Disney. U. S. G to expand in the over in hong kong, Police Used Tear Gas and pepper spray on demonstrators. Protesters angry over jenna but his plan for the hong kong 2017 leadership election all coming to a head now. Report that pimco for 10 billion in assets. More on the fallout of pimco, Erik Schatzkern with an interesting take on what bill grosss departure means. First, mary, tell us about the 10 million. That is relatively small compared to what they manage. That is true. The 10 billion is really a drop in the bucket. People are very nervous or there is a report that there is maybe 30 of their assets. A major threat for them. Meetings onse big friday. They deployed all of their investors trying to control of all out and saying, it has it is the same it is oh is been. This will be seamless. Everyone loves stan dan and thinks he is a great investor. It was learned bill gross was leaving. This all goes to your point about how difficult it is when firms become closely identified with those running it. I have been obsessed with bill grosss departure ever since we learned about it on friday. Over the weekend, as i was thinking about this, i thought it is fascinating to me not just for what it says about pimco but what it says about everything else. Bill gross was an Insurance Industry key person. So closely identified with pimco that it was almost unthinkable pimco could exist without bill gross and bill gross working for someone else. It wouldve almost been better if bill gross had been hit by a bus as opposed to going to work for another firm. David einhorn in greenlight capital, bill ackman, and berkowitz. Identifiedfirms are with those individuals and investors cannot possibly ifgine what it would mean those people were not there and which of yourint holdings are subject to key person risk . If that key person were to disappear, tragically, Something Else might happen. What would happen to your money . If theyre illiquid investments, how quickly could you get them out . They amassedw these assets in the first place, i really trust this guy and he seems really smart. But then it becomes a huge risk. Much. Nk you so i want to head to hong kong overseas were tens of thousands of prodemocracy protesters took demand freets to elections. The protest began on friday over chinas plan to control the 2017 leadership election. Andrew joins us now on the phone from hong kong. What is different this time around from hong kong . They are not going away. The idea was to occupy the Central Business and they have. They got near it, but now the are running the energy of the protest kind of overrun the original organizers who talked about a much more maybe 10,000 people occupying and not disrupting business. Ie scale of this thing now just got back from the protest. 30,000 in the main points. It spread to other parts of the city. Closed. The roads are protesters are incredibly wealthy and really nonconfrontational or damaging anything. Theyre not provoking the police. There are tens of thousands of april there and i hardly saw a Police Officer that was peaceful. The police learned and they really backed off today. It is surprising having lived in hong kong and having been born there to see that happening on the streets or even if they are relatively mild to what we have seen in other parts of the world. Onwe know that will carry into tomorrow . How does that look so far . It is likely to remain peaceful, but no one knows what the endgame is. This grew much more quickly and spontaneously than people had anticipated. They basically said they would protest on wednesday and thursday this week and when students kicked in moved in and kicked off it does the man keeps shifting. It is not likely beijing will turn around and say, sure, you can vote for whoever you want. I think the police and probably the government is looking for a way out now. They worry. This is a big week for hong kong shoppers. Live got to leave it there. Thank you for joining us. The new york governor met with american soldiers and military leaders in afghanistan over the weekend and renewed concerns about terrorism abroad and here in the u. S. President obama also addressed this growing threat from the Islamic State in interview on 60 minutes. Hybrid with territorial ambitions. Of theategy and tactics army. This is america leading the International Community to suret the country to make they are able to take care of their business. Great see you this morning. The president also noted we severely underestimated the power of the Islamic State and underestimated the sure they are able to take care of their business. Great see you this morning. The president also noted we severely underestimated the power of the Islamic State and underestimated the ability and skills of the iraqi army. How do you underestimate that . Excellent question. The group but out annual reports surein 2013, with great specif. U. S. E second Major Corporation not only about their purpose, but with a compost. Theyre very proud of what they accomplished. Been advertising for two years, and i am very surprised we somehow missed it. What do we do now . Are we doing the right and . The policy is reasonable given the circumstances. Not we want to get involved with any sort of major concentration were a u. S. Force. Bit thisaught a little week at the wheel. Point fingers at this moment, but they were out there broadcasting what they were doing. The Intelligence Community take the fall for it. It might have been the focus on andl qaeda group in syria isis actually reconstituting itself in syria. 2008, the cia declared them to be out of business and defunct. They did reconstitute themselves and apparently did it in syria and thatnd is sort of a reason was not on our radar. Comment on another form. What was missing in our training of iraq troops there . Why were they not prepared enough to deflect islam stay in their fun . Sometimes, we missed the point that there is a sunni shia schism. Many of the troops were sunni. And they decided not to fight against isis. I do not think it is just training. That has been seen as the liberator of sunni. It is a sunni force. He favoredat malik those generals. The ongoing problems between sunni and shia. Governor cuomo visited afghanistan and it was his second trip since he had been in office. He also rode the subway to tell of thenot to be afraid subway system or that there were any further threats to our city. Many of the troops were sunni. Other than a symbolic gesture, should we be worried that it could heat up in a heightened way here . Society and ween have had plots against the subway system. Since september 11. We have to be concerned and be on guard. New york city is doing more than any city in the world to protect. Every day, at least 1000 Police Officers to protect the city from terrorism. People stationed overseas. Everything that could reasonably be done is being done. There are no guarantees. The Islamic State represents a game changer in u. S. Securities. Are these threats any different . Classic couple of things have happened cap happened. A couple of things have happened. To the extent this is seen to be an attack the u. S. , or the group bombing, you may get some sort of sin attic reaction. That is being called for all over the internet by jihad egroups. It pays for us to be on guard and alert, but we are doing everything we reasonably can thank you for joining us. President of Risk Management services. Coming up, another cold war. Russias foreign minister tough to the chilling relation between his country and the u. S. That is coming up next. A joint discovery with exxon mobil and offshore arctic field. The area and the partnership had been the center of controversy due to sanctions in russia. An exclusive interview with bloomberg, he will continue working no matter what. Pressure causes foreign minister asked him nato went into a highly confrontational posture, stopped all conversation with russia, if this genetic creatednato, as it was to counter the enemy, so very much alive. On both sides . Rd do you feel like russia is in contest with the u. S. We do not want any competition except maybe sports. Olympics, football. Easily you are in competition . Probably this is the logic of our western partners. They believe russia is a threat and they forget russia has always been a part of europe. Russia contributed to your culturally. Remember, a couple of times in history, russia saved europe particularly in world war ii. And the napoleon wars. Time, europe experienced easilys which were not resolved. Ist we believe is necessary to look at this situation to the point released together and after the announcement that the cold war is over, there was a deal in the Russian Council created afterwards. Deserve was that all individual security and that no shall strengthen its security at the expense. The principle which was absolutely ignored and violated. Olivia sterns joins us now with more from that exclusive interview aired what did he have to say about ukraine and their relations . A i asked them if they are party to the conflict and this is something they repeatedly denied it i asked if russia is repairing new terms for agreements. He denied that. Heres what was said when i asked him about clear terms. There have clearly been bodies of russian soldiers going back to russia. When you see that happening, how can you deny that russia is party to the conflict . There are many volunteers, many russians. There was one yesterday on a tv show that was interviewed. There are some russian citizens fighting on the side of not the ainian army, but that is pretty incredible. That is the line, that these are volunteer list volunteers, these are not russian battalions in the country. If you talk to analysts, and i was just speaking to richard on a counsel for foreigner it foreign relations, no one believes that this guy believes this. He is just towing the line, doing what he has to do for. Thank you so much for bringing that exclusive interview for us. We will have much more from her interview throughout the program and today right here on bloomberg television. We mention we also have an exclusive interview with the ceo. Ryan will be joining us a little more on histh international exclusive. Coming up, a block buster trial begins. He will be on the witness stand. In ireland. S deal european regulators call it an unfair advantage. You are watching in the loop live. Good morning. Here is a look at our top headlines. That you stepping up in apple. Accused of profiting tax deals in ireland. Itulators want to see could be forced to repay millions of euros. Hank greenberg and his company Star International are taking the u. S. To trial today. Off aig shareholders in 2008. The u. S. Argues that aig agreed to the bailout. Targets inthe latest italy. The fashion executive who a married couple it is investigating. It was said neither the company nor any of its subsidiaries is involved in the matter. It is 26 minutes past the hour. Bloomberg television is on the markets. Scarlet fu has much more and we are awaiting an economic numbers. Yes. Inwill focus on futures focus. Copper futures on a steady decline down 10 year to date. Joining me on what is pushing down the price of metal and how you can make money off of it is Senior Vice President there is never just one reason for why a commodity moves lower but i have got to ask how much a slowdown in chinas economy is a his response will for a weakness . Thats a great deal. If you look at the industrial metal and copper, is linked to economies based on it is in commercial and residential industrialwell as use. It ties in with economic growth. Weve seen a pullback in global growth, specifically in china, europe, and whatnot and whatnot. We have seen roughly a 9. 5 decline. Around three dollars here, i think copper will be a shortterm buy. I look for the market to hold steady and tread water as the Chinese Government continues to add stimulus and boost that as their price higher gdp look to improve. The moves we have seen here are in full by us until bank. Central banks have controlled volatility, the fluctuation of Price Movement in an underlying monti. I think that has come to the point where maybe they will edit five fly free and maybe not but i think Central Banks will remain with their hands in the cookie jar and that will keep metal prices steady. Copper this year they have reached the bottom for shortterm. Factoring in copper being weaker right now. As the dollar continues to you to move north, how much do you see that impact in copper, particularly as we cover with this drop this year . I see the stronger dollar being linked to the fed. Where we sawy see the spike higher over the summer. It has in a one direction trade and that is to thexpected especially if fed said the economy will be ok and rate hikes could be on the radar next year. I think the correlation we have seen between copper prices and the dollar is right, but could be coming to an end. The psychological lever level is that line in the sand. If we will see any support in copper prices, it first comes there and if we just below, if we see a lowes and level below that level, maybe we start to see more selling. Underlying Asset Managers are all short hopper here. Im looking were a bit of a buyback and them moves are higher about a year ago. Coppers could hold steady despite what we see strengthening the dollars moving forward very specifically, how would you be treating copper right now than . Youre right, that line in the sand three dollars, anywhere there, you are well to put your toe in the water. I am not really a longterm goal here. If we get a little bit of a higher, and if you recall, we did get a spike higher adding stimulus which would help copper growth. It is a volatile metal, as opposed to when we look at gold and silver. I think we will probably see a pie here if we settle below to 95, we could see a corrective move even further lower. If we do see a dip to load to 95. I see an exit if we get back to 315, september and made area. Copper prices could tread water for the shortterm. Ask all right. Thank you for giving us your perspective. Us from rj obrien. Back to you. L get ok, scarlet. Yes, we have breaking news out on personal income and spending here it we want to know where the tumor is ahead of the holidays and. Personals ending is up about half a percent. That is a little bit better than expected. Also, revision in the prior month also higher there it mike mckee has much more on these numbers. These are interesting numbers. We have been wanting to see what happened with personal spending because of the confusion about how strong backtoschool was and how we are going to be set up for the holiday season. It looks really good. Personal income comes in about as expected. A little bit better, 3 10 of 1 . Up from a prior month. Wages and salaries doubled in august july, up to tenths of 1 in august. Certainly, good news there as if all begins. Personal spending comes in much better than expected. In july but up half a percent in july from august. That is good news except for the ,act that looking what we spent good spending was up 4 10 up half of 1 . Much of the money went in services spending. We do not have an exact rate inn of how that plays out terms of back to school and the good buying we want to see Going Forward in the holidays is in. You have to say overall this is a news. The savings rate its to about 5. 1 , but that is still elevated. We are not spending all this money because were taking out loans are using our. At this point, it looks like were spending higher salaries. Mike, thank you so much. Our economics editor on those numbers. We will get a read on the state of retail and hiring from none other than bill simon, the former ceo of walmart u. S. He is in the loop. Walmart is the largest private employer in the world. That is coming up. We just had personal income and spending numbers out come about what people in the markets are watching his jobs. The governments allimportant monthly jobs report comes out on friday. All week long ahead of those numbers, we will focus on america passes employment picture. Joining me now is someone who has been extremely vocal in the fight to bring more jobs that to the u. S. He has said we can grow and hire and use the power of what we buy and sell to make a difference. We could decide to act and lead on we will not need to wait the job support each month. Joining me, he certainly wrote the jobs are court in his former largestwalmart, the private employer in the world. Great to have you this morning. Great to be here. The continuing problem of force is patently get more jobs created. Companies are at liberty to write the chapter work, but so far, it has been pretty average here. That is right. We are in a transformational stage in our economy right now. The economic seven never been better for a resurgence in American Manufacturing third when the jobs report comes out of that a, we have got to look deeper. We cannot subsist as a country, solely. Vice economy we have to make things and makes jobs for Manufacturing Business there that is where we are. The economics are right. Right now, Manufacturing Products closest to the point of consumption, asian manufacturing for asian consumption, that is the most efficient way to go. Slowlyre seeing is Building Momentum in the marketplace, particularly in the u. S. You announced a Big Initiative where walmart was going to invest 200 and 2 billion in a 10 years and invest them in usmade products. Have other companies followed your lead . They do. When the plant gets ecstatic in the u. S. , they manufacture for every retailer in every consumer in the country. What happened is overtime, as the plants migrated to asia, all the retailers buy from the same in asia. They will be available and open to every retailer in the country. By taking the initiative, walmart is able to move the market. What will be the biggest trigger to the jobs market . What will suddenly accelerate and of escape velocity in the jobs market . It is a combination of economic factors, Lower Energy Costs in the u. S. Than in other parts of the world. As middleclass emerges in markets around the world and asia, and they start having increasing demand for Consumer Products in those markets, you will see that momentum slip. Tippinglose to that point today. Minimum wage has been a huge debate, one that has affected walmart itself and other major ways. What is your argument here on minimum wage . Do you believe in some ways, if we raised the minimum wage, we could actually see more spending question mark that it could actually be an additive to the economy question mark minimum wage is a great discussion tab but it is a Clinical Solution to economic problem. It is part of a comprehensive jobs manufacturing growth bill. And wage standing on its own will only way raise the minimum wage. That will help people at the very bottom of the earnings potential, but anybody in the minimum wage job aspires to have a better job than minimum wage there it whether minimum wage is eight dollars or 12 or 15, they are about progress. From a busboy go to a manager of the restaurant. They do not just want to get it more as it must wait. Cc it ultimately is a net additive or as a negative . As a standalone, you get one analysis. It is simply the input of the math problem of, any more wages is pumped in and the cost this is would have to sustain to pay for the cost very but it could have a very big impact. As jobs are being created, it may sense. Correct, with an investment in the middleclass. On jobs, yougo mentioned how companies should invest here in the u. S. And how they should i hear. However, is coming at a time when companies are moving their head orders of us these, and to the threat of jobs moving there. What do you say to that . Quested is compensated. Our tax laws, particularly corporate, without running the risk of vilifying corporations conducive to continuing to invest in the u. S. As founders get back together, when they can be functional again chemical to stop to it . Can they put a stop to it . There is no way for companies to move out of the u. S. Stay with me. We will have more from you. The president and ceo of walmart u. S. More to come, a lineup for you ahead this friday. Former pimco ceo joining me. , they willofounder all be in the loop friday at 8 00 a. M. Eastern time as we are you a the jobs are in. Thus, the microsoft and xbox gaming console finally goes on sale in china today. Will it the a game changer for andin himy that . Should . X we want to bring you in on this topic. It is not just about concussions. It is about Domestic Violence, basis comments. Racist comments. Thank you. The miami project is the largest and most effective spinal Cord Research in the country. I have been affiliated with them for 15 years now. A big fundraiser tonight in new york city. The industry can affect everybody, not just athletes. To any can be subject automobile accident. We are very close to a breakthrough scientifically for spinal Cord Research. It and Everybody Needs help. If anybody wants to contribute, the miami project is a great place to do it. Quested is clearly a good cause. This is certainly a problem not just in sports, but obviously for anyone in danger of that, but back to the question about sports, because sports and business are so closely aligned. You will get big brands, whether it is walmart or nike or whoever, mcdonalds, they are all closely aligned with sports. Now with Domestic Violence or racial comments, or bad behavior. Doesnt that pose a risk now for companies that they did not have to deal with even 12 months ago . Crisis has gone on longer than 12 months. Issuehas been a general in our society for a long time that is finally coming to the forefront. Anytime a business or a brand affiliates itself with a spokesperson, you are placing your reputation in the hands of that folks prison. It is oh is very dangerous. Proceed withuld all due caution. Retailers have not had the best reputation in the past 12 months dealing with cyber attacks. Quested has been tough, but it is not just an retailers as well. That is the newest frontier for us to focus on really as a society, as we evolve and develop technologies that make our lives better. We have evolved and developed fraud and other criminal activities against these new technologies. I do not think the protections of those heavy evolved have evolved as fast. What was interesting that came out of the target cyberattacks from last year is retailinglers, the industry, seemed to be further behind than others like tanks in protecting themselves. Are you seeing any change right now in that industry . The Retail Industry in general and the u. S. Has been slow to react to emerging technologies because of the cost associated. When i was at walmart, we were and they are still prepared to evolve into that technology. It is a broader ecosystem than just one technology. If you a transition this is above the rest of the Retail Market the size walmart were not ready for it, suddenly, your credit cards without work and a lot of laces. The industry itself and through the National Retail federation and the retail leaders association, they have got to take a leading role moving forward. Should they be mandating retailers, you need to have x amount of money in your budget to go toward Cyber Software and protection . Depends on who they is. Or industry standards. Should be for the most protection you could give consumer. As we were talking, you see american apparel, they just named an interim ceo. It kind of makes to the whole problem of how difficult it is now to be running a retail business. Isnt it more difficult than it has been in years . Difficult but fascinating. It is 24 7 energy. You get immediate feedback on your performance. If you do something well, you get sales. If you do not, you do not get sales from it. It is the most dynamic industry out there. I think it is tougher now. The economy in the market and , you have of editors new dimensions with ecommerce that are impacting retailer. It is probably tougher now than it has ever been. Thank you for joining us, the former president and ceo of walmart. Much more on what retails retailers are doing. We have a lot more on that story, but coming up, the sanctions putting the squeeze on one of the largest oil companies. An exclusive interview with a ceo next. Now to our bloomberg exclusive. This could be the Biggest Oil Discovery in years. It is being compensated by u. S. Sanctions against russia. And spoketo the site to igor, the most powerful man in russian oil. Ryan joins us now from moscow. Not every day people drill there. You are known for going to some of the most remote places. Tell us about this journey. It is pretty crazy. About a four hour and 20 minute flight. Where the world passes largest gas producer just started drilling four or five years ago. It is a place that is really itsn the known for indigenous people. People selfish there appeared overnight, they got a helicopter that took us out. Been on an icebreaker for two days, and for the last it is minutes, we had a lady of states for the last journey to the rig itself. It gives you a sense of what is involved in terms of logistics of going to the arctic and schilling in the arctic and how bad the ceo that i went with line to get their to deliver his tosage to get there deliver his message. We will do it on our own and the track and attract partners. But we are not stopping our work with x on. Project operator is our joint venturer with exxon. We are not planning on changing the ownership structure. The message here is they have editeds great story found all of this oil and they found all of this oil. It has to be out of the arctic in accordance with u. S. Sanctions. This is the russias way of saying, if you want to walk away from this, if youre going to force them to walk away from this, there is a cost. Though i think they think this fine helps them in their battle against the sanctions. And that this is a disincentive for the Obama Administration to push harder, and maybe the sanctions will go away and exxon will be back in any case in several years. Thank you so much. It is an interesting interview. That was ryan in moscow for us. Lumbar television is on the markets. Bloomberg television is on the markets. Personal income and spending numbers coming in a little bit better than expected. We are on the markets again in 30 minutes. One stock surging is dreamworks animation. Softbank has the company in its sights. We are about 30 minutes away from the opening bell. Here is what were working on. Stocks lower at the open. Smp coming off his best performance in five weeks. A shakeup at a struggling retailer, american apparel. There will be an interim ceo as the Company Searches or a permanent successor. Is to buybank dreamworks animation. Dreamworks is run by jeffrey katzenberg, who tried to turn it into a mini Disney Studio but lacked him hits as of late. Will get theummers first shot at legally buying gaming consoles today. Microsoft will begin selling xbox one in the country. A 14 year ban. Cory johnson joins us now. Be literally a game changer for microsoft . Game changer. That is ever. For a monday morning, that is solid. This is a game changer for a lot of things. You mentioned a 14 year ban. Keynes,ul leo came sony, japan, nintendo, xbox in washington and the united dates. What we have here is tanning the dominant game systems around the world manufactured off in china. Zone inin a trade free china. A brief trade in shanghai that we have not in the work. It is still tightly controlled the government and censorship rules are very much in effect area in effect. What is missing from that . There is a list of games. Let me read from that list. I will lead you the list. Only 10 games approved him and you can tell me what is missing. Golf,ts sports writers, dance central. You love that one. Naughty kitties, what is missing on that list . Yes i got a little help from my direct is. Halo is missing eric rant about it was missing, call of duty is missing. Battlefield is missing. All of the big ones. A lot of the big ones. China says it is about keeping their children safe. What we are really talking about first reasonng our shooters, the games where players are walking ross the field looking more things lurking around warners and shooting them. That style of game he is gone. You have the sex and violence that is the hallmark of grand theft auto, the second biggest game in the history of gaming. Hereby those games are the chinese authorities approved games. How big is the market . How big are deemed consuls in china . A little bit in china goes a long way. What really is going on is we have not had consul game in china. Game playing in china is growing in a clip in the last five years. We consul games are a tiny fraction of the game business in china. Its Million Dollars or a business in the billions there in certainly, there is a lot of room there. Microsoft might be the first one in the door here. These censorship rules and the inability, the whole direction of game consuls and the rest of the world, that will not happen for these onslow game. Namesnder how well these will work and translate in the Chinese Market is a serious issue or this will be a way for the Chinese Government to learn about console gaming. They let other Foreign Countries come in and dabble in and make their own. Less all right. Thank you so much, cory johnson. Moving and shaking this hour, Goldman Sachs. Secret tapes invite new york fed regulator raises a question. Angertors to afraid to the banks theyre trying to regulate . They discovered a culture where regulators did not want to that the bank. A month and a goldman and willie that once clients are wealthy enough, certain consumer laws do not of wide to them. They were told, you do not hear that. These are part of a joint project. What happened . She was fired from the new york that. More, we are joined i a bloomberg editor who wrote an article last week entitled why the fed will always win down on goldman. Out wimp out on goldman. I am sort of on the same page. I think we need to separate whether or not the fed needs to this micro job in us, i thinkvered to the fed needs to do a better job regulating and it needs to be much tougher and can be much tougher and has not been tough enough. That is very clear. Changingot seem to be anytime soon. The fed was created 100 years fact, Goldman Sachs, Henry Goldman was consulted extensively. Served. Al ceos there is a cozy relationship here michael wrote a bloomberg where he says these tapes released on friday are shocked. The ray rice tapes of the financial world. Would you characterize them that way . Yes i would not. The most respected in the world for michael lewis, but i disagree with him on this. I think you actually listen to the tapes, as i did over the weekend. I am not sure carmen is the best risen to be a vehicle for this crusade. Someone can be very Effective Immediately but she was only there several. Within the first few months of a man, she decided she did not like was going on and she started see the secretly taping her colleague, went to the spy store and got a tape order and or five hours were the case. This was not a model employee. So she had an agenda, it aims. And even if she did not, even if she came to this organically and was offended by what she saw, to secretly tape your colleague, any organization them of what five hours of tapes the menu to find wrong. Worked myself 45 hours, you could find something wrong. Your and your foot in your mouth sometimes. Though, willachs, there be any fallout . Again, i cannot edit it. I would say no if i had to, because if you listened to the tapes, what are the things republicans picked out . One was a real done, which the fed officials actually that was legal, and they do not like it here and i agree with that. I do not like it either. Is visibly helping them hide their financial additions and goldman got a 40 million each. That was number one. There was nothing illegal about it. Number two was thomas did Goldman Sachs have a policy related to unsolicited this . Or seven china to figure out policy or not. Who cares whether they have all of the . They had bits and pieces of a policy and they need to have a better it. Goldman has been involved in conflict situations for years there that is what needs to stop. Not whether they have conflict of interest policy eric wedge thank you. Great to talk to you as always. Uch more is ahead stay with us. You are watching in the loop live on bloomberg television. Lookout for googles self jiving cars. The tech giant has 125 permit to. Est the vehicles one more example of automation lives. Into our touched upon that topic and he has ideas about ideas about automation. Latest book is the glass cage and it hit shelves today. Automation at the forefront here. Big pitfalls to this our jobs. That is one of the pitfalls. Congress are in agreement about automationthis dude in the pastn there was new levels of automation come you gain a lot. Ore as the google car shows us, he can do a lot more than it used to be able to do now that it is done by computers. We have self jiving cars and planes that are basically self fly now. Lawyers, more and more, the Computer Software can do the very desiccated analytical jobs that they used to do. Now, were talking about intellectual automation. That in theing legal field, for instance. Most of the evidence discovery work it used to be discovered by lots of junior lawyers and paralegals have is done automatically by software. If you look at in management what determines . In your research, did you find in any areas where it is resistant for automation . We do not give ourselves credit for them sometimes. One thing computers cannot do is make sense of the world. At jobs whereing there is creativity and a need for conceptual and critical thinking, those are places where it is good to have human beings. There is a danger that beginners will take over everything. An additive to the economy to have more and more Automated Society . Is not. And it it certainly is when youre looking at labor productivity. This is why businesses are very gung ho. A loss of human talent. We become so dependent on machines that we are not practicing the kinds of skills and talents that lift us up. You are talking about talent skills and not talent job wise. Talent in terms of skills. But it does also result in a loss of jobs. We do not know if it is a negative. In the past, we have seen big new categories of jobs and we have not seen that yet computers. It has been a number of decades now so there is good reason to be concerned. Thank you for joining us. And itof the glass cage is in stores today and i have got my copy. Coming out, the biggest investor in alibaba, softbank, now has its eye on another company. Tree works animation. Boy has that given stocks a boost this morning. Plus, american going urban wants more. We will have Real Estate Developers on why so many are moving back to the big apple. We will be back. Dreamworks animation ceo may be considering selling his company. Dreamworks is up almost 20 on the free market trade off of this news. How likely will the deal go through . Is it going to go through it happens . The probability is low. That may just be a negotiating ploy now that the story has leaked because shares are up 20 . Animation may be saying, our prices are here now and you have to offer this much more air that is awesome. Thats it, there are reasons to think maybe it will not. Soft bank is out of both second base with many acquisitions. There talking to a lot of Different Companies and weighing their options. These thoughts are little bit more likely. My sources say absolutely am a there have been talks with Jeffrey Cason burk. This is a little bit further than some of the other deals. Softbank is all over the map here they are making investments in wireless. Have also been looking at Mexican Telecom assets and mobile. Europe,looking at asia, and u. S. Media assets. This, from what i am told, is not the only one. Softbank has a lot of different guys all over the Place Holding one comes up on lucky roll and i am not sure this will be the one. This can make sense in the sense that they could get some content here and that you give more subscribers to spend. Also, if they have an international play, they could leverage it and use it in japan as well. The idea of getting into content and pairing with wireless is absolutely part of the strategy here. There are reasons why softbank would want this particular asset over others. That said, coming at it from dreamworks perspective, do you want to sell to softbank, where will runno question he the show here. He has a 300 year plan. He is the leader of the country. Jeffrey is a pretty strongwilled guy and he may want control of what happened there. Some analysts i have spoken to have said it would be more likely for dreamworks to pair up with another studio so he can run the show. We will see. Thank you so much. This is what happens when you from thea lot of money ali baba ceo. Just a few moments away from the opening bell. We have got the top 10. We are back. It is 26 minutes past the hour. Bloomberg television is on the market. We will get to the latest on futures at the final moments before the opening. Shares considerably lower. We had one of the worst weeks in trade last week. Some of that is based on speculation the fed is ready to pull out and to raise Interest Rates. That told the markets down. Are on the markets again in 30 minutes. Lets count down to the open with the top 10. Is the only sports you need today. Number 10 is yahoo . Shareholders who wanted to own alibaba are likely gone. It was recently announced as an urgency. Shares are up on that announcedn urgency. Shares are up on that news there number nine is american apparel. The retailer is named has named a new interim ceo. Be replace. American apparel also appointed a new finance chief. Number eight, energy. Acquisition, and acquisition, acquired by 7. 1 billion. Shipping to increase oil production. It will pay 5. 9 billion dollars in cash and assume 1. 1 billion in longterm debt to buy assets. Number seven is google. The company is making it easier to get more advertising and smartphones. Fitmatically resizing as to mobile devices. It will also offer anger at that will stay at the bottom of smartphones greens, even as viewers scroll down. That is so annoying. Number six we have got to get rid of them. Number six is not rising anymore. It had a 40 gain on friday after it announced they hired bill gross away from the company he founded, pimco. Morgan stanley is coming up here upgrading equal weights under great underweight. It looks like investors are judging a 40 gain more than enough. Owns the last time we had good news from the Banking Sector . Ups. Already exceeding analyst estimates for the full third quarter. The offer ubs is making to investors to exchange their shares to a stake in his new holding company. Alibaba. It made its first eight investments and a record ipo. A stake in a technology provider. About a half billion dollars. That deal is expected to close early next month. A lot of news around alibaba. Soft and, yahoo , they are all in play right now. Is also a big day for deals. Another one, the Business Software maker being bought by Equity Partners for four point 3 billion. It had been pitching his business to private equity earlier this month according to people familiar with the matter. Shares are surging on the news. Number two, apple. The eu is stepping up its probe. Accused of profiting from illegal tax deals in ireland. Regulators want to see if the deals reached rules. If it is found guilty, he could be forced to repay millions of euros. More interesting, microsoft will open a store just blocks away from the apple store. Something tells me the lines will not be quite as long. Dreamworks animation, shareholders are selling celebrating today. Stocks of 25 tony 1 . 21 . Dreamworks, which has previously looked to for a buyer, has been open to other offers. As you heard from alec sherman, he doesnt think a deal is likely to go through. Dreamworks is an asset. Stocks open this morning and i want to bring in the president of beyond go research. You have been a skeptic of the fed. This is the third or fourth time you heard the fed is getting out of the markets, which is why the markets are down. Why are you skeptical about all. His talk . We call this qe3 there was a qe1 and then the stock market fell in 2010 and they got back in. They got back in and the stock market fell and they got back in. It was in operation twist and they promised to get out. Now we have you we they are getting out. And the stocks fell. Marketong as the stock doesnt fall they are going to stay out. Once we see weakness in the market, im talking 15 correction, they will probably get back in. That is one of the reasons why i think they will drag their feet on raising rates. You dont see it until 2016 or even then . I dont think the fed is going to be in any hurry to raise rates. I think what the fed is going to is signs ofe rates inflation. We dont have that. They are going to threaten to raise rates but they are not going to follow through on its until probably 2016 unless inflation rears his head. If we go the other way, asset presages asset purchases might become another version. There is a new wildcard, that is the dollar. You have to really look at the trade weighted dollar hitting the united states. The broader index shows the dollar is up 3 since the end of june. Quite a steep move. Get a big impact on u. S. Exports because they are going to cost more overseas. Up enough to not matter. It keeps going. The damage gets much worse. Morgan stanley says growth would be a half percentage point slower. That hit toimates gdp is almost a full percentage point. This is something people have to start paying attention to you. Two. Paying attention to. Say the dollar is the treasurys department, go ask them. Japan is weak. China is weakening. All of their current sees going to continue to weaken. That is another reason for the fed to drag their feet. The dollar has become an issue for the fed. They said they were never concerned about it but now they have to be. Reason why iother think 2016 looks like it is going to be the date they are going to hike. I want to get your take on bill gross and his departure from pimco. That came up,ics i believe tom keene brought it up as a question, has the fed in some way forced his hand . In other words, in this low Interest Rate environment is it increasingly tough for fixed income managers, especially one of bill grosss size, to get the returns that they had in the past year . Should we blame janet yellen for his underperformance . Ai think that is a bit of reach. The low Interest Rate environment affects everyone. Ng tot see anyone wanti leave vanguard or fidelity. What you are saying about the low Interest Rate environment and that is changing the way fixed income is being viewed. Theses why we are getting unconstrained funds being popular, because they have the ability to go short in case there is a rising rate environment. I think what is happening at pimco is specific to them and not necessarily a broader macro story. Them a i would follow then and follow up thenld and ask, given that your rates are going to stay low, where are you going for return right now . I am not expecting return for starters. I expect the stock market to be changed and slightly down this year. Of the s p is higher, a percent for the year. I think that because the economy is going to disappoint again and earnings are going to follow through with the low Single Digits number. I am just not expecting a whole lot from the marketplace. Wholeou do not expect a lot and dont have inflation, one of the better returns is in the fixed income markets. Everybody hates it it is one of the best investments out there. You are a very outspoken voice on the market. What did you think about his departure and the way he did it . I have no inside knowledge of what happened there. I was just as stunned as anybody else that somebody would leave a after 43 years. Im sure there is a lot of back story there. It was quite a surprise. It was in deed. Bianconco from research. Why people are moving back to the suburbs back from the suburbs to the city. We are going to talk with a developer about that trend. We are just a few moments into the session. Staythe loop banged in the loop. Here in in the loop, we always bring you luxury apartments, many of them being snapped up by wealthy overseas investors. Of the is the developer greenwich lane. They are apartments and townhouses slated or Lower Manhattan. These faux these homes are over 65 sold and most of those buyers are current new yorkers. You were speaking about greenwich lane earlier and you said demand was really hot. That is why you are out there selling these apartments. We are talking 3 million at minimum . Pricing starts at 2 million and goes up higher than that. Response has been mostly new yorkers. 70 are from new york. 15 from the village. Thatve a unique product has amenities you cannot find in the village. We open face to of our sales. All of the sales was done in phase one. Now we can actually show them the bathrooms, the kitchen. We have had tremendous response. Why is everybody moving to Lower Manhattan . A broader there is trend in terms of urbanism. You are seeing people coming into new york city, wanting to work in new york city, wanting new york city. That is where young families want to be. Fortece just moved to greene. It is a huge trend that people want that urban experience. Cadillac Just Announced from detroit they are moving their Corporate Headquarters to soho. It is continuing that trend of people who want energy, all of the amenities and cultural experiences that happen in new york city. Handwringingome going on as these ultra luxury apartments and ultraluxury lifestyles are being imported into Lower Manhattan, that will edge outt income the lower income and middle income residents and move out the social services that arent out there that are down there. Today 60,000 people are living in Lower Manhattan. Her has been a tremendous influx of People Living downtown and investment. We have to encourage investment and building across the board for affordable middle income and highend. Diversity andout attracting people from all walks of life. Concern is of obviously the security. We saw andrew cuomo last week riding the subway system. We had ray kelly, the former nypd commissioner on, and i want to play for you what he said about security in new york. New york is doing more than any city in the world to protect itself. Every day there are at least 1000 Police Officers assigned to protect the city from terrorism. We have people stationed overseas that act as listening posts or tripwires. Everything that can reasonably be done is being done but there are no guarantees. Mi there are no guarantees. People can say im a little afraid to be here. Have proven after 9 11 we are resilient and ray kelly was the Police Commissioner then. The policey as commissioner now. They continue to do a good job. One of the things they need to focus on is focusing in on terrorism insurance. The Senate Passed a bill earlier this year, 937. Talking about bipartisan support to renew it. It is one of the bills that got bipartisan support. To moveto get congress on that as quickly as possible to reenact terrorism insurance. Hasnt it moved . There are political ideological differences. We need to have that terrorism insurance bill extended and passed. If we dont we will see a slowdown in our economy and investments. M a i want to ask you about brooklyn. We had bruce ratner on and he was talking about how he would love to host the Democratic National convention in brooklyn. He said it is time to bring it to the berkeley center. I want to play for you what bruce said to me about that effort. They are creating special lanes. During august the streets are not very crowded. Rather go for miles or 20 miles outside of a city to gets to a from a hotel room to a Convention Center . It is really not that very far. We have the Convention Technical committee to get out. It took them 15 minutes to get from midtown, 20 minutes by bus. Available and ready to host a convention in brooklyn. Brooklyn is definitely ready, new york is ready. Im on the mayors post committee. We have had several meetings theek. It would be fantastic for new york to host the Democratic National convention. We have proven time and time again we can handle these large events. It would be a spotlight on the york and particularly brooklyn, which is really exploding in terms of popularity. We just wrapped up the clinton global initiative. Traffic was terrible here. M a it was terrible. It was a short period of time. It was terrible. It was a short period of time. Thank you so much for joining us. Rudin. Uce, bill we will be back. On the issue of fighting Islamic State militants in syria, president obama says he will not directly plan coordinated strikes with the syrian president. An exclusive interview with the Russian Foreign minister he spoke about a coordinated effort to fight terrorism in syria. When the chemical elimination problem was discussed, there were almost daily meetings in the headquarters of this organization. U. S. ,s from russia in the syria, and the secretaries of this organization, we were meeting and working as a team. I see no reason why the same approach couldnt be used to fight terrorism on syrian territory and eventually resulting the political situation in syria. Them a for three years you have been backing a sod against western efforts to oust him. Bombing his opponents. Do you feel vindicated. Vindicated . No. Unfortunately the feelings of ic i see the steps are partners take. We were supporting syria in its , aht for its secular state state where all minorities were comfortable and safe. Fight against those who wanted to turn the state into a terrorist im not vindicated. Im glad that eventually the that terrorism is a much bigger threat than the sod ed presidency of a assad of policymakers publicly recognize this is the case. Lavrov was sergei speaking with olivia sterns. Are already but we focused on friday, the day of the allimportant monthly jobs report. We have a great lineup for you. We have bloomberg columnist mohamed elerian. We also have steve case and tom the shod tom michaud. We are coming up on 56 past the hour. I am julie hyman. 30 minutes into the trading day, lets take a look at what is going on with stocks. We are seeing a selloff, all three major averages are down. We saw losses deepening. As money is flowing out of stocks it is going into treasuries. That is driving yields lower. 2. 48 , to be exact. For what we can look forward to this week, i am joined by our stocks editor mike reagan. What is going on . Know we are talking about hong kong and economic data. And of itself would not necessarily be a big deal for u. S. Stock investors. You wouldnt wouldnt think. It comes at a time when concern of china these videos look like spring videos. Is the marketrop has gone three years without a significant correction or a troppo 10 percent. Anytime there is weakness likely of 10 . A drop anytime we see weakness like last week there is not bottomup information. That doldrums between earnings reports. Be is going to the fed is coming out and on one hand they saved the economy is excel a rating and they see potential to hike rates hike rates next year. The strengthening dollar is the direct result of their tightening Monetary Policy and is potentially going to inhibit growth. Floor on our of a path on how high yields can go because they are concerned, the fed is concerned if they hike rates too soon they could counter the effect they have had on the stimulus. The strengthening dollar could reduce exports and limit growth in the u. S. Just about 20 minutes ago we spoke with jim bianco. Seenys every time we have the and of quantitative easing, stocks have fallen and the fed has come back in. Is that the perception . It doesnt seem to be conception doesnt seem to be the wisdom. The dollar is something everyone will be keeping an eye on right now. If your goods overseas are a lot more expensive, that is not good for you. Does the fed have to be beholden to the Exchange Rate of the dollar . That is something that they will take a look at. Iswhat is driving it up there is a level of artificiality in the markets. They do not want to be holding risk when the market goes back to whatever the normal is. What is driving this. People are skittish. And they say these levels of feel real. Then let that is when you get a lot of volatility people have been calling for for a while. Thank you for joining us. Market makers is up next. Live from bloomberg headquarters in new york this is Market Makers with Erik Schatzker and stephanie ruhle. From watchdog to lapdog, secret reporting shows the new york fed regulators may have had just one single goal, dont do anything to make Goldman Sachs unhappy. Them a this revolution will be televised this revolution will be televised