europe to head to washington for the north american free trade talks. signals that canada is rejoining negotiations after president trump today announced that he will terminate nafta as he pursues a separate deal with mexico. during an oval office event, the call the said he will emergency agreement the united states mexico trade agreement. senate leaders of both parties have formally requested american flies for government holdings remain at half staff to honor senator john mccain. the request contrasts with the white house, which raised its flags back to full staff monday after lowing the -- lowering them sunday. criticized mccain's vote to kill the health control repeal. the washington post reports president trump will not attend senator mccain's general.

said todayrs working that no cheerleaders should be processed at it for janna ryan and the unusual step of identifying six people by name, those behind deadly systematic crimes against the ethnic minority. >> michael most all genocide, there is no smoking gun and we do not have a copy of the direct order that says undertake genocide tomorrow, these. it is the case almost universally when these have gone they have courts here to be inferred from the circumstances. mark: the u.n. estimates with 700,000 muslims have fled from bangladesh. north korea accusing the united drill's toilitary

prepare for a foreign invasion. kim jong-un regime called movements inp south korea extremely provocative and says they threaten to derail the dialogue between the u.s. and the north. president trump late last week canceled mike pompeo's visit to pyongyang. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. i am mark crumpton. this is bloomberg. >> live from bloomberg world headquarters in new york, i'm caroline hyde. joe: i am joe weisenthal. >> stocks near's hot death of the session. the nasdaq again at record highs. joke own russian is what did you miss?

caroline: canada could be a party of one. insident trump says he was i new trade accord with mexico. elon musk takes a sharp left turn and wants to keep become a public less than three weeks after tweeting that something is to take it private. brazil's markets bracing. gaining in the polls but instead, a return for his party. what did you miss? the united states and mexico have reached a tentative deal to form a trade agreement. canada will join talks tomorrow. the canadian minister says freeland is flying to the p or for more, let's welcome our latin american reporter. we just had headlines talking about how the u.s. and met so's progress is a good thing according to canada. how's it -- how is it a good thing according to mexico? >> mexican negotiating team is

ecstatic about the day. in will recall a year ago the process began, a lot of people thought it would be easy for the u.s. and canada to come to a deal and that mexico would be the difficult one. today, we have obviously seen a different outcome. the -- the teams very happy with this. an interesting shift we saw today p for the first time ever, massive those saying they lived with a bilateral deal if canada doesn't come to the table and reach an agreement with the u.s. and an -- and an understanding with the u.s. it has been insisting for a year this is a trilateral deal here at a fascinating point and it potentially puts a lot of inssure on justin trudeau terms of incorporating into tootiations here, planning send its notice to congress on friday. just a few days to get on the same page with the other partners. >> presuming that canada does -- in the deal,

>> it is a rebranding are trump is known as somebody who focuses a lot on brand or it we have seen with his own company before running for president. a rebranding of something that has been around for a while is not entirely a new idea. nafta would really be a 2.0. >> all right here to have to wonder how much credence we should give to the negotiations. they are not poised to reduce -- to do so right now. >> a fascinating in, i sat down and a group of reporters the u.s. trade representative who emphasize that the u.s. government and the trump administration sees its current trade promotion authority as authorizing a bilateral deal with mexico and not just having to be trilateral a lot of people and congress may disagree and

say now, we gave you authority for a fast track to negotiate with tito's not just one. with only mexico, something they would see play out in the next 90 days or so with the goal of before leading up -- leaving off in december. joe: tell us how the process is with the incoming a ministration, trump effusive in for him today. the administrations are totally on board and in sync question >> that is the way they are presenting it. we heard last week, the reporting was that are marissa's team was concerned about the restriction that nafta passes energy proposals would put on the incoming government for how to deal with foreign energy and foreign oil companies. the country that just opened its oil sector after 70 plus years, a close sectors a few years ago.

it is something they presented as resolved. the nafta representative underlying it was never in his opinion and -- a big issue. just getting agreement on the finer points and language. that is something our reporting says was resolved in the last couple of days. getting to this moment and this announcement today. >> thank you for being with us. the u.s. department of agriculture announced u.s. farmers will receive $4.7 billion worth of it mission -- of initial far made. or more, let's welcome our u.s. reporter. biggest winner? standpoint, you .ave 3.6 billion dollars every statement from every organization so far has said

can give $290 million of direct aid, and $559 million worth of government purchases. corn and wheat and dairy but none of it matches the damage from long-term losses and even economic -- facing today p they are the winners in the package. caroline: do expect more? >> you had good news today from markets are nafta. sounds a lot to mexico, anything that helps markets on that end. it is positive towards market. willis a direct aid and certainly help in september but it is also a sign of the trade war's ongoing. damagedset for some

farmers. joe: tell us a little more about the agricultural community's response to today's nafta or mexico deal news? >> the other is very happy whenever they see stability restored to trade relationships. .t seems i got going on canada again became more problematic than a lot of people initially thought about. with of that had to do very policy. more pressure to have concessions on that is that is .ne mark the watching livestock -- livestock markets are reacting very positively to the news. >> are farmers who say we do not want a floor hand out to trade any actually saying, no, we will not take that? >> [laughter] far made has been an institution since the great depression. i think the checks will get cached when they show up in the

mail. a key number. the last forecast shows farm from falling half. this will not be turned down you are seeing a lot of second-guessing especially in trump country. you start asking, how does this layout for the president? >> thank you. up, $82 billion in unless scraps his plan to take it private. this is bloomberg. ♪

>> for tesla, after 20 days of willow bay, won't pay, elon musk scrap plans to take the company private. a majority of shareholders say they will remain private. the sentiment in a nutshell was, please undo this. i think what is better is to remain tesla public. executive, and chief lee, what should we take away from this 20 day roller coaster for all things tesla? >> you know, look. this guide was somebody who believes he has a great reality distortion field. it may not be as good as he thinks it is. he is definitely trying to backpedal. he generally does something that is illegal. getshly doubt that he

hammered for it. we're living in a regulatory environment where this is not thing that they want to go after at this point to a politically, it is not a win. it would be a difficult thing to process it. he deftly did something very illegal here. aboutk today's's news investing $500 million in uber, sorry, toyota investing $500 million, probably more important to the future of tesla because they really need a car company to get it right. there is a great analyst who mentioned this several weeks ago , it would be a car company, ford, fordoyota, does need this.

>> definitely pretty far behind. chrysler doesn't really have the cash. i think there is a range of different options. i think heavy -- joe: i think elon musk is not it is nott public fundamentals, i think the chief --rt thesis has been

say it was clearly illegal what elon musk did come we spoke with several attorneys who spoke with the fcc back in the day, who said it is illegal and there is a different standard of what material information is especially because it is bombastic and prone to putting out wild concepts out on social media. there is that aspect. at the same time come what does it say about his ability to bring in a big investor like pierce -- like he is saying. >> i think it is really will at somehat we point have a supreme court decision that looks at whether something said on twitter is immaterial statement. at some point haveit is a really intereg argument. some people say he was on ambien. it will be interesting to see

where that enters in a public statement are not? i would be the first to say statements made on twitter by investors should not be seen as materially public. where is the line between when you get up on the stage for the you arece, obviously, long or short, versus saints of the on twitter, how important does it have to be to be yourially relevant but when are the ceo of tesla and publicly set on twitter, i will roast the shorts, then you go and do something that was obviously not true, and make it iblic statement about it, think if they were willing to prosecute it and go up against him, that is a good argument. for ambienotential and the like. what about your view and perspective on who could be there to help elon musk?

who would be a good fit? >> he needs to thinks. an investor from a large public car company. would you want to go and work as a second in command to elon musk? he doesn't want one. classes probably the reason no one would want to do it. >> one of zuckerberg's greatest strengths was understanding that he needed sheryl sandberg. he did it at the right time and was brilliant for the business. i get the feeling with elon musk being a lot older and mature -- think it's thei board wanted to, they could shove this down her throat. they know they do not have the funding secured. they should probably shove the

stone his third at some point but finding someone who wants to be there and will do well, it will be pretty tough. >> thank you very much indeed. theout for the stock of hour. theing the most since april u.s. and mexico have a tentative trade deal to replace nafta. joining us now for more, up 4.3%. >> yes. it continues to rise here. having a great day and a lot of nafta, actly tied to trade deal with one leg of the stool. in that0% of the trade busily goes across the border. a huge portion of its business naftais really tied to and a lot of the rail traffic from the u.s. into mexico. they connect with mexico city, cues that nafta would

be broken down and swept away, now that it appears to be, the staff bring out. >> how much of the business model was tied to coming to some kind of agreement? >> you're talking about 40% of its revenue. not only what they are getting from the freight is this but keep in mind they have a lot of peso exposure. a lot of strength of the fluctuation related to trade, they have been affected to some extent as well. if it is a stabilizes, that helps as well. a when you look at why kansas city southern specifically is doing a lot better, just keep in mind almost

100% of their business is contained within the united states. kansas city is the one going across the border. that is why it lagged so much. see effects was the america whatever we're going to call it, you see people will probably want to make a bet. >> you can see it. at the bottom. thank you. most valuable company is plenty dribble down iphone x. this is bloomberg. ♪

>> plenty dribble down the iphone x, three new models. joining us from los angeles, we always get the scoop and we love it. an iteration, but no wholesale change? -- one is simply an upgrade, iphone x, at its current screen size. then a larger version of the iphone x. in another version that will actually be cheaper around $750. side.of focus on screen >> why will this be cheaper? >> it is confusing. to larger ones. the iphone x will be -- there will be two new bigger ones.

the smaller of these, the lcd the panels.to make >> i am viewing this home move as a hallway for apple to push of the apple price of the iphone offering. how much will this go toward the goal of selling stuff for more? it is a good question. 796 dollars, they get that in 2018 on thearter of heels of the iphone x. they are moving the price up more because they're coming out with more in the price range. it hundred dollars for the iphone after the first time, potentially even hitting the 840 range in the next few quarters. >> as you're talking about, there will not the elite in the smart phone technology. what is the next resolution whether from apple or some competitor, what is the next

maybe not next year but the year after. >> i like the effort. >> augmented reality, the next big in, apple is working on it and samsung is working on it. company we're talking on the show, in terms of smart phones, that is the next big thing in the smart phone and p are at one or two years away from that. i bet on samsung in the first on that front. >> how often do we upgrade the phones. the market close next. until that close, positive territory as trade negotiations

softened between the u.s. and mexico are from new york, this is bloomberg. ♪

>> "what'd you miss?." the s&p 500, nasdaq closing at record highs. nasdaq, 2500 the on the s&p 500. joe: if you are tuning in live on twitter, we want to welcome you to our coverage every day from 4:00 to 5:00 eastern. caroline: we begin with our market minutes. it was green across your screen, up a full percentage point for the dow. the s&p 500, a fresh record high. volumes were only about three quarters of their average. the nasdaq trading above 8000. the dow at its highest level since february. lisa: let's dig into the winners and losers. let's start with kansas city

southern, what we were just talking about. having its best day since april, 2016. it is at its highest since 2014. this is all about nafta or perhaps the renegotiation of it completely. cross-border traffic with mexico a big deal there. advanced micro devices surging to the highest level since 2006. a new graphic card over the weekend. the seventh straight day of gains for that company. tesla, you know what is happening there. people are not that happy with the stark reversal after 20 days of drama. gamestop having its worst day since march 2017. ais all has to do with takeover that didn't happen. joe: let's look at the bond market. rates are higher across the board today. treasuriesle selling

. two-year yields up to 2.64. 10-year yields up to 2.85. continuing the 21 basis point spread. caroline: i'm all about the rebound of nafta. the mexican peso and canadian 0.07% at theby moment. remember, the best performing overall fx rate we have seen all year, the mexican peso. this bilateral agreement they reached with the u.s. at the moment. let's check out our function wcrf. emerging markets have been buo yed by what has happened with the mexican peso but today, we have seen it correct slightly. the reason, italy.

actually, not hurting quite as much as expected. italy's deputy prime minister coming out and saying the populace government would start the process of closing the eu financing plans. the eu managed to put some higher. dollar-lira. we are seeing the dollar strengthened against the turkish lira. the turkish lira is the weakest performing currency today. relative calm from markets being shot has come back with lira volatility jumping to exceed 40%. joe: commodities careen across the board. oil ticking up a little bit. gold gaining but not that much. a little action in agricultural commodities. enthusiasm do with

and excitement over a potential trade deal with mexico. hogs upp about 2% and about 5.8%. lisa: the senate is reverend late senator john mccain. majority leader mitch mcconnell leading a statement on the center floor. senator mcconnell: i was privileged to spend a small share of that time with john. insat on his back porch sky,a under the desert replaying old times. john did things his way these last months. for his colleagues here, the time confirmed a sad but obvious truth -- the senate won't be the same without john mccain. i think it's fair to say that

the passion that john brought to his work was unsurpassed in this body. in more than 30 years as a toator, he never failed measure a razor-sharp wit, a big heart, and a strong spirit. when john saw an issue the same justou did, you found you found your most stalwart ally. when you found yourself on the other side of that table, as i think all of us learned, you were in for a different kind of unforgettable experience. beside johnserving was never a dull affair. john and i stood shoulder to shoulder on some of the most important issues to each of us, and we also disagreed entirely on huge subjects that helped

define each of our careers. john treated every day, every issue, with the intensity and seriousness that the legislative process deserves. he would fight like mad to bring the country closer to his vision of the common good. when the day's disputes were over, that very same man was one of our most powerful reminders that so much more unites us than divides us, that we should be able to differ on policy and state united in love of our country. it, we himself once put are arguing over the means to better secure our freedom and support the general welfare. it should remain an argument among friends who share an unshakable belief in our great cause and the goodness of each other. john and i sure had those fights. we sure had that friendship. i'm just glad we never found

ourselves in opposite dugouts. i spent yearsand as neighbors in the russell building. seasonwhen softball rolled around, our offices would take the field together as one united team. a wounded war. a a wounded war hero and childhood polio survivor, we didn't necessarily have the makings of a great baseball duo. i took the mound once or twice but we mostly offered moral support. support, that is really what john mccain gave this body and this country for so long. while john probably served with us as the senator for arizona, he was america's hero all along. just this month, congress

finalized a major bill for our all volunteer armed forces that we named after john. this might seem like a small detail but it was a fitting capstone for years so thoroughly defined by service in and then service for the ranks of those who wear our nation's uniforms. we are listening to senator mitch mcconnell remember senator john mccain, talking about his legacy and his import to the entire congressional body. president releasing a statement about senator john mccain. "despite our differences on policy and politics, i respect senator mccain's service to our country. i have signed a declaration to fly the flag at half staff."

we do want to talk about some of the other developments in the market, in particular having to do with some trade tensions softening today between the u.s. and mexico. joining us with more is dan suzuki. dan, a new record high today. how much can we attribute that to the softening in the relationship that we saw with the u.s. and mexico? clear that itetty was a reaction to the positive news with mexico. if you step back and look at the past few weeks or a few months, it is really about fundamentals. if you look at the headlines over the past three or four months, you would have thought until this week that things were getting progressively worse and worse. the reality is we had four, potentially five months. trade has escalated over that period, stocks have done well. that's really getting back to the fundamentals and how great

second-quarter earnings season was and things like that. joe: we are used to the stock market over the past few months overcoming negative headlines, weather turkey, trade, facebook earnings. the first day that one of these issues, maybe one of the minor ones, fell away. dan: headlines can swing both ways and today was a day when it swung for the positive. the lesson of the last few months is really how to parse out -- the best thing is parsing out the noise from the fundamentals. we are focused on profits, liquidity, and sentiment. i was looking at sentiment being believed -- being buoyed from before. it seems to be china right now

in terms of the risk appetite as opposed to what happened between mexico and the u.s.. dan: today's headlines are all about reading through what this means for the future of global trade. is notson of the rally just because of what is happening in mexico. it has implications with canada, our trading room with europe, china. caroline: it is just that they are supporting the yuan. be honest, we are not focused around that optimism and sentiment game. we are focused on the fundamentals. china and the rest of the world going to escalate where it causes collapse? we don't think that is the case. the market price did a lot of the bad news until today but not a lot of the factors. joe: the fundamentals are really

good. everybody knows profits are not only strong, but the profit outlook is very strong in the u.s.. but u.s. stocks are now at an all-time high. do you feel come at this point, there is still good news in the fundamentals that is not being reflected in the stock market? cycle, when you look at second-quarter earnings season, there's a lot to like about it. despite the fact that currency is less than a positive. tax, even if you take the tax benefit way, pretax profits are accelerating. there's tons of liquidity out there whether you look at bank lending standards or what have you. sentiment, i think, is quite bearish. lisa: when do we hit the peak?

dan: are you talking about the markets? lisa: the markets, earnings. dan: investing is kind of like potty training. i don't know if either of you guys have kids. we just finished potty training. if i ask you, when is your child time,to go potty the next you would probably give me some big estimate based on the last time they had a drink and the last time they went. but that's not as how you are managing your potty training. you are looking out for the signs, the signals. cross their legs, sit in the corner, do the potty dance. that's what we are looking for the market. -- we're going to be looking out for the signals.

caroline: it's fantastic. old, and only one year i have so much to look forward to. dan suzuki, fantastic. let's get to first word news. the white house has moved flags back to half staff. in a statement, president trump says, "despite our differences on policy and politics, i respect john mccain's service to our country." senate leaders of both countries had formally requested that american flags at government buildings stay at half staff to honor the passing of mccain. they had been lowered but were back at full staff today. mccain died saturday after a battle with brain cancer. president trump today welcomed to be of kenya to the white house where they discussed issues of which will benefit and

concern. secondsident is the african leader to meet with president trump in the white following a prayer -- following a visit from nigeria's president earlier this year. renew ae here to partnership, especially in our fight against terrorism because of the neighborhood we're in. lady melania trump, who helped welcome president kenyatta and his wife to the is planning a solo trip to africa this fall. the continent of europe can no longer count solely on america said frenchecurity, president emmanuel macron. snarledations were

during a deadly shooting in las vegas last year. a report today from the federal emergency management agency and local departments said first responders were overwhelmed by 911 calls and the number of victims. they said that, and false reports, led to confusion in the minutes after the attack. global news, 24 hours a day come twitter,d at tictoc on in over 120 countries. i'm mark crumpton. this is bloomberg. caroline: senate majority leader mitch mcconnell is still speaking in honor of the late senator john mccain. mccain was a global figure. among severalm countries making touching tributes. president trump made a statement moments ago promising to fly the

flag at half staff until his interment. a rare show of unity. mccain had a very complicated legacy i a longtime stalwart -- legacy. republicanstalwart -- the trump wing of the party has sort of taken over, mccain has found more favor with democrats than republicans. >> i want to focus in on this more. he has a lot of people praise him for his bipartisanship. a lot of love for him among members of the media who interacted with him over the years. what about his support among republicans? is there still a mccain base within the republican party? >> it is probably still there.

there are a number of people who who arehe public eye speaking out in the same vein that mccain did. but it is a shrinking part of the gop. president trump's takeover of the party is pretty well complete. republican candidates running in primaries are tripping over themselves to express their support for trump's agenda. mccain, although he agreed with trump on a number of policy issues, really different greatly world andhip in the how that should be handled. what do we know so far about the replacement timeline for getting someone else in former senator john mccain's seat? said herizona governor

is not going to make any decision until after mccain is laid to rest on sunday at the u.s. naval academy. they have probably got some names in mind. there have been a few out there for a while including mccain's widow, cindy mccain, who had previously expressed some interest in filling out the term. there is a former chief of staff to the governor who might be a contender, who is a former arizona politician. there are a couple of other names that are being floated out there. pretty much right now, everyone is trying to stay away from the talk of a replacement until the final services. >> the arizona republican primary is coming up to fail -- coming up to fill jeff flake's seat. is there someone in that race to holtby mccain mantle? >> not really, not in the

republican primary. toly, she has been trying align herself more closely with the president more so than mccain. respect toays some mccain but she is not running to replace him or to be in his mold. areother two candidates very much the antithesis of mccain. kelly ward challenged mccain previously in a primary and former maricopa sheriff joe arpaio are definitely trying to be the candidate's closest to trump on this. we will have to see whether the democratic candidate actually tries to run on mccain's legacy during the general election. lisa: thank you so much. senator john mccain was elected to the senate in 1986. a former prisoner of war in

vietnam and the republican president -- the republican candidate for president in 2008. ♪

it's less than two months before brazil's presidential elections and investors are ideag to grips with the that results might not be what they want. radel ise brazilian really -- the brazilian real is really getting clobbered lately. the main factor is guatemala -- main factor is lula, the former president who is in jail.

the polls show him at about 40% in voter contention even though lula is likely to be allowed to run. the question is, how many of these votes can he transfer to place.son he is in his joe: so there is a presumption there's another candidate who would absorb most of those votes. tell us about him. julia: he was the mayor of sao paulo. it wasn't a very successful term. he didn't manage to get reelected. for four ran sao paulo years. another point that is making investors a little skittish is the mandatory tv and radio ads start this friday, and lula is

still a candidate. he can appear in the ads as a candidate until the court decides he can't run. lisa: brazil just emerged from its worse depression or recession ever. it was growing. what does it say about the nation that is currently is -- that its currency is currently the weakest since it was mired in that recession? julia: we have a trucker strike this year, which really was a watershed moment. growth prospects were at 3%. truckers paralyzed the country for 10 days, then everything changed. growth forecasts were cut to 1.5%, 1.2%. it killed all the prospects of market reforms that investors were hoping for. thes really all about october election at this point.

julia, why does the electorate want the workers party back in control? julia: for a lot of people, and a lot of lula's voters, life was much better under lula. the economy was growing, stocks reached what was their peak. that was when there was the commodities boom in brazil. it's a very different experience to now. the government is talking about cutting pension benefits. 13 million unemployed. days,ou look back at lula life was better for a lot of people. joe: what is it that investors are so concerned about the left party? i guess investors typically do get concerned. -- is there a specific policy they are promoting that would be particularly bad for markets?

julia: when lula was still campaigning openly before he was arrested, he was talking about no pension reform, scaling back on the labor reform that had already passed. he talked a little bit about capital controls and things like that but it's not fully clear because lula is not participating in any of the debates because he can't. thead, because he's just vp, hasn't been able to voice his views either. differenthoping a candidate would make it to the runoff. better. performing much sao paulo bureau chief , julia lynn j. thank you. -- julia leche. record rain.

a check on this year's hurricane season, next. ♪

the: i am mark crumpton first word news. a spokesperson says the canadian foreign minister is cutting rejoin trip to europe to negotiations after president trump announced that he would be "terminating nafta," as he pursues a separate deal with mexico. the president says he will call the emerging agreement the united states-mexico trade agreement. texas company will not be

allowed to post online plans for making untraceable 3-d guns. the ninth circuit ruled that it would pose a security risk and could be a acquired by felons or terrorist's. investigators working for the human rights body says that myanmar's military leaders prosecuted for genocide against rohingya muslims. they took the unusual step of identifying six people by name responsible for the deadly ethnic crimes against the minority. all instances of genocide, there is no smoking gun. we do not have a copy of an order that says "undertake genocide tomorrow please." but that is the case almost universally when genocide goes before the courts. the intent has to be inferred

from surrounding circumstances. than 700,000 running the muslims have fled myanmar for neighboring bangladesh. a heat wave building in the northeast u.s. this week. temperatures will spike well into the 90's and with the humidity, the heat indexes will push beyond 100 degrees fahrenheit. 56 million people are under a heat advisory. the next cold front is not expected until at least friday. global news 24 hours a day on air and at to talk on twitter, powered by more than 2700 journalists in analysts in more than 120 countries. i am mark crumpton. this is bloomberg. let's get a recap of what happened in the market. new records for the s&p 500, as well is the nasdaq indices. failing to surpass the february highs. there was a bit of a selloff in

the bond market and the dollar weekend --weakened. caroline: trade tension relaxed, but "what'd you miss?" hurricane lane we can from the category 5 to a tropical storm on friday before hitting hawaii over the weekend. the system is still dropping inches of rain as it slowly moves across the state. we are joined by the chief weather analyst -- i have just come here to america, and you have all kinds of different cautions than i have a home. what should matter, i brace myself for in 2018? >> there is nothing in particular to brace yourself for now. there's a lot going on. keep an eye out. we are watching the atlantic. there are signs in two or three weeks we will start to see more activity in the atlantic as conditions become more favorable. it is one of those weight and situations and see

over the season. lisa: as mark crumpton just mentioned, it will be incredibly hot, and how does that play into these storms this summer? >> there are certain correlations in all weather in created some way, it's really the ocean temperatures over the atlantic we are most concerned about. we have seen these surface temperatures rise to above normal levels in the gulf of mexico and certain portions of the atlantic. if conditions in the atmosphere were favorable, they could strengthen rather quickly. it is too early to say where storms will form, but conditions are better than they were a few weeks ago and warmth can play a role. joe: we're looking at the map. tell us about the anomalies on the map. >> across the atlantic, the season has been so quiet. it started off with a banging back in june.

but since then it has really died down. on the east coast, we have not heard of any tropical activity -- lisa: do not say that. >> it ties into what you are saying. stormsave not been any to sop up this energy. the warm water is feel for the storm spirit of the atmosphere has not been conducive to storm formation. is conducive water to storms, but conversely, the storms diminish in warm water, so if we go for a long time without storms, that allows the conditions to build. >> exactly. the surface temperatures are just one part of the equation. another part is a very slowly developing el niño across the pacific that tends to make the atmosphere less conducive for tropical the veltman overall. even though we are reaching the seasonal peak, we are not looking at an above average hurricane season. we are quite confident it will

be slightly below average. that is what the forecast are calling for. subthere are smaller seasonal signs that we will get a storm or two. caroline: is it all about the energy markets when we talk about this? >> the will and natural gas prices -- the tropics have played a different role the past two years compared to the 2000's tree beasley, we had so much natural gas production offshore in the gulf of mexico. this time around, it's completely different as we have onned so much natural gas the demand side in so much production has moved on shore. tend toult, the storms have a neutral impact or is slightly bearish impact for prices. it will not directly impact production. ae: so there's been structural shift in the market. that should mean over time storms mean less to the natural

gas market than they used to? >> exactly. last year with hurricane irma, we saw a rather strong hurricane hit florida. we saw a bearish impact. we solve more natural gas injected into storage than we otherwise would have in that weather pattern. there is a structural shift. traders are still trying to get used to that. isa: i have to wonder -- it one aspect, the gas futures, that is affected. another is the insurance companies. wonder, based on the weather patterns, are there certain regions that are intentionally more vulnerable to big storms going forward? we know something that based on the time of year which region's most at risk. you can look at maps and each month, different was of the country become more at risk. later in the season we specifically look for storms that can spin up in the gulf of mexico, spin up on the east coast. these are areas that are

classically just prone to hurricanes, and a lot of times as see more storm damage well. the sea levels are higher than they were before and the storm .urge can be worse insurance companies have to take account of that as they move forward as well. joe: real quickly, anything in terms of the season? season extends through november. we are not looking for anything extremely active area of the mid-september period, will probably see a couple storms. it is a matter of tracking them and seeing where they are forming. caroline: -- lisa: jacob michael, thank you so much. always fascinating. coming up, does the future of tech belong to mark zuckerberg and jeff bezos, or does it belong to everyone? gavin wood on the future of tech. in thed get involved

conversation. send me a tweet. my handle is -- check it out. this is bloomberg. ♪

joe: "what'd you miss?" tightenvalley titans their control over tech. but the promise of ayptocurrency promises decentralized future, or so it's proponents claim. let's bring in gavin wood. he is the cofounder of parity

technologies and the web free foundation. he joins us from london. gavin, i want to get into some of the deeper, philosophical questions, but let's start with something cruder. what are the challenges of building infrastructure in this space during a downturn and how that saps enthusiasm, saps funding, things like that? gavin: hi, joe. us at parity for technologies, it's not a huge issue because we are basically venture backed, so the market does not have much of an effect on us day today. in some ways, it is better. we find that there is quite a lot of noise when the cycle is going and it is not so easy to tell the people who just want to be in the place, or the people who are truly developing technology. drivers of the main

bigreum last year was this surge of ipo's and the tokens that build on the technology. you do not hear much about them these days. what is going to revive people's interest, in your view, inditex of things you are working on? that was the first prominent use case, let say. i do not think that over yet. a while to's have run. i think there will be a lot to say evolution down the line, but the basic idea of having an open market, so to speak, and joining crowdfunding projects is something that is not going to go away. is a lot more innovation in terms of managing which projects will get the most interest. managing reputation, but also

the rights of the token holders versus the obligations of those who are selling. something hindering the price of cryptocurrencies across the board, gavin, is the ability to scale, whether it is bitcoin, either -- ether. this is something you are looking at, the interoperability of various block chains. how do you see the scaling question being tackled? good one., it's a the scaling is definitely something people have been working on for some time now. there is some thinking going on about it. assyrian, certainly, is trying to push forward in the -- if. him, certainly is trying to push forward in the scaling with ding, where of shar databases can split up the blockchain in separate beds so they can be processed in

parallel. parity is also working on po lka dot. that brings scaling into its center point. the individual pieces can themselves be very context may the operate in. they can all proceed together and there is no need to process everything in line as there is in traditional blockchain's like bitcoin. if it goes to everyone and away from big tech, who makes money? gavin: the principle is for the market to decide, but it's a very free industry market. network effects generally require that there be relatively few winners. reum,dea with ethe

blockchain platforms in general, thehe rule is more for plurality of the participants, including not just those who go to buy the service were good, but also those providing the service or good are much more pluralistic and we can innovate because of these low barriers. joe: gavin, light last year --late last year, the project , lost aioned, polka dot million dollars in a glitch. the money was frozen. what kind of lesson did you and others take from a pretty huge critical thing that can be wrecked with a keystroke? : yeah, the first lesson i learned from that personally at least was there will be bugs. are mistakes. we are human.

we do tend to make them. no matter how much we would like to imagine processes to prevent these mistakes on happening, realistically, they are going to happen. for me, the bigger lesson to rather, given that there will be bugs, how do we manage them? how do we mitigate them in the future? -- theis particular bug wallet freeze -- and it's important to know this is one of instances of something being locked or stolen because of bugs. can wel question is, form, do we have the governance in place to come to an agreement about what should be done in these cases? in most cases, it's very simple. blockchain really is here to ensure property rights are respected. respected on decentralized system. the real question my mind is not whether these funds should be unlocked or not. property rights suggest, really imply that they should be.

the question is more about coming to a consensus over how that unlocking happens. sorely lacking in the spirit that was a pretty clear lesson to learn. is something that from the get-go, i have made sure can address these things when they happen by introducing governance from day one. it is very difficult to retrofit governance. but if it's there from the very beginning, the exit tatian is laid, and it means when these problems come along, we have some sort of -- we have some scripture to refer to and technology to ensure that when the fixes are done, they can be rolled out easily. joe: all right, gavin wood, cofounder of a theory and technologies and the web 3.0 foundation. thank you.

reporte: tiffany's will earnings tomorrow. we will tell you what to expect from the luxury retailer. this is bloomberg. ♪

caroline: "what'd you miss?" tip is reports tomorrow and investors are looking for the high-end retailer to smash expectations. there was a refresh of the iconic story here in manhattan. ♪ simply $5,000 --

$275,000. that is the price. the item, a greenhouse in solid sterling silver. make pieceshese can this beautiful. reporter: it is the star item on the recently renovated fourth floor. -- the man leading the revamped is matured -- is richard moore. >> it is such an important store from a brand perspective. it represents sales and globally, we are more important, and icon of rand. it has been here since the 1940's. it's really ingrained in popular culture, and we use it as a launchpad for many activities

that we do across the world. we start here and work out. led the fourth floor renovation, including the store restaurant. it has been wildly successful. my job is to create experiences for clients. one thing that people enjoy places. instagramming something that helps draw traffic to the store is one part of the assignment, but it is also to create that amazing environment. the idea of thing in this luvox, being entertained and able to ore the said tiffany's afternoon tea is hugely important for our clients. reporter: the ceo took the home last year and the design team thebeen quick to overhaul

store. they have debuted new product lines and refreshed advertising and launched a perfume, the first tiffany's product to be sold outside a tiffany's store or website. they reminded the older customers why they always enjoyed shopping at tiffany's. the third quarter grew 7% and their stock is among the top performers in the luxury market locally this year. people are worried given the elevated investment. the reality is there's so much great change an opportunity in the company with the new management team, the ceo, board of direct is, digital marketing, product innovation, the design , this companyly is transforming the way it activates its brand. i think that will be really important and reporting to shareholders.

it is fair to say there is more to come? >> there's definitely more to come. reporter: in the chandra, bloomberg news. caroline: and of course that was emma cheddar reporting. the: it is time for bloomberg business flash. shares of aspen insurance rising after reports that they bought the revit equity -- private -- they offer insurance and reinsurance coverage. shares of next door are rising companye cash strapped failed to secure rescue financing. the loan is dependent on people getting an approval from its investors.

whole foods gaining ground against other chains. this is according to smartphone data. for traffic -- put traffic matched stores like traders does walgreens, and dollar tree. that's your is a special day. you need toup, what know for trading day. this is bloomberg. ♪

>> another record day. s&p 500, nasdaq, both at record and we also saw the dow key popping up above a measure as well. u.s. releases international data, one of the first since the trump administration ignited a trade war with china. confidence numbers for august out at 10:00 a.m. tomorrow. >> and don't miss this. tiffany's reports second quarter earnings. that's up next. >> have a great evening. this is bloomberg. omberg.

>> hi, emily chan in san francisco. weeks of after three chaos elon musk makes a u-turn being he won't