Most in a closing basis rates the s p 500 and its at a record. You will see if it remains. It is a broadbased rally. Look at the bloomberg. We have all the groups here. Financials are getting the most, along with technology, materials, and energies doctrine of the groups in the s p 500 are higher here. Financials and technology are bouncing back as we see gains in yields. In particular, because losses associated with the storm will not be as steep as has been predicted. You have insurers all higher. T says it sees losses that is net. The company says it has a strong surplus level and a Strong Capital position here. We gote of the estimates those downgraded. Overall, the losses e stimated 49 billion instead of 200 billion is estimated previously. Friday heading into the storm, we were already seeing the prices of these cap bonds drop. Cat bonds drop. Using the prices go higher. Update on today, there is a day lag. But this shows you the trends. What is i mentioned going on in the bond market today. We had seen the 10year yield touch its lowest level going back to november. Essentially reaching 2 . It cannot do that. Bounced off the levels and has rebounded. That is one thing helping treasury. We seem Risk Appetite come back into the markets after last week. Mostly risk aversion. Vonnie thank you for that. Thank you our top story. Millions in florida without power in the wake of hurricane akened toch has now wekan a Tropical Storm. The cost of total damages has dropped to about 49 billion, according to one estimate. Aoomberg reporter is bloomberg reporter is on the ground in miami. What can you tell us about what conditions are like today . We welcome in the financial district of miami. We got a lot of flooding yesterday. It was about me high. The water had gone away. There was a lot of debris in the fallen. Nd lots of trees the sidewalks recovered were covered. Vonnie at what point where workers allowed back into the city and people back into their homes so the Business District could get up and running again . Theyre working on it. About 72 of miami is without power. They are starting to get power back. Power to the hospital first and s andresidence businesses. The miami beach mayor is telling people to wait until tomorrow to come back. We are seeing the early recovery efforts. Vonnie at what point do you think the state will see power restored in its full capacity . Nathan theres a press conference earlier and they maintained they had a detailed plan. They brought and a lot of additional workers to try to hit things up as fast as possible. He said after they have the ofessary infrastructure necessary things like hospitals, they will work in zones i have the biggest Population Centers and then go out. This update will do it as soon as possible. Vonnie nathan crooks. We will check back in with you later. We thank you for that. Let us move to the cost of total damage. It is lower, but Hurricane Irma may still go down in history as one of the worst storms in the states history, at least. Michael mckee, were going to d damage, but there is uninsured damage. L that these people are either going to get a from the federal government, in the form of loans and they will have to pay them back eventually, or they just wont rebuild. That is a tragedy and a problem or the entire state economy. A problem for the entire state economy. Were looking at maybe 50 billion total, and that is far less than people thought. You go right into the bloomberg and you see its. While we are still gathering information and you see it. Well were still gathering information, the insurers of the people will really pick up the tab and you can see how they have just come crashing down today as investors searching price out the idea of a major, major problem. When thehere do we do Federal Reserve is considering an increase . Maybe it is too early to do that, but the fed will be quality prices are higher. Michael it is early but it is not because people do not think they would do anything until december. If you work pricing any fed move youseptember or october, wouldnt now because the data are going to be confused for some time. Anges inseen major ch jobless claims. Get higher gasoline prices and retail sales will be screwed up. In december, most of that should be out of the data and the fed should have a clear picture of where we are. They will probably go ahead and move. Inflation wife, will we wise, will he be confined to the state of florida . Bear with me. I am making an argument. When you jump into the bloomberg, you see the start the chart. This is countrywide. Become tooat would wide, and we saw prices move up in the futures markets ahead of the possibility of serious irma. From what youre looking at there is both orange juice and cotton. It hasnt gotten into it is just getting into the cotton producing areas of southwest georgia. That could be a problem, but most analysts do not think this will be a major issue. That went upstorm the center of florida, which is the number two agriculture stay in the country, you could have seen serious food price effects. Especially if it curved into north carolina. You would have seen higher food prices, and that would have been something the fed would take into account. Now, it doesnt look as bad. Plus, the gasoline impact from Hurricane Harvey is starting to fade as we see the refineries come back online. See a little spike in inflation but they will look past that and look at the underlying numbers to get movement. Interesting about the decision to increase. Want to ask you about gdp overall. Things going to be impacted like individual retail numbers. If you are paying a high premium your insurance that you didnt get insurance, you have a massive bill to pay for fixing your house. To work itselfds out over time. What you see from natural disasters is betting decisions move around in time but they do not go away. People bought a lot of stuff before the hurricane. His stock up on bread and 12 paper. They buy generators. You see all that affect in the retail sales that come out for september. There will be a little boost but they dont buy that stuff is much in october. We might be a little slump. Those are the things you will have to watch out for. Longerterm, you are talking about roads being repaired, homes being built. Construction spending will go up. That tends to be offset by the destruction. You end up about flat. There were forecasts we would see because of the backtoback hurricanes. Quarterarter and fourth gdp shaved a little bit. Because this wasnt as bad as they thought, that may not happen. Vonnie thanks to michael mckee, Bloomberg International economic politics for respondent. Let us check in on the bloomberg first word news. Heres mark crumpton. Irma is weaker but it is still dangerous. The hurricane was downgraded to a Tropical Storm today after moving past tampa with wins giving to about 70 miles per hour. Problem in still a much of florida, and the storm center is expected to arrive in georgia later today. The extent of the damage isnt known yet. There is a flash in estimates of total damages from 200 billion to less than a quarter of that. President trump the 9 11 attacks were the moment the u. S. Awakens evil itepths of the faces. He spoke at a Memorial Service at the pentagon on this 16th anniversary of the attack. The president of the u. S. Is making it clear to what he thatd the savage killers they cannot escape. Brexit bill in parliament. Onto a copy eu laws statute book. That shechallenge is can keep the draft law from being amended at the socalled committee think it enters next. And mexico, Authorities Say that the whole from last weeks earthquake is at least 90. It destroyed or damaged thousands of of schools in the southern part of the country. Global news 24 hours a day. Powered by more than 2,700 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Vonnie thank you. Coming up, global equities. My investors are buying of risk assets after two. Offensive not materialize. This is bloomberg. Bloombergs is markets. With offices in the defenseman today. S p 500 is coming to an alltime high while gold is retreating. Investors are getting let us just start. Cameronameron have with us. We were talking about Hurricane Irma, which turned out to be lighter than expected. Equities are higher in what exactly is the market trading on today . Cameron it is not the end of the world as we know it, and everyone feels fine. The damage estimates for irma have dramatically, which implies less have slashed dramatically. The proposed sanctions have been watered it down a little bit. This maybe reduces an impact of a further standoff. I guess roughly speaking, last thursday, it felt like the market with price at the absolute worse outcome for everything. The worst outcome hasnt materialized. It is very unvolatile puzzles of the late massive volatility. Is a naturaly outcome when you have low volatility. People recalibrate their expectations. Unless those expectations are until or unless the reason for a spike is justified, it becomes easy to slap everything back in go to the situation wrong. About all caps been 1300 of september. Should that indicate anything to us . This is kind of a line and the fans. It isn technically broken out. If you are a momentum our trend follower, even knowing nothing about the rest of the world, you could be living in a box you press a button and the machines of bias so you will buy because of the virtue of the price being higher. Machines say buy, so you will thebecause of the virtue of price being higher. Clearly, there has been reasons for markets to be a little worried. Goal benefited from that. Between the low Interest Rate and uncertainty in the price momentum, gold is winning at the moment. Vonnie i want to ask you about crude. Piercing price differential and i wonder if that has relationship to what is going on in the market. I want to ask you about this 4294. Market pricing for december 2018. This is insane. And chris rate increases. Cameron Interest Rate increases. And at we were pricing little more than half of a rate increase through the end of next year, when the dot plot suggests that they will do for. Do four. I think the market reacts to the screens. Screens and the images of the destruction wrought by the hurricane. It is a fundamental aspect of human nature when you say a start, visual image. You tend to overreact and project and much worse outcome and is necessarily the case. Vonnie that is not what is threemonthh the bill. Cameron you are now introducing the debt ceiling issue as well. Vonnie cameron, thank you. Ahead, why have there been few large tech deals this year . Rick kleiman joins us next. This is bloomberg. Blie this is Bloomberg Markets. We have more with rick kleiman. Alex as you mentioned, few tech deals being done this year. That is just one tech deal of done all 5 billion year. Rickng me now is amende kleiman. Why do you think this has happened . \ why have we seen so few mecca tech deals mega tech deals . Rick this is surprising because over the past two years, please also many. The fundamentals are aligned for a bigticket because the equity markets are robust, inflation is in check. The debt markets are very economy very accommodating and there is a lot of low interest credit available. Csuite confidence seems high. It is a good question. I think what they we do remember twoe are coming off blockbuster years and theres bound to be a falloff. 2015 at 2016 or monster years protected perhaps even operational of years with the benefit of hindsight. One thing that is clearly happening is certain subsectors haven technology and i a semiconductor in mind in particular, the chip sector have gotten very consolidated because of activity over the past several years. That that sector like is seen so much consolidation already raise antitrust scrutiny. You might not see and expect to see giant deals there. The on that, i think you have that are taking some time to digest the large acquisitions they have made already. We willdont think necessarily see huge deals in the remainder of the year, you w ill see deals over the 5 billion that we have only had one deal over 5 billion in the tech sector all year. I think that mark will easily be eclipsed. Show theve a chart to semiconductor industry. Metro so much over the last couple of years that showed much. Over 14eals even billion. That is the cutoff we use. Edition ofs to the the public deals with seen, is there something going on in the private market . We havent seen a lot of tech ipos recently. If their dislocation between public and private valuations that may be playing into why we havent seen a lot of tech . Rick theres no question about the fact that we have very the facthing that robust, surging equity markets drive valuations. Potential category of buyers Tech Companies that women out there 10 years ago for the nontechnical ease that realize they have to turn to Technology Companies in order to achieve the growth they expect to receive. Tend to be the most shop. Shock. Valuations are perceived to be high. Fact that private. Privates are better equity buyers may be inclined to prepublic private companies that they have a look at in the past because of their growth prospects. Alex we are seeing some Tech Companies mvoe away from technology with her acquisitions. Move away from technology with their acquisitions. Rick we can remember when the tech sector was more organized. Hardwareware Companies Companies that offer companies. Or companies, etc. Now it is a freeforall. Alex thank you for joining us. Vonnie fantastic stuff. Alex sherman. Get anup, we will irmang update and update. Beautiful out there, a little bit hazy in midtown manhattan. Not so hazy in florida. Life from bloomberg world live from bloomberg world headquarters, i am vonnie quinn. The dow is up 1. 1 . 22,043. Up one fullis percentage point. Here is mark crumpton. Rma is weaker vessel dangerous and headed for georgia. Unless destruction over south florida, flooding miamis financial district. Still, the miami beach mayor said things that have been a lot worse. We saw a lot of trees down, power lines down. We have a couple of gas leaks. We didnt see any major physical damage. Thank god our health. We have minimum flooding. There was no flooding out on some areas. Miami and miami beach, we didnt talk to bullet, we touched a cannon. Were very happy about that. Mark the full extent of the damage from is not know, but research its estimate for total billion. O about 50 Hillary Clinton so she is finished with being a candidate. The former nominee says she isnt on the politics because our countrys future is at stake. She spoke to cbs about the release of her book about the campaign. She also says giving could be just wall street was a mistake. At least 15 Police Officers are dead and several others wounded after a condo in after a convoy was ambushed. Islamic state explained claimed responsibility. It was the deadliest attack there in months. Saudi arabia says it is open to extending opecs deal again. Counterpartsh his to keep all options open. The opec cut back expires in march. Oil producers are trying to firm inventories and stabilize prices. Global news 24 hours a day. Powered by more than 2,700 journalists and analysts in more than 120 countries. Mpton. Rk cru this is bloomberg. Vonnie thank you. We continue our ongoing coverage of irma. Take a look at the bloomberg. Forecastee the storms forecast before breaking up on wednesday and western tennessee. This is the projected impact from jose, which is anticipated to be a category 1 for the time being. Is ang us on the phone congressman in florida. Thank you for joining us. Talk to us about where things stand in the state right now. Wasserman schultz the preliminary reports are that, particularly in miamidade county, we have had significant impact, we have had major flooding along the coastline. I have three cities on the coast and closed toble residents reentering well they deal with the aftermath and getting cleaned up and making sure there is no danger. We have numerous downed power lines. We have roof damage, trees down blocking roads and about 640,000 people without power. Issues boiler water issues. The main drag along the because the beach has sand along it. I agree with mayor levy and miami beach. We could have had it much worse. Vonnie we have significant impact. It sounds like the utilities are trying to get power restored. It is vastly fewer than those who had no power a few hours ago. How did the process to fix all of us get started and what can people move in with quinn and start fixing all of this . Rep. Wasserman schultz they are a tempting to bring a claim it down now. One of the most significant colleagueshave my are very concerned that there have only been nine counties designated by fema for assistance,isaster which means individuals who have damage to their homes, until that Emergency Declaration is they will not be able to get that assistance. We sent a letter and issued a press release. We will be speaking with fema leadership to urge them to recognize that broward county, Palm Beach County st. Lucie, martin county, south florida counties have to have that individual assistance emergency funding turned on so that we can take care of our residents. Is this just a technicality or does this need to be discussed, debated, and prodded into it action . Rep. Wasserman Schultz Family designated nine counties from what i understand based on the path of the storm. Yet, our county were directly in the path of the storm for quite a bit of time. It is old baffling to understand why that why we werent included in the assistance. Have significant damage. Note they will do as they can turn on and were urging them to. It will require a bit of a push. Processties are in the of getting their damage assessments done as quickly as possible so they can demonstrate the assistance turned on as quickly as possible. Least what Small Business that leads to Small Business assistance getting turned on. D. C. Has slowed down on account of the whole mess. How quickly do you anticipate to offerwill move Emergency Assistance . Rep. Wasserman schultz i know our congressional delegation will have a bipartisan, fullcourt press to draw an emergency supplemental funding bill. We will be working together with the rest of the delegation to push to get an emergency supplemental passed as quickly as possible. Vonnie do you think is will be irma . In the case of it was a little surprising when it came to harvey. It wasnt exactly a clean debates. I wouldserman schultz consider it clean. I guess it depends on your definition of clean. Making sure we cannot shut the government down and raise the debt ceiling. Iat was pretty critical and thought it was appropriate to combine that funding. We will make sure we can be aware of what the needs are here so we can go back to d. C. And goes about to get whatever we need to get people back on their feet. Vonnie thinking for joining us today. Coming up, were counting down to apples the product launched tomorrow. What customers are expecting next three and this is bloomberg. Vonnie im vonnie quinn. Claiming hires are shares of apple. This is the day before the companys annual product launch. Joining us is abigail doolittle. Triosfor the new iphone are high. Yes. Il we take a look at this five day chart and we see over the last four days prior to today, it is down about 3 . That shows that there beneath fears and there could be a delay. Weekend we had a leap over the weekend we had a lead that something could come out. Were talking about who will pay 1000 for a new phone. Some like you will, sounds like i will not be. I admire it. If we look at the bloomberg, to whatpop is similar happens over a number of years. The green arrows are from september to the end of the year where we see a nice rally for shares. The orange boxes show we have 2008 a big decline of. 2012 is what i want to point out and that was around disappointment around the iphone 5. That was a highly hyped model that was a dud at the end of the day. Vonnie what part does this need to cross for it not to be a disappointment . Abigail i would say a pretty high bar. Of the will be the form phone with the edges and the led. Bloombergchart the for the income statement for apple. When i would like to point out is the pressure around the iphone. For is the revenue line 2017. We see 228 billion. Are all the same. They have no room to play for it. We see huge growth on the bottom line. 20 growth from nine dollars this year into roughly 11 for 2018. If this phone is a duck, it can dud,y take a toll is a it could take a toll for apple. Lets hope there are a lot of people like you who will pay 1000 or more. I dont want to. I would be willing to. Thank you for the mover of the hour. The tech giant is expected to unveil three phones, an including a premium model. X, which may be a reference to the 10 year anniversary. Joining us now discuss from san. Rancisco buying aoint, you are computer. Will people really care about the 1000 plus price tag . A defense. If we look at markets in the u. S. With the phone is subsidized, it may do well. If you look internationally more people will pay the cash up front, we will see how the phone does. This works well for an initial demand, so i think an initial demand will be strong but how long will that last . It will depend on the International Market where people have to bring up the cash up front. Vonnie why charge so much . Was the margins declined, theres only one way to go after that. They keep going down. They are going to try to protect the margins. Even at 1000 price point, they hit. Be taking a margin theyre trying to protect margins as much as possible. Vonnie remember one of the early iterations of the iphone igh. Priced a little too h very quickly, apple came out and gave 100 off the price. Are we risking another episode like that . Abhey funny you bring it up. Those a discussion we have this morning with some people. Absolutely. I think that is a possibility and do i think that will happen . I am not fully sure. There are a couple think apple can do. They have a strong brand name and rolling in they could a name and following. They can maintain the price point at the very high end of the market where people are willing to pay. Next year, they could come down and pricing. They may have more devices that are more in the mainstream price level. By that time, the component prices would have moved on as well. That is a possibility. I am not sure it will cut prices. Possibility. They did it in the past but they did not have a strong following. Vonnie now you can pay in installments through the carrier. Will that be available with this phone as with others . Abhey absolutely. I think that is why the u. S. And some of the markets for the phone is subsidized, having the higher price can do fine. I think it is the markets were people where the phone is not subsidize some of those in the markets we need to think about. I think that is where demand can follow quickly. Vonnie let us start of the elements. There wont be any home button. Of course, all of this could change tomorrow but this is what were anticipating. The facial Recognition Software with these new emoticons that are going to mimic your face, is that going to work on the type of person that has 1000 to spend . Abhey a great. Theres a big following amongst consumers who can afford much higher and devices higher end devices. The question is how many units can apple sell at the price point . Initially, we think there will be a strong surge in demand, but that could fall off quickly. Is there a supply constraints, there is always a risk that people can wait out for the next ine and september september, in which case the price will come down. Vonnie we heard about will happen tomorrow, but it still has to be that moment. Is there anything we might be in store for . Beey the key focus will the latest phone and the price point. The derby something on the content side to push their product . Absolutely. The focus is going to be on the price point, and whatever features they launch. Vonnie thank you for joining us. Tune in tomorrow for a live product of apples launch. That is starting at 1 00 p. M. New york time, 6 00 p. M. London time. It is time for the Bloomberg Business flash. A look at the biggest business stories in the news right now. Over a legaling challenge that could take years to conclude. Overne, google was fined to stop illegal conduct over shopping search results. The founder of linkedin plans on investing and london in londons entrepreneur first. According to people familiar with the move, it is a methodist boost front company. At venturea partner firms and is a board member at microsoft and airbnb. Whole foods had a 25 increase in store traffic in the first two days after the amazon deal was concluded. They had a highly publicized price cuts at the time. That is your latest Bloomberg Business flash. Is heating up as china has a deadline for automakers to end sales of fuel powered vehicles. This is bloomberg. This is Bloomberg Markets. This week, were focusing on the rise of electric nichols and how the worlds biggest economies are contributing to that expansion. China is setting a deadline to end fossil fuel cars in that country. Let us bring in david welsh. Ambitioussounds very to ban sales of everything that isnt electric. It is. They havent been a deadline on us. It could be 2030 or 2040, but they have really big stuff in ways to encourage electric cars encouragee to electric cars. They need to be plugin hybrid or electric cars. They have more credits for meeting that with your electric cars. They have a lot of other incentives. When you have 100 cities with people,n one million that is a lot of congestion and pollution and that is what they are trying to take care of. Vonnie one problem we have in the u. S. Is charging stations. Battery technology and so forth. As china also running up against that problem or have they solved that side of things . David everyone has that problem, but china has been doing more to fix that. Andes like shanghai beijing, you are seeing more of that activity because they have bigger carparks. They also do things in china like you cannot get a registration for a vehicle if it is not a cleaner car. They put limits like that to encourage the use of electric vehicles in the area. Vonnie how is china relevant to the rest of the world on this . Ahead of areas when it comes to recycling. Europe is ahead when it comes to recycling. Diesel to accomplish that. Diesel does not accomplish cleaner air because of Different Missions and things like that. That is why folks got in trouble from the u. S. They slowly moved into hybrids and electric cars. They havent rushed to it as quickly. Chinaa merkel met with to see if they can slow it down cars ingermany sells china and it is a big boost for the german government. They are not as aggressive as china has been. David how about the United States . We give generous subsidies. Will that continue indefinitely . David americans have been slower to go to electric cars. You can only go to hundred miles or maybe 300 at most in an electric car you can get 500 miles on a car full of gasoline. You do have 7,500 tax credits from the federal government on vehicles. The problem is, after a Company Sells 200,000 vehicles, those run out in the Trump Administration hasnt said whether they want to renew this. It hasnt been there kind of thing to push for clean air and limit greenhouse gas. That is to be determined. When youre talking about cars in the u. S. Were talking about tesla. Their race will a good chunk of theyred thousand already sold a good chunk of the 200,000. They could run out of credits next year. We will see what happens. There hasnt been enough to encourage development of infrastructure in the u. S. , turkey stations. We will see what happens with tax credits. Vonnie david welsh. Thank you. Still ahead, more on the electric car race. We will get the latest on the allanys plan to go electric next. A reminder, you can catch all of our interviews on the bloomberg type in the function tv. Interviews, functionality, charts, and much more. Stay tuned. More markets next. This is bloomberg. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. 6 00 in london, and one a. M. In hong kong. Welcome to Bloomberg Markets of balance of power. The premise of Hurricane Irma turning for this hour to the cost of damage. The pricere dropping tech of the storm by tens of billions of dollars. Bannon in the candidates and theeet candidate he helped defeat on washington. Aboutergs matt miller teslas plan to electrify its entire fleet of vehicles. Volkswagen will invest 20 billion euros to build electric versions of all 300 models