tom: only what we do on tuesday and we can do the greek letters with gina martin adams. beta. work for a sector? or does beta work for individual stock? or does it work for all three? gina: i think it works for all three. we look at beta all time -- all the time. your highest beta sector is financials. financials is most likely to outperform on the up cycle. tom: the good people at state street global, are the same -- are they the same as james dimon over it jpmorgan -- over at jpmorgan? what about all the banks that are baseball parks? -- the big banks are more diversified. the regional banks are more exposed to the loans. time onspend 95% of our five banks. imf idiot. gina: -- i am an idiot. are: the asset management's pretty high value because everybody's been down the gates. he have some value in insurance because of the hurricanes recently. tom: ewen: dollar recently. gina martin adams, sticking with the dollar. let us walk a little bit of safe haven, 112 on dollar yen. sterling, 94.36. stay with us. it is washington. ♪ what did we do before phones? they save us from getti

gina martin adams: it is part of it. and more domestically focused segments of the u.s. market, consumers stocks start to break down, which is part of the same story. growth, international growth, in particular, do best within the u.s. equity market and a tear down structure to the energy and telecom which is doing worst. alix: we know how you feel about banks but what about tech? bigd bianco: we do prefer banks over small banks because of the flattening curve. we like to find violations reasonable and nowhere as outrageous as in 1999. i am seeing a scenario where we could have somewhat outrageous valuations and technology because of the low interest rate and a softer dollar and post some of the best earnings. i do not think it gets quite as extreme as 1999 because emerging stop markets are a way for people to go and that was not around in the late 1990's. i think attack will leave it up in the next three years. david: what is the sensitivity on tech? what will drive it up or down? david bianco: there is room for pe expa

gina martin adams, thank you.g global business forum for a conversation about civic leadership. murphy is standing by with tim cook, the ceo of apple and a michael bloomberg. . has resurfaced and of the private sector has had to take on more of a role not just in the u.s. but around the world. i am going to start with you. you have made a conscious effort to move apple to step into this void. we see governments not as effective and not as fast. how are you position and where in theapple's role environment we face now and your personal responsibility of the company that touches on many people's lives? >> thank you. and i want to say thank you for getting us all together. >> thank you for coming. tim cook: everybody is going to buy an x. [applause] my view has always been that people should have values. companies are nothing more than a collection of people. and so by extension, all companies should have values. and so as a ceo, one of your primary responsibilities is like what the value of your company is and lead

gina martin adams, chad morganlander, just calling the death of inflation. what happened to the spy? it is set to be the first time in a decade that we have seen under $1 trillion of turnover in the quarter. what is going on? eric balchunas is joining us. i look to spy volume. this low volatility volume affects spy's volume. spy is what active managers hold or liquidity. there are options around it. so when you see volume crank up, people are truly scared. sometimes the vix will go up and spy doesn't. the other thing is that spy is not in a heated competition within the etf world with blackrock, which is now three basis point in cost. cost ofn this whole session in iraq so a lot of people are moving over to ibv. they will try to peel off some of the people that don't need the oceanic liquidity of spy. 's low-volume.spy first of all, that's fascinating. secondly, what etf's and we see the strongest flows in the quarter? >> i hate to be boring, but it was ibv and those others. people are generally going with cheap beta. it is going across all asset classes. ,

julia: always a pleasure, gina martin adams.ng north korea's nuclear program, that will be at at nextof the agenda, week's united nations general assembly. more analysis. in president trump speaking now at base andrews. says north korea shows contempt for its neighbors. he says radical islamic terrorism will be eradicated. and he made comments about the london terror attack. he said london has suffered a vicious terror attack today. it comes off the back of what we heard from h.r. mcmaster, nikki haley warning the u.s. is running low on north korean options. this is bloomberg. ♪ mark: i am mark crumpton, it is time for first word news. british officials have raised the terror threat level to critical, meaning another attack is expected shortly. theresa may said she was not raising the level from severe. at least 29 people were wounded when a homemade on exploded inside the london underground. islamic state is reportedly claiming responsibility. theresa may said she was not raising the level from severe. the last time the threat

david: many thanks to gina martin adams. drew matus of metlife will stay with us.nother all-time high. we are up on the s&p 500. the dow up by 10. a record on the s&p, the dow and all-time record on the nasdaq. this is bloomberg. ♪ ♪ alix: this is bloomberg daybreak. reiner.coming up, rob this is bloomberg. alix: it was a bankruptcy that seemed to surprise wall street. toys "r" us filed yesterday and the debt reacted in kind. this is the 2018 debt maturing and it is 18 cents on the dollar. what is surprising is the speed at which the value decreased, despite everybody knew was was in trouble. joining us is bloomberg intelligence know herbert -- noel herbert and stay with us is drew matus. scott, why was the market surprised this happened? scott: i cannot speak to that. it does not seem like it should he surprising. toys "r" us has been in a difficult position for some time. it started with this store based general merchandiser extending toy selection and being aggressive on price and accelerated into internet distribution and it is difficult to run a store-based mo

tom: good visit yesterday with gina martin adams, let's look at one of her points of optimism, whichsight. the 12 monthrough moving average, gloom. we are no where near that over here. francine: this is what i wanted to look at. it goes back to what you were saying and also fold in with what we heard from janet yellen. this is simply put the forecast versus a reality when you look at the pce. the white line is what economists on the terminal predict rates to be and this is overlaid with actual core pce in blue. i will push about for regular listeners, but that's a difference between the reality and what people think will happen, tom. get to mr.'so really, he was not at the president. here is one summary of what happened yesterday. this is a write up in the "washington post." it's a blow, forced to call off cassidy, graham and ray moore who won the alabama primary last night pushing against mcconnell, if not the president. kevin cirilli distills all of this, a lousy day for republican establishment types. what does this mean for jeff flake of arizona? kevin: it could be a foreshadowin