francine: investors expect the fed to height. -- height. -- hike. at&t gets the all clear in their takeover bid for time warner. , the u.k. prime minister swerves a brexit rebellion in her own party. but can she unite the warring factions before they break down the government? good morning, everyone. welcome to bomberg.

these are your markets. over the next two or three days, it is all about central banks and we start effect -- with the d. oil.also looking at we are just getting a report saying that iran and venezuela's oil output could stop by almost 30%. ago,ber, just two months they were saying if the price of oil goes further it will start to hurt demand from emerging markets and should rebalance automatically. we goes that opec meeting in viennan the 20th looks more and more acrimonious day. european stocks are pretty much unchanged. a lot will have to do on the fed. will they give us an indication of the rate cycle? look at trade between

at&t and time warner after the merger was a rude, so keeping a close eye on the stop there. interesting to see a judge goes against tl of thpistration. coming up on bloomberg surveillance, we talk fed ahead of today's decision with hans from morgan stanley. we are also joined by vicky morgan from the house of commons and we are joined later by david rubenstein from the carlyle group. talked the trump kim summits, and we talked to him about his interview with tim cook. let's get straight to bloomberg first word news. >> north korean leader kim jong-il and says -- kim jong-un says trump offered to lift sanctions. that comes as trump repeated his believe that he can do a deal with north korea, saying he is

certain kim jong-un is on board. we have developed a good relationship in terms of getting something done. it , it's a starter, but a terrific document. there are things we negotiated that are also very important, getting rid of certain ballistic missile sites and other things. >> at&t has won approval for their 85 billion dollar pursuit of time warner and says the deal will go through within a week. the deal will create a media powerhouse that can go head to head with netflix and amazon. the court rejected the justice department's request, saying the government has failed to make their case that the tie up would mean higher prices for subscribers. shares have flunked after agreeing to pay millions and penalties in part of a sweeping settlement agreement that would allow it to resume business after a two-month hiatus.

china's second-largest telecom equipment maker fell as far as 41% as they resumed trading. the shares have been suspended since april when the u.s. forended purchases violations on iran. tesla cuts 9% of their workforce, underlying mounting thee biggest layouts in company's 15 year history comes as they struggle to hit production targets for the critical model rate. , but itk hyped the car has repeatedly fallen short of output goals and contributes to tesla's deepening debt. than 2700 more journalists in more than 120 countries, i am taylor riggs, this is bloomberg. francine: thank you so much. bracing for are major moves in the aftermath of today's fed decision.

they are split on what policymakers will signal on the pace of tightening in the second half of the year. we are warned that hiking rates could set the stage for fiscal trouble. it has been described as a suicide mission, here we are increasing the size of the deficit while we are raising interest rates. joining us now for the hour is hans redeker, from morgan stanley. thank you, as always. why is the market split on what they do next? it can easily be explained by findings in the united states. the global situation we have seen in the first quarter

outside the united states is much more pronounced. have seen, out of emerging markets, significant flows of funds moving into other places. thislikely that a lot of turns back into the u.s. dollar, which may explain why u.s. tal maets are tp the equity market is at record highs. coming off of the three-year 10 year yield levels, bonds are rising. you have seen very divergent capital market trends. do i think at has a lot to with the relative economic outlook, and that is where the center needs to find a decision. cine: how would you balance it? so i think the

international context is simple. you look inton the amount of dollars liability todayve, we have learned that the situation of dollar debt in china for instance, is rising again. this is a global theme. at means when the dollar goes up, you have funding costs goi up, with it liability valuations going out. lot of this is going to be redone on the liability side, which means you need to create a new contractor, you have to build a new loan situation. and that i think will have an impact. over to my bring you chart, looking at how the fed is playing an increasgly smalr role. if you have four questions, one would be the labor market. what is one thing you want to hear from the fed?

the fed it needs to be very car wheret sees their rate of neutrality. market will take it as a significant guide going forward. if you assume the rate of neutrality is going to be , becae you may be skeptical about the growth potential, then under those circumstances any rate hike the fed is going to do is one less in the future. that means a threatening of the yield curve as a result. then the factor needs to show the markets that they are willing to bear some international responsibility. francine: so why should it? is that central banks versus the united states is the

ndg tool.e main you should not assume that america is going to be an island , simply because if the u.s. dollar becomes too strong, it would impact emerging markets. circumstances, there is a negative feedback loop into the united states is going to be a short one. it is going to hit the united states within quarters. i think that should and can be avoided. are our charts, a great chart. do think they will talk about it today? hans: that is where the world of commendation comes into play. is monetary policy still accommodative, or if you see the rate level is going to break your estimated rate of neutrality, then you are entering restricted territory. so i think the language of the

fed is going to change accordingly. how do view these steel tariffs sanctions? and how should they view a possible widening of tariffs on cars? that would mean or could suggest that world growth has peaked? hans: it does not bode well for global trade. secondly, it is going to provide a one-time boost to inflation, but also has an impact on disposable income in the united rates of america. so i think that these trade restrictions the americans are proposing all in is actually going to be of a deflationary nature. anne: what does the dollar do from here? we thought and the 15th of march the u.s. dollar would rally. and a week ago, we's thought the rally was done.

there is a very clear signal coming up, investor yield growth continues to flatten. i think that should provide some support to the euro ainst market expectations. week, the u.s. dollars of bullish sentiment reaching a historic high at 94. that has come down, but i think the market is by far too optimistic. when you have a deficit and an increase in global funding, that is what our analysis has shown and would produce a weaker currency. francine: thank you so much. we'll talk a little bit more about the dollar dynamic calls in the yen. ,oining us at seven u.k. time we had instant analysis with top guests. including the former fed vice chairman.

up next, media's brave new world. at&t has won approval for their $85 billion pursuit of time warner. we look at what that means for the industry, this is bloomber ♪

♪ francine: i am francine lacqua here in london. at&t won approval to take over time warner and an $85 billion deal that will seal the company's evolution into a media powerhouse, and could spark a wave of mergers. a u.s. federal judge rejected government's

request, saying the government fails to make the case that it would lead to higher prices. the judge also put no conditions on the deal and it could go through in ak. joining us for more is alex webb who writes for bloomberg. to talk about the widerkeis hans redeker thanks for joining us. is this significant because of the low against the trump administration, or because it means a lot for the industry? >> from an industrial perspective, yeah. there is a huge expectation that it heralds a flurry of deals. took their with it, time, and now they are able to get this across the line. , watching totting see what happens, because then there is a big expectation that it's been bids for 21st century fox. it is interesting to see what happens when trump wakes up.

tell whether that was the main motivation for his opposition. is there an appl? >> there is a possibility, but the de will be approved by the 20th. francine: what does it mean for the industry? at&t, it hask at competition on two sides. netflix,nd, amazon and meeting people are playing for cable. then you have t-mobile undercutting them on price on the telephone side. perspective, they are getting more scale which they can use to throw money at better tv shows. europe has yet to follow this trend. francine: interesting as always. let's get back with hans and top cebanks. hear ansts expect to

end to the ecb's asset purchasing program. traders have become emboldened by policymakers, including central banks chief economist, who signals last week that this meeting could be pivotable -- pivotal. qe or not to qe? how would you play its of that the markets don't think tightening is coming, but also give the market some forward guidance on your future steps? what central banks are doing in the context of this we know they are set towards the rule of ownership.

that implies for some countries, including germany, finland, and holland, you're getting a where you cannot exceed the 33% re. that could have legal implications. that is why the european central bank has come out and said we wind qe down, because you also have to consider this technical issue. that, -- francine: hold on, that technical issue, is that their thinking or is that 30%? hans: people in america would europe yououtside of create more flexibility. deciderts will have to if this is still monetary policy or is this state finance? finance of the sovereign.

and when the courts would come to the conclusion that this is fine, you have a very messy situation. european ande central banks are trying to avoid that, but there are implications the on that. in the past, the european central bank was the only true european is to should ensure the survival of the euro. so it means that because of this limitation we need to have another security net around. francine: do we? is there any appetite for its? we will see, if no appetite, you have to put into question thesis dana ability of this currency union. -- the sustainability of this union. francine: if you look at the banking union, does it take a step back? hans: the arguments they have been using for some time is when you have governments coming in

and challenging with their new attitudes. so assets seem to be currently taking place in italy the question is how courts will react to that. they reacted to the problems we had in the eurozone at that time i providing very little fiscal assistance. so the european central bank was then doing the work. we have seen because of that easing. the result was that the euro had to decline. it was the fiscal and monetary mix arguing for that decli. now the question is, if we seem to be maxed out, what does it actually mean for the fiscal side? need to think about fiscal integration. we are mindful to see what the outcome of the european summit is going to be on the 28th. i think this might be equally important.

are not doing pairings, where do i go? and then i will talk football. but first, trade weighted euro. i think the euro is a constant process against the dollar. think over the next 3-4 months, we will get a breakout on the upside, as a technical level of the upside at the 121 levelwhich is then arguing for a new cycle. i would think into that direction. to forget that european balance sheets are looking much better than balance sheets in the united states, when you look at the corporate sector. is thatlem with europe we have not built european institutions, the framework. that meant at the euro is

trading at undervalued levels. so the euro is valued correctly according calculations, between 133 and 135. even if you take a calculation for italy, that will give you a fair valuation of 122. but what is priced in in terms of italy leaving the euro? i know it would take a million steps and many years, but i'm surprised to see a bounce back. the finance minister said they were staying in. was yourthat assumption, you would say you did not believe in the euro. so the hotel california situation would be moved into something else, check in but never check out. not all what he was saying was questionable, there were some good aspects.

and if we assume that there is a political will to keep us together, and i believe in the core countries, especially in germany, you have a strong political will to keep it together. that implies there is going to be more willingness to invest into the project, and that may or may not be seen at the summit on the 28th and 29th. therefore, that is equally as important. francine: serious question, vladimir put is speaking about the world cup. i think we are taking that briefing for a lot of reporters. but you have three central banks, you also have trading floors distracted by the world cup. does that impact some of the best you do on currencies? cases, those sports events take attention to thed are comparable

august situation in emerging markets when people are at the beach. but when things are getting pressing and there is forget aboutyou the world cup and concentrate on what markets should or should not do. big fan of getting , although itraction am a devoted fan of germany. though, we won four years ago. francine: a lot of pressure. hans: yes, but another team might win this time. francine: is that the same for economics? germany has a lot to contend with. they were the darling europe, but that star is going down, have we peed for german growth? hans: that depends on technical innovation and where you focus on with your industry. know the german car industry

is a dominant factor in the economy, and we have to make big steps forward in order to regain that competitiveness. of the weakness we have seen in germany in the past few months has a lot to do with the omissions situation and the car industry. if you solve that, then the car industry should come back, and that means german data would become stronger. factor which i think would convince people to reconsider their currency opposition. francine: if ok at th three centralan, you have fed, ecb, and boj, where is the biggest risk coming from? i would say the biggest uncertainty and risk is certainly within the central bank in america. if they would turn hawkish, the

implication it would have on financial markets would be more pronounced, much more pronounced then for instance if the european central bank would do this. francine: thank you so much. hans does not get dtracted, break we might what some of this news conference together. on wednesday, mario draghi speaks with his counterparts from the fed, boj, and rba, all moderated by our own head of economics. bloombergtch that on tv, the radio, and on life go. . brexit, weted in talk theresa may and the pound. this is bloomberg. ♪

♪ francine: economics, finance, politics. let's check in on what's trending across the bloomberg universe. on tictoc, you know it's l

about the summi but did you know more about the movie president trump made just for kim jong-un. actually a fun story to check out. the central bank meeting this week, and we could be heading for mario draghi's most awkward meeting. in third place, elon musk's model three miscalculation, culminating in major tesla job cuts. in second place, theresa may scrambles for a brexit compromise. and the story that won't go away, north korea saying trump did agree to lift sanctions after their meeting. get the full take on the terminal now as the trump says that is absolutely not true. now we are getting some dtofhe'f it's having any impact on the pound. this is important, because we had that post yesterday.

bang in line with estimates for the month of may 2.4% also in line. rpi in line. there is a loss of data, ppi input a little slower than expected, output a little bit better. not much difference from what we were expecting overall3325 is what we have. officials will start working on the wording in a new clause of key brexit legislation, after the prime minister promised significant concessions to tory rebels. ae move allowed her to dodge potential problem. nejra cehic joins us from westminster. breathee minister much a sigh of relief, but it is not over yet. >> yeah, absolutely right.

what you have referred to is this meaningful vote amendment, and it got close last night. what we heard was may offering concessions, some pty.trading going on with the givingendment is about mmps power and an ability to vote on whatever final deal theresa may yet with the eu. these rebels said they would vote against this amendment, so for now, theresa may seems to have bought herself sometime. but what is going to happen today is sitting down with the rebels and coming down to some exact wording and it needs to be legally watertight by friday, because on monday we could see the lord's bring this back up again. ultimately, the key points with all these amendments we are seeing is that the aim is for, at least from the rebels, to

have closer ties with the eu at the end of all this. but also to give mmps some sort of say on that final deal. the question is whether what happens in this latest development makes a scenario less likely. liket makes it seem that's how investors took it, because we did see some gains in the pound. francine: thank you so much, bloomberg's nejra cehic. hot credit or from morgan stanley is still with us. -- hans from morgan stanley is still with us. does this risk theresa may's leadership? they have said that theresa may need the authority to negotiate the best deal for britain, with brussels. and having 650 mps negotiate is not going to work, especially

when the commons are so divided. so she throughout her red lines and strategy, but we know there is a divergence in parliament to what she wants. the numbers are hard to cap late because there is so much baggage and -- division. but we know there is room for a closer relationship. the question is, at what point will we get a vote where she is defeated. we almost got there yesterday, and the rebels show they did have the power, but pulled back when shest minute offered this promised to come up with some sort of compromise. , where been here before a disaster is averted at the last minute. so she survives, but there will be a crunch time. could she survived losing a both like that? -- vote like that? yesterday cod, there's no reason she would have to stand

aside. but it is difficult to predict. francine: do we have an understanding of what she has offered? david: the rather amazing thing is that it depends on who you talk to. the rebel saying we have had a victory, a firm pledge to draft a new amendment which will give us the power to intervene if there is no deal. now the brexit secretariat made a statement last night saying the opposite, saying we have promised that no such thing and that all we will continue the dialogue, continue negotiating. those are different things. while the vote was passed last , it really does show you we have a big fight still to come. francine: how does brussels see all of this? [laughter] i assume they turn on surveillance to get the briefing from david merritt. david: i assume there watching right now.

francine: maybe baffled? delights, anyome de is not a good deal for brussels either. course, may have these big threats saying we could walk out, no deal is better than a bad deal. that seems to have are treated as a possibility. becomes mored deal likely. that is possibly in the favor of brussels. today. away from the politics, one could look at this and say i don't know what kind of relationship the u.k. has with its biggest trading. -- partner. are now seeing is we are getting closer to a very important date. the investment uncertainty is increasing, and we can see that

in the data. we have had, for some time, a lack of investments taking place and that continues and is going to decrease in growth potential of this economy. as wel big negive effect for productivity and income. all of that suggests the rate of neutrality may have to be lowered. and that may imply it will reduce the scope for the bank of england to hike interest rates. hans, first of all, let me just remind all of our viewers that we had the biggest earis in more to keepen years inflation from continuing its downward path. , and this is what the pound has been doing. where does the pound go from here? if you look at inflation, impacted pretty much by the

weakness of sterling we had before, which is moving out of statistics. this affect his overwhelming relative to the increase in over -- in oil prices. we think we are getting a break below the 130 le t u.s. dollar. we are going to see eurosterling going up again. but we are convinced that this marker within the bear market sequence. reason why is that you have to look at the evaluations, sterling is very cheap. you have tohing is think about where are we going to end up with this brexit situation. and i think ish bord is a very important points. likelihood we are ending into some compromises is very high, and the sterling is supportive.

francine: who do you get briefed by? e there le 10 people we speak to on a daily basis? david: there is an army of them. we are getting the different camps arguing different sides within the conservative party. and we have the labor parties which are equally as divided on many of these issues. side, wee european have the buy-in team, and the different european capitals. many of these countries have different priorities in terms of what they want to get out of the deal. this is an incredibly complex process with so many voices. challenges is there are sony technical details we are getting bogged down by. looking at the market reaction, there a bit of fatigue. the pound was a bit on this or

that, but working at a moments where things swing is very difficult. ,rancine: thank you very much bloomberg european news director. our guests stays with us. in the meantime, getting some breaking news from adding in -- adyen. they're stocks started trading today in answer, and that share price doubled. it opened an hour and a half ago , and i have to say, a pretty compelling start to europe's biggest technology public offering this year. price it at a hundred to 40 euros, already at the top end of its range. we have had analysts saying the stock is a by straightaway, but also because of the timing of this idea. -- ipo. , we talk surveillance more about tech, we talk cybersecurity, and a little

later, nicky morgan, house of commons, member of parliament. tking in finan, lkin brexit. this is bloomberg. ♪

francine: let's get straight to bloomberg first word news. re enn with the as a given, bond traders are bracing for major moves in the aftermath of today's fed decision. on thers are betting timing and pace of traits increases in the second half of the year. -- plenty ofretty

room. us at 7 p.m. u.k. time for the fed decision with instant analysis from top guests. north korean leader kim jong-un said donald trump offered to lift sanctions against his regime when they met in singapore. that claim contrast with the u.s. president that economic structures would remain. that comes as trump repeated his belief that he can do a deal with north korea, saying he is certain kim jong-un is on board. >> we have developed a pretty good relationship. it , i think it is a terrific done, i -- it's got think it is terrific. we are also doing important things, getting rid of ballistic missile sites and various other things. >> the u.s. special counsel

warns that russian forces are still inteerg in american elections. that is as robert mueller asked for an order to protect evidence --t by lowers -- lawye evidce soft by lawyers. after an indicti meddling. they have uncovered evidence of entities continuing to engage in similar activities. approval for its pursuit of time warner and says the deal would go through within a week. create a media powerhouse that could go head to head with netflix and amazon. the court rejected the justice department's request for a stay, saying they failed to make a case at the tie up would mean higher prices for subscribers. 24 hours a day in more than 120 countries, i'm

taylor riggs, this is bloomberg. francine: thank you so much, taylor. almost 6 million payment cards have been targeted by hackers trying to access data. the u.k. electronics retailer says there is novidence yet to suggest that information has been fraudulently used. this coupled with a cryptocurrency exchange in south korea highlights concerns of cybersecurity. so how much can busine really do? ,oining us is larry thompson vice president of a major infrastructure provider for the global market. hans redeker is still with us. larry,hanks for joining us. there seeing an ipo in netherlands that actually has to do with payment processing and in fact, their shares at the -- doubled overall.

this september will be the crisis that happened in 2008 the collapse of lehman brothers. resilient since then, a lot more capital in the system. the system is much more protected than it was before. did, however, point out one issue that all of us stay up at night thinkg about, and that is cybersecurity. we asked dtc are very focused on that, making sure we protect all of the assets in a financial system we are entrusted with. are focused on what is the resiliency we need to build in to make sure we can recover from any attack. there has to be a greater cooperation between the public and private sectors and

the sharing of information regarding cybersecurity. those issues need to be discussed and we need concrete action. francine: larry, how much intelligence sharing? financialnthly community about cyberattacks or having tools? are people working on this together? larry: they are indeed. individual companies are working together on a bilateral basis, sharing information. we asked dtc share that information with all of our members. believehais something has to continue, but we have to be more robust. we have to make certain that all of the information is shared and that we look to all of our legislatures to make sure we have the right laws in place. not only to protect institutions, but to encourage sharing. francine: is there a worry about

differing banking standards? and what does that mean for cohesion? we are always worried about making certain all of our standards are harmonized amongst all jurisdictions. we have been a great proponent of harmonization. between the various that theions, we know regulators, the supervisors, are in constant discussion, especially between the u.s. and european regulators. those discussions take place on a bilateral basis. thenow that in between there are other discussions that are incurring. all ofdo believe that the regulators in here, in asia, and the u.s., needs to because only vigilant. on appointments of regurs from the u.s. administration, were they the right fix? -- picks? larry: they were indeed.

we believe the trump administration has put in a strong team in dealingith independent agent. you have a strong head at the commodities trading future organition, at the securities and exchange commission. fed.ave jay powell at the all of those are very strong leaders, very good in terms of what it is they are doing. and they are very focused on making sure we have the right regulations in place as we move forward. francine: thank you so much for joining us. larry thompson, vice chairman of dtc. 9% of i cutting rk a bido resolve the company's cash problems. the biggest layoff in the company's 15 year history comes as they struggle to hit reduction targets for the model three.

elon musk height the car as a turnaround product but has contribution to tea's deepeningebt. for more, our transportation reporter joins us from unit. -- munich. why now? i think it is anyone's guess, but one of the biggest drivers of these cuts is profit, becoming profitable. we saw that even though yuan said in a statement that the company has never been driven by profit, if you look in the past couple of months and seen how much analyst have pushed the company towards profits and capital, i think the pressure has taken its toll. i think you live has recognized this is something he needs to address, and why we are seeing this move today. does it mean for tesla's cash flow problem?

oliver: that is also a very good question. i think it is anybody's guess. i think it probably will help, but it will not solve everything. analysts have estimated that millions,s could save but tesla has capital requirements that range into the billions. estimate back in march that the company could need as much as eight $2 billion injection. of course, you are looking at completely different amounts if it is 80 millions in savings versus 2 billion needed. francine: thank you so much for the briefing. hear plenty more from all of her throughout the day. let's go back to trade, to global markets are it angela merkel is turning the table on donald trump, saying the u.s.

runs a trade surplus on europe. is a rebuff to the president sustained criticism of german exports. arerade surpluses tod still cap illiterate in an old-fashioned way, based only on good. -- goods. bulooking at services d including those, the u.s. has a big trade surplus. francine: still with us is hans deker from morgan stanley. we talked about the fed, about ecb, german growth. what are economic forecasts getting wrong today? this is an open question, globally or more domestic. is there something in the markets you feel uneasy about? i think the forecast record over the past couple of years was not that bad. ago weaker5 years performances.

we were surprised by what happened in 2008. we have to think about what are the main changes taking place, and how is that going to challenge us? thk ant i look into the amount of cross border efforts and liabilities. be a very little issue, and it has become bigger and bigger. in my profession of foreign -- have seen are's people putting their money on interest rate and yield differentials. they do not understand they are in an environment where you have huge asset holdings assisting, you have on a day-to-day basis and have to ask yourself how much of my expos any to hedge? hedge? need to

that is not based on differentials. and we have seen in january and february how far the dollar-yen was able to move away from the yield to differential. that came along the need to adjust hedges. we have seen a similar situation in the euro. yield differential was suggesting the euro should fall, but it instantly went up. simply because investors found that euro exposure was too far hedged, and they had to adjust. new environments, and if we are just looking at old correlations, you will be surprised by the results, and easy to be very open to the new environment. our markets to ,omplacent about foreign policy given what is happening with trump and skin? -- kim? iies we he to

anale from alobal perspective. it means we should not emphasize the national perspective too much. i fear that some central bankers are still looking at the matters from their domestic viewpoint, not from the international. that, remember that speech in february 2016? i hope the fed will stay focused on that issue. francine: in the meantime, the turkish weakening. more on that. hans, thanks for joining us. bloomberg surveillance continues in the next hour. we will talk brexit. this is bloomberg. ♪

francine: decision day. investors expect the fed to hike . media merger approved in a blow to the trump administration. at&t gets a clear in its takeover bid for time warner. the u.k. prime minister swerves. a brexit rebellion in her own party. can she unite the warring factions before they bring down the government? this is "bloomberg surveillance." i'm francine lacqua in london. tom keene is in the new york. we are out of the euphoria of the trump summit. we can talk a little bit about corporate news and this merger going ahead with at&t. tom: the president may be landing in the washington area. he comes back to a fractious washington. a real change in the fed debate yesterday over flat wage growth.

brian roberts had an eventful night. after that at&t merger, comcast is the story this morning. francine: that will have an implication on the trump administration. i wonder whether the president touches down in washington and tweets but also has a huge implication for the media landscape. is apprising revelation from the u.s. north korea summit. kim jong-un says president trump promised lift economic sanctions against his regime. president trump did indicate there would be some wiggle room. he said sanctions relief would come before the complete nuclearization of the peninsula. theresa may is searching for a brexit compromise that will keep her government from falling apart. her officials begin work on a

key clause in her piece of legislation -- it needs to honor her pledge to pro-eu members that she will take account of their concern if the u.k. leaves the eu without a deal. shares of a payment processing firm have doubled in their market debut. the company processes payments for uber, netflix, and spotify. elon musk has been forced to change his ambitions for tesla. the company is cutting about 9% of its workforce. the firings are taking place after tesla bungled its first attempts to market -- to mass-market a car. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am taylor riggs. this is bloomberg. tom: let's look at equity.

real change in the markets off the ecomic data. futures up three. a resilient in the markets. the spread comes up. 41.09 is a big deal. look at that banner in euro area industrial output. that comes in a little light maybe that is in the central bank debate. with curve flattening, you have a 12.15 showing. i flew in the 10 year yield. weaker japanese yen. pesoo show the philippine going down to new recent weakness. francine:ou're right. if you are the european and you are mario draghi you're trying , whature out and end date those sanctions mean for

germany, and then you have industrial output falling more 0.9% instead, down of the 0.6 decline we were expecting. in terms of shares, they are pretty much unchanged. there is impetus in treasuries to figure out what j powel will say. emerging-market currencies extending the drop. tom: this may be my chart of the year. this is average hourly wages adjusted for inflation back to the middle 1960's. years left are the glory i knew as kids. 1960's,orgeous in the then there was a long malaise and we get into this oscillation of real wage growth and non-wage growth. what is interesting is this decline down in the rollover of the four year moving average, that is what confronts chairman powell today.

i would have four questions. this is just a more simple question i'm trying to ask thanks to this great chart. you can see thed polling less global weight, if you look at some of the decisions. everything is coming together right here on "bloomberg surveillance." --t we are asking ourselves our the front lines in the ecb more important as the fed is paying a's moller role. -- is playing a smaller role. ciodouble line capital saying here we are doing something that almost seems like a suicide mission -- we are increasing the size of the deficit while raising interest rates. let's bring in our guest host, james bevan.

great to have you on the program. isor mket running hot? what happens to the balance sheet of the fed? james: for me wage inflation is key -- the phillips curve, the relationships between unemployment and wage inflation -- everyone has estimated levels of people in jobs would mean more inflation and that would undermine equities on two front because higher wages mean less profit margins. we have not seen that. guidance on whether the fed has any indicators on inflation risers is critical. i think we are just about there. will hikee f's progressively thr year. i'm expecting a hike today.

that is not particularly new news. i think two more hikes this year. that means the tightening cycle is all but over. i think the market is pricing. the fed is on top of inflation rather than behind theurut e ople tohe current cycle is not a million miles away where we i would be surprised if the 10 year yield got smaller. tom: they are going to move the dots at 2:00 this afternoon. we will be on the set. they are going to move the dots off of that phillips curve the opera see they are living. how much -- phillips curve the opera see -- phillips curve theocracye livi. how much will they move the dots for the longer-term? james: i think there will be a recognition they know very little about the long-term structural function of the economy.

a big factor at play are the depressed yields in the eurozone and japan. they are saying to themsels we are getting next to nothing in the eurozone and japan. getan go to the states and three percentage points of 10 year money. we will make a fat profit. i think that is one of the movers of the u.s. bond market rit now. at a point where bond yield is competition for dividend and dividend growth? james: i think it is becoming progressively more so. for me the real issue is how much corporate earnings growth are we going to get this year and next. i think we are still on the bulls side, meaning we're going to get former -- earnings 2019.es for both 2018 and the next bear market comes when we begin to get earnings downgrades and that will lead to

.he next recession i believe the s&p 500 will finish this year higher than it is now but this consolidation in frcine: i you look at some of what we are looking for, is there a danger we are underestimating the risk that comes from the fed? we have the fed, we have ecb, we have doj, which has the biggest risk? james: far away the fed. i'm not expecting the boj to take any action. i'm expecting the european central bank to talk about quantitative easing but not shift policy. the elephant in the room is the target to lending system, where the central banks within the eupean central bank lend money to each other but never zero the balances. the moment we have germany contributing around one trillion euros into the system. we have italy and spain borrowing 450 billion each. we have france borrowing 100

billion. i think the european central bank will be wary of upsetting the apple cart. francine: james bevan stays with us. coming up, nicky mjoins us. and al be talking brexit very important report on women in finance. r bonuses. go after the bank this is bloomberg. ♪

francine: good morning everyone, "bloomberg surveillance." tom and francine from london and new york. theresa may has avoided a brexit built defeat. the u.k. prime minister has

reassured pro-eu members that she years their concerns over the possibility of leaving without a deal. the balance could be tough to strike. joining us is the chair of the treasury committee. former secretary of state for education. she is a member of parliament since 2010 and her committee is also releasing a report on women in finance. we wrote up a great story and we also need to talk about that. it is a shame that we need to talk about brexit. james brevin is also still with us. much, butre is so talk to me about the red line that the rebels want to have in place that the prime minister -- nicky: parliament will want to have a meaningful sayn anything that happens in the

brexit negotiations. they will want to approve a deal, but if the prime minister decides the deal cannot be they will say are you bo there is balance between parliament having too much of bush say. -- too much of a say. francine: is there a danger that of parliament has too much of a say in the leadership of theresa may comes into play? people inre are some my party unhappy at the thought because they suspect this is a way of stopping brexit from happening, a new brexit option, which is not the case. theink the -- i think argument happened does go years ago, we're going to leave. how do we do that? a lot of people voted to take back control. control is going to come back to our sovereign parliament. we do have a say.

so far yesterday and there will be other stages in the house of commons and the house of lords. francine: how do you think brussels is looking at this? james: brussels is -- cky: brussels is paying greater attention. we ends always a danger up arguing amongst ourselves. i think this is an important point in our history. something as important as brexit that defines britain's place in the world must be something parliament has a say on. there are established views about the trading relationship and those debates are still to come. tom: what is the incentive for the eu to do anything here? if i am the eu, don't i just wait and wait for the conservative majority party to get their act together? nicky: i think negotiations have been going on for a long time. they started in earnest last

year, once article 50 had been triggered and we were leaving. absolutely wants there to be a deal. london, we have a very visible financial center. eu companies will access the expertise we offer here. brexit is undoubtedly very complicated. tom: that is a good entry into our women in finance reports. francine, why don't you begin that? francine: your hitting at the heart for calling for changes encouraging women to finance. do you think the issue is the culture or women feel they are held back? niy: it is a cultural issue. i used to rk in the city. i work at a couple big city law firms.

i think there is a culture in the city that as women go through and progress in their career -- bonuses are one manifestation of that. guidances for witnesses who thought wen do not like to ask for money. they feel they work very hard. we have fantastic evidence from a chief executive who said they have a formulaic approach to it. people know that if they hurt -- if they hit certain targets, that is when they get rewarded. do firms really want to challenge this out for male culture -- this alpha male culture. nicky: the average gender pay gap is 35%. this is caused by not having enough women in senior positions. why are women

going into banks and law firms and accounting practices at the graduate level. that is where the culture comes in. you also mention that you intend to keep challenging the treasury over boe appointments. is it time to have a female governor at the boe? absolutely up for women being represented at the highest level, both in government and all of our institutions. there are fantastic women out there. we have made it clear to the treasury that the gender breakdown of people who apply to jobs and those were shortlisted. that is something we want to see again. tom: within your studies at oxford, is the reality on wall london,new york, wherever, of mathematics. onef the intestgs of onus analysis are the

adjustments for mathematics. if someone comes out of oxford and theycal finance have to pay 200,000 pounds base to keep tm, is that male or female in your study and is your study adjusted for that academic rigor? nicky: that is one of the factors that firms may take into account. there comes a point where it is not just about background, it is what m and women are achieving in the job they've been asked to do. the fact thathe is a gender pay gap in bonuses of 52%, when a man is being paid a bonus of 100,000 pounds, the woman is getting 48,000 pounds. that is not right in 2018. the next step is for firms to understand why that is happening. tom: what is happening? is it within equal sectors or are the studies conflating the

academic rigor across a given firm? nicky: firms are disclosing on the basis of the entire firm. things may well be firms want to break down their whichp reports exactly department they are in. tom: when will we see that? year wehis is the first have had gender pay gap reporting requirements on companies of over 250 employees. one of the things we said in the report is that the narrative , itrting that goes around should not be about the numbers, it should we about the narrative. transparency is changing behavior. these issues are being discussed morehan ever before. the next thing is going to be

breaking down and understanding what is driving those differences. francine: can shareholders play a valuable role here? do you askut diversity and decide to invest in the company whether they have enough diverse city or not? james: if theyo ha enouersity wregard that as a governance risk. one of the challenges is how many companies are committed and paying living wage? in terms of gender diversity and the pay gap, there is also a distortionary large number of women stuck in the lowest jobs. one of the things that gender pay gap reporting requires is to break down organizations into quartiles. you're absolutely right that many firms find they have many bottom of the organization.the

shareholders are great point, as are investors. more and more investorsre lowhtout their money, which kind of -- james: there are studies that demonstrate better diversity leads to better long-term results. francine: are we going to see meaningful changes in the next five years or is it longer? nicky: think ware eing meaningful changes already. i'm hearing from ceos. it takes a wild to build a pipeline of talent. we have to make sure we're building susta, , touraging wometo move staying in the organization, to movi through to the top. tom, do you remember that interview a couple years ago and we were talking about women in financial services and

she goes to prime ministers and heads of state and they said they wldove to promote more who --ut i do not know here is a list. do we need to do more of that? james: onef the things -- nicky: one of the things we had before the committee were headhunters. good ones areally saying here is the risk of people you have not thought of. one of the things we identified easye report as it is too to recruit in the same village. i have this person and i want to recruit someone just like them. one of the things wefrom the ceee are not .nough female economist it is incumbent on us to spot great people. tom: have they broken out yet

trading and broken out quantitative structures including economists, have subdivided those areas and waited them cross-sectional against the academic pool that is out there? nicky: i do not think they have done that. that breakown t evidence -- one of the things about transparency is we have a lot of information out there for the research you are talking abou but also for graduates and others looking to work at those companies. they will start to look at all the information being disclosed on gender pay and diversity. that will affect where good people want to go work. francine: thank you so much. , member ofn parliament. let's get straight to the bloomberg business flash. taylor: shares of dixon's car phones are.

theckers targeted processing. so far there is been no evidence that data has been used fraudulently. a women's clothing retailer is benefiting from investment in technology. quarterly earnings beat estimates. improvements tech are boosting efficiency online and in stores. that is helping zara contend with amazon's move into fashion. apple is trying to stop developers from sharing data on users friends. the iphone shared its app store rules. that is your bloomberg business flash. taylor, thank you so much. let's look to moscow.

the world cup is underway. the major debate is whether jonathan ferro and i can go to a bar in new york city. this is a serious effort by fifa to understand where the world cup will be in 2026. they are thinking of morocco. what is interesting is they are thinking about a north america world cup as well. seeresting to see what we with canada, the u.s., and mexico. francine? onncine: we will keep an eye that and ask ourselves whether trading volumes will be low because people be watching the world cup starting tomorrow. this is bloomberg. ♪

francine: this is bloomberg surveillance. tom and francine from london and new york. let's look at what is trending across the bloomberg universe.

did you know about the movie showed kiment trump jong-un? ands central bank this week could we be headed for mario draghi's most awkward meeting yet. mosques model three 's model three miscalculation leads to job cuts. theresa may scrambles for brexit compromise. trump did agree to lift sanctions after their meeting. when you look at our cross-section of stories and are most read, they appeal to different audiences. what are you looking at the most? story ise at&t fascinating because it opens the door and a large way for merger acquisition activity this summer

when one thinks about the allocation of the cash that companies get on the assets, i worry we will have relatively undiscriminating decisions by boards. that could be very bad news. i'm going to be interested to see what is next. let's get a briefing on that and continue the discussion on comcast. president trump says economic sanctions will st in place against north korea. kim jong-un sees things differently. north korea says the president agreed to lift sanctions in singapore. sanctionstrump said would be enforced until north korea agreed to give up its nuclear arsenal. it is not clear if that means complete nuclearization or just taking the first step.

angela merkel says trump needs to take a new look at trade between europe and the u.s.. she indicated she lobbied the president to keep from imposing tariffs on cars and exported. warns that russia intelligence services are still meddling in u.s. election. he told a judge that being ordered to turn over certain evidence in a criminal case could hurt ongoing investigations. one of the companies charged with election meddling once the evidence to help in its defense. international energy warns that iran and venezuela could lose 30% of their energy output next year because of u.s. sanctions. requiress it would extra output from opec's persian gulf members. opec meets that week -- meets next week to decide whether to restore order production it cut

last year. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am taylor riggs. this is bloomberg. 1945 eastbuilt in of the potomac river in land. andrews air force base. andrews, itint base given boeing d.c. 20 lands. that would be air force one returning. the president with an arduous trip from canada to singapore is returning. francine, he will enjoy a furious congressional debate on immigration and maybe he will pick up on some of the domestic niceties, including the mueller investigation. mr. mueller was modestly busy yesterday with russian papers he was worried about. francine: i think he will also

have to address two things. that the inconvenient truth is that if there is an attack on european soil, he says we cannot be so the european will save us. he will be briefed when he touches down about at&t. it is a clear rebuff of the trump administration's well and i wonder if he will tweet on that? tom: i wonder what we will see on that and the move forward. he returnsest worldwide to a raging debate about wargames and military exercises. kevin cirilli will join us in about 30 minutes. still in singapore and he will brief us on vice president mike pence and the confusion yesterday over wargames. we will watch the president and bring in the story for the media business.

david rubenstein joining us in the next hour. right now at her london dekes, ian whittaker. we are thrilled he could come in today. who does fox and tv want to acquire these european assets? do they want disney or do they want comcast to be the victor of their media wargames? perspective, the issue is who bids the most. fox has determined that it is moving away from the european distribution side in terms of traditional pay-tv. i think it is relatively agnostic as to who actually controls those assets. a discussion around whether fox would have a stake in disney and also have assets -- whether that would play a consequence.

i think when it comes to the major picture, my feeling would be that fox would be relatively agnostic between the players. when you look at these acquisitions, give us a brief on cord cutting within the sky tv world. is it like in america? ian: the short answer to that is not at the moment, but there are signs that perhaps things are moving in a fashion more like the u.s. differences between the u.s. and pay-tvopean markets -- in europe is lower than it would be in the united states. pay-tv in europe tends to have lower penetration rates. there is more of a choice. if you look at some of thes services, netflix has a significant impact in certain markets.

if you look at penetration rates for netflix, they are still below what they are in the u.s. frox perspti, issue here is with these trends and what is the risk that the traditional pay-tv model is a threat and better to get out now? that seems to have driven their decision. francine: m&a globally in the sector? if you look at the ruling and what was determined there, what it would seem to allow is more vertical integration. when you look at media being a

key component between distribution and content. you look at why disney and comcast would want sky -- sky is the largest pay-tv platform in the u.k.. in ireland, and italy, and germany, in spain as well. obviouslyd disney have content they need to be distributing as well. from that standpoint, absolutely. there will be more and more deals done from the u.s.. if you look at the ruling, it would seem to open the fldgates. we are looking at live pictures of the air force one doors opening. for those watching us and listen to us on radio, there is also live feed you can watch on twitter. what does thisean? i do not know whether you take it as more of an m&a from the justice department that this was given the green light and is a clear rebuff of what president it morented or you take as a media industry merger and acquisitions. james: i think it is quite a rebu of the tire political system. it was not just president trump against the merger. there were democrats you said it was ampetition and this would be bad news for the

consumer. the fact that this got through is a real challenge for those who felt integration was not on the agenda. broad swell of m&a within the equity markets over the rest of the summer. tom: o of the great is the debt here load of comcast and the debt load of disney. -- the ded is 29% for comcast and disney has a lot less debt. does that matter in your world? leverage is aheet particular issue. companies cannot go beyond a certain point. i think there are certai eainind. if y take comcast's subscription revenues, that would be deemed to be a relatively stable -- even given the pressures you are given.

that would be an argument someone who is more of a distributor, like comcast, should have as heavy a debt load to something like disney. obviously given the scale of the assets you have involved, if --re was any particular debt whether you can sustain those debt levels -- that would suggest that can be the case. given the range of assets you have within this group. -- asset always ways sales or assets you can spin off and so forth. the simple answer is i do not think it would make a huge amount of difference. one thing to throw into the equation is there has always been this? or sky,ether comcast whether it was genuine or a tactic to disrupt the wider

purchase of the fox assets. int may have implications terms of the amount of leverage that comcast would need to bear. ian whittaker with us as we discussed what is presumed to be a transaction. f, but perhaps comcast will make in all-cash bid for most of the fox properties. that is presumed to be coming rapidly, this after the landmark decision that at&t allowed to purchase time warner. we are also watching in waington aandrews air force .ase the presint returning the plane touched down moments ago. this is a live image as we await

the president to exit. probably waiting for cars. francine? francine: if we inue the conversation on m&a and get back to james bevs. let's where do you see value? whereu pinpoint sectors you think m&a will happen and accelerate and is that a good place to be invested in the market? not necessarily in terms of is it a good place to be. in terms of where m&a will concern -- will occur, i think the media segment will be looking for integration opportunities because there are opportunities but also because there is a appetite to stave off the threat that this activity now represents to the incumbents in the industry. elsewhere, i worry there will be a significant flow of cash because the money is burning a

hole in the pockets of companies that have the cash rather than any logic. francine: do you see chinese companies trying to come in to the u.s. markets? will they belocked? the pro trend economies trying to buy into countries that are trying to close some of the borders? james: i think there is a significant appetite for emerging economies to purchase direct exposure in the united states. united states is still the world's largest economy. highest per capita gdp of the key developed markets. on that basis, everybody wts to be there. transaion that will come up, it opens a door as well. tell me about the affects of the rollout of the media business globally. where we going to be in five years? will there be one or does go or

three players and a competitive may liu -- in a competitive mileau where everyone is in a price war? look at the traditional media companies, over the past five or six years you now fe a potentially game changing threat with the likes of google, facebook. tom: let me interrupt right now. ian whittaker, thank you. a casual president of united stat comes o air force one. it is good to see the president without a tie. he was concerned for his colleague larry kudlow who is at walter reed hospital. we have good news on larry kudlow. a mild heart attack and recovering well. the president, even his harshest critics giving him accolades for the event in singapore, the

moment of shaking of hands, 68 years from the beginning of the korean war. then the criticisms from democrats and i might point out, conservative commentators as well over a few select comments the president made yesterday in his press conference. kathleen parker in the washington post is one more conservative writer with some really terse comments about the president and wargames and military exercises. it is a president that returns -- you have your brexit battle right now. within the legislative branch of the united es is ov the great american culture war called immigration. that is front and center for the house and the senate right now. we also look to north korea and what we heard from north korea's state media, reporting today that kim jong-un

had accepted donald trump's invitation to visit the united states. we looked any signs whether that is still happening. tom: we have the president moving on to the white house. it is a short drive with the presidential entourage and with police support. it is a pleasant and short drive . for everybody else, it is very difficult to migrate around the beltway of washington, particularly not now in the morning. unless you'reving the president of united states. it isne: without a dou about the drawbacks over the last couple of days. i know there are a lot of politics. i know there is a lot of talk about brexit. if you look at what the fed can

thewe saw quite a lot of fault lines when it comes to fed policy with the dollar strength and the probability of hikes playing into the emerging markets. the philippine peso being a decline in asiies before tal reserve rate hike and the chance the ecb tomorrow will set a timetable. joining us is an associate director of emerging market strategies. felix, thank you. we have been talking about emerging markets on a daily basis. the main word is the dollar rises. a lot of the countries that have debt in dollars will suffer unduly. is the fed the central banker to the world? >> that has been the context for the past decades. trillion worth of inflows into the past decade. as the dollar strengthens and the fed increases interest rates, that value proposition

erodes. think about this? we always talk about this on a daily basis. you say either dollars are or the fed isncy, the central bank to america. that is all its job is. phoenix: the statements from the fed have made it clear they are primarily focused on the domestic economy and not on the ripple effects they have on other markets. i think it is quite clear this will continue to be a strong external source of stress on e.m.. tom: you mentioned the philippine peso. it is just one idea of the unraveling. within your study of when e.m. becomes crisis, what is the catalyst where e.m. correlates together and becomes more than a

small unraveling? phoenix: it down to e growth of em, which we have seen a to the kinded of growth momentum with saw been strong has started to stagnate. investment weakens from that point of view, in addition to the technical factors you have from positning, which is still crowded from the investment community as well as crossover players. that combination of technical factors, in addition to tightening policy stances, are not helpful to the overall asset class. tom: i want a look at a chart, let me bring that up. peso as oneippine proxy of em. below is a chart you never see. this is noturo dollar, but they you super bowl usd you are

-- but the reciprocal. from 1997, it is remarkay stable. can see the huge movement in the crisis of 1997. they both strengthened together and then they do not. you have continuing weakening in the philippine peso. that is the beginning of the divide. if we do have some inmalization of euro-dollar the fall, as a lot of economists expect and as our house to your expects -- as our house your fromts, and normalization the ecb indications that the tightening process is taking place, that can reverse the euro daughter -- the euro dollar weakening and support the

overall risk sentiment, including for emerging markets. francine: do you like emerging markets? we're looking at the turkish lira, i know you're looking at some of the eastern european countries. what you like in the emerging market space? james: are the north asian economies going to be capable of delivering profits for shareholders while still trying to maintain full employment. i think the jury is out. i've been looking forward to hearing phoenix's view on this. forre the financial crisis asia in the 1990's, korea did very well relative to the u.s. as did the stock market. after the asian crisis, korea's market continues to do quite well. it was clear the korean companies were much more interested in getting full employment. i have seen some moves this year back toward thinking about profits, thinking about shareholders. where you positioned on this?

phoenix: with respect to the overall global growth picture, asian countries have been more regionally focused, but they are looking opportunistically around gaining market share in certain areas and building more regional ties. i think with respect to how the u.s. is isolated out of the trade space, that still does not mean any risk of global trade wars. that still means a strong global trade dynamic, regionally as well as globally. francine: this is for you, tom keene. let's bring over my chart. phoenix: this trade has been popular over the pastear. it has worked out well for us. , we have seen a huge response from the central

bank already in terms of how much they're are willing to implement in terms of ra hikes and monetary policy tightening, but looking forward, the domestic landscape is still fraught for turkey in terms of decelerating growth and lots of global tensions out of the elections later this month. the best case scenario is still one in which structural reforms are difficult to implement and will take a long time to take place. the physical anchor is deteriorating. progress on reforms are more likely to occur in south africa. that kind of policy dynamics and policy divergence will lead to further strengthening of rand versus turkish lira. tom: i want to bring up that chart again. it broughte to tears. rand and what we -- seeing is a stronger rand not my chart.

my chart is amateur this morning. this is stronger rand, weaker turkey. how do you find this? are there other opportunities like this for odd cross ratepayers where we can make some returns? phoenix: initially i think there are some opportunities within the ce -- there is a divergent between currencies in poland and the czech republic will strengthen versus in hungary and due to accelerating inflationary dynamics. there are possibilities for those to perform as well. francine: i have another one for you, tom. i am doing the legwork because -- this is the singapore dollar

and the south korean. .alk to us about that, phoenix only on bloomberg surveillance to get that on a wednesday morning. what is your take on this, phoenix? phoenix: i will have to pass on this one. it is from my colleagues out of asia a i tnkhere are the best ones to discuss this. this was a good one. i liked it. francine: i am like 50-50. james: if you're going to buy an equity, and i am interested in that equity, there is an implicit currency gap within that and i've colleagues in the industry who are trying to work out whether the imf has saved interest rates or whether it will carry on. huge sums are being bet on this sort of outcome. tom: this has been a wonderful

hour. james bevan, thank you so much for holding us together. phoenix, do not be a stranger. it is fed day, we have a huge day for you. this afternoon,n importt fed meeting. up, not only do yo get david rubenstein of the carlyle group for most of the hour, kevin cirilli from singapore as well. you get david rubenstein as the media landscape changes. we'll talk to him about m&a. there is singapore. we are looking for kevin ciri this is bloomberg. ♪ what's a gig of data?

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wargames iwashington. the pentagon is furious. on capitol hill, a debate on immigration. .t is a live meeting wage growth is dead. chairman powell will answer questions and a peaceful voice. comcast and disney declare war. , the game ofei thrones where dreams do come true. good morning everyone. this is "bloomberg surveillance." i am tom keene in london. , francine,cqua esent has landed. he goes on to washington and the events of the day. ,> president trump tweeting just landed. everyone can feel safer. he says there is no longer a nuclear threat from north korea. he said the meeting with kim

jong-un was interesting and positive. i would point to the fact that we heard from the korean side that donald trump offered to lift sanctions when they met in singapore. watch out for a tweet by the president on at&t. tom: also the events of washington as he returns. always interesting after a foreign afir wn a president returns to his domestic challenges in washington. we get a briefing on this from singapore. with us is kevin cirilli. what a you f economy? we hope to see you at some point. it is a 23-hour flight back. president trump has touched down at andrews joint air force base, back in the states.

not before a twitter firestorm. the most notable is what he had to say about his summit with chairman kim jong-un of north korea. he said it was very historic. statees at the time the propaganda arm says he will stop all military testing in the region. toldis not what he chairman kim. they will continue discussions on the new foreign policy with north korea. is going to south korea. tom: i'm looking at the tweet storm. he's covering mr. sanford of south carolina and mr. de niro and on from there. when you look at the domestic will his white

house assist him in those challenges? chief among them will be to make se he can maintain support amongst his republican colleagues. sanford, republican, he endorsed him before the polls close. it comes ahead of the midterm election as republicans are still trying to sift through his new policy on north korea. fromve seen skepticism marco rubio, lindsey graham, and john mccain. should the president want to ease sanctions on north korea, he will need to get that ratified by the senate. , thosetion to bob corker four senators in the republican party could make his new policy agenda with north korea more difficult. francine: why is the president so focused on north korea?

is it his legacy? is this the thing he wants to be remembered by, the next election, midterms, or none of the above? kevin: they could be a little bit of everything. policy of u.s. regardless of the president, north korea has proven to be a challenge for decades. this is the first time in recent memory that the u.s. has really negotiated directly with north korea. it is also the first time a sitting u.s. president met with the leader of north korea, but in terms of trade in the region, this presents a dominant force in u.spolicy whin this region, and also brings china to the negotiating table in a different kind avoid and we have seen before. the president offering praise in the press conference following

the summit on president xi jinping in the midst of bilateral trade negotiations that have taken a turn for the worst in the past week. tom: thank you so much from singapore. verage. is get lucky, then there surveillance luck. with us for the entire hour is david rubenstein and the carlyle much of america would also say the library of congress. mr. rubenstein is here to celebrate another season of the david rubenstein show, conversation and important interviews. we will speak of tim cook, his philanthropy, and the new media -time warner,r at&t but first the washington he has observed for decades. >> i did hire a number of years

ago a young man to work at powell,group, jerome and now he has some responsibilityintere rates area. i ink he would do a better job on inflation than i did. tom: you have seen your transactional work in washington. to beirman powell going hindered by the fiscal expansion from president trump? >> it is a challenge when you have the deficits we have. we are running a $900 billion deficit this year. next year probably $1.2 trillion . we could see $1.2 trillion if we don't see the growth rates the government is projecting. that is something the federal reserve has to worry about. right now i don't think the wall street traders and bond people

far as concerned about it as they will end six months. right now it is something to watch and the fed is worried about it. francine: good morning from london. wt e the anal spirits in the u.s. doing right now? >> what are the? francine: animal spirits. >> first, i think president trump clearly had a victory in ,orea hitting that meeting done whether you think he got everything he should have gotten or not, he had a victory in doing that completed in terms of talks. we will see what happens. the animal spirits in washington are thinking president trump a lot of influence in the republican party. ma sanford apparently lost his reelection primary bid, a lot of republicans will say if i'm going to be rning for a election, i will be ok with the president. i don't want the president tweeting against me. the president has used the

tweeting power quite effectively. you wonder whether thomas jefferson, george washington, james madison if th h power to tweet, what their power would have been. we don't have their historical tweets. there is no doubtde ump has used this effectivel om his point of view. francine: on the economic point of view, are we underestimating are overestimating the strengths of the u.s. economy? what are economists forecast getting wrong today? >> i'm not sure they are getting anything wrong. we are growing at close to 3%, which is pretty good for an economy of our size. the biggest concerns are the deficit and debt growing and how much longer can we continue this. we are 109 months into a growth cycle. we have only had one growth cycle nger than this. at some point it will slow down.

is it emerging-market corporate debt, trade tariffs are wars, or growing concern about the deficit and debt. it is not likely to be subprime mortgages as it was before. whatever causes the next recession is likely something we can see now. maybe a geopolitical factor. at some point, we will have a slowdown. i don't know when it will be. the head of the council of ecomic advisers said if something can't keep going on forever, eventually it won't. this growth cycle has been terrific. i hope another 1-2 years at least. the recession has been put back because of the tax bill at least the year. tom: in your study of american history, and within finance you are a great historian, your contribution to the national gallery, and your work for the library of congress, you are working with institutions that

have seen gilded ages come and go. how does a gilded age and question mark -- end? would have predicted when a few subprime mortgages came unraveled 10 years ago that it would lead to the great recession. no wind knows for certain. most business people and economists are saying this won't go on forever am a but now there are no signs of recession about to happen. tom: is there a recession of the future of the republican party? what is the future of the gop after a one-to term trump? >> we will see in the midterm elections. generally a president loses seats in the house and senate, so it would not be unusual to lose seats. there are many people in washington, including republicans, who think the house could go democratic. we could have a wave elections against the republicans them up

but maybe there is an event that has a way for the republican side. apple am the and huge success they have seen and his thoughts on the media business and the mergers to come. widely anticipated. it is tonight, david rubenstein cook talking earnings, revenue, and the path forward. in new york,m. 2:00 a.m. in london. now me look at the data. change fed, and this is from yesterday, flattening off that tepid wage growth. , francine?, the vix francine: i'm looking at all

eyes on what the fed does next. european stocks gaining. u.s. futures stead erngarket currencies extending the drop. technology companies outperforming. yes, the world cup is starting tomorrow. there have been changes in spain. we will look at that. this is bloomberg. ♪ s bloomberg. ♪

tom: "bloomberg surveillance" still with you. the president returning to washington. much more going on.

let's get first word news with taylor riggs. taylor: angela merkel says president trump needs to take a look at trade between the u.s. and europe. u.s. runskel says the a trade surplus with europe. she indicated she lobbied the president to keep from imposing tariffs on cars exported from europe. shares have doubled in the market debut for europe's biggest technology ipo ts year. the company processes payments for uber, netflix, and spotify. the electronics retailer says a cyber attack affected 6 million payment cards. attacked processing systems. they said there is no evidence data has been used fraudulently. rethink hisinforcin forcing to

ambitions, cutting 3000 jobs, abt 9% of its workforce. the firings taking place after tesla bungle attem to mass-produce a car. tesla may lose 1.3 billion dollars over the next four quarters. global news 24 hours a day on air anon tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. francine: thank you so much. kicks offnstein tonight with tim cook and discuss a range of subjects from earnings to stock price and warren buffett. >> you have now been the ceo of apple since july 2011. earnings are up 80%. have you ever thought you can't do better than this and maybe you should say, well, i have

done a great job and i would do something else with my life? stock price,e revenues, and profits as a result of drinking's right on the innovation side, the creativity side, focusing on the right products, treating customers like they are jules ls andcusing -- jewe focusing on the user experience. the numbers you just quoted are not even in my orbit. >> when you announce quarterly earnings, analysts say they did not sell as much of this product as we thought they would. does that bother you? >> it did at one time. it doesn't anymore. apple for the long-term, and so it has always struck me as bizarre that there is a fixation on how many units are sold in the 90-day period.

we are making multi-year kind of decisions, so we try to be clear that we do not run the company for people that want to make a quick buck. we run the company for tg. >> one of the shareholders who recently bought 75 million shares is warren buffett. are you pleased to have him as your shareholder? >> i am overjoyed, thrilled. [laughter] >> warren buffett is focused on the longerm. we are in sync. the way we run the company is the way he invests, so i cannot be happier. >> weren't still uses that old flip phone. >> i know. >> have you thought how much more your stock would go up if he actually use the product? >> i am working on him and said i will personally go to omaha to do tech support for him. premiere season four

of the david bruma time show at 9:00 p.m. in new york, 2:00 a.m. in london. let's get back to the man himself. you talked about what it was like succeeding steve jobs. what did he say? >> he was not looking for to it. 2011. tim died in cook have been interim ceo, but clearly he worked very closely with steve and wasn't looking for to taking over from him, but when steve step down shortly before he died, tim cook have the job. at the time steve jobs left the company with a $350 billion market, and the stock has more than doubled in tur terms f market capitalization. that interview was done following the duke university commencement. he agreed to do so. this year he gave the

commencement speech. following the speech, we held that interview in the arts center at duke. was very, very vocal about many different things. the most interesting thing is that neither he nor i had a tie. he rarela tie and i always wear a tie. that was one of the first times i have been seen a public without a tie. francine: david, we talk about deutsche bank, success stories, not success stories. a leathome in for fail otime shareholders give yoo prove your worth. can think in general you get may be six months or a year and that kind of situation, but tim was so closely identified with what was going on at apple, soap many of the things going on

he was deeply involved with. if that stock or market cap had gone down, i suspect the shelf hurlers would not have been happy, it -- shareholders would have been happy. tim loves the job. he has no interest in stepping down. i think he will be there for quite some time. tom: the headline is it will be a $1 trillion company, amazon and others fighting it out. tell our audience the struggle to where it isnt harder to move the needle. >> you get to a certain size, it is hard to keep growing. apple has sold one billion iphones. it is the most popular consumer product in the history of consumer products. you have to keep buying a new one. it is a razor blade to some

extent, but every apple product is different. when you mentioned who will get to $1 trillion first, nobody knows, but amazon, apple, al obama are the most likely prospects. are the most likely prospects. ,om: within that management there are ceo attributes you have learned over the years. i want to know about the struggles and failures you have carlyle group.rlisle -- saidis the time when you we miss this opportunity and that is what the ceo did wrong? >> you have to make sure ceos understand what it is like to run a company in a buyout world. starthe time the ceos you with will not be there at the end of the process. some are good, some are not. the characteristics you need our

perseverance, understanding, the of eo communicate, to lead, to focus. these are the attributes of a good ceo. some of them have them, some of them don't. tom: i spoke with the chairman of bloomberg lp about control and transparency. right now in your world we are seeing the challenges. full disclosure, i have 10 panels atdone dollars. -- davos. is it once again about accounting transparency? tom: he did a good job buildi e company, they clearly have some issues explaining where some money went. >> clearly something will happen . they are trying to srts of the company. i suspect transparency is an important part of it. that company was not public and did not have to have disclosures.

we talk a lot about diversity. should diversity be under the government's umbrella? diversity is now an important characteristic for american companies. american companies want to make certain their workforce come executive leadership have diverse qualities. the. that if you represent society well in terms of representation it would be better and performing for shareholders. we are sensitive to that at carlyle group. it is an american characteristic more so than an international characteristic. in other countries you don't see as much of a concern about gender diversity, as in the united states, but i think that will change. francine: i know we are jumping around, but we have one million questions to ask you and only talk to me about technology stocks in general. if you look at the valuations,

we had autch pments processor that ipo did today, the share price doubled within 20 minutes. market caprice and of this company is half, if not more than half, of deutsche bank. overvalued ornies are they right? >> time will tell. so-calledre are over unicorns in silicon valley in the united states, companies with values of $1 billion or more in a private setting. some will work well, some will not. my own company carlyle group probably announced that we put an investment in ant, related to alibaba, the payments arm related to alibaba come about a separate company. we and a number of investors injected about $14 billion into a company with a $150 billion

play ration, the highest pre-ipo valuation ever. we feel it is basically a payments processor, among other things. i do think payment processors will narrow and will dominate the world. i think the one we invested in will be one of them. we made our own investment decision and time will tell how that will work. the company referred to is like many other small technology companies. gohas room to grow when they puic because there is pent-up demand. rubinstein with us. coming up this afternoon, bill gross and our fed meeting. ♪ two, down, back up!

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which could save you $400 or more a year. it's a new kind of network designed to save you money. click, call, or visit a store today. this is "bloomberg surveillance." let's talk about brexit. theresa may has never really afterd the defeat

promising concessions to rebels in her own party. membersreassured pro-eu of her conservative party that concerns over th possf leavinwithout the deal. fromore, we are joined westminster. if parliament has too much power , is there going to be a leadership challenge to theresa may? risk to the leadership challenge comes from this. the keyword was balane. it seems like theresa may is between a rock and hard place. make the pro-eu rebels in her party believe this new admin meant they are working on satisfies them that they will have some say to avoid a no deal farit, but it can't go too

so the pro-brexit side of her brexiteels this will be in name only over go not as far as they wanted to. keep theils to pro-brexit side happy, that is where there could be a challenge to her learship, so she has a fine line to tread. muchine: we spent some time talking about brexitm the u.k. point of view because our time seems to be consumed by internal fighting. what do we know about how brussels views all of this? from brussels perspective at the moment, it seems as if they are waiting for the u.k. to get its act together and give a clear plan of how they will approach this. u.k. andook like the the tory party in particular don't know where it wants to go with brexit. you have these pro-eu rebels, and the brexit supporters on the other. the key thing some rebels are

pushing for is they want to be aslose to the eu as possible. this is to do with amendments to the with drawl bill around the stoms union. the second thing is it's meaningful vote. this would allowarliament to have a say on the final deal. tom: this is an auspicious day. david rubenstein, who brought the magna carta to america, is here. the prime minister may need to know the magna carta. when does this end? that is an impossible question to answer. theresa may is racing against the clock. she has until friday to work on

this amendment with those pro-eu rebels to get something satisfactory for both sides and that is legally watertight. we are hearing from officials the lord could vote on this amendment monday, then this whole issue could rear its head again. the other deadline in terms of having something to present to the eu is of course the eu summit towards the end of june. then it doesn't end there because the trade bill in july, and this is where the issue of the customs union could come up again. but remember, the u.k. is leaving the eu and march 2019. tom: i've never read the magna carta. i'm going to do it and so are you. about itng to learn all as well. nejra cehic, thank you in london. let's get a news brief with taylor riggs. taylor: president trump says

there is no longer and nuclear threat from north korea. the president is in the u.s. after the meeting with kim jong. he said everyone can feel safer than t day he took office. said the president promised to lift economic sanctions. the is at odds with president's comments that the restrictions would stay in place until north korea agreed to give up its nuclear arsenal. warnedmueller intelligence services are still meddling in u.s. elections. certain evidence could hurt ongoing investigations. one of the companies charged with election meddling once the evidence to help with its defense. the iaea warns iran an venezuela could lose 30% of their oil output next to because of u.s. sanctions and economic upheaval. the iea said that would require extra output from members.

opec meets next week to debate whether to restore oil production cuts. a surprise from soccer's world cup in russia, spain has fired s begin.ger one day be spanish authorities were upset that he was just named the new coach at real madrid. today, we will learn the 2026 world cup will be awarded to the -canada-mexico joint bid. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. am taylor riggs. this is bloomberg. tom: thank you so much. david rubenstein with us with the carlyle group, his efforts with tim cook, look for tonight on bloomberg television. dennis gartman here. also, ira jersey is a true football/soccer expert is here.

you are predicting morocco will win the 2026 festivities. with the expanded world cup, i'm sure they have the infrastructure to do it. surpriset would be a if the north american bid didn't wind up winning. tom: i will drive for the conversation later this morning. let's get to the fed meeting. i'm going to begin with ira jersey. bring up the chart. here's a lot of economic data that ira jersey follows each and every day. all you need to know is wage in't happening. real wage growth is not there. does that change the debate for jerome powell? >> it does. the cpi data continues to be relatively high compared to where it has been over the past decade. that gives the federal reserve comfort that it is on the right

half to combat inflation. the reason real wages rnc are is because oation. it is not because nominal wages are zero themselves. rightd thinks this is the path we want to continue to go on,he pace they have been 3-4 hikes see year. you dennis gartman, seen this time and time again. does that hearken back to when rubinstein was driving inflation , where it iserica that kind of inflation? >> we have commodity prices up 9% year to date. it is only the middle of june and we are up 9% in a broad basket of commodities. anybody who tells me wage rates are holding back isn't looking at help-wanted signs, looking at truckers earning $150,000.

plumbers are making more money. wages, even in southern virginia which has had a weak economy, we have seen wages growing up. -- going up. >> i agree. this fed and recent fats do not want to surprise the markets. they have tipped the markets what they want to do. tom: francine, that is the backdrop of jerome powell working for mr. rubenstein a few years ago. francine: if you look at today's multiple-choice question, what the fed and markets want to hear from the fed, you could argue are they ready to keep the labor market running hot, neutral rate, ford guidance, and the balanc sheet didyo to hear from the fed on? >> i think the fed will be on the same course it has been on. not whether they will hike today.

they are definitely going to increase the target range. something that will be different is they will probably only hike by 20 basis points instead of 25. interest rates have been higher than the federal reserve wants within its band. the other thing we want to parse from the statement is what exactly are they going to do in the future. , few members of the fed president bullard for example, have been mentioning they might be close to neutral. you have had other say we might be close to neutral, but can run higher the neutral because we want to keep interest rates high because we don't want the economy to run too hot. where is that and how far is that? tom: that's where i wanted to go. we can do this t hours. gartman, is it an age of

too much information? do we need to use the smoke signals of arthur burns and its cure language of greenspan? is there too much information? >> i think there is. fomcu didn't know the committee members, and you didn't know who the voters were. tom: you actually worked in these halls when it was less transparent. >> ise days u did not knt was going on at the fed. they wer ok. i don't think it is a bad thing we have more transparency. you can have information overload, but right now we have a pretty good mix. >> you remember when we still wait to see what the stop out rate was on matches or repos. tell was a long time ago. has ane: the boe completely different system as

well. if you look at the challenges of central banks, is there a worried markets are too complacent? because there is too much information, markets just follow wh the fead of >> i think hard data and? analysts often influence the fed. they are influenced by what other people think as well. is ank the data out there good thing. more transparency and more data is a good thing. people have to take advantage of all the data available. i would not want to go back to the situation as itasrs ago. it is always tending to go back and say it was better in the good old days, but right now we have information that is good for the markets. , do you worry the market is fully pricing in a hike today and you have automatic pricing? >> if we wind up pricing in

another hike, 10-12 basis points on the front end, i would expect 10 year yields to do very little. it depends on how hawkish they are. g backo the information question, i think information is good, but we did have information overload. signal-to-noise ratio that needs to be parsed out. we used to make sure we listen to alan greenspan. now it is which president, , where are they on the hawk-doug spectrum. to parses it difficult who we should be listening to and what the signal is. tom: i want to show something here i think it is very important, the of to dismiss of the underlying theory -- obtuseness of the underlying theory. the actual plug-in equation down here.

thank you john taylor of stanford. the chart, and dennis gartman, this is the gap, the .ellow line and the taylor rule does this their e-work, or is chairman powell, are they flat out flying blind? >> i am not sure they are flying blind. they have to worry about foreign events that the fed never used to take into consideration. it is a far more complex circumstance annan in the past. are theylyng no. it is good to be an english major because we do more parsing of the language than the data. tom: that has been one of your great academic thrust. what is the art of federal reserve communications? >> it used to be the case you had to figure out what they meant because they spoke in fed speak. jerome powell does not have fed speak problem.

he speaks in clear english. i interviewed him at a business council meeting. when you listen to him talk, he talks like somebody who is a tv show host, in english you can understand. i think what the markets will see is that when he explains what the fed has done, you will understand what he is talking about. that is a good thing. it sometimes was hard to understand what alan greenspan was saying. i think he had a natural tendency that way. jerome powell, you understand what he was saying. >> my friend betsy do called me and said the thing we will learn about jerome powell is he speaks concisely and will not equivocate. i thought that was timely. francine: francine, please. frcine: a final question on how the fed should view trade tensions. >> the fed has take them into

account. picture, trade is important to the global economy. it is less int to the u.s. than other countries. the world is much smaller than it used to be in terms of trade and market, so if you havether countries that wind up being negatively impacted by trade, then the u.s. will follow as well. that is something the fed is paying attention to, not necessarily specific politics, but the actual economic impact. tom: thank you so much. we greatly appreciate it. bill gross with us later this afternoon. right now, i need a briefing. took a shares of zte dive as the stock fell as much as percent in hong kong after the company agreed to pay a $1 billion fine and revamp its toagement to allow zte resume business after a two-month hiatus.

toshiba conducting its first ever share buyback. is repurchasing $6.3 billion of stock. two weeks ago, the company completed the sale of its memory chip unit $418 billion. blackstone group has raised $9.4 billion to speed up investment sia-pafic region. jonathan great says china and japan are the target areas. looking at real estate, private equity, and other opportunities in asia. that is your bloomberg business flash. tom: we need to rip up the script after that item on blackstone, competitor for david rubenstein and the people at carlyle group. i am seeing this correlate, reaffirmation have to go to asia. what have you learned in the years of getting off the plane lumpur?kong, and kuala

there is this mystery. we have to go to asia. >> 60% of the worlds population is asia and the large part of economic growth is in asia. so china is a country where we are a large investor. a lot of other private equity firms are as well. at 6.5%china will grow or more for some time. china.rything is india growing at 7%, and japan is coming back from virtually no growth at all. southeast asia is growing. in there going to be investment world, you need to be an asia. tom: great work talking about the new growth and rule of law within india. d.c. india getting to a better place because of a better business and financial rigor? >> investors use to think india was an easy place to invest, but it is harder than china.

today it is easier. aime minister modi has done spectacular job of inviting ern investors in. rule of lawing the that existed becauthe british influence. opt abouit. francine: david, do you worry about emerging markets overall, so muchebt, surprised with the fed hikes or the dollar goes higher, a lot of these countries will have problems. >> if the dollar gets too high, the enormous amount of emerging-market corporate debt dollar denominated, but where the local currency is relevant becae that is where the earnings are, these debt numbers can be met the debt can't be paid off because the dollar is to highly valued and it has to be paid back in dollars. that is a real concern if the dollar gets too high. if there was a potential cause of a slowdown in the global

econom that is one of the potential causes. francine: how do you read china? >> china is a country in my view , the single best place to invest other than the united states. theunited states is in league by itself because of the rule of law and transparency. .5%billion people, six growth rate, and the country is very capitalistic. they know more about my business in china than i do. they know what private equity is about. is a country where any serious investor wants to have some money. without?: dennis, do you agree there aren is that if trade tensions escalating between the u.s. and china, then debtor chinese authorities could make the foreigners in china pay for it. >> i am always concerned about trade circumstances, especially with the president raising the question all the time. i am concerned about emerging markets for the simple reason,

my often have the greatest line, emerging markets our markets from which you cannot emerge in an emergency. that is always in the back of my mind. andnt to china 20 years ago what i have seen in the last 20 years is astonishing and will continue. >> china is not been emerging-market anymore. ,om: that chart which you saw u.s. world gdp and china, we will show that through the week. we need to turn now to the news flow of a potential rollup of the a business. this is an extraordinary moment where we have an all cash effort by comcast, and a share effort by mr. bob iger. tell us the distinctions, weapons, tools, that he has if he bids all caps today. >> all cash is usually more

attractive, though it has tax consequences. it will get investors interested in. the u.s.ion by district court yesterday basically said we will not block vertical mergers. this was the first vertical merger the u.s. tried to block since 1979. i suspect there will not be an appeal. the judge said don't bother. a was not likely to issue stay, so i think that merger will go forward and that will prepare others to do similar mergers. one economist has told me in her public service in paris that we are at a time when there may be too much rollup, too many industries consolidating in search of thenue, and particularly price challenges that media has. is there a risk that media

becomes too small? >> i don't know if you can have too much rollup. ultimately the market will decide. right now there is a big concern you are not big enough. cbs, a very good company. tom: scale. >> is scale isodest and is small compared to netflix, amazon, and apple. ifou not in the landgiantscan y? i think you will see a lot of mergers and acquisitions. i think it is an exciting time in media right now. win?ine: david, who will is that the bigger companies that will take all, or is it amazon because amazon is amazon? >> you have amazon, apple, netflix among others, then you see google, facebook play in this world as well. you have these enormous technology companies with a lot of cash, and i think they will expend that cash to buy up media properties.

we will see an incredible amount of activity in the next year or so. tom: the headline right now, an announcement which will be a surprise to many. it will be a north american 2026 world cup. canada, mexico, and the u.s., maybe a precursor to nafta. 2026.in the trophy for let us continue this discussion on mergers and the price of money. you have seen expensive money, high real rates, and money for nothing, as dire straits would say. where are we going to be in five years? a hard time predicting five days in advance, let alone five years. if we go to a normal interest rate type situation, i expect in real terms they will be higher than today. there will probably be a

recession between now and five years from now, and there will be a lowering at some point in the next five years or so as we try to deal with the recession, if we have one. it is unlikely over the next five years that we can avoid a recession. we have not had one for 10 years. that is unlikely to continue for five more years. francine: what would be the catalyst, david? >> i think the three different catalysts, maybe four. one is a geopolitical event we can anticipate. you have the amount of debt and the federagovernment, $21 trillion, adding $1 trillion every year, the entitlements problem, all those things boil look at some point in the market might say it is too much. the second is the enormous marketof emerging corporate debt they can't be service of the delegates too high. the third is trade barriers and trade wars. i don't think anything in the

next year and a half, but at some point it is likely something will slow down. tom: within that discussion, dennis, is dollar dynamics. you have followed this for0 arerce about the dollar now >>? th that so much foreign debtrate debt and domestic is predicated upon dollars. the world is short a lot of dollars because of that. it gets worse and worse and worse. take the euro from 117 two 105, suddenly a 12% increase in the amount of debt you have. take the yen to 140 or 150. 150ink you can see yen-dollar without much to difficulty. from 110 toe yen 150, the amount of debt has increased 30%, 40%. tom: david, what with the

surif uration with tim cook? it was adn't say surprise, but tim cook is a classic, calm person. you would think he is a nervous, high charging person. he is a very easy-going personality. maybe that is one of the reasons for his success. this is the fourth season of the show. we have other interesting people, robert smith, the wealthiest african-american. ballmer,ming, steve richard branson among others. tom: have got to go. david rubenstein, dennis gartman, thank you. good morning. ♪ good morning. ♪ retail.

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only take one member o fed to push the fed took four hikes this year. cleared to launch, at&t-time warner get the clearance to merge. in doubt,t error one faces a fight to keep in power as emerging markets suffer with the fed normalizing policies. david: welcome to "bloomberg dareak" on this wednesday, june 13. they made their announcement of the host of the 2026 host. nafta might not be there, but we will all play soccer together. you will have games all over? canada, three in mexico, three in the united states. inent to a couple of matches 1994.