>> and voters in the u.k. jeremy corbin's labour operation are trying to resolve the brexit crisis. they face another round of european electrics because britain hasn't left the e.u. talks are under way and due to resume on tuesday. us air force general has been sworn in as the top military officer of the 29 nation nato alliance. the former pilot who served in afghanistan and iraq became

supreme commander. a term to run two to three years and will be commander of u.s. forces in europe. the pentagon updated an assessment. china's first domestically aircraft carrier is likely to enter into service this year. this is by increased emphasis as what it sees as an emerging threat from china, space power and missile technologies. >> 2019 report finds that in the coming decades china seeks to become prosperous and powerful and china has a stated goal of becoming a world class military by 2049. mark: the pentagon declared

strategic competition with china and rush to be its top priorities finding extremist snurgses. a deadly escalation in syria is threatening to collapse. dozens of air strikes by government forces and russia on the last rebel enclave have killed several civilians. it is deeply concerned by the increased fighting which has killed more than 300 civilians and displaced hundreds of thousands. global news 24 hours a day powered by more than 2,700 journalists and analysts in over 120 countries.

>> and from bloomberg world headquarters. >> 30 minutes remain until the end of the trading day and week and we are starting it off. record highs pretty much on the s&p 500. and decided to get in on this. >> his investments have a way of doing that, right? and you look at the dollar? >> the dollar is down and what is a labor report pushing it lower, lack of inflation. and no manufacturing today. wasn't quite as pretty as hoped. >> we will talk about that later. and look at the pound. >> soaring. this is all about what a pummelling the parties got in the local elections. but they have lost most of their

seats, a lot of them going to the liberal democratic party. they are anticipate brexit. >> when i hard to a hard brexit? >> might be volatile. >> we have been talking about the technical level. folks want to see it close above that. and give confirmation. you see that the volatility. >> pretty amazing when you are given the amount of calm before the storm is what people are seeing. >> industrial metals up again. this is getting a boost for copper. and weight watchers ran into trouble and made a big big announcement and had oprah locked up. that had an effect. >> she can add big bucks. >> and look at some of the

recommendations. goldman sachs, and $200 price target. and possible changes to analysts expect a weakness in expedia. and 128 per share. and the analysts seen declines from weakness and rental egments and timely, rising a price target. the analysts pleased with the first quarter and on the back of lower margin products. >> time now for bloomberg exclusive, bloomberg luxury goods companies. as a group outperformed the s&p

500. they make up 5% of the $400 billion luxury market and to reach 25% by 2025. bloomberg is here right now with a special guest. >> i'm joined by the c.e.o. of matches fashion.com. thanks for joining us. you are in the u.s. and you are here because you are partnering with the new york that is happening and into the weekend. part of a number of similar partnerships, how much of that is a competitive advantage? >> it is interesting. we live in an amazing time where $260umbers were just said, billion euros. and online only 10%. it will be 25% by 2025. nd for us as a business we see

it as an opportunity to bring experience to our customer base and most importantly. and because of this, we decided to do a global partnership with the art fair and that's why i'm in new york. and doing an exhibition from wednesday to sunday and bringing cinema, arts, fashion and our global entrepreneurship because everything is available on the app. we see fashion, which is just not fashion but points of interest and lifestyle. >> this is helping you as we see this competitive landscape especially when it comes to e -commerce and how that is when public last year and creating joint ventures to grow in asian now part of the wider. how exactly does you compete

when you have all these groups that have been partnering with bigger names? >> the good news is the markets are big enough. and they love us because of our point of view. we have a very strong point of view and not just on fashion, but content as well. we are the only one today that brings that to the world in terms of going out there and finding those points of interest. we are very exclusive in the way we sell our products and content. but we are very inclusive in ringing the audience together. in new york and l.a. and hong kong, you can see what is going on what is going and be part of the conversation. >> that is what makes you different. e of those reported neem and

marcus is considering spinning it off and taking it public, how does it create pressure to you and the public markets? >> no pressure at all. we are focused on our customers. they are telling us every day they love what we are doing and we are focused on what we consider to be retail. i think the u.s. is very important for us. t is our number one market >> look at the markets and a third of our business. the u.s. is the biggest market tore us and it came very naturally. and there is a void that was in the u.s. market because i think it is difficult for the department stores here to have the agility and the opportunity to go toward that discovery. sac's.likes of

>> it is so much newness and discovery and they learn every day. when we have that, what we have done it yesterday and done an azing party where we had the sister of be ons a and this is we are ning and bringing music, fashion and all of that together. and that creates a different experience. and i think it's very difficult to do. >> you did say that that ecommerce would reach 25% of the entire industry by 2025. e there areas that are underpenetrated? >> in the space? >> yes. >> i think everywhere.

that's just the truth. when you look at the u.s. clearly there is room to grow online in the luxury space. europe as well. asia, very interestingly enough, you look at japan and opened our japanese and quite well behind the ecommerce because they were very good in their retail. so we are going there at the right moment and right pace and there is right opportunity. the big challenge is to keep focused because there are so much opportunity. we have key priorities. the u.s. is a big one to us. > thank you very much. >> coming up, while u.s. stocks are in the green, the stocks took a dive today. some banks say the slump in

volatility could be an awakening. ♪

>> u.s. stocks are closing out the week in the green. snap 500 on record high on pace for its best day. the vix falling. and goldman sachs, volatility may awaken from its slumber. wakening from this, i like the slumber here. gotthis this is the data we less than an hour oog. and 180,000 contracts. even in that short position. this slumber we have been in, what is accounting for? >> earnings season is a period

at which the index level realize volatility. companies are announcing good news and everyone is announcing good news. and that kind of keeps the level on index. and very low volatility. on that positioning front, i want to caution people not to overinterpret the nature or the extent of the short volatility trade. we had the net ocean and the long side isn't as big as on it was. and it is now very long. >> and why? why are we suddenly hearing from banks? >> we are hearing from banks while we don't have macro risks there is liquidity risks. we had big bursts over the past 80 years, half of them came since 2007. >> the risk there? >> it is more on the liquidity

side of things and that's why banks are in constant vigilance here. >> we will have to leave it there. this is bloomberg. ♪

>> joining us all week at this time, joe, the big news jobs report. when it came out, the market was kind up of up. >> it took a little time. it was like the market was struggling to find little direction. we were positive already going into the day. as soon as i saw the numbers, i thought this was the combo of data that investors like, which is ongoing sustained growth.

and you see the slight kickback and the wage growth number that was disappointing, these are not numbers that will make the fed nervous. and the fed stance has shifted just a tad this week relative to market expectations, but the bigger picture is a good thing for this market. nothing in this report. >> no inflation, wow do you make of the manufacturing? not as good as had been hoped. >> i thought, the survey numbers not amazing, the last few ones we got. still over 50. the survey. you can overthink this stuff and probably shouldn't. >> interesting point. what is interesting, we are hitting the record highs. we are all in terms of risk on s&p 500, in the index,

retailing, every single industry group in the green is seeing overall, transportation on the higher side and energy getting a rebound. >> the energy was quite a relief just how it has been beaten up. >> and jo the downside. the underperformer in the green, telecoms and household products. banks up 2/3 of a percent. and in the plus, looking at my bloomberg, the nasdaq has been the key performer. technology has been the performer. just moments away from the close . what are you watching? >> i'm looking at one of the best performing stocks on the s&p 500, putting a month to move

around 10% gain for the stock. that's the best since 2017. better than expected first quarter sales that are driving that gain. and also especially sales suggesting that the company has moved into the second quarter. it has been a struggle between the bulls and bears in recent months and short interest surge since march. and whether or not it can hold on to market share in that energy drink market here in the u.s. this is competitors, not least of which coca-cola. it's the bulls winning out and taking a victory lap today. >> we have gains for the s&p 500. the clouds computing down almost 11% on the day and above average volume. the outlook is cloudy and likely

has to deal with microsoft. they said a massive crowd pulled all the orders. we see the stock is closer to 52-week highs and lows and using this graphic. one point concerned with, take a look at valuations. the shares are trading 35% premium in the group and lots of cloudiness in the outlook and whether the inventory issues will be solved. >> and now i would like to take a look at volatility in another asset class and that is bonds and looking at options and the ratio between two-year and 10-year. on the top panel, we have the white line is your shorter term expected interest rate volatility. and the bottom panel is the ratio between the two. short-term rate volatility.

it is sufficiently more uncertain than for long rates. when the fed was cutting interest rates. you see these extremes at turning points and fed cycles and i find it very, very curious in a week the fed tried to impress and staying on hold that a cut is not imminent. market participants are not expecting it will come from the long end but from short rates. a cut is not just out of the cards just yet. >> we are going to keep this conversation going right now and bring in rachel evans for more analysis. imgoing to go pack to something caroline pointed out. we have still been seeing relatively broad participation in this rally. >> this is one of the interesting characteristic and how broad spread it has been. if you look at the top three,

tech at the top. and leading and consumer discretion and industrials. you couldn't think of three more difficult verging interests and gives you a sense of how widespread it has been. the stocks are benefiting from the better data. today is like a microcosm on what we have been seeing. this is a low valley and not concentrated. >> the other aspect of today, despite the strong data we have yields down on treasury. >> i thought it was the gold ilocks' scenario. on wednesday, everybody was panicked and a lot of will the yields spike higher. and we kind of moved back into this idea and everything is pretty good. we are not seeing runaway

inflation and the economy isn't slowing down that would encourage them to cut. we are in that middle area where everything seems to be going on let's ng to normal and get some more perspective as we o into the market close. >> i think the data that's come out over the past couple of days supports that view. certainly the better than expected payroll report that we saw and we still got decent wage deproth. but it wasn't accelerating and even more positive is the increase we have seen in productivity. we have seen a revival in u.s. productivity and that will give the fed. and i think it's likely to extend the economic cycle.

>> i want to talk about earnings as well. someone at bloomberg intelligence flagged this to me. we expect a profit recession and earnings recession. as of yesterday, we were actually positive on the - rnings front just by two tenths of a percent. >> the beats are higher than usual and on the magnitude. more than 6% in terms of the earnings growth. and that compares favorably to what we have seen over the past couple of quarters and this is coming off of gangbuster growth we seen last year. we had tough comparisons associated with the tax cuts. it wouldn't have been that big a deal if we went negative for a couple of quarters but doesn't look like that's going to be the case. >> talk to us about positioning.

e of the was exposure and we used that term a million times. people feel they are missing out on this? >> in the e.t.f. world, that hasn't been the case. we are seeing people putting money in the stock market. and outflows. and people are moving out into the market. this concept of the slowless rally persists. a few headlines of how much money for corporations and how that is driving the stock market higher and to the detriment to everybody else. hedge funds are slow and you see this drip, drip, drip of money. >> not on a day such as today, though. e are destined to just above

2,946 is just higher in the 2,945. and how we closed lower. what did we miss?aine: that is the next show, joe. joe: 0.9 for a percent is not good enough? fed has to cut rates. the nasdaq 100 does appear to have closed at a record high. caroline: technology was front and center, but more risk on. volumes were perhaps a little bit shy. let's dive deeper into the action with our market reporters, luke. we are close, but no cigar in terms of a record. >> what i'm looking at is the

story of the week, inflation. jerome powell talked of potentially transitory factors. let's see what the market thinks. we have charts from the previous section on the short versus long rate outlook. essentiallyps on, protection against inflation exceeding 2% or below 2% over the next five years. because of that, it is essentially at its lowest level of this cycle. traders are increasingly confident. traders are increasingly confident that the prices will stay right around 2% given the gap. that essentially means traders are betting on a persistent undershoot of the fed targets, but no crazy moves in either direction. manufacturing and nonmanufacturing prints this

week have been disappointing. kevin kelly brought that to our attention a few minutes ago. take a look at this 10 year chart. in yellow, we have the s&p 500. below 50 would suggest that there's a contraction. anything above 50 is growth. take a look at this divergence. the isn and the nonmanufacturing going down. that manufacturing print on wednesday, close to 50. kevin kelly is saying, keep an eye on that data. abigail, tell me i'm typecasting myself, but i've been taking a look at the great british pound rising more than 1% against the dollar today. the pound is actually the best-performing major currency this week and is headed for its best weekly gain in more than seven weeks.

you can't miss brexit. in the u.k., they held local elections. dire for thetty ruling conservative party and for the opposition labor party, voters expressing their frustration with how brexit has been handled. this might mean politicians will take that as a reason to compromise. brexit is still delayed until halloween, meaning there's plenty of breathing room for traders and politicians alike. joe: thanks. still with us, and kimball and bloomberg's rachel evans. what is the next big story? is it trade? we have a big week coming up with the chinese trade delegation. is it something else? >> i think i want to maintain focus on the fundamentals. i want to continue to monitor that. at this point, markets have

priced in the pretty favorable outcome in terms of trade. if there were disappointment there, that could cause a setback. we are moving into a period where i think it is going to get tougher. it will be hard to keep up with the pace. as you get into the summer months, we expect some volatility and possible drawdown. given that we've got this macro environment with subdued inflation, decent growth, and a lack of dangerous economic imbalances, if you are looking at a time horizon between now and year end, we think the path of least resistance is still up. romaine: do you recommend being someeight, given how much folks are raising their price forecast? >> that is where we are. we are not aggressively overweight given the fact that

we've gotten so much up front. but we are willing to stay with our current positioning and any short-term hiccups because we don't want to miss the upside. caroline: is the only game in town the u.s., with the dollar remaining so resilient? >> we did see a huge amount of outflows going into emerging markets. that was the story for january. likenk that is kind of tailed off a little bit. bonds haverket actually seen some outflows. europe is still very tricky, given that we have all this risk earnings,xit, various an awful lot going on. i think the u.s. is the safe place to play it. we have kind of scene stocks

climbing and climbing. how far can they go? it is very much close to that overbought level. however, it has been there since january. we actually haven't seen that come through. it does look like we could continue to go higher. caroline: currently seeing the rsi at 66.66. closing in on that top bound of overbought. romaine: i want to go back to the fed and monetary policy. when we talk about what is going to happen, a lot is going to hinge on what direction the fed goes. do you see any risk with regards to what the fed may do? >> as i said before, the fact that the productivity numbers are increasing does make the fed 's job easier. actual inflation -- >> romaine: is the fed reliable?

that was my question that i didn't get to eloquently. can the market rely on the fed? >> we know that jerome powell has had some troubles communicating. maybe he's gaining an appreciation for why chairman greenspan would speak in riddles rather than choosing to be transparent. but i think we can count on the fed to do the right thing. i do agree with chairman powell. there is no case for changing policy at this point. inflation below the target. inflation expectations still pretty low. i think if inflation did go lower or if there were some weakness, then i think we would see the fed shift. romaine: great to have you here. that is ed campbell. also want to thank bloomberg's rachel evans. that does it for the closing bell.

" is up next. this is bloomberg. ♪

caroline: live from bloomberg's world headquarters in new york, i'm caroline hyde. here's a snapshot of how u.s. stocks closed today. nasdaq at a record high. s&p 500 just short of it. u.s. jobs data out. bolstering the news that the economy is rebounding. but not by enough to revive inflation. warren buffett announces he's ,utting money behind amazon

giving investors plenty to ask him about. and the british currency outperforms after a pummeling for the country's biggest political parties. romaine: and we begin with jobs day. u.s. unemployment hitting a 49 year low with 263,000 new jobs added. a reserve bank of cleveland president told bloomberg the numbers were strong and the fed has decided to wait and see. >> i think our interest rate is a neutral rate, in the range of neutral. that is a good place for it to be. we are to continue to watch the data as we go forward. i think we are in a good spot in terms of our monetary policy. labor markets are strong and we take a balanced approach. i think we are in a good spot to

wait and let the economy tell us how it is doing. joe: we welcome now martha gimbel, the research director for the indeed hiring led. previously she was senior economist at the joint economic committee on capitol hill. great to have you on the show. it was a solid report, strong jobs gains, unemployment rate falling to a 49 year low. the one weak spot is disappointment on the wage number, the fact that it is not accelerating further. that is also a salient number. it could speak to tightness in inflation. market, by many accounts people have been calling full employment for years. >> five think there's still pockets of weakness. you still see the employment rate for workers in their prime below where it was in the early 2000's. the rate of workers who are

working part-time but prefer full-time work is still elevated. employers have other people they can turn to to hire before they have to start bidding up wages. romaine: there's a lot of people who look at the employment situation and come to this conclusion that we aren't at full employment despite how low the unemployment rate has gotten. do you have any idea where full employment is? martha: i think the employment is always a little further out than people were expecting it to be. that is exactly right. we shouldn't be counting out the u.s. economy before it achieves its full potential. caroline: how much longer can we have this joyous continued momentum. is some movement upwards in wages. that speaks to the fact that in

a tight labor market people don't want to do those kinds of jobs, so those employers are having to compete. to starts haven't had raising wages to the same extent yet. we are probably going to need to see more wage growth. economy stillhe is not at maximum potential and may have a long way to go. we've been talking for years to economists who say this is full employment and inflation is about to pick up. the next time we have a recession and eventual recovery, what can the profession do better to not prematurely say we've maxed out? there could be consequences, especially if it meant tighter than necessary policy. is importantnk it that people focus not just on the headline employment number, but other measures of slack, like part-time for economic reasons rate as well. romaine: when you look at the

demographics and the demographic changes, how do you assess the employment situation? are we employing the people in their prime earning years or is this more on the flanks? still seeing the prime age employment population ratio picking up, which speaks to the number of people in their prime working years who couldn't find a job, who dropped out of the labor force because the economic conditions weren't there for them. caroline: our previous guest kept reiterating how pleased he was in the productivity numbers. are you starting to see that move in the right direction? what are you seeing? think the productivity numbers are exciting, but also volatile. i would like to see where they go. in a tight labor market, if employers are having to make productivity enhancing investments -- caroline: are we seeing that?

martha: i think it is still up in the air. weeks, not huge, but manufacturing payrolls at 4000 came in below expectations. last month we had a contraction. that got revised higher. it does appear that the data says the manufacturing sector appears to be decelerating. martha: the good sector in general is growing more slowly than it was at the end of last year. that is a sector that drove the blockbuster jobs growth. joe: is the strong dollar a contributor to that? martha: they are facing a lot of headwinds. the manufacturing sector has been holding up for a while, but there's only so long they can put off having to cut jobs. romaine: do you think the fed and the way it is assessing the economy between unemployment and inflation -- do you think that

is still a viable way to look at things? martha: i think it is heartened -- important that we be looking at both sides. caroline: fantastic analysis. please come back. martha gimbel joining us. let's get you some breaking news. sinclair broadcast group is to buy 21 regional sports networks from disney. there was a bidding war going on with ice cube involved, but seemingly he's lost out. it seems sinclair broadcast group by the networks. still a lot to work out. back to jobs data, of course. the conference is underway at stanford today. withel mckee sat down if the centraled

bank should the adjusting its targets. >> i think the biggest challenge nging inflation targets, some of the other strategies that they are discussing, is the change itself. many of them could work, but to work, they have to be credible, and the fed has to commit to them. that is one of the fence problems. it changes its mind. it wants to be discretionary. if they can't commit to a strategy and illustrate and explain how they are going to commit to that strategy, then it is not going to make much difference. it is really in the implementation and the practicality of the strategies that is the challenge. >> let me ask you about the current economy. for years you were arguing for higher interest rates because

the unemployment rate was so low. we are at 3.6% on the unemployment rate and 1.6% for pce core. would you vote differently today? >> i'm certainly comfortable patients, the fed's if you will. i think the problem is still with the balance sheet and still with how the balance sheet policies are going to interact with the monetary policies. that is one side that i'm uncomfortable with. piece that ither think is a question to me is, why is inflation not higher than it otherwise would be? the question is something that nobody is really looking at. when the crisis came, two things happened. collapsedmultiplier

completely. we don't quite understand why that happened. whichty, the rate at money turns over and is related to gdp, that collapsed as well. we don't quite understand why that happened. i don't understand why it happened. we want to understand why inflation is low or why it became lower than others. nobody seems to be puzzling over that. that would be an important thing to try to answer, because if we don't understand it, we don't understand what is going to make it come back. the large balance sheet is part of the risk of that. i think that is something we need to be thinking about. romaine: that was charles, the former president of the

philadelphia federal reserve, speaking with michael mckee. almost $10 big billion deal being announced after the close on friday. sinclair broadcast to acquired -- from disney. 21 regional sports networks remain because fox and disney needed to get rid of assets. romaine: this is a big deal. was goingmonth, this to fetch as much as $20 million to $22 billion. they did have to break off a part of this. the yankees sort of book that back for about $10 billion. i don't know what they paid for it, but it was valued at $10 billion. joe: as you mentioned, ice cube and a handful of other celebrities have been in the running. --aine: this dimon network he's like the stealth billionaire. caroline: we're going to read

that one. him and john malone, the other billionaire losing out on this one. fascinating players. this is bloomberg. ♪

romaine: it was a milestone for microsoft and for the ceo. in the newis issue of business week. againt week, microsoft became the world's most valuable company. it hit the $1 trillion mark. almost certain no one mentioned it to ceo satya medela. he told bloomberg businessweek he would be disgusted if anybody celebrated the market cap, but many are celebrating the turnaround.

microsoft dramatically cut its dependence on windows and built a $30 billion cloud computing service that in some areas is ahead of alibaba and google. microsoft office used to be a one-off purchase, now it is a cloud-based service. microsoft fines for major retailers to cloud contracts. walmart, kroger, walgreens, and albertsons. nonetheless says this is due to a culture change. you can read the entire story in the new issue of bloomberg businessweek. softbankn tech, weighing an ipo and it is a fund to keep pace with the booming start of injury. this is according to the "wall street journal reporting. i want to remind myself. we know it has stakes in uber.

holdings,nes, arm nvidia. slack, but wag, do you remember that one? a $300 million investment in a dog walking service. joe: have they filed yet? caroline: not yet. joe: i love this. romaine: it would be bonkers. joe: that is the only way to describe it. caroline: largely backed by saudi arabia of course. fascinating times. ipo's do pretty well nowadays. a quick check of the latest business flash headlines for you. adidas shares at a record today. celebrities like kanye west boost sales in china. double-digit growth in the asian nation in the first quarter.

the ceo is pledging to fix problem areas such as the ailing reebok brand. fiat chrysler says profit fell in the first few months of the year, missing analyst estimates. strong but slowing sales of suv's and trucks in north america. the automaker maintained its earnings outlook, counting on trucks to boost profits. as you mentioned earlier, sinclair broadcast has agreed to by 21 regional sports networks. the local tv company into a cable sports powerhouse. sinclair will acquire a new subsidiary. allen is investing in the business and will help supply content. that is the business flash update. joe: coming up, the oracle of omaha embracing amazon. warren buffett into technology after mostly avoiding the sector for years. ♪

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>> i am mark crumpton with bloomberg first word news. president trump confirms that he spoke by phone today for over an hour with russian president vladimir putin. during a meeting with the visiting prime minister, the president told reporters that he and president putin spoke today about several issues. >> we talked about many things. venezuela was one of the topics. he is not looking at all to get involved in venezuela other than he would like to see something positive happen for venezuela. i feel the same way. >> the president said he and president putin briefly

discussed the mullah report, with mr. trump telling reporters, as i have always said , getting along with russia, china, and everyone is a good thing, not a bad thing. congolese health ministry confirms that more than 1000 people died from ebola since august. the outbreak was declared in eastern congo. it is the second deadliest in history. >> fundamentally, we need the political leaders in congo to depoliticize this response and response is not being used to drive conflict. is congolese business. congo is a sovereign country. fundingtor ryan says

for ebola containing efforts face what he describes as an urgent critical gap. he called for more help from congolese leaders and the world. a warning from iran, the country's oil minister says opec is in danger of collapse because some nations are trying to undermine fellow members. it was an apparent reference to saudi arabia's pledge to fill the supply gap. president trump was trying to cut iran's exports to zero. the afghan grand council ended today with a resounding call for peace with the telegram. more than 3200 people gathered to try and hammer out a shared strategy for future negotiations. several prominent afghans boycotted the meeting, including the chief executive, exposing the deepening rift in the administration. global news, 24 hours a day,

on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. joe: today's big story, berkshire hathaway billionaire warren buffett buying into amazon. we are joined now by michael moore, who leads bloomberg's finance coverage. standing bybuffett and just buying shares of amazon. >> this was one of his investing deputies. he didn't specify which one made this purchase, but it shows that they are taking an increasing role. they've got their own piece of the portfolio. company has a the huge stake in apple, in amazon. is this a departure from the traditional berkshire style of investing, or is it at the point

where they can point to companies like this and say these are value stocks? i think it is a little bit different. he's talked about revealing apple as a consumer company. amazon is not just tech. it is a little bit of everything. when you get into pure tech stocks like oracle, buffett bought in and immediately sold , i didn't really understand oracle's business. there are parts of the tech world that he is still iffy on, but these companies have gotten so huge. caroline: talking of huge, so has his cash pile. he is searching for something to put money into. staket is why the apple has gotten so giant. he has not found a big deal at a price he likes. short of something like the railroad that they did several

years ago, he hasn't had those in the last few years, so he's turned more to the public market. joe's point, you could sort of follow the crowd and move into some of these tech stocks, but then he had some success with these old businesses, including the truck stops. pretty good business. >> sometimes he goes into the un-sexy businesses and has success there. he's got a lot of banks. he's done pretty well on those. they have a big thing in omaha. weekend, this amazon news went people's appetite for that. the deal with the 10 billion being put forward for

occidental, what else are the things that maybe people want to hear him talk about? >> succession. joe: does he ever even talk about that? >> vaguely. he talks about what the company is looking for in a successor. last year we got the biggest move in that direction with him appointing operational deputies. able runs all the other businesses. guy is really seen as the who can step in as ceo. warren's role, i don't think is going to be duplicated. it is likely to be split up. his son would become chairman at some point down the road. some of his roles would be split up. people like to hear him talk about the potential succession. joe: thank you very much.

we will be watching whatever comes out of omaha. the internet giant also has an admirer in ken langone. the home depot cofounder and the author of i love capitalism sat down with bloomberg's tom keene earlier. >> i think bezos is a true pioneer. i think he has forced all of us in business to think about alternative ways to reach the customer. focust think home depot's and effort on online sales would be as passionate and profound as it is if amazon hadn't shown us. >> what is the best practice from amazon home depot can take? product toe get the the customer faster and cheaper? it is that simple. the customer wants to stay home and watch television. you've got streaming.

everybody wants to stay home and watch television or whatever they are watching. they don't want to get in their car and drive to home depot. withat do we do traditional business in america? i think of the minnesota mining company. there's a complex industrial company, doesn't have the advantages of home depot and amazon. what do they do to make things better? >> he was a master at innovation. of new at the sales products in the first year. posted notes. they had a whole managerial process. it was iconic. >> i'm sure they celebrate that. they have to make sure that every time their salesman shows up at home depot, they have a product that our customers want. >> how do you respond to the corporate egos of cutting cost?

it can be managing budgets quarter to quarter. i'm sure you've lived in those meetings. how do you respond to people that say we need to cut cost? >> you need to cut cost that you don't need to have. depot, 480,000 associates right now. every one of those is critical to our success. they are not a cost. they are an asset. hand, if we spend money in ways that don't make sense and you take a step back, this doesn't make sense. how about i love hardware stores? how do you respond to the hardware stores you put out of business? >> we are more efficient. we offer the customer more of what they want. just like somebody will put us out of business if they go around us to the customer.

if we didn't address the people that want to shop online -- >> you are a huge fan of elizabeth warren. i want you to address the next thing coming down the pike. that is amazon is a standard oil company of new jersey. where are we going to get these technological monster successes? somebody says break it up. they said breakup home depot. >> guess what. i think what you want to do is study amazon and learn what they are doing right and try to improve on that. i give jeff bezos enormous credit. he saw a void, developed a technology, and he's doing it. i said earlier, the thing that i saw in him that i admire, humility and smart. passionate

conversation between tom keene and ken langone. coming up, african swine fever is affecting the global supply of pork. this is bloomberg. ♪

caroline: quick check on the latest headlines. sinclair broadcast has agreed to inquire interests in 20 regional sports networks from disney for $9.6 billion. disney agreed to sell the networks and the transaction has been unanimously approved by the boards of both companies. sinclair will acquire the businesses the of a new

subsidiary. byron allen, who owns the weather channel, is investing in the business. norway's trillion dollar sovereign wealth fund -- in the first quarter. that is $16,000 per citizen. holdingsgest stock were acme and microsoft. are restructuring existing loans and boosting collateral needed for new ones. in march, a report by first midwest bancorp chicago showed agricultural loans up in 2018. that is your business flash update. let's stick with agriculture. african swine fever is sending shockwaves through the global food chain. a farm in china was found to harbor the fever in august.

here to talk more about the impact is steve matthews. at alternative data means to track this sort of thing. at the moment, what sort of damage are you seeing? 30% ins like about china. that could be getting worse. the chinese say it is under control now. romaine: is there a mechanism to replace that? >> right now mechanism is increased imports. once the problem is under control, they will rebuild. every once in a while, breakouts of diseases happen within the livestock industry. comparablee best situations to this situation, and how long did they last, and how long do we see a disruption? >> probably the most comparable one would be the high pathogenic za in the u.s.

until 2015. the usda had a rapid response to int problem and our farming the livestock industry is very modern and it was able to be contained to only 50 million birds being either killed by the disease are culled by the usda. i lived through foot in mouth disease in the united kingdom and the devastation to theers, to tourism, to ability to travel, to get on planes, do we know what china is trying to do to contain this? >> they think they have it contained. we see no reason to believe otherwise right now. some people have some suspicions. the key is to have a very good reimbursement program for farmers. china has an awful lot of small pig farms.

about 97% of their farms have 50 or fewer pigs. it is very hard to implement a program that is comprehensive when you have that many small farms, as opposed to the u.s., where you have a few large facilities. romaine: small farms, but this could have a big impact on the economy. cpi is dominated to a large degree by pork prices. >> some people call it the china pork index. that is how serious it is. leaveease of 30% should greater price appreciation. joe: going back to china's claim that we have it contained, how would someone, a third-party, verify or measure china's claims? i imagine farmers, agricultural companies, traders -- how do you

know? >> it is not easy to tell right now. it is a lot of anecdotal information. however, we track a number of data series from a number of providers inside and outside china that can help piece together the puzzle. brought up thene point that this could have a broader effect. >> certainly. there are a number of ways that could happen. the most clear way is that there are fewer hogs. one thing that could happen is the longer term chinese taste could change from being largely pork to maybe more poultry, more aquaculture, both of which are more efficient users as far as feed goes. it could depress demand. something wenitely are going to be keeping an eye on.

we want to thank steve matthews of grow intelligence. coming up, the british pound. we will have all the latest, next. ♪

caroline: sterling is jumping by over a percentage point, the biggest daily move since march. also amid ongoing brexit negotiations in parliament that seem to be going nowhere. joining us to discuss all of it, john. the key story today was the pummeling that the conservative party and to a certain extent the labour party got. >> that is certainly true. very much less of an extent for

the labour, who had less to lose. but when you lose more than 1000 counselors around the country, certainly very bad for them. take a look at how the pound moved against the dollar. one important point to make is that the big leap in the pound time,d at 8:30 new york when the nonfarm payrolls came out. we later have a brexit development, which is jeremy corbyn, saying that we've all been given a spanking. it is obvious the public wants us to do a brexit deal. which to some extent is jeremy corbyn making some excuses. you wouldn't expect any other market to move particularly on a jeremy corbyn prognosis. but at least half of that big rally is because people were overweight in the dollar going into nonfarm payrolls and the was the slightly

ridiculous beneficiary. joe: i've been really enjoying the last few weeks. >> because we haven't been talking about brexit? joe: when is it going to start picking up again? >> halloween. we still have some time. unfortunately the political classes back home don't really have much time. if you are going to thrash out anything that isn't a very minor tweak of what we already have, given the huge number of parties that need to agree, they need to get going very quickly. it is certainly not going to happen until after the elections of the european parliament. is it too early to just call brexit a failure? >> yes. the number of different things i have called it over the last 2.5 years, failure would be one of the more polite ones, but it is

too early. we haven't even left the e.u. yet. that ifwant to make, is you look at sterling on a trade weighted basis, basically there's nothing that exciting about what happened today. starts,ce this chart the day of the referendum, the moment the coyote looks down and sees that he is standing on air -- what is interesting is how close a range it has actually been ever since then. this is quite an impressive move. the last few days, we are close to that invisible horizontal line which the pound cannot cross. my fellow citizens made the obviously brilliant decision to leave the european union. that i think is the operative point.

theas never remade any of extraordinary loss is made on referendum night. every trader is still apparently convinced that that markdown was necessary. caroline: what we are about to head towards is this bizarre e.u. election that you can politicians aren't going to be part of for any length of time. what will that demonstrate? >> it will probably demonstrate that the pro-leave camp remains better organized than the pro-remain, because nigel farage has the correct brand name, the brexit party. his old vehicle has been entered by some fairly unpleasant far right elements. nobody wants to vote for the conservatives including the conservatives. the chances are very strong that the protest party will win a very comfortable plurality.

have the change u.k. party, which is just about staying in the e.u., and the green party which is about staying in the e.u., and the lid dems, the traditional centrist party which are pro-european. if you want to make a protest vote to say, let's stay, that vote is going to be split three ways. i expect the fundamental truth that the anti-european forces in british politics are better organized than the pro-european forces remains intact. caroline: the saga continues. john, thank you for putting it in perspective. china's vice premier returns to washington for what could be a closing round of trade talks. joe: and i'll be watching disney and fox on wednesday. romaine: and the numbers for u.s. cpi come out on friday. caroline: that is all from "what'd you miss." romaine: bloomberg technology is

next in the u.s. joe: cap a great evening. ♪

emily: i'm emily chang in san francisco. this is "bloomberg technology." coming up in the next hour, eyes for amazon. warren buffett taking shares of the tech giant after underestimating it. -- your goal of omaha is changing his tune. overtaking apple in the global smartphone market.