Being dragged down by health care and utilities. The 2500ry close to level. The dow is also down. 1 , while the nasdaq is at 6417. Yield look at what they in the 10 year is doing. We are seeing a little more safety demand after north korea just ramped up its rhetoric against the u. S. , suggesting they could include a Hydrogen Bomb in the pacific as part of their threat. 10 year yield of falling. The yen has actually risen the most in two weeks. But not in the double digits. We are seeing the pound falling. Theresa mays much awaited speech was lacking details that we were looking forward to. Creative and imaginative were the words she used. Uber has lost its license in london after investigators cited a lack of corporate responsibility. The company has 21 days to appeal the ruling. The general manager of uber in london said they intended to immediately challenge it in the courts. Bring in our senior tech editor from san francisco. Brad, how will the new ceo approach the defense of uber on this, and will it be different then what the old ceo might have done . Brad i do think so. He has his handful hands full these days. He takeseadache as over uber. This is a continuation of what has been a pretty antagonistic life for it uber. The have been fighting with historic black car industry, which had a stranglehold on the city for centuries. About economics and immigration because many of uber drivers are not from england. And its about control of a lucrative industry. I think they will appeal. I think this gets settled. Over now, there are 200,000 signatures to londons mayor to reinstall it uber. How important a market is london for it uber . Brad its important. It is a mature market. Lyft does not operate there. Its a couple Percentage Points if they were to stop operating there, which is not going to happen in the shortterm. Right now, there are so many questions around the valuation. Healthy not good for the of the company, but i think were a long way froms weighing they are going to lose london. Black cabs are more unionized than they are in the united states. What kind of defense can they mount . Brad the argument has always been the same, which is that there is an uneven playing field. Black cap drivers have to take a knowledge ofstrate the streets. They undergo a rigorous training program, and their supply is limited. And they cannot change what they charge during the day. They cannot surge like uber does. Changed, i think, is pummeling in the publics fear the past nine months. They cited things like the gray ball program where it uber was tracking regulators to avoid picking them up and getting fined. I think may be Political Sentiment has shifted in favor cab drivers are trying to protect the market. Onry lets get a check bloomberg first word news. Out atheresa may has laid plan for a twoyear transition. The u. K. Formally leaves in march of 2019. She did promise to work toward a longlasting agreement. May if we get these spirit of partnership right, at the end of the process, we will find we are able to agree successfully and quickly. Mark she also promised the u. K. Would live up to its budget commitments. The senate has what may be their last chance in a long time to pass a repeal of obama care. Several senators have not committed to the bill. Including the three who killed Mitch McconnellsHealthcare Plan in july. Rand paul says he is a no vote and wont change his mind. North Koreas Kim Jongun is being tested by the strongest byctions ever put in place the international community. Secretary tillerson would not say what his response would be north korea tested a Hydrogen Bomb. Said all military options remain on the table. Meanwhile, President Trump says kim jongun is a madman who doesnt mind starving or killing his own people. Kim responded by calling donald trump deranged. Of puerto ricond has lost power. Been swamped with flooding. 4 entire bill could reach billion. All of this just months after puerto rico settled with creditors over the u. S. s biggest insolvency. I am mark crumpton, this is bloomberg. Up, the head of multiasset solutions for america at t. Rowe price will join us. This is bloomberg. Shery investors are getting a bit cautious. The s p retreated from another high this week as tensions with north korea escalated. Her brexitined plans. Lowell, thank you for joining us. Lets talk about equity markets. We are seeing downward pressure. That worth mentioning still, investors have not been that concerned. We are continuing to the bullish sentiment out there. Not surprising since equities are still attractive relative to bonds. When will this stop it being true . The real issue for the recovery is that the equity toness of bonds. This is really about bonds. What has really changed is that , for the first time in the recovery, youre increasingly have cash for allocators that wasnt there. Fast forward toward the end of the year when cash might provide a 1. 251. 50 return. Next year, 2 , maybe even 2. 5 percent. That becomes a real option that has not been there. It is risk free. Protects the rate environment and it provides a meaningful source of income for investors. That might take some of the attention away from thinking about equities on an absolute basis. Valuations are stressed to some level. They are not extreme, but they are definitely stressed. Are you expanding your position in cash . We are not. We think its too early for that. But the way we think about multiacid investing is that most of our clients, because of their time multiasset investing is that most of our , we are advocating taking some equities off the table in a modest way. We are modestly cautious because we see the argument of relative valuation starting to fade for these various issues. You take a look at small caps. For example, the russell 2000 trading above closing level. If you take a look at chart 5726 showing you that we are now seeing about 70 of members of the s p 500 trading above the two hundred day moving average, i would have thought that this dispelled some concerns about how narrow the rally had been. Are you telling us that still we should be cautious because of issues seemingly fading . Right. Issues are fading, but what we know in investing is that there are always risks around the corner. The market is reacting to a lot of uncertainty across the globe. They have learned to shrug it off because it has not had any staying power, not to say that it will going forward, but there are meaningful risks out there on the horizon that could cause a meaning full drawdown. For example, you now have the balance sheet. He the bank of japan is there he accommodative. The potential for , particularly if we get an inflation spike. I think thats another risk that thenderappreciated by market. What is your best idea right now for achieving some kind of deal . Yield . We think from a yield loans are, bank interesting. We think quality dividend producing stocks pretty provide some opportunity. But you have to be careful because they provide some bid up. Would not advocate stretching for yield, but there are pockets out there. Movement after theresa mays speech. U. K. Is a global market. Today is the first stage of moving toward brexit in a real way. I think what you heard from they want tos that , but theuickly European Union is basically we are back and saying going to proceed cautiously and you are going to continue to pay after we leave the European Union to have trade agreements in place. Area you want to be careful about from an economic standpoint. These are global companies. Shery thank you so much for joining us. Vonnie time now for our latest Bloomberg Business flash, a look at some of the biggest business stories in the news right now. The u. S. International trade commission has determined that imports are hurting solar manufacturers. Now it is up to donald trump to decide if import tariffs should be imposed. Price targetsheir on this pharmaceutical share. After receiving doses of an intercept liver drug. The company says it is reviewing the matter. Jpmorgan will open operational headquarters in warsaw, poland, and polish Officials Say the bank will hire several thousand employees. Taking advantage of polands lower cost. That is bloombergs business flash. Alleges anport insurance gambit at a dialysis provider. 7. 7 , now five point 5 . Here to walk us through the allegations is julie hyman. From the southern investigating reporting foundation, a journalism organization. He looks at something between the company at the relation and thethe Company American kidney fund. The American Kidney Fund is a nonprofit that provides funding dialysissis care to patients. The article is alleging that essentially you have a circular scheme by which the Company Donates to the American Kidney Fund, which then funds a lot of the treatment for devita patients. A lot of their patients are under public insurance, medicare, medicaid, its the lucrative patients under private insurance to he alleges are getting the funding and who account for the profit margin for the company. Again, there has been reporting on this before, but this article really digs into the numbers, and again, alleges that there is a gambit going on here. Shery there is a prominent shareholder, too, right . Julie yes, Berkshire Hathaway is the shareholder, warren buffett. They own 20 of the company. If you click on berkshire look at, you can take a the companys historical positions. It essentially, you have the revelation that berkshire had taken a stake back at the end of 2011. More than 50 since then, although they have underperformed the s p, it should be noted. They have kept studies since 2014. One quick disclosure, the chairman of bloomberg lp, the parent of bloomberg news, is a member of their board. Well, we will see if there is a response from davita. Re hathaway or julie the company has said they disagree with the entire model this report uses. Thats something to keep in mind. Up, what aing burgeoning market is amazon looking to expand into . That story next. This is bloomberg. Bloombergis is markets. Im vonnie quinn. Shery i am shery ahn. Amazon is looking to deliver more than packages. They want you to order chipotle and shake shack. Amazon is teaming up with mobile , sending shares of grubhub tumbling. Joining us is craig with more. I am almost surprised they havent done this already, right . Amazon restaurants has been around since 2015. They started in seattle. But it is small. Competitor or grubhub and seamless. This news hit grubhub pretty hard. Amazon has access to up to 40,000 restaurants 200 brands, 40,000 locations. This is them going hard after a chunk of the restaurant market. I come from hong kong where we have so many delivery companies. How big is the food Delivery Market in the u. S. . Greg the market of orders placed through apps is currently 10 billion, expected to go to 35 billion over the next five years. Mcdonalds resisted this for years. They didnt think the fries would stand up in the time it would take to get to someones house. But now we see them partnering with these services. This is amazon stepping in and saying they will be part of somebodys restaurant. Vonnie what about Quality Control . Can amazon step in and make sure it is the correct order, correct address, delivered on time . Craig you hear some people in the industry complain about it. They dont have official partnerships. They publish restaurants that are wrong sometimes. Prices are not up today. They are saying that the orders are going to be accurate because you have to talk to someone. Whether amazon can get you food hot and fast remains to be seen and it will be something to watch, how they do it operationally. Vonnie great story. Shery, with delivery pan deck, does an actual panda delivery or ,ood to you delivery panda does an actual panda delivery your food to you . [laughter] shery not so literal. Coming up, we preview this a major event with the former chairman of the export import bank, just ahead. Vonnie a reminder, you can get all of our interviews on the bloomberg with the function tv. Get charts, functionality, and all of our programming. 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. Whentertaining us,es getting us back on track,hing . And finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. David from bloomberg World Headquarters in new york, i am david gura. Shery and i am shery ahn. Welcome to Bloomberg Markets access to power, with a focus on politics. Ie we will david we look ahead to the coming week on health care and tax or forum in washington. Plus, critical talks on nafta next week. We preview the highstakes rather in. Gathering. Tensions between the u. S. And north korea hit a new high. Donald trump has given companies punishing those who trade with north korea. Kim jongun responded