According to those familiar with trujillo may take Telecom China state. Commercial join strikes in the continental United States. Production copies would be allowed to use the small unmanned aircraft. That is according to people with knowledge of the plans. 40 other u. S. Companys have asked for permission to fly drones. The u. S. And its arab allies are going after one source of the Islamic States finances. They bond Oil Refineries in Eastern Syria and estimated twomic states takes up to makes up to 2 million a day from oil. Iphone 6ok called the the best role ever. But many customers have been complaining the iphone 6 plus gets bent out of shape if you keep it in your pocket and an upgrade to the operating system blocked users from making phone calls. Those are to do big snafus, i would say. Paul, what do you make of all of this . It is great if you dont want to get phone calls, otherwise, it is kind of lousy. This is disappointing. If you think about the way historically soft or copies rollout these are called patches, minor updates. It, apple does it, everyone does it. The key is to test the thing fairly widely before you roll it out because youre always going to run into these unusual cases. It is one thing if a couple of people have a problem, but in this case, it was widespread. People not only could not make calls, they lost access to the touch id, the fingerprint scanner that lets you in a mini apps. This is fairly catastrophic for apple. What you need to do if you are apple . One, you need to rollout the first thing, they merely pulled back the 8. 1 released and it was no longer available. Two, rolled up quickly and a. 2 release because you have evil who cannot use their iphone devices. This is fairly awful. Three, change the way you actually test patches before you release them. It looks like this was maybe just tested on the apple campus where people are mostly using wifi and not using cell phones as calling devices. Realworld, you want scenarios. This is a result of apple secrecy holocene. They dont want people to see what theyre doing but the upshot is, they dont always test in the wider circumstances and you can have these terrible messes like yesterday. Between the ios fail and the iphone six plus, which ago must bend in half, whose heads should roll of apple . Well, id summit suggest to me, and apple guy, no pun the goo, he says designer in the posting jobs era phoned in the iphone 6 design because he was so busy working on the new watch project. The iphone 6 chosen off a lot of signs of having been assembled according to a bunch of specs as opposed to design and really thought about as clearly as may be might be the case. I think the guy you can point a finger to, probably is johnny on his. His head is never going to roll. You sort of the tsonga ali of design at apple. Svengali of design at apple. When you sit down, high likelihood of bending for many people. Can we talk about that for a moment . You could have had me on the Quality Control team in a would have been able to say, man, theres a problem. How could something so basic that seems like anybody could catch get missed . This goes back to apples testing policies. Apple is so sigrid of, their products are often tested in a very narrow circle of people before they actually see the light of day. The original iphones work change to boardroom tables. You could not even move it away from the boardroom table, let alone put it in your pocket to see how it would work. This is a problem, a longstanding problem dating back to 2007. So youre saying theres a chance no one even tested it, no one ever put it in the pocket. Itwell, maybe tim cook, but looks to me like he wears pretty tight hand pants. That is news breaking right there. Tim cook tight pants. How is this possible . Think about ikea. Youve been to the showrooms where they have the chores being pulled in and out by robot, testing it for these kinds of things durability, susceptibility to breakage, civil things that should occur to anyone. How is it possible . Apple doesnt need to prove to you that it is high quality. Ikea does. That is right. Apple has this halo that says it all just works. It is the secrecy policy. Near avery list list of people that are allowed to see products and test them in the real world. Uganda up with this, i dont know, genetically constrained group of people who are using them so they all use them for the same things on the same campus at apple in cupertino. As a result, you dont get a representative stats of what people use these things for the real world. No one is taking a toe wedding and sitting down for two hours listening to speeches and taking it out of the pocket and say, my goodness, my phone is bent. This speaks to how apple has to change. Apple is going to have to become more open on how it tests product, whether it is software or hardware. That is just contrary to their dna. There you go. But arent you amazed this happened . Couldnt believe it. I couldnt believe it yesterday when i saw this. It was a complete yes go. Microsoft gets beaten up regularly for releasing software that doesnt work, but they have not seen anything that is complete we shut down the computers. Thank you so much. Young, charismatic, and determined to undo decades of gridlock and corruption in italian politics. Im talking about italian Prime Minister matteo renzi. He is here in new york city for u. N. Week to campaign for reform and growth in his own country of italy and threat europe. I spoke to him yesterday and we talked about this reform or bust mission. Invest in theo only strategy possible, and vest in a radical revolution for my country. I obtain 41 last elections. Consensus tol the change my country. Man to spend a lot of force about the future. I began with a radical revolution of Global Markets and constitution of system, a radical revolution of Public Administration will change in investment in the future. I absolutely convinced, i use this 41 to change my country. And if im not able to change my country, im not able to continue with the political life. Radical revolution, no small iter in anywhere, let alone, italy. You can see much more of that interview with Prime Minister mathilde the childrens he enzi at 10 30 matteo r 10 30. The iranian rouhani is speaking. To the east and west of my country, extremists threaten our violence, resort to and shed blood. They, of course, do not speak a single language. They are not of a single skin color and not of a single nationality. They have come to the middle east from around the world. They do, however, have a single ideology violence and extremism. Y also have a single goal the destruction of civilization, giving rise to islam phobia and creating a Fertile Ground for further intervention of Foreign Forces in our region. Say thatregret to terrorism has become globalized from new york to muzzle mosul are damascus to baghdad, from the eastern to the westernmost parts of the world, from al qaeda to [indiscernible] extremist of the world have found each other and put out the. All extremists of the world unite. We united against the extremists . Issuessm is not original that only the nations of our region have to grapple with. Extremism is a global issue. Certain states have helped in creating it and are now failing to withstand it. Currently, our people are paying the price. Todays antiwesterners in is the offspring of hazardous colonialism. It is a timeless wisdom is a reaction to yesterdays racism. Certain intelligence agencies have put links the hands of madmen who now southern no one now staring the one. All of those who have played a role in founding mr. Must acknowledge her errors, which have extremism. They need to apologize not only to the past generations, but also to the next generation. To fight the underlying causes of terrorism, must it in a fight its roots and dry its source fountains. Discrimination, human nation, and in justice humiliation and injustice. It grows in the culture of violence to uproot extremism, we must spread justice and development and disallow the distortion of divine teachings to justify brutality and cruelty. The pain is made greater when these terrorists spill blood ernie president rouhani addressing the human General Assembly here in new york city. You can keep watching his address on our live video channel bloomberg. Com video. Peter cook is in d. C. I suppose no surprise he would cover some of the same ground the president omar ended yesterday, the subject of extremism and the fact opposes a challenge not just to the United States, but the entire world, including some of the states accused of sponsoring it. Thats right. Weve seen over the past couple of days, president obama and the iranian leader have both talked by thehe challenge posed Islamic State. Iran has an interest in taking on the Islamic State that is a concern of them, a concern Going Forward. There is no sense at this point that the united date and iran are coordinating efforts against Islamic State. I dont think we will get any suggestion from president rouhani that is about to happen. We are not heard any reference to the negotiations over the Nuclear Talks because these issues are related, in some respects, and there certainly a feeling that perhaps the iranians might help more with the Islamic State because it helped him in terms of leverage with the Nuclear Talks in washington. There were some parts of lawmakers in washington that those talks could end up with a deal, not in the u. S. Interest. Right now the feeling is they are roadblocks to a deal by the the end of november, which is the deadline. Peter, and a backdrop to this, the second day of corrugated airstrikes against targets in syria. That is our chief washington correspondent, peter cook. Return, stocks fine high. Investors expect lay fighting in the middle east and ukraine will be very good for business. Dear tutors farewell derek jeters farewell. Scalpers are looking nervously at the weather forecast. Feels like a pretty good time for Defense Companies here in america. Stocks are trading at record highs. Give some credit to escalating military conflicts around the world. Investors are counting on rising sales of missiles, drones, and plenty of other weapons. Government Senior Defense analyst is with us this morning. Kevin, is the market anticipating more demand than there really is for Missile Systems and the like because we havent started another iraqi war, these are airstrikes, not the same as what we saw in the early 2000s. I think the market is having a broader perception in just isis. When you take a look at u. S. Pivots pacific and recent threats and ukraine, it is not the specific action where you are flying in f 22 and dropping a bomb or shooting a tomahawk missile. It is all the other efforts going on in the world, the wider posture or the u. S. Has committed not just to countering global terrorism and isis, because that is only 10 but in dollars, 20 billion, 30 billion in any given year, but much broader threats or defense contractors play a key role in supporting u. S. Military. What does that mean for the sequester . Is it more likely to be revealed . Appealed . If they want addons, they can get addons in war funding. The air force tried to buy f3 pentagon wanted apache helicopters, and it wanted to use excess were funny from last year to do it. Congress said no. Congress may realize there are key capabilities they want to support. If they want to do that, it is not going to be with the sequester. Give sequester is pretty much the sequester is pretty much straightforward. Essentially put a floor on Defense BudgetsGoing Forward. While it says in the law congress will spend no more than about 500 billion a year in any given year on defense spending, it is highly unlikely for congress to spend less than that. Are we talking about spending being primarily by the u. S. Government or is some of the demand coming from overseas . I think we will have , aseased overseas demands theyve seen a much greater threat than they had anticipated. Under their nato commitment, theyre supposed to spend at least 2 of the gdp. They are spending considerably less than that. My colleague calculated if all countries did meet their 2 threshold, there would be at least 100 billion more defense spending next year. That is not going to happen over the immediate term. In the longterm, an external threat needs considerable amount of additional funding that is not when to be spent properly on people, but intelligence equipment, missile defense, on other systems the defense contractors provide. Exactly what specific defense contractors . Boeing is a feeling it, but lockheed and northrop are. Break it down. Lockheed martin, northrop grumman, a company like boeing may not feel it. Commercial aerospace is doing well. I think you have to take a look at the long run about the key capabilities. It is not about how big their business is now, but from the Defense Departments perspective, what technology can you bring me in the future . Sequestration has refocused the Defense Department into bringing where they can acquire the most advanced systems in the future so the u. S. Can keep its technological edge. Boeing may not be seeing it today, but does have key advanced capabilities. Dimon, desk grumman, general dynamics, lockheed martin. You think the u. S. Still has a technological edge . It doesnt many ways. In particular, its use of equipment to drive intelligence. It has a key edge in increment for special operations forces. Its abilities are unparalleled. Space capabilities are unparalleled. Talking about a global dominance, yes, that will be eroded over time as other countries gain capabilities, but the u. S. Has to look for specific margins where it wants to maintain its dominance. You look at penetrating bombers. U. S. Will develop a new bomber. I think the u. S. Has a key advantage here, which other countries are struggling to catch up with. Kevin, thank you. Talking about the growing demand for u. S. Defense contractors. When we return, overhauling italys economy. Italysd down with Prime Minister when we return. It is time to take you on the markets. U. S. Stocks are falling. The dow is near session lows, down nearly 1 . The dollar is at a fouryear high. Investors are betting improving Economic Data may mean the fed will raise rates sooner than expected. The dollar is at a fouryear high. Look at this market across the board. Red. That is not what investors like to see. No, the strengthening dollar is fascinating. It has huge implications for the economy. How competitive can exports be if the dollar continues to strengthen . Take a break. D to three days after announcing apple sold a record 10 million new iphones over the opening weekend, the company is pulling an update for the operating system after new software caused some people to lose cellular service. We will be back with more. Youre watching park market Market Makers on bloomberg. Im Erik Schatzker. And im stephanie rule. The eu wont give any wiggle room on the 3 definite target and he faces growing opposition to what he calls reform. Heres the Prime Minister looks at this immense challenge. We must absolutely change our country. Because italy is an incredible , and it is rich and incredible opportunities. But we need a future. And we dont think about the past. Reform is reason makes italy more efficient and smart. Italy beauty and open. Reform is the thing for us. And without reform in italy, its impossible for us to emerge a different europe. Italy is eform in possible. Necessity. Change the way for europe. Europe now is blocked. We need a vision for the next urope. For you to achieve what you want in italy, two things have to happen. You have to reform the country, the labor market, the constitution. The brock cri, civil brock cri and more. Bureaucracy and more and you need flexibility from your euro leaders. Can you have that flexibility so you dont have to meet such rigid targets for debt and deficit without first achieving reform in italy . When she decide make her in 2003, germanys leader cide to have a flexibility respecting the agreement of the past. 2003, germany decided dont respect the 3 average of arameters of european now respect to 3 . So our flexibility is not in the 3 in order. Our flexibility is in the mind. We need a different leadership with a vision open about the future of euro zone. In this moment the euro zone lost positions in the ranking. Why . Because we are stopped and blocked. We need a different idea of future for europe. But i believe only if i present myself an idea of revolution in italy. Without reform in italy, its impossible for me to be believable in europe. So you need moral authority first. You need to show that you can change italy before you can have the moral authority to change in europe . Because its important to my country not for me. And we must change italy to give the message its possible to change europe. The youth might embrace your message of change. But the unions so far have not. How do you over . Which that opposition . Or are you willing to compromise . Respect i respect all ideas and also the ideas of unions. The compromise is not a bad word. We can achieve a compromise, if necessary. In this case compromise is not the way. This case we must absolutely invest in a new labor market in italy. We have legislation very strong to defend workers in italy. But in the last six years, the number of unemployers are doubled. 12. 6 of unemployment. 43 of youth unemployment. Dramatic numbers. Still this is not the time of compromise. This is the time of courage. Mr. Prime minister, would it help you to call an election to n a new popular mandate to accomplish your goals . We must show italy the respect, the timeline of the next constitution will be in 2018 and i am to arrive that the goal. Because in italy there usually is the traditional approach. Ok. We have a problem. We go to election. No. Election are every five years and we must change elock to recall to give