the ceo of goldman sachs, david solomon.exclusive conversation with one team, that is bloomberg. you really want to know markets how -- know how markets play after the midterms, that man will have the answer. this is bloomberg. ♪ anna: good morning, everybody. a recap of u.s. midterm election results. in the house, democrats win control for the first time in 10 years. in the senate, democrats gain significant ground. markets make of the election? -- posing the question to the blackrock ceo. >> need a coin? >> i don't think the outcome is a big surprise. big setback.a the market is reassessing itself. we will be part of that we stabilize in process. thet was probably more shrugging of the shoulders. ceo for international fixed income -- some things to clear the decks with. when i look at a couple of different markets that start with high yields, you have the strongest back-to-back growth in a couple years, the fed moving, what does that do to high-yield? >> when you look at high-yield, it is a steel. there are high-yield bond

david solomon speaks out in an exclusiv

david solomon says the biggest risk is an overheating economy. david: i am david westin. the white house is having a good time of it this morning. sarah sanders saying she will have a press conference. president trump will have a news conference at 11:30. he already tweeted this out. the president feeling good about himself. alix: trade deals. let's go back to work. this will be business as usual for him. i will keep doing what i have been doing. david: there is nothing that would not cause president trump to say i will change my tact. see: the one thing we will is a free pricing of fiscal stimulus. that already reflected in the markets. i news conference from president trump today in washington at 11:30 from the east room. alix: let's look at markets. up.ty futures this follows a rally in europe. a weaker dollar story. dollar up. flatten herl yesterday. you can see that in the backend, yields lower by three basis points. a 30 year auction today. you saw a strong auction yesterday. all of that filtering through the midterms and the deficit going forward. crude moving on i

david solomon says the biggest risk is an overheating economy. david: i am david westin.his morning. sarah sanders saying she will have a press conference. president trump will have a news conference at 11:30. he already tweeted this out. the president feeling good about himself. alix: trade deals. let's go back to work. this will be business as usual for him.

there is only a limited amount of information david solomon can share.ou heard it in the excerpt of that interview, ongoing investigation, investigation underway. i did ask him directly if he could unequivocally assure us and his shareholders and his employees and his clients that neither he nor lloyd blankfein or anyone else who holds a senior position at goldman today was aware or suspicious at the very least of any illegality. he didn't address that directly. i would have liked him to address that directly, but it might have given us more context in which to understand this latest development, the knowledge that lloyd blankfein participated in that 2009 meeting. it is important to emphasize that meeting took place in 2009 because the bond deals that are ,t the center of this scandal at least the money raised in those bonds deals, it was diverted to other places, took place in 2012, 2013. anna: important to make that point because this goes back many years. a correspondent in hong kong earlier made a valid point there are few ceos who wouldn't take a m

we have been speaking with goldman sachs' ceo david solomon. midterms and of course his bank.anded in a place for the polls were kind of right. democrats took back the house. republicans are picking up a couple of seats in the senate. i think you are seeing a little bit of a shift in some of the governorships from what i saw earlier. from a market index vacation perspective, and even a historical context, not to unexpected. -- too unexpected. i am not a big believer this will have an impact on policy or action or washington or where we are for the next two years as it moved to the 2020 election. they run the house and the committees and it against a never-ending series of investigations with subpoena after subpoena and to think the trump administration and the trump family and even the republican party have been doing for the last few years that would probably slow down the business of government. i wonder if it is that for the economy. maybe that for the business climate. david: it goes back to where you started. balance can be good in government. erik: we like to believe tha

david solomon rejected that.y professionals work hard, he says, and suggested to the contrary. he made it sound as if he and a few other executives would be working hard to resolve the matter, hoped to tell staff that they should focus on their own business. and goldman, aside from this, has been quite good. taylor: really interesting last week, the morgan stanley banking analyst downgraded goldman to an equal, neutral rate in part of the uncertainty over regulation, more fees. what is the backlash in terms of regulation and any potential fees we could see? we should mention, the new york times did mention, their most recent -- their most recent part of ais, a criminal investigation. i don't think we have confirmed that. that would be a bigger deal. the morgan stanley report you are mentioning has some pretty frightening numbers. is analyst in question forecasting fines of $1.2 billion, returning $600 million in fees. the malaysian say they want some of the money back. guy: reputational damage? keith: there is st

we spoke to the new goldman chief executive, david solomon. the scandal. >> your client, your shareholders and your employees want to be certain that neither you nor any members of your team had any reason to suspect illegality or any breaches of compliance practices in connection with the account. can you offer assurances? david: we take him compliance and control at our firm seriously. we always have. we have been around and how we control the firm, the velocity and volume of transactions is of huge importance to us. francine: that was david solomon speaking to erik schatzker early this week. both solomon and his praetor sizer have said the scandal was the work of a few employees. -- his predecessor have said the scandal was the work of a few employees. us go live to kuala lumpur, where we are joined by our malaysia bureau chief. where are we on the investigation? is malaysia pushing to find out what happened? about more than 10 countries investigating right now. singapore, malaysia. is the change of government in malaysia, we have seen more

. >> goldman sachs ceo david solomon says he is personally outraged the bank is linked with scandal ina. he called the behavior of three implicated individuals reprehensible. goldman stocks tumbled on monday when malaysia demanded a full refund of all the fees it paid the bank for the deals. matchsticks -- matched its launch record. caringket carried off equipment to connect amateur radio users around the world. for a ration is about $28 billion. valuation is about $20 billion. 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. yvonne: thanks. at a summit. to port let's get over moresby. what is the scene? what is the top of the agenda? know, i am in port moresby. the focus.come the least developed of the 21 members. it is one of the poorest countries in the world, and the poorest among those nations. 30th ranked worldwide 135t in corruptionh perception index. the government bought some 40 .aseratis and three bentleys that raise the ire of local people living through poverty. the from minister saying

this is the david solomon goldman.t very few chances that a bank like this, only every 10 or 12 years, for some of the compass their stamp on it. he's been in the chair for about a month now saying to be more selective and the other question will be david solomon being very vocal about having a more diverse partnership. will they end up naming more women? this is the first time we have seen this. you also wonder if you saying we should take a breather , we may redirect our decisions about the market. alix: i'm not saying that there are like no partners, but that's also part of the story. the other thing to keep in mind is that a global partners -- a partnership is not what it was back in the day. this is a publicly traded firm. it's not the lavish partnership that maybe it was back in the day. milner, an investor in facebook and alibaba, speaking with emily chang, here's what he had to say about the next region that would be super hot or tech. >> looking at the previous 10 years, adding the u.s. and china , that would

if you look at this transition of where he is going with john againstn, never bet david solomon.really is making a lot of changes. the partnership is so legendary at goldman. look at a lot, but you other big senior moves, and he is making them very quickly. alix: not like he has a list or anything. david: make story for a lot of people in the business world, new ranking from bloomberg businessweek about the top business schools in the country. if it were law schools, i would be paying more attention. a lot of people pay attention to this. i have had a chance to dig into this over the last couple of days. 30 years in, they redid the entire methodology here. one of our top editors was essentially given a blank sheet how do wend said actually think about business education? we all know this. it is an investment, ultimately. you don't go to business school -- sort of want to find myself, figure out what i want to be. there is an opportunity cost and there is an actual cost. it is not a cheap degree. they look to compensation, learning, networking, and importantly, after partnership.

erik schatzker begin his exclusive interview with goldman byhs ceo david solomon asking what he thoughtresults. >> from a market perspective and then expectations perspective, even in historical context, it is not too unexpected. i am not a big believer this will have a big impact on policy or action or washington or where we are for the next two years. erik: what if the democrats begin never-ending series of investigations with subpoena after subpoena and two things that trump administration and perhaps the trump family and even the republican party have been doing for the past couple of years that would probably sort of the business of government? it makes you wonder if it would be bad for the economy and the business climate. is balanceould say can be good in government. when there is balance both sides have to work harder to get things done. what i would say is i don't think it would be an effective strategy for the democrats to go down that road. but if they do go down that road, i think that would be a missed opportunity. i would hope the path of the process forward from here is o

schatzker began his exclusive interview with the goldman sachs ceo david solomon by asking what he thoughtresults. ♪ >> i think from a market perspective and from an expectation perspective, even in historical context, not unexpected. here, look forward from i'm not a big believer that this will have a big impact on policy or action or washington or where we are in the next two years as we moved to the election. >> what if, as some people have said, the democrats, now that they have the house committees, they begin a never-ending series of investigations with subpoena into things that the trump administration and from family -- maybe even the republican party -- has been doing? that would probably slow down the business of government. it makes me wonder whether it would be bad for the economy. back -- i think balance can be good in government. both sidesis balance have to work harder to get things done. i would say is i don't think it would be an effective strategy for the democrats to go down that road, but if they do go down that road, i think that would be a missed opportunity. candidly

haslinda: the new chief executive of goldman sachs, david solomon, was another titan of finance who participatedne economy forum. he sat down with their transcript. erik: you know markets have been shaky the past several weeks. the fed seems committed to raising rates. it makes one wonder if there is nowhere to go but down from here or whether things can continue at this pace or perhaps faster. >> i think things can continue for a period of time, although, i would say we are later in the cycle. we are at the end of the cycle rather than the beginning. it does not take a rocket scientist to notice that. erik: people want to know how late. david i would say i think the : biggest risk -- and our u.s. economists have echoed this number -- i think the biggest risk right now is an overheating. the question is, can the fed, in the context of how it marches forward with monetary policy, can it continue to normalize in a way they strike the right balance and we have a softer landing? they may or may not. i am not a prognosticator. if you read our u.s. research, it says they think there is a good chance t

the fact that david solomon became the ceo of goldman sachs is all that by the end of the american peopleneed to know. i have plenty of recordings to remind me if i had to forget. why is it misrepresented when the books make it clear they would disagree as to how many livelies are in the book but ths at least one. i would say the fact that they have the power to stop that from happening and they didn't stop it from happening tells you everything that you need to know about the credibility of those exams if you will. and the third question asked >> your question is a good one should we make it a law of the land clicks yes. make them especially executives putting their money first. i think that will begin to change the behavior. i know this is the last question. and i promise to somebody that i would comment on this so i will go back to the question. this morning he advocated for more supervision, and i could not agree more. it was nice to wake up this morning to that level of support for what i'm advocating. and interestingly enough to be the supervisor and have more supervision power and

tomorrow, david solomon with goldman sachs.the new economy forum. 7:00 london hour, 2:00 a.m. in new york. ♪ francine: bloomberg's new economy forum began in singapore today with trade tensions taking focus. world today faces problems that require cooperation between china and the u.s.. is our firm belief that both china and the u.s. would gain from greater cooperation and lose from confrontation. the challenges to maintain a fundamentally cooperative and it is an approach produced by the changing technology. here and talk, fedex is moving millions and millions of shipments around the world. referendumhing a every day on the economy. it is not something we read about. 's views on trade are rare. consensus that markets are what should decide the economic activity and the rest is a negotiation. >> china has to do more than it is in taking the initiative and exercising that responsibility in stepping up to the plate helping everyone else lead a reform process in the wto. if we do not see that, you are going to see more trumpian rh

promoting fewer employees to partner this year as new ceo david solomon concentrates on the bank -- orkers -- banks core moneymakers. six staff are being elevated. come fromtwo thirds banking with asset management bearing the decline in the new club. global news 24 hours a day, on-air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. anna: thank you, desley humphrey joining us with the latest headline. the u.k. grocery reported first-half numbers, adjusted pretax beat estimates. the market says it is engaging constructively with antitrust regulators on approval for the asset merger. we are joined for his first interview of the day. thank you for coming to talk to us. i want to talk about your conversations with the cna on the approval. hqt is the thinking at the about the number of stores he will have to unload to get this deal done? that: we are in part of investigation with the cna looking at the details of the proposed transaction. they have issued a timetable, noting additional findings in january. we wouldn't want to second-guess

midterms, we get the perspective from the cochairman, the ceo of goldman sachs david solomon.an for wall street? and the former u.s. treasury secretary. he's got a lot of supply coming to this market this week. really interesting week for the bond market. what is trending in the bloomberg universe? let me take you inside the tictoc world. we have a new feed built for twitter. india has one of the most polluted cities and the cost is not only felt on its citizens, the pollution is costing it 9% gdp. bloomberg finance ministers gather in brussels today to discuss the sendoff with the eu. and their place, hong kong increases interest rates for the first time in 12 years. experts see signs of a housing market downturn. second-place, steve eisman is shorting two u.k. banks over a no brexit deal. blastslace, president xi donald trump's trade practices. he did not name the trade war's. softbank second quarter, profits topped estimates. solid performance from sprint corporation. joining us from tokyo is peter, the managing editor. it's amazing when you look at this huge headline, we w

hear from the cochairman of the carlyle group, david rubenstein, and the ceo of goldman sachs, david solomonhe former u.s. secretary, hank paulson. fascinating voices to tune in for. let's get back to the market stories. and annmarie hordern has your movers. annmarie: let's start with siemens health, of more than 4% after they reported fourth-quarter earnings. they bet on an increase in sales for their new diagnostic systems, bernstein's putting out a note saying while they were 1% below consensus, they did see organic growth beat consensus. that's why we are seeing the stock jump. roche also up. the ceo was talking to us and saying it expects to maintain is leading position in cancer drugs and in the next few years, a bunch of generics will be coming into the market. he says they will maintain position. finally, st micro down .7%. that stock under a bit of pressure this morning. anna: thank you very much. let's talk u.s. politics. it seems timely because americans had to the ballot box for elections. democrats on track to win back control of the house of representatives, but the market edge

we spoke last week to david solomon of goldman sachs.e biggest worry for him is overheating in the u.s. economy. is that a big worry for you yet >> it is a concern. running at the height his promise to decade, definitely i think inflation is beginning to slowly move up. i think of great concern for me is not overheating, it is the budget deficit. there's a lot of -- the level of unemployment is 3.7%. the extent of the budget deficit, we saw a slowdown, that budget deficit is going to move up rapidly. anna: i will jump in. we are having communication difficulties. talking about the budget deficit, i was just talking about how breaking even for the united states is coming down with the oil price. we talked about higher bond yields and inflation expectations. the oil price gets everybody thinking. what impact will the oil price have on inflation? >> in the scope of things i do not think a massive fall in the oil price. oil and commodity prices remain steady throughout 2019. i'm not concerned about an immediate reduction. think it willi tren

you heard david solomon talk about his outrage at the behavior of these few individuals.iduals would say this was common practice to go around compliance. what people at, goldman specifically in asia did you hide things from clients or are these one-off incidents. joe: goldman has really been getting hit with the stock off 17%. as part of the anxiety here the unquantifiable risk? thing, is just the 1mdb but when it gets to these questions of overall cultural questions, whether going around compliance is something more frequently seen, it is really hard to put a number on what this could mean for the banks. michael: i think that is a big piece of it. some analysts have try to put a number on this. goldman and their regulatory filing warned people there could be significant fines, but the question is, that reputational risk and also the aisle on affect -- pile on affect. do other regulators get involved? that is the fear from investors is that this becomes one thing after another and drags on for more than a year. as goldman loses, does anyone win or is anyone picking up mo

. >> it david solomon and diamond have said the biggest -- >> and if you leave a company, they find out and burro w in tonight on "mad" i have take 2, the stock reversed, that may be ridiculous then i figured i'd nail down ed breen. >> awesome going to do pullups? w strauss? >> no, but i'll show my six pack versus him. >> you don't want the rating, that's fine. but that would get eyeballs. >> set up a whole gym. >> we have to go. >> okay. >>> when we come back, veteran strategist david rosenberg on stleioraets after the po-ectn lly. dow is down 3. when my hot water heater failed, she was pregnant, in-laws were coming, a little bit of water, it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they were on it. it was unbelievable. having insurance is something everyone needs, but having usaa- now that's a privilege. we're the baker's and we're usaa members for life. usaa. get your insurance quote today. >>> welcome back to equi"squawkn the street." i'm carl quintinilla w

we will be speaking to david solomon from goldman sachs at 11 a.m. to buy time. -- dubai time.ak to the adidas ceo. this is bloomberg. ♪ show me movies a grinch would love. [ bark ] nu uh, i'm picking the movie tonight. [ whimpers ] be sad, i enjoy it. show me grinchy movies. oh, goody. [ whimpers ] mmm, fine! show me movies max would like. see the grinch in theaters by saying... "get grinch tickets" into your xfinity x1 voice remote. [ laughing ] uh oh. something in my throat. i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. manus: this is bloomberg daybreak: middle east. to win aats i said house from the first time in eight years and the senate stays republican. former treasury secretary warns the world could face an economic turn if the u.s. and china failed to resolve the strategic differences. a rush out of riyadh. scandaldle with -- the with $1.

solomon did. as the tradition that he was from the house of david. s right joseph and mary head to be in bethlehem for this. i don't think anyone called into question that lineage. solomon story they've such a rich story in the bible. he was saying that he would like me to write more about solomon. they came to see if solomon was all that he was cracked up to be. they believed that their king was the son of king solomon. there is definitely another novel to be written there. it really goes bad. shortly after solomon. t i'm not sure even i want to go into that. there really was i dispersed and tragic events. i think we will start with solomon. is that a real picture of martha's vineyard. the figure is at is trying to convey a little bit of what caleb might have looked like in the first encounter. it's as close as we could get. the eastern native american hunting attire but the photograph is a local photographer. i knew him and i did not know what photo they were going to choose s but i was very sure that that was the one that the publisher selected tha

david: if we can. of pimco andl jeffrey solomon of cowen, thank you for being with us.exxon mobil's ceo exclusively with bloomberg in singapore on dealing with international pressures. we find overtimes that those tensions, you see things move up and down across the has alwaysstrategy been to have a fairly diversified portfolio and basically manage the business for the long term. we pay a lot of attention to that. we are engaged with the opportunities we see in each country and make sure we are focused on the fundamental to manage through the ups and downs. we are meeting basic requirements in the countries where they need products we supply to make their life better. reporter: do you not worry about the potential downside? i think about the joint venture you announced a few months ago at the lng terminal in southern china. things changed in the months since that agreement was announced. into: i think when we went have that conversation with the chinese, we had a pretty good understanding of where things are at. we are consistent with where we are at today. we think the

david solomonceo says he is personally outraged by involvement in a multibillion-dollar fraud scandal. solomonose responsible is inconsistent with the firm's's work and integrity. malaysia's finance minister says known as oneefund, m.v.p.. that news sent goldman shares down the most in seven years. $600 million. that is your bloomberg business flash. rising, tesla,s the 2700 level, and up we went. tech leading the way. those in fx,t see especially g10 currencies. continues to stabilize here at 56 and pge is the big loser once again. this is bloomberg. ♪ mark: i'm mark crumpton with bloomberg's word news. theresa may said if politicians reject her brexit deal, it will set the country on what she calls a path of deep and great uncertainty. an increasing number of lawmakers in her conservative party, to cabinet members have resigned in 24 hours since the government backed the draft deal announced tuesday. >> i'm sorry that have chosen to leave the government and i thank them for their service, but i believe with every fiber of my being that the course i set out is the right one for our country an

david in the middle and casper on the right. look at them a moment and see the difference in their faces, the solomon us of their cheeks, their narrowrames. they had lost a quarter of their weight while in camp. niemeyer had instituted essentially a starvation diet at a certain point. he was rather cruel to them at every point. he often walked the yard and shot his pistol at the windows if you were looking. they were the greatest of men throughout the process so on the night of their escape they were week to begin with. david gray decided he needed a foolproof plan and probably came up with the most ingenious one that i ever heard of in prison escape. he who spoke german fluently decided he would impersonate an orderly from an insane asylum. his assistant would be cecil blaine. there is his forged id identifying him as carl holtzman, assistant orderly from an insane asylum near the dutch border. casper forecaster would be acting and an insane asylum patient who is on the run and david when carl holtzman recaptured them and were bringing him home. they got out of camp, start moving towards one of the first villages they come 2, they

david hale says america will continue to push for ounces but also values its relationship with saudi arabia. i was with secretary pompei when he traveled to saudi arabia to hear directly from king solomon and the crown prince how saudi arabia would handle the investigation of custodies murder and we ask that the saudi leadership uncover the facts and hold accountable those responsible so far we've seen some positive steps clearly more needs to be done including identifying a number of individuals responsible we are taking strong action in response including revoking visas and reviewing the pick a place ability of sanctions under the global new can it ski act the same time our shared strategic interests with saudi arabia remain and remain strong and the secretary pompei o said we continue to view as achievable the twin imperatives of protecting america and hold accountable those responsible for the killing of mr. author two weeks of turmoil there's been another twist in sri lanka's political power struggle president zuma senate has dissolved parliament clearing the way for a snap election two years ahead of schedule problems began on october the twenty sixth when the president followed

affairs david hale says america will continue to push but also values its relationship with saudi arabia. i was respected terry pompei when he traveled to saudi arabia to hear directly from king solomon and the crown prince how saudi arabia would handle the investigation of custodies murder and we ask that the saudi leadership uncover the facts and hold accountable those responsible so far we've seen some positive steps clearly more needs to be done including identifying a number of individuals responsible we are taking strong action in response including revoking visas and reviewing the a pick up like ability of sanctions under the global mean the ski act the same time our shared strategic interests with saudi arabia remain and remain strong and the secretary pompei o said we continue to view as achievable the twin imperatives of protecting america and hold accountable those responsible for the killing of mr. plenty more ahead here on the news out including. and i'm nicholas hawk in the diamond rich region of karnow in central african republic despite the escalating violence and a half and then the in people this placed out of this country find out next why some are returning home.