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. last weekend, officials from the u.s. and china met in beijing hoping to make headway on trade issues that of but the nations at odds. despite a cordial veneer, by monday, the two sides were playing the blame game again. >> u.s. commerce secretary ross met with the chinese vice premier to discuss trade. while he said that talks were friendly, china is warning it will withdraw commitments if president trump carries out his threat to impose tariffs on $50 billion worth of goods. >> they have said from the beginning, the line has been from beijing they are willing to negotiate, want to buy more goods and shrink that trade deficit, but now this language suggesting if you go ahead with these tariffs mr. trump has promised, all bets are off. >> mexico saying they will begin to tax a range of u.s. products in retaliation for tariffs on mexican s

erik schatzker is joined by the billionaire investor at the festival. eric: thank you very much. i am here with ray dalio in the colorado rockies. not a bad place to be. ray: let's have it. eric: let's begin with the obvious. a memo went out to your employees and clients today about a restructuring at bridgewater. tell me about it. we want to do is formalize a partnership structure so that they are able to be -- so that there are actual rules about partnership, a designated group that is partnership. i wanted to formalize that appeared we are going from a company in which i led the company in this way, and now we are going to something that my -- that needs broader far -- broader partnership. it would be like if you were going to have mckinsey as a partnership. goldman sachs has a partnership -- erik: once upon a time they were a partnership. ray: it is a good example. when they have a partnership, they still have to maintain that partnership way of being the yet and they are a public company to we will not be a public company. erik: never? ray: never. that notion of creating a s

erik schatzker will have that interview.is bloomberg. ♪ vonnie: it's time for the latest bloomberg business flash. trading lower is today and it's taking the airline industry with it. cut its profit outlook due to the rising cost of fuel. fuel prices have risen 12% since the beginning of the quarter. 4%ena health is up almost and that is partially after the ceo stepped down. the medical tech companies considering a sale, merger, or other transaction. ofre are allegations misconduct against ceo jonathan bush that raised questions about his ability to run the country. they are facing takeover . that is your bloomberg business flash for this hour. equities,uropean still away from the wednesday session, it's a mixed day would gains in london and flank for -- and frankfurt. the ecb is discussing the end of program that spooked investors. this is bloomberg. ♪ loomberg. ♪ . am markom london, i barton. a little change, lower with food and beverage and household goods and health care insurers the worst performers. it was all about th

we are joined by erik schatzker. nt is that he has been doing a lot of other things for many years now, and would a pardon really make a difference? erik: yes. if you were convicted of a crime that you did not think you committed, you would want to have that conviction reversed. michael milken has done a great deal since he exited prison in 1993 for the good of humanity. he started a prostate cancer foundation. the milken family foundation, from which he makes very generous donations -- he runs the milken institute, an economic think tank. he has done a lot. the question is whether it is expunging, ifant you will, the record of the crimes to which he pleaded guilty. vonnie: that was my next point. he pleaded guilty. bargain.a plea this was in connection with the insider trading scandal that involved vernon lambert, the firm for which he worked, and dennis levine, that ultimately caused drexel to collapse under a racketeering investigation. milken himself was indicted on counts of racketeering in fraud -- and fraud in

i am erik schatzker and i sat down with wells fargo ceo tim sloan. ade some mistakes and are taking responsibility. erik: how much further they have to go. ♪ erik: it is unusual for a company as big as yours to say effective we, we screwed up on national television. why draw attention to yourself? attention to your mistakes, let's say by admitting that you lost customer trust instead of just moving on? tim: because we are telling the truth. we have been very clear. it is not the first time we made those statements on national tv. i've been interviewed by you and talk about it. but it is us. it is being honest. look, we have made some mistakes. we have taken responsibility. we are not perfect, but we will move forward because there is a history of this company doing a lot of terrific things which we talk about in the ad. and we focus on what we are doing for customers today. erik: the reason i ask why is because, if i think back to recent history, for example the financial crisis, there were lots of banks, probably too many to count, that made mistakes

for more, let's bring in erik schatzker. great to have you with us. tics of pardons at this moment are favorable. erik: they sure seem to be. julia: there are those around the president that are in favor of not being pardoned here. have rudy giuliani who is one of trump's lawyers, certainly writing this obstruction of justice. and an playr, scaramucci who may or may not an effort to pardon michael milken. joe: why is this an important thing for them? erik: because they are friends with mike milken. that is pretty much what it comes down to. if you are going to get a pardon you need friends in high places. you don't get much closer than rudy giuliani and jared kushner. michael milken has been campaigning for a long time. there is no question that since he left prison in 1993, he has done a lot of good. he gives away -- he and his brother have given away hundreds of millions of dollars. possibly more than that. he is a huge benefactor to medical research. good friends with francis collins, the director of the nih. michael milken has it done his best to b

it is a live interview with our own erik schatzker at the ideas festival.ust a reminder, bloomberg users can interact with the chart you have seen on gtd go. go.te you have been watching bloomberg. ♪ ♪ it is 2:00 p.m. in new york, and 7:00 p.m. in london. julia chatterley. julie: and julie hyman denver scarlet fu. welcome to "bloomberg markets." ♪ julia: we are live and bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and around the world. great dalio takes a step back from bridgewater. we are live in a few moments with the billionaire investor from the ideas festival. speaking of that, heavy hitters continue with the -- with david rubenstein. thoughts -- at foxconn. he is said to tell to his economic policies of the groundbreaking ceremony for a new multibillion-dollar facility in wisconsin. in two hours.lose let's get a check on where stocks are trading with abigail doolittle. abigail: we have a push for the major averages. we have had moves up and down on the day. at this point, we

erik schatzker is therefore an interview with director of the u.s.of management and budget as well is the acting director of the consumer financial protection bureau, mick mulvaney. let's listen in. pleasantlyas surprised by when i got to the bureau is that of the 1700 permanent career employees who the vocal, that minority that really hated me and wanted to send me on fire was minimal. most folks wanted to be good bureaucrats. that was helpful. when you are in a bureaucracy which is what i am now, what you want is professionals who can work as hard for the obama administration and the last date as they do for the trump administration on the first-day. and then work hard with the next demonstration or you can't have a bureaucracy that picks and choose. eric: there was no deep state. mr. mulvaney: not as much as i was worried about the way got a lot of a better product more quickly than i expected. it has been less burdensome than i expected. eric: how often do you talk with the president? mr. mulvaney: it depends. today, a couple times. i could go we

they spoke to erik schatzker at the bloomberg.t the china hostile to there were fraudsly about 400 the chinese companies that raise equity capital here in the united states. these are companies from u.s..that came to the of hundreds ofue them going to other capital expatriated to the country. lost eddie howe much was -- any idea how much was lost? maybe 30 to $40 billion. it is important to understand there are companies that are not that whilehe u.s. they may not be completely like their predecessors, have real cap, look at that market it is massive. biggeris there this point? >> i would argue we should start since stocks where it is something more alligators shoulde asking themselves. fraud. beyond chinese actors can lis fraud end ofnother is at the the day, i would argue this is a fact. there is no such thing as a purely private company. we are at this very strange moment in history where we are strugglingthe governme to the private sector. is largelychnology in the hands of private companies. you don't know if they are acting

i am erik schatzker, and i sat down with wells fargo ceo, tim sloan.we have made some mistakes . no question about that. we

he shared his visionh erik schatzker yesterday. take a listen.one surprise to me in the last eight months. if i go to the new york stock exchange or to goldman sachs, there senior people know summits more about crypto then i thought they would and they are doing their work and getting ready to pull the trigger. so we are going to see announced in the next 3-6 months, 3-9 months, an institutional solution. what is interesting is the custody solutions todayally proy are run by cpanies like kingdom trust. are inif you wisconsin and you are going through the form,k your career on something that says zapo? you wanted to say, you know, state street. so ironicalre goi to need to step back to move forward. we will need chester custodians to hold these case, but i am telling you that is cg and that would be shocked if you did not see it by the end of the year. >> whether it is straight street or goldman sachs? michael: it will be some kind of consortium, it gets too close enough. than the one firm is not betting the ranch. because these are very instrumen

alix: that was ray dalio and erik schatzker. david, you are a lawyer.nto a partners meeting as a partner. you start as a junior partner. it is a different psychological relationship. the relationship among the people is different between partners than employees. not the same hierarchy, even if you are a junior partner, you have a stake in it and people listen to you more. also impressive to me, he said he would have a succession. a lot of people were skeptical of that, because so much, he ran that shop, bridgewater. how it works out. not many people in that position are able to pass it off to the next generation. alix: i didn't know that. i guess it makes sense that you have more ownership. david: you think about the relationship in a different way. alix: i wanted to point out -- speaking to another network about the axios report, that it is not right on the wto thing and fox business news. the story that came out, that trump plans to pull out, is not quite right. trump has said many times, and navarro and ross have said it. if you read at the bottom of

their ownarson block that muddy waters cofounders speaking to erik schatzker at the bloomberg invest summit in your. let's see how things are going in hong kong as far as equities on the hang seng and beyond. index is at an inflection point. >> let's get into the details when it comes to the movers. in gm china under pressure along with macau casino operators. some other stock movers across the region. one in taipei climbing, set for the highest close since september 5 after a 15% rise in may sales. ae bank in tokyo falling to a january 2013 low. brokers lower as their ratings on an earnings slowdown. metcash sliding in sydney as it takes a hit after announcing an impairment charge on its supermarket assets. i want to highlight kuala lumpur , the best performer on in the the msci index, weighing the possibility of taking a pay-tv firm private and said to consider a buyout of $1.9 billion. earlier the stock soared 13%. the last check on china high-speed railway, which has halted trading pending an announcement. it felt 10% on tuesday ahead of that. it may have something to do with a p

michael of galaxy investment ners was speaking with erik schatzker about regulations and take a listenvolved ingetting the first thing you are doing is let's calm things down and go after fraud and market manipulati the first two things they are going for is a good thing. caroline: that is what we are seeing. it seems the concern is regulators having to speak across countries as well. china's push and on the market at the moment. do you think of the mama we are seeing some sort of change towards bitcoin but also many crypto assets all finding themselves not being deemed a securities, but as the assets they are likely to be seen as? >> i think the longer the fcc waits the worse it is -- sec waits, the worse it is. anything.oes not do doing subpoenas, that creates more of certainty and maybe they will -- more uncertainty and they may never make a final rule and we will keep going on in this uncertain path and that's bad for cryptocurrencies. i think what's bad also is a misinterpretation of what the hacks involved. -- people that tend to be vulnerable, not the underlying assets. maint it

vonnie: from the bloomberg summit, galaxy investment partner michael tells erik schatzker institutionaltors are coming to the digital currency space. regulators -- last year. >> they had to get involved and so they are getting involved and are doing what they are supposed dothe first thing is let's calm things down and go after fraud and market manipulation. the first two things they are going for are those and it's a good thing. the department of justice talked with market manipulation these indexes inflating their volume numbers. it's all true. so we will knock out some of the crack from the system. i think it's healthy. there are bigger decisions to make. has already said it's not a security, but they haven't ruled on it yet. heard -- i bet dimes to doughnuts it was a security. ahead, they weren't there is this group of tokens total,probably 2500 in but in reality 200 that mattered that are in this regulatory no man'land and you have to how to deal wit that d they are working on it now. my gut feeling is they will take out a law firm, take out a token, some promoters just to say you

he spoke to erik schatzker on tuesday and also noted that crypto regulators were caught left-footed last take a listen. mike: the regulators had to get involved, so they are getting involved and doing what they are supposed to be doing. let's calm things down. let's go after fraud and market manipulation. the first things regulators are going for is fraud and market manipulation. the department of justice talked about market manipulation with indices inflating their volume numbers. it's all true, so we are going to knock out some of the craft from the system -- crap from the system. i actually think it's healthy, but there are bigger decisions to make. bitcoin has already had -- in a theory him -- in etherium, they have not ruled yet. they are stuck. y were not ahead, there is this group of tokens that were issued, probably 2500 total, but probably 200 that matter that are in this kind of regulatory no ma land. they have to figure out how to deal with that. my gut feeling is they will take out a law firm, take out a token, take out some of the promoters of these things, just to say, you

he spoke with bloomberg's erik schatzker this week at the aspen ideas festival. sk in the financial system today, the risks to investors, people with capital are different than they were clearly, in 2007-2008. what would you say are the principal risks? in order of importance. ray: ok. as far as the debt crisis, we calculated that we would have a debt rollover crisis. we don't have that. we have a situation in which the number of ious that we have, in terms of not only debt, but health care, pensions, and so on, are a lot. there are more ious that can be -- dealt -- than can be dealt with, and that is a problem. as we sell more bonds into the market, because we are and the process of a larger deficit, and running down the balance sheet, that is supply and demand. if i take three things, in terms of what i would say are the three most important issues of our time, what they will become a other than how we deal with the next downturn, i would take a second on that downturn -- if you have a downturn and we are so much at odds, i think it will be a difficult time. i t

our own erik schatzker is in and -- is in new york. parson, welcome. carson: good morning. we have built some suspense. what is the company? carson: a china-based for-profit education company. inc: anyone who invests chinese equities is probably famiar with childhood education. carson: this is a $26 billion company. you say is a fraud. ,arson: it is a real business but it's profits are fraudulent. stockou look at the price, some people might say it is institutionalized, why would they do this? i would point to the value of the chairman's holdings. three year his holdings were only worth about $900 million. today they are getting close to $8 billion. to be clear, it is a real business with real students and real learning centers. it is not able to grow nearly as profitably as it has been portraying. eric: there is a distinction. it is important to make this point. there is a distinction to be drawn between this kind of fraud , and we will get into the details of your thesis, and some of the other frauds you have exploded -- exposed, which you have described as zeros. there w

waters with our own erik schatzker. the teup, looking at shares as they bottomed out.ese company could still tougher times ahead. we are looking at those. what it may be facing. this is bloomberg. ♪ rishaad: you are back with bloomberg markets. zte, event after reaching agreements with the united states, troubles are harder from over. they'd need to replace their entire management and board. all of this unnerving investors and wiping out $2.7 billion in market value. edwin china is here with me. it was almost facing bankruptcy. it has been -- it has risen like a phoenix. that's right. >> replacing your entire management but toward as well. fullight, they nominated a slew of ceos. for theal junction industry. just as we are getting into 5g roll out and have le and the need to rebuild trust and credibility with not just the customers, but also with government and regulators across the entire planet. rishaad: what about lawmakers in the u.s.? they could move further to restrict with the company does there. where are you with this? >> there are a group of vociferous u.s. l

bill thating up, the of the billionaire founder of bridgewater joins erik schatzker at 2:00 p.m.trump will be speaking at the groundbreaking of the foxconn factory in wisconsin that the company says will bring 13,000 jobs to the region. if you missed out on any of our charts, gtv is your function. live from new york, this is bloomberg. ♪ >> oil rises over 10%. is it a short-term supply issue from canada or a result of harsher u.s. treatment on a ron and supply adages? the trade battles claim another victim. china could buy 4 million tons of soybeans from brazil. the problem, recovering from a trucker strike and -- ♪ alix: i'm alix s

erik schatzker joins us with a special guest from the event. >> i'm delighted to introduce bill mcglashan founder and managing partner of tpg growth. more recently, he's become the cofounder and ceo of a $2.1 billion social impact investing fund. that's where we will spend the bulk of our time this morning. good to see you. the last time i talked to you about the fund was back at the world economic forum in davos. at the time, you made nine investments and you committed about a quarter of your capital. what the you spend today? bill: we've16 investments and we are halfway through the in the space of less than a year. pretty quick. bill: things are moving well. the impact that we've committed to is going extraordinarily well. we are ahead of plan on fundamental performance of the business, which ties to the impact. erik: i want to talk about impact. let's get into this. it is a thorny subject that many people wrestle with, both conceptually and practically. how do you measure impact? half we spend a year and a before launching the fund working with bridge span and 80 different organization

weinstein wille be talking to erik schatzker.s trying to revise it using his gains. jason kelly for global television, can you walk me through the logistics? most read story on the terminal. it is about bill ackman. and real estate. do, there aiming to is technical stuff going on here. the net asset value has a wide delta to the stock price. ackman has been trying to make that up, essentially. , the fundews for him is doing better. he has also been successful as a real estate investor in philadelphia. outside the fund. he is essentially using that asset to borrow money to buy back shares in this to get back. david: to raise the price. >> exactly. david: he thinks it is a better deal. >> that is exactly right. this is where investors are always asking, what is your stake in this? you are a smart manager. >> he is no different from jamie dimon buying jpmorgan when he thought it was underpriced. he made a lot of money off of it because he was right. alix: is that desperate? >> it depends on your perspective. >> he had a terrible yea

that was carson block there with erik schatzker.more engineers for its automated driving team after announcing an investment in grab. let's go to a bloomberg columnist toeen writing about this. pretty vague overall. what is your take? >> it was very vague, that statement that came out during the day. it was full of fluffy buzzwords. it wasngs i took out of talk of financing, of maintenance, those kinds of things. grab andto me that toyota want to be in the business of helping drivers buy cars, find financing and get into the area of insurance. they talk about user-based insurance. way through to predictive maintenance and that is the kind of thing toyota would want to be involved in. it does lead to a will be pushing toyota cars onto drivers , drivers who may have been thinking of buying whatever else. heavy investment grab and holding a seat on the board. that is a good deal for toyota. grab is there a risk that could find itself becoming asset heavy? i am curious on that and how would that play out? >> that is a good question. tha

erik schatzker is with mr. eibl. let me begin this way.e its difficulties days. risks of increased and with the absence of a lot of banks and liquidity in principle, there are opportunities. i would say going first just forward is a lot of opportunities. why have so many commodities funds gone out of business? nine thatat least have shuttered in the past five years christoph: a lot of them have been performed. and it was difficult in the last couple of years. we struggled at times because the whole cost of easing over the last couple of years is distorted markets and liquidity and volatility. fundamental analysis is not work as well as it has in previous years for many ways i think what we've learned over the last couple of years is what we need to take on in order to make things better. in many ways you need to understand the market has much less liquidity than before. with less liquidity you basically of more distortion. more distortion leads to opportunities. whether that's in the metal or energy agricultural space. we deal most in the