>> coming up on "bloomberg best," the stories that shaped the week in business around the world. the fed takes centerstage with a dovish hike, maybe not as dovish as the markets hoped for. >> powell that >> it's really facts and circumstances, meeting by meeting and meeting. >> central banks of japan and england stand pat on policy. italy's budget concessions pass muster with europe. >> as the more moderate people have won this battle. >> softbank's i.p.o. sinks in its first day of trading. china celebrates 40 years of reform with a message of resistance.

>> very few mentions of the private sector. or the market forces that have come into play the last four decades in china. >> as global markets struggled, exclusive insights as to what's ahead by stan drucker miller. >> if you look at the indicators i have historically used in my business, they're not quite red yet but they are definitely amber, setting off warning signs. >> it is all straight ahead on "bloomberg best." taylor: hello and welcome. i'm taylor riggs. this is "bloomberg best," your weekly review of the world of business. let's start with a day-to-day look at the top headlines. on monday, u.k. prime minister theresa may resumed her quest to bring a brexit deal over the finish line despite opposition

from parliament. >> statement! the prime minister! matt: theresa may has pushed back at the idea of holding a second brexit referendum after e.u. leaders failed to provide leeway to make her deal more -- divorce deal more attractive to leaders in the u.k. clearly she'll push back against anything that's not her deal but you would expect her cabinet to be on the same page. does she have detractors in her midst? >> wouldn't that be a revelation, the splits in the british cabinet the whole of the party has been divided about this issue all along, as we know. strong reports over the weekend about the movement for a second referendum gaining traction within her cabinet.

the ministers have denied this. she's been forceful in rebutting this saying the vote was taken in 2016, it's a betrayal of the british public if we try to undo that. but i think it's undeniable over the last few days and weeks as it's clearer she won't get this vote passed, her deal will not be approved by parliament, they second referendum is one of the only options out there. theresa may: my right honorable friend, the leader of the house, will set out business on thursday in the usual way, but i can confirm today that we intend to return to the meaningful vote debate in the week commencing seventh of january and hold the vote the following week. >> stocks get hammered. s&p 500 closing at the lowest level since 2017, more than 500 points lost in the dow jones industrials and volumes up 40%. -- 30%.

>> this is not tied to fundamentals and hasn't been for two months and what i think we're making the mistake is to create narratives out of thin air to say, today it's a recession and two months ago was the fed, and before that was it was faang stocks. there's a variety of things that might be contributing to this but recession, i think we're stretching it. >> chinese president jinping xi says he's willing to push ahead with china's reform and opening up economic strategy but warns any path of reform will only come from within the country. >> no one is in a position to dictate to the chinese people what should or should not be done. >> there were business executives and investors we have been talking to leading up to the speech who were hanging up to a slim hope that maybe president xi would use this as an opportunity to outline additional structural changes to

the economy, lowering trade barriers around the markets here but that didn't happen. what he did was recapped historical achievements from 1978, the start of the reform period, and emphasizing the role of the party. very few mentions of the private sector or market forces in play in the last four decades in china. nothing in the speech addressed the concerns from trade tensions and economic pressures china is under. >> the european commission will not be imposing penalties on italy over its budget. rome and brussels agreeing on a 2019 budget and lowering the growth target. >> finally the e.u. has figured out, let's defuse this because you don't want a battle you can't win, but i think the key issue is that reduced growth rates in italy, not enough. look at what the i.m.f. european commission says will happen next year.

they say europe will come in at 1.9%. i would give anything to bet against that. if they come in at 1, that's a good achievement. >> when you look at the power brokers, more moderate people won this battle. the prime minister, guiseppe conte, who is politically independent, and the finance minister, and the market didn't trust what he said but he's had the final lot here. it's a similar number to the one he proposed. and the more skeptics, they've had to back down so that would be the highlight here. david: president trump has not been shy to provide his views on what the fed should do. tweeting just yesterday that the fed should be careful not to make another mistake, warning of further reductions in the balance sheet, after earlier saying continued rate increases would be wrong. >> we get a dovish hike. fed officials raise the target range for the benchmark rate to between 2.25 and 2.5 and interest on excess reserves go

up to 2.4% as feds try to keep a lid on the effective fed funds trading range. they added a word to their forecast and now saying the committee judges some further gradual increases in the target rate for the federal funds rate will be appropriate. the d.o.t. plot calls for only two moves next year. >> the policy will change if incoming data materially change the outlook. >> powell put the put away or restruck it lower. >> markets looking for a more flexible fed, a more "we feel your pain" kind of fed. >> certainly a down day, collapse in the market today. off by 39 if not 40 points, the s&p 500 down 1.5%, nearly every industry group in the red. we've seen $350 billion wiped off of the s&p 500 in market cap. >> clearly the markets were hoping for a bit more, and bit more feeling of love from the

fed but i think the fed has done the right thing, looking at the macro economy, the economic outlook. the fed can't respond to every time the markets move in one way or the other. >> we now are waiting for the bank of england decision which is out and surprise, surprise, they kept the rate at .75%, the asset purchase target at $435 billion. not a big surprise. >> if you look at what the bank of england is looking at in terms of the economy, you might have thought this would be a meeting in normal times where you might prepare investors for another rate rise at some point in the next few months. although inflation was lower than expected, they're bringing the implications of the budget we had earlier in the year which will be more expansionary for next year so fiscal policy will support the economy. you have wages picking up slightly faster than the bank of england policymakers thought but everything on hold because of

the endless back-and-forth over brexit and lack of clarity on what happens in the end of march. >> u.s. stocks sinking today, hitting sessions lows, in part because of a rising threat of government shutdown. it would be a partial shutdown but shutdown nonetheless. >> this was really unexpected. everyone thought it was a done deal and in the g.o.p. conference this morning, it fell apart. the president made it very clear he will not sign a continuing resolution that doesn't include wall funding. paul ryan: we're going to work on adding border security this, also keeping the government open because we want to see agreement. >> from the beginning of the year, markets kept shrugging this off. now what some are saying is different is the fact that you have so many uncertainties that when you pile this on and especially when one of the uncertainties is surrounding global growth and potential for a slowdown, then anything can tip you off. >> u.s. defense secretary james mattis will retire at the end of

february, citing differences with president trump. he made the announcement in a tweet. we had that letter from the secretary of defense himself laying out the reasons he's leaving. what were the key takeaways? >> the key takeaway was that general mattis said he had a strong belief and respect for u.s. alliances and clear-eyed vision of u.s. strategic competitors, and malignant actors in the world, and he said that was formed over a long, long career, working in those areas and he said that the president deserved someone whose views were more aligned with his. most recently, the announcement by the president that the u.s. would be withdrawing completely from syria, that caught him and other -- caught mattis and other national security officials by surprise and now there's word that the president is considering a full withdrawal from afghanistan. we have no idea yet where trump

going for his next defense secretary. >> republican senators are meeting with president trump at this hour with washington on the brink of a partial shutdown. kevin: earlier today, president trump tweeting out that democrats whose votes we need in the senate will probably vote against border security and the wall even though they know it is desperately needed. >> all of a sudden today the discussion has become about the filibuster in the senate because that's the only thing keeping the senate from passing the measure that the house passed yesterday to fund the government for two weeks and including $5 billion the president requested for the wall. the reason that can't pass the senate is because he needs nine democrats on board to get rid of the filibuster. the president suggested to get over -- get rid of the filibuster. mitch mcconnell is not ok with getting rid of the filibuster. >> it looks like we're heading towards a partial government shutdown at midnight tonight. the senate is voting on a procedural motion to move to government funding bill that

includes $5 billion for the president's wall money. it will fail to get 60 votes in the senate. the question then is what republican leaders do and what the president is willing to accept. taylor: still ahead, as we review the week on "bloomberg best," an exclusive conversation with stan druckenmiller, alan greenspan, and bill dudley. next, more of a top business headlines. a new intelligence report on political meddling reveals that instagram may have more influence than facebook. >> the russians were able to grow to tens of thousands of followers, hundreds of thousands of followers. ♪

taylor: this is "bloomberg best," i'm taylor riggs. let's resume our global tour of the week's top business stories in saudi arabia where the kingdom came out with its budget for 2019. >> saudi arabia's spending will hit an all-time high in the coming year as the government extends handouts to cushion the impact of rising costs and keep the vision 2030 program on track. the budget includes a cost of living allowance. the kingdom is struggling over falling oil prices and anger over the murder of journalist jamal khashoggi. >> if you look at the oil revenue and projections for oil revenue, they imply an increase of oil revenue from 2018 to 2019. given that brent crude oil averaged $72 a barrel this year, that assumes they are projecting $80 a barrel in their budget in

2019 to meet revenue targets. now that is optimistic to say the least. the government cannot have their cake and eat it. they have a choice to make. they can either stick to spending plans and oil revenues might disappoint in which case the government would miss its deficit target of 4.2% of g.d.p. the other option it has, it's basically it commits to deficit target of 4.2% of g.d.p. and adjusts spending to accommodate the recent decline in oil prices in which case the government will miss its growth forecast of 2.6% of g.d.p. growth in 2019. >> w.t.i. closing below $50 a barrel for the first time since october last year, down again this morning, amid fresh concerns production cuts announced by opec and allies won't be sufficient to prevent a new supply gut. -- glut.

is this a sign that opec and allies are losing control of the market? >> the saudi energy minister said many in the shale patch would thank him because that would support prices. that isn't filtering through to the market now. they're really only doing about a third of the market. their influence on the market has declined over the years and we're seeing it coming through now as they need to rely more on russia and as they battle this wave of shale coming on. >> the i.m.f. has approved billions of dollars in aid for ukraine as the eastern european nation looks to stabilize its economy and pay back debt. president poroshenko said the decision would stabilize ukraine against external and internal challenges. the bailout comes after the country imposed martial law in some regions. previous payments were not forthcoming because reforms took too long to be delivered.

are you confident reforms can be delivered this time? >> we are grateful they have supported us once again and i think we have delivered quite a lot already. we have adopted the budget for 2019 which is a good fiscally prudent budget with a deficit as low as 2.28% and i think we are on track on the reforms will be in this 14-month program to cover us for 2019 and we're also open, give green light to other concessional lenders to cooperate with ukraine. >> from russia with likes. a report commissioned by the u.s. senate intelligence committee shows that russia's most effective tool if spreading propaganda is instagram, not facebook. >> facebook has had to protect instagram. people have been boycotting facebook, quitting the platform because of russian

disinformation but instagram got more engagement, according to the researchers with the report commissioned by senate intel. this is stunning because of how instagram works. it's not a viral network the way that facebook and twitter is. but on instagram, you can build a very defined community within an interest group so on instagram there were black activism accounts, feminism accounts, lgbt, veteran accounts, that the russians were able to grow to tens of thousands and hundreds of thousands of followers and really get a lot of traction in those deep groups. >> steven mnuchin saying that washington and beijing will meet in january to negotiate a broader trade truce following a series of phone conversations in recent weeks. the treasury secretary says both sides are determined to resolve differences. >> according to mnuchin, the

u.s. goal is to have a verifiable and enforceable agreement on paper by march 1, the deadline for the truce agreed to at the g-20 summit. there are two factions in the white house. some china hawks have questioned whether or not the u.s. can count on any agreements made by china about economic reforms, given the experience of past administrations. but mnuchin told bloomberg today in an interview that whatever is agreed to will include enforceable measures and firm deadlines for steps to be taken. >> as widely anticipated, the bank of japan made no policy changes at its final meeting of the year, maintaining that 10-year yield target at about zero percent. the policy balance rate at minus .1%.

>> i think the decision by the bank of japan was no surprise. inflation is nowhere near their inflation target so they had absolutely no other choice and of course now with the fed sounding a little bit more dovish, i think that gives -- vindicates the decision by the bank of japan. we probably have to wait until april 1, if they make a policy change. i don't think there will be changes before that. >> the united states has accused two chinese nationals of coordinating with chinese security officials in a decade-long campaign against dozens of companies in the united states and abroad to steal intellectual property and other data. what do we know about these charges? >> we know their computer intrusion conspiracy charges and essentially what the government's saying here is that for 12 years, a couple of hackers who were tied to the

chinese government were infiltrating both u.s. companies and u.s. agencies and in the process stealing all sorts of intellectual property and other data from these companies for a long period of time. ♪

taylor: you're watching "bloomberg best." i'm taylor riggs. investors around the world this week were watching the federal reserve with keen interest. billionaire stan druckenmiller one step further. the duquesne family office founder co-wrote an op-ed in the "wall street journal" urges a hike.ause in a rate he explained his position in an

exclusive interview. >> if you look at the coincident economic indicators which i wish the fed did. they actually look at lagging indicators. if you look at the coincident ones, they all look quite good. handle, so forth and so on. if you look at the indicators i have historically used in my business, they're not quite red yet but they are definitely amber and they are setting off warning signs. erik: what do you see? >> the best economist i know is the inside of the stock market and i'm sure you heard harrick and i heard in my economics one -- stock market is predicted nine out of the last five recessions. i will say that's better than the fed. they've gone 0-9. nine of five is not terrible. but the best economist i know out this is the inside of the

stock market. so the fed, when they look at the stock market and they look at financial indicators, probably is just looking at the s&p but the decline in the s&p, which is funny, when i was preparing for this interview, it was 10. it's now 13. is a bit of mirage because if you look inside the stock market, the cyclical elements of the economy, particularly the front-end cyclicals, show a completely different picture than the defensive parts of the stock market. erik: stocks that's more sensitive. >> to the economy. so auto stocks are down 30%. they're not 10% or 11%, they're down 30%. building stocks are down 35%. banks, which you would think might be a symbol of credit or something else, are down 25%. the russell 2000 is down over 20%. retail equities are down over

20%, so how in the world could the s&p only be down 10 or 11 when i was looking at these numbers? it's because utilities, staples , and pharmaceuticals, which are economically defensive, are actually up. and this is the same situation i used cycle after cycle so that's one of the things. the inside of the stock market, which is the best economist i know and which i've used every cycle when i have invested, is saying, there's something not right here. taylor: that interview took place before the fomc's rate hike announcement on wednesday. coming up, interviews with former fed officials alan greenspan and bill dudley after the decision came out. plus, bank of america c.e.o. brian moynihan weighs in with his perspective on the fed and the economy. >> we're more worried about the factors outside the system. stock market prices.

taylor: this is bloomberg. ♪

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leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. ♪ taylor: welcome back to bloomberg best. this week marks the one-year anniversary of bitcoin. december 17, 2017 the cryptocurrency climbed to an all-time high value of under $20,000. this tuesday, it was trading over $3500. that is when eric check sir -- erik schatzker sat down for an exclusive interview. our guest thinks the worst is over. >> for the foreseeable future we are going to be between 3000 and

6000. we get worried you could go to 2500 or lower but we are close to the end. -- in the last few days we have seen capitulation in price and big spokesman. brian kelly who has been a knack ticket of crypto turned bearish. those are the signs the end is close. people in the crypto community say the cost of bitcoin has to rise because now it is trading thousands of dollars below the cost. >> not necessarily true. mining cost depends. some places of electricity is cheap and somewhere it is expensive. it is how efficient your chips are. mines are raking around 3000. we have not pushed through that pain point yet. >> you have come around to this

idea there is something different, maybe special about bitcoin. relative to the other large coins at the least, ether, litecoin. i could keep going. this store value idea. >> there are 118 elements on a paramedic table -- the periodic table. only gold has real value. we buy aluminum to make cars and in foil hats. [laughter] but gold is valuable because it is valuable. you could have all the gold in the world. 20 -- 20 meter cube. all the gold that has been mind can fit in a 120 meter cube. that is where a trillion dollars. that makes no sense. taylor: let's return to one of

the week's topics of conversation, the feds. among the most informed reactions, wednesday's rate decision came from longtime fed officials. former president bill dudley spoke with bloomberg thursday. and former reserve chair alan greenspan with tom keene and scarlet on wednesday moments after that decision. they discussed the political environment and the pressure exerting on policy. the am concerned about political system. government --.s. -- today and the economic outlook is offended. >> in your generous time, let's pause on where we are within our

american political system. do you find a permanence to the populism or do we rebound out of this administration whether it , bute term or two terms actually a traditional political system. >> let's remember what caused populism to the world, mainly in latin america. the growth rates slows down. when the growth rate slows down, you get a strong political response and the personal group of people who come on the scene saying we feel your pain get very considerable attention. populism is not a philosophy like communism or capitalism socialism. it is a crime -- a cry of pain. andle saying we are hurting

somebody comes along and says i have the solution. that person has always been effective in getting public office. >> i know you do not comment on jay powell but i wonder if you would indulge me in a hypothetical. what would you do if the president was tweeting at you and there is political interference? , the public review. the tweeting is social media. i know you are not doing this at home but all these messages we see from president trump. this is not william martin, is it, mr. greenspan? >> no. the president and all other political figures have a right to state their opinions. i was in government for almost 20 years and i do not remember a single instance when a political

figure, president or otherwise, argued in favor of the fed raising rates. i had a new ruble cases of the opposite. -- innumerable cases of the opposite. >> what is the feds outlook for growth? what is the consequence for out -- unemployment? what is the fed saying in their forecasts that they still think despite the stock market, despite the slowdown in global growth, the economy is going to grow next year. -- next year? >> what would you say to people who do not understand what you said? is there a point where stock markets fell off? >> of course. , foris going on further longer and it changed the fed spew about the outlook. the sense looking at the stock

market and financial conditions broadly but they are also looking at economic news. they need a seat payroll and months.nt gain 100,000 we are at -- have a tight liver market. we need to slow the economy now -- down. some conditions are not a bad thing. they are a necessary thing for the fed to achieve its objective. >> if you were at the meeting yesterday, would you vote for the rate hike? can you tell us what your thought was when you left and now your dot would be looking at 2019? >> i was in the consensus. thought most people that that was going to do three stimulus.scal

because the policy was more stimulated than expected. year most likely, but it depends of the economy and how the outlook changes. if the stock market worth to keep going down in the economy starts to weaken, the fed will take a pause. part of the problem is markets want the fed to tell us how it is going to be but there is uncertainty about how markets are going to reform. how the economy is going to react. how that is going to plan to the pressure of resources. certain,annot be more and we have a lot of uncertainty about all those things. capping a week of exclusives, david westin sat down with bank of america chairman -- the bank of america chairman ceo. they went straight to the subject of financial whirlwind

buzzing. clear for months, basically saying we have a view at which the rate we are getting on accommodative economy or taking accommodation out of the economy at fastbreak -- fast rates. we are getting to the bottom of it. of course they would be cautious.

who said to me everybody -- when a person has been in a room, you have to think of the person climbing a mountain. the question is -- where is the next handhold? not that they have a view of 17 meetings down the road of what is going to happen. what would it be like if the economy were going to .3%? a lot of the pack work was needed early on to save people. now we are there. it is are back to that meeting dependent. it's unemployment stays as tight as it is. wages grow. they have moved up to 3%. if the conditions are still a growth in the economy, 2% plus. we will tighten that. on the other hand, they brought the estimate for the economy. we did the same thing. there more worried about factors outside the system and stock market places. all of the geopolitical stuff. the key thing people are missing is when you get to neutral, it is fax and circumstances. balance areo the doing the same thing. they are having that much impact on rate structure. rates are not high because the fed is like winning.

they are lower. people think they have to declare this is where we are going. they cannot know. ♪

taylor: this is bloomberg best. let's get more roundup on the team's top stories starting with more trouble for goldman sachs in the scandal involving malaysia's state fund one ndb. >> malaysia has filed criminal charges against goldman sachs which it said made false statements. goldman sachs said it will

vigorously defend. how bad can the treasury be? >> the amount the fines could remount -- could amount to our large. ofthere is also the risk reputational damage to goldman. we spoke to one lawyer in singapore who said the risk is to the financial. and the attorney general in malaysia has been hard. she said a woman has fallen short of any standards so goldman nine terms of the -- but also in terms of the compliance of goldman. >> domestic telecom business has tumbled in the first day of trading. shares fell in tokyo, that is the biggest the client a major

debut in japan since 2014 and this was the biggest ipo in japan of all time. raising $23.6 billion. why did this huge and highly anticipated ipo? fumble so seriously. >> winter has come early in japan. we could call it a cold reception. some people are calling it a soft opening. in a year where we keep talking about liquidity, this close to christmas and you take an ipo this large and put it to the market. that is what is going to happen. the other thing that boggles the people is approaching this ideal and 90% of this massive listening went to retail investors. institutional money cap to way because it was overpriced and they were buying the company that it offered retail

investors. it is a commendation of factors really. in a joint venture to be controlled by the u.k. company -- creating the biggest supplier of over-the-counter medicines in the world. break down the deal for us. it is huge. global implications -- who gets what? of the joint0% venture. 5% will get the rest. investors like this because they have perspective ipo's four years down the road. this is a split up as we know it today into the consumer business and medicine business, oncology. >> in the near term, we are contributing significantly larger cash flows from joint venture to continue to follow our number one priority.

to the give visibility eventual separation, upload -- post integration and as we have made further progress that will allow us to reset the balance sheets of two companies, but goebel -- global companies that is very much based in the science of immunology, genetics and technology. a warning from britain's a sauce is powering for all of european retails. it lowered its 2019 sales. you can see that. is -- suffering given saz was the retailer on it for so many years. >> they are blaming. the first one is consumer

confidence has slumped not only in the u.k. it also in france and germany. and black friday in the u.k. spread across europe and that is addictive to discounts. is constant big price cut taking its toll. >> hitachi is buying a majority stake. the deal values at $11 billion and abb plans to return $7.8 billion of the proceeds to shareholders. do you look expensive? there -- shareholders have liked this because they wanted to get rid of this business for a while. the deal is on the defensive side, all of the costs i am going to come for the next couple years will come to a close.

has, alloption hitachi of this things are going to wear -- weigh on the way this fields and what happens to the stock prices. things -- investors will cheer the disposal regardless. there is bad news for facebook. the district of columbia attorney general has filed a lawsuit against the social media giant for granting user data without permission. this could be the beginning. >> absolutely. the company is being scrutinized by the irish state of protection lawmakers in the eu. they are being scrutinized by lots of the train center. more than just bring

charges against facebook. it could be a difficult position for them to be in. sheryl sandberg showed up at the meeting of attorneys general to give a talk about facebook and privacy, but a drumbeat of the news of how facebook has been flouting what they promised consumers. it is too little too late and this country is -- company is coming of the microscope. >> first china and now qualcomm is seeing a legal victory in germany in its fight against apple. a court in munich can block sales of some iphone models but the man will not start immediately. china said it would ban sales of certain iphones. what makes this ruling in germany significant is we're talking about hardware. >> that is correct.

if it is software, you put your programs to work. there is an update close to the bones and everybody gets on with their life. contrary to that, it is related to hard work which implies if you are not testing, you have to redesign your phone. p please stand by -- [please stand by] statement for the prosecutor's office. >> what do we know? a prosecutors have rearrested man on suspicion of greed of trust and that is according to nhk. many expected him to be released today which is why we are outside with many media crews by the detention house.

he could be released at the earliest december 31. we got a copy of the prosecutors arrest warrant and they say he allegedly transferred personal losses on derivatives to nissan inflicting financial damage on the automaker. the losses were estimated around 1.8 5 billion japanese yen. ♪

>> stewart wallace on his left

arm has this tattoo that says opec. it has this pie chart which shows production and charts this itty-bitty one down here. >> there are 30,000 functions on the bloomberg and we enjoyed showing our favorites. maybe they will become your favorites tubing. there is another function you will find useful. it will lead you to our quick takes where you can get important context and fast insight into timely topics. here are quick takes from this week. it has been a long time since electric vehicles had anywhere near the market share of an internal combustion engine. it is not close. in 2017, electrics made above 20% of worldwide auto sales but government has always had an outside influence, possibly more

so than car companies. get ready for more electric vehicles. since electric vehicles create a third as much carbon, some countries like france have enacted deadlines to convert all sales to a use. china is making the biggest push in part to tackle the air pollution. >> china is the biggest market and their cheap or graham is price. on --ere is also a price in china were automakers are creditd to make -- or by from companies. the tesla model three can travel 310 miles on full charge, which is slightly less than a range of a traditional sedan. -- nowars years ago there are once you can buy at a comparable cost. >> ev's in the cheaper to internal boston -- combustion

cars. it takes 30 minutes three charge the tesla so we can drive 170 miles. many are forging ahead. volkswagen says it will spend 8000 -- 80 $100 billion by 2030 and volvo will begin saving models that will use only guess. >> most of the space has already unveiled plans. they recognize the market chip and not want to be left behind. carsina bought 68% more they -- than the u.s. did. if china can succeed, it could become the detroit of the 21st century. ♪ manyr: that was one of quick takes you can find on the bloomberg. find them at bloomberg.com along with all the latest business, news and analysis 24 hours a day. that will be all for bloomberg best.

thanks for watching. i am taylor riggs. this is bloomberg. ♪

david: you met your wife in high school? michael: we met in seventh grade. david: so you didn't date around in the seventh grade? [laughter] david: can you explain how you kind of invented high real bonds -- high-yield bonds? michael: to de-risk america, you don't want to be dependent on a handful of banks. david: you came down with prostate cancer? michael: i have lost 10 relatives. david: what is it you did that helped change the way finance things? michael: we collect data. david: do you have regrets in your financial career? michael: sure. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪