Disney. U. S. G to expand in the over in hong kong, Police Used Tear Gas and pepper spray on demonstrators. Protesters angry over jenna but his plan for the hong kong 2017 leadership election all coming to a head now. Report that pimco for 10 billion in assets. More on the fallout of pimco, Erik Schatzkern with an interesting take on what bill grosss departure means. First, mary, tell us about the 10 million. That is relatively small compared to what they manage. That is true. The 10 billion is really a drop in the bucket. People are very nervous or there is a report that there is maybe 30 of their assets. A major threat for them. Meetings onse big friday. They deployed all of their investors trying to control of all out and saying, it has it is the same it is oh is been. This will be seamless. Everyone loves stan dan and thinks he is a great investor. It was learned bill gross was leaving. This all goes to your point about how difficult it is when firms become closely identified with those running it. I have been obsessed with bill grosss departure ever since we learned about it on friday. Over the weekend, as i was thinking about this, i thought it is fascinating to me not just for what it says about pimco but what it says about everything else. Bill gross was an Insurance Industry key person. So closely identified with pimco that it was almost unthinkable pimco could exist without bill gross and bill gross working for someone else. It wouldve almost been better if bill gross had been hit by a bus as opposed to going to work for another firm. David einhorn in greenlight capital, bill ackman, and berkowitz. Identifiedfirms are with those individuals and investors cannot possibly ifgine what it would mean those people were not there and which of yourint holdings are subject to key person risk . If that key person were to disappear, tragically, Something Else might happen. What would happen to your money . If theyre illiquid investments, how quickly could you get them out . They amassedw these assets in the first place, i really trust this guy and he seems really smart. But then it becomes a huge risk. Much. Nk you so i want to head to hong kong overseas were tens of thousands of prodemocracy protesters took demand freets to elections. The protest began on friday over chinas plan to control the 2017 leadership election. Andrew joins us now on the phone from hong kong. What is different this time around from hong kong . They are not going away. The idea was to occupy the Central Business and they have. They got near it, but now the are running the energy of the protest kind of overrun the original organizers who talked about a much more maybe 10,000 people occupying and not disrupting business. Ie scale of this thing now just got back from the protest. 30,000 in the main points. It spread to other parts of the city. Closed. The roads are protesters are incredibly wealthy and really nonconfrontational or damaging anything. Theyre not provoking the police. There are tens of thousands of april there and i hardly saw a Police Officer that was peaceful. The police learned and they really backed off today. It is surprising having lived in hong kong and having been born there to see that happening on the streets or even if they are relatively mild to what we have seen in other parts of the world. Onwe know that will carry into tomorrow . How does that look so far . It is likely to remain peaceful, but no one knows what the endgame is. This grew much more quickly and spontaneously than people had anticipated. They basically said they would protest on wednesday and thursday this week and when students kicked in moved in and kicked off it does the man keeps shifting. It is not likely beijing will turn around and say, sure, you can vote for whoever you want. I think the police and probably the government is looking for a way out now. They worry. This is a big week for hong kong shoppers. Live got to leave it there. Thank you for joining us. The new york governor met with american soldiers and military leaders in afghanistan over the weekend and renewed concerns about terrorism abroad and here in the u. S. President obama also addressed this growing threat from the Islamic State in interview on 60 minutes. Hybrid with territorial ambitions. Of theategy and tactics army. This is america leading the International Community to suret the country to make they are able to take care of their business. Great see you this morning. The president also noted we severely underestimated the power of the Islamic State and underestimated the sure they are able to take care of their business. Great see you this morning. The president also noted we severely underestimated the power of the Islamic State and underestimated the ability and skills of the iraqi army. How do you underestimate that . Excellent question. The group but out annual reports surein 2013, with great specif. U. S. E second Major Corporation not only about their purpose, but with a compost. Theyre very proud of what they accomplished. Been advertising for two years, and i am very surprised we somehow missed it. What do we do now . Are we doing the right and . The policy is reasonable given the circumstances. Not we want to get involved with any sort of major concentration were a u. S. Force. Bit thisaught a little week at the wheel. Point fingers at this moment, but they were out there broadcasting what they were doing. The Intelligence Community take the fall for it. It might have been the focus on andl qaeda group in syria isis actually reconstituting itself in syria. 2008, the cia declared them to be out of business and defunct. They did reconstitute themselves and apparently did it in syria and thatnd is sort of a reason was not on our radar. Comment on another form. What was missing in our training of iraq troops there . Why were they not prepared enough to deflect islam stay in their fun . Sometimes, we missed the point that there is a sunni shia schism. Many of the troops were sunni. And they decided not to fight against isis. I do not think it is just training. That has been seen as the liberator of sunni. It is a sunni force. He favoredat malik those generals. The ongoing problems between sunni and shia. Governor cuomo visited afghanistan and it was his second trip since he had been in office. He also rode the subway to tell of thenot to be afraid subway system or that there were any further threats to our city. Many of the troops were sunni. Other than a symbolic gesture, should we be worried that it could heat up in a heightened way here . Society and ween have had plots against the subway system. Since september 11. We have to be concerned and be on guard. New york city is doing more than any city in the world to protect. Every day, at least 1000 Police Officers to protect the city from terrorism. People stationed overseas. Everything that could reasonably be done is being done. There are no guarantees. The Islamic State represents a game changer in u. S. Securities. Are these threats any different . Classic couple of things have happened cap happened. A couple of things have happened. To the extent this is seen to be an attack the u. S. , or the group bombing, you may get some sort of sin attic reaction. That is being called for all over the internet by jihad egroups. It pays for us to be on guard and alert, but we are doing everything we reasonably can thank you for joining us. President of Risk Management services. Coming up, another cold war. Russias foreign minister tough to the chilling relation between his country and the u. S. That is coming up next. A joint discovery with exxon mobil and offshore arctic field. The area and the partnership had been the center of controversy due to sanctions in russia. An exclusive interview with bloomberg, he will continue working no matter what. Pressure causes foreign minister asked him nato went into a highly confrontational posture, stopped all conversation with russia, if this genetic creatednato, as it was to counter the enemy, so very much alive. On both sides . Rd do you feel like russia is in contest with the u. S. We do not want any competition except maybe sports. Olympics, football. Easily you are in competition . Probably this is the logic of our western partners. They believe russia is a threat and they forget russia has always been a part of europe. Russia contributed to your culturally. Remember, a couple of times in history, russia saved europe particularly in world war ii. And the napoleon wars. Time, europe experienced easilys which were not resolved. Ist we believe is necessary to look at this situation to the point released together and after the announcement that the cold war is over, there was a deal in the Russian Council created afterwards. Deserve was that all individual security and that no shall strengthen its security at the expense. The principle which was absolutely ignored and violated. Olivia sterns joins us now with more from that exclusive interview aired what did he have to say about ukraine and their relations . A i asked them if they are party to the conflict and this is something they repeatedly denied it i asked if russia is repairing new terms for agreements. He denied that. Heres what was said when i asked him about clear terms. There have clearly been bodies of russian soldiers going back to russia. When you see that happening, how can you deny that russia is party to the conflict . There are many volunteers, many russians. There was one yesterday on a tv show that was interviewed. There are some russian citizens fighting on the side of not the ainian army, but that is pretty incredible. That is the line, that these are volunteer list volunteers, these are not russian battalions in the country. If you talk to analysts, and i was just speaking to richard on a counsel for foreigner it foreign relations, no one believes that this guy believes this. He is just towing the line, doing what he has to do for. Thank you so much for bringing that exclusive interview for us. We will have much more from her interview throughout the program and today right here on bloomberg television. We mention we also have an exclusive interview with the ceo. Ryan will be joining us a little more on histh international exclusive. Coming up, a block buster trial begins. He will be on the witness stand. In ireland. S deal european regulators call it an unfair advantage. You are watching in the loop live. Good morning. Here is a look at our top headlines. That you stepping up in apple. Accused of profiting tax deals in ireland. Itulators want to see could be forced to repay millions of euros. Hank greenberg and his company Star International are taking the u. S. To trial today. Off aig shareholders in 2008. The u. S. Argues that aig agreed to the bailout. Targets inthe latest italy. The fashion executive who a married couple it is investigating. It was said neither the company nor any of its subsidiaries is involved in the matter. It is 26 minutes past the hour. Bloomberg television is on the markets. Scarlet fu has much more and we are awaiting an economic numbers. Yes. Inwill focus on futures focus. Copper futures on a steady decline down 10 year to date. Joining me on what is pushing down the price of metal and how you can make money off of it is Senior Vice President there is never just one reason for why a commodity moves lower but i have got to ask how much a slowdown in chinas economy is a his response will for a weakness . Thats a great deal. If you look at the industrial metal and copper, is linked to economies based on it is in commercial and residential industrialwell as use. It ties in with economic growth. Weve seen a pullback in global growth, specifically in china, europe, and whatnot and whatnot. We have seen roughly a 9. 5 decline. Around three dollars here, i think copper will be a shortterm buy. I look for the market to hold steady and tread water as the Chinese Government continues to add stimulus and boost that as their price higher gdp look to improve. The moves we have seen here are in full by us until bank. Central banks have controlled volatility, the fluctuation of Price Movement in an underlying monti. I think that has come to the point where maybe they will edit five fly free and maybe not but i think Central Banks will remain with their hands in the cookie jar and that will keep metal prices steady. Copper this year they have reached the bottom for shortterm. Factoring in copper being weaker right now. As the dollar continues to you to move north, how much do you see that impact in copper, particularly as we cover with this drop this year . I see the stronger dollar being linked to the fed. Where we sawy see the spike higher over the summer. It has in a one direction trade and that is to thexpected especially if fed said the economy will be ok and rate hikes could be on the radar next year. I think the correlation we have seen between copper prices and the dollar is right, but could be coming to an end. The psychological lever level is that line in the sand. If we will see any support in copper prices, it first comes there and if we just below, if we see a lowes and level below that level, maybe we start to see more selling. Underlying Asset Managers are all short hopper here. Im looking were a bit of a buyback and them moves are higher about a year ago. Coppers could hold steady despite what we see strengthening the dollars moving forward very specifically, how would you be treating copper right now than . Youre right, that line in the sand three dollars, anywhere there, you are well to put your toe in the water. I am not really a longterm goal here. If we get a little bit of a higher, and if you recall, we did get a spike higher adding stimulus which would help copper growth. It is a volatile metal, as opposed to when we look at gold and silver. I think we will probably see a pie here if we settle below to 95, we could see a corrective move even further lower. If we do see a dip to load to 95. I see an exit if we get back to 315, september and made area. Copper prices could tread water for the shortterm. Ask all right. Thank you for giving us your perspective. Us from rj obrien. Back to you. L get ok, scarlet. Yes, we have breaking news out on personal income and spending here it we want to know where the tumor is ahead of the holidays and. Personals ending is up about half a percent. That is a little bit better than expected. Also, revision in the prior month also higher there it mike mckee has much more on these numbers. These are interesting numbers. We have been wanting to see what happened with personal spending because of the confusion about how strong backtoschool was and how we are going to be set up for the holiday season. It looks really good. Personal income comes in about as expected. A little bit better, 3 10 of 1 . Up from a prior month. Wages and salaries doubled in august july, up to tenths of 1 in august. Certainly, good news there as if all begins. Personal spending comes in much better than expected. In july but up half a percent in july from august. That is good news except for the ,act that looking what we spent good spending was up 4 10 up half of 1 . Much of the money went in services spending. We do not have an exact rate inn of how that plays out terms of back to school and the good buying we want to see Going Forward in the holidays is in. You have to say overall this is a news. The savings rate its to about 5. 1 , but that is still elevated. We are not spending all this money because were taking out loans are using our. At this point, it looks like were spending higher salaries. Mike, thank you so much. Our economics editor on those numbers. We will get a read on the state of retail and hiring from none other than bill simon, the former ceo of walmart u. S. He is in the loop. Walmart is the largest private employer in the world. That is coming up. We just had personal income and spending numbers out come about what people in the markets are watching his jobs. The governments allimportant monthly jobs report comes out on friday. All week long ahead of those numbers, we will focus on america passes employment picture. Joining me now is someone who has been extremely vocal in the fight to bring more jobs that to the u. S. He has said we can grow and hire and use the power of what we buy and sell to make a difference. We could decide to act and lead on we will not need to wait the job support each month. Joining me, he certainly wrote the jobs are court in his former largestwalmart, the private employer in the world. Great to have you this morning. Great to be here. The continuing problem of force is patently get more jobs created. Companies are at liberty to write the chapter work, but so far, it has been pretty average here. That is right. We are in a transformational stage in our economy right now. The economic seven never been better for a resurgence in American Manufacturing third when the jobs report comes out of that a, we have got to look deeper. We cannot subsist as a country, solely. Vice economy we have to make things and makes jobs for Manufacturing Business there that is where we are. The economics are right. Right now, Manufacturing Products closest to the point of consumption, asian manufacturing for asian consumption, that is the most efficient way to go. Slowlyre seeing is Building Momentum in the marketplace, particularly in the u. S. You announced a Big Initiative where walmart was going to invest 200 and 2 billion in a 10 years and invest them in usmade products. Have other companies followed your lead . They do. When the plant gets ecstatic in the u. S. , they manufacture for every retailer in every consumer in the country. What happened is overtime, as the plants migrated to asia, all the retailers buy from the same in asia. They will be available and open to every retailer in the country. By taking the initiative, walmart is able to move the market. What will be the biggest trigger to the jobs market . What will suddenly accelerate and of escape velocity in the jobs market . It is a combination of economic factors, Lower Energy Costs in the u. S. Than in other parts of t