Trade center for a ceremony that began with a moment of silence and reading of the names of the more than 3000 people killed. News 24 hours a day. I am in the chandra. This is bloomberg. Bloomberg technology is next. Emily i am emily chang in this is Bloomberg Technology. Cupertino hits reset. We will discuss the latest phones on tap and other products to be unveiled in just 24 hours. The fallout deepens after one of the biggest data breaches in u. S. History. We break down the ongoing Disaster Management at equifax and the new rules being drawn up for better corporate transparency. Has added thousands of items to its website causing a surge in online sales. The countdown to apples biggest event in years. Worth 800ant now billion is expected to unveil three new iphones on tuesday, including a Premium Model called the iphone x that carries a price tag of 1000. The publicity is a reminder of how much the Company Relies on the iconic gadget which still represents about 62 of sales. We will be at the big unveiling at the steve jobs auditorium. This is the first time they will be opening it to the public. Will investors and customers by uy in . You guys have been the drumbeat for us over the last weeks and months. Any new details . Anything you have not told us already that we will be seeing tomorrow . I think you can see it on bloombergs website what we have been doing. Alex has been doing a great job and i have been helping. There was a big leak over the weekend. The build of the final version of the new operating system leaked on the web to a website we know well. It had lots of details on the phone. The biggest reveal was the names. It might be iphone x but i am reading it as iphone10. You have been crunching the numbers trying to figure out how much more apple will be making at the higher price point. There have been great Analyst Reports on this. A reports of a 1000 iphone could add about 6 to the bottom line at apple which is a big chunk of change. Notrisk is people are willing to pay that much for the phone. What will be interesting is seeing where the customer split lies. How many people think it is 1000,ile spending whether they space out payments, or are willing to pay for the eight phone iphone 8. Interestingis an point bob odonnell raised on friday. The iphone x will be such a different design from the previous models or the iphone 8. Could it cannibalize the sales of the lower end models . Less expensive models. What is the possibility a lower the price of the 8 . Plus came in with a lower differentiator so they did not lose sales pretax if you have an iphone selling for 1000, the next price point seems cheaper even though it might be more expensive than the predecessor. We will see the widest ranging pricing on iphones we have seen. Is selling for 399. There is a chance they cut the price. We have iphones ranging from 350 up to 1000. That will be in adjusting model. Emily what does that mean for apple globally . We know about competition in china. Are we expecting a pullback in some markets because of the pricing or not because theyve such a wide continuum . Apple has a good distribution network. They will try to push the lower models into india, in particular markets in china. They will place the highpriced market in the bigger cities. Think in some of the chinese and asian markets, the iphone x will be a hot seller. I saw an Analyst Report this morning saying the gold version of the iphone x is going to potentially launch later than the white and black. Apple came out with their first gold phone in 2013 to appeal directly to the chinese market. It will be interesting to see how that plays out. Emily what do we know about supply issues . We have been concerned about supply constraints. You will not find the iphone x. I know alex has been wanting one. You may have to wait in line for a while to find one. This is going to be hard to find. 8 plus will ship in quantities starting about a week and a half from tomorrow. They will probably put it on preorder a couple of days from now. Emily preorders of iphone 8 have broken presale records. Is that good or bad news for apple . It shows demand at those prices. It will be adjusting to see given the appetite. Last year, we said the iphone ue has died. The demand for the iphone x and the expectation for supply constraints, perhaps we will see the iphone cue rising again. Emily there are other products unveiled tomorrow. Apple tv, the watch. Tell us what else we can expect. Two other major product lines. Apple tv in 4k. The apple iphone watch, you will be able to make phone calls from it. Three major products. It will be a significant launch for apple tomorrow. Emily see you both there tomorrow. Very excited. Mark gurman and alex webb, thank you so much. Tune in tomorrow for our live coverage of the apple Product Launch starting at 1 00 eastern right here on Bloomberg Television and Bloomberg Radio. Google took its fight over a Record European Union antitrust fine to the e. U. Court, starting a legal challenge that could take years to conclude. The e. U. Slapped google with a fine in july saying the cup of company unfairly uses it Search Engine to direct customers to its own shopping platform. Week the firstt case must be reexamined. Probetors are expected to into the advertising and android mobilephone software. Equifax still reeling from the massive data breach that may have impacted basically anyone in the u. S. With a credit card. Can their insurance policy come close to covering the damage . What are they doing to stop the bleeding . That is next. Bloomberg technology is Live Streaming on twitter. Check us out weekdays. This is bloomberg. Emily china is dropping the hammer and cryptocurrencies. The government announced plans to ban trading on domestic exchanges. The band will only apply to the trading of cryptocurrencies on exchanges. It is the second blow to the global 150 billion cryptocurrency market. Now to another story we are following, the massive equifax data breach. Shares of the agency have dropped as much as 20 since the news broke late last week. A classaction lawsuit is demanding 70 billion in damaging. The company carries an insurance policy for situations like this. He reported only coming covering up to 150 million in damages. Join me to discuss the latest, phil quade. He spent three decades in the n. S. A. And served as the chief of the cyber task force. Thanks for joining us. The hackers that a sixweek head start on investigators. What does that mean for the people whose data was stolen and for the investigators themselves . Thanks for having me today. I think it means the company is doing its Due Diligence to figure out what happened, the extent of the breach, and what they need to do to address the victims of that breach. They will be cooperating with Law Enforcement to get to the bottom of it. Emily in europe, there are laws against not reporting things like this faster. I believe you are required to report data breaches within 72 hours. Wouldnt that make more sense so the hackers do not get so much of a head start . We might be talking about apples and oranges. I think what you are talking about is the European Regulation r which is designed to bake in Privacy Protection for clients of companies that handle personally identifiable information. The approach is a little different. Model United States, our is more one of Market Forces with the end of the continuum being legislation. In the u. S. , we go from Market Forces to public outcries to executive orders to regulation to legislation. That is the continuum from minimum to harsh. In the European Union, they start closer to the regulation part of the continuum. There are hefty fines if you have breaches of private information, up to pour from 4 of global revenue. Emily dick durbin said we are dutybound to step in on behalf of innocent citizens who will pay a price. He added this is an indictment of current regulation when it comes to this industry and others. How do you respond to that . E forthink there is a rol government, at a minimum trying to incentivize companies to avoid the false choices between convenience, privacy, and security. I want all three as a consumer. The best systems can provide all three. Emily what do you imagine investigators are doing now . Explain what is happening behind the scenes. They are looking primarily at forensics. Hopefully, just as important, they are looking to the future. Theyre looking to see what strategies and technologies they are to be implementing. Things like really good segmentation at the macro and micro level so future breaches are limited. They are looking for solutions that implement what i call defense in depth. Rather than relying simply on point solutions, they might have a bunch of Automated Solutions working together. I am guessing they are looking closely at the best way to communicate with the private sector since some many people were affected by the breach. Emily there are reports this was possibly accomplished by exploiting Certain Networks other Major Companies are based on. What is the likelihood many other companies could be at risk of the same kind of attack . It is quite possible. We collectively do not have that specific information yet about the point of the original breach. There is one company who stepped forward and said it might be us. This is software used in 65 of the top 100 fortune companies. If it is a zero exploit of the Software Package or if a patch has been released. It is important to understand there is a point of entry they came through but there are likely other points in the network where the defenses did not live up to what was necessary. Emily would you say to scale of this breach is as bad as it gets or it could be a lot worse . The scale of this is about as bad as it gets. There is probably not a viewer of this show that has not been affected. And is unique in its scale in the type of information it has breached. This is not me having to change my email password or email address. Breachs resulted in a of hard to secure information. By Social Security number, my date of birth. These are very personal things. It is different both in the scope of the compromise and the nature of it. Emily what do you imagine will happen to all of this information . Quite honestly, this is most likely to be a criminal event. I like to categorize threats into four categories. Number one, individual hackers looking to cause mischief. Number two, persistent criminals looking to make a buck off the compromise of private information. Three, it could be countries looking to destabilize democratic institutions. The fourth type of threat is countries who look to impose their national will guest other countries in times of crisis. Two is probably in category where it looks like a criminal element. It is most likely they will try to commoditize this private and Financial Information and sell it on the door dark web or other places. Emily thanks so much for your perspective, phil quade. Coming up, amazons purchase of whole foods is rattling brickandmortar grocers but also making an impact online. Details next. Check us out on the radio. You can listen on the Bloomberg Radio app and on sirius xm in the u. S. This is bloomberg. Emily European Union regulators may try to ban employers from workers wearable fitness trackers even with the employees permission. There are concerns about how the companies will use the data. The panels recommendations are nonbinding leaving the final decision up to the individual nations. After amazons purchase of whole foods went through, changes in the stores started to happen. While he was shaking up locations, it added thousands of items to its website. Olivia zaleski joins us from new york with more on the story. 25 increase in foot traffic and an increase in the amount of groceries sold online where analysts thought they would have trouble doing that. Analysts were concerned the two brands would cannibalize each other and sales might go down in both places. It is quite the opposite. We saw that foot traffic went up about 25 . Skusso saw the 2000 new amazon added from whole foods almost sold out entirely. Only 7 remain. Emily you and i have talked about how i prefer to do my Grocery Shopping in person. I want to get my right avocados ripe avocados. Some people say there may be a fundamental shift in how people shop for groceries happening now. Where will the chips fall . How much will happen in physical stores . How much will happen online . Several experts today said we are on the precipice of a fundamental shift in consumer behavior, that consumers are going to start feeling more comfortable buying groceries online. I think a lot of that has to do with the fact that amazon previously had a wide range of groceries but there was no brand recognition, there was that sense of trust. You did not know where the produce was coming from. One thing whole foods has done an incredible job of is Building Consumer trust. It has created an identity as a healthy, organic chain that vets every product. Amazon by buying whole foods takes that trust under its umbrella and consumers will feel more comfortable. Last year, less than 5 of people purchased groceries online. And already this year, we are seeing that number rise to 13 . Emily how much of this traffic surge has to do about price . Does it all come down to have cheap you can get it . I think that is important. Also what played a big role was all the press and marketing in the last couple of weeks. There is a lot of excitement about the merger. I think that is what we can learn from what has happened in the past couple of weeks. This merger between amazon and whole foods in consumers eyes is a good thing. Emily what do we know about how the amazon prime fresh, Online Grocery service, is doing . Amazon is very tightlipped about that. I will have to get back to you with those numbers. I dont know how that is doing. Emily obviously, there is a huge challenge dealing with fresh foods. How did amazon plan to manage all of those challenges as it makes this massive transition . One of the most remarkable things analysts pointed out today is how quickly amazon was able to get all of these whole foods skus online, how quickly those 2000 ont its website. I think that is something we should be keeping a close eye on, the way amazon can move quickly. It has an incredibly staffed backend and is able to upload products much faster than Traditional Grocery stores. One analyst today said it would have taken about three months for a traditional brickandmortar store to get that many online. Zaleski, thanks for keeping us updated on the numbers. Coming up, anticipation for apples latest iphone has hit fever pitch. We will look at the iphone and its importance to the companys evolving ecosystem of products. You can find our interactive tv function at bloomberg tv. You can watch us live. If you miss an interview, you can go back to it. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Mark i am Mark Crumpton in new york. You are watching Bloomberg Technology. Lets begin with a check of first word news. President trump says 9 11 was a wakeup call to the country. The president spoke at a Memorial Service at the pentagon on the 16th anniversary of the terrorist attacks. President trump not only did the world change, but we all changed. Our eyes were opened to the depths of the evil we face. The United NationsSecurity Council votes today on a scaled down sanctions resolution against north korea. It eliminates initial u. S. Demands to ban oil imports to the country and Freeze International assets of kim jongun and his allies. The version on the table is strong and robust. It is a significant set of additional sanctions on imports into north korea and exports out of north korea and other measures as well. Mark irma has been downgraded to a Tropical Storm but still caused significant damage. After triggering record flooding in florida, it crossed into georgia where it created storm surges with the coast along the coast with south carolina. Stormcal storms warning warnings were issued for the first time in atlanta. In mexico, the massive earthquake that devastated the southern part of the country killed at least 90 people. Aftershocks are still being felt across the region. The quake also destroyed or damaged thousands of homes and hundreds of schools. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. It is just after 5 30 in new york. 7 30 Tuesday Morning in sydney. Paul allen has a look at the markets. Good morning. Hall good morning. We are expecting a decent day in the asiapacific after the relief rally in the United States. Florida occurring to dodge the worst of hurricane irma. We are seeing that play out in futures on the nikkei and futures in australia up about. 5 as well. We are talking about the aussie dollar versus the u. S. Dollar recently. It now seems to have sustained strength above . 80 u. S. And we will be watching the pricing of the iphone in aussie dollars. The index shows the phone is becoming less affordable despite the high aussie dollar. We are waiting on Business Confidence in singapore retail sales for july. I am paul allen from sydney. More from Bloomb