erik: look at what's happening to the currency. mexicans company so nominated that is going to be suffering. potential restructuring opportunities. an investment bank. erik: we have a good position in mexico and i think the opportunities -- huw: we're a strong believer the latin region will get more interlinked. mexico'sspeculate going to be more interested in developing more trading links given it's over dependent -- over independent from the united states. erik: slim told the americans -- hugh jenkins, good to see you. managing partner at btg arch rock -- vonnie: thank you for that from the world economic forum in dos, --tzerland area wilbur ross nominated to serve as commerce secretary being question right now before the senate commerce committee. that's the senate committee on commerce in transportation. he just said he is not anti-trade, that he has pro trade. saint -- we cannot afford trade that is inherently bad for american workers and companies. you can watch the hearing now. mark: later today two events caring live on blo

you looked at lyle menendez, erik menendez, you either saw cynical, sinister, vicious killers or you a jury trial. it's only going to take one juror to hang this up. can we get all 12? >> the court declares a mistrial, and that completes this hearing. >> jurors have told the jury they are unable to reach a verdict. hopelessly deadlocked. >> the seven women, five men panel sat through six months of trial, deliberated for 25 days. >> the general public was screaming on talk radio, they said, "the brothers admitted they did it. what's wrong with those jurors? what's wrong with this judge? why couldn't they get a conviction?" >> we are going to be trying the case a second time. >> round two, second time around with this case, it was a different ball game for a lot of reasons. number one, the judge banned cameras in the courtroom. and the judge, to some degree, said, certain defense evidence, i'm just not going to allow it. >> so, he reversed all his evidence rulings, and the jurors never heard anything about the family history, and several jurors that i interviewed after the second trial

erik: looks like a stock market listing makes the most sense. guest: yes.rik: you have acquired a small german shipping company. what is -- what are the prospects for consolidation in the container business in 2017, how does a look right now? container rates have been rising. guest: we were surprised by how much the sector consolidated last year. of sixa total transactions being announced during the year. around 16to 2016 with global carriers that met up and about seven were announced to either be merged or acquired through the year. erik: what is your appetite for consolidation question mark guest: we have to [indiscernible] we expect to have regulatory approval. eerik: that will occupy your time. is out of the market until next year. what is the outlook for container rates? guest: container rates have gone up basically since march of last year. war, a globalice price war that started in march of 2015. of 2016med out in march and now they have been rising quite significantly. cannot continue, cannot keep rising? guest: our business model is subject to supp

erik: are you getting out of macro investors what you want? >> if you looke equity business, we are getting what we want. we are positioned. we have driven the cost structure down. erik: that is the one thing you can control. >> we continue to do that. profits went up. costs went down, revenue was up a little bit. erik: that will happen again in 2017? another 5% of staff? >> i don't -- we don't get into the forward projections. their job is to continue to bring down expenses. erik: you have probably cut worn expenses than anybody in the business since you have been ceo. among the things you are working on, was still needs to be done when it comes to cutting costs? what moves the dial in a big way? >> it is a bunch of little things. we have a program we called semper fi and improve. last year we did a thousand ideas for $400 million in annual savings. if there was an easy idea worth half $1 billion, we would have done it. this is working hard. you are taking artificial intelligence applications into the sales process to make it more efficient. we are continui

erik: what are some of those places, rules? david: if you lookall and midsize banks, probably opportunity to increase lending. there will be some debate for that. i think these are things that should be looked at. i am sure to the degree that people are focused on our regulatory framework will be able to look at some of these things to see where is improvement. i am not surprised at this point people are going back to taking another look. erik: if the rule were rescinded tomorrow, what would goldman go back to doing? good at adapting to whatever the rules in the regulatory environment are. to the degree that was a change in the regulation in some way, we obviously adapt so we would be in position to serve our clients the best we could. rule one has to ask if the , is that what you would do if it went no longer exist? david: if it would change the way we operate with the visibly of clients come with us the way we look at all these things. erik: will you and harvey what will you and harvey schwartz do differently than gary did? has lloyd and the bo

for over 20 years she cared for and loved erik and his sister, looked after his whole family. am today, because this woman literally raised me from when i was six months old -- singing to me, dancing with me, wiping away my tears, cooking for me and making me laugh at every turn. unfortunately like so many filipinos, her story is not all smiles and love. she had to choose a life away from her daughter and thousands of miles from her family. there are literally thousands of people around the world -- thousands of people around the world, me included, who have been influenced by her endless kindness and love." filipinos give. of themselves, of their time, their money, their love to others. they do and continue to do what needs to be done to survive. ♪ ♪ edelweiss, edelweiss every morning i greet you ♪ ♪ small and white clean and bright bless my homeland forever ♪ ♪ blossom of snow may you bloom and grow bloom and grow forever ♪ ♪ edelweiss, edelweiss bless my homeland forever ♪ ♪ ♪ ♪ >> aurora: oh my gosh. oh this is from albert. oh, my gosh. wow! oh, my gosh! i really hope you e

vonnie: that was the cio of calpers speaking with erik schatzker. a looke close. mark: we are looking at the ftse . we're up to the 17 consecutive day of record. the closes next. ♪ mark: 11:00 a.m. in new york, midnight in hong kong. 30 minutes left in the trading day in europe. i am mark barton. vonnie: i am vonnie quinn in new york. marketsbloomberg european close. mark: we are going to take you from washington to london, we will cover stories out of germany and china. here is what we are watching. epa accusing chrysler of cheating on diesel emissions test. shares are tumbling in the u.s. and milan. vonnie: further steps to appeal the affordable care act after a senate vote. the latest on what stays and what goes as it moves to the house. unwinding ortrain a pause?ors taking u.s. stocks after yesterday's trump news conference. mark:

the company recent quarter looks to be the best in three years. alison: thank you. erik smith is in the traffic center with a look at the ride hope. -- ride home. erik? erik: thank you. a tough ride with the wet roadways. everything is looking slow out there for sure. after the pentagon, the right shoulder is blocked for the crash scene. still plenty of delays beyond that to duke street. you will see volume for the southbound ride as well. 359 northbound in the city past the 14th street bridge, that is that is all messy. looking at the capital beltway, past route 4. emergency roadwork is blocking two left lanes. this is heading to forestville. that is all from the traffic center for now. back to you. michelle: thank you. we want to give you another angle of what is happening on the roads. quick check mobiletrak7. passing through oxon hill heading to landover on the beltway. we continue to monitor the road conditions. we will show you in real time what it looks like throughout the evening on abc7. alison: so if you want to complain about the rain and the wind is think abo

when there is disagreement, we look special point of view. erik: what do you disagree right now?gration is one that i worry about at least. i wouldn't say i know enough to say we disagree, but i think the american dream and the notion of the melting pot has caused the best and brightest to come to the united states a given us a lot of innovation. that's a competitive advantage to the country. that is one that i would single out. erik: anything else that the president-elect has said that concerns you personally or professionally? paul: nobody wants a trade war, so we want to make sure that in the cases, for example, china where we have gotten through difficulties, we are trying to be a liaison and maybe add to helping the situation out, helping to promote understanding. i think that's an opportunity for us. erik: to the degree you can do that, who do you reach out specifically in the incoming administration to help, to give qualcomm i voice where you think you can be helpful? paul: i think there's a broad range. erik: is it wilbur ross? paul: no, it's a broad range of people withi

looking into. we are on the conservative side. eriks data 55, the average -- >> we would definitely have a 50% -- erik: reduction in the deficit. yousef: still to come, how to tackle one of the biggest challenges facing the middle east on the unemployment scene. a perspective from one of the biggest businessmen in kuwait. stay tuned. this is bloomberg. ♪ ♪ tracy: welcome back. you are watching "bloomberg markets: middle east." i am tracy alloway. yousef: and i am yousef gamal el-din. we are looking at duty-free at the airports. how will a strengthening dollar and a more protectionist america affect this. joining us is the ceo of duty-free. thank you for coming. >> good morning. yousef: let's kick off with the big news, donald trump, how it will cloud the output of business. a more protectionist world that could derail the growth target that you and to buy has for more -- --ai has come up or more >> it depends on what mr. trump's policies do. for the moment and the past couple of years, the u.s. dollar andbeen strong and the euro sterli

. >> you'll be looking at expansion into asia and other parts of the world. erikmberg. ♪ ♪ .rik: this is "bloomberg best " i am erik schatzker. let's take a look at the donald trump transition starting with the nomination of a new leader to the securities and exchange commission. >> has been donald trump picking a long time sullivan & cromwell partner. the president-elect said he is a highly talented expert on financial and regulatory law. he will ensure that our financial institutions can thrive while playing by the rules. it sounds like donald trump picked the ultimate wall street insider. hethere is no doubt that certainly has the ball strike -- he has been wall street bona fide over the years. he has represented the biggest names in private equity funds and hedge funds. you are really talking about someone who has spent well over a decade representing some of the firms that ultimately are under the regulatory oversight of the sec. the battle over the fate for the affordable care act is underway. the opening salvo is underway on capitol hill. ine pence earlier

looking at. let's take you to erik schatzker with today's top headline. feeling theis spotlight.g his first address ever to defend the global economic order. and taking a backhanded swipe at donald trump. he said no one is a winner and a trade war. the president-elect makes news s the president-elect will likely do away with the tpp trade deal. john

it should be something that the industry needs to look into. erikdoes that level of engagement exist now? >> no. it is years away. examples from other companies and i'm not sure it has been designed. to put together because you have different actors coming along. meantime, can you stand up to the pharmacy benefit managers? what can you do to fight back in the meantime? >> we have done very well. whatever we have done, it is the price increase. in line with a concerted effort of engagement. we are very careful on price. it is very important in your question and push back is very fair. julie: that was the ceo of biogenic at the health conference in san francisco. scarlet: china factory prices rising at the fastest rate in more than five years. we look at how this affects direct investment. from new york, this is bloomberg. ♪ julie: china's factory prices rose at the fastest pace in more than five years in december. this as a factory to the world swings to global inflation to another potential force pushing prices higher. data rippled across markets. c

look at this, this is live television. eriktzerland, and when we come back, more with john. ♪ erik: back to our coverage of the world annual economic dollars meeting forum and we are here with our guest, john studzinski, ready to go. john, we were talking about whether coming to davos is a risk. what do you say? john: it's never a risk to be part of a discussion. come on, you know that. dealing with people one on one, face to face. at what point -- why are you worrying about your reputation, why is francine? people are here engaging in conversation. you are right, the 99% is not here. erik: should they be? john: some subset of them. plus close created this wonderful group of young global leaders. i would love to see more of them active on a number of the big panels and things, because i would like to get their perspective. it was a wonderful panel today and it would have been nice to get a young economist on their who might have had a different perspective on these issues. the person that comes to davos that believes in anti-re

erik: how? i've lookedop & shop in the united is more than once and there's a lot of stuff that is not very healthy. dick: that is correct. what we have implemented is, we now have a company, hannaford, which is using guiding stars. you help customers to navigate through the store. so, offer more in the fresh area. there you can start helping your customers. that is what you like to do. we still want to give choice to our customers. erik: thank you very much. dick boer, ceo of ahold delhaize. back to you. thanks veryna: much. up next, we will be back out to the snow to speak to the oecd secretary-general, angel gurria, joining erik and the team endeavors. this is bloomberg. ♪ manus: they are getting ready in washington. beautiful picture of the capital building. it is inauguration day. the 45th president of the united states of america, donald trump, will be sworn in later today. juliette saly is standing by with a business flash. juliette: thank you. china's growth accelerated for the first time in two yea

erik brynjolfsson -- look at a couple of summers ago, erik brynjolfsson with m.i.t..up, and timely conversation, particularly off the conversation of theresa may. jacob frenkel on currency wars, a jacob frenkel on international trade. from the meetings of the world economic forum in davos, this is bloomberg. ♪ >> if you need support, i think the government will provide it. i don't think france is going to get rid of some of its major banks. an electric moment with david rubenstein, kenneth rogoff, and john cryan. mr. rubenstein really coming to cryan.ens defense of john that is a political backdrop in davos. tom keene and francine lacqua, as always. francine: you know what struck me? john cryan was talking about the complexities of making banks simpler. i think there is a race to do that. there was great insight to get us started with madame lagarde and larry summers coming up in a little bit. here is first word news with taylor riggs. taylor: we are sticking with you in davos. xi jinping is calling for free trade in his first appearance in davos. an obvious message t

erik and i used to come up here all the time, this is about eight to nine minutes from our high school. and we used to do some writing up here and look valley. erik and i, we just hit it off from the beginning. we both were chess players, we kind of outside the box in school. we were in our rebellious phase, independent phase of 16, 17 years old. and we just had something that clicked. he was a little bit different, he was pretty ostentatious and he was flamboyant, but well-liked. he would do things like walk into a store and if somebody wouldn't immediately help him, he would jump up on a table and start throwing shoes and say, "i'm here to buy something." he made himself known and he was a presence. and he wanted what he wanted and found a way to get it. >> erik and lyle menendez kept screwing up. they were hanging out with a group of friends that began doing what was called hot prowls, in which they would sneak into a house when nobody was there and think about committing a burglary. but it was just a group of suburban kids that were, you know, dreaming about the fantasy of committing a crime. at one point, lyle menendez actually

erik: what's the next currency? >> probably sterling. japanese yen. the g4 is what we are looking at. ors take a lighter touch approach with the banks under the tribe administration, what happens? i was at a conference in sacrament -- incense -- in san francisco where they say banks need more leeway to make markets. doesn't thatt, present a risk to your business and its growth potential? certain things present rest to other things. but we have a high degree of confidence in one key premise. i talk to customers and investors all the time certain e not met a single one who wants to go backward to less transparency. vonnie: that was paul hamill. with the u.s.up, border tax introduced by the president-elect, will it be hugely detrimental? this is bloomberg. ♪ david: this is bloomberg markets. vonnie: let's head over to julie hyman. at him asare looking we see the equity fat -- equity rally fade, what are some of the signs we are seeing that folks are getting worried in the market or that it's too complacent here? one of the things we are looking at is short interest versus float. the ratio

erik: and it applies equally to all financial buyers? i was lookingt a list of private equity transactions and the average multiple was 10 times ebn done -- 10 itda. that's not something your industry is used to doing. is hard to find obvious value. energy in the first half of last year, you could find some obvious value if you believed longer dated energy prices would revert. it was a bet on oil prices and we were fortunate to transact in that moment with about $3 billion capital deployed. general, we live in a very low cost of capital world. multiple,0 forward pe the number of months we have spent in that territory and the last couple of decades is not very long. our major commitment to our investors is to preserve capital. we believe we have to build a portfolio that defends against the rise in global capital, so that makes is quite selective. still able to find things. we only make 15 investments a year and we are finding ways to transact. last year, we invested $6 billion in our corporate private equity fund. erik: if things the way they appear r

erik nielsen. thank you both for being on. when you lookto angela merkel, and if she gets weakened a little bit more, what does it mean for europe holding together? we go back to crisis after crisis. three years now, are we going to have the best number? mij: there is no question that angela merkel is going to win, the best question is what is the leadership on the other side? we got about the electoral calendar. greecee france, italy, -- the interesting thing is that these elections also have substantial negotiations that are not getting resolved. deal, brexit, the future of europe. a very challenging calendar. and i don't think angela merkel is going to be in a position to address those challenges in an effective way. francine: what is that one thing that we are underestimating? there is very little chance of power. what if she were to be in power? pen?marine le her own policy platform speaks about a parallel currency. if she were to win, that might 90 program. an es m that is unlikely. the things she stands for spooks investors. outside

and so, that whole aspect, not particularly vis-a-vis china is being looked at by the new government. erik singled out china. do you worry that if he were to pursue an aggressive policy on trade with the chinese that american companies would lose some of what they had in china? the market access? >> i was at a lunch yesterday and talk to the president of china, and it was a good conversation. erik: what did he say? >> he was very positive on the long-term relationship between the countries. basically said -- erik: he told you this? >> that is what i just said. erik: i'm just making sure people understand. >> yes, they understand. he said he was ready to engage in the time was right and the u.s. had figured out what his positions were, and that they have gone through many u.s. administrations with many chinese administrations, and he was anticipating being able to work things out as are the u.s., despite the kind of language that from time to time, his -- he has employed. it is early days, so multiplying things that get said to create enormous anxiety is overdone. ahead, much more from davo

if you bring it down per capita and in hours worked, france looks fine. >> thank you so much. we will be back with eriking up on bloomberg daybreak: americas, a conversation with the former u.s. treasury secretary. larry summers. look for that at 7:30 a.m. we had an explosive conversation with dr. summers in that ho -- in davos. ♪ surveillance"g worldwide. so much for you across five hours of "surveillance" today. to catch up with the monday news, here is taylor riggs. taylor: protesters staged demonstrations at several airports over president trump's nominally middle east countries. judges have blocked part of the judge's orders. buffettes and warren spoke about the importance of immigration. was built byry immigrants. you can take them from any country you want. they have come here and found something that unleashed the potential of the place -- the place i love did not. taylor: you can watch that interview on charlie rose at 6:00 and 10:00 p.m. eastern on bloomberg tv. two people have been arrested after gunmen shot up a mosque in quebec. six people were killed and another eight wounded. act oftrude

aspect, notwhole just with china, is being looked at by the new government. erikhe has singled out china. were toorry that if he pursue an aggressive policy on trade with the chinese that american companies would lose some of what they've had in china? market access like companies like years have had? >> i was at lunch yesterday and talked to the president of china. it was a good conversation. erik: what did he say? was very positive on a long-term relationship between the countries. erik: the president told you this? >> that's what i just said. erik: i'm just making sure everybody understands. >> yes, they understand. to engage when the and the u.s.t figured out what its positions were. and that they've gone through many u.s. administrations with many chinese administrations. he was anticipating being able to work things out. u.s., despite the kinds of language that, from time to time, is employed. it's early days, erik. multiply the things that get said to create enormous anxiety. it's a little overdone. still ahead on "bloomberg best." much more from doubt us.

erik: and bridgewater scours the globe looking for attractive things? ray: yeah.ight now it is a time for uncertainty, time for a relatively lower profile. you know, there are possibilities. i don't want to get into our market positions, but i think that between now and six months from now we are going to learn a lot. there are political conflict issues. let's say the trump policy, as it regards china, it is an adjusting question mark because i think politics in global affairs will have a bigger effect than it normally has. so, let's say the china think -- to take the two china policy and make it such a public issue would not seem to be a good move. in other words, normally negotiations begin -- exist behind the scenes. in a political normal year, you bring that to the four for both sides. face -- donald trump's down, how will this be negotiated? from an outsider's point of view, that would not look like a smart move. is that a smart move? it is hard to figure that it is. the politics of it, the conflicts of it, will play a much greater role than traditionally pol

first.t helps to be >> i would not say no to that weird but that is clearly not what we're looking for. eriket's talk about the concept of pricing. what is the sweet spot? high enough to reward you for the to cover theand sheer cost of development, but low enough not to make a living boy in congress. collects he started with difficult questions. we're not ready yet to discuss at this stage. we have to forgive the fda, we need to release all the six-month data. this is about rewarding for innovation. i would say that right now, it is it it too early to discuss allbut we would make sure patients that need this therapy would be able to receive it. commitment.ersonal inhibitorspoint offer a benchmark or a reference point? understand -- you will not be successful. inhibitors are important. given routinely on the schedule for months and sometimes for years. we are dealing with a disrupt of that you give he a patient therapy and infusion and the patient waits and it is a new paradigm. we need to educate the payers, what -- which is what we have it we have met with all of them. they are interested t

erik: do i interpret lumpy as inconsistent? blair: we need to know more. yeah. i think inconsistent -- maybe your word. i lookt it as you need a body of deals to go through the pipeline to figure out where we really stand. erik: will the president-elect, once he is in office, bully companies into doing different kinds of deals, the way he has started with offshore and trade, for example? blair: i think it is very difficult for anyone outside the company to bully someone into doing something. we saw it with the financial crisis, highly unusual. erik: what about what we have seen with ford and toyota an -- toyota? blair: that is not m and a. matters,y, language and in some ways it becomes self-enforcing. erik: so it is difficult to bully companies on deals why? blair: because you are spending shareholder capital, and you want to do something that is smart strategically for the long-term, and make sense short-term. scarlet: that was center view partners cofounder blair efron speaking with erik schatzker. banks rally following results. 4:00 p.m.,rgo -- at wells fargo cfo john shrewsberry will join us from san fra

it depends on how we budget how do we price the barrel, $40 to $60 would be something worth looking into. erikr arguments sake, if it stayed at $55? >> we would definitely have a 50% -- erik: reduction in the budget deficit. what price does it take to balance the budget? towe calculate transferring the future generation fund, even though we are in deficit. erik: you are still investing in the future. same amount? >> it is 10% of whatever we do. erik: you were not fiddle with that 10%? >> we will stick to it. erik: even though it is causing short-term pain. >> we feel it is important to do so. erik: over the longer term, what's the right price for oil? >> right price would be a price where producers and consumers agreed. erik: exactly. what do you think that should be? say long run, to but there is a consensus on $60, $60 to 65 dollars would be easy to digest from both sides. get oilwill it take to from $55 to $65, more cuts? >> commitments to the agreement. erik: that is the first thing. once they see the producers are committed, the oil price will automatically rise? >> that is my view. erik:

they want an advocate in chief, someone looking out for their interest. erikthe tpp, and what will he replace it with? anthony: i do not know the answer specifically, i am not working on that policy, but my guess is the tpp will be done away with and there will be some other trade agreement. it probably won't look like the tpp. scarlet: that was anthony scaramucci. mark halperin and jon hyman will be looking at the issues facing the incoming truck -- trump administration. they will also be part of the special inauguration day coverage friday. you can catch that some of casting on bloomberg tv and radio. up, bank stocks are doing very poorly today after morgan stanley reported earnings, even though it blew past estimates. we'll talk about what is ahead for the industry up next. this is bloomberg. ♪ scarlet: this is bloomberg markets. i am scarlet fu. oliver: and i am oliver renick. it is time for the bloomberg business flash. breaking news on qualcomm -- the federal trade commission has filed a suit against the chipmaker in a san jose court, sewing for unlawful

take a look at what is going on with traffic. erik smith? erik: thank you, steve. it will be a little busy out there. but not too bad for friday afternoon. this is in to bethesda for north 270 past georgetown road. a lot of volume to 270 merge. once you are 270 itself it's not as bad. 59 in virginia, southbound over the occoquan, that is a tough stretch. typical delay for the bottleneck here. overall a shorter delay as well. heading to the capital beltway, outer loop at van dorn on the right. that is still a big mess as you head to the wilson bridge. at the start of the bridge, you can still see some of the delay. it's much better once you are past the wilson bridge from the earlier debris at 210 officially all gone. the outer loop out of maryland to georgetown pike. that is still a tough drive. the inner loop is not too bad. inner loop does slow down past connecticut avenue heading to georgia avenue and silver spring. that is all from the traffic desk for now. don't go anywhere. we will be back tomorrow's the day besides video games. every day is