the dollars and the smooth will be lower. markets increase their fed rate hike expectations. , buy the rumor, sell the news. the stock popped. investors focus on how much these iphones can sell for. chessce, a deadly game of , hurricane florence could be the worst storm to hit north carolina in 60 years. welcome to "bloomberg daybreak." president trump tweeted about the hurricane, "we got a plus is on our work in florida and puerto rico." that is what the president just tweeted about hurricane florence.

go togory four that could a category 5. come the next narrative to forward is that it will be sitting there for a while. rain,slow moving, lots of lots of flooding in packing port,ries, solar, insurance, everywhere you look. david: it is always the rain. it could be the worst and 64 years. the president is focused on it. break down the implications through the next couple of hours. up twoures higher today, points. -dollar weaker. the ecb could tweak their forecast lower because of trading global demand. in the u.s., yesterday was about

selling. today, the yield curve has flattened. crude up .9%. the direct impact on crude from hurricane florence will be minimal, but there is a knock on effect. david: insurance and utilities likely to be hit harder. u.s. ppi numbers for august. membersday, two fomc speaking on detroit. the u.s. treasury auction, $23 billion in 10 year notes. the fed will release its beige book. now we turn to first take. we are joined by our global finance executive editor and luke. there have been developments in the brexit area. jean-claude juncker said this. >> the commission's

negotiations, we stand ready to work a and night to reach a deal. we know it to our citizens and businesses to ensure the united kingdom's withdrawal is orderly and that there will be stability afterwards. it will not be the commission that will stand in the way of this. david:

there could be a summit to sign it in mid-november. >> the tenor of negotiations has improved. i don't know if the details have been hammered out. in terms of the u.k. wanting to be half in, half out, that is a no go. it seems there is a lot to be resolved. you can see that in the currency market where sterling volatility relative to euro volatility is the most expensive since 2017. alix: you can see that in the cable rates. kazakhstan the pound dropping like a stone. pound can see that in the dropping like a stone. .t the end of the day there is positive momentum towards constructive conversations, but you have politics at home in the u.k. that is quite contentious, so there is a lot to be result. david: even as we speak, prime minister's questions in .arliament the eu not toof

use the pensioner approach. pincher approach. it may allow her to save face within her own party. that could help get this to completion. alix: our second story has to do with the dollar. i don't thinking we will have new highs without new moves to the downside. we will probably end up with the dollar lower at year end than it is now. you could see a short squeeze and treasuries. when you take that narrative and put it with the narrative of the market slowly creeping up to the fed. said, he is talking his book. the flip side of the market has been long the dollar. expectation the u.s.

economy will continue to strong.en has been not as strong as the president has bragged about. the expectation is the fed will continue to raise rates. david: one of the relative issues is inflation. weluding ppi at 8:30, are seeing inflation creep in? >> that is a huge question. even on the heels of that payroll print, a lot of folks think this will be temporary, even though we saw yesterday that the rates soared. i don't think people are convinced there is a deep-seated inflation trend. what is interesting about gundlach's is the call for a weaker dollar and lower yields. generally the two have been moving together throughout the

past five years, but the correlation has broken down. there is a need for a unifying direction move. get: we continue to diversions within economies, stock markets, and central banks , and this highlights the core of the issue. come into the bloomberg terminal with me. you can see how they regraded upwards. -- re-rated upwards. rate hikes almost two, so i am wondering if this is the issue. that is dollar to the races and you will have higher yields and the u.s. continuing to outperform. tweak from the ecb might not be anything to get excited about. of it is about 2019 expectations.

year is stilldar in negative territory. longevity, the markets are trying to sniff out the end. the bigger cattle last -- catalyst for dollar strength is that it's not coming as soon as we thought. david: apple and iphones. alix: finally. david: apple will be announcing its new iphones later today. caroline, with this give new interest to apple stock? >> the market has been excited about it, the idea of rising prices overall for apple. the smart phone market is not exhibiting a lot of growth. one key part is they are

introducing this low cost phone that will give them an entry into a new part of the market. alix: buy or sell the news? there was a great staff this morning. since august, they've added enough market cap to equal the top 15 companies in europe. it is important for tech in general that companies like transition to lower margin businesses, still act like highflying companies. can they make the transition to being more of an apple and less of a traditional growth company? alix: thanks very much. we appreciate it. more on apple, stay with bloomberg on tv, online, and on twitter as they unveiled their new products.

don't forget tictoc as well. it starts at 1:00 p.m. you can find all the charts and more on gtv . soming up, more on gundlach' dollar warning. this is bloomberg. ♪

open to thesions is idea of investigating social media companies you'd sessions republicanefed by states attorney general looking into the company's tract this is. sessions will have to decide if

there is a case for violating consumer protection or antitrust laws. singapore sovereign wealth fund ed and buying ge's jet unit. ge owns almost 2000 aircraft valued at $40 billion. the sharesla one of begin trading today on the new stock exchange. raised $1 billion, near the lower end of its target range. that varies the company at $6.4 billion. david: big news crossing the bloomberg. the eu parliament has voted to sanction hungry -- hungary. -- hungary has replaced the judiciary and is cutting

back on independent judiciary review. two thirds have now voted to sanction the country. unprecedented for the eu to do something like this. you have to wonder if it is a u.o-eu, anti-e david: and driven by populism. you see this in places like .weden you see this throughout the europe, not just the united states. alix: poland as well. also breaking news from opec. opec looking more skittish.

they see risk to global economic forecast now skewed to the downside, so revising world demand slightly for next year. they see non-opec supply, trimming that back a little bit. i have to wonder if it is due to regional differentials in the u.s. i wonder if that has to do with it as well. i'm interested in them saying more economic forecasts skewed to the downside. that has to be em and trade issues. overallt fits with the downturn, not a crisis, but risk to the downside. market, dollar bulls, be wary. is issuing aach warnings, saying i don't think we will have new highs in the dollar without a new move to the

downside that will end with the dollar at year-end done now. is jpmorgan asset management global market strategist. great to see you. do you agree with jeff? >> broadly, yes. we don't think there will be another full year of extreme dollar strength. com wely has already aree. towards the in of this dollar strength in terms of the broad cycle. hikes,s you look at fed as they get re-rated upwards, that is priced in or that is not a viable re-rating? lot of it has been priced in. this is a longer build up to a ,ace of a fed rate hiking cycle and also it is not clear the dollar strength has to come at the same time as the fed rate

hiking cycle. the dollar strength often does happen before, sometimes hearing , sometimes a little bit afterwards. it is not an exact coincidence that it happens at the same time the fed is hiking rates. in two more this year and two more next year. that does not mean the dollar also rallies along with it. we talk about the strength of the dollar, we turn to the fed and rate hikes come up with this time we have the trade phenomenon that has driven up the dollar over uncertainty on trade. and this is a difficult thing for markets and economists to price in come in terms of how asset classes will react to trade tensions. generally the dollar strengthens during trade turmoil. there hasn't been an instance

like this to compare it to an recent past. in the u.s., certain industries will face higher input costs as retaliatory tariffs get put in place. that will be an issue for inflation and for companies. it may hit earnings per-share numbers on the s&p 500 and russell companies in the u.s.. in the asing pain trade tensions increase and co some currencies can't handle the global issues of play. the: global risks are to downside. tomorrow, the ecb could lower their

divergence between the u.s. and the rest of the world? how do you trade that? >> some of the private investment numbers looking quite strong in the u.s., which is why we put the u.s. above the rest of the country's. in terms of how long it can continue, we think the worst for europe made the in the past. recent developments out of washington that a trade agreement might be put into play between the u.s. and europe does take that negative force on european markets out of the picture. there, struggles might be as countries like turkey and argentina with a large external debt in u.s. dollar facing tricky times as the fed will certainly increase interest rates over the next few quarters. --is a different sheen differentiation question in em. areas arer better where they have the ability to promote growth. in thewhere are we business cycle, and to what

extent has the president and congress extended the business cycle through fiscal stimulus? >> that is the billion dollar question, when is the end of this economic cycle. the key is we have 2018 and later stages. we are done with growth industry or. 2019 should be good as we have fiscal stimulus from the tax plan. some other policies still stimulative. 2020 is when we think the economic growth we have seen and enjoyed may not remain. this is because companies in the u.s. will have to reckon with higher interest rates, and the corporate leverage situation is not as healthy as we would like. there is increased debt service ratio, companies leverage, and soer credit than is ideal, 2020 looks to be when we expect lower u.s. economic growth. david: you will be staying with

us. coming up, florence barrels towards the east coast. we will look at companies caught in the storm next. this is bloomberg. ♪ this is bloomberg. ♪

david: hurricane florence is a category four storm predicted to hit thursday or friday morning. president trump warned how bad it could be, but said we are ready. >> we are totally prepared. we are as ready as anybody has ever been. seen something like coming at us in 25, 30 years, maybe forever. david: joining us now is our bloomberg climate reporter. tell us how bad this could be. give us a sense how bad the storm could be? , david.s i drove down last night.

the best way to tell how seriously people take it is the highways. i-95 through virginia. all the traffic was heading north. you come towards the coast, the roads were in the. these are massive areas the government of north carolina has evacuated so far. we are still two days away from potential landfall. greeneville, north carolina flooded heavily in 2016, there is concerned. all the stores i went to our out of gas and bottled water. taking this seriously. it is hard to know what will happen. it could still shift in intensity. people have been hit so hard with recent storms. they don't seem to take any chances. alix: alix: also joining us is our bloomberg oil services field reporter. you are putting on your jack of all trades at today.

talk about the impact on businesses. which ones will be closing up shop and hit the most? you have a big agricultural and cattle economy in north carolina, so this is crunch time for them. it is harvesting time now. it is good they are able to get the crops out of the field right now, but some of these crops were not ready to go. you have impact on farmers mainly. you look at tobacco companies, altria group and smithfield as well. the kazakhstan other issue is when the storm sits there and there is a lot of rain because it is moving slowly that that has longer-term implications for crops and power. you have the potential for flooding.

the livestock are in the barnes, so you have farmers trying to keep the livestock houses circulating air. there is a attention for flooding with the crops. alix: thank you, gentlemen. stay safe. coming out, apple to unveil new products today. we will break that down with michael wolff. i want to find out what iphone he thinks i should buy. what will be least upsetting to me? this is bloomberg. ♪

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relieve pressure and optimize airflow to keep you cool. hello bed of my dreams. order online, we'll build it, box it and ship it to your door for you to enjoy. sleep on it for up to 100 nights and love it or you'll get a full refund. returns are free and easy. i love my leesa. today is gonna be great. find out why so many people love the leesa mattress, then try it in your own home or at any west elm store. order during our extended labor day mattress sale and save. for a limited time get 150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need this bed. alix: this is bloomberg daybreak. happy apple day. s&p futures going nowhere. dow jones features also flat. european stocks up by 2/10 of 1%.

goldman sachs says they say meaningful upside -- they see meaningful upside in european banks. story.ly stronger dollar the ecb might revise the growth rate lower for next year. also headlines out of italy which is not doing the euro any favors. mayitalian leading party ask for the removal of the finance minister if they don't get 10 billion euros to pay for the measure they want, the so-called citizens income measure. the financeed minister because he was going to the adult in the room. theresa may speaking right now in parliament, talking about the fact that they changed the deal.

david: when in doubt, write a check. let's get an update on what is making headlines outside the business world. we will find that out from emma chandra, here with the "first word news." say northcasters carolina has not seen a hurricane like this in 30 years. florence should come ashore late thursday or early friday. the storm is expected to stall once it makes landfall, drenching north carolina with up to 30 inches of rain. companies are shutting down factories. american trade associations are joining forces in a new multimillion dollar campaign to oppose president trump's tariffs. the group represents farmers, manufacturers and retailers. the coalition plans to highlight stories in the heartland.

haseuropean parliament slapped the prime minister with an unprecedented censure for eroding democratic standards. he is accused of dismantling the country's checks and balances and stacking hungary ticket constitutional court with his supporters -- hungary's constitutional court with his supporters. global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists and analysts in more than 120 countries. this is bloomberg. david: apple will unveil its new set of products today including three new iphones. here is a preview of what we expect. >> the iphone x is here to stay. the most we expect come three new models that will act like the iphone from last year. the first will be the iphone xs. also be a large-screen version of that iphone that is expected to come

with the name iphone xs max. then there is a low-cost version. it will have a cheaper screen. while the phones are significant to apple's bottom line, don't expect to see any major breakthrough features. those will come next year. apple hopes these new phones will appeal to a greater array of consumers and boost sales of accessories and services like streaming music and video and that the company a step closer to becoming the first publicly traded $2 trillion company. david: joining us now is michael wolf, activate's ceo and cofounder. welcome. michael: a fun day to be here. david: bigger, faster, cheaper. what is the significance of this? phones, analysts ande looking others are looking at the pricing.

quarter, apple's revenue from iphones grew 20% but shipments only 1%. -- people are looking at what are the price ranges. the larger version of the new phone going to be $100 more? roughly $1100? david: how much of that is going to be decided by tim cook rather than president trump because the price of the iphone's might be driven by tariffs. michael: for the most part they have artie been manufactured and shipped and are waiting to go out of stores. alix: do you feel the new , arects they were showing they going to be enough to drive accessories and services? services are where they need to be in the next 10 years. michael: services are going to

be a huge piece of their business going forward. as they keep offering new devices, they are going to be building new services as part of it. the real challenge is the refresh cycle. when people are changing out their phones. now, -- has overtaken apple as the number two cell phone provider in the world. what apple is doing is they want to get it so when you refresh your phone, you can decide between a samsung phone and an iphone and you will go with an iphone. it is the ecosystem, the services, apple music, the video. that is going to be what keeps you within -- with your iphone as well as a driver of revenue. david: most people have an iphone or alternative smartphone. the question is whether they will switch or not. it is really keeping inside the ecosystem, a barrier to leaving it. michael: the idea is i have all

of my music, all of my video, all of the different apps. keeping the ecosystem is important. there is some lock-in. we seem touestion tackle is the regulation aspect of -- bloomberg reported yesterday that attorney general jeff sessions is looking into social media and if they violate antitrust laws. what is the impact of the hearings we saw last week on tech? michael: it is easy in terms of what has happened, in terms of elections. another force is going on in society to blame social media. there is a lot to blame social media for, but these are businesses, there is still a lot of competition going on between major social networks. facebook's time of usage between both instagram -- both facebook and instagram is trending

downward. i don't think there is going to be much of an impact if at all. what is most important is what consumers are going to do. david: does apple have some sort of advantage? they are not really doing the social media thing. they are giving you the appliance. michael: what apple has been good at is making sure that they provide real privacy. they are not collecting information. that is really the issue that lawmakers are worried about, which is privacy, somebody's ability to hack an election. david: given your background in the immediate -- in the media, we cannot let you go without asking about cbs. they're looking for a new ceo. what do you think they're going to be looking for? the billet -- the biggest challenge at cbs is going to be its reinvention for a new generation. even though cbs is the leading network, it's audience tends to

be a lot older. cbs has still struggled in its move with an online service. cbs all access only has about 2.5 million customers. david: is there a problem with trying to go over the top with an older audience? older people are more likely to go -- is it a younger persons issue -- person's issue? michael: it is less age and more position. yorty have netflix, prime -- you already have netflix, prime and hulu. expecting a fourth service would launch and reach some level of scale is going to be difficult. david: good to see you. alix: michael wolf, activate's ceo, thank you very much. do you think you can cut the cord? david: no.

i am an old-fashioned kind of guy. you don't have a cord. alix: i don't. michael: it depends on which court you are cutting. most people cannot give up some sort of broadband. alix: good point. i definitely have apple tv. still with us from london is nandini ramakrishnan at jpmorgan asset management. -- we to see a rotation started to see a rotation. does that continue? on relative comparisons to previous downturns in u.s. markets, tech does have a mixed profile. what does stand out is valuations of the tech sector are not stretched by any means. the tech sector is pretty close to the broad s&p 500 price-to-earnings ratio. we would not call it overvalued. we are emphasizing the global

nature of it. we like the companies in certain parts of emerging markets that are part of the tech story in europe that have more ai or machine learning type research. it is that global story really really do like. -- we really do like. late cycle play has been -- for us. apple as we talk about , you will have some chinese companies in part of asia and you will have apples and others in more of the western world. nandini: this is a broad structure will story. 1980, most of the chinese population was below what the

u.n. would call it poverty line and now almost all of the chinese population is above that. what they are spending their money on is technology and consumer services. companies around the world will have to try and tap into it. if it is apple, competitors based in asia, it is going to be interesting to watch. -- to really shift how analysts and investors look at companies across the tech space. david: whether it is apple or netflix, to what extent does apple put price pressure on u.s. competitors? nandini: that is how you cap into those populations that are ready to spend, that have the money and have the existing network and framework of the service centers in the

maintenance and all of that at a lower cost. in some sense, while emerging and currency were getting a lot of headlines that were not positive, there are some pockets of exciting companies whether it is in china or the new market that has the ability to rally in a time when other parts of emerging markets are not. david: nandini ramakrishnan, thank you very much were being with us. -- for being with us. coming up, former u.s. treasury secretary larry summers is going to be with us. live from new york, this is bloomberg. ♪

emma: this is bloomberg daybreak. rayng up in the next hour,

dalio, bridgewater associates cochairman and cofounder. this is bloomberg. now to your bloomberg business flash. it turns out oracle executive thomas curry has taken a leave of absence because of differences with -- over the company's cloud business. we are learned that he wants oracle to make more of its software to run on public clouds. a french luxury company recorded first quarter profits. boosted by strong sales in china. verizon will start offering fifth-generation internet service starting october 1.

wireless subscribers in houston, indianapolis and sacramento will pay $50 a month after a three month free trial. that is your bloomberg business flash. alix: i have to point out what is happening over in italy. bte is on the move. remember -- remember that whole blowout the budget situation? they want about 10 billion euros for their citizen income proposal or they want the resignation of the finance minister. originally thought it was going to be 5 billion euros. was thought tor be the only adult in the room. david: a populist coalition gets really interesting. alix: it is like the constant clash we are seeing between the right and the center. 10 years ago this saturday, lehman brothers fell,

marking the financial crisis. welcome larry summers, the former u.s. treasury secretary. welcome, good to have you with us. larry: good to be with you. david: let's start with what is different in terms of 10 years ago. a dramatic increase in asset management. a lot of things that are not banks, things like blackwater and blackstone. abouted to warren buffett what a things like berkshire need more regulation -- about whether things like berkshire need more regulation. >> we need more regulation. we need some kind. there is no question about that. david: if the traditional banks were a large part of the last crisis, are the nonbanks going to be a part of the next crisis? larry: there is a real risk of

that. the so-called shadow banking system where lending takes place not through banks carries with it real risk and i am not sure around thoseands risks. i think we have a system that has continuing vulnerabilities. david: there is a nonbank risk. how much risk is left with traditional banks? the -- what is comically absurd about the stress tests as they are being applied today? larry: the fed concludes each year that this year being typical, that they take some

scenario where house prices fall by substantially more than 2008. in a plum and rickets up near 2% and then they run them through some model and they say that all the banks, even if they continue to pay their dividends will not need new capital and will meet their capital standard. i think that is very unlikely to be true. you look at the relationship between the banks and the aggregate stock market. that tells you that if the stock market goes down by 60%, bank stocks will probably be down 80% or 90%. down,if bank stocks are everybody will have confidence in all the banks but that would not be mine reading of the historical experience.

i am not sure we need to have a financial system that can easily withstand without raising new capital, a decline of that magnitude but it seems to me that for the central bank to assert confidently as it does each year that we have such a system does not do a great deal for anybody's credibility. cruciallye issues go to the distinctions between regulatory capital and economic capital. by the official regulatory standard, bear stearns was overcapitalize the day it failed. there are more examples of that kind. i think we have a system that is paradigm a particular

around the definition of regulatory capital and it is a mistake to take that overly seriously for what we really care about, which is the underlying soundness of institutions. one of the lessons of 2008 is that markets were telling us that financial institutions worry in growing difficulty and their situation was increasingly problematic through the early and middle part of the year and the regulatory authorities did not do much. that was one of the things that if they had been able to do things, we might not have seen such an armageddon in the fall. david: if we still have risked we should be addressing and are not, do you think the stress test is a good way to get at it but is being misapplied? or we miss defining capital

have we not taken the numbers high enough? larry: the stress test and the increased real atari capital regulation is a step in the right direction. there is no doubt we have done the right things since 2008. the dangers are we are too complacent about their full submission see. -- full sufficiency. and that we are starting to chip away at that regulation. we are declaring institutions that used to be systemic now not to be. we are reducing the regulation on large but not immense withtutions with capital the $250 billion range. we are redefining aspects of the measurement of capital to make the standards less onerous.

i think it is fine to have a paradigm based on capital. i think having stress tests are a good thing. i just think we need to bring more market reality into that system if we want to be confident. i also think we are ahead in the united states. alix: that goes to my next question because if you are more conservative on the health of u.s. banks, what must you think of european banks and what kind of risk does that pose to the global financial world? i think you have some potentially very serious issues with banks. that is telling you something about the underlying health of those institutions.

when we don't recognize that in assessing their soundness, we make a serious mistake. behink there continues to risk of what years ago was europe where banks are holders of government debt and if the banks get called into question, that reduces demand for government debt which raises its yield, which makes the bank situation less healthy which makes the government debt harder to roll over. i don't think we have taken those risks completely off the table. alix: how do you see the financial system their evolving because it is based primarily on bank loans. we are seeing more issuance coming into the bond market. is that more systemic or contained? larry: you still have european

banks that are substantially large relative to the underlying economy. behink it does continue to real risk in europe. i am not predicting some kind of , but ihis year or next think there are real risks in the system. i think there are risks in emerging markets. we don't really know yet whether and to a and turkey lesser extent south africa and instances, h2ated to be thought about in terms of their own fundamentals or are the tip of an iceberg of emerging-market problems as dollar interest rates rise and

possibly the dollar appreciates. know what those risks are, but i think one does have to recognize that there are real risks. one has to recognize that there is a lot that we don't understand in china. on the one hand, the chinese authorities have shown themselves to have a lot of competence. the chinese authorities have many more levers for supporting the financial system then would would be -- than common in western countries. on the other hand, it is pretty clear that if you look at ,ggregate debt ratios in china even with china's rapid gdp growth, debt has grown

substantially more rapidly. david: let me bring you back to the united states. there is one way in president trump is unique in modern history. if you go all the way back to president reagan, every president's trophy ratings have been higher than the overall approval rating for the economy. president trump is the reverse. his approval ratings are less than a favorable view of the economy. is that fair? does he deserve more credit than he is getting? larry: no. first, i think some of the reason why what you describe is happening is not because of judgments people are making about the economy, it is because judgmentserological people are making about president trump that are uniquely negative. given whatever they think about the economy, they see a lot of

other separate issues with respect to the president. if you want to make the case that the president -- i am not saying he is not -- he has done nothing that has spurred economic growth in his short run , but an honest assessment needs to recognize three points. one, growth was significant and expanding during the obama years. in the last year and a half of the obama administration, job creation was faster that it has been since president trump took office. second, there has been a worldwide acceleration in economic growth. over the 2017-2018. , the upward revision -- 2017-2018 periods, the upward

revision for the united states has been larger. president trump deserves more credit for what has happened abroad than what has happened in the united states and yes the u.s. stock market has been strong but it has been driven by foreign profits. some ofd thing is that the prosperity is being borrowed from the future as we run up federal deficits and do other things that are unsustainable. david: it is fair to say that people are probably right. larry, always a real treat to have you on. that is larry summers, the former u.s. treasury secretary. alix: jeff gundlach says the next dollar move will be lower. the -- the latest read on inflation.

as apple unveils their new products. florence, a deadly game of chess. hurricane florence could be the worst storm to hit north carolina in over 60 years in the southeast faces a potential 35 inches of rain. david: welcome to bloomberg daybreak. it is all about florence at the moment as we are seeing these dramatic satellite images. that storm barreling toward north carolina. alix: it looks like that storm is taking over the world. it feels like there has been a shift, but it is still going to hit. the question becomes not how strong it is but how long it stays there. it is a slow-moving storm and if it stays there for a while, how much rain is that going to mean and how much flooding will that

mean? david: a lot of damages and a lot of industries looking at that. president trump was tweeting about that. alix: you can see the state of emergency declared. it does not look like we going to hit category five status. in that respect, it is losing a little bit of wind but that is not the problem. , in a big way all going to get hit that they are not used to. david: it is good for lowe's and home depot. we also have some news crossing the bloomberg now. fiat chrysler is in talks with kkr over its auto-parts.

there were reports about this earlier. they are asking for $7 billion. deal and really big would be the first big deal from the new ceo of fiat chrysler. in the markets we are losing a little bit of steam. s&p futures slipping into negative territory. nonetheless sort of a calmer day. a couple things going on here. there was a report be a time government would be looking for 10 million euros -- 10 billion euros for its citizen income program. that has been denied that there are concerns about the finance minister being forced to resign. -- but there are concerns about the finance minister being forced to resign. crude up by 1%.

the risk premium gets priced in a little bit. david: at 8:30 eastern time, we are going to get u.s. ppi numbers for the month of august. later, we will hear from two fomc members. is going toasury auction $23 billion in 10 year notes at 1:00. at 2:00 this afternoon, the fed will release its beige book. now, we want to find out what is going on outside the business world. we turn to emma chandra with the "first word news." emma: hurricane florence is taking aim at north carolina in the most powerful storm to hit the state in more than 60 years. the hurricane is expected to make landfall late thursday or early friday. it could join sure to run to 30 inches of rain and cause catastrophic flash flooding. store shelves have been emptied

by people fleeing the storm and companies are closing down factories. jong-un is's kim nuclear talks with one big detail. he wants the u.s. to declare the korean war over. slacked hungry's prime minister with an unprecedented censure for eroding democratic

standards. he is accused of stacking hungary's constitutional court with supporters. global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists and analysts in more than 120 countries. this is bloomberg. alix: u.s. equities continuing to climb to record highs as emerging markets continue to fall under pressure. what are the technical telling us? markng us now is tom the -- tom demark of demark analytics. you. to chat with i want to start with the markets you are taking a look at consumer markets and unemployment in the u.s. as a guide to win the market might cap out -- as to -- as a guide to when the market might cap out. tom: we apply the model for stock markets, individual stocks, commodities in fixed income. what we found in the late 70's and early 80's, there were

economic indicators but not sufficient data. now there is an we have been applying them to consumer confidence, unemployment rates. you will see them on these charts, that they have coincided very well. the bottoms were all coincident with the timing for the stock indices as well as these economic charts and you saw the reverse at market tops. these key both of economic indicators or what we score at a 12. this month, september 20 fifth when he announced consumer confidence, it will score a 12. when it scores 13, we are on alert that the market is honorable long-term. this is not a short-term indicator.

we apply a 13 to the u.s. unemployment rate as well. both of them coincide. the end of october, the first week of november. this same indicator we applied to the markets in november of to thed it gave a bottom dow jones industrial two days before the election. the gamblingit to calls in england and they the presidential election results as well. alix: based on that as well, the question becomes when the chinese equity markets -- chinese equities and emerging-market equities bottom out as well? what is your call on the shanghai confidence? tom: it has worked very well at

our indicators. currently, we are in a 12 and we should record a 13 tomorrow with a down close. what we like to do is marry the countdowns with our price projections and our price projections are lower. we could be off by a day or two. we have been on your program every time the exact bottom day. the same thing with the emerging market index. in january, we were two days before the peak. alix: great stuff. good to have you on, tom demark. demark analytics founder and

ceo. david: that is the technical view on the markets. for the view of investors, we welcome david donabedian. cio of atlantic trust group. does that square with where you think we are in the business cycle? david: i think the unemployment rate is going to -- i think the economy is going to continue to run above trend and we won't see any more prince like second-quarter gdp but 3% plus for real gdp is quite realistic. the good news on economic growth is it is not over. david: look at the not so good news. how concerned should be -- -- ld we be with david d: whether you look at

ppi, average earnings, they are not at concerning levels but there is a degree of acceleration. one of the things we will be pouring through the beige book four is wage pressures -- book for is wage pressures. one of the things that drives investors is what is expected to come out of the fed. up a chart that shows the market is going to catch up with what the fed has been predicting which is we may go higher faster than what had been thought. do you think that's right? is relativehink it to where fed funds futures have been. two more rate hikes this year and the bigger debate has been around 2019 where the fed dot plot has read to rate -- has led to rate hikes in 2019.

the question is will there be two or three? markets are betting that chair powell will steer the fomc to more of a wait and see model. david: wrap that all up together and what does that say about sectors you should be in and should be avoiding? david d: this has been an earnings driven market this year and so you want to look to the sectors that have strong consistent earnings growth. our core strategy is overweight in information technology, overweight in health care and parts of the consumer discretionary sectors and underweight in the stocks that look like bonds, things like consumer staple stocks and utilities. david: the things we always ask is tech. is it going to continue to lead? david d: i think it will again

because the earnings story is there. the news flow on trade is important for some of the mega cap tech stocks that do most of their business overseas but the earnings power is there. most of the valuations are in a range we would call reasonable. the other point i would make is the rise in the market has not been about -- all about tech. it has been a broad increase in the markets. we think the internals of the market are relatively healthy. david: thank you so much are being with us, david donabedian, cibc private wealth management's cio. -- that is the enduring lesson our next guest is a to -- is determined to teach investors. ray dalio runs bridgewater associates and is author of the new book, a template for understanding big debt crises. he is here with erik schatzker.

erik: it is always great to talk to ray dalio. out, ae a new book template for understanding big debt crises. to me, the underlying message of this book is that history is doomed to repeat itself. have i got that right? ray: everything happens over and over again for similar cause/effect relationships. erik: that sounds like an awfully depressing reality. does it need to be a depressing reality? ray: it is like any reality. you have to embrace the reality and know how to deal with it. there are debt cycles and debt cycles provide great opportunities and they provide real problems. i think it is just like a progression, a disease. wasreason i wrote the book

a compendium of research but i wrote mostly before the financial crisis. it is because i think it is essential for everyone to understand the sequence of events, the logical sequence of events that makes these all the same. there, they in all play out the same. basically in 60 pages, i want to convey that template. erik: let's talk about one of those two types of debt crises, the inflationary depression. is that what is playing out right now in turkey, in argentina, in emerging markets? ray: certainly. this has played out many times. this is not the first time argentina has gone through it. the big deal is whether the currency -- the debt is

denominated in your own currency or a foreign currency. when it is denominated in a foreign currency, they have a problem trying to service that dollar denominated debt. when the dollar goes up and the money they are earning is a local currency, then they don't have enough cash and they get into that spiral and as a result, they have to print more money, the currency depreciates and it happens in a very mechanical way. most of the countries do not have debt denominated in their own currency and as a result, most of their crises are of that sort. the dynamic is how they complete the cycle. what happens when the currency goes down in value? they wipe out the local currency debt. if you own the local currency debt, you are wiped out. theseyou evaluated 27 of nondomestic currency crises in

the book. take what is happening today in and emergingrkey markets and compare it to some of the things we might remember. there are some people who remember -- you are old enough to recall the crisis of 1994, the asian crises of 1997. this looks like what to you? ray: it looks like those because alsourrency depreciation raises the interest rate differential and in the process of wiping out the local currency denominated debt because it is essentially monetize the way, the currency becomes cheaper. all the crises are self-correcting mechanisms. when the currency becomes cheaper, then it becomes more the balance of payments improves because they can sell more or the import less and also they

begin to attract capital if they remain a healthy place for people to invest. erik: inventories have not hit bottom have they? ray: know, but they are two thirds on the way -- no, but they are two thirds on the way. that it depends on what the monetary policy operates like. whethertion will be those who are holding those currencies will receive an interest rate differential that will compensate for the depreciation it -- brief -- depreciation in the value of the currency. sometimes through imf support or sometimes through that tightening of monetary policy, it has to create an interest rate that will offset both the inflation rate and the depreciation of the currency and knowing how that mechanically happens is the means by which you can identify the bottoms in those currencies. that-- erik: when you say

it looks as though it is two thirds on the way to the bottom, does that mean it is as simple as saying there is still a one third depreciation left in their currencies before they are able to reach that point where the currencies are cheap enough to attract new capital and restore the balance? ray: speaking as a generalization, if this plays out classically, what they will have is large fiscal deficits. how they choose to monetize those fiscal deficits or how they choose to restructure their balance sheets through imf loans or the tightening of monetary policy will be the determinant of the exact bottoms in those currencies. generally speaking, the greater of the moves is behind us. the greater the concern, we will

have a lot of panic and we will as the saying goes, the time to buy is when there is blood in the streets. erik: is there enough blood in the streets to see value yet? ray: we are getting there, generally speaking. -- that is the case of inflationary depression. we should also think of the type of depressions that we go through, because i think that is also interesting. erik: let's talk about that. we just lived through the aftermath of a big debt crisis, the kind of thing that you say comes along every seven years or so, but we are in the midst of another bubble. are we in the midst of another cycle? ray: i don't think we are in the midst of another bubble. let me clarify.

when you hit zero interest rates, you have a different type of debt crisis. more likely to have a depression. the period we are in is very 1935-1940 period. 1932, we had a debt crisis and the interest rates hit zero. 2009, we had a debt crisis and the interest rates hit zero. thing the central bank can do is print money and buy financial assets. they do that, that pushes financial asset prices up and puts liquidity in and contributes to a greater wealth gap because those who own financial assets benefit when those who don't. , the economy not improving for a large segment of the population, we have

populism, so the last time that we would say when was populism popular, it would be in that time. that populism issue is an important issue so as we look forward and we say when the next downturn comes, which will happen in a couple years, we are going to have a different type of downturn, there is similar to the one that happened in 1937 to the 1940 period. we are in the part of the cycle were the central banks are beginning to tighten monetary policy. asset prices are sensitive to monetary policy, so central banks have to be careful not to raise interest rates much faster than is built into the curve but with that populism, we have an issue. if we think about what the next downturn will be like, the downturn will be different from

the one in 2008. it will be one where the social and political problems will be great because of that wealth gap and populism. weht now, times are good and are sort of at each other's throats and that. i also worry about the effectiveness of monetary policy in reversing that because monetary policy has interest rates and we can't lower interest rates as much and it has the purchases of financial assets to push other financial assets out and get liquidity in the system and that is at its maximum. when we have a downturn, we will not have it to be as effective. the downturn in the form of our debt crisis will not just be debt, it will be pension obligations, health care obligations. one more thing. i think it will be about us having to sell a lot of treasury

bonds to the rest of the world. that will also be an issue about two years out. i would say two years out is what i am worried about. i would think that that is for these various reasons. erik: speaking in financial terms, we look at what you are saying through the lens of the markets. -- how likely -- how bad is it likely to be compared to 2008 and 2009? ray: i don't think it is going to be as sharp or severe as that. i think it is going to be a long grind. all of these obligations will be a problem to be funded. i think it will be more of a dollar crisis than it would be a debt crisis. i think it will be more of a political and social crisis. to sell a lot of treasury bonds, we have to sell

a lot. we as americans will not be able to buy all of those treasury bonds and if interest rates rise too much, the way it works is -- thatstricts credit creates weakness in the economy. perspective, when they look at it, they care not about inflation, they care about currency depreciation. down, thency goes bond the -- the bonds become cheaper. i think the federal reserve at that point will have to print more money to make up for the deficit, will have to monetize more and that will cause a depreciation in the value of the dollar. we have the privileged decision of being able to borrow in our own currency because we have the

world take a leading reserve currency. by ourrisking that finances, and other words book -- borrowing too much. you can get to the point where bond in- when you own a any particular currency, you are getting a pile of that currency. erik: by how much could the debt go down? you easily could have a 30% depreciation in the dollar. it depends on how long. this some people say that time is different, that because the post crisis recovery was so slow, because we have a massive tax cut, because the trump a is deregulating the economy, that gdp growth is going to keep accelerating and that a downturn or recession is many years away,

not two years away. i take it you don't agree. ray: i just do the calculations. they fiscal stimulation we are having is coming at a high rate of capacity utilization and so we are getting that stimulation at the late part of the cycle. that is a stimulant that will last. erik: it feels good right? wages are rising. ray: feeling good is not an indicator of the future. euphoria -- it is a bubble made of euphoria. i am just doing account calculations and what i am saying is that right now, the fiscal stimulus is coming in and that is good. productivity is enhanced by corporate tax cuts. a lot of money is going to the companies. that is good for the time being.

when that stimulus passes through and then diminishes, that diminishes in about 18 months. but the borrowing doesn't. the borrowing will be in the marketplace about that time. i am not trying to be precise as to exactly what year or what month that has. we are nine years into the cycle and the cycles are the cycles. i am saying that we are probably in the seventh inning of this game and therefore i am not particularly worried at the moment but if i was to take as we get to the ninth inning of the game, then we are going to -- and the important thing i think is not even what i think about this. the important thing is for you and each person to really study how these cycles work. all 48book, we show how

of the cycles over the last hundred years that we are -- that were significant followed the same path. reading, and by the way i am making it free so everybody can have it. erik: that is an important point. people can download a copy of your book on the website. one thing i want to ask. people read it, analyze it and understand. what you can help them with this application. ,f we are in the seventh inning the downturn is two years away, what do you do? what is prudent? ray: investors have a choice of whether they are trying to be in market timent which most of them are not going to be able to do well. that is a professional game and it is tough to do as a professional and then there are

emotions that enter into it. generally speaking, they should not be actively trying to invest or if they do, i would not recommend it, but they have to go opposite their instincts. what i would say is important is to be able to have -- know how to have balance in your portfolio. each market performs as a reflection of the economy of the time and all of the economy ticket characteristics keep changing -- economy's characteristics keep changing. erik: i'm stopping you for a moment because we have economic news coming out. i want to hand the conversation back to my colleague. you and i are going to continue talking and people can see the rest of our interview on bloomberg television. that is ray dalio of bridgewater associates.

he runs the world's largest hedge fund. he just made free his book, a template for understanding the debt crises. alix: we appreciate that interview. it looks like we are a little slow here. futures pretty flat after a comeback yesterday. the producer price index is down. year on year. back out energy, 2.3%, a big mess and a drop from what we saw in july. david: where was that inflation we were worried about? that was kind of ugly. michael: don't look at me. i did not do it. drops in energy pushed things down. in general, very low levels of

inflation across the board. the first time we have seen a drop since 2017. personal consumption, you leave butfood, energy and trade, home heating oil down 9/10. the finalpects of demand ppi lower. this is not just one number. services were down a 10th of 1%. energy prices actually up. the big culprit seems to be food and trade. category.ad it is hard to know at this point. i have a graphic i want to change the date on and see if we

have additional information. it has not come into the system yet. we are taking a look, this is what we saw in aluminum, steel, the tariff affect -- effect. we have not gotten our chart updated yet for this month. did the numbers on this side go down, that is the question and we just don't have that data in the system. david: we get the beige book out which may give us more information on this but could it be some good news for other companies because it does not put so much pressure on margins? alix: equipment wholesale margins actually fell. that does not feel so good if you are in those industries. michael: it definitely does not

feel so good. companies -- are companies absorbing and not passing them along and that is why we are not getting the price increases or is it because we still have a lot of slack in the economy that is not recognized immediately? that is a question for the fed. they will have to figure that out. the ppi does not translate directly into cpi and it does suggest maybe companies are starting to absorb some of this. david: go back to the trade issue and explain it a little bit. you could have reduced flows of trade. on the other hand, you have tariffs kicking in. which we does trade cut -- which way does trade cut? -- i am i am totally not totally convinced it is a trade story because trade is normally done months in advance. they are subject to tariff when they get here if they are

already in place. it is hard to tell the timing of these things. we know when the president put what hadn china but just arrived and was recorded in the books before in july, before the tariffs went on and in what areas? we know the aluminum and steel tariffs had been in place since june. it is hard to tell without a complete breakdown. david: it illustrates the larger problem. there is a lag between the time those things get announced and it actually shows up and economic data. it is hard for the government to know how to react to them. michael:

of this point, it does not show up in the data and is not look bad. most economists think we will start seeing the real effects in the first quarter of next year. for right now, we are not seeing much in the data. we are seeing some foreshadowing in the isn numbers but if this point, no real damage done. david: thank you so much, mike mckee. the ppi numbers have come in and they were a disappointment according to expectations. it was expected to be up by 2/10 of one dent -- 2/10 of 1% but actually went down by 1/10 of 1%. stay with bloomberg television this morning for mike's exclusive interview with the former new york fed president. alix: hurricane florence is barreling toward the u.s. east coast, the worst in more than 60 years and companies and state are bracing for impact. the carolinas taking cover as more than one million residents flee hurricane florence's path. >> we are escaping hurricane florence.

we live in wilmington, north carolina. alix: north carolina governor roy cooper warning residents not to ride it out. >> the storm is a monster. it is big and vicious. alix: a similar message from south carolina officials. >> we are in a very deadly game of chess. alix: city like charleston know the game all too well. thats a year ago this week -- hurricane florence has the potential to cause widespread damage and whether estimates pegged the potential cost of the storm at $30 billion. president trump tweeting this morning. he said emergency officials are mobilized. >> we are totally prepared. we are ready. joining us now is jim barry, blackrock head of real assets.

good to see you. just focusing on the hurricane. do you have any assets that will be affected? jim: there were a lot of people in harm's way and we hope they are focused on staying safe. we don't have any physical assets. alix: county you look at something like this? of conversation that these kinds of storms will happen more frequently because of climate change. that has to affect how you look at the industry. jim: as an investor who is investing in assets, we don't have the luxury of ignoring climate change. the reality is that global inaction on greenhouse gases means we're going to be dealing with the impact of temperature with and the consequence the weather and indirectly, the storm surges, the flooding, the

wildfires that will come from that. -- ave to think about that means we have to think about anything near the sea. we have to think about future sea levels and what that might mean for port facilities, power plants you put on the coast, coastal property. not just the sea level but the storm surge and flooding that comes from that. the reality is what used to be 100 euros vents are happening every 15 or 20 years. david: a lot of that sounds defensive. is there an offense of part? does this create opportunities as well? jim: the reality is we are going to have to de-carbonized our economy.

has announced that all new buildings should be carbon by 2050, all30 and buildings should be carbon neutral. we have a massive power renewal business. the structural shift in the way power generation has the carbonized -- has decarbonized. alix: moving away from that -- how much money do you have deployed right now in alternative energy and how much will you? jim: we have about $5 billion deployed and we are looking to up the scale of that investment over the next five to 10 years. alix: a lot of conversation on where we are on the cycle. where do you see it? jim: there is still uncertainty as to when the cycle ends but certainly consensus is in that

2, 3-year period. post crisis, it has been a very attractive asset allocation, huge amounts of capital being deployed in that hunt for yield. what we are seeing is there has been very substantial cap rate reduction over the last 5, 6 --rs and the market is very and one has to be very careful with where one plays in this cycle. one has to be careful about leverage and learn the lessons of 10 years ago. david: take us into your investment decisions. look at leverage, cash flow. jim: that is the key. relying on cap rate reductions to give you returns is not how you are going to make money. you have to look at cash flows and what you can do with those cash flows. that is where we are reorienting. alix: where? jim: we operate globally.

alix: the most attractive region right now. jim: i like latin america. clearly there is some political dynamics we have to take account of but those countries we found very attractive. we look at brazil and how it stabilized. how do you make that decision because sometimes the reason a region has low prices because there is too much risk associated with it. am: first of all, there is policy,f regulatory rule of law, political stability that you need and i think that once you've got that basic, you have to look at other risks and how you can manage them, whether you have teams on the ground or not makes a huge difference and

in turn, looking at what returns you can make on a dollar basis against what you can make in the united states and say and i getting a premium for that incremental risk? immunehat sectors may be to the turn in the late cycle that you would be interested in right now? jim: you have to look at sectors independent of the cycle. energy and power is one where it continues to pay. strategic balance sheets remain capital constrained, so there is a need for institutional capital might across the spectrum. certainly that is an area we are .ery focused david: thank you so much for being here. that is jim barry, blackrock head of real assets. now sit an update on what is making headlines outside the business world.

emma chandra is here with the "first word news." jong-un is holding up nuclear weapons talks over one big detail. he wants the u.s. to declare the korean war is over. that could give president trump a headline grabbing -- but if the u.s. holds back, they could win concessions in its goal of getting rid of north korea's nuclear arsenal. american trade associations are joining forces in a new campaign to oppose president trump's tariffs. the group would represent farmers, retailers and manufacturers. the coalition plans to highlight stories of businesses it -- of businesses, farms and consumers that have been hurt by the trade war. in turkey, president erdogan is got rid of the management team running the country's sovereign wealth fund. the new chairman is president erdogan.

global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists and analysts in more than 120 countries. this is bloomberg. up, the collapse of lehman brothers 10 years ago sent shockwaves through the global economy. bb&t was among the first banks -- we will speak with the man that they held, kelly king, chairman and ceo. ♪

emma: this is bloomberg daybreak. up on bloomberg markets the open, an exclusive interview with the former new york fed president. this is bloomberg.

alix: some new news, trading revenue is going to be flat to slightly higher in the third quarter. just to prepare you for those earnings. don't expect a q2 repeat is what we are hearing. david: the seasonal slowdown should not be a surprise. alix: the markets were nuts in august. david: september 15 marks 10 years since lehman brothers filed for bankruptcy. all this week, we're looking back at those lessons that were learned. we're looking at regional banks since the crisis. bb&t stood out as a regional bank that outperformed its peers and remain profitable and returned its funds before anyone else did. we have a chart that shows you the white line is bb&t and how well it has done since the crisis. we welcome kelly king, the bb&t

chairman and ceo. he took over in 2009. that was a pretty tricky one. welcome. kelly: thank you. david: give us a sense of how bb&t did it. it took over right in the middle of the crisis. -- you took over right in the middle of the crisis. kelly: it was h or -- it was an interesting time for transition. our transition was well telegraphed and planned so we were prepared. prepared for the crisis. we did not predict a crisis of this kind of magnitude, but we had always been and remain a very conservative institution, that is why we have been around for 146 years and made it through the great depression. we were the only bank in the carolinas that stayed open during the great depression.

we have always prided ourselves on being prepared to whether different -- difficult circumstances. one of the things that happened because a lot of new regulations came in at the federal level. we heard about how that was not fair to the regional banks. if you were that conservative, did it make any difference? right.that is basically regulations in terms of increased capital was not a material issue for bb&t. we were already extremely well-capitalized. the consumer protection laws that came about were not a particular change for us. there were changes that were imposed on all the systems, some

of which were good, some of which were bad but i would say we were not as impacted as some institutions offer -- operating more on the fringe. david: there has been a fair amount of effort in washington to give a break to the regional banks. kelly: the has been tremendous progress in the last few months. i will say in fairness to the current leadership, they are doing a fantastic job in trying to look back at what was put in place as a result of the crisis, how much of that was good and how much of that was an overreaction and they are methodically making changes including a nice change putting the level playing field back into place so that banks are being looked at more reasonably now in terms of

the actual risk of the organization. what happened out of the crisis -- a widewas a ride range of risks taken by the banking system. david: i would like to ask about that. federal reserve bank -- we had dan to rouleau on earlier -- are you competing with nonbanks in your business? kelly: i would say he is right. i have been the business 46 years and i have seen a lot of changes. when i first heard of lending money, banks in this country made over 80% of all the loans that were made. by the time we went into the crisis, that share of market was down to about 30%. 50% of all the loans were made by nonbanks, the so-called

shadow banking system. a major cause of the crisis was that shadow system was out of control. it was unregulated. it had inadequate capital and liquidity. frankly, people did not understand the risk that that system was taking. after the crisis, everybody blamed the banks that was not totally fair. alix: what do you think the next financial -- the next crisis for the financial system is? i think there'll always be corrections. allowednterprise system to exercise itself properly will always have some excesses which will require some corrections. it is kind of like all of us wanting what we eat and some of

us always eating a little too much. do not predict i at this point a major crises -- crisis as far as i can see in the financial services system. banksare risks, but the have twice the capital, twice liquidity -- twice the liquidity. people watching should know that the financial system is extraordinarily safe. david: you are based in north carolina and we have something called florence. give us a sense of anticipating what that might do to your customers and your business. kelly: it is potentially going to be devastating. it has the prospects of being worse than we have seen in 50 years. recall that just two years ago, hurricane matthew came through and it was a tragic event. we still have people living in fema trailers.

this is going to be devastating for our area. the amount of rain is going to be awful. we are preparing for the worst and hoping for the best. we have always taken disasters very seriously. we have tractor-trailer loads of water and necessities ready to go. we will bring in huge amounts of supplies to help our people, associates and communities. david: it is a big deal. thank you very much. we wish you the very best. that is kelly king, bb&t's chairman and ceo. alix: here is what i am watching today. isning us now from london bloomberg's european technology editor and reporter. what is the most important thing investors need to be watching at 1:00 p.m. new york time?

on whether apple can introduce a new product line. this is the kind of thing we saw when the ipad was introduced, when the watch was introduced, when a larger size iphone was introduced. they caused the biggest the site -- excitement among investors and consumers. we're likely to see another year updates to the existing product line. we're expecting three new iphones with larger screens, two but in terms of the big kind of stuck moving brand-new product categories that everybody wants to see, autonomous cars, software, that is going to be something we to wait another few months for. those things we're

going to see today going to be enough for the stock? >> it probably won't be a disappointment but everybody knows that apple has a certain cadence with its product release cycle and one year is the big year and the next year is more of a incremental year and that is what we are seeing. alix: thanks so much. stay with us later, we will be live from apple jiggy headquarters at 1:00 p.m. on bloomberg television -- apple's headquarters at 1:00 p.m. on bloomberg television. that does it for bloomberg daybreak: americas. this is bloomberg. ♪

jon: from new york city for our viewers worldwide, i am jonathan ferro. this is the countdown to the open. ♪

the longestup, losing streak since 2000 two, asian equities racking a 10th consecutive day of losses. the european central bank said the cut and trade tensions down external demands. apple releasing the new products today, the big unveiling the coming up. 30 minutes away from the opening touchfutures just a softer, down three on the s&p. the fx market, weaker euro against the dollar. 10 year treasuries with a bit of it -- of a bid. here is the market that cannot catch a bit, asian equities selling off for the 10th consecutive day, the longest losing streak in 16 years free it >> you see a crisis in turkey affecting the rest of southeast asia. >> to