Planned parenthood clinics are charging new fees and tapping financial reserves and intensifying fundraising. The organization is warning of more unintended pregnancies and sexual transmitted diseases after it was removed from a 260 million federal familyplanning program. Planned parenthood and several other providers quit the program rather than comply with a numeral prohibiting clinics from referring women new rule riveting clinics from her for women for abortions. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. York,ne 2 00 p. M. In new 7 00 p. M. In london. Live from bloomberg World Headquarters, and caroline hyde. Romaine im Romaine Bostick come in for scarlet fu. This is Bloomberg Markets the close. Caroline officials cast doubt on further rate cuts. Apple revamp. We are weeks away from a wave of updated products. Bloomberg has the scoop on what the company has up its sleeve. Pilot error exclusive we hear from the ceo of one of silicon valleys most secretive companies on the future of ai. All that and so much more coming up. Romaine lets do a quick check of the markets, caroline. We started out the day in the green. We are struggling to get back into the green again. Percent500 is up. 1 there, although we were a lot lower. Financials doing the heavy lifting today. That whole rate story back in play. Jpmorgan, all those names, a little help from boeing and retailers like nordstrom. Caroline it almost 100 is that the yield curve inverted again. Up at 10 a clock a. M. For a split second. Romaine i know some a happened yesterday late in the day, it happened again today. People are concerned about it. When you have these brief flashes from it is easy to write it off as this is just buying on one end of the curve. Caroline but it is something that the fed has three paying attention to. Talking by being on hold for now in terms of further easing. A little more of a cautious tone. The u. S. Dollar is basically flat. Romaine seen a little bit of a bid there. Russell 2000 floating within the 200day moving average. A little deeper into all of the action with our markets reporters. Get us started. Kick it offnt to with overstock. Com. Shows are rising 70 in the intraday, after the ceo and founder resign from his post intimate session announcement. He had a pretty controversial rain, but it was his personal claims about a romance with the russian agent and his involvement in federal Election Investigations that ended his tenure. For director Jonathan Johnson will succeed him on an interim basis. Lets look at the yeartodate and see that shares have had a little bit of a topsyturvy time, and they are expected to do much better by analysts. Abigail . Abigail renita, from the micro to the macro, lets to get you many futures. Stocks all over the map. Overnight you see these features were signed around even, and at the open, up. 3 . Caroline was talking about efd official Patrick Harker a little more hawkish tones, saying he is on hold for a rate cut. We saw these nosedive. Down just slightly. Up slightly. S investors might want more of an a common to come. Know to the extent that these come out of the fed chair jay powells prepared remarks but there is time to shift them if you wanted to. All of this fits into what we have seen in the Third Quarter. It is very important what were looking at in blue, gold, and verbal. S p 500 in white and yellow. To the fomc meeting, the first you look at the fomc meeting, all higher after that. Gold took off. Havens higher. My now, lisa, the Third Quarter is shaping up to be risk off. Interesting to see what jay powell does a tomorrow in jacksonville. Lisa indeed, abigail come whether he can say anything to stave off the riskoff field. Another indicator that is bearish, yield curve inverting toin, lowest going back 2007. It typically is a predictor of recession, classical used to indicate that investors see longterm growth slowing further and not wanting to lend on the shortterm level to which raises the question, what that the fed due to steepen the old curve the yield curve . Again, these signals are being sent that people are not expecting growth to pick up. They dont think the Federal Reserve is added quickly enough. It is putting the focus on jay powell tomorrow and raising the question, what could he possibly say that will actually materially change the market outlook, caroline . Caroline lisa, great that you hit that. We thank you. Lets get a quick check on the rest of the u. S. Economy. It does not mean lower Interest Rates, apparently. He spoke to Michael Mckee in jackson hole, wyoming. As i look at where the economy is, it is not yet time, im not yet ready to provide more accommodation to the economy without seeing an outlook that suggests the economy is getting weaker. Slowed, itring has is still healthy. Our company struggling to find workers or are they cutting back and limiting hiring because the uncertainty of where the economy is going . Esther the reports we get so far are that businesses are having a hard time finding people, they are wrestling with wages and thinking about how to compensate the workforce that they need to be productive. I think that still is one of the largest concerns, keeping the workforce they have an figuring out how to compensate them in a way that will keep them. Michael you know what my next question is going to be, where is the wage pressure . Esther i think we are seeing higher wages. Its true that for a number of years, even as the Unemployment Rate came down, we were not seeing a pickup in wages. Over the last couple of years you have seen that pick up, and i think as productivity has gotten stronger, the recent releases around that suggests that inflation is not going to pop up in a way that will undermine the workers ability to rely some gains around the wage growth. Michael let me ask you about how you look at Monetary Policy, because you were an advocate of raising rates to get ahead of inflation. If you are not ready to cut rates, are you happy with where rates are given that inflation is lower than anticipated . Would you be happy to leave them at this level for quite some time . Esther i think that is going to be a process of judging how the economy unfolds. Where rates all right now relative to the Unemployment Rate and inflation suggests we are at a sort of equilibrium right now. I would be happy to leave rates here, absent seeing some weakness or strengthening, some kind of upside was that would cause me to think that rates should be somewhere else. Romaine that was the Kansas City Fed president Esther George speaking with bloombergs Michael Mckee in jackson hole. He joins us right now from the scene. Michael mckee, argued th are you there in jackson hole . Michael yes, we are in jackson hole. Romaine great interview there. Towards the end of the clip we just played, she talked about the idea equilibrium. How alone is she with regards to fomc members from Esther George, in that thinking right now . Michael in that thinking she is probably with the majority, given that we dont really know neutral is. It is more of a feeling that an actual number you can pick out of the air. There are a lot of people on the fed who think we are at or close to neutral. One of her adjustment they might make to take out socalled insurance for the economy would not be that large. That is why you see even doves like jim bullard, one of the first people to call for a rate cut, saying he is not ready to do 50 basis points. We are still set up for a rate cut, perhaps, but not as much as one as wall street might have hoped. Caroline we have also just got international geopolitics, something to the Federal Reserve is having to digest. I want to ring viewers breaking news out of rome. The italian president has been talking to reporters and saying that he is giving the party more time to form a new government. Those talks that we might see the fivestar part of the Current Coalition moving into a new coalition with the democratic party. This would mean it would push off the leak coming into control. The league is particularly antieu. Of late, thebonds hope that we will see a new coalition when the league needs power. The italian president giving the key parties more time to form a new government. Mike, we have heard from the Federal Reserve that many of the headwinds that they face are not actually of the u. S. Making. They are global making. We saw that evident in the pmi from europe. They paint a painful picture, particularly with what is happening in germany. We have the u. S. Pmi showing a global slowdown in manufacturers in the u. S. How do you think the Federal Reserve will be eyeing this data . Michael they are looking at it from the point of view that it generally starts with the u. S. Trade war, because that has crimped not only global type of trade between countries that depend on trade like china and germany. They are still hamstrung. Cutting Interest Rates is not going to do anything about that, isnt going to help overseas economies. It might help with dollardenominated debt in the emerging market cap. That is not a major issue at the moment. We are kind of in a situation where what needs to be done is the trade war needs to be handed and countries need to do fiscal stimulus. The fed can do something about neither one of those things. They have to hope that perhaps germany will do some decimate some physical effort make some fiscal effort, and a pentagon who ends up in power in italy, they will do the same. Romaine that brings us to the topic of the meeting you are at, the challenges of Monetary Policy. It will address what a lot of Central Banks seem to try to address them that cutting rates alone isnt enough to address the challenges that are facing all the various economies. How much do we expect to hear about alternative measures that the Central Banks themselves can take . Michael you hear a lot of theory, romaine. We will not have any decisions made or anything that is favorite in any of those areas, but the fed and other central bankers want to understand what alternative tools they might have. In prior recessions, the fed cut rates by 500 basis points. We are at 200 right now. Do they go straight to qe . Without the same efficacy it had during the financial crisis . How much did it have . Do they do Forward Guidance . To the markets believe them when they say they will have Interest Rates at a certain level . Do any of these things work . Right now we are not talking about the cost of credit, were not talking about demand in the United States. Were talking about uncertainty. Dietary policy cannot address Monetary Policy cannot address that. Caroline Michael Mckee, thank you. We will have plenty more from mike for you tomorrow. Special live coverage from jackson hole symposium. The dallas fed president of a tablet, the cleveland fed president , and the Philadelphia Fed president. So much more coming up. Ridee will get to a wild for tesla. Shows fluctuate as they deny vw denies the report it is interested in buying a stake in the country. Apple is gearing up for a rate that revamp on one of its most popular products. And what airline is looking to test marathon direct flights. Will passengers be able to bear them . This is bloomberg. Caroline time for our top calls, the key movers on the back of analysts recommendations. Toll brothers cut to market perform from the outperform. Analysts are saying it lacks a catalyst to meet immediate plans to drive performance. Inent other numbers coming terms of the Housing Market helping that one. Next, oppenheimer cut disease price target, but it did maintain the outperform disneys price target but it did maintain the outperform rating. It could hurt top trends in coming quarters. 7 as retailers remain in control. Finally, as the upgraded to buy from hold. Analysts are setting the stock trading at attractive valuations following recent declines. Shares up 1. 5 . Those are some of our top calls. Romaine. Romaine thanks, caroline. Volkswagen is denying a report that the german carmaker would be interested in buying a stake in tesla, calling it unfounded speculation. Buying a stake in tesla would undercut the ceos stated and to take the electric carmaker had on itself. Joining us live from detroit is david welch. Tesla shares got a pretty nice pop free market when the report came out. I believe it was an interview in a german magazine. But this is not the first time there has been speculation about volkswagens potential interest in tesla. David i was about as a commit is that time of year for another rumor about volkswagen wanting to buy a piece of tesla. Somebody had written in 2017 that volkswagen wanted to buy a piece of tesla, and the cfo denied it by the rather vociferously at the time. This report actually cited unidentified volkswagen managers saying that they would like to buy a stake in the company. I guess you could see why. There was a time when people look to tesla as just having this attractive brand. But if you look at it, they have good technology. They are the only ones doing overtheair updates. They have one integrated embed i ed computing system in the car they can lock down from a cybersecurity standpoint. Some of those gets applied by three or four different suppliers. Places where you cannot locked everything down. There is fear that they can. One thing tesla has. The cars of really good range. In terms of how far you can go before the car has to be charged. They have a good battery pack. That brand is worth a lot of money. The company is worth 40 billion. There is a lot to like about tesla, but it is very expensive for anyone to buy a piece of it. Caroline as romaine mentioned when introducing you, they wanted to take them head on. They have committed to making one million of these vehicles by 2025 themselves. David they have one out there. They have to take candidates out there, and you have other cars in the next few years from different Volkswagen Companies that will take tesla on. Ars havente tesla cur really caught on. We have seen a couple of them with audi and jaguar land rover. General motors has the chevy volt, much cheaper than the tesla model 3. The tesla brand is really powerful and kind of like the iphone was before had any real competitors in the market for a smartphone. It is just the thing to buy, if that is what you are looking for. Tesla does a lot of other things really well big touchscreens, cool designs, just a lot of things about their vehicles that people are. They have been a giant in this small but growing ev space that Everyone Wants to emily or take on, but so far it is been tough for anyone to succeed. If volkswagen hypothetically were to want to do this, even to get a 10 stake would be 4 billion. Is that really what they want to spend the money . So far there saying no. Caroline david was telling us it straight. May be formingks in the leverage loan market. Loans are relying more heavily on poor rated corporate debt. This is bloomberg. Caroline the leverage loan market has been a longtime favorite of private equity firms, with buyouts for targeted companies and more recently at record low borrowing costs. But with deals falling through in the past two weeks, recession fears may be keeping investors and they. Lets bring in our corporate get reporter at bloomberg. Lets talk about these five deals in particular. What is it signaling that investors are getting worried about . This is the rescue part of the loan market. Even earlier this month, yields were going perfectly as planned, and when you see commitments, new deals will price within a day or so. That was largely happening until a couple days ago. These are deals where the fed is not been able to get priced as the terms have been very aggressive and investors have been pushing back for better pricing and the loans have fallen through. Romaine is this a seasonal issue or more structural . People see a shift in the market and economy . Molly it is where you see the man lacking, it is a structural problem. These are riskier loans that when youre looking at where we are in the Economic Cycle and thinking about rates being cut next month and that is obviously floatingrate securities, but on top of that we have a potentially worsening economy with weaker data coming in, that is not positive for when you are looking to take on risks in the asset class. We have been seeing record streak of outflows along 39 straight weeks of outflows from which has made a lot of investors uneasy. Caroline retail money is coming out. You have the ongoing buyout, collateralized loan obligations. Is there therefore demand for the less is the area of leveraged loans . This is the very bottom part going for it . Molly that is where you see a bit of trouble. They, too, have limits on how much risk they can take on and how low in the structure they can go. When you dont have your main support cap and you up and you are relying on the rest of the investor market that is concern for all of these other economic reasons, that is reason to see romaine the carolines point, some of the names we have seen here, not to say they are shaky, but these are companies where you have doubts about whether they were doing the leveraged loan, whatever they were doing. This is an apple going out and saying we will back up his loan with the iphone. Nwe software, lifetime molly life time fitness, yeah. A lot of it is private equity involvement. To carolines point, where we have seen the aggressive issuance. Romaine molly smith, thanks for being here. Coming up, la croix, is it still picking up sparkling water the king of sparking water . Competition cutting it out. This is