a good matchup between the falcons and the packers. >> it should be great. more than just politics, the weather, is the decline in reading something more -- ratings something more? arthur: i don't think so. people have options. sitting at home, in front of a

giant screen tv, and being able to pull up near the refrigerator. the advantage here is that food and beverage is going to be priced the same levels that you would have at home. variety is going to be incredible. you have an opportunity to share in a unique community experience with the scoreboard and the variety. the building, the aesthetics. the pieces of commissioned artwork. you come together as a family. as a greater family of 71,000 people in the building, celebrating the event. that is what you have here. a great memory in celebration shared with a bot of other people all of the same time. lot of other people all at the same time.

bring their families here and go home, we want to think about what great -- what a great memory it was to come with my father or mother. a lot of people say the nfl need to make the game more engaging. sports participation has risen. do think legalized betting on sports is inevitable? arthur: those changes will come over time. with a team in vegas in the future and questions surrounding that, the finance committee has wokrerked through a lot of issus relative to the ownership of the stadium. fantasy football israel. it is -- fantasy football is real. it is going to stay. the big issue the week has is

that we want to make sure the integrity of the game and the quality of competition is maintained. you are arthur blank, sticking with us. we are going to talk about how the new stadium is looking to help atlanta's west side. from new york, this is bloomberg. ♪

scarlet: >> it is 2:00 p.m. in new york, 11 a.m. in san francisco, and 7 p.m. in london. -- scarlet: what'd you miss? atlanta's westof of side. arthur blank joins us from the new first lady spends stadium in atlanta. your family foundation has been very active in the neighborhood. over 20 billion dollars invested in the community. residents were involved in its construction. execution is critical. how do you ensure the stadium enhances rather than exploits the community? arthur: that is a good question. one of the reasons we selected because it is in the heart of atlanta. of other of a lot important venues.

the west side has a rich history. it represents tremendous movement in a civil rights for our area and country. it is an area that has been left behind. and we picked this site started to work on the stadium, we didn't want to have a situation where the stadium overshadows a community that doesn't represent the very best of atlanta. we have been working with the community to make a difference in their lives so they get a the best ofaving life for themselves and their children. we have made a lot of progress. education andd security and a variety of ways,

and we want to make sure we continue to bring it back to the community. .ur initial investment grew along with the mayor, we announced an additional commitment to the city of atlanta. the city is matching that commitment. a big part of it has to do with capital, human capital takes more understanding and work, more generations. invested a lot of things relative to that. childhood, through developmental ages. two folks looking for job. individuals.ed 160 80% of them have had their jobs a year later. they have brought back earned income to their community and families. wage earners walk back into their homes with their chest out

and shoulders back. they feel good about their lives and a sense of accomplishment. that projects to delve -- to their families and communities. done, thes over and west side is a work in progress. we have made lots of progress. julia: that progress is going to take time. decades to regenerate the area. you have faced a great deal of criticism. do you believe you are overcoming that with the work that has been completed and you can look further to the community? one of the big criticisms is a community benefits bee. quite -- community benefits fee. quite unusual. why did you feel the flexibility was important and why did you

decide to do that? we havethe programs developed have been blessed by the city council. it took over three years of working with the community. we spent three years talking to people and finding out what their needs were. walking in the streets, knocking on homes. asking what they want to see different. three years listening and trying to understand what the community asked of us. all of those plans were blessed by the atlanta city council. ne had a plan going in, i collaboration with other people. we feel from a business standpoint it is important to be a good listener and respond. in terms of community activation, they are key core values.

you have to understand what the people in the community are telling you. it is a question of them telling you what their needs are and identifying those needs and responding. we have done a great job of that. elected,r trump was there was a lot of enthusiasm about big new infrastructure from the federal government. some hope for that seems to have waned. if the government were to do a big infrastructure deal, from your perspective, what kind of things would be targets for that? arthur: the city of atlanta has grown to a $7 billion city. traffic in the city is still a problem. we don't have as much public transportation as we should. our public school system has made advances. but it is not where it needs to

be. there are a variety of things that can happen. there are opportunities for people here to move up in terms of their own economic experiences. we have to make sure that pathway goes to the top in a variety of ways. here and opportunities we could take those investment dollars and use them wisely. the most important thing, whether we invest at the federal or state level or in nonprofits, we want to give people abilities that are sustainable. this building is going to be certified. we want all the skill sets that people have learned to be certified so they can be transportable for them throughout their lives. it shouldn't be a question of how many dollars we can divide up. -- teach people

to take care of themselves and build that self-confidence and their net worth at the same time. but have a sustainable way of doing it and sets the right kind of example for younger folks. s and othero business leaders have been helping bridge differences, solve problems. because elected officials seem paralyzed. is this a good thing and good for business? arthur: it is a great thing. you seegreat thing business leaders in a variety of settings that are looking beyond a. of time. a period we have to make the right decisions for our business and society. and the planet we live on. everybody, these four years

will come and go. we need to respond and make thoughtful decisions that are long-term. when we were running the home depot, all of our great thinking had to do with what was right for the long-term. here at the stadium, that is true. as business leaders, that requirement is greater today because of the divisiveness you mentioned that exists on the political front. we hope that divisiveness will be reduced and that effectiveness will go up. cooperation and partnership and caring for each other, we hope it will be on the improvement. but we have to make the right long-term decisions. thank yourthur blank, so much for joining us from the new mercedes-benz stadium.

arthur: you're all welcome to come to a game. scarlet: we will hit you up on that. from new york, this is bloomberg. ♪

julia: now for the stock of the hour. the virginia-based insurance company is trading higher. >> i wanted to bring you this stock. we talked about this semiconductor yesterday. they were the company that were supposed to be acquired by a chinese firm, which was downvoted by their president on national security grounds. we have a two day chart which shows you this. they got through the state barrier. virginia has said we are fine with the deal. good news. throughll have to go

this regulatory hurdle. that could be something harder. genworth is one to watch. scarlet: with a quick stop of the hour. the market close is next. the dow at a record high. ♪

♪ julia: "what'd you miss?" closing higher,

investors shrugging off the rise in nuclear tensions and a nuclear attack in london. all eyes on the fed and the u.n. meeting next week. i am julia chatterley. scarlet: i am scarlet fu. joe: i am joe weisenthal. if you are tuning in on twitter, we want to welcome you to our closing bell coverage. scarlet: we begin with our market minutes. a record high for the dow jones. it is the sixth straight day of gains. it did appear the s&p 500 closed above 25000. joe: so close. i am going to be crushed. scarlet: a record high, you will take that? i record high for the dow, the s&p 500. in terms of the individual names we are focused on, oracle reported results yesterday. revenue beat the highest analyst estimate.

nonetheless, it is down 7.8% on the day. oracle had a bump up going in. the week sales forecast rattled investors. $.50 frosty'sed for helping boost sales. stock that has been on sale because of bitcoin. joe: extraordinary, new highs. scarlet: nvidia up by 6.3%. joe: let's take a look at the government bond market. lots of up arrows on the board. yield up to 1.38%. 2.25%g out the week at the end of last week. u.k. five-year yields shooting up. all this talk about a possible rate hike. check out the two-year yields

going back a year. shooting up the last couple days. they called it a guilt tantrum. this is possibly in november, really providing a boost. earlier in the week, the bank of england making hawkish noises. governor mark tierney -- mark carney basing them. julia: we did see weakness in the dollar. that retail -- weaker retail sales number weighing. intentionsth korean are to blame for the gains today. the real story was the gain in sterling. the most dovish policymaker out there, but he backed the decision of mark carney to flag the likelihood of rate rises in the coming months. that adds to gains we have already seen in sterling.

it took sterling to the highest level since the brexit vote in june of last year. we want to talk about the chinese yuan. fell 0.9 percent this week after the 4% jump we saw in the three months through september 8. the offshore rate tumbling the same as in the past five days. the people's bank of china signaling its discomfort with the runaway rally we are seeing in the currency. setting it weaker for six days in a row. and the kospi to bet against the currency. joe: finally, on the commodities fund, a quiet day. looking at oil and gold. oil not doing much. it had a nice bull run lately. optimism over greater demand around the world. not at some happening today.

gold selling off modestly. those are today's market minutes. scarlet: "what'd you miss?" rally traits may have a short-term recovery. let's have the week in review with our guest. everyone is wondering when value will pick up. it is hard to make an argument for value. >> it has been a really tough year for value. when we look back at the year as a whole, value outperform to growth in june. they were just little blips. the big worry is that this is just another blip. he could be affiliated with hurricane rebuilding. if you look at major components of the value index, thanks are in there, auto stocks, insurance companies, oil companies. all things headed into harvey and irma, and have had a nice little relief rally. will we get there?

if you look at the longer-term chart on value versus growth, you see it outperformed. we are looking to levels we saw last in 2016. at that level in early 2016 we had a big recovery in oil, and value outperformed the growth index by 660 basis points over six months. to get that again we need oil prices to continue to rally, the 10-year continue to selloff, yields rise, and the consumer spending more money. especially on autos. you get those three things, you could have a big value surge. julia: not asking much. [laughter] joe: if you are investor, don't you always want value? gina: very low valuation. joe: you mentioned energy. this is a chart i have not releasing before. it is small cap versus large-cap energy.

specifically, s&p 600 versus s&p 500. small-cap energy has really underperformed. what are the conditions under which small-cap energy underperforms? see on this chart, the underperformance started a few years ago. these companies are even more levered to oil prices and finance conditions than their large-cap brethren. they could survive and oil shortfall. they tend to be more levered to the commodity price it self. they had a nice recovery in 2016. the oil price recovery is now back to testing major support levels. will they receive a bounce now that oil prices are back to $50? when you think about the long-term scheme, oil prices started well above $50, there

was the expectation it would go above $60. you haveat about -- suggested a balance between value and growth. you make great comparisons between what is going on in the tech space in emerging markets [indiscernible] gina: this is interesting. you think of tech as a story that is only about facebook, amazon, apple, google. tech is leading global returns. you can look at emerging markets and tech is by far leading returns in emerging markets. what is interesting about this chart is that it shows valuation. emerging valuations for tech companies, and they are still discounted. even though they are leading emerging-market returns, you can still find valuation opportunities even in technology.

by theam fascinated point you made that it is beyond the alphabet, facebook, amazon and apple. we talk about how these are incredibly dominant companies. even in the u.s. there is another tier of stocks that have done well. nvidia.at oracle, adobe software, we never talk about that. but they have been on a tear the last few years. what does that say about the story people are repeating over and over? gina: there is a lot more tech thanh -- breadth immediately meets the eye. scarlet: and they are doing well. gina: when you look through s&p 500 returns, your best-performing stocks are things like small gaming companies. the asian tech companies have

pummeled apple and microsoft this year. when you look across the spectrum you do see wide-ranging, broad returns in tech and it is indicative of the earnings environment. tech is an earnings out performer across markets. emerging-market tech companies combined with consumer companies are expected to create greater than 20% earnings growth in the next 12 months. there is a strong and broad earnings story happening throughout tech. it is not just apple and microsoft. scarlet: that is an important reminder. as we look ahead, the fed will meet to read is there anything we can hear from the financial bank that will give those left? gina: it is tough to say. the consensus of view on the fed is that they are going to continue to work on the balance sheet and hold off on any rate hikes going forward. the shocks would be if the fed says anything that were to reverse those expectations.

if the fed suggests, maybe we will have a rate hike, that would be good for financials. the banks tend to rally anytime there is news of a short-term rate hike. if they start to backpedal from qe reversal, it is not going to be great for the banks and financial sector. it is how the fed manages expectations. they have gotten incredibly good at this. more than likely they will fall right in line. it is probably less of an event than we would like it to be. julia: are you surprised by the resilience of equities, given the news we have seen? we were talking earlier about the risks to these markets. are you surprised, given how far we have rallied? gina: to a certain extent, i am. when you take a step back and look at the set up for the equity market, and we did this earlier this year, we look at what a third leg of a bull

market looks like. one characteristic is that it is very low volatility. pretty extreme events have had in historical third bullet legs. that structure -- third bull legs. we have difficulty pricing geopolitical risk. everyone points to the risks with north korea as extreme and potentially damaging to risk assets. we are taking a look back at how war has impacted stocks overtime. if we do go to war with north korea, what do we likely see in the s&p 500? since world war ii, stocks have gone higher throughout the war. it is about assessing the economic and earnings impact. it is socially agnostic, it is about economics and earnings. julia: always a pleasure, gina martin adams.

confronting north korea's nuclear program, that will be at at nextof the agenda, week's united nations general assembly. more analysis. in president trump speaking now at base andrews. says north korea shows contempt for its neighbors. he says radical islamic terrorism will be eradicated. and he made comments about the london terror attack. he said london has suffered a vicious terror attack today. it comes off the back of what we heard from h.r. mcmaster, nikki haley warning the u.s. is running low on north korean options. this is bloomberg. ♪

mark: i am mark crumpton, it is time for first word news. british officials have raised the terror threat level to critical, meaning another attack is expected shortly. theresa may said she was not raising the level from severe. at least 29 people were wounded when a homemade on exploded inside the london underground. islamic state is reportedly claiming responsibility. theresa may said she was not raising the level from severe. the last time the threat level was critical was in may, following the attack at the ariana grande concert. nikki haley says the u.s. and allies have strangled north korea's economic situation through sanctions. speaking at a press briefing, ambassador haley said it will take time, but it has already started to take affect. the united states is not

planning to announce a further retaliation against pyongyang and there is no plan to push forth additional sanctions after north korea's latest missile launch. h.r. mcmaster joined ambassador haley and said, there is a military option for north korea, though it is not the preferred route. he added that sanctions against the north are starting to take affect. >> what is important is rigorous enforcement of those sanctions. economic actions and diplomacy progress as best we can. we ought to make clear, what is different about this approach is, we're out of time. mark: he says they call on all nations to address this global problem, short of war. marquand says the government's response to hurricane irma has shifted from saving lives to beginning the long process of

recovery. at a briefing, he said good progress is made in getting people back to their homes or in two temporary housing. they are focused on restoring electrical power and getting gasoline into areas suffering from fuel shortages. 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. julia: "what'd you miss?" haley,master and nikki ambassador to the u.n., addressed reporters at the white house is briefing on the u.s. running low on north korean options after they demonstrated they have the capability to launch a missile that could reach guam. today they fired a missile that traveled over japan. >> they continue to be provocative, reckless. there is not a whole lot the

security council can do from here, when you cut 90% of the trade and 30% of the oil. having said that, i have no problem kicking it to general mattis, because i think he has plenty of options. julia: here with insight is bloomberg's national security editor, from our washington bureau. the u.n. cannot push it further, we have gone as far as we can go, i am happy to hand it over to military options -- is that what we are looking at? the escalation seems to continue. bill: i do not think we are looking at military options yet. the u.s. is trying to signal, we passed big sanctions a month ago, additional sanctions monday, those take time to take affect. is's make sure china enforcing the sanctions they agreed to at this unanimous vote at the security council. then let's see if it hasn't impact.

if north korea continues to be provocative, we have military options on the table. berlet: the president will meeting with other heads of state and government officials next week when he is in town for the un's general assembly. to what extent will they be called upon? they will be meeting with the heads of south korea and japan. effort toe will be an show unity on the sanctions that have passed, the measures they have undertaken so far. i think there will be warnings about potential military options. i think it will be a chance for the trump administration to show the world continues to be united. trump has an issue -- range of venezuela,-- iran, the refugee issue in myanmar. those will be coming up in the meetings u.s. officials have with their international counterparts. joe: is this u.n. meeting a bigger deal than typical? bill: it is always a bit of a

circus because everyone comes in, 193 liters, all with their own agendas. a lot of big speeches are directed to the national population. this year you have north korea, syria still on the plate, this growing problem with myanmar and the refugees. there are just a lot of moving parts. it is the first chance many people have the see president trump in action, at the podium, to get his view how he sees these crises. with what problem nikki haley said is that it is not entirely true, there are other sanction options for north korea. the problem is, they cannot get china and russia across the finish line. what do we need to get these guys on board with tougher sanctions? bill: there is a security council meeting going on right now. i think the u.s. will push china

and russia to enforce what they already agreed to. that is been a complaint of the u.s. and other allies in the past. yes, you get a unanimous wrote -- vote, but enforcement is the important part. they do not think china and russia have followed through on. pushing countries to close consulates and embassies, not use guest workers from north korea. hopefully, ratchet back the tension we have seen. scarlet: what i find interesting, president trump has not responded directly to this latest missile test or inflammatory rhetoric from pyongyang. someone threw him a question when he was leaving for the weekend on whether he is running out of diplomatic options. he said no. is this a change in strategy? bill: you never know how

strategy changes in the white house. i do think they have handed a lot of this over to nikki haley and the state department for reaction. they were very happy with the sanctions passed on monday, felt they were clamping down on oil exports to north korea, felt they were making progress with china and russia. they have shown all the cards they want to show what this point. president trump often says he does not want to detail his strategy in advance. i think that is what they are doing here. scarlet: thank you. on bloomberg television this weekend we have a conversation with a billionaire founder of bridgewater associates. he shares his insights behind the principles that govern a 40 year career as one of the world's foremost investors. he will be at the connecticut campus. the work tells the story of his life and how hard lessons from

big mistakes shaped his uniquely systematic approach to managing money. all of that at 5:00 p.m. eastern sunday. this is bloomberg. ♪

scarlet: i am scarlet fu. "what'd you miss?" this morning's retail sales report showed an unexpected drop in august sales. we knew auto sales were a drag. but we can also point the finger at amazon. this chart shows monthly online sales over the last couple years. sales postedline their biggest monthly decline in more than three years. up because huge jump

amazon held its prime day event in july. while hurricane harvey may have had impact, it looks like there was payback from relatively robust sales in july. joe: it is a great chart. cool to see how it shows up, the way prime day now pulling sales that people otherwise might have made. julia: pulling them from other people. scarlet: did you buy anything? joe: it was too stressful for me. i was too overwhelmed. julia: alibaba did not do amazon's prime day. shocking. joe: i want to look at an updated chart about the relative safe even status of the yen versus the franc. you might think with missiles floating over japan out of north korea that the safe haven status would take a beating. in august. like that

i'll it in yet dollar-yen volatility versus dollar frank volatility. you can see dollar-franc volatility implied perhaps the yen had been supplanted. even with more saber rattling, and last night's event had hardly an effect on markets, the dollar-yen volatility widening the spread over the franc. people love the yen. do with a lots to of japanese corporate and investors trying to repatriate their funds. after the earthquake in 2011, they said it is that news for japan, but means repatriation. the yen, incredibly strong. black 25 years since wednesday. we ask our guest if the pound is facing another crisis, it is

their weakest trading year since the 1970's. this is bloomberg. ♪

mark: i am mark crumpton. it is time for first word news. british officials have the threat level at critical, meaning another threat is imminent. theresa may said she would not raise the level from severe. at least 29 people were wounded when a homemade bomb exploded inside the london underground during morning rush hour. islamic state is reportedly claiming responsibility. the last time the threat level was a critical in the u.k. was in may, following the attack at the manchester arena. vladimir putin putin chaired a national security council meeting to discuss a number of issues on the international special emphasis

on the issue with the latest north korean missile launch. they basked a resolution packed by the yuan council last week that slapped new economic sanctions on pyongyang. last week, president putin criticized the u.s. for fueling what he called military hysteria in the region, and called for political settlement. an expert who two years ago warned about dangerous lead levels in flint has declared an end to the crisis. he said after several rounds of testing, lead levels are back to normal. he recommended continued use of filters. water was tainted with tocsin for at least 18 months. they did not treat the water to reduce corrosion. as a result, lead leaked from old pipes and fixtures. those suffering from hunger rose last year.

800,000 -- 11% of the planet was labeled as hungry in 2016. more than half live in areas with violent conflicts. also, restricted access to food supply. with african nations among the worst. famine was declared earlier this year in south sudan. 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. scarlet: let's get a recap of today's market action. joe got his wish, the s&p 500 ending at 2500 even. day ondaq finishing the an up note, gaining 3/10 of 1%. julia: "what'd you miss?" sterling rallied the second day after one of the most dovish persons from the bank of england predicted up rate hike, despite

uncertainty around brexit negotiations. we have the chief foreign exchange director for more than a year at the bank of england. also, a former trader. i will talk about the current news. we saw the fall in sterling in line with of the brexit vote. we see starling recapturing lost ground. inflationncerns about . at the same time, sterling is doing work for the bank of england. we noted that mark carney said he was worried about inflation and the level of the pound. did not seem to be worried about it at 120, but is worried about it at 135. a potential hike for sterling would give the pound a boost. one would hope it would curb inflationary prices. julia: they say they could raise rates in november and knock out

rate cut they did after brexit. sterling,strength of it could put at top on the reported inflation. >> it could. one thing we are looking at what the potential rate hike in sterling is similar to the rate hike for the bank of canada. this is perhaps the emergency cut done for brexit, similar to what was said about the emergency cuts taken back with hikes in canada. we may see this one and done a rate hike for the u.k., which would put sterling on a sideways level. scarlet: talk about brexit. negotiations are ongoing. sometimes progress does the back step. to what extent do we see it showing up in jobs, economic growth? >> i have not seen issues with it so far. perhaps jim can speak to that, he lives in the u.k., perhaps he sees it more closely.

the new york times reported that france and germany wanted to halt some of the free flow of movement within the european union, which is part of what the negotiations of brexit are about. julia: jim come i want to talk to you about the famous anniversary we were hinting at earlier. a sense of what you feel from the u.k. here about the brexit negotiations. what is the sense, and you feel impact day-to-day? yes, we feel very much lost. i am not sure the consensus is what we want to achieve out of these negotiations. equally well, there is no understanding from our point of will beut what the e.u. willing to make a compromise on. it is a continued uncertainty. there is speculation and it changes day-to-day. in terms of the movement in

sterling, from someone who has anded back in the 1990's seen interest rates of 15% and down, it is difficult for me to get too excited about the prospects of a .25% increase in one month's time. so we need perspective on this. [laughter] julia: but it is our job, i apologize. he has clearly seen a way more exciting times in the foreign exchange market. we were talking about the 25th anniversary of the u.k.'s exit from the exchange rate mechanism. what was like to be an fx trader in that environment? time,was an extraordinary unprecedented. it was a time we had never seen before, and have not seen since. there was a culmination of a number of factors that have been

pressing down on the value of sterling. 1979,se not to join in citing majority conditions before we went into the markets in 1990. interest rates were 15%, something like three times the rate of inflation present in germany. also coming in immediately after the turn down -- tearing down of the wall in germany in 1989. the conditions were hostile for us to go in. but it was a political decision. if you remember, margaret and the was weakened chancellor, john major, was happy to get his way. along with other cabinet colleagues. ratesars later, interest briefly threatened 15%, and we were out.

it was an extraordinary day in terms of the volumes. i think no one at that stage had heard of george soros or hedge funds. the amount of sterling they were in place of the pound surprised everybody. as you described, it was an expensive day. do you think we have seen the worst in terms of sterling and the volatility, the pressure on sterling? we have not gotten going on the brexit negotiations. given your experience, and as you said, lack of clarity on all confusion or volatility for sterling gets worse? >> i am not sure it gets worse unless there is a real mood change, a sea change that moves that one way or the other. i do not think you'll get that.

over the next six months, certainly. i do not think there will be a lot of interest rate news this year. i do not think there will be a particular direction. we see a link back to the best level since we came out. or something. i do not see a going further from there until we get something fresh. goodness only knows what that will be. julia: fresh and fruity, we will see. [laughter] julia: great to have you on. >> see you soon. scarlet: weighing in on bitcoin. what they think about the cryptocurrency. this is bloomberg. ♪

julia: "what'd you miss?" meteoric rally, coming to an end as chinese policymakers restrict trading amid growing warning of a market bubble. today, some guests joined bloomberg daybreak: americas to talk about whether it is a global opportunity or simply smoke and mirrors. >> do not look at me. i know it is down 10% today because of the chinese. end of the day, it is an algorithm that creates "money." i have money in my pocket,

actually got a starbucks coffee with three singles today. you can create an infinite number of cryptocurrencies if you want. with central banks behind it it will probably become ubiquitous, and will go the way of -- >> i know nothing about cryptocurrencies, it is not my world. scarlet: you feel like you will need to? >> i do not think i need to deal with it right now. we have a pretty split view inside the firm. i would say the blockchain technology is irrefutable. a fundamental thing. the integrity of that is great. >> will that revolutionized financial services? >> i think it could. we're worried about being hacked

and the safety of our money. andink the technology blockchain itself, a lot of value. how it gets monetized -- it is like the internet. first came out, a lot of money made and a lot of money lost. it was not a thing, it was all the applications. bitcoin, the actual price and value -- i am a skeptic. was mark lazar he , and jamie dimon. while they may not be sold on the value of that coin, north korea wants a piece of the cryptocurrency action. they are stepping up action to secure digital currencies to avoid trade restrictions from the new united nations sanctions. according to a new report, hackers from kim jong-un's

regime are stepping up bitcoin exchanges. joining us to talk more is luke mcnamara. joe: thank you very much for joining us. what is the hard evidence that north korean regime is actually using bitcoin? luke: to put this in context you have to look back at activities we saw last year with north korean sectors targeting the financial sector. we are seeing a pivot. this year with appreciation of bitcoin prices, they are shifting operations to include cryptocurrency exchanges. we have seen them employee malware in south korea. joe: when you look at what kind of stuff is going on, what are some of the techniques you use? do you see a tax on south korean

exchanges? luke: the specific examples we have seen our fear phishing, employees espionage deploy malware and use that as a way to get onto exchanges themselves, and potentially cash them out and transfer bitcoin or ethereum elsewhere. julia: we are looking at south korean exchanges. of thes the regulation south korean exchanges compared to exchanges elsewhere, when you talk about issues like money laundering? luke: i cannot speak specifically to the regulatory environment in south korea. one thing that is attractive about cryptocurrencies to nationstates like north korea is that there is probably less controls, money controls, than in traditional financial

markets. that enables them to steal cryptocurrencies from one exchange and potentially transfer them to another cryptocurrency and cash out. are there classic fingerprints that look like the north koreans? what about timing? do we see the tightening of sanctions and greater activity in terms of bitcoin simply trying to get liquidity and access to money? luke: i think we see the north koreans engage in a lot of illicit financial activity. counterfeiting and money laundering. cryptocurrency targeting is an extension of that. we see the macro drivers the appreciation of cryptocurrencies this year and the timing of sanctions that force the north koreans to be creative and how they employ their abilities, in this case going after exchanges. there are clearly other players out there. brilliant to talk

to you. on bloomberg television this week, a conversation with ray dalio from bridgewater associates. he shares rare insights behind his four decades career of the foremost investor. that is 5:00 p.m. eastern sunday. this is bloomberg. ♪

julia: "what'd you miss?" alibaba executive chairman jack ma says he does not believe we are headed for another technology bubble burst. despite short-sellers, say they are poised for a full. stephen engle spoke exclusively

with the jack ma during alibaba's 18th anniversary celebration. think the next 18 years, the globalization, trade, will be better, because of the internet. this is our mission. an electronic traded platform. we are making sure a small business, young people can benefit from that. for us tos enough improve globalization instead of killing globalization. i believe when trade stops, war starts. when we change our u.s. strategy, we want to help the u.s. small and medium sized companies to sell to china and asia. we do not want to be a local e-commerce company. amazon, ebay, so many nice companies all over the usa. you do not want to take on amazon.

enter -- >> how about entertainment in hollywood? i know you had a deal with spielberg. started.t it is not the importance to go buy movie companies. when you buy all the stuff -- you have to learn from them. you have to partner with them. there are a lot of things china entertainment can learn from hollywood, should partner with them. >> you talked about the coming winter in 2007 when you listed alibaba.com. sure enough, the collapse came quickly with -- the winter can

quickly with the collapse of lehman brothers. you have had challenges that wiped familiar names off the board. are we facing a similar tech bubble with these billion-dollar unicorns and inflated tech scenes? are there similarities? >> no, not that much. i think the challenge at that time, a lot of people did not understand how powerful the internet is. jumped.ust a lot of people have crazy ideas, do not know how to operate, do not know how to make capital. but today, everyone knows internet is powerful, will change human history. of thehe infrastructure internet, technology, is much better than 10, 15 years ago.

if you are not that greedy, if you are not that stupid and crazy, it is easy to survive today -- if you're to survive today than yesterday. jack: that was alibaba's ma speaking with stephen engle. you can find more of that exclusive conversation on our special half-hour program " alibaba: the global disruptor." it is time for the bloomberg business flash, the biggest stories in the news. at&t's takeover of time warner expected to gain approval in november. combining at&t's distribution network has raised antitrust concerns. they are discussing conditions of approval with the doj. rupert murdoch's bid for u.k.'s sky could take longer than expected. there could be greater review.

the estimated completion date is mid-2018. his first bid on sky was last november. new york city is looking to join the bid for amazon's new at quarters. they are seeking proposals on how to pitch the tech giant. workforce diverse offer value to amazon. closing electrica asset management. it slumped 9.4% this year through august. hendry is known for his provocative statements and contrarian views. management. he bet against u.s. and european banks during the financial crisis. that is her business flash update. joe: what you need to know for next week. this is bloomberg. ♪

>> this is bloomberg real yield. leverett has been building up over the last year or so. >> broadly, yields are at a low. >> the fed is behind the curve to some extent already. >> a cyclical trade may be getting longer in the tooth. ♪ scarlet: "what'd you miss?" record highs for the dow and s&p, the s&p closing at 2500. united nations hold a general

debate tuesday with president trump scheduled to speech alongside the presidents of france, israel, brazil. joe: the federal reserve announces it rate decision from janet yellen. julia: the bloomberg global business forum ringing together for most leaders in business and finance wednesday morning. joe: one other thing, probable storm jose to become a hurricane categoryxt 48 hours, a categoryxt 48 hours, a two or categoryxt 48 hours, a two or so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed

across all your locations. fast connections everywhere. that's how you outmaneuver. alisa: i am alisa parenti in washington and you are watching "bloomberg technology." raised itss terrorism threat level to critical, meaning another attack is imminent. at least 29 people were wounded

when a homemade bomb exploded on a london underground train. islamic state reportedly claimed responsibility. the manhunt continues for the suspect behind today's attack which is being considered an act of terrorism. police are asking for photos and information to help solve the fifth terror incident in britain this year. president trump has called prime minister theresa may to offer condolences. the u.n. has condemned north korea's latest missile launch after the u.s. ambassador to the u.n. said washington is not planning for the retaliation. h.r. mcmaster added there is a military option for north korea, though it is not the preferred route. withdent trump will meet leaders of south korea and japan at the united nations general assembly in new york next week in the wake of that launch. that is according to an administration official. the united states continues to lean on china to use its oil