erik: i'm erik. i'm the owner. lemonis: i'm marcus. nice to meet you. erik: nice to meet you. it's kind of a slower event, but it'll work out pretty good. lemonis: small businesses rarely have the budgets to do big marketing campaigns. so taking over a corner where you can pass out samples and brochures and talk to customers about your product, it's a good idea. so, how many customers do you have in total? erik: we have a total of 300 customers we service. we have 3,000 in the system. lemonis: and how long does a typical customer stay? erik: about three months. lemonis: so, your typical customer stays three months? erik: yeah. now, i have customers for life. lemonis: i want to see you do your marketing thing. erik: yeah. 20 new clients this week. lemonis: let me see it. make it happen. erik: [ laughs ] so, chicken and spinach, or do you want gourmet, delivered health food? there's two servings to a snack for $7.50. diana: if there's any type of allergy, we can actually help you with that. erik: hello, dessert samples. key lime pie? lemonis: erik's idea of healthy eating is a g

erik schatzker is standing by. erik: thanks so much. haymanyle bass of capital of the game famous -- who became famous who has been talking to us about china and the credit bubble building there. we all want to know what it is going to pop. we have seen interesting developments in china, regulatory crackdown on the shadow banking system. the way the chinese government is going after it is by preventing the banks from making these investments, what are they called, entrusted investments that underpin the wmp market. wealth management products. how serious do you think this is? mr. bass: when you look at the wmp market, these are basically leveraged money market funds some with dubious assets. they're basically asset liability mismatches. $4t has ballooned to trillion. imagine $4 trillion worth of assets, investments in these kind of products. what is happening is some of the longer term assets are not doing very well. as soon as the liabilities have problems, many depositors decide not to roll their liabilities, all hell breaks loose. in

erik schatzker is with tim sloan for an interview. erik: good morning. thank you for having us here at the wells fargo heads quarters -- wells fargo headquarters. 13: this is one of our history museums we have around the country. e wer are proud of our heritage. ik -- we are proud of our heritage. erik: your biggest challenge in this role is bringing his company back from a fake account scandal. the work is underway and i know some of the indicators you are following are showing progress. if you is restarted and what you need to be -- and here is where you need to be, where are you? im: we are 160 years old, so i think it is longer than that. we had some issues and my number one job is to rebuild trust with our stakeholders. we think about that is building a better bank, so we are putting many of the legacy issues behind us. we are looking across the company. there will be issues we find and deal with in the normal course, but i'm proud of the progress the team has made. we have made management changes, taken accountability, changed our incentive plan, r

i am erik schatzker.017 marked anniversary for the milken institute global conference in beverly hills. michael milken started the conference with the goal of gathering the best minds from around the globe tackling the biggest challenges. this year, some 4000 people attended from policymakers, tech street's biggest power players. i had a chance to sit down with hedge fund legend ken griffin, the ceo and founder of citadel. we talked about the shakeout in the industry. mr. griffin: it is a shakeout for active management. we see the rise of passive money in etf's, index products. we are seeing money come out of active management to passive structures. as that happens, the money is not pursuing alpha in the same way. that should make markets less efficient which should create a larger profit pool for those who remain. passive will be bigger, active smaller, and the firm's best able to assemble, analyze, and incorporate information in their investment decision-making processes will earn outsized returns. erik

erik: what isn't working? what would you like to see him do differently than the man who nominally filled that position from even if not formally, daniel tarullo? >> what i would like to see is improved relationship between regulators and the industry, because i think we are at a common purpose and which is to meet future we are providing the right products and services to our customers. -- thed be interesting addressee has enough capital, if you look at the amount of capital the industry has raised, we have the strongest financial markets in the world today. we have lots of liquidity. it would be great to provide that more often to our customers. but we want to have an appropriate dialogue with our regulators, and again, let's focus on what is working and what is not. oliver: yet -- erik: he has been on record with me, as it happens, saying he does not like the volcker rule. does it matter to wells fargo whether we have the volcker rule or not? >> not in a large way. if you look at the volcker rule, it was fo

erik schatzker is with nasim taleb. erik: thank you very much. as the author of "the black swan." i like to see you as a traitor turned philosopher. when you are a traitor, you stay a traitor. are ayou're contrarian. >> it does not mean taking the opposite position. erik: let's tap into that right now. herelike me and everyone and everyone anywhere has been watching what's going on in the white house. it as aple think of train wreck. when you look at what's going on in the white house and when you look at what donald trump is doing and what he is saying, what do you see? >> first of all, you watch too much news. i don't see a train wreck. i don't see donald trump is anything different from other politicians except in his language. way he doesn the things in an excel are rated way. you have to remember the donald trump is the fellow who never had a supervisor in his life. no boss. so he does not know how to express things in a way that a supervisor can understand. you have to translate what he says and focus on what he does and see the things he i

erik: chris, great to see you.is chris from 400 capital here at the salt conference in las vegas and the one of many investment titans to come. vonnie: fantastic interview. that was erik schatzker and the cio of 400 capital management. word news.t mark: is really officials are trying to downplay any damage caused by president trump's disclosure of classified information to senior russian officials that reportedly was provided by israel. the defense minister tweeted today, praising the "deep, meaningful, and unprecedented security relationship between israel and the united states." president trump is scheduled to visit israel next week here at the yuan secretary general is stressing the importance of working together with the european union to tackle the refugee crisis. he made the remarks during an address to the european parliament in france. he also said the success of the u.n. will depend on what he called a strong and united europe. in the u.k., workers saw their real earnings fall in the first quarter for the

erik: does verizon know what you have? chris: possibly. erik: possibly. how long will it take until you are in a position to monetize this stuff? chris: i think over the next 24 month we will see a lot of action. we cannot tell you fairly want to be the first to move. every piece that trades, though, means there is that much less to go. again, it is an asset there is no more of. it is supply and demand in a different way. not like oil, where you produce more oil, you drop your production. this is it. -- that isabout another stock were you have a stake. is there a deal risk their? chris: there is big deal risk their people we are significant bond holder as well, and they are looking, basically, to buy the company at a very big discount. there is a lot of discussion back-and-forth, and right now there is not an agreement on an agenda. erik: what do you think happens? chris: a great question -- if softbank wants to pay a little more money, they will get it. that is what it comes down to. erik: erik: as a holder, you hope they do. chris: yes, we have a price

erik: what do you like?roy: 2 of the themes that are occurring is if you can find was to profit from inventory really -- regulatory relief, that is one, and and easy hasn't in europe -- and enthusiasm in europe. one of the things that everyone agrees in washington, and there is very few -- republican, democrat, senator, white house, trump white house, regional banks are overregulated. erik: they need more room to breathe. to the credit of the obama administration, they were already moving in that direction . the question is, how do you play that? erik: for you come that is a good question. troy: if you can play the ceos of trust-referred securities backed by the banks, we think you have meaningful upside with less downside. , and it fits into the broader theme of regulatory year -- the second one would be europe. europe is europe. disappointment is part of investing in europe. europe has been a galactic disappointment or a disaster since 2010. you are filing in a situation where you have good economic data,,

that is our own erik schatzker.ve a big lineup of special guest coming up from the milken institute global conference, starting atle bass noon. also in that hour, u.s. transportation secretary elaine chao. tom barrack. and david rubenstein. mark: big day ahead. coming up, apple shares have been on quite a run. will the big gains continue? we have the apple numbers you need to know. this is bloomberg. ♪ ♪ live from new york, i am vonnie quinn. mark: in london, i am mark barton. this is "bloomberg markets." time for the bloomberg business flash. shonda beeng inspected earnings. the company succeeding in getting more customers to pay full price. they added new products and rely less on discounting, bumping up sales for a fourth consecutive period. first-quarter profits that beat estimates. earnings were helped by rising oil prices and more cost cuts. rose again, showing how the british company is struggling to cover its commitments. more on bp next hour. that is your latest bloomberg business flash. vonnie: time now fo

erik schatzker is live with one of those names. erik? erik: i am here with bruce richards.e is the first in a long line of of investing titans that we will be featuring here at the salt conference in las vegas. bruce, good to see you this morning. you and i were at the same event last night many -- last night. many big names were there last night. everyone is talking about the comey memo. what is your take? >> it clearly is a very collocated issue. it is clearly very partisan, but at the end of the day, an independent prosecutor needs to be set up. the sooner they can move past this, the sooner they can move on to policy. erik: you want congress to set up a special prosecutor? >> at least a commission to decide if a prosecutor needs to be wrought in or not. we need to get this behind us as a country one way or another. as soon as the administration answers this question if there was obstruction, the better for the administration. it has good ideas on taxes, thinktory relief, and i it is going to make the case for that occurring harder if this is not dealt with sooner. erik:

erik: how?> by continuing to invest in and beogy and develop competitive and we are started to grow our market share with those clients and we will continue to focus on that. erik: at one point did it become clear that a strategic error had been made and not investing early enough? >> i would say it was a choice that was made. you only see over time how all of these businesses run. we are not always just looking for revenue in these businesses. we are also looking for returns. it is a balance. i know you want to say it's a strategic error. we have a leading equity franchise and are focused on returns which is a reason why you look at our returns, we have outperformed the competitors over a long time and we are on returns and servicing our clients. at times, people pick and choose to be in different investments. over time, you balance that out and hopefully make the right long-term decisions. now that you are copresident of the firm, people may forget that you are a leveraged finance guy. >> that

erik: right now. bill: it makes all the sense in the world to me. erik: best rate out there? high-yield spreads don't have anymore to compress. thosep the kerry which is basis points. what i think there's very little danger in terms of further compression unless we move that 3% nirvana that markets seem to be expecting. erik: bill, it's been 2.5 years since you started at jana. how would you rate yourself? bill: i'm going to sound like trump here. in a minus in terms of performance. 4%tell clients to expect a or 5% return with very low volatility and that is what we have reduced. almost like a money market fund. prefer instead of 2 billion and it is growing for it to be 200 billion? of course. from that standpoint, we are a little disappointed. but performance has been my main criteria. so i'm liking myself. erik: good to be here on a day when bill gross likes himself. scarlet, the incomparable bill gross. back to you in new york city from beverly hills. scarlet: erik schatzker at the milken institute global conference in beverly hills. tom: fed coverage will continue and we

erik: i see. and it is becoming more apparent that regulatory relief which the executive branch controls, and they are becoming more muscular in the financial services area, particularly regional banks, and also energy, you don't need tax reform or infrastructure to do well in select opportunities there. erik: how much concern have you discerned among the participants at the conference here about what has come out of the white house the last several days, and of course, the way markets are reacting to it now? troy: the starting point is volatility has been extremely low. for some time, there has been tax reforms pushed back, revenue neutral, big fiscal stimulus? it is unclear. whose plan goes forward? one of the mystery's why volatility remains so low. it is nothing to run around with your hair on fire. it is evidence the markets are pushing back further, if not discounting completely, two or three -- sorry, one or two progrowth reforms. some concern, but not near panic. >> years ago when the aca

erik: you are? bruce: yes. erik: broadly speaking. bruce: yes.conomy has been doing well since 2009. the economy keeps getting better every year. it is just getting better. housing sales are going out. erik: not everything is getting better, though. do you believe in the death of the mall? malls areat retail phenomenal investments. they always have been. they will be retail entertainment destinations. they have always had to of all with trends that -- evolve with trends that are happening. i would differentiate. what i will tell you is great retail in america will still be a great investment. that does not say there is not a of retail the are important investments. what that means if you do not have great retail, you will struggle. erik: i have been walking through new york city, walking through soho recently, which we always thought of as great detail. storefront after storefront shuttered. what are the implications for manhattan real estate? let's forget about soho for a moment, but if you are thinking about a building, if you cannot lease out

erik: he checks out. at this point, i would say it is probable what he is saying is correct. now, in terms of that question of can a zebra change its stripes? let's say spiegel was problematic, can he straighten out? here is the real problem i have with that. he has just been massively rewarded for this unethical, problematic behavior. so, people who are positively rewarded or positively sanctioned for that really do --, i really don't see them all of a suddeni having this moment where they say, you know what? that was great back then but now is the time for me to really tow the line. erik: the incentives are not lined up in the right direction? carson: people like that have to have something bad happen before they correct the behavior. erik: a 26% dropping the stock price is something bad. i'm not sure whether it is quite bad enough. before we run out of time, let's get to the business model and strategy issues because it sounds as though they might even be more important than the ethics and corporate go

erik: why?ll, at this point, and this gets to the ethics concerns we have -- ok, getting the easily well-known corporate governance concern is he got effectively ended hundred million dollar stock bonus on the ipo, few to no strings attached, and he can the fei company now and he will still receive the stock -- you can leave the company now is still receive the stock. that is really -- erik: red flag? carson: you normally don't want to see that kind of conflict of interest, the outright money grab. beyond that, the actual ethics concerns. there was a lawsuit filed by a former employee who i was hiredo lead their growth team. he was hired in late 2015 and was only with the company for three weeks before he was fired. in his lawsuit, he is alleging that at the time snap was selling investors and have 100rs that they million daily active users, it was really about 80. at the time there were telling werebody that they growing double digit month on month, which is what we see now for the first quarte

erik: thank you very much, david. and i were just on the panel together and we began talking about something that i think we should actually finish here. which is -- there is so much capital trapped in private markets, backing companies that have become name brands now -- , but it isn't finding its way to the public market. why? and presuming you would like to see it come to the public market, what can be done about that? very: first, i have a balanced view of the private and public capital markets and nicer -- think that they serve an important role in the economy, allowing companies early in their lives to grow and expand. we would like to see more of that get into the hands of investors over time. two ways. one of them, liquidity in the private market. we're basically announced our launch, which allowed for more liquidity to occur in the private markets, including private equity security and funds. but we would also love to see them come into the public markets over time with what i would call sustainable liquidity

erik: why?son: at this point -- this gets to the ethics concerns we have -- the other reason of the corporate governance concern is he got an $800 million stock bonus on the ipo. or no strings attached so he can lead the company now and still receive that stock. that will more than replace the $300 million he sold on the ipo. that is really -- erik: that is a red flag to you? carson: you don't really want to see that conflict of interest or that out right money grab. beyond that, the actual ethics concerns, there is a whistleblower lawsuit recently filed by a former employee. who was hired to lead their growth team. erik: he came out of facebook? >> yes he was only with the , company for three weeks before he was fired and in his lawsuit, he is alleging that at the time that snape was telling investors and advertisers that they hit 100 million daily active users, it was really about 80 and there are other issues at the time. at the time, they were apparently telling everybody they were growing d

erik: they've already done one.iving us 75% probability for another move in june. to get one more further move later this year is not a big stretch of the imagination. mark: stay there. back to you in just a second. erik norland stays with us. thursday we all live at the st. petersburg economic forum. bloomberg's erik schatzker joined by russia's central bank governor. we will bring you that live discussion on bloomberg on thursday. this is bloomberg. ♪ taylor: this is "bloomberg surveillance." i'm taylor riggs. many of the british airways computer problems have ended but the chaos is lingering. the airline is trying to recover from a technology failure that disrupted hundreds of flights and stranded thousands of passengers. says the problem was caused by a power supply issue. saudi gulf has agreed to buy 16 , in line with plans to expand outside of saudi arabia. saudi gulf began operations in 2014 with four airbus jets. the oil market is pessimistic over the opec deal. crude trading below $50 a barrel. opec agreed

so did erik jones pass mcmurray for sixth.chevrolet in second. a cool way to watch the race is on fox sports go. there is a denny hamlin channel and an austin dillon channel tonight. these are the views. you'll see our fox sports coverage in one box. car-cam. telemetry. and their lap time, serial running. along with telemetry. all on the fox srt exclusive driver content as well as race coverage. >> darrell: mike, i think one reason hamlin is getting impatient, his car is the best it's been all night. he is turning some fast laps. i believe he feels like he has a shot of getting up here and maybe racing these guys for the lead. >> mike: go to foxsports.com or download the fox sports go app on your mobile device. hamlin is coming. he is five seconds out of the lead and that number is shrinking. >> jeff: his last lap was the same lap time as truex, our leader. >> darrell: he's feeling with right now. >> matt: the furniture row cars running first and sixth. we've seen the teams add a second and third car and it's drug down the org

erik: and if they are successful, tesla is no longer a short? marketey have a greater than the rest of the manufacturers and are coming up on bmw. this is really to me one of the poster boys for this market. a lot of the evaluation of a tesla is based on the come. everything that will have been 2020 and 2025. in an environment where people expand their horizons, you can get a valuation like this. but an environment where people get scared or the capital needs overwhelm the company, it changes. erik: last year, when you were here, we talked about lending. sun edison was a successful short for you. what has been successful recently? jim: some of the specialty drug areas that we mentioned where we were short. from early 14 on it doubled on us. somed some success in other areas that we have not talked about publicly. erik: now is your opportunity. jim: that is ok. [laughter] in any case, the opportunity in the u.s. in particular is expanding. .e are finding a lot to do here previously we had been in asia, other places. erik: not as assured as you we

erik: i couldn't tell you. you don't care.e and more, the market leaders in our economy enjoy a very strong position. we want to be that market leader both in the hedge fund space and the market making space. the jack welch approach to being number one or number two and if not -- ken: then why are you there. we are able to make things happen from that position of strength. not thinkingare about expanding into any other businesses? ken: the business line, within those business lines, strengthen, strengthen, straighten. the quantitative strategist -- quantitative strategies have been successful for a couple of hedge funds. will that become a bigger part of your business? part ofhas been a big our business for a long time. those firms are extremely good at what you do. the ability to synthesize vast amounts of data to create a forecast of securities prices. some people believe that artificial intelligence and machine learning are going to displace human beings in investing and asset management. what conclusions have you drawn abo

erik: why?n: at this point -- this gets to the ethics concerns we have -- that is partly -- to more than replace the 300 -- almost 300 million sold on the ipo. that is really -- erik: that is a red flag to you? carson: you don't really want to see that conflict of interest or that out right money grab. beyond that, the actual ethics concerns, there is a whistleblower lawsuit recently filed by a few -- former employee. he was only with the company for three weeks before he was fired and in his lawsuit, he is alleging that at the time that snape was telling investors and advertisers that they hit 100 million daily active users, it was really about 80 and there are other issues at the time. at the time, they were apparently telling everybody they were growing double digit month on month in terms of daily active users. he said it was really quarterly low to mid single digits, which is what we see now with the first quarter as a public company. erik: let's say he is right and you are right to give hi

erik: that is true.s little influence over those investigations beyond what he can say in his own testimony. he will be interviewed by investigators and lawyers who work for the fca or prudential regulation authority. he can only count on his colleagues, on members of the board, on the chairman to defend him. let's remember one thing. people have tried to draw comparisons between jeff staley and john stumpf. john stumpf was ejected from wells fargo by failing to oversee not a criminal enterprise but something close to a fraudulent enterprise. he wasn't directly responsible for it but bad things were happening inside the bank. what jes staley was trying to do was defend somebody whose integrity he felt was being maliciously maligned. he still is an apologetic for wanting to do that. it's the manner in which he went about it that was wrong. very different between what's happening at barclays and what's happened at wells fargo. mark: erik schatzker, great to see you in london. more next on the acting fbi di

erik: he checks out.son: at this point, i would say it is probable that he -- that what he is saying is correct. in terms of the question of can a zebra change its stripes? let's say speigel was problematic before, can he straighten out? here is the real problem i have with that. he has just been massively rewarded for this unethical, problematic behavior. people who are positively rewarded -- positively sanctioned for that, i don't see them all of a sudden having this moment where they say that was great back then, but now is the time to really tell the line. -- told the line. the line. usually people like that have to have something really bad happened to them before they correct their behavior. isk: a 26% stock price something bad. i am not sure if it is bad enough. before we run out of time, let's get to the business model and strategy issues. it sounds as though they may be even more important than the ethics problems and corporate governance issues. carson: for us, we don't do a lot of forward-looki

thanks to bloomberg's erik schatzker.of the charts, it is friday, the perfect day to take a look at the purchasing power of the big mac versus nerd -- nonretail -- i will say that again -- it is fry-day. this is bloomberg. ♪ vonnie: it is time for our global battle of the charts where we take a look at the most telling shards of the day and what they may mean for investors. charts of the day and what they may mean for investors. u.s. makes athe trade deal for china which gives to. beef producers access chinese markets and that got me thinking about two things, burgers and purchasing power. says relative goods should cost the same. is that true? we decided to use burgers as our basket of goods so we used the big mac index and you can see the cost of a big mac in the u.s. is just about five dollars $2.83.china it is so what exchange rate would you mean for it to cost the same? you crunch the numbers and the dollar- yuan exchange rate would be much lower than the current rate of $6.89. the disclaimer there, the big mac index

erik: what about those other concerns? the u.s.s may do poorly in a recession if we have one in the near future. the consumer business is not a high-growth business. and the issue of a corporate investment bank. if i ample ask concerned about the profitability of the corporate and investment bank. the answer is yes. you have consumer businesses both in the u.k. and the u.s. generating extremely strong levels, and that is when you have to remind use of that consumer credit is part of the business. given how well we are doing with the u.s. part of the business, and we just picked up part of the american airlines account, as those businesses grow, keep in mind unsecured consumer credit is a great business, but around the corner is a downturn. put a couple pennies a way to make sure you're protecting yourself. erik: are you doing that now? are you growing more concerned? jes: we look at that. so yeah, i think you want to be thinking about the downside. scarlet: that was barclays ceo jes staley speaking with erik schatzker. julia: now i

erik: what can you do about it?e business we are investing in and, candidly, it is not a straightforward business. while we are investing we want to be in the business. we have been a little bit more cautious but we are building capability. morgan stanley has a platform that's a little larger. if you look at the institutional business, we have a very significant institutional leading equity franchise. erik: can you take some of that away from morgan stanley? >> i think there was an opportunity with a set of clients we don't do as much business with to increase market share. >> how? we are focused on that. by continuing to invest in technology and make sure it's developed meaningfully over the course of the last year to continue to develop and is competitive. we will start to grow our market share with those clients and it is something we will focus on. julie: in another exquisite interview, tom went one-on-one with former federal reserve chairman ben bernanke and washington, d.c. among the many topics was tax policy

erik: that's a red flag?son: he normally don't want to see that conflict of interest or outright money grab. that, the actual ethics concerns, there is a whistleblower lawsuit filed by a former employee who was hired to lead their growth team. late 2015.d in he was only with the company for three weeks before he was fired. in his lawsuit, he is alleging that at the time they were telling investors and advertisers they hit 100 million daily users, it was really about 80 million. at the time, they were telling everybody they were growing up double digit month on month in terms of daily active users, he said it was really quarterly low to mid single digits, which is what we see now. erik: let's say he's right and you are right to give him some credibility. who is to say that evan spiegel isn't going to grow out of the stuff, grow up if you will, and like thening snap public company? carson: one thing i do want to tohasize, we have diligence the whistleblower here. we have had one of our investigators do a lot of

erik: would it be good for your firm as well?: no, we would have much more vigorous competitors at these newly created investment banks. i think what american investment banks are at the forefront of innovation. not all innovation is good. time, the majority of innovation creates meaningful value for our economy. julia: that was bloomberg press erik schatzker with citadel founder and ceo ken griffin. after middling up for years, korean experts have made steep gains over the past two years. we have a chart with the details and a quick check on longer dated bonds. we cited a big jump up in yields on the 30-year, treasury after treasury secretary steven mnuchin said he was still entertaining the idea of a 50 or 100 year treasury bond. again, 30 year yields spiked higher right when he spoke. this is bloomberg. ♪ joe: i'm joe weisenthal. "what'd you miss?" korean exports are on a tear great people sometimes look at korean trade data as a bellwether of the global economy because it is so sensitive to changes in world trade and all that

erik: thank you, man. appreciate you. adelo: take care. erik: nice to meet you.nk you, erik. now that we're headed down the right direction, i want to spend a minute with adelo to make sure that the other loose business ends that i gave him clear direction on have also been tied up. so i had asked you to take care of the employees. have you gotten that done? adelo: yes. lemonis: and you sold off all the equipment so that you could pay your sister back? adelo: no. i left it there. lemonis: why did you leave it there? adelo: i still had to pay rent. the agreement was with the landlord. "listen, i'm gonna leave the equipment." lemonis: why didn't you tell me that? adelo: that was the deal. lemonis: what deal? adelo: the eviction deal. lemonis: i don't understand. never once did you tell me that the landlord was foreclosing on you. you never told me that. that's an important detail. adelo: okay. but we didn't focus on that. and -- lemonis: it's not about focusing. i didn't know to ask, "oh, by the way, are you getting evicted?" the fact that adelo had already gotten

that is the erik nielsen chart. we will get to erik nielsen in a second. i have a simpler chart. of having the pound-risk reversal. out, the study that came this basically shows you the increased cost to hedge against a weaker pound versus dollar. you can see that as the polls change and studies change. we are not talking about a hung parliament -- we are now talking about a hung parliament. look at the difference today. the pound-dollar, one week reversals. eurozone inflation slows in may. we had that figure in the last four minutes. inflation data has been taking notice. the commerce department on roseay says that the core 1.7% in april from a year ago. down to continue treasury yields. speaking yesterday, they'll bring art said soft inflation and inflation one. >> i have seen soft tension between signs that the economy is in the neighborhood of full employment and signs that the tentative in progress on inflation is slowing. given that tension, it may lead me to reassess the expected path of policy in the future although it is premature to make that call today. francine: our g

erik: this is over the span of a career.ot partner with the fastest-growing guest experience company, airbnb, do something? barry: it could happen. i would not call it -- : they want to be a guest experience company. barry: they are talented. is an interesting distribution channel now and i think it is very interesting. clout,ve a lot of especially when running a house. doing, onewe are brandon is ego green, it has found its niche. we are running 90% plus occupancy and in market, we were up 20% year-over-year, so we seem to have run away with this brand. we just awarded a project in paris. we have construction in china. in salt lake soon, i hope, and california. we are working on something in l.a. it is fun. it is fine to do something good and doing business and make money out of doing good. vonnie: that was barry sternlicht, ceo of starwood capital group speaking with erik schatzker at the milken conference. mark: coming up, we will look for the best em opportunities from the middle east to latin america, including the impa

erik: in what way? tim: in the quest for talent. number of really talented individuals we can bring onto our team in this environment. with firms shutting down, there are a lot of good people that we want to bring into the citadel. with firm struggling, there is a good chance to bring firms into the citadel. erik: how much longer do you think this shakeout in the hedge fund industry will be over? tim: it is not a shakeup for the hedge fund industry, but for active management. right? we see the rise and etf and index products. we're seeing money come out of active management heading towards passive structures. as it happens, the money that passed the structures is not -- estimate the markets less efficient grading a larger profit pool for those to remain. we will find a new nuclear realm over the years to come. the firms that are best able to assemble, analyze and corporate information into their decision-making processes will continue to. >> we have a company that launched a most 14 years ago. it first 12 years, generated 20% -- 21%

erik schatzker in london.an important conversation. .ell me about european banking it has got to consolidate. there are too many banks. everybody has the ghost in their ago from x numbers of year -- number of years ago. how do you avoid the disaster of belgian banking? >> m&a has been very slow in banking the last couple years. we have been seeing early signs of this changing from the well-capitalized decisions, banks have had good return on equity. there have been signs of a return to m&a. when you look at the numbers, it has been very quiet for a few years, right? to used to be $400 billion $500 billion of m&a and now there is less than $100 billion today. guy: why would you buy a european bank right now? tom: good question. >> i think the economy in europe is getting much better. guy: what do you gain from it, though? technology is changing, things are happening right now. why do you invest your money in consolidating an industry? what do you gain in terms of the pickup? if you get bigger, you can regulated

daniel suarez and erik jones.er suarez nor at these speeds in this race. >> darrell: suarez has done a nice job of quietly finding him self in the top ten the last several weeks. >> jeff: he'll feel 600 miles tomorrow when he wakes up. >> darrell: the old neck will be hurting, won't it? >> mike: the rookie running order. matt. >> matt: the 19 of daniel suarez. he puts so much into it. watching films from past races and talking to drivers. he acclimates himself to new situations. he did a double duty in chicago in 2015. ran 525 miles in a truck and indycar. he continues to get better. they can't wait until they go to racetracks for a second time like here in charlotte. >> mike: what's about the difference between these two, carl edwards had won a lot of races in. a lot of history and success. erik jones stepping into a brand-new race team. with jones running seventh and truex leading, barney visser might have his first-ever race with two of his cars finishing in the top ten. >> darrell: it's looking good right now.

anna: the ceo of berkeley speaking to erik schatzker. the bank of england released its minutes of its most recent meeting in his new economic forecast. according to bloomberg intelligence analysis, we can , there arete of 7-1 one fewer voters this time around. a downgrade on gdp growth and forecast for inflation to be nudged up this year. manus: so he brought in a specialist on risk who got up extra early. brownie points for the day. you say though rates are entrenched. i think it's interesting, you do worry about the buildup of dissent. ,> the minimum number of people there could be one or possibly even to more. it's not as if with that close to a hike, but still, if it turns out that there were three hikes, three votes for a hike, that would be quite a big deal. i guess the governor gets a little bit extra if needed. when do we expect any movement from the bank of england? rateslleagues are saying won't start to go up until 2019 and looking at the probability of a hike by december 2017, it's lower than it was three months ago. expectat

erik: most of the progress so far has been on the consumer side.f a show sideercial or wholesale . he pointed to some figures wells fargo tracks on customer experience and customer loyalty. these are surveys customers fill out. loyalty is still a ways from recovering. some of the customer experience measures are kind of close to where they were before the scandal. those are not the only two measures wells fargo needs to worry about. as he said in that interview, which was heavy on the atmospherics and short on the specifics, they have a lot of work left to do to get back to where they want to be. vonnie: what does he want the current administration to do on bank regulation? erik: we have heard so many currentrom the administration on what they want to do. tim sloan was clear. he wants the government to stop changing the goal posts when it comes to capital levels, bank liquidity requirements. he wants those to be fixed so there is some certainty that a bank like wells fargo can work towards in the future. he also wants the fed to fix the testingcess

erik: from your perspective, what's not working?im: we need the standards to be much more objective, as opposed to subjective. we need to say that these are the rules, let's stop changing them. let's stop trying to tinker with them. i think that what we built, post crisis, is the strongest financial system in the industry in the world. everything is clear, you know what the liquidity requirement is and what the capital requirements are. they he changing every year and it would be nice if it just stops. all institutions in this country are almost all have now raised much more capital than they had before. as it relates to see car, having a process for that is good. wells fargo has been doing that for decades. we put in a position to be able to buy walkover yeah. wachovia.r you -- that's the feedback you are hearing from the fed in terms of changes they want to make. erik: you believe the fed wants to be the same question mark tim: -- same? tim: yes. erik: what with the fed do differently, if they didn't, in your words, keep changing?

erik: you know what i am getting at.rdness of brexit determine the impact of a bank like barclays? >> you know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of if tenants -- you know, there are a couple of things that came out of the financial crisis as a positive, one is the coronation of the g-20. one of the things the g-20 stuck to that we regulate the financial institution. --'s not put of the areas let's not put up barriers to free flow capital. london will remain a very important source of capital for continental europe. erik: relative to some of your peers on the subject, you are an optimist. at least you are constructed. what is the upside to be optimistic. what gives you that degree of do notnce that the have? >> i am just expressing what i think. a bankw, we have subsidiary in ireland that is part of the european union. 1002 hundred employees sitting in continental europe from elan to paris -- from milan to paris to maturity. there will be uncertaint

erik, first, to you.ox developing an unhealthy relationship with vacation. sean hannity is under pressure from media critics after he promoted a conspiracy about the july 2016 killing of seth rich, a staffer at the democratic national committee. how does it affect hannity now? >> well, bill o'reilly was supposed to have gone on vacation back in april. and he was in the middle of a -- not a similar but -- he was in the middle of a more severe advertiser problem. and he never came back. and so, when jesse waters said something stupid on fox news air after that and he went on vacation, people said, oh, maybe he won't come back. hannity, after airing the seth rich conspiracy theory over and over and over again, and he's under pressure from advertisers, now, too, he's going on vacation. now, fox news put out a statement saying he is actually on vacation. he will be back tuesday. >> it is memorial day weekend. >> it is memorial day weekend. enjoy your vacation, sean hannity. the point i was making was fox news