anniversary of the rise of american democracy. the person stood up and held hate andt read "deport reunite my family." the man was let out of the site as some members chanted mr. trump's name. hate and reunite mymexican officials sayr of mainly central american migrants traveling through their country to reach the u.s. border has declined by 39% since may. officials say the drop is a result of greater mexican enforcement of its immigration laws as well as investment and job creation in central america. president lopez over door is calling on the central bank to lower interest rates. micklethwait john in his first interview with international media since taking office. they are more cautious about inflation.

this is not a bad thing. no, this is not the wrong thing to do. , but it isying that important to lower the rates to he alsoe growth mark: says president trump has toned down his rhetoric against mexicans. were killed by afghan and international coalition forces in afghanistan in the first half of this year than by the taliban and other militants, that's according to a new report from the united nations. insurgents often hide amongst civilians. the report says one in three casualties was caused by ground combat and if it i roadside bombs. -- a fifth the by roadside bombs. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. it is 1:00 in new york, 6:00

in london, 1:00 a.m. in hong kong. i'm shery ahn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world we are following. knee deep in earnings. by the end of today, more than half of the s&p 500 will be on with quarterly results. meanwhile, we expect the fomc decision tomorrow. hisco's president says country's interest rates are too high. we have the exclusive interview. it is said to be one of the biggest cases of corporate collusion in history, and it's costing patients billions of dollars. more on the massive generic drug

cartel. let's get started with a look at the markets. abigail doolittle, we continue to see downward pressure. abigail: we are looking at small declines for the major averages. a second down day in a row. continuing to retreat from the all-time highs we saw last week but well off the lows. with earnings, the head of the fed trade talks all a factor here. of course, into the fed decision that sherry was talking about, it seems that a 25 basis point cut is priced in, but not 50. an interesting chart here. the odds of a 50 basis point rate cut were pretty high. in july, 70% spike. likelihoodnt, 17% the fed will cut by 50 basis points. interesting to take this in mind. it suggests jerome powell's

language will be important, in addition to the likely 25 basis point cut. as for what is moving the s&p 500, lots of movers. lab tech up 8.3%. the real tech company put up a great quarter considering there are pressures around the rail market. national oil well soaring at highs. 10%, uppany had been up for its best day since 2009. gartner is on the pace for its worst day since 2009, down nearly 20%, as the i.t. company cut their full-year outlook. research revenue declining. corning down 7.5%. waiting there is guidance on an optical slow down. despite the s&p 500 is down slightly, the vix is spiking. the fear index coming off of its

lows, up 15%. some don't like to look at evenntages on the vix, but with this spike higher, it would seem to match those declines on the s&p 500. if we got back into the bloomberg and look at an interesting chart, call volume is spiking. .ear-to-date chart you can see it's been in a range, but now spiking to the year-to-date high. some investors seem to be getting bullish in options land. shery: thank you. wa here, we have luke ka ahead of the fomc decision. we are expecting the vix to pop up in the summer. : she has pointed out, if you put the inverse of that, the

vix put call ratio, it has never had a streak of four days of less than 20% since 2007. any of the back-to-back readings, we have had a pickup in vol in the past month. the reason we are seeing that ratio do what it does, it is mainly one after loading up on vix calls. i don't know if it's possible to make as much of a generalization from what seems to be just one actor out there in the markets. shery: at least that person things we will see a selloff in the markets. -- pre-ay, pretty fomc, fomc, the president is keeping us busy with his tweets. luke: the chinese trade risks bask on the table. more geopolitical savvy folks and i have noted that perhaps the chinese trade issue is a better ball or truck to have in the air in 2020. it seems like that.

maybe in the process of being made. what strikes me when i look at an intraday chart across the market, aside from homebuilders, there is such a little dispersion. nothing besides that that is up or down more than 1%. this is a classic wait and see if you look across the equity landscape. the recoverye saw this year, we saw the fences take the lead. what are we seeing now? luke: essentially since jerome powell said it was appropriate in june, risk on was the tenor. low vol stocks have been performing. in the past 10 days, you have seen that this has picked up. in this chart, what we have here, low vol stocks on the bottom leading the way higher, but also that american equities are pulling away from the rest of the pack. ex-u.s. hasld index

never been this low relative to the s&p 500. that u.s.other sign strong is still the order of the day. shery: the question, can the everything rally be sustained by the fed alone? nothing but a copout, but it lives or dies on the fed. i can comment on a piece from my colleague in london that highlighted jpmorgan's positioning, adding to the bonds and equities side. what we saw last week on mario draghi's disappointment, we saw a selloff in stocks and bonds. maybe you would have thought that would be more of a flattener. it is just sell everything, and that may speak to the position that that position is binary. shery: we saw today yields pop. consumer confidence came in at

eight months highs. is the consumer story going to be driving the rally the next few months? luke: if the rally is going to get more lax, the consumer story is well-established both in the economic data and the strength in stocks that show pricing powers stateside, like procter & gamble. it would have to be something that we are not looking at now, like industrial stocks or banks continue to get off of the mat. shery: luke kawa, thank you for that. don't forget to tune into our special coverage of the federal reserve's rate decision wednesday at 2:00 eastern, 7:00 london, 2:00 a.m. thursday in hong kong. now let's turn to monetary policy in mexico. lopez obrador says interest rates in his country are too high. he spoke exclusively to bloomberg in mexico city.

>> one thing is what is to be desired, and a different thing is what is possible. i would like the central bank to work not only on controlling inflation, but for it to be thinking about growth as well. we are talking about what the central bank is doing. they are more cautious about inflation. no. is not a bad thing, this is not the wrong thing to do. i am not saying that. but it is important to lower the rate, to encourage growth. this is an issue that i am leaving for the central bank to decide. we are not just going to be able to grow, but also to develop.

not only growth but development. growth -- that is what we want to change and to create new paradigms. growth is creating wealth but not necessarily distributing wealth. development is growing and distributing wealth. so our administration, our government, what it is now doing better than before is distributing income. although growth is scarce, little growth, there is a better distribution of wealth. that is, there is more well-being. that was the mexican president andra's men will lopez obrador.

coming up, a look at the state of the luxury real estate market. says people are not willing to overpay for homes, even if they have a lot of money. this is bloomberg. ♪ ♪

shery: this is "bloomberg markets." i'm shery ahn. data out this morning shows the u.s. housing crisis is deepening , but in the luxury real estate market, buyers are still betting on homes that sold for $25 million and up. freedman, is bess brown harris stevens ceo. how liquid is the market at the moment? bess: morale has been incredibly high lately. the month of june was

exceptional. we closed sales 23% higher than years past. i think that was mostly due to the mansion tax. there is a pool of potential sellers and buyers that are working together and we are getting deals done. shery: would that be within new york city? that market has been more of a buyers market, but because we have had a price correction, and sellers have come down to planet earth, that has helped us a bit. buyers and sellers can have a meeting of the minds, and we can get a deal done, which has been helpful for the market overall. shery: is this a reflection of demand or just how the market is built, in the sense that new developments are closing at this moment? bess: you make a good point. there was a chunk of new developments closing in the second quarter which helped. supply and demand, there has been a little bit of a lag. over supply and demand

has not caught up because prices have been out of whack. we said, sellers, get reasonable, cut your prices and you can get a deal. that has helped overall morale. shery: of course, we get the fed decision this week. expecting a rate cut of 25 basis points. does that help the luxury market? helps over all because they feel inspired to purchase. the $25 million market is kind of the outlier. you hear about all of that, people love to hear about those 2, deals, but these regular 3, $5 million deals are the bread and butter of new york city. shery: we saw prices and manhattan fell, also for the hamptons. but in brooklyn the average apartment price rose 3% over the past year. what is different? bess: it is different because people are actually leaving the upper east side and leaving for

brooklyn. brooklyn has great schools, and exciting environment, younger, millennials want to live there. most want to be in an environment that is more trendy. if you want to be trendy come you go to brooklyn. we have offices there and we love millennials want to live there. it. shery: what is your outlook for the rest of the year? positive. i think 2019 will end better than 2018. in july, people thought we would fall off a cliff after june because of the mansion tax. but july has been great. we had a solid july. i'm optimistic. shery: does your optimism apply to the hamptons, where it's been more challenging? bess: i'm going to be a little measured with that. the hamptons is a seasonal market. we have had more of a rough go in the hamptons but we are doing some big deals out there. we have some big deals that are closing. it is a little bit of a trade here and there. shery: how much has that market

been affected by the new tax laws, you cannot deduct as much property taxes as you would. bess: it is a factor. when you are purchasing, you are thinking, i am now capped at 10,000. people have to factor that into the decision-making process. shery: is it a good time to go and buy right now? think it is a prime opportunity for buyers right now to get in. they can negotiate, talk to sellers, and get a deal done. it is new york city, a great time to purchase in new york. for those listening. shery: thank you so much for being on here today. bess freedman of brown harris stevens. coming up, a massive drug pricing fixing probe is being called one of the biggest cases of corporate collusion. now it is hitting some roadblocks. this is bloomberg. ♪

shery: this is "bloomberg markets." i'm shery ahn. time for the bloomberg business flash, look at the biggest stories in the news right now. reported itsamble best quarter of organic sales in a decade. consumers snapped up their beauty and health care products in particular. increased pricing added three percentage points to sales. shares of merck roosting after boosting its profit forecast for 2019. meanwhile, one of their drugs rose 59% in the last year. it is on peace to become a $10 billion your product. shares of under armour are plunging the most since 2017. they wore the north american region continues to struggle. meanwhile, under armour is

transitioning more to more for price sales. they say it is two quarters into a five-year plan. opposed an fbi rate was to find evidence that mylan's top executives played a role in what authorities described as widespread price-fixing in the generic drug industry. three years later, the federal investigation has hit some snags. here with more israeli griffin. thank you for joining us. first of all, let's get started with the fbi raid, where did that lead? toey: let me take you back september 2016. the department of justice antitrust unit sent investigators to mylan's todquarters in pennsylvania seek out documents from the executive offices of the ceo and president. when they got there, they encountered a hurdle, were not able to get into the ceos office.

they got into the president's office. the question is what they got out of that. later, five years after the investigation, we have yet to see any charges other executives at a small company called heritage. the bigger players in this criminal probe have yet to be named. i think we're all waiting to see what happens, although we have learned from sources that charges are expected, but we don't know who. the people that will also have the merger between pfizer and mylan. riley: yes he would it is a little bit complicated, but the chairman of mylan will be heading up his new merged company between my land and pfizer's off patent business unit. yesterday's announcement came out, it really rocked the industry, much to our surprise.

we now see that mylan will have greater scope and commercial distribution across the world, including in asia. he is heading up that business. but ceo heather bresch is due to retire. shery: let's talk about the generic drug industry and what is wrong here. give us some examples where the prices have skyrocketed. broadly, the generic drug industry has faced its own headwinds over the past decade. mylan is a great example of that. since 2016, we have seen the company's value depreciate by three quarters. they have had to figure out new solutions for what to do. price collusion that is being outlined in the state attorneys general suit, and what we are suing -- assuming is being investigated by the department of justice, that is into price hikes among teva, , and theseoz, etc.

are drugs anywhere from blood donors to ocd medications, critical drugs for patients. generics business can be a tough one, margins are thin, lots of competition. how are they dealing with this? riley: through its merger that they announced yesterday. i think that is a means for them to acquire a new portfolio of drugs that bring in significant sales, despite the fact that they are off patent. haser's business medications like viagra, lipitor, household names, but their prices have eroded now that they face generic repetition. mylan is acquiring them to broaden their scope and reach. a chance toit is move these drugs off of their balance sheet and focus on innovative therapies like cancer. shery: could we see more momentum in these probes? president trump is apparently

working on a plan about drugs coming from canada, given the election is coming up? between a state ag's and the department of justice, we don't know if they are going to pick up steam, if they are. although we have heard charges will be brought forth, they have had hurdles, in terms of getting witnesses. when it comes to washington, we will have to stay tuned. shery: riley griffin, thank you for that. as we take a look, let's take a look at bp, the company surpassing earnings expectations, announcing it is considering increasing its dividend. alix steel will be on the road this thursday for "commodities edge." ♪

mark: i'm mark crumpton with bloomberg first word news. president trump is criticizing china, saying it continues to "rip off the united states."

his comments come as the nation resume trade talks in shanghai. speaking to reporters, the president said "we argue they're going to make a great deal, or we are not going to make a deal at all." china is dying to make a deal with me. whether or not i do it -- it is up to me, not up to them. president criticized china for its online this to buy american agricultural products. the british prime minister boris johnson is hinting there may be no brexit negotiations with the european union before the october 31 deadline. the threat of a no deal divorce with the eu sends pound falling. the prime minister is in wales this morning to make the case for his brexit strategy. the department of homeland security has issued a security alert or small planes, warning modern flight systems are vulnerable to hacking. the agency is recommending that plane owners make sure they restrict unauthorized physical access to their aircraft until

the industry develops safeguards to address the issue. in egypt, a new report finds one in every three citizens is living in poverty. the countries statistics agency says the percentage of egyptians living below the poverty line nearly doubled from 2000 to 2018. egypt has been struggling to revive its economy after years of unrest that followed the 2011 arab spring uprising. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. shery: live from bloomberg run -- world headquarters in new york, i'm shery on. jon: i'm jon erlichman in

toronto. welcome to "bloomberg markets." we are now joined by our bloomberg and bloombergbna.com is. awaits an interest rate decision from the fed. we will have a preview coming up in the program. and we go inside the mind of the capital one hacker. how the former amazon employee managed to preach the banks security defenses. all eyes on apple. the tech giant reports third earnings after the bell. will lower expectations work in the company's favor? first, we want to get a check on what is happening with the major averages. certainly has been negative tone. we heard the comments from president trump, as mark them, weighinge on stocks, as we wait for more details on the u.s. china trade talks. you can see that weakness in the british pound. we highlighted that brexit uncertainty, which is leaving

the currency having its worst month since october 2016. of course, we've referenced at the top of the program, will be keeping an eye on shares of apple, which is why we see some softness in the nasdaq today, selling off the head of the quarterly results. apple has been a pretty strong gainer this year. what we needto see to watch for. shery: lots of earnings this week. busiest day second of earnings this season by market cap on the s&p 500. right now, investors focused on that fed rate decision, pricing in a lower rate as beneficial to the market. not being seen as a sign of an economic slowdown. in the 500 moving opposite direction to the fed fund future yield. the bottom panel showing a

correlation between the two are breaking down. all eyes on the fed and economists predicting a quarter-point cut for interest rates, but president trump says that is not enough, telling reporters today that a small rate cut will probably do little to counteract actions by europe and china to ease monetary policy. kathleens now is bostjancic be a great to have you with us. despite that markets are expecting a rate cut this week, we continue to see stronger economic data. if the fed is so data dependent, do we need this insurance cut? it is true, domestic economic activity looks firm and resilient right now but you have very big global headwinds. particularly europe is slowing, manufacturing sectors really feeling the brunt of trade tensions, slow down in global and trade flows. that easily can spill over to the u.s. economy the of the

manufacturing and trade channels. that is what the federal reserve is concerned about. usingall it insurance because we may not need it, but they will do it to ensure that. we have zeroed in on chairman jay powell, but when it comes to the various members of the fed, do we know how much consensus ultimately there is on what kind of path forward should be taken? i think most of the fed officials are actually behind the idea of a 25 basis point rate cut with powell leading the charge. we may have a few dissents. we have heard from the kansas city president george, boston president rosengren that they may have some reticence about cutting rates. but even if you had one or two dissents, the idea that a mini easing is appropriate, is what the markets are expecting. and most fed officials are on

board with. all about what we expect on global headwinds and that is what the fed is past july,bout, this how much will depend on what happens in a trade war between china and the u.s.? kathleen: i think there is no easy resolution there. we heard from the president this morning, priming the atmosphere for the idea that there will not be a big trade deal done. even if there was, there will be medium to long-term issues that , and will continue to be headwinds, dampen global trade flows in which feeds back through the economy. i think it's an ongoing issue. when we look at some of the market forces, what the fed ultimately does based on what the market expectations are, how much does that ultimately consider into what they decide to do? if there is an expectation of outsized rate cuts in the

market, perhaps a disconnect with the actual thinking right now? kathleen: for a while, the market was flirting with the idea of a 50 basis point cut at this meeting. that is very unlikely. 25 is the consensus. beyond that, the message that fed chair powell and the policy statement said, is what is most significant to the market. the markets are basing their expectations of 100 points of rate cuts by let's say the end of 2020. so it is a lot less big into the markets. the risk if the fed does not deliver that, there is a risk for resetting of bond yields in the market. shery: what can we expect in terms of the balance sheet runoff? kathleen: we think they will stop in early. they said early september. just for optics, it will not have much policy meeting to stop an early. it would also get in line with the fact that they are cutting

rates. both seem to be moving in the same direction. cutting it short a few weeks will not have a big impact on policy overhaul. since we are watching all the headlines on trade, what will you be watching to determine if this ongoing uncertainty on the trade front truly leads to economic weakness? when we can hope for at best is that they keep talking, that the communication lines are open. for a while, they were shut down completely. that is the worst outcome for the markets. thinking there will be an immediate deal, i think even the expectations in the market have been reset not to expect that. keep hearing the communication lines are open. if there is another round of tariffs, or the threat of it, that would be an even worse outcome. shery: where are we in terms of financial conditions? the last time we saw the fed make that dovish turn was after

that huge selloff in the fourth quarter. where are we? kathleen: financial conditions right now are quite easy. that is in large part because the market is expecting pretty significant rate cuts by the fed. the fed iss if necessarily following the markets, it seems that way, but that is a risk if the fed does not follow through completely. you could have a backup in yields. that will not happen in the near term. our expectation is they cut rates but are also pretty dovish in the message. not necessarily ensuring a rate cut, but certainly leaving the door open for september and possibly more beyond that. before we go, right after this fed decision, we get a fresh jobs report. will that be a balancing act for the fed as well, if there is potentially a strong jobs report coming this week? kathleen: typically, one month's report should not have a huge bearing on the trajectory of

monetary policy. i think that will be the case again this time. ironically, fed chair powell did call out the report which was weak, in terms of payroll growth. i think that was a mistake. hopefully, in the press conference, will stay away talking about months of data, and look at the overall big picture, overall domestic economy, what is the chance of a spillover effect from abroad. jon: thank you very much, kathleen bostjancic. bloomberg television will have coverage of the fed decision and chairman powell's news conference tomorrow starting at 2:00 p.m. eastern. a senior hacker responsible for 100 million people's data breach in the u.s., another 6 million in canada.

she admitted to collecting social security numbers, names, dates of birth from capital one customers. she emailed the banks, notifying them of the data breach. for more, let's welcome in our guest. this is really concerning. if the tipster had not told capital one, perhaps this breach would have never been found. >> great point. the banks all have different programs, they are called bounty programs, where they encourage hackers around the country to breach the system to find vulnerabilities. it looks like in this case, it worked out and they were able to figure out what the hacker had found, traced it back. piece. very interesting it was another hacker who exposed the malfeasance. there are so many of these

data breaches we talk about now. what do we truly know, regardless of what a company says about what ultimately happens to that information once it is out there? jenny: capital one says the data breach in this hack has not been sold or used in malicious ways, but honestly, it is kind of a mixed bag. in some cases, you see it pop up on the dark web, where other criminals can buy it and use it. we saw this similarly in 2018 with equifax. that data never made it to the dark web. it is not clear how those hackers have monetized the data, per se. based onlike everything we know between the lawsuit filed in seattle and capital one's statements, this hacker, paige thompson, has not monetized the data. it will be interesting as

discovery happens and lawsuit progresses, if that changes. unique about this breach, it was not directly on capital one security but more about the cloud computing storage services they used. tells about this link. consideredtal one is one of the bigger leaders in terms of its adoption of cloud technology, at least in terms of banks. they think the technology will really change the way that banks do business. all of the data that was hacked was stored on a server they rented from amazon web services. so what will be interesting to slows down adoption in terms of cloud technology in banking, if this is something regulators decide to take up. it will be something that we are keep an eye on. jon: just to follow-up on that, are you hearing that in your own conversations with other players in the financial community, about whether they would take a

pause on any of the cloud transition because of his high-profile example we are talking about today? jenny: we have already had some banks who have been reticent. ,ank of america has been public that they are not huge fans of the public cloud, that they prefer a private cloud strategy. it will be interesting in that is what we see more banks going toward. capital one has been vocal about being on the public cloud, thinking that technology will cost, helpave on them move faster into this digital banking world. it will be interesting to see if other banks take this as a cloud -- sign that the public cloud is to public, but there is also the public-private hybrid cloud. we will see in those grow in popularity because of this. jon: thank you very much, jenny surane, with the latest on the capital one story. coming up, an exclusive interview with huawei's

chairman. why he is warning u.s. sanctions will do more harm to u.s. companies than two huawei. this is bloomberg. ♪

shery: this is "bloomberg markets." i'm shery ahn in new york. jon: i'm jon erlichman in toronto. sales growth dropped her medically in the first half of the year amid u.s. sanctions. tom mackenzie sat down with an exclusivity of you with the huawei chairman. they discussed the role huawei plays in the larger trade dispute. we don't know when the u.s. will make a decision on android,

and when that decision will come. do we have to make preparation for our products? we will evaluate our strategy for the overseas market. if we are not able to use and join for our new smartphones, we have the ability to develop our own operating system and ecosystem to become the basis for our services to the customer. >> give us a sense of how fundamentally you have had to change or supply chains to mitigate some of these pressures? have you completed his changes, is there more to be done? entity list put into place by the u.s. was disruptive to our supply chain as we had already made plans to use the components from the u.s. for our business. but u.s. supplier suddenly stopped supplying us, so we had to make adjustments to our ourly chain including purchasing, manufacturing, and

delivering our products. we will do the adjustments to our supply chain, change to other suppliers, and use our own chips for the core components. i think the damage to the u.s. suppliers is even bigger to huawei. we will have to manage our workload and continuity, but the damage to the u.s. supplier is direct as they lose a customer. frome u.s. removes huawei the entity list, that would be a solution. as far impact do you see as demand for your 5g equipment as part of the pressure campaign by the u.s. and its allies blocking access to huawei? >> although the u.s. has been launching a campaign amongst its allies, it is up to each country to decide its partners based on its own development demand, telecommunications demand and carrier infrastructure demand. i think there may be some impacts in places like australia, but there are others whirling -- willing to work with huawei. shery: that was the huawei

chairman speaking exclusively with tom mackenzie. i'll be speaking with the huawei security officer later this week. you don't want to miss it. coming up, apple reports its fiscal third-quarter results today. all eyes on its upcoming iphone launch quarter. we have a preview next. this is bloomberg. ♪

jon: this is "bloomberg markets." i'm jon erlichman in toronto. shery: i'm shery ahn in new york. apple reports fiscal third-quarter result today but all eyes are on its forecast for the fourth quarter. for more, let's bring in john butler. we have seen a slowdown down in the smartphone side of things. people holding onto their phones longer. what should we focus on as we head into these earnings results?

john: the following a big time apple in my view. june is not a big order for them, it's all about guidance, in my mind, for the december quarter which we would get asked quarter -- next quarter. what we typically see out of them is a september iphone launch but they also promised to this content launch coming in the fall. they have not picked down a date, but the fall to me is september, october, maybe november at the latest. i really want to see what is in plus, appleple tv channels. june also provides a great read on how apple can do in a quiet period. not everything is going right, right now, so right now it is a great snapshot of how they can perform when the wind is not necessarily at their back with new product. the what are some of

numbers you will look to to get questions?those me know in the case of apple, they want less attention on every iphone sold, so they are moving away from sharing the data. what data do you look for to see if the transition is going well? john: the nice thing is they now provide a breakout of products and services which gets them back to before, but they also give the gross margin for those segments. servicesatching the growth as well as the growth in the accessories business, wearable, home and accessories. together, those two divisions make up over a third of apple's revenue. time, that, over will pick up any slack in the iphone. i'm also looking for at the margin performance in the services business. as we continue to see the china-u.s. trade tensions escalate, what are we looking to

in these results from apple to gauge the impact that this could have on their results? is about 20% of apple's total revenue, so a big deal for them. they are navigating a very tough year, up against strong growth quarters last year . so they are facing toughcomps, and they are facing the trade war. two quarters from now, december or later, they will be lapping easy campomps. i will be watching china to hear what they have to say about underlying demand trends, how they are managing through the difficulties there. keep in mind, things get easier a couple quarters from now. obviously, a company generating an awful lot of cash.

to say moreng shareholder friendly things with all of that cash they hold? john: they have always said distribution of cash back to the shareholders is a top priority to them. we will see what they have to say on that front. jon: a helpful preview, thank you, john butler. a preview on the story of apple. you can catch all of our interviews on the bloomberg with the function tv . this is bloomberg. ♪

mark: i'm mark crumpton with first word news. the air force general undated to be vice chairman of the joint chiefs of staff is denying

allegations of sexual misconduct. he appeared before the senate armed services committee day. a senior army officer has accused general heighten of subjecting her to a series of unwanted sexual advances in 2017 when she was one of his top aide . >> i am intensely aware of the allegations made against me concerning one of the most serious problems we have in the military, sexual assault. it has been a painful time for me and my family but i want to stay to you and the american people in the strongest possible terms that these allegations are also. -- are false. mark: the hearing also had statements of support from martha mcsally, arizona fighter hast and senator who publicly described her own sexual assault. round two of the eric paddock presidential debates in detroit. 20 presidential hopefuls will square off on cnn. tomorrow night will feature a rematch