but first, the session's moderator, john mickelthwait, sets the scene. hn: trust was the theme in st. petersburg -- or perhaps the lack of it. with the prospect of a global trade war, with all the problems to do with iran, the issues to do with north korea, there is not a lot of trust on the international stage. i am john mickelthwait, the editor-in-chief of bloomberg and i came to st. petersburg to sit down with vladimir putin of russia, emmanuel macron of france, shinzo abe of japan, wang qishan, vice president of china, and christine lagarde with the imf to discuss these issues. i began by asking vladimir putin what he would do to salvage the iran nuclear accord. we all know you want to keep the deal, you say you are a man of action. what actions will you take to keep the iranian nuclear deal alive now? president putin: the so-called iranian nuclear deal has been established by a respective un security council and that is a multilateral, international legal document and it warrants our actions to be predictable. we need to adhere to the common rules. a

the goldman sachs chairman and ceo speaking to john mickelthwait about trade, the global economy and his future at the investment bank. david: we have heard a lot about u.s. trade issues with china. it seems the more they negotiate, the further apart they get. china responded in kind saying "if the u.s. loses its senses and publishes such a list, china will have to take quantitative and qualitative measures." greg, give us a peek inside the white house at this point. did they anticipate this happening? craig: i think they were prepared to have it happen. , maybe afew weeks ago month ago, steve mnuchin, some of the heavy hitters in trade for trump were in beijing meeting with chinese officials. it seemed they were making progress. one official went back for a second visit. you assume they are talking. it turns of they are shooting at each other and it has escalated quickly in a dangerous way for the world economy. billion,talking 50 china quebec with their 50. the you -- china came out with their 50. the u.s. came out with the possibility of $200 billion a product facing u.s. tariffs.

he spoke with our editor in chief, john mickelthwait. ein: that high interest rate which usually has an effect on valuations. john: how high do you think interest rates can go? mr. blankfein: how high can they go? when i can out of school, interest rates were in the teens. unemployment was above 10%. these things can happen. i know everybody is debating and lips are quivering -- is the fed going to raise three times this year or four times this year or next year? raising 50the fed basis points between meetings. i don't think people are braced for what the potential is. just think -- every bond that has been bought since interest rates have been low and trending low for so long, everybody wants higher interest rates so you will have a higher return, but don't forget every instrument in anybody's portfolio would then drop in value, and if you mark to market or not, it will be worth less, and just think of all the assets in the world that have priced off of a discount model. how about real estate and almost everything else? think about what

the goldman sachs chairman and ceo speaking to john mickelthwait about trade, the global economy and the investment bank. david: we have heard a lot about u.s. trade issues with china. it seems the more they negotiate, the further apart they get.

vonnie: that was the prime minister of greece alexis .sipras with john mickelthwait coming up on battlepeaneighing on financials with another record low. we have a must-see chart. this is bloomberg. ♪ ♪ vonnie: it is time for the global battle of the charts. you can see these on the bloomberg, run the function gtv . it is mike regan. >> obviously industrial stocks have been ground zero of the from war, falling 12% their peak this year. there are concerns some of the big companies like caterpillar and boeing will be vulnerable to reprisals against trump's tariffs. and it perked up over the last few days. gd has announced a separation of energy and health business. trade tensions got dialed down, but they couldound regardless based on a simple tio here. this shows the relative strength of industrials to the s&p 500 area this ratio of the industrials actors start to the s&p 500 it all. if you look at the yellow line, when the ratio is going down, industrial stocks are outperforming. when it goes -- underperforming. when it goes up they are outperforming. whenever it has hit this level

john mickelthwait sat down with him for an exclusive conversation about greece's economic outlook.rtant is that this is the end of uncertainty for greece, and greece is coming back. at the same time, austerity comes to an end in greece. based on the 2019 forecast, 2021 and 2022, we have fiscal margins above our obligation of 3.5% of the primary surplus between 2019 and 2022. the important thing about the end of this program is that the greek government commit to these goals and other responsibilities go to ourselves. >> the other thing that has happened recently is the s&p last night upgraded your debt rating. are you likely to issue more debt, more bonds, because of that, and when would you do it? [speaking greek] >> i believe the coming time will be very good news for the greek economy. yesterday, we had the upgrade showing a positive way in which the euro group decision had been received by the investment community. i think the biggest success in greece is that it managed within relatively short period to implement so many important structural reforms. we believe we will not onl

. ♪ emily: goldman sachs ceo lloyd blankfein spoke with our editor in chief john mickelthwait at theclub at new york on tuesday. he touched on the cryptocurrency front and says goldman sachs does not own bitcoin. he previously said he does not believe a fluctuating digital currency to be a store of value. take a listen to what he had to say. >> it is not a systemic issue at this point. for it,re passionate passionate against it. i remember when they came out first with cell phones. i remember thinking, who the hell is going to lug this thing around? 10 phonees, there are votes on every corner. i will not say this is -- this is a fad to carry a cell phone. i passed on that whole thing. turns out to have worked. [laughter] not for me, i don't do it. i don't own bitcoin. goldman sachs, as far as i know, -- unless nobody told me -- has no bitcoin. [laughter] but if it does work out, i can give you the historical path why that could happen. emily: now while the price of bitcoin has taken a tumble, there's still a lot of interest, and global spending on blockchain solutions is expected to

he spoke to john mickelthwait. the migration crisis is here to stay. crisis we will overcome easily. it has to do with big causes behind it, the wars and inequality and demographic imbalance. we need to consider whether the crisis and any other big crisis and challenges faced by europe will be dealt with in a collective spirit. as european challenges that require european dilutions. or whether each country will deal with them separately by building fences or looking only at its own backyard. i support the former approach your the latter could at the end of the day not only make the problem bigger but also lead to the dissolution of the european union and the way in which we think when it comes to solving these problems. john: we have here the issue of brexit. when you offer anything to mrs. ?ay in terms of bilateral deals do you think there is something greece and bring? -- can bring? alexis: we cannot compare the , but it isof brexit interesting to see how things have changed. greece from being part of the problem has managed to become part of the sol

francine: that was the greek prime minister speaking exclusively with john mickelthwait. economy reporter and brussels. , immigration, brexit, banks. it seems the european union is firefighting. >> indeed. there are a few things going on in brussels. angela merkel under massive pressure due to an immigration crisis. trade, some breaking news. european officials are prepping for the worst. they don't get donald trump when it comes to global trade. it's not a global trade war yet, but is starting to look like one. let's take a look. >> we are not fully in a trade war yet, but we are moving in that direction. we will see how it turns out between the u.s. and china. if donaldasked her trump decides to impose more trade restrictions, is the european union going to retaliate. she said they will have no choice. she said as early as july could be a possibility. european officials prepping for the worst when it comes to donald trump and his trade policy. francine: thank you so much. of blackrock staying with us. coming up from the aspen idea festival, bloomberg interviews at 7:00

coming up, john mickelthwait has a conversation with the -- with lloyd blankfein live from the economicew york at level par p.m. in new york at 5:00 p.m. in london. this is bloomberg. ♪ "bloomberg surveillance." guy johnson and i are looking at markets. showing -33 on the s&p futures and dow futures are -359. yen is stronger and dollar is stronger. next screen. dollar canada and turkey showing cross weakness of em and other currencies. i am walking a blended em -- watching a blended em index. on the political front, germany and angela merkel, and in the united states, perspective from james hertling in london but has met many a year in his united states as we look at the issue of migration, immigration. max kettner of commerzbank is with us. country uses that phrase migration, maybe they say immigrants, one says immigration and there are the different keys. in thehe same as germany united states as this debate? >> good morning, tom. the dynamics are different. the political contours are similar but in the united states , what is happening, donald trump has broken a lot of china -- shatt

the goldman sachs ceo and chair spoke with bloomberg's editor in chief john mickelthwait earlier todayomic club of new york. we are seeing this in the united states on our southern horribleere obviously, tragic situations, but it is an immigration issue that splits the immigration debate has split the country. more realistically, in europe, and more dramatically and consequentially in the near term, immigration issue in the where magnanimously, germany admitted a couple of million people, but hard cases make bad law. of course, with open borders in europe. theit is a direct link to consequences to the immigration crisis. you are talking about a soft brexit. if you get into a soft brexit the people are speaking of, the only thing britain will have accomplished in brexit's immigration -- is immigration. you see what is going on in italy and certainly the relatively right-wing movements in central europe, those are reactions to immigration questions. john: there are interesting balances. lloyd: hard cases make bad law. i would not want to be in the position we find our government and now