Gaining with gold the yen as well investors are reaching for safe haven assets after North Korea ratcheted up its threats against the United States the pound weakened as prime minister may spoke on breaks it but the 10 year up for 30 seconds the old 2.26 percent gold up $379.00 to $1294.00 a gain of 3 tenths of one percent crude oil pulling back by $0.10 a barrel to 5045 down by 2 tenths of one percent yesterday President Trump ordered new sanctions on individuals companies and banks doing business with North Korea Daniel Tannenbaum is global sanctions leader of Pricewaterhouse Coopers he was interviewed this morning on Bloomberg Television the sanctions that were imposed for the executive order yesterday are significant there's one more step though to make them effective and that's alternately designating institutions that was the power that President Trump has granted secretary minutiae in actually going after companies specifically and cutting them out from the u.s. Monetary system the set up the mechanism for that to happen the next step is to actually list a specific company that effectively implements the sanctions Turkish Airlines says it intends to buy 40 of Boeing's 7879 Dream liners a long awaited deal that signals the carriers rebound following a terrorist attack on it is down last year owing shares up by 4 tenths of one percent the s. And p. $500.00 Index down 2 points down 110th of one percent the Dow down $37.00 down 2 tenths of one percent Nasdaq is down 7 down 110th of one percent it is $102.00 on Wall Street that means it is time for the market drivers report with a focus on American depository receipts there he is Dave Wilson Yes indeed Charlie A.D.R.'s are higher unlike us shares the s. And p. A.d.r. Index is up a 10th of a percent while the s. And p. 500 is down a 10th of a percent France's Alstom has climbed 6.4 percent in u.s. Trading the company making. Now it's in talks with Germany's Siemens about a possible combination of their rail car businesses the French newspaper Le Monde said the deal may be announced Tuesday Denmark's ascendance Pharma has risen 28 per cent the drug developers working on a growth hormone for children and a competing treatment from 1st start as failed to meet the main goal of a final stage study Swiss staffing company Adecco Group a small and 1.7 percent results for July and August showed organic revenue growth stalled at 6 percent the figure reflects sales before any takeovers and the U.K.'s Smiths group has lost 6.8 percent the engineering company's revenue for the fiscal year ended in July trailed the average analyst estimate in a Bloomberg survey Charlie and we thank you very much Dave Wilson focusing on the American depository receipts we are awaiting the latest weekly rig count numbers from Baker Hughes I'll have those numbers spring up as they become available recapping equities Laure s. And p. Down a point to 2498 down by 110th of one percent I'm Charlie pellet and that Michael best and Jim Grasso is a Bloomberg Business flash Thank you Charlie New Jersey Senator Robert Menendez is currently on trial for corruption including bribery and other charges take a centers on whether Menendez took official actions for a Florida off the modest name Solomon Mangan in exchange for private trips vacations and campaign contributions says that he and the outcome ologist are close friends and that he only took any actions he did because he was helping a friend and thought that the actions were the right things to do. Here to talk with us about this case which apparently is going to go on for some time is Neil Weinberg who is a Bloomberg News financial press reporter and who has been following the case very closely Neal it's great to have you with us today can you. Summarize what the government. Put up so far and as far as the evidence against the senator well so far the government has been presenting evidence to indicate that Senator Menendez has received quite a number of things of value many of them to do with luxury travel jet trips all board a private plane to his friend's home in the Dominican Republic a hotel room for $1500.00 a night in Paris and they're trying to build the case that these were things that he received in exchange for doing official favors on behalf of his friend there's been so many details about these luxuries hotels he stayed in from the pillows the bathrobes the coffee machine in the Park Hyatt in Paris and the defense it tried to stipulate that the events occurred but the judge is letting them in and do you see it as too much of this kind of information I would actually say the judge is actually has been slapping down the government for trying he said to make this a tabloid trial so they did get in some things about an enclosed rain shower and so on but the judge said enough of that let's stick to the core of the charges which are bribery So the question obviously the government would like to get in the fact that there were at least according to his indictment girlfriends involved in luxury travel that they love to describe presumably it would have some influence on the jury's point of view but the judge doesn't seem to have a lot of patience for that Neal the. Defense seems to be trying to make this all out is not just friendship but sort of constituent services if you will for somebody who obviously isn't from New Jersey this doctor this and Florida had what what is their argument about what exactly I mean and as was doing when he was helping out the doctor Well there doesn't really seem to be a question about what he did but the question is why he did it was it friendship or was it bribery and the issue about whether he was a constituent this was discussed early on in the trial in The question is. With a senator is the whole country a constituent meaning if you were a senator in New Jersey do you have constituents in Florida and to Senator Menendez defense has also argued in addition to yes you have constituents everywhere that he has done favors or he has done things on behalf of people whose causes he believes in whether they're from New Jersey or not and of course the government is arguing the opposite and saying his constituents or New Jersey if you look at his website it indicates if you're from New Jersey I'll help you if you're not I will refer refer you to another representative and so on so they really haven't resolved that issue but it has certainly been raised in this case Dr Melvin lives in south Florida and has never lived in New Jersey but he is Hispanic however and there is the defense trying to put forward that as the most senior Democratic Hispanic senator that Menendez has made a different kind of. Has done different things for the Hispanic community throughout his career certainly that has been one of the arguments and it also gets really interesting because I don't think there's any dispute that these men are close kindred spirits they spent a lot of time together their families spent time together and of course the defense says Senator Menendez lawyers are going to make the case that he was doing this because of a sense of friendship and a sense of belief in the Hispanic causes and some of the other things that the doctor had asked him to do. If there's really not so much dispute about what it is that men end as dead and whether they were friends. You know why is the judge saying that this case is going to run through Thanksgiving Well there's a lot of evidence and I suppose you can ask whether you know you could ask about strategy in a trial and whether the government may be dragging this out to its detriment I don't know but there is a lot of evidence and there's really you know sort of. Parts to their case and they haven't even gotten to the 2nd 2 which involves Senator Menendez intervening on behalf of a dispute with Medicaid and one intervening on a dispute that involved the Dominican Republican government one last thing in about 30 seconds does the fact that the judge has sort of circumscribed the evidence to avoid what he's calling tabloid stuff is that going to really hurt the prosecution do you think. Certainly the prosecution would like to get that and I'm sure they'd also like to get in the fact that his codefendant has been convicted of Medicare fraud but I think in our legal system the idea is you don't let in information that is going to prejudice the jury unless there's a real overriding reason to do so and in this case I think the judge who has 30 years on the bench is well aware of the influence this might have on the jury and he ain't going to let it happen our thanks to Neil Weinberg the Bloomberg News financial crimes reporter for being here with us today on Bloomberg Law coming up on Bloomberg Lower going to talk about a hack into the Securities and Exchange Commission's Edgar database which is meant to provide public information I keep corporate filings That's straight ahead but 1st let's go to New Zealand check out a world in national news from the Bloomberg $9091.00 newsroom in Washington d.c. Nancy thanks Michel British prime minister Theresa May says failing to reach a deal with the European Union would be a damaging blow to Europe's future she outlined her vision for the split today in a speech given from Florence Italy the Ollie's of the world. But if we can be a national to have on Queen a tip about the way we establish this new relationship if we can proceed on the basis of trust in each other I believe we can be optimistic about the future we can build for the United Kingdom and for the European Union her speech comes before the 4th round of talks North Korean leader Kim Jong un has lobbed a string of insults at President Trump calling him a mentally deranged u.s. . Tarred and hinting at a frightening new weapons test it follows new sanctions that have been put in place by the trumpet ministration Bloomberg serve Chapman with more the new sanctions will prove effective commerce secretary Wilbur Ross said in a Bloomberg interview these unprecedentedly Sabir unthink their work I think will have a big impact because China came out with their very strong statement that their central bank is going to cut off the Chinese banks from dealing with North Korea Russia said North Korea nuclear and missile development is expensive and heavily dependent on imported components in Washington oeuvre Chapman Bloomberg Radio the trial administration is scrapping Obama era guidance on investigating campus sexual assault replacing it instead with new interim instructions for universities Global News 24 hours a day by more than 2700 journalists and analysts in more than 120 countries I mean same lines. Thank you Nancy for on the Bloomberg 960 News Room I'm Charlie Politan and some of the stories that we're following for you in and around the Bay Area just because the drought ravaged California has spent years urging residents to conserve water doesn't mean it wants people to actually stop drinking of a stuff when a Gator Aid cell phone game suggested just are doing just that state attorney general have you Basara filed a complaint accusing the popular thirst quenching drinks maker of false advertising gator raid quickly reached out $300000.00 settlement in which it promised not to bad mouth water again we are brought to you by Bentley University where m.b.a. Grads gain the market driven skills today's employers crave it's no wonder payscale Rankin's Graduate School of Business 4th in the nation for earning potential Bentley dot edu slash upgrade Asian investors have scooped up an empty North San Jose campus for $58500000.00 And with more here's Bloomberg scrag. It Charlie this is a big office complex in north San Jose they paid nearly 60000000 for the 2 building campus an indication of steady interest by overseas buyers in Silicon Valley according to the Mercury News the property has been empty for years since it was vacated by Micron Technology a semiconductor company in a spinoff of Micron called emptiness imaging 3 family trusts sold the office complex which was built in completed in the late 1990 s. Sanna's h. 2 primary markets are among the areas that interest Asia based realty buyers. And what all 3.7 f.m. And time now for the Bay area of business report as we check on what's moving markets in San Francisco and the entire Bay Area Amazon may soon bring Shake Shack burgers and chip burritos to your door as it pushes deeper into the growing market for restaurant delivery the commerce Titan has been working to crack the code on food delivery for at least a decade now it's teaming up with a company called Olo which provides the digital delivery Amazon striking a deal with roughly 200 restaurant brands with about 400-048-4000 extension 0 u.s. Locations over technologies has been hit with a stunning setback in London where regulators revoked its license to operate and chastised its corporate culture based in San Francisco Bay Area business time 1013 Coming up we have got a check of traffic and weather. Good news I'm a good markets weekday mornings and 61 trauma center and I'm calling Johnson business of people watching other people play video games get big. Mastro it's there and we've also got our weekly look at the world of luxury an immigrant families who Car Max Bloomberg Markets today. On Bloomberg $60.00 and $1.00 of $3.00 to. Invest in institute on alternative investments one of our clients was skeptical of alternative investments because he thought they were too esoteric explain that one alternative investment is providing capital for expansion through private equity investing as a former businessman he intuitively understood how that would work provided private equity capital several fast growing companies and insight like this can change and you see a wealth investment options we call that can unlock discover your. Alternative Investment are not suitable for all investors and are only open to a creditor dusters with the meaning of your securities laws there speculative involve a high degree of risk for those investors who have a financial sophistication and expertise to evaluate the merits and risks of investing upon which the fund is not represent a completely doesn't put. Pressure investment was a wholly owned subsidiary of. C t w and Microsoft. Into business with c v w preconfigured The Microsoft Surface book store office can be productive and collaborate from anywhere which is great. At your wedding. Or conference call Sorry I just 2nd will wake up thanks oh no it's Ok to talk productivity by Microsoft. People who get it learn more at c d w dot com slash Microsoft. Is a family owned closely held businesses are really important and really complex if you are a family and business and need support navigating tough family business decisions in how. Come slash fan. Bay Area business time is 1015 it is time for the Bay Area's best traffic and we do have it every 15 minutes right here on Bloomberg 960 let's get the latest back we go once again here is Laurie Olson let's get over what are your favorite spots Charlie Palo while toll northbound what I wanted to Barca Darrell singular in a fact a big rig accident a couple of cars blocking the 3 left lanes they are not saying when these lanes going to be reopened traffic back to for about 45 minutes all the way back to the 237 to one South going to be clogged up from Willow to 37 West jammed up as well because of the similar northbound about a one in a barcode Arab a bridge still holding strong Charlie lights are on we are back to a bit of a maze might have a brain to crash West 80 right at the metering lights are Bloomberg 3 day weather forecast sunny skies today highs mid seventy's cloudy overnight sunny and breezy tomorrow then sunny and hot for Sunday with the Bay Area's best traffic on Larry Olsen Bloomberg 63.7 f.m. H.d. 2 over to you Charlie Ok thank you very much Laurie Olsen We'll see you in about 15 with the latest right here on Bloomberg 960 stocks are tumbling right now we do have the s. And p. $500.00 Index declining and right now we do have the s. And p. Making a run for the worst level of the day it is down 2 points right now down 110th of one percent we have got our Bayer index so trading higher up by 3 tenths of one percent of the check of the markets next this is Bloomberg. Mobile business news 24 hours a day. Comes the radio blows. Your radio. Business. World Headquarters I'm Charlie public the Dow at its worst recession right now down $51.00 points down 2 tenths of one percent stocks are falling for a 2nd day treasuries gaining with gold and the yen as investors a reach for haven assets after North Korea ratcheted up its threats against the United States the pound weakened as prime minister made spoke about it right now we have got West Texas Intermediate crude little change down $0.11 at $5044.00 barrel down 2 tenths of one percent gold up $360.00 hired by 3 tenths of one percent still below $131294.00 the 10 year up for 30 seconds the yield 2.26 percent the Dow down 51 down 2 tenths of one percent the s. And p. Down 2 point down 110th of one percent Nasdaq down 12 down 2 tenths of one percent I'm Charlie public and that Michael best in Bloomberg Business flash Thanks Charlie when the Securities and Exchange Commission created the system known as Edgar in the 1990 s. To make corporate publicly available it was hailed as a victory for transparency that would help level the playing field for investors and the system is many years later now very heavily used according to the f.c.c. It gets more than $1700000.00 filings per year and more than 50000000 pages of documents are accessed on every day but the f.c.c. Recently revealed and that it learned last year about a hack into the system that may have allowed hackers to obtain and profit from corporate confidential corporate information before that information became public here to talk with us about this hack into the system Peter Henning a professor at Wayne State University Law School and Robert Hockett professor at corner. Well University Law School Peter you know most of the Edgar system is publicly available information that's kind of the point but there is part of it that has some confidential information apparently is the subject of this hack explain exactly what it is that got hacked into here well the security breach came through a portal that the f.c.c. Has so that newer companies companies that recently went public would essentially take it for a test drive and post material on Edgar The requirement is that whenever a company makes its disclosure to quarterly or annual earnings that have to do that you immediately and make it available to all investors at the same time so it was a way for them to test it but there are companies that will make filings for example I.P.O.'s now you can make with centrally a dark filing you can put information in there that isn't available to the public that might have been available to the hackers and would give them maybe some inside information about what was going to happen at those companies and perhaps others if they rummaged around through the system you just don't know what you're going to find Bob did catch occurred last year the f.t.c. Just disclosed it on Wednesday is that against its own advice to companies to announce cyber attacks promptly Well it's hard to tell the tight attrition I mean that the problem is you know that that yes it's just sort of Borstar faced with a dilemma on the one hand it reveals information that turns out not to be really that important in the longer term but sort of stokes a panic or Stokes sort of excess concern in the short term that it might well you know sort of think better about having disclose something too quickly so it's not sure whether to tell anybody right away because it doesn't want to cause more panic that might be warranted on the other hand that being said it doesn't the. Turn out to be a significant problem then of course the f.t.c. Looked at egg on its face when it turns out that it needed information even sooner in this particular case I think what's critically important or maybe worse noting is that it didn't reveal the information until it determined that somebody might actually get used some ill gotten information in order to engage in some form of insider trading and that's something yes you see apparently only just learned Well Peter if the idea of this part of the system you know the confidential information is to encourage new companies to get out to put things out for folks to get things in early and test out the system What's the if this ends up deterring that from happening if this kind of hack deters that from happening what are the likely consequences in terms of companies have build a day to get their information out the right way well I don't I'm not sure if it will be a deterrent which certainly will make companies hesitant and indeed even the f.c.c. Said for those using this portal you know be careful about the information you put here but you know just like any warning label I'm not sure how many people might have actually read it really the message here is the broader want to of course this coming just a couple weeks after the disclosure of the Equifax really is that really no computer system is completely secure that we are living in an era and it may go on as far as the eye can see we're living in an era in which there's going to be cyber attacks and confidential information and get exposed so you know it's you know maybe Physician heal thyself the f.c.c. Has to take stronger measures here to protect what may be crucial information about companies otherwise they're going to be more careful about what they file and may try to pause things a little bit to try to ratchet down how much they end up disclosing in their public filings Bob Edgar. Carefully by traders who use super fast computers how much information does Edgar have that can actually move the market. Well it's had a great deal of such information and then then in a way that sort of art of the point right I mean the original impetus behind it is such that sort of a race or to sort of diminish nearly to the vanishing point any kind of time advantage that one trader might have relative to another when it comes to trading on information that is disclosed once again is disclosed and has some sort of significance a price that relative relevance significance to the shares of a permit or traded the irony here of course is that you know there is a stablished in order to level that playing field but if some people are able to hack it and others are not you might end up with a sort of paradoxal there's a paradoxical situation where an editor and so facilitating certain kinds of insider trading by essentially getting off right some people much more much sooner than it chips off others simply by by dint of those 1st people's capacity to hack it so that makes Peter's point all the more important that you know in order for even to sort of fulfill its function it really has to be more or less hack proof or at least it has to be proved against hacking of the kind that can facilitate insider trading coming up on Bloomberg low are going to talk more about the hack into the Edgar system run by the Securities and Exchange Commission which they have only recently disclosed learned about it last year what does it mean for investors and what does it mean for the huge project. Around what's called the consolidated audit trail that's meant to record the details of every trade in the United States stock market that's coming up on Bloomberg Law with. This is Bloomberg. And we are brought to you by Carbonite for complete a business data protection Carbonite offers hybrid backup and disaster recovery for complex environments learn more today at Carbonite dot com slash radio. The Bloomberg Small Business Report I'm John Tucker the time and expense of writing paper checks can add up for a small business for the 4000000 small business customers of j.p. Morgan Chase that may be all changing the big bank is teaming up with Bill dot com to help businesses get rid of paper checks Bloomberg reporter who saw on wrote the story be able to get a lot of your suppliers on the system and just a whole lot easier lot faster. 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Bay Area business time is 1029 it is time for the Bay Area's best traffic and we do have it but every 15 minutes right here on Bloomberg 960 back we go for the latest And once again Here's Laurie Olson All right Charlie traffic is brought to his by the Red Cross northbound of what I wanted to bark at arrow still have our signal or injury action of all the big rig 3 left later block they're not telling us when they're going to reopen lanes traffic is jammed up for 50 minutes all the way back to Matilda what would south going to be clogged from Willow to 37 West bunching up as well right around Lawrence expressway Bay Bridge toll plaza lights around were jammed into the maze getting to the Bay Bridge on West 80 right before Powell it's a 3 car crash in the 3rd lane from the left the Red Cross depends on financial donations to be able to provide disaster relief immediately help people affected by natural disasters by visiting Red Cross dot org or calling 1800 Red Cross with the Bay Area's best traffic and Larry Ellison Bloomberg 63.7 f.m. H.d. 2 Charlie Ok thank you very much Larry Olsen We'll check back with you in about 15 with the latest right here on Bloomberg 960 stocks are lower will run down the numbers in just a moment the Bay Area index is up 3 tenths of one percent alfabet down 5 tenths of one percent an apple is down 1.3 percent Facebook down by point 7 percent this is Bloomberg 961 o 3.7 f.m. H.d. 2. Broadcasting lard to New York where you are going through to Washington d.c. Where 99 more to Boston Bloomberg one of those things was his imprint this go 962 the country series into 119 and around the globe Bloomberg Radio was there and Bloomberg Radio dot com is Bloomberg. I'm Jim Brown So coming up on Bloomberg Law does the hack of the assy seat threaten the regulators ability to provide market transparency and I Michael best will take a look at the prospects for a potential merger of wireless carriers Sprint and t. Mobile but 1st let's get a check on the markets from Bloomberg Charlie palate and I think very much Michael Best Thank you Jim Raso the latest weekly numbers from Baker Hughes show producers idled 5 oil rigs this week adding to 19 parked over the previous 5 weeks the numbers which are released every Friday increasingly make it look like the drilling boom might have peaked and that should impact all put down the road West Texas Intermediate crude oil down 2 tenths of one percent now at $50.46 a barrel stocks are falling for a 2nd day treasuries gaining with gold the yen as well as investors reach for haven assets after North Korea ratcheted up its threats against the United States Michael Dell is global market strategist at j.p. Morgan Asset Management he was interviewed on Bloomberg Television the market just has to assume that given how dire an advantage would be for North Korea was a total not that far on a lot if a site like the market was so seems like a given that if it was a note that they would almost say maybe over coffee I know a story about it right here in the u.s. President. To give it a dollar for every thing the market is looking for a little bit annoyed that Washington only we are seeing gold advance today by $350.00 the ounce up 3 tenths of one percent still below 1300. $1294.00 the 10 Euro 530 seconds there are 2.26 percent equities lower s. And p. Down about 110th of one percent down with $2498.00 down 2 points the Dow tumbling 52 down 2 tenths of one percent Nasdaq down 7 a drop of 110th of one percent I'm Charlie public that's of Bloomberg Business flash Thank you Charlie we've been talking about the hack of the f.c.c. And its implications with Peter Hank professor at Wayne State University Law School and Robert Haag a professor at Cornell University Law School Peter this isn't the 1st time that the f.c.c. Easy Edgar system has been compromised now they're going to put in the can solve this thing called the consolidated audit trail so would you explain that and whether they're going to be concerns about that in light of this new hack. A consolidated audit trail it's actually been a dream of the f.c.c. For about the last 30 to 40 years where would give them a real time look at who was trading across all of the markets so that they could see if there's any kind of market disruption or you know order flow is somehow affected by an event or perhaps even a technological glitch so that this is what they wanted what that is though is incredibly valuable information if I know that they could elevate your ban Guard is throwing out a position or accumulating a position I can trade ahead of that or trade along with it before the stock price is the fact that I could make a great deal of money so what the hack is saying is that the f.c.c. Accumulates more and more valuable information it's going to become a target even more and so it's really going to have to protect that information and of course the firms are worried that. Their information could be stolen and used either against them or by someone to profit him that's going to cost other investors money Bob I'd expected given this Hakon you know we don't know that much about it yet but given this hack. A lot of banks and other investors would be very concerned about what might happen when the consolidated our show finally gets up can we expect that this is just going to delay that project you know we can't even figure out yet you know I don't know I I really don't know whether we should be expect this to sort of delay that project or not I mean it might do that it might in fact instead case turn the project of beefing up Internet security or cyber security or the like or it might that might be a boat I mean a couple of other things worth noting in this connection it seems to me is see 1st of all there is the Equifax matter that Peter mentioned before there's also another matter that we've sort of forgotten about but was pretty big news about a year ago and that was when the New York bet was fooled by hackers into making a very large money transfer on behalf or supposedly on behalf of the Bangladesh central bank and that was through hacking as well and indeed the New York Fed sort of discovered the problem only sort of by accident only through a sort of a 4 to it a link to a strange name that was used by one of the parties who was hacking it and so people that since then of course have been a little bit concerned about the security of the swift money transfer system that the central banks and other banks use as well so in a way the problem is is quite pervasive throughout the the financial system and I'm hoping therefore that the takeaway from this will be that we really have to get quite serious about cybersecurity across the entirety of the financial system and not let it build a. Sort of beneficial actions at various regulars are planning to take unless absolutely necessary to open instead of just sort of speed us up when it comes to really. Addressing all of the cyber vulnerabilities that appear to be pervasive out there Peter as you see Chairman j. Clayton is scheduled to testify before the Senate Banking Committee next week what kind of questions do you expect him to be getting and will there be a grilling of sorts I don't be a little bit of a grilling although in a sense he gets a bit of a free pass because the act to place under his predecessor Mary Jo White and you know perhaps the delay in disclosing it might be an issue brought up but really I think he wants to use this as a way to highlight the need to enhance cyber security and as Bob said Bob have to really write that this is not that we can't just beauty's is isolated incident that this is something that is going to be pervasive through the financial system and so if you view one security patch as somehow a curious at best a placebo So I think quite is going to go on the offensive here and perhaps even use this as a way to ask Congress for more money for the f.c.c. Don't forget this is a political agency Bob you know we talk about the importance of cybersecurity and it seems are there ways to actually stop this from happening because it it seems like every is what everyone in every agency can be attacked. So I mean if I were a computer security expert I could answer you more definitively but I would probably also be a millionaire or a billionaire. I mean in theory we can do this but but there are so many prerequisites that people have to be met one of them that maybe is worth highlighting at the moment is that because so much of the transacting that goes on in the financial system now explain across borders through multiple electronic systems you need some kind of harmonization on the part of multiple jurisdictions when it comes to what forms of electronic communications are going to be used what protocols or what security protocols are to be used what specific technologies just technologies are going to be used and so forth and it's possible are proving to be difficult to get consensus even on that you might have already been a couple of days ago that some of our partners in Europe in Asia are sort of suspicious of the protocols that we're currently favoring because they think we might be favoring their model by Sibby items were able to hack them I'm going to have to stop you there I thought all professors were millionaires thanks to 2 of them Peter had a professor at Wayne State University Law School and Robert Hoggett professor at Cornell University Law School summing up. Sprint deal possible deal and whether I'll get approval from the antitrust But 1st let's get the latest world in national news from Nathan Hager in the Bloomberg 991 news room in Washington d.c. Nathan June Happy Friday she is one of 4 g.o.p. Holdouts on the Republican replacement for Obamacare now she says she's leaning against it Senator Susan Collins of Maine is telling her local newspaper the Portland Press Herald that she still has major concerns about the Graham Cassidy health care bill that is despite new pressure from Republican leaders like Vice President Mike Pence Graham Cassidy is an idea whose time has come president from far absolutely determined to carry this case all across the country and it is an idea that only has until the end of next week to pass without support from Democrats under budget rules pence met today in. Washington with Collins's Governor Paul Le Page the European Union's chief brags that negotiator is responding to u.k. Prime minister Teresa Mayes proposal for a 2 year transition period after brags that Michel Barnier issued a statement calling May's idea a step forward but saying it must now be translated into a precise negotiating position of the u.k. Government I do not want all partners to fear that they will need to pay will all receive less over the remainder of the current budget plan as a result of our decision to leave the u.k. Well on a commitments we have made during the period of membership may laid out her brags that blueprint today at a speech in Florence Global News 24 hours a day powered by more than 2700 journalists and analysts to more than 120 countries and Washington Nathan Hager and this is for. Thank you Nathan from the Bloomberg 960 News Room I'm Charlie palate and once again good morning the busiest border crossing in the United States will be closing this weekend to the more than 40000 cars that pass through a daily to Mexico the closure between San Diego and Tijuana for work on a $741000000.00 expansion project presents a monumental headache for border businesses workers and tourists a California dentist who was aboard an energy Ghana Airlines plane that crashed in San Francisco 4 years ago killing 3 girls and injuring roughly 200 others has reached a settlement with the airline and in what her attorney said was the last pending lawsuit in the u.s. Stemming from the crash Kyun wrong Ron her daughter were among 291 passengers aboard as the on a flight to 14 from South Korea when it crashed at San Francisco International on July 6th of 2013 u.s. Safety Investigators said the pilots bungled the landing approach by inadvertently deactivating the plane's key control for air speed among other errors the plane slammed into a seawall at the end of a runway. During final approach Bay Area business time is 1042 time to focus on what's moving markets in under around the Bay Area and some more problems big problems for San Francisco based overseas Greg Greg Jarrett tells us this time those problems are in London in fact Charlie technologies license to operate in London has been revoked a surprise decision that will affect 3 and a half 1000000 people and 40000 drivers who use the app in the city so the transportation regulator Transport for London says the license will expire on September 30th regulators say it didn't lie the license because quote approach and conduct demonstrate a lack of corporate responsibility city officials cited tubers use of a secret software to cold gray ball that the company built to avoid regulators. And what all $3.00 f.m. H.d. To California could be willing to reopen discussions on its greenhouse gas limits for cars and trucks for 2025 so long as automakers and the trumpet ministration embrace the significantly tougher targets it's contemplating for later years Barry business time 1043 our Bay Area index advancing today by 3 tenths of one percent apple alfabet Facebook Twitter they're all trading lower Berry Business Time 111043 coming up a check of traffic and weather Bloomberg 968 the global technology industry is a powerful engine of innovation that drives the economy what happens behind closed doors find out if one big critic this week the one big reason Tesla still doesn't a our dot com slash services. Very business time 1045 it is time for the very best traffic and we do have it every 15 minutes right here on Bloomberg 960 let's get the latest back we go once again here is Larry Olsen and back we go to Charlie northbound what I want to bark at Arrow injury acted evolved a big big 3 left lane to block traffic jam for about an hour all the way to mud. What one south is going to jam from Willow as you travel on down to market all starting to budge about the 237 West as well as a result they were told Plaza lights is still on for this Friday morning we're back to a bit of a maze getting to the Bay Bridge to every. Little crunchy because of an accident westbound 80 of Pal 3 cars in a middle lane you Bloomberg 3 day weather forecast mostly sunny today highs in the mid seventy's cloudy overnight sunny in Breezy tomorrow could get into the eighty's sunny and hot into the ninety's Sunday with the Bay Area's best traffic and Larry Ellison Bloomberg 60 and one of 3.7 f.m. H.d. Do Charlie Ok thank you very much Larry Olsen and we'll check back with you 15 minutes from now right here on Bloomberg 960 we've got the Dow The s. And p. Nasdaq all trading lower as some p. Down a point I'll run down the markets boy in a moment as for what's happening in the Bay Area Cisco is up 1.8 percent right now Tesla pulling back by 3.2 percent gap up 1.4 percent and Oracle up by 6 tenths of one percent this is Bloomberg 960. Global Business News 24 hours a day have gone cold the radio global or the radio we've heard business players from Bloomberg world headquarters I'm Charlie part of the Dow The s. And p. Nasdaq all declining and this update is prompted by Commonwealth financial network home to the industry's most satisfied advisors prepared to be swept off your feet by the broker dealers are I a that's been putting relationships 1st since 1979 visit Commonwealth dot com stocks are lower treasuries gaining with gold gold up almost $4.00 now to $1295.00 up 3 tenths of one percent the 10 year up 530 seconds with the old of 2.26 percent s. And p. Down 0 point a little change now down less than 110th of one percent the Dow down $49.00 down 2 tenths of one percent Nasdaq down for a drop of 110th of one percent crude oil down $0.06 a barrel to $5049.00 down 110th of one percent I'm Charlie Cox and that Jim Grasso and Michael Bassett is a Bloomberg Business flash Thanks Charlie we're going to take a look at what's happening in the world of anti trust and now with Jennifer Rae she's a Bloomberg senior litigation Atalissa we're going to start with the antitrust hurdles of a potential t. Mobile Sprint merger or can you clear me now as you put in your analysis I I admit that I got that. So if t. Mobile and Sprint do agree to merge what are their chances are the problems with getting antitrust approval tell you and it'll certainly be an interesting to see an aerial test for the new administration if this will be a 3rd time that the wireless providers try to combine from 4 to 3 the 1st time in 2011 is 18 t. And t. Mobile and the 2nd time was in about 2014 timeframe when this deal Sprint and Sprint and t. Mobile talked about doing a deal and had a lot of opposition and I think the feeling now is that with the new administration maybe they'll have a better chance but you know I go. I think that those odds are really very good you know I have to say that what we've seen in the last couple years is increased competition benefiting consumers with you know better data plans and lower prices and you know why are the editors regulators going to want to go in and mess up that situation yes because it's just you know that's the opposite of what the antitrust laws are meant to do. Jan in the past you know 18 t. Mobile deal was shot down so it was a proposed deal between these 2 carriers for in t. Mobile just a few years ago or what is going to the argument going to be I mean it it may be you can just save you Administration change they have to have some kind of argument that thing that there's a reason why this makes sense now absolutely and I think and then they do have a couple arguments and those arguments have merit now what they have said 1st of all is that they have been an aggressive competitor this is t. Mobile and they've been a disrupter and Sprint has as well but that can't go on forever and that it's just simply an industry that needs capital and the trajectory can't continue on and that they'll be able to continue to be an aggressive disruptor and competing against horizon in 1900 as it would combine with Sprint with more scale they think they can do this even better kind of be the maverick that's one thing and the other thing that they can argue is that there will be a lot of synergies and that efficiencies and this brings pro competitive benefits and one if they the things the regulators are meant to do is to look at those program better benefits those efficiencies and synergies some of them at least and weigh them against the possible harmful effects that could come from the deal and and if those synergies outweigh those harmful effects then and perhaps the deal can go through and sometimes with Republican administrations they will put a lot more weight on that side than the Democratic administrations have so so you have those kinds of arguments and last they they could even argue that there has there will be some new entry because charter and Comcast are either already in the works or talking about entering sort of on the wholesale side in the market so they have some arguments to make just briefly the d.o.j. And the f.c.c. Are involved in this and so how do they separate what they're looking at or do they write well they they do I mean they'll communicate they have slightly different standards in which they judge the competitive effect of a deal of the d.o.j. Standards a little bit more rigid than than the f.c.c. And. I think there's a sentiment here though that the bigger hurdle will be the d.o.j. And not the f.c.c. Though it's not completely clear that this could get through the f.c.c. Either the thing that's happened there though is that we have a new appointment already confirmed who has said that he's not necessarily completely committed to a 4 player market in wireless so you have that necessarily completely committed to everything ready right exactly David basically saying not so sure that I believe there must be 4 players right doesn't mean the deal will go through though on the d.o.j. Side we obviously still don't have the head of an antitrust division but the appointment Who's through going through the confirmation process now make and interestingly said several years ago when he was interviewed by Bloomberg West that he thought this was when he was talking about a possible mobile combination and what he said was Well maybe if it were Sprint and t. Mobile maybe that one would be doable so it's an interesting thing. We know that much about the these folks who are going to be presumably presiding over the decision whether to approve this or not but how much do we know sort of more generally about how the trumpet ministration is approaching it to trust issues and how might that play out in this one if it happens you know it's so hard to say because because President Trump welcome painting and then and after he was elected really was taking a populist stance himself on an mergers and on antitrust and seemed to be against you know huge big companies. And spoke out against Amazon and some of the other big tech companies but on the other hand Republican administrations tend to be a little. More you know nicer to big combinations into deals than Democrats are and the kind of people that he has surrounded himself and appointed are more traditional Republicans and what about the Democrats and trust you said there's you know this is a populist pushback are the Democrats pushing back the kind of seems to be an assault right now from Democrats and others. Other pundits and the other thing you know trade groups and thinkers out there against the the antitrust laws in the way the law has developed over the last 50 years and there's some that thinks that it just has gone in a direction that it's allowed too much concentration in too many different industries not just in tech and that something needs to be done that either the laws themselves need to be changed or just the way they're applied needs to be changed to sort of stop these great big companies and concentrations in industries and great big mergers so that would mean a change in the way we view antitrust law then right it would mean either actual change in the law which you know where I obviously have to go through all the hurdles that legislative changes have to go through or just a change in the thinking and you know but that's a very difficult thing because the antitrust laws themselves are short and vague the law itself the body of law has developed through precedent and case law and we have you know years and years of of legal decisions and that is precedent for the courts and the courts will continue to follow that President until they are overruled essentially and all the courts necessarily disagree antitrust is that is it difficult some of the determinations are very difficult in the antitrust world in that and the courts are not all in the same in the same place but there has been the basic development that interest focuses on consumer welfare and that really means keeping prices down and choice up wells and wouldn't I wouldn't that if we come back to this particular merger sort of say that it's probably still unlikely given the way the market has devolved that this would be approved you know I think that's the case I think that it would be very hard for for t. Mobile to establish that even if we acquire Sprint we will continue to be the maverick in the disrupter and the competitive price or that we are today I think that's a difficult argument for them to make and so it just seems to me less likely that this would get cleared. Ken what are some of the other name another one of the things that you're watching an antitrust. You know we're obviously watching the buyer Monsanto merger this has been hanging around for a long time and both the u.s. And the e.u. Are still thinking about that and evaluating that deal so we're waiting on that one at Qualcomm an x p have a deal in the semiconductor space that the u.s. Cleared a long time ago but we're waiting for the European Commission on that one so we're watching that and of course I'm definitely watching the big litigation against most of the generic. Drug companies that have all been there are under investigation by the d.o.j. And have been sued for price fixing for about $18.00 different topics. You have your eye on the hall and you trust seen and that's why we love having them here thank you so much that's Jennifer re Bloomberg senior litigation and listen if you want to read more of Jennifer's analysis you go to be I go on the Bloomberg terminal that's it for this edition of Limburg law We'll be back Monday at 1 pm Wall Street time thanks to our producer David such human in our technical director Mark sin Ascough chic coming up next Bloomberg Markets with Carol Nasser in Corrie Johnson I'm also with Michael best have a great weekend we look forward to talk to you again on Monday this is Bloomberg. And we thank you so stocks are trading lower we will have a complete wrap up of the markets at the top of the hour we've also got a check of traffic and weather coming up the Bay Area index advancing 3 tenths of one percent this is Bloomberg. Imagine a world where asset servicing is unconstrained by infrastructure management operations at this I see dot com slash imagine. They are a business time is 1058 it is time for the Bay Area's best to traffic and we do have it every 15 minutes right here on Bloomberg 960 let's get the latest back we go once again here is a Laurie Olson All right Charlie Travis brothers by the t.j. Martell Foundation still very heavy in Palo Alto northbound one of them what I want to Barca Darrow big rig accident has the 2 left lanes block we are back to for about 55 minutes all the way to Matilda good news is the southbound delays have dissipated a little bit as you travel into pallet Watto but still heavy out west to 37 from Lourdes as you make your way to the want to one interchange Bay Bridge toll plaza lights are on still backed up to the 80 over crossing getting to the Bay Bridge was David Powell accident clearing in the gore point join the t.j. Martell Foundation of the fight against the Keamy cancer and aids your support helps facilitate cutting edge research that will lead to more effective treatment to save more lives visit t.j. Martell dot org to learn more with the Bay Area's best Ratigan Larry Olsen Bloomberg 63.7 f.m. H.d. 2 Charlie Ok thank you very much Larry Olsen and we'll see you in about 15 minutes with the latest right here on Bloomberg 960 we have got a down day for stocks here with the s. And p. Now is really little changed our Bayer index is showing again of 3 tenths of one percent more on the markets coming up this is Bloomberg 96103.7 f.m. H.d. 2. From the university. On the radio news is clearly w over. 3.7 f.m. H.d. To San Francisco now on Bloomberg Radio. Team kind of back pedaling I think it's more the most interesting business story the changing nature of retail global finance in tech news as it happened basically startups are raising money by selling their own virtual currencies What's up with this company they can add the users hash tag. You're it that's a.