Things for congress to tackle, why is the president kicking this to them . There was an informal deadline of september 5 where state attorneys general threatened to sue the federal government over this program. The judge restricting the sues as setting the deadline. He technically did not have to act but decided to get it over with. Julie we got a headline that sessions will announce plans to end a daca. Marty that is hardly news. Julie we have been talking about it. What kind of details sorry, kevin, what kind of details do we know additionally at this point about what sessions will say . Kevin what he will do is essentially has the buck to lawmakers and they are set to return this evening and through the day from their august recess. He will give them about six months to come up with a congressional solution to this to give them the opportunity to reinstate. Also potentially reignite some of the same political battle lines amongst republicans. House Speaker Paul Ryan has not commented on it this latest development. Wait until after the president and attorney general have made this public. This is something the president campaigned on but it is really going to stoke the flames of a very heated policy debate. Last week, i spoke with an evangelical conservative leader in the hispanic population with the cassette and feels like it will reshape republican politics i amney general sessions here to announce that the program daca effectuated under the Obama Administration is being rescinded. Was implemented in 2012 and essentially provided a legal status for recipients of a renewable twoyear term, Work Authorization and other benefits including participation in a the Social Security program to 800,000 mostly adult illegal aliens. The policy was implemented unilaterally two great controversy and legal concern. After congress rejected legislative proposals to extend similar benefits on numerous occasions to this same group of illegal aliens. Executive branch through daca deliberately sought to achieve what the legislative branch physically refused to author rise on multiplication authorized on multiple occasions for open ended circumvention of law was unconstitutional exercise of authority by the executive branch. Is the effect of his unilateral executive amnesty among other things contributed to a surge of minors act the southern burner border they yielded consequences and denied jobs to hundreds of thousands of americans by allowing those same illegal aliens to take those jobs. We inherited from our founders and have advanced and whichassed goal heritage, is the foundation of our freedom, our safety and our prosperity. As attorney general, it is my duty to ensure that the laws of the united days are enforced and that the Constitutional Order is for theno greater Good Overall Health and wellbeing of our republic and preserving and strengthening the partial rule of law. Society is where the rule of law is treasured, societies tended to flourish and succeed. Societies where the rule of law is subject to political whims and personal biases tend to become societies of lifted by corruption, poverty and human suffering. To have a lawful system was immigration that serves the national interest, we cannot admit everyone who would like to come here. It is just that simple. That wouldve the open border policy and the American People have rightly rejected that. Therefore, the nation must set and enforce a limit on how many immigrants we admit each year and that means all cannot be excepted. This does not mean they are bad people or our nation a disrespect or demeans them in any way. It means we are properly enforcing our laws as congress has passed them. It is with these principles and duties in mind and in light of eminent limitation that we reviewed the Obama Administration daca policy. Our collective wisdom is that to theicy is vulnerable constitutional challenges that the courts recognized with programto the dapa which was enjoined on a nationwide basis in a decision that was affirmed by the fifth Circuit Court of appeals. The fifth court specifically concluded that the doctor had not been implemented in a fashion that allowed a sufficient discretion and that dapa was closed by congress careful plan. In other words, the Immigration Law that Congress Passed to close at this possibility of daca. It was inconsistent with the constitutions separation of powers. That decision was affirmed by the Supreme Court on an equally divided progress. If we were to keep the executive likely, it would to be enjoined just as was daca. The department of justice has advised the president and the department of Homeland Security that the department of Homeland Security should begin an orderly, lawful wind down including the cancellation of the memo that authorized this program. Has chosenetary duke appropriately to initiate a winding down process. This will enable the department of Homeland Security to conduct an orderly change and fulfill the desire of this administration to create a time. Oh for congress to act should it so choose. We believe that this is the responsible path. Simply put him a if we were to further our goal of strengthening the constitutional and rule of law in america, the department of justice cannot defend this overreach. George Washington University law professor Jonathan Turley in testimony before the House Judiciary Committee was clear about the enormous constitutional infirmities raised by this action. In ordering this blanket exception, president obama was nullifying part of a law that he simply disagreed with. Claim asident can sweeping discretion to suspend key federal laws, the entire legislative process becomes little more than a pretense. The circumvention of the legislative process not only undermines the authority of this branch, the legislative branch, what destabilizes the system as a whole. This is not a little matter. And in the previous administrations disrespect for the legislative process is an important first step. Ending the previous fornistrations disrespect the legislative process is an important first step. Andress should carefully thoughtfully pursued the types of reform that all right for the American People. Our nation is comprised of good and decent people who want their governments leaders to fulfill the promises and advanced and immigration policy that serves the national interest. We are people of compassion and we are people of law. But theres nothing compassionate about the failure to enforce Immigration Laws, enforcing the law saves lives, protect communities and taxpayers and prevents human suffering. Failure to enforce the law in the past has put our nation at risk of crime, violence and terrorism. A passionate thing to do is to end the lawlessness and enforce our laws and if congress chooses to make changes to those laws to do so through the process put forth by our founders in a way that advances the interests of the American People. That is what the president has promised to do and has delivered to the American People. Under President Trumps leadership, this administration has made great progress in the last few months toward establishing a lawful and constitutional immigration system. This makes us safer and more secure. Further economically, the lives of millions struggling, it will enable our country to more effectively teach new immigrants about our system of government and to assimilate them to the cultural understandings that supported. The substantial progress in reducing illegal immigration at our border seen in recent months is almost entirely due to the leadership of President Trump and his inspired immigration officers. The problem is not yet solved and without more action, we could see illegality rise again rather than be eliminated. As a candidate and now an office, President Trump is offered a specific ideas and ideas that will increase wages and salaries and defend the national security, ensure the Public Safety and increase the general wellbeing of the American People. He has worked closely with many members of congress including in the introduction of the ravens ask which would break raise a ct. This is how our democratic process works. There are many powerful Interest Groups and in the country in every one of them has a constitutional right to advocate their views and represent whomever they choose. The department of justice does not represent any narrow interest or any subset of the American People. We represent all the American People and protect the integrity of our constitution, that is our charge. We at the Department Justice are proud and auditor to work to andnce proud to work events this issue and to ensure that safety and security of the American People. Thank you very much. Julie attorney general jeffrey sessions not taking any questions as he announces an end to the daca program and making a Legal Defense and sort of ethical and philosophical defense of ending it. Lets bring back in senior schenker in ay capitol hill, chief washington correspondent kevin cirilli. Marty, to start with you, he lengthyave quite a defense of this decision, putting it in congress court. Will it convince the public who seems to be in favor of the daca program . Marty it is interesting that Jeff Sessions made it himself rather than the president who was clearly not particularly comfortable with ending it but do not see any legal alternative to doing so. Sayink most legal scholars that directive from president obama would be overturned in court to down the road. That were faced with a very difficult situation, but they have completely caught it to congress. It is in congress where it should be resolved. Julie the question is, will it be resolved . How will it be resolved . Senator to a democratic from arizona and he said it was an act of cowardice by trump and although he wants to come up with an alternative said republicans have been talking about comprehensive Immigration Reform for years and nothing has been done. Kevin to piggyback off of what marty was doing, the growing trend of the president doing in terms of announcing controversial policies included the transgender ban on a military and folks serving which he did that in a tweet and now for daca, the president boarding gate to Jeff Sessions who did not take questions about a policy that would impact more than 8 the president giving it to Jeff Sessions who did not take questions about a policy that would impact more than 800,000 people. If you look here in congress at where this debate is headed over the next six months, we have not heard much about Immigration Reform with the exception of building the wall. We have not heard about comprehensive Immigration Reform that the president had campaigned on. With a doctor rescinded, he is starting the clock on six months and there is a moderate task forward and whether it Gains Traction is anybodys guess. Lindsay graham has joined the dick durbin on announcing a proposal that would really allow the dreamers to gain access as americans to become american citizens should they pass a criminal background check and should they decide to volunteer or join the military. There are some moderate conversations being had. Politicalcurrent landscape here and the climate with the democrats pouncing on this already, youre hearing from a union leader denounces this immediately and other democrats, it is anyones guess whether there is enough to find any type of common ground. Inalready a crutch period september and the calendar has gotten a little bit heavier . Debt limit ande harvey aid and tax reform they want to do and throw in some fix for the 800,000 people in the United States who consider themselves americans. Sympathy,get a lot of a vast majority of americans support of these people becoming true americans. Puts the ball over to congress and they have to put this in the mix with everything else. Julie a very busy session. Thank you to Marty Schenker and on capitol hill, kevin cirilli. Thank you. Meanwhile as we have been watching this unfold in washington, we have seen stocks lower. Over to abigail doolittle. Abigail there is a risk tone. Solid declines for the major averages. Dow, nasdaq and s p on pace for the worst day in more than two weeks, uncertainty around washington and what is happening in d. C. And increased geopolitical situations with north korea as investors step away. Higher now0 was down. A bit of a bearish day for stocks. Intraday chart of the dow, legs lower. And took a leg and took a leg lower midmorning. Some wall street strategists say a lot has to do what is s and yields. Rate the 10 year yield on the day, down eight basis points on pays for the biggest down days since june10. That tells usbonds are rallying haven bonds are rallying. Riskier assets are selling golf. Climbing anden gold. The vix at session highs of 22 . Up 22 . Investors are shaking off the complacency we saw last week. This uncertainty told by the vix. That is dropping yield is anding the dow in more impactful way than the s p and nasdaq considering these are among the worst decliners. Downan sachs and jpmorgan about 3 and 2 and yields falling they usually do not help the banks and act as a head went and they think it will eat into the lending activity. Morgan stanley ashlock trading lower and schwab trading lower. We have to we have a rerun of yesterday. Yesterday, down on the geopolitical concerns. Deb bottom yields are falling. Defensive assets once again. Widening of the valuation gap and members of the stoxx 600, 16 cheaper than in their peers in the s p 500 based on projected earnings, near the whitest discount since 2009. There. Low circle right British Services growing at the yearst pace in almost two , reducing demand. The largest part of the economy following 253. 2 , the lowest since september 2 2016. The pound, 13 drop in the us of last years brexit vote is making the currency attractive to some. Sterling set to gain as much as 5 and that will bring a closer to their value. Russell silvers, a portfolio , asset management. Julie thank you. North korea is at the latest source of tension between the u. S. And russia. The different ways trump and putin want to deal with kim jongun ons regime kim jonguns regime. Julie house Speaker Paul Ryan reacting to the Trump Administration ending daca and he said yields to find a permanent solution for juniors and they have done nothing wrong and can contribute to the u. S. He said the obama during the program was a clear abuse of authority. U. S. Nikki haley said the will seek the strongest possible sanctions against north korea and russian president Vladimir Putin said sanctions were useless and ineffective. With theer joins us latest. Could russia go as far as to use a veto to block sanctions . That would be unprecedented step despite all of the differences that have happened between russia and the United States and allies over the last few years, they have worked together on north korea and theres been a common position, russian has backed sanctions at this north korea but now, they are taking a tough line and yet president putin said very clearly that russia is opposed to any fresh measures. The norths that korean regime will continue to develop its missile and Nuclear Program whether without any new pressure. His quote washt interesting said they will need to but not abandon the program unless they feel secure. What kind of relationship does russia currently have with the young gang . Do that pyongyang . Do they have any leverage . Isry meyer the relationship relatively close but not as close as the china and north korea relationship. The North Koreans rely on foreign revenue which is they get for Migrant Workers who work in russia and north korea Migrant Workers. In a conversation with a south korean president , putin was asked to try to help cut off that source of revenue. It looks though the russians are digging in their heels. Marty trump has threatened to not to do trade with countries that do business with north korea, henry. That is china and put russian and insights. In its sights. How has russia reacted to that threat . Henry meyer some Russian Companies have gotten sanctions over their ties to north korea. I think for russia, it is a bigger issue than north korean ship. North korea. The relation with the u. S. Is so bad at the moment, if it turns a tour major confrontation, i think it was russia in a difficult situation. They will try to weigh the benefits of sticking to their view, but at the same time, what are the risks going in a confrontation with trump . Mark thank you. Moscow giving us the russian angle on the north korean debacle. Were equities are heading close to the close. Lower. Dax is higher in germany. The other three maybe european benchmark trading up. The currency today, massive week for easy the with the policy for the ecb with the policy meeting on thursday. With theave you highlight, a flight to haven assets and yields declining in the u. K. Acrosstheboard. The close is next. Close. His is the stocks finishing and european trading lower. He to ring out to be end of the day. The index was up half of a percent. Petering out to the end of the day. Dayier up for the for the and five days. The eurozone and we have pmi data on services and pmi and growth remaining solid and services in activity could actually slow and encompassing data at 57. Although the region recent services act of the weakest pace since jane where he. Sinceary cent january. Output charges at a threemonth high in august and that was a year ago data and this copper hedge funds and other large speculation increasing to the most on record, according to data going back to 2006. There it is pretty futures are surging to the highest since 2014. Traders keep attempting to short analystst stocks, an and that is copper and this is a great chart. The summit comes to a close in china. It shows of the bloomberg country risk financial score for countries. China gaming from india and the overall risk across economic and political political sectors to the performance of other developing countries and it is measured on a scale of the highest score indicating more stability and less risk. China is the white line of a yellow line is india and blue line is russia and a purple line is brazil. What a wonderful chart, julie. Julie that is interesting. What we see in the u. S. Is risk off attitude. All the major averages near their lows of the session and financial socks are the direct stocks are the draft. If you look across, you will see why the financials are down we are seeing a sharp downward move in a bond yields down nine basis points and we have a fed governor speaking and we have a lot of fed speak and concern about the rising tension with north korea. We are seeing a bid to the tenure into gold, crude oil prices catching a bit, up 3. 4 . The dollar has been bouncing between gains and losses. Right now, the dollar index is down about 0. 3 for mark started time is a charm for Schneider Electric and reaching an agreement to take over of aviva. An Entertainment Company he hung anry bird plans Entertainment Company behind angry bird plans to go public. Third time lucky, for schneider . Nothing like a potential suitor. They came twice. It remains to be seen how it goes through an interesting because they got in control of 60 of the shares but if you believe the other ceos, the deal is happening. Complicitynment untangling the business, has a lot to changed since the last 2 failures . Ruth david that they are arguing they spun off some businesses in the markets have changed over the years since they last came and made it easier for them to do it the same. Lets see an lets see whether they get the approval in place. It seems like there is appetite for the u. K. Despite what we have been seeing brexit and how that is affecting m a. Julie in this deal, couldnt there be any kind of counter bidders situation or after theres been a lot of back and forth between these 2 parties . Ruth david if theres a counter bidder giving the structure of the deal and how they plan, now is at the time for them to strike. It seems that everybody is asking the same question, do you want a counting bid when you have a persistent suitor in after so many attempts and it seems like a management is very much in line of how it will play out and what they will get in terms of benefits. Mark angry birds. In the foragers a disclosure, never played it and never seen the film but rodeo is going public rovio is going public. Does it make sense . Ruth david full disclosure, i have not played. [laughter] a few years back when it is ever going to be taken over, they talked about this valuation and as seemed like a onegame wonder which is what the markets are asking. It is interesting they were listed in the local office and not choose in london or new york maybe because of a select investors understand that because they feel like their investors understand them. Whether they can get the volume wish and and a some people say could be ambitious. Mark i sense i will see the film, theres demand in my house. Ruth david the target group. Mark yes, the target group. Mark thank you. Ruth david. Julie i have not seen it either. The Hedge Fund Business and it seems like steve wood is setting cohen is setting the stage for a comeback. Start a hedgel fund, the company he has been working to gauge interest is telling prospective clients to expect a trove of materials. We should remind you that cohen was barred until january 1, 2000 eight after pleading guilty to securities fraud. Someone foxman is joining us with more. January 1, 2018. This is a methodical, exploratory, hiring the firm to see if people are interested. Is this typical playbook . Why gold this particular route than saying, like asking people directly . This is not a typical playbook for anyone and call scrutinyohen is under and having reached a settlement that with regulators. In the since he really cannot imagine just manage outside money before next year. They had actually filed paperwork for a firm that he owned and at that point, he got a lot of flack for it included from Elizabeth Warman saying you should not warren saying you should not be doing that if you are part of the settlement until you are formally allowed to come back. The firm at that time said we will not raise any outside money and will not be see can to money until that day. Julie a little bit tricky. Even after he is permitted to manage outside of money, why . He has obviously considerable fortunes of his own to play with still. Edit benefits of his compatriots have voluntarily step to back from taking outside funds to just manage their own moneydo have any insight into his motivation . people close to him, they say he feels wrongfully targeted. Certainly there were Insider Trading violations at the firm but it was very much part of the industry a decade ago. And the regulators really came after him and he felt like he has something to prove now. He feels like he wants to come back reputational he and your your reputationally a seen the firm putting out about hiring and doing Good Business and changing the nature of the firm. There 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 first word news. Courtney donohoe has more. They such courtney Trump Administration has announced the end of daca. Attorney general Jeff Sessions a sad there will be a six was a delay in Hope Congress can come up with its own solution forge rumors. House speaker ryan said he hopes to find a permanent remedy for dreamers which he said has done nothing wrong. Hurricane norma one of the strongest ever reported in the Atlantic Ocean and could hit florida this week. Nds made it a category 5. Warnings have been issued for portions of the Leeward Islands antilles. F the growing doubt that a deal of rewriting the nafta can be reached at this year, according to officials. The latest round of talks in mexico city coming to an end without any major breakthroughs. President trump has threatened to pull the u. S. Out. In the u. K. , the Opposition Labor Party will try to fix president Prime Minister mays break the bill. The brexit bill is designed to help transfer european rules into british law. Debate begins on thursday. Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries, i am courtney donohoe. This is bloomberg. Microsoft isnt the First Company we are seeing following the Jeff Sessions announcement that the Trump Administration will end the daca program. Microsoft is the First Company we are seeing following the Jeff Sessions announcement. They said 30 niger immersed are employed they said 39 dreamers are employed and they will protect them. Plans to file a brief to see if they can intervene and we will follow Company Reaction to the decision to end daca. Tim cook, the ceo of apple, tweeted in support of daca and 250 out of employees who would fall under that designation. From apple employees who would fall under that designation. This is Bloomberg Mark brexit secretary making a statement to parliament as we speak. Parliament back in business this week after the summer recess. Interesting comments on brexit from Michel Barnier a, the negotiator from the eu, his has toldo, sabine german lawmakers and she is skeptical that talks with the u. K. Will be able to move on to trade in october, according to a couple of people present in the closeddoor briefing. A special session how the European Affairs committee of the lower house. Tell lawmakers that no movement should be made in the key areas under discussion according to those who actually attended the hearing. David davis is making his statement as said significant steps have been made on a citizen rights. The big elephant in the room, julie, the brexit to bill. Julie indeed. One of my aspirations is to be able to roll my rs as well as you. I have to practice at that. Stock of the hour. Skyworks solutions is rising almost 2 after citigroup upgraded it to a buy. The buy rating comes on a Growth Prospects set to move into 5g. Joining us is taylor riggs. This rationale for this, this next set of technology, sky works is poised to benefit for it has a lot of clients. The roads. Hinges on 5g. You have some cities testing it out for late 2018. , 5gless on your phone looking like a 2020 story. Prospectshese growth and a lot of it based on china which brings me to my next point. 93 of their sales come from china and theyre pretty tied to the iphone, 34 of sales from iphone. Last quarter, strongest gains from samsung and while way. They huawei. Up 125. Upgrade, a buy julie a much more rare one. Apple is a big chunk of cells. How does the iphone eight plays into it . But how does the iphone eight play into it . Taylor wrote from the iphone and the sales alex he 8 lot 8msung aleksei 8 galaxy launch and they hope this growth will take them forward in not. Uite tangible yet and a 2018 if they can get their hoping it will take them to the next level. Julie the shares are of a little bit. Taylor riggs, it is one of the biggest deals and the Aerospace Industry a United Technology is buying rockwell college. This combination will bring jet engines made by utx and displays. Will it put pressure on boeing and airbus . Joining us is douglas of a bloomberg intelligence. Does this deal sort of makes sense for United Technology . It seems like theres a lot of consolidation in the Aerospace Industry right now . We have seen consolidation pick up steam over the past year and the biggest one in the space recently and i think it makes a lot strategic since, creating the Worlds Largest eversupplier which is 40 billion in revenue which is tops of the ges at honeywells of the world for given of the world. Given the opportunity they see peru the question they see, and of the question mark, fully valued at the most interesting and the most interesting aspect given the high margins and cash flows. That is another question is the financial aspect. Julie and another question is focus, right . Digesting and acquisition and theres been a lot of consolidation and airbus today releasing a statement and undeveloped, not a from unveiled, not a threat but a it suppliesn engine to airbus, questioning United Technologies ability to keep its eye on the ball while it is digesting the Rockwell Collins acquisition. Do you think they will be able to successfully do that . An extremes have interest and making sure deals like this do not become a distraction to the supplier base. They came out about a week ago. They have been the most vocal so far. It is not clear if a deal could potentially be a distraction pride andh i think whitney is going to do everything in its power to get it on track. Progress has been made but a lot left to be done and you are folding in a 23 billion acquisition of Rockwell Collins and a lot of questions have yet to be answered. Mark douglas rejected the proposal back in 2016 with honeywell and concerns about the regulatory issue. Are there any regulatory concerns surrounding this potential deal . Is a different situation here at a year ago United Technologies would have been the target and now that is not the case. And the overlap is very limited with a rock a collins portfolio with the Rockwell Collins portfolio and they have competing products and you tx said there were a few hundred Million Dollars of overlap which is really a drop in the bucket for the size of these companies combined. I do not see too much going forward. Mark Douglas Rothacker of a bloomberg intelligence. Breaking news, another chief executive reacting to the daca announcement, Facebooks Mark Zuckerberg saying the decision to end daca is not a just a robot particularly cruel posting of his facebook page. Zuckerberg saying Congress Must act to pass another legislative solution that gives jurors a pathway to citizenship. This is bloomberg. Julie a is time for global battle of the charts will we take a look at some of the most talked about charts in the most telling you what they mean for investors. You could ask is on the bloomberg by running the function at the bottom of your screen. Kicking things off is joe, a global chart. Having a really strongly year after some weak months at the end of last year. What is driving it . Some renewed interest from the geopolitical, volatility picks up and people rushed to the safe haven in metal. That is not the story. Pointed out goals the drivers are essentially monetary. This white line is gold and you can see surging. The blue line is fiveyear tips, real Interest Rates ultimately are the driver of gold, i have reversed into so you can see what happened what will Interest Rates go down which is reflected in the teal line, gold goes up. Year. Oes back a it is hard to find anything about politics or north korea or anything like that except a in. Pt a feed look at the monetary conditions gr you you can see that at btv 5892. 14 day rally in yuan, theore, the record run have come to an end on a speculation that policymakers could limit excessive gains. The rally we are seeing in the last month on official support out of the key Leadership Meeting next month. The peoples bank of china strengthening less than expected, is the yuan overboard . The highest level since 2010. The start of the analysts expected the yuan to weaken to 7 to the dollar and that has virtually evaporated. 6190. Julie i usually do not have this power part i think i am going to give it to joe because i think it is an interesting relationship. I might deduct half a point for not making gold yellow, the obvious. That is ok. Thursday, do not miss the ecbs live decision. Join us here on bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Julie i am julie hyman in for vonnie quinn. Welcome to Bloomberg Markets. Julie from bloomberg world headquarters, the top headlines we are following. The clock is ticking for congress to act on daca. Jeff sessions announced the end protections for about one million undocumented immigrants. Washington also contended with the escalating threat from north korea. Russias joining china in rejecting you asked calls to ratchet of sanctions. U. S. Calls to ratchet up sanctions. Two 23 billion deal between companies is giving rise to an growth. E we are taking a look at the markets halfway through the trading day. Andail doolittle is with us looks like stocks are heading steady