Later on will be paul krugman slamming germany. Question,ssic german we want growth but stay within this pact we agreed to. In the u. S. , personal income and spending at 8 30. At 9 45, chicago purchasing manager index and then the university of Michigan Consumer confidence. Heavy data day, given that it is the friday before labor day. Earnings, big lots. Markets in india are closed fora a hindu festival. 8 00. On indias gdp at european Foreign Ministers meet in milan. Wonder what they will talk about. Westminsterl be in today. I will take this to the traffic desk with scarlet fu. New rochelle and tarrytown. Hes staying overnight to attend a wedding. Scarlet fu in the traffic chopper. The traffictan, shuts down, what do you do in the suburbs . They shut down certain streets. You have to get around everything. Were warned, north of new york city as the president has a little on his mind. That on bloomberg surveillance. Lets look at the data stocks, bonds, currencies, commodities. Futures about 2000. A little green, friday lassitude. Eurodollar is the major story, what has not happened. It has not moved. Nymex crude, 93, 94. 95. 02. 1205. Ruble, weaker. Brent, 102. 81. Here is the general trend of russian weakness over the past two years. Heres the ugliness preukraine and then we get better. Looks like there is a settlement and in the recently come there is a spike up in the last two days. We keep expecting this to scare Vladimir Putin. The answer we keep getting is that this would scare somebody who is running a liberal democracy and is really worried about the domestic economy. That is not what putin is doing. This is removed from the debate of the weekend . The markets speaking about the tensions. Lets look at our front page. Plenty of tensions. U. S. Joining europe in condemning russia over ukraine. Nato says 1000 Russian Troops have joined with prorussian rebels who have launched a counterattack. Ukraine calls it an invasion, no one is calling it a war. Military action on a second front. Says russiaama faces consequences but he is rolling out a military solution. He is ruling out a military solution. The yuan is involved, the u. N. Is involved, sort of. I assume russia can block anything as a member of the security council. Playing with words. Our second story, just cr ossed. More revelations about the hack attack and at five things, including jpmorgan. On jpmorgan lasted for several months. They used programs designed to penetrate the corporate network. Michael riley and Jordan Robertson for bloomberg. This is a big story. If theyve been stealing data for three months and they caught it in a routine check, the question for jpmorgan is why didnt they have more routine checks. This gets more and more embarrassing. It makes them look like a target. The russians know that my children are using uber in an uncontrolled fashion. They might know but they are not siphoning off money. They are sitting on your data, expect a no requesting action soon. Tmobile appears to be on the auction block. Deutsche telekom is going to sell the number 4 wireless carrier in the u. S. If the price is right. Purchase telecom deutsche sell. M needs 35 to forhats the import american wireless . We have been trying to get telekom to say what their plans are. After it has been made clear there are not sales to other carriers theyre not going to run tmobile were going to have four strong carriers in the u. S. Let me cut to the friday before labor day. Picturnkguy with the shirt john legere work for sprint . This is a september conversation. Those are our front page stories. Our top story, the geopolitics of the summer. Not iraq or syria, ukraine and russia. 1000 russianer troops on two fronts, donetsk 0 miles south. Hans nichols is in berlin, ms. Merkel is front and center. What will chancellor Angela Merkel say to mr. Putin in the next conversation . She will ask for clarity. Merkel, at the beginning, she was a translator and an interlocutor. Now shes become a critic of putin. Does thaton is, undermine her ability to broker some sort of diplomatic solution . That might be a moot point. When you look at southeastern ukraine, diplomacy seems a far way off. There is going to be a lot more fighting before there is any resolution. In the last 24 hours, more headlines about nato. Does nato have any power here . Do, nato cancan assure other allies along russias western front. Estoniamove troops into and into poland. Their will because for that. They have some and and emergency meeting at nato headquarters. Theres an eu Foreign Ministers meeting taking place right now in brussels. Tomorrow, all the eu leaders get together in brussels and calibrate their response. There are likely to be new sanctions. But will these steppedup sanctions or will they be adding a few names to list . From reading the german papers and being in touch with folks here, it seems that no one is talking about massively escalating sanctions on russia and the coming days but there is likely going to be an incremental change. Important context. Were showing pictures, nato images. Theres some dispute over whether those images are authentic for stop lavrov, foreign minister of russia, said they came from a videogame. Some diplomacy will be going on. I was in minsk earlier in the week. When nato releases satellite images and then the second or third most powerful man in russia says they come from a computer game, no one is speaking the same language and we are a ways off from a diplomatic solution. Henry kissinger said the problem with europe is he does not know who to call if she has a problem. With the ever shifting constellation of who is in charge, who do we call in europe about this . Kissinger has a great point. Italynow, you call rome, has the sixmonth rotating presidency of the eu. And then you call berlin to talk to Angela Merkel. Ier, the foreign minister of germany, is trying to play a role. Diplomacy is only a valid option as both sides want to stop fighting. What we have seen in the last 24 hours, the rebels want to continue fighting and ukraine wants to continue fighting. The pharmacy seems somewhat moot. Diplomacy seems somewhat moot. Hans nichols in berlin. The news from ukraine. Whether escalation, incursion, or invasion the days are getting shorter across europe. To steal from game of thrones, winter is coming and russia controls oil. One of the worlds experts on oil flows, Francisco Blanch with bank of americaMerrill Lynch. People say do not worry about this, i do not buy it. Should we be concerned that russia can turn off the spigot to a select part of europe . Russia can turn off the spigot, period. Russia controls 30 of european gas supplies. That is a huge amount of gas. And certainly i think as big a closer to the a few we are still a month months away the pressure is going to increase demonically. Back to your point, it is not clear what the intentions are on the russian side. As we get to the european winter, those rushers could build. You are so good at the pipelines. Theres a pipeline out of Northern Iraq, it end s up in turkey. My geography fails me. Where are the pipelines in europe . In ukraine . Ukraine, most russian pipelines go through the ukraine. It is a gas issue, not really oil. Russias oil comes through that north of the country into the baltic. Theres no oil issue. Longerterm, some European Countries are more efficient. Ukraine is very inefficient. There any indication that longerterm European Countries will start improving efficiency . Europe is a very efficient user of energy. For many years, urokinase for many years, europe had a shortage. Like the u. S. Not like the u. S. With shale. The issue is dependency, that has always been russias leverage. Does putin care that he needs the money . Russia does not have a current account deficit, russia has a large central bank with big reserves. No immediate pressure like it would be in a place with argentina. Francisco blanch with Merrill Lynch. Isdollar general says it committed to buying family dollar, even after its 9 billion offer was burned in favor of a lower bid from dollar tree. Following Quarterly Sales that fell short of estimates. Malaysia airlines saying it will employees,ost 1 3 of almost 6000 workers. Part of the overhaul expected since a pair of air disasters. Seats have gone empty as a flyers lost faith in the carrier. A new ceo will be higher. Something disappearing from Abercrombie Fitch, planing to drop its once trendy logo, the moose. Amid falling sales and more teenagers shopping elsewhere. New details in the hacking attack on jpmorgan. He could have been going on for months. We talk to the reporter who broke the story. Surveillancerg on bloomberg television. Streaming on your tablet, your phone, and everywhere else. Good morning, bloomberg surveillance. Season isop, the over, the giants beat the patriots. Eli manning here, in the loop. The new york football giants. On bloomberg television. It is bloomberg surveillance, i am tom keene. Scarlet fu and brian greely, thank you. Adam will be back with us when the leaves start to change. On tuesday after labor day. Brendan greeley . New information in the probe of Russian Hackers to target five banks in retaliation for government sanctions. The attack on jpmorgan said to have started in june and continued until mid august. Mike riley broke the news about the probe, like you breaks everything. He joins us from washington. It and how didss they catch it . They got lucky. Through a routine scam. The mind blowing thing about the attack is that this is essentially the digital equipment of fort knox. They have 1000 people, some of the best minds in the business, who guard their network. The idea that these hackers could sneak in in june, lay layers of malware throughout the network, harvest gigabytes of data, and not get caught get caught only by a stroke of luck in midaugust. Pretty amazing. Sounds like the digital maginot line. The if a routine check caught it, should jpmorgan be running routine checks every day . Scans onty teams run all sorts of things. They can get strange activity and check it out. They regularly go in and look around. Should they run them everyday . Maybe. The bigger question jpmorgan is 200ng is why is the million they spent every year on equipment and people, why didnt they get it . It seems like an Angelina Jolie and brad pitt movie, was Checking Account violated . They got married, did their Checking Account violated as they wrote checks in france . We dont know much about the data, except that they were harvesting data that includes information that would go through the web interaction that customers have with the bank. That could include bank account information, passwords, other things. Unlike target, which was not in control of what was stolen. What was stolen was basically itdit cards, jpmorgan thinks a sickly is a little bit more in control of the situation. What was stolen was jpmorgan Financial Data about customers. They are watching this carefully but they have not pulled us what it was. Target immediately sent out letters and told you how many customers were affected relatively quickly. Amygdalae, target was a little unusual in that. We have not heard anything about the number of customers affected. An information vacuum. Do we know whether the Russian Hackers wanted to be caught . Maybe they were trying to send a message . We do not know. Whether they wanted to be caught or send a message, it could be. The interesting thing is that it is very hard to tell who does these kinds of acts in cyberspace. Is that jpmorgan was telling other people, these are experts, consultants it was bringing him to control the security crisis. It was telling them it was not just Russian Hackers but that they were statesponsored. That can meet all sorts of things, it does not meet its actual russian guys in army uniforms. They could have gotten a hand in things. A. M. , i expect you break Something Else on this story by 9 00. Our twitter question of the day, should the u. S. Engage in cyber offense . Tweet us, bsurveillance. Assuming that the russians engaged in cyber offense. Geopolitics, u. S. , russia, sparks joins us from the eurasia group. Well be right back. Good friday morning, bloomberg surveillance. A week from now, the jobs report. We will go but need the data. Scarlet fu and brendan greeley. The morning. Mustread. Morning paul krugman and the new york times. Always a conversation starter. Krugman on france, he disagrees with the gloom. How do you pronounce it . Germany is in corrigible. This is well. With us, Francisco Blanch of think of americaMerrill Lynch. Intorope is pushed recession or slow down by russia and oil prices, that is not good for france . Is austerity the wrong prescription . Germany has a strong interest in keeping inflation low. This is about protecting european pensioners. Groupw there is a growing of pensioners, an aging population in europe. The pensions of those people, they are voting ien bloc. Germany is pushing too hard and austerity is becoming a problem. Or france too much austerity is not a good thing. Where it is austerity come from . Each nation or is it a policy of brussels or frank for . Or frankfurt . It is a policy of brussels and then out at the international level. It is supervised by brussels. If you continue to compress budgets, you will push the economy down. Oil elevated a little. On aat effect will unrest rack in syria have on Global Oil Markets when there is no shortage of u. S. Shale gas . From our World Headquarters in new york, good morning, everyone. It is has been a beautiful august in new york city, a perfect night last night. We welcome you worldwide to bloomberg surveillance. Lets get to the headlines. Heres scarlet fu. At least three Million People have fled syrias civil war, and the United Nations says more than a third left in the last year alone. That means the threeyearold conflict has forced one syrian in eight out of the country, more than half children. As gaza residents start to repair the damage from seven weeks of fighting, aid is starting to reach the strip. The truce between israel and hamas is holding, and some european nations are offering to help enforce the ceasefire. The 9 11 memorial in new york will be open at night the date the attacks are commemorated. It will be closed during the day for remembrance ceremonies, but open from 6 00 p. M. To midnight as two lets are beamed into the sky. Those are your top headlines. It is still difficult to go down there. I was down in that area three days ago or so. It is still difficult. I havent been any closer than the park sense the day of september 11. Yeah, for those of you worldwide, i can hardly explain the challenge it is for so many people in new york city. Lets turn to a data check right now. Equities, bonds, occurrence success, commodities, im watching printing 37, decidedly weaker russian ruebel this morning as well. Syria unmentioned in the first part, as we focus on ukraine. Iraq, if you can figure out the borders, makes up in the vicinity of 10 of opec al . The united arab emirates, theyve been attacking separatists in libya, they make up 10 . Sum it up to 30 of chaos, such is the al calculus of 2014. We have an expert on the al mess were in. Let me start with the money question of the moment. Im sure you get it 10 times a day. Why isnt brent at 120 a barrel . Well, tom, one of the key sued to look at is how sandrabe kuwait have been reacting to noise. What i think is real interesting is the past three years, since opec broke down the country quotas, theyve been really reacting to the price. Whenever prize went up saudis stepped in with more supply. When prices went down, they brought back some supply. Its nny kind of way, led to more al prices. Within that discussion, does the United States do the same thing as saudi arabia with wheres the al coming from, north dakota . Are we like the new saudi . We are not, tom. Saudi arabia, kuwait, theyre a cartel, and they try to maximize price. American producers, we have thousands of people drilling al in every part of the country. What these guys are trying to do is maximize profit today. Remind us of the type of al we have here in the United States. Well, this crude is ultralight. In fact, we have super light crude, which prices a lot of gasoline. That compares to a much more much heavier and sour crude, which is made mostly produced most until saudi arabia, kuwait, which is more diesel and residual fuel. Its slightly different types of crude. The equipment the world has right now is heavier crude. Well, certainly we have well, i think its more the u. S. The u. S. Has all the equipment to refine the heavy crude, while the rest of the world has equipment, so we have a big mismatch, because we were not prepared for bringing this light al . We were prepared to continue importing mexican heavy, and now we found all this other. I love al talk. I have no idea what he just said. Heavy, light. Im so relieved. Until the last two years, saudi arabias only geopolitical job has been to help manage price stability in al . The white house is looking to it more and more to take on a political role, which makes its job of maintaining the price of al more and more complicated. Do we have any sense that saudi arabia is capable of maintaining these now dual roles . Look, i think geo politics is a whole separate matter. As you know, the saudis present a different part of this line to iran, which, of course, is shia. So i think its a very complicated issue, but at least theres centuries of hatred there. Im not sure if saudi is always going to necessarily represent the the option the u. S. Wants to purr sue. Can the islamist state just go out and destroy pipelines . Are you up at night worrying about pipeline a or pipeline b taken out, boom . Im a little worried about that, but frankly, the is lamist state is operating under a part of iraq that has less al , so theyre operating in the northwest of the country. Versus southeast. Versus southeast, which is where most of the al is. Im not so worried about it. I think its going to be really hard to enter the shia territory in iraq. They found a lot of backing by iraqi sunnis, and those are mostly in the northwest. When you look at posturing of politicians, is it just all about l in the back drop . Do you just say this is all blaster and its all about hydro carbon . Well, al is so important to the economy. If we were to lose a large chunk of supply, a price spike would send us quickly into recession. Same with russia. Theres a lot of this debate about gas supplies into the winter in europe, theres a lot of energyrelated talk, because its such a sensitive issue for consumers. I want to get back to the islamist state. Are there any levers that the International Community has to cut off their al revenue . Is there any way we can cut off that source of funding . From my understanding, the islamist state is actually smuggling al , so its kind of hard to actually bring down those revenues. In fact, the is lamist state is a very wealthy terrorist group. Theres big numbers going around in terms of making noise just from what they captured. Let me bring up a chart i did it up 10 years ago. This made a big splash, thanks to the Federal Reserve bank of minneapolis. This is inflationadjusted saudi al back 60 years. You can see the nonmove, opec, the collapse in 1986, and up, up we go. Scarlet, that is the emotion, inflation adjusted, of what were living. Right there is where brendan bought his rabbit diesel. I have a passat diesel. Excuse me. So with brent trading at 103, is there too much complacency being priced into al . I think saudi still has buffer to react to additional supply losses, but were getting close to the point where we loosen the big country, theres not going to be enough room to make up that shortfall. In some ways, yes. But then remember, monetary hesing, all this big currency fluctuations, theyve actually kept asset values pretty steady, and al has also been very steady. When you talk about complacency, this is about volatility. Volatility is low, because price movements are actually very, very low, and the market cannot price anything but recent volatile knit my mind. Francisco, thank you so much, a primer on al . Right now, brent crude, 102. 80 a barrel. Coming up oprah to george w. Bush have taken the ice bucket challenge. The a. L. S. Has been flooded with donations. Well show you how this compares to other popular fundraisers for deadly diseases. Thats coming up next. People in ukraine once called themselves russians. These headlines are extraordinary. Over at the bloomberg terminal, this is decidedly breaking news, as mr. Putin speaks on ukraine. Scarlet, help me here. There are too many headlines to even begin to discuss. Putin says russians, ukrainians are one people. And that they share tragedy. Crimea is a sacred place. Hes drawing on the emotion between russia and ukraine. He says ukraine actions remind him of world war ii. I should point out that they were completely invested by nazi germany for a solid, i believe, two years in the middle of world war ii. These are extraordinary headlines. Fighting has continued in the meantime. Hes right. More ukrainian troops have entered russia than vice versa. He also says its easy for troops to get lost on the ukraine border. Hes just making this up as he goes along. His audience is probably russians more than americans like us. Yeah, it has to be taken in context. Well, there are the headlines. Francisco, help us very quickly here within this perspective. When you speak to Merrill Lynch in europe and in russia, what is their lead point on Vladimir Putin . He has a major problem five years down the line. With the amount of revenue that he needs to keep his social programs in place he cant do it at 100 . He cant do it. Do you have a number per barrel Vladimir Putin needs . Right now he needs about 105 to 110. If al doesnt grow by 10 a year going into 2020, hes going to be in trouble. Vladimir putin needs 110 a barrel or so, that from francisco. Lets shift gears here. In light of the massive success of the ice bucket challenge to raise money for a. L. S. , we look at the numbers behind the money raised for diseases versus how deadly those diseases actually are. The point here is that there are big gaps between the diseases that affect most people and those that net the most money and attention. A. L. S. , you can see there in the bottom left hand corner, kills about 6,800 people. Thanks to the ice bucket challenge, it raised 23 million since late july, more than 10 times the amount raised last year. Heart disease kills most americans. 600,000 people dying, but raised only 54 million. Breast cancer raise as lot of money, killed 41,000. This is one of the best charts youve ever done. And rachel, who found it for us. The takeway here is that viral means arent necessarily the best kearts of where we should target our charitable giving. But this is a classic cranky article. We dont do almost anything based on our rational appreciation. Risks. I dont think its unreasonable to think that different organizations, its up to them to figure out how they can play on public sympathy to pull in donations. Create viral videos. And theres another set of research that that chart doesnt show, which is that the Ebola Research which is now slowly bearing fruit, that was not encouraged by any commercial farm companies. They were paying money basically because they saw it as a potential bioweapon. As an aside, the World Health Organization is really coming up with a plan, and their headline number is 20,000 people could be exposed to the mutating virus that isee bowl a. Before the outbreak can be contained. Small Security Agency within the pentagon was right. Ebola is a security threat. Interesting. What else did you learn from your chart . I noticed the prostate, cancer divide there. I just thought it was fascinating that theres big gaps, especially when it comes to breast cancer. You can make the argument that all that fundraising has helped prevent so many deaths. People contract it or they get diagnosed with it, but they recover from it. At the end of the day, you will all of those different charities to go away that is the trajectory were looking four. Very good. Coming up on surveillance many retailers say brick and Mortar Stores are dead, but onlineonly Companies Feel otherwise. Well discuss the landscape. Adam johnson is off for the week. Lets get you company news. Apple sending outen have i tation for a big event on september 9. It will debut two new iphones and a wearable device, according to people familiar with the companys plans. The wearable device would be apples first new product isnt ipad back in 2010. Vivendi will enter exclusive talks with telephonica. Theyve made a mostly cash offer for the brazilian broadband offer. And google takes its rivalry with amazon to the skies. It is developing drones that can handle deliveries. The move would put the search giant in direct competition with the ecommerce giant. This is called project wing, the latest company news from the files of bloomberg west. We heard from mr. Putin moments ago. Now it is natos turn. They just simply say Russian Troops have crossed into ukraine. Just more of the back and forth as we go through. It is also alarming how direct these words are getting from rasmussen, from the white house, how much theyre actually beginning to describe reality. You alluded world war ii. Forget about all that. Putin alluded to world war ii as well. Just the way that putin is talking is sounding less and less like more and more like somebody from the cold war is what its sounding like. Yeah. Hes appealing to emotion right now. All right, we live in an amazon world where many retailers are shutting brick and mortar to focus on their online presence, but some webonly enterprises are Opening Physical Stores to bridge the virtual and reallife shopping experience. Birch box is the latest to do so, opening its first shop in soho this summer. The coc. E. O. Is here. Welcome back. I was wondering why Successful Online business would need to go the brick and mortar route, until i read a stat. 95 of all Beauty Products sold are still purchased offline. Thats incredible. Right. Its actually the reason it motivated us to start birch box. The majority of transactions are happening offline because people to want touch, try and feel. In order to bridge the gap, birch box started to allow consumers to touch, try and feel the product before they buy it. Our traditionals are you sign up, pay 10 a month, you can try Beauty Products that are personalized for you, and then you can purchase fullsize versions in our shop. Is this proof that a Retail Company cannot exist exclusively online . I think you can, but there are so many reasons to go offline. In our category, so many women are shopping there, and what weve learned in the past four years, our model is really changing the way people think about their interest in shopping. Were actually taking women who are not engaged in the category and getting them to shop. Why not offline as well . This morning as we go into a threeday weekend, im all over the kiss kiss shapeless cream color. Not for yourself. Not for myself. As we look at your racket, im not editorializing, is your competition bloomingdales acclaimed cosmetics floor . Its just across 59th street. Or is it sephora . Who are you battling . Neither. Were battling nonconsumption. Were getting women who were not interested. They are not currently excited by the way retailers are merchandising beauty. Its overwhelming. When you walk into the bnch box store, youre going to feel a totally different experience. Products are merchandised logically. Are you looking for cheek, lip, for something specifically like second day Hair Products . Thats how its merchandised. Im just my line of the day is beer battling nonconsumption. Im curious about this point about the store. Im reading here it has a verdict wall merchandising strategy. You can compare different types by brand. That seems like such an obvious thing to do, but it makes me wonder, thats not the way its done in bloomingdales, where product brands have so much power s. Your model stripping away the power from the product brands . Its just a blip. Think about it as our entire store is like an end cap, and its really reflective of how Consumers Want to shop and what brands are seeing. Consumers arent saying i specifically temperature brand, theyre just saying, i want a great red lip or mascara, and its actually giving brands the opportunity to acquire a new customer who never heard of them, because theyre coming in and saying, hey, what is this brand . Its beautiful. I would have never found it on my own, and now theyre seeing it as a Customer Acquisition tool. How much does square foot did sephora or bloomingdales going to make . Its like drug money. Is your physical store profitable . Do you want it to be . Of course thats the aim. The reason we started the store is because after doing some tests of popup shops, we saw there was a clear path to profit ability. The big difference it is not just fullsize physical retail, you can actually build your own birch box, which is a huge driver. Make your own box . And you can book services. For 30, you can get your hair done makeup done. She has a few shameless plugs in there. Dont call it a cute box. Thats condescending. You need the ultimate lift eye gel. No, they have birch boxes for men. Do you know anyone who uses birch box . No, i dont. Not yet. The great thing about birch box for men, you might know somebody who uses it, but its just getting shipped right to their door. As we broaden this out, what is the lesson that retailers were struggling to fend off amazon and online competition can learn from you guys . Bnch box, how do you reconceptualize the store . One of the big things amazon is not is a brand that has a personality per se. So i think one thing thats really powerful about having an Offline Store is when you have a personality, a brand, consumers can describe almost as a person, you can manifest that into the physical store. People who come in who are subscribers, they feel like near disneyland. This is giving them a great big hug, and it reinforces our relationship. We also think its a great tool. But for us, we can basically say what weve learned online, translate it offline, and hopeful what will were learning offline translates. That 95 is staggering. It is. I guess the takeway is amazon used to get a personality. I was in sephora the other day. The line was like christmas eve. Why . Thats what im chewing on. With females. Buying gifts. Its like out the door. Katia, thank you so much, coc. E. O. Of birch box. The physical store in soho as well. Lets get a report. Russian ruble reaches 37. That is the headline this morning. Well keep new touch with all the headlines you out of youre crane. Coming up our twitter question of the day. Should the u. S. Engage in cyberoffense . Tweet us. There will be more consequences. The russian ruble plunges versus the dollar. The west considers intensified fighting and outright russian incursion in eastern ukraine. You spent the summer in the great bull market. Should you load the vote Tuesday Morning . If twitter and facebook, if they cant figure out ads, how is snap chat going to do it . Theyre going to hold down their finger. You have to keep your finger on it. I was using snap chat last night. Good morning, everyone. You doubt me, i was using snap chat last night. To do what . Going back and forth on economic analysis, personal income, personal spending. It is august 29. Good morning. From our World Headquarters, im tom keene. With me, scarlet fu and our guest host this hour, Michael Regan joins us, editor for bloomberg stocks as we look at his great bull market. Mr. Putin speaking with shocking candor and directness, and then nato out with headlines. Nato says russia maintains thousands of troops near the ukraine border. That was not news, but that immediacy here, scarlet, as we go back and forth between putin comments and rasmussen. Putin is talking to russians when he makes his comments about how ukraine troops should have a chance to exit the conflict area and border issues can be solved easily. Before we get to a map here, and for those of you, the story of the week is two fronts in ukraine, including the important Southern Front near the sea of isof. The scary thing is the language. You have rasmussen being more and more direct and putin being more and more unhinged, talking about how hard it is to find the ukrainian border. Because they are one people, the russians and ukrainians. Putin says theyre one people. Thats drawing to the emotion. That gets your attention. Lets get to our morning brief. The regions Unemployment Rate remained close to a record. It increases pressure on the European Central bank. The e. C. B. Has run out of ways to help the euro area. However, without running excessive good luck. Good luck to you, sorry. We get a read on personal income and spending. 9 45 a. M. , and the university of Michigan Confidence survey at 9 55 a. M. A lot of data on the last day before labor day weekend. Earnings just wanted to know this morning, big lots and markets in india are closed for the hindu festival. However, we will get a read at 8 00 a. M. Today. Good amount of data, and the jobs report will be one week from today. You always come in anyway. Im not up on monday. Im writing about crossfit on monday is what im doing. Crossfit . Shameless plug. Hackers found flaws in a j. P. Morgan website. Bank Officials Say the tech probably originated in russia. We will keep you apprise of the of the details. T mobile still on the selling block if the price is right. Deutsche telekom is willing to sell it, but it will take a valuation of 35 a share. Thats according to a person familiar with the matter. T mobile rejected a 33 share bid from the Group Earlier this month. And something is disappearing om Abercrombie Fitch clothingline. They plan to drop its logo. Teens want to shop for experiences rather than clothing. That is the latest news this morning. New developments in the probe of Russian Hackers who targeted five banks in retaliation for sanctions. The attack is said to have started months ago in june and to have continued uninterrupted since midaugust. The bloomberg reporter broke the news about the probe. He now joins from us our washington bureau. Mike, several months this was going on. Especially considering the kind of Network Security that j. P. Morgan and other big banks have created, i mean, this is a digital fort knox. They basically buy every product on the planet. For hackers to come in the front door, be able to get into the network, access the data centers, steal big abeets of data is pretty incredible. Theres always attention between products you can buy and procedures that you can put in place. Is it fair to say j. P. Morgan bought a lot of products but didnt have the right procedures to catch things . They certainly bought a lot of products. Like any big bank, they spend so much money that they basically suck up anything thats on the market, and youre right this is a very robust market. There are lots of people selling lots of tools. Did they have the right procedures in place . Thats a good question. One of the things that its clear the hackers did was use unknown vulnerabilities in the applications, but these are actually customized applications by the banks. Theyre things that banks build themselves. One of the problems is that those customized applications usually arent stress tested, so its really not that hard to get a zero day if you have the right information on one of these applications. The trick is getting the right information, and that suggests some amount of reconnaissance bihacers. What does it mean and why is it significant . Theres a flaw in a piece of software thats not known to anybody except the people who found it, in this case the hackers. We cant really be defended against. These are incredibly valuable ieces. Does it go to analyzing the code and that you can use then to open up the software . Mike reilly, Bloomberg News, thanks. Go get on the phone, if nothing else. It is our our twitter question of the day. Should the u. S. Engage in cyberoffense . Should we be hitting back . If we hit back, is that cyberoffense or defense . We do not have the game theory down for this yet. Well, tweet with us your answers. Heres the most stunning headline out of the ukraine in two weeks. It leads to us our guest host this morning. This is from nato, rasmussen repeats nato pledge, ukraine to ventually be a member. It is certainly for the russians, the idea that ukraine might slip fully out of orbit and join the european institutions, but there is a big difference between e. U. And nato. I agree with you this is a big deal, because some people are floating a possible solution, maybe ukraine moves toward the e. U. , but nato, it remains out so its technically neutral. This is a big statement. The u. S. Is always nato. Does washington have any control in 2014 over the next dialogue that could infuriate mr. Putin . I wouldnt say that the u. S. Controls nato. Im certain theres coordination between washington and tornado. As we go into this weekend, this is sure to inflame mr. Putin and the people around him. Am i right . Yes, but i think hes fully inflamed. I think the stakes already couldnt be much higher for mr. Putin. But ironically, this is the exact thing he wanted to avoid. Its been to avoid nato expansion. Is this the one threat that actually carries weight with him . You said it in the last hour and you had it exactly right. Hes employee viewing. Putin is employee viewing, playing for time, looking at the chess war, saying he probable cant win the larger game. Hes scrambling for a stalemate, which means keeping ukraine unstable enough to make it a neutral buffer zone. But the harder he pushes, the harder it becomes for him even to achieve that limited objective. Can dethat . Can he hold on to instability . Hes done this in georgia. If you can create a region on a border, you can make an entire state untouchable for nato. Do you think he can pull that off with ukraine . Well see. The georgia conflict lasted five days. This has gone on since last november, really, and its probably going to go on a lot longer. He can certainly keep the region unstable. He cant destabilize the entire country. I want to you compare and contrast. I said this to a second grader last night. When i was in second grade, we used to get under our desks, god knows why, and they do this five alarm, air raid thing. What is the difference of this border tension with europe now versus the real or silly fears that we had a generation ago . Well, this is still a limited conflict. I think thats why youre seeing them move in a very measured way on sanctions. Theyre trying not to send the volume up to 10 all at once. Theyre trying to slowly ramp this up to give people time to realize maybe the pushing strategy is not really the way to go here, but hes not taking the off ramp so far. Great to have you here today. And eliminate conflict, the editor at large at Bloomberg News, thats why the stock market doesnt react to this. We did stumble a little bit yesterday, but that comes after three days of gains. Theres shortterm reactions to developments, these big geopolitical events, its very rare to cause prolong weak nnocents market. We talk about banks being attacked in cyberspace, but otherwise at least what weve seen so far is not the type of thing that really would ever cause any sort of longterm problem. Mike, great to have you here. Weve got a lot of bug market talk to do. As we look ahead to the rest of the hour of blood vessel surveillance, some people say war doesnt stop business, but is it true . We will discuss after the break. We will discuss the markets, whats happening around the world in russia, ukraine. Futures up five, dow futures up 38. If the price of something drops 50 , it will need to rise 100 just to get back to where it started. Its the anecdote that mike regan uses in this weeks column on the s p 500. We may be at 2,000 in the s p, but many sectors, mike, are far from alltime highs. It made me curious. Everyone is talking about record stocks t. Makes you think the whole market is back where it was. Well, what records are Still Standing, and what are some of the oldest records Still Standing . The oldest one was the airline index. It peaked in 1998. I think it still has to at least double to get there. It was a terrible bear market for airlines, about a 95 drop in that index. What in 1998 caused such a problem . I talked to our transportation leader, and he said he thinks it was the al qaeda bomb willings of the african embassies back then. Its fascinating to me that thats something that caused a peak in airlines in 1998. Theres something that still needs to return. They have, they have, but really priced permanent damage done from the financial crisis. You look at the index, the bank index, and it needs a ways to go to say the least to get back. Is that a too big to fail big Bank Recovery . Is it a regional Bank Recovery . That index includes both, but you look at pretty much all the financial indexes, and its a similar story. Across a whole mix. How miserable is this bull market . Is this a long bull market were in right now . Theres a lot of debate about exactly how old it is really. Most people at the beginning. The bottom of the financial crisis, but there are some at Raymond James who say, no, this bull market started in 2011. Its right around the time of the u. S. Credit rating downgrade. Its funny, because yes, a bull market is 20 , you know, a gain, but its a very loose definition, and we dropped 19 that year. Its the third inning. News flow this morning, the headlines remarkable. Forget ukraine and iraq. We will talk with willis sparks and turn our attention to what we should be looking at, and that is china. We say good morning this friday morning. Should we go on the attack against the other guys . We go on a hack attack. For more than a bit, dealing with some hackers going into the j. P. Morgan system. Look for that across all of Bloomberg News and bloomberg. Com this morning. We say good morning from our World Headquarters. Im tom keene. With me, scarlet fu. Brendan greeley, yeomans duty. Hes doing an 18hour day, five days in a row. When my alarm rings at 3 15 in the morning, i get up with a smile. Oh, my word hes drinking the koolaid. Only three more hours. Now heres scarlet. Lets move to something more serious. The death toll is now more than 2,500. The United Nations also says. Most 500 people are captives president obama says russia is lying when it denies helping the rebels. A new report says security is lax in the ebola quarantine zone. People bribe officials or even swim away to escape the neighborhood. The virus has claimed more than 1,500 lives, more than 1 3 in liberia. At least three Million People have fled to syrias civil war. The you know says more than a third left in the last year alone. That means the threeyearold conflict has forced one syrian in eight out of their country. More than half of them are children. Those are your latest top headlines this morning. There is continued violence in Northern Iraq, but also companies are still making money there, thanks to the umbrella of security guaranteed by americas military. At least one of these businesses, it was u. S. Military that helped them make their money in the first place. You were just in Northern Iraq. Please help me out. Who is making money in iraq . There are businesses that are involved, especially in small refineries that are making really, really good money because its so low at the moment. Theyre getting twice, three times the price for their product. This company i spent some time with, theyre run by five brothers ranging from 28 to 47, and they have business in all sectors there. They started out, thanks to the u. S. Army. They made a lot of money in 03 with the 101st airborne and they use the cash to expand dramatically. Now 11 years later, theyve got a Shopping Mall going up, skyscrapers, power plants, everything. Theyve diversified from what they started off initially. Absolutely. And they told me they were making 1. 5 million profit from the u. S. Army per month, so a ton of money. Is this an example of the kind of investment that could have worked across the entire country if the security had gone well . I would think a lot of businessmen would have said that would have been great, but the kurds benefited dramatically. They also had 10, 11 years ahead of the rest of the iraqis for the nofly zone. Do the capitalists of Northern Iraq and i think back to Christopher Hitchens work a decade ago, do the cap tives in Northern Iraq want an independent kurdistan or a relationship with baghdad . Depends who you ask. Most would love an independent kurdistan. It would give them the freedom to do what they want, but they recognize a lot of money coming from baghdad is beneficial to them in terms of the revenue sharing. I have sis has really changed the balance, because there was much more momentum to move towards independence before isis turned its attention not just from baghdad back toward the kurds, and now its really in the interest of the kurds and the shialed government to Work Together on isis. In the headline of this week thats been buried with all this turmoil is essentially running turkey. What does turkey want . What did you learn about the relationship in Northern Iraq with turkey . Very strong business relationship, and a lot of the government officials are very keen to working with them, and that has a lot to do with the pipeline. That can be exported. Theres been a lot of trucking going on. Do you believe the borders years ey built a zillion ago . Or are those borders gone . Theres a lot of borders going o. Im not sure im going express my opinion. What did you learn . People say this is changing dramatically and that the borders of kurdistan itself are also changing dramatically. Cue the music. Im curious, your reporting sholes the consequences of what you might consider Foreign Direct Investment in iraq. Have ther countries now significant f. D. I. In the country . We talked about how marcus is reacting to the turmoil. As we said in the last hour, most of the al production in iraq is in the south. Its far away from where isis is. Its far away from the war zone, and then the threat there only becomes real if shia start fighting each other, which is why its important that maliki is now out of the way. There seems to be at least a tentative consensus among shia about the need to concentrate on isis. To jump on that idea of commerce taking place, i want to bring in my morning must read t. Talks about how a lot of other countries are now benefiting from russia and the sanctions that it placed on european u. S. Goods. This could allow putin to turn the west blockade to his benefit by using to seal ties with new partners, such as turkey. Turkey comes in, and theres a vacuum to fill the gap. China, russia signed a very large energy deal with china. The problem is, yes, he can turn to new partners, but those new partners are reading the newspaper, and they can drive a much harder bargain on price than before. Its a limited advantage, and also, a lot of these countries, lets talk about china, can look and see that russia may not be a reliable partner if were talking about kazakhstan as a war zone 10 years from now, not ukraine. The chinese will decide for themselves if russia is a reliable longterm partner. Thank you for returning from iraq. Thunderstorm bloomberg surveillance. Adam johnson is off for the eek. Detroit getting an infusion. Barclays capital, the city must defend its bankruptcy exit plan in court next week. Malaysia airlines today saying it will lay off almost 1 3 of its employees. Thats about 6,000 workers. Its part of the overhaul thats been expected since it was hit by a pair of air disasters earlier this year. Malaysia seats have gone empty. A new c. E. O. Will be hired as well. And suzuki is recalling about 19,000 cars in the United States to work out a bug, literally. The company says spiders like gasoline vapors, and their webs can block vent hoses. The order affects sedans. No crashes or injuries have been reported. That is the latest top headline. Tom . Our guest host, will i can sparks, in this year of geopolitical discontent, we are focused on syria, iraq, ukraine, and goes a. They are front and center. China reform remains the wild card, not only for asia, but for global stability. Its just amazing how the pacific is just receding into the background. Whats the single thing youre focused on in china . Over the long term, its how will the president manage the pushback hes already receiving both from the reform process taking on a lot of Stateowned Enterprises and other vested interest and also his anticorruption drive, which is also creating a lot of anxiety. Just moments ago, Vladimir Putin speaking about ukraine and what kiev would look like. What does federalism look like in beijing . Its a mess. Right now, the reform process is based on the idea of recentralizing control with a very small number of people at the very top of the chinese leadership, because they feel like, if you just let it go, all the plans in beijing, theyre not going to be faithfully implemented. Theyre trying to reconsolidate control of that process. Theyre pushing much harder and getting pushback. How they manage that is much more important than ukraine or gaza or iraq. If i pick on shanghai with the classic we control shanghai, forget about what you say, beijing, is the military or the shades of military involved in reaffirming beijings power . Absolutely. The military can be very useful for the chinese over time, because if things go off the rails, if they face a surge of public unrest, if its not going well, if people are unhappy, they can use the military, particularly in the south china sea, where they have an ongoing dispute with vietnam and the philippines and others, to kind of rally the public to the flag. Safer to do it there than in the east china sea, but you can see some sabre rattling simply to divert public attention from reforming any corruption. I think of the classic work on china. Give us a lesson this morning. Is china nationhood and federalism, is it like canada . Is it like the United States . Is it like the canton structure in entitieserland . What flavor is that, these provinces . I think that china is a unique case, because there is some mandarin core in china, but theyve also that is parted of chinas province, where we hear headlines of terrorist activity in the west. Its a very heavy muslim population. This is a very big province in western china. A lot of chinas Natural Resources are located there. There is always that instinct in beijing to reconsolidate control at the center to make sure that things dont erupt into chaos. Federalism is a dicey topic. When you get around the table, a cup of coffee, do you believe in the silk road, whether it goes across land like marco polo or the silk road across water around the mideast . Well, you know, china obviously has a priority concern in maintaining stability in china. Thats job one, maintain stability at home, and really, all of the Foreign Relations that china is building are based on that idea of creating stability. China will reach out to a little bit of everyone. It can do more business with russia where it finds advantage. But china is really interested in stability in china first, and its Foreign Policy is predicated completely on that. Will i can sparks with a briefing on china. Scarlet . Weve got a lot of Economic Data to prepare for this morning. Weve got personal spending. This tends to move the market, because Everyone Wants to get a gauge of just how healthy the u. S. Consumer is, how capable they are of spending to spur this economy. And the problem is we dont feel as good as the stock market says we should. In terms of how the futures are trading right now, looks like we are headed for a higher open. The 10year yield moving up to 2. 34 . This is bloomberg surveillance, bloomberg radio, streaming on your tablet, smartphone, and bloomberg. Com. Adamoff son is off for the week. Our guest host this hour is will i can sparks. Lets start with snap chat. Weve got to Talk Technology companies. Snap chat is a hit with millennials, mainly because of what it is not. Theres no permanent messages, o photos, no news feeds, advertisements, no personal photos, no advertising targeted or otherwise. But all that is about to change, because the threeyearold messaging app is in talks to add all of the above so it can start booking some revenue. We now discuss what snap chat is doing. This goes beyond just advertising. This is a media strategy that snap chat is working on here. What were you concerned about as you bhear the plans unfolding . Indeed, and best practices are still being established in this form fox lawyer. Those that appear on your telephone, and when you release your finger from the screen, they go away, never to be seen again. We know that snapshot is in talks with major publishers about delivering news through this system. I believe its a way of giving snap chats younger demographic a taste of major media in the hopes that they will probably become subscribers to the daily mail as the only brand that we know is in talks with them. Its probably all of the usual suspects, all of the major publishers. They have plenty of other options. Wouldnt this just get in the way and they could go off to another platform . It remains to be seen, but social media platforms right now are the primary way in which Young Audiences are consuming news. If you look at all of the major news sites, their traffic is increasingly, and in some cases, overwhelmingly coming through social media, not through direct traffic. What can an app like snap at learn from we chat or whatsapp in terms of raising revenue . Its all up for grabs right now. Weve seen an incredible increase in mobile revenue and mobile advertising, on facebook and twitter in the last quarter. Just like 15 years ago with digital advertising, with search engines, with web sites, the best practices were still being established, just like when they invented television, they didnt invent the 30minute sitcom a day later. Were still in the woods about mobile advertising is going to ultimately look like. Im thinking about advertising on social. Theres a 10year curve. Something gets cool, it gains users, it starts advertising. It gets uncool, users move on. We saw this with friendster, my space, starting to see it with facebook. What hope do we have the innovation with snap chat will break this cycle . How can we think this is not going make it uncool . Whats different this time . There are always going to be these cycles. News cycles work so quickly on digital channels. So people were asking, when facebook went public, is it going to be the new google or my space . It was something very ephemeral, something that soars and then absolutely crashes and burns. The question is developing a Value Proposition and a system to really hold on to your users. Facebook, for example, does not let you take your little black book all of your friends with you when you leave the platform. That is a very, very tight tight anchor. Well see what senate chat can do to keep rebuilding its brand. Is it too late to turn the clock back . I think anything is game right now, although a subscription fee for Something Like snap chat is highly questionable. If you subscribe to nytimes. Com, you get to keep articles, archive them. Snap chat right now is all about now you see it, now you dont. Its hard to imagine monetizing that precise model with anything but advertising. All right, it bocksd itself into a corner. Thank you so much, rebecca joining us from alta media group. Site called social grab chat. Should the u. S. Engage in cyberoffense . It has been extraordinary. Last night it was a perfect autumn evening, rarely a 90 degree day in sight. Past the empire state building. Its been absolutely extraordinary. It is bloomberg surveillance. Im tom keene. Scarlet fu will be enjoying president obamas horrendous traffic. Or not. m avoiding it completely. The Detroit Lions will take on the giants, or more accurately, they will take on a quarterback n search of a football team. Eli manning will join in the loop. Betty liu is really prepared for this interview. What angle do you take . Look, im no football expert, right, but by all accounts, from what im reading, its going to be possibly an ugly season for the giants and eli manning. The last preseason game before kickoff for the nfl season was last night. To get ng desperately this new system in place in time for essentially for the season, and to see whether or not he can make a run of it his time around. They struggle against a bunch of backup players in the patriots, so it was not a good game. Look, im not going to be too hard on the guy. I dont want to kick him when hes down, all right . So hes going to be on this morning. But look, the nfl, football in general, is having some image problems. Were not just talking about eli manning. Were talking about the discussions. Roger goodell yesterday came out yesterday and apologized for being too lenient on ray rice and Domestic Abuse in the game of football. He said hes going to change the rules, and if youre found to have committed this crime, youre going to be suspended from the game for six games, but if you do it a second time, its a lifetime bafpble hes coming down hard, and he said i apologize. Major damage control yesterday. Major damage trolley. Its concussions, domestic violence. Football has an image problem. The tone is changing at the fl in the top offices. Eli manning and his brother are putting money into dash thats right. This is not a problem for the manning brothers, but Football Players have a very short career. They need to know what theyre going to do next. So manning, they have a lot of money, maybe their next career would be adventure capital brothers. They have others, like Carmelo Anthony and other star players, about 35 million into seat geek, which is like a stub hub. They essentially sell tickets, exchange tickets, and, you know, well see. Oh, theres the football video from last year. This one went viral. Football on my phone. Hes got a new one, by the way. Betty liu, in the loop, with eli manning. After labor day, the c. E. O. Of nba across america will join us as guest host. It is back to school season, and hell tell us what m. B. A. Grads are doing across america as they get underway. This is bloomberg surveillance. Im scarlet fu. Adam johnson is off this week. Our guest host for the hour, will i can sparks of eurasia group. Lets get you started from the files of bloomberg west. Apple sending out invin tation for an event on september 9. This is according to people familiar with the plans. This is apples first new product since the ipad back in 2010. Vivendi is leaving Telecom Italian at the altar. Will enter talks with telefonica. Telefonica hopes to challenge mobile america. And google is taking its rivalry with amazon to the skies. It is developing drones that can handle deliveries. Googles initiative is called roject wing. President obama is going to visit estonia, and this is from edward lucas, an economist writing in politico. E writes this is a big deal. Lithuania has a russian enclave. Estonia has a sizable russian minority. This is the thing. Its about lithuania and estonia. They actually have larger populations of ethnic russians than ukraine does, particularly now that some ethnic russians have left ukraine. But these are nato members. Very different situation than ukraine. But they need the reassurance, and thats why obama is there. By the way, thats why Angela Merkel is there. Will sparks with us here. And, of course, the headlines to review, shocking this morning, the abruptness of the putin headlines and the restatement by nato that they would like ukraine to join nato at some point. Directly from anders phog rasmussen, ukraine may become a nato member. Thats stunning. I think the stakes were already as high as they can get. He does not want to be the man who lost ukraine. On this friday in august, do you feel the markets will be removed from this debate . Which debate . The debate of the geo politics that we have seen this summer. I think were getting used to hot spots, and markets are pricing in the fact there are going to be ups and downs, flareups, and ultimately theyre not leading much. Well see market movement, but its not going any one direction. Im going say al hasnt moved. Its kind of moved on from the geo politics. The markets seem to know the exact same thing, which is you never get involved in a land war in asia. Thats a good way of putting it. I want to bring in the twitter question of the day. I know you have a lot of thoughts on this one. Our question was, should the u. S. Engage in cyberoffense . The answers that we got included the rules of cyberwarfare are so poorly define that had america is bound to end up worse off. Were not even sure what we were doing, and it took a decade to come up with the rules of nuclear exchange. The game theory was not worked out, and we had to signal with the soviet union for 10 years what might happen if they did something and if we did something, if there was great instability until everybody knew what everybody was capable of. And this is a much more complicated problem, because when ask you the problem, should the u. S. Go on offense . Against whom . Something from russia, russia state, russian military, russian organized crime, independent Russian Hackers, some combination, i dont know. Im not sure that we know. How do you target a retaliation . The other issue is when somebody launches a nuclear weapon, everyone knows where it came from, and therefore, there will be a a retaliation n. Cyberspace, russia, the u. S. , the french, the americans, we dont know where it came from, and no one really knows even their own offensive capabilities until they try them on someones defensive capabilities. Its a much murkier, and therefore, more dangerous world to try to game out. That brings to us our second answer, which is everyone is oing it. Is u. S. Or russia the leader . Who knows . Theres a lot of testing going on. Theres a lot of experimentation. Everyone is trying to figure out what is the true balance of power. Theres been a lot of suspicion. A few years ago in iraq, there was an attack use a virus that had an impact on the way that spinning centrifuges were able to enrich, etc. , so yes, the u. S. Has probably experimented with both offense and defense, and a lot of others have as well. We do know were hard at work at it, but wed be foolish not to. Right now theres somebody with his finger on a button going let me do it, let me do it. We have things we can do. How about this one as an nswer . Top of the pile already. That was a smart answer. Thank you. Well, it raises the point. Theres sabotage and then theres espionage, and those are two very different elements, and in some cases, there are attempts to do both. This is twoon the russian mob and government. If you take a bunch of data from j. P. Morgan, you can use that data in a criminal way, use it as a state threat. It serves a lot of purposes, which are in a lot of Different Actors interests. Theres no indication that anything has been taken or anything has been used fraudulently. We just know that j. P. Morgan discovered theres been some loops, theres been some holes, and its been hacked into. So it remains to be seen. All right, lets get to our agenda, by the way, where we focus on the stories shaping the day. Tom, you get us started. Right now, weve got a print on russian ruble coming up right now, which is very, very important for the markets. The agenda to me is ukraine. I love the sense from peter baker in the times this morning. Bloomberg has the same feel. Despite pressure from within, the president s own government for more assertive action, obama has tried to avoid inflaming passions. I think the debate over the weekend in america on how to respond to this is just front and center. I have been thunder struck by the headlines spanning across 50 and 60 years of russiaeuropean back and forth. Changing by the minute this morning. Yeah, literally by the minute this morning. Well have that on bloomberg surveillancely next two hours, certainly. You have to head off to the radio, where bloomberg surveillance continues. Well continue with our agenda. Whats on your agenda this morning . Mine is a. L. S. Ive been a little cynical about the ice bucket challenge. Ive seen it on facebook. We just saw oprah do it on tv. For me it always felt like a public act of what should be private charity, but i have to say this morning i learned that friend of mine has a. L. S. There are no cynics among friends. And so thats changed my mind, and i realize that cynicism is cheap and easy. So im going to get wet today. Thats going to happen later today. Have you done the ice bucket challenge . I have not. Ive seen it. Im ready to take it. I mean, i agree with you. I think we shouldnt say that because we cant solve every problem that we shouldnt solve the problem right in front of us to whatever extent we can. Has president obama taken it . There were 15 problems we couldnt solve this morning alone that we talked about. Right, thats right. And that list is growing. My agenda item is the president. He will be in west chester county, new york, all day today for several fundraisers. Hes staying overnight, which means lots of traffic problems. You want to avoid southern west chester. This is my traffic reporter. Avoid new radio which he will, purchase, and tarrytown. Scarlet fu from the surveillance chopper, thank you. You guys heard about the twitter blowup about president obama in a tan suit, didnt you . No. You got to get it in before labor day. He was at a press conference speaking on all the geopolitical problems, and he was actually wearing the tan suit and everyone blew up. Some posters said they thought it was not appropriate for the occasion. Tweets on the topic ran into the thousands. This is why hes in west chester. Its an election year, right . The tan suit doesnt help does. It scream weak science i think it brings out the stress gray in his hair. Maybe thats a good thing. I dont know. Will i can sparks, thanks so much for joining ups today. Hes the global director of the group. S at have a great labor day weekend. Were signing off. In the loop is up next. Good morning. It is friday, august 29, and we are live from bloomberg headquarters. Youre in the loop, and im betty liu. We start off with the one and only eli manning. Yes, hes recovering from last nights win against the patriots. Eli joins us on how this season is going to kick off for the giants and why hes now dabbling in venture capital. You dont want to miss that interview. But first, heres a look at our top headlines. That hack ago tack against j. P. Morgan described as the security teams worst night mae. Hackers exploited an overlooked flaw in a j. P. Morgan website and stole data for several months. The u. S. And europe are both condemning russias role in the latest fighting in ukraine. Nato says 1,000 Russian Troops are fighting ukrainian forces. And its a hightech dogfight. Google developing its own drones to handle deliveries. Last year amazon revealed it has been testing its own drones to deliver goods. Now back to that j. P. Morgan hacking scandal. New details are emerging on how the hackers penetrated its digital defenses and how long