Abigail a bit of a decline. The worst day in more than two weeks as geopolitical decisions that julie was talking about is rattling investors to some degree as we see the decline for the small cap is lower now. Unlike what will seem more feeling, investors are uncertain about what is happening with north korea. This is intraday chart in the bloomberg, a sixday chart. Last week, we had a north korea missile fly over japan and the dow have fallen but today on that day, it turned even and we see it had been climbing higher through the week. Thoseors are looking past geopolitical decisions but we see the big drop for the dow on pace for the worst a day since the middle of august. David over and mainstay capital who has been good in terms of bullish and saying the market is able to look past the broader concerns, he things based on the north korean tensions along with the fact that the durable good numbers was disappointing, it could be a chaotic week for stocks. We are seeing that, but you never know. Let us take a look at the s p 500 in a greater chart we have in the bloomberg. And we did have the s p 500 on a sixday winning streak, the longest since i may. 0. 5 days decline, almost and the s p 500 is poised to break the winning streak. Who knows . Anything is possible. It looks about the bearish tone and mainly set by the banks. The banks are the worst decline in the s p 500 trading down in civic the way to yields and yields are diverse price per head in verse two price. Price. Rse to we see all the different indexes and the banks, the regional bank, financial diversified index, julie, insurance index also down and accept something to do with Hurricane Harvey and irma, not knowing the potential damage could be done from that second hurricane. Watching irma. Ly thank you. The Trump Administration will end of the program that prevented the deportation of immigrants brought illegally to the country as children. Attorney general Jeff Sessions made the announcement. To have a lawful system of immigration that serve the national interest, we cannot admit everyone who would like to come here. It is just that simple. At thatessions said will be a sixmonth the delayed Hope Congress can come up with their own a solution for dreamers. Senators Lindsey Graham and dick durbin will hold a news comes at 3 00 together. Kevin cirilli joins us from capitol hill. They are holding this News Conference and weve gotten comments from paul ryan. What are you hearing about the next steps . Kevin the fallback immutably and democrats announcing this decision and calling on congress permanent. A whatever or not that will happen remains to be seen. Task led byoderate senators Lindsey Graham and dick durbin, a republican and democrat respectively, they would allow dreamers and daca members to become permanent should they pass a criminal background check and be able to volunteer for military or other programs. Let us pull up what House Speaker paul ryan said in a statement following the attorney generals announcement. He said, however will attend obamas program was a clear abuse of executive power. It is my hope in the house and senate with the president s leadership will big to find consensus on a permanent legislative solution that includes ensuring those left done nothing wrong can contribute at his as a valued part of this great country. I can tell you the Business Community were already starting to hear some responses. We have one actual resignation. The u. S. Chamber of commerce javier has resigned from the Diversity Panel and meanwhile, microsoft president and chief legal officer, brad smith, put out a Public Statement saying congress should adopt legislation on daca before it tries to adopt a tax reform a bill. Some calling on congress to reshape its legislative priorities before tax reform. Julie we are getting a statement on daca from the president himself. I have not had a chance to look at it in full. One would imagine that he at those some of the echoes some of the sentiment from Jeff Sessions and we will bring you more headlines from it. As we go forward now, congress does have tax reform to consider is no tax reform proposal necessarily on at the table as of yet from the president. And also the debt ceiling, the government funding, and a number of other legislative things. Are you getting any sense from a congressional congressional leaders of the order of priority . Some of these halfhearted deadlines. Spoken to several sources and lawmakers set it to come back this evening returning from the recess and tomorrow a scheduled vote on the Harvey Relief a bill. It will be interesting to see what happens with hurricane irma. Tied upsurance will be in excess and got to pass some and of insurance renewal that is on the minds of thousands of folks impacted in texas, louisiana and now florida. In terms of debt limit, i have spoken to several sources who anticipate that lawmakers will to december. I do want to read a little bit of President Trumps statement. He says only by the reliable enforcement of Immigration Law can we produce safe communities, a robust and middle class and economic fairness for all americans. As i have said, we will resolve the daca issue with heart and theassion but through lawful, democratic process while at the same time ensuring in Immigration Reform we adopt provides enduring benefits for the american citizens we were elected to serve. The president not a dress invest on camera but we got a statement from the white house. Favor he said i do not punishing children for the actions of their parents, something as mentioned before. Thank you, kevin cirilli. Tensions between to heat up with a north korea. World powers including russia and china are resisting u. S. Calls for new sanctions against north korea after its sixth and most powerful test. Is agency is reporting responding that north korea will respond. Our team leader for National Security joins us from washington. Bill, what is the latest here . Let us talk about the north korean position, what we know about this latest cast and about north koreas next step . Tested whatkorea appears to be some sort of a Nuclear Weapon underground and is promising or seems to be preparing to launch another i. T. Bm and would be their third since early july and at what we have seen in the reaction has been china and russia saying, know, we do not want more sanctions although the u. S. Said they want to vote on september 11. What really matters in the equation is china more than russia. Russia tends to go along with what china decides. In july when north korea launched their first icbm, china works too, with a new set of sanctions. We are trying to figure out if it is going on behind the scenes and in china a u. S. Agree, russia will probably go along with it. Julie one of the sanctions is cutting off fuel, fuel lines to north korea. Is there any indication that china china haslinda resistant to going along with that josh has seemed resistant to going along with that and would it be effective has seemed resistant to going along with that and would it to be effective . Bill faries they have always been reluctant and they have always had that card close to them to use if they feel threatened or feel like they want to put a check on north koreas behavior. The flip side is cutting off Oil Shipments could very quickly cripple the country and a lead to chaos on chinas southern border which is something they do not want. That is something you have kept out of the hands of the un and never really wanted to play. Julie bill faries, thank you so much for your team leader on interNational Security. A check on first word news. Courtney donohoe has more. Ranksey hurricane norma as one of the strongest storms recorded ever in the Atlantic Ocean and could hit florida this weekend. Maximum 175 Miles Per Hour making it a category 5, warnings have been issued for portions only one island, antilles including puerto rico. Vladimir putin said President Trump is not my bride in iraq not his groom. My bride in i am not his groom. Himaid it is naive to ask if he is disappointed and the u. S. Presidency. British Prime Minister theresa may will try to force the pace of brexit negotiations. She will deliver a speech that makes the case for continuous talk. The u. K. Wants to move on to the issue of trade while the eu was still several other issues such as how much the u. K. Will pay as an exit the. Doubts that aing deal a rewriting of the north American Free trade agreement can be reached this year. The latest rounds of talks in mexico city coming to an end with a major breakthroughs. President trump has threatened to pull the u. S. Out of that agreement. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries, i am i am Courtney Donohoe. This is bloomberg. Is a belmont of september shaping up to be the cruelest month of stocks. Month of september is shaping up to be the cruelest month of stocks. This is bloomberg. Is bloomberg markets. As markets head into september often considered the cruelest month for u. S. Equities, theres more to be thought about her book in a heartbeat, a number of Central Bank Decisions and the deadline to pay back debt are all of the horizon. The chief market strategist, quincy krosby, always great to see you. We have this litany of events coming up. Is there any particular one of those that you think will be most key or you are sort of weighing them equally . Quincy krosby few ways him all. We are looking at the fed. In the midst of all of this, the fed is meeting in september. You weight them all. E wind down the Balance Sheet. When there is north korea hope during over the market hope hoveringes hovering over the markets particularly marked increases on the backdrop of inflation in the wrong direction. Again, the Economic Data comic better than expected despite the number from the report. We will package attention to bob dudley speaking on thursday, he very often speaks in concert with janet yellen and stanley. Not at the local goal, he mentioned the possibility of a third hike and the market is divided. Not that long ago, he mentioned the possibility of a third hike in the market is divided up. Julie Financial Decisions of versus the fed trajectory. We have seen the increases and financial conditions have been easing, trending upwards. If there a chance we will not get the third rate hike . Quincy krosby there is pretty the fed wants to take advantage of where they are accommodative. At the end of the day, despite the winding down of Balance Sheet am a 13 trillion on the Balance Sheets of the major Central Banks and that is tremendous accommodation. And a weaker dollar tends to help, and we have a weaker dollar. Again, i think janet yellen would like to leave with another rate hike if she can. She is not going to do it unless Economic Data allow her to. Many are divided on whether or not, is it inflation . Is it wages or financial conditions . Many have criticized her for having waited too long to begin the rate hikes to normalize. Nonetheless, the market will look at earnings and that is the field for the markets to march higher despite the selloff. We have needed a selloff. The biggest question becomes when do the buyers come in on the dip . We saw with the last north korean episode, the buyers started to come in and begin buying. What we are going to look for is a day will come in and buy it we will see the volume of the upside. Volume has been very weak because of the summer months. We want to look if we see buying on the dip in velocity . Do we believe in this market . Us far, we have seen the upward trajectory and have not always seen the volume. With the outlook and looking at north korea and the legislative calendar, where do you allocate assets . you have a mario draghi speaking to this week. We will see if he is more dovish. The market, the currency market, has begun to price it in and we have the euro ease a little bit and pushing the dax up despite a deal announced this morning. That is going to help the european market, if it is more dovish. We expect jackson hole and it rose 1 after you spoke. We like to europe, the dividend paying stocks, good exporters. We like to the health care as a sector in the u. S. It has moved up, actually handsomely, violative have moved up a mightily. This one of their peter periods they do well because of the medical conferences. We have started to see medical conferences. Maybe it means to pull back. We like and. With the agenda that the administration has, we doubt they will start a talking about Regulatory Reform in terms of pricing and health care. They have got to get through this wraps a tax cut or 2 that the market will like. We expect earnings when we start to see them in october. We like a u. S. And european stocks. Yen pullswhen the back, the market should do well and have been doing well. Japanese international with a weaker dollar, if if the teams to remain weak and a bid almost at the expense of low and mid cap. When the dollar rises on the back of better Economic Data, money tends to come out of emerging markets to some degree and move into smaller cap in the u. S. We have not seen it. Julie lots to choose from. Quincy krosby, we have to leave it there. Up on ourbehemoth that can outfit everything from jetliners to warplanes for United Technology acquisition of rockwell collins. This is bloomberg. Julie this is bloomberg markets. In other deals report, a major deal and the arrow space sector. Apple space sector, one of the biggest takeovers in aviation history. This is a boeing, a bit compat are competitor a big competitor is weighing in and may pursue regulatory options to protect its interests. Does that mean antitrust resistance . Yes. There are 2 course of actions. They could try to make a counter proposal to bid. Ruled out and boeing has made no move to signal that is what they will do they do not even higher potential to look at best. Net is will they say its great to much antitrust and gives them too much power and that seems to be perhaps the course they will take. Isyou look a airbus which the equivalent to boeing in a this issue on it relies on United Technology and rock well for parts. They came up with a slightly different one that they recognize the are doing the deal and they remain focused and do not get julie does bowling have a point how dominant is this combined Company Going to be . ,d hammond it is very dominant theyre the biggest supplier or maybe secondbiggest of boeing 15 rockwell is top 10 or top a you can pull it up by looking at it. Youi think the argument could make is as that the Customer Base is way, way more consolidated. You look at boeing and our bus and they have these 2 Monster Company airbus and have these 2 monster companies. For it gives of them power, nothing compared to the powers which havend airbus become more pushy and amending recently in terms of squeezing the supplychain on cost. Julie it makes it seem like they were not have that strong of a case . Wouldmond i think they have a strong case but whether it has effect remains to be seen. Julie are there any other, you said boeing rolled out making a bid. Has airbus ruled out making a bid . Say onend we can never the deal will go through. All kind of things need to happen. People talking about closing in a year. I think it is unlikely boeing or airbus would step in because that is theyll buying a significant piece of the supply chain that will create antitrust risk. Buyou are bond and by rockwell and other people saying, why are we going tobuy . It is possible there is some it doesinterloper but not seem like a high probability the we brought the news of the talks on was a month ago and nobody has stepped in. Julie thank you, ed hammond, bloomberg deals reporter. Larry summers explains why slow wage growth is a feeding into middle income anxiety. Middleclass income anxiety. This is bloomberg. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Julie hazy day and new york city, live from bloomberg World Headquarters in new york during im julie hyman, in for vonnie quinn. This is bloomberg markets. We see a selloff being led by financials. It looks like we are at the lows of the session with the nasdaq leading losses down by 1. 2 . Just touching the lows and the last few minutes. We will keep an eye on that and bring you up to speed from the show. Lets get to bloombergs first word news, Courtney Donohoe has more. Courtney the Trump Administration will end the program that prevented the deportation of immigrants rot illegally to the u. S. As children. Jeff sessions made the announcement. A loss level system of immigration that serves the national interest, we cannot admit everyone who would like to come here. It is that simple. Court