hassan planted the bomb at parsons green station. 30 people were injured when the device detonated during the rush hour. during a military grade, iran's revolutionary guard unveiled its latest ballistic missile today capable of reaching much of the middle east including israel. the move was a direct challenge to president trump who in august signed a bill imposing mandatory penalties on those involved in a range ballistic missile program and anyone who does business with them. 21 million fewer americans would have health care coverage from 2022 2026 under the senate republicans leaders -- latest plan to repeal in replace parts of obamacare. that is according to the brookings institution. the number likely s -- underestimates the reductions because it does not take into account difficulty states may

face setting up their own health systems. the estimate could the a blow to republican attempts to round up enough votes to get the bill on the senate floor next week. the white house says it did not sign off on what had been two dozen jet trips made by hhs secretary tom price. he took 24 flights on private planes since he became a cabinet secretary in february. the health department defended the trips saying his schedule was difficult and his workdays long. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪

julia: live from new york. with 30 minutes from the closing bell and u.s. stocks take a long weekend. trading unchanged in the close. miss?hat'd you scarlet: angela merkel made that to her tenure but at what cost? -- ise lithium battery si led. -- lit. julia: senator john mccain saying he would oppose the latest obamacare repeal measure and that deals a major deal to blow. is it came over? -- game over?

great to have you on. john mccain pretty broad shoulders, does he provide the lissacal cover for collins and susan murkowski to say we are also going to vote no? >> he may very well. they have been prone to saying no without fear of retribution but john mccain is someone who gettable vote. he is friends with lindsey graham, one of the cosponsors. his no vote tilde the last time but he had signaled some openness to the proposal and he fell back on old senate tradition and say we need to do regular order. what he means is we should hold hearings and assess how much it will cost and how many patients will be thrown off. brookings is saying 21 million. he wanted to have a debate about the bill and without that he cannot support it. is the bill dead, it is pretty darn close to my heart to come

back from a mccain novo. --no vote. scarlet: does that september 30 deadline preclude the possibility? >> john cornyn did throw out the possibility of a hearing and tried to do some things to accommodate what mccain wanted. in the end, when hearing -- one hearing i was involved in covering the original obamacare bill, it was in 18 month process. john mccain was being bought off with a single hearing and rushed through in one week. they will not drag him back onto the bill in any way and that leaves them short of the votes they need. joe: the last few times that the obamacare repeal replacement some furioust reaction from the white house. is the white house ready to move on? >> trump does not seem like he wants to. he was cool to the bill but

seemed to warm to it recently. there will be a political price republicans if they fail to pass the bill. they have the white house and the senate and the house, a lot of voters in the republican party would say pass the bill. the tricky thing to watch next week is next week was supposed to be the tax reform rollout. tothat big six were going put out their tax reform. tax reform, obamacare, if trump had to pick he would pick obamacare -- tax reform. julia: it has been one heck of a week in terms of rhetoric of what we have seen at the u.n.. withirst time wit ever kim jong un. responding to the racket -- rocket man line.

what do we make of what happened this week and do think the wise -- white house is emboldened? >> i feel like the rhetoric has never been hotter but the actual actions donald trump have -- has taken have never been more measured. people remember he met with the south korean leader and talked about downplaying their differences over the south korean free trade agreement and commented the chinese leader by central bank.the you have the most warlike trumpic we have had from

and kim. it may -- seems like the u.s. is edging closer to work we -- working with china. if you are confused, so are we. do not feel bad. do not pay as much attention to the rhetoric, watch the actions. there has been some encouraging steps on that front. un did not just denounce the u.s., he also is using rhetoric against china and that is rare for what is seen as strategic relationship for them. just to go back over the point you are making, it does feel like a huge step forward in terms of a greater cohesion between the likes of the u.s. and china in terms of tackling north korea. do we know where russia stands after this week? -- the russian

foreign minister was critical of some of trumps rhetoric and said this alec does language is not helping the cause. a unstable situation with .he u.s., a little off balance china and the u.s., it is not clear where they are. that is not bad news for russia. i am not sure they want to see a nuclear north korea but that confusion plays well into vladimir putin's hands. that is where russia is. i do not think you will see a u.s.-chinese russia deal right away especially with the baby steps with china. there is a long way for us -- this too layout. it is interesting to see the slight move together between china and the u.s. we will see how that plays out. thank you. coming up to my the growing reach of electric vehicles will make winners and losers out of a range of industries.

we are taking a live -- look at the lit etf. this is bloomberg. ♪

scarlet: lithium is the element to watch. it has increased of the benchmark lithium and battery etf must by 50%. here to talk about the fund and the lefty and fast the lithium market -- about the fund and the lithium market a. much interest in lithium this year? inflectionre at an point. people have thought about it as a play on personal electronics

and a niche market for electric vehicles. what is happening is electric vehicles are proving themselves as a mass-market form of transportation. banning combustion engines. that is changing supply and demand. joe: let's get to supply and demand. tell us about total lithium demand and if electric vehicles make a meaningful contribution or start to gain market share, how much could that change? guest: right now there is power thatawatts of is being produced in batteries. that is expected to double or triple over the next three years. if we compare that to any other, energy, oil, gold, those chains by single digits each year. doubling and tripling in a few years is a client -- different kind of commodity. scarlet: you launched in 2010 before electric vehicles were something that we thought would

be possible. how has the composition of what is in the fund changed? guest: has not changed too much. you have lithium miners which operate in australia and south america and watery producers. they are taking with them and turning them into batteries. newery are one of the components but aside from that pretty steady. batteryesla as a producer. they will be one of the biggest every producers in the world. julia: china is indicating they will do this effective push further to move away from fossil fuels. they are by far the biggest market, around 40% of the market. then you saw a huge inflow into lit index. the to see the kind

of flow in the etf that is narrow because there has been an incredible short interest buildup even the rally that we have seen. guest: what we are starting to see with the rise of the manic etf's -- thematic etf's, we are saying it with lithium. we are seeing it with other etf's, robotics and artificial intelligence. people are looking at future growth and they are concerned that they see these technological themes starting to emerge. joe: i want to know more about the etf structure but one more question on the lithium market. how elastic is the supply picture? prices surging and capitalism said that will cause more people to mine lithium. is that available out there? guest: there is plenty available but it takes time to get it out of the ground. it takes a few years from producing to selling.

people produce it by evaporating huge ponds of water and you are limited by the speed of evaporation. joe: obviously an incredible year and we just showed this chart. people who it believe in the lithium story and how much of this is this is a hot etf and i want to jump on it? guest: the etf world is hard to tell. in the mutual fund you see who is buying it the etf fund is hidden. we see foreign investors are buying it for a long-term hold -- by and hold investment. when you look at the lithium producers in your fund, are there revenues going to get a big bump up his it takes a couple of years for the demand to play out or the mining of that lithium to play out. guest: you have to look at two sides of it, one is the price of

lithium which has been skyrocketing. that is leading to earnings but how much are they going to output? output is slower and that is where we see the issues with how long it takes to evaporate water. that will be a long term driver. the output is what is going to be expected to grow substantially over the next year years. joe: we have a question from a terminal user. when the lithium etf was launched it was not just lithium people were excited about, it was the bouquet of rare earth metals, the coordinates that did not expand and supply, associated with china. i want to ask about one of the other ones, vanadium. smaller of these other commodities that are crucial for the high-tech sector, it is the same story? guest: it depends on each commodity. there are some that are important and some that are interesting but you cannot build

and etf around it. a lot of people are talking about cobalt. is hardin batteries. it to build and etf. copper and silver is important to solar panels. scarlet: thank you so much. julia: a look at some of the biggest business stories in the news. amazon may be bringing to hipotle and shake burgers to your door. commonwealth anchor lustral you plans to add more ranges for their ipo. that is according to people

familiar who say the business could be valued as high as $3.2 billion. they plan to complete the offering next year. jpmorgan is working on reparations for the spinoff of the unit. that is your bloomberg business flash. scarlet: it is time for our stock of the hour. shares of intercept pharmaceutical plunging follows 19 liver disease patients who died from the company's treatment. joining us to talk about the story, abigail doolittle. abigail: it is pretty amazing. how their sleep investors are -- how bearish lee investors are reacting. chronic liver disease drug that what happened was last week, they announced 10 patients had died from the drug,

big dosages. the update came out with a warning letter saying they are aware of 19 deaths. let's look at the longer-term chart. at $15 a share'd and went steadily. then it shot up 500% after the liver disease drug, the first trial was a success and then slowly declined. heart of the reason -- part of the reason, management was not translucent about the uses around the drug and we can see more of a decline. a 36% decline after the patient's tragically died. joe: that is what is striking about the chart. how much the changing expectations of this company were priced in before the news. shortagethere is a 20% -- 27% shortage. and street analysts investors thought that this liver disease drug could be used

for fatty liver disease or n. a.s.h. but it seems that is no longer the case. that caused the decline and management was not completely translates -- translucent. border issues a for biotech in general. company this is pretty specific. they are not talking about the deaths if you can believe it after disclosing it. time will tell. scarlet: coming up, apple's newest line of products getting a tepid response as the apple eight hits stores across the globe. from new york, this is bloomberg. ♪

scarlet: the iphone 8 hits

stores today and this is such an important product for apple, it is the most important product and its suite of products overall. as much as we talk about how critical it is, the growth trajectory seems so want cap. turnood news here is apple to positive revenue growth after three quarters of falling sales. you are looking at single-digit gains after quarters of double-digit percentage increases. we should see a bump in december. that is the holiday season sales quarter when the iphone x is released. iphone 8 may prove to be a concern especially if it is not sold out in its preorder state. consumers do not take upon it the way that a lot of people worry they will. it will be a huge rush to i it. -- buy it. not an endorsement.

lia: there was a lot of focus on theresa may and her speech on brexit especially for the three in -- the 3 million living the u.k. look at the chart and what this is showing is more eu citizens left the u.k. in 2016. if you look on the right hand side you can see it. than in any other year besides 2008. there are a couple of reasons. the concerns about eu citizens living in the u.k. and there were plenty that were concerned about what >> it would mean for them and their children but when you look at the shape of the pattern of the bar chart, what we have seen is a tougher period perhaps they did not want to go back to the eu nations that were struggling with the debt crisis.

we are talking about debt recovery and that is fading into it. it looks better at home. joe: i had not thought about that angle. the recovery in the eu, job prospects are better than they have been in a long time, interesting angle. scarlet: everyone wants to move to portugal. joe: i would. there is some frustration in the fed that inflation is not picking up as fast that here is some good news for the fed and others. people are not worried to much about deflation. areooks at how much people paying for inflation swaps that protect against deflation. the premium on the swaps, the lowest since 2011. we had the spike in late 2014 across 2015 during the oil plunges which were seen as

deflationary. these days, not too many worries. commodities and industrial metals doing fine, oil hanging in there. the economy more or less doing fine and the global economy doing decent. there do not seem to be too many forces.nary if there were fears of a fed mistak that could change. on the downside, it does not say much about the upside but not too many people are worried about the downside. sweet spot.are in a scarlet: the technical term is goldilocks. that is what the phd's are calling it. take a look at the major indexes with less than four minutes to go before the close. the s&p 500 above 2500. the nasdaq up just barely .1 of 1%. ♪

♪ julia: "what'd you miss?"

u.s. stocks trading flat into the weekend. you gave prime minister theresa may had a speech on brexit. i am julia chatterley. scarlet: i am scarlet fu. joe: and i am joe weisenthal. if you are tuning in live on twitter, we want to welcome you to our closing bell coverage. scarlet: let's begin with our market minutes. little change for the major indexes. the major indexes. the dow coming off by almost 0.1%.

scarlet: john mccain, the arizona senator said he would not vote for graham cassidy. it is unclear with the fate of the bill is, as the other three senators -- rand paul has said no. they have not said decisively which they -- which way they are leaning. gavelia said, mccain's no them room to say no as well. carmax up 8%, the largest seller of used cars. reporting better-than-expected sales, even when it had to shut houston stores for more than a week after hurricane harvey. pharmaceuticals off by 17%. a growing number of patient deaths for its only commercial drug, a liver treatment -- they were expecting it to surpass $1 billion in sales in 2021. joe: let's look at the

government bond market, starting with u.s. two-year and 10 year. today, two-year yields not doing much. the 10 year yield is moving nicely higher. littleto look for a perspective -- this is a two-year chart of 10 year yields. just talking where we have come in putting this week's fed decision into perspective. we're it nine-year highs. you have to get to late 2008 to get to these levels. well off the pre-crisis levels. unimaginable these days. it is a long, slow road to normalization. low byough we are historical standards, starting to creep back up. julia: let's sic look at what is going on in currency land. i will point out what is going on in sterling. soaring after may's speech. 134.88, the low.

we are in the middle of the road. yes, we have a sense of a two-year transition period, and the u.k. will honor its commitments. but we do not see specific financial terms. that leaves people confused. we did get a commendation from boris johnson after the speech. the dollar-yen was trading around 112. we did see the yen rise as high as 111.65, with risk aversion around north korea. that has rebounded, as well. dollar high inflation came out weaker than expected. the central bank hiking twice. i want to point out where we have the euro dollar and kiwi dollar trading. we have elections both in germany and the u.k. this weekend and in new zealand. the expectation is we get potentially a honk parliament in new zealand. just a level check ahead of

that. quiet formmodities, some of the major commodities. oil not really doing anything. at 1300.300 -- gold a little down in light of the fed decision. ugliness this week has been on industrial metals. particularly the ones you associate with china. manganese down 5%. nickel losing over 5% after today. an ugly day on these metals. want to keep an eye out for those. that is today's market minutes. scarlet: "what'd you miss?" investors seeking safe havens. flipping from a high after tensions with north korea ratcheted higher. north korea's foreign minister said they could test a nuclear missile -- hydrogen bomb in the pacific.

how is global uncertainty weighing on investor sentiment? we are joined by george maris, janus henderson investment, joining us from california. thank you for joining us. george: my pleasure. scarlet: you don't see it in volatility. i have on my screen a chart that illustrates volatility in currencies, equities and treasuries. you are really not seeing much of anything. if you go to the far right side, everything comes drifting lower. yes, volatility in currencies is higher than in equities or currencies. but it is not much to go on. where is the risk being priced in? right now the markets -- you are not seeing a lot of volatility because the markets are not terribly worried at this point. this has been a saga going on for several months. the markets have initially reacted negatively to this and realize there is a lot of bluster and the reality is probably more sanguine than everyone fears.

right now, a catastrophe does not appear to be on the horizon. that is critical. they keep powers and parties or play here -- the united states, japan, south korea, and china are reacting responsibly, that is critical in making everyone relatively sanguine. the underlying tone to markets, in china in particular, growth is strong. the economies are quite resilient. if the market overreacts to fear and you end up in a normalized environment, you have lost out on that opportunity. that is why you see the markets act much more relaxed than otherwise. cities next upmy -- mixed up. joe: george, i was looking at my terminal.

in nine days, s&p futures have traded at a 20 point range. the lowest range nine days ago was a little over 24.85. even with what you say, that is pretty extraordinary, especially given how we told the story about how we would have low volatility, the september would come raging back with headlines. george: that is really been a conundrum. there has been a great expectation you would see a lot of -- a big selloff in september. that has been historically when you see the big selloffs in the market. and we have not seen that now. what you're seeing is a tug-of-war between market participants. one, those were generalizing market weakness because they have been strong for the past year and extraordinary around the world, versus other market participants who see global economic backdrop that is not only good, but improving in most places. filled evenly

balanced and is why you were not getting any big moves up or down, aggregate. when the market starts to turn negative you get buyers coming back in because the backdrop looks good and is improving. things get out of control, you have folks that are more valuation-sensitive, focused on what has happened in the past, and are pulling back. it keeps thing in a tight range. it is extraordinary, but there is a rationale. scarlet: facebook is dropping its plan to create a new class of shares. facebook had been sued over this new share class. we are now getting developments that facebook is dropping the plan to create a new plan -- a new class of shares. zuckerberg was supposed to testify days from now, but they settled the lawsuit. we will get you more details as we see it. julia: what is the catalyst that breaks us out of that range as

you were describing? as we look for the next three months, how do you would just your portfolio? what is optimal to trade for the back end of the year? george: what is really critical is what happens with inflation around the world. generally speaking, it has been missing. we see signs of labor cost push coming forward. we see some inflation and commodities. but you are not seeing it yet, or seeing it in aggregate economic data around the world. if we start to get inflation, that inflationary push could drive stocks much higher. the reason for that is that it will drive earnings power. people can get pricing when there is overall inflation because people, consumers expect, that leads to higher earnings. that is going to be the critical element. that will allow central banks to normalize their extraordinary easing.

you will not see rates at zero or negative around the world. getting back to normal rate helps consumer psyche. helps people on fixed incomes, helps people lend, because you can get a positive return. that normalization could be the catalyst to look for in the second half -- the last half of this year. julia: i think everyone has forgotten what normal is. george merritt said janus henderson the speaking with us. hee after the break on why thinks the uk's a tough call for investors. scarlet: facebook dropping its plan to create a new class of shares. this is something facebook had been sued by shareholders over. we have been reporting facebook had settled this lawsuit, days before mark zuckerberg was due to testify. million to $7535 million in shares of facebook

over the next year and a half to fund his philanthropic efforts. facebook shares, marginally lower. this is bloomberg. ♪

mark: senator john mccain says he will vote against the graham cassidy-obamacare appeal proposal, being the second republican to oppose the measure and putting in doubt the ability of power leaders to enacted. he joins rand paul in opposition. senate republicans can afford to lose and -- lose no more than two to members of their majority in still pass the bill. florida will aggressively enforce new rules requiring nursing homes and assisted living facilities to have generators. 10 residents of the south

florida nursing home died in the sweltering heat in power outages following hurricane irma. the secretary of the state's agency for health care administration said florida does providect them to air-conditioning to their entire building, but must keep patients safe. a russian icebreaker was set on to the baltic sea. russia is the only country with an atomic icebreaker fleet. it is to transport cargo through the northern sea route. it is due to be delivered in 2020. 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?" commitment,on euro prime minister theresa may giving her clearest indication

they will pay for their departure from the european union. anna edwards has this report from florence. uber -- >> the u.k. prime her people here to the renaissance city of florence. she set out her vision of brexit . of wants a transition period two years. she will pay toward bridging the budget gap. on the subject of the divorce bill, she said the u.k. will make ongoing contributions. on citizen rights, she said she was guaranteeing that right. she gave detail on security relations that -- relationships. she talked about britain thinking -- needing a new model. problem with the third of model, there is not much detail. it'll be enough to allow the heads of state to roll the conversation forward to talk about trade.

that was the overarching ambition of what she delivered here today. the foreign secretary boris johnson seems pretty happy with what he heard today. he tweeted he was glad the norwegian model had been rejected. will it please the brexit voters back at home? will the transition plan ease investor jitters? [indiscernible] george maris, portfolio manager at janus henderson, are you less concerned in light of the speech that perhaps the u.k. is treading the path of a soft brexit rather than hard? george: i think it is a helpful step. but the underlying difficulties surrounding the united kingdom have not disappeared because of this speech. this illuminates the hard position the u.k. is an. -- is in.

once that brexit vote hit, it created a general feeling of uncertainty across both the corporate sector as well as the consumer sector. that manifest itself in weaker spending and weaker intention to

angela merkel is on course for her fourth term in office. there are still a number of possible coalition outcomes. charles, great to speak with you. what is best -- what outcome is best for e.u. unity? charles: i do not think any outcome is bad for e.u. unity. there committed to the european union. i think markets have identified that the liberal party, which could potentially be part of a coalition with marco, is slightly more skeptical about eurozone reform and therefore,

markets are more cautious about that scenario. it is not the most likely scenario. the most likely scenario is still a grand -- with the spd party. she is used to working with the spd and wants eurozone reform done in her legacy and probably final term. the so-called jamaica coalition is the second most likely scenario. it would not be bad for the european union. if we are talking about a , thiscoalition situation is a social democratic party that is unable to distinguish itself and separate itself from merkel's party when they tied together. they have been in a coalition so long, they cannot distinguish themselves, come election time. what is a deciding factor for the social democrats?

will not join we this grand coalition, we will step -- step aside. could it also depend on what we seen -- see from the association for deutsche land? george: you are right, there spd has had a difficult time distinguishing itself from a mrs. markel -- merkel. in a grand coalition working with mrs. merkel, it is hard for them to suggest they are different or could offer different policy. to be fair, every time they have taken part in government, they have extracted specific concessions from mrs. merkel. she has been such a centrist rather than governing to the right. you identified the two reasons why they could not take part in the next coalition. that would be a very bad score s party.schulz' in that case, he would resign and a younger mp would.

could other hand, it great soul-searching in berlin for how they can respond to the anger they are expressing. let's say they are at 12% or above could reduce the chances we end up with a renewed grand coalition. rising inentioned afd the polls. i have a chart looking at the different parties, afd near the bottom. that magenta rise rising up at 11%. i want to ask you a question about them. about a populist wave throughout europe? taboos,t declining specifically in germany? george: this would be the first time the afd would enter

parliament. they were a new creation in 2017. they did not make the 5% threshold enter parliament. this time, they will be there. it is the first time to have a party for the right to the established conservative party in national politics since 1945. it will create a jolt to the atmosphere and politicians will try to think how they can respond to this. there are both specific and other reasons why they are doing well. specifically in germany, it is arkel's decision to have liberal and generous migration policy toward refugees from syria and elsewhere. but there are general frustrations in europe with how politics is done, with a sense the european union does not listen to the concerns of the average voter, which explains why the afd have a pool to fish in. julia: if current polling is correct, there will be a lot of jockeyinging over forming this

coalition. how long do you think negotiations will stretch out? george: it will take a long time. last time, early december, if i remember correctly. , theyesence of the afd will do quite well, first or third overall, will create an morephere more tense, concerned about how voters can be told, or how they can convey to voters they are listening. that will take slightly longer, perhaps into december. it will have to be done before christmas. julia: great to get your insights, charles lichfield at the eurasia group. join us this sunday as the result of the german election commission. we will cover the election starting at 11:30 new york time. we check out what is on the third round -- nafta talks.

this is bloomberg. ♪ what did we do before phones?

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see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. caribbean has climbed to at least 27. there were at least 15 fatalities on dominica and six on puerto rico. other islands reporting deaths were80, what a loop -- guadalupe. they are facing weeks, possibly months without electricity. maria has through the turks and caicos islands today and for the bahamas next. about 80,000 square kilometers of territory we have taken from the extremists.

the state department they said there was a reason the coalition put so much focus on moving isis from its self-proclaimed capital in syria. >> not too long ago crisis was not only planning, but planned and carried out a siege from raqqa to carry out massive attacks in istanbul, paris, brussels. they wereew in raqqa, planning massive, september 11-type events. >> 6 million dead, 4 million iraqis and 2 million syrians. the trump report administration will replace its travel ban with new restrictions. according to the wall street journal, it imposes limits that vary by country. there will be cooperation with the u.s.. the threat posed a each country,

and other factors. 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?" the third round of nafta negotiations with mexico and canada will kickoff tomorrow. earlier this week at the bloomberg for them justin trudeau called for new focus. >> we need to make that next agenda promoting a trade by talking about the progressive side. that does not mean just making a progressive case for trade. it means putting forward progress of trade deals. julia: more analysis ahead of those talks. let's bring in antonio ortiz-mena. a former mexican diplomat and master negotiator. great to have you on the show with us. from what i understand, we have not seen a blueprint as to precisely where the u.s. stands

on contentious issues like pools of origin. pressure oning nafta to fire the type of deadline they are looking at, by the end of the year? there is an advance on the easier issues. that has been the focus during the previous two rounds. in the third round they will talk about rules of origin. as negotiations progress, they will get into tougher and tougher issues. mexico's foreign minister today remark that if mexico is not able to reach a trading deals come he said it would not be the end of the world. there could be life after nafta if the u.s. withdraws. what do you think he means by the? i think first of all,

he means what he says and that toico is absolutely ready walk away from the negotiations, if they believe it is not in the mexican interest to remain in nafta under some of the proposals made by the u.s.. modernize,at, proactive nafta. --orld a fair it characterization that we do not get the great nafta, or world without it, or a mediocre nafta would not be that damaging to the mexican economy? antonio: i would say mexico would rather trade under wto rules. the wto did not exist when nafta was in force. now there is a backup. it is not ideal, but better to have a wto trading world, rather

than focusing on an agreement that is managed trade or puts new barriers to mexican exports. i do not think that is the way to go. scarlet: is there room for mexico negotiate directly with canada if it does not get the terms it wants from the u.s.? antonio: yes. mexico-canadian relations are at a great point. that was not the case in the past. i think they would engage bilaterally. julia: the united states accounts for 75% of exports from canada. what canada be willing to negotiate with you if it meant upsetting the u.s.? i think canada is facing a similar but not identical choice to mexico. canada-u.s.prior agreement before the nafta. should nafta go away, canada and

the u.s. should -- could still fullback to the bilateral agreement. mexico, the first best is a regional, three party agreement that is reflected in a modern nafta. that is what canadians and mexicans and some of the u.s. are striving for. julia: this political angle for mexico with the elections next year and concerns about what further tensions in the country could mean in terms of political change and a shift, it dramatic shift in terms of the political environment, what works for mexico? to have this a drag on, or have a conclusion, whether negative or positive, for nafta? antonio: in my view, the best thing is to have a relatively prompt conclusion. i do not think uncertainty is good for mexican companies, for mexican producers, or canadian and u.s. companies that relate to mexico. i would rather have a prompt

resolution, positive or negative, rather than have these talks drag on for a long, long time. ,carlet: antonio ortiz-mena thank you so much. the former mexican diplomat and original nafta negotiator. joe: breaking news, movies downgrading the u.k.'s credit rating to aa2. also changing the outlook from negative to stable. it had been aa1. the reasons, they say u.k.'s public finances weakened significantly since the government outlook, and the fiscal consolidation plan is in question, debt burden beginning to rise. it says fiscal pressures will be exacerbated by the erosion of the u.k.'s medium-term economic strength. if you are not confident about the economy, that causes government finances to weaken. movies downgrading the u.k.'s

rating from aa1 to aa2. most of the dip in the pound has bounced back. a little bit of a knee-jerk reaction. up, nigeria'sg trade minister talks about attracting foreign investment and diversifying the economy. this is bloomberg. ♪

joe: "what'd you miss?" nigeria is a country with great potential in great problems. they have a large and growing economy, but are dependent on oil and business, plagued by red tape bureaucracy and corruption. today i sat down with okechukwu

enyinna enelamah, who was in town for the u.n. general assembly. i asked him if they were busy during the assembly. clearly there are activities directly connected to the u.n. general assembly. whether to support him or listen. we had a number of events around the u.n., i just came from one. i thought it was very useful. we also had bilateral meetings. we also had meetings with investment firms. [indiscernible] it is pretty much gone well. joe: let's talk about attracting investment. nigeria often ranks very low in terms of ease of doing business rankings.

what are you doing to address that, and what industries can you point to where there has been progress on some of these measures? nailnelamah: you hit the on the head by talking about that. rule is to, my oversee industry trade and investment. if i asked you what would be the most i could do to move industry and investment forward, [indiscernible] the first thing we have to do is commit to that. president has a council, with 10 ministers and other key players in the government. we also have an industrial council. it is geared toward creating the right amount of business. bank rankings, we want

to move up on. we have set targets by 50 places in a year. my sense is that by staying focused on this, we will get it done. joe: you mentioned to some of the meetings this week regarding diversification of the economy. oil industry is significant there. what industry specifically do you see progress being made, and better enabling a better environment? we have been an oil-dependent economy for a long time. [indiscernible] the two industries that come to , manufacturing and adding

value to commodities. and agriculture is linked to that. locally,ing to do more and ease of doing business, whether it is movement of goods or trade. the same thing is true for manufacturing. of the key things when it comes to industrialization is the infrastructure. we are working on improving our infrastructure. mention one i will [indiscernible] we must help them do whatever to be creative. joe: i want to ask you business-specific questions. there has been a proposal for 3% business natural gas tax.

what is the government stance on that issue? mr. enelamah: it is one of those [indiscernible] joe: the president has had health issues, he has been in london for treatment. in the context of talking to the international community to attract businesses, how much does the uncertainty posed by that, how do you assuage concerns? mr. enelamah: to the extent of health issues, there are many positives to come out.

the prime minister spoke at the general assembly and was well received. it has improved on a personal level and a country level. the positive that came out, you have a team. [indiscernible] in general, government is running well. mike conversation with okechukwu enyinna enelamah, nigeria's minister of trade and investment. julia: a colleague has an interview with panama's finance minister. how panama plans on rehabilitating its reputation after the panama scandal. this is bloomberg. ♪

julia: panama is trying to rebuild its reputation with the prime minister after the panama papers scandal two years ago exposed the central american nation as a sanctuary for fraud and tax evasion. we have an exclusive interview with the country's finance minister, asking him how he plans to rehabilitate the country's reputation. dulcidio: when we took office in that the lacked of compliance with international standards was the greatest threat to the panamanian economy. we started working, way before the panama papers, making sure with fightings

tax crime. we worked with the private sector to put in place a reformed package, changing regulations, strength training supervisingls, to make suretries, the legal and financial services of panama could not be used by organized crime. >> what specifically are you doing now? the first change we have accomplished recently, or least last year, we make sure all and companies -- all panamanian countries are complying. internationalwith

counterparts. is a fluide there relationship between all countries. and we are changing formation. panama is at the forefront of this fight against terrorism. it is the only country in latin america that is working against isis. we are fighting on financial terms. >> as a financial center, you want panama to be considered the equal of what? i am thinking of the cayman islands, panama has a lot of similarities to singapore, small country. were trade and financial connectivity -- we're looking at

singapore as a model for panama. >> are you maintaining panama's think secrecy laws? dulcidio: no. to theve access financial records of any citizen from panama or abroad. panama has joined in the conventional tax matters, and works with many different countries now. >> do inquiries have to flow through the panamanian tax authority? or can those institutions domiciled in panama cooperate directly with foreign investigators? dulcidio: they have to flow taxugh the panamanian authority. >> what about anonymous panama corporations and no look through to the actual owners? dulcidio: those are things of the past. >> the reason i ask these

questions, there are still organizations, law firms, promoting these features of the panamanian financial system. and you're telling me they do not exist any longer. areidio: lawyers in panama subject to the same regulations as banks. they know who the leaders of the corporations are. in the case of investigations, it must flow from panama to the country that requires the information. >> how does an investor or corporation gain confidence that panama is everything you say it was, for when it example, a key financial center and conduit for payments in a bribery scandal? we have reached an

agreement where they will pay a fine the panama of $220 million for using the panamanian and u.s. financial system. we are sending a strong message, that we will not allow them panamanian system to be used by organized crime. >> again, after all these steps you are taking, the panamanian tax, financial, legal system is as clean as what? dulcidio: we comply with the highest international standards. a was recently recognized as -- with a large compliance rating on tax corporations. yesterday we signed [indiscernible] with norway. we continue to work with countries on that subject. >> sounds to me the biggest

subject is perception. dulcidio: perception is difficult to change. that is why we are here. we are constantly telling the world what we are doing, to make sure panama and the hard-working people of panama are not for what has been done by a few panamanians. 's finance minister speaking with our reporter. what you need to know to gear up for next week. this is bloomberg. ♪

scarlet: we have a busy weekend then busy next week.

germans vote for new federal parliament on sunday, first holes published at 12:00 eastern. we will have live coverage starting at 11:30 eastern. joe: i will be watching the central banks. mario draghi on sunday, -- watching for a vote in the senate on the gop health care bill, and an outline of congressional republican's tax reform plan. scarlet: that does it. joe: have a great weekend. this is bloomberg. ♪

jeff: i am jessica summers and you are watching "bloomberg technology." let's start with a check of your first word news. theia is preaching calm as war of words between the u.s.

and north korea escalates. said the war in the korean peninsula is unacceptable. moscow also says a neutral european nation should mediate and the u.s. and south korea should stop joint military exercises. senator john mccain voted against the proposal becoming the second republican to oppose the measure. he joins rand paul in opposing the bill. the white house did not sign off from tomst two dozen price. price took at least 24 flights since he joined the cabinet in february. said his job is difficult and is working as long. the death toll in the caribbean has climbed to at least 27. other islands r