erik: i'm erik schatzker. here's what we are watching. stocks open lower but they have hold back. the s&p 500 little changed on the week. as donald trump arrives to tour flood damage in louisiana, there are more changes in his campaign. losses are increasing and so are withdrawals. is it time for hedge funds to take more risk? scarlet: we are halfway through the u.s. trading day. stocks have come back off their lows, virtually hyman, when we take a look at where the index is standing, it is the first decline in 3 days. a weekly decline for the major averages. the nasdaq has just creeped into the green. it does have a lot of movers, a couple of companies that reported earnings sort of keeping it afloat. the dow and s&p remain in the red. on the plus side, one of the movers helping the nasdaq and nasdaq 100 is ross stores, that company coming out with earnings that beat estimates. that was almost double what analysts had been anticipating. those shares are up 4%. foot locker performing better than anticipated. i

he describes the current market conditions to erik schatzker. al yield spread has been between 350 and 550 basis points erik:. erik:we are now around 500. >> we are in the upper portion of the historic rate. historically, if you bought high-yield bonds in the upper portion of the range, you did quite well relative to treasuries. with theroblem is not relative return. one of my favorite sayings is you cannot eat relative return. the central banks have brought all interest rates so low that even if we have a nice spread on high-yield, it is still a low. erik: this shows the point you have been illustrating. again, let's remind everyone with interest rates almost at zero, interest rate that euro in aren negative, investors being incentivized to chase field. how does that investor prepare for calamity? it is very challenging today. we are in a low return world. those are the three most important words to remember. how do you go about doing your business in a low return world? you can settle for a low return or you can pursue a high return. how do you

with that was howard marks erik schatzker.carlet: coming up, we will be onaking with margot gabelli what he thinks is going on in the economy, the markets and politics. the conversation at 2:00 p.m. eastern time. scarlet: this is "bloomberg markets." matt: today's news, cycle seems to be all about foundation as the clinton foundation is under 's reald donald trump estate brokerage and ever seem to rely on shaky foundations before the housing collapse. .et's bring in sale kapoor thank you for joining us. let's kick off with donald trump. people click on any story with his name on it. you got a great one up today about how he had a mortgage brokerage in 2006. butously that is about idea what else was bad about his business in 2006? >> it's part of a string of stories that have come out about donald trump. he's had a very complicated and expensive business career -- and expansive business career. on hillary clinton's side, she is facing a different kind of issue with her charitable foundation, the clinton foundation, which has be

erik schatzker is now live in washington. . that is a clear take away from the minutes of the federal open market committee meeting that was just released here at the fed moments ago. the minutes revealed what appears to be a growing and increasingly frustrated contingent of fed officials who believe the central bank needs to raise rates, either now or very soon. of course we know from the statement back on july 27 that the president of the kansas city -- voted in a favor favor of

emily: muddy waters founder carson block with our very own erik schatzker.es the ethics of possibly tipping off hackers to this, there is the answer of why. earlier matt miller and scarlet fu asked justine bow to clarify her firm's business arrangement with muddy waters. >> what we are interested in achieving is mitigation. what you are interested in achieving is profitability for your company, right? you go to carson block and publish the short before going to saint jude. >> we think carson has a history of holding large companies accountable and that is why we are excited to partner with muddy waters. not only do we want saint jude to respond with urgency, we want the public to be aware. they have a right to know about the risks and we felt very strongly that st. jude medical were likely to shut this up and potentially do nothing about it once again. edsec is for profit. >> we are a research company. we incur a lot of expenses. this is not software only. of course we are looking to recover our costs but our motivations here are to hold st. so thatical acco

that was howard marks in an exclusive interview with erik schatzker. a chinese consortium and obscure telecommunications firm. we will tell you who is buying the media.net and why. this is bloomberg. ♪ david: this is a number markets. oliver: a group of chinese investors says it will pay $900 million for the add tech startup, media.net. company maybuy the not be as cut and dry as it seems. tell me about this company and what so interesting about this deal. what's interesting about the steel be on the price tag is a two-parter. cash iscash deal where going to media.net being bought by this consortium of chinese investors. is expected to close by the end of the year when they will sell to a telecommunications firm in china. because theyappen don't actually have a lot of cash on hand. they've had to raise outside investment, mostly from nintendo's chairman to make the first part of the transaction and close it later. reversehis is kind of a order. is this something we are going to see more of what the chinese companies on a bigger stage? ellen: definitely

emily: muddy waters founder carson block with erik schatzker there.esides the ethics of possibly tipping off hackers to this vulnerability, there is the ethical question of why. earlier, matt miller and scarlet fu asked the ceo to clarify her firm's business arrangement with muddy waters. >> what we are interested in achieving is mitigations. we also want the consumers -- >> critics are going to say they are interested in achieving profitability for you maximize profit by going to carson block and publishing this short, rather than going to saint jude first. that carsonieve has a track history of holding large companies accountable. and that is why we are excited to partner with muddy waters. not only do we want saint jude to be held accountable but to respond but we want the patients and the public to be aware. the public has a right to know. about the risks associated with this bit of technology. and we felt very strongly that st. jude medical were likely to act, shut this up and potentially do nothing. matt: medtch is for profit. this is a business

erik schatzker is now live in washington. erik: there is a battle over rates raging inside the federal reserve. that is a clear take away from the minutes of the federal open market committee meeting that was just released here at the fed moments ago. the minutes revealed what appears to be a growing and increasingly frustrated contingent of fed officials who believe the central bank needs to raise rates, either now or very soon. of course we know from the statement back on july 27 that the president of the kansas city -- voted in a favor favor of a 25 point basis increase. she was alone. the minutes showed that another fed official, presumably someone without a vote, also argued for a rate hike. several officials said that they couldn't afford to make -- to wait much longer because of the following reasons. the labor market is already at or near full employment. number two, the economic data already justified a rate hike. inflation could suddenly accelerate, forcing the fed to move too quickly. four, leaving rates where they

erik schatzker asked him how he felt about the latest vote. u have gone to battle with many a ceo over the years. i've taking a last year when you call for the breakup of aig. aig came back with another plan. today they continue to execute on the plan, selling united guaranty for $3.5 billion. carl: i am proud of them for that. he and i see i die about they should be doing it aig and i supported the recently when a few people were really wanting me to really go to battle. i think he takes it very seriously that he will do a lot more of this. and now there is a company, erik , that should do buybacks. thehey have more cash, stock is related to what they can buy it for. they do with that money around. there is no machinery they can buy. aig does not by machinery. there is a company that should do buybacks. each one is unique. i can't say every company should do it. that is a good one you just mentioned. i just do believe hopefully that peter should do buybacks. i'm not saying when and how is an investor. rates, youive me low get a minor of dollar

erik schatzker has an exclusive interview. >> 67% of the budget. on the deficit is another 7%. defense is another 13% or 14%. everyone talking about what they , why does nobody talk about it? the american public still wants more for less. it's not the american way. it's not the system that's failing, it's us that's failing. about thelk none ofnt of commerce, the 70 idea what they do. but the allocation of revenues across government are humongous. but someone has to take accountability of where is that budget. precisely why i asked, isn't this a call for donald trump to take leadership on entitlement reform? but there's not a word about entitlements. >> not yet. rulingu will see is the out of these pieces. it is the economic issues at the top of the list. -- isement reform has got not a politically accepted act. be at if you're going to destructor, pardon me for interrupting you. are going to be a disruptor, should you embrace and champion these admittedly unpopular ideas? >> absolutely. i think you will see it. it is also part of demand theing -- d

a soundbite from carl icahn who erik schatzker interviewed yesterday. listen to what he had to say and we will chat about it afterwards. >> zero interest and a lot of high back. think of it as a rich family , a lot of fun, we will sit around the pool, and we have got a good name. you keep doing it until you go broke. is happening in our economy. huge bubbles. vonnie: what you think? he summarizes the current backdrop really well. did a goodhe u.s. job where you do not typically see 4% real consumption growth and -9.7% investment. i think that is driving the low interest rates. you have awkward tension or a tug-of-war for investors in your option is almost 0% in cash and moderate returns and risks in bonds and equities. choosing between the least that alternative. from the peace that we wrote on monday, the picture, the short interest getting back to the lows, leaves the market vulnerable on the wall of worry has come down so the mark it is phone herbal to these risks but as pointed out, along the way, given low growth and given corporate stew not see th

one of the questions that erik schatzker to him was about giving away money and generating revenue.ems on the empathy -- economic plan that there were a lot of giveaways, but not out -- announcements on generating income. what will we hear to balance the books? >> the way the plan will balance the books, i'm not sure they will ever be exactly balanced. it's been a long time since they were. the plan calls for stimulating the economy and generating more revenue for government. by relieving the private sector burden. tax ratethe corporate from 35% to 15% will have a huge effect on our ability to export. now a company could reduce its profit margin by 20% and still make the same post tax profit. most don't pay that 35% rate. >> on an incremental basis they all do. some of them have deductions. boeing is probably our most successful exporter. the second thing is freeing up bondage that we are in from the dad trade agreements. our deficit in trade is over half $1 trillion a year. if we could cut that in half, that's $250 billion in year more for the economy and more productive -- tax pro

erik: i'm erik schatzker. here's what we are watching. stocks open lower but they have hold back. little changed on the week. as donald trump arrives to tour flood damage in louisiana, there are more changes in his campaign. losses are increasing and so are withdrawals. is it time for hedge funds to take more risk? scarlet: we are halfway through the u.s. trading day.

erik: i am erik schatzker. joe: and i am i am joe weisenthal. y hot looking day in new york. erik: positive earnings surprises in the latest season, but nevertheless, that has not stopped analysts from downgrading the estimates for profit. they predict no profit growth for 2016. at the same time, the s&p 500 is trading close to a record high. here is a chart that tells you everything you need to know. analysts keep cutting the profit estimates. now, as we know, for the index to remain at higher levels while the companies earn less, the multiple will need to expand. people will need to be prepared to pay ever more for every dollar of earnings. explains why there is focus on the multiple right now, because that is the only thing holding this up. we have heard for some time, we will really need to see the growth for stocks to hold up. but it has not been necessary yet. -- and the excuse was driven by the collapse, but that is starting to fade. we will see of the multiples expand or if the earnings pick up. erik: sales growth and earnings growth in e

erik schatzker has been covering this story in washington. you know i battle is the way it has been described to her that sounds dramatic for fed minutes but there was indeed a disagreement on the arrow reserve. k: i am tempted to describe the minutes as hot as the weather here in washington but that would be an overstatement. it is warm here and the minutes do not give us enough of a clue as to what the fed will do in september. as you point out, they do reveal a whole lot about what is going on inside the fed, and it is truly fascinating. there is a growing contingent and in -- increasingly frustrated contingent of officials. i use the word officials instead of policymakers deliberately inside the fed who clearly felt in july and presumably feel now that the fed needs to do something soon about interest rates. tighten monetary policy, raise interest rates, 25 basis point, prism, there may be some inside the fed that need to go even further than that. why do they feel that way? principally for four regions. the labor market -- reasons. the l

vonnie: -- shery ahn: carl icahn speaking exclusively with erik schatzker.ahead and today houses options in eight, our trade and frequent shares recent a share. this is bloomberg. ♪ shery ahn: it is time now or options in with julie hyman. julie: joining me today is david, a stock strategist joining me from out in chicago at this the boe. have stocks bouncing around at the highs here. we have seen a pattern where every time over the past month, a close at a record, they did the following day. is there anything we can take away from the last couple of days? away the metl take is at the technical aspect. my levels.ng and extension levels. i look at the viewer a low of 1810, then i look at the june highs ran around 21 and 20-ish, and a draw a retrace meant, and they happen to be where the support was. through thosens june highs, now i use in tension going in the direction in the first is 100 and 3.6 m which puts us at 2190 p.m. the s&p hundred. so i think a little bit of technical pressure at that level, that is what we're seeing, to push us on to the other sid

let's begin with howard marks to discuss low rates and high risk with our erik schatzker.challenging today. we are in a low return world. the three most important words to remember. doing yourgo about business in a low return world? you can settle for a low return with characteristic safety. or you can pursue a high return. how do you get a high return in a low return world? significanttake a risk. i am a professional. don't try this at home. i have been doing this for 38 years. weknow how to do it and what have done in the last five years is operate under a mantra -- move forward but with caution. a cautious investor and that means more caution than usual. we have amped up our caution and selectivity and skepticism. all of the things that we said were in short supply, we have increased. erik: oaktree is willing to sacrifice this short-term return? >> yes. normally, we goes will make a lower return than the average. but that is the price you pay for having a safer than average portfolio, which we think is important at this time because when we say we can't predict but we c

he is with erik schatzker this morning. rik: a pleasure to have you here this morning.t your candidate is not making it easy. tom: that is the good news and bad news. asset is's greatest that he is his own person and he creates his own agenda. us that areof trying to support him on the economic and business side are saying, terrific, we are where we are, let's move on from that. we are exhausted from the negativity on both sides. it is a choice between status quo -- hillary is very qualified, competent, she has proven that in various venues. president obama has done a good of a job as any individual can. he is well-meaning, there is no malice in his heart in trying to accomplish a difficult and impossible job. so let's move on from all the degreessm and find the that we can move as a group. i think everyone is ready to do that, including us. that is what we are advising donald to do. he will do it. he is better than all the negativism that is out there, and that is the message we are trying to get to him. the very least, you and i can move on to talk about the details o

erik schatzker joins us from washington on what to expect. a lot has happened since july meetings. should concern us most and the most recent jobs, 255,000 as months of july kim after the fed meeting on july 27. the minutes are always of interest but suddenly, and even hotter topic after bill dudley, the new york fed president, said yesterday, we are edging closer toward the point in time when it will be important -- appropriate, i think, to raise interest rates further. the most or second-most influential fed policy maker after fed chair janet yellen. statement, also bonds. that is why we want to go back to what the fed was thinking. the reason it has not raised interest rates over the first six months of the year. thelso talks about jobs in month of june as strong, economic activity is moderate, and inflation as low and inflation expectations as low. 50%than: we referenced a the moreybe significant point is it is a 24% chance of -- since september. why do you think that is? >> dudley was not telling people they should necessarily expect an interest rate hike in september. they co

i want to cross over to erik schatzker who is with howard marks for a bloomberg exclusive .oul erik: howard. last time we talked, i tried my damnedest to talk to you about politics and you murdered and now you write a whole memo about politics. how may times have you touched on politics? howard: i think this is the second. erik: why now? howard: my family and i concluded that this is the time to speak up. the stakes are too high for me to remain that ivory tower professor. extremely important to speak up as to who will be our next president. erik: why? wire the stakes so high? why is it important for you to say something? howard: as president obama said in a recent speech, i would go further. all the people who ran for president during my lifetime, i believe, were basically competent. while i had a preference, it would not have killed me to have the other guy c. this time, i do not think that both candidates are equally competent and up to the job. i think it is very important that we make the right choice. erik: it sounds as though you have effectively cast your vote before november

tom barrack spoke exclusively to erik schatzker earlier today. that he is his own person and he creates his own agenda. i think all of us are trying to support him on the economic business site are saying terrific, we are where we are, let's move off of that. we are tired and exhausted from negativism on both sides. it is a choice just between status quo -- hillary is very qualified, competent, she has proven that in various venues. president obama has done a good -- as good a job as any individual can. there is no malice in his heart in trying to accomplish it. a difficult and impossible job. let's move on from the negativism and find the little degrees that we can move as a group. i think everybody is ready to do that. including us. that is what we are advising donald to do, he will do it. he is better than all the negativism that is out there. that is the message we are trying to give to him. erik: tom, the very least you and i can move on for a moment and talk about the details of his economic plan. both candidates say they will reject the tr

. ♪ avtk"0 erik: live, i'm erik schatzker. scarlet: i am scarlet fu.crumpton has more from the newsroom. mark: thank you. the drought in california could cause the agricultural sector about 550 million dollars this year according to a study by researchers at the university of caliph ornette davis. will see say the state a loss of more than 1800 farm jobs and that still is over effects from agriculture and other sectors are considered. and 4700 jobs. in syria, the russian military is ready to back up a united toions call for a cease-fire allow humanitarian aid. footage on the city posse's children, a stunned and bloody little boy being rescued from a partially building. a string of bombings targeting the country posse's security forces. liftast 11 people are dead 200 others wounded. two of the attacks hit the eastern part of the country. a military vehicle carrying soldiers in the southeast. ifis the sale of a lifetime you are a student of world war ii. normandy museum in france is selling its entire collection, used on d-dayis in 1944. the tank may bri

erik schatzker is standing by with this exclusive interview. erik: thank you very much.rnoon to you and good afternoon to our television viewers. and bloomberg radio listeners worldwide. quite to have you. >> thank you. begin with this -- last week, you were on twitter talking about donald trump's economic plan and you were subsequently on twitter to recommended it the solution to america's economy. yesterday, you were sparring with mark driven on twitter about the presidential campaign. -- with mark cuban on twitter about the presidential campaign and now understand you want to start a super pac that would be pro-trump. does this mean carl icahn is about to throw his weight and money around in this presidential campaign? >> i think i made it pretty clear all through the campaign from the beginning that i think trump's policies are possibly the only thing that will save us from going down this decline we are in on activity which is important in this country. i really think we have had a tremendous decline in capital spending which everybody knows. i am not making that up

going to erik schatzker for more. you thisl, good to see afternoon. rate than just a moment. i want to ask you about the news. brazil senate just ousted the president. does this change anything for you? does brazilian sovereign or even equity looked even more attractive with this development? i think the market will view this not as an all clear sign, but a sign that things will get better. hard to believe they will get worse. from a personal standpoint, i do an think the soul is investment grade credit. i think they have scores of liability, many of which are related to pensions that allow citizens to retire with nearly full benefits. those problems, as well as the problems of a commodity-producing country with , all ofinfrastructure these problems in combination to has a lot toazil do in terms of a tough road ahead, and certainly not all clear by any means. let's talk about the all the trough, negative interest rates in the developed world. negative rates and asset purchases have passed out. inflating asset bubbles and not producing growth. the ques

he spoke with erik schatzker in san francisco. >> i want to raise an ethical question.mation you are publicizing here could get somebody hurt, possibly killed. does that concern you? it concerns me. >> we obviously were very concerned about this information , and we have taken a lot of time to figure out what is something we can publicize and what we cannot publicize. argument,ay make the if you kept your mouth shut, everybody would be safer, but when they really? world. a dangerous if you believe it is possible state actors are aware of this already, we have to be more concerned with nonstate actors, but we believe the balance of interest is clearly in informing people of the risks and holding the company accountable so that something can be done. i do not believe that sticking one's head in the sand and pretending a problem does not exist and hoping nothing goes wrong, i don't believe that is the ethical course of action ever. >> why do it in a public form as opposed to a private channel? >> we don't have confidence that st. jude would do anything to make patients awa

joining us is erik schatzker. and a member of donald trump's economic advisory council along with steve roth and john paulson, of course. we will be talking about tron's economic plan and i've many axkstions for tom barr like how people can focus on the economic plan when donald is accusing the president of founding isis. why is there no entitlement reform given that it is a ticking time bomb? also, how would the trump administration balance the budget with a norma's tax cuts for individuals and businesses and little spelled out in the way of new revenue? yes, he wants to close the carried interest loophole, but he proposes repatriated profits at a 10% tax rate. neither of them will come close to making up the trillions of dollars in lost revenue. david: to great questions. he has dealt with donald trump before. he is a friend and has done business with them. i wonder whether he knows this is the actual plan with donald trump. mr. trump has been known to change his position from time to time as you said and he has