alix: i am here with harvey schwartz himself. did not watch her presentation because i was on television, give me the cliff notes. harvey: today's presentation was a response to investors who were saying two things, what is the growth strategy, what is -- identified sic $5 billion that has marginal are always of 30%. we also spent time talking about fixed income. our position in the marketplace, what we have done with the business over the last several years, taking resources of the business and we identified $1 billion as part of the collective strategy. billion fic revenue, that does not sound that much. harvey: one thing that is core to the whole group discussion, we made a series of assumptions. one assumption is, the environment does not change. we felt that was the way to provide our investors with maximum clarity about the impact of these. we assume nothing in environment changes and then we went through banking,by business, markets lending platform, and identified the revenue opportunities across the next three years. tot

eastern, an exclusive interview with harvey schwartz, goldman sachs president and co-ceo woe, talkingck ♪ david: this is bloomberg. i am david westin. goldman sachs copresident harvey shorts announced a plan to revamp the fixed income business after a disappointing second-quarter. >> we have identified a $1 million incremental revenue in isc and we believe this attainable even if the market remains challenged like it is today. if we see modest or perhaps more significant improvement in the operating environment, we expect it could deliver significantly more upside. david: this comes after citigroup said its trading revenue could drop 15% in the third quarter. we are joined by gerard cassidy and still with us is chad morganlander. welcome. the question i have is all the banks have had some difficulty trading because of volatility, but there is the specific issue with goldman. a really fell behind in the second quarter. how much of the problem they have is goldman and how much is the business? gerard: most of it is the business, but goldman's focus in ficc trading has been on the tooe s

we spoke to the goldman co-ceo harvey schwartz earlier.tt of the conditions have continued into the third quarter. the fund is performing well. vonnie: the turnaround plan has involved cutting senior staff and risk rated assets. shares are falling by the most in a year. they are afraid that the storms in florida and texas will hurt sales. mcdonald's has 2000 locations in those two states alone. coming up, where the ultrarich are invest in. we are -- investing. we are going back to zurich. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. close. i am mark artan with vonnie quinn. -- barton with vonnie quinn. it looks like we will finish the session higher for the fifth consecutive day. tech stocks are rising ahead

vonnie: that was harvey schwartz of goldman sachs. mayor on, the naples how his city is coping.s is bloomberg. ♪ so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. ♪ a beautiful shot out there of midtown manhattan. that is where we are broadcasting from live from bloomberg will headquarters in new york city. i am vonnie quinn. this is "bloomberg markets." a meeting with president donald trump. says that they are working on a trade deal. the trade deal will involve maybe a boeing jet deal which could be worth between $10 billion and $20 billion. this is what the malaysian prime minister. under you clinical matters, trump says more has to be done after the north korean sanctions vote taken in the u.n.

we heard from harvey schwartz earlier of goldman sachs he didn't give a specific number, but said it feels like the first and second quarters. first of all is goldman sachs, closely behind by jaime diamond of jpmorgan. goldman sachs up today because they have been positive about their longer term turn around saying over the next three years, they can boost revenue. that's boosting that stock and all the banks are up nicely today. the other interesting point we heard from jaime diamond, much more detail when they sit down later, is on interest rate >> hold on hold up. we want to go back to brian in cupertino with headlines on apple. >> this is interesting this is what was speculated about the watch which may be a big deal the new watch that's coming out does not need a phone nearby right now, if you have an apple watch, you need to have your iphone it is tethered the new watches, which are coming out in a month, are going to be untethered they are going to be cellar specific you can leave the house with just the watch, guys they just announced seconds ago, you can stream 40 million so

still ahead as we review, harvey schwartz of goldman sachs goes in-depth on the firm's land to turn aroundtrading business. talk about the future of european inking and an exclusive conversation with alibaba. more of the week's top headlines, jamie dimon slams did -- bitcoin in no uncertain terms. >> that has to scream bubble. scarlet: this is bloomberg. ♪ ♪ scarlet: this is bloomberg best, i'm scarlet fu. let's continue our global tour of the top is the stories with the economic data out of china. prices climbed for a 12 month and the government continues to produce excess industrial capacity. in augustrose 6.3% from a year earlier, up 5.5% from july. >> it seems to be over. >> it is important for the profit side of things for china's companies and good for the debt service side of things. the question is, what is behind the resurgence? spare capacity to much shutting down cold fronts or due to actual genuine demand on the ground? that.ry is out on there is a feeling that the interest chapter spending going on -- infrastructure spending going on. >> china's economic expansion unexpectedly

scarlet: still ahead as we reviewed the week on "bloomberg best," harvey schwartz of goldman sachs goespth on the firm's plan to turn around it trading business. we will talk about the future of european banking and an exclusive conversation with alibaba. more of the week's top headlines, jamie dimon slams did -- bitcoin in no uncertain terms. >> bitcoin has multiplied sixfold in the last six months. somebody like jamie has to scream bubble. scarlet: this is bloomberg. ♪ ♪ scarlet: this is "bloomberg best." i'm scarlet fu. let's continue our global tour of the top business stories with the economic data out of china. ♪ >> prices climbed for a 12 month as domestic demand remains resilient and government continues to produce excess industrial capacity. the price index rose 6.3% in august from a year earlier, up from 5.5% from july. >> the replacement store in china seems to be over. >> it is important for the profit side of things for china's companies and good for the debt service side of things. the question is, what is behind the ppi resurgence? is it spare capacity to much shutting do

. >> harvey schwartz at 7:30 expected to address their recent problems in the trading department andim sloan at 8:15 a.m. he added himself about ten days, two weeks ago, so clearly feeling like he needs to respond to investors more importantly, we're hosting a who's who of the investor community with hedge fund titans, private equity giants and top institution investors offering their views on the market and some of the best ideas. we'll have coverage throughout the day here on krn. head to deliveringalpha.com for more information lots of big names. >> got a good mix. bankers and hedge fund managers and policymakers >> exactly right >> and i'm doing the most heavy duty debt panel later in the afternoon. >> but you love that >> i do love it. right now, there is a bing for corporate product. >> and up next, a developing story out of north korea as the u.n. security council unanimously steps us sanctions >> and later, demanding answers. lawmakers send a letter to the equifax ceo following atth company's data breach. the full details when "worldwide exchange" comes back whether it's conn

scarlet: still ahead as we review the week on "bloomberg best," harvey schwartz of goldman sachs goesh on the firm's plan to turn around it trading business. -- it's trading business. we will talk about the future of european banking and an exclusive conversation with alibaba. more of the week's top headlines, jamie dimon slams did -- bitcoin in no uncertain terms. >> bitcoin has multiplied sixfold in the last six months. -- in the last 12 months. that to someone like jamie has to scream bubble. scarlet: this is bloomberg. ♪ ♪ scarlet: this is "bloomberg best." i'm scarlet fu. let's continue our global tour of the top business stories with the slew of august economic data out of china. ♪ >> prices climbed for a 12 month as domestic demand remains resilient and government continues to produce excess industrial capacity. the price index rose 6.3% in august from a year earlier, up from 5.5% from july. >> the replacement store in -- story in china seems to be over. >> it is important for the profit side of things for china's companies and good for the debt service side of things. the ques

reminder,rogramming tune in tomorrow morning, we had an exclusive interview with harvey schwartz, goldmannd coo. this is bloomberg. ♪ joe: "what'd you miss?" one of the key factors driving a nation's inflation rate is its population. that is an idea that toward by and senior economist at moody analytics. adam, thank you for joining us. tell us, what is the relationship between population growth and inflation and what caused you to look down this route? >> thanks for having me, the relationship is not necessarily obvious because growing population means more supply as well as demand. whether that translates to greater inflation has a lot to do with how responsive various parts of the economy are. my suspicion was population growth was inflationary and this operated through the housing market. that is what i investigated. looking at the housing market as a channel through which faster population growth would be higher inflationary. populationory, more will grow. it seems like that will have a natural inflationary impulse. that is a greater supply of workers which would be deflationary. expl

. >> that was goldman sachs president harvey schwartz.nterview later today, leon cooperman will be joining us at 7:00 p.m. eastern time. ♪ ♪ >> mark: i now for first word news. the trump administration has to end daca, the program for the for it at -- this action. the white house legislative director says principles for the tax overhaul will be announced in days, not weeks. priorities for daca are set to be within the next couple of weeks. president trump have a six-month deadline for -- to address the issue. to china int look november as the square and the poor -- korean peninsula due to pyongyang's nuclear and missile tests, according to a person familiar with the president plans. the chinese president xi jinping invited president trump to a state visit to china when the two leaders met for the first time. president trump has repeatedly called on china to stop north korea -- and seven july it could quote, easily end the crisis. in paris today, protesters took to the street to protest emmanuel macron's proposed changes to france's labor

felt -- goldman sachs faces its worst performance -- steel spoke exclusively to the coast coo harvey schwartzpresentation was really a response to investors saying two things. what is the growth strategy and what is happening. we outlined a broad series of initiatives and identified $5 billion, which has 30% hearing within that discussion, we spent a fair bit of time talking about extent come and our position in the marketplace, what we have done, taking resources out of the business, and we identified a $1 billion. as part of the $5 billion collective strategy. >> few are looking at net $1 billion fixed income revenue, that does not sound like much to some like me. one thing that is core is we made a series of assumptions. a critical assumption is the environment does not change. of the environment, nothing changes. we felt that was a way to provide our investors with about the impact of the us. we assume nothing in the environment changes and then we went through business by business, banking, the market lending >>, and we identified revenue opportunities across the next three years. it tot

goldman sachs is harvey schwartz spoke with alix steel.'s listen to what he said about goldman's performance so far. of the market conditions have continued to the third quarter. low volatility. in aggregate, the firm is performing well. but it remains a challenge for us. you mentioned the september quarter is really critical for these big banks. how does it tend to set up the fourth quarter? laura: the fourth quarter is generally not the greatest quarter for fixed-income trading, it's usually one of the best. necessarily mean anything. the third quarter isn't always correlated what we will see in the fourth quarter. i want to pick up on what harvey mentioned about goldman sachs. they've talked a lot about how their fixed income debts have not been as well and their disappointed about that. there's a note out today from a thomas research -- autonomous research and they've driven the nail on deutsche bank, which is also a bank that historically had this really negative balance rating franchise. that note is really illustrated for us how imp

alix: when i was speaking to harvey schwartz, i said it seems like goldman in particular thinks thatg by $14 .illion by 2020, 2021 do you want to distinguish between the banks if they are more lenders, traitor oriented, investment banks? is that something you need -- trader oriented, investment banks? is that something you need to do? most recently, we have had the issues in texas and florida, which is also having an impact on insurers, and also in financials. the i am talking about is financials as a whole -- should you distinguish between them? i would argue that right now, there is a broad brush across the specters -- sectors. there are spaces and the subsectors, so yes i would, but with a broad brush, i would argue that the entire sector is very cheap. jonathan: where is this coming from? mr. chadha: the pickup in growth? jonathan: in terms of the data, where you see it right now? we have had a slowdown in the data, and it is one of the mysteries that we have as to why it's load down -- it slowed down, but i remind all data has noise in it, and economists always look at growth ra

harvey in houston. and restoring rome's ancient monuments with private funds. next on pbs newshour weekend. >> pbs newshour weekend is made possible by: bernard and irene schwartz the cheryl and philip milstein family. dr. p. roy vagelos and diana t. sue and edgar wachenheim, iii. dr. p. roy vagelos and diana t. vagelos. the j.b.p. foundation. the anderson family fund. rosalind p. walter, in memory of abby m. o'neill.

harvey in houston. and restoring rome's ancient monuments with private funds. next on pbs newshour weekend. >> pbs newshour weekend is made possible by: bernard and irene schwartz. the cheryl and philip milstein family. dr. p. roy vagelos and diana t. sue and edgar wachenheim, iii. dr. p. roy vagelos and diana t. vagelos. the j.b.p. foundation. the anderson family fund. rosalind p. walter, in memory of abby m. o'neill. barbara hope zuckerberg. corporate funding is provided by mutual of america-- designing customized individual and group retirement products. that's why we're your retirement company. additional support has been provided by: and by the corporation for public broadcasting, and by contributions to your pbs station from viewers like you. ank you. from the tisch wnet studios at lincoln center in new york, megan thompson. >> thompson: good evening and thanks for joining us. president trump met with his national security team this afternoon, saying the united states is weighing, in addition to military options, stopping all trade with any country that does business with north korea. this after north korea announced it had detonated a hydrogen bomb in it