tv Bloomberg Best Bloomberg October 14, 2017 2:00am-3:00am EDT
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♪ >> coming up on "bloomberg best," the stories that shaped the week in business around the world. daily drama in a d.c. twitter, taxes, trade, and turkey. just some of the trending topics. you played this forward in terms of tax reform, every vote counts. >> almost like a strategy the trump administration has. >> there is a slow, but systematic attempt to move the -- remove the nuts and bolts of the affordable care act. >> earnings season begins with a bang with big banks reporting. the crisis in catalonia continues. >> for 10 seconds, catalonia was an independent republic.
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disaster for a japanese steelmaker. japaneseng for the manufacturing sector. >> the imf puts out a sunny growth forecast. >> while we see the sun shining, we also see clouds on the horizon. worries.mc >> i am really nervous inflation expectations are low. >> we are not trying to address all of the relative price changes that occur in the economy, we are trying to get the underlying rate. >> plus, economists consider the conundrum of tax reports. >> growth will pay for part of it, not all of it. >> you might as well assume unicorns will come deliver packages of money. there is no reason to believe this. >> there are miracles, sometimes productivity growth picks up. and for reasons we don't understand, but it happens. >> that is all straight ahead on "bloomberg best." ♪
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michael: hello and welcome, i'm michael mckee, this is bloomberg best, your review of the most important business news and analysis from around the world. now, president donald trump's legislative agenda was going to be a big story no matter what, but monday dawned with unexpected clinical fireworks. -- political fireworks. >> president trump made an interesting choice over the weekend. he can afford to lose only two republican senators if he wants to get tax reform done, and he decided to pick a fight with one of those senators. the president blames bob corker for the iran deal. he didn't run for reelection only because he wanted the president to endorse him. he wanted the secretary of state job but did get it. senator corker compared the trump administration to a reality show, that the white house was a day care center and the president's threats could
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-- against other countries could put the country on a path to world war iii. >> if you play this forward in terms of tax reform, every vote counts and senator corker, not the most fiscally conservative member, his raising the fiscal issue really is in line with what some members of the far right in the senate have also been saying and that poses political risk for tax reform. >> president trump also demanding congress fund his border wall in exchange for letting dreamers stay in the country. how much more of a distraction will this be? >> it will be another distraction. chuck schumer and nancy pelosi said that is a nonstarter. when you look at the polling of vast majority of americans, they support a clean daca bill that provides protection. it is going to be late -- laid at the feet of the republicans if it doesn't happen. >> a crucial moment in the crisis in catalonia. catalan president is set to address lawmakers in barcelona just moments from now.
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a lot of anticipation in that chamber. we are not sure on the wording he is going to use. we are not even sure of the format parliament might take place. we are not sure if the opposition mode get a say here. we do know they have a majority in parliament and if they want to an act this law that could create an independent republic for them, they have a majority to do it and can get it done. the question is if the president will use the word unilateral, or back out last minute. >> the government is proposing that the parliament should suspend the effectiveness of this declaration of independence in such a way that in forthcoming weeks, we can undertake a dialogue by which there can be no agreement. so we need to open up a time period to have a dialogue with the state of spain. that is something else that should be done today out of responsibility. mark: spain maintaining it is ready to seize control of catalonia if the push for independence continues, if
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-- rajoy said catalonia's efforts to break away from the rest of spain are fraudulent and fruitless. >> it cannot go ahead by that amount of people. >> yesterday, the catalan regional president made the symbolic move, he said i ready am to accept the mandate. catalonia was an independent republic, but he will suspend the talks. rajoy says there is nothing to talk about. this is a fairytale. he is ready to implement article 155. time is running out and he is running out of options. his coalition will probably implode if he backtracks. if he is ready to continue, oy willis republic, raj implement this article and he is out of government. >> the fed released minutes from its september medium showed growing concern that low inflation is more than a passing fancy. policymakers said another rate
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hike this year is dependent on the economic data of the next few months. >> policymakers are taking inflation backslide more seriously than they were earlier this year when they were quick to write it off as transitory and idiosyncratic. now they are pondering whether part of that weakness might be not to do too much broader global trends. that means they are hedging -- hinging their decisions to hike on the next couple months of economic data. they also acknowledged that the hurricanes are going to model those reports. bit of ain a complicated position. what is interesting here, as we look at the roster of who will be at the december meeting, there are about four or five , whichhich -- doves means i'm not totally sure chair yellen will have the vote count for a rate hike. >> jpmorgan and citigroup kicked
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off her quarter earnings season, -- plunged while cities group -- citigroup saw a decline in revenue. >> you did have good topline revenue growth this quarter, but with au balance it out weak capital market, you are getting no revenue growth. maybe 1% or 2% revenue growth. if you look at loan growth year-over-year for 52 weeks. it has dropped from high school -- high digit growth to maybe 1.3% of growth. if you look at activity in the trading market, it is anemic. >> we did get cost control. both city and jpmorgan coming in very well on that metric. that is important because as the revenue environment becomes uncertain, you want to know banks are doing what they can to protect profitability of the firm. the fact you can bring down
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costs and become more efficient. obviously, that provides more upside as the revenue picture improves. >> bank of america posting its best profit in six years, higher rates helping there. wells fargo takes a surprise $1 billion charge for precrisis mortgage probe. the metrics we monitor for these banks came in very positive for bank of america. we're also pointing out that the expense control of the bank of america is quite strong and they continue to focus on reducing expenses to a $50 billion number for next year. the wells numbers, on the other hand, they obviously had the one time charge that we took out. the revenue growth was not as strong as some of the other banks as they continue to work their way through the scandal they have been dealing with. >> president trump has disavowed the iran nuclear deal without it a quitting the multinational accord.
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he has refused to recertify iran, which he must do every 90 days. he hasn't yet quit the accord. president trump: as i have said many times, the iran deal was one of the worst and most one-sided transactions the united states has ever entered into. >> we are in limbo now. essentially. if you look at the broader geopolitical situation in the middle east, this is adding more uncertainty into the mix we have right now. but again, for business, this is not really what people wanted to hear. they wanted certainty, they wanted a sense that this massive market with all this huge potential will be open up again. it looks like this probably will continue the next few years. guy: still ahead as we review the week on bloomberg best, conversations with ims managing director christine lagarde. ubs ceo sergio ermotti and fed
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♪ best,"is is "bloomberg i'm michael mckee. let's continue our global tour of the top business stories. in japan, where a scandal engulfed one of the nations top -- nation's top manufacturing companies. >> shares in japan's third-largest steelmaker continue to fall, being back to -- being absolutely battered. kobe still is down 20% over two days, this after kobe steel admitted to falsified data about the strength and durability of some of its products. >> this is damaging for japan
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and the integrity of the manufacturing sector. manufacturing and exports are the bloodline of japan's economy. the world's third-largest. it comes on the back of other scandals, such as takata's airbags. if this was spread overseas, we know kobe is one of the oldest companies and one of the biggest automakers like nissan and toyota. if it emerges that they are supplying other auto companies around the world, it will\onto -- on japan's integrity and two cause considerable consequences. >> shares of kobe steel falling for a second day, down about 15.7% as of now. as its stake data scandal widens. it now admitted falsifying information about its other products, but insist safety has not been compromised. >> iron ore, powder, also seemed to be the data was falsified for that and that was shipped to one customer. iron ore powder was shipped to
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cash is used for everything from exhaust to powershift -- power steering. we are trying to pin down which customer and that was, but some of the customer has confirmed. one of the problems for kobe steel, over the past few years, the steel industry has seen a lot of consolidation and mergers, which put more pressure on kobe steel to compete with these big huge arrivals. so it branched into other businesses. one of the things we are looking to see is a selloff of assets to not only raise money to deal with liability, but also help sharpen its focus on its core businesses. >> the fourth round of nafta renegotiations begins today in washington. trump says the u.s. will walk away if the deal does not meet his expectations. and he has repeated that. >> we will see what happens. it is possible we won't make a deal, it's possible we will. >> there are a number of priorities of the trump administration in these talks
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that canada and mexico might regard as poison pills. related theeakers country of origin rules, things like that. do people have to prepare for the real possibility nafta could go away? >> there is increasing chatter that it looks like some of these proposals are so far off the limit, so politically impossible in canada and mexico, it looks like a strategy the trump administration has to put a kabash to these. the proposals are trying to make the talks doomed from the start. >> congress failed to pass health reform and president donald trump has now taken his own action, today signing an executive orders which he will says will promote choice and competition. >> my administration will explore short-term limited duration insurance. >> the outline the president has announced are important in
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signaling his intentions and kind of a tertiary affect, the have a chilling effect on sign-ups for the affordable care act heading into the enrollment period and the prospect of pulling healthy people out of the existing system. >> the trump administration is taking the most drastic step to roll back some of the provisions of the affordable care act, saying it will stop making subsidy payments to insurers. in a statement, the white house said the bailout of insurance companies to these unlawful payments is another example of how the previous demonstration -- administration abused taxpayer dollars to prop up a broken system. >> let's be clear about what is happening here. there is a slow but systematic attempt to remove the nuts and bolts of the affordable care act in order to foster uncertainty in the market. and i think catalyze some degree of legislative action.
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mark: brexit talks have hit a wall, the sticking point money, specifically how much the u.k. owes the eu. >> there is no deal. no deal would be a very bad deal. >> u.k. is planning for all outcomes. we are planning for everything. >> the progress made was theresa may's speech in florence, which -- when she said we would pay -- the u.k. would meet its obligation broadly, and continue to pay the budget for two years after brexit. he mentioned it may's speech and said but, the negotiations here today have not put flesh on the bones. the deal has to be approved. there are months of approval processes once the deal is approved, so it is looking pretty tight. >> the trump administration has formally proposed to repeal
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the obama era clean power plant. this was a 2015 regulation and a cornerstone of obama's environmental policy. in a statement today, administrator scott pruitt said they are committed to writing the wrongs of the obama admin -- administration by cleaning the regulatory slate. it will be done properly and with humility. >> they are arguing the obama epa overestimated the potential climate change and health that -- benefits from this rule, while downplaying the potential costs for customers -- electric customers and utilities, and they are arguing the epa under obama overstepped its authority, that this rule was too broad and it allowed to decades of practice regulating power plants because the obama approach required broad changes to the electricity sector. the attorney general of new york and other state leaders have
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indicated they will challenge this plan, and one of the ways they will do that is focusing on how the trump administration is justifying this change. if they have adequately identified a 180-degree pivot in policy. >> john cryan facing increased pressure to perform on his pledges of growth at the firm. some deutsche bank shares have john cryan since raised $9.5 billion from investors in april. there are rumblings that if he doesn't deliver, his job might be at stake. is he on borrowed time? >> he kind of has been for a while, actually. as soon as he announced his strategic shift in march, we had investors saying he doesn't have much time to show that will work. the numbers in the second quarter were somewhat disappointing and the news hasn't gotten better since. he has been described as a fireman and he's come in and put out the fires and he is back into rebuilding the bank.
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i think this is where investors are getting a little nervous that the rebuild is taking longer than they might have liked. john flint as its next chief executive offer after new chairman mark tucker offered not to break tradition and insider tong serving run europe's largest bank. would hsbc be better off going down the barclays route and opting for an outsider? >> i don't think so and i think that's because there was not as much pressure at this particular time to choose an outsider. we are seeing because u.s. rates are normalizing, because growth -- emerging markets are holding up, because growth is there, they want more of the same, which is more low issuance, more cost cuts, and a steady hand at the tiller. that is what mr. flint represents. >> richard taylor won this year's nobel prize in economics
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for his work in studying human biases in decision-making and their effect on markets. the use and diversity -- the university of chicago professor he co-authored "nudge". this is the badge of authenticity placed upon behavioral economics, if it wasn't already. >> thaler was the guy who did all the blocking and tackling and the organizational work to make behavioral economics respectable, to create institutions, to make it possible for grad students to make money in behavioral economics. he was the institution builder who did not want to destroy mainstream economics, but get people to pay more attention to the weird ways we think. >> less volatility in the stock market, yet stocks seem to be going higher. do you have behavioral explanation for this? >> i don't know about you, but i'm nervous and it seems like when investors are nervous, they are prone to being spooked.
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♪ michael: welcome back to bloomberg best, i'm michael mckee. the international monetary fund raised its forecast for global growth this week as it kicked off its annual meetings in washington, d.c. despite a stronger baseline outlook, inflation and monetary tightening remained points of concern. managing director christine lagarde fleshed out the report in an exclusive conversation
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with bloomberg reporter tom keene. tom: have we reached escape velocity on all the agony in the last 10 years? christine: let's hope so, but it is not guaranteed. while we have certainly better growth and better growth year,st, 3.6% for this 3.7% for next year, it is not shared around the world. while we see the sun shining, we also see clouds on the horizon and countries and people not having the benefit of it. tom: how does the imf link constructive tax reform with the worldwide idea of getting our debt house in order? christine: what, you know, needs to be done is to look at the evidence, at the data, at the numbers, and then to determine policies on that basis. with in mind, two things.
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the spending, the political objective of wanting to improve the situation of the middle class and ultimately reducing excess of inequalities, if that is the case in that country. that is what needs to happen. clearly, in those countries that have a heavy debt burden and those that have entitlements coming to fruition, that will probably increase the spending. it is necessary to take into account the medium-term and make sure any tax reform is a revenue-generating. tom: what is so important here is the tone of the imf in an optimistic world. obviously, the united kingdom is off their game with a battle over brexit and all that, and there are other serious issues within poor emerging markets. but you also marked down the u.s. because, am i right the imf is doubtful on successful tax
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reform legislation in the short-term? christine: we actually marked up the u.s. economy compared with our july numbers and marked up a few other countries, including advanced economies. what we hope to see is implementation of the reforms that we have called for for many years, a good solid tax reform. that will be simpler, corporate -- where rates, particularly corporate rates will be lower, a base much more solid and clear. that is what we hope to see and the sooner it goes through, the better. michael: still to come on "bloomberg best," more headlines from a busy week in business, including the latest bad news for uber, and fighting words on a trade from the british mp. straight ahead, another dive into the week's interviews. the tax plan doesn't have much detail yet, but some highly respected economists weigh in on its all-important assumption. >> there is very little reason
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♪ >> i think what is good for the market is that you don't limit participants to the marketplace. i think liquidity is critically important and when in times participation of stress, when things are like they are when you are mobile, but when you are in stress you want to make sure everybody is in the marketplace. act was ae volcker's little vis at best -- advised at best. the banks should not be allowed to prop trade. there is nothing wrong with it if they are regulated like everybody else.
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michael: that was ceo -- cme group chairman and ceo terry duffy expanding market participation. we had another exclusive conversation with ubs chief executive sergio ermotti. julia chatterley and joel webber asked him where investors are focusing their interest and whether he is worried about complacency. all assetross classes. , would say across the board andalso in corporate costs in the investment grade. i see a lot of complacency in the level of risk premium that investors are getting for the effective risks they are taking. julia: enough to cause alarm? sergio: not alarm, because
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trends seem to last longer than we expect and therefore, it is too early to say that this is alarming or not. but we have to pay attention to that. >> what are you hearing from clients right now? what are they coming to you and asking for? sergio: i guess, we see a little bit more of a willingness to deploy cash, but that hasn't really changed from the beginning of the year. we measure a little bit our indicator, cash balance with the bank. we have been running the last four or five years and the high 20's, now we are going down to the mid-20's. that is good news. you know, a little bit more willingness to deploy money and invest money in equities than in bonds or any other asset classes. still looking for diversification, the conviction level is not very high to be honest. the trump
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administration's tax reform plan was another conversation throughout the week. will the proposed cuts lead to huge deficits or generate sustainable growth to pay for themselves? three eminent economists addressed those comments on bloomberg television. >> cuts in the corporate rate will increase investment and productivity and wages. the tax cut won't pay for itself, though. there has to be base broadening, as well. growth will pay for part, that not all of it. the two sides are talking past each other a bit, but the center of the debate needs to be growth and wages. lower corporate tax, higher wages. >> so if, in fact, productivity is key and that is driven by capital investment, how can it be that corporations are waiting for tax cuts to make that investment? the cost for companies has been approaching zero for a long time. if they wanted to invest, they would be investing right now. >> i think a lot of companies
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are confused about the state of growth in the economy. when they ask about interest rates, tell me about growth and i can tell you everything. basically, businesses are afraid the economy is in a slow growth mode. tax reform is one of the few things that can change that expectation and change the climate for business investment. as well as the location of that investment inside the united states instead of abroad. >> their message in d.c. is that we can get up to 2.9% over 10 years. that's how they think it will pay for itself. now you said it won't pay for itself, but where do you think gdp can get to sustainably over 10 years, given the difficulty forecasting the next six months? >> i think it is quite possible the gdp growth could get to that level, but it would require more than tax reform. you said the demography was destiny. i don't agree with that. the bureau of labor statistics
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forecasting only a modest 2006 decline in labor force participation in the next decade. they knew what demography was. we have seen a collapse in labor force participation. better public policy can fix that, but that is about more than the tax bill. >> the underlying growth rate seems to be lower than it was before the crisis and we don't understand exactly why, but we are not going to get 3% growth anytime soon. >> the idea we can't get to the -- back to 3%, specifically around gdp. we have an administration that would like to generate 2.9% growth over 10 years. you are basically saying that is not possible, even with what you see in the tax plan? >> nearly anything is always possible. is it likely? no, it is not likely. the big issue in the u.s. and elsewhere in europe is that underlying productivity growth
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is low, so you had aging to this -- add aging to this and this gives you growth rates which are far below free. there are miracles, sometimes on activity picks up and for reasons we don't understand, it could happen. it could happen. i don't believe that tax reform on the table would generate this, but it could happen for other reasons. but it is very unlikely. >> there is very little reason to think tax cuts would matter one way or the other. for underlying growth. if the base cut taxes, you cut tax collection. that is basically what happens. >> if you are arguing the financing will be provided by higher growth as a result of the tax cut -- >> you might as well assume unicorns will come and deliver packages of money. there is no reason to believe this. >> on the corporate tax side, are there ways you think taxes could be reformed in a productive way that would be more efficient and logical? >> it is funny, the reform paul
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ryan floated this year, that destination-based cash flow tax, which included the border tax adjustment, was a not stupid idea. in fact, it was one of the few things i have seen from paul ryan -- >> this is a big moment where paul krugman is praising something that paul ryan -- that is a pretty high compliment. >> it has bipartisan support among tax experts. people were saying this is a good idea. and of course, it being the one thing i have seen from paul ryan that was not a terrible idea, it died instantly in the political arena and without that, without the border tax adjustment that is the piece of that, there is no way to make a significant cut in corporate tax rates that doesn't explode the deficit. >> the minutes of the moc >> -- fomc september meeting answered questions about the monetary policy, but further insight came from the one-on-one
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interviews we did with fed officials. let's start with manus cranny's conversation in zero with chicago fed president charles evans. i'm thinking it is going to take longer to get to 2% then many people. we might need a continued accommodative stance. from here on out, every rate increase will get closer to that line where we are not sure if it will lead to inflation moving up. and so, those are judgments we have to come to before the next rate increase. manus: from the data you have seen so far, where do you stand on a december hike? >> it is too early to say. i think the inflation data has been disappointing. i understand, i have read the arguments, i have heard them, that it is likely due to transitory factors. there certainly have been a number of those in the u.s. i would say that low inflation
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is a global environment and the whole world is dealing with transitory effects. ok, yeah, i'm sure that some of that is true, too. i'm really nervous that inflation expectations are low. they have been low for quite some time. our fmo -- fomc statement going back to october 2014. we have been calling out market measures, they are moving down and they continued to be low even though they bounce back a little bit after the election. i think survey measures are also weaker than we talk about. >> is it like waiting for godot currently? you say it is going to be next year. where is it going to come from? >> what we have seen is a lot of tightening of labor markets the last few months and that will put upward pressure on labor -- on wages. we will see prices move across the board. we have done a bunch of research and our analysis suggests labor force participants are usually
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--partisan -- partition participation rates have really started to pick up and we are at the end of any sign of slack in the marketplace. when you get inflation a few months after the things that cause it take place -- that is what you are suggesting. with that in mind, will the fed go in december? >> i don't know. one of the things we tried to do and i try to do in advising my colleagues, is let the data tell me what the marketplace is doing. for us right now, because the storms have racked a lot of my district, there is a lot of noise in the data coming out and i'm going to try to go into the field and talk to my business contacts and get a sense of how -- across the district and get a sense of how disruptive it has been and from there, draw a conclusion about what i think we should do in terms of monetary policy. >> a year ago, eric rosengren
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said weloomberg news will be close to our 2% inflation target by the end of 2017. i'm picking on you, but that is the kind of forecast that has drawn some questions on global wall street. >> right. if you look back to march, we were still expecting 2% inflation and one of the things -- temporary things that occurred at that time was wireless pricing change, that actually had a huge impact on the current numbers. we are trying to get the underlying trend on prices. there can be relative prices that change a lot. that is one reason we focus on core inflation rather than total inflation. sometimes we get spikes in oil that are not predicted, sometimes oil goes way down. that is not predicted, as well. we are not trying to address the relative price changes in the economy. we are trying to get the underlying rate.
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the reported inflation is quite low, it is a reflection of temporary factors. we are about to have more temporary factors. the hurricane is likely to have had temporary factors. -- effects on inflation as well. that is not something we should react to either. where weve periods have relative price going up and down. we want to get the underlying inflation rate. my expectation is that we will get underlying inflation rate closer to 2% over the course of next year. ♪
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they are cutting upwards of 516,000 barrels a day despite the fact demand is holding up pretty strong. i found this interesting at a time where exports from iran and iraq are increasing and they are getting market shares. >> i think they are trying to keep the rhetoric stable. what opec has always tried to do is help predictability for the demand side of it. they can control supply, but not demand. what is the best they can do? they do this kind of action. it is really the back and forth, consolidating the trust they think they have built up with a market and the are showing -- they are showing the price we see today is justified. >> tensions between the u.s. and turkey are rising, both sides suspending visa services for citizens looking to visit the other country. this comes after turkish president erdogan arrested a person who works at a u.s.
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consulate. it is taking a toll on the lira and turkish stocks and bonds. >> late sunday evening, the u.s. announced it was suspending nonimmigrant visa services across turkey effective immediately. turkey a few hours later released this similar statement. saying it was doing the same for american citizens. the reason behind the move is because last week, turkey arrested a turkish national who worked for the u.s. consul here in istanbul. turkey says he is allegedly involved in the failed coup attempt last year. >> erdogan gave brief remarks in kiev and the most interesting parts of those remarks is that he lays the blame on the u.s. ambassador and not the administration, which is his way of leaving the door open for some sort of reconciliation, direct president to president. >> the cofounder planning to -- the cofounder planning to
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start two new funds according to bloomberg sources. why now? >> well, investors are leaving hedge funds, but some of the traders who invest for the monster fund, they have good track record. if they market their performance, maybe there is a probability some of those investors can invest with them -- they have lost -- they manage less than $12 billion, down from $40 billion four years ago. guy: -- mark: what gives him the confidence to offer more products of the fund if they are not doing well? >> macro is making a comeback, maybe a small come back. it seems things are turning positive for these macro managers. >> billionaire activist investor bill ackman spoke with number of
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about the wide range of topics. it is his ongoing proxy battle with payroll firm adp that is front and center. he says there will be no compromise with adp because he wants a mandate for change. >> not at this point. what he said is the board would have a change of heart to make a settlement. he said if they are willing to implement his plan and push to the changes he wants and maybe one would be enough, that as it -- but generally, as it stands, he sees no room for compromise. >> general electric has a new ceo and now a new director. ed garden joins the ge toward dashboard yesterday, nelson peltz has been pushing ge to get its profits up since acquiring its stake in 2015. mr. garten said he is disappointed about the recent performance of ge stock, but believes it represents an attractive long-term investment
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opportunity to the upside. is this basically conceding? you were right all along? >> yes, at first, they said they have a good plan and we will lead you a lot. then the stock went down. maybe we won't leave you alone and now they are forcing their hand. also another board member was leaving. the timing worked. but the stock has been terrible. there was first euphoria, change realized,then they you can't turn it around like that. it will be multiple years to get this thing reached. it has been restructured, what -- but to turn cash flow and other things around. >> the continuing saga of uber's legal troubles, the company facing two additional criminal investigations. five ongoing probes of the world's most valuable start up. >> very quickly, we have we have bribery, fcpa -- fancy acronyms. >> the rest are not. the one rooted in the legal
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fight with the self driving car, and whether they obtained trade secrets there. , hell and aing greyball are the two remaining competitions. -- software programs. the fact pricing is under a criminal probe, as well. francine: aside from brexit, prime minister theresa may is grappling with fallout over trade disputes across the atlantic. as tensions escalate. how will this end? this has turned ugly. jobs at theatens belfast plant. what is next? -- the king of corporate welfare in america. they are subsidy junkies and this is the most egregious hypocrisy i have seen in international trade in many years and they need to understand the way in which they are playing does not sit well
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with u.k. parliamentarians. the way in which they had sold and leased back the planes to monarch airlines is something i will be referring to the eu commission to look at whether there is an anti-dumping case there. francine: here is boeing's response. the case in the u.s. has been about compliance with trade law. they say despite the recent rhetoric regarding these proceedings, this case remains to focus on preserving a level playing field in the aerospace market. mark: the ecb could be close to making a change. while learning from exclusive bloomberg reporting, the central bank considering cutting the monthly bond buying by at least half. starting in january. policymakers could reach an agreement on how much that the central banks will buy at the ecb's october 26 meeting. is there any to stipulate that it will end in september? is that causing some division
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within the ecb? >> it is quite clear that a decision will be reached in october and it is also quite clear that no matter what the hawks or dubs can be, everybody -- doves can be, everybody is in agreement, it seems. they want to exit the program gradually and carefully. whatever reporting has shown is that this compromise might lead to extend the program for nine months at the pace of 30 billion euros per month, which is the -- half of what has been happening so far. ♪
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♪ >> this is the spl see unction -- splc supply chain. you can see shinzo corporation at the top, mitsubishi, toyota, general motors, nissan, honda, clearly this is something that has extended to vehicles on the road. michael: there are about 30,000 functions on the bloomberg and 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 lead you to our quick takes, where you can get important context and fast insight into timely topics. here is a quick insight from -- quick take from this week.
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inoculations the second , given not less than two weeks after the first. minority of parents believe this does more harm than good. this group undermine progress against disease in europe and the u.s. and health officials worry about future setbacks. including who has endorsed it. >> two years old, two and a half years old, a child went to have the vaccine and came back and a week later, got a tremendous fever, got very sick, now is autistic. >> >> here is the situation. the vaccine backlash took off in 1998 when the medical journal "lancet" turned out to publish a fraudulent discussion linking it to autism. the journal retracted the study in 2010 and u.k. authorities stripped its author of his medical license, but the idea still took hold. preventable diseases are on the rise again. the u.s. was measles free in
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2000. the number spiked to 667 and 2014, worse in europe. there were 14,000 measles cases in 2016, whooping cough has remained at elevated levels since 2012. the choice not to vaccinate doesn't just affect individual unvaccinatedce kids live in clusters, groups can lose immunity. the pathogen dies out in that area. communities lose heard immunity, those who can't be vaccinated for medical reasons or are too young, become susceptible to infection. even those immunized because no vaccine is 100% effective. here is the argument. the u.s. states set vaccine requirements for school. some public health specialist -- some allow waivers. some public health specialist s are limiting these waivers and
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a court has agreed. in a striking down a religious exemption, mississippi cited public interest in keeping children healthy. others worry that making vaccinations more compulsory for school attendance will harden the opposition. 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 will be offer "bloomberg best" this week. thanks for watching. i'm michael mckee. this is bloomberg. ♪
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♪ lisa: with 30 minutes dedicated to fixed income. this is bloomberg real yield. ♪ lisa: coming up, what will be the pin that pops the bond market? perhaps it will be the central banks as ecb firms up its plans to taper. leverage levels are creeping up all over as the imf focusing on the risk to financial stability. the largest u.s. banks report earnings and revealing a less credit where the american consumer. how big of a concern is that for debt markets?
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