erik schatzker joins us now with the details. erik: thank you. i would like to bring in carson --ck from san san francisco from san francisco. you have a new position in man u life financial, is that correct? carson: that is correct. erik: this is a well-capitalized insurer with a $35 billion market cap in u.s. dollars. 43 billion dollars in revenue and $3.5 billion in annual profit. why are you short? carson: they just concluded a trial and we expect a verdict by the end of this year that could have significant negative impact on its insurance subsidiary. so what is at issue here is that manulife's insurance subsidiary might be forced to potentially allow billions of dollars of moneyto flow in on 30 day , so very short-term money, and it might have to pay a 4% or even higher annual yield on that. this would cause significant losses to the insurance subsidiary, and that could create real problems for its capital. this is a binary outcome. if manulife prevails at trial, nothing changes. if manulife loses and the plaintiff wins, it could be a very

bloomberg,ver to erik schatzker. mark, thee with global head of a share. good to see you. with the markets as a back drop, let me ask you. there is no shortage of would be cassandra's warning about what a going to happen to etf's in market selloff. what do you say to people who , who stillrgotten remember august 24? add asill see etf's will systemic stabilizers. there are ways to trade risk of a reduced volatility but not put pressure on investment thanks. , highperience has been yield in 2015, new prices were struck fast in etf. we have seen the global regulatory body. and the fcc. these are net contributors to liquidity. persistenthere a difference of opinion on the subject? i'm going to invoke mark carney, who came here and spoke to the economic club and said the following. $30 trillion of assets are held in fines despite investing in illiquid assets. they are built on the lie that markets always clear. that is a not so veiled reference to etf. mutual funds payout in cash. they are forced sellers. , securities inside the fun to give you cash. there is an institutional i

erik schatzker spoke to tom just a who will run -- tom jessop, will run this venture for fidelity. ♪xisting market infrastructure, it heavily skews toward retail investors. we saw demand for an institutional quality offering. even though people see fidelity we surface manager, about 13,000 financial institutions. we have taken the learning from that client base to give them tools they need to invest in the space. as recently as last week, m.i.t. have harvard allocated resources. >> what exactly will they be able to do thanks to what you are offering? >> institutions will be able to securely store their crib no assets or digital assets with us. >> custody. >> custody, that's custody. we will provide a facility for them to trade with a number of providers. and then we are also giving them the services and tools they need to integrate these assets into their own businesses. ♪ >> erik schatzker also spoke exclusively to michael know the grand. it is one of the most prominent investors in cryptocurrencies. they discussed the state of them ar market. ♪ >> bitcoin, just to use it as a crypt

erik schatzker joins us with his special guest from the firm. ery much, i'm here with tom jessop, the head of fidelity digital assets and this is a crypto curve ball. familiar withe goldman sachs and morgan stanley and jpmorgan dabbling in crypto but fidelity? what's going on? >> we have been following this space for a number of years. in 2014, we did basic research we thought there was something very durable in terms of the butnology not only bitcoin what the technology could mean for the future of financial services. hired a bit of work and some people and did some research and development and that culminates today in the announcement of this new business. we will give instant to shins and others tools they need to -- we will give institutions and others tools they need to manage this space. erik: why institutions and why crypto? on the one hand, people think fidelity and they think mutual funds and on the other, why crypto because until now, institutions have generated about zero interest in crypto as an asset class >>? i think that's changing

for more, erik schatzker joins us with howard. next thank you so much.s always good to talk to howard marks. this book, mastering the market cycle, is required reading. the seven worst words in the world, what are they? an investor? too much money chasing too few deals. when there are too many willing buyers, and they have too much money, prices go up. risk goes down and up, safety goes down. it iss one of the things essential to be aware of and actor orting way. erik: i have to be honest with you, howard, your memo left me and i suspect others as well a little bit unsatisfied. i say that because you conclude with three really important points. the first is that credit markets are overaggressive. too much money chasing too few deals. that sends one message. at the same time you say there is no sign of economic weakness, so the good times may go on for a bit longer. the third point that you make is that there is still a lot of uncertainty about the future because of this crazy mix of monetary and fiscal trade policy the have right now and the resultant ec

rishaad: erik schatzker also spoke exclusively to michael novogratz of galaxy digital.currencies. they discussed the state of the market for such assets. as atcoin, just to use it crypto proxy, is at $6,400 give or take. >> if this wave of institutional buying comes, where will it be six months from now? >> get to take at a technical 6801st level, and if that happens you will see people get excited and kind of front run the institutions coming in. 10,000 is a big level and i do not see us breaking it by the end of the year. i think as the institution comes in they will put in new highs. erik: you trade crypto. people need to know this. you go long, you trade short. how are you right now? michael: we are long. bitcoin is held really well above $6200. there seems to be some support there. what's interesting is in the last six months, people have divided the world, bitcoin and everything else, and bitcoin seems to have restored value. >> except last thursday, or wednesday. >> the market falls out of bit and bitcoin dropped 5%. >> it is not going to be without volatility. w

erik schatzker spoke to tom jessop, who will run this venture for fidelity.isting : market infrastructure, it heavily skews toward retail investors. we saw demand for an institutional quality offering. even though people see fidelity as an asset manager, we service about 13,000 financial institutions. we have taken the learning from that client base and applied it to crypto to give them tools they need to invest in the space. and as recently as last week, a number of big endowments, m.i.t. and harvard have allocated resources. we have seen a real acceleration in demand over the last couple of months. erik: what exactly will they be able to do thanks to what you are offering? tom institutions will be able to : securely store their crypto assets or digital assets with us. erik: custody. tom custody, that's custody. : we will provide a facility for them to trade with a number of providers. and then we are also giving them the services and tools they need to integrate these assets into their own businesses. ♪ rishaad: erik schatzker also spoke exclusively to mich

erik schatzker there from the robin hood investors conference.xchequer in the u.k. is speaking to the house of commons dealing with the budget. time, the office of budget responsibility puts out its forecast as well. in many ways, that is what the market focuses on. let me give you a few headlines. it is forecasting a 2019 gdp growth story of 1.6%. that was 1.3% in march. in terms of the 2019-2020 deficit, they are forecasting that at 31.8 billion pounds. an improvement in the numbers. that will be why the chancellor is able to make the promises he is making about the end of australia. -- of austerity. if you want to continue watching the chancellor, you can do so at live go on bloomberg. let us go over company news. day in seeing its best to an half years after reporting better-than-expected earnings. the lender has led the u.k. stocks higher this morning. it is the asia business making headlines, almost half of its pretax came from the region. let us talk about jonathan ties. this is confirmation for hsbc. you said the revenue line. why is it i

erik schatzker joining us. he has another special guest. estley moore of robin hood foundation, so congratulations for pulling this together. ofis a superhero roster people you have put on stage. ray dalio, ken griffin, larry robbins and the list goes on. you have heard almost all these presentations, what stuck out for you? wes: we heard a variety of different opinions on where people think the markets are, where people think we are right now, and where we are going. i think that one of the things that sticks out, being the ceo of robin hood, is what does this mean for the community that we end up serving. i remember hearing the conversation yesterday from mohammed all area about the impact of global markets and where he sees some of the biggest threats in global markets and the impact it will have on different communities. so i think being able to hear ofg-time supporters robin hood, world-class investors, giving endeavors opinion. erik: i would say on balance, a little dark, right? wes: there are some bears perspectives. but we have been

david: we turn now to erik schatzker for exclusive interview with michael aaron gatty.asu might think of the dynamic duo of alternative .redit speculate on what can bring the bull market to an end, the list invariably includes a couple of things you might have some insight into. a said and exhilaration and u.s. inflation that causes the fed to slam on the brakes. the second is a blowup somewhere in the european sovereign debt market, possibly italy. which of those or review the most? we aren't know which supposed to worry about more. i would say the u.s. economy is going about as well as we could hope for. if you're one of those types of folks, the better things are, the more i worry, i think generally it is the u.s. moving too fast. is the economy growing to rapidly -- too rapidly? the midterm elections could also have an impact on the u.s. economy. you can have a transition to people wanting dramatic change, even at the cost or risk of having a negative impact on economic growth. erik: these are questions that you raise. that more interested in your opinion. tony: i t

michael mcgrath's joints erik schatzker to talk about the latest development in cryptocurrency.ew york, this is bloomberg. ♪ bloomberg. ♪ mark: here is first word news. president trump said the saudi king assured him the kingdom was not behind the disappearance of journalist jamaal khashoggi. is sending secretary of state mike pompeo to meet with the king. i was last seen entering the saudi consulate in istanbul. sweden's prime minister has been tasked with -- with forming a new government after his center-right libel was unable to reject cabinet deal. the prime minister has been leading a caretaker government since he did not survive a no-confidence vote by lawmakers in last month's election. parliament has given him two weeks to form a coalition. harvard goes to court today in a case that could determine the fate of affirmative action in college admissions. harvardent has sued claiming it illegally limits the number of asian americans it accepts. says race is only one factor in its calculation in approach favored by the supreme court. hesident trump is denying offered $1

we are going to erik schatzker who is joined by barry sternlicht, starwood capital ceo. s great to have barry sternlicht here at bloomberg. you are in the real estate business. let's talk about real estate in the context of rates. rate says everybody nervous. but in real estate rates aren't supposed to be that bad because if the economy is growing and it is, you are supposed to be able to raise rents. tell us about the balance between the rising financing cost in the pricing power. >> good morning. you dove in on the number one issue for all investors not just real estate. the direction of rates and competition for capital. if you had your choice you certainly would have higher rent growth. it is more important than interest rates. if you think rents are going to go up 20% or 30% whether the 10 year goes from three to three and a half dozen matter. but on the margin for levered they certainly should impact prices. there's two ways rates will go up. one is economic growth. if there is economic growth, job growth, wage growth, i really like that scenario for real estate. es

who is to erik schatzker here for an exclusive interview with marc lasry, avenue capital management cofounderenowned credit advisor. great to see you this morning. only one place to begin, and that is with this. what do you make of all of this market volatility, the beginning ?f a bear market just another pause on the way to hire highs like we have seen so may times in the past five years? >> i think it will be difficult. the simple reason is everyone is waiting for the midterms. ist you'll find, our belief if democrats get control, i think you will have a lot more volatility. the reason you'll have more volatility is you will have more headlines. you will see more of these problems that you are seeing in d.c. with the president and congress. erik: or between the house and administration? >> democrats need to get control of the house. if they don't, you will find the markets going up. the markets are sort of focused on the fact that if democrats get control, you'll have a lot of issues. those issues are not good for the economy. erik: you believe what we have seen over the past couple of week

haidi: oaktree capital --shery: oaktree capital chairman speaking with erik schatzker.f the business flash headlines. 24 hours after raising minimum wage, amazon has cut bonuses and stock awards for warehouse staff. employees have been eligible with a monthly payment that could total hundreds of dollars. sources say the scheme is being dropped to help pay for the wage rises. andon says operations customer service staff will still see their total compensation improve. haidi: under is investing 2.3 quarter billion dollars in june's self driving car program, having spent two years collaborating. shares jumped more than 5%, the biggest intraday advanced since the softbank backing was announced. >> the main dating item to deployment will be if we are operating to the right level of safety. as soon as we are, it will be ready to deploy. this partnership with honda accelerates the effort that will come after that. we are going to work together on a jointly developed, purpose built autonomous vehicle that we would be looking to roll out in the next stage of scaling after our de

guy: absolutely, time for a little bit of birdwatching, erik schatzker, over to you.i was expecting to nicolas tallon sitting across from me, except on halloween, we have lack swan man? -- black swan man? >> this is halloween. this is a joke made back a few friends and colleagues, and i guess today is the day to where it. erik: today would be the day. >> it is a cartoon to represent -- erik: there is an online comic book. >> it is also representing ideas past the cartoon. erik: people can see the cartoon online. it has u.s. the fearless feather hero. let's get serious for a moment. >> they got it wrong because i am not prefer affection like these characters -- i am not for perfection like these characters per you want to be as fallible as possible and figure out that we make mistakes, we are human, and you know, find where the mistakes lead to catastrophe. erik: so that is what you are doing in the lead up to 2008. nassim: and that is what we are here to discuss, where is the volatility. wise the world today more fragile than it was in 2007? than more fragile today 20

schatzker -- erik schatzker in conversation. stay with us.cine: this is bloomberg surveillance. tom and francine. about oil. wti crude oil is trading below $60 per barrel. this weekend, russia suggested it may keep output at current level. opec ands days after allies signaled they can cut output in 2019. welcome emmanuel ibe kachikwu. he has previously served as executive vice chairman of exxon mobile in africa. you received a number of awards and you have been made an honorary citizen of the united states. when you look at the price of oil, it has been volatile. what has been going on? >> uncertainty is everywhere. onare keeping a tab instability and prices. havenk the problems you our civil strife all over the being able to reach the typical capacity we have and how much of that it can cover. francine: what are we misreading? what do you see for 2019? are we putting too much emphasis iran and venezuela shortfalls? minster kachikwu: i think so. we have the capacity to fill some of the gaps you see. overestimating a sudden drop in production

he spoke to erik schatzker. >> you have to take out 6801st. first. the end of the year, but in q1 or q2, could put in new highs. taylor: that is your "bloomberg business flash.". us. gideon rose is with do nuclear weapons matter? i will touch on that in a bit. you touch on this many times in a new issue. the bavarian elections -- i was thunderstruck by that distribution. we ended up with a barbell outcome over to the far right here to people called by that and they go to some form of aggressive is that the new america as well? gideon: it is hard to figure out foreign politics let alone american. there is a lot of passion and emotion going around. the established mainstream and all these countries have lost a lot of legitimacy and respect. it is not creating dynamic leadership to the problems out there. the extremes are getting a lot more attraction. what is your reasoning for how america has handled extremes and culture wars before? i like the idea that this is a very long process that we have been to this before. there are cycles in american history