and breaking news, as amanda was telling us, billionaire investor ray dalio is taking a step back fromridgewater associates. we will speak with him and about half an hour. until then, let's bring in kathy burton. kathy, we are hearing that dalio is telling clients they could go towards a partnership model. what could that look like? hase: this is something ray been working on for the past 10 years. he is stepping away slowly from the business, and there has been a few hiccups along the way. they brought in some people from the outside that did not work out, people internally have changed roles. this is the next step in that, and overtime he has been giving people more ownership in the company, the senior executives, so that will probably boost to that. expect that six when we interview him shortly he will tell us that -- -- considered to be the people with the highest standing in the firm are the ones that really get to make the decisions. since ray has the highest standing, he is the one who has been able to control the decision-making. down inhe executives go their tenure, they have

but at the moment, people like the idea of retaliating. ♪ ♪ shery: billionaire investor ray dalio is ing a step back from bridgewater associates, telling clients that they could go towards a partnership model. what could that look like? >> well, this is something that ray has been working on for the last 10 years. he has been stepping away solely from the business. this is a next step in that. other people will have more control of what goes on inside the firm. taylor: bridgewater's ray dalio is one of wall street's most outspoken figures. always ready to offer insight into the markets, politics, and policy. he spoke with bloomberg's erik schatzker this week at the aspen ideas festival. erik: risk in the financial system today, the risks to investors, people with capital are different than they were clearly in 2007-2008. what would you say are the principal risks? in order of importance. ray: ok. as far as the debt crisis, we calculated that we would have a debt rollover crisis. and that -- we don't have that. but we have a situation in which the number of ious that we have, in terms

you know, ray dalio's saying we're bearish on pretty much every financial asset.at do you think of his comments, but b, if you're right about the chart on caterpillar, that would kind of play into what he's saying, be careful heading into next year >> yes i mean, it's kind of funny, because one of the things people keep talking about here is that, geez, the economy looks fine, and you know, it's growing here in the u.s., and therefore, we should be very bullish the problem is, whenever the fed stts to tighten, you know, we eventually see cracks in the system and the problem is, it's something we talked about last week, where it exposes some of the investments that had developed during the period when interest rates were going lower for so long. and the thing is, not only does it expose weakness in the economy, but it also creates a weakness in the economy, because suddenly, you have these mal investments that come to the forefront. and sometimes it's just small things like that everybody on one side of the boat in the short vol trade,ther issues, it showshe people

taylor: ray dalio shares insights into the economic scene. downturn, ive a think it will be difficult. taylor: and the prime minister's of malaysia and greece speak exclusively to bloomberg. >> i do not believe in absolute free trade. >> the most important thing today is that this is the end of it uncertainty for greece. taylor: this is all straight ahead on "bloomberg best." ♪ taylor: hello and welcome, i am taylor riggs. this is "bloomberg best," your weekly review of the most important business news and analysis from bloomberg television and around the world. on monday, investors walk to the to theke -- awoke results of the presidential election in turkey. >> he won a mandate to government sweeping powers after a victory in presidential and parliamentary elections. the nation's longest serving leader took 52% -- 53% of the vote. what is it mean for the turkish economy going forward? >> it is a critical step for the president to has been in power for 16 years, looking to extend that can stay with more power. , thee first round expectation w

this firm was tightly controlled by ray dalio and two of his lieu continue narnt nants who controlled it electrically and through governance votes under the new partnership proposal, the top 50 senior executives will not only get an economic stake in the company, they will also get voting control for the first time and it may very well change the culture of bridgewater which has been known for really this idea of radical transparency. it will be a test of the management in many ways because this radical transparency is this idea of encouraging employees to openly challenge each other historically however despite all of this open challenge, it wasn't a democracy in the past and now it will become somewhat more democratic. so we will see whether the senior employees ultimately want to continue with that type of culture. perhaps it will shift. perhaps it will be more pronounced but a major shift at the world's largest hedge fund >> andrew, how are they messaging with clients a founder leaves, you get worried about the strategy of the company. what are they doing with clients to ensure th

alix: that was ray dalio and erik schatzker. david, you are a lawyer.nto a partners meeting as a partner. you start as a junior partner. it is a different psychological relationship. the relationship among the people is different between partners than employees. not the same hierarchy, even if you are a junior partner, you have a stake in it and people listen to you more. also impressive to me, he said he would have a succession. a lot of people were skeptical of that, because so much, he ran that shop, bridgewater. how it works out. not many people in that position are able to pass it off to the next generation. alix: i didn't know that. i guess it makes sense that you have more ownership. david: you think about the relationship in a different way. alix: i wanted to point out -- speaking to another network about the axios report, that it is not right on the wto thing and fox business news. the story that came out, that trump plans to pull out, is not quite right. trump has said many times, and navarro and ross have said it. if you read at the bottom of

we will see it >> maybe, i mean look, bridgewater, ray dalio >> he's been negative. every year is a differen version of this. >> whatever, they have this new paper out, if you want to call it that, where they say 2019 is setting up to be a dangerous year as the fiscal stimulus rolls off while the impact of the fed's tightening will be peaking. >> it's true >> that tells me that 2018, from here to the end of the year, can do what you folks think it can >> we have german bonds trading at, what, 42 been coupon now but the ecb is already taking their pedal off the gas. no longer pedal to the metal when they pull back completely and when inflation starts picking up there, you'll see the bonds that all those european companies and entities have bought because they needed yield, they'll start selling it. that will raise the yield higher and they'll go back there. we're a ways away from that, but it's a risk he identifies. i don't think it'sa 2018 risk. >> maybe 2019 and beyond all bets are off >> it's not unique, either it's something i think most people in the marketplace

before we go to our ray dalio selloff inwe see a bonds, today.from circles 10-year rate to rise to 3%. do you expect that to be a possibility? steven: yes. perspective,m our we would highlight the ongoing strength of u.s. growth, also inflation. the upside to use potential for inflation coming out of the united states. the second point we would eethlight is the balance sh reduction. there is a substantial impact on yields. that combination is pretty strong, particularly since we see robust global growth continuing. seehe eurozone, we improving outlooks there. -- an improving outlook there. european yields go higher, which we think supports higher yield trends in the u.s. matt: ray dalio is in agreement. we will be playing his interview throw up a day. stephen will stick with us. let's get a quick check of markets. in europess the board of one percent or more. games are increasing as we move through the beginning of the session, 26 minutes in. this is bloomberg. ♪ what's a gig of data? well, it's a whole day's worth of love songs. 300 minutes of b

i am here with ray dalio in the colorado rockies. not a bad place to be. ray: let's have it. eric: let's begin with the obvious. a memo went out to your employees and clients today about a restructuring at bridgewater. tell me about it. we want to do is formalize a partnership structure so that they are able to be -- so that there are actual rules about partnership, a designated group that is partnership. i wanted to formalize that appeared we are going from a company in which i led the company in this way, and now we are going to something that my -- that needs broader far -- broader partnership. it would be like if you were going to have mckinsey as a partnership. goldman sachs has a partnership -- erik: once upon a time they were a partnership. ray: it is a good example. when they have a partnership, they still have to maintain that partnership way of being the yet and they are a public company to we will not be a public company. erik: never? ray: never. that notion of creating a structure so that there is a partnership structure and plays a greater role, nukes to have som

brain and that would be a fool if i was not paying close attention to what folks like mark cuban, ray daliod others, say about what they have learned about the world, markets, finance, and one isng that is fascinating that all say they don't know what the future looks like and they expressed a surprising degree of humility, and they are all grateful for how much serendipity has shown on them. said, but forhas this lucky break or just being in the right place at the right time, my career would have been different. when folks like that share that information with you, plus, they all read tremendously -- lots of books. they read broadly, widely, and they think that learning from mistakes is their secret to success. we should pay attention. vonnie: so you can either find that column or you will retreated -- barry: i will send it to you. battle of the incompetent soccer -- i have no idea. to it saying that euro will take it all. where: i do not even know to start with you while but you need a lot of coaching. andks to barry ritholtz remember to check out that masters in business podcast. this is

we talked with ray dalio in an explicit interview, and he gave us his view on the path ahead.ld say probably between 3.5 and four. but this is an imprecise thing. rise,re interest rates discounts relative to the curve already. the more assets have that as a negative thing. so, is he right, and what is next for treasuries? hans, first of all, where is yield going from here? we think volatility is going up and markets will have it difficult. we believe financial conditions will tighten globally. think we need yield moderation against a consensus yield. so a slow drift lower. james: i am on the other side. this is a year where we find out how high a yields the global markets can take. my guess is it's higher. if anything, the pressures on u.s. yields are going to get more acute. the fed winds down is picking up. i think we are still moving higher on u.s. yields. francine: is there a psychological point? where the yield level hurts the rest of the markets. to see that from a 10 year yield level, i would be careful. i believe the predictive force of the yield curve is much better i

ray dalio is planning to give more ownership as the firm moves toward the next phase of its decade-longssion plan. the partnership changes will give a greater say in governance and management as the bridgewater founder works through a succession plan. >> we are going from a company in which -- i led the company this way, and now we are going broaderhing that needs and more formalized partnership. juliette: that is your bloomberg business flash. nejra: thanks very much. -- xiaomi and investors are said to have raised money end. pricing at the lower where is the deal now? >> the deal has just priced in san francisco. the company and the bankers price it. all we know -- what we know right now is that the deal will , whichcated to investors include george soros fund, capital group, we're waiting for this to start trading in july 9. >> what happens next? >> it will start trading on the ninth and meanwhile there is a week where retail investors will get to know. previously we have heard the retail description is not doing as well as they expected. getting amay be larger chunk than what they e

no, but at the same time, at the same time, i've been going back and searching ray dalio.ou saw his comments if you search ray dalio cnbc 2017, cnbc 2016, we have sort of summaries of his comments to us in davos. >> right. >> talks to us every year in davos.es>> y do you remember? it's hard to remematbewh he said, but it's surprising what he said, because you have to put that in the context of what he's saying now, and it's not -- you know, he's always very thoughtful, but these aren't great comments that were being made in terms of being right about what was going to happen for the next year. so, whether we believe what he's saying now, will you go back and look at some of this stuff >> i will do that during the break. >> back in 2016, he said that it was more likely that the next move the fed was going to do was qe because the economy's going to be so bad in 2016, they were going to need to go back to qe then in 2017, he said that there's not going to be any global growth because central bankers are pushing on stream and you can't get any more out of this debt cycle that

ray dalio is midway through a secession plan. >> we are going from a company in which i led the company we are going to something that needs broader and more formalized partnership. rishaad: looking at starbucks shares, three-year lows on news that cfo is leaving, his retirement as starbucks grappling with slowing sales, tricky expansion in the chinese market, and a partner of howard schultz. it iscks said last week closing some stores in the united states. haidi: netflix looking to india or its next 100 million subscribers. limited customers there at the moment. the average monthly price in india is twice as much as the average pay-tv service. seriesst indian netflix is due out in july. rishaad: the latest unicorn and china's start of arena is up against stiff competition in a crowded bike sharing market. hello bike is what it is called invite at 2.3 billion dollars. in an exclusive interview, the cfo told bloomberg how his company stacks up against its rivals. we definitelythat surpassed our competition. that used to be much bigger than us last year. >> where do you see hello bike goi