to cut costs. -- gianni's, not carnations. good morning, this is "bloomberg surveillance." we are live from our world headquarters in new york. it is tuesday, october 7, i am tom keene. joining me, olivia sterns and adam johnson. >> overnight, german industrial output drops the most since 2009. that is a key point because that is the exact same headline i effectively conveyed yesterday morning. >> it contracted -- >> like gurus and experts could overcome by events. you wonder where this leads to a november and december. >> in japan, it leads to more stimulus because that is item number two. bank of japan reiterating $550

billion here in stimulus. pedal to the metal. jolte u.s., we have the job openings coming out at 10:00 and consumer credit at 3:00. those are secondary reads on what is happening. yum! brands, the owner of talk about the pizza hut -- >> don't they do a lot of china? you wonder, can they get to the restaurant given a protest in hong kong? >> two thirds of yum! brands sales occur outside the u.s., much of which is kentucky fried chicken in china. they open a kentucky fried one every day in china. >> it is an amazing amount of chicken. at how much we talk about chicken in china. >> that is because of the burj khalifa. samsung earnings cannot on lower, down 66% galaxy smartphone sales. this is the head of the iphone

6. treasury secretary le speaking 8:45. economyw about president obama in new york for a fundraiser, stay out of midtown midafternoon. don't go shopping at -- where do you go, bergdorf's? >> what makes you think i have time to go shopping? >> because we're a very early. >> president obama goes out with the cool kids downtown. >> fair game. it is nobel prize season. do we have the details on the physics? has that just been announced? >> it looks like three japanese physicists. >> really. yesterday, three doctors were awarded the prizes in medicine. led lighting, is that with our focused on? >> much more on this. lighting? -- i a hockey road trip

missed -- lamda. " in led. >> i think it is light emitting diode. >> it is a fun week when we see the mobile -- nobel laureates announced. we will do that in a moment. let me do a data check. the futures, negative 7. zero gets my attention. 1.25 97. you wonder when that will truly break lower as we are seeing with so many moderately prices now. that off the german news that adam mentioned. brent crude under 90's speaks volumes. minerals and hydrocarbons a general, threatened. crude 92.21. gold got a pop yesterday, but still migrating.

here's the tension in germany. yields come down over the last -- excuse me, 18 months. >> it takes our breath away, doesn't it? >> lower down toward 0%. germany during the japan coming at the economies are really a similar -- dissimilar. >> very dissimilar. i am blown away. i know we have been talking about this for months. . german 10 year under 1% the swiss tenure as under 50 basis points. it is just shocking the implosion we have seen in europe. >> that is when of the back stories to the imf meetings. >> is it a safe haven asset? >> there it is. let's look at the headlines. >> in europe, waking up about concerns of a. also concerned about the prospect of ebola. a nurse in spain has become the first face of ebola infection

outside of africa. she had treated a priest who died of ebola last month. he had been working with health workers in africa. how workers in spain are trying to compile a list of who else this nurse came in contact with. president obama speaking yesterday pledging to boost help .or those he sees this as a top, urgent national security -- >> at the head of the cdc could so we're going to contain it in texas, but how? >> think of what you just said, olivia. this nurse in spain treated someone who had been exposed to ebola. that was a month ago. god knows how many people a nurse would come in contact with over the course of four weeks. i don't be to be an alarmist, i'm just saying -- >> that is all very true. , yet toe voice of calm keep in mind this is not an airborne disease. a lot of public-health officials in the u.s. would keep you in

mind that there are a lot of airborne diseases and you're only contagious with ebola's ones you have already -- once you've already developed symptoms. we'll have much more with a professor from columbia. >> what else? >> yesterday, the first monday in october. >> did you see the harry winston on the cover? is that a front page story, jewelry on the cover? >> i'm not sure it is big enough. >> i would say it is a sign of the times, back to advertising seven-figure rings on "the new york times" that is a boom economy. >> monday in october means a new term of the supreme court. the court rejected calls for nationwide ruling on same-sex marriage that lets gays marry and knows many as 11 worst -- gays marry in as many as

11 states. >> what does this signal about the rest of the session? >> the two a cases the business will be looking up for the rest of the session, the issue with amazon workers, whether or not you should be paid for the time it takes to get out of the building. remember, they're going to do security checks it takes a half hour to get out. amazon workers want to be paid for that. >> and the supreme court is looking at that? i did not know that. >> antidiscrimination case. you have to prove the banks were discriminating against minorities and not giving them loans, which is hard. >> another discrimination angle ,s dealing with two cases, ups does it effectively need to exempt women corporate from lifting heavy boxes or is that discrimination? a number two, abercrombie & fitch, discriminating against the woman who wanted to wear her full --

>> hijab. >> thank you. >> this makes my eyes glaze over. noah feldman of bloomberg field is sad less. -- fabulous. >> there are some great stories on bloomberg politics. smartphones. a few problems and samsung third quarter fell 60% because of shanking profit margin. samsung getting hurt by apple. the chinese competitors are also worrying samsung with low-cost devices. gt advanced technology make sapphire screens, essentially, a lot of rumors going into the launch of the iphone 6 of the whole film was going to be made instead of what the gorilla

glass but the sapphire glass. >> sapphire glass is harder, but more expensive. >> there is our front page this morning. interesting front-page. the nobel laureates in medicine and physics, he took a trophy and gave a speech in stockholm. university,k stanford, joins us now on our greater economics. i would like to talk about the future of your european union. you spent a lot of time in italy. you have a real visceral feeling for this. how threatened is the european union experiment given disinflation and economic slowdown? >> is a pretty serious threat. italy is integration -- is in deflation. germany is in a tough neighborhood. it is receding. they have a growth engine in asia, but it is also slowing down. the european union is in for

pretty tough time and that is the best possible scenario. >> let's bring up the charts. german industrial production really shows the abrupt plunge down, not like the crisis, but nevertheless, getting back to economic slowdown. what is the spence prescription less for brussels, but for the leadership as they go to the imf world bank meetings? for that matter, to the next g7 meeting? what does a merkel to or along come just to jumpstart your forward? >> mario draghi, there is a grand bargain where the ecb with --man support drives down raises inflation and drives down the euro, then these countries -- and it varies from country to country -- get on with their reforms. in italy, we need a major fiscal our non-debte

liabilities are telling us, pension systems, and we need structural flexibility in the economy. the story changes from country to country, but that is the deal. this is important. if these countries get on with the reforms, then the eu can a form to engage in fiscal stimulus. italy,prime minister of happy, happy, smiley faces came in here, what was the pharrell s ong? sing it for me. >> no. >> forget about the politics, smiley stuff. ---ichael spence, ning what does it mean? how do you invest in human capital and house that necessarily helping europe with its deflationary problem? >> so every country, including the united states, has

challenges for the skills and job readiness in the mid to lower half of the income distribution. that is because the labor markets moved away because of globalization and technology. and europe has that same problem. the additional problem in much of europe is the youth unemployment rates are just astronomical, 40 plus percent. so you have to simultaneously get the same people ready for jobs and get rid of the impediments that are on the structural side to creating the jobs. >> in other words, were you only have 34 hour work week or you can't fire someone, just let it go more free market? >> absolutely. reforms were instructive. you have to free up the structure so stuff goes where it belongs -- eastern europe, asia. >> spain is made a lot of labor reforms and they're still

dealing with 25% unemployment. >> but they're starting to work. spain is starting to show growth. multinationals are starting to invest there. the other thing that is hard to expand to the general public is, these reforms are important and they won't fix things overnight. >> very good. dr. spitz is here to explain to us -- >> a noble laureate on the same day were getting nobel physics prize. our twitter question of the day -- >> coming up, rio tinto fires back reports like glencore may be eyeing a possible takeover. we will bring you the last word on what would be the world's biggest mining company. this is "bloomberg surveillance." streaming on your tablet, your phone, and bloomberg.com. ♪

he is always interesting. this morning, carlos slim. the question from mexico and 9:00 a.m. this morning with betty liu "in the loop." is "bloombergthis surveillance." city.come you to new york with me, olivia sterns and adam johnson. bolivia gets up a shovel and start sticking. >> rio tinto rejected a merger approach from glencore. the acquisition would have created the world's largest mining company. the deal bears a slight scent of desperation. the price of iron ore has collapsed this year. when core could be hoping to sweep in a by rio on the two. matt campbell joins us live from our london bureau with the latest. describe the strategic rationale. >> good morning.

this is, for i didn't glaze and bird, the big deal. this is what he is rumored to be after for a long time. xstrata aafter buying few years ago, has basically every metal and commodity and scale except iron ore. rio is enormous producer of iron or if you buy when the price is low, potentially you get a lot of resource for not too much money. relatively speaking. >> the current state of play is there's no current talks. is that correct? >> that is correct. this initial offer was rejected, however, as we have reported, glencore is laying the groundwork to go back at rio tinto. they reached out to the chinese company that is the largest shareholder in rio. i think this game has a long way to run. >> what are some of the potential break in between obstacles? this would be the second that

the merger for glencore. they combined with extra added to the tune of $40 billion. what would the opposition be? >> mountains and mountains of paperwork. many millions of lawyer hours, lobbyists, you name it. this would be a huge issue. the chinese government was certainly want to weigh in on any deal like this. we could expect significant reviews everywhere else, to. >> when you look at the charts moving from the upper left to the lower right, what is a level of microeconomic panic a rio tinto, bh become a for that matter, glencore? they have got to be desperate at this moment, aren't they? >> particularly, those your dependent on iron ore. look, iron has gone done much more sharply than other commodities. it depends on construction in china. that is where it really goes, because it goes into steel. real tinto is something like half of its revenue from iron ore. costs -- can they

clear costs on the income statement? >> that is a very good question. you have seen in the share price that there's a lot of investor skepticism about rio tinto's prospects. they have been slashing costs as much as they can and say they're going to do so further, that they are in a very tough business right now. >> the big issue, now that the deal talks have gone public, that will mean this will likely have to go hostile. pay a would have to pretty chunky premium, something is not likely willing to do. >> i remember the meetings. >> matt campbell, thank you for your time. >> it is a guaranteed sure thing. talks while we were speaking with our gentleman there, i looked up iron ore, down 40% as opposed to copper down only 14%. coming up in the next hour, jeffrey sachs of columbia's earth institute will join us as guest host, talking climate change and we have to ask him

about ebola. our twitter question of the day -- this is "bloomberg surveillance." streaming on your tablet, your phone, and bloomberg.com. ♪

>> good morning, "bloomberg surveillance." politics? let's do a morning must listen. >> this comes from the new team launching the show yesterday, had mitt romney on as the guest. they asked him, as you'd expect, what about 2016?

jeb is an excellent person and could be a terrific president. i think that about a lot of the people who are ruining -- running on the republican side. my guess is you will see 15 people or so on stage of the debate. among those people we will find some who catches fire, who it makes the interest of the republican base, and you will see someone who can go on to become president. i am not running. i'm not planning on running. i got nothing new on that story. >> yet 15 people on stage, good luck trying to put that -- us, theel spence with lawyer from new york university and so much of this as demographics. it is changing, brought demographics coming economics. it is a different america than governor romney is used to. that's absolutely. there's a group of young people. they're very very different view

of the world. there were born after the cold war ended. remember that. they use social media to do many things -- >> to win elections, as well. >> it is a completely different world. people my age are out of it. >> i think back to some of the -- >> did you see how he looked at me when he said that? remember when mitt romney was running and he said brushes the greatest threat to the u.s. and everybody thought that totally aged him and he was a relic of the cold war. today, i imagine it would be much more popular stance. question about it, it has been quite a summer. do you feel like america is getting more politically engaged as we go to 2014 and 2016? look at the turnout we had a scotland.d in >> otto good about this. the american economy is doing ok. it is performing below its potential, but the thing i look at that is encouraging, if you and ask, to years

what extent is the debate focused on the underlying real problems? the answer was, almost not at all. now there's a real conversation going on and these are hard problems, so it is an desk isn't surprising we have a found the answers yet. >> coming up later today, the second episode airing here on bloomberg tv at 5:00 p.m. eastern. >> brazil has an election. we will look at that. good morning, it is "bloomberg surveillance." ♪

>> it is a gorgeous new york city. good morning, everyone. the sun rising later and later every day as we staggered toward the sweet spot of autumn. in the distance is the waldorf-astoria, owned by the chinese, at least that was the announcement today. 47 stories tall. it is the top. >> it is the big kahuna. >> this is called porter, olivia. >> will the president keep staying there when he comes to town? >> he has to stay there because of a train underneath. when the train idols, is all this in the angelina jolie movie --

>> it has its own train station. >> if it is in an angelina jolie movie, it is probably true. >> they come down and was the president away. anyway, let's get to our top headlines. flush this thing out for a little bit. you're the details. interest group has agreed to pay children worldwide 1.95 -- what is it, $2 billion. is it really? that is a lot of money for a hotel. on park avenue, 1200 rooms, you know the details so let's move on. general motors acknowledges 24 deaths in connection with this defective ignition switch mccourty to updated figures -- related to updated figures. time warner shedding jobs at

turner broadcasting. 1400ompany's total of positions. it is about 10% of the total workforce. trying to improve profitability. turner operates cnn, tnt, and cbs. quotes roughly 10%. huge cost reduction. let's look to brazil. shock of the election of the week and. present was not only filled world cup team come also field economy. in 2008, our guest michael spence led a growth commission and suggested resell -- brazil could barely get by. it is the ultimate brick conundrum and all of this with a key presidential election coming up in two weeks. michael spence is at new york university. what do we need to know about the result this morning -- brazil this morning? >> brazil had a huge amount of

inequality and potential social unrest associated with that. they're devoting significant rebalancing, to bring the bottom end up, to educating properly and so on. part of the price of that is there under investing. infrastructure and other things, and it is slowing down the economy. >> explain the polarity of these two parties in the runoff, and dilma rousseff, more socialist like -- i say that loosely. how polarized is brazil when you look at a map of north and south? tom, it is nots, that polarized. there isn't a huge football field of distance between these two. it is a matter of balancing the growth agenda and things that supported as opposed to the sort of what you might call the inclusiveness agenda. >> the story seems to have been the same for decades.

everything time hit on, the growing middle class, natural resources. it is still so poor. is it really just inequality? >> it is a fair amount. i know it has huge amount of inequality, but is that what is holding the country back? >> think what is holding them back -- as is true in all cases, the slightly obligated, but part of it is focusing on the distributional issues at some cost. india does the same thing. india puts a lot of money to the rural areas, but their payments to people who are poor as opposed to building infrastructure and roads that connect them to the economy. >> help us with the distinctive feature of their economics. the monetary policy where they say we're going to control the currency, capital flows. they usually domestic self-contained economy. why are they different from america in the middle class? what is the difference there? >> first of all, per capita

isome, you know, whatever it -- it is a middle income country. $10,000 to $12,000, or something like that. it is in economy that has benefited when the resources were booming and has now headwind, so the type you talked about before -- >> at the end of the day, australia or canada, they are resource-driven. >> that is an important part of it. this is controversial. the other part is, that a very open capital account and they are slow to intervene when the rest of the world is in a distorted state. we have monetary policies that are extraordinary. in japan and the u.s. come until recently, and even now, and now in europe. you have to defend yourself, or you can put the export sector out of business. brazil has a tendency to be a little late to notice there's a wall of cash coming in. >> they are the country that

coin the phrase "currency wars." >> this goes to stanley fischer who really reviewed what happened in 1998. which speaks to, you have to get on these problems quicker. >> a professor in 2008 it is on review. result, one of 13 countries, that had exceptional growth for 30-year period. is that part of the problem? there's a legacy of exceptional growth and it creates a void after it slows? >> yes. result is a very unusual case. in the postwar period for 25 or 30 years, they grew admirably. for reasons nobody completely understands, in the late 1970's, everything what wrong. hyperinflation, that management, turning inward, a dictatorship. they came out of that in the mid 1990's under president cardoso. took over- then lula

and that a pretty good run, now it is not anywhere near as bad as it was in that 20 year period from 1975-1995, but it is slowing down and they need -- >> the pendulum swung one way on growth, radically the other and it is trying to find -- >> exactly. >> and fairness, the 1970's were bad for many economies, not just fashion. you said dilma is likely to win a second round. she got more than 40% in the second round -- in the first run, will she do anything different in the second round? somee is probably learned lessons or she will be a better politician. >> and managing the economy? >> i don't seem thing dramatically changing. i guess i hope i am wrong. lot for granted from brazil. let's get the photos. >> we're covering a lot of ground. number three, the two ladies in arlington, virginia who were

just married, exiting the courthouse. i believe there are the first same-sex marriage couple in arlington county, virginia. in marriage is also legal indiana, you talk of obama, and wisconsin -- utah, oklahoma, and wisconsin. >> it was a shock yesterday. the sophisticates on this case were stunned. by this announcement. >> the supreme court. >> i think it is lovely. you saw couples across the country rushing to get married who wanted to. >> god bless. pro-democracy protesters gathering on a street in a part of hong kong, but significantly fewer numbers. you can see there. granted, we're taking this photo down a street level, so you don't get up high does see the thousands. michael spence, where he recently in china? >> i was, i was in hong kong on sunday when the tear gas with

off. >> were you protesting? >> i was not. >> what did you observe? >> a large amount of young people on the streets. it was extremely civilized demonstration. >> this is a different regime now. what is your view of where we are in six months or one year given that tension between beijing and the people of hong kong? >> i think it will find a way to compromise so that the next 2017, this group of 1200 will pick the candidates. i think will be a wide range of candidates. i think and hope that beijing will not use a heavy hand in screening them so there's actually a real election. still with candidates that beijing can live with. >> beijing was criticized for being too heavy hit it with a tear gas. >> that is an important distinction because those weren't troops sent in by

beijing, he was hong kong authorities. the tipping point was going to be of beijing sent in their own guys. >> and if beijing was pulling the strings -- >> are they going to use tear gas with the management of the new york jets? >> they need to do something. >> are you even paying attention or are you just reading? >> i am doing both. our last photo, please. >> off the jets. muslims are offering prayers in new delhi. this is marking the end of the you 2 billion muslims from around the world. it ended yesterday. quite an image, isn't it? >> reading about this in henry kissinger's new book "world order." saudi arabia is the keeper of islam. >> the home of the two holiest kingdoms. enough about the kissinger book. a great overview of how saudi iats in with sunni and the sh

as well as iran. eric, well done on photos. how does yourme, just getting started. hs as guest host for the hour to talk about climate change and ebola. also, our twitter question of the day -- we want to hear your thoughts. treat us. this is "bloomberg surveillance." streaming on your tablet, your phone, and bloomberg.com. ♪

>> good morning, "bloomberg surveillance." i am tom keene with olivia sterns and adam johnson. let's get to top headlines. >> prosecutors contemplate a move against deutsche bank. "new york times" says the was may push the banks to plead guilty after accusations of interest-rate rigging. they also say at least one paper likely charge of currency minute relation. prosecutors are looking at whether deutsche bank -- libor. morgan chased j.p. come also made attempts as were but apparently, they were unsuccessful according to "wall street journal."

several institutions said they saw traffic from computer , but did- addresses not believe their systems had been breached. the cyberattacks on targeting jpmorgan of change the wake second of think about hacking in general. this is according to a former homeland security secretary. he is now the chairman of the chamber of commerce national security task force who was interviewed by our very own tim fox. >> i think there is been a significant sea change in the attitude of a lot of the executives. i think it is understandable. i thing many of begun to understand we have a lot of electrons flowing all around the world. that can access -- can access. there is brand risk, so many your system.s and you need to take a look at your digital infrastructure and the cyber breaches, not as a technology problem, but as a business risk. >> you can watch the full

interview with tom ridge on taking stock at 5:30 p.m. right here on bloomberg tv. this is "bloomberg surveillance." >> i want to share my morning must read. this is the corporation for depressed development. talking about savings for college -- i find that fascinating. tom, you ever in a bunch of checks for college. it starts early, right? if you start saving $500, then another $100 come you can get -- >> i will go there. with this, michael spence from

new york university. i'm going to get nyu is somewhere in the vicinity of $60,000 he or. if we priced the college you knew and the great privileges at oxford, i'm sorry, we're priced any college -- we priced any college out of the middle class existence. >> i think that is right. i think it is a serious problem. if you combine that an earlier stages with problems in quality and the public schools, who can afford to escape for the children? we have a problem that flows over into this intergenerational equity. >> the quality state schools -- full disclosure, michael spence built stanford's program. the way the basic schools is the idea of working your way through in 2014.s hogwash to me and i've talked to barney frank about this, this is a

fundamental issue. fact, thetter of president of yale university with your body your ago and i asked him, why is it tuition has gone up two to three times the rate of inflation? he said because of demand. >> but the president of barnard was on. she was lovely. she starts in with the scholarship thing. i'm like, i'm looking over -- >> the cost of college to russian also includes access to a five-star jim, pilates machine, perhaps speaking fees to see matt damon. >> i slept on a cot with glass the cosbyening to records. it was a terrible, terrible, arduous task. >> i think you could cut the fat. my degree cost one third of what it would cost at columbia. are different. >> there was no gym.

>> no gym at lsu. >> still to come, more money blowing into the startup scene from venture capital firms. are we on the edge of a bubble? we will discuss next. this is "bloomberg surveillance." streaming on your tablet, your phone, and bloomberg.com. ♪

>> this is "bloomberg surveillance." with tom keeneon and one olivia sterns. with the millennial market story for you this morning. this is a good one. --low the trumpet, tom. florist illumination with poker winnings. announced today, another 5.6 million in funding. we will have this conversation and figure this thing out. you, dave, what took you from winning the world series of poker to effectively wanting to bring together a bunch of florists from mainstreet around america? >> are you insinuating that is not a natural transition? my background was in professional poker. i've been pretty successful at one point.

i have been ranked as high as number two in the world. in 2008, i won one of the world series of poker golden bracelets but i did not want to spend all of my time in the casino. i would to the university of wasago and my cofounder talking to local florist. it wasn't until he came to us until he realized how big of a pain point this was and we figured we could use the university of chicago and its resources to bring this to reality. >> see basically wanted to disrupt business. andrew parker of smart capital joining us from boston. you are the guy who is writing the check. i understand the concept now, but what is it that convinced you and others to write seven-figure checks? was really impressed by the quality of the team. i think david and the third cofounder greg, had a really deep knowledge of their market and enthusiasm for the problem.

-- product. they feel for the florists in this industry, want to solve their ability to get online distribution. i love the quality of the product, as a user personally. also when i speak to florists, the feedback they gave me, boat economic deal -- both economic deal of losing a platform and quality of product in terms of their experience of these interface is just terrific. >> andrew, i would to bring an arsenal best chart today. onlooking at the anonymous into venture capital. despite high valuations, investors continued to funnel significant mass capital into their startups. a total of $59 billion has been invested in about 53 had her deals globally in 2014, about 60% more than the same time last year. obviously, it seems money is growing on trees in silicon valley. if a kid out of college can turn

snapchat intuitively dollar company, everybody wants to get involved. given the environment, are you finding it hard to find projects that you think are fairly valued? >> no, i see no shortage of deal flow. i think violations over the last , call it four to five years at the stage at which i invest, are up maybe 20% or something like that. i think later stage fight russians are up more than that. that is driven by -- i think later stage fight russians are up more than that. that is driven by cops as public markets basically traded her light for the same amount of business that causes later stage valuations to rise. i think there's a desire to be in the kingmaker, the breakout, when you see these really large venture rounds for companies largeber or airbnb

violations of the grudges or by the desire to be the kingmaker company. >> it is fascinating to hear the numbers. david, i would hear more about the story of bloomnation. ofre showing pictures beautiful flowers. the next time i want to send olivia flowers, nowhere to go. what do now to take that six main dollars and built the business of sending our to sell flowers anywhere in the country? ofwe just continue the scale the business. andrew is a part of our seat fun and that was to get the political concept, now it is to going to bring more internal people to go ahead and build the mobile app. we're entering the wedding and event space. to bring the best floral talent. as you purchase through bloomnation, you are actually seeing the real arrangement. >> that is huge. i'm excited. you have to promise me one thing, he will try to eliminate

babies breath. i can't stand it. thank you. >> michael spence, thank you. dr. spence will continue with us. 126.uro well under stay with us, it is "bloomberg surveillance." ♪ . .

>> this is "bloomberg surveillance."

>> german industrial production plunges. is europe in jury session? tinto-- bhp and rio scramble to slash costs. and the urgency to confront ebola in west africa. good morning am everyone. this is "bloomberg surveillance." we are live from our world headquarters in new york. it is tuesday, october 7 heard i'm tom keene. . our guest host, jeff sachs. let's get to our morning brief. here is adam. >> overnight, german industrial output dropped the most since 2009. stimulus of $550 billion a year. here in the u.s., economic data, to numbers, the jolt jobs out at 10:00, and earnings, yum! brands after the close.

.amsung earnings fell few items of note -- treasury secretary jack lew speaking on the economy and washington, d.c. at 8:45. president obama in new york city this afternoon for a fundraiser. do not try to drive in midtown. nobel prize for physics was announced earlier this morning. we want to point out three japanese scientists won for led lighting, which is all about efficiency. there you have it. >> a nurse in spain has been a first-person to be infected outside of africa with ebola. health workers are trying to compile a list of people she came into contact with. president obama has pledged to boost screening for affected air passengers. an iconic new york city hotel gets new ownership from china. it has a great to pay hilton worldwide $2 billion for the

waldorf-astoria. it is one of manhattan's a signature properties and features more than 1200 rooms. time warner is set to shed jobs in its turner broadcasting division. turner'sbout 10% of global workforce. time warner says the move is part of a broader initiative to improve affability. turner operates cnn, tnt, and cbs and has about 14,000 full-time employees. those are your top headlines. >> we welcome all of you worldwide. this is a rare treat and what "bloomberg surveillance" has always been about. michael spence is with us and from columbia university jeff sachs. to have jeff sachs and spence together is an iconic moment. in acrity the other day speech in georgetown and in my conversation with her, michael, as you mentioned, the new normal, the new neutral from the formally known as pimco crude, mediocrity is about subdued economic growth.

do we need to be that pessimistic? to medium run, the answer is yes to a few of head ones -- is a yes. you have headwinds in china. >> and jeff, you and your book, you have been way out in front on this debate. relative has been a locomotive, but on an absolute basis, the u.s. has challenges. household median income has done nowhere for 20 years. is abouterm growth long-term investment and we're not doing it right now. there is play of opportunity for good growth, low carbon energy, new sustainable technologies, but it is not happening right now. we do not have the leadership or the direction in the major economies right now. >> of the two of you are a link to another time to you started with john hicks at oxford. >> and with michael spence. >> and i might add with michael spence. when the two of you look at

modern economics, how does modern economics and solve this need to get out of mediocrity? how do we go about it, michael? >> i think jeff is exactly right. we need leadership that convinces people that you cannot build a future without investment and without -- >> yes. hardheaded realistic meeting of the challenges. >> and this is the chapter that larry summers talks about an "ft" today. called ais something free lunch today in the "financial times," writing that for every one dollar you spend on ever structure, you get three dollars out. real interest costs are below 1% in the u.s. and much of the over herlized world rises of up to 30 years. infrastructure investment action makes it possible to reduce burdens on future generations. would agree we

need infrastructure. jeff, what are we waiting for? >> because everything is so short-term. when larry was imbibing the government, the obama administration in the early years, they did not go for long term strategies, they went for short-term stimulus. they did not go after the deep problems are dime glad larry a thing as right now, but frankly this is after the fact. we went for short-term tax cuts, very keynesian remedies. >> cash for clunkers. >> i think mike would agree -- we have both been writing that a lot of the problems for example, the stagnant wages -- are structural features of the economy. you not help structural challenges by short-term measures. >> professionaor spence? >> agree. underinvestment hampering growth, which would help on the employment front, , let's not -- look

be too pessimistic or the best american economy as it is structurally flexible, so the right sector is adjusting pretty fast. but we need very heavy investment infrastructure, education, skills, and other things to try to bring the lower half of distribution but up. >> i would add not only flexible but incredibly dynamic technologically. every day, every week brings new basic scientific breakthroughs, and that is pretty quickly translated into technology right now, but we army entering. we are not -- but we are meandering. we are not using these technologies for the most supportive things, for changing the energies, designing a new if a structure, for building an economy that is sustainable, addressing climate change p or we are kind of wandering around without clarity. >> or even i.t. and public health. >> all of these things could be done if we choose to do them. in fact, we have lots of

applications on the health side that are being deployed right now on the ebola front. there are so many good things that could be done. >> here is the thing -- both of you have effectively used the same phrase -- "structural challenges." i would like each of you to identify the structural challenges. choose the biggest one in and fix it appeared michael, could you go first? >> i will leave climate change to jeff. that is pretty serious, but setting aside, the biggest structural challenges best thought of as a long run, dis- equilibrium in the labor market. the labor side of market because of globalization and technology moves away from where the labor force was. >> i want to wrap up the script feared this is alan krueger on a friday jobs report. this is critical to her to are you suggesting alan krueger is correct and there are two american labor economies? >> yes. >> absolutely. >> the politicians want to say it is one america and all of

that your you write about this excessively, jeff, way out front again on a bimodal america. we've had a huge structural shifts. the jobs are not there for middle skills and middle skilled workers are driving out lower skilled workers and this is again not something that aggregate demand is going to manage. this is globalization. mike wrote some seminal articles on this. it is also technological change. robotics, artificial intelligence systems, all good stuff, but it is dramatically changed the labor market and therefore if you go with the old-style, we have to do stimulus, short-term tax cuts, we are never getting to the crux of the matter. that has been our problem for years. we do not want to talk about the -- >> here is the question, michael spence, nobel laureate, what does the economist fixed for this two-sided jobs market? it is really not an economist

problem. i think economists, you know, alan krueger, jeff, joe, others, there is disagreement, but broadly we have identified the problem. >> but can you identify a fix? political comes in economy or what it takes to sort of convince people we need a different vision and a different path, and then pay the price of getting on it. let's be honest -- if you invest more, you consume less, right, at any point in time -- p because it there is finite or x because there is finite amount of income. you are either spending and enjoying now or investing in your kids' future. >> as we look at the election 2014 at 2016, what leadership we need from a to term near lame-duck president? what can president obama do to change the dialogue to 2016, and for that matter to 2020?

>> i am sorry, i will be a little downbeat too late -- >> exclusive -- sachs downbeat. [laughter] >> of the administration has always been ok on the rhetoric of investing in the future but it has never shown how to do that financially, what the fiscal policies are, and it has never taken the time to actually do the planning that is needed. it is the same with larry summers. and now -- >> where were they when we needed to design infrastructure programs? it does not happen in an op ed. it requires some actual work. >> thank you so much for being with us today to it we will continue. twitter question of the day -- which global challenges can economists best solve? ♪

>> good morning, everyone. "bloomberg surveillance." spencechs and michael with us. olivia sterns with us, adam johnson as well, and we look to the continuing crisis that is ebola. confirmed thehas first case of a bull outside of west africa. our guest host for the hour is jeffrey sachs, working to help one of the hardest hit countries. thank you for staying with us.

yesterday, we heard president obama speaking thing this was an urgent national security priority to it how confident are you that the u.s. is prepared, capable of preventing an out break in the u.s.? >> we are absolutely capable of preventing an outright because this is not a disease that transmits a super rapidly and if , that on top of the game patients that come in with symptoms from west africa are ebolaptively tested for and then there is contact tracing for people they came in contact with and the adequate screening is done both for people leaving west africa coming to the united states or arriving in the u.s., this can absolutely be controlled. >> so you're not worried about how break? >> well, i'm worried because we do not do things very well often, but this is not a four-minute epidemic in the air. in youring of malaria paper from 14 years ago, the economic burden of malaria, i go

to your work and bill easterly's work at michael spence's nyu, can you at least find common ground that ebola is so serious that we have to pony up millions of dollars to contain this in west africa? >> well, we certainly should and right now there is about $1 billion on a table. the question is to deploy appeared i'm telling governments -- spend, spend, spend. do not delay to this is a disease if left with lack of treatment has a doubling period in west africa of about 20 days right now. if there is basic treatments, basic contact tracing, basic diagnosis, not only do and the doubling period, but you bring the epidemic dramatically under control. this is an epidemic that can be controlled if you put the resources into it. >> speed is what is crucial here. through your working, what have sort of -- have we

completed phase one of the crisis response or are we nowhere near there? >> i think it has been amazing that the last six months a been very lax in response. these are poor countries. they need help or if they need equipment. they need financing. it was not there. now it is starting finally p or i think president obama has stepped up wisely to get the u.s. military support actually for facilities and structures. >> jets, thank you so much to michael spence, thank you tiered good morning, everyone. it is "bloomberg surveillance." ♪

>> good morning worldwide. it is "bloomberg surveillance" this tuesday morning. i am tom keene. adam johnson decided to show up. olivia sterns as well. jeff sachs from columbia university is with us and bill nichols at cantor fitzgerald. here is olivia. >> samsung electronics big drop your the world's largest smartphone maker saw offering profits plunge 60% to $3.8

billion of that lost ground to apple and chinese competitors. same-sex shares are down 15% samsung shares are down 15% this year. an offer was unanimously connected by rio tinto's board. a newlmart announces sustainability initiative. the "new york times" says the retailer wants to reduce the environmental impact of the food it sales. in its plan includes reducing the overall cost of food and increasing transfers about how it is produced. >> very good. adam gets us started on the markets. nextwant to intrude is our guest. bill nichols runs international trading at cantor fitzgerald and focuses on flow, who is buying, who is sailing, an selling and .

we've seen multiple triple digit days per where is the pressure greater -- on the up days or the down days? >> on the down days recently. with the market making new highs, 4.5%, a little bounce rally come in on the rally it seems like hans are a little bit more muted. you see more volume. >> your view right now is we put in the top and we cannot necessarily dissociate ourselves from what is happening in europe and the rest of asia. >> of the headwinds have been there and have been there with the rally as well so you cannot say you cannot rally. i think with earnings season coming up, if people get comfortable with the third quarter and look to the fourth quarter, you might see us make new highs, so really it is a choppy sideways market and i think the downside. >> bill, i visited your wonderful trading floor on

september 11. it was wonderful to be there and supported to you guys are lit up like a nasa bunker p or you have every computer going. are you guys any smarter than you were 20 years ago? >> i think we are trying to keep up. 20 years ago you had a pat on your desk and a little screen and things refreshed slowly, but the markets kind of act in a similar fashion then as they do now. >> people are enjoying a losing money -- >> you are still buying and selling, up and down, as much as they did 20 years ago. [laughter] the technology allows you to keep up and impressed your guests when they come on charity day. >> that was a "surveillance" break -- nothing has changed. tohow many guys does it take do the job of 10 traders 10 years ago? good point. there are definitely fewer bodies doing the same amount of work. i think with technology and a downward pressure on rates, however, volumes have decreased as well, so you have to look at it that way.

things move very quickly. yesterday, a couple of stocks we have volatility, all the sudden a down 10% move, you stop trading and there was an electronic stop in the name, there were about 10 halts of trading at about a 15-minute period. >> jeff sachs with us, your colleague with us really thought a lot about efficiency and information transfer. how do we connect main street back to wall street? we have missed that. >> we have done very good to get into the nano seconds, but whether we have done well at connecting to the years and decades is another matter. >> to behaviorally the american culture. >> we have got american trading capacity and if you look at trades per broker right now or per trader, it is unbelievable what has happened technologically. how are we doing in terms of investing in a long-term? that i think is where we are failing, and that is not a matter of our trading

technology. >> bill, you've said long-term probably five times in 20 minutes, that is your theme and we are not doing enough of it. >> because when you look at the longer term, we are going over the cliff in a certain ways. i have focused a lot these days on climate change because we have a major global climate change negotiation in 2015. climate change is an issue of changing the energy system over a few decades. how do we get the attention, the focus, the politics behind that? so far we have failed incredibly even though the science everyday is telling us panic. climate there is no change, there are 40,000 walruses on mackinac island. >> absolutely. they're looking for lantern we had that photo on the show. >> you think of the gulf between main street in wall street and throughout the recovery you have been watching and chasing bottom-line growth. it is not trickling down to what you are watching. because the main street

challenges require a different kind of approach. they require a government that can function, which we don't have right now. it requires taking a view of theral years ahead, and part is the certain things are working extraordinarily well. the technological development is great, but we are not building on it to solve the human part. bill, let me ask you the real question -- what happens to a world when rates go up? >> rates go up, it will be a challenge for the market. >> it is going to happen again. >> i think people really don't know. if rates go up slowly in a moderate fashion and stop, we'll be fine. if they over fling as they often do, then -- >> what are you more worried about? too soon or too late? >> there is no right answer p or i think the fed will be a little bit slow about raising, so they

will be cautious. that is better for the market. >> how come only "surveillance" can do this? jeff sachs from 60,000 feet, bill nichols on the trading floor. we will be back. it is "bloomberg surveillance." ♪

>> good morning heard this is "bloomberg surveillance." i am olivia sterns. it is time for company news. general motors announces the 24th death in connection with its nation -- with its ignition switches. a total of 165 families now claim to have lost a loved one in accidents caused by malfunctioning emission switches. gt advanced technologies and saw its stock price fall more than 90%. the company makes sapphire glass used in some apple products. heavily indebted to apple which it relied on for 80% of its anticipated revenues for 2014. amazone tax trouble for

purity european union commission will open an investigation into the tax arrangements in luxembourg. the process could begin as soon as today. that is the latest company news. >> this matters now to our guest host jeffrey sachs at columbia university and the earth institute. walruses. is counting he got to 10,412. there are some 35,000 on the shores of alaska. they will starve unless they get food. they cannot get food because there is not ice to hang onto. there is no ice because of climate change. it is cyclical. here we go with another issue, and i understand there are pros and cons, jeff sachs, each way, but it is right in our face. why can't we get any kind of policy response going? >> first of all, the science is clear despite the continued drumbeats that basically is backed by oil and gas lobbies, so this is one of those issues where the science goes back literally 190 years. it has been worked through --

the first calculations of what the doubling of the carbon dioxide would bring were made in 1896, and they were on track. --wednesday institute in which institution is going to jumpstart this? we cannot look for exxon mobil to jumpstart this debate. basically, the u.s. government and the chinese government, china now the number one emitting greenhouse gas and meeting country in the world by far, twice now what the u.s. emits per year, and the united states number two. between them about 40% of the world's omissions. need to agree now behind the scenes that by the time we reach the paris negotiations in december 2015 we have a serious agreement. >> how can paris be different from the collapse of copenhagen? everybody says copenhagen was a failure. what can we not do at paris that we did a copenhagen?

>> one is that china has to be there in a full way with the absolutely is committed because without china doing this, the world is not going to be able to do it. that is different from copenhagen. that was not yet set. year after the copenhagen debacle, the world agreed on a proper standard -- keep the warming below a two degree celsius or a 3.6 degree fahrenheit limit. we should build the agreement next year around that recognized a greed limit. -- agreed limit. that means deciding how to phase out carbon-based fossil fuels, set the timelines, and have the major economies, that is china, the united states, european union, and others, agree on pathways to eat decarbonization. >> jeff sachs and rand paul, jeb bush, mitt romney, whoever on

the republican side -- howdy you advise them to address their constituency? >> well, they just have to take a look and it would be good for the constituencies also. if it is jeb bush, florida is going to be devastated. >> they will have walruses in florida. >> exactly. it is already being hit by rising sea levels. >> and look at louisiana as one example. >> this is a case where an honest look at the options i think and bring people around the table. the problem is we started the wrong way. we started -- are we going to tax, are we going to cap and trade, not are we going to change our economy to a low or near zero carbon economy, which is absolutely feasible. >> jeff sax with us from the earth institute, columbia university. >> time for a quick data check. germany is having a impact on markets as we look around the world. obviously volatility spiking up.

crude oil is down, gold futures are down. the problem is german industrial production fell the most and to the lowest since 2009. this is the second day out of germany of bad data. futures down 67 points. >> good morning. this is "bloomberg surveillance." i am olivia sterns here with tom keene and adam johnson at our guest host for the hour, jeffrey alum universities earth institute and bill nichols, head of international trading at cantor venture world. tim gardner takes the stage in federal court in d.c. -- 10 geithner are -- tim geithner takes the stage and washington, d.c. peter cookspondent joins us. >> i think tim geithner or is going to have a more challenging time on the stand today than his predecessor hank paulson did yesterday. for twowas up there

hours by and large defending the butbailout as a necessary distasteful thing that he and others did not want to do before the sake of the u.s. economy it was necessary back in 2000 hp or he made the case that the government did and pose a harsh deal on aig shareholders, which is a sickly the argument that hagel greenberg is making in this lawsuit that it was too harsh a deal. to get ad geithner lot more questions because as head of the new york said he had a lot more direct response ability for this deal and a lot of details were decisions made directly by tim geithner find the litigator to after him over some of those specifics because that is the crux of their case. hank paulsonching walkout from the testimony, you could almost feel he was visibly been broughtving down there to be grilled on a bailout that he feels rescue the american economy to what was the mood like in the court

yesterday? eithnerthink g will be annoyed? >> i think it will be a safe bet that hank paulson wanted to be just about anywhere else in the world except on the witness stand yesterday having to relive the financial crisis. he believes and what he did and what others did at the time were necessary decisions and he also said he had respect for hank greenberg. but do not want to opine on why hank greenberg is taking this case to court in this way. his argument to hank paulson was when companies fail, the shareholders pay the price and in this case it was the aig shareholders who should pay the price, so you could tell the hank paulson felt pretty confident that what he did was the right thing. the question is whether the court of law will agree with him. >> peter, very interested in your thought yesterday on the bombshell supreme court announcement. andeard from greg stohr,

i would like to hear from you, how surprised were you? was surprised to one of the people of course who argued the case of the supreme court previously is that david boyce was in the same courtroom. i do hope to get him in the hallway but i never had the opportunity. this is a big decision, tom, and not just aids where this is going to move forward with the fact that the issue is still out there, that it is still out there heading into a midterm election raises some questions for republicans, who have been opposed to the notion of gay marriage, so this was a surprise that the supreme court did not finally resolve this issue once and for all. it is still lingering out there. it is a political, legal issue. it is not going away anytime soon, but it is pretty clear after yesterday's decision where the road is headed. >> peter cook, thank you so much for for the record, i do not feel that hank paulson felt annoyed at your inquisition. >> he told me the weather was good in chicago.

>> peter cook, our chief washington correspondent, thanks so much. >> olivia, news just crossing the tape. that is a very simple headline bertelsmann increasing -- bertelsmann increasing its stake in penguin random house. there are four telecom carriers -- accounting firms, there used to be eight or we will consolidate -- >> il nichols on wall street, how many investment banks are there going to be? i think we can count it down to fewer than 10 that actually matter. >> it is an ever shrieking environments, but the fact is there is still a place for the niche company. fits that mold. when time goes by, you look like you were lit packard in the tech space -- you look like hewlett-packard and the tech space to the pendulum splits and people start splaying up her >>

animal spirits, how strong are they were now? >> i say medium. x understood. when we come back, we will talk about ebola. as we have been saying, it has been spread to spain to that is an issue with disgust right here on "bloomberg surveillance." ♪

>> you are watching "bloomberg

surveillance." i am adam johnson with olivia sterns and tom keene. coming up in the next hour, betty liu is going to host carlos slim, the second wealthiest man in the world. barely behind bill gates. they are neck and neck. that he, this is a big deal, anytime you get a guy of that caliber to come on the show, i want to hear what he is going to say. are you going to ask him about the at&t-america movuile deal? >> yes. he is selling off $17 billion with of assets because the mexican president has instituted all of these are forms including breaking up his struggle hold extensively on the telecoms market will get right down to business, adam. mention the world's second richest man or does he go around thinking that? $80 billion. >> there is only one person above me that is richer than i and that of course is bill gates. onlyll be talking not

business but also he obviously spends lots of his money on charitable causes. that is certainly one area that you know quite a bit about, jeff. one thing he is doing is partnering up with maria shriver's brother, anthony shriver, and the two of them are going out and asking companies, requesting companies to hire more people with disabilities. this is an issue that is deep to his heart and an issue due to the kennedy family as well as so they will be joined with anthony shriver to talk about this. talk about this, jeff, carlos slim talks about that he feels he is different from a buffet or a gates where he wants to put his money into job creation, so he will not put ors into fighting malaria other diseases, even though he finds those reputable causes. he says he wants to put his money into job creation strategies and foundations. >> that is interesting. i work with him on something

called the broadband commission, which brings together leaders of the i.t. industry worldwide, and he is very much about business, how can you help get startups in low income countries but real business in that sector. public-private partnership a realistic goal? are there good examples of that actually working, jeff? >> yes, it is absolutely essential and even when you come to questions like disease control, like malaria, you have no bar to shift. you have other big companies, working together with the public sector on providing private sector solutions alongside the public sector financing, so it really make sense and it does work. >> betty, i'm excited to get his thoughts on mexico in general with all of the new reforms, liberalization of amex, the state oil monopoly, and now the breakup of america movil, he is going to have so much money to go shopping with.

it's not just at&t in the u.s. a telecomust bybuy across america. >> that is true. he has resisted breaking up is companies for so long, but the thought actually zoomed -- the stocks actually zoomed up after that announcement. >> "in the loop" comes up right after the show. >> please tweet us your thoughts. it is our twitter question of the day -- which global challenges can economists best solve? we want to hear your thoughts. we'll also get our guest host, jeff sachs, to weigh in. ♪

>> good morning, everyone. tomorrow on "bloomberg surveillance," he knows more about modi economics than anybody else on the planet, jagdish bhagwati what join us on his india. enthuse about the changes to her to look at that and our 7:00 hour on bloomberg radio and bloomberg television tomorrow. this is "bloomberg surveillance." i am tom keene to with me jeff sachs of columbia university earth institute. william nichols also with us from cantor fitzgerald this morning as well. and this is futures -7, dow futures -58.

gentlemen, let's dive into a discussion here of this u.s. economy. illness goes, i want to talk to you. the bread ground of your -- bill talk to you.nt to the animal spirit is back at berger goodman. the animal spirit may be back at harry winston as we were talking about earlier, but it is not there for the rest of america. when you go to work today at cantor fitzgerald, do you feel a different animal spirit? >> one is the markets and the other is the segment of the market, so the markets themselves, you had a big run, made new highs 2.5 weeks ago p are you have now sold off a little bit and are in no man's land. you feel like the market is getting more rational. the second part of your question is the difference between the low end, mid and retail and high end. high and is doing really well in the segment continues to do well. a lot of things talked about on the program today is how do we bring the average part of the

economy up. those are really long lead businesses that take a long time. base is yourond etf desk. that is a lot about retail, isn't it? how is your exchange traded funds desk doing? >> they have a lot of different businesses. a lot of international, flow of funds between countries, fixed income is very important. the hyg's are very important. so that is going to be one of the important factors. >> and the original question -- can we manage our animal spirit? very good. can we manage our animal spirit, or does that just happen by magic? >> i think the u.s. has the animal spirit and we are not doing too badly on the overall macro for front right now. job growth is there, a lot of

new technology, but we have a divided economy, we have a bottom, which is not recovering. we have wages that are's fragment -- that are stagnant, we have structural problems that we are talking about. the challenge is not so much the animal spirit but focusing on the structural changes. >> he see that in the earnings numbers, bill, i want to get your gauge as we get into earnings season. last season, we saw earnings on average about why percent -- about 5%. what is your take on what we're going to see in about a week? >> what i'm hearing is a little better topline. whether we get that a lot we will see but a little better topline performance. companies have been doing really good at managing the bottom line . we look continue to do so. they outperform when they announce, so i think that will continue. the question is with a slightly stronger economy starting to grow, certainly not hitting on all cylinders, but slightly better topline third >> looking

at the nation on all cylinders, here is a morning must-read, 5:00 p.m. last night, this on the uproar over leon panetta's book. he has held so many positions. the later president bush got criticism from former advisers, as a president clinton, but this level of disloyalty is stunning, is softened it has sof with praise for president obama's intellect. this from dana milbank. jeff sachs, this goes to the heart of your search for presidential leadership, doesn't it? >> there is not a lot of happiness in u.s. foreign-policy right now. everybody is staking out. it was not me, it was the president of course, whoever, and that is what panetta is doing in this book, obviously. >> is this a president that did not hold executive position before hand, came quite from a legislative branch position? do you make a big deal about

that? he was not the governor of a state or did not run the trading desk at cantor fitzgerald. >> that would have done it. i think there are issues about executive management, but when it comes to foreign policy, it really is about international experience, and he had indeed very little of it. the world is changing very fast. >> he arguably had the most experienced diplomat around, hillary clinton, on his staff. >> i do not think it added up to any clear policy. we are seeing a lot of things unraveling right now p are a lot of loose ends and we do not have a direction right now p are we are bombing in a lot of places but we do not have the strategy. >> there is also an oblique in the -- an op-ed in the "wall street journal" from john mccain thing we should be taking out a ssa. d. >> that is why president obama is referring to it as isil, islamic state in the

levant and set of isis, which includes a syria. >> shouldn't the experience of libya show us -- >> jeff, do you want to weigh in? our policyre to inside syria is incoherent but i would say senator mccain saying go after assad is the wrong thing. we have been doing that. we did not have a section for a side. -- for assad. no one could or should. to break up radical groups like isis, that has been a problem all along, it also broke up the capacity to have a common front at the u.n. bias trying to topple the syrian regime. if we stop that, we would have a way to confront isil. i have not read what mccain says, but -- >> you are saying exactly the opposite, and im with you.

>> it would not be for the first time. >> we will continue this discussion tonight or do with all the respect, josh earnest, the newly minted white house, will be in conversation with john ou how pert -- with john halpert. we go to the imf meeting come in front and center as you mentioned at the top of "bloomberg surveillance" this morning, two days in a row of tepid german economic data absolutely front and center and the combination is toxic chemistry of disinflation, tepid economic growth, and a search for a spirit. >> we will get to christine lagarde -- >> the new mediocre, but policy momentum or lack thereof, as jeff sachs has talked about, and also multilateralism. will we see that in europe?

>> i think back to a few years ago and so long the european governments worker decides for not pulling in those belts on spending and other. criticism is likely to be that they need to spend more .e. >> we do need investment-led growth, not concepción-led growth and we need an international perspective on that. maybe this meeting will bring us someplace. >> tom, you have got to go get to radio, all 6'5" of you. >> that is a rumor. >> get a shot of him as he stands up he or he is 6'5". >> on my agenda, today, adam, is ebola. a spanish hospital is monitoring to suspicious aces. jeff sachs, you are working with the obama administration on this. you say this is not an airborne disease so you're not as worried. does the obama leadership show the leadership necessary and leaving the global fight against the virus? >> he has stepped up importantly

in the last couple of weeks and this is the best hope right now. if the united states is putting a lot of resources -- other countries need to do the same, and especially on the ground these resources need to be translated into control measures in liberia, sierra leone, and guinea. if this is done, this is a controllable epidemic. that is the bottom line. this epidemic can be controlled your >> and you are working with the government of guinea. you are advocate for more funds to be sent. others say they have nowhere to put the money. >> i would not say that. countries with very weak health systems, but they can be scaled up quickly. that needs to be done. that is what we will be working with the government of guinea to accomplish. >> good luck with that. we wish you well. here is what is on my agenda. president obama is here in new york. i was joking about avoiding the town, but actually he is doing fundraising, we will let you know if anything serious comes out of that. we want to say thank you to bill nichols for joining us from the

trading desk over a cantor fitzgerald and of course the professor jeffrey sachs of both columbia university earth institute, u.n., we can go on and on. olivia, you and i get to go get a quick coffee break and we get to jump back into appeared betty liu comes up momentarily. ♪

>> good morning. we are live from bloomberg world headquarters. we had a huge guest this morning.

slim wille carlos join me right here for an exclusive interview. we will ask the second richest man in the world about a potential breakup of american movil -- of america movil. and, his undying love support of the clintons. as walt disney and time warner triple their contract payments to the nba, my exclusive interview with espn president dansk effort. -- john skipper. another sign of trouble in europe past biggest economy. juran -- german industrial production fell last month for the most since 2009. rio tinto has rejected a merger that would have saved the world's biggest mining company. plungedarter earnings sa