is there a go to real estate for sam zell? get to a certain level, i will pull the trigger on this? sam: i think the go to place for us is probably patience and discipline. i don't see any area of real estate that would require or demand attention or over allocation. i think the real estate business today is best described as benign. alix: do i want to sell my apartment in brooklyn right now? [laughter] sam: do you want to replace it? alix: yes, i do. sam: that's the problem. alix: so i can sell it, but i can't live anywhere. sam: you can sell it, and then maybe use the proceeds to buy the same apartment. alix: that sums good. sam zell of equity group investments will be with us for the whole hour. coming up, we company reporting net loss for the third quarter. what that mean for the broader markets. this is bloomberg. ♪ alix: the hits just keep on coming for wework. third-quarter net loss of $1.25 sillion it clips and sale and more than doubling losses in the same period last year. joining us is leon kalvaria, citigroup chair

david: that was sam zell, equity group investments chairman and founders speaking earlier this morningwe will get a different view on the wealth tax later this hour. we will be joined by presidential candidate tom steyer, one of the first presidential candidates to call for a wealth tax. ons is "balance of power" bloomberg television and radio. ♪ david: this is "balance of power" on bloomberg television and radio. our stock of the hour is networking giant cisco system. the stress around the globe from brexit to the trade war have caused customers to pull in their horns. cisco is feeling the effect. abigail doolittle is here with what she tells me is a big story. abigial: this is a big story. this could be one of the more important market conversations we have had more recently during the earnings season. you keep asking the excellent question -- are we seeing the effects of the global economy slowing? we have not heard much about that. here we are with cisco, this company missing on the sales side for the outlook -- the miss not so surprising but the degree of the slashed outlook 7% on

eop, real estate company built by sam zell.id a $40 billion buyout of this real estate company. steve: $39 billion, actually. david: $39 billion. it was a bidding war, you won the bidding war. but the real estate market crumbled right after the deal was done. how did you survive with that deal? steve: we worried. the same reason we were going public, i sensed that we were in market top for real estate. so, just buying $39 billion of real estate i thought was dangerous. you had to pay a pretty good price to get it. it was competitive. as soon as we decided we were going to actually raise our price enough to be the winner, there were two or three of us sitting around saying this deal is potentially dangerous. we have to reduce the leverage, and we have to take advantage of the crazy prices people are paying. we decided to sell half of what we bought. the same day, we bought it. when i told people that, they looked at me and said, same day? i said, i don't want to take any risk. that the world is going to change, and we are going

sam zell, what will the white sox do?re jeremy corbyn got in -- francine: nigel farage and the brexit party in the u.k.. out coming out, laying where things are going. this is the really important bit. we heard last week that nigel seate will not contest the s that were won by the conservative party. everyone wanted to know whether there was an agreement between andl farage, the tory, boris johnson so they would not hurt each other's vote. tom: a wonderfully short campaign in the u.k. in their general election. when john authors writes a brilliant essay and we have steven wieting onset, who is the expert i know at linking our earnings into the american economy, john authors with a brilliant essay today. is nons out there relationship between earning surprises and index performance either. it is at least reasonable to argue that rates are swamping any signals we might receive from earnings announcements. clearest, producing guidance. -- the clearest lesson, producing guidance is pointless. are we wrong to make earnings a t

esther day, as you were hearing, i talked to billionaire sam zell, who also turned his thumbs down on warren and her campaign. he said it doesn't make any economic sense. coming up on this program, more on your news and your morning top trades on today's first take. this is bloomberg. ♪ >> there's a trade war. there's a technology war. there's a geopolitical war. and there could be capital wars. that is the nature of the environment. how that is approached is going to determine what our futures are like. alix: that is bridgewater founder ray dalio speaking last night at the national committee on u.s.-china relations. obviously, trade the big focused of today's first take. joining me from our in-house team of wall street veterans and insiders, damien sass our -- sassower, vincent cignarella, and yelena shulyatyeva. i'm reading this from an article we wrote. is this a chip shot to the green or a nerve-racking final stroke of a painter? i love that analogy. vincent: they left out the part where we are probably still in a sand trap. alix: so like my five-year-old drawing a dinosaur. vince