When you are doing your christmas shopping, we could be in another crisis. Matt their recovery from harvey begins as irma barrels towards the u. S. Mainland. Weve not had backtoback hurricanes like this. I would expect there to be some labor inflationary of fact. We dont have any choice. We have got to buy those houses. We are going to have a ton of money coming here very soon directed at rebuild efforts. Matt plus, the weeks top interviews put pandemonium into perspective. The market is beginning to have second thoughts. There is anxiety. There should anxiety. We are going to continue to go and speak up no matter who is in charge. Matt it is all straight ahead on bloomberg best. Matt hello, and welcome. I am matt miller. This is bloomberg best, your weekly review of the most important Business News, analysis, and interviews from Bloomberg Television around the world. The week began on what has become a familiar note on reports of a north Korean Nuclear test putting the rest of the world on edge. Geopolitical tensions, at their highest since the cuban missile crisis. North korea says it has fitted a Nuclear Weapon to an icbm. Washington has promised an overwhelming response to any attack while beijing and moscow are now calling for talks. The u. S. And south korea, currently trying to analyze the details of the newest nuclear test, the strongest we have seen since 2006 from pyongyang. The finance chiefs are actually talking down the markets when they should be trying to calm investors nerves. They are saying this could have some type of effect negatively on the Growth Prospects in south korea. This could be seen as a slap in the face for north koreas main ally, china, and the test coming as president xi jinping welcomed the leaders. What is the mood in china . The chinese put out a statement saying they did not agree, didnt back, and did not support what the north koreans were doing. They said it was wrong actions, and they called for a resumption of dialogue. The chinese, it doesnt seem, are going to be changing their calculus in the short term. Thats according to the analysts we have been speaking to. It is now assumed that china continues to see that the risks of a collapsed state, refugees flooding over, or a unified korea backed by the u. S. Is still more of a risk than a nucleararmed pyongyang. They have not said that officially, but that seems to be the consensus. U. S. Defense secretary jim mattis shot back at north Koreas Nuclear threat with a blunt threat. Any threat to the United States or its territories, including guam or our allies, will be met with a massive military response, a response both effective and overwhelming. David President Trump recently has tweeted i am allowing japan and south korea to buy substantially increased amounts of highly sophisticated military equipment from the United States. Is that going to help to address the problem . Potentially, but i can tell you the administration is working with the united nations. U. S. Ambassador nikki haley on adding additional sanctions on north korea, but the question becomes whether or not china and russia will follow suit. After months of speculation and mixed messages, attorney general Jeff Sessions made it official. The Trump Administration is ending daca, deferred action for childhood arrivals. We cannot admit everyone who would like to come here. It is just that simple. President trump tweeting earlier, congress get ready to do your job. Everybody wants to be compassionate, but when it gets down to it, this is a matter of leadership in congress, and it has been absent on immigration. They have not been able to pass any Immigration Reform in the last decade, and it is questionable in this partisan environment whether they can do it again. It will be very difficult. Business has come out against this decision by President Trump to let daca expire. Facebooks Mark Zuckerberg wrote, the decision to end dr. Is not just wrong but its cruel for young people to envy American Dream and then urge them to come out of the shadows and then punish them for it. The sense in the Business Community is certainly in favor of daca and opposed to President Trumps move. That includes of the chamber of commerce, a republicanaligned group. Microsoft came out and said theyve got a number of employees who are daca beneficiaries. It remains to be seen how much further that is going to go. Stocks tumbling today, relatively speaking, off by greater than 1 in the case of the dow. Not massive losses, but big by recent standards, a sign of that perhaps some of the various headlines we are getting are starting to have an impact. The vacancies at the Federal Reserve are mounting. Stanley fischer is stepping down from the fed next month. He cited personal reasons in his letter of resignation to President Donald Trump. Fischer has been a reliable ally of fed chair janet yellen. He has served three years as vice chair. To me, the takeaway of stanley fischers resignation is twofold. One, it means one more vacancy to fill, which means there will be more influence in terms of the overall board, but two, it means the fomc is losing an important voice on the committee. They are losing somebody who has been important in terms of shaping the path of centralbank policy. Youve still got janet yellen and dudley as the rest of the policy troika. Shortterm, those decisions will continue, but by february, you could see five new people on the fed, combined with the existing governors and the rotating seats, and the beginnings of a real change. President trump and congressional leaders agreeing to an emergency aid package for Harvey Victims and a shortterm debt ceiling deal. President trump we have an extension, which will go out until december 15. That will include the debt ceiling, the crs, and harvey. At this white house meeting, donald trump listens and decides, we will go with the democrats. So they do have a deal, but beware of december. When you are doing your christmas shopping, we could be in another crisis. Nobody saw it coming. Nobody quite knows what led to this. We know democrats came out with an idea this morning, schumer and pelosi, do this for three months, return to this in december before the holidays. This was a remarkable thumb in the eye of speaker ryan and senator mcconnell. This was not something they expected the president to do. All eyes are on the ecb rate decision, dropping in just one moment. We have the deposit facility remaining unchanged at 40 basis points, the main refi rate coming in unchanged at 0 , and the ecb saying that qe can be increased in size and duration if the outlook worsens. And they really want to see sustainability in their inflation path. Draghi says the euro is a source of uncertainty. Markets have been waiting to see if draghi would try to drop the coffee euro down after its rise this year. Given the euros reaction, does that tell us that draghi wasnt as forthcoming in his jawboning as he might have been . He didnt use some of the words he has used in the past, like serious cause for concern, but he did point out it is a potential source for concern. It needs to be monitored, yet, the markets look to the other way and presumably focused more on the fact that he said the Asset Purchase Program will reach a decision next month. The bulk of it, he said. That tells you that tapering is at some point in the near future on its way. That is what the markets took, not his words. In my opinion, the euro is rising despite the ecb. If we take this at face value, then it is really broadly more of a dollar move. Maybe what we have is a much broader dollarweakening move. The euro is another manifestation of that. Businesses and residents are bracing for the worst as Hurricane Irma barrels toward south florida. After terry through chain of caribbean islands irma, which is , now a category four storm, is forecast to hit florida directly by sunday. Irma has spurred the biggest Miamidade County evacuation effort ever. It is pretty empty. I am positioned in the financial district downtown. I have a big view of brookwood avenue. It is kind of the financial district here. I looked out on the balcony, and there is pretty much no one here. A lot of businesses are shut. You are seeing people putting sandbags in front of entrances. I think people are waiting to see exactly how this storm proceeds and how the turn goes and where it hits, but it has the potential to disrupt transport infrastructure, tourism. There is a big banking and financial community. Everyone is waiting to see how bad it is. Theres been an official saying that parts of the state could be without power for days. People are hunkering down, positioning themselves. If you go to a supermarket, there is not a lot of bottled water. People have been preparing for days. Everyone is going to wait and see how this thing hits. Matt still ahead, as we review the week on bloomberg best, an exclusive perspective on politics and markets by michael dell. Plus, picking up the pieces after harvey, just in time to brace for irma. Up next, more of the weeks top business headlines. Chinas central bank cracks down on bitcoin offerings. A lot of those cycles have been kind of very dodgy, not a real business behind them. Matt this is bloomberg. Matt this is bloomberg best. I am matt miller. Lets continue our global tour of the weeks top business stories with a tie up of two aerospace companies. A major deal in the airspace sector as United Technologies snapped up Rockwell Collins for 423 billion. Its one of the biggest takeovers in aviation history. I think it makes a lot of strategic sense, clearly creating the Worlds LargestAerospace Supplier with 40 billion in revenue, which tops the ges and honeywells of the world. It creates a tremendous opportunity for scale. Given the Growth Opportunity that they see in commercial airspace. The Financial Sense is a question mark that has yet to be answered. 14 times ebitda is good value. Granted, it was probably the most interesting effect in space given high margins and cash flows. I think that is another question that remains to be seen, the financial aspect. Mark third times the charm for schneider electric, the French Company finally reaching an agreement to take control of British Software maker of eva. The shareholders have not faltered on the deal, so it remains to be seen how that goes through. Its an interesting deal structure. They are getting control of about 60 of the shares, and its like a reverse takeover almost. As you are to believe the ceo, the deal is definitely happening. Mark theres complexity of untangling the business. Has a lot changed since the last two failures . Aveva is arguing they have spun off some of their businesses. Also, the markets have changed over the years. It has made it easier for them to do it this time around. Lets see how shareholders vote on it, and lets see if they get the Regulatory Approvals in place. Angela merkel has been put on the defensive in her only televised debate of the german election campaign. Rival Martin Schulz accused the chancellor of taking her foot off the pedal over dieselgate, while the moderator suggested the government could have done more about the scandal. Matt compared to the debates we typically see in the u. S. Or that we saw over brexit or in the french elections, this one was very tame. The candidates were very polite. Of course, the two parties Work Together in government, so there is not a lot of mudslinging that can go on. There was, however, the challenge to angela merkel. She says she is very angry about the diesel scandal, but she hasnt really done much about it, and she doesnt seem to want to do much more about it than has already been done. Chinas central bank, pretty busy these days, saying initial coin offerings are illegal, asking all related fundraising activity to be halted. Bitcoin tumbled on this news, although it also has leveled off. What does this ban cover, and what do you make of the timing . The ban is pretty comprehensive on all initial coin offerings. You can no longer raise money through them. You cannot trade them, exchange them for the yuan. Thanks are also prohibited from Offering Services related to it. It is a pretty comprehensive ban, and if you already raised money, theres a good chance you you will have to refund that money. A lot of those have been very dodgy. Theres not a real business behind them, basically a lot of hype, and yet, they raise a lot of money. Regulators stepped in to protect investors. This is why the timing is happening right now. Nissan is planning to double annual deliveries of its new leaf. It has unveiled the first makeover for the electric vehicle since its introduction over seven years ago. Its boosted features including autonomous parking and increased driving range. We are now preparing for that. Were getting into the offensive starting from 2018 and 2019. This is where we are. Then the next step, five years from 2020, 2025, there will be migration from the Combustion Engine in the major portfolio. Mark a deal bank, moving its hq to finland from sweden. This puts the nordic regions only Global Systemically Important Bank inside of the European Banking Union and the eurozone. Why the move . They have been threatening to do Something Like this for quite a while. The main reason is that swedens government has simply plans to raise the fee that banks pay towards a resolution reserve. They also complain that the Regulatory Environment has been unpredictable. They want something more predictable and stable. They said the Banking Union was the place to go. Yes, there are some savings we have highlighted on resolution fees. There may be a capital impact. Which we are not speculating yet, because i think it is too early. The key driver is we are creating one idea with one more way of operating, and we also need to be in an environment where we are regulated with our european peers. Amazon is on the hunt for a second campus it is calling hq2, and it comes with a price tag of more than 5 billion. The seattle based giant is asking local and state governments to submit proposals. Its for the headquarters that they say could house as many as 50,000 new workers, many of them new hires. What do we know about this . Why did amazon make this a public contest, and how many new hires will they be making . They will make 50,000 hires. It will take a while. The number they gave was 1517 years. This is an almost two decades project that they unveiled today. Its pretty unusual when you look at how amazon builds new offices. Usually, they try to be quiet. They have gone so far as to say they have special tax structures to shield the fact they are looking at new places. This is going to be a massive new campus. They went so far as to call it another headquarters and saying it will be at the same level of their current seattle presence. Jonathan one of the most extensive Cyber Security breaches in history, equifax hit by a cyber attack that left almost half the u. S. Population at risk. We have learned three executives sold shares in the days after Company Discovered the breach. One of the things that is almost certain, when this breach was announced, equifax tried to get all of their ducks in a row, but there is a lot of information that has not come out yet. Including when the hack was discovered, we dont know if that means that the data left the system, that they discovered malware on the system. There is a lot of stuff at play. Given the selloff of shares by the executives, theres going to be a demand to know the timeline. Companies dont like giving that information out. At the same time, we had civil lawsuits filed yesterday. How much more can we expect of that, and do you have any idea of the kind of money we are talking about . These incidents make consumers very angry, and when consumers get very angry, civil lawsuits follow. An attack like that shouldnt be able to get 143 million customer data. There ought to be a lot of safeguards, and if that is not happening, that will go into a civil suit. Matt welcome back to bloomberg best. I am matt miller. This week, many ceos spoke out against the Trump Administrations decision to terminate daca after the president s response to violent protests last month led many Business Leaders to resign from his advisory councils. One ceo who did not step down was michael dell, the founder of dell technologies. He spoke exclusively with emily chang about how he sees his political role. I think it is important for us to have a voice and to be able to speak our minds, whether we agree or disagree. You know, fortunately, they usually listen to us. That is a good thing for us to be able to go and express our opinions. Emily you are on one of President Trumps Business Councils before it dissolved following his remarks after the charlottesville protest. Im curious what was going through your mind as that was unfolding . As a jewish american, i was horrified to see people marching in the streets with nazi flags. How could you not be . Look, we built our company as a place where anyone is welcome and anyone can succeed, and i think the hate