Are getting more data with the jobs report friday. This is the beginning of a lot of good data. 10 00, pending home sales. Home stuff has been squishy, back and forth the past few months. You get a good month, a bad month. Pending home sales at 10 00. Obama is welcoming indias Prime Minister and 8 30. What is curious is he was central he was at central park this weekend for that big concert and moved a lot of people. He is like a rockstar. Tom, you were way ahead when he got elected. You saids is this matters. That is where i got the idea from. Hostingesident obama is Prime Minister modi at the white house, we have mr. Prudent hosting the mr. Putin hosting netanyahu atnjamin the u. N. , addressing the u. N. Today. 1 launches in china. Is that a big deal . It is because it is the first time they are allowing it to be sold legally great now you are allowed to do it. Standing out in front of the xbox store. Lets do a data check. Equities, bonds, currencies, commodities. Eight. At negative currencies, the euro is weaker, the ruble is weaker, the yen is weaker. 93. 21 onons at american crude. , 14. 85. Dean kern it will join us on volatility. Huge deal is this continued weakness in russian ruble. Spoke with the foreign minister of russia. We will talk about that on bloomberg surveillance. This morning. This is a nonchart. Versus Hong Kongdollar the yuan. The hong kong dollar is penned is pegged as a huge currency. Add to the fact that the hong kong dollar had been weakening in the months or the weeks ahead of the protests over the weekend. You had a setup where the macro fundamentals were not so great. Here is that longterm renminbi. Some of the dynamics of economic tensions within hong kong. And you circle that one area. That was 2005. 2005, when the u. N. Began to think sending, when the Chinese Government loosened some controls. We have scoured the newspapers this morning. Here is our front page with scarlet. Inprodemocracy protests hong kong turned violent over the weekend. Thousands of protesters were fighting with police. Ins is a live shot of folks not central but outside Central Businesses. This is 6 00 p. M. Half a mile, one mile . Not even that far away. Fighting withe police, police fired tear gas and tear gas into the crowd. Friday tots began control the leadership election. Just in the afternoon, the chief executive canceled the annual fireworks display on october 1, founding the peoples republic of china. I want to do a massive showstopping shout out to scarlet fu, who was months ahead on these protests. Way out in front. We saw the tension start to rise. I was like, yeah, yeah. You dont know what you are talking about. Lets go live to hong kong stocks dropping 2 overnight, 6. 5 in the past weeks. They speak for themselves. What changed in the past 24 hours . It was extraordinary. I was here 24 hours ago. It remains peaceful, but the number of people are nothing like we are seeing at the moment. Of hong kong,al the chief executive, has stepped down. Yesterday. W clashes a bit of a low this morning. A bit of a lull this morning. Rish . He dropped out there. Understandable. The images speak for themselves there. To be at some point a military response . As yet we have not seen any confirmed reports of that. I wonder, too, how much the up of the protests have you are back on the line with us. Most of the protesters are said to be in their 20s. Has it extended beyond that, to the Business Community . Generally a studentled demonstration taking place. The kong was witness to 1960s when they were procommunist during the cultural revolution. But this is on the edges of admiralty, gaining access to the business of central has been closed for the time being. P. M. Arrived around 1 00 as soon as that happened, crowds started to flood in. Miles long. Two who knows how many people are taking place in this right now . Are taking part in this right now . 41 people were injured as of early, early this morning. That is what we have at the moment. The occupye is central with love and peace contest. 2 ,et wise, down around closed at 1. 9 at the moment a couple of hours ago. That is what we have really. It is happening on the other side of the harbor, and the causeway bay as well. This is extending down to the. Olicy that came out rishaad, thank you, we are starting to lose you. Rishaad salamat joining us. We are starting to lose his signal. We will continue to monitor those elements. Our second frontpage story, president obama is saying u. S. Intelligence underestimated gains by the Islamic State in syria. He talked about it last night on 60 minutes. Isil represents a hybrid is not just a terrorist a terrorist network, but one with territorial ambitions. This is not america against isil. This is america leading the International Community to assist a country with whom we have an International Security partnership with to ensure they can take care of their business. Should mention john boehner said the u. S. Will have no choice but to put American Forces on the ground if the allies cannot get the job done. There is a frontpage this anding syriaukraine hong kong. Businesssts in the district of hong kong are an example of another world order. You were in hong kong two weeks ago, and you spoke to the hong kong leadership. Was there any perception that they would see protests like this . Left, i think they really the impression to me that a very tough response was likely from the government. They were going to block off major streets. This is new news. The impact on corporate earnings is something i will look at carefully to see how far this goes. It all have our beliefs, our myths, are stereotypes with hong kong. Scarlet, you worked there for years with bloomberg news. With the companies in the business and the finance of hong kong, how has it changed in five years . It is much more chinese influenced, much more mainland influenced. For them thatm they have to work out over time. We are seeing ing honghey shanghai kong . It is possible, we will not know for a while. We also want to welcome in lisa. A lot of people say that this was accelerated because of bill gross decision to leave pimco. Is there credence in that . There is credence, but his announcement to leave pimco definitely move the market friday. For ft for janice janus. This is a person who makes more money than any under individual. Was it clear that blackrock was going to hire mr. Gross echo i have no idea. I am on the equities side. The bond market is a place where managing money can have a big influence, and it is not as easy to trade in the bond market and the stock market. You cannot get in and out in size without other people noticing. And pimco and Pimcos Total Return Fund made it difficult for bill gross to move. I want to get the company news in the meantime. We will start with softbank. In talks to dry to buy dreamworks animation. The film studio, turning it into a mini walt disney. Softbank Senior Executives have not formerly discussed the potential acquisition. Air france pilots ending their twoweek strike. They plan a full schedule as the as they try pilots began striking on september 15. The walkout has cost the airline about 25 million per day. Apple accused of prospering from a legal tax deals in ireland. The Financial Times says the European Commission has found a tech company benefited from illicit state aid. Shocking. Me . You kidding know, we are not. Our twitter question of the day this is a serious one. What is the most underestimated global conflict . Bsurveillance. You are watching bloomberg surveillance. Good morning, everyone. Coming up at 11 00 a. M. , Market Makers. Nigel travis. He is my favorite ceo on the planet. Many times did you read that . I have a hat trick limit. A. M. Avis at 11 00 nigel travis at 11 00 a. M. On his transnational project. This is bloomberg surveillance. Good morning, everyone. Lets talk about the bond market. Pimcos tom brack top brass is reassuring investors that it is business as usual after the surprise exit of cofounder and chief Investment Officer bill gross. Lisa abramowicz is with us for this hour. Powerfulne man get so in this market . Dismantled a more than any, is emblematic of how much the on manet house grown this more than any is emblematic of how much the bond market has grown. Well in anone so intrastate cycle where interstates were coming down, and now you , i think to both of you, it speaks of the end of the total return era. We have had a time of coupon plus capital gains, and mr. Gross and others all of a sudden had to fight for the coupon. Do i have that right, lisa . Absolutely. Of bond returns has been negative. The only thing keeping bond returns a float for the past few months is coupon payments. This is a very tough market for bonds Fund Managers to navigate. It makes it more difficult when you are managing a 22 billion fund that has to maneuver quickly. They cannot go around making betting on one particular credit going to helpt is their performance. You have to move in size. It is difficult to move the needle. That being the case, bill Gros Total Return Fund will no longer be under his management and he will be moving over to janus. What does that say about the size of these bond funds . He was having so much difficulty generating returns with that massive fund. A lot of firms have close bond funds over the past few years. Fund managersond have said, listen, when bond funds get too big, you become the market. If you want to make a trade, every trader knows about the trade you are going to make. Believe hart, do you the size is problematic for fixed income funds . I think so. There is a direct tradeoff between performance and size. Woodys, in neck even more so in equities. Now that he is managing the unconstrained bond fund, what can he do at janus that he could not do at pimco . First of all, there will be less money, which will be a benefit to him. It is a point of contention the headline in the wall street journal, billions fly out the door. Pimco, 10 billion dollars is a drop in the bucket. Will this disrupt will this be a disruption . Yield 10year, treasury yes,mexican bonds definitely move the needle. Good to have Lisa Abramowicz with us. We will have two perspectives on washington. Richard haass and also easy field manual and also ezekiel manual. This is bloomberg surveillance. Good morning, everyone. Bloomberg surveillance. Im tom keene. Overme, scarlet getting George Clooney. He is no longer available. It is worse than derek jeter. This comes to us from the india andter of the u. S. Have a fundamental stake in each others success. I am confident that the destiny in a are in our two nations, the marker see is the greatest source of renewable and offers the best opportunity for the human soul to flourish. Front on theut capital. Nigel hart is with us. I think most of our viewers are unaware of the mega bull market that india has been. Can it continue . It can in the long run. Elected one of the most capitalistic Prime Ministers globally. A complete repudiation of gandhi. With a that many people poor infrastructure, there is a huge scope for investment now. He should be welcomed with two hands and say lets do business. There is mr. Modi speaking at Madison Square garden. A real rock star in new york right now. Nigel, here is a question. I understand the opportunity, but much of interesting in india is still a closed entity. There are walls erected around foreign capital not only going in, but being able to come out, the way china was 10 years ago. How do you navigate that . You have to Pick Companies well, focus on valuation and price and picture industries well. Some of the industries we look at our in the motor space, 60 sharing market commercial vehicles. With the political change, we could see a huge Growth Opportunity in the next three to five years. How much momentum is there leading up to his election and Going Forward there is a lot of inequality just generally. Is there potential . There is a lot of potential. The market has moved up very quickly. They will want to seek opportunity carefully. Tread carefully in india. That is the theme right now. Our twitter question of the day is, what is the most underestimated global conflict . Is it the hong kong protest . Tweet us bsurveillance. Good morning, everyone. Bloomberg surveillance. Im tom keene. Lets get to top headlines with adam johnson. More travel misery for chicago. Another 550 flights were canceled yesterday at the citys two international airports. Eggs are expected to improve today. The faa has said that it has replaced a Computer Center at a nearby hub. And a Third Straight ryder cup win for europe, defeating the americans by the widest margin since 2008. Europe has now one bank six of the last seven that has now won six of the last seven. The latest film starring Denzel Washington tops the box office. It is called the equalizer, a sony films release. Runner fell to second place. Those are top headlines. I have not heard of any of those. I was going to say, i have not heard any of them. It is not summertime, i dont go to movies. It is the golden age of watching everything you want on your iphone. Futures are soggy this morning. 17,113. Losing it the ruble is front and center. Inontinued uncertainty Eastern Ukraine, reports of soldiers killed in the ukraine. A few more overnight. The quiet is over, speaking of ukraine. After a stunning decline in volatility, september has brought a pulse to the street. The street loves agitation. That is what incumbent bonuses are made of, but with the fed in zero bond mode, can any of the observed volatility continued . Dean joins us right now. Back into 20. Is the new volatility sustainable . It is low and for some good reasons despite what we see in the rest of the world. As you point to the fed, other Central Banks dominate risk to to unhealthy degree an unhealthy degree at this point. There is plenty of risks in the world to worry about. What i noticed over thursday and friday was the continued disincentive asian disincentive over commodities. What we saw in late august and Early September was some movement underneath the surface that you might not see if you are an equity investor. X was up a tiny bit. The votesaw in europe, around scotlands secession, a lot there showing up in the space of currency volatility as well. Nigel, is volatility good for you . It leads to opportunity, valuation mismatch. Dollar will have an impact on u. S. Corporate earnings with the multinationals. I am glad you mentioned corporate earnings because that is the one place we do not have volatility. Every time markets are down 150 points, the next day they come right back. Corporate usa does a great meetinganaging, investor expectations. Are still and large buying bonds, and while they stop, they plan to keep rates low for an extended period of time after that. Even with the volatility we are experiencing, really low, it seems all around there is not that much volatility in response to quite significant developments. What could really cause volatility to really dramatically increased at this point . One of our concerns is that the fed has these economic policies trying to reinflate the economy, but they are so targeted toward financial assets. The leverage in the system could continue to build up. Lisa, in your, world, on the highyield market, ces down, yields up three prices down, yields up. High yields have soft patches for a while. I am not willing to write them off yet because there is so much money out there. At some point there will be a floor. A lot of people have said there is a lot of price a lack of price discovery in fixed income. Nigel, is that the case in equities . Me, Global Opportunities means i can go anywhere in the world, so i just focus on where i find could you go to russia . I do not care to right now. It is too volatile and uncertain. A stalematea as longterm. Does that mean europe gets caught up in that as well . It has. Therein lies the opportunity, whereas the u. S. , the gap between valuations in the u. S. And in europe is quite wide. We were talking about highyield, and i did not realize until i pulled up the highyield chart. It is frightening. Came back up,we and we have just cratered. Is it ill gross fault . No, this is concerns that if ratesights if the hikes sooner, if the winds of dollars are being pulled out of neutral funds, there is skittishness there. What is the difference with 15 and if it is five points higher . I think there is pretty good action between these cross asset class movements. Highyield going down, thes vix going up highyield is an investor highyield is an area where investors go too long. Folks have accumulated positions for a long putter of time, and the liquidity that undermines the market may be challenged for people to get out. We like volatility. We thank you for making it. Curnutt. Not dean notpples iphone 6 officially available in china, but that has not stopped consumers from getting their fix. Supportedth sunglasses and wedding rings excuse me exhalation point just reading up on the wedding. Good morning, everyone. It is bloomberg surveillance. I was distracted by george. In washington, they greet the Prime Minister of india today. What an important meeting. And the state dinner is tonight. That is a beautiful shot. It is time for our single best chart. This is not on george . It is not. We are going to go around the world. We know the Chinese Government has not yet approved the sale of the iphone 6 on the mainland, but dealers in hong kong and freelancers around the world are expecting a windfall from selling smuggled iphone 6s in china. They did get it initially with the 16 gigabit iphone 6 selling for the equivalent of 2900. You can see that it has come down because there has been an influx of phones for resale. By day six, the last data point,. He price had fallen why access the chinese yuan .