i share talking to erik schatzker.nie: still ahead, oil splurging with $50 a barrel ahead of inventories. this is bloomberg. ♪ when you're on hold, your business is on hold. that's why comcast business doesn't leave you there. when you call, a small business expert will answer you in about 30 seconds. no annoying hold music. just a real person, real fast. whenever you need them. great, that's what i said. so your business can get back to business. sounds like my ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business. vonnie: live from bloomberg world headquarters in new york and london, i am vonnie quinn. nejra: and i am nejra cehic. oil approaching $50 a barrel, the latest industry data out in just seconds. julie hyman joins us with the latest. julie: as we await that data, we should note that industry data out last night showed a 7.6 million barrel drawdown in oil and we are seeing a drawdown can firm by the u.s. of nearly 3 million barrels. we did see a building gasoline in

scandal over fake accounts pay lip to erik schatzker with the latest on the call. tim sloan, the new ceo, is talking right now about why the former ceo gave up the job. he says because stumpf was a distraction. what we want to know is how much of a distraction. and how much of an impact it will have on wells fargo business going forward. here's what i can tell you right fargo made slides, presentation slides available ahead of the conference call. this scandal, the think -- the fake account scandal broke in the beginning. account openings and account applications were down in the month of september. consumer checking account down 25% year over year. and credit card applications down 20%. wells fargo is in drawing a straight line between the scandal and the sack to the. wells fargo has one of the most stable consumer banking franchises in the country, highly unusual. scandal of this nature to see a drop off in customer activity. we want to know about litigation reserves. or the press release or supplemental material. that is why we are so interested in this conferen

he discussed the state of banking in an exclusive interview with erik schatzker.ue has been dropping, regulation has been increasing. the only way to boost profit has been by slashing costs. where are we now? have we bottomed or is there further to drop in this industry? >> coming up the highs in the revenue basis, you probably bottomed. , our costsast year went down 3%. growthcremental revenue in an environment that is growing 1.5%. technology,g replacing paper with digital. that can go on for a long time. the 20 billion a year we took out is really driven by a need to really move the cost structure. erik: the economy does remain a question mark. loan demand can be a leading indicator. what is it telling you? >> the thing about the u.s. economy, it's driven by consumers. the most consumer-oriented economy in the world. consumption is big. our customer base is spending 5% more than they spent last year. k: the 1.5% economic growth environment will accelerate? >> what's going on with companies and things like that. here, they are basically a little bit better than

was michael dell speaking to our very own erik schatzker.iscovery communications $100 million bet in media. we will talk to the ceo about the investment in group nine. this is bloomberg. ♪ emily: welcome back. frome coming to you live the vanity fair new establishment summit in san francisco. discovery communications is investing $100 million in group nine media, made up of several focus brands. the investment will let discovery move beyond its legacy-linear television business. joining me here is the ceo of discovery communications and still with us is brad stone. thank you so much for being here. you are a sponsor of the summit and have a big virtual reality set up. you have announced a new initiative. tell us more about this. >> we love the vanity fair summit. great and carter is a great curator of things we should be paying attention to and it's a platform to talk about our vr with -- we are the leader in virtual reality. , we are approaching 100 million people. our content, whether it is , operary, animal planet or science, when our con

. >> let's go to bloomberg's erik schatzker in washington. erik: it was a close call. that was the main headline from the minutes of the fed's policy meeting. the minutes reveal a more divided fed than a 7-3 vote would suggest. several members said it would be appropriate to raise rates "relatively soon so -- "relatively soon," so what is all the fuss about? it is about labor market slack. the three dissenters, who wanted to raise rates, believed conditions of the labor market are already tight, and keeping rates easy pushes unemployment to an artificially low level, that is what they believe, sparking an inflationary irony -- prior that could force the fed to hike so fast the economy tips into recession. >> a lot of market participants find it hard to believe we could see the economy overheat, even if low rates are kept lower for longer. >> right now, we see inflation below the fed's 2% target. it has been there for a while. inflation expectations have come down. the best type of central-bank policy is one looking through the front window of the car, rather than the r

he discussed the state of banking in an exclusive interview with our erik schatzker. revenue has been dropping -- >> revenue has been dropping. the only way to boost profit is by cutting costs. where are we now? have we bottomed, or is there still further to drop? >> if you think about us coming off the highs of the revenue basis and the highs and activity, we have probably bottomed. it is really driving incremental revenue growth. you can only grow so fast. taking a paper process, replace you with digital, and that can go on for a long time. the 20 billion a year we took did not really move the cost structure. now it is very incremental. >> the economy does remain a question mark. client behavior, particularly loan demand, can be a leading indicator. what is it telling you about the outlook right now? >> the u.s. economy is driven by consumers. other countries are trying to consumers and our customer base are spending 5% more than they spent this year to date than last year. >> does that tell you the economic growth environment we have been stuck in is going to accel

alix: erik schatzker also traveled to austin, texas, this week for an exclusive interview with the delly's ceo, asking michael dell if he had more acquisitions in mind, and he framed his answer in dramatic terms. >> if you think about this as a play, act i was to go private in 2013, right? act two is the combination of dell and bmc's vmware. and so you are acting about act three but you will have to wait and see. waitw long will we have to and see? i am sure you have your work cut out for you. >> we have a few ideas. we are focused on dell, emc, and vmware. all the great things for customers. but look, we see plenty of opportunity organically to consolidate. we're going to continue to make acquisitions, and alliances and partnerships are also important. we also have our program where we are investing in hundreds of the companies that are 24, 36, 48 months out in terms of the future. >> you have the desire, clearly, but also the financial flexibility and capacity to do these things? >> we do, yes. >> you have been so outspoken about the benefits of being private, right? not having a publ

erik schatzker is there with a special guest. ik: yes, one of those top investors, vonnie, is gnat zilkha, co-head of credit, k.k.r. helps oversee $30 billion. good to make the trip up to toronto. you believe that the key to understanding credit opportunities is to look at it through the lens of what's happening in the banking industry. explain. >> that's absolutely right, erik. we have seen through the financial crisis a significant transformation and the behavior of the banks driven in part by regulatory changes and changes in their economics and the way that they can earn returns on their capital and it's created enormous white space for alternative lenders like us to come in and provide really attractive opportunities for our investors. erik: banks around the world aren't all the same. there are different things happening to u.s. banks as a result of regulation. different thngs happening to european banks perhaps as a result of not enough. and there will be different things happening to asian banks. >> that's absolutely light.

erik schatzker: do you see a point when you have to release that to please critics? tion. but the world of their does change and you have to respond accordingly. erik: we know the vanguard effect. tocing other asset managers lower the fees they charge. what about the department of later fiduciary standard? can you ballpark the amount of money you think it is going to save investors? in the billions, overtime. i think there are several trillion dollars that are covered by these rules. and if you think about what they are paying today and what they may be paying 3-10 years from now, you have to think it is billions of dollars in fees. couldophically, no one argue. when the first set of proposals came out, they needed some work but the department of labor got it more right than wrong from our perspective. for retrocession, the paid brokers for clients -- those practices are going to do continue to decline over time. iether they totally go away, don't know. but what investors want is transparency. it isn't always that the absolute low fee wins. be value created for the in

i'm erik schatzker. u.s.lines in the next three money -- three months. goldman thinks they analysts are underestimating shocks. managing director of portfolio strategy points to among other things, the p/e ratio for large-cap stocks this year, large caps stock earnings. .hey are risk it is way above the five-year average. if you look at any number of historical performances, it looks pretty rich. looking at the s&p to go down to 2000. i think you have a chart their. sochi #btb. #4.15. this is number. ♪ vonnie: from bloomberg world headquarters in new york, this is bloomberg "markets." commodity markets are closing in york. cold prices today pretty flat. nineld say flat, but dollars per ounce. the hawkish fed frederick and potential for a rate increase. investors are bracing for the kleins. down by the most since late may. having a look at we that is rebounding from a two-day flight. releasing the monthly supply and demand report when they. january 2014. cocoa prices down almost 5%. prices down almost 14% this

. -- colleague erik schatzker.ompany saying its industrial packaging unit was hurt by higher input costs, even as -- turn at to .6 million tons of her gated packing. that was an increase from the same period a year ago. joining us from memphis, tennessee is the ceo mark sutton. in spite of investors may be not taking it so well, it was a solid performance and congratulations. how do you manage with the higher input costs and how will you hedge that going forward? solidturned in a very quarter. strong demand for our corrugated packaging product, our biggest business. squeeze.ve some margin recovered fiber, which we use as part of our recycled fiber mix. costs rose faster than we thought they would. we do have a price increase that has been announced and we are in the process of implementing it. we think that will help alleviate the margin squeeze as we go forward into the fourth order and 2017? david: how challenging will that be?e >> think the low growth environment for current gated too.ging may be maximum i think

brian moynihan, ceo of bank of america come in exclusive interview with erik schatzker.tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now to receive your free dvd and booklet with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money... and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home and here's the best part... you still own your home. take control of your retirement today! scarlet: from bloomberg world headquarters in new york, this is "bloomberg markets." i am scarlet fu. commodity markets are closing so let's look at how energy companies are performing. crude oil backing off and once again at the $50 a barrel level as investors contin

here he is with erik schatzker. erik: i would like to welcome viewers and listeners worldwide -- lee, good morning. you are being sued by the fcc. clients are withdrawing from your fund. most money managers would be in hiding right now. why not you? everyone has to act according to their own set of values. if this happens to a 30-year-old with no money, you are out of business. it happens to happen to a 73-year-old who is financially well-off and i value my legacy, i've done nothing wrong. i take comfort from that fact. ken called me up and said that totallye that resonated with me. i've known you for 40 years, i've been investing with you for 10 years, i know what you stand for. the best $30 million i ever million that$30 don't give them a dime if you've done nothing wrong. this has cost me substantially more than they want me to give them. business,ees and lost astronomical. i've taken sad -- the giving pledge with warren buffett. i want to get my money back to society. with my children and grandchildren and my wif

erik schatzker is standing by with more on the action -- reaction.he reaction of bill gross, manager of the global unconstrained bond fund. always a pleasure to have you here. butave a lot to talk about we certainly need to start with a selloff underway in government bonds globally. you tweeted about it earlier. it appears to be in response to a bloomberg scoop that policymakers are beginning to about the end of quantitative easing. do we have another taper tantrum on our hands? to now -- we do today. on the screen in front of me, i saw your posting and those at about 12:00 eastern. the minute it was posted, the bond dropped almost one point. bloomberg's article suggested the ecb make take purchases of per --in march of 2017 2017. iny characterize the drop treasuries in may of 2013, a big drop. we have had a drop for the day. is that totally significant? is a niceot but it scoop and caused me to basically reverse positions in terms of being long to being short. i am watching my bloomberg. >> the story you reference makes an important to be sure point

bloombergs erik schatzker is --h younger than larson, john brennan lawson.ctly what he would ask. what are you doing about hedge funds? bjarne: we are doing a lot about hedge funds. i guess one of our panelists here today at the conference is running all of our hedge funds and we have a strong relationship with hedge funds. some years ago, we used to think of them as someone that could invest our money for us, but it has actually changed a lot and we have fewer relationships today i'm a but they are much more strategic in nature and we are really trying to use hedge funds as a source of sharing information on a much more integrated part. erik: there is a prevailing narrative that pension plans have had it with hedge funds. calpers has exited or is exiting the hedge fund portfolio and rhode island is dramatically reducing its hedge fund portfolio. what are you doing about your hedge fund allocation? bjarne: it is more or less unchanged. we have shrunk the number of relationship and fewer, but larger, and more significant relationships, and really, focusing in

he will sit down with erik schatzker at 12:45 in new york., d.c., district of columbia, the home to a new president come january. i'm francine the in london with michael mckee in new york. we have to talk about d.c. in the presidential debate. let's get straight to the bloomberg first word news. >> donald trump has underscored his contention that the presidential election is rigged against him. the republican candidate refused to accept the nominee if he loses. they squared off on other issues including the economy. mr. trump: i am going to create tremendous jobs and we are bringing gdp from 1%. if she got in it would be less than zero. we are bringing it up to 4% and be can go higher than 4%. you can go to 5% or 6%. if we do, you don't have to bother asking your question. we would have created a tremendous economic machine once again. >ms. clinton: his hope is to cut taxes to get the biggest tax break ever to the wealthy and corporations, adding $20 trillion to our debt and causing the kind of dislocation that we have seen before because it

up next, erik schatzker will break down the fomc minutes.i'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now to receive your free dvd and booklet with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money... and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home and here's the best part... you still own your home. take control of your retirement today! this chart supports the idea. a three-year chart of the 10 year yield. a downtrend. extra dairy policy of rates so low for so long. more recently we see the 10 year yield climbing off of the brexit bottom. climbing perhaps to the top of the range. this lon

erik schatzker is standing by. when henry kravitz once to know what is going on in the world, this is the man he turns to, henry mcvey, head of global macro and asset allocation. welcome. talk about emerging markets. you believe in emerging markets have bottomed. why? >> first is we are about 72 months into emerging markets just having terrible performance. -- typically get erik: what goes down eventually has to go up. you'reer two, i think starting to see a bottoming in the emerging market currencies. the last five years, emerging-market equities have given you about 1% performance. when you adjust for currencies, it is minus five. it has been a huge drag. i think some is related to the fed having a more dovish path. the second thing, many emerging markets, because they overstepped boundaries a couple of years ago, have tightened up deficits and raised rates. you think about brazil, it is not growing, but you're starting the easing cycle. in the past, you had been tightening. similar story in a lot of the asian cou

erik schatzker is joined with a special guest.ric: they'll be none other than the ceo, always great to have him here at bloomberg. >> good to be here. >> vanguard has historically been the leader. competitors are in a lash fees -- w tos >> we do not look at it product byproduct. continually to reduce costs. we will continue to lower fees as we create economies to scale. it is just more a way of being. >> customers look at it on a product byproduct basis. there is clearly a risk. you may lose new assets. us as someonek at talking to us for 40 years. for us, it is not a one-time or temporary thing. it is just the way we exist. >> there is no risk that is it -- existing -- will be locked out? >> people should be looking at value all the time. investors know over time we will continue to do what is right for them. >> what is the average fee investors pay today? , it is aboutacross 12 basis points. when i started, the number was in the 1960's and you the number was 89. you can see the slope of the line. it is pretty consistent and an a

i want to turn to erik schatzker has been listening in on that earnings call.or wells fargo. : it seems like the opportunity for this to turn into high drama has come and gone. the new ceo and cfo appeared to have succeeded in preventing this conference call from becoming the kind of debacle we saw at the senate banking committee or the house financial services committee when the former ceo john stumpf was testifying. on this call, these executives have been calm, their tone has been measured, not defensive which was something we saw from stumpf. the have taken cover under board investigation into the sales practices that produced those fake checking and credit card accounts. shearman ins hired sterling to conduct the investigation and as a result they are saying there is not much they can comment on. to the degree that they can say anything or whether it is within their purview to say anything, the answer has mostly been yes, our costs are going to increase as we have to hire more people for compliance and risk. we expect that might be in a range of tens of mi

that was tom perez with erik schatzker.old is on pace for its biggest weekly loss in years but some are not giving up on the precious metal just yet. that is the subject of julie hyman's chart of the day. this is bloomberg. ♪ scarlet: this is "bloomberg markets." i'm scarlet fu. matt: i'm matt miller. julie hyman has her chart of the day. do with gold to prices and how the gold bowls are hanging in even as prices fall. you have the price in blue and the recent tumble, but at the same time, etf assets and gold backed funds are still rising, up for the fifth straight week. this illustrates we are still seeing investment in gold related products, even as the prices decline. goldman sachs saying strong physical demand will limit the downside. goldman would be a buyer if it goes substantially below 1250. saying todayrald that it could rally after testing 1200. there is still some optimism built in, but what have we seen with prices? year, beginning of the pretty fantastic, up 28% through july. but that is when it peaked and star

for more let's go to erik schatzker who has an exclusive interview. re delighted to welcome the finance minister, mauricio cÁrdenas with us from washington, d.c. thank you, mr. minister. written found out the hard way it was a mistake to hold a national referendum. some might say you may have learned the same top lesson this past weekend. -- top lesson this past weekend but you may have a second chance. how would you change the peace agreement or a next disagreement with the marxist guerrilla rebels to ensure approval by the colombian people? >> that is part of the conversation taking place in columbia with the leaders of no movement because we are against these agreements. withwill have to come up whatever they think is the adjustment that needs to be made to the agreement because the sentiment in columbia is that everyone wants peace. number oneombia's goal. we hope that those leading the movement against peace, with the ideas and with the proposals. course, they also have to agree to those adjustments. let's hope that these conversations are success

erik schatzker is an washington, d.c. with the numbers. >> 156,000 jobs is the increase for the month of september. 2.6% from a, up year earlier. up 0.2% from august. the unemployment rate is 5%. from 4.9. ' slight miss in economists forecasts, but it is not the political football it could has been in this election season. if you are janet yellen call it a goldilocks job report. not too hot or too cold. >> their limited and cautious. they will move every nine to 12 unless circumstances change significantly. an upward move to renormalization is appropriate. >> this is a no drama report. that is what we would like. the way this report should be read as the economy is recovering. unemployment rates held steady. a move that is not significant and we are digging out of the problems created by the recession here to one side of progress is the strongest in seven years. data-driven head has more data to consider. later, we will replay our interview with loretta lynch during who says it could do it eight a november hike. plus, chr

erik schatzker is an washington, d.c. with the numbers. >> 156,000 jobs is the increase in payrolls for the month of september. hourly wages, up 2.6% from a year earlier. up 0.2% from august. the unemployment rate is 5%. ticking up from 4.9%. a slight miss in economists' forecasts, but it is not the political football it could has been in this election season. if you are janet yellen call it a goldilocks job report. not too hot or too cold. >> i think the fed will move. they will move possibly every nine-months to 12-months unless circumstances change significantly. an upward move to renormalization is appropriate. >> this is a no drama report. that is what we would like. the way this report should be read is the economy is continuing to recover. unemployment rates held steady. .10 percent of a move that is not significant, it is within the margin of error. we are continuing to dig out of the problems created by the recession. one sign of progress is the strongest in seven years. matt: the data-driven fed has more data to

. ♪ matt: also this week, erik schatzker traveled to capitalize -- canada's most important investment, capitalize for kids, a gathering for top financial leaders that benefit children's health initiatives. big-name investors share their thoughts, beginning with tom wagner. ♪ erik: how would you describe your state of patience? are your limited partners giving you the breathing space you need, or do you feel like there is a fire under your behind and you have to invest? because that is what they hired you to do. >> yeah, i feel like the only time we feel pressured to invest is when you see the broad credit markets trading at high yields. erik: like january or february. >> people want to know the nature of the risk. like january or february. at any other point in time, investors know we are able to find interesting investments. they are comfortable with us being patient. that is an important part of pursuing a strategy. there are points in time, like present, where you have to rely on a level of patience to wait for the next great opportunity. ♪ erik: is it getting harder to find compan

erik schatzker is standing by with one of the country's largest pension funds. with the, i'm here chief investment officer for public markets at the missable employees retirement system. thank you very much. >> thank you for having me. i want to talk about what you are doing, which is a whole lot different from how most people think about investing. they think about investing success over the long-term is a simple balanced portfolio, 60% stocks, 40% bonds. i can go to sleep in every thing is going to be fine. >> i think it omers over 50% of our balance sheet is a nontraditional public assets. we have thought about what assets do we believe overtime will meet our string. beating financial market benchmarks such as the s&p 500. we have a significant amount of real estate, significant amount of infrastructure. a significant amount of private debt. all those assets we purchased are all set up to meet our liability stream. that is how we measure success, not do we beat the s&p 500. erik: and a zero interest rate world, can stocks and bonds deliver the income, the ret

later today, we talked to the dell chairman and ceo, michael dell, he joins erik schatzker live froms at 1:00 p.m. in new york. this is bloomberg. ♪ ♪ i am francine lacqua in london and tom keene is in new york. this is days after reports that he has been cold shouldered, on the wrong side of the cabinet risk and close to resigning. all because he is not back a hard exit. i am so confused. there is a lot of confusion. i have international markets, saying -- people saying the chancellor is the only grown-up in the room but he is being pulled to shreds within his own party. what is the truth? phillip: the majority of the conservative party was pro-remain. a well organized section of the party that was for brexit and they are now in the brexit ministries. if we can call it that. this leaking of cabinet papers, the briefing against one side against another has a long tradition. if you go back to john majors. francine: it is ugly. phillip: something damaging to the cause but the real issue at hand is donald tusk and david davis have agreed that there is not a distinction between soft brex

erik schatzker is in d.c. with the numbers.e in nonfarm payrolls for the month of september. hourly wages, everybody wants to know what they are up 2.6% from a year earlier and up 0.2% from august. the on a roll -- unemployment rate 5%, up from 4.9% as only -- as almost 450 thousand people joined the civilian labor force bringing the participation rate .p to 62.9% it does add up to a slight miss butus economist forecasts, this jobs report is not the kind of political football it could have been in this election season. a really strong number and the fed would have been under increasing pressure to do something about interest rates at the next meeting on november 2 six days before the election and a really weak number for the economy might have become an even bigger issue on the campaign trail. if you are janet yellen, call it a goldilocks drops report, not too hot, not too cold. the data suggests the labor market remains solid. wages continue to slowly accelerate, more americans are looking for and finding work in there appears

ceo brian monahan spoke exclusively with erik schatzker, who asked the chairman if the bank's successfulularly the fixed-income trading business, can be sustainable for the next year. you have to give me what the market will be like. in the market is plugging along. we expect to be in a fairly narrow band. looking at five or six years, are trading revenues probably had a low of $2.53 billion and a high of $5 billion. the way they set up that business is to basically make money in any reasonable environment. so this year we have made money in every quarter. we made about our cost of capital. the first quarter was kind of interesting, and we still make good money. so we took a lot of cost structure, a a lot of capital requirements for stuff that wasn't that important, narrowed the business five years ago now. so we made money fairly consistently in that business, between $600 million, $700 million, and $1 billion after taxes, many quarters in a row. erik: did you make a conscious decision to get smaller recently in equities? bank of america look somewhat like an outlier in the equity busin

erik schatzker sat down with vanguard ceo bill mcnabb and the 2 ss competition in the industry. -- sscome edition in the industry. assessed competition in the industry. bill: what you can expect his overtime across the board we will continue to lower fees as we create economies of scale. it is typically not a product for product thing, from our perspective. it is a way of being. what customers to look at it on a product byproduct basis. clearly there is a risk. if you don't match, you may lose new assets. that is true, is it not? bill: no, i think clients look at us as somebody who has been talking about this for 40 years and if you look at the inexorable decline of expense ratios, we are equipped to keep doing it. it is not a one-time or temporary thing. it is the way we exist. and there is no risk, for example, that existing assets walked out the door in search of a cheaper fee? bill: people should be looking for value all the time but investors at vanguard know that over time we will continue to do what is right for them. erik: let's talk about it in those terms. what is the averag

david: that was leon cooperman talking to erik schatzker. vonnie: coming up, the battle for the white house but scaring the gop apart. the latest headlines and analysis. this is bloomberg. ♪ david: this is bloomberg markets. i'm david gura. vonnie: i'm vonnie quinn. some of theook at latest business stories. general electric is trying to buy denmark-based wind power. the maker of winter and nine planes it will enhance ge's ability to participate in the wind market. as a stand-alone business within the renewable energy unit. a potential deal would team canada's largest alternative asset manager with the maker of the bauer and easton brand. setting the stage for a formal takeover bid. hearupreme court will not appeals from tobacco companies that wanted to reduce payments owed to maryland and pennsylvania. a federal arbitration panel cut the payments. the justices are leaving those rulings in place. that is your bloomberg business flash update. it's an unprecedented in the gop establishment. donald trump opened up a new front in his house speak

david: erik schatzker with michael dell in austin.n dollar erased gains after the bank of canada's governor said the central bank actively does this the possibility of adding more stimulus and the economy. we had to toronto for the latest next. this is bloomberg. ♪ coming up tonight, the third and final presidential debate. it pre-debate special at 8:30 wall street time. , aaron levie live from vanity fair's new establishment conference. his thoughts on where the cloud computing's ace is headed. this is bloomberg. ♪ david: live from bloomberg world headquarters in new york, i am david europe. starting with headlines from the newsroom. mark: hillary clinton and donald trump me tonight in the third and final presidential debate. among the topics he will focus on, immigration, the economy, and the supreme court. also asking questions almost certain to result in fireworks. heilemannrin and john will host a predebate special. new york time.0 it will also be live streamed on twitter. shows hillary clinton is making once unthinkable inroads

was henry mcveigh speaking with erik schatzker.ose, or draw, he is campaigning all the way to the end. this is bloomberg. ♪ "bloombergis is markets," and it's time for a look at some of the biggest business stories in the news right now. mood is says federal officials are planning a lawsuit over its ratings of mortgage securities. critics contend they were inflated to win business in the years leading up to the 2008 financial crisis. movies says it expects the of department of justice to file a civil action on the matter in addition to unspecified attorneys general. a showdown is set up between industrial giant and billionaire paul singer. slm management joined general electric in urging them to accept the offer before it expires monday. and news corp.'s dow jones unit is offering buyouts to wall street journal employees around the world. the editor in chief said in a memo to staff obtained by bloomberg, that the newspaper has started an extensive review of operations. the paper wants a substantial number of employees to take the b

our own erik schatzker will join us, alongside a special guest, tom wagner, live from the capitalizeids investments conference. ♪ >> here in the hewlett-packard enterprise greenroom, coming up in the next hour, citi's global head of f.x. strategy, steven englander. this is bloomberg. jonathan: i.b.m. is teaming up in an effort to expand the company's reach of artificial intelligence technology. bloomberg's emily chang sat down with the i.m.f. chairman and c.e.o. as the i.b.m. world of watson conference to ask about the company's efforts to bring a.i. to the road. >> this idea, and again, keep it simple, but it's interinteracting. they've got 1.5 billion pieces of information from connection, and you individually permissions what happens here, so you car gets to know you, and everything from, you have a prescription to pick up for your children on the way home, telling you where to get off early, when to go get it, to preordering, paying for your coffee, to another example would just be, look, you're going to run out of gas, getting you to the right place, paying ahead at the pump, fo

erik schatzker is standing by with a special guest. erik: thank you.desk would be -- my guest would be dick weil, who has agreed to merge his firm with the henderson group. this is being billed as a merger of equals, as you know. a merger of equals can be a tricky thing to pull off. in this case you are trying to really make it equal. combining the boards, giving each of your executive teams equal representation. it's hard to see how tough decisions are being made here and the merger requires tough decisions. that's a good question. there is history in the marketplace for folks to enter into transactions with that label, but perhaps beneath the surface maybe it's not quite so equal. the boards being split with co-ceo's drawn in a balanced way and i think it is truly a merger of equals. why is it better to have two ceos sharing the responsibility when everyone knows it's difficult to pull off ? and the that is why so few companies intend it. erik: andrew and i started talking in february and have known each other for many months , traveling to tokyo tog

he spoke with a bloomberg's erik schatzker about the impact the no vote will have on the businesses inincluding its struggling energy industry. >> the international and domestic companies and -- in colombia have dealt with difficult conditions. the last 10 years and six years have been very positive. we have advanced four and agreement so the present is much greater than the past. and the future is greater than the present. we see our partners, oil companies from the u.s., canada, europe, brazil, they have not even given a single call to us this. for they know colombian institutions and that the future is better than the past. ik:l -- ero -- >> the problem with wall street, we have presented our investor. ,or the next four years expecting flat price of $50 per barrel am a conservative price. we expect to grow from 715,000 barrels today to 760,000. we can go about 800,000 barrels per day. invest between $3 billion and $5 billion per year and all our investors believe that offshore and entre columbia we have great opportunity. the reaction we have gone from wall street is positive. we se

alix: we go to bloomberg's erik schatzker who is with henrique meirelles. erik: mr.tions for brazil is very high. narrowing.e been all of these expectations are largely predicated on the passage of two key pieces of legislation, a cap on fiscal spending and also social security reform and pension reform. you and president are certain the spending cap will be passed this year, correct? henrique: yes. we had been talking to congressman on several occasions , etc., and at this moment, it is quite clear the importance of controlling the growth of public vote by and there was a a special commission, which was sure thate for making they are recommending the approval or not. 33 voted in favor of recommending it. the honor i had speaking to the president, he was not so confident about social security reform. why is that? henrique: social security reform is more complex. think we are confident that the reform is going through very there are several points of what is thelike position for men -- what is a position that's what is the wages for men and for women. erik: i hope the

also erik schatzker. how much of that spread is politics?in does not have a government and italy has one will stop it has done more reforms than anyone else in the last few years. it's not just politics alone. the reality is the expert tatian. the market has been disappointed with the brexit referendum. if you look at the polls now, they are 50/50 on the italian referendum which is a change in the constitutional setup all stop --. . in the end, i think the yes campaign will win. the long and globally is way too tight because central bank monetary policy is effective in the 1-5 year time horizon but when you contract yields tenures down the line, you are hurting savers because no one will think about investments in the corporate world in 10 or 20 years. nobody knows what will happen. the 3-5 yearsg and i think the curve will steepen and that is our view. you are talking about voting for constitutional reform which would shrink the senate and a compass and number of other things that people consider pro-reform for italian politics. brexit happ

and erik schatzker is going to listen in on the wells fargo conference call. screamingly cheap. i'm not going to spiel it paid -- i'm not going to steal it. >> you're the person to cover that story. coming up next we're going to look at janet yellen's speech to boston over this afternoon. this is bloomberg. jonathan: here's a story of the markets come equities are high, we are 22 minutes into the session. jpmorgan of 9/10 of 1%. citigroup eating estimates of what is happening in the bond trade. 35% jump for citigroup. .0's -- 40% year-over-year a lot of people thinking this is happening elsewhere. goldman sachs one of the big movers on the dow. david: we are going to turn to the fed. specifically janet yellen, speaking at boston at an economics conference. editorjoined by politics mike up in boston and economics reporter. what is she going to say and why? know exactly what she is going to say but my best that best guess is she will try to open a december rate increase. nothing has changed on the economic data. she will want to commit to a rate increase because of they could go w

tom: we will get more perspective from erik schatzker, toronto maple leafs failed, through -- fan througho the newly minted nobel laureate of m.i.t. yesterday. also, our inventor thisbor dynamics and how works. professor phelps, i may have as my chart of the year this collapse in productivity. you talked through this for years, this mystery of why american productivity is down. but the chart. i am not sure this is my chart of the year, but we are getting real close to it. there it is common that. -- there it is, ned. what is the mystery for edmund phelps? ned: it was a mystery to me for a long time, but then i began to think that there have been a sharp decline in the rate of innovation towards the late 1960's, early 1970's. and a whole lot of research later -- i am very convinced of that. you agree with professor robert gordon of northwestern university that there was something special about the mid-and later 20th century? well, for sure. right from 1815 onward, britain and america were on fire. first britain, and maybe a decade later, america. of course, we thought that was normal dynam

erik schatzker asked the best question -- gdp is going down for the next four years.ou explain that -- can you explain that? it's hard to explain. they did 50 basis points in -- thef cuts anticipation of any rate hike is going to be a dovish presentation. it's not going to get the dollar worked up like it did in the beginning when they first lifted off. jon: the longer you stay here, the more they are concerned -- trying to bring a bit of two-way wrist into the market. -- risk into the market. david: equities are on the highest, they feel like they will get blamed for the next correction. maybe they should be blamed for it. the scent was a really well written dissent but a dovish dissent. the only thing i can find to be worried about is everything is best premium's are really high. -- i'm not sure bringing a third mandate in when they are not even that good at getting their first two mandates right is the best idea in the world. david: you say you know the red andyou respecter -- loretta you respect her. what are they trying to do? saying we will go in november. i'm n

mark: erik schatzker is kicking things off at the top of the hour.ive. he is talking about active versus passive. looking forward to that one of the top of the hour. we talking inflation, the quickest in five months. in the u.k.. what does it mean for policymakers going forward. just at the end of the 10:00 and 11:00 hour, 4:00 p.m. hour, here in london, where the italian prime minister will join the u.s. president for a joint news conference in the rose garden. a big state dinner. brussels and is in andrea felt said, hm patch show. will behanks to we watching. >> coming up later, goldman sachs watching a profit in the third quarter. following an investor call. bottom out and going higher later. much more details on the other side of the break. this is bloomberg. ♪ >> at the white house, president for the finalting state dinner tonight. the two have a lot in common including their belief in the importance of an integrated europe. fears of a humanitarian crisis, thousands of iraqi troops are dancing on the city. to 700,000to up residents fleeing. iraq