it, to the american people? wind >> every measure of the labor market, whether it is narrow unemployment rate, the number of people working in part-time jobs who want full-time work, who have job

openings. aredifficulty that firms facing in hiring workers, the level of confidence we see in surveys about the labor market. all of that is pointing to the vast and continuing improvement in the labor market. we see sufficient strength in the economy in terms of spending, that growth with its nevertheless, but looks to be strong enough in the median term to support ongoing improvement in the labor market. all of that is good. the american people should feel steps were taken to normalize monetary policy, ones that we feel are well justified, given the substantial progress we have seen in the economy. inflation is running below where

we wanted to be. we have talked about that a lot during the last hour. this past year, it is not clear what the reasons are. it has not been mysterious in the past. inflation has been running below are 2% objective. we are committed to achieving that. the monetary path that we follow, and the pads my colleagues are writing down in our projections are ones we think will be appropriate due to the economic conditions. they are ones we think are necessary to moving inflation to 2%,to 2% -- back up and maintaining a strong labor market. making these judgments, we have

to balance various risks. one is that if we tighten policy thatickly, we may find out the inflation shortfall is something that is going to be persistent. if we tighten too quickly, we could undermine inflation performance, leave it at too low of a level. ingrained andome dangerous. that is a reason to because she about raising interest rates, -- about -- to be cautious about raising interest rates, when inflation is low as it is. we have a low unemployment rate. still averaging 175,000 jobs a month this year.

of 120,000.se with auld be consistent stable unemployment rate if labor force participation continues to move down. in the manner we expect. market tightens and continues to tighten as you , arguably, financial conditions have been tightened that much. the economy could overheat. aboveion could spike our objective. we would be forced to tighten policy more rapidly. sides.re risks on both

are of my colleagues and i looking to a gradual path of rate increases, will constantly watching incoming data being open to revising our views on the outlook and revising our expectations about policy is the best way to manage that set of -- set of risks. . >> microphone is having problems. that was janet yellen. -- let: michael mckee asked about financial conditions, even

as the federal reserve has raise rates four times. got really long asymmetrical answers. >> a lot of hypotheticals. let me do a data check and. -- data check in, as if we are doing a game show. vix. was a damp in 9.92. the low of the day. the enthusiasm we see in equities. we see yields a little bit higher. there is the vix. for those of you on bloomberg re is a low yen.

1330. michael mckee is moving the gold market. scarlet: the rookie affect. -- the mckee affect. we have a force and economics with us. -- in economics with us. she invented what we should do on fiscal policy in washington. she is the former vice chairman of the federal reserve and founding director of the cbo. help us dovetail and where we are going with our fiscal deficit. what i saw this week was your suggesting werime out toet deficit to gdp five or six.

rivlin: that is a lot of projections on his part. it is anybody's guess at the moment what the republican strategy is. i haven't been able to discern one. the administration put forth a approach which brought down appropriations. now, we are talking about tax reform. whether the tax reform is going to be deficit neutral. more likely not. on thet have a strategy longer run a budget deficit. scarlet: the next live at fed meeting will be december 13. it could ostensibly raise rates. if it does raise rates, to what extent could be government

funding debt ceiling debate limit or complicate the fed's next move? scarlet: which -- dr. rivlin: we shouldn't have a debt ceiling. it always competent things. i do suspect we will have a huge hassle over the debt ceiling. -- it always copper keeps things. things.ways complicates ableld hope they would be to guess pass -- get past the debt ceiling crisis. the more fundamental questions -- what is fiscal policy going to be like? >> i wanted to say we really need to rip up the script with the idea of our medical coverage in insurance.

you have been writing recently on this. we come to graham-cassidy. was a report published in the ideaington post," that this program is flawed because we have and reviewed it. why are we in such a rush? dr. rivlin: congress for a very long time said the first thing they are going to do is repeal and replace. they want to do it with republican votes alone. they will get credit for rolling back obama's signature initiative. they will also get blamed. i don't understand why they want to do this. if they are going to do it with republican votes alone and they

have a bare majority in the senate, that they have to do it before the end of this fiscal year, namely september 30. next week. resolution will expire. that is why they are in a hurry. a terrible idea to pass major legislation with only one party. we learned that with obamacare. >> governor christie has aggressively come out. you are the founding director of the congressional budget office. the cbo says it won't have time before agraham-cassidy

potential vote. they want to get the spoke to benefit next week. want to get it done next week. what is the potential drawback of not having a cbo score? dr. rivlin: the whole process has been disorderly. i don't think there is very much doubt about the implications of this bill. money, because it flashes medicaid spending and gives block grants to the states. it will save money over time. a lot ofill also throw people off medicaid. that is the point. there will be millions of people, i don't know exactly how many, who will lose their insurance. that is why it is so controversial. like to go back to your public service with senator domenici. appealed to our desire to

not cut entitlements. they're going to have a big with this trillion or that trillion of budget growth. we don't want to face entitlements. but with senator domenici said -- what would senator domenici said? -- say? dr. rivlin: we worked on this problem together. commission on the debt, a bipartisan commission at the bipartisan policy center. what everyone who tackles this problem realizes -- over time, we're going to have to slow the growth of the health entitlements. on al security needs to be

firm basis. the real problem is medicare and medicaid growing very rapidly. growth to slow that without hurting people to make health care less expensive. we need to raise more revenues. everyone was looked at the seriously says we -- who has looked at the seriously says we slowingg to need this of growth and raising of revenue. >> doctors and nurses are coming out and saying graham-cassidy will not work. what is the alternative that will work for dr. rivlin and the medical community? trackvlin: we are on the to having such a thing with the affordable care act.

it has mostly worked to cover the people who didn't have health care coverage. this was under medicare and medicaid. and employers. it has worked reasonably well. it needs adjustments. a few days ago, i was hopeful alexander and senator murray would work together to have a rough stabilization of the markets. and then pull a bipartisan group together in the long-term. within the space of the individual market, which is , but it is what the obamacare was addressed to. within that space, we can craft a bipartisan solution. things need longer-term

that will make health care more efficient in its delivery, whether it is medicare or medicaid, or employer-sponsored plans. unlikely -- scarlet: unlikely to get done before september 30. thank you so much. >> this is so important what we see here. the timing of this has come upon us. kasich, we have john who was come out against this. the ohio governor will be speaking with us on bloomberg television in the next hour. you were talking about how chris christie has spoken out. from new york, this is bloomberg. ♪

scarlet: welcome back to "the

fed decides." -- michael mckee is with us from washington. joining us our are reporters. michael, let me start with you. you have the final question in the news conference. tom was very impressed. this is a chart that shows the correlation that shouldn't be there. michael: this means i can come back to new york if you approve of my question. is what door the fed they need to do and why? janet yellen admitted there were several questions in her mind about inflation and why it is not going higher.

whether or nott the fed has overstimulated markets. if inflation is not moving so quickly, why is the fed -- what is the fed doing? chair yellen: inflation has been running lower the mid-2% objective. -- than the 2% objective. developments that are larger unrelated to broader economic conditions. : janet yellen was asked many times about if the fed is prepared if the economy should turn down, with interest rates so low, to react? she says the fed does have some room to move, it is basing its hopes on the idea would keep going for a while so they can continue to raise rates and

bring down the balance sheet, so if they had to, they could use those as policy tools. scarlet: she kept saying the economy is doing well and that is their projection. there are a lot of questions on inflation, about why it is so slow in moving towards that 2% target. did any of her answers get at it? michael: -- >> we can look at cell phones. but as tom highlighted, there is persistent deflation. the legacy of the strong dollar. it has weekend -- weakened this year. we are starting to see some rollover in the service inflation side of things. if we start to see a stronger dollar, that is going to add another level of disinflation.

that is a reason my team is looking for a different outcome for the fed. we see two hikes. tom: we have a set of conditions . at one point, 7% gdp. do you discern that set of issues? market?ee it in the reserve:ee the federal might make a policy mistake. we have a selloff in treasuries. but that was also from real yield. michael: the market expectation came down a fair bit in some parts of the market. the market is worried the disinflationary trend could persist. the market is setting up for that. michael, was there a coherence at the beginning of

the press conference? chair yellen seemed to be all over the place. do they have a plan in place, or are they guessing as they go? michael: the committee is divided. more fed officials are boring their forecast -- lowering their forecast. have a steep policy path in the short run compared to the longer run. we're not sure they are -- why they are where they are, but they feel enough cohesion to go ahead. the on december, it may be an open question. scarlet: how does the bond market use a deot -- dot plot when it is not clear who is going to be giving a forecast?

pricing foron nearly as many hikes as we have seen. -- not pricing for nearly as many hikes as we have seen. we are pricing for a 50% hike in december, that you were only talking about another hike in 2018. not another for in the next 15 years -- four in the next 15 years. maybe we get real gdp, even if we get less inflation with it . relatively optimistic about a real gdp buildout, even if we don't get the inflation overlay. >> the fed highlights and their forecast that they are significantly undershooting. this would create more wage pressures. and circulate back to consumer spending.

it may lead to stronger housing as well. but the communications difficulty during the press conference, this is the problem with starting the balance sheet unwind without a significant interest rate buffer. when we were initially playing with the idea -- -- with the idea of the unwind, there was the idea of letting the fed rates get higher with the start. now we have a 100 basis points of leeway to re-stimulate the economy. not a big buffer. scarlet: janet yellen pressed on that during the news conference. give us your final thoughts from the central bank, michael. michael: how long does this policy path last? if conditions don't change significantly, they will raise rates. 2018 is going to see a whole new fed. she said she hopes the president will start appointing people.

that will change the outlook and the way they make policy. there isn't a real long-term path. you should always have the last question of the press conference. killer. ira jersey. ira: we need to wait for the treasury department. that will be the next thing. how will a deal with the fed runoff? carl: we need to tighten policy. you see in the spread of the dots a huge variance over the next several years. not a strong consensus. scarlet: we will see how that shakes out. ira riccadonna nad i -- and jersey. michael mckeen. --michael mckee. tom: i have been up for 12 hours. ourlet: that doesn't for

special coverage of the 12 decision. coming up, a power panel from our global business forum. -- that doesn't for our special coverage of the fed decision. this is bloomberg. ♪

♪

>> u.s. stocks closing mixed on that day has the dollar climbs. joe: if you are tuning in on live on twitter, we welcome you to our closing bell coverage. let's look at where markets closed. the s&p dow had a lift in the final 15 minutes, the s&p above 2500, the vix below 10. the dow, a ninth day of gains. the dollar surged. , falling coming down below $1300, now just above that

level. commodities took a leg lower ,ollowing the fed announcement but still higher thanks to gains in aluminum, metals, and sugar. ,ake a look at the bond market a selloff in prices, so yields moving higher. you can see the moves there. the spread stabilizing at 82 basis points. read is the market is concerned about policy and lower inflation. the fed, no big surprises, but the dot plot lesson dovish and the fed reducing its outlook for rates in the long-term. those are today's market minutes. julia: let's move on and turned to politics. mitch mcconnell saying he intends to take of the health care bill on the senate floor next week.

the repeal could have a significant financial impact on states, cutting federal funding for health insurance. joining us now is john kasich from columbus, ohio. great to have you on. you said you see this as another flawed plan. let's be specific. what does it mean in terms of cuts? ohio, but a just 17% cut off the top from the base level. that will impact those folks who receive coverage through medicaid expansion, or it will affect those people who need subsidies to buy health insurance. what thelly get to real problem is. it is like a ping-pong match. the democrats did it without republicans. republicans hit the ball back over the net, back-and-forth,

back-and-forth. thee was a proposal that governor of colorado and i put forward that would give states flexibility and allow states to keep what they have as long as it did not result in people being able to lose decent health care and as long as we did not have large segments of the population that loss coverage. i know they will try to do this pit i don't know if they will get the votes are not come up but this will not settle anything down. remember, we had bipartisan agreement and there was help. this reverses all that. i don't think this is the way to do it. to stabilize the markets, which could become disrupted as a result of this bill if it goes through. i don't think this is the way you do things. i was involved in congress and welfare reform and balancing budgets. we did it together. have you had conversations

with senator portman about how he sees this bill? >> no, i haven't. i made it clear to everybody. i had a call from a democratic governor the other day. the only thing i can do is go to the top of a building and set myself on fire about the need to do this and a bipartisan way. they know how i feel. there is no secret here. the idea you bring pressure whatever, it doesn't work. julia: you indicated that senator portman will be on board with this, why? >> call and asked camp here to i can't speak for him. julia: why are any of the governors that are in states that will face cuts -- is it political pressure to make a decision? i think there is a lot of politics involved.

they made a pledge, repeal and replace with something i don't think is adequate. i do believe obamacare is flawed, but it can be fixed. if you look at what hickenlooper and i and of their proposed on a bipartisan basis, it takes us in the right direction to stabilize markets and gives me the ability to write what i want within guidelines. i can't speak for other people. it will not affect me. i am governor for another year, but i think about what impact this will have long-term, not just on ohio, but 319 million americans. i am reading today because we have not seen much of this bill that if you have a pre-existing condition and the insurance company has to provide insurance, but there is no limit on what they charge you, so does that mean you get pre-existing coverage? it does not sound like it to me.

i don't know what to tell you. we will see what happens. it will be in the hands of a few senators who will have to decide what they think is best for our country. to get into the specifics of what you think it would mean for the voters of ohio, but it sounds like a big heart of your frustration is in the partisan manner, the process through which this has undergone. is that the key source of your frustration, the way it has gone about? >> not just that. you take a 17% cut in the base. i think you can over time reducing the amount of money the federal government puts in, but i think there has to be a little leverage. there is nothing in there that forces the pharmaceutical companies that gives me additional leverage. morefour states having

power, but i believe there ought to be guard rails. i think that when we have an opiate crisis all over the country, things like that have to be addressed. how are you going to help people. i believe mental illness is important as well, and there is no guarantee these people will get help, so give us flexibility , over time reduce the funding, but have guard rails. i think that makes the most amount of sense. there does not seem to be, alexander and murray, nothing happening. it smells like politics to me. julia: it smells like politics to others as well. back to what you said about medicaid and those with pre-existing conditions, will you do what it takes to protect those with pre-existing conditions that they won't have to pay more here? >> sure. you can develop plans that can have re-insurance.

julia: if this plan goes through, will you do what it takes to prevent those with pre-existing conditions paying more? >> it will not affect me. i will not be governor for much longer. this kicks in in 2020. i don't think it is the right direction. i think you have to protect people with pre-existing conditions because it could be your own family. let's think about it. you have somebody in your family that has a pre-existing condition even though they need to be covered, but can't afford to pay for coverage, what happens to them? you are in a spiral that could lead to things like hank >> he. --on't think that is good things like bankruptcy. i don't think that is good. joe: you said states having more flexibility to design health care plans -- >> but with guard rails. joe: from the perspective of a governor, given the option, let's say the guard rail issues

and money was not issue, how would you like to reform ohio's health care system? all, our medicaid program in ohio is growing by less than 2%. theuld argue that it is best manage medicaid program in the country. that is because we took on a lot of battles and were able to place people in managed care. there are a lot of states that don't do it. taking medicare growth from 9% to less than 2%, i think we are managing that well. go, not just to medicaid, but health care in ohio, is to pay for quality and performance. let the market work to reward those who provide good quality, good performance, not the current market system that demands that you do quantity medicine. of things you have to do, and we have started

it out here and hope to grow it over the next 15-16 months. governor, what happens you think to the gop if they pass this measure and then the cbo comes out a week later to give their assessment and looks pretty bleak, what politically happens here? >> it will all depend on whether people are aware of it. people don't like obamacare, but if you ask them if they've want to take away their health insurance, they say no. julia, why don't you get a .ollster on their i don't like to speculate the political impact. what i am concerned about is the impact on people. i'm concerned about the impact on the chronically ill, the mentally ill, the drug addicted. people.overing 700,000 our uninsured rate is at an all-time low in our state come still has room to grow, but that is working.

i would like to see a strong insurance market where people can be an exchange and have subsidies if they needed to afford health insurance. i like to think about different ideas like moving healthier people from medicaid into the private system, but none of that is provided for here. when you ask me all these details, there are no people who know what the details or impacts are. i would never back in the days of congress -- we could not have moved a welfare will. we could not have moved a balanced budget unless we had people in the other party that signed off, and those things have been stable because we did it together. to: how much of the move pass this bill is a feeling of political commitment? the party said over and over and over again they were going to repeal obamacare, and they feel regardless of the content that

they have locked themselves into that? >> the reason i don't want to answer that question is i start questioning people's motives. there is no doubt that the campaign pledge to repeal and replace is very important in the minds of some, but there is also a legitimate concern, and i share it with the tedious nature , the overaggressive role making, that you see in obamacare. i'm not saying it should stay as it is. i'm just saying the first step is to reach an agreement on market.ing the bucke i'm glad to work on the reform of medicaid, medicare, and social security. that you guys understand we are at the $20 trillion debt situation and we are a slow growth country and we need to get out of it and that means we have to deal with entitlements, but first thing's first, and let's do it in the way to make sure people have the health

coverage they need. want to talk to about tax reform. the senate budget committee are talking about making room in the budget for up to 1.5 trillion dollars worth of tax cuts, and that won't the deficit neutral. is that a huge mistake in your view? >> i believe tax cuts when properly implemented yield economic growth, but am not a believer that if you cut taxes that all this magic happens. i think it is more complicated than that. the state of kansas tried to do that, and they had to raise taxes. we have cut taxes, it has been because we felt we had enough revenue to give some of this back to people rather than to raise spending. i know that there are senators cuttingg to talk about taxes without being conservative about the deficit.

i support an amendment that requires a federally balanced budget. i think there are states that are repealing the fact that they passed a constitutional amendment to call for a federally balanced budget. we were up to 30 states and making great progress, and , $20 trillion, and people are moving the other way. i can't explain that to you, julia. you are hitting every topic. the key question. what would it take for you to see in the republican party or president's behavior for you to feel like you had two primary him in 2020? anythingot thinking of like that. my focus is on having a voice that can point some of these things out. a lot of people get worked up when i do it. that is ok. i feel strongly about saying these things for the good of the people out there as i see it and people can disagree with me, but i also believe that what ails

this country is not just washington. fargo,ort on wells football players who beat of their girlfriends on the field sunday, it is across our culture. we are in a tug-of-war. we are going, ethics, and all that, and none of us are pure. when i look at houston, florida, and i see these overwhelming rings and people saying their prayers and they feel like they have nowhere to go, i kind of thing in our own lives as we struggle to create more compassion, more togetherness, maybe we ought to say our own prayers to give us more strength and more effectiveness to bring our country together, because it is not just politics. it is everywhere today. we win this and get back on track?

i think we can, but we may need a little help from our friend who lives upstairs. julia: and someone who does not live upstairs, but can promote these issues and is inclusive. of you out for 2020, yes or no? >> let me tell you what you can rule me in for, being as good a governor as i can be. i don't know what the future is. i'm not making any plans in any way, but i'm not trying to organize something around the country. i'm sorry, julia, i am not a fortune teller or predictor, i'm just not. although, i will predict today most definitively that the cleveland indians will win the world series. joe: ohio governor john kasich, we appreciate your time. thank you very much for coming on. reservep, the federal sets an october start for shrinking is 4.5 train dollar balance sheet. what janet yellen said about that and about the future course of interest rates and the economy.

all that is up next. this is bloomberg. ♪

>> it is time now for first word news. puerto rico has lost all power from hurricane maria. $30damage estimate is billion. the storm could weaken the islands aging electrical infrastructure, which had been jeopardized by hurricane irma. asked president trump to declare puerto rico a disaster zone. the british prime minister theresa may told the united nations general assembly that many people are being drawn to extremist ideology online. her comments came as she urged

internet companies to block the spread of extremist material, calling on social media giants like facebook, twitter, and google to do develop technologies that will prevent content from being posted in the first place. special counsel robert mueller has asked the white house for documents related to the firing of james comey and former national security advisor michael flynn. that is according to the new york times. differentt covers 13 areas, including president trump's meeting with the russian foreign minister and then ambassador sergei kiss me act. plans on handing over the documents this week. anthony weiner could serve 21-27 months in prison according to federal prosecutors. ing as pled guilty to sext 15-year-old girl faces sentencing monday. to audge can grant up

ten-year sentence. wiener has requested probation. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am mark crumpton. the federal reserve setting and october start for shrinking its balance sheet, while sticking with its forecast of one more rate hike here it these -- rate hike are these moves are dependent on how the economy performs. janet yellen mentioned the potential impact from the hurricanes. >> overall, we expect the economy will expand at a moderate pace of the next few years. the third quarter however, economic growth will be held down by the severe disruptions caused by hurricanes harvey, irma, and maria. scarlet: two piece this all, we

welcome our guests. if you look at the bond market reaction, sold off, yields went up, it seems like people are worried about a policy error here. >> the equity markets traded on that bond market move as well. we saw financials benefit because financials do well as everything with yield sensitivity, consumer staples, real estate, all fell. the sector rotation internally is pretty robust. joe: on these headline moves, the s&p ended up today. in the last eight days, a 22 point range. talk about low volatility all the time, but it's getting pretty wild here. >> we basically have not done anything for the last week am a but there has been interna rotation. that is part of the story. while the market has not done

anything, investors are rotating to value stocks, stocks levered to higher interest rates, so theg multinationals, trades that work for most of this year have not worked over the last few weeks. ourselves if this is a short-term rotation or does this kick off a longer term trend. it depends on what the fed does, and scarlet alluded to them remaining where they were in terms of the probability and possibility of hiking rates, yet downgraded expectations here. reduced inflation expectations, and yet we are sticking to our plan of one more rate hike in december and three next year. what are the consequences of that? inflation and are still hiking rates, it may catch up in 2018. >> that is the key takeaway. meeting,ing into this federal governor lyle brainard

is saying we don't know why inflation is so weak. positionshould ourselves behind the curve on purpose. that was leading investors to price and lower real interest rates because maybe the fed will be more patient here. they came out today and said the opposite. not only did they say inflation will be lower and we don't see it getting back up to 2%, but were still sticking with our rate increase path, so that has the effect of projecting a higher path of real interest rates than before. julia: what was the alternative for them? >> to perhaps markdown the 2018 path a little bit. the other striking thing was that in june, there were four people on the committee out of 16 who did not want to raise rates again this year. we thought a few more would join, but no one did. there is an overwhelming majority in favor of a december rate increase. yellended like a janet

sounded more uncertain about why inflation has been depressed. joe: we talked about these one off things in the past, but this time she said it is that more of a mystery why inflation has not risen. >> that's right. you pair that with the willingness to go ahead, and it explains the market reaction, especially the bond market. flatteninge back in because you're taking that inflation risk premium out of the backend because the fed will be tighter for a given path and the front end is steepening because we are expecting a faster pace of rate increases than yesterday. scarlet: a lot of questions about what kind of conditions would cause you to change your plan or timetable for balance sheet reduction. what is christ into equities when it comes to the balance sheet reduction? everybody things are will be fine and no one is pricing in anything. >> the truth is that equities are saying the fed has this under control, and in the event

something goes wrong, the fed will back off. if you think about how the equity market is trading right now, there is a lot of forgiveness because of the post-hurricane environment. any disappointing economic -- inflation for the next few months, it's just the hurricanes, so you have this runway the fed has where even if it is weaker, they can still go in december. hurricane cover is what they have. joe: the market does not seem to care that much about the wind down. even in our conversation, were talking about inflation outlook in the timing of the rate hike, not so much the balance sheet wind down. what did janet yellen say about any possible change they might make it financial conditions change? or coulds the policy,

they say we have to slow down the wind down if conditions deteriorate? >> if there was any question about how import in the balance sheet is, she cemented the idea it does not matter. she said that if things deteriorate, we will probably not change course on the balance sheet, but adjust the rate path. it goes back to the notion that they have a lot of power when you have so many rate hikes baked into the forecast going out the yield curve, you can easily take rate hikes out of interestcast and bring rates down to offset the tightening of financial conditions associated with the balance sheet, but we will not know when financial conditions if they do tighten if it has anything to do with the balance sheet or not, so it comes down to the rate have, and that is what she reinforced. scarlet: our thanks to our guests. julia: coming up, what bill gates has to say about dropping

out of college all these years later. we will discuss from new york. this is bloomberg. ♪

julia: how technology is disrupting health care, energy, and poverty. that rubenstein discussed with the president and ceo of been goatee industries, microsoft, ceo of pepsico, and german and ceo of softbank. africa, thered in is massive gsm revolution. it us and nigeria, we had 500,000 lines in 2001, by 2017,

so ite 139 million lines, is massive. you can see in india where they were able to create 100 million lines and 70 days. >> bill? >> i had an early career in the digital revolution, and that is still the fastest moving things, and it is so horizontal in nature that it would change banking, education, scientific research, sales and marketing. is on a lot of my focus the health area, particularly miracle vaccines, malaria, hiv, i didose are the things to back amazing scientists. the digital revolution is not slowing down, so we get the benefit of that, but in terms of

equity, it is these health breakthroughs i'm excited about. healththink people with breakthroughs can live to be 90, 100, 110? >> i am not working on that problem. there are other silicon valley billionaires who want to live forever. my focus is on the and equity -- in equity. all solvable diseases. we can get rid of that. extending life is very difficult body partsy of your including your brain ware out, so i am not in that. the malaria, hiv, nutrition game. i think every aspect of our life is changing because what these chaps are doing with technology.

the single thing i feel good about is that technology is allowing gender inclusion. having their voices heard, and i hope that progresses into the future. >> you have done two things in your career that were very innovative. you were an immigrant united states and became ceo of one of the most important companies, but you are also a woman. to be thee difficult woman ceo or the immigrant ceo? >> all of it. i came into the workforce when there were hardly any women in senior executive positions, so now we have numbers, but 20-30 years ago, there weren't too many women. that it was difficult being a woman in the workforce. being an indian immigrant got the attention because i was often the only colored person in the room, so that got me attention and i had to work

harder to prove the color and gender actually should not be counted against me. i could do a good job too. >> you had to be more qualified than white men? >> a lot more. >> what is the biggest innovation you have seen in the last 10 years? >> not just 10 years, the last ,0 years, the microprocessor using the microprocessor as a base to create the internet. that has changed the lives of almost everybody on earth, but going forward, i think it is accelerating even more that. >> early in your career, you were a technology innovator. in 2000, you lost $70 billion of net worth. what did it feel like to lose $70 billion of net worth in one year? .> well, it was a crash

at the bottom of the revived myually fighting spirit. by the way, maybe bill does not know, for three days i became richer than bill. but then 12 months later, i became almost broke. 99% broken our share price, 99% in one year. >> let me ask about your career for a moment. of $20e an investment million in a little company that was not heard of by many people called alibaba. it became worth about $90 billion, now worth about $130 billion, so how did you decide alibaba was a good investment

and you have any more that you could recommend to us? >> jack ma, not because of the business model or the technology , but because of his charisma and leadership. china had enormous opportunity to the upside and i said this is a guy that can be the leader for this innovation. you have tried to take a company known for selling sugar water in the view of some people and make it more nutritionally safe and better company. was that hard to beat the bureaucracy when many people did not want to do the things you wanted to do? >> it was hard inside the company and outside the company. even investors were telling me, don't forget americans like soda and chips. don't try to change us. if i as that if they change their habits, they said we change our habits, but we don't

want you to change which are doing. we had to fight on multiple fronts. change does not happen quickly in our industries. consumero change tastes, the product portfolio, and the business system. >> when you go to somebody's house for dinner and they say and what would you like coke? what do you say? >> i say, it is nice knowing you. and they leave. yeah.o leave, without a doubt. sends them secretary a list ahead of time in case there is a mistake. bill, i'd like -- to a question. people are interested in this answered all of us have used personal computers and are used to turning them on. we need three fingers to do so, control-all-delete. it is sometimes difficult to do that. why did you do that?

[laughter] >> the ibm pc hardware keyboard only had one way that it could get a guaranteed interrupted generated, so clearly people involved should have put another key on in order to make that work. a lot of machines now do have that. it is more obvious as a function. >> no regrets? it worked out ok? >> i'm not sure you can change small things in your life without putting other things that risk. if i could make one edit, i would make that a single key operation. >> by the way, you dropped out of college. do you think had you gotten your college degree that your life would have been better off? [laughter] like the time, it felt there was a huge sense of

urgency that the microprocessor , writingolution software for, and a lot of existing companies with infinite resources would do that, so the sooner we did it come of the quicker we did it, the more hard-core we were about it, so i did not want to waste today. in my 20's, i worked weekends. i did not take a vacation. we had to move at high-speed because eventually ibm did come in and compete with us. lots of companies came along later. of the companies that were formed in that time, we were the sole survivor. oracle did it with another type of software. those are the only two companies that really survived out of that era. plus, we were a broad product company and did platforms and

were international. it would have been hard to hold me back once i saw that opportunity. loved, was very relaxing and you would sit and classes and stay up all night and talk to people. it did not have that same intensity. once i saw the opportunity, i was going to leave. >> what did your parents say? >> they said we were paying your tuition, what does this mean? i said i am on leave. which is true, i could have gone back. generous abouty that. eventually the course catalog changed on you and you are too old for it. they weren't sure if it would succeed or not from so they thought maybe i would head back, but because i was single and maniacal in those days, it was a perfect thing for me. now you arestion,

innovating and a number of areas. one is energy. you started a fund to invest in energy innovation. why did you pick that area? case where wehe have a real danger that even though innovation is fantastic, it proceeds at different paces in different industries. proceeds very slowly for a variety of structural reasons. there is no incentive because a new type of power plant will take decades to prove. your patents will be expired. the regulatory commissions don't want to take the risk of a new type of power plant. change andof climate because africa actually has less electricity today per person than 10 years ago because the population growth has exceeded the electrical generation capacity increase, we have a huge problem.

energy, so iost think for those who can spare capital, risky capital, that joining in on this is a great thing. >> is it easy to say no to bill? so much.respect bill i never say no to him. >> so you have that fund and are investing it? >> it is about $1 billion. we hired a team and now have an incredible team from people you know who are excited about what they will be able to do. years, a little longer than biology or digital investment, because proving out plans of scale is very hard. scarlet: that was david rubenstein at bloomberg's global

business form. "what'd you miss?" a blockbuster day. world's most influential leaders and international ceos joined us in new york for the global business form, jack ma included. he is the founder and executive chairman at alibaba and spoke with emily chang in new york city. >> i think the world is shifting from big companies to small companies. the small company means entrepreneurship. i am passionate about small business. that is the solution for this century, creating jobs come innovating, creating. if you are not created as a small business and are not innovative, you don't have a chance. this is my passion, i believe this is the future of business. >> you heard president trump speaketh united nations. what is your relationship like? >> he is a unique president. discussion last

time talking about china-u.s. trade relationship and things. i think the china-u.s. relationship is very critical in this century, especially on the business side. i think they are making progress on that. >> really? top trade negotiator just called china a threat. the president block the takeover of a u.s. chip company by a chinese private equity firm. what do you make of that? >> that happens, here and now and then. this is the way if you see it optimistically or positively, there are comforts and we should understand each other better, so i think the next two years that conflict allt of the time, but whether it will be a fatal disaster, it is relying

on the wisdom of the leaders. what about his attacks on north korea when he says the u.s. will totally destroy north korea if they threaten us? is that the right approach? that, ii hear about think that for people like us who want peace, we don't want people killing, of course we ,are about the nuclear weapons but i think is of business people, i focus on creating jobs and doing good things come in the government has to do that, i think. youren it comes to business in china, president xi jinping has been putting restrictions on the internet. this is your business. what you make of that? the shutting down of vpns as one example? >> we probably see a different view on that.

this is the way i see business. this is our 18th anniversary. haveast 18 years, i questions on china internet censorship all the time, but i am the first internet guide in china since 1995. america has been enjoying democracy for 250 years, and china just started in the past 30 years. i would say in 30 years, it is learning, making progress. for these things, if there is a here and there, it is an issue. 95% on theuld focus positive things. , governingvernment regulation of the internet is such a new thing to any government, i have been talking to thousands of government offices every year.

it is my responsibility to tell them, don't worry about it. this is the way to do it, how to do it, so i never complain and try my best to educate them. >> you think they will be on the right side of history? >> i am 100% for sure. nobody can stop this technology revolution. you celebrated the three-year anniversary of alibaba's ipo, congratulations. amazon and alibaba, the market been flirting with each other. i know you have stayed in your regional lanes, but as you become increasingly global companies, where do you see competing with amazon directly? amazon is an e-commerce company, and very successful come and we respect a lot, but alibaba is not an e-commerce company. we are in e-commerce infrastructure business.

our job is to enable more companies to become amazon. when we see amazon is doing a good job, successful, we tell everybody that e-commerce works. we are not necessarily competing, but investors are jealous competitors because i spent very little time studying how can we compete with them. how can we learn from amazon to empower business and be more efficient. joe: that was jack ma speaking at the bloomberg global business form. more jack ma ahead on bloomberg technology. this is bloomberg. ♪

lloyd blankfein conducting a panel at the bloomberg global business form today. he sees the future for investing in the middle east. take a listen. >> firms like ours were going to effectively take capital out of the country and invested outside the region because that is where the growth was and where the demand for capital was. changes driven by vision 2030 and other countries around the region is that there is a lot of growth and a lot of investment being done in country. and of that is the energy the opportunities presented by the population. some of it is compelled by how to put the population to work and take account of the demographic fact

that there will be so many people and so much looking for jobs, and so a lot of countries in the region want to invest in their own countries and not just passive investors, but in industries for jobs in the decades ahead. when you are considering saudi arabia as a focus because of that transition, what are the metrics you want to see over the next coming years that make you double down? realistically today for financial institutions, it is still a net exporter of capital, in, but ittill going is becoming increasingly clear to us, and if i were influential in that country and had shared those concerns, i would want to make sure the people who are

doing investing for us were also doing things for us that would in thee job creation country and bring new industries and help diversify the economy, which is an absolute necessity. that areay the facts occurring are the two major themes that are causing great changes, which is the restructuring of the energy market from petroleum, and that is a price thing, but something that affects the demand side in the supply side, and then apart from that, apart from energy, is the demographic situation. and so, i would say a lot of it portfolio investing, and now i think the region needs the commitment and the helping in creating further industries

and jobs in the regions. >> one more quick question, you talked about urgency given demographics, urgency given energy. as we know, deep pockets and a lot of these countries like saudi arabia, we have heard about the end of oil for a very long time. how urgent is this question mark counter faction, why can't they wait 5-10 years and take a more incremental approach given the resilience that historic day these countries have exhibited? >> when i read about vision crownlisten to the deputy hear about what he has to say, there is a recognition of the need temperature by the necessity of going slow so that what you want to have produced more stability

does not produce instability. thatu could push a button, button would be pushed because it is there now, and some of these reforms that occur generate the demand. the reform will be to educate the population and make jobs available to those who want them . as the university releases these graduates, there is not clamor, demand, pressure to put their education to work, and that .reate social pressure i should not be the one to explain, but everyone is aware that there are a lot of social forces that are trying to push back change, and this is a huge challenge for the country, and it has great implications for the world.

i think everybody outside the region should be doing the best they can to encourage people because the ramifications and consequences of failure will not just be in the region. that was lloyd blankfein at the bloomberg global business form. joe: coming up, which you need to know to cure up for tomorrow's trading day. this is bloomberg. ♪

willet: the bank of japan announce its latest monetary policy decision thursday, no change in rates expected. joe: i will be looking at initial jobless claims tomorrow. we will see if there are any lingering a fax from the hurricanes on the data. julia: brazil's quarter in the inflation is this a phone? or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost.

so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. >> you are watching bloomberg technology. let's start with a check of your first word news. people haveials say been rescued from the rubble of

collapsed buildings after tuesday's earthquake. leastake has killed at 225 people in several states. search and rescue efforts are ongoing. hasco's had resident declared three days of national mourning. hurricane maria triggered a blackout in puerto rico, the strongest hurricane to hit the island in 80 years. it also destroyed homes and triggered heavy flooding. it is the second hurricane to hit puerto rico in two weeks. no word yet on deaths or injuries. robert mueller once the white house to submit documents related to the firing of james comey and michael flynn. that is according to the new york times. the request includes trumps meeting with sergey lavrov and then ambassador sergey i. kislyak. jake lamotta has died. he will be remembered for his epic brawls with sugar ray robinson.