Today, Hurricane Irma struck with less force. Stocks rising for a fourth day. The dollar is rising. All of these currencies are declining against. We are seeing the dollar, we are seeing a move in bond yields, commodities. Sterling is holding its own against the seemingly unstoppable euro, suggesting investors are finding some value in the uks currency. Sterling concluded a second weekly advance as the common currency strengthened to its years on theo dollar. The moves showed negative trading psychology on the pound is breaking. Best 92 s 92. 67 pence. Now. Pence as of Money Managers saw the value of copper plunge last week by 2. 5 , halting the longest rally in a decade, is consecutive weeks of games. Hedge funds, large speculators increasing their copper long position by. 4 . The short position rose for the first time in six weeks. Copper supplies are tightening. Production shortfalls are overhyped. Goldman sachs has said the metal is 10 above fair value. The price of one of the most Critical Materials for the western World Economy in defense is spiking higher and faster than any major commodity. Tungsten, not a commodity without but everyday. Used to harden steel. Surged more than 60 in the last couple of months or you the growing concern about supply cutbacks in china were about 80 of the metal come from, the country is clamping down, enforcing production quotas. The advance has beaten all 22 major materials in the bloomberg commodity index. Tungsten, not a commodity we took about everyday. 90 minutes into the trading day, how is it looking . Julie tungsten, i love it. U. S. Stocks rallied. The unwinding of the hurricane trade. That seems to be what we are seeing across asset classes. At one point, the dow was up as much as 1 . If it does manage to eat out that size of again it will be the biggest since april. Major averages rallying in a broad fashion. Elsewhere outside of stocks we see the on widening the unwinding happening in commodities sending commodities in the other direction. Oil was lower. Now it has turned higher so i stand corrected. The likes of Goldman Sachs are saying we will see a negative effect on oil because of a drop in demand. That is hurting gasoline because analysts are saying we are seeing not really a crimping of supply. Irma is not as severe as estimated. We are seeing a crimping of demand so well will see how this shakes out in inventory data. Gold. G come out of some buying of gold last week that is reversing. Dollar reversing after continuing its downtrend. That is having a Ripple Effect on the banks, rising along with rates today. We are continuing to see that bearish sentiment on the dollar. Mark an interesting story crossing the bloomberg on jamie dimon. He told irish Prime Minister leo veronica he has committed to new investments and jobs and dublin t increases though likely according to the meeting those notes were released under freedom of information request. Jpmorgan has agreed to purchase Dublin Office building that can accommodate roughly 1000 workers for an undisclosed price before it is completed. Interesting news out of that meeting between the irish Prime Minister and j. P. Morgan chase chief executive. Emma chandra has more in new york. Forecasters say irma is producing gusts near hurricane force. You 70 Miles Per Hour as it moves past tampa today. A trail of destruction. About 5. 6 Million People in florida are without power. Millions have been temporarily displaced. The full extent of wind and flood damage is not known. Damages from total 200 billion to lust and one fourth of that. The u. S. Has water down sanctions off north korea according to a european diplomat. The United NationsSecurity Council may vote whether to snish kimco best kim jongun regime for nuclear tests. A freeze of kims assets from the new sanctions removed. A warning from david davis. There could be a chaotic dissent departure if lawmakers block a key piece of Domestic Legislation today. Davis rejects accusations the government has launched a power grab with a bill that seeks to it intolaw and enshrine Domestic Legislation. Hillary clinton says given hate speech is to wall street was a mistake or the former democratic president ial nominee says in her optics of those appearances was a contributive factor in her lost the donald trump. She said she should have realized she would a giving she was giving her opponents ammunition. Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Mark lets get back to irma, which has weakened to a Tropical Storm after leaving millions without power in florida. The state did avoid the worst addictions. One estimate, the cost of total damage dropping to 49 billion. The National Hurricanes should center issues update saying irma is weakening while moving over northern florida with maximum sustained wind of 65 Miles Per Hour. A storm surge warning is being discontinued from the need to beat southward. Jonathan levin is on the phone in miami. In new york is michael mckee. Jonathan, what is the latest on the ground . Miami, folkse in are taking stock of what has happened over the past 24 hour. A large part of the population is without power. Many people in the street are saying they feel they dodged the worstcase scenario. Relief on the ground in miami. Vonnie let me ask you about the markets reaction. Well talk about the destruction in a moment. A huge sigh of relief. A chart that you brought it. 7396. Damages the total number dropping. They have dropped their insured losses number to about 19 billion. About 13 billion. It is still windy so they will take a while to get the exact figures. We are seeing less damage than people thought, which is good for reinsurers. Cdfs gone down quite a bit as wall street reprices the financial risk from these storms. Mark put in perspective what the damage is like for business over there. Jonathan the physical damage is limited, at least from miami. Sprawling Wealth Management seen down here. The biggest concern is not. Hysical damage a lot of buildings are going to remain closed today. Many, even tomorrow. Vonnie obviously there is an Economic Impact to florida and a secondary impact, adjured losses. Theres also going to be some kind of impact on the data, if not on the actual gdp number for the year. Michael messed up for quite a while. We saw that begin to happen with jobless claims up by 62,000. Btvcan see this job in our 7357 chart. The jump in jobless claims will decline. You have more people from houston this week and starting next week, the people in florida temporarily out of work. He job survey week there will be impact in the september jobs numbers we get in october so we will watch for that. Retail sales distorted because we will have a big jump in retail sales for september it is everybody but generators and everything they could get ahead of time and then it will fall off and one of the more interesting things to watch will be auto sales. So many cars destroyed. Florida, you probably wont see that replaced this month but as insurance checks come in auto sales could bump up again. They thought what were looking at a direct hit on miami this would shave gdp, probably now maybe about a wash and by the Fourth Quarter itch the out of the data. Mark that was reflected in the movement and cotton futures, orange juice futures. The chart i have to my right. The fact that both those commodities are declining today i suppose tells us the worst fears were not realized. That was one michael of the things people were really worried about because florida is the number two agriculture state in the united states. Comfort and produced in alabama and georgia. It looks like from the people who are experts in this are spending money, little is concerned about where this will go and the impact on prices overall, which should be good news for americans in terms of inflation but it is not going to help make the feds argument that inflation is around the corner. Vonnie at what point do you expect to see people coming back to the city and dare we forecast when tourism should get back to socalled normal . John . John returned to us in a few minutes. That was jonathan levin. Here in the studio in new york, michael mckee. Mark coming up, we will get inside of the markets and centralbank policy from ben laidler. He is seeing opportunities now. Mrs. Bloomberg. Vonnie live from bloomberg headquarters in new york, im vonnie quinn. Mark im mark barton. Roughly 15 minutes. Joining us now, ben laidler, global witty strategist at hsbc securities. Valuation may be here to stay as bond yields remain low. Does that mean weve got further upside into the end of 2017 . you might have a fall back into 2017 by looking at the 2018 we think 7 of for Global Equities and aggregate, including more in some places than others. The surprise this year in the way weve made more money than we thought we were going to make is earnings have essentially delivered. Multiples have continued to expand. Hat is a rare thing to happen all the way back to the 1980s to find something comparable. Mark what did you say . Ben we think the sort of forbearance actually continues. We think Central Banks will be rubbish around the world and that will allow valuation multiples to stay at his levels which are high by historic standards. Vonnie given that the bond market has priced out Interest Rate increase for a while, why only 6 or 7 for equities . Ben you are at a have valuation multiples that are 20 above historical levels. When it was 16, 17 ben we have come a long way. Away. Not too far expectations have come a long way. You may make a little more and valuation expansion but you have to expect most of it to come through from Earnings Growths. Mark lets talk about how this what this will actually mean for investing. What is does regional barbell you have undertaking . Sitting here at 20 valuations above historical level so i think some element of caution. We still like Energy Markets as being the big performer. T still has further to go valuation is still very cheap. Earnings are recovering. Investors remain cautious about asset class. We think you need to have some element of defense in your portfolio. We think you have fantastic visibility and u. S. Earnings right now with the economy recovering, with the weaker dollar. That is the recommendation we have for investors. U. S. E what areas of the are overvalued . Your liking u. S. Relatively speaking that there must be areas you consider dangerous territory. Ben commodities, long durations, these outoffavor defensive on proxies. Tech, elements of software services, financials. Ere neutral some elements of cyclicals. It is not by everything in the u. S. Youre seen a lot of money come out of u. S. Equities in recent months. We think you might get some tax reform and we think the fed is going to move very slowly and that is going to at what ourations historical levels. Mark it is a lot of that the earnings are not going to deliver . What is behind that call . Ben i think the earnings are not going to deliver. Forecasting it big earnings miss for next year relative to consensus. The strong euro in the context the european corporate has been the most globalized and sensitive for currency. Hybrid yields. Sensitive to that. And a gradual fade of this gdp recovery in europe. Europes are depressed in. Valuations are high. Any valuation discount you may see in europe is sector composition changes. Differences between europe and the u. S. Vonnie the dollar index is at 91. 73. U. S. That impacting Earnings Growth as well as which emerging markets your finding attractive . Ben currencies is making a big difference. At 10 move in the dollar index this year. A huge tailwind for emerging markets. The dollar has been a big driver of that. The broader macro backdrop. Lower dollar and low bond yields. Perfect macro environment for emerging markets. Pushing on the string because valuations have been so low. Earnings have been recovering so much. Of thishe ingredients earnings visibility we think we have in the u. S. Now. Vonnie where geographically . Ben china is the big one. , russia, cheapest market in the world. Were looking for oil prices to be higher. Vonnie thank you to ben laidler. Said toead, the u. S. Is of water down proposed sanctions against north korea and order to win more support in the United NationsSecurity Council. The latest, next. Lets get the latest on north korea as the u. N. Prepares to vote later on new sanctions against the kim regime. The u. S. Has water down its proposal in order to win more international support. Her. Ing us is john fra does that bring the chinese and russians on board . John that is the hope. The chinese and russians holding a veto. From the perspective of nikki haley and the u. S. In general, anything is better than nothing. From the u. S. Perspective, any deal they can get to tighten the noose a little more on north korea would be seen as a big step. Vonnie is there a point at which sanctions work . Hope inat is the washington and other european capitals. North korea has been put under a pretty tight leash. If you look at history, other countries, it does take a long time for this to work. We heard Vladimir Putin earlier this week saying the north koreans would rather eat grass than give up their nuclear weapons. Sections can work up to a certain extent but if you have a regime that come hell or high water theyre going to develop a Nuclear Missile and dont really care what happens to many of their citizens, it is difficult to get sanctions to be truly effective. We have seen this over the last few years. They keep making progress in their nuclear program. The real question to look at now is what sort of negotiations might be see going on behind the scenes between north korea and representatives. Mark is there a sign both sides are looking for a diplomatic solution . John if you look at some of the language particularly from Rex Tillerson last month, there does seem to be a willingness to lower the temperature on all of this. There was a report on japanese media earlier today saying former u. S. Officials might be meeting with officials of north korea. You have to look at it, these things work on two levels. The official level, people say they cannot talk with a prior regime. Riah if there is movement happening, that is where it is going on now. Mark thank you for filling us in, john. 4 26 in london. Take a look at where equities are heading as we move to the close. Hurricane irma struck the u. S. With less force than once feared, boosting equities on both sides of the atlantic. Mark this is the european close. Stocks finishing the session high. All 19 Industry Groups rising. Insurance, after Hurricane Irma strict the u. S. With less force than originally feared. Biggest game for insurers up 2 since april. Read, the Reinsurance Company confirming its fouryear targets. Damage from irma will and a drop in catastrophe reinsurance rates. Since july. Resuming operations after Hurricane Harvey is hitting Equity Investors against analysts. Traders are fueling the recovery by jumping on enticing valuations, which is the white line. Analysts continuing to reduce earnings estimates out of concerns that oils resurgence may not last. Stock since hundred oil and gas index rebounding 3 since falling to a ninemonth low. This is the big equitable road today. Shares down by 15 . 14 lower now. Biggest client for one year, noon in the companys chief executive, ending that search. The new chief executive of te va will face pressure from investors to split the company into two businesses. One focusing on pended specialty medicine, the other on cheap copycat drugs. London was at hb success when you look at total ,eturn shares plus dividends 53 during his tenure. Peers down by 11 . Nerves could find their frayed this week. Buffeted. Ikely to be sterling posted its biggest weekly game against the dollar since june benefiting from the falling dollar. This week, we have the brexit bill, parliament, inflation data tomorrow. Fairlyg has proven immune to the data in recent weeks. The blue line is sterling. Figures in the unemployment reports on september 13 probably on top of traders agendas. Keep an eye on the correlation between those lines. Theie last weeks drop for dollar was the biggest in three years at this point. Meeting the retracement the rally that began in may 2014. Were back above that for the dollar index providing some relief for the yen which is weaker almost at 109 at this point. I wanted to point out if you renminbi,e offshore trading at 6. 529. Will eventually impact exports. Some say it is already doing that. 1. 04yearold, almost 30 basis points lower than the market is pricing out the fed Interest Rate increase this year. Europe is doing well. Well must nikkei is doing japans nikkei is doing well. Gold is trading above 13 hundred dollars and closed above 1300 every session in september. The heating133391 oil market is impacted. No doubt by Hurricane Irma. And before that, harvey. Total damage, at least insured damage could reach 49 billion with 19 billion of that picked up by private insurers. The latest according to an key research. Harshest wins began to slow. Ning us in San Francisco some of them are rebounding handsomely. I guess investors are relieved it could have been worse for their companies. Over the weekend estimates were as high as 200 billion for total economic losses. 50 billion 49 billion is total economic losses projected. Of that, about 19 billion will be intensely insured losses. As low asme estimates 10