i'm david westin.sident trump came into office with a broad agenda that included more than just tax redoing our health system. what is left of those items? terry haines of isi is still with us to explain. let's take infrastructure for a moment, because that was supposed to be the subject of the news conference. where is infrastructure? busy day? -- is it dead? terry: infrastructure is just nowhere, and it is the biggest surprise of the past six months from a policy cents. i look at yesterday's press conference as a half-measure, really, to cover that up. the other interesting thing about this is that there is only about $300 billion of direct federal spending available, and most of that would come from repatriation and tax reform. the one interesting detail about the republican budget for next year is that money appears to be being pushed back into tax reform instead of going to pay for infrastructure. where is the bipartisanship or even the plan to move something major forward? is not here so far. in

i am david westin.heater owners feeling the crunch. amc is not immune and taking actions to boost its bottom line. .ere is emma chandra what are we sitting and why? emma: u.s. box office returns down 3.4% compared to last year for all theater owners. it is the u.s.'s biggest theater owner with over 600 theaters and 8000 screens. they are feeling the squeeze. they're having a dismal year. stock is down 58%. much more than its contemporaries. had an ugly second quarter. a net loss of 117 million dollars and they see that weakness continue into the third quarter. they say they will offload $400 million, which analysts are pleased to hear. they have a stake in the company that made spotlight, which won and oscar a few years ago. there is a long way to go to get to the $400 million. another big cloud as ownership. is based outowner of china. china is cutting down on lending. strategy, which was acquisition borrowing to buy things, is not going to continue. amc, howing back to much of it is bad movies and how

we have paul sweeney, director of north america research for bloomberg intelligence and david westin, cohost of bloomberg daybreak: americas. the number one question for bob iger when it comes to this new announcement on streaming? this a recognition that the business they been in for all these years is going away? not gone. it will take a while. is this really saying 5, 10 years down the road we are going to be accessing all the video content on our smart owns and smart tv's a not going through the traditional means. >> you look at netflix, it's the greatest disruption to the media business in my 30 years of covering the sector and it affected all parts of the media sector. we are starting to see big media companies thinking about how do i monetize my content in an over-the-top world. disney was arguably the most important -- valuable content in the world, that is espn conten., perhaps even more pointedly, is this the end of the bundle? his basic cable over? it rained supreme for so long, so many people have made some much money from it as a practical matter. does this mean we won't

from down the street in manhattan is david westin. david: no steak yet. good to join you from here in manhattan. we are here for the annual lunch that were buffett auctions off. warren, thank you for being here. let's start with this charity. why was this so important to your late wife, susan? individual, cecil williams, who had a markable interest in helping those who society had given up on. so, she worked with him in volunteering, and she was telling me about him. i was a little suspicious, and then i went and saw the operation myself. i got to know him and really watch him transform the lives of thousands and thousands of people. i think she got the idea for thenoption -- auction, and ebay has been terrific in broadening the bidding office. so, it has been terrific with some great people for a great cause. david: you are in the news again, because you just executed on those warrants for bank of america. it was a great deal for you that you made some great dividends. how does it fit into your overall investment philosophy? >> the dividends we will get

david westin will be joining us a little bit later to interview ralph schlosstein. off inery much risk global markets. futures are negative. .6% on the s&p 500. the euro stronger. trading near a january 2015 hi. yields printed new lows for 2017. the down four basis points. alix: take a look at what's happening with bones. -- bunds. catching the safe haven bid. down by .6%. i find it ironic that the missile was fired over japan if the yen is the safe haven currency of note. gold up by .8%. the highest since the election of last year and the vix jumped by about 20%. the good safe haven move happening all across markets. we are joined by stephen engle from tokyo and on the phone is .aniel tenenbaum he provides regulatory crisis management support to global financial institutions. you're on the ground. i want to hear what's happening with you first. what has happened in the last few hours? has convened his second emergency national security council gathering with his ministers of defense. to discuss their options. this after shinzo abe had a 40 minute conversation over

disney ceo bob iger joining us later this hour with david westin.s set to plan on unloading its subprime car leasing program. wholly-owneding, a subsidiary, shall be consolidated into a smaller unit .ithin uber the 40,000 car fleet has an estimated loss of $9,000 per vehicle. the board decided to wind down the program last month after realizing the costs were much higher than originally thought. coming up, the manifesto that has created an uproar in silicon valley. what happened to the engineer who wrote a memo criticizing google's diversity efforts, and why the story is far from over. this is bloomberg. ♪ has fired the man a engineer who was at the center of an uproar in silicon valley. this, after he authored an internal 10 page memo asserting there are biological causes behind gender inequality in the tech industry. the author of the memo, says he's exploring all possible remedies. a decision by google has caused an uproar among social media. critics say it is censorship and encourages employees to file complaints. said to stopn teaching girls th

don't miss our coanchor, david westin interviewing warren buffett, later tonight.ing bloomberg tv. ♪ so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. jonathan: hurricane harvey makes landfall in southeastern louisiana. the oil market braces for even more disruption. the war of words over north korea continues. risk aversion fades. investor sentiment -- sentiment gains a stronger footing. equities recover in europe and asia. good morning, this is bloomberg daybreak. i am jonathan ferro alongside alix steel. the scores as follows. futures on the board dead flat is the story. in europe, we are raced some of the losses. euro-dollar a racist some of the gains from yesterday. we are down 4/

david westin spoke with berkshire hathaway chairman ceo, warren buffett. mr.: the dividend we will get now, the bank has increased their common stock dividend. -- we will bet getting 30 million dollars plus -- $30 million plus more. this exceeded the dividend on the preferred, we exercise our -- it was fairly automatic. but is this -- david: is this consistent with your philosophy in finding a long amount of time, philosophy you believe in iago -- in? mr. buffett: i have always liked bank of america. i have believed in it ever since i read their letter 85 years ago -- -- years ago. they got in trouble, made acquisitions that cause a lot of trouble, and that is like a great athlete eating in a hospital for an accident. they are out of action for a little while, but you have to get them back in shape. i came in at a time when people were particularly critical of the institution and, to some extent, the management. i believe they were wrong. so i actually got the idea in ie bathtub in 2011, and when went to the office, i called brian, and met with the ceo. we mad

let's get to david westin in new york. reporter: thank you so much. of the hour, bob iger, the chairman and ceo of disney joining us. it is a major strategic move, as you have said, for the walt disney company. going over the top. not just for espn but disney and pixar. my question is, why now? why not a year ago or year from now? >> we have seen a pretty dramatic shift in the way media is consumed. it is becoming more and more apt-based. i have seen it with my kids and grandkids. a lot of the app-based gone from ahas direct to consumer services. we have the great brands to be able to reach consumers directly. there is great passion for them. you need the technology to do that. it is no easy task. gone from a direct to consumer services. we have theparticularly when ito streaming live sports. we have consumption at a very high level and it is all at once. the company aof year ago. we have accelerated our purchasing control to move into the space at a faster pace and rate then we had initially anticipated. because of the opportunity we see in the marke

i am david westin. trump took things up a notch with north korea, and he warned that if the president did not stop his threats, there would be consequences. president trump: north korea best not make any more threats to the united states. they will be met with fire and fury like the world has never seen. threatening, very beyond a normal statement. david: all this in the wake of new sanctions imposed by the united nations on trade with north korea. the chief economist for bloomberg intelligence has taken a look and how hard the sanctions could get. welcome, good to have you. give us a sense, how bad could this hurt the north korean economy? >> it could hurt the north korean economy more than the u.n. suggested. right after it were voted on, there was a report that it could take $1 billion of north korea's $3 billion in exports. and you look at: experts to to china,oal exports it is $1 billion. china in march stopped importing north korean coal. so as of april, north korea's exports are already down 40%.

i'm david westin. gura is off today. it's good to the markets. small gains for the major averages in the u.s. the threeoting that major averages are near session lows off the highs and a stream of headlines over the last half hour. president trump tweeted saying that both the manufacturing council and the advisory council are disbanded. we see a leg lower for the s&p 500 over the last half hour. up a little bit less than .2%. we do still have gains. this is not a panic. david at main street capital saying something very interesting after that controversial press conference yesterday. are releasing a disconnect on the part of investors between andident trump's politics the equity markets. investors are instead focusing on the earnings outlook. let's take a look at the 10 year yield. down about three basis points. uncertainty entering the picture on these headlines. telling us that investors are going toward buying bonds. gold had been down on the day but now at session highs up about .5%. a haven play h

i'm david westin.softening inflation data yesterday. >> we were telling a story that inflation was gradually going to return to target, and on this measure you can see the gradual return to target. it seemed to be going according to plan until we got to this year and this year this number has fallen way off, at least on the scale that you have here. this number has fallen quite a ways off. upinflation has been coming short, relative to our 2% target. that actually matters. you think 1.5 is not a big deal, it actually matters that investors believe the fed can achieve its goals. david: still with us are and shepardson and krishna memani here in the studio in new york. i want to talk about you are concerned about the fed moving fast in the markets but that it might have negative effects. did the soft and laois and data give you -- soft inflation data give you some solace? ian: in the short-term, yes. there is no question that the inflation numbers are killing talk of a september rate hike and the next ne

i am jonathan ferro alongside david westin and alix steel. after two weeks of losses on the s&p 500, some stability. futures go nowhere. action.uted price euro-dollar at 1.1758. yields lower by a mere basis point, 2.19 on the u.s. 10-year. alix: the real action in the markets has to come at the commodity market. nickel up by 2%, copper up i 1% at a three-year high. goldix calm on the day and as well. we have base metal seeing some strength today. easternt 9:00 p.m. time, president trump addresses the nation laying out plans for afghanistan and he will hold a rally in arizona tomorrow, the first visit to the state since he was elected. whole foods will hold a meeting takeovere the acquisition by amazon and thursday, the kansas city fed hosts the annual jackson hole economic symposium. janet yellen and mario draghi are on the schedule for friday. the big event. lateran: the big event this week as the president heads back to washington, d.c., investors are left guessing what the latest shakeup in the white house means for policy. after the news

coming up tomorrow on bloomberg markets, david westin will interview warren buffett.haway chairman and ceo. that's at 11:00 eastern and as always go to tv for all of our interviews. is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. david: from bloomberg world headquarters in new york, i'm david gura. welcome to bloomberg markets: balance of power. here are the top stories we are watching at this hour. all options are on the table. that's president trump's response to north korea and his message to the world after the rogue regime fires an unidentified ballistic missile over japan. we may hear from the president later this afternoon. he and his wife are in texas assessing the damage from tropical storm harvey and monitoring the response. rain

david westin is here with the man himself so he can say it in the own words. vid: we are joined by former president of harvard university larry summers. a beautiful spot on cape cod. thank you secretary summers for being here. when we read it is yesterday, i read it while i was on the air. powerful it isw a you are calling for all the ceos to step down. let me ask you why you wrote it and do you believe in your heart of hearts that if all the ceos pulled off the councils today, it would affect what president trump things are the positions he takes? know ifmmers: i do not it would affect what he things but it is a president more than in other respects people who have been successful in the business world. enhe were to be deserted masse because they decided collectively to send a strong signal, i cannot believe he would fail to hear that signal. and i think there certainly a drastic need for an adjustment where the president of united states is equating civil rights activists with white supremacists. i think it would be constructive for the presidency and much mo

david westin spoke with the berkshire chairman and ceo warren buffett about his investment in ibm. >> lots of mistakes. that is part of the game. somebody says, you never made a mistake, check them out. that was a fairly large commitment. what is really fascinating to me is what amazon did with the cloud. here is a company that you don't even think of as being in that business six or seven years ago, and jeff bezos has really taken something you would not have thought they would be doing, and from a standing start -- he even said on charlie rose he was amazed at how much runway he was given -- but here are very smart people in the tech industry around him, not just ibm but microsoft, google, you name it. they all let him have a big lead. you don't want to let a smart fellow have a big lead. emily: bloomberg's david westin there speaking with berkshire hathaway chairman and ceo, the one and only warren buffett. coming up, after a big push for diversity in tax this year, where does it stand for those just entering the field? next. this is bloomberg. ♪ emily: there has been impressive gr

i am david westin.st month and today, we learned about what they talked about doing when there meeting minutes are released at 2:00 p.m. still with us are alan rechtschaffen and dana peterson. how important are these minutes? and of the two, inflation data or the balance sheet, which is more important? today's minutes will be very important. we expect markets to react strongly of any mention on thoughts of inflation or currency, and most importantly, the balance sheet. i think that in terms of inflation, they will be focused on that. we have had repeated mrs., certainly lost friday, on the headline and core inflation. the fed is banking on the fact that we will have transitory factors that will go away, and once it happens, we will achieve the 2% target, but how long do we keep missing before fomc members worry? david: you up with the fed, how nervous are they getting? i do not know about nervous. the data is right. it is something else, and i think that what you have is a situation where the federal re

i'm david westin. this morning showing 2.5% year-over-year wage growth, the question remains robust employment numbers, we are not seeing numbers move higher and faster. alan krueger is with us and he is just written a paper on non-poaching agreements in the food industry. take us through this. i have a newue and study which we just presented at the national bureau of economic research and what we found is that a majority of franchise chains from fast food , -- outside of fast food as well if you look at h&r block or the companies that will change your oil for you. 60% of these chains have no poaching agreements. if you own a burger king franchise you cannot higher a worker away from another burger king restaurant. david: and they might be paying them more money which would be wage growth. >> this is restricting competition in the labor market. ,t is part of a broader trend noncompete agreements where employees are required to sign agreements that they will not go work for a competitor did this is behi

david westin's away today. the open about 30 minutes away.ive by 1 percent. it was a soft august, burning up going into the close. the data in the united states may be a cause for concern. taking away some of the dollar strength we saw earlier in the session. dollar strength is still the story in the g10 space today. no big moves. the real story -- yields near the bottom of the range for 2017 on treasuries. alix: look at individual equities. some earnings are trickling out. campbell soup misses on the outlook. expects a negative sales trend to continue. the ceo citing challenging environment for packaged foods. by 4%. same-store sales were up by 2.6%. they get a lot of revenues from food, soda, and candies. if you are drinking coke, you are not buying noodle soup. gross margins did fall by half a percent on higher store manager pay. they did see a rise in inventory level by about 6%. they have like a thousand stores in texas. glencore had a tremendous month. a 9% rally for the month of august. nickel,think -- zinc, copper, iron, seeing this r

bloomberg's david westin sat down with c.e.o. bob i'ller and discussed the stream willing plans, plus the outlook for the company as a whole. >> we're seeing a shift in the way that people are consuming media. it is becoming more app-based. a lot of app-based consumption is done with direct to consumer ervices. you need the technology to do this as well, and that is no easy task. it is not simple. especially when it comes to streaming live sports, we have consumption at a large level, and it is done all at once. so, we have accelerated our purchase of controls that we can move into this space at a faster pace and a faster rate than we initially anticipated, because we see the opportunity in the marketplace. the brands, the marketplace, and the consumer trends. >> you really do focus on the consumer-to-consumer experience. more specifically, who was the target audience for these ervices? >> you are looking at the sports fan on the support side and with usb and as well. espn is one of the most popular sports programming out there.

david westin has a conversation with warren buffett.francine: this is "bloomberg surveillance," with tom and francie. here is the eurozone. mario draghi may be forced to show his hand after his reticence at jackson hole. analysts predict there is a high draghi's -- let's mark gilbert and still with us is peter schaffrik. thank you so much for sticking around and coming on. jackson hole, the question was beforehand if mario draghi was going to -- is that cheap? >> go back a decade. he talked about brutal moves, unprecedented for central bankers. another 8%.n moves i'm not sure that intervention will do much, because as the ecb -- in the reflects eurozone. it is not a currency driven outlier, it is a stone facts. -- it is based on facts. relative value basis you would expect the euro to be rising. peter, you argued that the euro is not high, all the others are weak. peter: yes. we run a model where we gain where we gauge the intrinsic strength of the euro. the u.s.ticularly dollar weakening, sterling is a big component and then there is t

i'm david westin. rrorist attacks in spain and how they we areglobal markets, joined by the adjunct senior fellow at the council of foreign relations. welcome to the program. >> thank you. david: you're an expert in counterterrorism efforts. you spent time in europe and spain. , can thewe learn spanish government and other governments learn from what spain tried to do to prevent this and what didn't work? >> you saw a quick and effective reaction from the authorities to the attacks that happened in barcelona and in cambrils yesterday. there is a larger question here. -- europevernments has had attacks in the last year, there is been an increase in interest in soft targets and using everyday items like a car to evoke great harm and destruction. the question becomes, are we creating a hostile environment for the ideology of groups like isis? the reaction on the law enforcement side and by police has been quick, there has been a slower reaction in our ability to stop recruitment from happening. that is whe

david westin away today .set up for the market action this monday morning and week ahead, futures little bit firmer, up almost .1% after a solid week of gain. theureo dead flat against the dollar. did kiss a high we have not seen since january, 2015. in the treasury market today, bills and notes, did kiss a $13 worth coming into the market. alix if we made it $131.6, would it have made a difference? alix: i doubt it. jonathan: it gives you an idea how ridiculous the conversation s $132 today and he wants an extra 1.6. alix: to pay off the interest for -- look at the empact on hurricane harvoin the markets. here's what i'm looking at. gatt lean futures up 5%. at one point it had its biggest rally ever. that contract sitting at a two-year hy. cotton getting a pofment texas is the largest u.s. cotton producer. the last two are the spreads you want to pay attention . to the first of the crack spread, oil prices versus product prices. that's up 15%. the higher it goes the tighter the product market could get. the l

i'm david westin.ay spend much of every day following >> going on in the white house, but if you listen to corporate earnings calls, is this is much more interested in what jeff bezos is doing than what president trump is tweeting about. in the last 90 days of earnings calls, amazon was mentioned 635 times. donald trump -- he was mentioned 162 times. here to give us a sense of what investors are really concerned about, particular high net worth individuals, we are joined by ida lou. good to have you here. ida: it is great to be here as well. david: you deal with these very high net worth individuals and their families. what are they saying about their concerns when it comes to investments? ida: clients are always looking for yields, particularly in a very low interest rate environment, so we are seeing attractive opportunities in the municipal space, where you can get tax-equivalent yields upwards of 4% on intermediate single-a maa credit. -- and double a credit. you can get six to 7% and we still expe

i am david westin.e underway in washington. -- spoke yesterday on what the talks could mean for his country. >> mexico believes that nafta has been a strong success for all parties, but we also agreed there is room to make this agreement more successful. pablo still with us is goldberg of blackrock. watching the statements coming out of the respective parties yesterday, it felt of the united states was saying we have to have a really big change -- having around the edges. canada and mexico was saying we don't want anything fundamental. pablo: if we go back to what was said before about china, it applies to nafta as well. think about this number -- every vehicle that mexico exports to all the countries mexico has an agreement with the u.s. does not -- all of these vehicles go with a zero charge to another country has 40% in the u.s.. wages in the auto sector in mexico are five and change, where the u.s. is 23 and change. is a very goodp partnership for the u.s.. posturing, and they will go technically to

david: this is bloomberg, i am david westin. delivers states, making it the second-largest. southern announced its earnings earlier, posting its biggest loss and a quarter century. joining us from atlanta to talk about the earnings and the plans going forward is the ceo, tom fanning. as i read it across the bloomberg, you actually beat on revenue and profitability in your basic operations but you had to take a write-down on the clean coal operation, is that what happened? tom: that is exactly right. the base business is performing wonderfully well. charge we took was associated with a project conceived in 2009. we committed to build a clean coal facility that would have a carbon footprint equal to or less than natural gas. we fulfilled that commitment, built the plant, but in the meantime natural gas prices fell. at the time we started building the plant natural gas prices were $10 per million btu and now they are around three dollars. and ourult, the project regulator issued some guidance that said they would not allow recovery

tom: one of the issues, david westin, the dialogue has shifted as well. on where the american economy is. david: you cannot get it without wage growth, so how focus is the president on getting the wages up? tom: i also want to know that mr. gross will join us at 8:30 a.m. we will do that worldwide on television and radio as well. how about a single best chart? i saw this recently. there is the chart. this is a gb chart. green, wenches, morning in america had another time. the president wants to be up at 3% gdp. th -- "e tween crowd incredible -- eve tweet -- "west virginia was incredible a night. crowds and it does it is a more beyond, g-v every percent, wow!" guy: globalization get to 3% right now? the heat understanding how we get there is to look at what has been driving to economic growth in the cycle, and that has been consumer spending. the point david westin made is absolutely correct -- if we are going to get to 3% gdp growth, we need to see a pickup in consumer spending especially, that is going to be driven by wage and salary income, which has a

our david westin could always crowbar information out of mr.dea -- theiger on the idea of people who consumed this. here is bob iger. seen ar: we have dramatic shift in the way media is consumed and more more apple-based as it relates to your 15 year old son and i see it with my kids and grandkids. a lot of the consumption is direct consumer services. tom: looking at the idea that content is king or maybe distribution is king. this is a huge deal. perspective, paul sweeney for bloomberg intelligence. this is a seismic announcement, why is that? paul: bob iger is recognizing he has to go direct consumer and we of theen that netflixes world, the greatest disruption and the media world in the last 30 years and he knows he has to do that. the challenge for bob iger is they make so much money with the current distribution with comcast, it is hard for them to win themselves off and pivot. it is something he has to do and they made a bold statement. tom: we will talk to michael and brian. the first thing i talked about does i thought about is the 15-y

i'm alix steel alongside david westin. jonathan ferro is off today. david: welcome back.py summer tuesday. s&p futures across the board up. a little bit of selling going into the 10 year yield bond market. we are having big auctions this week. you have yields up by one basis point and crude getting a nice at the highestum level since 2014. talk about some china strength. david:

coming up is bloomberg daybreak with david westin and alex still cared -- and alix steel. t this means. we have mark kimmitt, a retired brigadier general. he was responsible during the height of the research and served in senior positions at the state department. share that, we will with you on radio. tom: thank you, david westin. we look forward hearing from general kimmitt on radio. now, a brief conversation on the hedge fund manager ray dalio that describes his contribution to the discussion around finance, the theories of finance. newsan important bloomberg article on some of the theories and beliefs of mr. dalio, including radical transparency. he is the king of everything out there. there are no closed doors in bridgewater, are there? francine: absolutely. it is been described as a brutal culture, but it is meritocratic. he lives by principles not to please everybody and not that too much on anything. tom: critics have said that mr. dalio has been off on his theories. i would say after many conversations with mr. dalio both informally and informally, there is a kernel

this is bloomberg. ♪ david: i am david westin. about to go to the bond market the finance the acquisition of whole foods. the bonds with the longest could yield as low as 1.6% above treasuries. this is private at the present time. there is a back drop of new corporate issuances this year. we cover credit research. still with us is mike bryan. what do we know about this on deal. that and thelot of rains are going to be attractive. is relativelyket robust. between where rates are overall, we are looking at attractive financing. we will see where it comes. it looks like we will have something in the front and. end is veryback attractive for 30 or 40 years. that's pretty compelling. david: can you put this in a broader historical context? how does this fit into a larger historic context in terms of what the spread is for this kind of money? mike: we talked about the broader market, we are not at we arec lows are it pretty close when you look at the leverage the corporate marketplace has these days. ats is something we look near histor

i'm david westin.sses fellow policymakers in jackson hole, wyoming. the question is what she will say and what it will mean for investors. sonders is still with us. one of the thing supporting the stock market is a great deal of liquidity around the world. that generally perceived the fed and the ecb and maybe the boj should start withdrawing some of that liquidity. to what extent will that have direct effects that we can predict because we have never been in this position before. predicting hask always been a difficult exercise and i would not attempt to do this when we start this process of quantitative tightening because to your point we have not done this before. befores never been tried as an experiment and this is uncharted territory. that said, the fed clearly at this stage is taking a methodical approach an initial phase of starting to shrink the balance sheet is somewhat limited. the benign scenario is that it happens over and extended time that is not necessarily disruptive markets. that may

i am david westin in new york.ted to have my coanchor, caroline hyde, joining me from london. caroline: let's you look at the markets today. futures coming off the recent up. near record highs. the euro shrugging off the production data. the first slowdown in six months. up about .25%. numbers, yields creeping higher. going up towards the u.s. bond, falling. we have three years, 10 years and 30 years coming. about opectalking meeting with other allies to see how they can send the supply got. david: time for the morning brief. a look ahead at this week. opec and non-opec leaders will be meeting in abu dhabi. they will be talking about production cut. earnings. for disney after the close on tuesday. -- jacob zumas faces a vote of confidence and then the cpi data. markets largely don't believe -- as you can see from this chart, the breakevens are down this year, showing inflation of less than one point percent. the two of the biggest players disagree. blackrock think we will see inflation of 2% or better in the next f

francine: that was warren buffett speaking to bloomberg's david westin.still with us, stephen isaacs and vasileios gkionakis. stephen, it seems that the old-school correlations don't really work anymore. what is going on and what does it mean for your investment strategy? impressed with warren buffett. he knows what is going on. his comment on interest rates was fascinating. on ae end of the day, yes, long-term view, then you have stocks as a large part of your portfolio. the question that investors want to know is, should we be adding or subtracting? the direction of interest rates is the key. we know the interest rates are relatively lower than they were in previous eras. what we want to know is, what is the direction of travel? i think the market is underestimating the direction of travel is now higher across the board. francine: why are they underestimating it? inflation? stephen: one reason is inflation. that is a lagging indicator. i think it is more the political composition of central bank boards that investors have taken for granted that every fe

he went a step further in an interview with bloomberg television's david westin. ♪ david: given the morallet's talk about gary cohn for a minute, or for that matter there -- steve mnuchin. it was reported in "the new york times" that he was very upset when he stood next to the present yesterday. -- president yesterday. given what you know right now, should gary cohn resign? because frankly if ceos leaving his counsel leaving the president, gary cohn leaving would have a much more powerful effect? larry: if i was working for the president of the united states, who equated those marching for civil rights with white supremacists, some of whom had passed connections to the american nazi party, i would resign that day. now, that is my moral calculus, i cannot walk in another man's shoes, i cannot make the judgments of effectiveness, the judgments of ambition, the judgments of prudence, that others have to make so i am not going to prescribe for gary cohn or any other particular official. what i would say is that i find it shocking and disturbing that there have been no resignations of principl

i am david westin.old before congress took its races, we would have new health care decisions and tax reform would be behind us. now we're waiting for congress to come back from that august recess, and we are wondering how they will get the debt ceiling raised and new funding for the government to keep it going, and that is just 12 legislative days in september they have to do it into it we hope to get just a plan for tax reform. and health care? forget about it. michael fredericks and jack ablin are with us. jack, how did we get to this place? the markets were running right along in february. we had all these expectations. none of that happened, and the markets did not take a big downturn. --i think we certainly had we talked about fundamental improvement, but underneath the surface, david, i do think that many investors, most investors, have pretty much on wild the chance of tax reform. if you look, for example, as small caps outperforming large caps between election and early december, essentially as

from bloomberg's headquarters, i am david westin."bloomberg markets: the trump economy." fall out day two. the list of business leaders fleeing the president council continues to grow. now, up to four and the president says good riddance. is the first ceo president losing ceos? others: the prince of darkness, he prefers darth vader. his days may be numbered. we will talk about the man who wrote the book on stephen bannon. about taxes. the trump administration continues to promise tax reform. what are the chances and what do the market believe and what does the market to believe? -- and what does the market believe? president donald trump is losing more ceos from his mayor for trying council -- from his manufacturing council.

bob aiken talked to david westin about the strategy.we have seen a pretty dramatic shift in the way media is consumed. it is becoming more and more at based -- app-based. i see it with my kids and grandkids. a lot of the consumption is on over-the-top direct to consumer services. vonnie: yes. that was bob iger their last evening. joining us now is cory johnson. we talk a lot about this new product that we will get more details on down the road sometime and so forth, but some other interesting things about the results. cory: i think it is right to look at this service and what disney is doing here. is the biggest media company in the world. with the theme parks, the marvel stuff, the star wars stuff, the disney stuff, the lucasfilms stuff. they got so much in terms of ability to offer content. they are unique among all of the big studios in the ability to create their own over-the-top network, and sports. these results tell us why they have to focus on that and what kind of strength they bring to were. bring.ngths they a very strong quar

emily: that was david westin speaking with disney's ceo bob iger.wo companies are teaming up to feature marriott hotels on alibaba's travel site. largest now the world's source of outbound travelers who spent over $100 billion in 2016 sparking changes over the global tourism industry. coming up, a talk about a former againstmployee's memo diversity. this is bloomberg. ♪ >> google has fired the engineer who wrote a controversial memo about diversity in the tech industry. oney chang spoke with author who has written about diversity in silicon valley. >> it is hard to regret it, because i do believe it. i'm trying to make google and the world, in general, a better place. i do not want us to be confined to our ideological echo chambers where only one side of the story can be heard and is totally intolerant to other viewpoints and scientific evidence. emily: what scientific evidence are you talking about? in follow-up to your piece there has been plenty of discussion about this. the fact that there is no research to support this idea that there are biolo

emily: david westin there was disney ceo bob iger. we will talk more about this tomorrow. that's it for this edition of "bloomberg technology." don't miss sheryl sandberg joining me tomorrow on bloomberg's "studio 1.0." ♪ announcer: from our studios in new york city, this is "early rose. -- charlie rose." charlie: kurt andersen is here. his new article traces the history of today's assault on theh and fact, looking to 1960's. he writes that the election of donald trump revealed a critical mass of americans untethered from reality. your article was adapted from the upcoming book, "fantasyland, how american went haywire." let's talk about the big book. it goes all the way back to 1500? year history going back to the pilgrims. charlie: religion is a part of the story. >> it's definitely a part of the story. smoke and mirrors, american business, show business, lots of stuff. we always wear big dreamers and true believers, believe or -- believers of the fanciful and equilibriumh an with practicality and pragmatism, yankee clarity. , in talk about in this book the 1960's, that b

as he went a step further in an interview with bloomberg television's david westin.about gary cohn for a minute, or for that matter, steve mnuchin. cohn was very dissatisfied as he stood next to the president yesterday. given what you know, should gary cohn resign? i'm not asking will be, but should he? ceos leaving his counsel would affect the president, gary cohn would have a more powerful effect. >> if i was working for the president of the united states, who equated those marching for civil rights with white hademacists, some of whom passed connections to the american nazi party, i would resign that day. now, that is my moral calculus. i can't walk in another man's shoes, make the judgments of effectiveness, of ambition, the judgments of prudence that others have to make. i'm not going to prescribe for gary cohn or any other particular official. what i would say is that i find disturbing that there have been no resignations of principle from the political appointees in this administration. i am someone who is worried of identitycesses politics. i'm someone who ha

. ♪ francine: coming up shortly on bloomberg daybreak with david westin. good morning to you. el-erian with us today. we have so much turmoil. we have to ask ourselves, is this a passing storm. who better than a wise person to give us respect. that is an important guest today. francine: thank you so much. that is david westin. u.k. tries to regain momentum in the brexit talks. let's get to our london euro chief. what did we learn this week? we will have to wait and see how it's received. wantedearned what they to look like. ofy want free movement people and goods across the border. we learned about the transitional arrangement. week, wehead to next will cover more position papers. some will be secrets about what the ritz of learned about the eu and how that information remains secure once they leave. the week after than we had the neck round of. will negotiations start of the 29th western mark -- 29th? there is a holiday in the u.k. on the 28th. it looks like that will be respected. -- big question is if it progress will be made. they can decide to move on to the next phase. a

david westin, great interview and great perspective.s for joining us to read coming up, the manifesto that created an uproar in silicon valley. why the story is far from over. this is bloomberg. ♪ vonnie: disney made the decision to stream its content directly to consumers greatest part of that effort it will end the deal to offer its newest movies online through met clicks -- netflix. shares have been pretty volatile today, let's focus on their side of the story with bloomberg's abigail doolittle. bba negative for netflix. >> they do have a lot of content providers, including their own. down sharply been earlier about 5% in the premarket. they have the original content, house of cards, other big-name straight if we look at the start on the hanging wall, we see netflix has been planning for this beyond their own original content. we see their payments to disney are down 45% since 2015. you can see in 2015, netflix was paying disney more than $120 million, now shrinking. the tendency has gone down and netflix would make the case that wha

whos go out to david westin is joined by the president and ceo of time inc.. vid: we are joined by rich battista. welcome to bloomberg. as kobach back to those earnings you announced. you missed estimates a little bit on your revenue. you actually beat on chairs so tell me what you got most out of this earnings report? rich battista: one is, we beat so we areations pleased with that. for us, really, not the exciting announcement today, it is the strategic transportation -- program. we put up a plan that we are confident about in terms of creating growth and check rates for this company for the next three to four years. toannounced that we see 500 600 million minimum over the next three have one -- 3-4 years. >> both on the revenue side and cost side. you are cutting costs at 400 million. rich battista: and we target it so far. david: what is your total cost amount? rich battista: about $2.7 billion. that is a big chunk of that david:. david: how do you do that without undermining the brands? rich battista: one is, two thirds of the cost take-out is really relat

david westin joins us. we will start the nafta nick -- nafta negotiations. we have the ambassador from g -- george w. bush for many years and the grandson of a mexican immigrants. he is republican from texas was a very thoughtful approach to u.s.-mexican relationship. guy: thank you very much. comingestin " daybreak" up. simon, the british prime minister came out with a statement saying it is important to condemn far right views. clearly, she finds herself in a difficult position. she find a way out of this problem? in some ways, the brexit stories changed on the u.k. -- story is hinged on the u.k.? simon kennedy: a trade deal with the u.s. would be a big deal and provide ammunition to justify brexit. she have to tread carefully. the statement she made it to the white house in january turned into a lot of criticism. today, talking about not naming the president directly but others in her cabinet including the secretary is more punchy onto twitter but not naming the president by the name. she has to be very c