becomes whether this administration is going to use its authority increasingly to prop up the system they have said they do not want to have to continue. the administration does have some tools at its disposal to impact how drugs are priced or within theseace compliant plants. as the administration want to continue to operate within the obamacare framework or will he go outside and continue with efforts to so-called repeal and replace the plan? >> what do you make of that, does that seem realistic? guest: there are a number of steps that have to happen before that would become law. if the secretary said they are trying to put out some requests

for information around that is something they could do. the interesting thing is i think transparency is one area where you will get bipartisan agreement. republicans and cuts will say it would be great to have more transparency around the list pricing, it would great to have transparency around r&d costs. the industry has said on the r&d side it is difficult to tell you how much r&d costs are ached into the cost of that one drug because they are amortizing all the losers into the winners that they are selling in the marketplace. that would be a major change and this is one area where the administration is stepping out beyond previous republican proposals to say we are willing to have a conversation about how much information consumers have and the administration should get some kudos for being willing to have that discussion. it is hard to do in the context of this company did system. scarlet: the theme was more disclosure to the consumer and

the consumer will help drive savings of the system. i want to follow up on something else that the president and the secretary mentioned with -- which was to require other countries to play -- pay more. the president mentioned he would leitheiser tot [indiscernible] how does it work to insert this element into what has already been tense negotiations? >> this is something a lot of people have question. it is difficult to imagine how happens. what you're asking is for other countries to alter the pricing structure for pharmaceuticals in their internal marketplace. if they were to work it into trade negotiation, it could be one of those things where as part of a negotiation the u.s. said we are not willing to provide these three or four concessions unless one of the

concessions you are willing to provide is some sort of situation where drugs can be allowed to slope to a higher market rate. strict price controls limit the pricing in most countries that have single-payer systems like canada and the u.k. how this hatch and -- happens is a big question. it is something that could be inserted into the conversation. that it -- appears to be what the president wants to do. >> this is obviously an election year issue. it plays well to the presidents base and all consumers. does the administration need to deliver this year or is making them a priority in announcements and public pronouncements enough to satisfy voters? >> talking about them and making a priority is probably enough. the changes will take years to

as much as they are talking about it, that will give them some advantage going into the elections. scarlet: thank you so much. automakers arey stuck between a rock and a hard place. trying to resolve the battle between california and the trump administration. from new york, this is bloomberg. ♪

mark: president trump and his health secretary have laid out new proposals designed to reduce truck prices. the president says the plan will , moreo tough negotiations competition, and much lower prices at the pharmacy counter

and will begin to take effect in. mysident trump: administration is launching the historyeping action in to lower the price of prescription drugs to the american people. to a doing this, we have been working on it from day one. it has been a complicated process but not to complicated and today it is happening. ideas requirese drugmakers to disclose the cost in tv ads of their medicine. this despite president trump's decision to pull out of the accord. he called for calm and for dialogue on all sides. insulting and bullying,

systematically destroying and dismantling everything that is in place. as the mode of our times. been assurede has by president ronnie. she added the u.s. cannot undo the agreement by pulling out aying, this deal is not bilateral treaty. it is a un security council resolution and it become -- belongs to the entire world. for vice president joe biden said the white house officials comments about john mccain showed that decency hit rock-bottom with this administration. opposition tothe the cia nominee. the aide said it did not matter because he is dying anyway. that is according to two people who were in the room and who spoke to the ap. biden, democrat, says mccain is a genuine hero and "deserves

better, so much better." global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. >> one million more cars made in the u.s., that is what president trump told automakers he wants. he spoke to leaders who have gotten caught in the crosshairs between the white house and one critics,ggest california governor jerry brown. the trump administration is proposing a rollback of obama era regulations. more with our correspondent. you.t to start with from your perspective, how does

-- how do auto executives feel like today's meetings went? >> they wanted to avoid a war with california and what we are hearing that is something that the trump administration may be doing based on donald trump's comments. it has -- did not look that way going and where you had the epa and scott pruitt sending signals tot they were going undermine the state of california and with president may see that this changes course at some point. we have seen him do that before. the reason auto companies see this as important as they want fuel economy and emissions rules to be relaxed a little bit from the obama europe standards. they want california to come along. they do not want to upset california and resulted in the situation where they have to answer to epa and california. other states adapt california's

rules. epaas the focus more on the and emissions standards, was he talking about that with the car manufacturers or was it focused on getting jobs back to america? both. they are facing a regulatory framework that is uneven in states like california versus what the federal government is proposing. i caught up with the fiat chrysler ceo. deal withus have to global standards. we do with multiple standards on a global scale, it requires a phenomenal effort in terms of engineering and manufacturing to make sure you comply. >> something else that came up was the commodities issue with aluminum and steel tariffs. chrysler has not taken a

position but other auto industry -- companies are and are against it. they feel it would raise the , chrysler saying they trust where the president is taking them in the long-term. something that did not come up was nafta. in regard to the threshold for how much auto parts have to be manufactured in north america. raising that from 62.5%. inching closer to the deadline. scarlet: the relations and -- theeen car executors and administration have not been smooth. ford backtracked and said they build in mexico. we have seen carmakers announce decisions to invest, things they

have already put in place. talk about how the -- that pulled -- played out. whereesident had comments they let him go along with that. have that companies investing in the u.s. and they are emphasizing those investments to appease trump. that is not enough for the president. ofn he reopened the review fuel economy rules a year ago he said to them now you need to hire more and build plants and build cars in the u.s.. we have seen a lot of announcements that were planned. we have seen some incremental announcements for -- where toyota and mazda said they will build a factory in alabama. that is the most significant announcement we have seen. we have seen incremental announcements, most of which have been planned manufacturing moves by these companies. i am curious about who is

driving the bus when it comes to setting standards, is it california or president trump's administration? >> it is both. the important thing for california is they want to continue to be able to set standards and that is something that is potentially under attack .y scott pruitt cpa leading this?s auto sector is having a crucial role in that development. these are ongoing talks. anything concrete. i'm interested to see in terms of the next threshold, the permanent ande regard to steel and aluminum. a lot of german auto companies would like to see that made permanent. also nafta. president trump would rather deal with president penn and a

nieto. tell you why the anxiety is increasing at deutsche bank. from new york, this is bloomberg. ♪

scarlet: in the weeks since deutsche bank outlined its turnaround plan, uncertainties are mounting. joining us now to explain. for a while deutsche bank has been bleeding talent. i think of the alumni that is on the street and they are everywhere. -- has reached fever pitch as of late. >> a lot of it comes down to how deep the cuts are going to be

and are people going to stick around to find out? we reported that there are considerations for cutting as much as 20% of staff in the u.s. the bank is saying a lot of the cuts will be toward performers but when you cut that deep it raises questions about commitments to specific areas and people in that part of the bank may not want to find out. of talk thata lot deutsche bank had to extend big bonus offers and compensation packages to entice real talent into their doors in the past two years. it morel have to make difficult on that level? >> definitely. to keep the top talent, because they have had so many switches in strategy, a little over a year ago use -- you had john cryan saying we are pivoting

back to growth. we need to grow revenue and that did not happen last year. thereu're moving back to was a memo that came out earlier today about new leadership talking about dramatically accelerating cost cuts. the swings from growth to cutting lead to that effect. scott: also a lack of clarity on what they want to emphasize and what they do not. >> they are getting out of energy banking at a time when that is a surging business. can you make sense of where exactly they want to emphasize their presence in the u.s. or is that up in the air? >> it is a little up in the air. they talk about areas where they have been strong historically. you have seen in the past they have been good on currency front. part of the issue also is because there have been so many restructuring plans and changes, you have seen some clients and

there were concerns about their capital level, there were some clients that stepped away. what areas do they used to be good at and what are they still good at, those are the questions. scarlet: the bank is seeing the best people who have left and those are there are wondering. there was a story about how anxiety is growing and how there was a lot of gossip in the milken institute earlier this month with executives asking each other and gossiping over which businesses are to bank would keep and if they were going to get out of business, what kind of people they would want to poach. we spoke with david mall -- david solomon about how the retreat would mean an opportunity for the other banks. >> if a big institution steps away from the institutional should be able to

benefit. we will watch and see and serve do weients well and if we should benefit if it happens. >> things could change again but deutsche bank in the last couple of years was very aggressive in getting ahead in capital markets. they wanted to build and plant the flag and build out their u.s. business. talk about what their reputation was on the street. >> they were seen as aggressive, they were seen as top bidders for talent. after the crisis they talk about being one of the survivors, being, as some people pulled away from some of these businesses, deutsche bank was still going to be there and they will gain more share. froms had gained shares them. they had to address some of the issues. both --ill benefit

most? >> is so far, it is u.s. banks. as you tend to see, clients have spread out the business but jpmorgan has been the big winner. the amount of share they have gained has been pretty dramatic. >> thank you. it is time for the bloomberg business flash, look at some of the biggest business stories in the news right now. semantic dropped more than 30% after the world's number one softwarecybersecurity admitted revenue and profit will come up short. they also disclosed an internal investigation into an informeded matter and they will delay filing fair annual report. shares fell the most today since 2001. the former head of real estate

at harvard university received $24 million in 2016. he was the highest paid employee during a time when they trailed its peers. bitcoin is winning above the $9,000 mark and that ended today. they declined after south korean prosecutors raided the offices of one of the largest crypto it -- crypto-exchanges. this was part of a broader selloff in the market. jeffrey katzenberg has raised $800 million in financing for his video startup. high-endny will fund

tv series that have you to -- youtube links episodes. that is your bloomberg business flash. let's get now to our stock of the hour. getting a jolt from a couple of contracts. are quadrupled and continuing their upper drive. i had to look it up. is $13 million. >> it has gone up almost 300%. smaller.ll but it was it, and because it kept saying it as one of the most actively traded stocks this week even though it is this tiny company which seems to have spurred this action. the company was signing on with whole foods. it is only three in pennsylvania. that can make a difference.

>> it was enough to make a difference. florida-based a company and it has some charging stations in miami beach but it is going to expand how many stations it has. it announced a couple of weeks ago it was going to renovate and reduce some of the charging stations at mcdonald's in san francisco. it has some charging stations around the country. wholked to david welch covers auto for us because i have no frame of reference. some of the automakers have their own charging stations they have made and there is charge point that also has charging stations. that is a competitive landscape from what i could suss out. >> how much is it tied to the fate of tesla?

or the other electric cars? it's fate is directly tied. some of the electric vehicle offerings from other companies. you see areforecast that it is going to grow and not just because of tesla but because of the other automakers. the interestting in this area. i put together a chart not just of the stock price which is up 290% but on the bottom what we has it -- have is the volume. tuesday, they were about 60 million shares that traded hands compared with 42 million for apple. are getting them around four dollars versus around 180. on tuesday the volume was 44 million shares versus 28 million. a lot of people got interested all of a sudden.

>> usually it is 20,000 shares or 30,000 shares. the market closes next. this is bloomberg. ♪

>> tech shares weighing on major averages. the 10 year yield slightly below 3%. scarlet: if you are tuning in live we want to welcome you to our closing bell coverage every day from 4:00 p.m. to 5:00 p.m. eastern. we begin with our market minute. kind of mixed close for u.s. stocks. for the most part indexes rose for the week, the best we can two months. you had the inflation data that indicated price increase -- part -- price increases are tame. not much changes in the macro picture. the nasdaq little changed on the day, the dow adding 91 points. at individualook

names. we had the president outlined his plan for reducing drug prices and we saw movements in the pharmacy benefits manager, not the way you think. lisa: he wanted to get rid of they hadnt because benefited and profited off of their role. he did not point them out and we saw express scripts and cvs tumble but they reversed and shut up. they closed up on the day. perhaps that rhetoric was priced into their shares. symantec down and wall street was blindsided when the company said it is conducting an investigation that will delay the filing of its report. all this was folded into the fiscal first-quarter results yesterday. when analysts started asking questions they were basically shut down. cutting the conference call short and canceled callbacks. there was a raft of analyst

downgrades. lisa: they pulled a tesla. people did not like it. an interesting week for bonds. the 10 year yields just going up a touch but we were talking yields and we ended the week the same place we ended it last week. what is most notable is the yield curve. very much of a flattening trend particularly coming up from the long end, there were 30 year and 10 year options of treasuries this week. between fivehe gap and 30 year treasury's collapse. since 2007. this ties in to what we saw with the currencies. we saw the dollar moving away from its strengthening.

one place where it was not losing was against the argentinian case. the peso tanking to its lowest level on record versus the dollar. the euro strengthening a bit against the dollar. you saw the weaker dollar and the dollar strengthening against the turkish lira. definitely a lot of action there. at oil: we are looking on a five day basis. it climbed 1.2%. down, theit did close second drop this week. you have to look at the broader picture. oil has closed higher for a fifth week in five and holding above $70 a barrel. the president pulled the u.s. out of the iranian nuclear deal reducing the likelihood of a rainy in oil keeping prices lower so we saw prices surge as a result. let's take a look at gold and copper.

copper basically unchanged. those are today's market minutes. for more on today let's bring in michael hansen. the chief u.s. macro strategist. we were talking about a goldilocks scenario with the latest inflation data. rates are no longer surging the way they were before. to talk of a 4% yield seems be in the rearview mere and the dollar is not strengthening. is this a all the locks scenario? >> in some sense, yes. you have a situation where the day d'este to are good. there is still risks down the road. we could get stronger growth and higher yields. solid.or market is growing above trend and to the inflation numbers picked up early and people are extrapolating these bass effects to higher inflation and we are not getting it right now. it is always where we overshoot the target. lisa: risk on, buy stocks.

you have a situation once you got through the inflation data, it all suggests we are picking up not dramatically. it has made people more comfortable with the fed not overdoing it. >> given the fact that -- given the backdrop, why would you not advise clients to go full on risk on right now? >> there are sources of uncertainty. we are in the midst of negotiating trade deals. there is some uncertainty lingering but certain stocks may be well exposed.

automakers are number one on the list. there is the issue of what will happen with china. other big markets was backing away from expectations of tighter policy in europe. there is uncertainty on the convergence-divergence story. will run fore that forever. lisa: everyone keeps talking about what a blockbuster earnings season it was. the retailers have not begun reporting walmart next thursday. the consumer has been feeling pretty good. what is your read on why fromtors do not feel good the earnings results we have seen? >> it may come back to the idea that there is a lot of fear about inflation eating away at profit. you have that story fading. what is interesting was in the

consumer sentiment survey. buried in the details is a note that consumers are expecting wage gains. they are not going to see their suggest themay risks are weaker if you are not getting wage pickups. it depends on what the market is focused on. >> that is what we are seeing in the flattening yield curve, any game we are seeing will come at the expense longer-term. you thinking about cash because even as we see in longer-term rates go down you see short-term rates rise. are you advising people allocate money to short-term debt? >> it is a common trade and it is a sensible one. the longer horizon has become less certain and given that the curve has flattened what is the point in taking the duration risk? >> have you been increasing your

allocation to cash? it makes sense. >> the banks are not offering it yet. perhaps that will change. thank you so much. we are minutes away from the launch of the spacex falcon rocket. ,e will bring you that lift off it is moments away. from new york, this is bloomberg. ♪

mark: i am mark crumpton with first word news. president trump and his lawyers probably will not decide with he will sit down for an interview robertecial counsel

mueller until after the summit with north korean leader kim jong on next month according to the president's legal team. rudy giuliani told the at -- associated press, "i would not want to take his concentration off something far more important. saidorld health director vaccines will be shipped as quickly as possible as the number of suspected cases in the latest outbreak grows. the emergency team told reporters in geneva that in addition to getting vaccines to people, there are infrastructure concerns in congo which he describes as dire. >> there are very few paved roads, very little electrification. very little water sanitation. the only way we will announce a serious responses through -- we are talking about an area 280 kilometers.

it is going to be extremely challenging in terms of the response. mark: congo's health minister announced the first death since the outbreak was declared earlier this week. fever blamed for the death has not been confirmed as ebola. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am crumpton. this is bloomberg. awaiting there launch of a rocket. it was aborted yesterday with 58 seconds to go before liftoff. spacex will attempt to lend this. let's bring in sean casey. to have you join us.eat talk a little bit about the significance here of the block

five falcon nine. this is the latest iteration, the most powerful iteration and -- big-- spacex has good plans for it. >> it is built for reuse and reliability. there have been several improvements associated with this vehicle. it is the last upgrade to the falcon nine series. improved protection for the engines for reentry and improved storage mechanisms for the landing legs so you can quickly turn this around. vehicle is intended to do 10 flights without a scheduled maintenance and then expected to do 100 flights before it retires. this is a phenomenal breakthrough for spacex and the entire spaceflight industry.

scarlet: it looks like this is going to happen provided that nothing goes wrong like yesterday. we do not know what happened yesterday. we are counting down and the launch window is -- if there is another delay goes until 6 p.m. it looks like we are going to get take off in five seconds. 3, 2, 1. improved protection for ignition, lift off. you're looking at live pictures from the kennedy space center in cape canaveral, florida. we're looking at the takeoff or the launch of the falcon nine, the latest iteration of the rocket owned by spacex. lisa: it is remarkable how this can be reused many times over again without maintenance, a game changer given how expensive these spacecraft are. where watching it head toward the atmosphere.

can you tell us what people in the control room are watching for to make sure this is a smooth launch? sean: the one thing you have to watch out for is an engine failure. the falcon nine is designed such that if two engines have a mishap, the payload can still get to orbit. that might impact the return vehicle and the landing, but mission control is focused on vehicle performance andignition. watching this thing is sent to altitude. scarlet: the payload is the first high orbit committee case and satellite for bangladesh. it will travel 22,000 miles above the earth and provide telecom coverage for bangladesh and surrounding areas. it is on top of the block five falcon nine. i want to get from you a sense of the booster. we are to see stage one come back down to the drone ship. had quite a few

successes. what is the difference between stage one coming back to the ocean as opposed to land? >> the trajectory takes it beyond its land return path. of the returns, spacex has done 24 successful returns of which have have been on drone ships and half have been on land. it depends on what the final destination is. for a geostationary orbit we are going to have drone ship landings as far as we can see. about theyou talk payload, about the satellite. do we have a sense of how much bangladesh is paying to have this go up and him much this factors into the business model of spacex? >> this is an amazing satellite. -- provides

communications services for english. it is half the capacity that can and the othersh half is available for commercialization. this will provide improved entertainment services for households and provide secure private communications for industry within bangladesh. bangladesh and surrounding areas. thelet: are we looking at satellite, can you talk us what -- through what we are seeing as viewers around the world keep watch on how this is going? >> we are seeing the second ignited and boost this into the geo-transfer orbit. from there it will move to a

geostationary orbit. there are several phases of this. the grid fins deploy. i am looking at two images right now. the grid fins are an integral part of being able to return the first stage back to the drone platform. can you tell us what the first stage is? stages, the two initial first stage which is most of the rocket and then there is the second stage, the first stage is what is recoverable. the first stage is 60% of the cost of the vehicle. the upper stage is about 20% of the cost of the vehicle. fairing ands the launchociated with

costs. for a vehicle like this, the launch cost is $60 million. spacex expects to drop that with the falcon nine block five by an order of magnitude. over time we expect to see this at the $6 million to the $5 million price point and fuel is $30,000 which is the cost of a fully fueled 747. reuse is a phenomenal breakthrough for spacex in the industry. scarlet: the mission is to launch this satellite into orbit but the final purpose for this launch is to show nasa that the carryingne is astronauts eventually to the international space station. talk about what spacex needs to do for nasa to approve this for human use. we -- reliability is

intended to satisfy nasa's requirement for the commercial crew program. now -- nasa is requiring seven .lights seven flights are required for manned spaceflight. this is flight -- hopefully successful flight number one. we can do a countdown of seven additional, six more additional flights for nasa to sign off saying we are ready to put our astronauts on this vehicle for travel to the international space station. are speaking with sean casey, we were watching the launch, the takeoff of the falcon nine rocket made by spacex. it was launching a satellite owned by bangladesh into orbit. can you give us a sense now of what we are seeing right now,

the -- it appears to be entering a new stage. >> we see the upper stage successfully operating on its geo-transfer orbit and we are seeing the return of the first stage. i saw the engine go off. it looks at it is getting ready to dock with the oceangoing called ofhich is course i love you. this could be a successful conclusion of the first flight of the falcon nine block five series. the last series of upgrades. scarlet: there have been some missteps along the way. the falcon nine had a couple of missteps where there were some issues with fueling. talk us through what happened in the past. sean: one of the things about this series of the falcon nine is that it uses a sub cool liquid oxygen fuel. liquid oxygen is at 90 degrees

kelvin. 90 degrees above absolute zero. the density increases and you can pack more fuel in the tanks of the first stage. more fuel provides improved boost -- thrust for the engine. a percent increase over previous versions and gives you more margin for getting to orbit and returning back to earth later on. scarlet: on the left-hand side the link went down for a little bit but we are looking at the landing of stage one, is that right? sean: this is coming down to the platform, of course i love you. look at that.

that appears to be a successful landing. lisa: can you give us a sense of what this means and how quickly spacex could parlay this into a more commercialized and consistent program that would carry satellites and astronauts? sean: the block five here -- a series is going to do 10 flights without scheduled maintenance and then do 100 flights before it retires. it will be a massive game changer. it improves the profit margin for spacex. it is a challenging technology. a lot of people said things like this could not be done but russia and europe and china are 's challengeo spacex for reusability. the astronaut who highlighted the spaceship, was

anyone on board? sean: no, this is done by closeded systems and between sensors. this is running on its own. it is without human intervention. it is a machine built to fly. scarlet: that is part of what spacex has brought to the industry. this looks to be a successful landing of the first stage or the booster. the satellite is in orbit. it was shot into orbit today by the spacex block five after an aborted attempt yesterday. thank you so much. sean casey is cofounder of the silicon valley space center. an interesting day and a momentous day for all sorts of space programs as we see this

was successful. that's shift gears a little bit. a former u.k. prime mister, gordon brown is launching a funding plan for education. mr. brown who is the u.n. global education envoy says corporation is failing between the u.s., china, and the wto but the light in the dark could be a breakthrough in international cooperation for education. he joined me ahead of the events at the u.n. julia started by asking him what he intends to achieve? >> there are 260 million children of school age who are not going to school today or any day. there are 400 million children who never get education beyond the age of 11 and 800 million and that is half the world's children who leave school without qualifications and they are not fitted for the workforce of tomorrow. the real worry is that by 2030 which is the year we are supposed to have every single ofld in school because

sustainable development goals, that will be 800 million and there will be 200 million children not going to school. if we do not do anything about it, we will not be able to solve the huge problem of illiteracy educateddead -- and an part of the world. we could look forward to meeting the goal that every child is at school. >> this is a consortium of donors and banks, explain about the mechanism. >> we want to raise $10 billion in that would transform the possibilities of getting education to people who do not have it at the moment. what we are asking is donor countries who have money, to give guarantees, we want to do what the world bank does, we want to have the facilities so you convert the loans into low-interest loans or credits to meet the conditions of individual countries who are

trying to make education work. countries,d these they have to invest in education, otherwise there is no point in the rest of the world doing it for them. the combination can create 200 million school paces. who have you spoken to? >> the world bank and development banks from asia to europe and africa are supporting this proposal. we are talking to donors. where talking to european and andn donors, american, canada. the good thing about this is it can go ahead with a number of initial high near contributors. we do not need to wait for every single potential donor to say yes. lisa: that was gordon brown. a 92-year-old comeback kid and his likely successor who needs help getting out of jail. we will dive into that crazy week that was in malaysian politics. from new york, this is

bloomberg. ♪

>> and in the first word news. the promises go injury -- industry of getting away with murder. -- most of this can be done by executive action. acknowledge these are problems that we have to deal with.

a lawsuit challenging u.s. border practices of searching computershones and without warrant has moved forward. cinnamon requires lots for smith to obtain warrants the russianhes foreign minister says he is concerned about situations have come to a dead in between palestinians and israelis. lavrov pointed to what he called

alarming attempts to change the geopolitical map. says comments about hittor john mccain would rock-bottom. the aides say it doesn't matter anduse he is dying anyway who spoke to the associated press. global news -- global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton, this is number. >> let's get a recap of today's market action. you have the nasdaq inching

across thef course other classes, we are watching the dollar decline. certainly, that was a change of currency -- u.s. malaysia's election ushered in an epic lyrical come back here one of the first is having a likely successor.

this is the second time it is happen because we have abraham, who might be the next prime minister. he is another key figure. a moving around of the pieces, but all the same cast of characters. >> let's talk about this from an investment standpoint. the immediate reaction from

investors was to run. out bonds and stocks. afterors are coming back saying we will not be been the deficit. what should they be doing? >> he is a very experienced politician and forget the bureaucracy has been working for , so a lot ofy things do not change even if the government does change. ironically, there is more stability that happens to be the case. forget that he was basically an autocrat. under his rule, he launched an deputyincluding his own prime minister.

why's that being put aside for now? ofat think it is fair to say the people who voted for the new government, they can be divided into two categories. those devoted because he has an him and call following the other people who voted for this government despite including many people from other ethnic groups who were very skeptical about his legacy the but has not become so exasperated that they saw bringing back this bandwagon is the only way to change things for the better. role does that a

play into the election? >> that is a question we will be debating for a long time. a lot of people who have been doing research says that was not the issue a lot of people were talking about. they were talking about their own economic situation in the general sales tax. concerns that persuade them back that the good old days was the 80's and 90's before. if we could come back to that growth which was represented, then everything would be fine.

>> it seems like there might use some implications on elections in cambodia, thailand and other places. what is her take on that? be --re was supposed to cambodia in the last election, the ruling party got a nasty shock. locking up the opposition leader isn't enough. what you need to do is abolish the party. heart,e have been more this unfortunately is going to -- force the

>> i have been reading comments suggesting this is a do over opportunity. are we really to believe that a 92-year-old man could change is stripes? >> i think i will be the real question. some people are trying to tell me if will be a couple of months. i think the lesser time it takes will be indicative of what is coming.

>> thank you. thank you for being with us. coming up, american colleges may find themselves squeezed and students might just be the big winners.

>> there has been increased demand in college enrollment. $1.5 trillion.

things could reverse in upcoming years. he joins us now. this is something you have written about and talked a lot about as well. it was working, but now could be working for student -- and student favor. ,> three different trends especially over 10 or 20 years. second, you have the large generation exiting it for the most part and after 2008, you had a tough job market and people felt they had to get a great job education. all three of those, educational have flattened out and with the

unemployment rate below 4%, they don't need to go to college as much. >> it's interesting talking about your column today. how much does that play into the whole discussion about whether colleges are worth it? >> i think that is a reflection of the financial crisis, especially at the state level. .hey push the financing unfortunately, all of this has led to the student debt crisis. >> we talked about the supply and demand situation.

spent a lot of money adding lot.ity and we have seen a i should say on students come in and pay those high international tuition rates. fromhink given the town the white house, that will lead to less demand? the other actor, we will have a three gastric -- geographic tearing. you have schools like southern illinois university that have seen falling enrollment and you will see more of that to come. >> how many colleges could end

up closing? >> the private and elite schools but virginia and michigan. it is that second-tier that are competing more that will really suffer. there is one in massachusetts called mount ida and i think that will be a discussion. there will bek more discussion about companies creating skills training programs or having technical institutes that people can do? little --seeing a we're seeing a little bit of that. market is asor good as it is now, you will see that. i think in the short-term, that

is a conversation. >> i know you are having a debate online about what kind of has,the government especially when it comes to government funding or research. what is your take on that? >> i think it is a tough question, especially so much of this is done at the state level. we have the resources to keep these a float. while the federal government decided to get more involved? i think that is an unknown question at this point. >> it is an important topic to be thinking about. all of our other columnist on bloomberg.

next, the reaction from our fixed income roundtable.

jpmorgan chief executive jamie dimon this week said it 4%.d be wise to climb to he sees a perfect storm for putting upward pressure on the treasury. >> we don't see 4% happening.

were -- e to make sure >> i think what i struggle with is why do we have this parallel shift in rates? >> obviously, rates have early gone up. you have seen a flattening of the yield curve. don't as a 4% tenure, we see that near the near term. we do think rates will be going up, but not significantly so. >> in vermont, did the federal reserve have to go quicker? think it spreads now.

fed if they move too quickly could cause in version. >> i think we have to focus on and nation and what other central banks do. other central banks are keeping the rate market in check. it could change the dynamic. >> let's talk about inflation. we had a tiny surprise on inflation, but it was enough to get people excited. my output is going to remain here because it is going to be for our things changing? >> depending on which market you are talking about, we see more of the same. call it 2.5%. we think inflation is trending higher, but the fed is comfortable where inflation is

and i think jerome powell talked rangeasymmetrical predicting around 2% accurate but tells us they are willing to withstand inflation that goes about 2%. >> does the fertile reserve move to the upside or is the federal reserve absorbing and overshoot? >> they talk about the idea they were not willing to withstand and overshoot. to 22.4 is a reasonable amount. >> we have heard williams talk

about maybe we should move the inflation target higher given that we undershot for so long. >> that conversation was earlier today. if you liked what you liked what he saw, tune in for half an hour of programming. the industry has something for everyone. >> it is not about mothers, but rather momentum. the momentum fund tracks and index that holds long positions including amazon and citigroup. it has seen momentum at one point topping $9 million. the strategy has produced double-digit returns, but the

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