It is pretty small. We are looking at small moves for the major averages. A mixed point at this point picture at this point. Really tells us investors remain uncertain about so many macro concerns out there, from geopolitical concerns, uncertainty in d. C. , watching Hurricane Irma and the impact force since four sections in the financial market. Believes that in the relatively near term, we are going to see new highs for the major averages. Despite the bearish activity that julie was talking about, over the mediumterm, new h ighs. We will see if that happens. Kroger down 6 after the Grocery Store beat sales estimates. But they abandoned the practice of providing longerterm guidance. It is thought this has to do with the competition of amazon coming on. Investors not liking that. Equifax down, plunging, a big breaching that could affect 143 million american consumers. Chipotle down 4 . Cowan is downgrading shares to an underperform. The analyst says he believes sales may trail estimates, so setting up for a miss. Lets hop into the bloomberg. On the week we are looking at the kleins. This follows two weeks of weekly gains. Shows the weekly move up or down for not just the major averages, but the russell 2000 the Philadelphia Semiconductor index. It are the declines for the stocks in purple. The russell 2000 down 1. 3 . 1 ,lso have the dow down the nasdaq and s p 500, too. Lots of investors and strategist have been wondering whether the uptrend we are seeing, the bull market, whether or not there could be a turn. Sometimes those inflection manner. A if you had any doubt on the week on what the tone is, it is certainly risk off. Take a look at these havens. The 10 year yield down 10 basis points. The bloomberg dollar index down 1. 4 on the week. Earlier, both of those Asset Classes have been on pace for their biggest drop since 2016. Gold higher on the week, and then take a look at the mix vix. Soaring on the week about 18 . We are up for the day but down for the week, continuing a trend of alternating between losses and gains that started seven weeks ago. Consensusbuilding among Equity Investors that stocks will learn to handle the euro. Sap corporatewill exports. That is the stoxx 600 up by 1 5 of 1 . German shares have started them up strong. The dax has riven 2 this year this month i should say. The strongest developed market month to date. Options data shows skepticism does remain. The cost of hedging against the drops at its highest level in more than a year. As the eye on the dax month progresses. European bank shares still trading above the level implied makingan bund yields, them about 5 overvalued compared to the market. This is a chart highlighting that. The blue line is the german 10year, the white line is the stoxx 600 banks. Could continue to push yields lower over the coming months, leading to further underperformance. Eurodollar still above 1. 20, best run since august 18 last year. Mario draghi did not address the issue of Exchange Rates yesterday. We are also heading for the seventh weekly advance in nine. Euroi failing to halt the dissent yesterday. Julie now lets talk about volatility of a different sort. Businesses and residents are bracing for the worst as Hurricane Irma barrels toward south florida. You can track her path as well as two other storms on the bloomberg. After tearing through the caribbean islands, irma is forecast to hit directly by sunday. Miamidader in countys biggest evacuation effort. For the latest, lets bring in nathan crook, a reporter for bloomberg. He joins us from his hotel room in downtown miami. Thanks for joining us. How are we seeing businesses and irma . Ents bracing for fro to clear outrted yesterday, especially after they announced a mandatory evacuation part of the city. You really saw things that shut down yesterday. This morning, there is no one in the streets, lots of businesses boards sandbags out, over the windows, things like that. It is a wait and see mode. There is a lot of Nervous Energy in the air, to say the least. Mark you interviewed passengers at the cruiseship terminal. What kind of stories did you get . It was interesting. A big center for the cruise industry. A lot of these boats come in and out of miami. Norwegian had one ship that had headed out, but then they brought that back. They let some people get off, and those that stayed, they said we are going out to sea to ride out the storm. We dont know where we are going or when we will be back. There was a mix of people getting off the ship. A lot of those people were not from florida, had to get home. Other people were trying to get back in the area. There were a lot of people staying on the ship in bathing suits, reading. That was probably one of the best places to be to ride out the storm. Hite when Hurricane Harvey texas, a lot of talk about it affecting everyone. Different income levels, ethnicities, etc. That it was something that really hit all parts of the city. Im curious, in miami, which is also where a lot of wealth is centered, if that is also the case. You will really have to look itwhen the storm hits, is going to become a flood event, will it be a wind event . In miami, they are worried about the storm surge. The kind of wild card, from the last hurricane that hit here, there has been so much new construction. Financial district and parts of downtown are basically new, so there are a lot of these big, huge highrises, condos, office buildings. You have to hope they are constructed well. They say they are. See howoing to have to the architecture stands up to this. Some of the bigger mansions miami is famous for are all on these kind of barrier islands. As you see significant storm surge, that is going to flood. They have evacuated most of those areas. Stay safe down there. He is a miamibased reporter for bloomberg. Is also whirling markets from orange juice to natural gas to insurance and catastrophe bonds. Meanwhile, mexico was hit by it strongest earthquake in more than a century. We have this mix of Natural Disasters as well, politics in washington. This all has investors on edge. Joining us now is a macro strategist works for bloomberg. Cameron, we have seen some choppiness in the markets this week, at least looking at stocks. Elsewhere, there have been more signs of risk aversion. I think a lot of it has to do with uncertainty. You look at north korea, its difficult to project some sort of rational utility function on what they are trying to do, so that naturally leads people to scratch their heads. Markets generally dont like uncertainty. Particularly with Natural Disasters, we saw jobless claims figures this week much higher than expected because of harvey. There will clearly be a distortion, impact on shortterm economic data. What does that mean for the Federal Reserve . Thus far is that they will take a pause. We have seen a lot of the pricing come out of expectations for future rate hikes. That has led the bond market to rally very sharply and very painfully, if you are one of the remaining shorts out there. Julie the question is if that will last, if we will breach 2 on the 10year. You have been looking at past hurricanes and their affect on the bond market. Looking at a chart the effect from hurricane katrina, in particular, on bonds. I am old enough to have been trading julie you are not that old. Very useful looking. [laughter] clearly, there was a strong shortterm reaction, 40 basis point rally in bonds. Decline of 40 basis points in 10year bond yields. That only lasted a while. It soon became clear the fed would press on with the right hike cycle that was in train then. It took about a month. Before you knew it, bond yields were back where they started. The real issue here is does that that provide the same sort of guidance . There is an ancillary issue, Stanley Fischer resigned this week, which divides another vacancy on the Federal Reserve board. That is four. Yellen, we dont know if she will stay or go. There are some reports that say cohn is now out for the next candidate as chairman. Julie maybe. About six people, proper people, but pulled from various walks of life. Markets do not like uncertainty, so we dont know who will be in charge. If we dont know who will be in train on the board, how can we possibly project what they will do . By default, with inflation so low, naturally to rein in expectations. Mark i have a question on the euro. On the side of the pond, given the ecb meeting yesterday, we are about 1. 20, rising for a fifth day, highest since january 15. Draghi clearly did not halt the dissent. What levante the ecb officials become uncomfortable . Thats a good question. It is as much about the pace as the level. We have seen strong appreciation. Levels, from pretty low so this has been more of a normalization of the Exchange Rate level. Implicit forecast for eurodollar, ecb projections for 20182019 was 1. 18, so we are pretty close. It is hard to argue that this should meaningfully impact their policy when we are close to 1. 18. 1. 25 and above by the end of the year, maybe that has an impact if as you are talking about 6 away, which is the equivalent of one right hike, using a standard monetary condition and index framework. Julie cameron, thank you. Lets check in on the first word news. Courtney donohoe has more. Mexico has been rocked by what its president cause the biggest earthquake in a century. It had off the Southern Coast not far from guatemala. It had a magnitude of 8. 2. Houses crumbled and 26 people were killed. There is concern that aftershocks could make matters worse and there are warnings soon on the waves could reach 10 feet. British Prime Minister theresa may says she trust donald trump to keep the world safe. She says the president would do what is right for security and safety around the world. She also said he has good advisors. In israel, the wife of Prime MinisterBenjamin Netanyahu faces indictment on allegations of misuse of private funds. Netanyahu has said the allegations are absurd. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. I am courtney donohoe. This is bloomberg. Mark the house voting on a hurricane aid debt ceiling deal as we speak. We will keep you posted on that. This is bloomberg. Julie live from new york and london, im julie hyman. Mark im mark barton. This is bloomberg markets. Lets get to futures in focus. Irmahreat of hurricane pushing or juice and sugar prices higher. Lets get to the cme to discuss this with ted. Thanks for joining us today. As we have seen this move up in orange juice futures, you have to ask the question, given the importance of florida to the orange juice industry, what sort of levels could we reach depending on which pathway irma moves . Florida produces 50 of the was production of orange jews, the secondlargest producer in the world. The track is the biggest determinant factor of what we will see as far as losses. Production is mostly on the western side of florida. If the track takes a more western route, that can produce bigger damage. At this point, wind is the biggest threat. Flying oranges is the problem, that is where the biggest production loss would come from. Orange juice has rallied the last accessions six sessions. 1. 32 could be the major target in the upside scenario. Lows are probably in with any substantial damage. Takesl damage, if irma more of an eastern track and spares the western half of the state, that could go back to the 1. 40 level and its an opportunity to sell. It is a hurricane trade and it is fun to watch. Mark what about the sugar trade . The biggest threat for sugarcane is wind. Is harvested at the end of the month, toward october 1. Sugarcane is very brittle, so wind can lay down the crop, and it does not come back from that. Prices are hovering in the 13 sent to 15 sent range. The problem right now is there is a lot of global production. On the demand side of things, we are pretty easy to replace sugar with High Fructose Corn Syrup in foods, although there has been more of a trend to move to natural sugar. But also the ethanol industry. We use that for ethanol but we have an abundance of corn. The upside in sugar is relatively limited even with damage from irma, because we have other things in place that we would ration quickly. You look at thailand production on a global scale, expected to be up one million metric tons, exports up about the same. Chinese demand will only grow slightly. Watch brazilian weather, that is a big thing for sugar prices. I wonder if the bigger trade for Hurricane Irma might be cotton. Mark thank you for todays futures in focus. Still ahead, the house is voting on the hurricane aid and debt ceiling deal. We will keep you posted on how that goes. It is expected to pass. From new york, this is bloomberg. Mark this is bloomberg markets. Im mark barton. Julie hyman is in new york. Lets go over to you for etf friday. A new survey, not studying etf investors using the Charles Schwab platform and revealed a lot about who was using etfs. Joining me now is eric balchunas. Two things that you noticed in the survey you say are indicative of a bright teacher for etfs. What are those two things . Who use schwab are early adopters, selfdirected types, fairly wealthy. What happens here will probably sprinkled down to the rest of retail ultimately. Two numbers stuck out. Etfs as the primary investment jumped from 37 to 42 . That is a huge jump in only a year. That means they are repeat customers, a good sign. People are using them, having a good experience, and coming back. They are also majority longterm investors. That means they feel comfortable putting their nest egg into etfs. You also saw millennial investors, by far the biggest generation using etfs. The older you are the less likely you are yo to use them. Ton ofial dont have a money now, but they will get richer, they will inherit money from the boomers. That is to the viewer rising tides to me. Julie when it goes to a 40 from a 30 , what are those etfs replacing in the portfolio . Mutual funds, social security. Julie that is what encourages you. Is there anything that worries you . Eric your last question. They wouldle said likely use an etf in place of a single security. Etfs are placed in mutual funds, thats fine. They can do that all day long. But it etfs take too much action away from the things they the, it will creep up crossed to trading etfs, and could make it harder on one of those bad days. You dont want etf to be too much of the percentage of volume. Right now they are 30 . I dont want to see them still too much liquidity and assets from single securities. Presumably, if it is all going in one direction, and etf holding with an enormous amount, versus individual, then you would think eric etfs need the underlying securities to be liquid, a healthy market. Have too much liquidity away from them, that could be a problem. Julie we have to leave it there, thank you, eric balchunas. Mark still ahead, Research Firms and Fund Managers are bracing for impact. Big banks getting ready for new rules. What will Fund Managers do . Julie live from bloomberg will take orders in new york and london. I am julie hyman. Mark i am mark barton. This is bloomberg markets. Hurricane irma weakened slightly overnight but still projected to afford on sunday and bringing powerful winds and potentially deadly storm surge. It has been downgraded to a category four with winds of 155 Miles Per Hour and it has triggered a record of actuation from miami. From miami and it could become the most expensive Natural Disaster in u. S. History. Mexico, a major earthquake off the Southern Coast has destroyed houses and killed at least 26 people. It hit near their border with. Uatemala at a magnitude of 8. 2 the president of mexico calls it the biggest to hit mexico in one century. The race to be the new chairman of the Federal Reserve is wide open. The white house is considering at least six people, including economists and business executives. It goes against the narrative that the race was to people, gary cohn and janet yellen. Global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. I am courtney donohoe. This is bloomberg. Slashing thenks price of research for clients as they prepare for rules to go into effect. Revisedpean unions rules would require Fund Managers to pay separately for research and Trading Services they received from banks. Independent research shops are bracing for new regulations and the head is the founder of Wolf Research and joins us. Thank you for joining us. When we are talking about navigating the new landscape, a lot of different players who have to navigate it and where to do andin what do you how do you compare to other research . We work for institutional clients and in 10 years we have been in business come next april, we have been going i was the top analyst, i used to cover transport. I was also fortunate enough with my team to be the number one analyst at bear stearns for the last eight years i was there, among 80 analysts who cover different sectors. We found other passionate top analysts who love doing what we are doing and specific value to clients. We hired the top analysts at bank of america, deutsche bank, likeies, smaller firms Jenny Montgomery and buckingham. We are not doing everything yet but up to 17 analysts and covering a lot of sectors. When we hire someone, they are so differentiated and unique that they can make money for clients just based on research. Julie that makes it sound like, despite the fact that we are seeing some big banks cut the prices of research, you are going to be trying to hold the line on your prices, because you say your offering a premium product . That is the fight we have been in. We are one of the few firms that has been growing research and at the larger banks, the dirty secret is that there are three or four great analysts at the firm but they have 80 or 90 who check a box for banking, trading, brokerage, the services. Standalone, they would not get paid by client for research. Where impressive of mifid people have to look at the underlying value of the research. For the last 9. 5 years, we have been growing every year, we started with one analyst and now have 17 published Analysts Covering 30 subsectors. We also do a lot of fundamental research and quantum big data. We think it is important, the market has changed so dramatically. What used to help clients and make them generate money, today, if you are doing the same thing as 10 years ago, youre not getting paid for it. You have to be so different jaded and core with what your clients need to add value and i spend most of my day finding those analysts around the street that are that differentiated and they do not exist in every sector. When they do, we will bring them to wolfe. Create al mifid Cottage Industry for specialization . We are starting to see some analysts right away from the larger banks. The larger banks are starting to realize that the clients under mifid will not pay them for the 80 or 90 analysts that do not add a lot of research are you and the three or four that are very strong left at the banks are starting to say, i am holding up this department and i can do it better on my own. That is how i was thinking in 2009. The problem is, commissions have been under pressure. The clients want to have few onorters fewer parties the sell side and i had to have enough depth so we could help clients in multiple sectors, in case one sector was out of favor. We are seeing and will see, a major change in research. The big change people are not expecting, especially larger banks, is that clients do not want to pay for the whole department. They want to pay for the four analysts they care about any five conferences they want to but have been billed for 25 coverages and 20 they do not care about and research in their inbox that does not carry a lot of value. Mark the big issue with wall street, the Sticking Point is the change when it comes to research. It does conflict with u. S. Rules. Is the u. S. On a path to adopting similar style rules . Many of the larger clients have funds that are global. They are in europe and in the u. S. , asia, emerging markets. For them, they are already adapting and getting prepared for mifid when it comes into place in january. We are seeing some u. S. Centric forms, feeling pressure firms feeling pressure from their own boards and investors to read look at how they pay for research. There is a lot of focus on payment and what things are worse. Worth. We are have been having this conversation for nine years and think we have the value. At bear stearns i have 4000 clients come Institutional Investors and today we have fewer than 500 and each one of them is important and understand the value we bring. If somebody does not understand the value, we will do business with somebody else. It is very different for the larger banks and they will be to geta lot of pressure paid for analysts that have been stuffing inboxes but not adding value. Julie the people you have in hiring are experienced and topnotch analysts from other firms. What about the next crop of talent . They are coming into an environment where they will likely be potentially fewer jobs. There will likely be potentially fewer jobs. How do you then look to the next generation and make sure there will be that Critical Mass and you will get the topnotch talent of the next wave . Been cominghas down, particularly at the large banks, we are seeing less talent that wants to do research and we had to look harder. We are developing it ourselves. In my history, 20 years as an analysts, i developed five at that were right themselves as great competitors of mine in the sector which i covered which is transport. Every one of the analysts we hired has the same passion and intensity and teamwork, they are good at mentoring their own. Andturnley, we have read turnley, we have race for analyst from associate levels, Senior Analyst but not doing a good job at other banks and brought them to us and we have done this with analysts who were covering spots as a lead in another firm seven or eight times. They became an associate with us , getting mentor again and we can pay them more than the larger banks and retrain them to their mentor and day to day, and our director of expand thevery day talent because we have concerns that there is not enough talent at the larger firms. Julie thank you so much. Talking about the new mifid landscape and your place in it. House hasews, the cleared Bipartisan Legislation to suspend the debt limit and fund the government through december 8 and provide billions in disaster funding for hurricane relief. A goes to the president for his signature. Lets get to our chief washington to correspondent corresponded. Approved,this vote that is not the end of the story. Not the end of the drama in washington. And tension within the Republican Party between the Republican Party and the president. What is the background for this . Just in time for the holidays where there will be a new type of Political Drama surrounding washington. The house just voted on a 31690 vote, advancing more than 15 billion in hurricane assistance relief funding. Sending it to the president. Also, important, further raising the debt limit. Until december 8. A three month extension on the continuing resolution. When you look with a step back, the vote, perhaps foreshadowing with some republicans voting against it of the looming policy fights that paul ryan will face in the month of december when he will have to try to muster republican support of ultraconservative hardliners in the Freedom Caucus to not only raise the debt limit but pass a partial government funding bill to keep the government open. Julie as we talk about Hurricane Irma and hurricane jose, the funding bill initially was designed for harvey relief. Does it also encompass irma relief and will there need to be an additional relief release or that storm for that storm . A great question and so far this bill they just voted on than hurricanere harvey for funding and takes into account the funds for the that ishurricane, irma, said to impacted the United States in the next couple of days. There is also some other policy fights that could be impacted by the storm, including Flood Insurance reauthorization, many folks in florida, louisiana, texas, heavily impacted by Flood Insurance as a result of the hurricanes. Lawmakers in the house and senate have to pass some type of legislation to be extended the government involvement in the flooded Insurance Program as conservatives want more conservatives reform for the private sector. That has divided republicans and i anticipate we will hear more about Flood Insurance in the weeks and months ahead. Julie especially depending on the storm surge in florida. Thank you so much, appreciate it. Mark coming up, and what facts in hot water and what facts of equifax down 15 . Mark live from london, i am mark barton. Julie i am julie hyman. Our stock of the hour, kroger is plunging, its lowest level in more than two weeks after the Supermarket Chain abandoned its practice of offering longterm guidance. A sign is grappling with fierce competition in the grocery industry. And hee to their cfo says that competition is tough but they will not lose customers. We will not lose customers as a result of price. We are not striving to lower prices to drive prices down. We will remain competitive and will not charge prices that cause a customer to go somewhere else. Julie joining us for more is our stock reporter. There has been a price war among the grocery chains, even before the whole Foods Acquisition that was presenting a challenge. It looks like kroger is not feeling too comfortable about the outlook Going Forward to give an indication where they think earnings will go. That is a big deal, what wall street looks at, especially for an industry. We know that investors and traders are always looking at how companies assess the future. When we get earnings reports, you have to have a strong beat, even if expectations and numbers are good. On top of the general way things work, with the idea you have this Massive Company and massively powerful company in amazon breathing down your net. If you come out with good numbers and not very good forecasts, you will get hit in the market. The actual numbers were pretty solid, in terms of revenue. The food at deflation that a lot of us have been watching, from a macro scale is going the other way and prices are moving higher. This is a fairly unique day for kroger. Terminal, into my earnings history, you see a lot of green. Today we have read but otherwise, the forced ms. 4 first miss for earnings in quite a while. Julie kroger has been it is giant. The biggest berkshires short chain Grocery Store chain in the u. S. And a remarkably steady performer. The streak w the patients with various stocks and shorts. For sure, especially because you have this idea that you want to, not only improve the top line, but keep improving. You will have to start being disruptive on your own if you are facing one of the most instructive companies we know. Sales are actually looking decent. We have seen a bit of a turnaround. Looking at the recovery in revenue on the chart. A bounce back from the last couple of quarters with going up the they now have to think about how they will change their Business ModelGoing Forward. Until they get clarity with guidance, we will continue to see hot button sales investors on the street as they watch, not just kroger but Grocery Stores in general. Julie thank you, talking about kroger and the hot grocery industry. Reeling and the aftermath of a breach that may have exposed almost half of the u. S. Shares of the company plunging after it revealed its was struck by a cyber attack that may have affected 143 million customers. Equifax is one of the three Largest Consumer credit reporting agencies in the u. S. Faces a multibillion dollar lawsuit. A former special agent is charge in the Fbi Cyber Division from new york joins us from washington and is the chief Information Security officer of a secure infrastructure company. Thank you for joining us. This appears to have been an enormous fact that hack. Can you compare it to other large hacks. Record losses from yahoo Financial Institutions lose tens of millions. A difficulty in trying to assess the real scale of this attack. The public almost has a data loss fatigue. Numbersrd to wrap our around the numbers of losses and what it means for security and the Financial Impact in terms of fraud. The numbers do not tell the whole story. It is the type of data stolen and what and who has it. Julie to your point, the port of dead fatigue and trying to figure out the effect of this. When we have seen this type of data stole before, how often does it then go to the point of fraud . How often do the people stealing it uses themselves or sell it and end up stealing identities and money . , that is a great question because these investigations often take some very interesting twist and turns. 2014, thereach of initial thought was tens of millions of records were stolen for the purpose of conducting Identity Fraud that it turns out , when the government caught and ,ndicted the cyber criminals they were doing a pump and dump scheme stealing email addresses to public stock. The same thing happened when yahoo when hundreds of millions of records were reported lost, the thought was that this was intended to be identity theft. It turns out there were Russian Intelligence Services behind these hacks for private financial gains and also for authorized intelligence operations. It is hard to tell where this can go. The real danger is not necessarily the loss of these records, that is already out the door. Whats a carver either secretive professionals need to look at what can the adversary do with this piece of data to seek other control securities that are in place today. Mark equifax another largescale credit data brokers, this Massive Public relations and regulatory war over the years to present themselves as responsible holders of personal and private information. To what extent does this damage that Public Relations battle . Bethere will also always a challenge to keep up with the adversary, when i was in the government thought the private sector could do a lot more and now that im in the private sector, i see the challenges are big. Not just a resource challenge, competition challenge, meeting sales expectations. Enterprises that are large and often have the advantage of sufficient resources, and Companies Like equifax are spending enormous money on security. The real challenge is understanding the technology and staying ahead of the adversary. There needs to be leapfrog security advances. Security has not kept up with the rest of i. T. I. T. Has gained ground in agility and scale and availability. Security needs to catch up. That is part of the challenge enterprises has, where to make the right investment in this area. Julie the also also the individual challenge. People are fatigue and have heard about it so much. You have to assume your stuff has been stolen at one time or another. Is there anything that can be done on the individual basis to protect oneself . Consumers should take advantage of all the security offered by an online retailer or an online bank. Consumers many times choose to take the path of least resistance and push security onto the company they are doing business with. I do not think that is a viable model for consumers anymore. Consumers need to take more responsibility for their oh security, which means taking advantage of multifactor authentication, if offered by an online retailer like most do. No longer can a consumer just click and hope for the best and hope that the company they are doing business with is keeping them safe. There has to be some shared responsibility between the consumer and retailer. Julie thank you, good words of wisdom for all of us consumers. A former special agent in charge of the fbi new york cyber division. And a chief Information Security officer. Mark inflation data could tip the scales for the russian central bank, the governor of Russias Central Bank says a key Interest Rate is that height is still on the table. Julie live from london and new york. I am julie hyman. Mark this is the Bloomberg Business flash, the biggest business stories in the business, a 29 europe former Goldman Sachs banker has been made cfo. U. S. Operations provide about 70 of kraft heinz sales. Akzonobel ones that Profit Growth will fall short this year warns that Profit Growth will follow short and they will raise prices. It cfo is leaving for Health Reasons on the same date shareholders are expected to approve new chief executive. That is the latest Bloomberg Business flash. Approaching the european close, following stocks. Declines in london and gains elsewhere. Up for the day and down for the week, the closes next. New york andn 11 00 p. M. In hong kong with 30 minutes left in the trading day in europe. From london, i am mark barton. Julie from new york, i am julie hyman. This is the european close from bloomberg markets. The top stories were covering from the bloomberg and around the world. They know how to glory for hurricane category four hurricane making its way towards florida. The latest update on the storm is due any moment. Are investors starting to worry about the uncertainty surrounding the fed a leadership bid we will hear from tom elerian as get bahamas elerian. Theresa may says she trusts donald trump to keep the world safe. Does the Country Trust her with brexit negotiations