Conflict. The new u. S. Strategy for puts emphasis on force. Trump is announcing he is sending Additional Forces to join the troops in the country. A 53yearold massachusetts hospital worker claims last nights Powerball Jackpot prize. She says she was leaving work at night with a firefighter and they were discussing powerball. That is when she realized she one. She says he followed her home to make sure she got there safely. She says she called work to let them know she wont be back. It is the largest grand prize won by a single Lottery Ticket in u. S. History. Global news 24 hours a day. Powered by more than 2,700 journalists and analysts in more than 120 countries. Crumpton, this is bloomberg. Ie live from bloombergs abigail im abigail doolittle. We are 30 minutes from the close here. Markets are taking on a quick of a hawkish a bit of a hawkish tone. Theres a Storm Brewing in washington. Bidders areling being tries into a treasury bill. In actual storm is heading toward texas, where harvey has gasoline. Floyd mayweather versus Conor Mcgregor. We will have live to las vegas with dana white. After threatening a Government Shutdown, President Donald Trump is blaming the debt ceiling mess on gop leaders in congress. Request tweeted, i Mitch Mcconnell and paul ryan type of legislation into the popular the as till for easy va bill for easy approval. Could have been so easy, now a mess. Joining us from washington with the latest is bloomberg had of congressional coverage. Is this indeed a mess . Are we going to do what we usually do is, you get a messy run off and that of the last minute they hammer something out . Is there optimism . Republican leaders are trying to remain a united front and say there is no problem. Ryan says i am not worried about it. Everyone is trying to say, we are going to be fine, but there really are some problems. They come back at the beginning of september. The house is only scheduled to be in session for 12 legislative days in the month. They are facing the government funding running out at the end at the same time the debt ceiling needs to be raised. The president is threatening a Government Shutdown over the border wall funding. It is likely the two things get tight together into one package. Then, you have the prospect of some kindng to make of veto threat on a bill that would actually be used to raise the debt ceiling. I think there is a lot of concern. Republican leaders have no idea how tactically they will go about this, even though they are coming back very soon and have very little time. They dont know how they will go about doing this with conservatives demanding significant cuts. For is there any precedent being so much uncertainty with one Party Controlling the white house, senate, and house . Kevin theres very little. In carters presidency, there is something where the democrats were mixed up among themselves. That is a shutdown problem, not a debt limit thing. This would be incredible if it turns into a real problem on the debt limit, which it has bigger market implications. Implications of a potential default. That is were you are getting these signals from leaders saying, there is nothing to see here. You can already start to see the markets beginning to react. The onesm treasuries, that come to around early october, are starting to see bonds in the yields. You are seeing the markets worry about this. Obviously, we watched how does congress have had trouble doing orngs that should be routine delivering on promises that they have been making for a number of years. Is a fair amount of concern that something gets messy in here. Even if the debt ceiling doesnt get linked to the spending bill, you still have a threat of the Government Shutdown looming right out there. Republicans int the household be able to pass a , and theyre own hoping without spending cuts, to what extent could a bipartisan bill be passed without spending cuts . In theory, it is easy. Democrats made it clear they wanted that feeling hike with no conditions. I suppose they could still come back and demand their own conditions. We havent heard any yet. And the senate, i think it is not much of a problem. A clean bill goes through smoothly. There is a question of the house and what political price paul ryan might pay for doing that, given the demands we have seen from lawmakers. We have seen signals from some conservative lawmakers that they do not want to default and was put up such a big fuss to make it difficult. That is where the president x factor. E does he continue to push that shutdown . Iswe heard the pressure really on congress right now to get a win. Too, for thatnt, matter. That pressure transfers to tax registration tax legislation. Are they really feeling the pressure right now . Kevin the debt ceiling shouldnt even be a win. It is a routine thing. Its kind of a congressional creation. Basically, borrowing money to spend on things you already decided to spend money on. This is a real fumble on their own party if they have trouble with this. I think there is a ton of pressure on congress to deliver on taxes. There are still lawmakers talking about health care. It is hard to see that coming up again, but obviously it is not a 0 chance. The results and a pressure to deliver on taxes but it is not clear they have made that much progress over the summer in terms of trying to get down to specifics about what exactly they want to do. Is a longhere conversation to be had. One republican senator is growing out the day of september 24 as when he think it will get december 24, but even that seems optimistic. Abigail coming up, Hurricane Harvey is approaching the heart of the u. S. We will assess how big of the impact how big of an impact it will actually have. This is bloomberg. Abigail Hurricane Harvey is bearing down in the heart of the u. S. In the energy sector. Check out this great map. It shows the potential path of harvey and which refineries may be impacted. There are a number located in the direct path of the storm. For more on the potential thects, lets bring in commodity strategist. Thank you for joining us. You speaks frequently on the phone and your are kind enough to explain to me why this benefits the refineries so much the other crack spread. Can you talk to us about what you expect . Mike this is a good indication of how they make their money. And sell gasoline, diesel, their inputs are at the cost of crude oil. It shows the price going higher. They are making money on this depending on how they hedge it. It is just the price of that product going up versus their input cost not really going up. Joe what is going on is the assets that are in the path of this hurricane are the refinery, which turned crude into gasoline more though then actual oilproducing assets themselves . The capacity to use that oil has diminished, hence the decline in the price of oil. Mike that is the big picture. Who havee for people short trigger finger is. I think it is position squaring and giving an opportunity for hedgers. Traded, the most widely Commodity Markets in the world are energy futures. Shorte is a little bit on unleaded gases, this will cover it. You talked about refiners who are benefiting from this, how much is that offset by the cost to shut down the refineries and then some really some backup . That must ease into the benefit to some extent, right . But as far as quantifying it, i dont know. I look more at the futures markets. It looks like typically this is a spike and it doesnt go to far, as we get a massive hurricane like we have in the past. Joe we have a chart here, and this is the texas gas. Back several years, but were looking at the spread per gallon of essentially what gasoline costs in houston or texas versus what . Is thehe underlying standard gasoline futures. A shihtzu the spike but historically, it doesnt last. Right now it is in the fair stage. Unless we have a hard hurricane thats a big hurricane like in the past, it probably wont last. Hurricanehad a approaching the coast 20 years ago, it would be a different story for oil prices because of the shale revolution, right . How has the balance shifted . Mike we used to be bringing in crude oil from the gulf and refining it and shipping it back. A lot of it is now being exported. Restrictions on crude oil last year. To me, that is a key balance. We export 10 of the total production of crude oil and natural gas. This would then have an impact on Global Oil Prices not just here in the United States . Mike wti and more shortterm. It is more shifting. Back then, we were a net importer but now we are exporting. Abigail you and i are often talking about sharks. You have shared some great charts about oil. Here we have a great chart on unleaded gas. This is pretty phenomenal. Please walk us through this, explain to us exactly what is happening. Mike i appreciate it. This is the key try like to look at. This is the 52 week average. They are curbing and going town. And then the bottom one is the 52week chart of unleaded going back up. Exports of gas are pretty high. 10 or 11 of our production. We are still importing, but were exporting more of our incremental production. For keepingnk you us smart before Hurricane Harvey hits. Thank you. Julie it is now time for the Bloomberg Business flash. We work agreed to a 4. 4 billion investments. It provides a shared workspaces. The vicechairman and external director will join its force. Spacex successfully launched its 12th rocket of the year and related it on a drone ship for future reuse. The falcon 9 carried a satellite to orbit. This follows a post yesterday from ceo elon musk receive a first look at the spacesuit the company has been developing for future manned missions. I am not sure if he is modeling in that picture. Drug 11 major banks adjusting the Financial Risks of global warning. This following inc. Of England Governor Mark carneys recommendation last month. That is your Bloomberg Business flash. Abigail time for our stock of the hour. Kroger having a tough afternoon. Hitting its lowest level in three years. It is pushed down by the news on amazon and whole foods. Look at that, just plunge in the afternoon. And develop a cliff right before 2 00 p. M. That was all in the news we got with amazon and whole foods. But we heard as they are closing the deal on monday and they will begin slashing prices at whole foods from monday. They will start with chicken, eggs, vegetables, fish. I think i will leave my Grocery Shopping until next week. Amazon will start to bring in some of their products as well. Er fall off akrog cliff, but others did too. Joe we are down 8 here. What is time what is surprising to me is kroger already plunged when the deal was already announced, presumably on the fears of what amazon was doing. It is a little surprising that now they are making it official they are going down more. They regulated the deal quickly and as soon as the deal gets done, the prices will be cut at whole foods. What wasnt taken with the idea that amazon would immediately start cutting prices. Joe we still have no idea how much. It could be a nickel or something. It is true, but it is interesting because within the grocery space in the u. S. , there is a huge price war going on. We thought ill be is expanding alby is expanded. Had a huge impact on the u. K. Sector a few years ago where they were not expecting a huge price war. Consumers are really concerned about prices at the moment. Of course, the leader in the market historically in the u. S. Has been walmart. Have they reacted to the fuse about amazon and whole foods in the same fashion . It is also falling today. Nearly two thirds of the revenue from grocery and health and wellness. They are the biggest retailer in the u. S. And they are the biggest grocer. They will have to find a way to counter this. They are already fighting animal Amazon Online in ecommerce and they will have to deal it again. Were dealing with all the other grocers better price cutting. It is a big story about margins now. Joe thank you very much. Were looking forward to see how much is priced that really pan out on monday when they go through. If you have a bloomberg terminal, you should check us out on tv. You can watch us directly. Go to tv on your terminal. I am looking at it right here. This is weird because i think it is a few seconds ago. There is an inception thing going on. You can see our charts or other things happening. You can see whether areas guests are saying. The best place to watch tv. From new york, this is bloomberg. Miss . Whatd you how much of an effect will a shutdown of the economy have . We have the real gdp growth in white and then gdp Growth Without consumption in blue. We trekked it closely here. The implication is even when we have these shutdowns, it doesnt have much of an effect. When you look back to 2013, there is a small gap here. Tenths of ag percent in terms of an effect. We heardomething that earlier. It is really a nonevent for the markets if you have a Government Shutdown because it typically doesnt last very long. It forces the issue, but much larger would be the debt ceiling. Joe and. Could go on a long time and in. Very it could hit confidence and have affect beyond the amount of government spending. It doesnt seem to have had a real big effect on gdp. Ceiling is a whole another story. President trump warning this morning that the debt ceiling is looking like a mess already. This is a threeday chart of bills maturing. They spiked this morning. Not toothe rates market concerned about the debt ceiling yes. You see it around the shortterm bills maturing. You see a little bit of a pickup today after the trump tweets. Debticking with the ceiling factor, the last 10 we got really close to a debt atling issue back in 2011, the left, it was averted. We did see a correction for stocks. That was in 2011. At the bottom, we have the e your leading into that. Uptrends and started to reverse. A range of traders not knowing what is next. What we did see is a 30 drop down. Strong bear market. This year, we see a very solid reversal of the uptrend. The sideways choppiness. Who knows . Perhaps there could be some bearish action ahead for stocks. Julie i ran back to the dust because we have breaking news on apple. Theyding to mark gurman, are planning to unveil a new focus on the living room with an upgraded apple tv set, which could stream four k video and can highlight Live Television content like news and sports. This updated box is planning to be revealed alongside its new iphone and apple watch models at an event in september. It will run on a faster processor capable of streaming four k content 4k content. 4k is a Quality Standard that showcases content at twice the definition of a typical High Definition video. The clarity is often better for the viewer. Apple is testing and updated version of its tv app, which launched last year back in aggregate programming from apps offer livey streaming. A new offer expected to be rolled out at that event in september. The market closes coming up next. From new york, this is bloomberg. U. S. Stocks fluctuating. Gulf of ng as the mexico storm strengthened into a hurricane. Twitter, we want to welcome you bell coverage every weekday from 4 00 to 5 00 eastern time. Look at what stocks did today. We saw small declines across the board, though stocks bounced a little bit in a relatively narrow range. P 500 finishing near the lows of the session, down about. 2. Grocers, staples, biggest drag on the major averages, after the news that closing its amazon aquisition of whole foods on onday, but also will cut prices. Well dig into more of that in a few moments. But first, to the breaking news about. Told you apple is planning to unveil an settop box e tv that can stream 4k video and television ve content. So much. Nk you great scoop by you. How big of a deal is this for apple . Do have the likes of amazon point. S market at this is it the resolution that sets it apart here . Exactly right. The resolution is what is new here. Content, as you described before the break, offers double better,olution, it looks and its fully compatible with from sets that you see sony, samsung and lg. Its a big step forward. Amazon and ion like couple had in the last of years. As you explained, a great piece on the iphone about how hang backrategy is to a little bit, let others take he technological lead and then come through with a perfect version of it when theyre ready. Is going on here . Its a very good point. Not to dispute your point, but the rare case where this doesnt really matter. Hdr, 4k is 4k, cut and dry. Its not going to be much on an apple device versus an amazon device. Differentiate is on the content side. Apple and movie studios and roduction companies have 4k video content and other latforms are in talks to support this. So the anding special software would be getting more content well have to see how and if they pull that off in september. Stock sticking with the idea of content, there was a report that they were going to even more onion or original content. I dont know if thats confirmed, but what have you and how does it play into these efforts . Thats right. Colleague alex webb had a great report on this. Put out a few s original shows from planet of carpool karaoke. They have fans, but also criticism. Theyve hired some executives pictures to bolster their content efforts. And the apple tv, the new model, apple will want to present its original content Going Forward. I would not be surprised if we some exclusives from apple in the original content space on this box. It all plays together. Your reporting, you talk being ableet top box to show Live Television. Ith most of the digital tv services, you dont hear much about Live Television. Where is that going on these platforms, including this one . I think that ship has sailed. You see some content providers trying to rope their live tv into application. Apple tv right now does a great ob streaming consent even from bloomberg and cnn, espn, sports. And you can speak into the tv ask it to tune in to the mberg live or go into app to watch it live, but you repository of that live shows. Change with the Software Updates that will be introduced next month. To roll eyre expected out of this out in september. Hanks for joining us with the scoop from san francisco. You miss . D said that investors this rematurely exiting bull market. Jim, thanks for taking the time. Are interesting what you saying in terms of remaining vigilant about inflation. Years ago in 2010 when the started eserve extraordinary accommodation pass, there is talk about then we had n and bit coin come on the scene. Ow seven years later, there really arent any signs of inflation. New accommodation hasnt been added. Are you cautioning to be that risk . Ainst i think one of the things that has helped this bull market not only has the inflation rate remained low, but its stable. Havent been outside of one deviation of the inflation rate over the last 10 years, standard deviation, utside of that range of normality, if you will, since right before the last recession 2007 and 2008. And weve only been outside that 10year standard deviation range one other time since 1981. Inflation not ld have to go up much to break that upper end of that band. Currently at 1. 7 . Pper end of the band is 3 right now, to be considered abnormal inflation, but it would to get outside of that and if it does become abnormal for one of the few in the last 25 years, i think it would cause a lot of street, nott on wall only the bond market, but the stock market. To be ink one reason concerned, theres been so little concern about inflation long that you have given birth to a whole new generation just havent hat had to deal with it before. At full reason, weesh inflation and wage has turned up, whether you look earnings. And theres a good bet that the recovery continues, well breach inflation overall. And were on the brink of the trading range on the downside. That, its likely to aggravate commodity price pressures. Period of had a dollar weakness in this recovery when weve about at full employment. In the nextace that couple of years. All of those are very interesting points, jim, and i what you said t about inflation being in the low whatfor about 10 yearsable it could do to the financial markets. Chart in the t your erg that supports point. Bbdxy. Describe it to you. All the way at 10 now to 1. 5 . Belowstayed in that range 2 , this is over the last 20 ears, we see that the s p 500 has gone sky high. You are saying that if rates go to even just 2 , perhaps it a correction for the s p 500. Would that be a risk . Why do you caution nvestors on not exiting the bull market too soon. Heres the deal, i think, that right now what weve been is weve been able to grow employment at full at around 2. 5 . Rising real profitability, wages, rising real growth. Nd were doing that all withoutingwithout ing aggravating inflation or Interest Rate pressures. We can stay in the sweet spot f modest Growth Without aggravating inflation or Interest Rates, there is nothing to shut this bull market down. Long will that take . Side, if we move above normal, and it may be over be a lation, it would shock to the investor mindset culture and it could be risk for the stock market. And so i think its a risk of exiting the market because were in the sweet spot can ho knows how long it continue. If we exit that sweet spot and the curve and d bond vigilantes are wondering a 2. 20 10year when wages are at 3. 50, theres a lot stock market as well. I think the bull market continues the next few years, think its going to be nflation or fire, which ultimately ends this bull market. Jim, i sense two ideas here. Long as were in the spot but we should keep in that it will not last forever. What do you do today to ride having a market while portfolio positioned to be safe in the event that inflation breaks out . Well, a couple of things, i guess. You certainly cant go hide in onds, which you might ultimately do. You could hide some in cash or the sideline liquidity. You are paying a steep price of return. I would invest away from the United States. The nited states benefits most more than any other economy in the world from disinflation. Consumerbased economy that benefits the most from that. Are other commodities economy and industrialbased. Better againstup that than would the United States. Also cheaper valuations and underowned relative to u. S. , reasonss a lot of good to have a big overweight there. The emerging world even more so developed world abroad meet that bill. And within the United States or sectors, i think you lean towards the commodity industrial marketplace. So a lot of these are beat up low now with such inflation consensus sfoer cast gy sector, er could ls, capital goods play a role in the rest of this recovery. Nd i still think that technology selected could also play a role Going Forward financials have a special relationship as yields go from 3 , theyey are to above do well over that period of time with the reestablishment of the yield in this country. Lastly, might want it look at some commodities or real estate, things that have been favor for a while, but could benefit if the mindset in the idea that o reinflation is starting to happen. Stuff, jim paulsen, leuthold group. Thanks for joining us. News. Ve some breaking ulta beauty Second Quarter earnings are crossing the tape. Shares are down heavily. It looks like it was a mifrmd quarter relative to the Second Quarter. Beat earnings. 1. 75. 1. 83, versus sales missed, but what is the ing on the shares is fact that the earnings mid point estimate and this stock is down about 8 this on pace for its worst year since 2008. This early look at results not helping. From new york, this is bloomberg. We begin with a story weve been following this afternoon of charlotteston, south carolina, said a hostage situation at a restaurant is over the gunman has been shot by police and reported to be in critical condition. Shot by urant employee the gunman has died. Hostages all of the have been rescued and are safe. T happened on king street in charleston, an area popular with tourists. Huckabee sanders said that President Trump and top mostly an lawmakers are on the same page on several spects of the partys agenda, despite reports of escalating tension between the president leaders. Lican i think the relationships are fine. There will be policy differences, but there are also a lot of shared goals. Thats what were focused on. Meantime, sanders fired back senator bob corcoran that questioned the competency, calling it ridiculous and outrageous. Bracing for Hurricane Harvey. And torm is strengthening expected to be 125 miles an hour by the time it makes landfall or saturday. T global news 24 hours a day, than 2,700 ore ournalists and analysts in 120 countries. This is bloomberg. What did you miss . Start cutting prices at whole foods on monday the billion that the 13. 7 is set to close. They will lower prices on vegetables andnd some organic fish. Knit to shop until monday, but this, grocery stocks slipped on the news. Or more, bloombergs u. S. Consumer retail reporter. Im looking at my screen here down see that kroger is 8 . Sprouts down 6 . Giant, the he walmart that seems unstoppable, 2 . So investors think that amazon will do something with whole the grocery hape face. Is that possible . We knew they would do something, but its a surprise theyre doing this. Its monday. We were calling around this foods stores le managers havent have the message yet. Here. E some p. R. But its interesting. Sector s going into a theyve never been in before. Prices usually takes days, weeks, for a traditional grocer. Well do saying, no, it monday and the price of kale, eggs, chicken will be changed. They will throw their dynamic pricing algorithm at an industry thats never experienced them before and well see what appens and what people think will happen is more contraction kroger, rofit margin of which is down 8 , and costco. Costco, they sell kayaks, but business is groceries, and walmart as well, sales, groceries. And d you mention p. R. , that were doing a segment that costs will be lower. Saying, s a history of than d 600 more kindles last year. They dont even tell us how members they are, whether its 75 million or what have you. And what was telling in that was them saying, this is just the beginning. It was very much a, stay tuned, guys. This is the no hbrainer stuff do, we thought they would bringing the whole foods store excellent, which is its like a nike, it has cache same way that kirkland from costco does. Wholeng amazon prime into bringing brunging it into the point of sales. And lowering the prices, which would happen. We know the reputation of whole foods as whole paycheck and we its not going to be universal. Dont expect them to lower every store. Price in the they will try and they will fail at some things. The amazon day one ethos besos likes to talk about. Im fascinated by the margin. Lever of pens a margins that it plays with from ear to year and quarter to quarter. If you look at margins in the rocery store industry, whole foods is top of the pack. The bloomberg int intelligence dashboard. Foods in white. And average, yellow. Kroger there. We dont have walmart, unfortunately. Whole foods has trended down. Been flat here, but there is concern about a price war now and the effects will have. Its happening. Walmart is not on that graph. Amazon and whole foods not withstanding. Theyre spending billions to to not only battle everyone from kroger, their rivals, but dont discounters. Erman and walmart is saying, we have to beat these guys on price. Ascannot lose our reputation the price leader, so theyre spending billions. Jet. Comding billions on and online stuff. So its hurting their u. S. Operating margins. Is taking a hit right now. Good news for us. Companies margins. Thank you so much. You our , well bring interview with Esther George jackson hole wyoming. Rom new york, this is bloomberg. What did you miss . The main events for the jackson symposium come tomorrow. Joining us from jackson hole, bloombergs Key International policy correspondent. We eems appropriate that were talking about what comes down to inflation, food in this case, and the expectation it will be low. Really factor that in. They do in the sense that their price target includes headline inflation, including food and energy. 2 theyre aiming at has both in there. The discussion you were having its approach to whole foods is one of the problems that Central Banks the world is having. S Technology Comes into play, it makes it harder for them to generate the inflation that looking for. The price of goods, thats falling. Due to inflation. At the economy, you see that its 2 or higher. Eke mondayext of the my we have today, i think thats why you have to be too focused point estimates as opposed to the broader trends hat you see and the expectations out there. So its a question for them inflation. Y look at do they leave those things out inflations at the will rise when the price target includes them. Conundrum. Janet yelleneither that io draghi refers to here this year. A lot of the chatter these days in economic circles has to lotrevisiting a llt f the assumptions and models used to anticipate where inflation will go and rethinking ll of this seemingly foundational stuff. Is that the buzz in jackson hole as well . It is. Fact e talking about the that the phillips curve isnt holding. Ityre not ready to say that doesnt work anymore. Maybe its just that unemployment has to go lower higher y thought before prices kick in. Talking aboutople the idea that they do have to rethink their models. For the fed thinks and this falls into the what miss category what will they use to determine how big be. Balance sheet will this is what we discussed with Esther George. Its appealing to go back looks, we know how that but we are where we are today. And i think it makes sense to forward how we see the economy unfold. What you dont know you could be with a shock at any time. You will have another set of decisions to make. Operating framework is not something that the committee has opined on yet. It. S talked about theres been analysis under way, now, we have to repo e overnight reverse tools as how we begin to policy. E but its possible that george would support fund rate, buthe thats for another day. Back to you. The monthlong corruption trial will come to an end on friday. What can we expect from the verdict next . Bloomberg. First world for news. Charlottesville residents will to talk to city fficials about the rally that turned violent. Here will be a town hall in collaboration with the department of justice. Our community has been shaken to its core and the gathering be the beginning of a process of recovery and renewal. White house advisor jared push to as begun a renew middle east talks. Cushner met with benjamin abbas. Ahu and mahmoud rush yeah he is preparing to stage what could be the biggest military display since the cold war. Of a wave of Russian Troops is scheduled to arrive in belarus this month. Locations for the exercise. West 17 western experience estimate personnel could participate. Ofcomes against a background strained relations between washington. Had withdrawn its enjoy after an assault on saudi diplomatic mission, but leading the e isolation of qatar. Providing them food ir routes and supplies. Bloomberg. Lets get a recap of earnings. Ulta beauty earnings are crossing the wire. 3 . Res are lower by it looks like a disappointment, not in terms of the Second Quarter. Earnings beat estimates. They put up 1. 83 versus 1. 78. Com this happened a few quarters ago. It happened at the mid point of he e. P. S. Range has missed consensus. And so shares of ulta beauty postmarket. Its up 150 over the past five years. So for a whole, it was greg and rowing and growing, and since then, its hit some speed bumps. I want to hit earnings from broadcom. Earnings per share continuing at 4. 10. It looks like revenue is coming with ghly in line estimates. And Fourth Quarter forecast for revenue and adjusted growth margin in line with forecasts. Emailing with someone that covered them and they said, in line is not good enough for this company. 46 yeartodate. When you look at that performance on the back of that, by ompanicompan company neededt more. And gamestop up after another oh, now theyre down. They were up earlier. 1. 69 billion sales but e. P. S. Billion, light. Asically, its around the range. That stock has been hit hard lately. What did you miss . Day for decision jaeyong lee. Tomorrows decision will returnne whether lee can to his role as vice chairman fter being held in detention since february. All of this sounds extraordinary. Theactually watched some of trial. How did the prosecution do . Hopeless the day i was there. They got taken apart by lawyers. S it was like the witnesses they brought were witnesses for the defense when they were wednesday witnesses for the protection. What ive been told was that it was fairly representative of how going. Ial is is that a matter of the actual case, of the evidence, or it a matter of the deftness of the team . Any case, is there a conspiracy, using inference and circumstances to patch together some kind of collusion. You need somebody who will come what d say, yes, this is is happening. I was responsible for it. I saw it happen. Witnesses that were called, particularly people from be in group, that would the best position to know what went on, refuted that it was extraordinary. Walk us through what we should expect with the verdict. How many charges are there . What are the most serious ones . Do people think are going to break for lee or him . Nst on a very high level, hes bribing the president of the country. And it doesnt get higher than that. I think the prosecution has for a 12year sentence. It has enormous personal for him, should everything go against him. And, quickly, what about the implications for samsung either way . Well, while hes been confined because he hasnt been released on bail, samsung has ever before, an earnings are at record levels. What does that tell you about or her samsung needs him not. You decide. All right. Ian king, thank you so much. It. Eciate coming up next, officials are with the re concerned nations opioid epidemic. Hat if the damage is even greater than we thought. Well look at the sobering extent of that crisis. Rom new york, this is bloomberg. What did you miss . Epidemic has concerns from doctors to lawmakers. Hat if it has been underestimated . Thanks for joining us. What in your Research Suggests epidemic, which of course many people are aware as a massive issue, may be worse than what people think . I found is when you fill in missing pieces of the data, 24 more opioidrelated what officials will tell you. What numbers are we talking here . Drug overdoses are said to be the leading cause of death of 50. Ricans under they put the figure at 59,000 to 2016. 0 in does that square with your higher . Or is it even my data only goes to 2014. Numbers are lower. And i dont measure differences in the drug deaths. Its more the drugs involved in those deaths. Deaths is entage of higher than the official statistics would suggest. Your work has been groundbreaking in terms of tying conditions to this opioid epidemic. How did you do this and what did you find . So for that work, we were looking at how changes in the related to y are opioid deaths and emergency room visits. When unemployment rates are igher, theres a larger number of opioid deaths and emergency room visits. Something that weve seen is obviously, there was a surge in nemployment and per your research that could lead to addiction. Els of now we see employers complaining theyre having trouble filling jobs because so many workers al, potential of issues with addiction. Right. Expressed the fed has concerns about that. We didnt look at that in our to bech, but it does seem becoming a serious issue. Seeing these ere trends, where you can tie the area, onomics of a given region, to drug use and verdoses, how does it inform the policy response to it . As can it be better targeted a result . I want to be clear that in our work weve looked at how economic the conditions are related to opioid deaths and emergency room visits. It does not imply that its the most important factor. Seeing is a were very large increase in these inds of drug deaths that is related to the economy, but also general drug problem. So a lot of what ive been doing or what weve been doing is get more Accurate Information which will allow us to target our efforts more at areas that have the biggest problem. I want to go back to what you the talking about in beginning regarding the gap between what you estimate the crisis to be and the official numbers. Can you walk us through more the methodology that you use to add in the people that you think are being in the official numbers . Sure. If you look at death certificates, and in a lot of cases 20 to 25 , depending year, there will be a drug Poisoning Death listed, but involved, kinds of drugs involved, are not specified, and thats a problem been fairly widely understood and its been mentioned. Predictive s i used methods to say for the cases are we do know that drugs involved, what are they based on n terms of demographics, education, day of the week of death, those kind of things. I use the prediction methods to predict involvement drug isnt re the specified. Why is it so important to get as precise information as the type of drug and are there policy changes that into effect or being worked on that would make it more ommon practice to be specific about the drug listed on the death certificate, for example . Right. So the first reason its important is we need to have general, information in but more than that, it turns out degree of the misstatement varies dramatically by geographic area. For example, in pennsylvania, the reported numbers, reported less than half what i calculate as being more accurate rates. States, reporting is pretty good. So if you want to understand here we have the biggest problem and target your efforts, ou need to know what the statistics are. I think theres an effort being the reporting and its gradually Getting Better over time, but we have a go. S to professor, in terms of putting aside policy changes and come there, what do you think the solution is to this epidemic, quickly . Is,hat i think the solution it will be a multifaceted approach. Public it as a real health crisis. Ertainly it will involve more treatment being available to people who want it, but thats only part of the solution. Thank you, professor. Ruhm, university of virginia professor. Thanks for joining us and sharing your research with us. Put the gloves up, were going into the ring with u. F. C. To talk dana white about the boxing match between conor ayweather and mcgregor, this saturday. From new york, this is bloomberg. Its time for the Bloomberg Business flash, a look at the in the business stories news right now. The total Board Membership for is up to 12. She sits on the board of stanford as well. Are going solar run tentative agreement. Location and mortar will have hardware products and sellers merchandise as well as andson support for merchants using square technology. Hats your business flash update. What did you miss . Esther george has been calling for higher Interest Rates for off inflation, but there isnt any inflation. Mckey is in jackson hole for the economic symposium and thinks thee what she fed needs to do when they meet next month . Favor of doing this for some time. And i think the estimates is in athat the economy good place to begin doing that. So i will look forward to the discussion in september about opportunity. Do you have any estimate of markets t on financial yields t, particularly de if it will amount to a facto tightening . There are estimates, but we dont have experience doing this. You would expect because of the duration of the assets, that as Balance Sheet, i hope its reflected in the yield curve. How sensitive will you be . Taking nk were always that into account, whether it a ers the path of policy is broader discussion. Do you think that asset prices deflate as you shrink the sheet in the way they nflated when you blew up the balan Balance Sheet . I wish i had experience to here. N hat i know is the aim is to boost asset values. Whether that ends up having a symmetric reaction on the other side, i think we have to wait and see. But i think, again, the very approach thats being taken there gives the committee markets time to understand where that market sheet is heading. One thing you havent told investors is how big the Balance Sheet will be and that will Monetary System you end up using. Are you in favor of staying with system of excess reserve or back to setting a fed funds target . Its appealing to go back because we know how that looks, are today where we and i think it makes sense to judge as we move forward how we the economy unfold. What you dont know is you could shock at any time and you will have other decisions to make. Ultimate operating framework is not something that the on yet. E has opined theres been analysis under way. Now, we have to use ioer and toolsernight reverse repo as how we begin to normalize policy. As part of the running for now and ant to do this why you want to continue to raise rates, is it because you cushion, some tools, should the economy turn down . I think that would be obviously attractive when you think about the next downturn, would not say its my primary motivation. What you are trying to do is sure that the economy will to grow n the ability in a sustained fashion. So the motivation is, where is inflation t, how is performing and does it suggest that Interest Rates need to reflect that . Motivation. Whether it gives us all the ammunition we need at the time need to decide that would be an added benefit. Kansas city fed president Esther George. Coming up, well let you know hat is happening in tomorrows trading day. This is bloomberg. Scombr what did you miss . Saturday night is fight night. Goes glove to r glove with Conor Mcgregor, the martial artist. Sportinghighest touted event either. To get a sense on the business boxing, lets bring in dana white, president of the ufc, and joins us from las vegas. Thanks for joining us. Congressional wisdom is that mcgregor has no shot in this fight. He will win orif lose, but if he does get and annihilated, are you look bad on will the ufc brand . No. Its the boxing people that are annihilated. L be when two people square off that know how to fight, anythings possible. Conor mcgregor has knockout power in both hands. He can win this fight. The same thing, if conor knocks mayweather out, is it the end of boxing . No. Its a fight. Its a fight between two guys that know how to fight. Matter who wins, its not the end of their sport. Of here may be some level suspension over who will win, not the money to be made. Theres a lot of it. An you give us some statistics of the breakdown of who gets what . Yeah, both guys will cut with both sides. Floyd mayweather is making well over 100. 100. Egor could make it depends on the payperview buys. Its the most distributed combat sports event ever. Countries on 00 payperview. Boxing guys are not big digital guys. Were very good in the digital space. Its tracking as the biggest digital event weve ever been involved in. Matter where no you are on this planet, if you have wifi, you can watch this fight. Given some of the questions about mcgregors chances and what it means for u. F. C. , how do you take this airly highprofile not fairly, very highprofile opportunity and translate it nto a win for u. F. C. , even if mcgregor doesnt win . What do you do with the ublicity from this, specifically, to build u. F. C. Up . Combat is great for sports period. Like this come together, these type of events bar is set re the for the right guys and the right time. At the right and what a big fight can do. Of ringside ations physicians are saying it should not happen at all. Larry lovelace is saying, i someone uly fear that will get really hurt in this upcoming fight. This . Do you think about and to be cynical, is this a promotional ploy . Listen, a doctor has to, i interested in the health and wellbeing of the fighters. Fightingregor has been his whole life. Its not just a guy off the treets fighting floyd mayweather. Hes a fourtime World Champion himself. An handle listen, this thing is being nevada state he athletic commission. The medical attention has been done before, during and after fight. I care about Conor Mcgregor very much, personally and professionally. So i would never put him in harms way. Great stuff. Luck. Dana white, u. F. C. President , thanks for joining us. Thank you. And thats it for what did you miss . I dont know if you will be doing that on saturday night. Probably not. Bloomberg technology is up next. Have a great evening. Have a great evening. Blooms 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. You are watching bloomberg technology. Lets start with a check of your bloomberg first word news. That the hostage situation is over. The gunman was shot by police and is in critical condition. The restaurant employee shot by the gunman has died. Police say all the hostages have been rescued. The White House Press secretary fired back today at tennessee senator bob corker, who trust in questioned President Trumps comments last week. Its a ridiculous and outrageous claim and does not dignify a response from this podium. Nabila the National Hurricane center says that harvey has strengthened and is packing winds of over 80 miles per hour. It is forecast to get Even Stronger as it approaches the coast. The navy is calling off the search for sailors who went missing after that collision near singapore between the uss mccain and an oil tanker. They have identified the remains of one victim. A massachusetts hospital worker is the winner of last nights powerball. She said she was leaving work when she realize