david: steve schwarzman, staying with us. t we talk about volkswagen is we're joined by steve rattner, talking about their incoming chairman and a next essential moment for volkswagen on "bloomberg surveillance." --"bloomberg go." ♪ david: welcome back to "bloomberg go." , --elcome stephen ratner steve rattner. we want to talk about cars. as an incoming chair the supervisory board, and he is warning that the cheating scandal could threaten the company's very existence. dealing with the investigations in the united states and abroad, 30 states so far investigating. the claim as they used software to fool regulators about true emissions of its diesel cars. credit suisse is saying it could cause the company upwards of $87 billion, which says it's almost the net worth. stephanie: you were making a face. steve r: it doesn't seem to me that's the way it's going to work out. this is obviously a heroic problem, but this is a company that has amazing consumer support. not this week, not this month, but ongoing, the make terrific produc

who better to have as our next guest as steve schwarzman? eve rattner joins us, who better to chime in on the volkswagen fallout. foeve is the

steve schwarzman wrote an op-ed who said that the next financial crisis will be government and regulators. that therebig sense is in action from notable investors. is that just wrong? larry: i think they are. you have to balance the risks. we would all prefer that the economy was stronger and that the right thing to do was to raise rates. but wishing it does not make it so. you know, seven central banks around the world in the last few years have followed the reasoning of the people that you quote, saying that things are a bit better and zero is a problem, so we will raise rates. seven central banks that raise rates have had to retreat and pull them right back. that is not what the fed's credibility needs. may iow, stephanie, last was on the other side. i thought the right thing to do was to keep rates at zero, which is what the fed did. but i can see how last may you could reasonably have made the argument that there was growing enthusiasm, that it had been at zero for a long time and it was time to raise rates. i do not see how you can look at third-quarter growth forecasts that are run

stephanie: you mentioned steve schwarzman. i am going to step in.he actually believes the chinese economy is better than has been represented. they own shopping malls there. he says the chinese consumers are out there shopping. david: the economy is good when you compare it to our economy in the sense that we are growing at 2% and they are growing at 6% or 6.5%. they are also transforming their economy into a consumer-oriented economy. they also have an anticorruption effort going on. that is dampening the economy a bit. it is slowing the economy down a little bit. david: to continue the tour around the world -- even though they are growing at 6.5%, it is still less than what it was. talk about india. there is a lot of talk about india coming on. david: in 2001, the phrase "brick" was invented. .t meant russia, china now it seems to be india. while india is a small economy a china, that while india is smaller economy than china, it will probably grow this year. prime minister moni -- prime minister modi has convinced a lot of people that india is a

we will hear from steve schwarzman and his take on what lies ahead. clinton takes aim at gun laws. what the front runner on the democratic side has flied out -- laid out in her proposal. we will be right back. ♪ betty: welcome back. just over an hour into the bloomberg "market day." hong kong to london to the nasdaq, this is your global market check. the hang seng up more than one point 5% following friday's disappointing jobs report. mainland chinese markets are closed for public holiday until thursday. one big story, glencore. shares of the commodity giant staged a dramatic rebound in hong kong. shares of beds much as 72%. the shares up as much as 72%. was urging monday and hong kong. the global trading and mining heavyweights jumped the most on record. shopping assets to pare debt amid market concerns about profitability in a time of the work commodity prices. sources told bloomberg possible bidders include the singapore job in -- sovereign will find. the agriculture unit seen especially attractive. generating $26 billion in revenue last year. bett

steve schwarzman of black stone said the cause of the next financial crisis will be the government, regulatorsa big negative sentiment about the fed's inaction by notable investors. are they just wrong? larry: i think they are. we offer for that the economy was stronger and that the right thing to do was to raise rates, but wishing it does not make it so. seven central banks around the world in the last few years have followed the reasoning of the people you quote. things are a bitseven central be better, zero is a problem so we will raise rates. seven central banks that raised rates have had to retreat and pull them right back. fed'ss not what the credibility needs. stephanie, last night, i was in the other side. i thought the right thing to do was to keep rates at zero which is what the fed did. couldsee how last may you reasonably have made the argument there was growing enthusiasm and we had been at zero for a long time and it was time to raise rates. i don't see how you can look at third-quarter growth forecasts that are running at about 1.5%, 1.5% -- that is close to stall speed. when yo

steve schwarzman has created the best model in your book, starting with george robertson.hese businesses are all infants. in real business started 1991 so nobody knows what private equity is. but real estate, as a proxy of value at the moment, has things that no other asset class has been it is slower moving so the volatility -- the standard deviation is perfect for volatility covariance. you wake up in the morning and if david is unlike the cola and so's 3 million of coca-cola before he has a cup of coffee. you want to sell the gm building, maybe a year later. stephanie: maybe just call john gray. [laughter] we have to take a quick break. you are watching bloomberg go. ♪ anphanie: tom, we are seeing increase in people who want to rent right now. what does it mean for your business? tom: partially. homeownership is not about housing. it is about a proxy for creating household by a normal than they make in the job that they have cared most people buy a house because they think they are going to flip it at some point. we have a subsidized mortgage system, fannie mae and fred

steve schwarzman of blackstone wrote an op-ed where he said the cause of the next financial crisis willtors. there's a big negative sentiment around the fed's in action from notable investors. are they wrong? mr. summers: i think they are. we all prefer the economy was stronger and that the right thing to do was to raise rates. but wishing it doesn't make it so. seven central banks around the have in the last few years followed the reasoning of the people that you have quoted, saying things are bit better and zero is a problem so we will raise rates. and seven central bank that raise rates have had to retreat and pull them right back. fed'ss not what the credibility needs. may, i was on the other side. i thought the right thing to do rates at zero, which is what the fed did. but i could see how last may you could reasonably have made the was growingt there enthusiasm and we have been a zero for a long time it was time to raise rates. i don't see how you can look at third-quarter growth forecast that are running at about 1.5% -- that's close to stall speed. when you are at stall speed an

steve schwarzman says i do not shop in china at malls.im chanos sees it as somewhat constructive yesterday. barry: we do invest all over the we have made two investments in china. one is in a small company and one is in an office building in beijing. we have probably not made an investment in four or five years now. stephanie: why? , but: i know i can get in i am not sure i can get out when i want to get out. i always think china is a company masquerading as a country. so there are rules that they play by that i am not sure foreign investors should trust. not sure i'm getting enough of a return premium for the risk i am taking. we are not interested. there is going to be a distress cycle in china. the banks will have to take losses eventually, and then they will sell their assets. there are a lot of people there. it is hard because from a real estate investor's perspective, they decide they will build a new city, they will build a new city and they do not care what happens to the old city. they move the center of the city. so the central

we had steve schwarzman in earlier in the week. he had very complimentary things to say.ost a certainty bush, k-6, or rubio will be in a contest with trump come early next year. and then there will be a moment of truth for the republican party to do you go with trump, carson, fiorina, or one of those other three? >> let's turn to the democrats did i know you said you are supporting hillary and she should be the president. hard time.s having a she said if i could do it over again, the e-mail would not be an issue. you judge people on what they have done to her when she was a senator for new york, i think she was one of the best we have ever had. she was involved and focus on health care and jobs and really helped the state. she is executing the direction of the president. and the leadership of the government. hers and sofan of is christie. it is politics. christie is your life. -- wife. [laughter] i'm a huge supporter of hers. based on what she did and my interaction with her. that's what was her single biggest, schmidt at secretary of state? john: she reached out and spen

david: steve schwarzman was in here. he said they are seeing a lot of consumer spending.nd, whether the order of magnitude is as described. this shifto seeing toward more consumption and lest industrial production. that is happening there. it's not as pretty as they would like for us to believe in --. mountinge pressure is to form a plan after ceo oscar munoz suffered a heart attack last thursday. directors were added in impasse on whether to appoint an interim ceo or start seeking a new and. one of the things i read is the board did not know what the facts were. they were not sure about his condition. i have a lot of friends who have suffered a heart attack and are fine. this is the kind of thing that can be ok. you have to change your diet or start taking a meds. it could be a bad scenario. the board has to get together. somebody has to make the calls and get them on. they have to hear about what his condition is end and they have draft the statement and put it out. it's only monday morning. it's a :00. -- 8:00. i say give it another 24 hours. board.: think of the it ta