Where they were this morning. Not doing a lot as we wrap up the week. The nasdaq, one point this morning up almost 5 10 of 1 , half of 1 , and now off of those. Green on the screen here. Apple, forw movers, example, one of the biggest gainers, and oracle, one of the as they arers here missing on some of the cloud revenue. That is what i am looking at. Lets recap for the week. Come over and my terminal, you will see we are much higher on the week for all three of the major indices, that is after last week when we saw some losses. We have some risk off dealing last week, revisiting that 2 level on the 10 year, and this week a little bit higher with yields up 15 basis points on the 10 year, so that reflation trade is certainly back on as we recap the week. I also want to look at some other major movers for the week ecowas asked fax, for example, down 5 here at the quifax down 5 tier after that breach. Elizabeth union out this morning, trans union down or elizabeth 4 , warren out this morning, thing she wants to crack down on oil. We had a rough week with the hurricanes, and we are rebounding. , it looks 50 level like we are not quite there is we end the week, but nonetheless we are looking to gain. Now, it nikki haley is warning that the Un Security Council might have run out of options on north korea. She thinks north korea will be one of the focuses of the u. N. Meetings next week. At thee the comments White House Press briefing a short while ago. Get is up to speed on what she said today, but what do she mean we are running out of options potentially with the United Nations . We seem to be on the side of escalation here when the hope is that we can get back to talking diplomacy. Nikki haley down at the white house today laid out her argument for some of the existing sanctions taking a fact, effect. Past onesanctions were month ago and on monday this week. But then she handed the microphone to National Security adviser h. R. Mcmaster, and said she was happy to do so because he has a lot of options. The u. S. Is maintaining me position that all options are on the table. But this is something the u. S. Has kept as an option it can use if the International Community has not stand united on ratcheting up the tension or the pressure on the north korea. Scarlet speaking of pressure, is urging china to use oil as leverage to change kim jonguns behavior. I think washington wants to show continued unity in dealing with north korea. The Trump Administration is trying to put pressure on china over its over oil pipeline into north korea ahead of the vote for sanctions on monday. The u. S. Press to completely cut off oil supplies, which people say could very quickly cripple north korea. China does not want to do that, it does not have interested a failed state on its border and theyees coming over, but cut production by one third. The u. S. Is saying lets let those sanctions take effect before we jump to conclusions about their effectiveness. So much,thank you catching us up on the latest with north korea and washington. Lets get a check on first word news with mark crumpton. Mark british Prime Minister theresa may says it is important for Law Enforcement to focus on the extremism and tape hates that inside terrorism as they move ahead on the investigation into todays explosion on a london subway train. May spoke after a meeting with the governments emergency committee. This is also why we are working with the internet secretary,the home we are working with the Internet Companies and next week i will be chairing a session, cohosting it, with president macron from france to talk about what more we can be doing to ensure that we deal with the terrorist propaganda, the extremist propaganda, the hatred they put out on the internet. Mark may added that Scotland Yard is looking to make sure that Security Services have the power they need to fight propaganda. Wounded today, none believed to be lifethreatening. President trump says the terror attack in london is the latest example of why the u. S. Travel ban should be expanded. In a flurry of Early Morning tweet, president called the another attack by a loser terrorist. He added that should be far larger, tougher, and more specific but stupidly, that would not be politically correct. In florida, the state has cut off medicaid funding for a nursing home where a people died after hurricane irma. Workers say that airconditioning failed during the storm, and they struggled to keep residents cool. Police have opened a criminal investigation. Expert two years ago who warned about flint michigan flint, michigans levels, he has declared the crisis over. Tainted for 18 months, as the city did not treat the water to reduce corrosion. As a result, led leaks from old leakednd flexors lead from old pipes and fixtures. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. Julia Global Markets are showing resilience after north koreas next Missile Launch over japan, in the past two weeks. Flood fed is seeing shocks in the oil market and the systematic Financial Market shock, such as a chinese credit event, could be other catalyst. Mcdonald, now is jim chief investment strategist at northern trust, which manages 1 trillion in assets. With us. Have you what we hear a north korea is that you do not know how to price it. In this case, you just ignore it until something really big happens. Is that the way you approach it as well . Jim we think there is a spectrum of outcomes from benign outcome that would be good for difficult to a more outcome. The probabilities are very hard to handicap. The history of they doical events is not have a political impact on the markets. There is a chance of something occurring that may never occur, and the market will keep on being driven by fundamentals. When youre talking about the risks like north korea, the federal reserve, the supply shot china,e oil market and how acute are these . If we separate these from our broader view, you are pretty optimistic. We are, but we are trying to prove out what could change and what could be wrong. Tank raisingentral rates, we do not see inflation and the environment that is going to cause them to do that. And we look at the potential with supply shock, and Oil Price Jump would be a problem for the markets. That is not something we see is a real risk here. A riskt, you mentioned of Financial Market tightness in credit, which could come out ething like the china and chinese financial credit markets we do not see that is a real risk. The economy in china seems to be doing pretty well and there were calling they are controlling credits to keep this from being a problem. Scarlet if you are sanguine, how does that affect your position . Do you just kind of continue to sit and watch developments before committing more money . We are at the top end of our risk budget. The biggest shift we have made over the last nine months is a move from a focus on u. S. Equities to a much more globalized portfolio. In creasing of exposure increasing exposure in europe european and asian countries, and those groups have done particularly well with the dollar weakness here. Julia do you think that continues, because we had a conversation this week talking about the low level of correlation geographically with equities which argue for broader diversification, including the United States. Is that shift away from the United States actually that necessary when you look at it through that kind of crude prism . Shortterm, who knows. If you look medium to longterm, the dollar is still overvalued relative to most of its trading partners. In the u. S. We have gone through a cycle u. S. Stockshere have doubled the performance of the developed markets outside the u. S. This is a trend that has just started to shift. I would view this as being a multitier track. Scarlet jim mcdonald, thank you so much. Coming up, we will talk about President Trump and his approach on the dreamers, daca. From new york, this is bloomberg. Julia this is bloomberg markets, im julia chatterley. Scarlet and im scarlet fu. Two tweet from President Trump yesterday, signaling a change in his position on deferred action, daca. Democratic congressman which includes a large swath of upper manhattan. Thank you for joining us. Back in town because congress is in recess again. I wanted to start with your impression of the president s outreach to democrats, has working with Chuck Schumer and nancy pelosi on the debt deal and potentially daca. Encouraged by it . I hope it is genuine and that he means what he says. He said a few weeks back that , and then a few weeks later he got his attorney general to threaten him. He pledged in concept to support the dreamers, and the next tweetedtreated something different. I hope he means what he says and that he is genuine about his intention to help 800,000 young people. We hope he is negotiating in good faith, but do you think the democrats are offering too much . To make thathave decision. Ultimately, i hope he is genuine in the discussion and that we really go into it. We have a bill called the dream act that is in congress right now, a bipartisan borrow bill supported by the congresswoman republicanrnia and a from florida. This is a bipartisan bill that has almost 200 supporters. Unless they look at the dream says lets see what is good about it this is a stringent criteria that it will have to go through. They have to get a medical exam, no critical record, work, go to school, be in the military eight years with a temporary green card. After those eight years, they get their green card, and then there is a path to citizenship have to 13 years. This is a stringent process. We should give them a chance, really. Exit will be eight negotiation julia it will be a negotiation between the democrats and republicans. Would you be able to sanction some border friending to get daca or a broader dream act passed . The border wall is a nonstarter. I will not support a border wall. It is economic malpractice to throw these kids out to want to go to college, be in the millon to support, or work the economy. Why make it a zero sum game where a loss for another. Because that is how politics works. But everyone at the table who wants to help these young people this is a nonstarter. If you want to talk about drones, technology, that kind of initiative could be discussed. But a wall is not going to help. Julia do you think the president of the motives are pure here . Do you think he recognizes the issues that you addressed and trying to keep these people in the United States . Willhope he is steady and not be flipflopping back and forth every day, because that cuts down his credibility. Andou stay with them today then are against them tomorrow, it cuts into your credibility. I do not know to what degree he is genuinely in support of these kids. The issue is paul lang polling very well. 75 of americans think they should stay. The private sector thinks they should stay. The academic institutions want them to stay, and obviously their parents want them to. You about me ask Hillary Clintons new book and what you make of that. For those who believe this is unhelpful, she needs to let bygones be bygones, how do you feel . She is entitled to give her opinion. This is not monday morning order backing, this is her laying out genuinely what she feels impacted our country. We should not look away from russian intervention into our electoral process. Nothing could be more egregious than that, that having a Foreign Government determine who our leaders are or influencing who our leaders are. Light to shed on that and if she is sure she is speaking the truth, i want to hear it. Scarlet but is that helpful for the cause right now, especially as the democrats are getting ready for the 2018 midterms . Leadership, a new party chair, and a vice chair who was one of my colleagues. They are good, eloquent visionaries and we are going to follow them. I think we needed a new chapter in the democratic party, and the nation is craving that. Scarlet well said. Way, representative Adriano Espaillat here with us, the first undocumented immigrant to ever serve in congress. Atop nestle investor weighs in on the swiss giants new deal. Julia serving up monday morning quarterback as well. Scarlet this is bloomberg markets, im scarlet fu. Julia im julia chatterley. Scarlet food and beverage giants are picking up on their efforts to expand beyond mainstream brands. Nestle, owner of espresso and nescafe agreeing to buy a majority stake in blue bottle coffee. This start of has strong hipster credential and is perfect for coffee. Joining us to discuss is a prominent investor in nestle, tom russo. Thank you for joining us today. We were talking over the break about how this is a behemoth, as marriage between a behemoth and a young upstart. This seems like a culture clash. Case,seems like in this the cold that has been built around the upstart falls away immediately because they felt it has been a sellout. I think in this case, they have chosen well. Bluebottle is different. In the articles about it, they say people are more likely to listen to Classical Music than rock n roll. It does not have the same edginess. And they are deeply they have opened up 30 stores, six stores in japan, which is extraordinary, and they are planning another 25 this year. Whether we wrestle with the fact that they may or may not relate to those consumers who may fall away, they are moving or word. For nestle, it gives them a success they can invest substantial amounts of capital going forward. That is what we look for in our companies. They need to have the ability to reinvest, and in this business they seem to have unlocked the formula that will allow for reinvestment. Talk to me julia talk to me about that. Ofs is peanuts,. 1 their total sales. Look at some of the reaction from subscribers online, and they are saying you are selling out, i am going to cancel my subscription. Do you think the base that they have built over a number of years does not matter, because nestle can scale it up to a maitre greater extent to make them relevant . I think the fact that the founder stays on with 32 of the shares along with his key team makes a big difference. Nestle has to stay clear to their mission of leaving it alone. If they intrude, this means they cannot learn a lot from that association, their partner. They can learn a lot, but if they tried to go in and nestlei ze the business, they will lose it. They have something that they can pour money into, and one of the shareholders needed was a source of future cash to invest, and they did not want to go public because of the pressure for quarterly earnings. Nestle has the capacity to shelter those investments because it is small relative to nestle, but they are not small in coffee. 505 500,500 cups around the world every second. Scarlet you mentioned that they could learn a lot from bluebottle. What do they need to learn . Much withdo how how much they want to mess with country of origin, delighting the customer. Scarlet you cannot be a big company and delight the consumer a . You can be, and they have nespresso. With nestle has credentials through that business. Julia does the price make you nervous . The price will not be determinant of this investment. If they get the stride rite, i think the business bought by Reynolds American tobacco, 24 years ago, called american spirit, you may see the brand they left it alone. 100 onethen one of thethe percent american market. The reason why it worked is that they left it alone and let the do the delivery. I do not think they could do that with this, but they must leave it alone. Julia tom, great to get your insight. Still ahead, the coowners of the Milwaukee Bucks joining our colleagues were an exclusive interview. From new york, this is 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. Julia from bloomberg World Headquarters in midtown manhattan, this is bloomberg markets. Im julia chatterley. Commodity markets are closing in new york. Today. Ake a look at oil crude muddling around, closing around unchanged. On the week, it is an entirely different story. Crude posting its biggest weekly gain since july. Forecasts from iea and opec of right into the picture as brighten the picture as refineries in texas cover from recover from hurricane party. Moving on to gold, futures lower today, despite the latest missile test by north korea. Lessdown left in 1 than 1 . If you come in the bloomberg, you can see the gold rise in pounds price in pounds sterling has dropped to the lowest levels, sterling to its highest level since brexit. Mightuggests a rate hike be sooner rather than later. This chart is called 25 years in sterling, and we will be discussing that on what it to miss. Scarlet . Today, therlier coowners of the Milwaukee Bucks were on set for an exclusive interview. What are they have to say about Interest Rate effect on investing. Lets take a look. Rate have your interest environment flooding the system, creating absolutely the problem that there is too much money sloshing through the system. No place really to put it other than to pay up and fully price risk assets. More than that. The last big crisis was 2008. We all lived it. Investors memories are about six years. We are now basically nine years after this. Exactly nine years now after neiman brothers. Have operated a lot since the Global Financial crisis and before that, and a risk oriented way. Who totallys ignored risk over the last nine years are the ones who have made the most money, which is why you go back eight or nine years, outperforming active. The sand,our head in ignoring all the noise, the geopolitical stuff, that is the way to go, and i think that is partially driving this complacency. What about the riskfree assets . You mentioned 10 year treasuries this week, having a century bond come out of austria with the yield of 2. 1 . How do you price the riskfree asset, nevermind the risk affect . What is happening there the quest for yield. There are two things going on up there. There is a theory that we could be entering an ice age, another words in other words, Deflation Technology and globalization are going to kind of destroy what we view as normality. If you are in institution and need to protect against deflation, you need to be in super longduration assets. These are one of the few ways that you can head off inflationary risk. I think that is partly it. The flipside of that is why would anybody buy a 100 year argentinian bond, which they did. [laughter] i think argentina has defaulted in the last five times at least five times in the last 100 years. Reform has taken over, but the question being what is going to turn the cycle . If you are the stress guys and wants to buy assets on the chief when the cycle turns, what is going to be that for the u. S. . I think that will take a while. I think wes is right. When you look at what is going. N, things are fine i think they are going to remain fine for a while. What is a wild . We are nine years in. Specific finding situations. You have to look harder to find what you are doing. I think it could be two or three years. Are you finding those runs . Right now it is in the Energy Sector, aviation, asia and europe. You have to go outside the u. S. We are buying a company in brazil where it is a Waste Management company we are buying, and when you take a look at that, here in the u. S. , Waste Management, we are buying it at a 25 discount and it is growing twice as fast. Find these assets outside of the u. S. , and that is because people think there is more risk out wide outside. Thee you want to invest United States, or are you getting overpaid by investing in brazil . I say if it that, it buy something at a 25 discount and it is growing twice as fast and there is massive growth, why would i not do that . What about energy . Now, the futures would tell you that oil would be at 60. Today, the futures are telling you that oil will stay around 45. So today, you can buy secure debt and get involved in the restructuring, and restructure these companies do i thought people beneath you restructure these companies to wipe out people beneath you. Could you give me some examples . We were expecting to see a wave of defaults and the banking and Energy Sector about a year ago, and they never came. You are looking at restructuring. We are looking at impact drilling, ocean rigs, and a number of companies. They have not filed, but what you are going through is the restructuring. You mentioned asia. Where in asia . Shockingly, australia is in asia. You count australia as asia . Lets go there. You think there are opportunities in australia . There are for us, it is australia, india, it ends up being indonesia. Those countries. The simple reason is that countries where you had a lot of Chinese Companies that had gone there, they used to get their financing from chinese banks, and right now what is happening is china is shutting that off. You are able to lend to those companies and make anywhere between 15 and 20 , and use the legal system of those countries. I can use a legal system that i think is very good, same thing in india, and i am lending at eight seniorlevel and doing that at a 40 discount. That was the coowners of the nba will Milwaukee Bucks. Lets get a check on the first word news with mark crumpton. Mark the United States is not planning to announce any further retaliation against north korea, and there is no Un Security Council plan to push for additional sanctions after pyongyangs latest Missile Launch. The u. S. Ambassador to the u. S. Nikki haley addressed the matter at the White House Briefing today. They continue to be provocative, continue to be reckless and at that point there is not a whole lot the Security Council can do from here when you cut 90 of the trade and 30 of the oil. Having said that, i have no problem taking it to general mattis because i think he has plenty of options. The president has not officially rolled out mitchell out militaryd action in north korea. Trump is briefed by called british Prime Minister theresa may today to honor offer condolences after a homemade bomb exploded on a subway train during rush hour. At least 20 people were injured. A manhunt is underway for the alleged attacker. This is theh fifth terror attack in the u k this year. Federal emergency and management and management administrator brock long says that they are beginning the long recovery process. At a briefing this morning, he said Good Progress is eating made in getting people back into their homes or in temporary housing. Said officials are focused on restoring electrical power and getting gasoline into areas. Uffering fuel shortages nasas christine a spacecraft completed a 20 year turning today when it disintegrated in the skies above saturn. In 1997. Og launched as it toward the planet, nasa Officials Say it was traveling at more than 76,000 miles per hour. The discoveries that cassini has made over the past 13 years in orbit have rewritten the textbooks on satin or saturn, have discovered a world that could be habitable, and guaranteed that we will return to that ring world. In total, christine e traveled nearly 5 billion miles cassini traveled nearly 5 billion miles. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. Julia coming up, old navy is anding the pants and caps turnaround efforts. From new york, this is bloomberg. This is bloomberg markets, im julia chatterley. Scarlet time for our stock of the hour. Wendys now up for a sixth straight day. Abigail, this has to do with wendys famous products the frosty. It is so worth it. Missing out completely. It is not a regular milkshake. Sharesny case, we have are upgraded, and they are confident that they will meet the 2. 5 . 5 , above relative to the frosty, because they had a . 50 frosty 489 weeks rather than 4, 5 weeks. We take a look at the sales here for wendys. They will look really, really lucky going between 0 and 5 , but overall, Bloomberg Intelligence analysts say they are doing really, really well, taking share, firing on all cylinders. Julia who are they taking it from . Scarlet you would think it is mcdonalds, but they are also taking share. It is jackinthebox and sonic. And these are all new names for julia, by the way. There are people who eat it a lot. Wendys look at that. Outperforming mcdonalds. It put in an alltime high this week, but wendys up 48 over down here, poor jackinthebox and sonic, taking it hard as wendys is out there taking shares, as is mcdonalds. Scarlet it is ok, the chief frostys what is that due for margin . Margin . Does that do for what is helping the margin is the fact that they are now refranchising more of their thees, and because of that margin, according to michael, is popping higher because the revenueees, while less comes in, the margin hits higher there. That is Something Else mcdonalds is doing as well. Made onest week, tech of his biggest decisions as ceo of gap. He made the decision to close over 100 Banana Republic and gap stores, and focus on stores like old navy. Spoke exclusively with the ceo about his strategy for old navy. Kind of aision, but necessary one. That is absolutely true. They are saying we are going to drill down on value and athletic apparel, because that is where there is growth. Gap and Banana Republic, they are getting a little tired, a little old. Do not know when you last walked into one, but they are having some issues that can be messy. While old navy started in 1994, so it is a newer brand than the gap is, it is really resonating with customers right now. They want a deal, and feeling like they can get great fashion at a great rice. Saying that, they did have some stumbles. The brand presence that president left not long ago for ralph lauren. The talent has been falling off for a while. Some quarters were pretty rough, but they seem to have gotten back on the horse. Sales pick up, and they have been carrying the brand as a whole for a wild. Gap and Banana Republic are underperforming consistently for quarters and quarters now. Carrying or cannibalizing . Did old navy steal customers who and aor a cheaper option home brand, effectively, in old navy . Sure, you would think you gap for 60 at the or old navy for 30. I think there was some cannibalization. It was not similar intended to be that similar, but would you rather lose it to old navy or two t. J. Maxx . Probably to old navy. Scarlet arch pack is refocusing is refocusing on old navy come but also athleta. They are focusing exclusively on women and girls, and they want that customer who wants clothing to work out in but also wants clothing to wear around town. Scarlet but you cannot get a real read on how big this division is. They have grown the brand, but they do not rake it out at all. It will be a 1 billion brand in a few years, but where is it now . When youe problem is put all of your focus on one brand like old navy, you are kind of putting on your eggs in one basket. You have to make this work. What is the ceo say to you about , thehey make this the crux breadwinner here for the company . He said he is really confidence. He said i am a warrior, but i think worrier, but i think this is going to work. He says there will still be a place for the gap and Banana Republic, but smaller. I think a lot of retailers are realizing i can be successful as a brand, but i need to be going after one customer and really good at one thing, and maybe that means being smaller. Scarlet analysts are also saying that for so long, too long perhaps they were acting as though it was driven by the home brand gap rather than old navy. It is a portfolio company. It is not just one brand anymore. It is like how Abercrombie Fitch is driven by hollister. To take a second look at the Company Might not be a terrible idea. It is still doing pretty well, and those Old Navy Sales figures are the envy of a lot of retailers right now. Julia a lot of appreciation of value in this stock. You got to check out in old navy store. Coming up, espn has a new challenge, and that is donald trump. Will deal with the president s threat and the ongoing issue with the reporter. Thats next. This is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Scarlet and on scarlet fu. Julia espns latest hurdle is coming in the form of donald trump, tweeting this morning and demanding an apology after a reporter called him a white supremacist. He says espn is paying a really big price for its politics. In record dumping it numbers. Apologize for untruth. Great to have you want to break down espns string of challenges. It is just in addition, actually. Usually he saves his abuse for cnn but is now focusing on espn as well. But they are already losing , which is an additional publication for them. Calibrating the political lean, if nothing else. They spent billions of andars on sports rights, now they have been losing subscribers of people are cutting the cord are setting up tv for setting up tv Services Sports packages with them. People now often get their highlights on social media. Here are several challenges it is not really clear whether this controversy, what effect it will have on business. I do not think we have seen any advertisers that have jumped ship yet. There is a going around saying espn, but there is no clear reality on what effect this will have on espn. Outlet and they tweeted something about not affecting the body. Not representing espns body. Is the thing. Espn, of course with these challenges, has been changing things up white a bit. ,hey have changed their lineup the talent on air. A new team was introduced at of her cohosts. Right . She is a cohost of sportscenter, and is seen as a rising star at espn. In addition to the challenges of the tv industry, they face another challenges, which is their audience can tends to be more conservative politically than the broader population. At the same time, they have some of their hosts who are speaking out and have political thoughts of their own. Scarlet i was going to say Stephen Smith has suggested that women were sometimes to blaine for blame for. Julia and then you have the right leading leading audience talking at the political talking about the political angle taking over the box. This is kind of playing into it as you have said. There had one traditional way and now they are struggling with how to defend or attack or go on the offensive to combat this. Obviously, a lot of espn is watching a lot of sports programming, but they do have them in that they have chosen to socialfocus on on issues. They have covered michael sam, the Football Player who was openly gay and how he was not drafted. They have dedicated some coverage to social issues, and now as we can see, they are very much intertwined with political issues. Scarlet social issues has crept into sports as well, like with Colin Kaepernick taking the knee. Is a price, because customers are expected to be active in some way on social issues. Prs morning, people at Different Companies are waiting to see about trump tweeting about their company, and do you respond . I think cnn has responded to criticism from trump. We have not seen any response from espn, and maybe they do not want to fan the flames. Julia havent their ratings, even shortterm, lifted from the College Football games . What is interesting is in the last two months, the ratings have actually increased thanks to some baseball coverage and football coverage as well. Great attack with you, gerry smith, Bloomberg Media reporter. From new york, this is bloomberg. I am julia chatterley. Scarlet i am selling so. Welcome to bloomberg markets. Julia we are live in bloomberg World Headquarters in new york over the next hour. Here are the top stories we are covering. Is claimingally another hedge fund casualty. Bloomberg found out there might be more trouble ahead for macro funds. One more thing relating to the launch of the iphone x. More tech highlights from the week. The Atlanta Falcons gets a new home. Falcons joinshe us for an exclusive interview. One hour from the close of trading. Abigail pretty nice gains for the major averages. The s p 500 and the nasdaq were slightly lower. Reversing those to join the tao. Putting in alltime highs. We have major averages putting in alltime highs. Record closing highs. Pretty impressive considering the geopolitical tensions. Stocks seem to be climbing that wall. Let us pop on over to the bloomberg. We did have that decline last week, but a nice rebound. Paper, its best week since december of last year. Some of the big movers on the day and the week. Apple, up more than 1 . A rebound after news around the iphone. Said certainort models are selling out already. Nvidia is rebounding, its best day in about a month after bitcoin turned around. Two losers on the day and the week oracle. Its biggest loss since 2013. Equifax, down about 4 on the week. Lots of probes into what is happening. It seems the decline in stock may continue. Scarlet outspoken hedge fund bid against henry banks during the financial crisis and has enough. The scotsman is shutting down his Asset Management after a 15 year run. He spoke with daybreak america in an exclusive interview. I dont think there are many managers who have chosen to go out like this. That is a function of economics. The cost of running a hedge fund today were too great. Active combat. Out, here of sending are my thoughts i dont believe this is it. This is a hiatus. I have had an immense appetite for life. Suitedthat i am better to deal with the random course of events which will inevitably arise. It wasnt meant to end like this. Are you talking about the markets . The last three months were harrowing. That my macro have been mediocre since 2012. Ande is this impetus to try do something, running higherlevels of risk to demonstrate we are really trying. I run a lot of risk. Becamereat horror, i deeply correlated to the travails of President Trumps presidency and these geopolitical events off the korean peninsula. Not consciously. It wasnt meant to be like that. How difficultough it has been to come to the place you are now . Not so difficult. There was a cathartic of event for me in november of 2013 when fromked about borrowing American Television studios. What if i was to tell you that i thatd bullish was something you would be interested in . The resulting message from my board was absolutely not. My message has been consistently that i thought the stock market was safeish. And the opportunity to find there was arades, futility in trying to find trades that would do well in the advent of crisis. Foresee a crisis. Eclectic assetmanagement founder. An exclusive interview. Look at the health of the hedge fund industry. Joining us is our reporter who covers hedge funds for bloomberg news. Lets talk about what we were hearing their. He mentioned the turbulence of the last few months. That is happened since the challenges of the industry. For other macro funds, the problems they have had are the best that they expected would occur have not. Hendry had an interesting point. He was bullish, but investors dont pay him to bet on the u. S. Stock markets. He is trying to figure out a way to make money for them, should there be a correction, and he didnt believe there would be. Believes, based off of data from the 1960s, that there should be a real inflationary environment. Reinflationary environment. He was short of fixed income. All the thing supposed to go in his favor went against him. You keep hearing these arguments, the opportunities havent been there, there hasnt been Monetary Policy diverging, but there are a lot of other clock Asset Classes you can make money in. Macro funds dont invest in emerging markets. There is opportunity there. Because they have negative rates in europe, you dont have the opportunity. But you can get more creative. Maybe some of the guys that made money in the past are maybe cut out arent cut out for the current environment. Making money and choosing your trades and getting the time right. Right. Scarlet there are funds doing well. What strategies are working . We have seen funds investing in emerging markets doing well. That has been one endpoint. Traditional macrofunds that have made themselves famous, passport they are not doing well. You are seeing acid redemptions. Asset redemptions. One lost 15 of its assets from client withdrawals. Guard capital closed. It is a good thing some guys are making money, but there is a . O the folkson as t that were able to become famous off of their macro brilliance have that much of that left. Scarlet the correlation is killing this. Julia distinction between the men and boys, or women. Sunday, coming up, on do not miss a conversation with the founder of bridgewater associates. He shares their insights behind the principles rare ins ights behind his principles as one of the world for most investors. Say, go long,did and stay long. You a check us get on the headlines on first were news with mark hampton. The british Prime Minister theresa may is responding to President Trumps tweet that britains scotland garden did bash guard may have had suspects from london terror attacks on radar. It is not helpful. We are doing an ongoing investigation. To uncover working the full circumstances of this orderly attack. Cowardly attack. It is not clear if the president s tweet was about suspects from todays terrorist attack on the London Underground train today or from previous attacks in london. Three of the five attacks that struck britain this year were known to Law Enforcement. United nations Security Council is scheduled to hold an emergency set session to discuss north koreas latest Missile Launch, the second to fly over japan in two months. The launch wasnt unexpected. North korea had promised would tell you u. N. Sanctions. The United Nations has released april or indicating the number of chronically hungry people in the world is on the rise after a decade of decline. In its annual report, the u. N. Says 8 Million People were chronically undernourished yes last year. This is the price we are paying for conflicts and climate change. In 2016, one out of nine people in the world is going to bed hungry. Face Million People possible famine and parts of south sudan, northeastern nigeria, somalia, and yemen. 11 of the World Population went hungry last year. An 11yearold boy from virginia got his wish to mow the white house lawn. He lives in the washington suburbs and wrote the president to say it would be his honor to mow the white house lawn. He was so focused on mowing the lawn he didnt notice the president emerged to greet him until the president was next to him in the rose garden. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. I mark hampton. This is bloomberg. I am mark crumpton. Scarlet from the apple product launch, a kind of tech headlines. We will bring you up to speed, next. From new york, this is bloomberg. This is bloomberg markets. Julia i am julia chatterley. Scarlet where do you start when it comes to tech headlines . From alphabet intentionally exploring a 1 billion investment, to apple ushering in the new iphone. R bloomberg editor at large had to figure it out. Bloomberg editor at large had to figure it out. You just did. You cover this ridesharing sector. Is it alphabet invested with ube3rr . They were a major early investor. That was the thing that launched uber. The Google Ventures round. Now there is major falling out between uber and google. Uber fors sewing trade secrets. There has been a growing relationship between alphabet and lyft. There is a partnership between lyft and wamo. This isnt just for financial returns. There is a strategic element. People believe the way you will out self driving cars is on one of these rideshare networks the way you roll out self driving cars is on one of these rideshare networks. Why doesnt google just buy lyft . I talk about that all the time. That is the question. Lyft . Ld alphabet buy there hasnt been any sort of clear indication in the making. Lyft wants to operate independently. Are only two major u. S. Ridesharing companies. As long as they operate independently, there isnt a major acquisition on the table. Position. A better we have seen a downtick in the growth of uber domestically. Thatere is no question lyft has gained significant market share. They are running a huge marketing campaign, saying it matters how you get there. One of the things we saw with travis was that he would do competitive fundraising rounds. Down would try and suck the tide. Uber was an expert at blocking other peoples money. It is a zerosum game. Google is putting all this money in lyft now. How big is the round . It is googles appetite for investing in left. In lyft. It seems like it is alphabetcentric. Others see a potential deal going on. The evaluation is going uation is going to be extreme. Top story of the week. Apple. Even in the world of apple product releases, this was big. You have to be board by talking bored by talking about the products. [laughter] let us talk about the optics. What was the event like . I wasnt down there. What was the campus like . When we drove up there, it is unbelievable how big b the places. Almost 200 acres. The place is massive. It looks like the render. It doesnt look real. Pasto up this driveway, the visitor center. And then you have the steve jobs peter. Steve jobs theater. It is nice. Nice . People are calling it a product. No matter how beautiful it is, the Office Building is not a product. What did you make of the way they are still imitating what steve jobs created. The product introduction, with a rapt audience of fans. Apple is trying to do it like steve did. They are going less for the market. Less speed than feed. Theyre going for the millennials, bigger base. Pictures, anemojis. Great stuff. We appreciate your coverage. Thank you. Back to you guys in new york. Julia options inside. Todays trading. 25 yearwn more than to date. This is bloomberg. Julia this is bloomberg markets. Julia it is now time for options insight. Here is thise gentleman from National Risk advisors. We have this record high. The silo is trading higher, the bloomberg Commodity Index up. 05 . Broad thesis on the oil market has been negative feedback between oil and inflation. The big question for the fed has been, where is the inflation . Soft andcpi will be rates will be under pressure. We have a soft feed in the numbers this week. Macro positioning has taken as. Taken a pause. You will see the fed will do next week. From a rates perspective, there is a broad perspective. We will see the Balance Sheet unwind. Julie there is a bit of a risk on tone this week. Oil is up 5 . Copper has had its worst week since june. A great chart in the terminal. Energybottom, we have and the agriculture complex down. And then precious and Industrial Metals doing well this year, but coming down. Chris we dont think it is a rotation. We think the signals of the Metals Market versus the ag and Energy Markets the latter is a storm related. The latter is storm related. The trajectory of the storms have damaged cotton and oranges. Chinese Industrial Production has been soft for several months a row, in the directing directly affecting demand for metals. We think this will flow through the Energy Market in remain structurally short. A temporary blip. Trade . D your stocks. High shore beta as long as capital is constrained, we think spending will remain constrained. Great stuff. Chris of macro risk advisors. Withet i will be speaking the chairman of am grb group and the owner of the Atlanta Falcons on the teams new stadium. From new york, 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. It is time for first word news. Islamic state is claiming responsibility for todays terror attack in london. Were wounded when a bomb exploded in the London Underground. Minister theresa may says it is important for Law Enforcement to focus on the extremism and hate that incites terrorism as they move ahead. She spoke after meeting with her governments of emergency committee. This is why we are working with the Internet Companies. The home secretary of Silicon Valley spoke with the chairman of Internet Companies. I will be chairing a session with president macron from france to talk about more what we can be doing about what we can be doing. Yard is looking to ensure that Security Services have what they need to fight internet propaganda. President trump says the terror attack in london is the latest example of why the