firms? >> the spirit of it is to make it as like for like for firms as possible.are not time to say to firms, you have to go through mifid ii implementation again. that is not our objective. nejra: when it comes to anothering for banks, issue around brexit, you have said another issue in your planning as to how ago -- how to go about these authorizations. do you have a framework in place and will it be more lenient than the eu's framework once the u.k. leaves? >> the framework we want and will have in place is first of all governed by the philosophy that we want to have open markets, i'm a strong believer in free trade. the passport function is a subject of european union law. what that means in terms of inward authorizations is where firms want to continue to operate in the u.k. as they have in the past using the passport system we will need to devise a system of authorizations to allow them to do that. the big question we need to mean that, does that we have to find a way to do it all by day one, fully start to finish? experiencede domestically, we could use a s

you went to new york law firms right afterwards. i applied to new york law firms.ot job offers at some, and i didn't get job offers at others. okay, but you wound up at donovan, leisure. there was another firm that hired me first, which was-- and i accepted a job in the tax department. this was a famous, top-notch new york law firm. in their tax department. i got a call from them after i'd accepted the job, and some months had gone by. and they called me up and said, "we're gonna move you-- we've over-hired for the tax department. we're going to move you to the corporate department." i said, "i've taken all of these tax courses. i kind of want to be a tax lawyer." he goes, "well, we've over-hired, and we don't have a slot for you, but corporate lawyer is fine." i said, "well, do me a favor. tell me how many slots do you have?" and they said, "four." i said, "well, how many people did you hire for tax?" and they said, "five." so i said, "well, let me get this straight. so i'm fifth on your list of four people for this job. is that right?" "well, we don't look at it

that's up over 7% from the year before. 0ne firm cashing in on that is a firm called qualtrics.roving what they offer to customers. it has 8,000 customers and is valued at more than $1 billion, giving it that mythical unicorn status. we probably need to explain that! we'rejoined by ryan smith, the co—founder and chief executive of qualtrics. welcome. let's talk about the unicorn thing. we love to band around this title but it is nice to be that. just explain it to 0scars matt we did not set out and say we wa nt to matt we did not set out and say we want to be a unicorn that something happened in 2014 where people became valued at over $1 billion. then this unicorn started taking off and it started with 30 or 40 companies, now there are 170 and then there is the deco unicorn. what is that? it has kind of fizzled out a little bit. do you get together, the 140 unicorn i you get together, the 140 unicorn 's? you have to have a big unicorn stall to get everyone together. i think that was more of the 2015 thing. let's just think that was more of the 2015 thing. let'sjust talk think th

firms? >> the spirit of it is to make it as like for like for firms as possible.y to firms, you have to go through mifid ii implementation again. that is not our objective. nejra: when it comes to passporting for banks, another issue around brexit, you have said another issue in your planning as to how ago -- how to go about these authorizations. do you have a framework in place and will it be more lenient than the eu's framework once the u.k. leaves? >> the framework we want and will have in place is first of all governed by the philosophy that we want to have open markets, i'm a strong believer in free trade. the passport function is a subject of european union law. what that means in terms of inward authorizations is where firms want to continue to operate in the u.k. as they have in the past using the passport system we will need to devise a system of authorizations to allow them to do that. the big question we need to resolve is, does that mean that we have to find a way to do it all by day one, fully start to finish? or as we have experienced domestically, w

that is the reason why some firms will treat this differently than other firms.he important thing is that clients ultimately will be footing all of the costs of the fund. they have always done that, and that is the nature of the regulation, to make sure those costs are visible to clients. some had been hidden, costs not revealed. nejra: in terms of costs, will we see a race to the bottom, or could the costs go up? guy: the costs will go up, the research costs will go up, but they have started high and they are coming down quite rapidly as we approach the implementation of mifid. it is a challenge for firms because many don't want to charge for this research. even if it was not designed in order to attract and prompt transactions, they may still see it as a cost of doing a broader type of business, particularly if you are a bank and haven't got an equity capital markets division. you want to show you have a really good understanding of the market. in order to do that what firms need is a lot of clients to do that, and to ensure lots of clients, they are becoming m

that is the reason why some firms will treat this differently than other firms.he important thing is that clients ultimately will be footing all of the costs of the fund. they have always done that, and that is the nature of the regulation. it is to make sure those costs are visible to clients. some of the research costs were paid in and had not revealed. nejra: in terms of costs, will we see a race to the bottom, or could the costs go up? guy: the costs will go up, as the research costs will go up, but they have started high and they are coming down quite rapidly as we approach the implementation of mifid. it is a challenge for firms, because many don't want to charge for this research. even if it was not designed in order to attract and prompt transactions, they may still see it as a cost of doing a broader type of business, particularly if you are a bank and have an equity capital markets division. you want to show you have a really good understanding of the market. so in order to do that, what firms need is a lot of clients and in order to an sure they -- to

the firm is preparing to be sold.the latest high—profile firm to sever ties with the pr firm following a controversial campaign in south africa. the archbishop of canterbury, justin welby, says britain's economic model is broken, as the gap between the richest and poorest widens. he says that britain stands at a watershed and must make "fundamental choices" about the direction of the economy. more strong economic news from australia today — it's recorded a strong pick—up in growth in the last three months. it's now more than 26 years since australia last faced a recession. many of you are probably going, "what does that feel like?" hywel griffith is in sydney. it's the wonder from down under, isn't it? it feels good for australians. it doesn't mean that they don't keep worrying about it. no one expected the growth. the last quarter's growth wasn't as strong. it is mostly down to domestic spending on food and clothing, increasing, whilst saving rates have declined. so consumers basically deciding to splurge a little if

person, we are not the firm to do that.'t want to work with you. if you've already got the contract, and that is ongoing, you have to push back and say that is not accept the ball, and you can point out the reasons why. we are talking about a firm that deals with reputation management, and its own reputation management, and its own reputation is in the dustbin. do you think this is enough now in terms of the pr industry, how damaging is it for the industry or has the actions of prca been enough?” for the industry or has the actions of prca been enough? i think the actions have been applauded and the firm action will be welcomed across the sector. is it the last thing? no. you will always have politics journalists always undertaking some behaviour that is unacceptable. it won't be the last. but by taking very strong and clear action against them, at least the industry has stood up and it is only to be applauded. moving on. brexit, uk construction slumps to the lowest. very worrying. to put it mildly. yes, some projects, ther

thatcher who founded the firm but left afterfalling out margaret thatcher who founded the firm but leftnk that it probably is getting nearthe end, i think that it probably is getting near the end, yes. you can try and rescue it but it will not be very successful. this scandal has sent shock waves through the british br industry and also young democracy of south africa. the pr —— but the prca isa south africa. the pr —— but the prca is a trade body rather than a regulator and when some very rich individuals orfamilies regulator and when some very rich individuals or families are prepared to spend huge sums to burnish their reputation, frankly, some pr firms like bell pottinger in london will ta ke like bell pottinger in london will take the money. and a ticking off and temporary ban from a trade association is not going to change that. but for opponents of president zuma, this is not so much about the state of pr is the state of south africa. one family‘s grip on power is tightening, even as the reputation of their pr advisers is 110w reputation of their pr advisers is now in the gutter.

a report by the law firm herbert smith freehills has heavily criticised the work of a british pr firmresidentjacob zuma. james henderson, the ceo of bell pottinger, resigned at the weekend, in anticipation of today's findings. earlier our media editor amol rajan gave us further details of the report. there is a hugely controversial south african set of brothers called the guptas who hail from south african set of brothers called the guptas who hailfrom india south african set of brothers called the guptas who hail from india and they have got enormous power and influence in south africa, they have a conglomerate which spreads from mining to media. they are accused of rampant corruption, they are allegations they deny and they hired allegations they deny and they hired a british pr firm to look after their reputation and they did so through a firm called oak bay, which they own, and it seems that they had been up to mischief, using methods to. there were allegations about fa ke to. there were allegations about fake twitter accounts, spreading a poisonous term about white monopoly capit

things were going really well at the rothstein law firm. yes. yes. dennis murphy (voiceover): then came march 5, 2008, just one week after melissa had been made partner. it was a wednesday night. debra tried to call her several times, but got no answer. the next morning, though, when melissa was a no show at work, debra called her friend repeatedly but to no avail. then she got ahold of melissa's sister carrie. and carrie was like me, oh no. no. something's wrong. dennis murphy (voiceover): debra told her boss, scott. well-connected attorney that he was, he called a police officer he knew in plantation, florida, where melissa lived. the officer agreed to meet debra and carrie at melissa's house. when they got there, everything seemed to be normal inside the home. nothing was tossed? drawers weren't opened? nothing. nothing. no. the only thing that was amiss was in her garage. dennis murphy (voiceover): melissa's car-- her caddy suv-- was gone. and that's when they all clued to something bizarre-- a fine mist of what looked like orange spray paint thr

which may tend to increase firms pricing power.se these changes occur slowly, determining their complex effects on the economy will, as practical matter, requires studying data over a considerable time. finally, i would note to the possibility that inflation may toe more sharply in response robust labor market conditions than anticipated. the influence of labor utilization on inflation has become quite modest over the past 20 years, implying that the inflationary consequences of misjudging the sustainable rate of unemployment are low. but we cannot be sure that this modest sensitivity will persist in the face of strong labor market conditions, given that we do not fully understand how it came to be so modest in the first place. although the evidence is weak that inflation response to resource utilization, the risk is one that we cannot entirely dismiss. what are the policy implications of these uncertainties? for one, my colleagues and i must he ready to adjust our assessments of economic conditions and the outlook when new data wa

that is the reason why some firms will treat this differently than other firms.nt ring is that clients ultimately will be putting all of the costs of the fun. they have always done, and that ,s the nature of the regulation to make sure those costs are visible to clients. some had been hidden through doing costs not revealed. nejra: in terms of costs, will we see a race to the bottom, or could the costs go up? up, theosts will go research costs will go up, but they have started a high and they are coming down quite rapidly as we approach the implementation of midid ii. it is a challenge for firms because many don't want to charge for this research. even if it was not designed in order to attract and prompt transactions, they may still see it as a cost of doing a broader type of is this, particularly if you are a bank and haven't equity capital markets division. you want to demonstrate an understanding of the market. firms need a lots of clients to do that, and to ensure lots of clients, they are becoming more and more competitive on pricing. nejra: i want to take

the chief executive of pr firm bell pottinger resigns amid accusations the firm stirred up racial tensions had a leaders in the last year but it's been a few months since the uk independence party last elected a new leader. we'll meet the candidates the bookies think are likeliest to land the gig this time. good evening. in a crisis where language is critical the us ambassador to the un

pr firm in south africa.with close links to presidentjacob zuma. james henderson, the ceo of bell pottinger, resigned over the weekend, in anticipation of today's findings. we can talk to our media editor. what is it they have done? this comes back to three brothers who are these indian origin brothers who over 25 years have acquired massive power in south africa and they are accused of rampant corruption, which they deny. they are very close to jacob zuma. they needed help with their pr and they called bell pottinger, which was originally founded... it is notorious for the it is very well known question lord tim bell has worked with some people like to who have less than clea n people like to who have less than clean records. bell pottinger were accused of doing some pretty nasty things, setting up fake twitter accou nts things, setting up fake twitter a ccou nts to things, setting up fake twitter accounts to spread false information, and stoking racial hatred. this report that this law firm have published t

firms >>> we have new information about how hackers breached the s.e.c.andon dowdy has more. >> as the s.e.c. chair heads to the hill today, we're starting to get new information about the hack that happened to the s.e.c.'s computer system last year according to reuters, companies were using real financial data to test the edgar system that system was hacked last october, and it's the s.e.c.'s network that is crucial for companies to use to file earnings reports and other material information it was only after the s.e.c. detecteded a suspicious trading pattern when the hack was brought to the attention of officials. reports say the secret service and fbi opened investigations into the intrusion focusing on that trading activity and connection with the breach in prepared remarks to the senate today, jay clayton said there was not enough done to size up the breach and the s.e.c. must do more to defend against cyberattacks this is not the first cyberaccident that the s.e.c. experienced. earlier this year, an s.e.c. server had not been updated to fix known vu

richard threlfall is head of construction at accountancy firm kpmg.ow what many had been expecting. yes, it has come as a shock. more evidence of the economic storm clouds gathering over the uk largely due to brexit uncertainty. the figures we have seen this morning show a slowdown in newjobs, seen this morning show a slowdown in new jobs, growth seen this morning show a slowdown in newjobs, growth creation in the construction industry and a significant slowdown in new building offices and other commercial construction. construction makes up a significant proportion of the uk economy. if construction in this country is in trouble, we all are. you talk about economic storm clouds, but this does out as —— cou nters clouds, but this does out as —— counters factory output, more upbeat news. the construction industry has been consistent since the brexit vote because it is a sentiment driven activity, particularly commercial, investing in new offices and plants when they are optimistic. when uncertain about the future, which remains the case due to brexit,

mark: still ahead, research firms and fund managers are bracing for impact. banks getting ready for new rules. what will fund managers do? ♪ . ♪ julie: live from bloomberg will take orders in new york and london. i am julie hyman. mark: i am mark barton. this is bloomberg markets. >> hurricane irma weakened slightly overnight but still projected to afford on sunday and bringing powerful winds and potentially deadly storm surge. it has been downgraded to a category four with winds of 155 miles per hour and it has triggered a record of actuation from miami. from miami and it could become the most expensive natural disaster in u.s. history. mexico, a major earthquake off the southern coast has destroyed houses and killed at least 26 people. it hit near their border with .uatemala at a magnitude of 8.2 the president of mexico calls it the biggest to hit mexico in one century. the race to be the new chairman of the federal reserve is wide open. the white house is considering at least six people, including economists and business executives. it goes against the nar

cory: in other words, if france -- french-backed capital firm or a german-backed capital firm, it mightace the same pressure. >> that would apparently be the case. cory: is there a suggestion that somehow there could be embedded ability to monitor the use of these chips, if a chinese company, government-controlled company could see what was happening with these chips? >> they are used in networking. cory: 25% or 28% of revenue for the company last year. >> a lot of networks have these chips in them that can control various functions and the updated. i want to stress quite clearly of course security is the stated reason. but, fundamentally, the u.s. semiconductor industry, the u.s. government does not want china coming in and taking those key capabilities away from it. cory: who else competes in this area? >> intel, altera. cory: and the business was a lot more focused on networking and also a lot bigger. >> they divide the market up between them. this is a bit player. cory: there was a suggestion that this was being used in a lot more stuff than it used to be. i thought at the time that

qualified auditing firm like bryant or what have you. thank you. >> senator donnelly. >> thank you, mister chairman. i understand the sec is reviewing the acquisition of the chicago stock exchange by a chinese company. i don't expect to comment on the specific transaction but can you generally describe the review process within the sec? >> the review process in the sec is styled as a rulemaking. there were 240 days for a division of the commission subject to delegate authority from the commission to review the application. that was approved. that provides the commission with opportunity to review the approval. the commission took that opportunity reviewing the decision. >> in light of recent high profile cyberbreaches are you concerned the ownership and control of an american exchange by a foreign entity could expose markets to new risks and vulnerabilities? >> i am not going to comment on the specific matter before the commission at this time. it would be inappropriate. i am aware of various issues raised by common sense. >> i am not as

on the sell side do bigger firms, can they take more of a cut?nts because they will see the execution cost reduced and in many ways the losers are the investment banks that will have to ration how much they invest in their research departments and portfolio managers, who will take on their own p&l. broadly, you might argue -- and i heard regulators outside of europe say this -- you might argue the richness of research available in a particular market will suffer. time will tell. francine: all of this onus in regulation will clear in part from consolidation, but most consolidation was because it has been passive versus active. how much does regulation exacerbate the movement? >> on the banking side? francine: on asset managers. >> i think it is massive. the cost of our complaints can -- compliance and legal department, our risk department, has risen many folds over the past five years. i don't know exactly the number, i just know that is the biggest area of full-time employee growth we have seen in the past few years. similarly, if you look at the

on the sell side do bigger firms, can they take more of a cut?nts because they will see the execution cost reduced and in many ways the losers are the investment banks that will have to ration how much they invest in their research departments and portfolio managers, who will take on their own p&l. broadly, you might argue -- and i heard regulators outside of europe say this -- you might argue the richness of research available in a particular market will suffer. time will tell. francine: all of this onus in regulation will clear in part from consolidation, but most consolidation was because it has been passive versus active. how much does regulation exacerbate the movement? >> on the banking side? francine: on asset managers. >> i think it is massive. the cost of our compliance and legal department, our risk department, has risen many folds over the past five years. i don't know exactly the number, i just know that is the biggest area of full-time employee growth we have seen in the past few years. similarly, if you look at the number of regulat

chip company by a private chinese equity firm. what do you make of those?here and there, now and when, and this is a way that if you see that optimistically, or positively, they should understand each other better, so i think the next two years, there is a lot of conference all the time, but whether it will be a fatal disaster, whether it will be a line on the wisdom of the leadership. emily: how about when it comes to your business in china? president xi has taken more steps to put restrictions on the internet. this is your business. what do you make of that? jack: really? emily: shutting down of the vpn's is one way. jack: we probably see a different view because this is the weight i see business. -- is the way i see business. in the past 18 years, i have been questioned by censorship, this and that all the time, but i am the first internet guy in china since 1995. the american has been enjoying democracy for 250 years and china has just had it in the past 30 years. china is learning a lot of things that they can progress. if there is controlling here and

wood went to the fourth floor offices of the maddox anger call firm. that is where he at law firm. 911 callsa flurry of and mass evacuation of the building. the police say wood later use the gun to take his own life. >> how relieved are you feeling? >> is great. that is the most important thing. >> i'm so happy that i have back my two lovely kids. --wife is so glad, she was she was screaming. this was an active shooter. this is traumatizing to everybody, including myself. kevin: the police have not revealed a motive. on the family law firm's facebook page, one person wrote "everyone, sears look up have a security plan in place. family law attorneys, especially." to which one of the firm's attorneys responded saying "i agree, but when the person who enters has entered before without inc thankfully, everyone in the office took appropriate action. but if things have been would not have helped. we are so very fortunate. as no one else was injured in this shooting at a law firm that predominantly handles divorce, child custody, and domestic abuse cases. kev

james henderson, the chief executive of one of the uk's best known public relations firms, has stoodacial tensions in south africa. bell pottinger has faced criticism from the country's main opposition party after it ran a media campaign for the wealthy gupta family. south africa's democratic alliance party said the pr firm emphasised the power of white—owned businesses. the eu's brexit negotiator, michel barnier, says he plans to "educate" the british people about the price it would pay for severing ties with brussels. the european union suggested that little progress had been made in the latest round of talks. the british government has hit back, claiming that the eu was not co—operating in negotiations. i wonder how they plan to educate people? maybe it will be a leaflet drop from a plane with facts! we will talk about that with our markets guest in a moment. pirelli is planning a market listing. the tyre maker is planning to return to the stock market in milan, italy, it is the world's fifth biggest tyre maker. it delisted in 2015 after a mandatory offer launched by an investment

even after the new firm is founded the pressure on the europeans will increase siemens has considered canadian company body a but the deal was reportedly derailed by a bum body is shaky finances now the competition authorities need to get on board otherwise the big european deal could hit the buffers prosecutors in the united states have charged ten people including an added as executive where the bribery and fraud that's following a widespread investigation into corruption in college basketball prosecutors accuse the manager of bribing athletes families to get players to attend university. and confirm the arrest of the executive on tuesday saying it was unaware of any wrongdoing on its part. and so he is on wall street for us so he how serious is this case. i mean the f.b.i. is investigating this case so it seems pretty serious to me in and to me and it could mean huge damage to the editor's refutation and it could also shape the rivalry between ideas and its competitor nike not too long ago i did have became the number two of the american sneaker market was something around eleven p

out about hiring and doing good business and changing the nature of the firm. is a statement he wants to make whether it is smart are not remains to be seen. the returns of his family office has not been as dramatic as it 30% annualized return to was making in the three decades, two decades. mark: what happens now? what is the sequence of events for the rest of the year? simone foxman: his marketers, shorebridge firm that he is hired to talk to investors, they have said he and his portfolio managers will not be made available to talk to investors until after january 1. however, from the folks i am speaking to, there are plenty of people willing to throw their money and regardless, not naturally wait for a meeting with steve. just understanding his background. diligence,o the due essentially for that son off for their principal and treasury and however those allocators do business. and such that they could have money ready january 1, the date they decide to open. julie: we will be watching to see how he ends up doing. thank you, simone foxman. let us check in on

that just adds to the competitive pressure for a firm like man. to get ahead, they've been focused on the new frontier of quant, machine learning. the firm's chief investment officer says with machine learning, the computers don't have to be told how or what to trade. they do it of themselves. >> a good example might be if you want machines to buy on dips, then it's sometimes quite hard to describe a dip perfectly, but the machine learning will look for patterns of what dips look like and what happened next after a dip. it will be much less where we set the strategy for it, much more that it learns from the data that you present. >> reporter: he says the use of machine learning has helped deliver returns above and beyond that of traditional quant. the firm has been employing the strategy for three years now and partnered with university of oxford to stay ahead of the curve. meanwhile, it's clear that the combination between technology and human investment will only become more intertwined over time. >> a good computer will always beat a good human

a report by the law firm herbert smith freehills has heavily criticised the work of a british pr firmrmation when contracted to work for the gupta brothers, a controversial family with close links to presidentjacob zuma. james henderson, the ceo of bell pottinger, resigned at the weekend, in anticipation of today‘s findings. our media editor amol rajan is here. not perhaps a story that people might be familiar with. it's a complex story but one that really matters. there is a hugely controversial set of south african brothers duhail from india, controversial set of south african brothers duhailfrom india, called the gupta brothers. they have massive conglomerate that spreads from mining to media. they are accused of rampant corruption, which they deny. they hired a british pr firm to look after their reputation. they did it through a company that they earned. it seems that bell pottinger have been up to some mischief in using modern methods to improve the reputation of the gupta brothers. they have been accused of using fake twitter accounts. they have used the phrase white monopoly c

so during the time that i've been on the fsoc, only one firm, several firms were desnated before i participated. met life was designated during the time i was there and seen how the designation process works. i do think designation is important. we saw during the financial crisis that nonsystemically important, nonbanking organizations like lehman and aig that distress produced broad, systemic consequences that were adverse for the u.s. economy, and having the ability to designate firms when the fsoc makes the determination that their distress or failure could have systemic repercussions, i believe that's an important -- an important policy tool for fsoc to have available. now it's not meant to be a one-way street in the sense that a firm that's designated, the procedures require annual review. firms may change business models or how they conduct their business, and we should welcome dedesignation of firms if business model has changed in a way that leads us to believe that their failure or distress would no longer be systemically important, and thes are decisions that we make every year. so i'

bigger firms, can they take more of a cut?because they will see the execution cost reduced and in many ways, the losers are the investment banks that will have to ration how much they invest in their research departments and portfolio managers, who will take on their own p&l. probably, and i've heard the buzz that europe say this, you might argue the richness of research available in a particular market will suffer. time will tell. >> all of this regulation will plate apart and consolidation. most of it has been because of the passive versus active. how much regulation exacerbate the movement? >> on the banking side? massive. the cost of our complaints can the legal department, our risk department, has risen many folds over the past five years. i don't know exactly the number, that is the biggest area of growth we have seen in the past few years. if you look at the number of regulatory exposures we have on a constant basis, it is massive. we have smaller players seen consolidation there, are taking the view it is no longer pro

even after the new firm is founded the pressure on the europeans will increase siemens has considered canadian company body a but the deal was reportedly derailed by bumb body is shaky finances however if the competition authorities aren't all aboard the big european deal will hit the buffers. this some of millions and millions of eggs or recalled from supermarkets right across europe it emerged that they were tainted with an insecticide called fairbairn ale turns out the insecticide was also related to the demise of bees in romania for two years beekeepers that have been seeking compensation but they are getting away. millions of bees used to buzz around here collecting nectar but two years ago all the buzzing activity around beekeeper costello shiela fell silent. take a look all the bees are dead all because of this chemical they sprayed on the fields my entire business is destroyed at some point i'll have to burn down everything. in the spring of two thousand and fifteen wheat fields here were sprayed with the insecticide five percent which contains the chemical fiber no known for

trade union collective bargaining will also be watered down, and firms with fewer than 20 staff will to negotiate directly with individual employees, instead of a union branch. the reforms are aimed at boosting growth in europe's third biggest economy. in the three months to the end of june the economy grew byjust 0.5%. france also has a stubbornly high unemployment rate — currently around 9.5% of the workforce, or roughly 3 million people. that compares with a figure of 4.3% across the border in germany. the strike has been called by france's biggest trade union, the cgt. other major french unions representing workers in sectors like health care, education, and transportation have also asked their members to join the industrial action. it's worth noting that the protests will overlap with an unrelated strike by air france pilots. ben, over to you. thank you. laurent clavel is head of macroeconomic research at axa investment managers in paris. laurent, a very good morning to you. welcome to business live. sally was talking us through some of the issues there but i am interested first

the firm's share price has soared over the past few months. december last year, it has climbed more than 50% and is now just over $160 a share. but not everything is well at the tech giant. it's been struggling in china where it's losing market share to competitors. in the last quarter its revenue in the country fell by 9.5% tojust over $8 billion. and a big question — is apple innovating fast enough to compete with its rivals? 0liver smith is a senior reporter at tech publication, the memo. the usual fanfare last night from apple. what did you make of it the launch? it was a great event. there was lots of products. the new apple watch and the iphone 8 which most people will be getting and then the big one, one more thing, the iphone 10 which we had been expecting, it was rumoured and apple came out of the park and delivered on everything we have been hoping for. as far as features are concerned, how does it compare. some features are available elsewhere? is it that they are all packaged together? this is the apple way of doing it. they take t

this we're going to call private equity firms.vate equity firm. >> it's possible he forgot to say that. under the gun, this is at the alpha seeking conference. you get nervous and misspoke because the president uses the word hedge fund all the time. it's a misnomer to think that hedge funds benefit mainly from private equity. hedge fund rarely benefits because they trade in and out of stocks. liz: you know what drives me crazy? this was discussed couple of years back, it didn't feel fair to lower income people that get taxed at a different rate. that's a rounding error, so few people, it would save a couple billion -- who cares? psychologically way bigger than a rounding error. >> there is a bigger argument, you would blackstone to buy and fix them and give them a tax break to keep jobs. the private equity business would say these are the jobs we saved. that is not the point. if they're focusing this on hedge funds, they are not closing this loophole. this loophole is mainly used by private equity firms and they are blowing smoke

we cannot be an american firm trying to put american values into those different places.robably our biggest transformation, that is how in my mind that companies navigate above the problems of protectionism. >> one thing that governments change the game that larry was talking about. often, it is governments that insist on certain mixes of not beingich end up in the best interest of the people. who are supposed to been a beneficiaries, and the governments that ultimately get left with the bill. make no mistake, it is going to end up underwriting the underperformance, it is the government. they cannot default on their people. so, this is a big problem. allowlly, the governments what we would think from experience, odd outcomes, and governments have to encourage certain types of asset allocation mixes. or they will be stuck with the same under performances. it is a ginger for the solvency of the government long-term -- it is eight danger for the solvency -- it is a danger for the solvency of the government, long-term. downrkey's president sat with our bloomberg editor in chi

in fact to the feds for firmed measure of inflation has not exceeded 3%. in heading above the feds symmetric goal for inflation. >> we are charged with trying to pursue maximum employment. and we have taken that very seriously. less advantaged groups, the labor markets, and african-americans and hispanics has fallen more dramatically for that as a whole. these are very positive developments. in the objective over the medium term. i recognize, and it is important that inflation has been running under our 2% objective for a number of years. is particularly of concern if it were to translate into lower inflation and occasions. years, there are understandable reasons for that shortfall. it would be largely disappeared none of those factors are operative and more of a mystery. the regular projection shows fan charts, the typical size of forecasters and inflation. the forecast by ourselves and private forecasters with errors. thesere is variation in economic variables from year-to-year. i would say our judgment is that the shortfall is not largely related to cyc

they are a firm whereas long as they can get large indestructible jets they are a firm whereas long asigning up record contracts. other businesses in this area have not done very well. the figures up until 2020 looking promising and so shares go up. justin, good to talk to you. thank you. let‘s have a quick look what is happening in the states. perhaps we cannot bring you what is happening. there are some early profit—taking going on. the federal reserve unexpectedly retained its hawkish outlook for interest rates on wednesday. we also seeing the dollar falling back against the euro but firming up against the euro but firming up against the euro but firming up against the safe haven of the yen, the japanese currency. on wednesday, the japanese currency. on wednesday, the dollar rallied strongly against most of those main rivals and the dow reached a fresh record high so we will keep a close eye on that. you can keep in touch with me and the rest of the team on twitter. and as ever there is more on our website. that is all from me. thank you, alice. some breaking news, we are hearing th

we speak to the boss of one firm that'sjust been named in fortune's annual firms to change the world and — in the firing line. the boss of levis says there's a right way and a wrong way to fire staff. we want to know, what's your worst sacking story? or have you had to fire someone? let us know, just use the hashtag bbcbizlive. hello and welcome to business live. if you want to get a story about being fired off your chest, you know where to come. over 3 million people are without power in florida as hurricane irma continues its devastating trek across the state. the business district of miami is suffering from severe flooding and it's not over yet. it's all going to have a huge impact on the united states, the world's biggest economy. experts say this is the most expensive weather to ever hit the united states. it's too early to put an exact figure on the cost, but the bank credit suisse is projecting losses could be in the region of 125 to 250 billion dollars. the latest on the number of americans claiming unemployment benefits show the first signs of the economic fallout. with a sp

yesterday a large number of firms saying this is not the right step and it is not the right way forto go. when you say daka, deferred action for childhood arrivals, 800,000 young people affected by this —— daca. this is a programme barack 0bama put in place to try to solve this issue of children or young people who have grown up children or young people who have grown up in the us and have not had official status. donald trump is saying "we need proper reform of this process" and that daca programme was brought in because of a lack of action on fundamental reform. and it seems to be with everything we discuss in the us, tax reform, healthcare, their situation, is this issue of not being able to reform things properly or get anything through congress, which means you've got this kind of fudge. is that something...? means you've got this kind of fudge. is that something. . . ? it is a very good point. congress has been asked to fix the situation before and mr trump has said "i want a replacement for daca" which remains to be seen, whether it is realistic, although the republicans cont

eric holder you know he's moved on back to his corporate defense firm where all he does his job is to protect wall street crooks that's what eric holder does this guy who was in charge of the department of justice that was supposed to be looking out for consumers goes back to covington and burling goes to work with them he's now he's now back at his job making an awful lot of money not much downside to the people who victimize you if i look at this right jeff and just to i mean if i look at this right with what happened to jeff sessions and eric holder not much downside of them is are well the other thing is that in two thousand and seven when karl rove and george bush's twenty two thousand twenty two million e-mails were destroyed it was eric holder's law firm who defended karl rove in the republican national committee when congress was trying to hold karl rove in contempt so there's a you know there's a and of course is his firm was defending those wall street bankers at the same time. yeah don i got to go les we're going to continue we'll do a couple more shows on this is the word

. >> i am a firm believer in europe.ing my election campaign, a lot of people told me, you are crazy. you are a poor european and you think you can win and france? i did believe it was feasible and that is because we need europe in this current environment because we have european values. now, the challenge is how europe can be a supporter with united states and china. for me, the main reason europe has the lack of project and lack we are trying to fix crisis at the very last minute without any project. scale in the relevant order to be with energy, and i do promote europe and single energy. it is a multi tool. we have french and european leaders, and europe will be stronger in this. it is a simple, digital security defense. and investment and economy, what does it mean? objectives --e 10 plenty of objectives for europe and we have to decide on convergence and investment decisions. we will have to take chances, but we need these new ambitions. for my generation, there is one alternative, do we want the dismantling of eur

it's due to potentially faulty airbags made by the japanese firm takata.dwide and led takata to file for bankruptcy in june. and shareholders in the luxury shoe and handbag—makerjimmy choo are set to vote on whether to approve the company's takeover by michael kors. the deal is worth $1.2bn and would represent the fifth time the brand has changed hands since it was founded in 1996. the ftse is linked to the fate of the pound a little bit. itjumped up sharply at the end of last week because people were thinking that interest rates were going to go up faster than expected but that the pound has beaten just faster than expected but that the pound has beatenjust a faster than expected but that the pound has beaten just a touch against the dollar, largely. and the ftse up at 20 nine. and the ftse up at 20 nine. shares in insurer esure jumped by 5.67% to 277.50p that is the business news. i will be backin that is the business news. i will be back in an hour. it's a week and a half since hurricane irma brought destruction to large parts of the caribbean, with the