Who is in jordan, says the navy is investigating. Secretary mattis my thoughts and prayers are with the sailors and the families of the uss john mccain. We obviously have an investigation underway, and that will determine what happened. The uss mccain has docked in singapore with significant damage. It is the second fatal collision involving a u. S. Warship in the Pacific Region in two months. Army surgeon Bowe Bergdahl is choosing to be tried by a judge, chargeslitary jury, on he endangered his comrades by walking off a post in afghanistan. He faces charges at a trial scheduled for late october. Bergdahl walked off his post in afghanistan in 2009, and was subsequently held by the taliban and its allies for five years. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Lisa i am lisa aronowitz. Julie i am julie hyman. Joe we are happen hour from the close of trading. Lisa the dollar slightly lower ahead of jackson hole speeches. Joe what did you miss . Julie preventing a government shutdown. Mnuchin and mcconnell expect quick action on the debt ceiling. Chance we there is no will not raise the debt ceiling. No chance. America is not going to default. We will get the job done. We are working with the secretary of the treasury. Lisa gary cohn emerging as the front runner to run the federal reserve. Former direction would a wall street banker take on Monetary Policy . Julie and the race to dominate outer space. There are a lot of billionaires sponsoring investments into the final frontier. President trump seeks to turn over a new page in his turbulent administration. But will the chaos die down now that steve bannon has left the white house . Trump faces a new test tonight as he addresses the country about a potential escalation of the war in afghanistan. Here with what is headed for the rest of trumps agenda is our National Political reporter in washington. Tonight, President Trump will be speaking at 9 00 p. M. What are we expecting to hear from him . Unclear,e details are but he is going to announce a strategy about the war in afghanistan, one that has encompassed the last two president s, his predecessors. It is obviously a region that has been extremely difficult for anybody to win. We will hear from the president on his strategy. He ran a campaign as someone who was antiintervention, who was not in favor of spending money and resources and blood and treasure abroad. He wanted to rebuild the nation. That we have seen some of his some of his closest advisers do want to escalate their, at least on the military front. We will see what he says. It will be important to hear from him directly on his strategy. So far, he has not had one. Julie why is the president choosing to focus on afghanistan and spend this Political Capital at this point in time . There are so many other things on the agenda. You have the koreas, obviously. You have tax reform. There are a lot of other priorities. Why focus on afghanistan . Question. Is a great this speech upstaged another speech that House Speaker paul ryan was scheduled to make at exactly the same time to a live cnn town hall, promoting a legislative agenda including tax reform, which the treasury secretary said was the president s highest priority. He has not behaved like it is. As for timing, this has been pending a long time. The president has yet to make clear what his vision for afghanistan is. He had to at some point. He picked now. It is not clear why. You toam going to ask put on your strategist hat for a second. What is it about afghanistan, so many years on, that makes it difficult for trump to do action that matches up to his noninterventionist rhetoric . He does notr one, want to admit defeat. If he pulls out, he is going to be the president on whose watch the United States effectively conceded that it could not win this war. That is a region that does not consider itself a nation. The borders were drawn the borders were drawn in a certain way. But people there are mostly loyal to their tribes, to their villages. From the best of reading the literature, people do not unders dan do not want a central government. That by itself makes it extremely difficult to establish order in the place. They do not look kindly on foreigners who try to intervene and impose their vision of order. It is just a conundrum in many different ways. Lisa thank you. Sahil sahil kapoor is politicals national reporter. A speech alongside Mitch Mcconnell about u. S. Economic policy. Over the weekend, mnuchin emerged as one of the staunchest defendants of the president as he rejected pleas from classmates at yale to resign from the administration. What kind of stability does mnuchin lend to the policy agenda . We ask our treasury reporter, with us from louisville, kentucky, where mnuchin spoke earlier today. He gave a number of different comments on the economy. Let us start with that letter over the weekend. The fact that he is staying with the administration he argued that he still has confidence in President Trump, that he thinks his presence is important in the administration does that sort of lend some gravitas to the Economic Policy question . Saleha you know what . It does. From developing dissolving Business Councils to departures of the likes of gary cohn and steve bannon, that is riling financial markets. Investors are trying to your out how much this administration can actually accomplished. In that light, the treasury secretary having to reaffirm that he is staying that is something no treasury secretary in recent history has had to do. He is proving to be one of the staunchest defenders of this president. That gives credibility to this economic agenda. They have a very busy september ahead. The debt ceiling needs to be raised before the end of september. This is the month they really need to start putting out details on that tax reform plan. Otherwise, they will suffer their chances of getting it done this year. The debts talk about ceiling. Before they can get to tax reform or any other aspect of the economic agenda, that has to be taken care of. Senate leader Mitch Mcconnell saying there was zero chance they would not hike the debt ceiling, but what does that mean . He is the head of the senate. The senate has problems. They would have said the same thing about Health Care Reform at one point. How is it actually looking in terms of getting the republicans together to vote for a clean debt ceiling increase . Saleha this is Something Senate democrats are on the same side with senator Mitch Mcconnell on. Someone wants to make sure that markets are not spooked by a delay, that congress handles the debt ceiling increase. It needs to reach a resolution. The u. S. Has already spent the money. It needs to pay those debts and make sure it abides by the high credit standard that the u. S. Has, as the World Reserve currency. The money has been spent. It needs to be paid. Mcconnell saying that, it does not go a long way that mnuchin and mcconnell are together in the Senate Majority leaders home state, showing ties between the administration and senate shell. Hers. That is interesting after trump came on twitter several days in a row, a sailing senator Mitch Mcconnell. Assailing senator Mitch Mcconnell. Lisa mnuchin has donated party in thee past. How much traction does he have in passing a debt ceiling plan . Does this edify the feeling them that democrats have taken over his administration . Saleha it is hard to say. Mnuchin did sign on as a supporter of trump in the early days, before he had rnc backing and was the official republican candidate. At the same time, he has the institutional support. He has the head of the treasury department. With that comes a lot of responsibility, a lot of power. It has been touch and go for mnuchin. Earlier this summer, in may and june, we saw that Mick Mulvaney and gary cohn were contradicting mnuchin. It was a little unclear who was in charge. Right now, we are seeing mnuchin firmly in charge. You so much. Bloombergs treasury reporter joining us on the phone from louisville, kentucky, where the treasury tech treasury secretary spoke earlier today. Coming up tonight, live coverage of President Trumps president ial address. Look for that at 9 00 p. M. In new york, 2 00 a. M. In london. Joe you are looking at a tweet from Goldman Sachs ceo lloyd blankfein. He says, which the moon was not the only thing casting a shadow across the country. We got through one. We will get to the other. What is he talking about . He does not say. Maybe he is talking about the fed rate hike. We dont know. You basically stunned us into speechlessness. It is pretty clear. It is time to get you caught up on the Bloomberg Business flash, a look at some of the biggest is the stories in the news. Activist investor bill ackman is calling adp insular after the his threejected nominees, including himself, for the board of directors. Ackman said he could double the stock price by 2021. Adp said the move would not improve the board, and will nominate its 10 existing directors for reelection later this year. U. S. Homes are using more russian lumber, following tariffs from canada. The u. S. Set duties on canadian imports of up to 24 in april, and an additional 7. 7 in june. This has increased materials costs for home builders. Russian imports are 42 higher so for this year. Spotifys plans to list on the u. S. Stock exchange are under scrutiny. Met with Company Executives last month and asked for further details. Spotify aims at bypassing the traditional share sale, which will eliminate underwriting these and prevent dilution of investor holdings. That is your Bloomberg Business flash. Julie it is time for our stock of the hour. I think i have recovered from joes facetiousness. Lisa was that the seizures . Julie lululemon was that facetious . Lululemon has been tumbling with other athleisure brands. Chandra, what is the analyst case . Emma bank of america analyst upping his rate hikings from underperform to buy. He set a new price target. He says lululemon has proved to be innovative. They have introduced a bunch of new products recently a new sports bra, new technical fabrics. These are going to prove to be extremely good for their top line. 5 in a way many competitors are not. We have a good chart comparing lululemon with nike and under armour. Middle at the moment. Bank of america says it is set to take sales away from both of those companies. Joe when you look at that chart, lululemon has obvious competitors, nike and under armour. Those are one set of competitors. What about smaller brands that are cool the way lululemon used to be, and now everyone likes lululemon . Julie like what . You are not familiar with those . Joe i know they exist. Julie what happens to sweaty b etty . The competitors they are considered to be quite small. Last week, we heard from quo vadis. And analysts said the athleisure trend is over. We are going to see years of pain for all kinds of athletic rands. They included lululemon in that. You are seeing a disparity between analysts and what they are predicting. If you take a look at my terminal, it is a function we have called trend go. Lululemon is up top. This is a function that looks at how stocks are being perceived each day on a number of different measures. Section looks at companies and stories being written about them. Lululemon is the most positive of all assessed by bloomberg analytics. Julie this is highly anecdotal. A few years back, and covering the company, this was not a company that discounted nearly ever. Lisa so frustrating. An outliereally was in retail generally. Over the past few years, if you go into lulu lemon lululemon, there is much more merchandise that is now on sale at any given time, not just at particular times. Lululemon was once seen as a little bit apart, and it is no longer seen that way. Emma bank of america is saying the fact that nike and under armour still put lululemon at an advantage. Lisa emma chandra, appreciate it. While the peak of the Solar Eclipse has passed, we will look at one measurable economic effect of todays astronomical phenomenon. I am happy to talk about anything eclipserelated. This is bloomberg. Julie what did you miss . A first total eclipse to sweep the u. S. From coasttocoast in 99 years has drawn the attention of millions. But that this event have an impact on markets . Our next guest has an interesting theory. Steve is an independent Research Analyst joining us from waikiki, hawaii. Everybody is looking for all kinds of various ways to interpret these, and also looking for ways to interpret the market. Talk to us about what you found in your research about the correlations. Steve i found that a lot of times, most of the great bubbles began crashing they burst at the time of an eclipse, specifically a lunar eclipse, which was two weeks ago. In thedy is interested Solar Eclipse today. If you look back at the dow, it peaked at the time of lunar eclipse. Most lunar eclipses do not affect the market or have very limited downside impact. But when bubbles burst, for some reason, they tend to burst at the time of a lunar eclipse. By the time the Solar Eclipse comes, which is two weeks later, the downturn usually has momentum, and usually crashes around that time, but not all the time. The first thing people are going to think when they hear this, or many people maybe there are a few times this lined up, but there probably are not many instances of this. Explanation, so it is data mining and random. Is it a reason to think there is a connection other than market moves have to line up . If it was just one, i would say you are probably right. But when it keeps happening over and over again, you start to think there might be a reason why, even though we dont know it. We do not know a lot of people dont know why a motor works, but they do know when they turn it on, it does work. You dont always have to know why to find correlations and to find causes. Lisa do you have clients who are betting money on this theory . Steve i have no idea. I do research and point out information. Acts, and that seems to be a factor. Lets put it that way. It is definitely not the only factor. It would be silly to base it on the eclipse. Joe what about the people talking more and more about days in the sevens crashes in years ending in seven, i am just curious in your looking back through history whether this is something you Pay Attention to as well. Steve actually, i do believe there are cycles, but i do not know about year seven being the factor. There is a cycle of being approximately 19 years, and half of that, there is a minor cycle which is nine and a half years, which would be approximately every 10 years. That might be what the people are seeing when they talk about ending in the year seven. Joe i love it. Great stuff. Steve is an independent Research Analyst and statistician. Thank you very much. Speaking of the eclipse, here is a chart i think we can definitively say is connected to the eclipse. I am looking at a chart of intraday california solar production. This is the last three days. Try to spot the moment where the sun was blotted out by the moon. I highlighted this. You can see in the middle of the day california time, solar production did drop for several minutes when the sun was blocked. That is how solar works. Obviously, there are some things that we do not understand why they work, like how markets might react, that we can understand why Solar Panel Solar power is diminished when the sun is blocked out. That is the kind of day we have on the bloomberg. Lisa it is amazingly even track this kind of data. I want to look at the changes in volatility. We are looking at the volatility etf and etn. This is a long fix etn, and the other are short volatility and long volatility. What we see here is that the reaction to the recent surge in volatility was shortlived. We are seeing Short Interest climb once again through these long volatility fall off. I was just talking to jim stringer for our options insight segment, and he pointed out you have got a lot of daytraders in here. T is not like the vix it self you are more reacting to the results of the day at hand. A pop intime you see volatility, you could see all of this reverse. It is an interesting phenomenon to watch. Look at emerging markets, and the rush of money into emerging markets with credit, local currency credit. I want to look at an Exchange Traded fund, the local currency bond. Its assetsly doubled under management so far this year, going from 2. 3 billion up to 4 billion. It increased its market cap to 70 , year to date. That is a shocking increase that shows how people are looking for value anywhere in the world that they can find it. It is pretty amazing, thinking about at the beginning of the year, rates are going to shoot up, and now they are closest to their low levels of the year. Into e. M. , where the opportunity for return is much higher. Julie i was speaking with mike buchanan, who said local currency e. M. Debt, highest conviction but so far this year. Lisa and he is not the only one, i am sure. The market closes next. We have less than four minutes until the close of trading. A mixed picture heading into the close. What did you miss . There is little bit of it as an end. Trading volume is really light at two is of losses in equity. I am joe weisenthal. Scarlet fu and juliet are off today. If you are tuning in live on twitter, we want to welcome you for our closing bell coverage of everything. We begin with our market minutes. This is a listless day of trading. We are seeing stocks bounce around from gains and losses. We see this throughout the day. We have gained at some point throughout the day and losses at some point during the day. It was like a nasdaq is the loan of the major opportunities to finish in the red. Ea