Adding to concerns about the slowdown in china. In chinal out put rose but fell short of estimates. Nvestors reacted chinese stocks had their worst day in three weeks. The shenzhen composite was down more than 6 . Germany is going to slow up the influx of refugees, at least for now. The government is reposing border controls. They a sign to europe that need more help. At this moment, germany is introducing temporary border checks again at the internal frontiers. The focus in the first instance will be at the border with austria. The aim of this measure is to limit the current influx to germany and come back to an ordered proceeding of the entry again. This is necessary for safety reasons. Brendan european officials meet in brussels on the refugee crisis to discuss the plan of introducing styling seekers to your europe. Fastmoving firefighters in california have killed one person and destroyed several homes and businesses. At least 81 homes were destroyed in a separate fire near sacramento. Surging toers is doubledigit leads over Hillary Clinton in both early voting states iowa and new hampshire. A new bc a new cbs poll shows him 10 points ahead of mrs. Clinton. He has a 22 percentage point edge in new hampshire. Joe biden is third in both states, even though the Vice President is not in the race. Tom it was most fun in new york city. Novak djokovic has wons second u. S. Title, beating Roger Federer last night. It was his 10th grand slam singles title, and it was a bit different with serena stepping out a few days too early. Lovean i just want i lose i just love watching djokovic play. He says are you cheering for me . Is that me . We do not say over, struggling. Just older. Was there a step there . Brendan i guess so. But all tennis stars are now younger than me. Tom i would mention Martina Hingis in the doubles doing most well after two decades. A data check on International Relations, the euro, 1. 1330. Nymex crude, 44. 58 per barrel. Fed target rate back to paul volcker. The skyhigh Interest Rates of the 80s, moderation. What is the last time we raised rates . 2004. Now we go to the discussion of this moment. Brendan there was a great piece that both of us read in the New York Times that said we can say that we can raise rates. Do we know how to do it . What they are doing, the Federal Reserve bank of new york is planning to raise Interest Rates when they are ready using this collar, between the rate that they pay on excess reserves and the reserve repo rate. Tom how many people alive in economics do not even remember the last time we raised rates . We have a most interesting show this morning. We will speak to the excitement of fashion week. One avoid or is will embroider Willem Buiter will join us. And in the United Kingdom, liberal politics, it is a throwback to writtens socialist 1930 to britains socialist 1930s. T is a standing indication corbynoff the mr. Was off the radar until this saturday. We go to Francine Lacqua. Francine a lot of people were win from an out right Jeremy Corbin, and i cannot really work out the two. He came out of nowhere. Bernie sanders was one of the first ones to congratulate him. I cannot tell you enough how so far Jeremy Corbin has been anything but a moderate. Important to say he is nowhere near government, but people almoste him as venezuelan style economics. He is antiamerican, dislikes nato. Is appointed somewhat shadow chancellor, even less moderates and him. It makes Jeremy Corbyn look like a moderate because this guy wants the bank to stop tom could he become Prime Minister . What is likelihood that he could replace mr. Cameron . I would say at this point very unlikely if not impossible, but he actually comes into power that he comes into power. This means a very fragmented labour party, and it could mean that conservatives do not have an opposition party. This is dangerous not for the election because it is five years away, but he does we have an Eu Referendum at our doorstep in the next 18 months. His country goes to vote. We do not know whether Jeremy Corbyn at this point is proeurope or not. We know he is lukewarm. We know that someone who is very close to him has refused his job because he does not think he is proeurope enough to try and tor the citizens of britain vote, to stay within the european union. I would say that is probably more dangerous and him actually coming into power. The u. S. Audiences waking up and looking at this now. Where is Jeremy Corbyn on the Bernie Sanders scale . Almost the would say same. This is someone that wants to nationalize the banks. E is against austerity the only thing i would quantify is that he has just been elected, so whether he tones down the rhetoric or not is something we have to see. He has also consorted with terrorist groups. One of the most surprising things are that would have repercussions for the United States, is that he blames the west for russias invasion of ukraine. This is hard left. They do not usually come into power yet alone let alone govern an important british system. , thank Francine Lacqua you. It does sound like he is somewhere to the left of Bernie Sanders. Talking about nationalizing banks, renationalizing the railroads. The way he sees Foreign Policy, it is hard to directly compare him to Bernie Sanders. Bernie sanders is an economic populist. Jeremy corby is Something Else. Tom our guest host this hour is robert burke. Lets take the broader view here, mr. Burke. We look at an antiestablishment moment with Jeremy Corbyn on bond street, at the same time there is a booming luxury business. In your experience, running is thef for years, polarity we have seen in the world right now some the you have seen before . Isert not as much as it right now, but there is certainly that luxury sector and london is kind of a mecca of there,that have moved that have bought the real estate, and buy luxury goods. Tom are Global Cities that you consult to new york, london the Global Cities you consult to a luxury, are they removed from their own countries . Robert i think that because people travel so much and have multiple homes, they are not necessarily wed just to their city. We have seen a slowdown in tourism in the u. S. , particularly in new york, due to russia and brazil. Tom your industry is living the global robert i think it has a global impact. It is not a regional or country impact. Brendan one of the hard things about understanding china is getting there good data is getting good data. When you look at the markets in london and new york, what can they tell us about china . Robert we are not seeing the kind of chinese tourism we saw a year ago or two years ago, and not the type of purchasing we saw. We saw a major increase over the last three years of the chinese getting visas and traveling and buying, and they wanted to buy a broad because they are traditionally suspicious of counterfeit goods and they did not want to buy those in china, which three people for a tailspin. We still think that they want to buy, but obviously tom the other thing you are so good at that idea of aspirational luxury. Within the financial crisis, the polarity we see with Jeremy Corbyn, others with luxury, is that aspirational link of fashion is still there, the link from the couture like name, to bergdorf, etc. Is that link still there within your industry . Is definitelynk there, maybe more tightly connected than before because you have a customer that may be trading down if they are not completely comfortable. H m,may be going to an unico, when they did not do that he year or two ago. It is all one stream. Tom robert burke is with us for the hour. Brendan coming up, brazil downgraded the real. What can be done to get that economy started . This is bloomberg surveillance, streaming under tablet, your phone, and bloomberg. Com. Good morning. Tom good morning, everyone. Bloomberg surveillance peter e. Right now, top headlines of Brendan Greeley. Brendan airbus is going after bowling in its own market. Is going after boeing in its own market. It is only the second such factory airbus has built outside europe. Has about 20 of the market in america for jets. It wants 50 . We would talk with Thomas Enders, the ceo of the group, and not 00 eastern time on Bloomberg Television. President obama is heading to iowa to talk about college cost at a backtoschool event in des moines. It comes after startling federal figures about student loans. Morgan half of College Vocational students fail to pay a single dollar on their loans after seven years. Student loan debt totals nearly 1. 25 trillion. Has been hired by google. Oped, theg in an countrys finance minister says too much of a concern should not be put on Monetary Policy. Oura porzecanski is correspondent. Do they actually have a governing majority that is capable of carrying out this policy in brazil . Katia she has lost a lot of her popularity. His is the situation with scandal with petrobras. Cut is a great reminder to politicians to get things done before things get out of hand. It is a great reminder that there are consequences today for not taking action. S pdan as with the downgrade, it was about looking at political dysfunction, not necessarily economic data. Katia fitch had a conference last week. They said the same thing, what political disintegration is doing to the economy. This plays a massive role in terms of getting reforms across. Tom can markets tell the politicians what to do . Real, it is not just the it is also the debt load across countries and companies, that borrowing costs are going to rise for a lot. Companies have increased their debt load, doubled it. So that load borrowing costs are going to rise, and the repercussions will be felt throughout the economy. Brendan lily throw in a number here. We are looking at 270 billion a number me throw in here. We are looking at 270 billion. Katia it will be felt throughout the economy here. Tom lets go to robert burke, robert Berg Associates and you have to deal with a brazilian economy. Weaker currency, better manufacturing will that happen for brazil . Robert yes, and we are already seeing it. We are looking at manufacturing being very advantageous, and exporting those goods to the u. S. , and countries where the goods are in demand. Tom brazil is brazil is not mexico. Brendan there how do you overcome the cost of brazil here go robert brazil is not necessarily like that. There are some very wellestablished companies. One of the copies we work with, they went public one of the companies we work with, he went public. They have 350 stores in brazil. They see the opportunity and they have the production capabilities, and they see the possibility of doing exports. Brendan does the movement in are other Companies Looking at manufacturing in brazil, or is it too soon to tell . Katia i think it is too soon to tell. We have to see how it plays out. Tom on your desk this week, what are you going to look at . Depreciation,real the 4. 25 d bond. To look at the fed. Tie janetre going to yellen to latin america . Katia it could really push the rally even briefly. Brendan is the central bank chief there the last adult left in brazil . Katia that is harsh. Unfortunately, he just had everything going against him and was brought in too late. Tom katia porzecanski, thank you. In the next hour, william bute or Willem Buiter. On the stunning announcement of the United Kingdom. Stay with us worldwide. Bloomberg surveillance. Tom it is a lovely, fragile bridge across the thames. You must believe it is a fragile bridge for the labour party as they try to move out from a starting from a stunning will moveemy corbyn them left of mr. Blair and mr. Brown. One of our themes this morning. Right on another european matter,. Brendan greeley. Brendan i spent a lot of time trying to get a handle on what is happening with your. I read a really nice piece in project syndicate from jan gross. Brendan one of the things we have seen in the last week, two weeks, the opening of a new front within europe. What used to be north and south is no eastwest is now usedwest. The european states are saying this is not our problem. This is poland, the czech republic, slovakia, hungary. They are saying this is not our fault. This is not our problem. Tom i want to ask a direct question. You see the stunning headlines late last evening, 5 00 p. M. , 7 00 p. M. , of germany shutting down the border with austria. For an amateur like me, are there elements there of the middle 1930s . Brendan i dont know if you would put it that way. These borders are important to the European Unions psychological understanding of itself. I lived there in the 1990s when all of these borders came down. Union, thaturopean was extraordinary. The Free Movement of people and goods across borders in europe is elemental to how it understand itself. Tom we are going to frame this with mr. Greeley right now. Admiral stavridis will be with us in the next hour, speaking about the migrants coming into the United States. Is that a big number . Brendan it is huge number. The white house has conceded 10,000, and we do not know how we are going to do it. I agree with everyone who says this is a challenge that europe has not seen since the second world war. You have german ministers meeting because the states within germany do not know how to divide up the 800,000. Tom what is the disparity between munich and hamburg . Brendan they were going to open up the temple half airport, which has been closed, in berlin. Tom Brendan Greeley with his experience of years living in europe. Coming up, we will switch gears. This is a great week in new york city, truly one of the best weeks in the year. Better than good. Also, fashion week. We will speak with naeem khan on silk. This is a great place to work. Not because they have yoga meetings and a juice bar. Because theyre getting comcast business internet. Comcast business offers convenient installation appointments that work around your schedule. And it takes done. About an hour. Get reliable internet thats up to five times faster than dsl from the phone company. Call 8005016000 to switch today. Perks are nice. But the best thing you can give your business is comcast business. Comcast business. Built for business. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Tom good morning, everyone. Bloomberg surveillance. This is sold out, you cannot attend, period. You will see it on Bloomberg Television, on bloomberg radio, 6 00 p. M. Surveillance prime time this wednesday. We have had a huge response. Michael mckee and myself with ray dalio. 6 00 p. M. This coming wednesday. Here is Brendan Greeley. Brendan european officials are trying to reach a deal with a surging flood of refugees. European union wants to impose binding quotas, redistributing refugees to ports in hungary, greece, and italy. Donald trump has lashed out against carly fiorina, this time going after the Business Record of his fellow republican president ial candidate. He spoke on face the nation. Trump hewlettpackard was a disaster, lucent was a disaster. These were two disastrous reigns and now she is running for president. Least 12in egypt, at people were killed when Security Forces mistakenly opened fire on a group of mexican tourists. The attack happened in egypts southwestern destert. A tourist convoy had wandered into a strict it area into a restricted area. Int chrysler was targeted negotiating a new labor contract. In sunday night football, the first of the weekend for this season, it was a thriller. Tony romo threw an 11 yard pass to Jason Whitman with just second second with just seven seconds left. What a great start to the season. I watched a little bit more of this than i usually do on sunday afternoon. Logo. That brendan there was also a wobble on that snap a bobble on that snap. Tom very good. There it is, a good start to the season. Much more as the months wind on. It is a special time in new york city. Away from economics and a most is a day for International Relations. What am i going to wear . There is absolutely nothing in the closet. Robert burke knows this. He is the chief executive officer of robert work associate of robert work associates. Naeem khans family is steeped in the history of silk and fashion. You can find his eveningwear. Wonderful to have you with us. Fashion week is inciting that is exciting. Your show is such a big splash a few days ago. I would say the entire industry is going to naeem khan. Is everybody coming to your area . Are, yes, of course they because we make such special, beautiful things. These are dresses that take hundreds of hours to make. It is something that you wea