Between boeing and canadas to protect jobs out of a plant in northern island. The government relies on both both parties to pass legislation. Boeing wants the u. S. To impose tariffs on planes. The United Nations says the number of refugees fleeing the about 370as spiked to thousand. The official estimate today is more than 50,000 higher than yesterdays. Thousands of muslims denied. Itizenship have fled on foot the u. S. Has condemned the violence in the u. N. Says flights have been arriving at nearby nations with supplies. Global news global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Were 30 minutes on the close of trading. Stocks continuing to act at records. The s p just shy. The question is whether you miss . Introducing the iphone 10. Tim cook and company betting that consumers will line up for a 1000 Something Else anticipated, in turn around strategy for goldmans trading business. The president and coceo explains. If you are wondering is why amazon has a can of been in your shopping cart, it has become a supermarket. What did you miss . Omaha all eyes were on apple for the biggest Product Launch in a decade. Here is tim cook when speaking about the iphone 10. Tim iphone 10, the most vast iphone we ever made. Incredible new design, true depth camera system and the more powerful technologies than we ever put in an iphone before. It really is the future of the smartphone. More, principal analyst at Forrester Research joins us now. Great to have you on the show. As far as leaks concerning these products, we have pretty much all the details. More announcements particularly on the iphone 10. There were ahink lot of surprises given the rumors in the market. Certainly bringing out first, it was a head fake. Coming. New it was joe in terms of sales, obviously every time a throw to new thing and they have a big number, are people going to pay for it, how confident are you that this will be a big hit . I think it will be a big hit. We question this every time they, with the device and the price goes up. I do not think consumers have to have the next technology today, but by the time the price comes down, consumers are very ready. I think we will see good sales in this Holiday Season in the next couple of years as well. Joe one thing peoples attention, the use of facial interaction, the fastow unlock. The face manipulation features. Is this the start of something new about how people interact with mobile devices . It is easier to unlock the device through facial recognition as opposed to pick up the phone and touching it. I think we are a new and fun and innovative way for people to communicate with one another. Will have a lot of fun with the camera. I think people will buy this just for the capability to do portrait selfies alone. All the details everyone is excited about are on the iphone 10. Be just the latest iteration of the existing iphone. Does this mean the iphone 10 will be the new standard that will need to be updated every cycle . I think it will be like previous cycles where consumers are updating their phones about every two years. I think we are still going to continue to see the trend. Look at another big announcement, putting the Artificial Intelligence chip into the phone. The screen is bigger, it is brighter, and all of that will appeal to consumers. What i think consumers will appreciate this with the ai does for them. Changes will be subtle and will happen over time but we will back and we want not noticed today but we will look back and say cannot believe it was so into mania two years ago. It is such a better experience today. A lot of focus is on how the phone is adapted to augment reality on the focus that the company itself is putting on that in particular. They talked around that with snapchat and the work they have. Een doing here what did you make of that . Is this a pivot point for apple in terms of the augmented reality offering . I think im the one hand, we could debate who is further ahead but doing so helps apple keep pace with facebook and google and other big giants here on the west coast. I think what we saw was what was expected. How we communicate with friends and family, and it is essential platform for apple and to attract those developers in that revenue, so to speak. And it will be interesting if it is in more media gaming and communication. Not just the iphone. But the reveal of the new apple watch. Lets listen to what was said about that. Last year, we told you the apple watch had already become the number two watch in the world. Today, i am thrilled to tell you, the apple watch is now the number one watch in the world. [applause] the number one in its market. The latest version will have its Cellular Connection i will not be tethered to the iphone. Do you wonder whether the new generation of apple watch will displace some demand for smartphones or iphones . I do not know it will displace demand for smartphones but it will help apple make the case that it is not just a luxury item or nice to have but something that is more essential. I believe what apple is doing is building on a strength, as the watch, the fitness and health care device, but when they do things like unlock or untethered it from the phone, the voice is better come we can stream music, communicate on the device and we are starting to see killer applications the watch will have to have for this to become eddie a device that is essential for me and not just a device to have to that will help drive sales. Joe it still feels like there are watch people and people not watch people, who may not be inclined to wear an apple watch. That i maygesting have to get an apple watch at some point, though i am not inclined to where the apple watch at all. Especially with the watch, it is something to experience. When youre listening to music, it becomes my identity device. Out paying for things, on a jog, i can pay for stuff on the way home without taking it with me. It is a magical expense. They upgraded the apple tv. Will they make a stronger play for the socalled connected home . Right now, a lot of anxiety about amazon running away with this area. How competitive and how much is apple really out fighting back there . So i think it does help with that. If we look at where apple sales come from, it is still primarily iphones. The future growth will depend to some extent on the products for the ecosystem. Things like the tv on the watch all help but we look forward and apple is more dependent on the ecosystem of partners and for services as well. It is much more compelling for me as a consumer to pay 20 for myic if it is on my watch, tv, my home pot, other devices at home. What about content generation here from app . Can we just set that aside given all the announcements we had particularly on the hard where front . That will be critical. Absolutelyis crippled critical to a great experience i have with the devices. I agree with you. I think what we did here today is live sports. It is the thing everyone points to. We thought, why cant i cut the cord. It is live sports. We do not have to have a cable subscription to get live sports. Also the offer of a 80 movies and tv just ok is a generous one. Thanks to julie, and spoke analyst and the latest on apple from california. Coming up, mexicos premise or says the company will likely expand the largest annual oil hedge next year. In an exclusive interview with jose coming up next. This is bloomberg. Scarlet mexico will expanded 2018 according to the finance minister. It does this with a small group of investment banks each year in what is considered wall streetss largest and most secretive annual hedge. Meeting in new york today to speak with investors, he met exclusively with our investor bureau chief. Basically just a couple. It is something we have issued for the last almost 16 years now. Given that now, that location, it is a natural consequence, in a concept, we can review jointly with the market, with the world bank. Both location and magnitude actually trigger the bond which would be a payment to mexico. Of the epicenter. Information will be undercover. And in our territory, that would be covered as well. So you are helpful. We are purity call out both, fors important recordkeeping, and now that we actually have an impact, one needs to look at the numbers more carefully, and that is why we put in what the market would have, discerning whether or not the chigger is therefore met. It would be the second time we used it. Weve the her can also trigger the catastrophic our picture in terms of dealing with disasters in mexico, because it adds an element with insurance, and therefore the is to facey year these disasters are from a financial perspective, mexico as well set. Our riske manage disaster contingencies. Another reason every year, meskos finances, you to one of the biggest commodity hedges and the planet. Are you almost done with doing the program for 2018 and what kind can you share . There are three elements to that, a buffer in the economic package. First is the fact that more and more, we use the information to set the limit that would put forth to congress. That provides a certain level of certainty. 46, roughly where futures would have the price on average last year. That gives us an element of certainty. Another is relatively recent. We established within the budget have a fundus to that is there in case of the budgetary income. Pesos. 180 billion it is a good amount to have. It allows us more flexibility when we access the market in terms of prices to look at so the combination of the two, were ing the market, the process of finishing the program. The combination of the fund. It puts it in the budget. The set program, 81st 80 , 95. It is a large program. Once we do it every year, when completely done, well get the full details but we fire it off so we are confident in saying 46 coverage, have good support. Years,ared to previous one thing that is different for mexico now is gasoline prices are liberalized. Imply you have to increase a little bit the volume that you have to protect your rates . There is that element to it in terms of looking at how much we would cover, but both because the platform is smaller, to what we saw on the past, the degree old revenuesely on is that much decreased. It sensitivity to the price, has been reduced. Inis to be marginally higher terms of the fact that we dont have the natural coverage be used to have because now our Energy Balance is pretty much in tune with we almost export as much as we import. It is also true the margin to exposed to the price of oil has been dramatically reduced as well. In 2012, about 37 of revenues were related. The number went down to 16. Beh those factors, it would right to assume the cause was lower than the previous year. Again,milar amount, but at this stage, i think from the , 46pective of the debate seems reasonable mostly because we are able to cover it well in the market fund, and it is very much in tune with what the market expected. Was a mess can finance mr. Speaking exclusively to bloomberg in new york. Time for a look at some of the biggest business stories in the news right now. J. P. Morgan chase, the chief executive officer jamie dimon spoke at an Investor Conference in new york today. He highlighted bitcoin. You cannot have a business where people can invent a currency out of thin air and think people buying it are really smart. It is worse than it will not end well. The currency he says is a fraud. Has grown fourfold over the past year. Closer multimillion dollar deal with airlines, according to the malaysian Prime Minister who met with President Trump today. , 73ncludes 787 dreamliners seven mock 10 jets and General Electric engines. Dealdent trump said the could range between 10 billion and 20 billion. Crash killedida the florida navy seal. The safety board determined that tesla allowed the driver to use a system on a road it was not designed for. The board recommended they restrict systems not applicable. That is your Bloomberg Business flash. Scarlet later today, do not miss an exclusive interview with the show with the founder and chairman of hedge fund a megaadvisors. Like asia on daves beginning at 7 00 p. M. New york time at 7 00 a. M. In hong kong. From new york, this is bloomberg. Scarlet when picking stocks, go big or go home according to Oppenheimer Funds with equity strategy team. The lead equity strategist said they are set to extend years of gains relative to small caps. The chart shows the ratio between the s p 500 and the brussels 2000, a small cap mark. Since his 30 year low in march of 2014, you can see the ratio has recovered about 13 through the end of last week. The ralliesclearly, last a number of years. There is still more room to go. The hit if history is any indication, the current wave of it cap outperformance could last at least two more years. How thest looking at index has done so far this year. About 11 . Russell is gaining by 5 . You have seen the boost but it will continue. Interesting and relative to what we have seen, a significant upside potential there. What about what is going on in europe . Despiteseen a selloff all of the optimism we saw a earlier in the year. Relationship we have seen, pretty much in the reflation trade, the light wind is showing you what is going on with the european cyclicals here versus defensive. You can see the relative outperformance is 77th Percentage Points here today. A blue line is showing you what is going on with the generic 10 year yield. Despite the part we saw earlier this year, you can see pretty much flatlined since december of the back end of last year. A number of analysts are coming out and saying we continue to see the cyclicals outperforming here. Watch the autos, which amuses me because if we look at what mario he suddenly pushes back on suggesting they have given any clarity at least until december on the retracting qe, but also the strength of the euro we have seen is also a factor and Inflation Expectations are below where they were when they announced qe. It is a great chart and of course similar to the u. S. Where there are a lot of reasons to think yields would have been hired where they are the same in germany. You look at that outperformance. It is not as intuitive why rates are as low as they are. Here is something that could theoretically be a precursor to hire rates this morning. Business optimism survey. It is one of my favorite economic releases where they ask Small Businesses all kinds of questions about the economy. Check out the white line. They asked them, are you planning on doing more Capital Expenditures . The percentage of Small Businesses who say they are, 32 , the highest since 2006. So long in this recovery, people have asked where is the is this investment. There you have it here the blue line, we of course they do see the survey turned chart numbers but the headline Small Business optimism. Right after the election. People in the survey tend to be more conservative, and they were excited donald trump one. Won. On taxes orlan anything specific, the optimism boost of Small Business leaders that we saw after the election has held up. Interesting stuff with the survey. Tommys to say it was really an optimist a pessimism index. Even with that, expenditure plans actually rising. Even if optimism is not chaining changing, expenditures are. It is fascinating. Scarlet minimum games for record highs for the dow and the s p. Whatd you miss . U. S. Stocks rally and cross the board for the s p 500, record highs. Apple shares the finally reveal a new product. Some joe weisenthal. Onyou are tuning in live twitter, we want to welcome you to our closing bell coverage every weekday. We begin with our market minutes. S p 500 index on record highs. Quiteg in on 2500, not there yet. Quite not as big not quite as heir yesterday crocs some followthrough. This unveiled an eight s or eight plus, i should say, and the 10. As this has now become known. Is at the start of tim cooks recognition for apple overall. Then they finish down on 4 10 of 1 . Down a bit in anticipation of by phone Product Launch. Something else to keep you posted on, energy. Had rallied big time able to cut thinking it would be a supplier there are supporting an open Wireless Charging center. Theyre still trying to get clarity on this. For now people pulling back on this. Another big thing crocs enough you necessarily need to buy apple we should also highlight mcdonalds, better than this percent. Crocs texas will have a better result this quarter. There is also concern from Different Research reports that perhaps their sales may stumble a little bit here. Lets look at the Government Bond market. To up, 10 year yield continues to come up. Friday was a 2. 05 on the 10 year. Now up to 2. 17 . In the grand scheme of things, this is incredibly low. Shinzo abe says its important for people to target 2 inflation. Well talk about austrian debt ticking higher nicely. Today coming out with a century model. Aey said they might have model that will pay off in the you see the 10 year there. What was the yield on that . Forgot to look it up. Oh no believe it or not, people arent demanding into much. Suits going on in the currency i want to show you whats going on in sterling as well. And inflation data talking about this yesterday. Certainly in the last 15 months, feeding into Something Else we have obviously had people today ranting about that coin. The bank of Merrill Lynch also sang that this is the most crowded trade in the financial markets. Theres lots of increases this year. In gold you how much you have to buy one bitcoin in this chart. Lets move on. This with me while i pull one up and try to be organized today. This is looking at china. There been a threeday decline. 7 over the last three days. Doesnt sound very exciting but what you are seeing in that they wanted stability ahead of the communist Party Meeting this fall. They have removed the 20 reserve for training at the current form, so that makes it less expensive. Thats one to watch.