r.i.m erik schatzker. i am erik schatzker. this is "bloomberg best."r weekly review of the most important business news analysis and interviews from bloomberg television around the world. the week began with positive data from great britain. in a report that challenges the expectation that brexit will be disastrous for the u.k. economy. ♪ >> the u.k. services pmi numbers have just been released. a blockbuster number. we went from 47.4 to the 52.9. composite is 53.6. checking the manufacturing pmi , which was the biggest rise ever paid you have this gauge of u.k. services rising the most on record as well. >> i just don't know if i have learned anything at all. , the size of the fall we saw starting in june, nita lowey -- immediately after the referendum vote, followed by a bigger balance now, where does that leave me? that tells me the effects of leaving the referendum will come through after a long time frame of uncertainty while we try to hash out a deal. and we should not expect anything that happens in the first three or four months to tell us that

yen, there it is moving 100.64, roughly, coming down to 150. ,nd then a question in the room erik schatzker. i sat here and watched the yen move off your question. what was it like to see jerry allen struggle over your observations on productivity? erik: they were her observations. to recap, i and others were having difficulty understanding in the space of four years, to a fed fund targeted to 75-3, while the fastest the fed says the economy will grow his 2%. the central bank expects gdp growth of 1.8%. where is the inflation that a tightening of 250 basis points? we talk about the issue of productivity. janet yellen said that is the problem. it will remain low and it is a huge problem for living standards and the enormous challenges for political leaders. combined with low productivity, she says she is treating 180,000 a month and it will create pressure. tom: i wish you had been here. mike mckee, you are in the press conference whatever ago the phrase pre-much the same question as. did. what is the difference now? what is the difference now versus erik schatzker asking somewhat the same q

i am erik schatzker.his is bloomberg best. your weekly review of the most important business news analysis and interviews from bloomberg television around the world. with positive data from great britain. in a report that challenges the expectation that brexit will be disastrous for the u.k. economy. the u.k. services pmi numbers have just been released. a blockbuster number. the composite is 53.6. checking the manufacturing pmi with the biggest rise ever. just don't know if i have learned anything at all. immediately after the referendum -- the june, followed by effects of leaving the referendum will come through after a long time frame of uncertainty while we try to hash out a deal. we should not expect anything for the next few months. >> should we tweaked our 4 -- should we tweak our forecast. and be pretty much flat in the fourth quarter. >> it does not feel like the economy will be heading into negative territory in the third quarter. we will have to get away from the month to month volatility. we a

mike: bringing in erik schatzker. the first timek: since december the 2014 that three of the voting members defended the majority. also, rosengren first hawkish defense. non-surprise only in that group for free. blog.king at the top live planning to raise rates very soon. what would have to happen for the fed to consider raising rates in november? i think that is a very long shot for the reason we described. anythingas not done yet the sheer. they can persuade themselves to wait. the dissent, the language. they think they have to hike at least once this year, and they will. mike: we are members looking at the raise -- rates rising in december. yet the sheer. they can persuade themselves to wait. the dissent, the languagethe oue fomc would be jim the word. you can see the long range, the has come down gets again. now it is 2.75%. still not where the markets are. it has come down. tom: let's call joe baca forth. here is where we are now. here is where we were back in june. now we go to where we are now. you can see the

we have more of our exclusive interview with erik schatzker.is bloomberg. ♪ markets.s is bloomberg i matt miller. the president of brazil is confident lawmakers will approve a cap on government spending by the end of the year. took office after the impeachment of the former president. he spoke with erik schatzker about the brazilian economy and how long it will take to eliminate the budget deficit. erik: mr. president, you want to cap government spending in real terms as well as make social security, call it more restrictive. these are too ambitious report -- proposals that require constitutional change and they are not without opposition. .et's talk about a timeline realistically, when will these two important returns -- reforms be passed into law? president temer: these are too difficult reforms. i acknowledge that, but they are essential. because they are essential, i believe we will pass this congress.tter in are feeling the government spending that may be renewed based on the previous years inflation. i am absolutely certain we will be abl

lack of physical action will lead to a global market selloff could he spoke earlier today with erik schatzkernew york. if we have more of the same for the next year, the markets are going quite a bit lower. quite a bit means what? larry: 15%. erik: if we have more of this unconventional policy -- larry: and we see aberrant politically with a referendum in europe -- erik: with fringe parties. larry: but if you have more political certainty -- let's say in our country up to november whoever wins the presidency focuses on fiscal policy, if the prime minister of the u.k. focuses as she understands brexit to be a big problem on more fiscal policies, you could the ways of reigniting economic conditions of the world. point,at this pivot which is quite binary. my worry is the market is more binary. erik: in other words, we don't bump along with the s&p 500. is either down 15% -- larry: were up 10. erik: the pivot point happens when? larry: welcome i don't think there's ever one pivot point. erik: there is going to be more certainty regardless of whoever wins the election -- larry: but hopefully with

he spoke with erik schatzker from the leaders circle in new york. i think-- mr. political uncertainty is getting larger. uncertainty around brexit is only getting worse. i think we have witnessed -- we have not witnessed erik: aren't the markets telling us brexit is not a big deal? mr. fink: i think, then, the market is not focusing on brexit, or you could interpret it is not a big deal. it will be a big deal. brexit will be a big deal. erik: define big deal. mr. fink: initially, the uk has benefited the weakening of the sterling. we have not even begun the whole concept of brexit. the prime minister suggested that she may apply for article 50 at the end of the first quarter, second quarter. there is time. there would be a lot of noise around that. from what i hear, talking to ceo's in the uk, they are not incrementally hiring. they are not incrementally planning to invest in the uk until there is more certainty. so, i do believe that brexit will be a big deal. it will have egg consequences -- big consequences in the u k, depending on how the negotiation goes. you

erik schatzker spoke with him exclusively and asked about trump's tax plan. ny: it is mathematically possible if you want to have huge deficits. but there's no way to pay for it. erik: you have a knowledge you are a clinton supporter and a financier who can do the math. she is also promising quite a lot. you heard a fair amount of it and a proposing to pay for almost all of it by raising taxes on the wealthy and closing corporate loopholes. my question is is that realistic , and is it good policy? tony: i think the problem we have what the american economy right now is there's not enough demand. we can get into that later but one thing holding back demand is income inequality. if we spread that a little more evenly whether through taxes or other means like aim minimum-wage, we can increase demand and get more economic growth and it will be good for everyone. do i think the wealthy can afford to pay more taxes? yes, i do. but i don't in cologne that is going to do it. or you might find people moving to another country? tony: there's not enough that way. equity

erik schatzker joins us on wells fargo.will be testifying before the senate banking committee. there are distinct is we need to make on the cost -- the cost we have seen so far, and the overall total cost that will be haunting wells fargo. erik: absolutely. i have been digging about this. we know john stumpf, the ceo will be contrite, apologetic, and take full responsibility in his testimony before the senate banking committee, but the scandal continues to metastasize. to your point, the actual cost to wells fargo thus far is quite low -- $185 million in settlements, and the cost of reimbursing these customers, you know, for whom fake accounts were opened in their name. investors, of course, are trying todiscount the ultimate cost wells fargo, and in that discounting process, they put at least four variables. will john stumpf eating ceo of the bank, and can his heir apparent, president since long, run wells fargo profitably? that is number one. number 2 -- legal liability. potential class-action lawsuits from investors, and

erik schatzker is live with the interview with an egyptian telecom billionaire. erik: thank you. i am here with the chairman and ceo of the egyptian conglomerate . i spoke earlier with the beendent, and now i have talking with people he is persuaded to come here. why are you here? i think what he has clearly demonstrated is what argentina has the aggressive restrictions they had for investors for years. when youd reason is have a country for 10 years out to investments, obviously, after 10 years, it is a good time to come and see them because the country has been deprived for a very long time. erik: i mentioned the conglomerate and you are in mining, financial services, hotels development, so it appeals to you in this country? naguib: all of the areas. erik: how much might you be willing to invest? naguib: that is the problem because we're highly invested in other areas in the world, but something between $20 million to $50 million. erik: i am sure he would be pleased to hear that but what? into specifically -- but what into specifically? naguib: i am looking into mining and the

i was begin with scarlet fu and erik schatzker with dan davies, ,n analyst with frontline speaking about the idea that there is not yet a liquidity crunch. it does just appear to be a few clients that are pulling some of their money from the bank's. nonetheless, there is still concerned. he talked about the steps the company could take over the next 24 hours to stem the selling, including talk of raising new capital. .one of that as of yet whether deutsche bank is indeed having liquidity issues, whether or not that was a case, it was certainly a trigger for the overall market. the three major averages are trading lower. this accelerated sharply after the selloff. all three major averages at the lows of the session. the s&p financials and the selling within the financial group, it is down by nearly 2%. individually some of the best selling, jpeeing morgan, citigroup, wells fargo much.und -- down by this this occurred after the deutsche bank headlines. morgan stanley and goldman sachs are a couple of the financials we are seeing lower. have been watching the saplings in stocks and big acce

as we get you closer to the announcement, erik schatzker standing by. no change in interest rates.be a quarter-point hike before the end of the year. you can see it in the dots. 14 of 17 officials expect to end 2016 with the benchmark rate of at least 50 points. here is a direct vote. the committee judges the case for an increase in the federal funds rate has strengthened but for the

still ahead, erik schatzker will bring you live. this is bloomberg. ♪ currentlyhe senate is voting on the saudi bill and it does have enough votes to override the obama veto on legislation that would allow americans who lost family members in the 9/11 terror attack to sue. says it would have grave implications because there would be read to be should take in. onthe senate again voting that bill to override the veto. that is ongoing at the moment. but it does have enough votes to do so. we will continue to have you posted as we get the headlines. one of our guests is ares .anagement head tony ressler tony: we love the business and the asset class and we have been indifferently five years or so during but the simple answer to low question is, with interest rates for extended period of time, low behold, people are seeing higher multiples for companies. some folks believe buying companies at higher multiples, 12, 13, 14, with higher leverage multiples can still work. it can, of course. but what you have to do is be extra, extra careful

erik schatzker speaking with the president of argentina. he joins us now. we are going to hear from him, as the feds seems to think this time is different. i have heard that somewhere else on this program, and i wonder if this time it is going to be true for argentina. erik: guy, we might just borrowing that we might just be borrowing a line from ken rogoff there. certain this is the question that every ceo participating in this forum is asking as well -- why should they believe that this time is different? yes, mauricio macri has marketced the laws of oriented reforms since he has been in office. but argentina has a long history of populism. this guy is trying to drag the country out of the dark ages. argentina, under christina fernandez, was effectively headed down the road to a place like venezuela. everybody wants to know it is not going down that road again. done, what hase he delivered, and what is still to do? lot, he has a cobbler's a what some people might say he has picked the low hanging fruit -- he has accomplished a lot, but some people might s

was avenue capital sry with our erik schatzker. rallies across the board today, the big news, the surprise agreement in algiers to cut production by opec leading to a surge that really started around 2:00. again in oil. s&p energy, subsector, the biggest gainer, over about four point 5% gain. all those green arrow struck the story of the day. scarlet: that is why the nasdaq is kind of lagging behind. fromso have some headlines the cleveland fed president, one of the three dissenters in that fomc decision earlier this month. she explains her dissent in the text of her cleveland speech, saying that sometimes being prudent means moving policy rates up. she sees risks from delaying a rate hike for too long and she says gradually raising interest rates will help prolong the expansion. she does see the inflation target moving gradually, and she says in reference to overseas headwinds, those have subsided and the u.s. expansion is resilient. we will bring you any other headlines generated from cleveland shortly. tracy: thank you. alan kru

bloombergs erik schatzker has more on the fed decision from washington dc. >> no change in interest rates from the federal reserve but a strong suggestion that we will see an increase by the end of this year. those are the big takeaways of the meeting of the federal open market committee here. janet yellen was under some pressure to explain why the central bank did not move now, and she tackled it in a news conference. exit economic growth which was some -- >> economic growth which was subdued seems to have picked up. household spending continues to be the key source of that growth. spending has been supported right solid increases in household income. as well as by relatively high levels of consumer sentiment and wealth. >> yellen continues to believe it is less risky to wait too long to tighten monetary policy and to pull the trigger too early and possibly cause a recession. i took the opportunity to ask yellen why the fed still expects to raise interest rates by 250 basis points over the next four years after lowering its projection for gdp growth over the same period. the same answer,

he is standing by with erik schatzker. erik: thank you for spending time with us. thing people know you for is for what you are not. you're not really a hedge fund manager. you're in the smart data know youbut they also for the perspective you have brought there on the hedge fund industry. you have rich -- raised questions about edging -- hedging and you have been a critic on fees. where i want to start with you is what does the future hold? , startingu were right in 2000, raising the questions, you proved to be right. where will we be years from now? >> basically, not a devastating critique, but saying they are not diversifying enough and they charge too much. we wrote a few pieces saying what we think should happen. people should get more disciplined. isthere is any argument, it not for doing with jacked us. part of this is passing along. how much of it is something you can really get only from the manager and there will be broadly different opinions, and is knownof it strategies? today, smart data, part of what hedge funds do, they figured out these strategies.

scarlet: that was erik schatzker speaking with larry think. a lot more coming.lackrock's global chief investment officer will be joining us than. coming up, investors are migrating more and more to lower cost investing strategies like eds. -- etf. does that pose a threat for active fund managers? i will of the father of the index fund explain. traded. are heavily perfectly good uses. i am afraid it is dominated by traders in the long run and traders are a gift to wall street and by definition, therefore, not a gift to the investors doing trading. ♪ scarlet: the shebang passes problems with regards to its issues are a concern among german lawmakers. we hear there is a close section of finance figures this week. if you look at deutsche bank shares traded in the u.s., you can see that shares have fallen to the session lows even as they are higher now. if you look at deutsche bank shares traded in thestill up abs the light lower file -- following that headline. we will check in with our reporter in germany later in this hour to discuss the story. i want to take a de

erik schatzker is with tony james. erik: good morning.re was a lot at stake for investors and business people and the economy in last night's debate. what did you learn? >> i think the candidates painted a great contrast between the two of them. there is nothing else that crystallized the issues. i think hillary came across as cool under fire. balanceck a nice between being tough and not overly aggressive. i think she was well-informed and had her policies. was clearly the adult in the room. interesting for a while but became very repetitious. and a little bit grating. i didn't learn a lot from either candidate, ironically. i think both were very true to form. in that sense i'm not sure they changed the balance of the election much. erik: it didn't move the needle. i think people went into the debate with high expectations that he would fall flat or she would be cowed or one of them would deviate in some remarkable way. i don't think that happened. voters are going to wait and see what happens the next couple of debates. erik: one of the

erik schatzker is standing by. rik: no change in interest rates, no change, but a strong suggestion that there will be a quarter-point hike before the end of the year. you can see it in the dots. 14 of 17 fed officials expect to end the year with the benchmark rate of at least 50 points for the first time since december of 2014. almost twoing about years. 3 dissented from the majority. they voted to raise interest rates to half a point at the meeting. matt: did you think we got what we expected? for a long time, we have been interpreting all kinds of fed speak in some have moved in one direction and some in another but at the end of the day, one that matters. matt: they each had given a weeks in the past few indicating that's what would happen. previously, we have had speeches where they have not dissented and now this makes a huge difference and it sets us up for expectations in the future because part of the committee has said i have been low but now i feel it's time to go and i think it's an important development

erik schatzker sat down with the president of argentina, mauricio macri.y companies should invest in argentina after so many years of the government being unfairly to business. president macri: we have started a new political stage, a new argentina, based not in the government. based on majority of the citizens of argentina. we have learned, we understand our talents,ion to outage natural resources, we add rule of law, to be predictable. we have to clean up our economy and have clear rules and stable, and that is why we believe that having learned that working together inside argentina, with all the conflicts we have internally, but also with the rest of the world, you cannot find another country with such an outside like argentina around the world. in spite of all this conflict i described, for 400 million people, 10 times more the citizens we have in argentina, we can -- in five years. -- we can double that in five years. a huge revolution of investment and production we can add value to the production. supermarket of the world. in addition to that, we a

david: let's talk about growth which he talked about with erik schatzker. u.n. and talking about economics, but you said that practice cannot buy you a hole in one. you look at janet yellen as a forecaster, perhaps one of the most practiced, and just to be concerned about where she sees growth at 1.2% year over year. hassan pathetically to her as she is weighing that and she and rise?ay of rate weiss because i sympathetic know societies dependent on models. -- ink bill: i am sympathetic because i know society depends on models. i think there are $13 trillion worth of sovereign debt in the negative camp and that really isn't an asset but the liability for those who hold those particular pieces of paper and that the rules, perhaps, change, and we see that with the newtonian physics in the law of einsteinects, which initiated camusso 0% interest rates can change things and change models and i do not think because that is a subjective type of thought and historical modeling in five years or six years, and i think it is difficult with them and i think we need new thi

erik schatzker was there. he asked how he plans to solve the chronic economic problems.e accomplished much. you have settled with the holdouts. you removed some trade barriers. you have liberalized the foreign exchange regime. as you point out, it's not quite enough. i want to know what more you can do practically, realistically. what is within sight? reducere working hard to taxes. launched the most important infrastructure program in our history. there is another opportunity there for the most important companies around the world. we need energy, pipelines. we are starting to build them. in order to increase our production, we have to connect such a huge country. working close with the leaders of the country, political leaders, unions, companies to work for productivity programs. how can we reduce cost? how can we be competitive? we are all working in that idea. improving our ways of production. improving our education system. >> what is your top priority? what is at the top of her list? >> the top of my list is three main objectives. reduce poverty. >> what can you do

joining us is erik schatzker who has been covering the banks for us for years. we talk about and cutting collateral on trades, what does that not mean? it doesn't mean they are abandoning deutsche bank. some excesstaking cash out, taking positions out. it is a risk management move. they don't want to find themselves in a position. the worst-case scenario when assets got trapped, we are not able to get their money back. that is the worst-case scenario. they are reminiscent of the way that lehman brothers went. to use the hackneyed phrase, it was the perfect storm. clients withdrew cash and collateral. at the same time, lenders shut off short-term funding. agenthman's own clearing demanded additional powers to seize collateral and cash that lehman had put up at jpmorgan. the financial system has changed since then. the repo market is a fraction of what it used to be. deutsche bank, there's much more collateral. >> obviously, a lehman event is an uncommon event. how common is it for hedge >> that is ultimately the problem for deutsche bank. in order to maintain a b

erik schatzker is standing by with the global head of lack rock uts unit. erik: i hear with mark weidman. one of the things larry and i did not talk about earlier was the elephant at least in this room, and that is the etf business. salad andl skip the the soup and go for the red meat. i want to talk to you about the silent road, a provocative piece and you know all about it. it compares asset management and not favorably, i should add. it was called extreme. jack called it idiotic. >> it is a great time for us to talk about the role of etf buses and portfolios. the extent to it things can grow in the markets p are we are years away from that being irrelevant conversation. equities5% of global sit with any investment. ofee children -- $3 trillion hedge fund money. all out there discovering prices. now, etf's are all very small. >> the rest of us are buying the markets is that. >> its talk about the relationship between strategies and active price setting. even if we are not there yet, at do you lose something in active price setting or the strategy does not

bloombergs erik schatzker caught up with them. you can see that here. that is in 45 minutes. ot miss that. and world leaders achieve unity at the gathering in new york? let's bring back erik nielsen who believes the globalization is a slippery slope and facing erosion you wrote i did not like what i see around the world today. globalization is the major power in raising trade barriers and the protection of the national champions. trump has moved within striking distance of winning the presidency. is this your number one where a global basis. erik: for sure. i have been referring to there has been a pick off and it has accelerated. --k: trade music should trade restrictions since 2008. have removed less than 400. g20 just as --y in addition, you have seen this step up in protecting europe. you are national champions. jack lew attacking europe whether europe is right or wrong. the u.s. is to come to the defense of a national champion is a bit peculiar. the biggest risk of all must be a trump presidency. , butnows what he will do if anything he is said so far it is, then symbolic

erik schatzker will be speaking exclusively to the argentinian president.ig one coming up later. stay with bloomberg, "surveillance" is next. guy johnson takes over in london and tom keene joins him in new york. we have a conversation with roger altman, former assistant secretary of treasury in the carter administration. this is bloomberg. ♪ tom: this morning, markets adjust. central bankers gaze into an uncertain future. does a decline in volatility signal a 2007 to come in this hour -- single-a 2007 question -- signal a 2007? i am live from new york, tom keene. live from london, guy johnson. two days in a row.

recently publishing a book called "rescuing retirement," erik schatzker ask james why this is such anmportant issue now in the heat of election season. here's part of an exclusive interview. tony: if we wait, it is like so many slow rolling crisis is. -- crises. much more expensive, much more crisis socially. a lot of old people in 20, 30, 40 years, fewer working people, basel people will be in poverty. erik: the orange line here, this is what they can expect based on what they anticipate for returns over time and the way that that program works. we are talking about replacing it with a 401(k) savings program. that's right, these people rolled it over to guarantee new accounts. the principal amount was guaranteed by the government. they are invested to earn 67% per year. it.'s all part of the other part is that most americans even when they have , so one ofot save the things they do is read -- repurpose the tax reduction that affluent people get. they use that as a credit to subsidize the contributions from people of low, median income. erik: do you find people on capitol hill recepti

scarlet: erik schatzker is standing by as get closer to the announcement. no change in interest rates, no change, but a strong suggestion that there will be a quarter-point hike before the end of the year. you can see it, of course, in the dots. 14 of 17 fed officials expect to and 2016 with a benchmark rate of at least 50 points for the first time since december of 2014. we are talking about almost two years. three policymakers -- dissented three, from the majority. mester,engren, loretta and another voted to raise interest rates to half a point at the meeting. matt: did you think we got what we expected? >> i think the major breaking news is definitely the dissents. for a long time, we have been interpreting all kinds of fed speak. some have moved in one direction and some in another, but at the end of the day, the vote matters. matt: but didn't we know that? they each had given a speech in the past few weeks indicating that's what would happen. torsten: previously, we have had speeches where they have not dissented. now the fact they are voting for this

today, the most influential 2016 summit across and hong kong.n, erik schatzker is hosting a panel on the future of investing in the european union post brexit. director.ng you can watch the panel and all of the top voices throughout the day on the bloomberg or streaming at bloomberg.com. don't miss our interview on the show with andrew wilson. income also. we do have headlines from the prepared testimony of chair yelling. she says she's does not discuss economic outlook or rate policy, but in terms of fixed income, she writes the fed must stay vigilant of new risk to financial stability. the banks are considerably stronger since the crisis and to carefully monitor the impact of any rule changes. examinations have found regional banks to be well-capitalized. we are expecting her to field questions about the reasons why there have not been a supervisor vice chair of pointed by the obama administration and what might happen going forward in that regard. we are about 30 minutes into the trading day in the u.s. julie: so julie: is a very small rally underway in u.s. stocks. i should reall

erik schatzker is there where he is joined by the president of argentina for an interview. thank you so much. you toe to introduce bloomberg television viewers and radio listeners worldwide. we thank you for welcoming in us. >> thank you for coming back after 18 years. erik: i at machine to say it has been that long. >> you have invited multinational ceos around the world to persuade them that now is the time to invest in argentina. let's pretend that i am one of those ceos and that i have billions of dollars i could commit. >> how many? erik: let's say in the single digits. is your pitch? why should i invest in argentina today when this country has been so unkind to investors so long? let me convince you that we have started a new political stage. it is a new argentina-based not in thernment but based maturity of the citizens of argentina. in addition to our talents, our we have toources, add constancy and rule of law and be predictable and clean up the economy and have clear rules. now,s why we believe that having learned that, working together inside argentina with all th

bloomberg's erik schatzker was there.s exclusive interview, he asked the president how he plans to solve the chronic economic problems. >> you have accomplished much. you have settled with the holdouts, for example. you removed some trade barriers. you have liberalized the foreign exchange regime. and many other things, very important steps. as you point out, it's not quite enough. you are seeking to do more. i want to know what more you can do, practically, realistically. what can you accomplish? what is within sight? >> we are working hard to continue reducing taxes. we have launched the most important infrastructure program in our history. there is another opportunity there for the most important companies around the world. we need roads, trains, ports, energy, pipelines. we are starting to build them. because to increase our production, we have to connect such a huge country like argentina. we are working close with the leaders of the country, political leaders, unions, companies, to work under productivity programs.

. ♪ blackrock is holding its second annual conference today in midtown manhattan, and erik schatzker ll go to him now for a big, special interview. erik: i am here with larry fink, the chairman and ceo of blackrock. good to see you this morning. mr. fink: good to see you. erik: let's start on central banks -- with the caveat you have been vocal on central policy, and critical of negative rates. here we are eight years in the bull market. the fed held rates for the sixth consecutive meetings -- meeting, and what is happening -- stocks are up, bonds are railing, the dollar is weaker. what is wrong with this happy picture, larry? mr. fink: well, we are just continuing the same environment are beings -- savers harmed, pension funds are having serious issues related to their and the gap between their assets and liabilities are actually increasing. so, the problems are getting more significant. insurance companies are having a very difficult time now, and now they are going back to their insured and asking them to pay more. so, we are seeing the real impact of low, and persistent low and ne

you spoke with erik schatzker recently. are you still short? how sure are you?hort saint jude. we have never commented on the size of our positions. it is a meaningful position. we are still short. obviously, the next few weeks and months could see a number of interesting developments in that story. manus: the cyber community is split between what you are presenting and what saint jude is presenting. i am curious. we expect to hear substantive information. you asked me this question a week ago, then my yes.r would be absolutely, and now with the lawsuit that saint jude has filed recently, whether we release additional information now or we do it as part of court filings, that is all to be determined. certainly, we will be releasing more information on vulnerabilities but in terms of part of thet is litigation or outside of the litigation, i cannot say at this moment. manus: let's talk about the litigation. you have a lawsuit from think jude. do you still stand resolutely by the video? showeduld say that it the systems going into a safe mode. carson: that is a li

alix: that was erik schatzker, joining us.l coverage beginning at 1:00 p.m. eastern. we need a countdown clock. david: tomorrow we will have alan greenspan and the black rock chairman. to look forward to equities are positive across the board. and in europe across the board. , the yen is stronger. the dollar-yen is coming off session lows. approaching a federal reserve decision and full coverage right here. this is bloomberg. ♪ vonnie: it is 10:00 a.m. in new york. i am at the plaza hotel. mark: welcome to "bloomberg markets. ." " this is bloomberg. ♪ mark: we are going to take you from washington to malan. theill get stories out of wall street, uk and africa in the next hour. vonnie: the reason i'm at the plaza hotel is the u.s.-africa business for him. we will be speaking with leaders countries in africa. a wonderful spotlight on partnership and it is being run in conjunction with the u.s. commerce department. we will hopefully be speaking with the president of rwanda. decision day for the federal reserve, the hike chance

erik schatzker has more on the fed decision from washington dc. >> no change in interest rates by theeserve, but a strong suggestion that we will see an increase by the end of this year. that it -- those are the big takeaways here in washington. janet yellen was under some pressure to explain why the central bank did not move now, and she tackle -- and she tackled it head on. >> economic growth which was .ubdued seems to have picked up household spending continues to be the key source of growth. spending has been supported by solid increases in household income, as well as relatively high levels of consumer sentiment and wealth. >> in short, yellen continues to believe that it is less risky to wait too long to tighten monetary policy than to pull the trigger too early and possibly cause a recession. i took the opportunity to ask yellen by the fed still expects to raise interest rates by 2050 basis points over the next four years after lowering its projection for gdp growth over the same peel of note -- same peel -- same period of 2%. normal growthrun, rate and that reflects an assessm

erik schatzker caught up with him ahead of the meeting. you can see that interview at 10:00 a.m. this morning you take time. still too,, get by with a little help from your friends. decision couldte be a bonus for mario draghi's qe program. and then a metal meltdown. we have a chart on gold. and the president gives his foinion -- the iso president gives his opinion on brexit. this is bloomberg. ♪ anna: welcome back. you're watching countdown. the time in hong kong is 1:16 p.m. in the afternoon. the hang seng is down. the asia-pacific is pretty flat. let us go get a business flash. rosalind: some of the world largest headphones are considering expanding in asia as they seek new areas of growth. they have incorporated units in singapore this year. investors may increase holdings in the region. deutsche bank is working to secure aliens of dollars in corporate loans to offload risk. a person said the bank is structuring the transaction as a loan obligation meaning the firm would keep servicing loans all transferring risk it to investors. to company is under pressure balance its sheet

michel temer spoke with erik schatzker about brazil's economy and how long it will take to eliminate the budget deficit. >> likely to three years before re-totally eliminate it but i would like to say that some time ago, i got very telling research finding indicating if we had set the spending ceiling four years ago, by this time we would have no deficit whatsoever. taylor: he says another big item on his agenda, social security reform, should be passed next year. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. riggs.ylor this is bloomberg. tom: let's get to equities, bonds, currencies, commodities. market,tleties to the the yield and euro doing nothing. oil was a 42 handle when i walked in. on to the next screen, the idea of the vix, 13.98. , 45.73.ude i put deutsche bank in here as really almost a global indicator of banking aches. those are euros. it is the intraday low. francine: you are putting corporate's for glaxo because they have a new woman ceo. you can see european stocks not doing much. yen, 101.74. theresa may is atten

erik schatzker has an interview with the president earlier today. they talk about plans to cut argentina's debt to gdp ratio this year. >> we are trying to go around 4%. >> 4%? >> we have to go gradually. socially, we can assume to go another way. we have to accept this has been a disaster in terms of increasing debt in the last 10 years. everybody has to understand that we have to do it step i step. we are committed and we are going to fulfill that commitment of reducing every year and reducing inflation. we have high inflation. we are cutting down inflation. we are using to half of what it used to be. we are going to continue working until we reach one digit inflation in two years or more. we will cut the deficit. >> what will inflation be by the end of next year? >> 15%? >> bringing down inflation and controlling physical -- fiscal spending is important for your creditors, the people who bought your bonds. you have to balance that with the demands of the government. how'd you know with the right number is? you are heading into an election year. t

bill gross was telling erik schatzker he wants the fed to raise twice. that would attract more investors to the u.s. dollar, wouldn't it? binky: if you think back over the last few years, the trade rate of dollar is back in august of 2011, when u.s. debt was tildeaded, from their january peak this year, the dollar is up 40%. i would argue it has already priced in a lot of rate divergence. the most recent moves we saw until yesterday when we got the pmi have to do with position squaring as rate hikes get more likely. >> what about the bond markets? thee talked about correlation between stocks and bonds recently. how do you see that shaping up by the end of the year? binky: the correlation between bonds and equities underwent a very basic, complete regime change, starting in 1996. if you look at on yield and the change in equities or equity the u.s. went through the enormous inflation cycle from the late 1960's all the way down to 1995. then inflation came all the way back down to 2%. the correlation is what people think intuitively that it should be, whic

today, the most influential 2016 summit across and hong kong.n, erik schatzker is hosting a panel onesting in the european union post brexit. director.ng you can watch the panel and all of the top voices throughout the day on the bloomberg or streaming at bloomberg.com.