Machu picchu in peru, or a trip of a lifetime down the ganges. Travel that is designed to transform. And did you know that angels travel . I do not mean cherubs, but victorias secret angels, they travel. Find out what it takes to wear the big tory is a secret wings. And first, lets get headlines from our radio cohost, carol massar. Thank you so much, and lets get to the headlines. We start with dollar general, taking their offer directly to shareholders in a hostile bid for family dollar. Twoly dollar has rejected bids, and in the meantime, they have accepted a lower bid from dollar tree, saying that deal would more easily gain regulatory approval. Apple shares making some gains, closing up 3 . Companyes after the introduced two new iphones and apple watch and apple paid. And a walkout was blamed on borderline conditions. A denverbased company said it was the minorities that walked off, and the restaurant would reopen. This comes at a time when restaurant chains are facing ranges, ways raise wages. Over to you. All right, thanks very much, carol massar. And just about four hours, president obama is set to outline the u. S. Strategy extremists in the middle east, and i want to bring in david miller from washington, d. C. , also the author of the why americaness cannot have another great president. Can you explain what were going to hear from the president this evening . What i think youre not going to of war, andration that is going to disappoint many people. And there is his risk aversion to militarizing in iraq, and the news story is syria. That is the question. Eight to the allies, the iraqi army, more special operators on the ground in iraq, that is an old story. The real question is how is the president going to do with the mothership, and that is to say the main base of operation of isis. He has avoided militarizing them in the last years, and this has forced him to consider an alternative approach, and that is the one, presumably, he may try to lay out in broad brush fashion. David miller, is there any example you can point to that the strategy you just described doesnt work in situations such as this . Not quite. Afghanistan in the fall of 2001, 9 11,en the attack on tomorrow 13 years ago, and special operators, local allies, great intel, and a lot of american air power to essentially break the taliban toal qaeda connection and successfully eliminate with limited investment, actually produce a successful outcome. Or, alternatively, over the past 13 years, both under a republican president and a democratic one keeping the United States a taxfree from al qaedadirected attacks, again , goodinternational allies intel, and drone strikes. You can preempt, deter, and degrade the capacity of some of these organizations. New. Isis is it is better armed. It is better funded. It may well be better motivated. Has territory. We do not have the kind of assets in serial right now we do in iraq to wage a successful campaign. The president is going to have to lay out, i think, to some extent, how he is going to do that. This war by proxy by the United States . War by proxy. The president is not going to engage in nationbuilding. We are not going to deploy Ground Forces and spend trillions of dollars to somehow make the syrian home dedump tea, to put it back together again, nor in iraq, but this is a longer movie, and tonight, youre going to see at least the beginning of a change, a riskaverse president , that has willfully avoided militarizing the situation, perhaps for good reasons, to a more risk already president , and i think it is going to take time. A long movie, and i think it is i am to be playing, afraid, long after the president leaves the white house. Syria, iraq, iran, is the president s middle east strategy working . Overarchingre is no strategy. How can there be . The middle east is broken. It is angry. It is dysfunctional. The arab spring has run off the highway. We lost the first ambassador since the early 80s. In syria, civil war. Hopes for a new and cohesive iraq, it seems that has collapsed, and the iranians are still continuing their efforts weaponsre nuclear capacity. The issue is not whether you can have a comprehensive strategy. We have to figure out what our vital interests are. Right, but having said that, what is your thought then about Vice President joe bidens off to mention idea to give the kurds of their independence . Isi think joe biden acknowledging a reality, that iraq is going to end up it is a highly decentralized state. Look, with hundreds of forces and trillions of dollars, a decade of effort, and what remains of american credibility, we have failed to keep iraq a whole. Is driven mainly by iraqis themselves. Look. Let me reduce this to a bottom line, and it was Larry Summers who argued in the history of the world, no one washes a rental car. Do you know why you do not wash a rental car . He could you only care about what you own, and the problem is there is not enough local ownership. The arabs have to take responsibility for themselves, the arabs and syrians. We can do a lot to help them, but we cannot create the will and the skill necessary to build thationing democracies recognizes transparency, democracy, good governance, and gender equality. We are a long way away from that. We have to protect the vital interests, secure our allies, maintain access to oil, and doing what we can to help them resolve the seemingly intractable conflicts that give rise to enormous hatred and valuation. We can play a role there, but we do not own this thing, and i suspect the president will also ofe that a central component his message tonight to the american people. I want to thank you very much for spending time with us, from the Wilson Center in washington, d. C. , and we are looking forward to your thoughts about tonights speech by the president. A book. So the author of a reminder, president obama going to address the nation from the oval office for his plan to defeat the Islamic State in the middle east. Luber, of course, will have complete coverage and commentary, and that begins at 9 00 p. M. Eastern on bloomberg. And still ahead here on taking. Luxury domain name. Connecting with gucci, hermes, would be a, that place to start. You will hear about it, next. And coming up, supermodel lily aldridge. Find about what it is like in the victorias secret secret circle. Next. Onthis is taking stock bloomberg. I am pimm fox. According to bain and company, the luxury market is expected to a domain. Luxury is where they can register their names, and instead of apple. Com, think apple. Luxury. Monica. U, thanks for being here. You have to start off by explaining what was the process that you went through to get. Luxury, this domain name that, i guess, a lot of people are kicking themselves and saying, why didnt i think about that . What and what is this domain, and why did we not know about it . Top level domain is what we are talking about. Basically, it was an almost threeyear process with a regulatory organization, icann, that runs the internet, and they decided their were not good names available, and it was fairly saturated, so wouldnt it be a good idea to think about organizing the internet and giving people an opportunity to names,od names, relevant and so they created this opportunity to come in, one time only at this point, and there may be times in the future, but they have not announced it in the future, and it was to talk about what you thought good dot be, and weions would thought luxury was so important. Potentially so profitable. Youre going to want to partner with companies, like i mentioned, like cartier, so they can have cartier. Luxury. We have got 700 of the uxury,g brands own a. L but even exciting are the luxury highend and boutique, firms that are going to engage with. Luxury. And there are unknown brands who want a way to identify themselves, and were going to give them a new opportunity and a new way to get to that consumer. And youre going to have some ongoing relationships with the actual vendors. That is correct, because as a registry, we also have the ability to decide the big category names, like fashion, watches, shoes, travel, real estate, design. What happens to those names . Who are the right people to partner with . All of our customers will have luxury, butor to those categories really are really, really important, because that is how the consumers get into our world. So, for example, if you had shoes. Luxury, you could have gucci. Luxury. Exactly right. Example, the interior designers, we are already building design. Luxury, and there are so many who are excited to have a place where consumers will find those who highend, and they do not have a lot of ways. I mentioned you just attended the luxury summit. What did you learn . A lot, obviously. It was really one of the big takeaways, first of all, brands spend is so much time thinking about holiday, and it really was a retail summit thinking about holiday, thinking about what they are going to do and how they are going to reach the consumer, but digital is equally important, and they really think about it holistically, and that is so important for us, because they are looking at new ways to engage that consumer, and we are going to give them a new digital way to come out and be different and to find that consumer online. So what about a website like monica. Luxury . Well done. Thank you for joining us, the cofounder and chief executive of. Luxury. And coming up, we will talk about luxury, lingerie. Does qualify. Victoria secret is perhaps the biggest brand around for underwear, and we are going to meet the underwear and angel model lily aldridge. That is all coming up, next. Victorias secrets, the brands, especially in dollars in catalogs and more than 1100 stores, and the brand is not just underwear. It is also entertainment, and a book, which is being released this month, and it is called the author joins how youily aldridge, got associated with the victorias secret. You are from australia . Western australia, and i was noticed for the photographs i had taken of Stephanie Seymour at the time, and i had the incredible fortune to work with the brand and see it go through many phases of development, and then i get to meet the most amazing people, like lily. And you are going to answer who is your favorite for job offer with russell sitting here. Russell is amazing. He is family. This book came about so naturally and organically, and i am so proud to be in it. Does so much to help others, and that is what has always touched me so much about russell. What makes a great fashion fontographer a photographer from a models perspective . Putting something out there that you would feel proud of, and feeling safe with them is probably the most important thing. Russell, how do you become that person who is professional, because that is what they are hiring you for, but to live models, i have got to say, are typically younger than both of us, to say the least. There is always trust and responsibility, and we talked about the brand, and most importantly, it is a trust that it isablished, and something that is hardearned. All right, it is hard earned. Now, you are a hardworking model. I mentioned that you are a victorias secret angel, and i am assuming that is a very big and in the modeling world. It is a big deal. How do you get your angels wings . I dont know. It happens naturally. My first victorias secret show, he loved me, and then they use me for advertising, and then they gave me the wings, which was a very big deal. Heavy to wear . S they are very heavy, and i had like one last year, it sometimes, they are 40 pounds, and youre in heels and lingerie, but it is so much fun and such a Great Company to work for. A Great Company to work for, but there is competition out there, and one of the things that we note is that sportswear is a big trend, and underwear is a necessity in its various guises, but sportswear is now very hot. What do you think about this sportswear that doubles for everyday clothing . I think it is the same for lingerie, which is now doubling for clothing and accessories, and there is a massive market, a massive opportunity, and i think there is an effect with sportswear. Lily, you come from a family who is in fashion and in modeling. This . U think you would do i did not think i was going to be a model. I thought i would be a soccer player. I was a very big tomboy, and then around 17, something changed, and i decided i wanted to be a model, and i pursued it, and it has been an amazing job, introducing me to amazing people not just for work but in helping others. Russell is very, very passionate about helping others, and he lets me be involved in that, and that is really the most important thing about our job. But so, russell, you get to tell everyone, what are you doing to help them in tropical he for when tropical he what are you doing for charity . Ande take ranting ability create products with marginalized community, so that, for me, began with photographing understandingple, that indigenous and marginalized communities were one in the same, and using their face and their image and generally support these wonderful things, and i say there is a large philanthropic society, and it is also what we do in the victorias secret family. , i have alsodge heard that you have started your own clothing line. I just wanted people to be able to buy things that are cool, and i have been doing it in collaboration with velvet, and it is something that i hope i can do more and have my own brand one day. If russell was going to go into your closet in your house, what would he find . Levis and sneakers . Definitely lots of jeans, lots of sneakers, lots of heels, lots of dresses, lots of lingerie. Lots of lingerie. You can never have too much. Is that the take away here . When you are an angel, you get the pick of the litter. I have to ask, would you have a favorite . All of them are gorgeous. Not even a color. Favorite . E a i rarely look at lingerie. When there are these stunning beauties in front of me. Said like a true pro. I want to thank you, victorias secret angel lily aldridge, and russell, his new book angels, in stores now. You are listening to taking stock. This is taking stock on bloomberg. I am pimm fox. For look at the headlines, lets go to our radio cohost carol massar. President obama will address the nation and talk about his plan, maybe speaking of extending air strikes in the middle east, also talking about arming the syrian opposition. We will have full coverage of the president s speech at 9 00 p. M. Right here on bloomberg television. Russian president Vladimir Putin may face more sanctions from the u. S. And europe. Oil exports could be halted, and it could affect companies from dallas to london, and that includes Companies Like exxon mobil and bp, and we know kids like pizza and chicken nuggets, but experts say that too much of childsods that harm a future health. For almost half the sodium that kids consume, and it happens to be what the kids eat over and over again. Those are the headlines. Back to you. Thank you. And there is a potentially fatal disease that is caused by high levels of potassium in the blood, and there is a company that has been developing a new treatment. Joining me with details is the chief executive. John, thanks for being here. My pleasure. Just describe the extent of which this particular condition afflicts people, lets say, all over the world. What is the market . This occurs frequently in a setting of chronic Heart Failure and kidney disease, and those are big problems in this country a healthyide, and person, when they take in more potassium than the body needs, they simply excrete that excess potassium through the kidneys. Chronic kidneyh disease, their ability to excrete that potassium is impaired, so what happens is the potassium level continues to rise to dangerously high levels, and the real issue is a dangerously high potassium increases your chance of cardiac arrhythmia and death, so it is really important in these patients that we get control over their potassium, and on till now, we have not really had good Treatment Options for that. 2. 5nd we are talking about million, even 13 million, depending upon the specifics of the patient. So tell me about the drug. Drug works by finding potassium in the gastrointestinal tract, and you taken by mouth, and as it is going through the body, it is designed to bind to potassium and then draw the potassium out of the body, so it essentially provides the potassium excretion that the bodys impaired kidney function no longer allows, and it allows us to take haitians mic and bringkale them into a normal range, the range in which the body wants to maintain potassium. Potassium is an important electrolyte for heart function. You need potassium. It is just when you have too much potassium when you are at risk. What is the status of the drug . You have got to get approval and go through all of the various testing phases. We have completed our clinical development, all of the spaces of clinical trials, including a phase three socalled pivotal trial, and we are in the process right now of writing a new drug application, which we will submit to the fda in the early first quarter, and then approximately 60 days later, the fda makes a decision whether to file it or not and notifies us, and then, typically, it is about a 10month review, while the fta goes over the documents and profile, during which time, we will be doing a lot of work to prepare ourselves to be commercially ready to launch. Toyou have already agreed build a manufacturing facility to do this. We have, and we are actually reliant on other Contract Manufacturing organizations, but to your point, we have invested millions of dollars in creating a supply chain for the product, and that is just one of the many risks that go along with drug development. You have to be able to manufacture it before you know whether it will be approved. Last point, the experience in biotechnology sphere, i have to say that it is an honor. And they are bringing Innovative New projects. It is a joy. What is the potential price tag for the drug . There are other products that were similar to this that sell in the range of five or 600. We want to make sure it is accessible to patients. There is always a fine balance. And this is to be mindful of pricing in a way that does not create barriers for the very patients with are trying to serve. Thats alright, i want to thank you very much, and i want to note that the company went public in 2013, and that was the chief executive. All right, coming up, you are going to hear about a trip that you are going to want to take, and creating transformational travel. Also, youll meet an artist to has turned a brief job at facebook into a financial fortune. Youre going to find out how he did it, and what he is doing now. That is all i had on taking stock. Onhis is taking stock bloomberg. I am pimm fox. And for the last years, has beenie and kent working on travel, and it includes trips to machu picchu or the taj mahal. I am joined by london by the chief executive and founder. Thank you for being with me. I wonder if you can describe your own First Experience trekking through africa and how that has influenced the building and foundation of abercrombie and kent. A yes, when i was 16, i had motorbike, and i decided i would drive to nairobi, and it took one day to plan it, and three months later, i reached cape town, and that convinced me thiser that i should leave life forever and take people on crazy and wonderful and exotic if. Says. All right, well, lets talk about some of those crazy and exotic eggs. Says. Lets talk about the 100,000 around the world, i think, what, 24 days . What we are so excited about the abercrombie and kent trip. Machumatthew p hsu picchu and then we have a dinner and a private show, and then we , and then wenbul end up in the sierra desert so horrid desert, marrakesh, and that finishes the trip. And i am really excited about it. It leaves in september. Ok, lets say that somebody would like to forgo and take a ship. This has historical significance. Tell us about that abercrombie and kent experience. Basically, we need from greenland, and you follow the through alaska, and finally you end up in northeast russia, but it is really exciting, really adventurous, and very few people in the world have ever done it. The great migration safari includes not only the chance to gaze upon some of the worlds most exotic animals but also to do it in a particular style. I wonder if you could describe what someone who signs up for the great migration safari would experience. Well, what they are going to see is immediately about one point read million wildebeest. That is million. 600,000 zebra. We actually have this wonderful abercrombie and kent luxury cap, which has everything in it. There are cabins with everything inside it. There are land cruisers, and you ,ee lions, leopards, cheetah and it is actually the worlds most famous, famous trip to do, and you have to see these animals in your lifetime. Now, one of the places a lot of people want to see, it is the galapagos. You have a lot of experience taking people there. Explain how abercrombie and kent makes that happen. I have been there, and i said you should have your own ship, where you go through all the islands, and you can snorkel, or if you are experienced, you can dive, and i have dived there with 50 hammerhead shark above me, but you do not have to do that. Ands an incredible place, nothing has changed since darwin was there. It is really phenomenal. Now, as far as traveling to areas that were off bounds, out of bounds for travelers, myanmar and what used to be called burma. That is also on the schedule. And, again,olutely, i have been in myanmar for many years, but i decided we had to build our own ship, and we have a ship that we built that will be launched in november, which will go all of the layup the waterway, and will be able to give you an comparable sites of everything, plus the luxury of really a firstclass ship. Addition to the luxury aspect of this kind of travel, is this also suited for potential investors who want to check out different areas of the world but want to do so knowing that they are being given a certain level of comfort . Well, many people want to travel to these unusual places, but what they also want is comfort and an assurance of safety, and i have been to every place myself. We have the brand of abercrombie and kent on it. Also, we can introduce them to keep people, should they wish to study that aspect on the trip. We have been speaking earlier about president obamas speech to speak about the middle east and u. S. Involvement there, and someone who has been to many of these regions, all over the world, have you seen any changes in the popularity of going to the middle east or going to russia as these geopolitical events unfold . Well, unfortunately, we have. I feel really encouraged about that part of the world again, that area of egypt and jordan. And just the last point to you, your own experience, you decided to go in the travel business and move away from the military because of a personal episode. Well, i had a little bit of tankess from being in the regiment too long, but i can hear you alright tonight. But basically, i always wanted to be in this business, and i love it and am passionate about it, and i will be with abercrombie and kent for many years to come. He is an adventure and the founder of abercrombie and kent. Coming up, youre going to meet an artist who came to facebook and did a mural for mark zuckerberg, and he decided to take stock instead of cash. That changed his future. And coming up, tmobile doubles down on some new promotions to go along with the new iphone wifi calling features. Find out all about wifi with emily chang. She is going to be speaking to the tmobile chief executive, john leger, and that is coming up on bloomberg west at 6 00 yen and 11 00 p. M. Eastern. All right, the los angeles artist david cho is known for his racy designs, but he is also a very savvy businessman. For example, he painted the mural for facebooks offices, and he said, no, i do not want to be paid in money, i want to be paid in stock, and it made him a fortune. He has a new book, which is the title of his latest show taking place in mexico city, and i want to welcome him to taking stock. Ok, the businessman and the artist. You have left brain and right brain. I blame my korean mother for that. She is vicious, vicious in business. Really . Yes, i saw her make a lot of women cry and a lot of men cried. What first off, what was it like to get the call to show up at a place like facebook . Well, basically, shaun parker is the guy who started napster, and he called you right as they were getting sued for 1 trillion, and he says, i love your art, i would love to get some, but i am being sued right now, so he called me at a time when he could not afford my art, but as a young man, he said, one day, i am going to make another i think i was transpiring aspiring to them, here is a guy who does whatever he wants, and my art meant something to him, and he called me again. He called me a bunch of times, and he said, look, we are starting a company, called facebook. Did you know what it was . I am onhe only reason facebook is because there was a and my cousine, called me, so i found out about it. I owned part of the company, but then i found out that i was also on there, because i hate to social media, but now i love it, and so they gave me that account, and i was like, oh, wow, this is amazing, so, yes, when he started facebook, i did not know what social media was, and this is like myspace for college kids, and he said, i think i can afford your art now, mark,ey introduced me to young guys in their 20s, young guys, visionaries, geniuses. You connected with them . Yes. We had the same spirit. I have money now, i can pay you, or our goal is to take over the world, so i can pay you in stock, which would make you the most highestpaid artist in the world, it happened exactly as he said, and now, i cannot afford my own art. So you decided to take the facebook stock. Do you then drive home at the end of that day and say, is, you paid me, and it should have taken the cash . You just believed in him question my well, more than that, i am a gambler. In real life, i know you are a gambler. The gaming. When someone gives you an opportunity to make a little bit of money right now or risk it for something greater, i am always the 100 bet, always, and if you remember, back then, the myspace days, facebook was like a joke, you know . Everyone was on myspace. Lets talk about your art now. Ok. Because i was reading about your show in mexico city. Right. Why did you choose mexico city . What was the influence . First, i love traveling, and i have been hitchhiking around the world, which is what i have been doing since i was a kid. Since the money is not an issue for me anymore, i dont need to sell my paintings, so i like to either give my art away for free, where you can go see it. I do not become an artist to make really expensive paintings for rich people, you know, so i either have it at museums, where it is free, anyone can go see it, and then i usually take it to places i would like to go to. Like mexico city. And meet my future exwife. Like an artist. Mexico city, then bogota, colombia, next year, i think, so when i do art, i like to how do you describe your art to people . I mean, other than showing it to them, there was this fantasma and comic book art is something youre also very interested in. As my exgirlfriend said, i may have mild aspergers, it and it is the materials i use, like water or spray paint, it is a great medium. There is no filter. Comest goes in, and it out, and i am producing as much art as possible. You are doing this all of the time. I actually have not painted in like five years. Where are you getting all of this art . This is stuff i did previously. Focused onou are music now. My parents are godfearing christians, and my mom has amazing powers of delusions. Said, ismy art, as you a little racy, and she is, when are you going to do something for god . Membert together with a of the beastie boys, and then they broke up, and they said, lets get together, and the first song we made was a gospel song called hallelujah, and it became the number one gospel does your mother like the song . Needs,layed it for my who cried at the church, and most people do not think of me as a gospel musician, and it was experimental, and now we go into punk and hiphop, though you can check it out. Well done. Thank you for spending time with us. David choe. As far as this convergence, physical art, musical art, what do you want to do next . I sort of went to be on tv, but they will not let me on. I may have to start my network. Why not . You interview a lot of rich people. You meet people with a lot of wealth, and then they have to answer to the shareholders or the fans, and i dont have those constraints, so i can really do whatever i want, so there is the art world. We can talk and we can maybe make something work. And, well, facebook stockholder. Atemember that at tonight 9 00 p. M. , president obama will be talking to the nation about his plan for the Islamic State, complete coverage and commentary. Tonight. Thanks for taking stock. And live from pier three in san francisco, welcome to bloomberg west, where we cover innovation, technology, and the future of is this. Im cory johnson. About 2. 1 billion in the bank, twitter heads to the bond market , hoping to raise as much as 1. 5 billion in its first dead offering. Borrowing money while the cost doespital remains cheap. The emergence of apple pay mean the end of a physical wallet and plastic credit cards