test"ing up on "bloomberg the stories that shaped the week. the pound takes a pounding. the hand of an ecb taper sends markets spending. >> everyone will hit the door at the same time. >> google leads headlong into hardware. a message in the september u.s. jobs report. >> if you are janet yellen call it a goldilocks job report. not too hot, not too cold. matt: a fed hawk has warned a hike may come before december. >> all meetings are life, i

would include november. matt: sharing provocative thoughts in the top interviews. >> a pro-business government. >> no one has ever been successful that has not admitted failure. matt: that is straight ahead on "bloomberg best." hello. i am matt miller. this is bloomberg west. your weekly review of the most important is this news, analysis, and interviews from bloomberg television around the world. it began with a stunning announcement as asset management firms consolidated. janus capital, bill gross, being bought by henderson group. the company was bought for $323

billion under management. there is so much pressure on the sector that managers must combine in order to make the marginal margin? >> yes. we are going to see more of this what is happening is the rise of passive investments has put pressure on active managers. one thing that this deal hopes to accomplish is to provide more scaled to both companies, allowing them to distribute products more easily. henderson in the u.k. and janus capital in the u.s., they feel they can expand their client base in a way to run asset funds and lower fees to stay competitive. why aspire to be global? as a global asset manager you will be dwarfed by rock rock and fidelity. >> it gives us more resource, economy of scale, operating level. we are not trying to be

blackrock, but the additional scale of $300 billion of assets under management allows us the opportunity to capture benefit and earnings per share holders, and to make appropriate investments to build out our business around the world. >> is their role to play in the combined company? >> there is such thing as a store manager or lone wolf. they are a combination of ids being generated by people in the firm. they will wrap that through a collaborative approach. active the future of asset management held by henderson and janus capital. and what we will see going forward. fallen to a has 31-year low as their could be a hard brexit. how much lower could we go? guy. will be a bumpy ride,

investors are looking at the hard brexit scenario and being spooked. we have had decent data recently . yesterday's manufacturing pmi data was better than expected. investors are looking beyond that as the brexit becomes more of a reality. >> what about the euro-pound trade? >> that is important to note. dollar'sanding the strength, this drilling has pushed higher. the pound has strengthened. it has been relentless. had 31-years of lows, but we are seeing multi-year lows for the pound against the euro, and that will be important to watch as we go through the next few months. euro, seven on the gains from the news the european central banks may wind down the bond purchases before the end of quantitative easing, 10 billion euros a month.

why are they talking about tapering qe purchases were the economy is not at a point where that could happen? >> i don't know if they are trying to keep in lockstep with the fed, but by announcing measures, incremental measures to step back, it will be everyone hitting the door at the same time. there is no way they can exit on an incremental basis. thereasuries trading after european central banks will probably gradually wind down the bond purchases before the conclusion of quantitative easing. >> do we have another taper tantrum on our hands? >> the drop is totally significant? probably not. to reverse positions in terms of being long duration to a short duration. i'm glad i have been watching bloomberg. withropean stocks falling emerging markets after bloomberg

reported ecb officials are discussing ways to bring quantitative easing to an end. heart of the selloff in stocks, 10 year bond deals in italy have surged to the highest in june. the 10 year spanish yields above 1% for the first time in two weeks. >> it shows you how nervous investors are people are getting to the end of the big road they have been taking the can down for years. so can only extend that for long. anything with a hint we might be nearing the end spooks the market. >> any sense that the ecb perhaps leaks this information to test the market to see how they might react? on this occasion, they may not be too pleased with the reaction? >> central banks are known to fly test balloons here and there. if mario draghi wanted to do an official one, he would have done it himself. it is probably not right to say it is a official -- an official

trial balloon, but people are having discussions. the ecb governing council has not discussed tapering or the future of qe. it has not been on any official agenda. people are talking and thinking about it, clearly. >> german regulators investigating deutsche bank's ties with italy. that came after revelations. deutsche bank mismarked 37-deals with other banks like it did with the one. there is no connection between throughs here talk me what we have learned about deutsche bank in 24-hours. >> this one type of deal that they structured with monta pass a similar deal with other intention struck by the german bank with clients am a 30 other clients.

andsche bank itself used accounting treatment that was not what regulators determine should not have been used for those deals. >> there were more than 100 deals in all similar to the one they were doing. crucially, the ones that they ked, deutsche bank was lending money without putting the loans on their balance sheets. ?> how do you value the bank how much of a problem is that for ceo john cryan? >> it is the balance sheet of is hidden?nown? what complex deals that shareholders don't know about? fiveyrolls number out in seconds. erik schatzker is an washington, d.c. with the numbers. >> 156,000 jobs is the increase for the month of september. 2.6% from a, up

year earlier. up 0.2% from august. the unemployment rate is 5%. from 4.9. ' slight miss in economists forecasts, but it is not the political football it could has been in this election season. if you are janet yellen call it a goldilocks job report. not too hot or too cold. >> their limited and cautious. they will move every nine to 12 unless circumstances change significantly. an upward move to renormalization is appropriate. >> this is a no drama report. that is what we would like. the way this report should be read as the economy is recovering. unemployment rates held steady. a move that is

not significant and we are digging out of the problems created by the recession here to one side of progress is the strongest in seven years. data-driven head has more data to consider. later, we will replay our interview with loretta lynch during who says it could do it eight a november hike. plus, christine lagarde and the road for the u.k. next, more of the top headlines. europe's biggest banks trying to get smaller. the cuts are causing pain. this is bloomberg. ♪

.att: this is bloomberg best

i am matt miller. let's continue our global tour in europe with more cutbacks coming in the continent's financial industry. cutting 5800 jobs in the netherlands and elgin. inroximately 3500 jobs cut belgium over 2016-2021. the cost on the top line will be 1.1 billion euros. the company says it remains committed to progressive dividends. is this the worst case scenario for you? will all jobs be let go over the next five years? >> as we invest in a digital transformation, and continue to invest in a digital transformation, it means less jobs. the important point is we have strong commercial momentum.

we are growing profitability. we are growing our roe on the back of increase in capital ratios. we have to move to the next stage. time waits for no man. we are ready to move to the next stage of our digital transformation which means a lower fte. it means ing can navigate a low environment and generate growth. andeutsche bank set to reach agreement with labor representatives paving the way to eliminate 1000 jobs according to people with knowledge of the matter. this is preannounced. they are also nearing a settlement with the doj to not pay $14 billion? thet is about getting to finish line on some of these items, cutting jobs they laid out last year here at one more obstacle they have in terms of shrinking the bank.

the other is on the doj settlement number, what number the end up at, and how quickly they can reach a settlement with the doj. that is the question, short-term. long-term, it is profitability. short-term, it is about the doj number. receivea is said to investment officers of $2 billion from five suitors. what are these in relation to the size of the company? >> one billion to $2 billion from the suitors. looking at the market cap it is $290 million. a big jump in terms of the market cap compared to the offers. company, anda bio airbag makers as well. not all are considered equal.

why are some viewed more favorably? >> there are three bidders. takta maythe ones lean towards. 2 insist on bankruptcy. the 3 that they may favor our kkr, -- the other 2 insist on bankruptcy. at this point, we are told none have been ruled out. it official, bass pro shops buying cabal of. --cabela. sports largest outdoor equipment retailers. the idea was that elliott management owns part of cabelas. they have been pushing for a sale of the company. there was a reading war between bass pro shops and sycamore. >> what is driving a deal? >> elliott.

there was an activist and cabela's pushing a deal. they got a deal. $5.5 billion is above where they traded. but the past two years, their shares were going down. since elliott got in there and they became public, shares are up 15 percent to 20%. they are now up on top of the deal. bass pro shop, one retailer buying another, you see that a lot. i would not be surprised if the cabela's name went away. matt: u.s. sales figures for september 2 going out. autos. , gm and ford posted declines for the month, but came in and in line with analysts' estimates. nissan saw sales rise 5% for the month. that clobbered estimates for drop of 1.5%. >> i think that this month is about quality of sales over quantity.

to thing i was encouraged see was the improvement in average transaction prices. consumers are paying more for vehicles than last year. spending more, higher trim levels, better equipped vehicles. this is a positive when we look at gm and ford stock in particular. it speaks to the profitability of the balance sheet. >> breaking story out of australia. ba keeping rates unchanged. the statement is key. what are they saying? >> it is all about inflation. that is how we got to 1.5%. we have had weak inflation. the cuts that we have seen so far were in was monster that. -- was in response to that. keeping it at 1.5% is consistent with meeting the cpi target over

time. it is consistent with what the new governor has been saying in the weeks leading up to the meeting. he is in charge as the governor. he described the rba as not being inflation. words that will define his tenure. he is expressing a willingness to allow australia to live out the ban and keep a little powder dry in terms of the cash rate. a had confirmation of that in statement. also saying the cash rate of 1.5% is consistent with sustainable economic growth and job growth in the near term. >> another stock we are watching is walmart. shares down in early trading after the company forecasted earnings that missed analyst estimates. doug allen said income will be relatively flat compared to the current year. >> laying out for the past

couple of years that it will take time to come back to growth. they are investing and higher wages and fixing store bases. is theynews, i think, will not be opening as many stories as they have been. for the first time in years, since investors and analysts have been saying "don't open so many stores." they are saying "we won't open so many stores." carol: deals with e-commerce to open less stores. is that what investors want them to be doing? >> in the long run, in the next 10-years, if they can do everything they are doing, investors will like that. the question is, will walmart deal with they say they will do, and will investors give them this namely way they do to a come any like amazon? >> 2 minutes in chaos in asian

trading. the pound plunging to 31-year low, saying the slump was exacerbated by computer orders. that is the biggest the coin since the day of the eu referendum result. we have views that this was largely due to computers that exacerbated the selloff here do you think there's something more sinister or just highlighting the sterling vulnerability? >> there were a lot of selloffs and -- in the system. if we look at what some economists and investors are fearing is that we could be in for a decline. it has been a horrible week for sterling. the market is fearing a hard exit. is suggesting a vulnerability in sterling. ♪

matt: welcome back to "bloomberg best." i am matt miller. the federal reserve held rates steady at the september meeting. in an unusual show of dissent 3 members voted to hike. one hawk was the cleveland fed president. she put markets on the alert to brace for tightening in an exclusive interview with bloomberg. dissent -- why dissent? is the economy overheating? >> it is not overheating and i do not think we are behind the curve, but there was a compelling case for taking the rate of gradually. taking another step on the gradual path. some people think, you want to curtail the expansion? not at all.

the reason i think it was appropriate to move up by 25- basis points is that we want a sustainable expansion. moving rates of is consistent with that. the first half, gdp barely grew over 1%. does that make you think that the wait could be a little longer? >> the first half of the year, growth was 1%. i still think we will see a rebound in the second half. around 2% to 3% in the second half, 2% for the year. my view is that we will be growing a little over trend for enought 2-years, strong to put downward pressure on the unemployment rate. from theit to go down current level. the data is in place for inflation to move gradually back to 2.

expectations are reasonably well anchored with inflation moving up over the past year. economic conditions are such that we will go gradually to the 2% goal here do have to be preemptive to make sure we are moving the interest rate up to make sure we can keep the expansion sustained. >> if the data stays strong, it seems like the economy is on better footing for a rate hike, if the reports come in strong. when you argue for a rate hike in november? >> all meetings are live. i would include november. in september, i said i thought the case was compelling to take another step on the gradual path . if the data is consistent with my forecast over the meeting run, i would expect the case to remain compelling. we will look at all of the data that comes in between now and november, between november and

december, as we do all the time. you are right, if the data comes in consistent with what we have been saying, yes. i think it would still remain compelling. >> you would vote for a rate hike? >> we will see when we get to the meeting, but i think the case would be compelling. matt: more exclusive interviews straight ahead. philip hammond and christine lagarde tackle the toughest questions facing the global economy. plus, looking back at the week in tech. letting loose on donald trump. >> that makes him completely unfit. matt: this is bloomberg. ♪

matt: this is bloomberg best. he's got a tough job has had of the u.k. treasury. he must set a fiscal policy that can soften economic shocks as

the country moves ahead with it exit from the european union. hammond visited wall street to reassure u.s. tanks of britain's strength and discussing the challenges he faces with an inclusive interview. >> now we have a situation over the past week. you see the talk of hard brexit. sterling has gone down. people don't see the city. --looks like the government is that fair? you have many worried watching on television. what would you say? >> i don't think it is fair. it's not a correct analysis of what is happened this week. first of all, we don't recognize the distinction between hard exit and soft brexit. we want the one that works for britain and for the european union. it has to be about mutual advantage. it has to be about a mutually

beneficial absolution. the financial services sector is a very important part of the u.k. the largest single value contribute sector. we will place a very high priority on getting the right solution with our european union partners. john: you think it should be treated differently to any other sector? it is britain's and most important industry. surely it deserves some deal of priority. >> is different because manufacturing sectors, if we rather end up in a wto, than a negotiated deal, manufacturing we know exactly what that meant for it. financial services are not really covered by wto rules. it is different and we have to deal with each sector according to its specific needs. we are in the process of

analyzing with people in the financial services sector and in other sectors across the economy to understand the specific needs they have. one of the things that is already clear is the sort of initial response of people. we must have this. it is too general. there are some specific needs, really specific issues that we have to understand and we have to factor into the way we conduct negotiations with the european union. john: his or any economic advantage to brexit? >> in the long-term, yes. the u.k. is an outward looking nation with strong trading links and investment links around the world. outside the european union we will build on this historic trading links and we will leverage the advantage of an economy which is in many thancts more mid-atlantic

20 miles off the coast of europe. the way it approaches markets, the way it's labor market works, attitudes for doing business and the legal system. i think most people in britain atlanticway across the between the u.s. and europe rather than just 20 lots of because of europe and 3000 miles away from the u.s. teresaeople listen to ay's speech and they heard voice that sounded more critical of business than anything we have heard for along time. more critical than cameron, and tony blair. always acted jim callahan. -- all the way back to jim callahan. his is a government that is antibusiness in some way? was that the message he wanted to send? >> absolutely not. this is a pro-business government, strongly supportive of open markets, free markets, open economies, free trade. problem, and it's

not just a british problem, if the developed world problem, of keeping out populations engaged in support of of market capitalism economic model. people who feel, and you see it in the u.s. through the primary campaign, people who feel the economy is not working for them anymore. they are the losers out of globalization. that it works for some but it doesn't work for all. what theresa may was setting out is a recognition that we have to reengage those people who feel they don't have a stake in the economy anymore. i would suggest that for liberal and market capitalism to be firmly rooted we have to address any symptoms, any signs of a sizable group of our population becoming disenchanted with the model. weather it is in the u.s., europe or the u.k., we need to

seize the challenge and respond to it. that is what we intend to do. brexit is just one of the factors feeding to this week's subdued global growth forecast from the imf which one of risks that political discord and protectionism post to advanced economies. managing director christine lagarde flushed out the imf outlook in another bloomberg exclusive. du feel central-bank policy is coming at the end of the line? how difficult is it for government to pick it up when we are so indebted. christine: i want to throw a little cost and on that massive number of $152 trillion, which is about 225% of global gdp. about two thirds of that is corporate debt, household debts, and one third is sovereign debt. not all countries are in the same position. some countries are heavily indebted and some debt is held

by domestic holders, which is particularly problematic. a particular situation. we can't just cry and say is a huge debt around the world. we need to be country specific. there is an issue of the debt burden, and there is an issue of what monetary policy can be .onducted on its own as has been the case for too long which is the reason why we are calling for the three-pronged approach. monetary, fiscal, structural reforms and they have to come together. >> the distinction here is what will be the new economic growth. the debt can be sustained for certain growth. where is christine lagarde's level of economic growth? where is your new terminal value? christine: my grandmother used

to say anything is better with butter. everything is better with growth. it has been too low for too long in benefiting too few. we are advocating a three-pronged approach using all levers in the toolbox and benefiting all, and up a few. >> we have got to ask about brexit and the effect on sterling. >> is the u.k. business after what we're hearing this week? christine: i think you have to ask the u.k. authorities. it seems to be that the determination to continue to do trade. i think the terms under which it will trade with europe for instance is not yet really certain what it will be. we welcome this certainty about timing, but the certainty about terms and conditions when it comes to financial passports for banks, when it comes to harmonization of norms -- >> we had an outright plunge in

sterling. i did a charts. five dollars per pound in 1934 and down we go through the years. did you have in your head of point where every dialogue currency depreciation and's of being wealth distraction and not social unrest, but the debate shifts. sterling?20 >> i would simply observe that --the outcome of brexit rather than the adverse scenario that we had forecasted, the sterling is certainly taking a hit as a result of the currency situation. >> does brexit and donald trump feet on the same fear? how would the imf deal with the donald trump presidency? i think those complicatede too

and subtle to be offered in the same basket and dealt with like that. it would require another long debate. ♪

matt: this week bloomberg launched bloomberg technology, a new website about the developments in global technology from bloomberg's 12 international bureaus. code of bloomberg.com/ technology, board-check is set on twitter, @technology. leslie dr. review of the biggest tech stories with one of the tech world's biggest names. mark chang caught up with cuban at the dream force conference in san francisco. he had a few things to say about technology and politics. emily: how do you think clinton versus trump would impact deals, pe, growth in general?

mark: when you have a president, let's say trump wins, and you got a what he is going to say next, that the ultimate uncertainty. he has not been it will to control himself and is this close to the presidency. he is not going to change. one offensive comment and north korea drops obama japan. one offensive comment and demonstration or being oblivious about the world and putin invade another country. those of the kind of things that radel everybody. when i said the market would social he were elected, unrest is the -- the ultimate uncertainty. you got your senator or congressman and deal with it. you can have a say in trying to oppose it. if someone is oblivious to what is going on in the world -- look at charlotte. businesses cannot open.

businesses cannot open if they are afraid someone is going to get hurt and you're afraid is in your kids to school. that is what society is really taking a turn for the worst. what i am saying is hillary clinton understands the balance of power in the world. she understands the relationship between china and north korea and japan, all whole asian area. she understands the dynamics of russia and putin and the surrounding countries and he doesn't. it's not even about a lack of understanding. as president you make one flippant comment and it's offensive to an unstable world leader over a contentious world leader, that is all the excuse you need. ally,mb dropped on a nato one incursion on a nato ally, we are in a different world.

as an investor, as a business person, i look at risk assessment. is a greater than 0% chance that trump would say something stupid is a president that would cause north korea to take an action? yes. 10% chancer than a on him tweeting at 3:00 in the morning about a 1996 80 cleaned again wait, it might be greater than 75%. there is no amount of policy that offsets that. they make them completely unfit. i don't care what you think about hillary clinton. we can argue about all the crazy stuff that has been said about her. she is pragmatic, she is smart, she understands the terrence -- determined she understands our military. she is starting to understand cyber more and more. when he was trying to excite cyber he did not aware he was talking about. emily: you have blasted him for not paying taxes. what is him about him taking advantage of illegally? mark: nothing is long -- wrong

with that, but if i was out there saying i'm the world's greatest business person i would admit my mistakes. if i was releasing my taxes and i had a $915 million loss, i would tell you why. there are two ways to look at it. i'm a financial engineer and of trying to hide and ashamed of what i've done. or if he was really an entrepreneur and he really cared about developing jobs, why not say i took a big chance. i thought i could create this company that we do $10 billion in business, i failed what i learned a lot from it. if you're going to take the benefit for my knowledge and failure. there is nobody that is ever been successful that is not admitted failure. he has never admitted failure. emily: google takes its biggest leap yet into the smartphone hardware market after years of outsourcing development to other lawmakers. google has now taking the apple approach in developing phones from and and in-house -- end to

end in house. they also revealed other consumer electronics to take on the amazon echo and a mobile headset meant to spread vr to the masses. what stands out to you? >> definitely the amazon echo-like speaker. that is the most interesting thing to me. we expected the pixel smartphone, but they announced new smart -- software developing kits. once a developed to apps, one to connect to other devices in your house. it's interesting they are going after the home market from two different angles. emily: android has huge market share for google specific devices have not necessarily done well. ben: i don't think it's a game changer today. it's an introduction to the game changing down the line. a lot of executives we talked to before the event indicating this was more of a journey. every year google will do more

and more. this year they server the custom controller to make touch rain response on the pixel phones morri -- faster. over time you see more custom wireless modem testing other chips. down the road that will become a big game changer and will seriously cause concern between the android platform and google is a hardware company. samsung is experiencing the highs and lows today. after hit a new record calls from the activist investor for the company to embrace change. the heat is on again after the aircrafte 7 caused an emergency in the united states. high of thehe story. there was a letter sent. -- when youhere is look at the share prices for

samsung, shares look it deep discounts. the list of proposals are basically meant to address the valuation gap. >> what are the chances of success? >> pretty good. the proposal call, is basically intended to make the company more transparent -- the conglomerate more transparent and increase shareholder value. lee, the son of the chairman, he is looking to modernize the company. make it more open, addressing criticisms of its governance issue. this proposal may be one way to do that. >> shares of twitter tumbling the most in more than a year. this following a report that google is not interested in buying the social networking site. if google is not interested, recode reported apple is not interested. disney may not be interested as well. >> i can confirm for you that

salesforce is still interested. they are still in it, at least as of right now. i have not been able to independently confirm disney is for sure out. google is an interesting case because google doesn't really need to buy twitter on its own in order to keep its current search partnership intact. i can tell you from my sourcing reporting google is working with lazard. my sourcing told me the entire time there was never a firm commitment from google they were going to bid. it is certainly possible and they were just looking at twitter and kicking the tires and moving on. costolo said he thinks twitter can still be an independent company. what you think? i don't see how it gets materially better over the next year without fresh blood. i don't see a pastor that. i don't hear that is any twitter 2.0 or 3.0 in the works. i have not heard anyone talk

with great passion about what is coming down the pipe. emily: the hope for an acquisition or the ceo? >> i hope for an acquisition. i think they are great product teams, and that is not a new thing for me. i think it's a natural complement to three or four or five companies out there. look, it's an obvious google fit. i think google underestimated the company for a long time as it is not scientifically hard to full off the same with a google underestimated blogger for years. would be arosoft will to absorb the business and take the chance to enjoy it. disney makes sense. i think people are overweighting the importance of media on the platform. there is a lot of audience, a lot of engagement. if you do that, media partners will come. you don't necessarily have to do a strategic media access deal to get people excited about a platform like this. you just have to make in the

most fun place to engage with that content and the easiest ways to monetize and then content shows up. emily: heavy sulfonate where shares? >> i have definitely sold twitter shares. the way i would put it is i don't own as many as they used to because am not an idiot, but a on more than i should because i'm an idiot. ♪

♪ 7000, which is great, but what a caveat this is. let me take it to mike -- my wei. i have a currency adjusted ftse. up by 12.9%, and yes we are north of 7000. if you look at the last column in euros, down by 5.23%, which

is worth the dax. there are about 30,000 different functions on the bloomberg. we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function you will find useful, quic go. it will take you to our quick page where you can get fast insight into timely topics. here is a quick take from this week. ♪ >> brags of polls. the pollsters have got it wrong again. the 2014 u.s. congressional election polls. >> where the democrats get this wrong? >> wrong, wrong, wrong. in any election year if you watch cable news -- >> look at the cnn poll. >>. the latest wave a swing state polling >> or read any news outlet or

take a look at donald trump's twitter feed, they are constantly restaurants best referenced if they are gospel. they need to be taken with a grain of salt. in many cases they beat incorrect results. here is the situation. scientific polling started with one man in 1932, george gallup. he conducted a poll for his mother-in-law who is running to be secretary of state of iowa. this polling was accurate and she won, but he still got some predictions wrong. whenever this headline? one of the biggest blunders of all time was the result of incorrect polls, including gallups. methods were refined to become more accurate, and polls grew exponentially. today there is gallup, recipes and, quinnipiac, reuters, even bloomberg conducts them. the list goes on and on. but it's getting harder and harder to trust the mac -- trust the accuracy. because of a ban on cell phone

auto dialing all call systems must be made manually. which is not only time-consuming but expensive. also, since anyone receiving a call on the cell phone can see who is calling, they tend essentially not answer the pollsters call. the response rate in a committee seven was 36%. in 2012, 9%. the low response rate means it's becoming harder to get accurate responses. analysts are more likely to trust aggregations, like those created by 538, real clear politics as a don't just focus on one poll. here is the argument. given the doubts about the accuracy of polls pundits and politicians are increasingly free to skew the narrative anywhere they want, resulting in exchanges like this. >> you guys are down. it makes sense. says who? says who? >> most of them, all of them. >> full say more time is needed to adjust sampling techniques.

think itantime, some is good for democracy with the justification some people might vote of the don't think the results are preordained. matt: that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis 24 hours a day. that is all for bloomberg best this week. thank you for watching. i'm matt miller. this is bloomberg. ♪

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announcer: big problems, big thinkers is brought to you by cisco. there has never been a better time to change the world. ♪ terre: we asked some of the best minds in the world from business, government, the arts, academia, what are the most urgent problems facing humanity, and how do we solve them? the result is big problems, big thinkers. >> what is the number one major problem facing mankind? >> the lack of education. >> politics is getting dumber and dumber. >>