erik schatzker is here with me. this is the official report from goldman sachs. we have more information. lloyd blankfein will remain the chairman of the board until the end of the year and subsequent to his retirement, he will become the senior chairman of goldman sachs. we don't know what that means because goldman has not had a senior chairman. the role lloyd blankfein will assume in the board is unclear. it is noteworthy that it appears he will remain involved in the shadowd something of a over david solomon as he begins on october 1 subsequent to lloyd stepping down. alix: becoming senior chairman. what does that shadow look like? how do you have clear succession? erik: we know it is not 6'5". alix: i also want to get in ken leon, cfra head of equity research. we just had this debate half an hour ago when the earnings came out. what do you make of the announcement? ken: to the comment of senior chairman, it is not executive chairman. a senior chairman is not meredith -- meritive. i would be surprised if this is something that is a long-term position. i would

let's get to it erik schatzker with a key voice on economic opportunities.at would be henry and you know how staring i am with my praise, but i do want to reports arery's among the few must reads and finance. your latest report is called new playbook required. that in and of itself is provocative enough. you say in this report we are living in unprecedented times, what do you mean? henry: well, just pick up the newspaper. [laughter] no, look, a lot is taking place that are secular shifts. one is the move towards national agendas over global agendas, and trade,early is affecting so let's come back to that. the second, as you know, i travel quite a bit, i was recently in mexico, italy, spain, and shanghai last week. if you look around the world, including the u.s., we are moving from monetary policies as the number one driver to fiscal. that is leading to i think a different investment playbook in terms of what macro folks and asset allocator's be doing with their portfolios. erik: let's dwell on that because the word secular gets thrown around a lot. but when

larry fink spoke with erik schatzker. between china all bets are off. >> meaning what? like gdp will slow dramatically. more uncertainty about the world and how the u.s. is being pretrade. >> gdp would start slowing next year and the stock could drop 10-15%. blackwater -- blackrock is also reporting [inaudible] in the second quarter. that is your business update. will get another perspective on today's summit with president trump and vladimir putin. our guest, the top democrat on the senate armed services committee. we will discuss the criticism of the summit from his colleague, the head of the committee, senator john mccain. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and chal

that was anthony scaramucci speaking with erik schatzker. news, theeaking turkish president has appointed his son-in-law as the treasury and finance minister. the former deputy prime minister who is the economies are of the government is left out of this. take a look. you can see an immediate reaction. not good. this is the dollar spiking. ,> the worst expand on the day now at the bottom. they do not like the idea of the son-in-law getting that job. >> we will continue to monitor this for you. this is bloomberg. >> twitters efforts taking its toll on its shares. pollen the most since march after a washington post report said the company's rate of account suspensions has doubled since october 2017. twitter is our stock of the hour. talk us through what happened here. totter's own disclosure came weeks ago. we are seeing the dramatic reaction today. >> this really amounts to a delayed overreaction to the disclosures reported two weeks ago. they have been finding three times the mat of spam and automated accounts. that number has risen to 10 mi

he spoke to bloombergs erik schatzker. cooperman: the decision was a need to resize my staff.rific partners and associates who have done a great job for me. i give -- >> if we had you on camera, you would be tearing up right now. cooperman: going from 35 people to 15 is painful. casting a vote of confidence in paypal and the hedge fund taking a stake in the payment processor. in an investor letter, paypal shares could reach $125 within 18 months. this is bloomberg. ♪ scarlet: it is 3:00 p.m. in new york and 8:00 p.m. in london. scarlet: welcome to "bloomberg markets." ♪ scarlet: we are live in bloomberg world had in new york. here are the stories we are covering. e is for earnings. alphabet caps off a big week for tech results. will companies reignite momentum? julie: a moment of truth for qualcomm and xp. the largest ever deal will be dead or done by the middle of the week. we live details in today's deals report. we will stick with the number two democrat in the house from maryland. the strategy to try to take back the majority. we are one hour from the close at trading -- o

eric schatz or is on -- erik schatzker is here. you for joining me. >> thank you for having me. erik: there are three regions capitalnagers return lp and convert to a family office. one, they are forced into it, too, they are set up with investors, or they are bearish about the prospects of future returns. which camp do you falling? first two. our investors have been fabulous in their treatment of me. i went through a bogus situation with the sec and they stood by me. it warmed my heart. returns have been decent. we have been meeting the benchmarks we compete with. i am not bearish about 2018. sometime in 2019, 2020, we will have a market setback. effect. a small most people have a soul in this business. they care about their investors and performance. mark, gor a high water out when you have a high water mark. depriving an investor of an asset. we are at our high point. it was the right time to step aside and reduce pressures of performing for clients. it is not the first two and the third is a small part of it. the time was right.

alix: erik schatzker with mike era getting. -- mike.urn to the week ahead we are going to see. meeting withmp john called longer -- jean-claude juncker. what are you most interested in? the other shoe drops with president trump. the ecb is going to be on hold. talk about the potential auto tariffs and whether the u.s. and europe can get an agreement on all those .eparate from the wto i am not convinced it is going to happen. i think the u.s. gdp on friday, this is an amazing thing -- consumption is likely to jump. >> stagnating for the economy as a whole. consumption was .9. two or three points stronger despite earnings stagnate. i don mean corporate -- corporate earnings. i mean wages. >> you have that backdrop you macro risk of tweets. what do you do? it is not a buy gold story. what do you guys think about it? >> we are stuck in the trading range. the euro has been there more or less. ranges, people feel like ranges are being intact until told otherwise. , waiting for the dust to settle. not freaking out yet. a big week for health ca

erik schatzker joins us with a former ceo of deutsche bank securities. >> that would be richard burner also a martial master. i'd better be careful here. good morning to. it's a pleasure. you have $.5 billion under management split 50-50 between public and private. there's not much in the credit market that you don't see. market at or reaching the point where you call it overheated? >> that's a really good question. think about the positives for a second of why you want to invest in credit. there is no yield anywhere out there. even of the public market, you are getting in the sixes. the economy is good. portfolio companies are showing growth. micro, we think about her own business, you can look top-down or bottom-up. we have countries in every jurisdiction, things are relatively good. rates are low. interest expenses are robust. they have the ability to work their way out. those are the attributes. is, every single sign points toward run for the hills. think of it. leverage levels are at all-time highs. they are higher than the published levels because the market is used to things cal

erik schatzker sat down with the galaxy digital ceo for an interview. inish line but your close. what would you say are the pros and cons of using this shortcut? access capital markets couple years before you would in other places. in the u.s. you need to .5 years you need to .5 years. you could take a new company public. you get access to robust markets. in hindsight maybe you would have done things differently. and you get public. companiesre public come with a response -- come responsibilities and restrictions private companies don't have. erik: you and i were talking about this months ago and you were really excited. it sounds to me like you might have a few regrets. mike: i would not call them regrets. just realistic of where the markets in canada are. you could've tapped the markets for tremendous capital and jay gray february. stock that trades at 2.3 times book and you can raise capital, better prices than that and timesing in assets at 8.7 . the wonderful business model. erik: what you are effectively saying is you did not time limit the market

furthermore, the ceo of black rock, larry fink, in an ,nterview with erik schatzker says he also seese inversion of the yield curve this year, although he is not so convinced that it's going to be a harbinger of recession. he says that there are other things that are flattening it. this is something we know in the past, yvonne, we have seen the curve invert. the red bars are recession. you'll a nice white curve that gets smaller and smaller and smaller. when it gets negative, you see the red bars appear. look where we are. 25 basis points behind the 2-year note and the 10-year note yield. this is definitely a concern. one more thing that's interesting from that interview, yvonne, larry think was really concerned about tariff war's. in fact, he said that not only would more china terrace end up hurting the u.s. economy -- t ariffs and up hurting the u.s. economy, but they could go down 15%. if this goes on and on, more and more people are worried about it. coming back to jay powell, i think it will be difficult for him to not give more specific that he has. there has been this view tha

for more on the change of leadership, let's bring in out -- erik schatzker.the fact that david came from the investment banking side. ceo, now taking over as and does that necessarily mean a shift in strategy? >> it sure could. it has been 12 years since the firm has been run by a banker. of a different kind of investment banker. he was an m&a guy whereas david solomon comes out of the leveraged finance world but they are bankers. bankers are by experienced different when it comes to tender -- temperament. people say rightly or wrongly that they are more strategic thinkers because that is how they have to advise clients. arele like lloyd blankfein more concerned with risk management he is fond of saying he spend 98 percent of his time thinking about 2% probabilities. that is not david solomon. being a different guy and having a different background, he has a different persona and the firm will take on a different persona as a result. blankfein pushed out of goldman sachs? overall sense people have because this played out so in elegantly. goldman in the post c

was the galaxy digital founder and ceo speaking with erik schatzker. keep the theme -- keep the thing going because bitcoin is trading lower after regulators rejected plans for a crypto etf. the number one digital currency has been -- since last month. what's the best strategy for writing the crypto? residente now is alex, crypto asset manager and ceo and cofounder. taking the passive approach. how much is in there and what does this do? >> we have about 20 coins in our fund. have positioned them in a way that if a long own leverage asset that solve the complexity free access vehicle for retail and institutional investors. be anike said you have to innovator and open up your investment management capabilities because this is a borderless asset class. caroline: and it's a volatile one. you been looking for 50 million in terms of asset management. how his interest and money flows to your funds gone? >> it is a significant lead. what we have done is reduce the volatility by holding 20 coins with slightly different levels correlations and a trailing averag

he spoke with bloomberg's erik schatzker this week at the aspen ideas festival. 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. and we don't have that. but we have a situation in which the number of ious that we have, in terms of not only debt, but so one.are, pensions, are a lot. so, there are more ious 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. i would say, let's say if i take , three things, in terms of what i would say are the three most important issues of our time, other than the cycle, 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 think you can get

he discussed details with erik schatzker. >> the u.s. economy is 70% consumer. confidence is high.ow. we have strong momentum. i was in china last week talking to business executives from the chinese companies as well as the u.s.. isoverall view is the market overly optimistic about trade. the trump administration is focused on autos and high-end technology. our base view is they will implement the 200 billion in september. i don't think that is -- billion oftional $2 tariffs. >> that is not where i think the market is. i think last time when we talked in january i said the fed -- people were behind the fed. you push me and said that is a little crazy. i said here is my view. we think that has a longer tail than what the market things. it doesn't mean there's going to trade war. plan,ina 2025 land is -- the administration is focused on that good reason. they want more of a level line field around autos. around investments globally, that has impacts on supply chains. my team has spent time working on my deal teams, making sure we're taking her that and have my bases covered. in as s

the ceo larry think sat down with erik schatzker in interview.arry: some of the outflows we witnessed were money being used for m&a. some of it was used for stock repurchase is. too large ofat is a generalization. we had money put to work and $8 billion in multi-asset. we had money being put to work institutionally in fixed incomes. we had money being put to work in alternatives with $4 billion of commitments and flows. retail, i would not say retail is done by any means today. as retailers migrated more towards a fee-based relationship, that is an institutional relationship. are creating models and navigating around the money. what we aree seeing, the retail flows, those are the right thing. most people say retirement. that is what we are continuing to see, positive flows in retail. if your time horizon is five years, they may be should reduce some risk. you have to consistently put money to work up or down. you should dowhat but that historically is not what retail investors do. tory: as more money moves advise, fee-based. that typewill not see

burr --hat was richard rne speaking to erik schatzker.ets or messages over the bloomberg, what was that chart you talked about on air? this is one of the places you can find that. one of the things we have been watching is the yield curve reacting to the president's tweets on the fed, currency manipulation, and we have seen a pause and the flattening trend. talking much more about that and the president's comments later on. from new york, this is bloomberg. ♪ >> this is bloomberg markets. time for options insight. mark.g me in chicago, we have seen vacillating in the market this week. not conviction moves. the bigs has been suppressed rate what do you make of this? typicalearnings season instead of macro moves? >> he have micro and macro running against each other which creates a nothingness. we have the headline risk out of the president. i think that is a fade. we have earnings. next week is the crazy part of earnings season when we get all the fang names, major stocks reporting. we could see some real action next week. this week is lyi

spoke with erik schatzker to talk about this and the current debate.e don't realize. if that order is a pension fund order, the broker keeps the rebate. they have the worst execution quality. people are starting to question is the the rebate system best system. you have huge support from investors. same exchanges that are against it. >> the rest of the exchange makersy, and some market , ia -- they are all lined up against you. >> on this issue i do not think so. if you look at the exchange application, there is a same -- the same cast of characters. >> they don't really make a lot of money from trading. they make money selling high spade data. stuff, whouying this am i going to trade against? it increases the value of eight speed. it underpins the business model. >> the language used by some thed on the part of exchange operators is pretty strong. proposal, thethe national securities exchanges, it risks undermining market quality diverting substantial market share. do you agree with any of that? >> i don't agree with any of that. it is amazing day hav

he shut down with erik schatzker for interview. >> i've not heard from one client looking to buy a cryptoat this time. when it becomes more legitimized. when it has the true open nature of it that you identify who the players are on both sides, that is when we will probably look at toas an alternative currencies. aware.t now you are >> we are looking at how they perform. that type of data to understand it as we think about other products but right now i can tell you worldwide i have not heard from one client who said i need to be in this. eri one of the things people associate with black rockk: is a environmental social governance. you take the trouble to write a letter to ceos every year that touches on many of those issues. furthermore you go at greater length in your chairman's letter. the problem you run into and i know you are well familiar with this, is that people can interpret or perhaps confuse what blackrock has to say about those issues with politics. how do you avoid creating the impression that you're playing politics with your clients money? >> as by repeating what we are do

tockrock's larry fink spoke erik schatzker. >> if we have a true trade war, we will see the markets downk: you would not call this a trade war? >> we will see what happens in the next $200 billion proposal that the u.s. does with china. taylor: warren buffett keeps making good on his promise to give away all of his shares in berkshire hathaway. he just donated to five cherries, among them the bill and melinda gates foundation. so far, he has given voice stocks valued at $31 billion. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. nejra: thank you so much. now to the u.k., where the only governor mark carney has reiterated he is concerned about a lack of solution surrounding brexit. theresa may's brexit strategy is in disarray after she vowed to rewrite plans from just over a week ago. -- and stillw is with us is charles dumas. david, great to have you with us. let me start with brexit. theresa may going from the frying pan into the fire. how would you invest arou