carol: this is "bloomberg businessweek" at milken. ♪ jason: welcome back to a special milken edition"bloomberg businessweek." i am jason kelly. carol: and i am carol massar. it's a great event, people from all walks of life. we are also doing it on our bloomberg radio program, so check that out on sirius xm channel 119 and a.m. 1130 in new york. 106.1 in boston. 99.1 f.m. in washington, d.c. jason: a.m. 960 in the bay area. london on dab digital and through the bloomberg business app. carol: here at the milken institute's global conference, i got the chance to sit down with the department of justice's assistant attorney general of the antitrust division. jason: here is the reason we really care about this guy. he is helping decide what mergers are going to go through or not. we are talking about sprint, t-mobile, top of mind. carol: there are so many issues to be determined. we started about talking about big calls, breakups, and big technology. where do you stand on a breakup in big technology? >> we have a number of standards of the antitrust laws, and we will look at every industr

u2's the edge. >> only at milken.o put together a multi-million dollar art collection. >> this is "bloomberg businessweek" at milken. ♪ >> welcome back to a special edition of "bloomberg businessweek" at milken. i'm carol massar. >> and i'm jason kelly. while we're here, we've also been doing our daily radio show. listen to that every day on xm channel 119. 99.1 fm in washington d.c. >> and in london, on dab digital and on the bloomberg business app. one of the first c.e.o.'s we caught up with was beckman of -- karen beckman of clear. clear is an interesting company. >> anybody who is going through the major airports in the united states right now has probably seen their kiosk. but their ambitions are much grander. they want to take you faster, not just through airport check-ins, but to stadiums, restaurants, even to your doctor's office. >> get rid of your wallet. listen up. >> every card that is in your wallet should be replaced with your fingerprints, your iris, your face, your voice. i look at my wallet, say, why

at milken. carol: welcome back to a special edition of "bloomberg: businessweek." at milken.e we are here, we have also been doing our daily radio show. in newto that every day york, in boston, in washington dc. in the bay area, in london, and through the bloomberg business at. one of the ceos we cut up was from clear. jason: it is a fascinating company, and anybody going through airports has probably seen their kiosk. but their ambitions are much grander. they want to take you through not just faster, but the stadiums, restaurants, and even your doctor's office. >> every card that is in your wallet should be replaced with your fingerprints, your iris, your face and your voice. i look at my wallet and wonder why i am carrying around my business access card. why am i giving them my health care card. none of the things make sense in the day that we live in. and by the way, biometric makes it safer and easier. jason: let's talk about the security. anybody watching or listening, that will be there big hangup, presumably. how do you overcome that? wenumber one, i say that ought th

others weigh in from the milken institute global conference. and highlights from the earnings report. the turning -- >> we have made huge strides forward resecure any foundations. the >> this is bloomberg. ♪ >> this is bloomberg's best. of theesume our round up most interesting earnings reports. standard chartered is one of many european banks in the spotlight. they have good news to share with investors. buying back ordinary shares for the first time in more than 20 years. the purchase plan comes weeks after settlement between the bank and u.s. regulators over violations of sanctions. how significant is this? any businessure ever finishes a journey. we have made strides forward, getting the business back to growth. the financial returns not yet where we need them to be, but the last quarter was further evidence we are making progress down that route. , spain's biggest bank. for a more challenging environment. net income came in a little lower. i have got italy coming out of recession, germany under pressure. how would you describe the spanish

rosalind: plus, expert perspective from eminent guests at the milken institute global conference. >> we are 10 years into an economic recovery, and at some point, there will be a recession. >> china has stimulated its economy like they said they would. >> economy is chugging along pretty well. policy is going to be relatively stable. rosalind: it's all straight ahead on "bloomberg best." ♪ rosalind: hello and welcome. i'm rosalind chin, and this is "bloomberg best," your review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. alphabet released its quarterly results after the bell on monday, following earnings from facebook and amazon the week before. >> google's parent tumbled in late trade after first quarter revenue missed estimates and sparked concern advertisers are shifting spending to digital rivals. sales came in at $29.5 billion, missing wall street estimates of $30 billion. ad revenue did rise 15% from a year earlier, but still down from 2018. how would you chara

plus, more conversations from the milken institute global conference. griffin does not think capitalism is broken, but says there are problems the u.s. still needs to fix. >> we are going to make mistakes in this country. the key is how well we deploy our resources to address our mistakes. rosalind: this is bloomberg. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. rosalind: welcome back to "bloomberg best." i'm rosalind chin. now, let's revisit more of bloomberg television's conversations from the 2019 milken institute global conference, starting with jason kelly's interview with the blackstone chairman and ceo, steve schwarzman. jason: what is your

. >> pleased to be joined at the milken global conference by the new global head of debt capital marketsciti. is there anything you are seeing that scares the heck out of you from a credit perspective? >> sure, solo. in the immediate term, no. there's so many head winds in terms of global growth, you have to be worried about a slowdown and what that's going to mean in terms of corporate credit over time, right? you have european economy that's very, very -- growing very slowly a k. countries basically in recession. that's going to have an impact on our corporate credits at this some point that's going to cause a default rate to spike. it's going to cause somebut of a dislocation in the capital -- debt capital markets >> we're seeing higher debt levels acrossed board. whether it's triple and whether it's noninvestment grade, we have higher debt levels. bottom line, we've got a low default rate if growth goes down -- >> i feel like we are the atlas. how long can we hold that up we're aggressive with putting our capital to work supporting companies that can come to market in the near term.

plus, more conversations from the milken institute global conference. -- does not think capitalism isken, but says there are problems the u.s. still needs to fix. >> we are going to make mistakes in this country. the key is how well we deploy our resources to address our mistakes. rosalind: this is bloomberg. ♪ rosalind: welcome back to "bloomberg best." i'm rosalind chin. now, let's revisit more of bloomberg television's conversations from the 2019 milken institute global conference, starting with jason kelly's interview with the blackstone chairman and ceo, steve schwarzman. jason: what is your one big takeaway from china right now? you have invested there and done a lot of philanthropy there, what is the thing people are missing about china? steve: china has stimulated its economy like they said they would when the tariffs when in. i was there three or four weeks ago. the people at the central tank were telling me that it works very nicely, and now you are seeing the result of that, which is surprise. certain commentators say china's economy looks pretty solid now, in the sixes, 6%

i was at milken. the fox rsn sale took place.nclair bought it, as we were first to report, about $10 billion. the antitrust chief delrahim, here's what he had to say. >> whether or not if you own a station in a particular market as well as the rsn, are they competitors, do they really pose the same competitive harm as say owning two or three stations in the same market, broadcast stations, i'm talking about, is a question for our investigation and analysis and every one of these will be fact-based. >> what he's basically saying is the thing is probably going to go through. he's not seeing any major antitrust implications at sinclair owning rsns where they own their local broadcasting. they are going to purchase it. another issue that was big at milken was fannie and freddie. lots of movement in these stocks. people think it's going to be reformed, released and recapped and released. liz: donald trump wants to get -- >> he wants to get rid of it. but we spoke to one of the experts, eric caplan. i asked him how long are people goin

milken?: it was a mixed bag. most people are confused about what will happen. some people put actual weight on the president tweet from yesterday. i think that's important. i think other people think that will cause that is important. other people think that will cause the said today again and show their independence. scarlet: the fed, as you know, telling us when to respond to the president, and jay powell probably thinks that is impossible during this hearing. any history of the fed independent, that will be a theme on spoken through the day. particularly, you know the pressure will come up during the press conference. there is no way he is not going to address it. absolutely. let's get into the markets right now, because we had earlier gains, now a three-day rally in treasuries got a big today after manufacturing numbers trail estimates. let's go to michael mckee at the fed. michael: pay attention. there is no change in the fed's target range, but they do have an entrance on excess reserve

guy: in the meantime, in the milken conference taking place in beverly hills, the c.e.o.ke to eric of bloomberg. >> the final numbers are not improving but they're not deteriorating as quickly as we might have been worried a few months ago. i think there is some specific situation that we ought to be concerned. i think france seems to me in november going through a difficult time with yellow vests notably and is a concern and a question mark of where we're going and of course brexit which is a never-ending theory of brexit which has significant consequences on market confidence. >> does the yellow vest movement pose a risk direct or indirect to your business? virginie: direct. blocking access to food delivery, destroying boutiques in paris. but i think more fundamentally, if you leave that aside for a second, it poses an issue but it's how and why it started and was a genuine movement or sent ick movement and all for chasing power. we in san francisco have not gone through the tremendous market correction that some other countries went through in 2009-2010 essentially, bu

however, i talked to you about this last week at milken.ht and sold his entire lyft position before it even went public. so i think that's a great -- >> did you broker that one? >> unfortunately, no. that would have been a nice commission. thanks for rubbing it in. >> i will talk to carl about that. >> please do. liz: we have airbnb -- >> all coming down the pike. right. >> trading now? >> absolutely. like we talked about, there's a huge market. they are valued at such high numbers so it's out there. this is really exciting. this is like the hedge fund business 15 years ago. >> that's why you got out of the hedge fund business. >> i ran the hedge fund business at a large bank. now it's time to do something else. i'm excited. >> i could talk about this with you all day. someone is screaming in my ear. yes, i know. thank you. >> my pleasure. thank you very much. liz: good luck to you. $1 trillion "countdown" closer is next. live from las vegas. don't move. isor, i tell my clients not to worry about changing their minds in retirement. you may

bill lee from the milkens institute with his contrarian views. the u.s.as ordered nonemergency embassy staff to leave iraq as tensions with iran continue to rise. are asking the trump administration for answers and demanding everything from the white house. bill joins us with the latest. some critics are saying this buildup is similar to a lead into the iraq war in 2002. what are we seeing? of questionsot from capitol hill, especially in some foreign governments saying they want to see more of the intelligence behind the u.s. assessment that iran is posing a bigger threat in the middle east and the gulf region in particular. u.s. officials saying today that they have drawn down the embassy in baghdad and the consulate, not as political posturing or as political signals but because it is a prudent measure they say responding to heightened threats. that secretary of state pompeo is expected on capitol hill at some point next week to brief members of the house of representatives. there are lawmakers on the senate saying that is not soon enough. i think one o

i am out the milken conference this week.mism about china, and i would tend to agree. we have had some concerns over recent weeks that the year is a pullback. i would consider as you are taking your foot off of the accelerator instead of putting on the break, we should -- the brake, we should continue going forward. thet of this guidance, forecasts have been downgraded so significantly that beats were very likely. it is the companies that have actually disappointed on forecasts that are getting beaten up. the ones that are beating the forecasts are doing really well. maybe that is similar because people got a little bit too negative about q1 numbers. david: mark, what about it? are we being spun a little bit? we had bloomberg talk with a close follower of apple, and this is what he had to say. >> overall, it is definitely not pretty. i think we've got some tough times ahead, to be honest. we are looking at 2020 as the beginning of the real recovery for the overall markets. they've got challenges ahead, but that is not to say

so he we are at milken actually continuing a great relationship with them, and i am on a panel, thatves thrivings. >> the a winner has hits tipping point whether alzheimer's autism, als people are you know, hoping for cure hoping for more awareness about mental illness tell me what you've done at born this way foundation. >> we have done so much to that point my daughter says just because you can't see it, doesn't mean that it doesn't exist, mental health is one of those, that -- it is very difficult to assess one in four people you know have it. and at foundation born this way foundation, it was started because of the -- my daughter experienced led to developing anxiety, depression at a very, very early age her motivation ours at born this way to better equip young people to deal with struggles since she was abling to as young woman growing up through that, and today we focus on the wellness of young people, we oversiginvi health conversations to eliminate that stigma we connect young people with resources, in their communities we do fairly extensive research on mental wellness how

charlie gasparino at the milken institute conference what he is hearing. >> he is recovering politiciannow investment banker, working at moulson and company. he is talking to a lot of people here who have a pulse on market. i asked him what is the mood of this place? it is generally positive on the outside but he confirmed it's worrisome on the inside. the undercurrent is worrisome for two reasons. possible bernie sanders or elizabeth warren presidency, what that might mean for the economy. listen to what he had to say. >> donald trump policy mix is pretty conventional republican. that is where it gets back to going on in the democratic party. you're on the other side. you've seen markets. if bernie sanders gets in there with whatever, he might have 80% top tax rate, massive regulations. elizabeth warren, what happens to the markets? can you like say, you think it is going to be a market crash? >> i think unequivocally what happens with bernie sanders, god forbid he were to be elected or someone of his ilk, what happens the price of risk goes sky-high. when that happens, investors are g

well this, of course, as you know, a whole host of geopolitical concerns as well now, here at the milkenstitute conference over the last couple of days, eve had the chance to check up with a lot of leaders from the region. a lot of people that i see on a regular basis at conferences just like this one, but the conversation really has moved the dial forward in the sense that there's a growing recognition that as the uae and saudi arabia, among others, get closer and closer to countries like china, thatco create some waves in washington. i had the chance to catch up with the aue's ambassador to washington, and i asked him about that listen in. >> we don't look at china as a threat trying to get our colleagues to understand that we want to do business with the united states and the united states is one of our most if not our most important strategic ally, but we want to do business with china, and we want to make sure those two don't conflict this is going to be increasingly difficult to issue to navigate in the future the way i see the u.s.-china >> increasingly difficult. certainly for le

spokeinvestment core ceo exclusively to bloomberg at the milken institute global conference in beverlyend is looking for the ultimate investment. ,or example, 2017 [indiscernible] 84. would be by 2021. >> are you on track for that? >> yes. >> we have seen several funds putting more money into startups, it is not an area looks -- you look at. has there been a change in mindset? >> yes. we have had an inventor investment. the last ceo introduced new investment. they clearly can decide what they think. it is a big development. >> they are the startups? -- where are the startups? >> we have one in china. southeast asia. >> u.s. markets? >> u.s. markets we definitely try to target. first is in asia. it is closed. asian -- four for asia. the u.s. is the biggest market. >> is there a way to quantify the amount that will be invested into the tech space like the startups? know, it is a baby's pet. we try to increase it. i cannot say right now how much. ceo speakingent exclusively to bloomberg's haslinda amin. let's get a check of the latest business flash headlines. national australia banks fir

in l.a.ney and milken lighthizer tenues talks with the chinese.ions" if venezuela in a non-coup. i am confused. me francinene, with lacqua. i have never seen a fed day when there is more other major stories than this one. francine: if you are a market participant, you want to make sure you get your fed call and dollar call right. brexit,that is venezuela, and the banks. it is made day across the world, but across -- may day across the world, but across europe markets are closed. tom: with your first word news, here is viviana hurtado. venezuela, juan guaido is calling on supporters to continue to rally in the streets, saying they have a chance of a peaceful rebellion. yesterday he urged the venezuelan people to join him in an uprising. hours later, military leaders were standing by maduro. the u.s. wrapping up the rate is -- latest round of trade talks with china. talks resume next week in washington. the white house warned it is willing to walk away from the negotiations. trump callingld on the fed to take drastic moves to boost a healthy economy

others sounding an alarm with this interview with our maria bartiromo at milken conference. >> i have since i ran in 2009. doesn't seem to hold us back from a economic standpoint. i don't know what is different when you're reserve currency. i think you're in uncharted waters. reporter: current path federal debt would be 78% of gdp? 2019 to 90% in 2029. now 10 years away. democrats and republicans spending two trillion dollars next 10 years on infrastructure. i'm no accountant. the numbers don't add up. might have to cut spending or increase revenue. connell: edward lawrence can be an accountant. what a mess, edward. every single time we do the story. unsustainable path. still there. melissa: we're still heading in that direction and spend being like drunken sailors. connell: that's right. melissa: a sweet booming business. how baked by melissa is serving up small cupcakes, creating a big empire. burger king taking on mcdonald's. the has food chain putting a hilarious spin on not so happy meals. have you seen this? that's next. ♪yo ... with drivewise. it lets you know when you go too f

. >> speaking to bloomberg at the milken institute conference. let's get the first word news's. >> thank you. eric schmidt stepping down from all the boards board in june. the departure leaves the tech giant without one of the most recognizable advocates. firm from 2001 until 2011. the gamble to take control of venezuela appears to have flopped. commander stayed loyal to the president. the u.s. reiterated its support uido but it seemed to have little effect. in new emperor ascended the throne in japan. -- will involve visits from heads of state and governments around the world. global news, 24 hours a day. powered by journalists and analysts. done in the early start. apple says demand for the iphone has stabilized. this is bloomberg. ♪ this is bloomberg daybreak: europe. let's get a business flash with olivia how. has added to the latest twist in the battle for anadarko. there are plans to inject $10 billion. the bombshell lands while the board decided whether to accept an unsolicited offer. ubs is telling executives to be more selective when hir

in an interview from the milken shared hisbob dudley thoughts on where he thinks prices are headed.cannot always get it right. we try to do it on the fundamentals long-term rather than short-term reactions. we think fundamentally, the markets are tight this year. you look at what is unfolding, the venezuela defying economic gravity and reports of more violence in libya yesterday -- these things approach the fundamentals. look at the production growth, it is still bottlenecked. that one on there forever. >> what is your biggest worry about oil prices through the rest of 2019? bob: for us, we planned the company on $55 a barrel. very narrow for bp. if i worry about it longer-term, not short-term, a spike or a drop. that is not good for the world. right now, i think we will be in $75 forrway of $60 to 2019. >> talk to me about the integration of the bp assets. what are you learning, especially the u.s. shale market? bob: bhp is a great company. we only took over operations since the first of march. we are really early into it. it will happen very fast. we like the assets a lot. we are

good gambler >> i have been telling people this too, i knew that the medicine -- i was working with milken for a lot of years understanding there were so many things on the horizon for health, i knew cannabis was definitely the spot to be. so i started the brand with my daughter and we literally launch at the end of this month i think brands will be the future because the canadians are coming canadian companies are coming over and buying american brands but if you go into a dispensary and say i want cannabis, they will throw things in front of you. i think we need to brand it. i'm very particular about what we will do, gummies, et cetera and we will be in all 30 states. >> when you say all of these states, do you think we will have a time in the not-too-distant future where can disis legal everywhere >> i reason i think the same people who are against alcohol will be against cannabis but i would rather say to my daughter let's go to a consumption lounge and smoke a duces 22 as opposed to having a drink and damaging my kidneys and making me look old. it's a safer alternative i'm just trying

scott menard, the cio of guggenheim partners said, speaking at the milken itference in los angeles, shoulde beneficial to the large players like goldman, like blackstone, whereas guggenheim, player could benefit from possibly managing the assets of chinese insurers. we also heard from blackstone at the same conference in beverly hills. steve schwarzman sounded positive that china would allow foreigners to on 100% of financial companies. that will happen in his estimation, pretty quickly. i come back to the buyer beware. will a large u.s. company playet from -- financial company or bank come in and buy out a chinese bank? buyer beware. due diligence has to be made. of nonperforming loans. they are increasing in this market. there are a lot of hidden liabilities off-balance-sheet. it is not necessarily the step banks would take. i have spoken to jpmorgan's jamie dimon multiple times about this issue. he will be here next week. we have an interview with him. we will get his opinion on this. wants 100% wholly owned bank with the jpmorgan moniker on the building itself before he will go into th

. >> i was at milken. manny the security barred said hello. neil: how is manny?neil: ralph is shouting in my ear. >> so many people talking you up. neil: i paid them. we'll take a quick break, urge you if you can, to online read a very fair and balanced portrayal of this president from a guy that doesn't have any agenda on the right or the left. we have a lot more after this. thanksno problem.. -you're welcome. this is the durabed of the all new chevy silverado. it looks real sturdy. -the bed is huge. it has available led cargo area lighting. lights up the entire bed. it even offers a built in 120 volt outlet. wow. plug that in for me. whoa! -holy smokes! -oh wow! and the all new silverado has more trim levels than any other pickup. whoa! oh wow! -very cool. there's something for all of us. absolutely. it's time to upgrade. (laughter) what do you look for i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know

francine: let me bring you to a quote from ray dalio who spoke to us this week at milken institute. economic well-being for most people, monetary policy does not work. he basically argues that over wealtht four decades, and income inequality have surged. so the most engineering puzzle policy is how to solve that while getting the economic machine back on track. is that mean we need to radically rethink monetary policy? >> i have not seen the post so i can't comment in depth on the post. but i think it is obvious that there is a strong linkage between monetary and fiscal policy and growth. acknowledged. in order to keep the global economy on track, the policy has gone to quantitative easing. and that was obvious from the word get go, really. that is a different story. i think different economies will require a different policy mix. if there is an implication that the u.s. could prime the deficit , yes, that is an option for the u.s. dollar is the u.s. the reserve currency of the is the lenderu.s. of last resort, that is possible. and argentina can't do that. they have no credibility

and they've got to put it together whether it's bob backish when of course was just out at the milkenrence. >> viacom ceo. >> whether the viacom ceo is going to be ceo of the company at least for a period of time. and they have to see how they compete in this land of behemoths. >> that's what i was going to ask, bill. from alan's note, disney gained a cbs after it announced its streaming service in terms of market value the market really rewarded it. how much has the changed competitive landscape made this deal more urgent and where does a viacom deal stand? >> cbs getting size is of great urgency. whether viacom is the right waying to. it's tankly a moot pont as you if sherry rodestone wants it it's going to happen the question is if it still needs to get bigger via a discovery which people have been talking about and that would give you one of the best ceos in the industry and even if cbs viacom and discovery all got together would that still be enough to compete with -- it's not just disney it's obviously apple a trillion-dollar company, microsoft a trillion-dollar company, amazon

maria: all right, wilbur ross joining us there from the milken conference, eric schmit ready to stepany, details, cutting deal elon musk with securities and exchange commitment reaching agreement with tweet, all that straight ahead. maria: welcome back, end of era at google. cheryl casone with headlines,. cheryl: yeah, maria, long time ceo announcing he's leaving the company board, schmitt appointed ceo back in 2001 when google was 3 year's old. he talked about management philosophy. >> managers need to learn, do this, drive hard and sometimes you have to step back and say i want to coach the team, i want to coach this event, i want to help people organize and the way you coach is different from telling people. >> resigned as executive chairman at end of 2017 but remained on the board of parent alphabet, board term expires in june. taking a look at alphabet, nearly up 15% this year. well, federal judge signing off on deal between tesla ceo elon musk and the sec, musk agreeing to submit public statement about tesla's finances and other topics to vetting by the legal counsel at the com

>> when i last saw you, it was at the mil milken conference.ked. what's most important to you? and i recall his response was a reciprocal agreement and a rebalancing of the agreement. i think that's saying that everything's kind of important to secretary mnuchin. but most difficult is how you're going to enforce it. and i think president xi is in his own country struggling with how he's going to help make that happen. maria: yeah. first they agreed on an enforcement mechanism and then at the end of the day the chinese pulled out and the chinese reneged on everything even though they had an agreement in place for that enforcement. so how do you trust them? >> well, that's it. so secretary mnuchin was heading over i think right after your interview. maria: right. >> think about how long intellectual property disputes take in litigation in this country. years. could be five years or longer. and i'm trying to think about how it takes place over in china. i can't imagine president xi closing down a factory for -- maria: you think this is going to go

. >> remember when milken -- that was the first guy i saw make $500 million i couldn't believe it.s was back in the heyday. but i couldn't believe it back then guys like tepper, dalio, billions. >> that was what i was going to say. a couple of people dropped off the list >> tepper. >> tepper is not on the list. >> david tepper is not on the list. >> dan loeb. that was december? december hit this market hard. >> yes, it did about half the people who were on the list last year fell off this year. and several of those people were in pretty good shape going into the final quarter. and some of them fell off due to december alone. >> like all the rest of us. >> right, exactly. >> the other piece of it is, these numbers actually, even though they seem huge, and i don't want to diminish their size, are lower than what they've been in previous years so when ray dalio was last on this list in 2011, he was paid $3.9 billion in that year. so what changed? >> well, one thing that we've observed about this list over the years is that a bad year in the equity markets often translates to lower ear