Throughout the morning, we will get some more data out of europe. No earnings. Though we should mention that the japanese stock market is closed today. This is a holiday called respect for the aged. I think that is a very noble gesture. Im not looking at you when i know that, i just want to be clear. I turned 48 this year. Im getting aged, too. So you fall in that category, too. You are good people. Secretary kerry in paris. He is discussing support for iraq. It is really country by country. This is not like a broad photo shoot kind of thing. Every country for itself. What you do say earlier about saudi arabia . Im watching saudi arabia. Theres a real question of how offensive they will be when we really go directly after syria. U. K. Prime minister David Cameron is returning to scotland for second time in a week. Theyre concerned up there. There were four pulse of the week and, three effectively dead heat and the other said the independent voters are leaning the union voters, by a percentage points. Equities fell just a little bit. Hydrocarbons are sell. On to the next green. 96. 73. Rude all inyen, weaker yen all in the last 10 days. Ruble is a big deal. Lets go to the bloomberg terminal. This is back a good 20 years. Heres the collapse. On we go. A little hydrocarbon good news. Weakness through lehman. We go to this new weakness Dollar Strength versus ruble. I cant imagine going through 40, 38 is a big deal. Talks five rubles to the dollar. This has been ugly. I do not agree with the pundits that say this doesnt matter. It does matter. You dont know how it is going to surprise people, but at some point, there will be a surprise. Lets look at our front page. A twist in the weekend. A lot of Different Things. The tragedy of the beheading in iraq. According to u. S. Officials, more than 40 nations have committed to military and nonmilitary action. Several arab states have said privately they are willing to join in airstrikes in iraq in syria. We know saudi arabia. As for the other nations, they prefer to remain anonymous for now. You mention the outrage over the beheading for british aid worker of the weekend. Thats early plays a huge component. In aid worker . I mean, the words escape me. Characterize the kind of people who would be had in aid worker, someone who is trying to out them. I am fascinated by the development of the coalition. These paris talks, secretary state john kerry is in paris right now with president hollande. The talks involve 25 countries. You can understand the Islamic State in which effectively a sunni organization killing fellow sunnis and now other sunnis, for example, saudi arabia saying, this is not acceptable. Henry kissingers new book is my new read this. With all that we have been through the summer, theres a brandnew book out called world order. I got a lot of criticism last night on twitter, but we have to get smarter about this. Who are we bombing in syria . Targets . I still dont have an answer. That is all classified, tom. Tois or even authorization cross the border in syria . Scotland. The referendum is thursday. Too close to call. David cameron returning to scotland. Each pole basically that comes out indicates too close to call but each side also has a poll result to hang its hat on. We do know David Beckham has been trotted out by the no side that says what unites us is much greater than what divides us. At issue is what happens to the economy, to the pound, to National Healthcare in case scotland dust to clear independence. Department of defense, assets, oil assets in the north sea. There are so many questions. Something we will touch upon this morning is all the coverage has been on the note analysis. I hear way too little about the yes. It gets hazy. It offers an alternative. We dont know what the alternative is. What we could tell you is what the currency is. Third story, strong investor demand for alibaba. According to people familiar with the situation from the top and of the range will be raised to more than 70. The shares were being marketed at 60 to 66 apiece. At 70, alibaba would raise more than 22 billion. It would also value the entire company remember, theyre only selling a portion to the public. It would value it north of 175 billion. The roman history is, where does it open . The real mystery is, where does it open . Out, theo point article by Michael Forsyth in the New York Times on this. I thought it was you have it right there. Writing up on some of the defense and military exposure to ali baba. Between owners and management and official Chinese Government people. To be clear, this injury will price thursday afternoon. I did not know that. I did not know that. Presumably it would begin trading on friday. My word. I honestly did not know that. Futures are negative. Value investing, a different sport. 9605 . Ears ago, how about spear is the author of a wonderful loop book. New book. The education of a value investor. Jimmy methyl joins us as well. It is a different market. Where do you and Warren Buffett agree on evaluations . I think both Warren Buffett and i would agree there are a few other places to put cash. When you have such low yields on bonds, where you going to go . I think he builds his cash and holds it shortterm and waits for places to put it. I would say the same thing. The market might be choppy, but i say, where else do you go . You write in your book, what is it like from zurich really versus new york and london . Can afford anything. Can you afford a number two value meal . He getsy away where really expensive. 12 for number two value meal. Ive heard yelling and screaming to feed the children. It is very expensive country. Just consider, there are a lot of multinationals who go there. Just think about walgreens who wanted to go there as well. They go there because the infrastructure is extraordinary. It is a great place to live. The amazing thing about the world today, i can sit in zurich and analyze American Companies almost as well or just as well as Many American sitting here in the distance gives you perspective. Im also close to india. Im not that far away from singer or. I am kind of sitting in the middle of two economic wakes, china and the United States. Now were crossing over to your territory, as you look at what is happening, specifically between south korea, japan, and china are the past week tried to resolve some of the disputes, do they figure it out or do they need to live at the u. S. . Outheyve not figured it and wont figure it up in the shortterm. From the u. S. Perspective, getting that china and japan and korea trying all right will be essential to peace and security in asia for many years to come. That is the real issue because certainly, from the u. S. Perspective, getting china and japan the better relationships with one another will help us to balance out china because china is growing aggressively. I would mention the distinction between michael and his hard power and saying angry words and drawing lines in the sand versus Henry Kissingers world order. I think that is the crucible of it in northern asia. Not just in asia, but also europe. The fact of the matter is, it is not hard power. It is not just soft power. You really need both. What were seeing the world today with the challenges in the South China Sea and ukraine, there are allies and friends of the u. S. Who have relied on soft power because the United States for so many years has been behind them with a stick of hard power. Now that the world is not sure what role america is going to play, both china and russia are challenging the system and poking and prodding and try to see where the red lines are. It is unclear. That is creating a lot of instability. Are the rise of these Chinese Companies the soft power . It absolutely is. China is doing a good job on soft power in many ways. At the same time, with all of the antitrust campaign that is going on in china now with all of the theft of intellectual property and the soft power rome, theyre craving a lot of enemies. In the heart our realm, even more so because are so many challenges and so much happening in the South China Sea and the East China Sea, specially. We will be exploring that topic later on. Breaking news, cognizant will be buying company for about 2. 7 billion in cash. They are an i. T. Company and the company their purchasing is health care. The bottom line is, the summation of all of these 2 billion and 3 billion really adds up to something. Talks lets get to some company news. That is not the only m a deal. Miller rebuffed in an attempt to buy another brewer. Will stayays it independent. It would have made the Company Family one of the largest companies. Air france facing its worst strike since 1998 as pilots are walking out as management expands lowcost operations using flight crews with lower pay grades, lower than those at the mainline carrier. Nissan backs away from electric cars. Reports the japanese automaker is catering cutting production. That is this mornings company news. Fox we were just talking about the alibaba raising the upper end of its range, may be 70. How high are they going to go . We will dig into the numbers. Our twitter question of the day, will alibaba moved to new heights . Tweet us. No. That is to easy. Youre watching bloomberg surveillance. Good morning, bloomberg surveillance. At 11 00 a. M. , lieutenant sulu wait, george takei. He is a documentary out and they will be looking at that at 11 00 a. M. This is bloomberg surveillance. Good morning from our World Headquarters in new york. Are we having rubber chicken for lunch in the commissary . The roadshow has moved on to hong kong. Weekendpends the entire in an ice rink to come up with this. Frozen brains help. Alibaba and the home stretch because the Chinese Ecommerce Company scheduled to price its ipo on thursday evening and begin trading on friday. The latest indications are that alibaba will given to the high demand and price its shares above 70, beyond the market range. Guest joins us by phone. Leslie, isnt it interesting that the founder of alibaba made clear he would not price the ipo to aggressively and here we are talking about a price above 70. Their strategy was to start with the 60 to 66 range, which is seen as incredibly conservative by all different valuation than methods. Be able to raise it for more psychological reasons than anything, i think. If you undergo a two week roadshow and you raise it by about four dollars halfway, and helps investors get a good sense of where the price is going to be because the 60 to 66 range is pretty wide. I spoke with someone yesterday who said technically by sec regulations, they could price 20 above the high end of the range and a be no problem. I said, why are you going to raise it anyway . He said, because we let investors know, have a better sense of where we are actually going to price this ink. To increase the range at the top and about 70, still gives them , at least on peers price to forward earnings. It still gives investors a sense of where it will price. And the pop as well in the first day of trading. Talk about the level of skepticism out there as the roadshow travels in the United States over to asia. Theres an article about a link between alibaba and chinese officials. You also have the whole drama pay review separated alerting. T without all of those things are playing into the skepticism. This deal is a massive deal. There is tons of hype will stop theres also a lot of skepticism because largely, it is chinese, foreign to a lot of people here. A lot of people dont use alibaba services in the way they may have used facebooks. It is difficult for them understand things like alipay which was transferred out of the parent companys hands in 2010 with other investors knowing, without yahoo and softbank knowing. That sent off alarm bells for big investors are taking a big risk, potentially, on the ipo. Of issues as well as corporate governance, how much can you trust jack ma in the Management Team was so much control over the company . You,slie picker, thank covering the ipo market for bloomberg news. Our twitter question of the day tweet us. At least 70 for that offering price. Jamie metzl, senior fellow, my question to you, is the metaphor . Alibaba larger than amazon and ebay combined . It doesnt mean china is ascending and some broadway. U. S. Globally is still the biggest power and will be for a long, long time. Figuringinly, china is out the rules of the game. Alibaba is really important. When you think about the history of ali baba, originally, it was just a copycat site like many other Chinese Companies find someone doing well and copy it and use the protections around the Chinese Market to create an environment where you can grow. At the innovated along the way. We talked about alipay. It is a great way to the silicate ecommerce and a low trust facilitate ecommerce in a low trust. And seen innovated their scale and innovation of building ecommerce in low trust, poor infrastructure environments. This is a real opportunity for global growth. With the valuation is, whether it is 10 up for 10 down, we will see. Hour,ing up in the next the undersecretary of trade for the department of commerce will be joining us right here on Bloomberg Television and be part of bloomberg radio, if youre listening on the radio. We will be right back. Good morning, bloomberg surveillance. The russian ruble with 38 depreciation since the middle of 2011. Without question, that is the news of the morning. Lets get to a morning mustread or must listen. It is from tim cook from apple, spoke to charlie rose this week and discussed steve jobs is lasting influence on the company. He stood for innovation. He stood for the simple, not the complex. He knew that apple should only enter areas or we can control the primary technology. Still these things are deep in our company. There are still things that they are still things that we very much believe. The strive for perfection, for being the best, for only doing the best products, first thing focused. That focus is shifting to bigger screen iphones and apple watchs as well. And the wallet. Talking about alipay and now we have apple pay. Is this where it is all going, flow of capital . Look, apple is absolutely credible company. But i get scared stiff when everybody talks about it because this is more than half 1 trillion market cap. I have my iphone, but they will keep winning until one day they stop winning. Like ibm oneday stop winning. I am a big short on apple. Wow. You can watch the full interview with the apple ceo tim cook on charlie rose that airs tonight on bloomberg at 8 00 and 10 00 p. M. We will be right back. Good morning, bloomberg surveillance. Happyody is beautiful and this morning in new york except for the giants. And the jets. But the jets are at least trying to make it close. A beautiful september morning. This is bloomberg surveillance. I am tom keene with scarlet fu and adam johnson. A quick data check. I will roll right through this. Flex some week data out of china over the weekend. President obama be stepping up his efforts. Are we not going there . Phil company news. You are going to scotland. My bad. Scotland, voting thursday on independence. Three out of four calls this week say it is still too close to call. Professor, thank you for being here. Which argument for scotland, secure Economic Future . Is not about security, it is about change. That is what has been phenomenally misunderstood. Akers would come on one hand, older people with assets of existing systems of what a split. Those who want change and was , they wanteralism something different. It is about hope. It is an obama moment is currently. Is. Enough to get a 26 of the population still undecided to present event yes. And its . Yes, because i dont because 26 percent are truly undecided. You could look at the post, if this to post a quote. For all of the inside the margin of error. Is a will and International Relations has been a natural component. Tell us what this has been for scotland that is different from that is differentw fromales. Between a is different. What is the distinction . Is with thenction overdeveloped worry. It was the colony that was richer than the home country. Beginning in the 1970s and accelerating in the 1980s, that changed when scotland hit oil. Theres been a climate of deindustrialization on the one hand and a repolarization on the other. The failure of the labour party to appeal to the interest of scottish voters has meant over time, that basically move to more of the national list. One of the things that i think is so important is the idea of her currency, whether it one currency or this, that come are the other. Can they come up with their own currency to have their true monetary independence . Altered only, theyre going to have to. They will have to do some kind of currency arrangement with the pound in the shortterm because they simply dont have their own central bank or tax institutions. Eventually, they will have to try to get there if they vote for independence. Joining the euro simply brings austerity policies from berlin brother than from london. The whole thing is about trying to overcome that possibility. , i want to bring in guy spier our guest host for the hour. It seems like i would be interested to know what your thoughts are. You seem to be very in favor of independence. Dont you think it is really a pipe dream . Wellhasnt been very thought through and it would be a big mess if it happens . I am actually not in favor of it. There is going to be enormous shortterm costs, not just for scotland, but also for england. I would look for the reaction in england itself. If scotland votes for independence, it will increase the likelihood of voting for the referendum to leave the eu for the rest of the u. K. When that happens, the politics could get very complex. The shots to the currency market will be quite severe. Professor, have you quantified with the hit to gdp will be for scotland . Are we talking big figures . I would not necessarily say it was big figures immediately, but in that transition to get your uncurrency, you can bet the english was charged a pretty penalty will charge a pretty penny. There will be severe complications over nato membership when you want to get rid of nuclear weapons, in your policy elites of what is left of the u. K. Military. Of brownsor mark white university, thank you for joining us on a very complex issue that comes to a head on thursday. If scotland considers divorce from the cake, china, japan, and south korea are working on their and of and every conciliation. The plan is a threeway summit. Our guest host for the hour, jamie metzl. Can you overlook the territorial legacies . Is it any different this time than the last few times . It will be substantially different, but just the fact there talking a significant, particularly china and japan have been so divided. Cause of a lot of uncertainty and instability with the china, japan, korea triangle. There is no way china is going to back down on its claims or the South China Sea or the East China Sea, and that is one of the big positives of instability. When china is to go shooting, theyre saying, lets talk, but not that we will compromise in any way and china says, lets talk, theyre not saying that will compromise in any way. They expect china and japan to go to war in the near future or at some point. That is pretty stunning given the top diplomats will be discussing ways to bring down the temperature here. This extreme nationalism are talking about, what are the true Economic Cost . Have we seen a cost to the economies of japan or china . Certainly to japan, it is taken a bit of a hit. The companies have an less welcome. The calculations the chinese leaders are making, it is not about trade with japan or even korea, it is about what kind of political environment do they need in china to drive the kind of changes there pushing for . About thenalism is domestic position of the communist party. Theyre making a lot of big changes and maybe some top coverage. But it seems to me, china, they talk about negotiating, but they are always moving forward. They dont give anything up. It is not a fair game. They just take, take, take. I totally agree with it. It is absolutely true in that is the challenge we are facing both in china in the south and East China Sea and ukraine. These powers are challenging this global system such as it is and pushing to see where the red lines are. China is not negotiating. Red lines lots of today. But theyre not real red lines. Theyre not coming out of u. S. That is the problem, nobody trusts there are real red lines. Theres a huge connection everybody should read kissingers new book, whether they agree or not. I want to talk about the calculus of the asia society. What are the first and second beijing, taiwan, between them, us, australia . What are those rates of change right now . They are huge. The basic issue is china is growing. Its military expenditures have gone up from about 20 billion per year in 2002 to at Defense Intelligence agency estimates that honest 250 billion today. Almost 250 billion today. That is still one third of what it is in the u. S. It is, but they are a Regional Power and we are a global power. When you factor in their , likeng on one area antikerry or ballistic missiles, antilaser technologies, it is creating much more of a balance in that part of the world than we have seen for the last 70 years. Chinas Economic Situation is growing. There will be the largest economy in the world whether it is 10 years or 20 years, it doesnt really matter. Give us the latest on the issue. Ruption is it affecting what it wants it to affect . That is the real question, what does he wanted to affect . If you are to ask, is this a real Anticorruption Campaign, i would say, no. This,e everybody is in on and you know this by bloomberg may be better than anybody because you did a story and found his family was worth close to 1 billion and now youre cut off in china. New york times did a story and now theyre cut off. So everybody is corrupt. We havent Anticorruption Campaign that is not empowering people to drive change from the bottom up, then you have to see it as a Political Campaign. A Political Campaign designed to achieve what . It does remain to be seen. Jamie metzl, one of our guest host for the hour. Are you getting a lot of hate mail . If you mention henner kissinger on tv, you get a lot of hate mail. He is a lightning rod. , listen up, adam johnson and the other singles out there, there are more of you than ever before the United States. Our single best chart is next. This is bloomberg surveillance. Good morning, bloomberg surveillance. I am tom keene. Single best need a chart. If you live in america, odds are increasing youre not married. More than half of americans are single and credit goes to the independent strategist and economist for coming up with this. You can see married couples, the yellow portion, are in the minority for the First Time Since the 1970s when they began tracking the data. This is based on u. S. Census data. The blue slices are single men and sigel women. Red beans other family or not family. Contention it has huge applications for the us economy. More money asend a single. Youre not paying for school taxes or hockey practice. I think what is missing with that put up that chart again. What is missing in this chart is the number of singles paying massive not adjusted checks for child support. That is missing. Those people are just as much married as anybody else. Every month theyre going like this. That is a good point. The increase in singleparent households will also exaggerate incoming quality because if there no churn, there are fewer expenses. Ironically, the reason many people dont have children is because it has become so expensive. The single men in the blue line are sleeping extra, having adam johnson, were looking at you. Going on vacations. It is really terrible. Does this have huge implications in the way you may look at investing . Tell you, it is more expensive to live as a single person. I think it is a sign as rising income and a sign of freedom. People are taking more freedom. It is possibly good for the Housing Market because theres more demand for housing when people are living separately. It is much better here than europe because here, we of immigration from the southern neighbor called mexico and mexico is a very Strong Family values. In some way, you can still have a growing population. In france and italy, that advertising to try to convince people to have children. Immigration is not as easy because of the cultural differences. Italy as the crucible for these demographic experiments. There is no growth of people in italy. Look at who is immigrating. It is very hard for them to integrate. I have a mexican wife, so im biased, but the immigration from south of the border, those people are incredible people. They are hardworking. You see mexican sitting together in restaurants as families. Theyre bringing amazing values to this country. It is interesting to see the decline in childbearing by the original population i dont mean to interrupt. Jamie metzl, what has the one child policy done in china . Way. Has worked in a let me talk about his point. We talk about demographic problems, you look at singapore, japan, korea, china. Therell having this huge problem that people are not having children. It is causing a huge load economic growth. China made the decision for the one child policy because they recognized they have a Huge Population and a very low resource base. Without there are destroying their environment. If they had 500 billion more people, it would have devastating effects. But now they realize theyre about to take a huge hit economic growth. Right now 9 of the chinese population is over 65. In 30 years, it will be upwards of 25 . That will have big economic applications. The other massive policy, to get the kindergarten tuition a manhattan. I think i heard 43,000. And rising. Education, myn senior year 1988, 18,000. Coming up, the bulls are out. How you should be investing in this market. Speak with guy spier right here on bloomberg surveillance. Our twitter question of the day this morning the roadshow is now in hong kong. They reportedly raising their price target, offering price to above 70 a share. Up about 10 . This is bloomberg surveillance. Get to some company news headlines. We start with air france, facing its worst strike since 1998. Its pilots are walking out. Unit of europes Biggest Airline has canceled more than half of its flights. Nissan backing away from electric cars, reports the japanese on maker cutting battery manufacturing will phase out u. S. And british production. Rebuffs an attempt to buy heineken. They plan to stay independent. It wouldve made the family that controls heineken one of the new companies largest shareholders. A 16ken shares did hit year high. That is todays copy news. Youre a global value investor. What you make of heinekens family saying ninth . That this Holding Company structure that would make it very difficult if i used to be a heineken shareholder and i got frustrated because it would be using shareholder funds to acquire companies at premium and not finally, the shareholders are getting a great deal, the stock price is up. The industry is consolidating. The family has to understand you cant just by will of your Family History keep the company in the netherlands. Is it realistic to think a deal could get done when effectively there are three which controlu. S. 92 of the beer market . I think the family is probably under a lot of pressure right now. Thishareholders know that may be the best of they ever get. They may be getting tired. It is a really wonderful business. They have incredible values. But sometimes you have to accept change. Heineken brand would be a better brand and would be more global if they were to accept this offer from sab miller. Well lets move on. Humility is learned, one thing ive learned in him teen years, education is priceless if only leveled with realworld expense. Incredibly trenchant book about how to screw up and have to get smarter. I cant say enough about the value. Guy, yet the fancy partial meant parchment and you said in your Brilliant Chapter two, you were dumb. Lets go to a quote from the book than i want to get guy here under Peoples Group every day. What was the point of having studied and appreciate of the deep elegance of the theory of justice . How dumb were you when you got into this business . I was intellectually smart. I could do all of it and my neo cortex, but i lack some basic instincts. When you spent six years of your life in these elite institutions, you loose some basic instincts. Did you lose it because she did not have the math background in the schools to then come over to the real world . Math andnot about statistics. It is about common sense. It is just amazing how Little Common sense you can pick up at these universities. The common you did pick up came courtesy of Warren Buffett or learning about him and having a conversation with them after you won a chatty option where you got to have lunch with them. Including unconventional is often better. Basically, avoiding group thinking, getting caught up in the momentum of the crowd. What we learned at university is to think and complex ways. That is what impresses people. There and with Warren Buffett who has double my iq, if not more, and i have not met our einstein, but making everything so simple that children who loved me who are with me loved him. That is what you are really looking for. What you did in the academic and feel they people who need to build themselves up so they have to make it more complex. You start thinking that is the answer. I got into the world taking that and i fell flat on my face. You over thought it. I over thought. I was not seeing what was in front of me because i was try and analyze. Help those of us who think too much, which is what my haskell football coach said, High School Football coach said, how do we get out of our heads . It is hard. One of the first things to do is when we come into contact with the diversity come a the type of thing we highly educated do is want to analyze it. Instead, we have to look inside ourselves and say, what is going on inside me that brought me to the situation . That is a very hard thing to do. Thank you so much. Jamie metzl, thank you so much. Currency. Coming up, m a and the markets. This is bloomberg surveillance. To close to call. Scotland votes this week on independence. Mergers acquisitions, they are all the rage. Will janet yellen take away the m a punch bowl . Shadowk of apple in the of steve jobs. Good morning, everyone. This is bloomberg surveillance. I am tom keene. Joining me this monday, scarlet fu and adam johnson. Fromjust post for the hour son to death our guest host of the hour from sonnenschein and partners our guest host for the hour from sunshine and partners. Chinese Industrial Production falls falls i like that. It felt, as we say at princeton. One of the reason that global are strong in this morning. Throughout the morning, similar data from your. Japanese stocks closed today for the holiday, which is called respect for the aged. Secretary kerry feeling aged a his travel schedule. As an aside, he looks exhausted. You really wonder the hours. Back and forth across the world, in paris trying to work on the coalition to fight against islamic militants in iraq. We would also note that u. K. Prime minister David Cameron is returning to scotland for the second time this week. He is looking for his own coalition. That were released this weekend of the scottish road of independence. Three of those were too close to call. Dow futures, 19. Brent crude, speaking to the global overall subsidence of growth. Weaker ruble in the last hour. 38 112. I cant believe there is a 38, maybe on 40 watch on dollarruble. Lets get to company news this morning. Here is scarlet fu. Rebuffed inrewer its attempt to buy heineken and now wishes to stay independent. This is according to a person familiar with the matter. A 60year high. Air france facing its worst strike since 1998. Management expands lowcost operations. Europesh unit of Biggest Airline has canceled more than half of its life. Its like. Alibaba plans to raise the initial price of its Public Offering reflecting investor demand. They could be boosted to 70 60 to 66. Of for alibaba, we wanted to become a global company. Is why we plan to expand and invest aggressively in u. S. And european markets after alibaba is listed on the New York Stock Exchange but we wont give up the asian markets. China. Not a company from we are an Internet Company that happens to be in china. At the higher price, the Alibaba Seleka push 22. 5 billion sale could push 22. 5 billion. They should not speak to the public. They are in merger mode. What the hell was that . Doesnt make any difference with what you already knew . I guess it is the new ipo process. I dont know. To whate we get investors need to know companies that unusual that jack ma was speaking out in public, as tom says. Oh, yeah, very unusual. The public, meaning the press, is not allowed to the roadshow meetings. It is unusual that he is speaking outside of the press. Ceos who tweetme constantly while the filing is out there. Other ceos i know jack dorsey make public statements when his company filed. Interesting how far they will be able to take it. We will watch for any other comments that jack ma may make. What do investors need to know as the roadshow moves on to asia . I thought they had gotten enough orders to close the books. The books will close tomorrow , tuesday in the u. S. , wednesday in asia and europe. The meetings were previously scheduled were thinking london on wednesday, kansas city and chicago on thursday will still go on and investors be able to submit orders. One thing investors should know as they see the headlines now demand and the price increased is that a lot of information that the bankers and advisers are using to sift through and determine whether the man is are indications of interest. If you are a hedge fund, and you think you are lower down on the priority for the bankers, you will put in more orders than you expected you expect to get. Bankers tome for sift through and see who is really serious. Gotcha. Leslie picker, ipo reporter at bloomberg news, thank you so much. That is always how the game is played. But will go with that starting with the facebook affair it has become a whole new process. Our guest host for the hours marshall sonnenschein. He was around i think when gm merged with whatever with columbia university, among other duties. What an on time is. And my old now . Is jack ma supposed to speak in public . Are you kidding me . You always tease me about prepping. The web last night to see what was on the web and i saw the ceo giving a webinar about alibaba. After the roadshow has started . Im going to assume that the sec and cromwell and the other lawyers have worked this out. Only making an exception because this is alibaba . This is a Cayman Islands company. He can say we are not a Chinese Company, we are an Internet Company, but everybody has got to be somewhere. Very good point, marshall. Explain to us the structure. You are essentially buying shares in a cayman parent that has access to the cash flow of the Chinese Company . The laws are not friendly to surveillance breaksclusive there. When is the Cayman Islands heue, which is to say that online shares directly in the company you are not buying shares directly in the company. Control having said all that, if all the numbers are true, this is a hell of an oppressive story. This impressive story. This does not look like facebook. This is a profitable company. This is not amazon. They dont have to invest in physical infrastructure like anybody did. They are creating a whole network of delivery and other infrastructure elements that they have to build and maintain. They are playing a game in the Worlds Largest market. 2 billion chinese if the data is correct. Cnbcam wary of seeing cited in the prospectus fashion we are wary of that as well. The politician and military connection with the alibaba, it runs very deep in the company. Canada pension plan acquire shares can a pension plan acquire shares . There are lots of socks that dont play by the rules have Great Companies are part of a global village. I think they can, but it is not kansas and and is not delaware. There are Chinese Companies with those kinds of explicit links to government officials. Fair statement. You say that the big numbers that the alibaba roadshow intel toinitially they were going list in hong kong but then decided no we have to sell out get to somebody and china is the biggest buyer. They needed to come to the world financial capital, right here in new york, to that. Can i rip up the script . This is important for the radio audience. Can you read the new Financial Times . They did a review of the layout. I have fancy glasses. You have fancy glasses. I cant read the dam thing. To our twitter question of the day will alibaba live up to the hype . Nice all big cap letters. Coming up, sanctions against russia our next guest is focused on expanding trade in other parts of the world. Good morning, everyone. Bloomberg surveillance. I am tom keene. Futures flat, flat, flat as we begin the work we. Confidence that at some point down deals will get done. , he has seennshine it all. Twoyearevel of the yield do you know the party is over . Is it 1 . If the fed raised the fed funds rate even a quarter of a point we would all die. These are the lowest Interest Rates in years. You dont have the tip on i dont think the fed is going to move that quickly anyway but everybody is a little nervous and reign of the good times are ending. Cash, the gospel it has become, does not change your m a world . We have had tremendous amounts of cash stockpiles on corporate Balance Sheets and we are seeing a very, very large swell in corporate m a mania. Right now. The one missing ingredient has been confidence and if you talk to corporate ceos, they feel pretty good about where the economy fundamentally is heading. We have headlines from over the weekend about smb miller being rebuffed by heineken. We are talking about consolidating three big players and 2 big players. I trust the authorities are going to step in and we will see a bit of a return to antitrust in the world of m a. This is the poster child for for was famously said decades as the right to just say no. They could say no even if tell us within your experience the media fixate on megadeals like alibaba. What is the valuation coming out of it . 175 billion. You guys focus on 2 billion here, 3 billion here. You know why, tom . The big deals sell newspapers and stories. It moves peoples attention, it is exciting. 95 of m a transactions are 500 million unless or less and needworkaday professionals help more when they are a little smaller. It is more gratifying do you have volume in this year 35 more than last year . Yes. They cant keep going at the rate of the first half but it is awfully strong. The m a market continues to blaze ahead. Much more. Good morning, everyone. Our twitter question of the day will alibaba live up to the hype . Tell us what you think about the aboutg, about the value, when everybody will get out and sell shares and run work or double down. There were talking about 70. To 66. T range was 60 good morning, everyone. Adam johnson has our top headlines this monday. Americas allies ready to join the fight against the Islamic State. More than 40 nations have committed to military as well as nonmilitary action and that includes several arab states. They told the u. S. Theyre willing to take part in airstrikes in iraq and syria. President obama is stepping up his efforts to fight ebola. The wall street journal says he will outline his plans tomorrow. Possible moves include portable hospitals. The World Health Organization says the average of tilde 2400 people. Several hundred in the past week or so. Talk of a White House Run a quick prompts change of subject by hillary clinton. A party byttending senator tom harkin in iowa, and early voting state, of course. Well, it is true, i am thinking about it. [applause] but for today, that is not why i am here. Steak. Re for the ho ho ho, here for the steak, says hillary clinton. All i could think of was Mark Heilmann in john the early days of the obama reelection when they tried to balance what do we do now . Good. The way, she looked she has got to new york, she has lost some weight, she is doing yoga but she wont commit to anything just yet. It is getting tiresome. You just described to me. Lost some weight, doing yoga. The m a tracker and bank of america, and now he is negotiating 2 richard trade agreements as the undersecretary of commerce. Mr. Secretary, your first time on bloomberg. Ask for joining us. Thanks for joining us. Good to be here. Sadly i dont have the new hair either. We may have a problem with the mike. Good,od, guys . Are we guys . Penny pritzker recruited you. I wanted start with the export import bank. It may lose its charter. What happens if that is the case . Is tory, at, it frankly, adam, it is maddening. It has been reauthorized 16 times in the past. I think this debate about whether or not the private sector should be filling that role really misses the point. 60 other nations have export credit agencies. We want our u. S. Companies to compete on a level playing field. We really need to give them this capability. Hopefully we will be able to figure that out. Exportimport bank beside, the significance what is the significance of these deals you are putting together now . What does that mean for the boeings of the world . It is about making sure that our economy continues to grow. Exports are real important part of that to spur economic growth. 99 of u. S. Companies do not export. Of those companies that do, 50 of them export one market. T tends to be canada or mexico figuring out how to have our Companies Think more globally is an extraordinarily important mandate for the country and department of commerce. The big deals you are talking , the last being the Transpacific Partnership and the first thing can select trade and Investment Partnership transatlantic trade and investment punishment, are potential deal with eu, the size of those markets represent extraordinary opportunities for our asian for our nation. Is 12 nations. 44 of our total goods exports go to those nation. One of the hallmarks of the early Obama Administration was secretary clintons efforts to bring economics into our foreignpolicy and to inject your area within state department efforts. Can we do that now, given the geopolitical unrest we see . Weyour mandate lana because blown up because of ukraine and iraq and other issues . Tom, it is more important than ever. For us to project how it is not just about diplomatic and military power anymore. It is about economic and financial power. Communitya business to project power and influence around the world is extraordinarily important. Years ago at wesleyan in connecticut what do you see as our International Relations seen to project that power . In my of the themes, numeral is undersecretary of commerce, is to bring American Business leaders around the world. Put them on an airplane and get them out there. Put them on an airplane and get them out there. We are leading a Factfinding Mission to entergy, led by the ceo of to poland and turkey, led by the ceo of xerox and others, to better understand how to drive our u. S. Business abroad. Undersecretary of commerce i should say will trade and commerce thanks for joining us. Scotland has vote on independence. This is bloomberg surveillance i am scarlet fu come here with adam johnson. Shares of sab miller surging in london right now. The wall street journal reports that a beam that is in to buy sabbanks miller. What is inching here is that sab miller was rebuffed by the heineken, after making an approach to buy that brewer. The implications are interesting. Miller, coors, those entities control much of the bear market. You will effectively have just 2 entities that control 90 it is just unfathomable that regulators would allow that. Upsab miller shares moving 4 in london trade. Lets get to company news headlines. More friction between authors and amazon in the battle over the price of ebooks. A letter posted on the website of authors united says that efforts to impede or block the sale of books have a long and ugly history. Do you personally want to be associated with this . Buying trip from apex partners. Will sellhareholders their stakes. And marriott once you wants you to take your housekeeper. Some of the hotels are encouraging gratuities. Tipping housekeepers between one dollar and five dollars per night is suggested. This matters to our guest host, Marshall Sonenshine. Cant tell the difference between bud light and miller lite. You wouldnt have a bud light or miller lite in the refrigerator. You have some esoteric thing from belgium at eight dollars a bottle. It is another example of m a. The next line will be Warren Buffett decides to buy an american here. You dont trust my taste in but youte in deals. Y taste in beer theres a few Different Things going on at once. Number one, they are suggesting no response by heineken. No company has to do anything unless their shareholders decide to have to do something. The suitor itself is under a little bit of fire. They will have their own work to do. But critically, marshall, the eight or nine months ago, this is a search for revenue. The world looks big right now. A lot of these companies are getting bigger. Adam put his finger on it a moment ago. We are starting to see a return of the function of antitrust in some of this. Even with some of this next wave of consolidation shareholders wanted do you presume that the internal rate of return of transactions in combinations comes down because the consecration . Irr on deals comes down because the premium you have to pay yes, that is the issue. Whether there is enough synergy for the premium, i dont know. 10 of the cost cutting people get a little bit romantic about what kinds of synergy are available. It is worth more premium dennis this scream from screen frothiness . First half of the year, 1. 7 trillion worth of deals. Is that terrible . Well, that is a good thing. Of. Eats the board right now we need a frothy data check. There is a lot more going on behind the scenes. S p futures were down about 8. 40 on those week china trade data numbers we got over the weekend. But things are coming back. Thankfully, crude is down one dollar. That makes my guess cheaper. This is bloomberg surveillance. We are on Bloomberg Television, bloomberg radio, streaming on your tablet, smartphone, and bloomberg. Com. Our guest host is Marshall Sonenshine of sonenshine partners. Lets get you top headlines with adam johnson. Sweden has a new leader. The countrys liberal parties forming a government again that will be a challenge for the Prime Minister because the conservative antiimmigration party made big gains in parliamentary elections. This peninsula was hit by 10foot waves and 120 mile an hour winds. The storm could bring heavy rain to southwestern u. S. And a fine run by activist with an ipol ackman in amsterdam, of all places. The company says that would boost market capitalization of at least 5 billion. He says he wants to raise capital to avoid another financial crisis. What do you make of that, tom . Never a dull moment in the search for the value. Marshall sonenshine with us. I was aghast this is not all that unusual i would suggest this is not all that unusual. I dont think it is too over the next financial crisis, lets start with that. When private equity firms started going public, amsterdam was the destination for kkr from when it is first listing. But interesting and vibrant Financial Community. It is a choice because he was not so sure it would work all that well in the United States. Why not . First of all, the returns are not that impressive. People who choose activist funds are making deliberate bets that are institutional in nature. Im not sure it would be a selling point in u. S. Market. Europe is front and center in the headlines. Are voting thursday on independence. Three out of four polls that came out this week and suggest it is too close to call. The u. K. Has listed David Cameron, who is making his second trip in the past week, as well as David Beckham, there he is trying to make the case. We look from afar trying to make sense of all this in new york, is there a sense of desperation that the brits cant let the scots leave . The government is doing everything it can to hold together the more than 300year union between scotland and the rest of the united kingdom. David cameron is expected to deliver a speech where the theme is no going back. The conservativelet parliament and other parties in us\ westminster approaching the poit that they dont want to use this to vent anger about karen government, saying that this is a much bigger decision that shouldnt be used for any kind of progesterone. Protest vote. U. K. Austerity was painful certainly, but it seems to have put the countrys economy back on track for stability, whereas peripheral europe couldnt devalue any kind of currency. Europe as many links to this story from many angles, scarlet, but the one you picked up on their, the government has introduced a lot of austerity policies and some of them have not been popular in scotland. The conservative party that leads the Current Coalition only has one member of parliament from scotland. That contrasts with the labour party, which has more than 40. Theres a lot of history here, and the european angle is watched carefully. Are typically more proeuropean vendors in england. Thank you for your perspective. Marshall, im curious. This went through the scottish life said they will relocate if this went through, the scottish banks said they will relocate to london. They are voting with their pocketbook my guess is that the citizens of scotland will vote with their pocketbook. It is tempting to say you want to be independent of the u. K. For nationalistic reasons, i think this is a signal from the Financial Community apparently the votes are split along age. Older people are siding with stay with the u. K. , but the Younger Generation national you mean kids are being kids . They want a different future. Good morning, everyone. Bloomberg surveillance. I am tom keene. Transatlantic transactions. The u. S. Site is curbing tax inversions. It is a topic we have covered many a time and betty liu takes a look at it. What is your twist your on those evil corporations . Evil corporate titans. I would say that bankers and lawyers should be writing thank you letters to members of congress, because if there is going to be changes to inversion , essentially the tax laws surrounding inversion deals, maybe he could spur a flood of deals to happen in the next few months before these deals actually take place. You have seen so many of these companies burger king being one of the most prominent ones being put in place because there is fear that the deals are going to be bad. Jack lew, treasury secretary, is leaving on tuesday for australia. There was word that he will likely be announcing some sort of rule or new change over these deals. Marshall, this is right up your alley. Jack too much without congress and cap congress do much at all . Onbe we will see some change this thing. Either way, i think it is clever what you say, but i dont think wall street will thank washington if inversion is shut down. Who are doing them, obviously. Tom, you and i have gone back and forth on this because i understand your argument that corporations are just trying to maximize profits, and yet i have to agree with the white house. I dont want to Matthew Levine of Bloomberg View on this absolutely superb. We have got to rationalize Corporate Tax law. But all of this hue and cry on tax reform im talking about a more cynical portion folks who say we need total competence of review that portal copper hands of review and reform total copper hands of review and reform to do anything are really saying we dont want to do anything. The former Goldman Sachs banker says surprise, surprise, i think that the taxes are too high. But the reality, marshall, said most companies dont pay the maximum Corporate Tax rate. Ple talk about using moving to u. S. Taxpayers overseas but apple just made a huge announcement. Where are the parts of their phones made . Mostly overseas. That is where the jobs are. Complex, uglyve a mess of the tax code because it is democratic. Messhave a complex, ugly called democracy where everyone has their say. Lets have a flat tax aint going to happen. Betty liu, in the loop begins at 8 00 a. M. Coming up, we hear from apple ceo tim cook on steve jobs and his legacy. Always one of our most popular guests. Tomorrow on bloomberg surveillance, you know him from civil war. What a perfect year for ken burns. Baseball as well. Looking at the roosevelts. Boy , i remember the people who loved and hated fdr coming out of world war ii. Stark reactions. We will look at that on bloomberg surveillance. Our guest host, Marshall Sonenshine of sonenshine partners. Lets get you some company news from the files of bloomberg west. More friction between authors and amazon in the battle over the price of ebooks. Others are appealing directly to amazon board members. A letter posted on the website do yous united says personally want to be associated with this . Rhetorical question. A new aol piracy policy begins today. Will not honor do not track requests sent to their browsers. Aol bought gravity in january for a 3 million. 83 million. Hawking are talking iphones on ebay. One is more than twice the advertised price. That is company news from the files of bloomberg west. What a joy to see charlie rose on the streets of new york this weekend. Congratulated him on his tim cook interview. Talked about all across the internet this weekend. Tim cook, an alum of auburn university. He worked under a guy named steve jobs. Here is tim cook speaking to charlie rose about mr. Jobs legacy. It took me a little by surprise. He had talked to me about being so i knew all it was his longterm thing that you would become ceo. But not that specific moment. He and i had a discussion back and forth i was testing him on this. I said, what kind of things do you want to do as chairman . Just having a good banter with him. Ads i said, for example, and you want me to the ones that i think are right . He said, well, i hope you ask my opinion on some things. [laughter] on thatought, charlie, day, that he would be chairman for a long time. That i would be ceo for a long time, and that we would continue to work together. He knew when he chose me that i wasnt like him. But i am not a carbon copy of him. Thoughte obviously through that deeply about who he wanted to lead apple. That i have always felt this theibility of responsibility of. I wanted desperately to continue his legacy. The apple i deeply love. Pur the onset, i wanted to every ounce that i have of myself into the company. But in terms of being everything he was, i have never had that objective. Ive never had the objective of being like him. The only this i can be is the person i am. I am not an actor. I would be terrible in hollywood. Best timied to be the cook i can be. This is an exceptionally important interview last night with mr. Cook. Adam, you just mentioned those funds being priced out and all that. But it speaks to what Walter Isaacson has written about in his book and many others. Marshall sonenshine, you have seen companies that are games, the founders challenge our romance. Arguments. You dealularly when with passionate individuals, which steve jobs was. He was a man of great intellect and great passion. He founded his company, as much for conventional as a personal but to choose a successor is very important. We have one client where we have a successful ceo, the worlds leader in audio equipment, and Sidney Harman wouldnt let go. But he ultimately made his choice and reached outside the and shows a brilliant successor. Not an obvious choice for sidney, very emotional stop when you are outside looking it involves shareholders who have so much hinged on the founder itself. I think a lot of this is personal, particularly with a controlling stockholder and someone with de facto control. I believe you with a personal anecdote. Years ago i was a founder of a partnerlet Investment Banking m of great variety, which paul volcker was an chairman and he took it over. But jim said to me before he , one day you could run this place. I thought it was because i was a young guy and he was the senior guy could i realize 20 years later that that kind of thinking is really on your mind. You want the firm to survive your own mortality or humanity. And singleton the young talent that you are thinking about it we talk about deals and all that stuff that businesses are human enterprises and human beings are emotional and passionate people, particularly the brilliant ones. Is an outstanding interview and in this and it has gotten huge buzz on twitter. It is on charlie rose, tonight on bloomberg tv at 8 00 p. M. And 10 00 p. M. Eastern. On radio, it will be airing at 7 00 p. M. A lot to look forward to. Lets go to our agenda. Tom come get us started. Barcelona, catalonia. I think this is really what to watch. Scotland is not just about scotland. This has immediate ramifications for all of your cash for all of europe. For all of your. Memorial and then ramifications across all of europe. Bringing mr. Beckham into this, this is not a small deal. They love a celebrity who transcends borders. I will tell you what is on my agenda, the data we are getting and 9 15. Thank you for bringing this up. The fancier term, capacity utilization. How much are the factories producing . Capacity utilization last month was 79. 2 . That is the highest since. 08. American manufacturing story is more alive than better that people the relative comparison of Industrial Production of other we stunningly are superior to many other g7 nations. Is that the financial crisis was made in america by the recovery is made in america. Youre not seeing that in europe china has slowed down. A little bounce in japan finally after 20 years. In this country we have signs of growth and recovery for real. That might be why alibaba is choosing to list in the United States. Y agenda is alibaba it is looking to boost the price of its initial Public Offering from a range of 60 to 66. The pricing will take place thursday night after the market closes and if all goes well, the stock will begin trading on friday. References to our twitter question of the day that brings us to our printer of the twitter question of the day. Here are the answers. Too smartt answer an answer. Is more profitable this company deserves to be price one more. Harsh. Marshall, thank you so much for that was a snarky answer. Always fun to be with you guys. In the loop is up next. Good morning. We are live from bloomberg World Headquarters. You are in the loop. I am betty liu. I will bring you an exclusive interview with apple ceo tim releaseys after though after the release of his iwatch. Preorders iphone have hit a record. And im joined here on set as we await a decision on what the whoset plans to do side is this democrat on . You would be surprised. The former brazilian billionaire is now the target of federal i is, charged with we will bring you all the details on the rise and fall of isis. A look at top headlines this morning. Its ipo. Aises i could make it the biggest ipo in history. Shares of a beer maker surging ou europe, reports