let's talk about ray dalio.d hear about this pivotal moment back in the 1980's, where bridgwater almost went out of business. here is what he had to say. ray: mexico defaulted and there was a sequence of default and there was a debt crisis. i thought that was going to cause an economic crisis. i cannot of been more wrong. i was more wrong. i had maybe a people who worked for me, i do let them all go. i lost money for me and for clients. dadto borrow $4000 from my because i do not have enough money even to take care of my family at that point. that was painful. it was a most bible thing that happened in my life, -- it was the most valuable thing that happened in my life. it changed me. i wanted to find the smartest people i could. amazing. is larger-than-life characters and stories that go back decades. you would not think that would happen to ray dalio. robert: often that is what makes the ray dalios of the world. they go through that can they get a new discipline about how they do things. jason: let's talk abou

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stillan: -- vonnie: ahead, ray dalio. that is coming up. this is bloomberg. ♪ guy: live from london, i'm guy johnson. vonnie: and from new york, i'm vonnie quinn. this is "bloomberg markets." been trying may has to drum up support for her draft brexit deal. she spoke of the confederation of british industry's conference in london. world is changing fast, our geography is not. europe will always be our most proximate good market and ensuring we have three flow -- free-flowing borders is crucial. we are joined by the cbi's director general. good afternoon. i was listening in on some of the commentary around the cbi today and some of the questions you are being asked. i will paraphrase some of the questions and put them together. i guess my question centers on the cbi support for the brexit that the prime minister has put forward. my question is, is it a good deal, caroline, or is it a new deal brexit? caroline: it is significant progress. what we have seen -- it is a hugely important time for british business. we are four months away from a p

expecting quarterly results from walmart we'll bring you the numbers and instant reaction later ray daliojoin us stayun, u' tedyore watching "squawk box" on cnbc really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies lead with digital. ♪ >>> welcome back to "squawk box. many employees in the mod determine economy are more flexible and nomadic joining me an entrepreneur trying to find a place to live director of zeus living. and our guest has invested in zeus we designed this as kind of a rework for housing i don't know if that's the way to describe it help us. >> yeah, it's not that far from the way i would describe it. we're noticing millennials they want to be more asset-like, they want more flexibility. we're providing a solution where they don't have to sign up for a lease or a space. >> how does this work? you're taking on longer term leases and they're taking on shorter-term leases? >> yeah.

and, why billionaire investor ray dalio seems a parallel between today and the 1930's market. says he is not worried about the debt situation in china. he said china can handle a debt crisis and still has the place to invest. >> chinese debt is mostly in their local currency. the amount of debt is very small. now, you are dealing mostly with an internal issue. also, the lenders to china are in their system and like i said, the capacity to handle that crisis by spreading it out in one way or another is quite large and they have the expertise to know how to do that. i think when you look at that cycle, there were four cases in which the united states had major debt crisis and they were able to be managed. in themple i gave 1982-1988 crisis was the ability to spread that out. china has that ability. i think everyone is focusing on that and -- to focused in on that and they are not focused on their productivity growth and how they are making changes. i think a bad year of growth will probably be twice as good in terms of that productivity and if you look at indicators , quality of

. >>> ray dalio weighing in. >> i think the upside position is not as strong and relative to the risk. >> we're hitting the home front. as kb homes sets a new one-year low and will today's damning "new york times" cover story on facebook force change at the social media giant >>> welcome good to have you with us on this thursday, with to trade and debate the stories, josh brown, jim leaven that will, kevin o'leary, anastasia amaroso, the global investment strategist at jp morgan private bank and steve liesman is with us stocks are mixed we will go to prime minister theresa may's statement in a matter of minutes. there's a host of news here at home to discuss. those comments from fed chair powell, bridgewater's ray dalio warning the fed of what its planned path is already doing to stocks >> i think that there's a problem in terms of asset prices i think that rate of increase would not be able to be made because we have raised interest rates to a level where it's hurting aset prices. we're in a situation right now that the fed i think will have to look at asset prices before they look a

. >>> elsewhereridge water ray dalio the largest hedge fund utde cautious comments a the stock mechanic and pointing fingers at the fed. >> we're in the latestages, maybe the seventh, eighth inning of thees bus cycle, right? we're in the part of the cyclew e there has been a lot of monetary easing, potential banks bought v 159 trillion asrth of t, pushed them up a lot we have the benefit of a corporate tax cut. all that stimulation and as a result we're in thet late of the cycle. where there is a tightening of monetary policy. we have raised interest rates to a level where it's hurting asset prices. >> dalio laughed off the notion that the central bank needs to raise rates to have room to mak cu if the economy softened. the fed is which hadly expected to hike rates at its meeting next month. >>> aramatic dcross the atlantic. uk prime minister theresa may s faces whae call a political crisis. after t cabinet minorities rejected the draft brexit deal and quit her government. but may insists she is notnd worried that an exit from the european union will getdo . >> i believe that this is th

. >> thank you very much >>> as everybody knows ray dalio warned investors earlier this morning on "squawkend of the bull run may be near. >> we're in the late stages, maybe the seventh, eighth inning of the business cycle. right. we're in the part of the cycle where there's been a lot of monetary easing, potential banks bought $15 trillion worth of assets, pushed them a lot. we had the benefit of a corporate tax cut. all that stimulation and, as a result, we're in the late part of the cycle where there's a tightening of monetary policy. we've raised interest rates to a level where it's hurting asset prices >> let's bring in nancy tangler, chief investment officer at hartland financial and matthew joining us from the new york stock exchange i think you agree with ray dalio to some degree, yes? >> i do, bill. thanks for having me i think it's more about the pace than where we are in absolute terms. we're still at a zero real fed funds rate that is not, that is not difficult to get over for asset prices but i do think we got some encouraging tone from powell when he said we'll think about ho

. >>> ray dalio weighing in. >> i think the upside position is not as strong and relative to the riskre hitting the home front. as kb home

up next, ray dalio believes he or entering a period of global returns in the u.s.nterview him next. this is bloomberg. ♪ ♪ to go for lower terms in the future, because if you take all these obligations, there are unfunded pension obligations, health care obligations, there's a lot of obligations. essentially, a lower real interest rate and the lower asset return. assets are held by those who are more rich. lowerk you can expect returns and probably more taxes. >> that was ray dalio, the founder of bridgewater associates speaking at their opinion piece. still with us, michael, brady e years of-- th low interest rates have squeezed returns out of assets. how long will this last? >> that's difficult to say. there's a big dispute between secular stagnation on the one side and on the other hand technology will come to the rescue and we will see higher overall levels of productivity. i would side of more with the second part. i don't believe -- we are still extremely tainted by the air on the financial crisis, and coming out of that was anything but normal. i think we ar

ray dalio says years of low interest rates and quantitative easing have squeezed most of the returnsut of assets in the united states. in an interview with bloomberg, he also said he is optimistic about prospects in china. >> i am not worried about the debt crisis in china or the debt situation in china. i believe it is going to be a very good place for long-term investing. mark: bridgewater is the world's largest hedge fund firm with about $100 billion in assets. the official in charge of the 2020 tokyo olympics says national government spending on the event is billions less than a recent government audit showed. earlier this month, the government said it was spending about $7 billion in estimated japan's total spending would reach $25 billion to prepare for the games. the olympic ministry said today government spending was only $1.5 billion which included funding for a new national stadium. global news 24 hours a day on air and on twitter powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ caroline: this is "bloomberg m

. >> that was the bridgewater founder and cochairman, ray dalio, speaking exclusively to bloomberg.vers. >> really a down day and we are starting with one of the chipmakers that is falling. it is flirting near bear market territory and they cut orders for chinese companies into the european shipment. down nearly 1.5%, another read across with u.k. homebuilders, particularly those heavily exposed to the london market. a new report found stockpiles of unsold homes have surged by nearly half in 2018. another to the downside is casino, down .6%. the supermarket chain is freshening up management to fend off short-sellers. the new cfo is david knew back taking the helm. >> thanks very much. tech stocks plunged, leading a rout in global stocks. all major u.s. benchmarks were down by 1.5% yesterday. the nasdaq dropped more than 3% amid concerns that the trade war will disrupt supply chains. bitcoin has been sinking, falling through the $5,000 level for the first time since october, 2017. let's talk about tech. our bloomberg opinion tech columnist joins us on set. good morning. we have been

they have big structural issues, so i would say that europe we would be the most -- anna: that was ray dalioively to bury rittels. barry we our 40 minutes or so from the start of it european trading day. the weakness in the asian session very much a tech story. of a kind of expectations and should trump meets -- what kind of expectations should we have for trump meets xi? futures in europe suggest weakness. the trade concerns and the tech tantrum seem to be continuing into european powers. the revolt against the uk's prime minister seems to be faltering with the threshold to trigger a vote of no-confidence still not having been reached, however one tory rebels said it is best to wait until the parliamentary vote to make a move. i asked the u.k. labour party leader, jeremy corbyn, about what he would plan to do if he were in government. exchangeirman of atlas , it was said that a hard brexit would be armageddon. i asked jeremy corbyn what he made of those comments. >> he's got a pretty vivid sense of imagination, but i think he should read something in the more positive in the future. i don't

yvonne: bridgwater's founder ray dalio said investors will expect low returns for a long time. >> youower expected returns in the future because if you take these obligations, i'm talking about the debt obligations, unfunded pension obligations. there are a lot of obligations and essentially, a lower real interest rate and therefore, asset returns. arets are held by those who rich relative to that. you can expect lower returns and you can expect probably more taxes. the ceolet's bring in of fund management and investment capital dynamics. thanks for joining us. is this the new normal? low returns, high vol? a new regime? been astment as always period of high return, low risk, risk.gh have low riske we is over. rishaad: we are entering high risk. tan: in school, high risk equals high return. that only lasts at a certain phase because there are alternates. we are now in a high risk, low return era. yvonne: what would you bl ame for this recent selloff? the unwind of these extreme positions? tan: it is a convergence, but if you really want to find the scapegoat, i think it would be jerom

ray dalio brought up a point effectively that if there is a cycle where the dollar falls out of favord have a situation with italy, where there is a concern about how much you deficits are blowing out. vonnie: are member when all we could talk about was the yield curve flattening and inverting. does anyone worry about that anymore? not anymore. we saw the five-40's curve rate today, the highest in months. it is fascinating to watch how the long end his hat -- is lagging behind. it did not get a bid, even among the stock market volatility. it seems like a lot of overseas investors and people here as well are comfortable weighing in the two-year, three-year, five-year portion of the curve. you pick up so much yield relative to the 30 year bond just by staying short. brian chappatta, our bloomberg opinion columnist, thank you so much. the stocksng news, are getting a pop on the response from china to president trump tweeting earlier that he had had a conversation with president xi. president xi says is willing to meet china amid amid the g20ng -- meeting. we had anticipating a meeting wo

we're going to talk to ray dalio. we've got jones. >> a good lineup up in connecticut.es will be, you know, front and center. >> what kind of face is that, joseph >> i just -- you know thoetz sey got a lot of money hit them where it hurts. nobody needs that much money boom, it'll work. >> they tried that then people left the state >> oh, that's right! there's somewhere else they can go where they don't do that! >> florida massachusetts. >> damn. >> why aren't you on the campaign trail right now >> i just watch this to me it's -- >> you should be behind the podium like another -- >> you know what if someone -- if asked to serve -- >> i think even when you're not asked to serve >> all right so you can move? man. coming up, the election effect on the markets you're looking at a live shot of a polling place in wilmington, delaware eli lilly's ceo will join us about their recent earnings report ♪ the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet? now when you go out, you cash in. whooo

of wsj at large at out 30 eastern after maria bartiromo wall street and my special best will be ray dalio thank you for all star panel. >> maria bartiromo -- "varney & company" begins right now. stuart over to you. >> thank you maria and good morning everyone. the summit off and running, with nonstop action, we've already seen this signing of a new nafta deal. by the way it is now known as usmca, the president says it is a win for american farmers and manufacturers. next up, china trade. heavy economic pressure on china. political pressure on president trump. okay. i'm going to go out on a limb. i think there will be a truce, a cease-fire, and by the way, trade guy, robert light highser said, quote, he would be surprised if saturday's dinner was not a success. more on that later. favorite story of the day, favorite story of the month actually. gas prices absolutely tumbling. the national average is down to $2.40 this morning. it is cheapest in missouri where average is just $2.10. don't tell me this isn't a big plus for the the economy. and holiday selling season, i think it is. to the st