our erik schatzker will bring you that interview. theresa may reportedly promising robaxin conservatives she will not agree to keep britain in the customs union with the eu. the u.k. prime minister told lawmakers there will not be an extension to the deadline. it would be impossible for her to rule out a no deal brexit, as jeremy corbyn is demanding. he is boycotting the talks. economists are brushing up the risks of a shutdown to the u.s. expansion. according to a bloomberg survey, if the closure lasts through to march, it will cause -- donald trump canceling the u.s. delegation trip to the global economic summit in davos after denying nancy pelosi a plane to visit troops in afghanistan. opportunity for erickson, 5g takes off and faces problems reaching the market. in an exclusive interview, mark says he thinks the swedish network equipment maker can see margins of 20% or more. in or to be great and thrive into the future, you need to deal with certain issues. i am happy to see in our main industrial holdings, the right in 2018.were

lisa: that was jim and bill speaking earlier with erik schatzker in davos.ialcan intelligence bring objectivity to the wild west of the real estate market? we speak with the chief executive of one company trying to do just that. this is bloomberg. ♪ lisa: some breaking news. president trump has called the press back into the room. he is making some comments about china. comments about how it would be great if the u.s. and china get a deal. we will bring you additional details into insight of how to accomplish the deal and any other details we make. romaine: while we wait for that, let's talk about real estate. specifically, bringing machine learning to real estate with the dutch company bringing ai software to determine property valuations based on thousands of data points from satellite imagery to crime rates. the company announced in raised $33 million in a serious defunding round. the ceo joins us now here in new york. welcome. when i think about real estate from anyone who bought a a tangibleo pin value to a house. so many intangible factors. hanis kind

erik schatzker is with us from zurich. erik: good morning to you. capitalere at cevian in zurich.see you. and -- ce, said he vian owns stakes in large companies but when change happens, it is not like you hold a press conference, so we don't know how you feel about change. there has been a lot of change at the giant german industrial, one of your biggest holdings. >> a lot of change in 2018 for us. in our four maiden holdings, abb and ericsson, large program changes that have been announced. some have been pushed through and some are in the process. there is a breakup, this is a historic move. no one ever thought this would happen. is this enough? lars: it was clear the old working.was not it was a conglomerate that was from building cement factories to steam trading auto-parts and they were trying to read synergies out of this. that was having lower profit than competitors and no growth. there was a need for simplification, making the businesses more entrepreneurial and this breakup is a step in making the businesses more entrepreneurial. erik: last year, the stock was at 26 euro

ceo of the, the canada pension investment board, spoke with erik schatzker earlier.hink we need really well functioning public markets in any economy. having said that, there is some interesting arguments on the other side of this. i heard someone talking a couple days ago about the fact that if you look at the real estate market, almost all of it is in private hands, some that is public, but the purpose of the amount is in private markets, so one of the same with companies? i'm not suggesting that will happen but it was an interesting argument as you look at for private equity -- it was articulated by someone who was a leader in private equity, saying that is maybe the way the world goes. , itone thing i worry about is ok the amount of private assets that are invested today, the way the public markets are functioning. but i worry in a downturn what happens when people are forced to liquidate the public stuff because they cannot sell the private stuff. if there is a sudden dislocation in markets, people who need the money to pay pensions, to pay other obligations, ar

erik schatzker joining us live from davos.bank coming out and saying it has received several requests for information from regulators and law enforcement agencies around the world, who have an interest in the danske case. the fed is looking into deutsche bank's involvement in the dankse scandal. billions of dollars monitored ske's small estonian it unit. deutsche bank says there are no probes. anyone who is poking around and requesting information i suppose is probing, but deutsche bank says there are no probes. it says authorities and banks want to learn lessons from the case and it continues to provide information and cooperate with all of those agencies, though it did not name those agencies. just to fill you in on what is going on, deutsche bank shares down 1% to 7.78. fromare about a euro off the all-time low we saw about a month ago. anna: let's talk about another industry and the energy space. on capitaldance expenditure coming through from the chinese energy giant. let's talk about what they have said first today. they

one founder of the hedge fund spoke with erik schatzker about why he finds banks and high yields less both got interesting in december. they are less interesting now. don't dropesilient, as much, different buyers and sellers. you had the bank debt market drop four or five points in december in the face of the largest six-weak outflow in that history of the bank debt market. high yield has had outflows all year, although less issuance. the drop in high-yield, we know about the mutual fund liquidations, where as much as 15 points. more totalive you return opportunities when you find somebody who is a force to seller, but the bank debt is interesting too. >> you like to move quickly, be nimble, how much money did you put to work? debt,ut $1.2 billion in and some additional money in equities, so a touch under $2 billion. not the same magnitude as what we put to work in the prior downturn at the beginning of 2016. >> why is that? there were not enough force sellers? >> some of the money was not in the secondary market. some was helping banks making commitments that got stuck with paper rel

stephenhat was schwarzman speaking to erik schatzker.nd larry kudlow, the head of the council, a growing that issue on enforcement, saying promises are great, but enforcement is what we want. let's get the bloomberg business flash. here is debra mao in hong kong. ibm gave a positive forecast for 2019 and reported earnings that beat analyst estimates. they dropped almost 25% in the past 12 months. sources told bloomberg the tech giants agreement to provide cloud services to bnp paribas could be worth as much as $2 billion over the next eight years. company has been working to reverse revenue declines by transitioning its business to faster growing areas of technology such as cloud software and artificial intelligence. washington's scrutiny of tech companies has intensified, big tex has spent more and more on lobbying -- tec has spent more and moreh on lobbying. according to federal disclosures, google spent more than $21 million in lobbying costs, while facebook spent nearly $13 million. that is your bloomberg business flash. manus. manus

erik schatzker come over to you. erik: guy, thank you.th stacey cunningham, president of the new york stock exchange. what i would like to know here in davos is how does the government shutdown and the closure of the sec affecting your business and affecting the ipo market? stacey: at this point in time, we have not seen a lot of concern yet, although there is some concern over how long it will last. when you look at companies that have been ready to come public, they are in a crunch time. if the government does not reopen soon, they may have to refile their paperwork, because the numbers become stale, and they have to push the timeline. if they are counting on a capital raise for the business, they have to rethink -- erik: that is a real problem. stacey: yes, they have to rethink it a bit. that is coupled with the volatility impact. we did see a surge of companies looking to be ready to be public in early 2019, partially because there is uncertainty around the market conditions, and they want to be ready when we reopen. erik: so you say

he sat down with erik schatzker for an exclusive conversation. u know markets have been shaky for the past several weeks. the fed seems quite committed to raising rates. it makes one wonder if there is nowhere to go but down from here, or whether things can continue at this pace, or perhaps even faster. david: i think things can continue for a time, but i would say we are certainly later in the cycle. at the end of the cycle rather than the beginning -- it does not take a rocket scientist to notice that. i would say i think the biggest our u.s. economists have echoed this a number of times. i think the biggest risk is overheating. , can the fed, in the context of how it marches forward with monetary policy -- can it continue to normalize rates in a way where they strike the right balance and have a softer landing? i am not a prognosticator. there isresearch says a good chance they could manage it that way. say student of history, i there are few tightening cycles that in time do not create volatility. erik: that is the scenario. david: my guess is

erik schatzker advances the conversation.ng it with none other than james gorman, chairman and ceo of morgan sterling. -- stanley. >> great to be back with you. >> we talked in november. your macro view was confident. since then, expectations from imf and others for global growth ratcheted back. the mood in davos is cautious if not gloomy. james: the mood in davos is reflective of incoming sentiment, day one perspective. that was not surprisingly, given december with markets, was cautious. echo chamber. it is cautious. it is cautious. after three days, people get depressed. it is overdone. markets had a difficult december. there is political uncertainty now. the underlying economic growth. look at jobs numbers u.s. 80,000 two hold unemployment where it is. unemployment went up with 300,000 jobs. that means people came into the workforce who were not in it. the economy is slowing globally, slowing in u.s., china, largest economies. that does not mean we are in a crisis type mode people like to talk themselves into. >> you and

jonathan: erik schatzker, thank you very much. i'm jonathan ferro.eat first day of meetings. we welcome all of you worldwide on bloomberg television, bloomberg radio, and on sirius xm channel 119. it really started with francine lacqua. the one i would go back to, kind of a brexit free day. really focused on the political turmoil. jonathan: coming up on this program in the next hour, we will be catching up with the former u.k. chancellor and now editor of the evening standard. he will be coming up. , plans for the takeover. >> we are in discussion -- [indiscernible] we are in discussion with regard to the price. jonathan: do we have a ballpark figure where the price will be? >> not yet. i am thinking $65 billion. >> i will not comment. [indiscernible] jonathan: the energy minister has not been silent. he is looking at a potential bond issuance. can you comment on that financing of the potential acquisition? >> we are exploring. and considering the acquisition, we are looking at all options for funding. and that is something we're looking at. jonathan

and erik schatzker is with a guest that we very much want to hear from. ik: we have the distinction of welcoming chrystia freeland, canada's minister of foreign affairs. great to see you. >> hello to your parents, who are my constituents. erik: that is right. >> i hope they are watching. erik: they may well be, or they will catch it on the replay. our interest at the moment is in china. the cfo of waterway was arrested extradition on his request. how involved are you on that? >> very involved, as is the prime minister. an issue which is of central concern to our government. whe it comes to the arrest -- when it comes to the arrest of the cfl, i want to remind people -- cfo, i want to remind people that she is out on bail, she has had and will continue to have full access to the canadian judicial system, which is in impartial and objective. fairestll say it is the legal system in the world. her father actually said something generous a couple of days ago. he is understandably concerned about his daughter, which any parent can understand, and he commented on

erik schatzker talked about high-yield and clo's and so on and it is an appetite for them but very selectivelysa: the specially for the leveraged loan market. he is worried about excesses in the software industry. you have to be selective that people are still thinking the recession is probably further out. you want to be selective and think about how to invest in high-yield bonds and leveraged loans and clo's. pivot.ld it -- and amanda: are we seeing less of the packaging of the senate products to be sold in bulk? lisa: what happened in december is we saw a massive outflows. four of the biggest ever in the leverage loan market. that liquidity squeeze pushed other buyers out, including o's.o's -- cl are relatively small piece of buyers come back in. then they wait a little longer but you are starting to see them become more interested. vonnie: we have seen safeguards go away one by one by one. that is also turning and that might help the banks. lisa: one of the things we are hearing is they are becoming more cautious and giving themselves more room to negotiate for confidence. it is still in t

rishaad: steve schwarzman, blackstone, erik schatzker, the world economic forum in davos.ether india's economic growth can outstrip even a 7% target. david: a top official thanks so we will hear from the state bank -- thinks so. we will hear from the state bank next. this is bloomberg. ♪ omberg. ♪ david: welcome back. with a look at ubs. the stock slumped after the bank worst could be to come as kleins pulled out $13 billion in assets. -- could be to come as clients pulled out $13 billion in assets. says the global economy is facing a potential "perfect storm." >> when you look at geopolitical and geoeconomic tensions, they are re-converging into a mix of a cocktail that can the stabilize short-term market positions. rishaad: black & decker the biggest name to warn about the global slowdown. it is reducing sales guidance. the tool said 2019 sales should be at the lower end of its long-term target, 4% to 6%. it is forecasting profit that would miss estimates. david: netflix has stepped up into hollywood's brightest spotlight, earning an academy award nomination for best pic

haidi: that was the carlyle group co-ceo with erik schatzker.ts first shake shack. they will -- mainland china is to have its first shake shack. it is the latest push into the asian market. we are joined by the ceo. angratulations on what is monumental expansion. i am curious how you viewed the competition. is there a disadvantage given this is a market with a sophisticated consumer and you um brandsg brands -- y and mcdonald's that have been there since the 1980's? randy: thank you for having us. this is a realization of a dream. regarding competition, we didn't invent a hamburger in the u.s. and we won't the last to make a good one. what we have always done is raise the level of expectation. as you have seen the chinese consumer expect more from the quality of their food, where it is from and the experience, that is what shake shack has always answered. it has resonated around the globe. we are in 13 countries, opened in hong kong last year. we have big aspirations for china starting in shanghai. haidi: quality is of you have always focused on

it was interesting to look -- to listen to erik schatzker's interview with the ceo of bridgewater. to. take a listen. >> people have certainly diminished their growth expectations. in davos, we don't think they have done it enough. earnings expectations in the u.s. are too high and generally the fed and other policymakers are expecting stronger growth. jonathan: here is the problem. you can have great near-term visit villa the -- visibility. the market is going to move first, trying to understand whether we are decelerating, but to what degree and that seems to be the debate throughout the week. most people are telling us it is not as bad as you think. francine: you have spoken to a ceos in europe and they say a fractured world is starting to impact their outlook. dividends,ng on whether the happy talk is depending on what kind of company you have but region you come from. jonathan: the policy response is important. following up to erik, he is worried to -- he is worried about europe. how do you follow up with policy? remember that mr. -- is a piÑata on his economics call and he lo