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tv   Bloomberg Markets Americas  Bloomberg  September 11, 2017 2:00pm-3:30pm EDT

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"bloomberg markets." julia: we're alive over the next hour. we are assessing the damage from hurricane irma. we will go live from florida. as fate of the program known daca in the hands of congress after there is a six-month time table to amend the program. details are emerging on apple's new iphone. we will break down what to biggesthead of apple's product launch and years. the market closes in about two hours time. let us get check on the risk on rally. all three major averages of the most simultaneously rising by at least 1% of april.
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with not see many rallies like this, certainly not many that are as broad-based at this. last week, the s&p 500 was down, but only by 0.6%. the bounceback from hurricane irma was not as bad as feared. declinearger than the going into it. interesting phenomenon we are seeing. if you look at the daily change, this is the fourth time this year the index is up by at least 1%. if it holds by the closed, that is the copy yet. it could be a record lows for the index if they'll hold at these levels. this matches the number of 1% declines we have had this year. it has been relatively unusual we see a game like this. we got close a couple times, but have not reached that 1% threshold. rob-based rally. all the groups in the s&p 500
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are higher today. financials are leading by the most as we see gains and insurance talks, which fell stocks, whichance fell going into the weekend. , technology, energy, all of these groups on the rise. some of the companies that are exposed in florida and in the southeast are doing particularly well. we see the 10 year yield bouncing by eight this is what. advise low -- 8 basis points. on friday.w there are a lot of locations in florida for the banks. particularanks in are being as centered as they are in the region and are among those doing the best and today's session. to a: irma has weakened
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tropical storm iselle remains dangerous. it left a trail of discussed -- destruction. it drove a wall of water and wins that submerged miami. miami beach mayor philip levine said things could have been a lot worse. levine: power lines down, a couple of catholics. they got our pumps hold. we have minimal flooding. literally -- minimal flooding. we didn't dodge a bullet reduction cannon. julia: we have the latest on t on thempac agriculture industry. i will go see a.
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as we are hearing their clearly not as bad as we were expecting -- there, clearly not as bad as expected but people are displaced and without power. nathan: yesterday everything was flooded. areink, once again, crews trying to clean debris from the streets. the big question now is what people will get power back at how long it will take. typical we have some difficulties there. i wonder if cell phone service was disrupted. could people communicate with each other given the power was spotty? athan: i've noticed i have had trouble with my cell phone in certain areas of the city. i wouldn't say it is widespread but you will be walking down the street and not have service. everything here is not at 100% yet, so we're still waiting for power and connectivity to come
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back. julia: we are showing pictures of you are speaking at incredible levels of flooding. we saw that in the keys. concernointed out, that shifted public infrastructure and how long people are going to be without basic utilities like power. do we have any sense of how long people are going to have to survive without power? ishan: about 72% of miami without power right now. the utility companies have -- [no audio] they are activating it. they will start with things like grocery stores and gas stations that go from there. we will still have to wait and see. they have not given a timeframe yet. julia: nathan, great to chat with you. reporting from miami. florida's west coast also threatened more than $1 billion worth of crops.
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allen, great to have you on with us. i go back to the point that it was bad but it could have been far worse. some estimates suggested losses are within 10% to 20% of the crop. does that make sense to you? this is exactly the point, markets are all about expectations. the numbers coming out of florida are not. they are merely bad. sigh of relief to the markets. you see orange juice futures down today. you see cotton futures, because it was concerned about the .otton crops they went limit down, they went the exchange limit of three cents. you see a sigh of relief from this market. it was all about perspective. you're still looking at millions of people who do not have power and an estimate of $49 billion of damage. this is a big storm. miami. j cannon but there
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are a lot of people who still got hit pretty hard. while before we have a true sense of what the damage estimates are. for example, the damage estimates of hurricane harvey are starting to come out. that is about $1 billion. we will still get folks on the ground. they are assessing things right now. 10% to 20% for citrus seems reasonable. and is not the end of the world, it is merely. that is what markets are wanting to. scarlet: that is still not good. veered westward, thai baht the crops at risk in alabama, tennessee. alan: sure. the further north you get, the more you get into traditional agriculture seasons. one of the striking things about fruits is it is a winter and vegetables market. a lot of crops had not even been in the ground yet. they may be going a little late there is time for recovery. when you get further north, you're getting into traditional crops like corn and soybeans that are near harvest and those could be destroyed. for the the reason
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concern in the cotton market. you're getting into the upholstery market. you're getting into infrastructure. if somebody's chicken bar gets wiped out, that is millions of birds that cannot be on the market. could immediately affect prices in the grocery start. because it is going west and inland, the power of starts to the power of irma starts to dissipate. scarlet: agriculture policy reported from bloomberg news. thank you. insurers from europe to florida ise been rallying that irma looking less costly than originally feared. joining us is our bills -- how ard mills. damage is looking a little less pessimistic. thank you for joining us. the distinction here about florida is the home insurance market is unique. you do not have a lot of national brand in turn happening companies offe
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theser as well as servers have toei get reinsurance, as well. the hitng protection. for reinsurance. is the the good news storm is a burning the worst case in areas. i don't think the storm. .hey are very well capitalized julia: if we look at them combined, the biggest difference is the extent of flooding versus wind damage we have traditionally seen. and houston case, it was around 60% of homeowners only that had flood insurance. you could argue in this case you wouldn't get one without the other. he wouldn't get flooding damage if you didn't have the hurricane
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and wind damage that comes with it. there is an interesting point about potential litigation involved with people who don't necessarily have insurance but can perhaps argue you wouldn't get one without the other. howard: in florida, the problem with litigation is it comes o assignment of benefits. this is when the insured can allow the contractor to stand in their shoes and deal with the insurer directly. they get payment directly from the insurance company. a good sound attractive to a consumer who has just been terribly impacted, but the insurance commission says they raised interest rates for all floridians over the last several years because a lot of litigation comes about from this. i urge people to be careful before inching into an assignment of benefits arrangement. be careful to contractor you are dealing with because there has been a lot of fraud. scarlet: how messy could this
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be? how long did it take for people to get payouts? howard: i think it will be pleased. the insurance industry has made a lot of preparations for this storm. the people who enter into the assignment of benefits, that could lead to litigation that the florida department of insurance deemed to be unfortunate and is impacting homeowner rates across the state. if you're dealing directly with your insurer, the industry is very well prepared. bakery pre-positioned assets and are ready to get into the field. estimates the dangerous path, they will start paying claims. julia: we have the national flood insurance program coming to an end. we seem to go from crisis to crisis. for these guys to raise money specifically for an event, does to change?
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reservere have to be a fund in place so they don't see this reaction afterward? howard: there is a problem with a national flood insurance program. $24 billion in debt and the u.s. treasury is only able to about $4 billion. taxpayers across the u.s. are paying for this. there was a lot of hope on the part of industry that when congress three authorize the national flood insurance program they did some creative things to bring the private market back into it and assume more of the risk. it remains to be seen whether that will be able to be done. to gets an urgent need appropriation because of what we saw with texas and harvey and now florida with irma. have a to think it will big impact on the deliberation congress has about the future. scarlet: lower the private sector need to see in order to get more involved? howard: there are things that can be done much better building
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codes, updating flood maps. a big part of the problem is we are looking at old data. flood maps have not been adequately updated. they have to be updated in real-time. those types of things would increase the appetite for risk of a private market to get back into the floodgate. julia: in this case where we have a situation where only 15% of homeowners have insurance in the case of houston, the late fall that they have is they don't have it -- if they don't have insurance are fema and charities. howard: exactly. we ever love people for underinsured or have no insurance at all. publicn problem is education. they do not understand the standard homeowners policy does not cover flood parol. we need to increase education around that. mills.: howard thank for joining us. let's get your check on bloomberg's first word news. irma is weaker but it is
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still very dangerous. the hurricane has been downgraded to a tropical storm after moving past tampa with winds dipping to 70 mph. flooding is still a problem, and is excited tonsor arrive in georgia today. the full extent of the damage is not known yet. the total images was to love to less slashed $49 billion. veteran investigators determined crashed the plane before it hit its intended target. ence was at the
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capital with you heard a hijacked plane was headed there. he called those moments 16 years minutes" ofgest 12 his life. is a watered-down sanctions resolution against north korea. it is to ban oil imports to the country and freeze international assets of the government and its leader. >> the motion on the table is strong, robust, it'a significant set of sanctions and other measures. the draft was agreeing to saturday after final negotiations between the u.s. and china. the trump administration has ing of the supreme court. department filing
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follows an appeals court last week that would allow refugees a enter the united states if settlement agency agreed to take them in. the appellate ruling could take effect as tunas tomorrow and can apply to up to 24,000 refugees global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. . i'm mark crumpton. this is bloomberg. scarlet: coming up, we're counting down to apple's big event at 1:00 p.m. eastern time. rules of the state with mark gurman, who has been bringing as apple exclusives. this is bloomberg. ♪
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julia: this is this is "bloomberg markets." biggest event's in years of less than 24 hours away. he is expected to unveil three phones, including a premium model called the iphone x. it could be a reference to the model being a special 10th anniversary edition. mark joins us from san francisco. before we get the details on the phone, is it going to be a special edition, special limited edition phone or is it the start of a new fun they will continue to update? i wonder if it'll be like the s c, which hasn't seen an update. bolsterple has gone and in terms of how they are pronouncing -- announcing the x.
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i think this'll be the start of a new cycle in terms of iphones. this is what apple wants the iphone to eventually be. if they could come out with an iphone eight and eight plus at this size and technology, they would do it. it cost more money and they would not make the starting price for all iphones at the $1000 price point. i think we will eventually the price point come down and this is what all iphones look in the future. despite speculation from people on some of the apple blog websites saying apple would never do a 10th anniversary iphone because that is looking back, this will in fact be a 10th anniversary model -- in fact wallpaper the ships on the phone is going to be the same wallpaper that with the default choice on the original iphone 4 back in 2007. 2007.one for back in we have all been talking about this $1000 price tag.
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bundleight decide to services with the apple iphone in order to offset some of the price. according to their survey, that would double the amount of evil who are willing to buy the phone at $1000. whetherave any sense of they will worry about doing that, or will this be so in demand they can stick with the price and not worry? mark: i think it will be the latter. i thinkuld do that, but what apple realizes is the people who are going to buy the $1000 plus iphones are the same people will subscribe to apple music and their high-priced icloud services anyway. by bundling something for free to a demographic of people who are willing to pay for it on top of the phone anyway? $1250 price the
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point, i think this is where the higher prices will be. they released higher storage capacities. i think they will see it starting capacity at the $1000 starting price point. usually going tears from about $80 tos from about $100. scarlet: there's usually a surprise that one of these presentations. any buzz on what that might be? mark: i think we have a general sense of what the categories might be. we will have three new phones, the iphone 10, the iphone 8, the .phone eight plus plus, we will have a significant update to the apple watch. the level watch to make a replica of your phone number from your iphone and you will be able to make phone calls on the go, access data and applications, emails, tech messages on the go without having your iphone with you.
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you also have a notable updates about apple tv. they will call it the apple tv 4k. it will be able to stream four k -- 4k video quality. julia: interesting. we will come back to this. i think it is quite exciting. mark gurman a bloomberg news. do not miss bloomberg tv's special live coverage of the apple event at 1:00 p.m. eastern time. coming up, we will hear from a tech industry research insider. he joins us and the next hour to tell us what he thinks of the upcoming launches. in the meantime, amazon's takeover of whole foods competes with pride discuss -- price cuts. will the traffic last? from new york, this is bloomberg. ♪
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julia: it is time for the bloomberg business flash. specifically, brands within a motion behind him that appeal to millennial's. the market share should be over earnings per share. their hiring hundreds of workers in china to regain market schiller -- sha from alibaba. coming up, we have emr -- in the commodities close. stay with us.
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across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. headquarters in midtown manhattan, this is bloomberg markets. commodity markets are closing in new york. gold has declined.
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refrains -- north korea's nuke protest over the weekend failed to materialize. meanwhile, gasoline dipped amid as arns demand decreases irma to roll north through florida. futures, falling on speculation that the damage to u.s. crops will be less than expected. that dropped today as much is 5.8 are sent after reaching -- 5.8%. >> amazon's takeover of whole foods has brought in the crowds. the company had a 25% increase in store traffic and need first two days after the amazon deal. the grocery chain initiated
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highly publicized price cuts at the time. our reporter is here with more. the distinction is the 25% jump in foot traffic, but not in revenue. craig: people were certainly curious. maybe they wanted to see what was going on. most go to a grocery store to buy things. if they way of knowing filled up their entire basket. this shows that incredible interest in this story. >> i am one of them. to what extent has whole foods market the amazon takeover ? craig: there is a to hunt of interest in this. thursday afternoon they came out with a press release saying that we are taking over the company and we're cutting prices on about 15 items.
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it got a lot of attention. monday, now the echoes were there. monday and tuesday, we saw this 25%. julia: what about the price cuts? someone compared a basket before and after? i was saying to scarlett earlier, i- scarlet am spending the same amount of money. craig: it seems it was fairly minimal. one study said 1.9%. saying,out a release $.99 ground beef. you hope they come in and grab anything else. --this got people in store. scarlet: friends were saying that prices were cheaper, but
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they are convinced that whole foods changed suppliers. and like the avocados and bananas were smaller. craig: there's a player is still united natural foods. the price of the salad bar in new york city to go up a dollar. -- did go up a dollar. you have to consider this a marketing success. they put at release on high-profile items, but if they are able to bring prices down enough where they say i will shop there again? that lingers. julia: at some point, to what atent will this change be on long-term basis? need they were -- the to speed up the replenishment process because more people are buying things.
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craig: there was another story out from bloomberg today saying that the online sales have been bigger than anticipated. they've put their brand up on the website and that stuff is selling out. they do have to figure out how to get shelves are stocked. but there is clearly interest in this and people are checking it out. it is going to take a long time -- donehave done saying some things with the margins already. julia: how long was the survey -- >> monday and tuesday. a snapshot to show -- >> yes. craig: a long road ahead. scarlet: an early test of amazon role.ir brick and mortar let us go to mark crumpton with the first word news. u.k. is defending its response to irma after calls it has been slow getting help to british territories devastated
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by the storm. the british virgin islands antique, and the turks and caicos were clobbered by the hurricane last week. almost. has expanded to 500 troops to those islands. british response to france sent more than 1000 relief and emergency workers to its territories. hillary clinton says that getting paid peaches -- giving paid his speeches to wall street was a mistake. in her new book, she says those appearances was a contributing factor in her loss to donald trump. clinton says she should've realized she was getting her opponents ammunition. topper public and conservative doesn't claim -- blame of president trump for making a deal with democratic leaders on the debt ceiling. republican leaders did give the
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president better options. conservatives aren't happy with the agreement to extend the debt limit. with no fiscal reforms. in mexico, authorities say the massive earthquake that devastated part of the country last week's thousands of homes and hundreds of schools. aftershocks are still being felt across the region. global news 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. up, the program known as daca is now in the hands of congress. we will talk to a senator on his efforts to renew the dream act. from new york, this is bloomberg. ♪
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julia: this is bloomberg markets. scarlet: it is time now for our stocks of the hour, following the revelation that millions of customers personal information h as been shared. they are still falling today, by 7%. what is at the facts -- exposure?financial >> they haven't given us specifics. people familiar with this coverage say the company has insurance against these breaches. about $150over million in damage.
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reports, thethese eventual expense may not be known for years. it is hard to quantify. if you compare it to something like yahoo! or target, it could be many multiples of that $150 million recovery. you can see why the stock continues to fall. there is this uncertainty about the cost surrounding it. company itself is saying it does carry insurance. they have begun discussions with carriers regarding the incident. they do know our business and property interruptions may not be adequate to compensate us. there are these questions. anythingve they said about how they are handling it? specificaven't been about where the policies are and who was covering.
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they have this website that already existed that they updated where you can enter your information and see if you've been affected. that came under fire because your was sort of a boilerplate check you had to make, saying it you could not sue them. meantmpany said it wasn't to be related to this latest act. there was a lot of confusion on the part of consumers. if i am checking my information, does that mean i will be able to sue the company? the company said that wasn't the case. when you get the response message on the website, it's as you may have been affected. of a feeling of helplessness on the part of consumers. the handling was called careless, that the company made a number of missteps. equifax is under criticism. compasspoint is facing hearings
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in both chambers of congress. as well. there is a a lot of scrutiny right now. scarlet: dick durbin, the senator from illinois, making panyents that said the com is an example of why regulation is needed. it is not as if we can fire the company if we have been affected. we can't do anything about it if we have -- if they have our information. >> they are one of three creditors. that is one of the reason why analysts haven't got much more negative. bloomberg analysts ratings on the stock, there are no sell ratings. analysts are saying if there is a risk, it is a short-term. we've learned from these breaches in the past, but it is not necessarily a long-term affect. julia: great to get your insights.
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durbin, he isck said to be pushing congress to act on daca. lawmakers can't abandon the dreamers. he joins us from our washington bureau. great to have you on the show, senator. said in ann interview over the weekend that legalizing daca could cost the republicans the house in the midterms. is he being hysterical? when 76% of the american people agree with me and of those republican leaders who see the world differently than bannon, these dreamers is of a fighting chance. -- deserve a fighting chance. 58% of republicans support the dream act. that is why we have a good chance for the first time in 15 years to make it to the law. scarlet: what specifically do
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you see or hear from republicans and democrats that given that confidence congress will be able to pass this act? dick: following. if there was a compelling argument for immigration reform, it is a young person brought to the united states under the age of 16 that had nothing to do with the family decision to come here, grow up in the u.s., went through school, wanted to be part of our future, go through a criminal background check and pay a fee, go to work and pay taxes. that is a good argument for giving these young people a chance. when the president rescinded daca last week, it really put the burden on them. many republicans are saying, we will join you. i think steve bannon is wrong. julia: so the democrats won't have to giveaway items to get the publicans on board? -- the republicans on board?
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let theam going to republican members come forward with proposals. there are certain things not on the table. a 2200 mile wall on the mexican border is not. in the dreamers in the united states and deporting their parents is not on the table. there are things they want to talk about. you cosponsored a dream act bill to give a dreamers permanent legal status. i know you said president trump needs to help you. he tweeted about it. this was in response to nancy pelosi asking him. have you grade the president's effort so far? statementsde several through tweets and to the leaders who gathered in the white house that were supportive of finding a replacement for
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daca. i was puzzled by where the president stands, i'm going to grab the opportunity of saying he wants to help us get this done. i want to work with him if he does. own, thatream of my we will see a bipartisan group standing in the white house when the president signs into law a real acts to solve this problem. -- act to solve this problem. julia: we had bipartisan moments after this dr. decision on the decisional -- -daca on the fiscal deal. do you think that president trump will be a more independent candidate, and date republican in name only? an opportunity for congress, for the first time or second time this year, to do something of substance, good for this country. the fact that we're in agreement between democratic leaders and
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date republican president, avoiding a government shutdown or shut down over the debt ceiling, is positive. let us build on it. let us go forward. let us do with tax reform in a way that doesn't reward the rich but helps working families. that weake sure extended the debt ceiling and there is not uncertainty. if we do that on a bipartisan basis, there will be good outcomes. scarlet: hillary clinton's book, happened?"ly, "what julia: summon democratic circles are sayings -- some in democratic are saying this is a blame game. do think she is being selfish here? dick: i don't. she is telling her side of the
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story. in a very small aspect of her campaign in the midwest. she lost the states in which i was involved. people think she could've done more there. she's entitled to tell her side of the story. i respect her. fact she said she is never going to be a candidate again. this 60 to close this chapter in american history. scarlet: one reviewer had said the message she was sending is that, do not give bernie sanders is -- because he is not really a democrat, he is an independent. what is the leadership's goal for the party? dick: i think the goal in thatal is to make sure working families across the
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united states know we are on their side. we want to make sure they have a fighting chance, with decent wages, health care when they needed, with an opportunity to make sure their kids and go to realize the american dream. to go to college without debt. whichare the fundamentals working families and about every day. we are on their side. we want to make sure your prescription drugs are affordable. basics that people view as part of the quality of life in this country. scarlet: senator dick durbin. thank you. examine why the advertising industry hasn't made it strides since the days of "mad men." next. from new york, this is bloomberg. ♪
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julia: this is bloomberg markets. when it comes to women in
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advertising, it is all very much a "mad men" kind of world. bloomberg's ongoing conversations about diversity in the workforce, we set down with carter murray. he is the ceo of one of the world's largest global average -- advertising agencies. thing --he fundamental i think i work hard, the whole team does, to make sure we have diversity. >> your global creative director. carter: i worked for the new york times and time warner. worked for the new york times and time warner. i have another partner that was the only female of a top 10 network.
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47 out of the hundred executives there were women. you've got to walk the walk in terms of diversity. if it is all men, you have to change that. else will't, nothing justify your lack of diversity. thatterferes -- it appears 46% of people in advertising are women. pretty close to parity. 11.5% have reached the level of creative director. how do you foster that? 50-50. disparity., masswivive we have to fix that. -- myative and partner creative partner and i argue
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about that. she says, i am a woman. we need to celebrate them. not only talk about the problem. one way of addressing it is to solve the structural problems. i also think we have to celebrate the brilliant women who have achieved, to inspire other woman to move up -- othe r women to move up. >> what clients been saying to you about moves like this? and i'm wondering about what you are doing in terms of influencing or courting a more diverse marketplace? carter: we have made more progress than many had agencies. beenost powerful cnos have women. some clients are demanding when
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they work with an agency to know, what are the diversity models? they want to know people working on their business have a diverse background. onthe crackdown in u.k. sexist advertising hasn't happened here. what you think the cause of that is? the u.s. will see more debate on what is responsible advertising, how do you make sure people are doing purposeful advertising. i am proud about the fact we do strong work in the states and the u.k. >> as you were saying, clients now have women moving into the c-suite. and they are demanding things to be more diverse and less stereotypical. carter: when you talk about legal restrictions, we're in an era of social media. inappropriate,is
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there is a bigger voice for the consumer to say it is. was carter murray. coming up, anticipation growing for apple' s most important product launch in years. take a look at the u.s. based iphone suppliers. iny are all higher anticipation of this big a product avenge tomorrow. from new york, this is bloomberg. ♪
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>> it is 2 p.m. in new york. 12:00 p.m. in san francisco. 8 p.m. in london. scarlet: welcome to bloomberg markets.
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♪ live in new york over the next hour. here are the top stories we are covering. risingets, stocks are toward a record this monday. confidence returning, with treasuries selling off. the s&p closing at another all-time high. leaving a trail of destruction across south florida. irma is causing high water and wind. officials begin to expect the damage in miami. -- inspect the damage in miami. rebound ofcting a the iphone with facial recognition. all the tyhype. let us get a check on markets with julie hyman. julie: gains of more than 1% that surpassed what we saw last
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week heading into earth in irma and the weekend. irma's damage was not as bad as forecasted. saying that instead of the initial estimate of $200 billion, we are now talking more like $49 billion. that is not what was being priced into markets last week. the major averages up by 1% for the first time since april. we will see if we can get that record close. isk-off index looks at weoad basket of access -- see it declining still. -- we see a little bit of a bounce still. looking at the components of this index, you can look at u.s. dollars.
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it has been on the downtrend, but it is bouncing today. the 10 year note has been bouncing as well, in terms of the yield. it is up by eight basis points. gold is down after catching a bid last week on concern over the hurricane. and crude oil is bouncing. we are seeing the perception that perhaps the demand destruction will not be as bad as feared. we are seeing oil bounce a little bit. gasoline is down. we're watching the insurance industry. what kind of losses are they going to incur? there was an estimate out today that it might be only 1%-2%. we're seeing some bounce today there. effects,ricane ripple
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delta and carnival are bouncing. obvious implications here. especially if you are not seeing as much travel interruption or laid the travel interruption -- or lengthy travel interruption. earlier, it was lower. there was perhaps some concern that cars would be destroyed. that is not necessarily happening. home depot, the perception was, people need to rebuild after the hurricane. case, ato longer the least not to the same extent. julia: the white house press briefing is underway. homeland security adviser is making an appearance. you can see him discussing what the government is doing to assess damage and how the recovery after hurricane irma is
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going. we will bring you any key headlines. if you want to listen in, watch it on your bloomberg at tv . he says this administration will fund the agencies as needed to address the storms. he also said they are going to ask congress for more money. they don't know how much it is going to be at this stage. scarlet: they're working on that now. irma continues its advance north, leaving behind a trail of destruction. millions are without power. the hurricane has been downgraded to a tropical storm, but there are still powerful wind gusts. we have the miami bureau chief joining us now. i want to get a sense from you how much business has come back. is it still very much a situation where people are recovering and of trying to
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assess the damage? i hear airports are still closed. >> correct. as you walk and drive around the city, a lot of the major american businesses are closed. assess theto situation. ormal economy is bouncing back. i spoke to a gentleman who owned a cigar store, for generations. i asked him, why did you open today? he said, it is monday. ocho, that cultural center of the cuban-american community. they have lots of restaurants. people without air-conditioning are either -- eager to get outside. julia: an incredible show of
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resilience. we were showing pictures of downtown miami and the extent of flooding there. point thating the this could've been worse. but for the people, has it been destabilizing? were talking about more than 4 million people without power. our people feeling relieved this wasn't worse? or is it still tough? >> you are right on both points. this was a storm projected to be catastrophic. come throughms and people took this one seriously. nevertheless, you're talking about millions of people without power, who sadly can't get back treesir homes because are covering the roads.
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it is going to destabilize the city, fort bliss the rest of this week -- for at least the rest of this week. scarlet: there is also a 7 p.m. curfew still in effect. we were listening to the home and land -- to the homeland security advisor speak. he said price gouging won't be tolerated. either any stories about right now? thate there any stories of right now? >> i don't know that we personally have been able to confirm them. price gouging is not legal in this part of the country. folks shouldn't be doing this. event, the run-up to the we saw prices skyrocket. there was ausly,
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debate after the houston event about price gouging. do you have any sense of how quickly those of staying in shelters will be able to return to their homes? any sense of when it certain regions will get power back? electricity companies are working 24/7 to reestablish lines, i am sure. >> i don't have a firm estimate. what i can tell you is that we still see down power lines in parts of the cities. challenge.hysical it is also a danger to the public. that is why you do see the curfew and see officials encouraging folks to not try and move back to their homes. julia: great to get an update. thank you so much. live from florida.
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let us cap -- let us check on some of the other headlines, with mark crumpton. mark: president trump says that the september 11 2001 terrorist attacks were a wake-up call for the united states. he spoke at a memorial service at the pentagon. >> not only did the world change, but we all changed. opened to the depths of the evil we faced. today marks the 60th anniversary of the attacks. the british prime minister's government appears close to victory on a brexit bill. it may rally enough lawmakers on a bill that will let the government copy new laws onto the domestic statute law. the challenge will be whether they can keep the draft law from
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being amended at the committee stage it enters next week. egypt, 15 police officers are dead and seven are wounded after a police convoy in the sinai peninsula was ambushed. islamic state has claimed responsibility. it was the deadliest attack in the northern sinai in months. global news 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. cooket: coming up, tim takes the stage at apple's new campus for the biggest event in years. what to expect ahead of the anniversary. from new york, this is bloomberg. ♪
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scarlet: this is bloomberg markets. tomorrow, apple holds its biggest product launch in years. it includes taking the stage at the company's new headquarters. since then a decade company released its iphone. what can we expect from the newest model? joining us is the executive vice president at idc research. never launched three new iphones at the exact same time. what can you expect there to be, xpect that will be a premium device? >> we have never seen this kind of a mix before. denser, more vivid screen device will only be on the high
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dollar iphone x. the two higher volume iphone eight models will likely have an lcd screen. we wouldn't expect those to be -- those would be some of the more high-volume products. outside of the screen, which probably comes from samsung, we don't expect there to be large supply constraints. buyer anduch a huge they have been buying so we don't expect that to be a big constraint. it feels like for weeks now in terms of the new screen, it sets up the fact that the home screen button will disappear. is there going to be a bit of an anticlimax? did they needed to come out with something in addition to everything we have talked about?
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>> the world is looking to that. tomorrow, we believe an announcement across multiple spheres. new phones, a new watch, apple and a slight kicker of the pods. could there be a few throw ends? -- throw-ins? probably features people don't know about. the anticipation of a new product that is ended to end screen coverage -- end-to-end screen coverage. you can log into it by looking with an infrared camera in
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the dark. it provides a significant increase in camera quality and every life and process or performance. finally, a new body construction. keep in mind we have had the since 2014.design if we get that new design, people will be pretty excited. i don't think it will be that much of a letdown. julia: the front and back cameras. the front, for selfies. mentedck camera, for aug reality applications. do think this phone is preparing for a virtual reality kind of future? is this a leap forward for apple? >> it is. there has been a lot of talk about an-emojis. using the sophisticated from
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camera to be able to take a selfie that would allow you to make a facial expression and how that expression show up on an character.oji or these kinds of things get people excited. the leap apple ahead. -- they leap apple ahead. 3-dphone will likely have a camera that will amplify the augmented reality technology. features willse move apple forward, and that by 2020, two thirds of the top 100 apps in google and apple stores will leverage augmented or virtual reality in some way. our expectation is that we are at the beginning of this augmented reality. apple is a little bit late, but they have been sowing the seeds. tomorrow, they kind of dropped
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the microphone on it's time. julia: i was very excited about i watch. scarlet: bloomberg has been reporting that the apple watch will have its own cellular connection. will a standalone apple watch dent demand for the new iphone? >> i don't think so. what apple is going to be doing is putting lte connectivity into the apple watch. the adoption of that product is going to come down to battery life. modem in there, spending a fair amount of money on a watch that you have to charge very frequently, at least overnight, is not going to be as exciting -- maybe that is one area where people could be let down. even if it goes two days, that
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is a lot. when you open up by having direct connectivity to the internet without a phone, that peoplep new cases to that would have been buyers for the phone. don't think it makes much of a dent now. over time, there will be people who start using these products as substitutes for phones. maybe not for a couple years. julia: great to get your insight. it is now time for the bloomberg business flash. look at some of the biggest business stories in the news. gamble should incorporate brands with a motion behind them. the billionaire investor sentiment market share -- says market share should be the company's priority. providingchs has been
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$300 million of homeowner loans. largestic is the homeowner lender in the u.s. the world's largest drugmaker is named -- has named the new ceo. the company is trying to revive sales and reduce debt. the ceo spoke to bloomberg about the transition. >> i am the kind of person who likes challenges. i have always been inspired by challenges. challenging, i normally thrive. julia: there has been pressure from investors to split teva into two businesses. that is your business flash update. still ahead, much more on apple. it is banking on its new iphone.
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but is it time to back on apple as a trade? this is bloomberg. ♪
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scarlet: it is time for options insight with julie hyman. julie: joining me is kevin kelly. when i look at the market action, it is interesting. week, andll 600% last stocks have come roaring back today. relieved overat the lack of damage and a hurricane? kevin: they just didn't want to put risk on. talkingpeople last week about how the fed is going to look at the impact of the storms, you had kaplan do that earlier. -- had people talking about
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you had people talking about how they don't even think they should raise at the rates. yellen talked about how we are not going to get rates around 4%. other governors are talking about how they think the storms could impact their decisions for december. meanwhile, inflation is coming out later this week. that has led to an identity crisis. the fed is trying to figure out how they are going to be judging inflation going forward. that is impacting the treasury market. especially where yields are. julie: volatility on the treasury market is higher than the stock market. is that going to remain if this outlook for rates becomes benign? kevin: when you look at the markets, especially in treasuries.
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you take a look at what is happening in tlt. you saw a bunch of people going today and you are seeing more trading on the call side than the put side. more calls are being traded on tlt than puts. you have implied volatility in tlt than stocks. than stocks.tlt julie: that has been happening pretty consistently since the election. kevin: gold is up. stocks are up for the year jury of -- for the year. bonds. you can't go wrong. but at some point, it is going to have to change. trade for the day is on apple. it has a big event tomorrow. it sounds like you think apple can go higher. google can do a word --
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you can do a risk reversal. thoseoot, and use proceeds to reduce the cost basis for your call going forward. buying of the $165 call is going to -- is going to cost you a -- one dollar 10 -- $1.10. the watch has a done well, but services are doing well. julie: kevin kelly, thank you. u.n. isoming up, the weighing on north korea. we will discuss. ♪
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