Typically have over the past several months after the north Korea Foreign minister says that President Trumps comments over the weekends have amounted to a declaration of war. The dow and the s p have recovered to some degree, although they are still down one third of 1 . We are seeing a selloff in Technology Stocks today. Microsoft,etflix, all taking a steep hit today. Its an interesting disconnect we are seeing here. Atr a doll by heimer over oppenheimer, tough me about how this has been doing better. This looks postelection, we have seen this rally in the smallcap relative to the large cap. Getting done as the domestically Oriented Companies are seeing it potentially benefiting from that. Will continue to watch that trend as we get more details. Tenor seeing a risk off in the wake of those north korea comments. The yield reversing some recent games now. Recent gains now. It has been accelerating throughout the day. Still at historically suppressed levels. Oil is continuing its rally. The latest for Oil Prices Going as the kurdish independence referendum is seen as causing supply disruption. Nymex crude oil is up more than 20 . We are seeing Energy Stocks rally. You have the likes of helmerich and payne. Helmerich and payne within that group. The National Association of business economics meeting is underway in ohio. Correspondent Michael Mckee is there and joins us now with someone who is calling for a fed rate hike in december. Take it away. Much. Nk you very its a bit of a different call for you to be in line with the fed in terms of how many rate increases are due in the next few months. Much more sobering what the fed would do and what markets were expecting. We expected one hike in 2015 and one in 2016. We have been pretty adamant about three hikes next year. Yet thethe tail and fed was able to surprise us a little bit and the Company Materials that they might down there and marked down there inflation forecast. Really driving home that message the low inflation is disconnected from the economy. Staying on a gradual tightening path. Rate islly the fed choking off inflation. It. Yet we dont see tool rate at their value,n at face tightening conditions to slow and overheating economy. The fed the leaves if it were raising rates more aggressively, then it would be raising rates to slow and overheating economies. It is growing ahead of its potential. Paceintaining a gradual they are trying to not fit into that typical cycle we have seen in the past where they are raising rates weekly to keep the economy or to slow what is already an overheating economy. That is disconnected between policymakers and the market. Allowing them to continue with a gradual pace. You be the decider, when do we get 2 inflation . Itwe only forecast through through 2018. Policymakers are coming around to that realization. They keep reminding us that that 2 gold is symmetric. I think the band is going to obviously be constantly tested at the low end or below that 2 . Do they have the right policies in place to constantly encourage inflation pressures to build . And allowing financial recommendations to not fight against that too much. They are not going to get to their 2 gold. We are a conference of economists. A lot of exhaustion this impact tax cuts, they are going to be announced this week. See tax cuts affecting the economy growing between two and 3 right now with unemployment at 4. 1 . Growth doesnt boost does it boost growth . I think we will get a broad outline of what that tax policy will look like. Most economists hold the same view as chairman yellen. If you do that, just bald fiscal cycleus, this late in the , you can create that boom bust cycle where you punch the economy across the face. They are going to have to raise rates more quickly. The cycle is not going to last that long. Watchful ofre very what types of policies are included in this legislation. Will it permanently raise investment so the productivity rises and perhaps potential growth and equilibrium rates will rise . That the policy we look for late in the cycle. This is part of why am so excited to be at conferences like this. You do a capex indicator, you look at how much Business Investment is being made. Companies have been have record levels of cash. Interest rates are extremely low. They bring down the Corporate Tax rate, life would we think we have some kind of investment boom . This is your regardless of tax policy. If you look at spending in the u. S. , it picked up smiley on the back of the rebound of global growth, which global trade indicators started going through last summer. We have seen domestic drivers. This is an area that has upward surprise. We think we are in the midst of a durable cyclical upturn in investment in the u. S. That is not something that is the effects of what congress may deliver. I much i can point to many ceos out there to look at what congress may deliver and look at these 10 year investments. Guiding on that. That is very important on here because it means some complete fiscal failure, im not so convinced thats going to damage this cyclical upturn we have investment going. For the nextk out jobs report and we have some numbers presented yesterday about the impact on euston and do have the florida hurricane as well. What is Morgan Stanley see for the jobs report for september when you factor in the hurricane . The run rate was 180. Tend to overestimate the impact to headline jobs. The bars very high for being counted as unemployed. Your hours may be cut. As are probably not counted unemployed. There is no hit to headline perils. Mapmates are all over the from 100,000 to an estimate of over 200,000. It is going to be all over the place, which tells you know when knows what to anticipate on the payroll report. Markets understand are going to be hurricane effects and any data is going to be dismissed. I may as well stay home that morning. Thank you very much, chief economist at Morgan Stanley. We going back from cleveland to new york. A great interview. And fed chair janet yellen is said to speak on it late in Monetary Policy tomorrow. Lets could she checked on bloomberg first word news with emma chandra. The rhetoric escalated further today with a direct warplanes by. North koreas prime minister. Since the u. S. Has made a declaration of war we will have every right to make thetermeasures, including right to shoot down the United States strategic bombers, even if they do not come into our airspace. Flew closest to the korean korean Demilitarized Zone than any in a century. Following a surprise in the german elections, incumbent chancellor Angela Merkel must now begin the daunting task of forming a new coalition. That is after democrats announced they will not join mark for her fourth term. We will no talk about what our approach will be to the other parties, looking to the top with the ftp and other parties. It is important that we have a stable and could government in germany. The antiimmigration party also won parliamentary seats for the first time. Florida key Officials Say the island chain will reopen to tourists october 1 after an estimate of 25 of homes across were destroyed two weeks ago. Power is now restored to themmers that can receive and a boil water notice has been lifted. A crew ship returned to qs for the first time. Search teams are still digging through piles of rubble, hoping to find survivors trapped in collapsed buildings. Only 1 of mexico city schools reopen today. The 7. 1 magnitude earthquake killed at least powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. , an exclusive interview with one of the largest coal miners in the world. Joining us from the denver gold forum. This is bloomberg. s. North korea prices continue to climb as investors turned safe havens. At the denver gold form which is underway in colorados rings, and has an exclusive interview with one of the largest gold miners in the world. Much imyou very joined by the ceo of the goldcorp company. Since then you have done a few of them. To you see the company doing more . We have three projects in execution right now. We have something in the expectterm copy which we late next year. We are likely to make a capital decision there. Representing longterm options. Model ofe that collaboration. The collaboration and sharing the technical financial risk in these largescale projects. You dont need to do more acquisitions and partnerships. Do you think youd will do more . I wouldnt say them and they is impure to four us right now. Sold four assets in the last year and a half and we realized half 1 billion of consideration. Capital. Oyed that any large assets we think we will dispose of in the short term. You have been granted approval to move ahead with some conditions around water. How stringent are they . We are rethinking the entire project district. We are combining to largescale deposits that werent combined before. That freshwater license gives us some additional flexibility. Is there an appeal process important to you at all . We are not relying on that whatsoever. Across the entire organization we are looking to drive water consumption down as dramatically as possible. Object if. Pirational we drive down water consumption as a company and an industry. To you have a timeframe for that goal . 10 years. When do you expect to reap the rewards of that investment and is there a price that is required for it to be viable . Were assuming we can develop that project below today. Accommodation of two assets in close proximity to each other. Than building to industrial complexes, build one. By doing that you are likely to make you much Stronger Economic position. Generating cash flow, what is your estimate for that . We are likely to conduct a for a couple of years before we get into feasibility stage. We are looking at a fiveyear plus horizon. They are likely to get sanctioning for that. You are an Interesting Company because for the past or quarters you have met your production targets. What is it shareholders are missing . Gold is out of favor for general equity investors. Even smallscale m a or capital investment. They are looking to employ them back in the technology sector, Financial Service sector. Courage tolot of build and buy. You should be buying low and selling high. Bullishw you guys are longerterm, but nearterm what are the key drivers . Political uncertainty and risk is a key driver. Even though nominal rates are going up, we think inflation is going to outpace that. Real rates will go down. Back to you in new york. Collect thank you so much for that interview. Sarah Huckabee Sanders is at the White House Press briefing. She says it is appropriate for the president to defend the flag. On tv go. Tch that live from new york this is bloomberg. This is about the president being this is bloomberg markets. Its time for the Bloomberg Business flash, a look at some of the biggest business stories in the news. Pretty bonds dropped the most in two years. Prices. Save on asestructuring cleaning debris and reopening ports. Could taker says it up to six months to fully restore power. President trumps criticism of nfl players connex during the players conduct during the national ad them National Anthem have some criticism is your. I think they should dan donald trump. A behavior that is very counter to the terms of service, and yet he continues to begin at a huge platform to dominate to encourage the same bad behavior. Click starting at 5 30 p. M. Wall street time. That is your business flash update. From new york, this is bloomberg. In midtown manhattan this is bloomberg markets. Commodity markets are closing in new york. Lets get you caught up with what is going on with oil. Turkeyat 60 per barrel, shutting down Oil Shipments because of an impending kurdish referendum vote. It has seen more than 100 of implemented 9 , on a 10 recovered from this month. Opec and International Energy agency says oil is improving. Of a uti above 50 per barrel. Gold spikingt after north koreas foreign minister says his country can shoot down u. S. Warplanes in international airspace. Fueling a rush to haven assets as investors wave geopolitical uncertainties. Angela merkel secured a fourth term as german chancellor. The win was overshadowed by her party receiving force receiving more shares of votes than expected. Ast posted a surprisingly strong surprisingly strong result. The euro dropped on that german result. We give you a look at what is going on. On the euro. A sense of on the big stories in europe. See the result of the votes in the collection. That was a led bloc that one. You can see the party that one ,hing the secondmost votes they are very antagonistic. Coalitionve been in a with Angela Merkel for many years now. We were questioning whether or not they would decide to distinguish themselves here. Saying we would be in opposition party. A strong support for the party. A number of elements that will delay coalition building. And Angela Merkels relationship with President Trump has been screened. Trump has been critical of merkels immigration policies. To issueled on jimmy more to native spending. Nato spending. It began by asking merkels about the evolving relationship in the u. S. Shes going to stay calm and collected on german interest and bother her. Icism she will have different coalition partners. Green them will be the party. One will be more angry about that. The other will be more business oriented. Its not quite clear. Far as merkel is going to as far as merkels concerned nothing is going to change. She would beceived stronger and her election results. Issue week and havent put together this coalition . Manye doesnt have as seeking parliament as before. There she is weekend. Unavailable that there really isnt anyone on the horizon who can replace her. To she need to move to the right on immigration . We will see. Profile andy high prorefugee statements she actually moved far away from one ofready area merkels talents is to change policies without ever seemingly changing them. The question will be whether she or her Bavarian Sister Party feel like they have to meet them point for point on the conservative rhetoric. Where does this leave the populism conversation in new york and the u. S. . I think the populism conversation has been overdone. There has been this backandforth all the time. He went directly to the people, pushed aside all the Political Parties but we dont consider him to be a problem. I think the problem is a different one. I think the structure of politics in europe, the Party Systems are starting to break apart. Germany now has six parties in the parliament. 20 years ago it had four, 30 years ago they had three. You can say thats them a chronic. It takes apart the very firm unmoving structure that has guided germany for a long time. That will be a big fit big issue in the future. You have been an observer for many years. All much of what you described is based in economics . That is to say people feeling like their income is not growing, their prospects are not getting any better . A lot of it is based in economics. It shows how difficult this is even to judge. Its Unemployment Rate is about 4. 5 . The United States is mad at it because we export too much. What there is is a sense in germany and other countries and somehow the system is coming apart. This is a strong in germany as anywhere else. Former ambassador from germany speaking with daybreak america. Europe, toed across get more than 30 of the vote after 12 years and one million migrants coming into germany, that is a pretty strong result. Lets get you some other headlines. Hashe Supreme Court canceled arguments in a dispute of President Trumps travel ban. The order from the justices asked both sides to weigh in by october 5 on what to do. The court have been ready to hear arguments about the dan. Ity on then 90 day new policyaced by that affects each countries and has no Expiration Date the chief negotiator says the u. K. Government must abide by all rules during a transition period following brexit. Last week theresa may proposed a two year after leaving the block and 2019. Regulations, enforcement, financial conditions must be maintained without any exceptions. House Speaker Paul Ryan is promising that washington will make sure that the people of hurricane devastated puerto rico have what they need. Authorities are struggling to provide adequate relief to the 3 in the islandns territory. Tens of billions of dollars more are sure to be needed in the weeks and months ahead. Killing oneged with in a church in tennessee will have a Court Appearance on wednesday. He is facing one count of murder the police say additional charges are expected. According to an arrest affidavit he waived his right and told police he arrived to the church armed. No motive is being determined. Powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. Some of the nfls major sponsors are speaking out. What they have to say with trumps rift with the league. This is bloomberg. One of the most important movers of the day, facebook shares have been picking up throughout the session. Julie hyman is here with more. This is a story you broke after the close on friday. Zuckerberg was abandoning his retain most would of the controls even a he sold his shares. He is now saying hes and 10 to sell shares. Shares5 million facebook in the next year and a half or so. Sale,e had that kind of a he also talks about the companys current valuation allowing him to do so. Showing the various holdings of fa