Today weve seen the nasdaq bounced between gains and losses , not clear its going to have a record close, but any game for any of the averages would be yet another record close. One of the things that has been contributing to what games there are the market today is the iso nonManufacturing Index. Take a look of the groups on the move today. You have staples and Consumer Discretionary shares that are higher. An index was at its highest in 12 years. The Services Industries in the u. S. Expanding at the highest pay is in 12 years, Manufacturing Index earlier in the week showed a similar level. We are seeing is measured of the economy expanded, though should mention utilities in real estate are the two bestperforming groups on a percentage basis. Discretionary, you have some the top percentage performers in the s p 500 today. Dollar tree is higher getting a , viacomm an upgrade higher with a lot of media strength and trip advisor as well and interpublic. The Advertising Company rounding out some of the big services and consumer winners. One company we are watching is not winning at the moment is gopro, though shares going down. Google or product presentation today introducing something is cameras, whichps uses Artificial Intelligence to maximize photos. Gopro falling by 3. 5 . State rexretary of tillerson spoke from the state and early today and said that he remains committed to President Trump and his post in the administration. Tillerson to address a few specifics that have been erroneously reported this morning. The Vice President has never had a persuade me to remain as secretary of state because i have never considered leaving this post. Julia the comments come amid reports he had denigrated the president and wade resigning. Joining us from washington is. Ilitaries bill faries resounding surrounding Rex Tillerson have been swirling for weeks and today he hosts an impromptu press conference. An unexpected press conference, scheduled for the state department as of last night. He really came out in reaction to this nbc report that said he was on the merger resigning and he had called the president a more on. Eight a moron. He said that never happened and the Vice President never counseled him, but he reportedly did not reject his use of that term. He said he wouldnt get into petty games in washington likes to play. We are expecting that questioned, that question to, up again. Julia i was a naughty word. Scarlet kevin cirilli, jump in. When it comes to the secretary of state on the president , they dont have a particularly warm relationship. Especially not since charlottesville when Rex Tillerson made some comments about the way the president characterized what happened to kevin the political what happened. Political relationship has kept reporters busy. You mentioned charlottesville, i would also mention United NationsGeneral Assembly meeting. Asthma to several sources who suggested to me that the secretary of state was not engaging in a type of communication that had previously gone on under other administrations and republican and democrat administrations about communicating an effective strategy to u. N. Ambassador nikki haley. Of the United States. Theres been a lot of skepticism as well as questions about just how much time you spend in washington. But candidly, we saw today we typically see when the administration wants to respond to something in the media and that is a forceful push back against the report. I want to pull up what President Trump tweeted. He says the nbc news story has just been totally refuted by type secretary tillerson and Vice President pence. It is fake news and they should america. Apology to at the press conference, the First Press Conference or one of the First Press Conferences given by secretary of state was him to live pushing back. He said he wanted to reaffirm my commitment to the administration and quote unquote there was never a consideration of leaving. Thingsow, it looks like are ok between the secretary of state and the president. Julia mike pence didnt have to convince him to stay. But theyre been several occasions now where President Trump is seemingly undercut or undermining directors on Foreign Policy. I thought it was quite pointed today the Rex Tillerson decided to point out that trump has been very influential on the Foreign Policy front and successful too. Bill tillerson said President Trump has nontraditional foreignpolicy approach that he says has given voice reticular to millions of americans who felt like u. S. Priorities were more focused on other countries. But its true, there have been some very public and unusual breaches and protocol between tillerson and the president , most recently this weekend when tillerson was preparing a return from china and had for the first time confirmed that the u. S. Is pursuing back channel direct communication with north korea over the crisis there. His secretarythat of state should stop wasting his time and that the u. S. Will do what it needs to do. There was also an incident early this summer where saudi arabia and three or four other nations pose a bit of a blockade on cutter qatar. And secretary tillerson tried to mediate and trump cited frequently pretty clearly with the saudis. Want to move on quickly, kevin. The Senate IntelligenceCommittee Also came out with an update, he says report on what they found so far the russian probe. Was the takeaway. What is the takeaway . Kevin no evidence of votes being altered or ballots being altered. The investigation is ongoing, so mark your calendar. November 1 of the Silicon Valley day. Social media representatives have been invited on november 1. Its a rough day. Facebook tosure for release those ads. Richard burr, the Top Republican and raking member mark warner, a democrat, a democrat was suggesting they are not going to release it to the committee and they are going to respect that. A lot of pressure on Mark Zuckerberg and facebook to be more transparent. 1 iset noted, november what Silicon Valley shows up on capitol hill. National security editor bill faries and kevin cirilli. I guessll these months, the investigation is ongoing. Scarlet we will see, its ongoing. Lets check on whats cutting and bloomberg first word news with mark crumpton. Budgethite house director Mick Mulvaney says puerto rico should not expect a federal bailout of its debt, even after President Trump spoke of the need to quote wipe out the red ink as part of the islands recovery after Hurricane Maria. Mullaney told reporters the Administration Sends to intends to send and a disaster aid package, but he says we are not under be offering a bailout for puerto rico or for its current bondholders. Puerto ricans and their allies gathered on new york citys foley square joining to support the president s call to wipe out the authorities debt. They are asking for immediate aid to rebuild the island. Its part of a day of action across 14 u. S. Cities highlighting the plight of more than 3 million u. S. Citizens currently on the island. In the u. K. , a heckler of the conservative Party Congress had in Prime Minister may a notice saying she was fired. The document said quote, with love from boris johnson. Secretary and she have been at odds over her praise of policy. It triggers Court Sentenced 40 people to life in prison after convicting them charges that included attempting to kill president richard erdogan. Most of the people, former military personnel, have been on trial since february, accused of attempted assassination, violation of the constitution, and other crimes against the state. During the july 2016 coup attempt. 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 louvered. Scarlet coming up, a bloomberg exclusive. We have shares of shall provide tumbling after a short seller called it a get rich quick scheme. What he has to say, from new york, this is bloomberg. Julia this is bloomberg markets, im julia chatterley. Scarlet im scarlet fu. Andrew left has a new target shopify. They issued a stinging rebuke, calling shopify a get rich quick scheme. Citroen founder andrew left but with julie hyman an exclusive interview. Left the market valuing a broker. Shopify says they have 500,000 customers. Websites. Of the 500,000 we know 2500 are shopify plus, which are big merchants enjoying the platform to give them credit. 25,000 arenother advanced. What the story is about is who is the other 470,000 shopify users . That is never been discussed on wall street beforehand and as i prove, these are people who have bought into become a millionaire at home, get rich quick, and promises that completely violate every ftc rule imaginable. Its all in the report, the correlations on the parallels to herbalife, its amazing this has gone on. Julie you talk about their violating rules, you allege illegality. What law is the Company Breaking . Andrew left they are violating the Business Opportunities act because they are selling Business Opportunities, theyre not providing websites to stores, they are telling people you can be entrepreneur. Second, they making claims they can back up. With herbalife, they have distributors that were making bold claims. The shopify, on the shopify website itself, are you ready to be a millionaire . How many millionaires were created today . A sample Resignation Letter to get your boss once you make enough money on shopify to quit. Amazing that this would be 11 billion company. Those are all ftc violations. Lastly, shopify is able to support this business through what they call their partner program. These partners are bloggers, influencers, and they are also compensated by shopify. Its not disclosed anywhere. That also is a major ftc violation. Its not just one, its many. Julie lets take the last point first. I spoke to an analyst who likened to that practice to the practice of a lot of Online Retail companies or companies who are trying to sell a product and have various spokespeople who are celebrities or posting on instagram and what have you, and dont necessarily disclose their financial relationship. How is this different from Something Like that . Left you have to. The ftc has very clear rules about bloggers and instagram ours. Its very clear. Also, its funny. If the celebrity goes on and says i endorse this line of clothing or shoes and they dont disclose it on the bottom, even though they are required to, you could say what is the harm involved . When a blogger writes how they made 10,000 sitting at home at it not true, and you dont know they are being compensated by the company, thats a big problem. For this analyst to say well other people are breaking the law, they can break the law. That means nothing. It . E what about disclosing what if the company does disclose these and removes the language are talking about on the website . It has 2500 core customers that maybe account for the biggest chunk of its revenue. About half of its revenue comes from a percentage of what its customers sell. Left out of 500,000 customers, forget about 2500. Lets say they have 50,000. Lets say they have 100,000. You have accompanied its trading at over 20 times ales. After snapchat, this is the most expensive stock on the upper revenue basis. If i took the stock and just given the same multiple been a salesforce workday of service, these are topoftheline companies. The best of the best those three. The stoxx get cut in half. Shopify. When people complain about herbalife, it was an 8 billion company doing 500 million in net income. This is an 11 billion company that loses money trading in over 20 times sales that also is marketing illegally. Another parallel to herbalife these people are not selling shopify products. They still have to come up with their own business plan. Shopify, actually you can make money on shopify by just referring people to shopify. As affiliate marketing. Is not multilevel marketing, as affiliate marketing. Money onlso make shopify by writing blogs about shopify. There are many different ways. The only thing different from herbalife is youre not selling their only profits. Revenue is of their not coming from how much of a paying out to these people . Left this is even better. 50 of their revenue is subscription fees. Lets say the other 50 is merchant services. Company,re assess youre looking at 85 substantial revenue. It shouldnt even be in the same league with those people at all. I do still trading at over 20 times sales. Julie did you sure this prior to coming out with is at what point do you close out the short . The stock is down sharply. Andrew left im still short the stock. Every analyst can come out, i dont care if a defendant, but the stock is expensive, its illegal, its heavy competition. Theres a fund item, this has a lot more way to go on the downside. Scarlet an exclusive interview with citroen founder andrew left. Shopify declined to comment. Julia Dallas Mavericks owner and billionaire mark cuban shares his thoughts on bitcoin and on twitter. Thats next and this is bloomberg. Scarlet this is bloomberg markets, from scarlet fu. Julia im julia chatterley. Bitcoin skeptic mark cuban reveals he is now invested in the cryptocurrency. Bloomberg technologys emily chang set down with the owner of the Dallas Mavericks and she started by asking about twitter. Emily why now . Im a big fan of Artificial Intelligence and they are making some good moves. See the evolution of the interface and i think they are going in the right direction. Emily should twitter kick trump off the platform . Mark cuban we are in a situation where politics are so traveled in our lives are so traveled, in that realm of people who really focus on politics, when you try to make a dramatic move, you increase the amount of tribalist. All the trump fans are going to go bananas and that doesnt do any good for anybody. He just goes to facebook or he just post on a website. Theres a thousand ways to post digitally and twitter happens to be the only one he knows how to use. Im sure you could learn a use facebook. Googletwitter, facebook, and gmail are in the crosshairs of the investigation. What is the responsibility . Mark cuban for broadcast television, if you broadcast and add that said you swallow this penny and it will cure and will every illness, there are that prevent you from doing that. It should apply to digital marketing. You cant knowingly accept money for broadcast false advertising. After the have either facebook and twitter. Emily what about content . Mark cuban its not content of your try to promote a specific agenda. Its marketing. Content can be fact or opinion, but state it is opinion. , otherwiseporting its not. They are using retargeting, thats advertising. They are posting it through the ad platform. If you are posting it to the ,latform, it cant be fake news its a misleading advertisement is the responsibility of facebook and twitter to recognize this is an advertising platform and we can allow these guys to be hosting on our platform. Emily you told bloomberg you are considering getting into bitcoin. Having done so . When you think about jamie dimon saying it is fraud . Mark cuban theres a lot of assets that the values are based off of supply and demand. Most stocks, theres no intrinsic value. You just have the ability to buy and sell the stocks. Like baseball cards. I think bitcoin is the same thing. Doesnt really do anything else. I bought some through an atm based on the sweetest exchange because i gave you liquidity. Emily pure bitcoin . Also involvedm with icos and token sales, and think block chain is a great platform for future technology. Just like the net and streaming created multiple great companies, i think block chain will as well. Critical mercury protocol, the 20 change the messaging using block chain. Emily how big is your stake . Mark cuban in bitcoin, relatively small. Julia that was Wipro Technologies emily chang with mark cuban. Scarlet time now for the Bloomberg Business flash, a look at the biggest business stories in the news right now. Sports ambitions are tested in the u. K. , and negotiations for the rights to broadcast. Potential bidders like facebook and amazon will drive prices beyond the current 6. 9 billion year deal. Drug maker mylan shares surging today, having approved multiple sclerosis drugs. Drug in the of that last year were purchased. That is your business flash update. Julia that god is close slipping below 60 a barrel the commodities close is slipping below 60 a barrel. Scarlet from bloomberg world ergdquarters, this is bloomb markets. Let us begin with oil. Prices slipping below 50 per barrel, actually flirting at that level. We saw futures falling as much as 1. 3 as the government report shows u. S. Exports jumped to a record high. 2 . Tching to gold, up by 0. Gains whileg on to we await speechesfrom fed officials as well as fridays job data. Julia plus go back to the oil markets. The outlook for oil is much brighter than a year ago. Bloomberg in moscow. This is a work in progress. We believe in addition to production, which is the key rameter, the pa decision in december was reached upon. It would be enriching for us to eters, likeer param exports. We engage with data providers, that are covered with exports to see how we can incorporate experts as one of the parameters. Not to replace production but to supplement it. Some countries like iraq are falling behind when it comes to compliance. What will you do about that . I think the issue of discussed ats been our various meetings. We just held the fifth joined Committee Meeting joint Committee Meeting in vienna. Conformity has been extremely good, over 100 . This is due largely to some countries over performing. Fasttrack this process. Some countries may not be someup to 100 countries who may not have been performing up to 100 have been encouraged as much as possible to hit 100 . We have received commitments from iraq at the highest level that they will continue to do whatever is possible to reach this target of 100 . They remain committed to the declaration of corporation. It is all a work in progress, but all in all, and so far so our conformity levels continue to rise from month to month. We have even seen the api numbers yesterday returning to drawdowns on ack continuous basis in the United States. O the rebalance is ongoing demand and supply is gradually but steadily coming back to balance with the equilibrium price in sight. That was the opec secretarygeneral. Vladimir putin also making remarks at the same event on with opec. Cts he said the kremlin will redouble efforts to lift energy prices. He spoke on a Panel Moderated by bloomberg. I am saying that we do not know yet whether we will extend or not. The question is being asked to when we will extend this. Once we decide, that is when we will decide on the time friend frame. Toward the end of 2018. Scarlet pugin also discussed if he would drive a tesla. Tin discussed if you would drive a tesla. We are buying everything we see useful and we are selling everything we find beneficial to sell. We going to just drive course driven carts . No, we will not be doing that. Scarlet because electric batteries are charged using fossil feels, he said gasoline cars are better for saving the planet. Julia he had psychedelic socks. I have to do that in a panel. Virginia democrat mark warner, cochairman of the Senate Intelligence committee, says there is consensus the russian anded into political files release information to sway last years president ial election. Chairman gaveels a status report today on the committees investigation. Measure efforts did not end on election day 2016. Geared at theonly United States of america. We have seen russian acted measures take place in france, we have seen concerns raised in the netherlands, we have seen concerns raised in germany, and we need to be on guard. Mark they began the investigation in january. The panel has interviewed dozens of intelligence and political assess theo extent of russian interference. President and mrs. Trump arrived in las vegas to pay respect to massms of sundays shooting. The president said it is a very sad day for him. He is visiting with victims of the attack as well as with First Responders. The shooting left 59 people dead and left more than 500 wounded. Organizer of a white nationalists rally in virginia has been released on bond after being arrested on a perjury charge. The charge against Jason Kessler is unrelated to the august rally. In january, he alleged he was while Gathering Signatures to remove a city councilman. To assaultinglty the man he accused. Nikki haley has been reprimanded for violating a law limiting Government Employees political activity. Citizens for responsibility and ethics in washington said a warning letter was sent to her. They she shouldnt say she should not have retweeted one of President Trumps twitter messages. 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. Julia thank you. Uber gives a nod to investors for as much as 1. 5 billion 1. 25 billion. More on whether the plan will get over the results it wants and needs. This is bloomberg. Rlet julia this is bloomberg markets. The exact amount from something softbank has yet to be finalized. Does the plan to expand the board to 17 seats effectively end the fight between the investor benchmarks and former ceo travis clanick . A professor at the nyu school of business. Great to have you on. What do you make of this investment and do you think softbank can curtail the concerns on the board and its decisionmaking . I think what happened is the feuding investors, the former ceo, have come together to make this investment is possible because, in many ways, it introduces some cash into uber, but it also gives the early investors a chance to sell their shares. A lot of the employees will be the to cash out before Company Goes Public in 2019. It seems like a Good Opportunity to come up with a ceasefire. Scarlet and the plan is to go public in 2019. Were needs to decide whether it wants to remain in startup mode and go through market share or company. Nup cant you make the argument that by bringing on dara it has already chosen the latter . Arun in some ways, it looked like they were going toward a faster ipo and converting the current model to being profitable rather than gaining market share in going after the autonomous vehicles. Right strategy would be to try to own the transportation business, trying to be the first multitrillion dollar company. This is a massive industry , things are up for grabs here. On the other hand, that will take another few years of losing money, and i am not sure given everything that has happened, they can afford that anymore. Scarlet are they still a company in the sharing economy . Are they still considered part of that economy or has it moved on . Arun it depends. My definition is a lot broader than most peoples. I think it is certain and direction amazon in many ways is entering the space. Uber is certainly in the space of taking an existing industry and converting it, changing the business model, and also converting it into a smartphoneenabled Service Rather than an ownership thing. It would be under my umbrella. I think in a few years, that label will encompass so much of the economy that it will stop start of being meaningful and a certain way. Just before, you are describing a situation where effectively they sacrificed future growth opportunities, even if it is asking to move into the Autonomous Car region, to own transport. You do believe they have sacrificed it because of the other issues. What about the competition they face . They have a number of angles here whether it is the ethics or leisure concerns. The also you have the likes of lyft encroaching on market shares. Can they sacrifice that future growth and the risk that implies given what is going on around in the environment around them . I think the most important thing for them to do now is to sort of stem the losses that they have been facing this year. Julia they have a choice basically. Arun absolutely. They have to clean house and stable the ship and bring in a team. Ment i think over the next few years, what is probably going to happen is the industry will differentiate. You will have people who sort of dominate driven car transportation markets. You will have other people who dominate us on a mistress rotation. Cana do you think if you clean this up over the next 18 months, that will make them go we will not ipo and we can get fresh money in . Arun i think that is a very real possibility, especially given the employees have given a chance to cash out. It is incredibly complex. There are a lot of regulatory risks area there are a lot of making sure the company is ready for the public markets, even more so than a typical company. Nobody at this scale has really gone public before. Scarlet in dealing with so many different issues. Uber had to be steered through the under situation, making sure they were able to operate once again and defend against another lawsuit. Arun he was the right person for the job in terms of bringing the right level of stability. 11 situation is an interesting one because it is the first time an london situation is interesting one because of the first time i have seen them object to a company. In a british way, they are saying you are not fit and proper to provide this service someone else can. Scarlet it is like a moral opposition almost. The its an highlight growing battle between platforms and governments that is looming. Julia do you think it gets worse for uber that this is the thin end of the wedge or do you think this is as bad as it gets . Think in the u. K. Perhaps it will not get that much worse. I thinkuropean union, it will get worse before it gets better because there is a push back against large american platforms in general, like the battle lines are being drawn between the government and the platforms. You see what is happening with facebook. There is a certain reticence that any government will have to take on a platform that can sway elections. That is something to think about. Scarlet populist anger taking aim at all these new tech companies. Thank you so much, professor at the nyu school of business and author ofscarlet the sharing office depot tumbling as it tries to complete a transformation. Investors not convinced. Office depot announced plans to buy a compucom systems for about 1 million looking into an ugly sellouts. The company is trying to make transformation pivoting toward business clients to some degree. They have 1400 retail locations. It is now making this acquisition, it will put kiosks in each of these locations. Licensedhas technicians, the largest workforce of its kind in north america. They provide software and hardware to their current clients, which are 5. 1 million users at those business clients. But its different here for office depot is the focus more here fort is Different Office depot is the focus on the business and not the retail side. That diversification because the business is not going well. If you look at the bloomberg, we have the same sales here on a quarterly basis yearoveryear. They have been declining but the decline have been accelerating. At the same time they announced the acquisition, the company said sales in the quarter through september are down 7 to 8 . Store sales will fall 6 in the third quarter. That forget about the poor business. It also has to do with the hurricane. We talked about this yesterday. We will hear a lot of companies talk about the hurricane. For some of them, it is an excuse. For some, not. Florida is its biggest market and texas is its next because market. It gets sales in puerto rico. Scarlet you had to do something because the merger with staples did not go through. Julie exactly. Staples got acquired by private equities. Its sort of got the white knight officee depot did not get. Office depot is turning into the acquirer. Julia still ahead, an interview with the puerto rican governor on the debt crisis and Hurricane Relief great how much help release. How much help he is expecting. From new york, this is bloomberg. This is bloomberg markets. Trump visited puerto rico, where he offered assistance after Hurricane Maria , not just in cash but also debt relief. Vonnie quinn spoke with the puerto rican governor. She started by asking about the president s comments about wiping out the commonwealths debt. I was mostly talking to him about the hurricane in the storm related disaster and the efforts we needed. The efforts we needed and health care, for supplemental aid, and housing. The magnitude of the disaster was estimated at over 90 billion in puerto rico. I did listen to his comments and of course, that is the president s opinion. With respect to that, the government the puerto rico is in a title iii proceedings i cannot comment. Vonnie the president is known for doing deals and he said that exclusively. Do you have any hope that he might be able to step in and do something about this . About the 74 billion of debt plus whatever you end up incurring now. That focus right now is all of the assets and resources we need to get through the emergency to start the rebuilding process are in place. The president has been very helpful in those administrative decisions. Every time we ask them for something he has delivered. It also has to go through congress. There has been a lot of bipartisan support for us to get going, that it is one that is sustainable and has the necessary funding for puerto rico to recover and rebuild. That is really my focus right now. I am not really focused on debt issues right now. Vonnie let us talk about that aid for a moment. Mick mulvaney says it will not be a bailout that they are working on a 29 Million Dollar package. That includes a for harvey, irma, and even a for western wildfires. It doesnt seem like it would be julia donald trump is speaking outside in las vegas. Let us listen to what he has to say. Pres. Trump a job that is indescribable. They found room for many people. How many people came in . Today is just an incredible tribute to professionalism and what they have done is incredible. They never want to see it again, that i can tell you. Some were very, very badly wounded and they were badly wounded because they refused to leave. They wanted to help others because they saw people going down all over. It is an incredible thing to see. Tremendous bravery. The people themselves, incredible. People leaving ambulances to has to be all because they thought they were hurt even more so. The professionalism of the doctors in the medical staffs at this hospital and at other hospitals. You are saying the coordination you had with other hospitals john, say a few words. We couldnt be more proud of the community response. Every hospital took serious patience and took care of them well. We have exercised our disaster plan in las vegas, and it was rolled out flawlessly. Pres. Trump i have to tell you, and they seem very proud to be an american when you see the job they have done. And people that would not be around today are up there and they will be leaving the hospital in a week or two or cases even inome a few days. One in a few hours and you would have never believed that. I just want to congratulate everybody. It is incredible when you have done. We met quite a few people and believe me, they are very lucky to be here. I think the only message i can 100 . Were with you in fact, i invited a lot of them over to the white house. Said, if youre ever in washington, come on over to the white house and believe me, i will be there for them. The message i have is we have a great country and we are there for you, and they are there for us. Were not going to talk about that today. Not yet. It is a very sick man. He was a very demented person. You will know very soon if we find something. We are looking very hard. I am going over to the Police Department. The fact that they were able to locate that gentleman, get in there, they say in 11 minutes, whatever it was and he stopped firing because he knew they were coming into that door at some point. Incredibley did an job. The professionalism has just been amazing. I want to thank you all, and we are now going over to the police headquarters. Doctors, thank you very much. We appreciate it. Thank you. I am very honored by his comments. It was they use in a totally bogus story. It was made up by nbc. Total confidence in him. Thank you very much, everybody. Julia President Trump speaking there, visiting victims, the First Responders of those from the tragic events in las vegas. He was praising those responders. He was also talking about the people in the coming hours and days who will be leaving the hospital. Ofhink in general speaking how grateful he was about the First Responders. Was also asked a question about Rex Tillerson. He said he has full confidence in him. Story onceke news again, he has full confidence in his secretary of state Rex Tillerson. Led by nbc. Making the president is his way to the command center. He pointed out the message he wants to send to the wounded, those at the hospital, is that america is with them 100 . We will be following all the details as they continue. To go back to the Rex Tillerson comments for a moment, i know it was thrown out of the last minute by a reporter as the president was departing. It is interesting that he said he was honored by tillersons comments in which he said he never had any disputes. The gist was that he did not offer to resign. The president said he had total confidence in his secretary of state. I recall he said that about other high personnel in his administration who later on ended up moving on. Julia we talked this earlier will reset Rex Tillerson make the point of talking about theld trumps response to Affairs Going on and he said he created International Unity around the campaign. Andlso talked about nato their spending and that they of defeatingerge the Islamic State in iraq and syria. I been to go back to what were talking about there, he give further details. Clearly, there are so many Unanswered Questions about what happened. The investigation will continue and as soon as they get more information they will let us know. Scarlet including the motive. That remains outstanding and is something everyone is interested in hearing. We want to get more perspective. Were with bloombergs chris paul mary chris. Give us a sense of what you saw and learned when you went to las vegas on this reporting trip . Chr fromis a security standpoint, it was evident a lot was going on. Were checkingtels and running metal detectors by them. They did that on monday and then stopped last night. The initial fear was there might be some copycat acting, so they did that initially. Increased some of the agents in the hotel as well. We heard initially from the state department. We do not know the motive of the perpetrator. Do people feel safe . What were they saying about how ine they feel being being loss 8 las vegas at this moment . The big trade for the casino industry, point thousand people from around the casino industry, point thousand people from around the world. There is a somber move for sure. If you walked around elsewhere, it seems to be business as usual. It was not necessarily as crazy as the weekend. It did not seem to have an Immediate Impact on the business outside mgm properties, definitely light on traffic. Yes. You flew into las vegas and left it. Tell us about the air force situation. Security security was not bad. Weight at thethe gate, we were not allowed to go down to baggage claim to exit the building. I asked what happened. Said they did not know. The people were on high alert. Down for a minute and this person came up to ask and make sure it was mine. Cautious. Y more were they doing spot checks as they were going into hotels . That is one of the big Unanswered Questions of how many times the shooter in this case must have gone into that hotel get to the room. How did that happen . Exactly i have a lot of conversations with get to the co executives. Know, there is a debate in the industry. They have metal detectors at the casinos. This is theves said wave of the future and we will see more. Others say it is not practical just that and we are not talking about las vegas. Everywhere is a target. It is a big debate in the industry how far you could take that. Everyone is aware that everyone is a target now. Particularly not just about people walking in but people in the buildings nearby. President trump made his visit to las vegas today. Were people talking about looking forward to hear from him or what was the was it seen butso much as a distraction that people need to be mindful when the leader of the free world is visiting the city . We are excited to see him come. But that peoplethere is a lot of tae hotel, a very prominent building. I did not see protesters. Excitement to see him come. Questions of how we can be tougher security guys there. Did not want to adjust that in a press conference just now but you can be sure that will keep coming up. Solidarity. Thank you so much. While we wait for the press check on theets markets with julie hyman. Julie two days like yesterday that we have small games for the major averages. Check on the at the moment, all three on pace to close at a record. We have seen the nasdaq flirt at a negative today as well. We will see if it hangs onto this one point gained were watching in this session. One of the best and worst day, thes of the company got fda approval for the first generic coffees. Market exclusivity for 133 days. The 40 milligram dose of the drug, which is what he won , 3. 6 billion in the 12 months ended july 1 31st. Shippingt will be endlessly in the shares today. We continue to watch fallout from the hurricane. On the flipside, here is the downgraded today, analyst michael downgrading the sector. There are headwinds because of Hurricane Harvey and irma, so he says that is the effect here. In additional to that, they have fallen sharply in that is affecting the companies as well. Other stories have to do with hurricanes at least on a related asus and that has to do with puerto rico. We have been watching the bonds the in the wake of president s comment that the should be walked out. The damage was done at least in the bond market as we see a benchmark note falling to a record low. U. S. Ance companies in the have been trading lower and they have been proxies for the puerto rico debt situation. They have been trading lower throughout the day along with bonds. Scarlet weve seen the president saying something and then and 8 an official walking it back. To mark crumpton. Mark speaking of the backandforth, the secretary of state Rex Tillerson will stay on the job despite being criticized by President Trump for his diplomatic overtures to north korea. Is a strong ast it was the day i set that offer to serve as secretary of state. The president says secretary tillerson was wasting his time trying to make it directly with he considered resigning over the summer and referred to the president in a derogatory manner. Today, President Trump in las vegas said he had total confidence in secretary tillerson. Airstrikes on syria have critically wounded and al qaeda leader. 12 commanders were killed, russia has backed president bush , and alide since 2015 qaeda linked insurgents. The death has been reported falsely in the past. His turkeys president by side, the iranian president today claims they would insure borders in the region remain unchanged after the independence referendum in iraq. The referendum passed overwhelmingly last weekend was opposed by both iran and turkey. Both countries have censured to the borders with the Iraqi Kurdish region. Officials are launching a private campaign to encourage people to sign up for coverage careyear under affordable law. Open and moment begins november 1. The former obama official led by joshua peck, who worked on aca outreach, say their campaign will focus mostly on young adults. Global news 24 hours a day global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Thank you. Still to come, President Trump is set to make remarks from las vegas from the command center. He and First Lady Melania Trump were with family members of the the mass shooting. We will bring you that press Conference Live the moment it begins. Scarlet coming up, part of our exclusive interview with Stanley Fischer. His thoughts on the qualities needed to be the next fed share. Bloomberg. This is bloomberg. President trump just leaving the medical center, now speaking with First Responders and members of the metropolitan Police Department in las vegas. Andsing their immediate Effective Response to the events of sunday night. Sometime in speak the next 15 or so minutes to talk about further details of what we know at the command center in las vegas. The moment we get that, we will bring it to you. Lets move onto the fed and the economy. Standing Stanley Fischer talk talked with tom keene. President trump had apresident t of candidates to lead next year. The list includes chair yellen and National EconomicCouncil Director gary cohn. Stanley fischer talked about the Decision Making process. This is the choice of the president and the administration they decision decided to speed be the be the next chairman . Probably true. The basic idea here, if we have turmoil in america, the economic theories, ain our from discussion over the coming years. Of the systemion is very large. Time, to find all the divert from the rule, because anticipate thet many strange things that can happen in an economy. Even three in a row, which is not a huge surprise but it happened. I think rules are a good guideline to the basic part you are taking but i would not run Monetary PolicyMonetary Policy on the business rules where you strictly go down and look at this equation and say that is it, lets get rid of the central bank. Years ago and your first book, 1936. A fed share alike chair which are considered the canon today . I should read the whole book. , itchapter on what happens gets too low. It is worth reading today. Up andwe have a new set place in nonmonetary fed chair who has a vice chair of your capabilities or chair yellens capabilities or do we need to . Ave monetary expertise as vice chair, having the bacon basic economic theory, theoretical knowledge ending experience, it increases your selfconfidence about what you are doing. I doubt it is essential. Bute are very smart people is it helpful, yes. 1998, you enjoy the struggles the next chairman, chair yellen to be reappointed, many people talking about that, what is the difference with people like you and the shock of the moment or set of shocks versus a normal day at the building . The difference is is it something you want to do oil of the market take care of it and if you decide to leave it to the markets or to wait a week and see what it really means, those are things which depend a great deal on the experience you have when and your understanding of how the markets work. The initial reaction is something that happens in closed markets. That is terrible. Tom you had a wonderful specie a day and talked about never say never events. What kind of chairman do we need to be ready for never say never events question mark events . What kind of chairman do we need to be ready for never say never two,s question over the nextr someone who has the capacity to. Ead lead a Large Committee i think the question particularly for the bloomberg we have passive stability have move forward, and we do you have confidence that those strategies can be done controloth glide path by institutional forces we have, todo we need junk conditions come . We always need to be still for the possibility that we need to change course drastically. October 2000 eight, the fed changed courses drastically. So you have to watch and wait. Never believe yourself that you can stand those forever. You cant. The timing could not be more perfect. U. S. Central bank has been working to ensure that ulations are tailored small banks. Plenty more to come from new york. Scarlet it is time never options insight with julie hyman. Julie with me is the head of equity derivatives at oppenheimer. Thank you for coming in. Our other options guess has been dispersion. In other words, we have talked about a very tight trading range and low volatility for the big market industries. Confronted it sort of abandoned volatility bradley and focused more on individual stocks . All your ever since the election, stuck relations remain and that is providing a lot of opportunities. It longs to work or general markets held up by rotationoppo. And the money is going somewhere one sector is being sold and another getting bought. Question im to come up with strategies for sectors for individual stocks rather than. Rying to shave volatility we are trying to stay relevant right now focusing on single stocks, long and short ideas. Especially earnings now. Lets talk about one of the opportunities. Stay relevant right now focusing on why are you not bullish with this stuff . Off the smallcap rally in the financials rally, 1 a couple of weeks ago. And report the end of the month, data, went take the think 12 months across the businesses, just ahead, the stock should work itself lower. To buy a 210 190 foot spread. Cc bond yields come back. Is this a stock that will neil,ue to decline the by within the group, everyone has capital one. And we like that that here specifically. Stocks go over in this market. And 226. Thanks for having me. The increasing dispersion in the market. Thanks. Family members of the victims of sunday nights mass shooting and Law Enforcement and First Responders. Actually, he hopes a number of people will be leaving in the coming days. In the coming hours. A steady recovery for those involved in tragic events of sunday night. We will be getting more details from the president when he holds that press conference at the command center in a few moments. Any kind of new information they have learned about the shooter, the president has been forceful in saying they are digging around for any kind of information. Still no clear motive. Any kind of insight he can share with the public will be something listening for when he begins speaking. Many unknown questions at this point. We will bring you that live when it begins at from new york, this is bloomberg. Mark it is time now for first word news. Mick mulvaney says puerto rico shouldnt expect a federal bailout even after President Trump spoke of the need to wipe out the red ink as part of the island passes recovery after Hurricane Maria. Thing could money for puerto rico p are mulvaney adds we will not be offering a bailout for puerto rico or for current bond holders. Cochairman of the senate and the Intelligence Community says the russians hacked into political informationlease here in the president ial election. Statusublican gave a report and investigation. The probe began in january. Dozens of intelligence and thetical officials assess extent of russian interference in last years election. President Vladimir Putin says russia may extend a deal with opec to curve