erik schatzker is there with an exclusive interview with an oil titan. ik: it is amazing to you run into at the st. petersburg economic forum, bob dudley, the ceo of bp has been kind enough to share a few minutes of his time for me. people may not know that bp actually still has a business here in russia. will getartners and we into that. i would like to begin by asking you about oil prices, of course in russia together with opec and other world producing nations have extended their production cuts by nine months. tohasn't done a whole lot lower the oil price since then. are you surprised? bob: it is an unprecedented agreement. stabilized to a degree, the oil markets. had they not come to that agreement we would see a lower price. i think on a daily basis it is bringing supply and demand back into balance. to thece get it down average over the last five years. it will take some time, but i think it is going in the right direction. erik: the rand is just slightly north of $50. if the cuts were extended, where would it be? bob: it is hard to say. vivian pro

erik schatzker for us. i want to draw your attention to tv . you can see erik schatzker there. you remember the last part of your tv? this is bloomberg. ♪ tom: good morning. eye.scratching my it is the pollutants and our studio. china and climate change. look at the pollution of beijing. in the winter, the pollution is terrible. inly may, in boot -- beijing, they called it an airpocolypse. how do you link the president and the paris accords to the airpocolypse with beijing air pollution? 's retreat from paris does not necessarily change that much in terms of the approach to climate. ahead.es are moving pollution, climate change, the , allonmental credit crunch of this is constraining profitability. changing corporate action. pulls outether trump of paris or not, i don't think this makes a difference to how investable companies are going to behave. tom: give us a league of nations compare and contrast. i saw a chart yesterday saying we are joining syria and nicaragua in our opposition to this accord. what?" to big "so what we are going to hear at 3:00 p.m.? there are two issues

erik schatzker there at the st. petersburg forum.al economic form a little later on. we have the russian central bank avner, the finance minister, and founder of [inaudible] and a rare apparent coming through, we have the man in charge of glencore, mr. glase nberg. atwill be on that panel live 1:00 p.m. the aussie dollar down. is under contraction. how much should you worry? and theie dollar down british pounds do not need any reason. the pound is lower. let's bring in a man who believes everything he saw when it comes to europe. it is matt miller. you are a european. climate change, will go to the rose garden. we will understand what the position is on climate change later today. theould be a moment overall derek times said in terms of your list-european -- u.s.-european relations. matt: donald trump is leaning toward quitting the paris accord but he has pressure from ceos to stay in, notably elon musk. he -- all six of his fellow leaders, seven if you count the eu as a separate part of the g7, encourage him to stay in the paris acc

let's go to erik schatzker, who is in st. petersburg. theesume you talked about -- in the company. glencore approached the u.s. agricultural and wasies of bunge rubber up -- was rebuffed. there is a hole in glencore's portfolio. they want to be bigger in agricultural commodities. they don't consider themselves influential enough. to be bigger in north america and latin america. bunge fulfills that requirement. to fact they have said no glencore does not mean glencore will not come back for another bite at the apple. badked if he wants bunge enough to go hostile and he says he cannot talk about it. we were not able to establish whether he is prepared to go that far. proves if bunge resistant and glencore is unable to buy it, there are other companies he may approach. glencore has options. he said they remain opportunistic when it comes to expanding other parts of its commodity portfolio. the company is active and 90 different commodities. it could be anything from coal, to fairest or nonferrous metals. -- two ferr -- to ferrous or nonferrous metals. does he believe trade is such a ho

petersburg where erik schatzker is standing by with a guest. erik: thanks very much.e with jean raby, the head of natixis little asset management, a firm with $900 billion in investment. good morning. happy to have you here. this is a challenging time for asset managers. there's compression. there's the shift from active to passive. there's underperformance. how does natixis respond? we are an actively managed firm that seeks to generate alpha for our investors. ando believe that in increasingly uncorrelated environment, where the tide is no longer rising for everybody, our strategy is going to make further inroads. we believe that performance will remain key, and increasingly key, and as a result, we continue to encourage our managers to think long-term, to think performance, and to not hug the benchmarks. that is what we believe will be the answer to the future challenges. erik: by active only? is there no room for a firm like the texas or do blackrock and vanguard own that market? jean: i'm not saying there is no place. it is here to stay. we want to stick to what

erik schatzker sat down with bruce berkowitz.t does not make sense me, but i am not a gross investor, not a visionary. i am the guy looking to buy a dollar for $.50. if i am wrong, i will get my $.50 back. if i am right, i will do better than the dollar over time. erik: you are underperforming, but you are hardly alone. why do you think it is so difficult for active managers to beat their benchmarks? bruce: the big problem is when you are it an investor in public security, people have to agree with you. in other words, i can be right, but until others agreed i am right, i will look very wrong. what it takes for me to be right is for a the companies i invest in to fix the problems that are fixable. erik: but you are a values investor. there are lots of other active managers who are not values investors, but they are underperforming as well. it is like a disease. why.: i do not know i do not pay a lot of attention to other people. -- i just go by the math. i basically follow the cash. i stick to that process. as long as i still thi

erik schatzker is there.ed about the shift for the break in the united states. >> he doesn't want america to get disadvantaged against other countries. what does he mean? ,et's see what he finally does talking about it does not look like this. -- ink he is going to understand he does not like the trade deficit with germany, mexico, china, which is high especially with china. he has also got to be careful because china does import a lot from america, agriculture, one of the biggest takers of agriculture from the united states. it is one of the biggest sales areas. he has got to be pragmatic and what he does, and i doubt there will be a trade war. you have not seen this chinese more the renminbi being popular in the united states. so he mean subsidized goods coming into the united states. we talk, and if you talk about russia, is subsidized goods coming from china into the united dates, and putting united states workers out of business, closing factories? it is what he talks about. if you look at the products t

he told erik schatzker that the battle could take five more years.in court absolutely. when you go back and think about it, there are issues of breach of contract. there are constitutional issues. how do you create an agency that oversees fannie and freddie not answer to any branch of government? how did you let an acting director run the place for three years and then decide on a network suite and the person was supposed to be appointed by the president and approved of the senate and never happened? erik: other courts have not found in your favor. how should the supreme court see it differently? bruce: we have not argue the constitutional case you. we argued the process was wrong and that was a misinterpretation of the law. how can it be a law that was hundreds of pages and basically said that a government agency can do whatever it wants whenever it wants? erik: was that a mistake? should you have argued it was a constitutional case? bruce: yes, we should have argued it. erik: what i'm trying to understand and you shareholders would love to know --

speaking now with erik schatzker is the chief investment officer at eight you are capital management active versus passive. modelse are all running or if we are all caps waited, it becomes self-referential with no center. we need good active management. >> before we run out of time, you have long complained that hedge funds get paid for areormance for which they not responsible, which is to say, beta of any one of many flavors of beta. whenu chuckle with glee you hear institutional investors, allocators, else is talking about hedge fund managers accountable to performance? >> the answer is yes, and it has a joker versus batman vibe to it if you think about it. i'm wearing makeup. i could be the joker now. i have slightly defended hedge funds recently in the last couple of years. >> a tepid defense. >> very good. i call this a tepid defense of hedge funds and i do not think it will make me a hedge fund hero. to mention it, starting in the year 2000, it has been a 17 year thing for us, we have written that hedge funds , it is arguable and people have different opinions. a lot of data.

you told erik schatzker his tweets should not be taken as off-the-cuff.has thought through them more than people think. the still believe that? tom: absolutely. it is like, he is the uber of the president's. he is the amazon of the presidency. as good as bloomberg is, as good as cable tv is, social media is a form of communication which adult in his level in my level have not had use in their careers. he has found a new way of communicating which is unsettling. presidents usually have this cadence in this political balance of never saying anything. say something beautiful, everyone will not. megan: tom barrack tells me what he believes trump's america first agenda will succeed, and why is good for the entire world. tom: america is the best spot in the world for the preservation of capital from everywhere. i think his protectionist notion is the best global elixir we can have. ♪ ♪ megan: one thing at think cuts in the interests people is the market response to the administration, and continuing to price and optimistically process on a conference of tax ove

you told erik schatzker his tweets should not be taken as off-the-cuff.has thought through them more than people think. the still believe that? tom: absolutely. it is like, he is the uber of the president's. he is the amazon of the presidency. as good as bloomberg is, as good as cable tv is, social media is a form of communication which adult in his level in my level have not had use in their careers. he has found a new way of communicating which is unsettling. presidents usually have this cadence in this political balance of never saying anything. say something beautiful, everyone will not. everyone will say that was so politically voiced it means nothing. this president is sending shockwaves. it is not off-the-cuff. when it's off-the-cuff he is doing it for a reason. megan: is a recommended to a criticism of the mayor of london in the immediate aftermath of the terrorist attack? tom: look, if it were me, again, why do it? there is no gain in doing it. what is he do it? he goes it is how he feels. he is communicating to the world i will tell you. you can

erik schatzker joins us with more.e were just saying in the break -- first steve black -- the point being he is not the first heir apparent to be leaving jpmorgan. the question with jamie dimon is always whether the guy, because they are all guys, was pushed or whether he jumped of his own will. in this case, it appears he left of his own will because the memo that details a little bit about his archer says he has chosen to leave after 13 years at jpmorgan. the same thing happened with michael cavanaugh, co-ceo of the investment bank and he left in 2014 to go work at carlisle. he ended up as the chief officer at comcast. jobound the demands of the and pressure to be jamie's ultimate successor to much, so he left. matt not know yet why chose to left. we will buy the narrative that he chose to left -- chose to leave. that was not the case with jes staley. he left under pressure in the wake of the london whale scandal. he subsequently left to go to blue mountain. steve black and bill winters did not leave of their own acc

you told bloomberg's erik schatzker his tweets should not be taken as off-the-cuff.e has actually thought through them more than people think. the still believe that? tom: absolutely. it is like, he is the uber of the presidency. he is the amazon of the presidency. so as good as bloomberg is, as good as cable tv is, social media is a form of communication which mature adults in his level in my level have not had use in their careers. he has found a new way of communicating, which is unsettling. presidents usually have this cadence and this political balance of never saying anything. say something beautiful, everyone will nod. everyone will say that was so politically voiced it means nothing. this president is sending shockwaves. it is not off-the-cuff. when it's off-the-cuff he is doing it for a reason. megan: do you think it's appropriate the president of the united states to tweet a criticism of the mayor of london in the immediate aftermath of the terrorist attack? tom: look, if it were me, again, why do it? there is no gain in doing it. what is he do it? he goes

scarlet: that was erik schatzker, speaking with bruce berkowitz.ad, blue apron getting ready to deliver a u.s. ipo. how does it measure up to others? they have already delayed the initial public offering. we will discuss. ♪ ♪ scarlet: this is "bloomberg markets." julia: competition in the food delivery space is heating up after amazon announced it was buying whole foods. blue apron, targeting at $3.2 billion valuation in the u.s. offering, the company hopes to salvage its shares for 50 to $70 apiece. joining me this morning is out -- eric granger, hot off the press with breaking news that were -- they were too in the likes. a person familiar with the deal tells me that management is tweaking its pitch. the company is starting a roadshow today after it set the terms. they have got 10 days into the deal prices and the things that they are pointing investors towards our differentiation between what they do and what is redelivery is. boxeser, blue apron has of prepackaged recipe parts. all the ingredients are broken down for you in the right size. they

erik schatzker have the opportunity to discuss the topic with the bank of america chairman and ceo, brianin. >> we hear all kinds of argument for why banks should hire and promote more women. they make better risk managers, generate higher returns, they are less greedy, is that true? [laughter] >> is half the population at half the talent base you are dealing with. those are interesting sideshows to the real reason. are you going to draw your account from one half of the population? if you think you will get what you want, put any analogy out there, you are nba draft any want to choose half the people and others get half the people, you get five picks, he will not fare as well. i think all of the ideas get me, we payieve people very well if they are male and very well if they are female. it is on the job and what they do and how they perform. soundbites here the real question is, are you going to draw from 100% of the population in an industry and a company that is completely dependent upon talent? people andy talented big machines and the way they operate in terms of artificial technolog

brad speaking earlier with bloomberg's erik schatzker.ou need to gear up for tomorrow's trading day ahead. this is bloomberg. ♪ scarlet: what'd you miss? another tech lead decline in u.s. stock. double the decline on the s&p 500. technology the clear loser in today's trading. joe: even further beyond that, those same stocks that ran it up and everyone was chasing, now we are seeing them flip. valuations,ng about it is not just about the most overbought things. it was across the board. >> people have been honing in the dead going after financial conditions to pull the speculative activity there. scarlet: i will be taking a look at earnings reports from monsanto along with general mills. those reports will be released it :00 a.m.. >> i will watch the stress tests tomorrow, the second part of the annual stress test. it will be important to see what kind of dividend levels things are able to pay out. prices tomorrow. scarlet: that does it for what'd you miss? julie: bloomberg technology is next. joe: this is bloomberg. anchor: you are watchin

. >> that is the executive mansion to -- management director speaking with erik schatzker. tech selloff has dragged the rest of the nasdaq with it. we will look at tech collateral damage next. this is bloomberg. ♪ >> losing as much as 3.5% revamping global operations, under armour and adidas. daily move compared to past moves. we're looking at this upper panel here. it is a distribution curve of the daily turn over the past three months. this is the move here off by more than 3%. you can see that is the biggest one-day move since march. late march when the stock tumbled almost 7%. was when third-quarter sales missed analyst estimates. this -- this is for likely -- nike. we have not seen a move your than 3%. about 2.7%.time was quite a move for nike. it has not been a great story overall. we show the share price movement in the stock is not closed more than 3% higher. the nike stock is down about 8%. investors trying to assess the global overhaul, the changing of its business struck -- a structure to determine whether this would be enough to better compete against adidas and

earlier today, erik schatzker spoke to bruce berkowitz, the invest -- chief investment retail capitalt, and we asked him about what this could mean for sears? cracks -- >> it seems to me that there is a need for physical space in retailing. it needs to have tremendous location. headlines, and i view it as positive because i think it reinforces my thought that the physical world is not disappearing, the physical space is not disappearing from retail. malls are not disappearing and doing quite well. they are transforming, and back it ist i was saying, life. outdoor-indoor cafes, movie theaters, where you can have a social community life and get everything done in one place, see you see the transformation of malls in good location. people do not understand that the value, the realty value is not even building as much as it is in the parking lot, where if sou have a building that ha 8-12 acres of land and is in a part of the world they were -- where there is no empty what -- land like that, that is tremendously valuable. you have a basic level of industry -- infrastructure already built-i

ceo victor dodig is standing by with our own erik schatzker. erik: good to see you.e focusing on the middle market, private banking. nevertheless, cibc is a tiny player in this market, relative to several of your canadian peers. royal bank of canada generates 20% of its revenue here. didi and female both to 30% plus beam oh -- bmod do 30% plus in the united states. victor: we have been in business for 150 years. we just celebrated our anniversary. our -- our strategy was clearly a test purely a client driven strategy. the.op 80% do business in united states we did not have that full service -- banking platform we needed, and we went looking for the right bank and we found the right bank in the private bank, a bank that is focused on clients, focus on relationships, private business and wealth management, which we believe is the most attractive part of the banking value change. erik: so even if i adjust your financial to reflect that, less than 10% of your revenue would have come from the united states. where do you go? do you want to catch up to these other companies

he sat down with erik schatzker. we hear all kinds of arguments for why banks should hire and promote more women. enter risk managers, generate higher returns, less greedy. is that true? [laughter] is anyn't think that good reason. half the population and half the talent base you are dealing with. those are interesting sideshows to the real reason, which is, are you going to draw talent from half of the population? put any analogies out there -- if you are an nba draft, you only get to choose from half the people, others get to choose from everyone, who will come out better? you are not going to fare as well. all of those ideas get into -- believe me, we pay people very well that are male and very well that are female. it is on the job and what they do and how they perform. those are all sort of sound narratives. the real question is, are you going to draw from 100% of the population in an industry, in a company that is completely dependent upon talent? we havedo two things -- talented people and big machines they ope

live from new york, this is bloomberg. ♪ >> erik schatzker speaking to the ceo blank or. that interview happening. the big headline it came out to me as a shocker, glencore is looking for acquisitions. two stories, one is m&a. anything at the right price will be good for us. the question being what is the right price? >> that is generally true. --when you want to see iron iron or at 65 and you want to see oil below 50, you would think there would be a lot of opportunities and yet we not see materials change. >> it does seem to be going forward. >> you go back a few years, they were looking to acquire rio. think about that for a moment. about a year later, they were talking about what the future of the company would be and now they seem to be in a position where they kenexa talk about acquisitions. a remarkable transformation of one company. >> can they survive, that was the conversation. , in a goodto go back way, it gets really persistent. >> now we're talking about questions about going hostile. effective ceo in the business today? >> i think most people would agree wit

erik schatzker gauged the mood at the st. petersburg international economic forum.ionald trump's in have landed the best thud corporate america. not so in russia. he had a sympathetic audience. putin was speaking at the economic forum, said donald trump should not be criticized for withdrawing and cast doubt on the viability if the united states does not sign on. >> countries with such large issues such as the u.s. are not going to work, not going to. no agreement could be ready for citing a ratifying -- or ratifying. voice,nother supporter the russian oligarchs who controls one of the largest aluminum producers. he said trump is right to be skeptical for the terms of the paris accord, and he questions the sincerity of u.s. ceo's who criticized trump's decision. >> they want to stay politically the close ofbehind the door, they all want it. a guy who really puts the people accountable for what they said in paris. erik: that is one point of view. oil ceo's i spoke to said they think climate change is real, and more forces will drive the ship without ever donald trump

petersburg and erik schatzker sat down with a russian politician and businessman and asked him aboutin the era of president trump. sooner or later it will all settle. >> you have not given up hope? >> no, it will take some time but officials sanctions will go later -- officials say since will go later. -- sanctions will go later. they will not be limited by sanctions but they hope, they do -- in a notgo stable situation. in essence, they do sanctions and this will go very fast. it will be profitable. if it will be interesting to do business together in russia for russian companies. it will go. no legal sanctions will affect that. i learned from american investors, which is a real problem. the russian economy, we stopped american investors and they said the sanctions do not stop us. the economy of russia, it is not growing fast. it is not interesting to invest. you have to do a strategy and show us how the russian economy will develop when the oil price drops. what will be the new sectors, the new vehicles for the growth of the russian economy? the second question -- is there a plan?

our colleague erik schatzker traveled to st.ersburg, where he set down with several of russia's leading business and political figures. here are the highlights of those conversations. >> mr. trump was promising a warmer relationship with russia. do you still think that is possible? >> it is not warmer. world will sleep better if russia and america will have a better relationship, but his ability to conduct policy now -- >> the whole world would sleep better why? and americaussia are the largest nuclear powers, and not to have dialogue between them i think makes the world a much more dangerous place. >> because there is the risk of what? >> risk of any conflict which can happen. facts.ace the we have the situation before. >> you are referring to the cold war? >> we are in a cold war. >> you believe we are in a cold war? >> absolutely. >> president trump said he will consider major action, his words , if his administration decides that steel and aluminum imports threaten national security. if he were to undertake major action, wha

erik schatzker is here.none other than bill gross, known as the greatest bond investor of all time. now with janus henderson. we usually see you from newport beach. wonderful to have you here at bloomberg headquarters in new york city. come more often. bill: it is changing, high-rises and all. erik: let me begin with this question. you explain to your self a world in which the s&p 500 started the day 11 points off of its all-time record high, trading at almost 19 times forward earnings, high yield spreads at 370 basis points, but at the same time you have the 10-year starting at 2.15 and the yen having rallied 6.5% year to date. playing out strongly but risk trades also playing out strongly. bill: you mentioned several assets. erik: the investing world that you have to confront every day. bill: if there is a common factor, i would say it is the expansion of credit, the credit being generated by central banks . the fed has been out of it in terms of building its balance ecb havet the boj and been moving along

he sat down with erik schatzker. ♪ ♪ ramy: welcome back to "bloomberg best." i am ramy inocencio.e of the major political stories that moved markets this week, starting with theresa may's efforts to shore up support and form a new government after last week's snap election. ♪ >> prime minister theresa may could be bracing for a civil war within her own party. yes, this comes after last week's election. she is facing pressure from lawmakers who hold her responsible from the outcome of the snap election that cost the conservative party their majority in parliament. this comes on the heels of the first meeting with the cabinet since the election. >> i am keeping a close eye on this door, because this afternoon, theresa may has been holding her cabinet meeting. as you say, leading members of the cabinet have come out and held strong support of her, for example foreign secretary boris johnson and brexit secretary david davis, both sharing fairly unequivocal support for the prime minister. >> u.k. prime minister theresa may coming under increasing pressure to abandon a hard brexit as sh

our colleague erik schatzker traveled to st. , where he set down with several of russia's leading business and political figures. here are some of the highlights of those conversations. erik: before the election, mr. trump was promising a warmer relationship with russia. do you still think that is possible? >> well, i think -- it is not warmer parent but more constructive. there is a good reason for this. the whole world will sleep better if russia and america will have a better relationship, but his ability to conduct any policy now is under a threat. erik: the whole world would sleep better why? >> because russia and america are the largest nuclear powers, and not to have dialogue between them, i think makes the world a much more dangerous place. erik: because there is a risk of what? >> risk of any conflict which can happen. i mean, let's face the facts. we have the situation before. erik: you are referring to the cold war? >> cold war. we are now in a cold war. erik: you believe we are in a cold war? >> absolutely. absolutely

he spoke exclusively with erik schatzker about the flood of money going into etf. >> etf investing, toknow, the idea of being -- you benefit by the growth in the u.s. economy, the u.s. economy improves, the markets improve, etf's go up in value, and there is a direct correlation. but an etf is only as good as the constituents within the etf. and it doesn't take into account the illogical extremes. there is a point where it makes no sense to buy etf, and general markets are overvalued. they are highly capitalized and part of etf's are overvalued. so it does bother me that a lot of sort of blind decisions have been made, and thinking as being delegated to a mathematical equation, that everything should average out ok over the long term, but the last time people got caught up in this, they were money for 13 -- and it took 13, 14, 15 years to recover, and that's not thinking about the valuation of that bottom line. >> are we at that point now, where it doesn't make sense to buy an etf because the underlying valuations are two -- too rich? >> it doesn't make sense to me. i'm not a growth in

you told erik schatzker that is tweets shouldn't be taken as off-the-cuff. he has actually brought -- thought them through more than people think. do you still believe that? >> absolutely. absolutely. of the president. he's the embassy of the presidency. -- amazon of the presidency. as good as bloomberg is, as good as cable tv is, social media is a form of communication which mature adults at his level in my level have not had intense use in their careers. he has a new way of communicating, which is unsettling, because presidents usually have a cadence and political balance of ever saying anything. say something beautiful, everybody will not. everyone will say it was so poetic. it means nothing. this president is sending shockwaves. off-the-cuff. when it's off-the-cuff, he's doing it for a reason. reporter: do you think it's appropriate for the president of the united states to tweet criticism of the mayor of london in the immediate aftermath of a terrorist attack? >> bloke, personally if it were me, why do it? there's no gain. why does he do it? because it'

joe: that was erik schatzker talking to bruce berkowitz, fair home -- fairholme capital founder and ceot: coming up, we have an exclusive conversation with sheryl sandberg on technology and politics. from new york, this is bloomberg. ♪ scarlet: "what'd you miss?" foodszon acquires whole as it has done, how much will it shake up the growth surge? a tweet, "if closes, whole foods will be to amazon what instagram was to facebook." for more context, let's bring in a professor, joining us by phone. professor, great to speak with you again. you had predicted this back in may, that perhaps amazon would buy whole foods, saying that just because of the urban locations, this would be worth it. they could close them down, the stores, and turn them into warehouses, and i think they could justify the price. how do you see this deal working? >> good to be with you. i think this is a game changer. you're effectively going to have amazon in the wealthiest, most affluent households not once every other week, but twice a week now. this threatens not only retailers, but it potentially disrupts cbg compani

erik schatzker asked glencore ceo ivan glasenberg about oil. e totald control of the price and now they do not. the shale oil industry has 5 million barrels coming out of the united states. erik: 10 million in total. ivan: shale oil itself, 10 million barrels a day. opec got in a position that the more they cut, the hires -- the higher the price. , they stay alive and keep going. they do not have the control they did before because they push it up and the shale oil increases and that is what is affecting the market. it is a tough one. erik: how does it affect your business? ivan: we are not a big producer of oil, we have production around the world but not as big as come in comparison to the total trade we do. , from the trading side, you like volatility but not daily volatility which you get today. the narrow range which has been prefer trains you . a difficult trading environment in the moment. opec, theink situation is a good reminder of how quickly things can change. i would like to conclude by asking each of you to share with us how you thi

scarlet: speaking with erik schatzker in st. petersburg.e headlines, the other headlines on bloomberg first world news with mark crumpton. pruitt told reporters that the united states would not apologize from withdrawing from the paris clavichord. he also did not answer questions on whether or not president trump believes climate change is real and a threat to the united states. through it says the president's views on climate change were focused on what pruitt calls "one singular issue." what are the paris court could be good or bad for the united states. rex tillerson is downplaying the significance of the u.s. pullout from the paris accord, taking a photo op with brazil's visiting foreign minister. the secretary of state says that the united states will still cut heat trapping pollution. >> i think it is according to that we notice that we have a terrific record on this. that was done after the paris agreement. cut heat trapping pollution. >> i think iti do not think we - we will be changing this ongoing in the future. former exxon a mob

erik schatzker spoke exclusively earlier this hour and after the hearing. >> it expresses a differingmount of you -- of use. you suck clients expect concerns about conflicts of interest. you saw a unanimous consent of selling market data. that is something you saw in the second panel, and i was the only one who represented the same in entrenched are positions. >> i have not watched or participated in every single hearing on equity market structure. i will say this is the first time i heard your rivals, and nowally tom farley the cboe acknowledging there are these conflicts of interest and they have to be managed. was that something newer if not totally new for you? >> it is definitely a new thing. data that proves that these are threatening and it is important to note that not -- brokers are violating jpmorgan, the size of the payment, the kickback, the rebate, compared to the client franchise, i look at a broker that managed it well, and many brokers fall victim to the short-term payment rebates. when those rebates are not given kickback, a former chief economist calling it an illega

erik schatzker is joined by a special guest. erik: steve orbuch is here. $4 billion real estate business. good to see you. i want to get big picture right off the bat. when you look at commercial real estate in america today, what do you see? steve: look, i guess i would start out at a high level and say, generally speaking, and i say generally because real estate is such a large and diversified asset class, that statement statement you make has an exception, but we think the markets peaked in 2016, likely the first half of 2016, and pricing. we think the markets have transitioned into a period of pricing discovery, usually the precursor to the next correction. erik:we think the markets have transitioned what do you mean by pressing discovery? hase: that a big ask developed in the marketplace. you see it most profoundly in transaction volumes. in 2017, they are way off levels from 2016. in particular, you have seen a foreign activity. activity by foreign buyers. that is very important to watch. foreign buyers are such a large driver of pricing and volume i

erik schatzker sat down with him and asked him about the flood of money into etf's, valuation in techzon and google. make sense to me but i am not a growth investor, am not a visionary. tom the guy who is looking buy one dollar for $.50 and if i'm wrong, i will get my $.50 back and if i'm right i will do better over time. erik: you are underperforming but you are hardly alone. why do you think it's so difficult right now for active managers to beat their benchmarks? the date problem when you are in an investor in public securities, people have to agree with you. in other words, i can be right but until other people agree that i am right, i will look very wrong. rightt takes for me to be is eventually for the companies i invest in to fix the problems that are fixable. are a value investor so there are lots of other active managers who are not value investors and yet they are underperforming as well. it's like a disease. >> i don't know why. i must admit, i don't pay a lot of attention to other people. i try not to be biased with whatever is going on. i just go by the math. i basically