walmart. and banking in india. the head of one of the country's biggest banks talked about the economy that may be growing even faster than china. stephanie: will come to "bloomberg ." i'm stephanie ruhle. boy, did you have a big day yesterday. stephanie: i had a big day with the presidential front-runner, the one and only mr. trump. david: i cannot wait to get to that interview, frankly. i want to introduce matthew winkler. thank you for being with us, as well as mark halperin. respect," the afternoon program. great to have you with us. we want to start with vonnie quinn. benie: volkswagen appears to

feeling the impact about emissions test scandals. than thew slower entire market, and vw's market share was the slowest since march. turkey says it shot down an aircraft that was violating its airspace. according to the turkish military, the aircraft crossed into turkey from syria. the turkish television network says the aircraft was an unmanned drone. in southern california, 700 vehicles are stranded on a freeway after a flash flood caused a landslide. it happened on interstate 540 miles north of downtown los angeles. no reports of injuries. it could take 24 hours to clear the road. now for a check on the markets. here is matt miller. matt: we are looking at futures that are little changed right now, but we're headed for a third weekly gain. the s&p is going to gain about half a percent if it closes out at this level at the end of the day.

in china, asian markets are at an eight week high right now. the shanghai composite was up 1.6%. it is going to finish the week out 6.5%. big gains, the biggest week in shanghai since june. -- at look at my germinal my terminal, and you will see what futures traders are betting. a 30% chanceg at of the fed raising its rates so far by the end of the year. by march, 53% chance. that is the first time we get over 50% as far as fed funds are concern. take aconcerned are a look at the dollar index coming down for three weeks in a row. today, a little bit of gains, but the bigger term picture, if you back it out a little bit, the dollar has come down, down, down. stephanie: now we have to move withth my interview

presidential hopeful and republican front runner donald trump. i sat down with him at trump tower in midtown manhattan. with the state of the u.s. economy and if he shares the view of one of his outspoken performer -- outspoken supporters, carl icahn. donald: janet yellen is keeping the interest rates so low that the next guy who takes over as president can have a real problem. this lownterest rates is a political thing. when they get raised, perhaps as the next president, you will see some bad things happen. stephanie: is janet yellen failing? donald: i do not know if she is failing, but she is a very political person. what she is doing -- and i am sure that it is with the blessing of the president, because he does not want a

recession or worse in his administration. so she is keeping interest rates here,et him get out of let him go to my golf courses because i have the best one in washington. he is going to play golf and somebody is going to suffer. i am a developer. i developed property. i am doing the old post office. i pay almost no interest. i am not complaining from my own standpoint. it is great. but at some point you have to raise interest rates. stephanie: is it too late to raise them, though? donald: they're trying to put the recession into the next administration, but that is not fair. stephanie: it is day one, you're in the oval office. who do you want as your treasury secretary? donald: i do not want to say because that would be insulting to a lot of folks. carl icahn is a great business leader.

there will be $400 billion trade deficit with china. if i put carl icahn in charge, that $400 billion which shrink so fast. stephanie: except he really does not want the job. donald: it is not a job. believe me, he will want to do it. stephanie: elizabeth warren wants absolutely no one from wall street anywhere near washington. donald: it is called leadership. stephanie: let's talk about hillary clinton. we talk about who is to blame. people love to lame in the last crisis on the financial industry. hillary and other candidates are coming out swinging. she says we need more regulation, double down on stocks. donald: worst thing you could do. a disaster. stephanie: at this point, what is that going to do?

donald: she has a problem. she has a maniac on the other side. stephanie: bernie sanders. donald: yes. he is a socialist/communist. i said that in a speech yesterday. he wants social security for illegal immigrants. he wants education for illegal immigrants. he wants drivers licenses, everything for people who are not even legal in the country. he wants free education. anybody who wants to go to school, you get free education. all of the stuff is going to cost trillions of dollars. trillion, $18$17 trillion. hillary is getting dragged so far over to the left or it i watched it the other night and it was embarrassing. it is a part of it. dodd-frank is a disaster. i will tell you one thing -- i know the banks. they cannot loan money. i have friends who are calling

me up and saying can you give me a recommendation for a bank. the great developers and business people -- unless you have more money than you want to borrow, they do not want to loan you money because the regulators are running the banks. let's say you are running the united states of america. how do you get smart regulations? where do you get the money to put them into place? donald: let's talk about money. we have corporate inversions. it is a disaster. one subject will be all the companies leaving the united states for two reason stash lower taxes -- for two reasons , and they have billions of dollars outside the country and they cannot get it back in. i have money outside the country and cannot get it back in. it is not only the taxes. we have to file all sorts of forms, the government bureaucracy, to bring money in. you have the republicans and democrats who all agreed that

the money should come in. they cannot agree. everybody agrees they cannot get the money back in. stephanie: there you have it. mr. trump. mr. winkler, what stood out to you? of the 10 largest companies in the world by market cap our american. that is a reflection of the strength of the economy. the american banks are in great shape. by the way, janet yellen has so far in 15 months administering the fed the lowest volatility in the markets. that means the markets have been more stable under janet yellen than they were under bernanke or greenspan. greenspan was there for 20 years. bernanke was there for quite a period of volatility. things are going very well under janet yellen. i would not be too concerned. stephanie: things are going well under janet yellen?

matthew: you are seeing the lowest volatility under janet yellen than under any fed chairman since alan greenspan began in 1990. david: what about the facts issue that matt raises? 's donald trump in a different class in that regard? >> he would not be in the first tier of specificity, but i do not think he would be alone in the bottom tier. we all have a challenge now with mr. trump going forward. he has to be scrutinized, has to be asked hard questions like stephanie asked him. he has to be evaluated the way matt evaluated him. but we have to look at the reality of where he stands in the polls. it is going to be a challenge for us in the media and for voters to say, is that what they want, is that what republicans want in the nominee? the tendency rather than to give

details, leadership, criticize other people. whenanie: is it realistic he says carl icahn does not have to be a treasury secretary? are you kidding me? carl icahn as a private citizen -- take a look at this. is that honestly going to happen? of a the imponderables truck -- of a trump presidency -- the government will run in a lot of ways that a lot of us have not seen before. stephanie: could that be why he is doing so well? because people are saying i want something so different? sayingit is clear he is a lot of things people want to hear. when you accuse the chairman of the fed of making political decisions in collusion with the president, that is a pretty

serious allegation. matthew: it is totally unfounded and he needs to be challenged on it a b gilly. and he needs to be challenged on it immediately. fargo, based in the united states. the: not explicitly part of barack obama/janet yellen conspiracy, off on the side. we will have to scrutinize everything he says going forward. you have a political cycle where a lot of the media polls the voters. your nominee is probably going to be somebody named bush or clinton. is thatreality of that we do not want another bush and

clinton. we think there are more choices than that. we are going to take somebody -- we do not care about their lack of specifics, about their contingency -- about their tendency to make conspiracy theories. tofar it is a stronger hand play than saying my name is bush or i am a governor or i am a senator. stephanie: more people are listening to john kasich. chris christie said he likes john kasich. i asked trump a bit about his tax plan. donald: we are going to lower taxes. money is going to come in. we are going to get rid of the massive tax with corporate inversion where only a desperate person would bring their money in because it is ridiculous. we will have trillions of dollars coming back into this country. -- we going to a lower are going to lower our taxes and it is going to be a great thing. like ait sounds

wonderful thing. did you have a sense sitting there with him -- besides the i saysm -- and may blustery -- does he have a command of the material? has he thought these things through substantively? sayhanie: i guess one could , has he thought them through? has anyone else standing up there at the podium? if d.c. was not in this situation it is in, we would be more suspect of him. but the fact that we are in such disarray with nine people at the podium -- you start to get excited. what do you think? matthew: you are talking about political disarray. let's talk about the economy. what is the best performing economy in the developed world? the united states. that gets skewered by all the trump isthat donald giving it.

the united states is getting stronger by the day. peopleor a lot of rich it is. the macro numbers are great, but if you look at household income, the cost of college, people's distrust of big institutions, america is doing great for a lot of people, but for a lot of people there is short-term and long-term frustration. matthew: the american consumer today has never been stronger. the unemployment rate went from 10% to 5.1% and it is heading south in 2016. david: but the message may not be getting across. matthew: it is not getting reported. mark: but with household income and people's pessimism about the long-term outcome for their kids , there is not much to the strong numbers you're talking about. david: these debates become more of a business matter than a political matter. now we have a threatened boycott. because between donald trump and

ben carson, the two of them are saying they want to show up. it is a one-off. it is not a weekly program for any of these networks. the revenue is not that big. it is more about perceived -- do you think time warner is counting on that revenue for their bottom line? it is about bragging rights for a network to have it. trump and carson do not want a three-hour debate. standing for three hours is hard to do. i think they will get their way. the sponsors will have to back down. there will be a two-hour debate with opening and closing statements. think mr. trump knows how valuable he is. the media coverage is around the fact that donald trump is a showman, and he knows it. he loves the fact that the price

of 30 seconds has gone from $4000 to $50,000. he says, "i and the money man who brings those dollars in -- " i am the money man who brings those dollars in." david: mark halperin, thank you so much. matt, i hope you will stay with us, please. questions foryour the head of india's largest private bank. up next, economic minds came together to examine the role between firms and income inequality. on "bloomberg ." ♪

welcome back to "bloomberg pimm: the state of nevada gaming control board the games are gambling and

need to be licensed. five states have outlawed them now. chinese e-book commerce company alibaba has offered $2.6 billion u, which is youk referred to as the youtube of china. alibaba already owns 18% of it. delivering video contents to more than a third of china. warning of an unprecedented decline in earnings next year. they may close some stores in the u.s. we are going to talk income inequality now, particularly the role between firms and inequality. we were joined early this week by peter orszag. now we're joined by the president -- the chair of the president's economic advisers at the white house. aboutked very briefly income inequality and he comes in with a different view.

tell us what you found. >> within income inequality, there are two schools of thought. one is people are paid for what they produce. because of technology, because of education, some people can just reduce more and they get paid more. another explanation is a lot of it has to do with institutional structure and bargaining and power, and that would observe that a janitor of a successful company like goldman sachs will more than a janitor from a smaller company, even though they do the same thing. the second is that there is difficulty explaining the phenomenon because things have not added up in a school of thought. peter and i, instead of looking at the economy in aggregate, we looked at businesses. some are super successful,

paying people more and more at all levels. some are less successful. they are paying everyone less and less, and that dispersion may be one of the important keys. david: what is an example of one that is doing well and one that is not? : most businesses were making 7%, 9% per year. now many are having returns of 10%, 20%, 30% per year. you see that in the health industry, in check -- in tech. it might be innovation, ideas, but it is at the same time the economy is getting more concentrated, that there is more market power. david: can you estimate how much of the growing income disparity points to this?

jason: i wish we could. we are trying to get a conversation going that says instead of looking at the economy as a whole, let's start looking at the firm level and understanding what is going on within firms. stephanie: so what do you do about it? and i bothave and run companies in the same industry. he runsy i run hp and apple. apple is doing better than hp, so they are going to pay their employees more. and the more talented people would go work at apple and the less talented people would go work at hp. jason: if you want to give someone advice at the individual level, you would say to someone in the media, go to work at bloomberg. everyone can try to pick the best company. we cannot all work at the best company, so then the question is, what do you do about it? part of what is going on is

market concentration. then there is more vigorous antitrust that is part of the answer. part of it is something that you just cannot solve except for a more aggressive tax system so everyone can share in the benefits of the most successful. david: what is your initial reaction? matthew: i was thinking about two things as jason was speaking. people'slicy and preferences. then i was thinking about two states -- california and new york. california and texas, to make a comparison. when you look at california and -- thatou find, so companies domiciled in california -- there has been a consistent performance according to data compiled by bloomberg. texas, you would have thought, because it is creating so many jobs, would be outperforming

everybody. but companies domiciled in texas are mediocre compared to those in california and new york. what is the difference? the companies in california -- we mentioned a couple. apple is one of them. they are high-performing companies, investing in the future, constantly thinking about innovating. the companies in texas go to texas because it is cheap to operate and cheap to do everything. that is where i think there is maybe a convergence. stephanie: i want to talk about walmart. they have been dominating the news. walmart originally provided this safety net of cheap goods for americans. ,hey produced them in america sold them to americans. now you are taking the cheapest profit -- the cheapest products possible and selling them here. has the walmart effect disappeared? jason: that is a topic i looked at earlier in my career.

i have not looked at it lately, but i think businesses like that play an important role in our economy. you need to look at not just the job side but the consumer side and what the price consumers are paying, what they have access to. that also works if consumers have purchasing power. consumers have purchasing power if they are paid more, and that is one of the challenges we have. stephanie: jason, thank you so much. .ason furman matthew winkler is staying with us. guess what -- it is friday. time for the yearbook game. this stylish a man -- this stylish young man graduated from dewitt high school in the bronx. who is he? ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.

david: i is a typist then and i was rooting for the mets and that was happy because of the slide. stephanie: oh, the slide. the euphoria on these guys, i am thinking david, remember david? we thought it would buy a stake of the mets and he has to be pretty excited about this. it has taken a mets fans a long time. david: welcome back to "bloomberg ." we will have the ceo of the largest bank of india. still it does is matt winkler. stephanie: fairweather friend of the new york mets is now a fan. david: we'll go to vonnie quinn. headline,e deadly

some of the other stories. turkey says it has shot down a thrown else violating the airspace. drone isnality of the unknown. earlier this month, turkey accused russian jets of overflying their borders. in central texas, wildfire has destroyed about three dozen homes. what he miles southeast of in 40 milesople southeast of boston have been urged to evacuate. died.an diplomat has he was the canadian ambassador to iran to hit the six americans at his residence goodman 1979 hostage crisis. he persuaded the canadian government to issue fake passport. his exploits became the subject of the film "argo." he was 81. stephanie: did you see "argo?"

i loved it. david: a heroic figure. stephanie: ironic figure from bloomberg, tom keene is joining us. what are you reading this friday? about tipreading income. matt winkler used to improve my expensive and i remember matt winkler's editor-in-chief in chief going, how much did you tip in london? of tipt bloomberg view income is supposed to be declared on your taxes, but i know this will shock many of you. their portion of the payroll tax allows service to enjoy a healthy dose of tax-free income. the benefits of this tax arbitrage have been disappearing .ue to credit card usage this is of the deal between new york and london, where is tipping going to be in the coming years? david, i know you usually tip

30% said this is a big deal. a soft hearte has and urges me to tip, but what struck me is we have been a little bit held down by greece and the fact that there is so much of the economy off books. this has been going on for a long time. matt: there really is a double standard when you think of the rhetoric about greece. all you have to do is look in our backyard and you find bigger examples like this one. they are not going to go away, unfortunately. stephanie: is it that big of a stick of our economy? we are talking waiters and waitresses. tom: i used to be one long ago. iwas a later and all that -- was a waiter and the basic idea is you get the base pay and the ships on top and the taxes click it is all of a sudden, good part of our service economy.

we need that second or their jobs to get by. anyhanie: i never saved money because you walk out with a giant wad of cash. matt miller was a waiter and you always spend it. matt: a bunch of singles. 30% of the economy under the radar, so i think it is a much bigger portion of their economy that is the black market. the issue for me with tipping is this removes incentives for them to do a good job because if you pay them all the same thing, then the ones that were bad are essentially getting an increase of the ones that are good are taking a pay cut. my experience is the fact that service is included does not mean you do not tip because typically in europe, they expect something on top of whatever they include in the bill. tom: i am baffled by it. they love americans as a general rule and restaurants in europe because he or big tippers, but i would suggest along the lines of about, atis talking

least in new york, if you repeat at restaurants, there is no question the waiters now get you better service. daniel myers is leading the change on it and it is fascinating to see where we will be in five years. a, matte: tom has been winkler, have you been a waiter? matt: i have not. stephanie: matt, you have been. i have been. i think it helps in terms of problem solving. got from ae i bloomberg customer long ago, which was whenever you go into a restaurant, have a $20 bill ready. stephanie: you have got to be a cool guy to do that. you have to got -- you have to have slider to pull that off. if you are a nerd, you can pull it off. david: like "fast times at ridgemont high." stephanie: yes. david: i love to keep looking at that bowtie. tom: as a gift of the staff.

david: i love it. we have to bow ties, a record for "bloomberg ." matt winkler has his own must-read. matt: surprise, surprise. since the very rocky rollout of obamacare two years ago, guess which industry has outperformed every other in the u.s. and has outperformed the global peers? american health care. stephanie: did you know we were talking trump today and you have to come fight? matt: the facts are what they are. when you look at the markets, the markets are not ideological. they are a collection of buyers and sellers, looking for value, and what they found was when you create a program that will ensure more than 60 million -- 16 millions people, that is a real business. guess what happened? in america, the people who take care of that business are doing well. stephanie: i need to read the

know donald trump's watch he did tell me he would repeal obamacare, so i want to share this -- do we have it? maybe, maybe not? for health care companies, one thing is clear. in of being the economic catastrophe predicted by congressional republicans -- are enough people listening? -- all the people who voted against the, obamacare at worst is denied for u.s. business and at best, making it global investors rich. matt: the people with the most at stake are listening because that is what the returns are telling us. donald trump is more than some way with investors, right, so he has to be aware of the fact that this is an industry that has been not only stellar but performing better than it ever has. and you look at the five years preceding the rollout of obamacare, american health-care was number four performer when

you look at the compared to other industries. today it is at the top. take into theo fact that obamacare, like romney care, like something proposed by the heritage foundation, is not a very, if you will, democratic, with a big d, program. it is a program that borrows essentially a great deal from republicans in the origin. david: what does bloomberg tell us? matt's pointpt that they wished they had been voting with their dollars. if you take up the index over the last two years, you can see health care has far and away outperformed other industry groups, a gain of 36%. investors definitely like it and more ofright that it is a market-based solution at the capital d democrats would like to see.

a solution would probably be with most democrats are more in favor of and i had this market-based solution that makes things more complex, but definitely pays off investors. david: how does this look for the land of the national health service? that's true, you wonder what other countries are doing. i know stephanie ruhle needs three sets of braces coming up in the next 18 months, and you look at the shock it is to home and what i want it within match analysis -- matt winkler's analysis, what does it mean for the doctors and what does it nurses? the i know what it means for investors, business, and i understand the politics of mr. trump and others, but what about the doctors and nurses? matt winkler, what did you learn? matt: i was thinking about the great position i had who i had doored, and sadly, still in the prime of his career, he got out of medicine here in new york

city and i said, why are you doing this? become a bigs business. medicine has become a big business. that is the reality in the united states. stephanie: i got to find out. what did he do? matt: he retired. he did very well and he retired. david: as a matter of public policy, it is a big business, 70% of gdp, are we getting our money's worth as a country? if you compare our health service with other countries, it does not cover that favorably. matt: one thing that we do know since obamacare has been rolled out and so much effort went into it, is that there has been a decline in the rate of increase in health costs that has been well reported and documented. perhaps, because of so much attention focused now on health care in america in the guise of obamacare, there is a lot more scrutiny.

forward, perhaps, there will be greater transparency. that is a goal of obamacare, and with greater transparency, you will probably get results that you otherwise would not have seen it there is more capacity. david: one more look at the bloomberg. matt: wall street has to be happy as well. if you look at the m&a action, you can see since 2005, we were relatively stable at about 1800 deals a year and that the number of deals shot up. right now, about 2200 or 2015 in the volume of deals also shot up to well over $300 billion, so wall street investment banks are making a pretty penny on the m&a that obamacare spurred. david: tom keene, one last thought on the health care system. you go around the world and not you have to do is sit at the airport in boston at logan or any major airports at new york, and frankly, in texas and los angeles and around the world, you will find lots and lots of

people flying to america for a best medical service. we have problems, i think peter orszag with his work at cbo and citigroup, has been brilliant on how our system in the own clumsy way is fixing itself for something that is happening for all americans away from the political divide. stephanie: tom keene on point, except for those three sets of braces. these choppers, no braces, retainers, cavities. mine, she baby of does not even have any teeth, braces would be a bad look. tom keene, when are you coming home? tom: monday to talk about the markets. stephanie: tom keene of "surveillance," and matthew winkler. thank you so much. next, we will speak to the ceo of the largest private bank in india. whether it is about the global economy or banking, treatise your questions to her at at davis underscore

david weston. ♪

stephanie: -- vonnie: welcome back. the u.s. has expanded the investigation into volkswagen and emission test. more government agencies have joined the probe. the paper says the u.s. may be targeting cw and employees -- vw and employees for misleading government officials. casino mogul steve went is blasting officials in china. he is unhappy because they have not told him how many gaming tables he will get and is the resort. n says become wicked decisions on hiring employees. he is spending more than $4 billion on the new casino. atlantic city, a smaller casino market may help those who have [indiscernible]

nearly 11% in september over last september after many casinos and atlantic city has eight casinos. david? david: thank you. chanda kochhar is magic director of icici bank and the third-largest overall by assets and the largest in india. it has a capitalization of $25 billion and around 100 billion in assets. he -- she is the first woman to head of private bank in india. stephanie: congratulations. david: terrific. but to have you. let's start with india and the chinese economy is slowing down but india is a different story. what i read is they are estimating the gdp growth made the highest 7.5%, higher than china's, the seventh largest economy in the world. how are things looking to you in india? chanda: i think things are looking much better in india currently then 18 months ago

because i remember a few months ago, it was one of the fragile economies. from then on, the macroeconomic indicators have improved substantially to take into account the fiscal deficit in control and inflation has come a lot under control. and the government has done a withf wealth management food supplies so inflation is under control and interest rates are coming down. you can see an increase in production of cars, commercial vehicles, mining activity, and so on, so i think there is a huge uptake. the real movement in the economy is now likely to come because of the government spending going up, so there is a trust on defense on so on. movement, in terms of are you seeing movement in terms of income inequality because the divide in india is massive? and for you in a private bank perspective, you are dealing with the lobbyist. chanda: -- dealing with the wealthiest. chanda: while the divide exists,

i think the biggest day is a whole lot of effort around skilling inclusion and people to make them more eligible or capable of generating livelihood. the government has done what we , we havejam trinity opened as the banking industry 118 bank accounts in the last 12 months. then we back it up. stephanie: that is crazy. chanda: we back it up with the unique identity the government gives to every individual in india and the combine that with direct benefit transfers of subsidies, and that brings in so many of these people in the economic activity. david: the identity is a card? chanda: it is a number. david: how many people is that?

chanda: it has been given to almost the entire population. un-banked people have the identity, it is possible for them to open a bank account. david: this looks like a large opportunity for western investment. it appears you are going faster than china, the seventh largest economy in the world, at the same time, india ranks 142nd and china is 90, so you are 50 behind. what accounts for that and what can be done for it? chanda: i think the biggest potential is about investing and the requirement to invest, create infrastructure, and so on and so forth. i think government really realizes that we are right down doing business is concerned. two things, one is at the center level, a lot of activity is going on in terms of moving a lot of decisions online, transfer, so on and support,

that is one. the second is the government essentially started this competition of ranking different states about the ease of doing business, so there are more than what hundred 90 points on which it they are ranked and the states are not competing with each other to get better and needs of doing business and i think that should make difference. aephanie: i want to bring in twitter question because you mentioned inclusion, how can your banks increase access of rural women to banking? chanda: we have been doing that in a big way, the way we do this, especially for rural women, is to the self-help groups. in india, in rural india, there are groups of 10, 20 women who come together who pulled her their savingsl and take microloans from the bank. and at private sector banks, we

have assisted more than 1.3 million women just to the self-help group initiative which helps them actually pull their savings and increased livelihoods by taking microloans. stephanie: to those women, what an inspirational story you are. "time" name to one of the most 100 influential people in the world. what is your story in the bank? you joined at the age of 22. what was your job? chanda: i joined as a management trainee and i was doing projects, looking at projects that i set up in india because we were a financial institution giving loans to set up projects. irom then on, the icic diversified substantially. we moved into retail consumer banking, so i had the opportunity of setting up consumer banking for the bank. , so asn they globalized to the international operations for the bank. i also looked at the control and functions and that is how i

moved up. stephanie: does this surprise you when you look at global banks or banks in the united states that there is not a single one having a woman as a ceo? chanda: it really does. when i said on many of these international forums and on banking, there are hardly any women there and i and maybe one or at the most to out of the 40 or 50 global bankers. is doing much better in this respect than the rest of the world. stephanie: are you listening? david: we did the ranking and if you are in the united states, you would be on the 12th or 13th largest bank in the united states, so it is a substantial bank that you run. having said that, you, as i said, you are the head of the largest bank -- private bank in india. what is it like and one of the special challenges you have been competing against government thinks that may not be making really economic decisions? the biggest challenge

has been that the government banks have been in the country for many more decades of the private sector banks. therefore, they have established branch networks that spreads throughout the country. start as newcomers, no longer knew, but we started as newcomers with very few branches in competing with the banks. what we have done as private sector banks is innovate changes and rules of the game, use technology to increase accessibility, affordability, and that is how banking in india has changed. when we entered banking, the customers used to do all the transactions at branches, today, for us, they do less than 10%. david: so, you are in new york to receive an important award, the asian societies highest award for asia game changes. stephanie: i thought you came for "bloomberg ." david: she had to pick up the award, but congratulations. what does that mean to you? i am honored to receive

that award. i think it is a recognition that can see a country that the opportunity to change games, to change the rules of the games . i think it is also recognition that icici does not believe in glass ceilings and gives women a huge campus to work on. stephanie: do you think people realize this about india? theprogressive india is in kind of opportunities that set success for someone like you has? david: i agree with that. chanda: i think the larger corporations around the world who are now focusing on gender diversity do realize this because they come and ask us. they look at our organization as an example and try to follow what we have been doing. ,avid: you know mr. moto well and there has been a lot of expectation. there are elections right now in india. to have expectations about how you will come out of that? it could strengthen his

position. asnda: first of all, i think a leader, he has done a lot in the last months in terms of steering the country in the right direction. anda is a complex country everything translate into the real world and it takes longer than what we expected it to be. i think the election is very important because it can change the ruling party in the india part house of the parliament. david: thank you. ceo chanda kochhar. it has been great. stephanie: congratulations. , economist and chicago professor austen goolsbee. plus, more on mr. trump. ♪

it is aonald trump says tournament is doing to the united states. a, next. it took five years to get the

transpacific deal. the u.s. agreement with europe may be tougher. cutters, ourord media companies focusing too much on content for millennials? david: welcome to the second hour of "bloomberg ." i am david westin. stephanie: i am stephanie ruhle. i will not waste time because guess who was in the house? bloomberg editor john interviewing some of the biggest leaders recently and globetrotting, including the president of iran and italy's prime minister matteo renzi. he should have done matteo renzi in the summer and turn it into a vacation. he just admitted that. be careful, mike bloomberg is watching.

and we must recently assigned kayaking in the windy city, economist and chicago professor, austan goolsbee, also now at 32 advisers at the head of intelligence. how about some first news with bonnie. vonnie: great title. some of the headlines, turkey says it has chopped on an unmanned drone violating th space. they scrambled after the drone after it crossed into turkey from syria and no word on who the drone belong to. turkey accused russian jets earlier this month of flying over their borders. they have not seen a traffic jam like this in southern california lately. 700 vehicles stranded on a freeway after a flash flood caused a massive mudslide about 40 miles north of downtown los angeles. no one was injured. police say it may take one day to clear the roads. vice president joe biden signaling he is now considering whether to run for president. he started asking democrats about [indiscernible] fairlyy primary focus is

nominations. one of the closest advisers are telling former staffers that their services may be needed. here is matt miller. matt: first, futures down across the board. contracts downny to take. generalresting thing is electric. a huge company came out what their needs and of being on the 26 cents $.29 versus because the transportation and aerospace as mrs. are doing better but it missed on the revenue side by almost $1 on the -- but it missed revenue side by almost a billion dollars and that is always a concern for investors. i want to take a look at gold. it moved up for the 200 day average but it is retreating. it was at a three month high. actually, it is moving up now, 2%. this is a one-week chart, so it

was a 11.90 one dollars yesterday and has come down a little bit. we are unchanged on gold, so interesting story developing in the last three months. stephanie: thank you. republican presidential front-runner, every time i say, i am like, for real? to bringump what's jobs back to united states. i sat down with them yesterday. donald trump: we have to create an economy where companies want to move into the united states, where they want to open factories. they are not doing that anymore. boeing will build a massive plan right now in china. stephanie: is china our enemy? an economic: in sense. if you go down one floor, the biggest bank in the world is a tenant. go down one floor. on the way down, we will stop to say hello. they have a good deal on the rent. the fact is, i deal with the chinese, they are great. ideal of the mexicans, they are

great, but they are scamming the united states. stephanie: are you looking at data out of china? their economy is not doing well. donald trump: we have rebuilt china. done it to the united states is the greatest theft in the history of the world. they have taken hundreds of thousands of jobs. they have taken our money. the beautiful thing is they take our money and we own, we go china $1.5 trillion, did you know? trillion -- we5 owe japan $1.5 trillion. you know what we sell them? beef. and they send it back cap the time which is not good for the quality of the meat because the farmers do not want it, so they send it back. the imbalance is incredible. china and japan, the robust, they rip us and we owed them money, it is like a magic act. stephanie: let's say international. you're in the oval office, your first day, week, who are the

first four global leaders fewer calling on the phone? donald trump: i may not call any. i would have them call me. i know more about diplomacy than anybody. stephanie: tell me how. donald trump: we are talking about china, they are ripping us. "business week" magazine had an article -- i am critical of china, i get along great, i have a lot of friends from china, and they tell me, we cannot believe you get away with what they did -- the 10 things the chinese people most want, you know what one of them is? anything trump. and they know my attitude. people in china, people in mexico, people from all over, and you know they buy apartments for me and they paleo fortune. i like china, i like mexico, but they cannot believe they get away -- and friends of mine that are big people, they come over

for dinner, and they say, we cannot believe your government is so stupid. stephanie: if i had to say something i am afraid of, who are the four foreign leaders you wait to call you? hold on. stephanie, wait. i may call them, it depends. it is a psychological thing. i have had a great temperament for business and making money. the nationto make rich again and start again before can be great again as we are a debtor nation. our airports and roads are crumbling, it is an embarrassment. we have got to do something. stephanie: in order to be the president of the united states, you have to be a leader. we have not seen your soft hand. we have seen your offense, but george bush had to stand in america after 9/11, barack obama did after sandy hook. help us understand who donald trump is as a man. i need to know that you will make us feel a safe and proud.

donald trump: i think i have a bigger heart than all of them. i think i am much more competent than often when you talk about george bush, and say what you want when walter to take him down during his time. stephanie: hold on, you can't blame george bush for that. him,d trump: don't blame blame him. he was president. it came down during his reign. if you look at sandy hook, those people are still waiting for help. thes a disaster all over place. government has proven to be a disaster during the obama administration. we need a leader. we do not have a leader. stephanie: i will paraphrase. david: you health back so much. stephanie: i will paraphrase, shut up, i know a lot more about diplomacy. first of all, you look great. i don't know if you have a clean it share, but you look great. john: i love early mornings. stephanie: what is your take when i asked who are the first for the disputed call from around the world and he does not

-- he is misinterpreting it, saying, they should call me. john: i want to know whether he knows which one they would be. in some ways, the frightening thing was the sheer economic illiteracy of the first bit. to say that china is scamming america and he talks about china taken out. china has lent america all this money. it is their cash. it isk in the and the, about economics. you have to trade with people. at one of the most boring bits about trump, is protection of side, the elements are nativist and he can -- he is a good front man for business, but you have to run these things. the same applies to diplomacy as well. look at america and the world. it has got to be able to get people behind it. it has got [indiscernible] the one which leads other people to do things. you cannot lead people in that environment. angela merkel one not being

filled by donald trump saying, you ring made. -- you ring me. david: that was impressive. i get the sense we will find out there are little cameras we did not know about and we are in the next reality show that donald trump will do, a about how the time i ran for -- a show about how the time i ran for president. he is still complaining about japan. japan is at a loss for two decades now. china is really sucking some wind. the bank that he is talking they are getting, if not bailed out, they face massive nonperforming loans. they have major problems in china. it makes me a little nervous. i think wetrue, but make a mistake if we do not

appreciate that he is appealing to a significant portion of the u.s. stephanie: and those people do not care what nonperforming states are. david: it is interesting to think about how to address them. i think you have already seen that people are getting a little bored with trump's stick -- schick. stephanie: look at the polls! austan: his shocked by it is what people love. they are like, i have never seen a politician say this out loud. john: you look around the world and there was maybe a 20% chance of donald trump in president, a 20% chance of jeremy corbyn becoming the british prime thester or britain leaving union, we take these 20% things and assume they never will happen. you look at greece, if i said 1080, walk across the avenue, you have an 80% chance of reaching the other side, you will say, i will do that somewhere else.

that is a possibility trump will become president, it does not mean it is probable, but he is still there and a contender. every presidential election is about us as much as the candidates. it is a snapshot about what our hopes, dreams, concerns, fears are. trump being at the top of the polls for this long should be telling something about who we are and we have to address this. i am not saying we elect trump president, but if we don't address that, we have a problem. austan: i agree. i say it and i stand by the recent that they respond so much is the scratches assert its in the republican primary -- he scratches a certain age in the republican primary and there are some that should not be scratched and public and he is every bit one of those. john: that h he scratches -- that itch he scratches, it is the same as in france, jeremy

corbyn in britain, all the way around the world, alexis tsipras in greece, people rallied around people who they think tell it like it is and trump connects to people because even when he is rude and a pleasant, he is being straight. stephanie: that is what the current political climate has driven us to. when i sat there with mr. trump for almost one hour, i thought, only now when washington has been in this complete state of gridlock for so long could it be in this scenario where you crazyly think this is so and might actually work because anything rational has not worked. austan: that is there. as i say, i think trumps appeal -- i think trump's appeal is tell it like it is and you never saw a politician say this time of something. the interviewer will ask something and they will say, you are an idiot, you don't know what you are talking about and people are like, yeah. i think the novelty of that is wearing off and it is prone to

wear off and you have seen it with people saying, well, you have got to keep redoubling, he has got the shock you twice as much because you have seen them talk about the mexicans, the chinese, the something, the idiots in the white house, the dummies in the press, so now he has come up with something even more insulting to say or start going after the other candidates. if hei think the probable does not get anywhere close to it but there is that element that he is connecting. david says, and it is not that unusual, that is the word fine thing about politics at the moment. if you say things in a way which implies you are the outsider, you are the person coming from outside, you look at one of the pine years of this particular idea that you know how to run things in the private sector, just like in, trump has inherited a lot of money when he started. i think he does get through to

people like that. some supporters are not off from the right, you get people from the left. not knowledgedoes that while american voters may care about certain things that affect them and their families, he becomes president of the united states, he has the global responsibility. when you look at how he has insulted angela merkel for letting refugees into germany, you have to consider humanitarian efforts and what your position is more than the people voting for you in the united states, so it is a difficult balance and makes you scared. americans love, they wrap themselves up in the flag and he says, make america great again, but it is a global job. david: you are totally right. from your interview, i do not see a lot of evidence that he thinks that way. stephanie: one thing that make me scared. austan: i thought you might get sued. you are challenging him and he has a history of his business record -- you will wind up in court. stephanie: that was just the

chemistry. david: we could feel that heat. please, stay with us. , some of the best quotes from newsmakers around the world on "bloomberg ." clue for: another today's yearbook game. he graduated from dewitt clinton high school in the bronx and his company went public back in 1997. who is this handsome devil? tweetdoes your guesses -- us your guesses. ♪

welcome back. monday on "bloomberg ," jamie dimon will be on with us. ch it got mad :00 a.m.

eastern time in new york. let's take a look at amazing quotes. something we like to call -- say what. jason kelly is here for that. what is your first quote? jason: we heard donald trump's view on china, here is another from someone who may be does a little more business there, the gulliver.c, stuart he said that fears for china's economy are overplayed. i do not believe china will have a hard landing. obviously, this is the question every single ceo or anyone doing business in china right now is getting. a note of optimism it seems from someone who sees the weight money is flowing there. david: what does a hard landing look like? what are we seeing right now? john cornyn donald trump could be right that they are doing well -- john: donald trump could be right that they are doing well, on the second point, i tend to agree that by any normal measure

of hard landing is unlikely china will hit it, but it could stockton and slow a bit. by most standards in most countries, it looks like it will be ok. jason: i hope you are right. chance. i think there is a 20 percent chance they have an old-fashioned hard landing, 0% growth type of thing. austan: it would not say that. david: in what period of time? austan: over the next year. david: what is the chance of going to zero? austan: it won't be in official statistics because -- stephanie: they are made up. let's go with actual. jason: an interesting play is investors are running away from risk in part because of what is going on in china, so this is from the chief risk officer at patterson who does a lot of

distress, everyone has become conservative at the same time. investors are wondering if the uncertainty are temporary or something more sinister going on in the background. you have a particularly messy cocktail of things coming together at one point. it sounds like some people are worried that all your 20% will come true. john: the most amazing thing about the markets at the moment is the amount of cash people hang onto. the markets are going up and down and people are not investing as much despite the wide durations. people are frightened and don't know what will happen. david: this top is something i did not know. jason: this is interesting in the bloomberg will have about regulators and high-frequency traders of all people sort of being an agreement and in bed together in a proverbial sense. stephanie: that is so gross. jason called when you talk about transference he come you are talking about information. everybody wants a level playing field tilted in their direction. i love that last part, a level playing field tilted in their

direction. this is going back to this really interesting debate. david: this is about treasuries, something i do not know. there is a different level of information about treasuries sales than there is for corporate bonds. i did not know that. jason: i think people underestimate how massive this is. this is a $70 trillion market. david: $500 billion a day. jason: unbelievable. you do have these two presumably adversarial constituencies say we need more transparency because that is the only way good trading -- john: they history of finance and trading is that. jamie dimon would be a good person to ask, they, they want a level playing field and this one is clearly tilted in their direction for private equity, and you want the tax and interest tax break. you want every single person who has got their own tiny special -- line stephanie: in his -- stephanie: in his defense, that

is human nature. tilted, i when it this way. we heard from a number of fed officials this week and the tone of the comments not so hot. built of the sounded more cautious as -- bill dudley sounded more cautious as sales weekend. model, the fed has a they are not the only one but the most public. the model is clearly broken. it has been getting things from the same way year after year after year, which they keep saying, next year, we will take off, we will be booming and raise the rates. when we actually get to it, it is not near as good as they predicted it would be and they say, ok, we are not going to do it right now but next year is the year. this is the fifth year in a row that they are saying that, so i think you are seeing a lot of -- in the new world of a fed, you get a lot more voices being saying contradictory

things. some say, no, we are ready to race and some say, no we are not. in the end, the conditions are not that strong so we will continue to see them keep putting it off. stephanie: those conflicting voices go to your last point. so many investors have money to spend and they are not doing it because they are accustomed to getting a message from the fed. when you get 17 different voices and 16 different messages, investors say, i have got to sit out. in centralof clarity banking, in some cases, remember the alan greenspan stuff, but this, you have so much of the world market hanging on this idea. if the fed was a private company and you measured it by continually saying what is expected to happen next year, it is not just the fed but a lot of other central banks to be fair, then the news would not trust it. that is one reason is that at k of investors minds

they think the fed is divided, which it is. ison: one of the questions whether we know too much. is there such a thing as knowing too much about what is going on? do we really just want them to sort of figure it out behind-the-scenes and then tell us? it is kind of annex essential question. david: could john's -- the john's point, they are not free to talk about whatever is talked about, there are strict restrictions on what you can say and when they can say it. said the other day, they it was annoying in some ways. in the old days, you would just sit around and have a cup of coffee and one with the, shall we put rates up? now you have to make statements. david: one quick point. matt: among the point of people knowing too much, if you take the tailorable and public -- and plug-in -- the taylor rule and

plug-in fed numbers, we should and we should% have been contacted 2013, so they missed a chance that but why do they not go, go, go? david: i'm not sure about the roles. bloomberg's jason kelly, thank you. , thank you so much. john, we need to hear. the industry is overthinking the habit of millennials. morning meeting is next on "bloomberg ." ♪

david: welcome back. you are watching "bloomberg ." another half-hour, stephanie.

-- we are wherewith with john micklethwait. . john, you are here. vonnie quinn has the news. vonnie: the u.s. suspects the drone shot down by turkey was russian, according to reuters. the unmanned aircraft flew into turkey's airspace from syria. turkish fighter jets shot it down. , turkeyin the month accused russian warplanes of crossing its borders. a new report about the hospital in afghanistan destroyed by american military attack. americans knew about the hospital but thought it was also used for taliban activity. at least 22 people were killed. texas, a large aerial tanker is being sent to fight a wildfire that has destroyed three dozen homes. people living in the area southeast of austin have been

urged to evacuate. 1600 houses were wiped out by fire two years ago there. matt: let's take a look at company news. earnings season begins to ramp up. you see all of the casino operators down because win has released some bad numbers as far as his experience -- as far as its experience in macau. wynn.venue is down across a tough time for casinos today. i want to talk about yum! brands. it hired keith meister. he has called for a splitting off of yum! brands' china business. you see shares rallying up. jpmorgan says yum! brands has limited downside. be a favoritet to coming for some of us here, up right now. credit suisse upgrading the shares to outperform, upgrading

the price target to $64 from $57 as lulu lemon moves into other industry areas. honeywell profit -- this is a common theme, and you will hear this a lot. $1.60 per share. we were looking for $1.54. $9.6 billion -- we were looking for $9.85 billion, and cutting the forecast to 37.8 billion dollars from $39.6 billion previously. a lot more to come, but you will see this theme a lot, missing on the top line, beating on the bottom line. stephanie: now we have to take you to our morning meeting. mike mccormick joins us now. you were saying media companies are overthinking millennials' viewing habits from a personal

standpoint. i agree. i am sick of them. mike: the millennial generation seems to be the focus for the industry as a whole. a lot of changes are going on, and you look at the numbers and sure enough pay-tv will be down 700,000 subs down from last year. espn viewing was viewed as the bulletproof content. there is a lot of concern over whether -- over where these millennials are and if they are disappearing. david: different programming as opposed to different platforms. when you look at something like youtube and some of the people who produce for that and have huge traffic and make huge amounts of money, how do you account for that? mike: you are looking at viewing hours of what we call traditional linear tv down dramatically. especially in the cohort of 18 to 30-year-olds, you are down

38% to 40%. year over year viewing that type of content. they are going other places. in some cases, it is youtube, snap chat, facebook. other companies are trying to create new content thomas like verizon with their go 90 product, to rope those customers back into the ecosystem. their argument is that they do those things, but in addition to that they still like a lot of traditional media. stephanie: what is the investment advice here, mike? mike: you are seeing a lot of password stealing. that was the crux of our report last week. millennials are used to not paying for things. my daughter last night said, "i will never pay for netflix as long as you are still alive." my son is in a campus in dallas and probably half his dorm is using my username and password to log into the verizon content for free. yet they have proclaimed that espn is really important, hbo is

very important. broadcast tv for live sports is very important. they just do not want to pay for it. david: what is to be done? mike: fix authentication. we saw this with netflix three or four years ago. they cut down the number of simultaneous streams. that is a quick fix. then we get the media companies beginning to be less panicked about sub loss. in the millennial generation will be found once again. david: now we will turn from millennials and television viewing to trade. it took five years and 19 rounds of formal talks to reach a deal for the trans-pacific partnership. next on the table, the free-trade pact between the u.s. and europe. just this week there have been massive protests. this is a much bigger deal than the dpt right -- than the tpp, right? john: there are two

interesting things about it. this is a new sort of trade deal where it is not about tariffs. it is all the regulatory barriers. and a main horrifying thing to europeans is the idea that america will flood their markets with chickens of low-quality or possibly of a poisonous nature. david: there also is a huge clinical strength to small farmers. so it may be bad chickens or -- stephanie: when you say political -- david: france, the small farmers -- they have a lot of political clout. john: my family are beneficiaries, including me. the interesting thing, one is the non-tariff barrier. the strange genius of this deal is that it has managed to annoy people in a whole variety of

different ways. some people are worried about chickens. others are worried about different ways in which the europeans push things to america. you can go through brussels and see things scribbled on the walls, and in a straight way it has become a rallying call, a tiny bit like donald trump, a rallying call that things were not supposed to be like this. it is brilliant because it is so i -- it is so difficult to identify exactly what it is. stephanie: is it bringing together people from different backgrounds? not just one specific group with one specific agenda? had people where it about privacy and all those things. behind most of it, from my perspective -- stephanie: once you are an economist, you're always an economist.

yearswe spent 170 defending free trade, and free-trade always has the same problem. the benefits would be huge to people on both sides of the atlantic. the benefits tend to be very small for all of us. slightly cheaper phones, slightly cheaper ties. french farmers protesting about chickens, they will come up with a lot of graphic pictures and things of what could happen to your chickens. get from this,n you do not see. matt: i want to go from europe to china because china exported 1.9 times as much to tpp countries as it imported. "the bloomberg" shows that 36% tpphina's exports go to countries. i do not mean to sound like donald trump here, but what does this mean? david: it means their stuff is cheap. john: trade is working.

china as it makes more money, the people who work there are demanding more. you're seeing wages go up. china is not as competitive as it once was in a range of areas. bangladesh and pakistan are taking advantage of some of the stuff. david: trade is good. john: globalization has made the world richer. the biggest thing about our lives will not be about goldman sachs and these strange things that happened. it will be about one thing. in the emerging world, over one billion people came out of poverty. that was the big seismic thing in all of our lives. david: everybody is against it. who is for it? john: the emerging middle classes for it. in europe, consumers -- in the end, logic tends to push through. the tantalizing thing is that you would get greater growth through this. one of the tragedies of europe

is that single market just is not exist. you cannot sell services across different barriers. stephanie: didn't there used to be great faith in season -- didn't there used to be great faith in trade? john: back when there was a pro-liberal agenda, back before the second world war, there was another huge push. victims, they are very concentrated and very clear. steel factoryt a and say they are losing because of that. it is difficult to say in every single car steel is slightly cheaper so you are doing better. david: with a resume on monday? skeptical that it would go through. that gives some degree of competition to the europeans, the american deal, to actually

do something, to get something done. is a problemhere with fasttrack and getting it through congress. does a similar thing exist in europe? john: it would go back to the national parliament. it is just incredibly complicated, and the ability of people, a bit like congress here, to come back and say you have to get this approved, you have to push that through -- but one of the best successes of the e.u. has been on the trade side because they handed over more negotiating power to the commission. john micklethwait, our editor in chief -- you might not know this, but our goal is to give you news around the world, help you be more competitive, something to share, make you smile. how about this guy? little bit latin, a little bit of the victorian days. john: and you said i looked good. return, whaten we

does the ceo of one of india's largest banks have to say about her country's economy? that is next. "bloomberg ," jamie dimon. an interview at 9:00 a.m. eastern. ♪

welcome back to "bloomberg ." those wagon appears to be -- volkswagen appears to be feeling the effects of the image and scandal. registration is still up the .8%. general ledger creek -- general electric posted third-quarter earnings up in the transportation unit. revenue fell short of analyst estimates. become a has been selling off its finances so he can focus on manufacturing. it is the final flight for u.s. airways.

a u.s. airways flight out of philadelphia today will be the last to bear that name. when it returns tomorrow, the jet will display the american airlines banner. usairflight is numbered 139. in the last hour we spoke to shun the coach are -- to shonda kochar. >> things are looking much better in india currently than what they were 18 months ago because ira member a few months ago it was one of the five emerging economies. control.ficit is under inflation has come a lot under control, and again, the government has done a lot of managing of supplies and so on, so inflation is under control. interest rates are coming down.

you see an increase in production, commercial materials, mining activity, and so on. it is a huge uptick. david: it is so different in india from the rest of the world. they just reduce their barring rate from 7% to 6.75%. we are talking about this catastrophe of the up 2.5%. they did it because they got their inflation rate down. it is such a different phenomenon than the rest of the world. john: they are becoming a bit like the great exception, india. as was just said, india is beginning to work. i do not really agree on the fiscal deficit side. the government is still chaos, but underneath it at least, there are bits of deregulation going on. inflation is a bit more under control. things are looking good particularly compared with china. even that question of

authoritarian government against democracy. maybe democracy is beginning to look a little bit stronger. -- ianie: i would not care would not dare to weigh in against john micklethwait without the data behind me. matt: the green line here is oil prices, and the yellow line is .he dnx as oil prices come down, the cnx goes up, and at least the economy for the rich people in india -- why is that? this shows you -- stephanie: i love this. matt: we look at india and put it into ect are. you see saudi arabia, uae, qatar, iraq, nigeria, venezuela, they areran --

importing so much oil. as the job in oil prices continues, they are making so much more money, their economy is doing so much better. worry on india is that it is like a reverse brazil. brilliantly when commodity prices were booming, and they did absolutely nothing to reform the government. that has come back to hit them. india did the reverse. , for allively relied the reasons met just showed us, on imported energy. in india is a nightmare, except a disaster in itself. if they have cheap energy, it is great, but what if energy prices go back up again? is modi going to reform government? it is like playing the same game but with different numbers. stephanie: i want to share a bit of the interview we had moments ago. take a look. orphaned 118 million

bank accounts in the last 18 months. we back it up with the unique item to see that the government is giving to every individual in india. we combine that with direct benefit transfers of subsidies. that brings in so many of these for the economic activity. bankanie: 180 million accounts. john: there is a totally inefficient banking system generally in india. there are opportunities for emerging companies if they get things correct to help things jump ahead. you do not need social security if you have a biometric way of telling who everybody is.

people making mobile banking or mobile phones because they have no alternative. those sort of technologies can spread quickly if they do well. has been the challenge the fact that you had this very limited banking system which they can now bring people in because they can identify who they are and also some small amounts of deregulation. at the risk of bringing everything together, it is exactly what donald trump does not understand. if you have free trade, free markets, these things happen. all those small gains around the world, and a lot of people begin to have bank accounts with technology being able to spread. the wonderful music of capitalism playing on. stephanie: john micklethwait does understand all of that. we have more to cover. but it is time for a commercial. who is he? the answer is next on "bloomberg ." he is a flesh and plate -- he is

a fashion plate there. ♪

stephanie: oh, my goodness. you forgot it is friday. david: there is beautiful new york city on friday. what else could you want? new york city, and john micklethwait. we are playing the yearbook game today. i actually guest this one. stephanie: you don't know. david: it is a big reveal. graduated from dewitt clinton high school in the bronx. he got his start in retail in the 1960's, and his initial public offerings rate connected 67 -- his original name is not what it is now. john: i think i have the original name. david: the answer is ralph

lauren. when you talk about lifestyle branding, every celebrity athlete wants to be one. he was the pioneer. sorry, twitter verse. employee, zach, who works in sales for bloomberg. there you go. micklethwait, some extra, maybe that is why he knew it. john: i would not have gotten that. stephanie: coming up next, one .f my favorites ♪

david: we are 30 minutes from the opening bell. welcome to "bloomberg go." stephanie: guess who's an house?

eric. david: he is here with us. one of our favorite people in the world is sitting across from us. -- one of theo largest restaurant chains. he has 60,000 employees. welcome. good to meet you. he told me he was the chairman, president and founder. i thought it was a one-man company. david: let's begin with a first word from vonnie quinn. bonnie: thank you. forcesort says it u.s. that attack and afghan forces has american analysts in the hospital. a u.s. gunship fired on the hospital killing at least 22 patients. many homes in central texas are in ashes ravaged by wildfire.

home are being urged to evacuate. a fire in the same area for years ago destroyed 1600 homes. when president obama meets his counterparts in south korea, he hopes to turn the hostile northern neighbors. vice president biden met in washington dc witholicy was how to quote -- deal with rogue actions. the actions are u.n. violations. matt miller is here with your market. matt: i will fly through a data check. there is not a lot going on in futures. people are waiting on economic data. we will bring that to you when it crosses. you will see a lot of movement. an interesting trend in a 10 year. people have in buying treasuries for the treasuries yield.

that pushes the yield down. it is very interesting. earnings season is kicking off we have many companies reporting. on the bottom line 7-78. -- $.77. revenue is down 33%. here is schlumberger in the premarket. as we get the economic data this morning, we could see, should see a little bit more movement. we will get consumer sentiment today. we have a lot of interesting points that the fed will be looking at. a tom keene style data check. matt: right. erik: i was thinking of our bowties on friday, should i get that? stephanie: that is a commercial

conversation. it is time for the five stories that matter to markets. number one who says investor conference calls should be dry and boring? the ceo of wind resorts had a memorable one. he was expressing his frustration with chinese officials who want to put limits on the number of tables at his casinos. here's a direct quote. "the notion that it person who spend $2.5 billion would did know how me tables they have three weeks before they open is so preposterous that it is worthy of comics. he said he is never seen anything like it." mr. tillman for tita is also in the business. curious, what is your perspective on what he is dealing with. tilman: it is very interesting. first off, i do not know how you

do not tell him. you have to surveillance, you need to know what you are higher. -- will hire. i cannot imagine what he's going to. erik: if he did all those things , he did all those things right, he hired other people. tilman: they are just messing with the casino operators. when you talk about how they were all making $1 billion per year, i'm sure they had a problem with it. he was bringing in the licensed to sell for $1 billion. they did not write correct, that you cannot write a transfer another license. that is one thing that helped him through the recession when he saw the license for $1 billion. everything was great. erik: should this make people -- stephanie: hold on. erik: my millennial terminal gurus sent me something, hillary clark shows up, what happens to stocks and the last few years

and it blew my mind. matt: this is 2013. everybody is getting an double, it was down 73%. it is not something happening in one day, it has been a real problem. tilman: when you look at what the stock has done in the last month, it has down almost 40 points -- stephanie: it is like going to a casino gambling. tilman: yes it is. i am want people they gambled on it. right now, i'm on the bad side of the trade. go from macau.to the number two story, the wagonons scandal at fulks has already cost billions of dollars of market share. -- volkswagen. growing, butl their sloan and market share. what do you make of this? tilman: people do not realize

that they are the largest car company in the world. they are bigger than gm, everybody. , am on a bentley dealership they own that brand. they own everything. stephanie: you own everything. tilman: i just have the one in south texas. , it ise so big inconceivable that a company regulated that is so could even pull this off. some denied and whistle blow. if we do something wrong people was a blow on us. stephanie: does that not make you wonder if the government was complicit? tilman: may become i think they're too busy looking at us. stephanie: number three, do not be ruled by the rebound in stocks. -- full by the rebound and stocks. investors are losing their appetite for risk. lenders are bracing for defaults.

recent ipos have slopped in the market. investors could not get enough debt. goldman is struggling to get $2.8 billion. and makes you wonder what will happen when they try to market $50 billion of financing. south,n who lives down do you want to comment, and these markets? tilman: it is crazy. how do you lead the two largest beer company is the world murch, and not have an issue -- merge and not have an issue? how do it caesars and mgm tie up the biggest properties? you cannot help but have a little bit of a price fix. david: let's hope for the regulators in that regard. the companies have agreed to merge. tilman: i am curious to see if it will happen.

everybody fights for for siebel's. did you know that the beer distributors when they delivered to your backdoor you still have to pay the cash? it is like in texas, when a beer companies delivers at your backdoor, you pay them in cash. it is this antiquated law. stephanie: you pay taxes on it? tilman: you pay the abc tax. that is amazing, a beer company sold its pay that way. stephanie: do they have a strong lobby? tilman: it is just the way it has been. if you look back at prohibition laws, i cannot own a small winery in napa because i sell so much wine. is that crazy? there are some we old prohibition laws that need to be changed, it is unbelievable. erik: our number four story.

david: inflation is a different delivery story. stephanie: there you go. david: the economy is slowing, but ups is raising shipping prices. the company said it will raise international prices by 5.2%, and ground rates by 4.9%. matt miller, ups should be benefiting, what is going on? matt: shareholders are not benefiting at all. take a look at the chart. you can see and read the price of crude over the last few years. in white it is the ups stock. it went up for one moment when crude started to nosedive, but then it came down and has not really come back up since. they have to do something because this is such a huge cost for them. you would think that if they were getting such a huge discount, then shareholders would buy stock. stephanie: what do you think? tilman: i think that because of oil prices and gasoline, that we

are getting a bad read on what is really happening in the world. i do not care where you go, or what you do, for an airplane, or the groceryo to store, everything has risen over the last five years. to say that it has not is just not correct. skusle they do one million , that is really come up with all of this. we live every day, telling there is not inflation for everything you buy. prices relating gasoline -- we're just letting gasoline prices distort the picture. here is another data point. a report from the economic bellwether, ge's third reports beat estimates that sales came in short. fortress fell by 26%. declined forklog

the first time in three years. they dropped a bite to million dollars from the second quarter level. -- that tell you? going tilman: it tells you we might be in for a ride. everybody forgets that the u.s. economy has been going like this since early 2009. you have had seven years of robust growth. : nowles went like this they will taper off. you are not getting 3.5% growth as a consumer. that is when casino's started to turn around. i have five casinos. on differentd read brands. everything from a rain forest to a steakhouse. you see the consumer who is spending $20 a head or $120 per head. everyone of them went like this.

they are starting to slow down. erik: i know we will continue the conversation about the economy, we have five stories that matter to marcus. david: what do you want to know from him? stephanie: send us a tweet. what do you want to ask the president, ceo and founder of landry's? we take a look at what is moving up and down in the free market.

matt: we have breaking news. industrial production in september fell 2/10 of 1%. the prior month was advised -- of 1%. up for tenths not a huge surprise. industrial production is down. let's look at futures, they are not moving that much. a few individual stocks are moving around.

look at amd. -- let'sall, right now see, in the premarket they gain .5%. mattel in the premarket should be down after an earnings miss. mattel is actually gaining even though it missed on revenue. --came in at 1.7 9 million billion dollars. was talking about, big story. they had a miss on revenue. still gaining. they are up 1.7%. back to you. do a bloomberg business flash. walmart is looking for ways to save money after warnings of an unprecedented decline. the company said some underperforming stores could be closed. analysts think walmart might scale back their operations. donald trump says fed share

janet yellen is keeping interest rates low as a political favor to president obama. the republican front-runner set down stephanie. trump: danielle and is keeping the interest rates so low, that the next guy who takes over as president will have a real problem. keeping the interest rates at this level, this is a political thing. when they get raised, perhaps with the next president, you will see some bad things. he said we could see a recession. for sites are shut down in nevada because the state says they need gambling licenses, that would mean extra costs for many games like draft kinks. that is the latest bloomberg business flash, next we will .alk u.s. economy with tilman we will talk with those donald trump comments, and more on casinos. you are watching "bloomberg go."

david: welcome back. we will talk about the economy. , like to start, close to home at atlantic city. you on properties there, what do you see? tilman: what everybody forgets about atlantic city, with a sadist falling apart, atlantic as $2.7 billion per year in gaming revenue. -- still does $2.7 billion per year. there is plenty of business. me, andis better for other operators for the conceit knows to close because of cost structures. it is the cost structure that causes the problem. there is not a revenue problem. i do more revenue in atlantic city than i do in las vegas.

margins in atlantic city is about 8%, my margin in vegas is 20%. that is because of the cost structure. do with the to union costs being more in atlantic city. costs are department more. every cost from the top to bottom is more in atlantic city. i was in a form with governor christie, i laid it out, because he was there to meet with a few others. he had no idea that i would be doing more business in atlantic city than las vegas, and making $40 million less per year. remember, if you carlisle said he would not step in and less the union was broken up, because he can never make money. tilman: everything is at a different level. cost structure, not revenue. stephanie: the house in atlantic city is a new jersey state governor. erik: that is the margin story,

what about the revenue growth story? now, atlantic city has been pretty flat, even though we lost for casinos. all you have done is take several hundred million dollars in revenue and divided it up. people are saying they are making money now. i see ithat happened, happening in other states, they keep building, building, and building. the dollars become short. keep up maintenance. that's why you go get in a hotel room in the carpet is not done, that that is not correct, in the casino you have carpet then he's be changed, the food is not good. bunch ofto do a business to continually keep these properties nice. stephanie: take us out to eat. i want to know about the consumer. bubblegum shrimp is the master. who is the master? tilman: everybody is still spending. it is just not going right.

it was crazy for about five years. we are running across all concepts about 1 -- 2% positive sales growth. i assume, we might talk about texas a little bit. i want to address that. the consumer is still out there spending money. the texas consumer is still spending money at $45 for oil. will you still lose a few meetings here in their? but it is nothing like you would expect. , sometimes remember you have you punched two or three times. so far, everybody over there has only received their first punch. as the year goes on and they get into next year, we will get hit a few more times. i think it is just starting. erik: even with oil at 45. stephanie: yes. erik: he is the chairman of

landry's, also the ceo. we'll be talking about banking revenues. we will recap for you with a big banker and more on "bloomberg go." the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.

erik: welcome back. it is almost 9:30. let's go to bonnie quinn. bonnie: thank you. drone shotpects the down by turkish jet fighters was russian. turkey said the aircraft flew into its airspace from syria. over this month turkey accused russian of crossing its border. there were nine sessions scheduled for the debt ceiling headline. it could if the borrowing limit is not moved to november 3. on the budget front of the deficit for 2015 fell to an eight year low. if you snooze, you lose.

playoff ended the hard way. stolerk's daniel's murphy third base when it was left unguarded. he scored the tying run. their cubs.l play those are the headlines. erik: if you have been watching us this week you know the top quarter for wall street has zero interest rates with lending under pressure. .ot exactly a surprise hardly what investors are looking for. the challenge is, as always, what to buy and sell. one of the best analysts you will find anywhere guy miscount ski. stephanie, david, myself. and tillman. guy come was talk about the banking industry. guy: there are some significant divergences between big and small. we are talking about big banks getting selective.

growth with the smaller banks, the big banks were under a lot of revenue pressure. erik: why be selective when they all face the same challenges? they are all having trouble grime revenue because the zero interest rate. it is a crummy business. a little bit, yes. there's the right price for everything. some of the big banks that are facing challenges are doing better. citigroup is a great example. they had a solid result. we like the stock. it is one of the very few banks that is trading below annuals. stephanie: one of the way the banks seem to be doing well is cutting, cutting, cutting jobs. you are a huge client, have you felt that impact? are you getting different service? tilman: no. everybody is cutting. hasuctivity sometimes

people do a better job. with banks it is all about the fee. there is not enough business out there right now. it is kind of unusual. we run cycles. this quarter in the last quarter have not been great, but we could get two quarters with the banking being unbelievable. we are tying the growth for a bar were like me. you never know where it will go. the markets open and close for banking. the difference in interest rates that you might pay are huge, regardless of your rate. tilman makes a point. yesterday i was told that for a hedge fund it might pay $30,000 for a shareholder. that pressure on prices from continuing? that particular area you

focus on is interesting. we have actually seen some of the best opportunities for banks that are actually using the balance sheet to sport hedge funds to exert their pricing power. we have seen a very robust increases in revenue at and equities in general this year. especially for the leaders in prime brokerage, morgan stanley, jp mortgage. these brokerages have experience is -- have experienced very strong double-digit revenue. their service is up. they are demanding more market share. .here is value added the use of the balance sheet, given the state of the environment is a scarce resource. david: i'm surprised about the big bank, small bank division. -- big bang-small bank division. i would guess that the revenues would hurt the small banks, but

she found the reverse. erik: there are some divergences hitting the big banks more. guy: big banks are finding it very -- to their advantage it is hard to turn away the costs if they are not actually creating a capital drag. haveanks that do not globally systemic banks have the ratio constraints, they are hacking to take those composites. that is an example of the type of pressure that is on the big banks. do you agree that in the next administration we need to do something to ease the regulation on the big banks? ridiculous when they are directly trying to lend with somebody for businesses. stephanie: they try to double down on it. guy: i do not know if our opinion will do anything. the regulatory environment is tighter. adapting.are actually

you look at the returns on a coded at a bank like jpmorgan is producing, they are in the double-digit. the cities with the bank of america are adapting to the environment. it is really interesting -- there is an interesting article and the economist that talked about how much more debt the large american banks have than the european banks. stephanie: they have the fiestas. matt miller wants to take us to the bloomberg. matt: i would like but the drama and revenue growth come are the lack thereof. if you look back three years, i have citigroup, bankamerica, and wells fargo -- wells fargo is the only one who holds above the red-zero line. they are the only ones showing real revenue growth. what a doing correct? guy: their business is very different. they are not take into investment banking. that is where the biggest drag comes from. tilman: they are different than

the other banks. they are a secure lender. they operate more on the matrix like a local bank. we want to look at everything and see everything. i do not like them more than other banks. david: why not? tilman: i like gunslinger banks. david: what is the no surprise me? erik: what's a gunslinger bank? tilman: i am trying to be funny. i am a borrower. wellspanies generate -- wants to be a secured lender most of the time. i like to be an unsecured lender. it is their business model. in tough times, when you go back to 2007-2009, they did better than everybody else, because they stuck to secure lending. stephanie: take us back to the tough times.

when banks are saying what a tough road they had, if you could start again, would you rather be in that industry? you're talking about receivables, employees, the hospitality business. you have a very different business mix. look at what bankers do. they make a lot of money. no i wouldt depends, not, i would never be able to by myselfze of bank that i am today. so, of course not. it is more fun. i am in a fun industry. stephanie: more risk. to go too be able dinner in new york at different restaurants in whatever city you are in -- it is a different business. away, tilmantake is a control freak who likes to betray treated like the man when he walks through city. that's how i like to wrap up the segment. between the six largest

banks in america they employ nine heard thousand people. what do you think it will be in one year? -- they employed 900,000 people. be 4% less. it will stephanie: thank you for joining us. tilman and his gunslinging ways. let's see where stocks have opened up trading a few minutes ago. we heard the bell ring. we were so focused on the conversation we missed it. matt: a lot of people are focused on the market. here is what you see on the s&p 500, the dow jones, and the nasdaq. less so in the smaller index. take a look at some of the stories that we are watching. if you look at my terminal, this is the imap. you can see winning and losing. it is a good day for almost every sector except for information technology. this big block is i.t.. it is the one drag.

as far as commodities go, oil is having a great day. it is up 2%. 47-27 per barrel. other texans looking to go out and spend money. gold is coming down, it is had a great few months. take a look at the 10 year, we have seen consistent buying this week. we have seen a change yield at 2%. a few stories we are highlighting, we're talking about when the display numbers come out of macau. when stocks will get hit today, it be pretty hard. general electric is a gainer. it has done well with aerospace businesses. it beat the street estimate on earnings per share. that was really hard to do. it missed by almost $1 billion. stephanie: there you go. you worked cynicism into the market check. bravo to you.

next, all the presidential candidates have plans for growing the u.s. economy, but which one is best for business? we will weigh in. the mega restauranteur. join us on twitter.

stephanie: welcome back. in my interview with donald trump we talked about the issue of corporate taxes. i asked him why companies are losing loyalty in the united states. donald trump: we have companies that are not doing anything because of the tax structure. taxes are too high, they go to other countries and they save a fortune. they do not have the loyalty to the united states that they used to it. even people who live here. i have friends or thinking about leaving the united states. in the old days we would leave new york for florida, now they

leave the united states for ireland. they leave for other countries, because they want to get their money and lower taxes. stephanie: corporate taxes, that is an issue for you. tilman: it is. company, so own my i pay 35%. if i want to take one dollar outcome i'm going to pay another 38%. stephanie: which candidate is most business friendly? tilman: donald trump, because he understands business. the problem with most other politicians is that they do not understand business. the bush family has always been in business. the dad was in the oil business. of course, george w. bush was in several businesses. , carlyk at all of them fiorina will be friendly, but who will get elected? erik: tilman, jeb bush was to

limit the tax production for interest gains. how would that impact your business you tilman: i have a lot of interest payments. honestly, you cannot do that. unless you will give me something on the flip side. that is something you never know. right now, everything is just rhetoric. hillary is much more moderate than she talks right now. if she sees anybody from wall street, she wants to hit them over the head. stephanie: she wants to take the money from the. tilman: right. it is all rhetoric. it is like when barack obama ran come nothing he said was going to happen. erik: do you follow john kasich much? he has done a pretty good job. goodn: rick perry did a job in texas. you so it happened to him. you want to look at it, and for some reason he is not totally connected with all the american people, john kasich is

the most experience of all of them, when you look at his history. he knows how to be a governor. he is a smart guy. he understands business. he seems to be a good person. if younever met him, but cannot connect with the people, i do not care how good of a president you might be, you have to elected. stephanie: you dealt with donald trump arid what you know about him as a businessman? he tells the world he is the best. tilman: if i say anything bad, he will be calling your show. is -- he makes barnum and bailey look like an amateur, he is the greatest promoter of all time. stephanie: what determines and was circus? i think donald trump knows what he's doing. if he is elected

president, i think his rhetoric would tone down, and he would understand he has to make a deal. he knows how to make a deal. if you can make a deal on a building or business, you have to be a fair person. you have to know how to compromise. overre not able to roll like it appears he does to everybody, when you are actually in a business meeting. a lot of this stuff is rhetoric. donald trump no such make a deal. to try to roll over vladimir putin, he will not try to roll over china. he will be fine if elected. erik: how about the oil business? texas, if you are in some of them want to jump out of buildings. companies arest going to go out of business at $45 per oil. ,he big companies will cut back they have made billions of

dollars with some defectors. erik: should americans be happy or sad about that price you go -- price? tilman: i think americans should be happy, because everybody is saving several thousand dollars per year and driving to work. that helps most consumer businesses. i do not think they care about the oil companies in texas and oklahoma. i do, because i have 70 different types of properties in the houston area. casinos, hotels, restaurants. we will see what happens. it will get worse before it gets better. stephanie: americans in nevada might not be happy, because their days of online fantasy football gambling are over. what you think of this? tilman: i do not think people in nevada are in happy, because they can go to a sports book and still gamble in some way. nevada gaming is the god. with all of the other states that have gaming, that is where everybody looks.

do not have sports gaming in mississippi or in new jersey. it is only regulated in nevada. them,ody is looking at and they came out and said this is gambling. i have known it was gambling. what is the difference? erik: there was a technical loophole. tilman: we can always find technical loopholes. they are generally shut down by the right regulatory agencies. you can see something really happen over the next few days now that nevada has come out and said this is gambling. erik: all the other states will fall in line? tilman: i think they will. the federal government is the one who has said only nevada can have sports gambling. atlantic city new jersey -- atlantic city, new jersey passed it against the government. i will my do it when i have a sports book in nevada, because

they will shut me down. this will be very interesting, because -- i think we are sick of all the advertisements. stephanie: espn will be the big loser. that used to be what was ron football games. david: i am delighted to say you are not going anywhere. when we come back we'll talk about the best of "bloomberg go."

stephanie: welcome back. we have to take a look at this special week. >> who should be president? earlier, ie been out think the numbers would be dramatically different. >> trumps stole the thunder.

>> are you look at the data out of china? >> what china has done to the united states is the greatest that in the history of the world. i do with the chinese, they are great. i do with the mexicans they are great. they are scamming the united states. >> it need of occupant doors come at the same time you need to have societal compassion that says when somebody is hurt we take care of them. >> the problem with glencore is that this is a company that was 80% trading and 20% hard assets. >> a potential purchaser of what? >> you have to close out a short position to buy stock. >> you will probably be here for a while, so it is very uncomfortable. like i said, we are standing in quicksand. >> everybody is worried about the world of digital contacts, and digital advertising. 23 million people watch the big bang theory last week, do you

know how many hits on youtube it would take to re-create the engagement on that? did thew york we highest society award. i sit on many of these international forms of banking, there are hardly any women there. i think india is doing great. stephanie: what a week. think about all of these candidates that we have. would bepected we here, sanders, carson, trump. in a perfect world, who would you love to see president? tilman: at this point, you have to sit back and evaluate. usually i have an opinion, but it is so unusual, he saw jeb start off strong and raise a lot of money. donald came in and justice sucked the air out of everybody and everything, and it is like the other ones do not exist.

you look at rubio, a lot of people think it is all over with he will probably get it. at rubio and you see his net worth of wondered thousand dollars, either he is very honest or he is very smart. have a bloomberg association. we give you a word, the first that to mind. obama. tilman: i'm glad he is gone in one year. david: texas racetrack gamy. tilman: it will never happen. i have no influence. david: walmart. tilman: trouble. stephanie: restaurant tipping. tilman: we will never stop. the waiters will unionize. that whole new thing they are starting at a museum restaurant, that is rhetoric. erik: jeb bush. tilman: in trouble. who you think will be the next president, honestly? tilman: i would not have said

this two weeks ago, i would've said no chance, bernie sanders through an unbelievable softball, hardball when he said get off the e-mails. even though the government is truly doing an investigation, and she is indicted or something, i think she will be our next president. stephanie: final thoughts, dallas cowboys. tilman: tony romo. stephanie: thank you very much for being here. david: that does it for today. and this week. on monday, we have an exclusive interview with jamie dimon. you have a great weekend. ♪

betty: it is 10:00 in new york and welcome to bloomberg market day. ♪

from bloomberg headquarters in your, i'm betty liu. his whahere's what we're watchig this rfid investors up slightly. it is up to the fact to maintain stimulus. republican fun honor donald trump system with bloomberg television. he is talking tough about business, politics, china, and janet yellen. we will tell you what superstar actress jennifer lawrence is saying about hollywood's gender pay gap and what exactly is going on. and we have some breaking economic news right now. the university of michigan index is out. julie hyman is breaking that for us. coming and better than estimated, rising to 92.1% this month.