tv Bloomberg Markets European Close Bloomberg August 30, 2017 11:00am-12:00pm EDT
vonnie: in new york, i am vonnie quinn. this is the european close on "bloomberg markets." ♪ mark: here are the top stories we are covering from the bloomberg and around the world. tropical storm harvey strikes again along the eastern border of texas-louisiana. we could see some massive rainfall tying into its u.s. economy going forward. ecb get set to review policy next week. there are concerns about overshooting euro. how vulnerable is it to a correction? meanwhile in the u.s., the dollar is gaining. aning in moments, we have interview with warren buffett. we will talk about his latest investments and his annual charity lunch in manhattan.
taking a look at how european equities are trading right now at 30 minutes before the end of the wednesday session. we are seeing a rise in four months year. for now, we have on yield rising along with commodities. -- we have bond yields rising along with commodities. the euro temporarily rose above one dollar 20 against the dollar. it makes a question of if the odds of intervention from mario draghi increases next week. the ecb may make some references which couldnge effect, lesson, or hold for the next few months the pace of appreciation. a meaningful reversal seems unlikely.
the ubs says that buying euro at this level should be a profitable investment over the next one or two years. over the next one or two months, it might be difficult to chase the currency higher given that the ecb is targeting inflation. euro pushes down on inflation which is still well below the ecb's target of 2%. the data points of interest today in the u.k. were consumer credit cooling slightly in july amidst concern amongst bank of england officials that the market may be entering a bubble of secure lending. it grew 1.2 billion on the month. banks have been warned recently that they may be getting into a spiral of complacency in consumer lending. ofresponding to the buildup
credit by ordering lenders to hold extra capital and strengthening rules on mortgage lending. untila will be in japan friday. i thought we would look at the trade balance. trade deficit a in the u.k. four in the u.k. for a number of years since at least 1988. it has been increasing in the last year or two. the problem for the premier is as she tries to hash out a provisional trade deal with japan, their focus is on the eu. it is tricky times for theresa may. abigail, how are we looking in the u.s.? abigail: the boards are up this morning. early yesterday, we saw some pretty steady declines following north korean tension, but a decent rally by the end of the day. the dow looks slightly negative right now. s&p 500 and nasdaq are on pace for their best day since last
week. the nasdaq is up almost at about 0.6%. the dow jones also trading tradingdly at 0.5% -- pretty solidly at 0.5%. on the year, it is a different story. let's hop into the bloomberg. this is a one-year chart. in white, we have the dow transports which would typically look against the industrial , but we are are looking at the s&p 500 which is a broader index. the last time the s&p 500 was at an all-time high was that in july. we see a bit of a divergence here which is a bit worrying. we have word that this is one reason to be concerned for the
markets. it is reason to believe that there could be a correction later this year. as for more drag on the dow transport today, and more recently even though we had the outperformance, let's take a look at the airlines' stats. they are all trading lower as the ecb is out with a cautious note saying that a bearish approach has worked in. it is down on a number of guidance including hurricane harvey and you political tensions. -- and geopolitical tensions. we do have the dow transport of about 0.5%. here is what -- transport up about 0.5%. here is what is causing it, the trucking stocks are trading higher. we did see an upgrade today for a few of them.
one analyst says there is improved pricing in that he is seeing a surge in the stock market which seems to be helping the trucking stops -- stocks. vonnie: abigail, thank you. let's check in on the first word news with courtney donahue. >> tropical storm harvey is taking aim at louisiana. the store made landfall today in the southwestern part of the state. that is after dropping over 50 inches of rain in southeast texas. the storm has been blamed for at least 18 deaths in the houston area. one analyst estimates that the damage could hit $80 billion which would make it the second costliest u.s. disaster. president trump resume his pitch for tax cuts for the middle class and small business today. he is traveling to springfield, missouri to talk about tax reform. he's only going to focus on why it is needed, and he will leave how partart of to --
up to congress. you will hear his comments live coming up on louvered television. north korean leader kim jong-un warning that the latest missile launch may just be the start. he said that the latest missile test over japan was a meaningful prelude to containing the u.s. territory of guam. he says he will not consider further action until after he sees the u.s. reaction. says he needs to know the british partition -- position, and then he can be put civil -- can be flexible. the u.k. has accused the eu of being too vague. vonnie: courtney, thank you. back to tropical storm harvey which has been downgraded. we are looking at it economic
impact. see increasingay pressure after the release of this bond index. in a forthcoming report, aon find that annual catastrophe bond issuance is up 20% which sets a new record of $11.3 billion. talk to us about the yields on some of these bonds and where we are seeing those go in recent days. >> certainly. it is a pleasure to be here. think you for the opportunity. if we look at the yield of cat bonds, the bonds have yielded at about 5.6% which compares to the five-year average of about 7.1% in the ten-year year average of about 7.5%. we are seeing some compression over the past year, but it is still on relative performance
compared to other sectors. an event likeoes harvey impact the pricing? return toect a longer those bonds? >> we are seeing some short-term pressure just based on where these were trading just before landfall. i think we have seen the market stabilize over the past couple of days. it does not really up here as though harvey is going to cause lost to cat bonds. on a more stable basis as we look out 30 days or 60 days that the favorable pricing trend will continue in the cat bond market. mark: what would it take to wipe out the principle of the bond? i guess the disaster would have to be particularly severe? >> they are structured to protect against the very remote
events which happen every 50 or 100 years. although harvey is going to cause considerable damage, a lot of it is going to come from water damage as opposed to wind damage. the pending at how these bonds are structured, it will determine if it will be a loss of principal for investors. as we expand the perild ba -- peril base, i think we will see events like harvey causing losses in the future. mark: do you expect some damage to the u.s. economy? what you lose in the near term may be added to the u.s. economy in coming quarters. is that how you look at it? >> i think we are all just waiting to see what will happen,
the real damage. right now, we are seeing a lot of evacuations. we are seeing people leaving the affected areas. until people get back to work and we see the ultimate damage, it is hard to have to firm of a few on what is going to happen. although we tend to see more dislocation,market we would expect that. the question is how long of a lag there will be between the events and how long that will take. vonnie: who has been issuing cat bonds recently, and who is buying those? are still from the insurance companies. we have been seeing more dissipation from the government sector -- more participation from the government sector, but the bulk comes from the insurance companies. they are looking to hedge the aggregation of their portfolios as they make their capacity available to their clients. investors in the market tend to
be driven by pension funds. we estimate that 60% to 70% are pension funds with a long-term horizon on the sector which is what you really need to be able to do in order to invest, because you could see the losses from hurricane harvey affect your short-term performance. within see another 20% or 25% coming from high net worth or family office type investors. what makes people get out and trade these securities? is it an event like harvey or something a little less obvious? >> i would say the market is fairly immune to interest rate changes, only because of the underlying collateral tends to move with the underlying interest rate benchmark, so it is not really an interest rate sensitive trade.
it does change around market events like harvey or if clients want to move to different asset strategies. from time to time, we will see cycling in and out of the ios b ase. vonnie: we have entered hurricane season more broadly. what is the outlook for the cat bond throughout the season this year? >> i would say we are coming off of a record issuance. $6.4 billion of that came in the second quarter, so a lot of momentum going into the second half of the year. we are anticipating a good pipeline of new issuance as new sponsors want to come to the market. from an investment perspective, we have seen that there may be lost to some of the bonds, but a
lot of the bonds these days are being structured on an aggregate basis. so, they will aggregate losses from a multiple number of events. even if harvey does not cause immediate loss, it will cause some erosion. as we move further into hurricane season, we may see more issuance of those bonds. mark: what about european exposure? marketuld say that the is aligned around hedging u.s. exposures. that is where the greatest margin for investors is in terms of u.s. risk. it also tends to be the most active sector in terms of hedging. so, as our board highlights, most of the issuance is coming out of the u.s. markets. we do see other markets -- really, japan has panned out as being one of the largest
participators in the sector. europe is on and off at times, and right now it seems to be a lower issuance. it really just depends on the relative efficiency of the cat bond market compared to the traditional insurance market. vonnie: thank you for that enlightenment. paul joining us from our chicago bureau. ark: coming up, we will have look at our upcoming exclusive interview. that will be coming up in just a few moments. also, we have our interview with warren buffett. do not miss it. this is bloomberg. ♪
♪ amnie: live from new york, i vonnie quinn. mark: live from london, i am mark barton. this is "bloomberg markets." in an exclusive interview, we the impactaul about of the euro's rise this year. >> know, we are not concerned. it went up to about 160 if you years ago and then down to 105 or 110, so there are highs and lows. that is life. .ur business is very global
concerned. >> the biggest growth has been in europe? >> still, it is a global business. ofthe first 100 days , how are youon feeling? >> it is only the first 100 days since the president has been elected. asserttarting now to important information which will be announced on thursday. it is just beginning. we are very interested. he is good for france,
.he business, economic recovery i'm very confident and very supportive. you, is this important to be a large -- a ceo of a large company like yours? >> it is important, because it shows a signal in the change of mindset in france. we have been adapting to the situation. clearly, you are voting for the friends economy, that -- for the france economy, that is going to be a very important move should it will be a very -- important move. he will be a very important move. from what we understand, they have voted for macron, so they know what we have to do and they are being realistic.
they understand what the country needs, and i think it will go ok. >> 63% of the french now say that they have no confidence in the cronje actually -- in macron actually delivering. his population -- popularity falling 20% over the summer. the you not agree with it? it is not really important. the really important thing would be the impact on the economy. i am pretty sure that we will see an increase in the gdp. off aspeople are better the economy gets better, i think the people will forget all that. inprovided that it passes september.
are you going to start renegotiating some agreements? >> we think it is too early. we do not yet even know what measures we need. so, we will wait and see before we decide. >> are you concerned about some mixed messages from the government on tax measures? >> know, because, again, it has not even been opposed. so, we do not even know what the final project will be at the end of the year. so, we will see. at the moment, i think it is still too early. between the election which took place at the beginning of the unfortunates a bit -- beginning of the summer and in the summer, it is a bit unfortunate, because we are not seeing major things happening, but by the end of the year i think the plan will be more clear and the policy will be
set. i am confident he will go in the right direction. paul earlier today on bloomberg television. vonnie: fascinating what is going on over there right now. want to bring you some data from the united states which shows the industrial average down about six points. 0.6%&p 500 is up about being led by some pharmaceutical companies. warren buffett is holding his benefitharity lunch to the foundation which helps the homeless in san francisco. from down the street in manhattan is david westin. david: no steak yet. it is good to join you from here in manhattan. we are here for the annual lunch
that were buffett auctions off. warren, thank you for being here. let's start with this charity. why was this so important to your late wife, susan? individual, cecil williams, who had a markable interest in helping those who society had given up on. so, she worked with him in volunteering, and she was telling me about him. i was a little suspicious, and then i went and saw the operation myself. i got to know him and really watch him transform the lives of thousands and thousands of people. i think she got the idea for thenoption -- auction, and ebay has been terrific in broadening the bidding office. so, it has been terrific with some great people for a great
cause. david: you are in the news again, because you just executed on those warrants for bank of america. it was a great deal for you that you made some great dividends. how does it fit into your overall investment philosophy? >> the dividends we will get now comes as bank of america increases its common stock dividend, and now we will get -- 30 plus million dollars more annually. so, if the dividend on the common got to where it exceeded, we could execute on our ward. -- weren't. -- on our warrent. david: is this consistent with your philosophy overtime, or is
this just the deal? been following bank of america since i read a book about them 50 or 60 years ago. it has an amazing history. trouble making acquisitions, and so they got into significant trouble, but that is like an athlete in the hospital for an accident. it takes them a little while, but you have to get them back in shape. i came in at a time when people were particularly critical of the institution. i think they were wrong, so i did get some value from the bundle in 2011. who i had never met, and we made a deal very quickly.
david: income america is really dependent upon the race -- eight of america is really dependent bank of rates -- america is really dependent upon the rates. >> they are doing a very fine it currently. they are doing just fine currently. i knew they would get the job done. it took a couple of years, a very tough job, but they are a retail bank compared to a jp morgan. institution, and it will do that are with earnings as rates go up, but it is doing pretty good right now. it is doing better court of by quarter. david: so, you want something around 7%. five years from now, is it more likely to be 10% or 3%? >> at think it is likely that we
will not sell any, so our 7% or whatever the number maybe right now, it will go up if they repurchase more shares than the issue which i believe will be the case. so, i think it will be higher in about five years. let's talk about a similar deal about a home under in canada. out andave them coming administering the second tranche. does that discourage you? >> know, we knew it would be subject to the shareholders. o, we knew it would be subject to the shareholders. we bought a piece of it going in, which was a little less than them.nd we assisted
buy theould like to stock, that if the shareholders -- the stock, but if the shareholders voted down, then we will be fine. david: let's talk about your investment strategy for a moment. let's go over what you learned from your mistake. generally, you said you find you look for businesses you believe in with strong management in the long term. what went wrong? >> well, i have made a lot of mistakes. that is just heart of the game. if someone says they have never made a mistake, then you better check them out. however, that was a fairly large commitment. that -- what is really fascinating to me actually is what amazon did with the clout -- the cloud.
really takens something that you would not thought they would be doing. he even said he was amazed at how much runway he was given. here, a very large number of people in the tech industry allowed them including microsoft and google. so, they let them have a big lead. it is hard to follow after a big lead. dated: what does that tell you about the tech sector in general when it comes to -- >> we are not going to wake up to morneau -- tomorrow and --, and in the tech business you have a group of very smart people that have access to resources, and they are all the
time trying to figure out a better product. i may be carrying this around, this was the hottest item around at one time. david: you know they are coming out with a new iphone? warren: you just are my did me of that. david: you have over $100 billion in cash and cash equivalents wedding to be invested. you would not like to invest all of that, but a large chunk of it? mr. buffet: i like to keep $20 billion around. david: what does it tell us that warren buffett and berkshire hathaway cannot find sensible investments to make in this climate? mr. buffet: it was shooting fish 2009,arrel in late 2008, and stocks have been steadily going up, pretty steadily going up now for about -- well, march early9 was a wall -- lull
in march. stocks are not going to earn much more, earn more because you pay more for them. attractivetten less as we have gone along. they are still attractive compared to bonds. you are paying 45 times earnings when you buy the bond, and they will not know up. you put $100,000 in a 10 year bond, you are paying for a form of investment that can go up. stock. -- stocks still look attractive compared to that. as interest rates go up, the comparison becomes far less dramatic. david: and no wonder if there is a direct connection between those two? mr. buffet: there is a connection. -- just theot dust doj, but the boe, ecb, bank of
japan have injected money in there as well. ratesffet: the interest are gravity is to matter. if interest rates were nothing, and they will be nothing forever, buying stuff would yield you 1%, 2%, you might be buying real estate or stocks. if interest rates are on the they were in% like 1982 under roper, you could look at a stop with six times earnings and say isn't that attractive? that's what buys valuations, and we have these very, very low interest rates for some time, longer than i thought we would have them and longer than most people thought we would have them. david: and we have the federal reserve signaling that they will be coming off, letting the balance sheet rolloff some. what effect might that have on stock prices on other assets? mr. buffet: they have to be
careful on how they do that. they have about $4.5 trillion in and 1,000,000,000,000.7 -- $1.7 trillion, $1.8 trillion in real estate. they go back, that would be $3 trillion of recurring securities they would not be taking up, some of the else would have to do it. would have tose do it. they have to be careful on how they do it. quantitative does easing work echoes seems like there was a trickle-down theory that if we increased asset prices and the income was still hour -- average hourly wage is not going up quite as fast. if we go back to the economics of 100 years ago and
the fed had not been there to the us haveld had had a far different recovery. i think the fed has done the right thing. we have never gone through a time like this, and how it will all work out we will find out. i think they will be intelligent about it, but they have not played this game yet either. david: so one thing is the trick in transition, which we have never seen before in the massive monetary easing. another question is whether monetary policy needs to handoff to fiscal policy, and when donald trump was elected president, there was a lot of hopes about tax reform and infrastructure spending. how he is that too robust growth in the underlying economy? does that connected to robust growth in the underlying economy? mr. buffett: siv jensen: -- likeuffett: it is people that in the world. we have not had good productivity gains lately, but if productivity per capita goes
up, the companies will not fail. the productivity gains at innovation are the key, and they will largely come from the private sector. 20 -- plenty incentivized to do that sort of thing. this is tied to capital investment, investment? this phone i pulled out, it is a form of productivity. that can be our andy and all and all that,nd but the big steel mills with the rockefellers and carnegie's, it involves huge capital investment. if you take a lot -- the five largest countries in the market cap and the s&p, they are 10% of the overall s&p. they are tech companies. you could run all five of those companies with no equity capital. , fiveve 10% of the s&p companies that are making our lives better, but they do not require any equity capital. weid: does that suggest that
are measuring productivity the wrong way around? because we started we do not have the things like the cell phone in your pocket. mr. buffett: the fact that i can write my annual report a lot easier now because if i want to check a quotation or fact, it takes me 15 seconds on search rather when -- rather than going to the library. it has made me more productive. i can get things done a lot faster. does that get into the gdp figures? i am not sure. economists got away with correcting a lot of that, but there have been a lot of improvements in lives. i can play bridge game now by getting three people together on in 30 seconds, and waste have to make also for my buddies to come over. our lives have gotten a lot better in general than the gdp figures show. david: i have heard you say before that if you are born in
the united states, you won the lottery right there. but if you look around the country, there are a lot of who do not believe that, for not participating, and you are angry, hurt, and scared. why is that? mr. buffett: i do not blame them. this is a forbes 400, which had $92 billion of aggregate of the 1982 that now have $2.4 trillion -- aggregate wealth in 1982 that now have $2.4 trillion. they have seen them go 25 or one since 1982, and you can see it in income tax figures and other places. has is proportionately gone to the superrich in this country, and a lot of people have gotten left behind, which should not be the case. $57 -- $57,000, and000 of gdp per capita,
the distribution has gotten pushed more toward the top in recent decades. it is not because people are evil, but the natural function of the marketplace -- it is up to the government to actually to do something about that. finally, it is your birthday. happy birthday, warren. as you begin your 80th year, i have a question for you. you knew denver really well. we used to go to management retreat, and one of them you up anderefore, dan came said there is only one thing i am truly afraid of, and that is failing as a parent for lack of trying. that's stuck with me. it was very powerful. as you enter your 80th year, -- year, what is the one thing you generally fear, not for warren buffett but for your children or grandchildren? weaponsett: i would say
of mass destruction. we have groups, we have countries who would like to, in a few cases, kill as many and as many country's inhabitants, and they have as many weapons as they would not have dreamt of 100 years ago for a long time. if you do not like your neighbor, you could throw a rock at him or something, but now you have weapons you can kill millions and millions of of people. and they have been in the hands of unstable people. it might have been twisted a deliberate way, you might have figured out how to distribute it differently. we live in a dangerous world that way. it is the only real problem of humankind. we will have a more prosperous world, a more prosperous united states, healthier people with better education, everything is going our direction except that huge cloud out there. and i do not have any great answers for it, but that is why
it is huge. david: so does that put north korea at the top of your list? mr. buffett: it is close to the top. there might be something i do not know anything about that could be on the list, but if you have a small, relatively poor country that is spending a significant part of its gdp trying to figure out how to get an icbm to hit the west coast of the united dates, there is somebody going on -- united states, there is something going on in somebody's mind that i do not like. david: -- vonnie: david westin, fascinating insight there. that was david westin with warren buffett, who is celebrating his 88th birthday. have anp, we will interview with bank of america chairman and ceo brian monahan. donald trump is arriving right , the plan is to head to springfield, missouri, where he plans to kick off a rally highlighting plans to kick off
someone about the impact of the issue. >> [indiscernible] this new application of the euro, we have and we need to economy.ronger and that is the form we want to introduce, we can have the presence to make the economy stronger to face difficulties like the new euro or difficulties on the -- markets. we need this so we can face such problems. scarlet: we are -- the: we are joined by effects and rate strategist from blair linn. is it time for -- berlin. is it time for dimension for draghi? >> i think it depends on who you ask. we have heard from business
groups and friends saying yes, the euros getting to levels now that is becoming problematic. we have other business groups in germany that are saying it is not such a big deal at these levels. with the ecb, they set this up and i'm not sure the level at health -- itself is a big concern for them, it is the pace to move higher that we've seen in recent months. they will probably take the opportunity to push back a little bit on it, same as they did last time around. but i think there is probably a mindset within the ecb to keep some powder dry, because if the euro were to continue to appreciate in the coming months, that would be a pretty big problem. that is the issue isn't it? strong euros push down on inflation, which is well below the ecb target of 2%. inflation encourage out of germany today. that will take up to 1.4%, but still, the east he be has to be
-- ecb has to be concerned about the impact on inflation, given that it is still nowhere near .hat 2% level richard: that has been a big challenge for the markets, to get inflation up for their target of just below 2%. it has been problematic up until now, and you are right, a stronger euro does make the achievement of that target more difficult. the stronger euro is doing some of the tightening for the ecb. so if you do get continuation of euro strength, it does sort of put the ecb plans to taper the qe program back a little boat -- little bit. theyt is not the pace that will rise, and we need to see in the coming months of this continues. meets,ek, when the ecb they might keep their options open for the october meeting when everyone think they might make the announcement about the tapering of the qe program. vonnie: how do they do that when
the market is desperate for something to grab on to hear? given that you are in berlin and have been looking at bond and bundyields -- bund and yields there as well. richard: i think they probably carry on with the messaging that they have been using over the past few months, which is to say that they are encouraged by the gross numbers and sentiment readings in the european economy. inflation remains too low, but it is heading in the right direction. i think they try to balance the good news on the growth front with a bit of caution on the inflation front. as i say, i do not think they push back vigorously on currency strength, but it will be interesting to see what they actually -- they update their economic forecast next week, what assumptions to they have for the euro going forward? that will be an interesting
component into what their view of inflation is over the medium-term. vonnie: but it is not just --roeconomic conditioners conditions year. the ecb will have to say something about what it will do when capital keys are reached in, and in some cases they have been breached a lot, the amount that you can buy from certain countries when it comes to bund buying has been decreased a lot. richard: that might be something they deal with more in the october meeting. i think everyone is looking for the october meeting for something a little bit more tangible, because you are right, scarcity is becoming an issue and it is something that market participants want to hear about from the ecb. mark: i think you want to look at this boe calculated effective exchange rate. we are near levels we were last
october. you remember that the governor of the bank of england had said that he and his colleagues were not indifferent to the exchange rate, given they were approaching that those -- given they are approaching those october levels again. is it time to use the same sort of rhetoric as this level for sterling? could this start making the governor and his colleagues more uncomfortable? >> i think that is a difficult situation for the bank. realistically, i do not think there is a lot they can do about the weakness in the currency. even if they were to tighten rates, which i think is a pretty challenging prospect, given the fact that inflation-adjusted wages are actually contracting in the u, it is hard for them to do anything other than job own, and that is a difficult thing to do to shift the currency's value, because the dynamics we have seen -- brexit negotiations, which looks like they are stuck in the mud, the economy that is underperforming,
it is really difficult to shift the narrative on the pound, and i would be very surprised if the bank of england were to tighten rates simply with a view to strengthen the currency, because as we have seen in the past, it is very very difficult for them -- very, very difficult for them to have any tangible control of that. richard jones, great to see you. vonnie: time for our stock of the hour -- this one we are oil tanker owner frontline, plunging today after its biggest intraday drop in three months. emma chandra is here. you have to wonder if harvey has anything to do with this? >> certainly, second-quarter earnings we saw a that's a anre, which is worth estimate of $19 million. they suspended that dividends -- look at my terminal here. i have on the bloomberg the oil tanker index. they have been having a bit of a tough year, right at the bottom, this is how their peers are
doing year to date. you mentioned harvey one of the -- harvey, that is what they do, they organize this fleet of crude carriers. something i enjoy learning earlier today. they transport crude and oil products port to port. if we continue to see self -- gulf refineries close, they could have more problems. the biggest issue is that tankers -- there is an oversupply of tankers globally, and take a look at another chart i have for you. i will just put it up here. this is for tankers, and you can see some of the major global -- they have been falling and they and there isly, not enough to keep these big tankers. that is one of the things that has pulled them down.
the customer -- company says their outlook is still good, but things are not looking that great for them for the rest of the year. very large crude carriers, vlcc. that is the acronym of the day. emma, ut just something new every -- you teach us something new every day. president trump is headed to missouri, where he is kicking off a campaign to overhaul america's tax policy. will bring you his remarks on tax reform at 2:30 new york time. 7:30 london time, you can see air force one taxiing as it the parts. -- the parts. the president is on his way to stringfield, missouri. this is bloomberg. ♪
♪ take a look at where european equities finished for the session. the stoxx 600 gaining yesterday. price to riskier assets today. yesterday was the flight to defensive assets as president trump's measured response suggested the standoff with north korea is eating up. coming up at 3:00 p.m. eastern today, bank of america chairman chief executive brian monahan -- ryan monahan -- brian mon iyhan.
♪ from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world we are following at this hour. tropical storm harvey making a second landfall in luisi -- louisiana. as the gulf coast continues to impact. with harvey's the latest from congressman the ground in texas. and part of our interview with warren buffett. the berkshire hathaway chairman a huge as he locks and investment in bank of america. and bloomberg's scoop on apple's grand plans for the upcoming iphone. will bidding the home button ditching the home button lead to a wave of new sale or scare customers away? let's start with a check on bloomberg first word news, with