erik: mr.irman, you may have seen jesse powell, the ceo of one of the larger currency exchanges from recently likened regulatory efforts to currency market and inflation to mind control. what do you think of that? i've is the first heard that might control -- not something i have any skill set in. i will have to ask the agency was there of us are practicing that. i'm not aware of it going on right now. is thehe alternative wild west -- that is what he seems to be advocating. >> i don't know about that. i spent 30 years in the private sector. i chose to take on this job. i believe smart relation is good for the marketplace. chris: cftc chairman giancarlo with our own erik schatzker from milken. caroline: plenty more where that comes from. coming up from we get a handle on the markets with paul hamill. he will be live from the milken institute global conference. this is bloomberg. ♪ caroline: live from london, i'm caroline hyde. vonnie: in new york, i am vonnie quinn. this is "bloomberg markets."

erik: no.ere are a couple of things that hold inflation down, and a lot of it we do not understand -- is at the shift to i.t. or digital -- tom: i agree. erik: but output caps still matter. samantha -- demand and supply still matter. you see in america, they start picking up, because there is no the phillipsso curve seems to work. in europe, we are writing maybe 18 months behind the u.s. in this matter. tom: i am waiting for inflation. air using, thank you -- brief.rning bloomberg daybreak on bloomberg radio -- boston, new york, washington, san francisco, and sirius xm, channel 119. good morning, radio london. this is bloomberg. ♪ ♪ taylor: this is "bloomberg surveillance." let's get your bloomberg is newsflash. barclays chairman john macfarlane says he will serve at least another year. he has been at his job three aars and he indicated that search for his successor is underway. he said "the light at the end of the tunnel gets brighter." a federal judge will announce whether he will approve at&

erik: meaning much more sensitive. joel: yes.ssell 2000 has been 98% cheaper over the last few years. you really have to look at the individual stocks. they are expensive, but there are opportunities. erik: thank you for spending time with us here. good seeing you. inside him one of the world's great value investors. vonnie: wonderful conversation. erik schatzker and the legendary value investor joel greenblatt. caroline: i am out in boston for the entire week, shining a light on the tech ecosystem here that has not once but twice seen boston voted the number one hub in hub -- startup the u.s. i want to bring to your attention which could supply a lunch spot near you. take a listen. this may look like your typical all thetopped with fixings, including leafy green cooked, cut, washed, and -- farm to table greens. but it is a different type of form. a husk of a shipping container in the heart of downtown manhattan. we first -- we purposed, it is -- re-purposed, it's called the leafy green machine. part of a new wave of vertical far

erik wasson is with bloomberg news. we talked about a couple different aspect of the white house end of capitol hill. bring's back to the congressional a pot and the legislative calendar. 1.3 trillion dollars spending bill was signed by the president and march, very unpopular with republicans. increased spending by $150 billion. there will be an attempt to crawl back some spending. canceling $63 billion, and now we're told it will be $11 billion. host: how do you cancel money? that: there is a 1974 law allows it. it has not been used under the last two administrations, but it this is a way to back door and cancel stuff. that dealever make again. he doesn't have a super majority in the senate. they are going to cancel on spent money. the $11gets going to billion. i am and who in the repeal of the auto loan legislation -- regulation. lending,f they are they are responsible for any discrimination that takes place. cancel ken -- congress can cancel regulations. guest: on friday, he's meeting with members of the auto industr

let's head over to erik schatzker in california.iewers and listeners worldwide here to wells fargo headquarters in san francisco, california. i'm here with the ceo of wells fargo, tim sloan. thank you for having us. tim: good to sit in front of the stagecoach. eric: let's begin with you new ad campaign. for a company as big as yours to say effectively, we screwed up on national television. ,hy draw attention to yourself attention to your mistakes, let's say, by meeting that you lost your customers trust instead of just moving on? because we are telling the truth. we've been very clear, and it's not the first time we made those statements on national tv. i been interviewed by you when we talked about it. i think it's us -- it's honest, it's saying what made some mistakes, there is no question about that. we have taken responsibility. we are not perfect, but were going to move forward because there's a great history of this company, we done a lot of really terrific things, which we talk about in the ad, and we focus on what we are doi

erik: you need data. it is and we are getting that data. error: --erik: why did you do that?no answer for that. erik: the ones you like our value. cliff: value, momentum, carry, it and defensive. value tends to be expensive. if you scale price and lower prices come in overtime. momentum just says what has been going on lately tends to go on were often than not. kerry says both the first about predict and price. it is also nice to make money while you wait. less risky quality is than other securities and a stronger balance sheet. so people understand that these have been applied. do they work on fixed income? cliff: they do. value is something like a yield compared to a default probability. momentum is just momentum. you always get that. kerry is something called and adjusted spread which is what you get when you wait. quality is like the strength of the balance sheet. the concepts pour over and the results are similar. none of these things work all of the time. they are good strategies. they are about equally as good in the fixed income world as the equity world. factoro styl

tim: i am not smart enough to know, erik. erik: you are risk managing your balance sheet.we have great people at this company that are thinking about that all the time. could i imagine us seeing a 10-year at 3.5% or 4% sometime in the next six to 12 months? absolutely. i mean, we have had a pretty significant backup of almost 50 basis points just in the last few months. and if you believe that economic activity, not only in the u.s. but around the world, is going to continue to increase, you can imagine rates getting in that range. david: coming up on this edition of "bloomberg best," more of this week's most compelling conversations. brexit. just one of those unresolved issues contributing to global vol which is why boris johnson says britain's policies must be decisive. boris: we have gotten on with it, and dynamism. david: this is bloomberg. ♪ david: this is "bloomberg best." i am david ingles. global trade tensions weighed on markets this week, and two political contributors who tend to start controversy shared their thoughts with bloomberg television, steve bannon and

erik -- erik what are you keeping a : close eye on to know when the cycle has turned?d foremost, what is the fundamental economic health of this country. most of our businesses in the -- most of our business is here in the u.s., so are we going from a gdp standpoint, rb grading jobs? but even in that environment, there is a lot of this location occurring because of technology and other reasons. it can impact our customers. erik: there is a lot of concern out there that the yield curve may invert as the fed raises short-term interest rates. concerned because in the past, it has launched a recession. do you share that concern? >> it certainly could invert. i do not think that is a inverted over a year or two would be a concern that we have a recession, i think it has more to do with the fact that if you look around the world, long-term rates and in japan in particular are much lower than they are in the u.s. you could argue whether or not that makes sense from a returns standpoint, and that is what is keeping a ceiling on longer-term rates. so you see the yield curve fla

met in august of 2016 with none other than erik prince, former head of black water, george nader, an emissary for saudi arabia and the united arab emirates and a israeli social media expert joel zamel. it certainly got the president's attention yesterday when he quoted the time's piece was a, quote, long and boring story. ryan goodman, general counsel from the department of defendant and co-editor of the chief of the just security blog which is a great read you should be checking out. and jonathan chafe. >> there are a couple of implications to it. the first one would be this is another indication of a campaign violation. you're not supposed to take any support from a foreign national. and "the new york times" report says that don jr. responded approvingly. so everybody at that meeting's got a serious legal issue if the reporting is correct. the second item is that erik prince actually testified to congress and seemed to omit this particular meeting. we could call that a concealment of a material fact. in other words, it's a federal violation. it's a perjury if in fact the meeting to

raised wages -- erik: you raised your own wages. increased base pay for the lowest papers to $50 our affecting -- $15 an hour. in addition to that we increase the base pay of the team members just about that, and that impacted another 40 to 50 -- i could be off just a little bit. what we're seeing is the consumers have a little bit more starting tond and see that manifest itself in terms of consumer spending in march and april. i think that is good. as it relates to commercial customers, it is more of a second derivative or it is going to take a little bit longer to see the impact. there is no question that the pace of companies moving outside workers,with their incorporating somewhere else can that has slowed down to a halt. we are seeing more foreign, non-us-headquartered companies make investments in the u.s. erik: i guess what i am trying to discern is the tax cut aside, does it feel like it is a bit of time to do business? yes, it is full again, it is not taking gdp from 1.5% to 2% in which is the train we were on the last eigh

out in the front area, erik will be signing copies of the book which are available for sale. we've got a cmh display of our remaining vietnam history publications, and i encourage you to stick around and ask more questions as we wrap up the night. thank you all. >> all right, good job. nicely done. yeah, nicely done. [ background chatter ]. >>> you're watching american history tv, all weekend every weekend on c-span3. to join the conversation, like us on facebook , @c-span histor. >>> next, a panel of five vietnam war veterans, selected by the u.s. army command and general staff college at ft. 11en worth, kansas, discuss the war. as part of a national endowment for the arts, big read kc, series of programs on the vietnam war. this is about an hour and 15 minutes. >> so tonight we have a

are you going to say jaymie or erik?( laughter ) ( applause ) ♪ ♪ ( applause ) >> yeah. i'll call you-- i'll call you right back. ( laughter ). >> stephen: well, hold on, we have to take's little break. we'll be right back with more jamie foxx. don't go anywhere. ( ♪ ) face the world as a face to be reckoned with. only botox® cosmetic is fda approved to temporarily make moderate to severe frown lines, crow's feet and forehead lines look better. it's a quick 10 minute cosmetic treatment given by a doctor to reduce those lines. there is only one botox® cosmetic, ask for it by name. the effects of botox® cosmetic, may spread hours to weeks after injection, causing serious symptoms. alert your doctor right away as difficulty swallowing, speaking, breathing, eye problems, or muscle weakness can be a sign of a life-threatening condition. do not receive botox® cosmetic if you have a skin infection. side effects may include allergic reactions, injection site pain, headache, eyelid and eyebrow drooping and eyelid swelling. tell y

erik: could we see another golden age of hedge funds? greg: i hope so.seriousness, the next crisis will not be like the 2008 1. it will be less severe, but perhaps longer in duration, more one.to the 2000-2002 we are rising interest rates, increasing deficits, a handful of cold stocks going up. even with the selloffs, some of these are up 25% on the year. i think you could see that. we had a handful of investors say to us, i want to talk about your hedge. two things about your hedge. one, it always loses money, always. two, we charge you more fees because of that. we think you are smart and honest people, we want to keep our relationship with you, but we don't want you to hedge. we promised we would never hedge . those people migrated out of the hedgefund x into the u -- products into the unhedged products. caroline: that of course is greg lippman. you know him from "the big short." vonnie: fun stuff. thank you, caroline. next up, road trip. alliance bernstein is moving its headquarters to nashville. more than 1000 will end up making the move. ,e are joi

erik prince's roll in arranging the meeting contradicts his testimony to the house committee in a wayhat sure looks like perjury. togeth according to the transcript he had this exchange. aside from writing these papers donating, supporting in a -- mr. prince, yard sign in myrd -- my yard. mr. rooney, so there was no other formal communications or contact with the pain? mr. prince correct. joining us now the co-author of the new book how to rig an election to be published tomorrow. and david frum is back with us. brian your reading of this. >> it speaks to their willingness to at least attempt to collude with foreign actors in the election. and it talks to the fact that they ever willing to use business interests with groups like saudi arabia and the united arab emirates to influence foreign policy. remember president trump attacked qatar on twitter which is a rival of the saudis and the arab emirates. so is it because of the this? there's this pattern of willing to collude, whether or not they succeeded, they tried. that's something disqualifying, even if not illegal. >> there's so mu

erik: that said, they want to take some of the credit products originating lower down in the capital structure and package it in a way that it can appeal to insurance companies. might thatossibly --

arborist erik tjossem has been brought in to oversee the treacherous assignment.one -- cut the limbs hanging over the gift shop. >> we had to climb up to the top. it can definitely be dangerous. i mean, we're talking about being hundreds of feet off the ground, and we're just attached by ropes. >> with the hazardous limbs shaved off, the crew makes a pie-wedge-shaped cut into the face of the tree. >> that gives you the direction of where it's gonna fall... hopefully. >> the next step is to make a horizontal cut on the backside, but not all the way through. a piece of the middle, called the holding wood, remains intact, acting as a hinge to help guide the tree down in the desired direction. at least in a healthy tree, it works that way, but the inside of this one is full of rot. erik is not sure the holding wood will, in fact, hold, meaning the tree could fall in any direction -- on paul, the gift shop, or into the forest where it could take out some other of the park's iconic treasures. >> if we kind of misjudge exactly the way that we were cutting it, it could be

in attendance, erik prince convened this meeting.was there along with george nader, who has been cooperating with robert mueller's investigation and joel zamel who heads up a social media consulting firm. what's your sense given all of this? what does it tell but what this campaign of willing to entertain back in 2016? >> david, it just really surprising. there's always countries unhappy with the status quo and unhappy with parties and their policies. what brought this disparate group together, israeli, saudis, and the uae is this real unhappiness with the iran deal. none of them liked the deal obama had done in iran. they all thought it hillary would be re-elected that she would continue and strengthen that deal so they wanted to work against it. but what's striking here is that there's always, again, unhappiness from our foreign either allies in this case or adversaries, if you look with russia at what's going on with the way america decide things internally. but this absolute comfort in approaching campaigns is really unique this

and erik prince and george mader and other officials purports to be from foreign governments offering help to the trump campaign? >> no, katy, but it certainly was asked of these individuals. if you go back and read erik prince's transcript you saw that a number of times he was asked whether he met with donald trump jr. or others with the trump campaign. and so if this "new york times" story is true, and if the nader story is true, it looks like he wasn't truthful with congress. and we were not helpless in our investigation. we have subpoena power where we could have confronted these witnesses with evidence that we subpoenaed. and my republicans colleagues were unwilling at every single request to use that. now our insurance policy for accountability rests with bob mueller and we hope that his investigation can proceed uninhibited. >> here is what erik prince said. we have the transcript from it. congressman tom rooney asked aside from writing these foreign policy papers. prince said a yard sign in my yard. you say prince was misrepresenting himself there? >> i also asked him whether

the new york times is reporting that erik prince set up a meeting at trump tower between trump jr. and george nader, an emissary for two gulf princes and joel zamal, all three months before election day. accord together new york times, nader told trump jr., quote, the princes who led saudi arabia and the unite add arab emir ates were eager to help his father win election as president. in a statement to cnn, an attorney for trump jr. denied any wrong doing. saying, quote, prior to the 2016 election, donald trump jr. recalls a meeting with erik prince, george nader and another individual who may be joel zamal and they pitched him on a social media platform or marketing strategy. he was not interested and that was the end of. it the ranking democrats and house and intelligence committee called news of the meeting disturbing. >> if the "times" story is true, we have a second and maybe a third nation that was trying to lean in to this campaign and i don't understand what the president doesn't get about the law that says if you have a foreign nation interfere in an american election, tha

please welcome, erik bergstrom!u. ( laughter ) so... i think we've all had somebody walk in on us in a public restroom. that can be tense. you know, whether the door doesn't latch or whatever. but here's what you can say to relieve the tension, if somebody walks in on you in a public restroom -- good! you got my email! ( laughter ) ( applause ) a bit about me, i'm almost 30. i'm 31. actually, i'm 33, and that joke is two years old. keeps going. you see, in the news, the world's oldest man just passed away at 111 years old. luckily, he was quickly replaced with -- the world's oldest man. ( laughter ) who knows what's going to happen next. ( laughter ) i'm getting older. i had to have a colonoscopy, or as i described the worst way to get free ginger ale. ( laughter ) do you think captain hook used to be called captain hands? ( laughter ) i went to the renaissance festival. i've never seen so many people do everything to look like a warrior, except exercise. ( laughter ) do you think that during the renaissance there w

erik prince did testify before the house intelligence committee. he claimed that he only had incidenceal contact with the campaign but that he wasn't involved. we now know of at least two meetings he was involved. one that also involved talking about things relating to setting up contacts with the campaign and back channels and now this meeting. what do you make of it? so the involvement of erik prince, specifically, what do you make of that? >> i used to run into him while i was doing security contracting, all of the stories about what he was doing, like running the new private security force from columbia for the crown prince of the united arab emirates. he was the kind of guy that most westerners wanted to stay away from, but all the emiratesi wanted the pa nash of being around the blackwater guy. it is not a surprise to me that erik prince was the go-to guy for some secret operation to meet some secret russian oligarch. same thing for meeting, you know, george nader who is working for the crown prince of the united arab emirates and prince alma

erik: so where are you finding the best opportunities right now?fied than it was before. rdf is down 20%. from a high level, what i am trying to do is construct a portfolio that generates enough returns until the next correction that people are happy with us and satisfied investors, but is also constructed prudently enough that we survive the next correction. i think what is not clear is when the next recession is coming and whether we have liquidity driven correction first, like in february. erik: what does it feel like to you? does it feel like we are getting close? we are certainly closer, every day we are closer. by definition. greg: i think a lot depends on what happens with interest rates, what happens with wages and cost pressures, what happens with trade. very early, things that china -- with china could all get sorted out. i am confident that the next correction is not super imminent, but it is on the horizon and we are wary for it. ♪ ♪ nejra: this is "bloomberg best." i'm nejra cehic. earnings reports for front and -- were front front and

erik prince, this is one of the few transcripts that the republicans agreed to be released, he said iegligible contact with the campaign or no contact. i can't remember the exact words. there's question of this israeli social media type who was there has connections to russian oligarchs. i'm interested why the saudis sent representatives saying we want to help elect donald trump. how do you answer questions? with an investigation. this is why i don't understand the president's attack on this investigation. if he succeeded in closing it down tomorrow, the myriad of questions out there would hang over his presidency for as long as it was here. there's only one way for somebody to be proven innocent is to let the investigation run its course and if the facts show let the investigation tell the american people that and we can move on. instead, donald trump is acting like a guy who knows that an investigation is going to uncover some pretty ugly stuff. >> very quickly, congressman, do you have a way to figure out if erik prince perjured himself in front of your committee? >> this isn't a h

with erik spoke schatzker in arizona.k began by asking if the next episode of distress will be bigger than the last? >>. it could be. >> it could be. it depends on where the capital flows are. that is just one piece of it. why the financial crisis was so great is you had this enormous constraint on the global liquidity. hopefully, we won't encounter that again and we will have a so it'smal environment not simply a function of the size of the leverage loan market. you need to look at what kind of triggers there are with respect to that capital. what kind of financial covenants and the like. the: in recent years, stress has been relatively isolated. one industries do you figure are vulnerable? >> there are some media companies. clear channel, we have been .nvolved with clear channel weinstein, for example. shipping has been a large source of activity for us globally. erik: does it look like anything is poised to be next? >> we look at transactions and the leverage associated with those transactions. that, health care, certa

erik wasson is with bloomberg news. we talked about a couple different aspect of the white house end of capitol hill. bring's back to the congressional a pot and the legislative calendar. 1.3 trillion dollars spending bill was signed by the president and march, very unpopular with republicans. increased spending by $150 billion. there will be an attempt to crawl back some spending. canceling $63 billion, and now we're told it will be $11 billion. host: how do you cancel money? that: there is a 1974 law allows it. it has not been used under the last two administrations, but it this is a way to back door and cancel stuff. that dealever make again. he doesn't have a super majority in the senate. they are going to cancel on spent money. the $11gets going to billion. i am and who in the repeal of the auto loan legislation -- regulation. lending,f they are they are responsible for any discrimination that takes place. cancel ken -- congress can cancel regulations. guest: on friday, he's meeting with members of the auto industr

apparently we're told was stephen miller who is now a white house advise person and the guests were erik prince, best san antonio as founder of blackwater that worked in iraq, and with him were george nader and joel zamel. mr. nader has been in the news recently because he was presenting himself as an emmiss taker from the united arab emirates and saudi arabia. he is certainly a close adviser to the crown prince who runs united arab emirates. and he was in this meeting saying we want to help you, we the crown princes of saudi arabia and united arab emirates want to help president trump get elected. and he brought along mr. zamel who is an israeli citizen and he owns a business that does social media campaigning, that promises to sort of shape reality or shape opinion on the part of its clients. and according to the statement that we got from donald trump jr., what was presented to him that day was a proposal for a social media campaign or platform to help with the election. help from a foreign fwoechltsgo or even foreign citizens to a political campaign as you know is illegal. and we don

erik: or else you are what come out of business?mantled you against those using computer power augmented by powerful computers. they are not replacing us, but they are making us better and if you are not making an investment better with that power -- erik: i have to ask you about the bank stocks. they have been emblematic of the market. do you have of you? let's we tended to look at each stock, stock by stock. i would say that we are episodic in them. which is to say that we like to believe that we own stock that are high in quality, have value and have been imported differently. when the bank stocks are just doing great, everyone loves them and it's hard to own. when there is a debate, like the one on facebook now, or in google in 2008, that's in research and judgment can bring a different point of view. so where do you stand on the debate of facebook? flex we own facebook -- ricky: we own facebook today. ,e believe that fundamentally as the tower of the platform, the use of data analytics to approve the our ally is under monetized

erik prince brought the meeting together.in the meeting, we're doing what we can to help you get elected. and george nader, who was there as an emissary, certainly, from the united arab emirates and possibly representing the saudis as well, that's what he said at the time said flat out we would like to do whatever we can to help elect your father, donald trump. and an israeli citizen was there. it's improper for him to be helping to nut a campaign. he runs an internet company that specializes in shaping opinion and social media campaigns. and he was there talking about all that his company could do for the campaign. so the takeaway to my mine fairly unmistakebly is that they were trying to offer the help of at least the united arab emirates in electing donald trump. >> david, what does it take to get to the point where we know that foreign interests interfering in the election is not allowed. at what point does that line get crossed? is taking the meeting itself potentially problematic? >> by can't man that taking a meeting i

what's the journey that you made in your dires about erik killmonger, what you discovered about writing him, it was particular he dark and it was a very sad journal. not having his mom growing up, in and out of the system, foster care, foster homes and whatnot. it's a lot of dark stuff that's probably not right for-- for television. >> stephen: all right. >> but it was deep, man, and it allowed me to go to that place right before a scene. it allowed me to lock in. >> stephen: i understand about not sharing the dark stuff. there are actually some confessions i don't think are appropriate to tell the audience. ( cheers and applause ) >> he's good. he's good. ♪ ♪ >> stephen: okay, so the range of your work, the range of your work is as impressive as the work itself. "the wire," "friday night lights" "all my children," "creed," "fantastic four" "black panther," and now "fahrenheit 451". let's say i'm not right for any of those roles anymore, if all of that fell through, i understand you still have a pretty exciting backup position. you've got a skill that i did not know about, and that is s

the "new york times" is reporting that erik prince set up a meeting between two gulf princes as well as a social media expert, all this three months before election day. nader told trump jr. that the princes who led saudi arabia and the united air of emirates were eager to help his father win an election. an attorney for trump jr. denied any wrong doing fp saying he recalls a meeting with erik prince, and another individual, they pitched mr. trump on a marketing strategy. that was the end of it. the president himself discumiss the meeting over the weekend. the ranking democrats on the house and senate intelligence committees called news of the meeting disturbing. >> if the times story is true we have now a second and maybe a third nation that was trying to lean in to this campaign. and i don't understand what the president doesn't get about the law that says if you have a foreign nation interfere in an american election, that's illegal. >> you have to be concerned why are so many foreign powers during the campaign, and perhaps thereafter, that the trump family is willing to play ball

the august 2016 meeting at trump tower was set up by erik prince, the private security contractor and former head of black water, the emissary george nader who is cooperating with mueller allegedly told donald trump jr. that the saudi and emirates princes were eager to help his father and social media specialist zamal said his firm had a multi-million dollar proposal to help the campaign. zamal's lawyer denied he had any involvement in the campaign. the "times" said trump jr. responded approvingly but the president's son told the senate judiciary committee i didn't collude with any foreign government and didn't know anyone who did. and his lawyer issued a statement acknowledging the meeting happened, but said trump jr. did not take them up on the marketing strategy. he was not interested and that is the end of it. the democratic lawmakers aren't satisfied. >> and why are so many foreign powers of the opinion during the campaign and perhaps thereafter that the trump family is willing to play ball. >> and when it comes to the emissary george nader, he traveled to moscow at least twice d

erik: which of the world expect to see different?adala investment credibility will see what mubadala has done of the last 10 years. erik: larger deals? large investments? >> possibly. we have the largest scale. that makes us more able to do potentially larger transactions if that makes sense for us. : i have, unavoidably, berkshire hathaway in mind. buffett has tough about the challenge and opportunity of being a large industrial elephant hunter, if you will. does having $250 billion in assets at your fingertips allow you to do the kinds of deals you couldn't do before? >> yes. we believe so. scale?t what will you not able to do before that is now in your reach? it allows us to have a larger diversified folio, and terms of geography and both sectors. so sector and geography. that alone gives us a better investment profile. that could mean larger deals, but it is not necessarily the driver. we are not really headhunting elephant deals. we are headhunting growth and returns. and with this scale, we have a larger ability to look at deal

erik prince and joel zamel. nader reportedly told trump jr. that the crown princes were eager to help trump win and they had drawn up a multi million dollar proposal. times notes that the details behind who commissioned the proposal or whether it was executed z remain unclear but that a person with knowledge of the meeting said trump jr. quote responded approvingly. let's bring in former u.s. attorney and msnbc contributor, barbara mcquaid and john cipher. what do you make of this meeting? could don jr. be in trouble? >> yeah. you know, the facts always matter in these kinds of situations. it remineses me of the june 2016 meeting where we've got forei foreigners offering to assist in the election. there are campaign finance laws that make it illegal to slolici things of value from foreign nationals. it could include cash or also services and in-kind contributio contributions. there could be criminal activity. if there was some sort of quid pro quo, if you help me with the election we will benefit you later when he's president, there could be p

erik: as the 10 year treasury is at about 3.1% today, where do you figure? smart enough to know. erik: you are risk managing your balance sheet with that in mind. >> we have people doing that all the time. 3.5% imagine a 10 year at or 4% in the next 12 months? absolutely. we had a significant backup within the last three months, and if you believe that economic activity in the u.s. and the world will continue to increase, you can imagine rates getting in that range. erik: as rates get higher and the yield curve slows more possibly is it better for the bank? >> as long as the underlying economy is performing well. from our perspective, a positively slow yield curve and slightly higher rates are good for the company. they are good for the industry as long as underlying economic activity is still strong. francine: that was the wells fargo chief executive tim sloan. his comments, head of the minutes from the last fed meeting, where we might get some clues about the right path. let's keep the focus on the united states. still with us are megan's -- megan greene a

erik paulsen minnesota congressman, chairman of the joint economic committee.hery: coming up, president trump -- the plan as the most sweeping action in history to lower drug prices. health care investors are not concerned. we will talk about it with but carter -- bud carter next. ♪ ♪ shery: this is bloomberg markets: balance of power. david: we turn to mark crumpton with the first word news. >> a deadly school shooting outside of houston. the santa fe sheriff's department says between eight and 10 people killed at santa fe high school. most of them students. a man entered a classroom and opened fire. two people, believed to be students, were detained. president trump commented on the shooting on a prison reform building -- even in the white house. >> by administration will do everything to protect our students and secure our schools and keep weapons out of the hands of those who pose a threat. to themselves and to others. >> the u.n. human rights council has voted to open an inquiry into a deadly crackdown on protesters in gaza by israeli forces. in a special

food unilaterally raised caught erik's for instance it obviously would be against the deputy. china is moving in the opposite direction on tuesday beijing said it will be reducing import tariffs on cars and car parts in july from a current twenty five percent to fifteen percent that's good news for german car makers the chinese car market is more important to them now than the u.s. market. china is already the world's largest car market and its relevance is rising by twenty twenty one in three passenger cars sold globally will hit the roads in china. several car makers like b.m.w. and tesla have said they'll pass the tariff bonus on to consumers who can now look forward to lower prices. to me i think i can buy the luxury goods at lower prices such as cars or watches. wherever tariffs are going global trading waters could soon be whipped up into a huge storm. on her visit this week to china chancellor merkel got a glimpse of the future in the city of shenzhen a trip included a visit to i carbon x a startup which uses genetic data to develop apps and health care gadgets. china's

call erik prince at 1-800-evil."et's just step back here and consider how many times trump aides have lied or contradicted themselves in official testimony. when it comes to meetings with foreign governments during the campaign just last week the senate judiciary committee released transcripts of its meeting with don jr. and here's one portion of that testimony where he changed the story multiple times in just a few sentences. "what types of interactions were you aware of?" "trump campaign officials and russian government personnel? i was aware of none." "have you seen press reports about various meetings such as with ambassador kislyak?" "if i could scratch my last statement, yes i did read about that after the fact." "were you aware of those at the time they occurred? "i knew something, i believe there was a meeting there. i wasn't part of the meeting, but yeah, i believe i was aware that it occurred." i didn't know about it. i knew about it after the fact. i knew about it when it happened. man, trump nailed it whe

one was erik prince rare private security contractor who reportedly arranged the meeting.hen there was george nater reason an emma satisfactory, and the third was joel zam he will, an israeli social media specialist. remember, it's against the law for foreign governments or individuals to be involved in u.s. elections. but, it's still not clear what, if anything, these guys did for the campaign. and don junior's people are saying it was not anything at all. his lawyer tells nbc news prior to the 2016 election donald trump jr. recalls a meeting with erik prince, george nader and another information, they pitched mr. trump junior 0 on a social media platform or marketing tragic. he was not interested and that was the end of it. joining me now is jennifer. jennifer, even if that's the case, don junior wasn't interested, that was the end of it, case close. is this still legally significant? why does this matter? >> well, as you pointed out, it's illegal to take any foreign aid in a campaign. the question is why were those other folks there? i mean, i can see why mr. zamel was

he had contacts with erik prince and erik prince set up this meeting in august, 2016. now, as you just laid out, this was, in large part, a pitch to help the trump campaign. and. don jr. has said he was not interested. what is interesting is that after that meeting, george nader meets several times during -- before the election, during the transition and into the white house with senior advisors, mike flynn, steve bannon, jared kushner. so it wasn't the end of it for the trump campaign. >> is it clear that anything came out of this meeting? i know you outline how mr. na r paid mr. zamel, the israeli who was offering the social media campaign a large sum of money -- $2 million, described by one associate. this is after donald trump was elected. is there any indication that that was for a social media campaign to help the president. >> that's what we're still trying to figure out. as we say in the story, zamel had drawn up a proposal. his company had done some work on possible ways to help the trump campaign. there is no evidence at the time that that was carried out. ye

a ceo spoke in an exclusive with erik schatzker in tucson, arizona and they spoke about the next distresske a listen. >> given the impressive -- unprecedented amount of corporate issuance both on the bond side and on the loan side, by definition, will the next cycle be bigger than the last? or the mother of them all? >> it could be. it depends on how disruptive the capital flows are and where the global economies are. it is hard to say. that is just one piece. but why the financial crisis was so great was you just had an enormous constraint on globally -- liquidity. hopefully, we will not encounter that again and we will have a more normal environment so, i think, it is not simply a function of the size of the leveraged loan market. you need to look at what kinds of triggers there are with respect to the capital. you know, what kinds of financial covenants and the like. >> in recent years, it has been relatively isolated. health care and some technology. what other industries do you figure are vulnerable? >> there are some media companies like clear channel. been a very large source of ac

erik on his mother will continue to fight in order to sentence the policeman who killed her son it will not be easy to hand and for all those in selma today walking on this bridge is a way to continue the fight for justice and equality the fight that is unfortunate . necessary. the long litany of blunders and police abuse proves it the united states has still very far from having solved the issue with racism. the and. that is i was not happy about the. present the students all. hate. being that doesn't. it just tell you the other side of the knock on them and . by then i got a session on the nod that a. by then is a shift on. all our stuff and that's ok not inside and most is going on want. certainly not so it. don't you know so it was revealed to the pope multiple injuries among current america so for them to keep sophie hold most of the work but shows your your mercy on the phone to the bomb if you can perfectly possible sort of see so you're welcome to book in a moral sense of what month. hanumant out of nothing but i have hunted left off allowed me to see it how are they somethin th

erik >: what are you keeping a close eye on to know when the cycle has turned?foremost, what is a fundamental health in this country? are we growing from a gdp standpoint? are we creating jobs? that even in that environment, there's a lot of dislocation occurring because of technology and further reasons that can impact our customers. concernere is a lot of that the yield curve may invert as the fed raises short-term interest rates. in the past, it has presaged a recession. >> it certainly could invert. -- ift think it would be it inverted in the short-term in , because there was a concern about is having a recession next year or the year after that. i think it has much more to do with the fact, if you look around the world, long-term rates in europe and in japan in particular are more -- are much lower than here in the u.s. you can ask whether that makes sense from a return standpoint. that is what is keeping a ceiling a longer-term rates. you see the yield curve find out a little bit. treasury is 10-year at 3.1% today, where do you figure it piques? >> i'm not

let's begin with erik schatzker's conversation with david solomon on the topic of volatility. ♪ thinkility and bad volatility, but when i went say is that the environmentr was an where our clients were more active in shifting around portfolios in changing some of the assets they were holding or the positions they had. in that kind of environment, given the strength of the franchise, you start to form well. you look at our returns of the first quarter, clients are more active, and we will benefit. >> does that require more conviction on the client's part? you spent a lot of time traveling, meeting clients. what are they telling you in terms of their convictions? s different clients who get different convictions about different things. it could be conviction but it also could be landscape. there's no question that the first quarter had more of a sentiment that rates were moving, we were heading toward an environment where rates are moving, and that was getting people focused on shifting. in terms of getting around and talking to people, generally speaking, people are relatively -- they

spoke in his first ever tv interview with erik schatzker at the 2018 milken conference. what he said about trouble in the corporate market. >> i think rates being higher is more beneficial than most bond funds. portfolios --our as rates go up, we are getting a multiplier effect while we are going up because it is floating rate at a discount. it is worth saying that at this point in the cycle, i think structured products are a great place to invest in that if we continue with the sort of qe, central bank riven rally that we have seen since the crisis, structured products will participate at a lower level than the equity market but we should be able to generate reasonably good returns, even though they will lag the equity market. if the first quarter's volatility is something bigger, i think you will see a lot more trouble in the corporate market and the equity market than structured market -- products market. the consumer is in better shape than the corporate's. corporate's are more levered than precrisis, and structured products will not be the epicenter. people always f

as well as erik prince, the former head of the blackwater mercenary firm, the brother of betsy devos,volved in that meeting that we already knew about in the seychelles after the election. there's a lot of questions what came out of this meeting, what was offered, what was accepted, what wasn't. and the take-away in this increasingly baroque and entangled things that have coffee-eye of the special counsel robert mueller, the take-away suggests that may be suggestions that collusion with russia may not be the only thing. and those who may have offered to help the trump campaign may or may not have done something with regard to that offer but if it did, it would be illegal. >> charlie, i know this is all new. you may not have the answers. i just want to confirm, this is don junior in his meeting two emissaries, one from saudi arabia, from one an israeli corporation, is that how it was described? >> an israeli corporation with social media. the meeting seems to be reported that erik prince, the blackwater campaign founder a big republican donor and also involved in the seychelles meeting