erik schatzker, there are dueling narratives.e one hand you have asset management firms that are saying our business model is threatened by low yields and low fees and then you have banks that say their wealth management arms, the idea this is been a profit center for a lot of big banks. which is it? erik: it is kind of both and i will explain why. if you are pure asset manager and do not have more than a million dollars in assets, you are in trouble. you do not have the have to to compete against the black props and the invesco. are diversified institution like morgan stanley and you have an investment bank and you have a wealth management business, the asset management business, which is what we are talking about when we are talking about adding eaton vance is the third leg of the stool. i hesitate to use the word because it is overused, but you have the synergy people like james gorman are looking for. lisa: there it is. drink. assets, 1.2ve the chile dollars of assets. that was a goal of james gorman. insaid it was a mistake

bloomberg's erik schatzker spoke to him exclusively about his plans for business post pandemic. ♪ eriks, for centuries and centuries, have been attracting more people for very simple reasons. people like to associate with other people. they like to be the in thing. there are jobs and employment. they can walk to work, they can do all the things that come along with it. and this is not stopping. in fact, i could probably make an argument this is going to reset it and get even stronger. but the point is, these cities are not going away, so anybody are suggests these cities going away probably hasn't looked at history books and is only reacting to the current situation going on about suburban housing. i can't tell you, our suburban housing business, where we sell single-family homes to individuals, is booming. we are thrilled with that, but i think that that is an anomaly at this point in time, relatively speaking. erik: bruce, one thing i have been struck by is the speed at which brookfield is growing. assets have more than doubled in the past five years, two $550 $550 billion. it took y

taylor: that was erik schatzker in an exclusive conversation with bruce flat.ou can catch more of the interview throughout the day or on the bloomberg terminal. i want to stick with real estate. after its ipo disaster, we work has put its past behind it and is on track to be profitable in 2021. it may also revisit their ipo plan under the leadership of their new ceo. joining me now is ellen huet. a year ago, we were face to face in san francisco talking about this company that failed the ipo, putting pressure on that ever elusive profitability. what is the turnaround plan for them to be profitable in 2021? end upever levers they pulling, if they manage to reach profitability in 2021, it will be a huge shift from their 10-year history in which i believe they were profitable for only one year, 2012. every other year they have been doubling the growth rate every year but losing money hand over fist. as of february, we have this new ceo, and he has been trying to usher in, and missed a pandemic, a difficult thing, a we work that spends carefully, that doesn't send

guy: erik schatzker, thank you very much indeed.is bloomberg. ♪ ritika: time for the bloomberg business flash. the maker of the nordictrack exercise bike is suing peloton over the latest bike technology. icon health and fitness says peloton infringed patents for a swiveling touchscreen and the ability for the bike to automatically change resistance levels. the companies have sued each other before your another sign of the impact the coronavirus is having on higher education. american colleges are seeing sharp declines in enrollment of new students this semester. reports is the number of first-year undergraduates enrolled fell 16%. total undergraduate enrollment is down 4% from a year ago. tiffany reported improving sales of earning trends over the summer. argument thelvmh's jewelry chains business has been damaged by the pandemic. says operating's earnings vote -- rose in august and september. guy: now we are getting the flip side with the lvmh story. the pmh out with numbers. lvmhare very positive -- out with numbers. they are very

. ♪ and: i am erik schatzker welcome to bloomberg's "front row." i'm talking to bruce flatt .ys been a contrarian, buying what others want or need to sell. the pandemic is no exception. consolidation,e and the best will get better and the worse will go away. york, blondein new street in london, these will be amazing places. erik: bruce

. ♪ erik: i'm erik schatzker, and welcome to bloomberg's "front row."o boaz weinstein. when the payoff comes, it's a windfall. -- at sabip capital a capital is up. boaz: when i look at today, versus projected measures of volatility, like the vix. and when we think about the onslaught of news that's going to come out, i believe that

erik schatzker spoke to the cofounder of palantir about the debut on the new york stock exchange. >>o in silicon valley, you had money pouring in from china. you go through these things in silicon valley where things are overvalued. manus: we know that you like tech. can we circle back to some of the other big things? u.s. regulators pull the brakes on dividends in the united states of america. socgen and santander. un ecb making banks -investable. have we already reached un -invest ability in european banks? >> absolutely, absolutely. 100%. is way we think about banks banks particularly in europe with lending being such a big part of their business is they need to have high interest rates to keep the yield curve and the ecb completely rules that out, so banks are very difficult to buy in. what we are seeing recently is that banks are finally lending. thanks to government guarantees, they are lending, but they are not making money. the flat yield curve is really challenging. what we are going to see next is that the quality of the loan books will only go down. we are still in recessi

erik schatzker spoke to him in an exclusive interview.s objective measures of future volatility like the vix, with think about the onslaught of news that is going to come out. i believe that credit, when spreads are low as they are today, is asymmetric. i want to delve into that deeply. i think the markets are rightly telling us that there is a very good chance for volatility. more, register for the robinhood conference, where he will be speaking next week. sales are inching back towards normal at coca-cola. global unit case volume was down 4% in the latest quarter. the restaurants and entertainment venues that make up about half of revenues are not back to normal yet. still, that is better than the previous quarter, when coca-cola fell 16%. that is your latest business flash. alix: thanks so much. for more, james quincey, coca-cola chairman and ceo, joins us from atlanta. thanks for joining us. you say you want to move faster, and it is clear in the restructuring. i wonder what faster means. is that weeks, months? give us some perspectiv

thoughtsed on those with erik schatzker.ury ared the taking extraordinary actions these days to avoid a worse condition then we have to have. that it is notk unsuccessfulo keep companies in business. i think -- i am not an expert on the airlines, but i think there is a case to be made they have to be smaller because fewer people will fly over the next five years. business to for a contract is to go through a real organization of bankruptcy and discharge onerous contracts and reduce their overheads. airlines would be facing financial difficulties. the specific bailout of airlines and the general health obviously,omy and the fed and treasury have targeted the airlines for theiric -- to preclude bankruptcy. the obama administration permitted chrysler and general motors to go bankrupt. that was helpful to them. feds that to say that the in your view -- and i do want to make sure we understand how you see things -- that the fed is forestalling the inevitable? that because of the pandemic and the impact the coronavirus and the fea

erik schatzker spoke to weinstein in an exclusive interview. >> when i look at help low credit spreads are today versus objective measures of future volatility like the vix, and even when we think about the onslaught of news that is going to come out, i believe credit, when spreads are low as they are today is asymmetric and short volatility, and i want to delve into that deeply. the markets are rightly telling us there is a good chance for volatility. ritika: global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ >> when we think about where'd we get money from, the creation of debt and the printing of money, and where'd we get the support when we are talking about the next bill that might or might not pass, the next stimulus, it has big implications to the economy, to the markets, and so on. tom: ray dalio of bridgewater doing what he has been doing recently, out with a new book, and of course the themes of our macroeconomy, our global political economic s

i'm erik schatzker. andks are near record highs credit spreads are near pre-pandemic.you invest with an election looming and coronavirus cases spiking? head ofk henry mcvey, global macro and asset allocation at kkr. i know you have been watching coverage of the doj suit against google. i certainly have. is it possible that a broad antitrust crackdown against big tech, not just google, but potentially facebook, amazon, etc. could constitute a macro ?isk henry: i think that is a fair assessment. you saw this around 2000 with financials. you start to see more regulatory scrutiny, the same way that there was a push to re-regulate the banks after 2000. and. 2007 you are seeing that -- 2000 and 2007. you are seeing that now with tech. it has forced the regulators to look and see about monopoly pricing power. so i don't think this is a blip. i think we will have more issues earning more press around these type of control issues with the different large players across tech and other parts of the economy. , big techtrust antitrust is a potential risk. election risk is a real ri

that was the softbank vision had fund and and guggenheim global cio scott minard speaking to erik schatzkers get more on softbank's plans to launch its own blank check vehicle. sarah mcbride joins us out of san francisco. tell us about the implications and opportunities raised by this. sarah: this is an almost typical next step for softbank which tends to take trends that people are very interested in already and just jumping on them, like it did with its vision fund when it came in with $100 billion, creating one of the largest infusions of cash into venture-capital, dwarfing other funds. , who is verye well-versed in all kinds of financial architecture would want to jump on the spac bandwagon. i think they will go all in. -- sorry.e spoke shery: go ahead. say i i was just going to spoke to somebody who said that similarly to the vision fund where softbank went out and sought outside investors, it will do the same with its spac vehicle, some money will join with money from outside investors. point theear at this size of the investment that softbank will make. shery: did we hear anything fr

haidi: that was the former citigroup ceo speaking to erik schatzker.ruggles with the coronavirus pandemic and a new recession, it is still battling the fallout from an earlier downturn. a hiring slowdown around the turn of the century. many graduates who missed out on corporate jobs back then are still unemployed and living with their aging parents. we take an in-depth look at this in the new issue of businessweek. he joins us now from tokyo. tell us how you became interested in this story. what are some of the stores you heard from people that you met? >> thank you for having me. part of the reason i would say is personal. i have been knowing and hearing a lot about these isolated people. there was a crime in 2019 that -- living with relatives for a long time. it got me thinking about who these people were. i hit the street. i met, one by one, and their supporting group for these people. people really tend to blind themselves. hopes andh their ambitions being compromised by greater forces, so it's very dedicated but i am glad i did meet these people.

anna: that was the palantir lonsdale, in a interesting conversation with my colleague, erik schatzkers. here is laura wright. bayer is planning to cut $1.5 billion in costs and may sell some of its businesses after the pandemic has hit the agricultural sector harder than expected. it is also looking at cutting jobs. the stock following this morning, as its forecast of the earnings per share will fall in 2021. american airlines and united will start laying off thousands both havebut vowed to reverse the job cuts if the government agrees to provide additional aid in the next few days. american is cutting 19,000, while united is laying off 13,000. the moves raise pressure on washington to agree on a new stimulus plan. more than 500 jp morgan plan got taxpayer assistance aimed at helping businesses during the pandemic, and many should not have. sources told bloomberg of the internal investigation, the scale of which has not been previously reported. the bank has declined to comment. that is your bloomberg business flash. anna: laura wright with the business flash. let's get to some of the

bloomberg's erik schatzker spoke about the outlook of returning to the office.timate corporation or legitimate ceo that does not want their people back in the office. there is does to reasons they do not have them back. number one, they do not have enough space to accommodate them andhe premises they occupy operate out of today. if they have a vaccine, they do not need more space. if they do not need a vaccine, they will have to build out more space, which means you need more space to accommodate people. ritika: that is the latest business flash. guy? guy: thank you let's stay with the virus. scientists are warning of a new coronavirus spreading across europe, which now apparently accounts for the majority of new covid cases in several european countries. joining us is the lead author of the research, entomologist at the university of basil. can you explain what is different, and is this why the second wave feels as strong as the first? >> one thing important to note is even though the dynamics of this variant are notable, this is not the majority variant in any