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tv   Bloomberg Best  Bloomberg  October 14, 2017 12:00pm-1:00pm EDT

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michael: coming up on "bloomberg best," the stories that shaped the week in business around the world. daily drama in a d.c. twitter, taxes, trade, and turkey. just some of the trending topics. >> you play this forward and terms of tax reform every vote , counts. >> it looks almost like a strategy the trump administration has put a kibosh. >> a is a slow but systematic attempt to remove the nuts and bolts of the affordable care act. >> earnings season begins with a bang, with big banks reporting. the crisis in catalonia continues. >> for 10 seconds catalonia was an independent republic. >> disaster for a japanese
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steelmaker. >> very damaging for japan's managing sector. michael the i.m.f. puts out a : sunny growth forecast. christine sheds light on the support. this report. christine we see the sun shining : but we also are seeing the clouds on the horizon. michael: fomc minutes. fed presidents add inside insight. >> i'm really nervous inflation expectations are low. >> we're not trying to address the relative price changes that occur in the economy, we're trying to get the underlying rate. michael plus, economists : consider the conundrums of tax reform. >> has to be base-broadening as well. growth will pay for part of it but not all of it. >> might as well assume unicorns will come and deliver packages of money. there's no reason to believe this. >> there are miracles and sometimes productivity growth picks up and for reasons we don't always understand it happens. michael all straight ahead on : "bloomberg best." ♪
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michael: hello and welcome, i'm michael mckee. this is "bloomberg best" your weekly review of business news , analysis and interviews from bloomberg television around the world. now, president donald trump's legislative agenda was going to be a big story this week no matter what. monday dawned with unexpected political fireworks. >> president trump made an interesting choice over the weekend. he can afford to lose only two republican senators if he wants to get tax reform done and he decided to pick a fight with one of the senate is. the president blamed bob corker of tennessee for the iran deal, said he was not running for reelection only because he failed to get the president to endorse him and that he wanted the secretary of state job but he didn't get it. for his part, senator corker compared the trump administration to a reality show said the white house was an , adult daycare center and the president's threats against other countries could put the
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country on the path to world war iii. >> if you play it forward in terms of tax reform, every vote counts and senator corker, while not the most physically -- fiscally conservative in the upper chamber, his raising the fiscal issue really in line with what some members of the far right and senate have also been saying and that poses significant political risk for tax reform by the end of the year. >> president trump demanding congress fund his border wall, and it will be changed for letting dreamers stay in the country. how much more of a distraction will this be? >> it will be another distraction. chuck schumer and nancy pelosi said it's a nonstarter. when you look at the polling of the vast majority of american support, a clean daca bill that provides protection will be laid at the feet of the republicans if it doesn't happen. >> a crucial moment in the crisis in catalonia. the president is set to address lawmakers in barcelona just moments from now. a lot of anticipation in that chamber.
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>> we're not sure of the wording people use. we are not even sure of the format the parliament might take place. we're not sure the opposition will get a say here. we do know, however, they have a majority in the cabinet and parliament and if they , wanted to enact this law to create an independent republic, they have a majority to do it and can get it done. the question is whether the word "unilateral" will be used or backout last-minute. >> the government is proposing that the parliament shall suspend the effectiveness of this declaration of independence in such a way in forthcoming weeks we can undertake a dialogue without which there can be no agreement. we need to open up a time period to have a dialogue with the state of spain. that's something else that shall be done today out of responsibility. >> spain maintaining it's ready to seize control of catalonia if the push for independence continues.
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the prime minister said catalonia's efforts to break away from the rest of spain are fraudulent and fruitless. >> it was a fraudulent referendum in the first of october and cannot go ahead by that amount of people. >> yesterday the catalonia , president made the move and said i'm ready to upset the -- except the mandate. for 10 second it was a independent republic and then said i'll suspend this for talks. he made it crystal clear there's nothing to talk about, this is a complete fairy tale and his signal now, i'm ready to implement article 155 and time is running out and the president is running out of options. his divisioncks will implode. but he will implement this article when he's out of government. >> the fed released minutes from the september meeting and showed growing concern in the central bank that low inflation is just more than a passing fancy. policymakers said another rate
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hike this year would depend on the strength of the economic data the next few months. >> i think the minutes show the policymakers are taking the inflation backslide a bit more seriously than they were earlier this year when they were quick to write it off as transitory and idiosyncratic. now they're pondering whether part of that weakness may be due to broader global trend and means they're now hinging their decisions to hike by year end in the next couple months of economics data, but also acknowledge that the hurricanes are going to muddle those reports. they're in a bit of a complicated position. think -- i think what is interesting here is when we look at the roster of who will be at the december meeting, there are four or five doves i'm not sure chair yellen will have a vote at the meeting for a rate hike. >> jpmorgan and citigroup kicked off third earnings season
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revenue from ficc trading plunged 27% at jp morgan and citigroup saw a 16% year-over-year decline in revenue from the -- >> you had top line revenue growth this quarter but when you balance out the top line revenue growth with a weak capital markets, particularly trading, investment banking was healthy, you're getting no revenue growth, maybe 1% or 2% revenue growth. if you look at loan growth year over year the past 52 weeks it's dropped from a high single wage growth -- rate of growth to maybe 1.3% rate of growth. if you look at activity in the trading markets, it continues to be fairly anemic. >> one positive thing we did get in this quarter is cost control. both citi and jp morgan coming in very big, and is important because as the revenue environment becomes uncertain you want to know the banks are doing what they can in terms of trying to protect the profitability of the firm and the fact you can bring down costs and become more efficient, obviously that provides more
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upside as the revenue picture improves. >> bank of america posting its best profit in six years, higher rates helping there. wells fargo takes a surprise $1 charge for a precrisis mortgage billion probe. >> many of the metrics we monitor for these large banks came in positive for bank of america and the net inches -- net interest margin, for example. we point out the expense control at bank of america is quite strong and they continue to focus on reducing expenses to a $53 billion number for next year. the wells numbers on the other hand obviously have the one-time charge which we take out and came in line with expectations on the bottom line. the revenue growth was not as strong as some of the other banks as they continue to work their way through the scandal that they've been dealing with. >> president trump has disavowed the iran nuclear deal without yet quitting the multinational accord. that's very important.
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he has refused to recertify iran which he must do every 90 days and he hasn't yet quit the accord. president trump: as i've said many times, the iran deal was one of the worst and most one-sided transactions the united states has ever entered into. >> we are in limbo now. essentially if you look at the broader situation, it's adding more uncertainty into the mix we have right now. again for business this is not , really what people wanted to hear. certainly they wanted a sense that this massive market with all of its huge potential will be opened up again and it looks like this probably will continue for the next few years. michael: still ahead as we review the week on "bloomberg best," conversations with i.m.f. managing director christine le guard and sergio ermotti and fed presidents charles evans and
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eric rosengren. up next more business headlines. economist richard thaler is happy to win the nobel prize but not so upbeat about the markets. >> i don't know about you, but i'm nervous. michael: this is bloomberg. ♪
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michael: this is "bloomberg best," i'm michael mckey. let's continue our global tour the weeks top business stories. in japan, where a scandal engulfed the nation's top manufacturing companies. >> shares of japan's third largest steelmaker continue to fall, being absolutely battered, kobe steel is down 20% over two days. this comes off after kobe steel admitted their staff falsified data about the strength and durability of some of its products.
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>> this is very damaging for japan and damaging for the integrity of the japan's manufacturing sector and manufacturing and exports are the bloodline of japan's economy, the world's third largest. it comes in the back of standards lately such as takata air bags. if this has spread overseas -- we know kobe is one of the oldest companies and supplies some of the biggest automakers like nissan and toyota. if it does emerge they have been supplying auto companies around the world it would have a severe backlash on japan's integrity and have consequences down the road. >> shares of kobe steel falling for a second day, down about 15.7% as of now as the data scandal widens. they admitted falsifying information about another of its products but insists safety has not been compromised. >> iron ore data was falsified and that was shipped to one customer. iron ore powder is used in a lot of machine tools and auto parts,
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everything from exhaust and power steering systems to camshafts. we're still trying to pin down exactly which customer that was, but so far the company has confirmed. one of the problems for kobe steel, over the last few years the steel industry has seen a lot of consolidation and mergers which put more pressure on kobe steel to compete with these big, huge rivals, so it branched out in lots of other businesses. one of the things we're looking to see is a sell-off of assets not only to raise money to deal with liability but also to help it sharpen its focus on its core businesses. >> the fourth round of nafta renegotiations begins today in washington. president trump says the u.s. will walk away if a deal doesn't meet his expectations and he's repeated that. president trump: we'll see what happens. it's possible we won't be able to make a deal and it's possible that we will. >> there are a number of priorities of the trump administration in these talks that canada and mexico may regard as being poison pills.
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real deal breakers related to country of origin rules and things like that. do people have to rep for the -- have to prepare for the real possibility in your view nafta could go away? >> yeah, joe, there's increasing chatter that it looks like some these proposals are so far off the limit, so politically impossible in canada and mexico that it looks almost like a strategy the trump administration has to put a kibosh to these talks and this concern is bubbling through the u.s. business community. it looks like these proposals are trying to make the talks doomed really from the start. >> congress failed to pass health care reform. president donald trump has now taken his own action. today signing an executive order which he says will promote choice and competition. president trump: my administration will explore how we can expand something called short term limited duration insurance. >> the outlines the president has announced are important in terms of both signaling his
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intention and kind of a tertiary effect which could be immediate , which is the potential to have a chilling effect on signups for the affordable care act heading into the enrollment period and the prospect of pulling healthy people out of the existing system. >> the trump administration is taking the most drastic step yet to roll back some of the provisions of the affordable care act, saying it would stop making subsidy payments to insurers. in a statement, the white house said, quote, "the bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system." >> and let's be clear about what's happening here. there is a slow but systematic attempt to remove the nuts and bolts of the affordable care act in order to foster uncertainty in the market. and i think catalyze some degree of legislative action.
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>> brexit talks have hit a wall, the sticking point money, specifically how much the u.k. owes the e.u. >> basically there's no deal. a no deal will be a very bad deal. >> u.k. is planning for all outcomes. it's not what we seek but we're planning for everything. >> the progress that's been made is really teresa may's speech in florence when she said the u.k. would meet its obligations broadly and continue to plan the budget for two years after brexit. what vonnie said today was that there has been a new momentum -- he mentioned may's speech in florence and said but, the negotiators here today haven't put flesh on the bones of what she said in florence with 15 months to go, the u.k. wants a feel. how realistic that is is up for debate. this deal has to be approved. there are months of approval process once the deal is agreed so it's looking pretty tight. >> now the trump administration has formally proposed to repeal
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the obama era clean power plan. this was a 2015 regulation aimed at curbing green regulations and today the federal administration agency scott pruett said we're committed to righting the wrongs by cleaning the regulatory slate. any replacement rule will be then carefully, properly and , with humility by listening to those affected by the rules. >> they're arguing the obama e.p.a. overestimated the potential climate change and health benefits from this rule while kind of downplaying the potential costs for customers, electric customers and utilities . and they're arguing the e.p.a. under obama overstepped its authority. that this rule was way too broad and it flouted decade of practice of regulating emissions at individual power plants because the obama approach basically required broad changes to the electricity sector. the attorney general of new york and other state leaders have also indicated they're going to challenge this plan and one of the ways they'll do that
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is by focusing on how the trump administration is justifying this change if they have adequately justified basically 180-degree pivot and policy. >> deutsche bank chief president john cry is facing increasing pressure to perform at investment. the deutsche bank shares lost raised $ 8since cry billion from investors. now april there are rumbling if he doesn't deliver on key parts. his job may be at stake. is he on borrowed time? >> he has been for a while, as soon as he announced his strategic shift in march we had investors saying that he doesn't have that much time to show this is going to work. and the numbers in the second quarter are somewhat disappointing and the news hasn't gotten any better since . and what he's been described as is a fireman. he's come in and put out the fires and now it's back to rebuilding the bank.
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and i think this is where investors are getting a little nervous that that rebuild is taking longer than they might have liked. >> hsbc naming john flint as the next chief executive officer after new chairman mark tucker opted not to work with tradition and tapped a long serving insider to run the largest bank. would hsbc been better off going down the barclays route and opting for an outsider here? >> i don't think so and i think because there wasn't that much pressure at this particular time to choose an outsider. i think now we're seeing, because u.s. rates are normalizing and emerging markets are holding up, because growth is there, that they actually want more of the same which is more loan issuance, more cost cuts and a steady hand at the tiller and that's what mr. flint represents. >> richard thaler won the nobel prize for economics in his work in studying the role of human
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biases in decisionmaking and their effect on markets. the university of chicago professor co-authored the bestseller "nudge." 2008 this is the badge of authenticity placed now on upon behavior economics if it wasn't already. >> thaler most of all more than any particular research he did, he was the guy that did all the blocking and tackling and the organizational work to make behavioral economics respectable, to make it possible for grad students to get money for research in behavioral economics. he was the institution builder who didn't want to destroy mainstream economics but wanted people to pay more attention to the weird ways we think. >> so less volatility in the stock market, yet stocks seem to be going higher. do you have behavioral explanation for this? >> i don't know about you but i am nervous. it seems like when investors are nervous, they're prone to being
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spooked and nothing seems to spook the market. if it's all based on the expectation of some big tax cut, surely investors shouldn't have -- should have lost confidence that that was going to happen given what's happened so far out of congress. ♪
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michael: welcome back to "bloomberg best," i'm michael mckee. they raised global growth this week as they kicked off meetings in washington, d.c. despite a stronger base line outlook, inflation and global monetary tightening remain points of concern. managing director christine le guard flushed out the i.m.s. -- imf's report in an exclusive conversation with bloomberg's tom kean.
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tom: have we reached escape velocity on all the agony of the last 10 years? christine: let's hope so but it's not guaranteed. while we have certainly better growth and better growth forecast, 3.6% this year and 3.7% for next year, it's not shared across the world. you still have 25% of the world measured in g.d.p., which is not enjoying that stronger recovery. while we see the sun shining, we're also seeing the clouds on the horizon and countries and people not having the benefit of it. tom: how does the i.m.f. link constructive tax reform with the worldwide idea of getting our debt house in order? christine: well, you know, what needs to be done is to look at
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the evidence, at the data, at the numbers and then determine policies on that basis, within mind, two things. the revenue, the spending and political objective to being pro growth, of wanting to improve the situation of the middle class, and of ultimately reducing excessive inequalities if that is the case in that country. so that's what needs to happen. but clearly in those country -- countries with a heavy debt burden and those that have entitlements coming to fruition that will probably increase the spending, it is necessary to take into account that medium term and to make sure that any tax reform is revenue-generating. tom: what is so important here is the tone of the i.m.f. of a more optimistic world, obviously the united kingdom is off their game with a battle over brexit and all that, and there are other serious issues with emerging markets. but you also marked down the u.s. because, am i right, the i.m.f. is doubtful on successful tax reform legislation in the short term? christine: we've actually marked
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up the u.s. economy compared with our july numbers, and then we've marked up a few other countries, including advanced economies. what we hope to see is implementation of the reforms that we have called for for many years. a good solid tax reform that will be simpler, where rates, particularly corporate rates, will be lower, with a base that's much more solid and clear. that's what we hope to see. and you know, the sooner it goes through, the better. michael: still to come on "bloomberg best," more headlines from a busy week in business, including the latest bad news for uber, and fighting words on trade from a british m.p. and straight ahead, another dive into the week's top interviews. the g.o.p. tax plan doesn't have much detail yet but some highly respected economists weigh in on its all important assumption. >> there's very little risk to think that tax cuts matter much
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one way or the other for underlying growth. michael: this is bloomberg. ♪ who knew that phones would start doing everything?
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♪ >> i think what is good for the market is that you don't limit participants to the marketplace. liquidity is important and when you limit participation in times of stress, when things are like they are right now with low volatility, but also in times of stress, you want to make sure everybody is in the marketplace. i think the balker act the way it was written was ill-advised at best. i did not support that. i believe the banks should not be allowed to prop trade. there is nothing wrong with it if they are regulated like everybody else.
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michael: that was terry duffy discussing market participation and regulation with john mickelthwait. we had another exclusive conversation on markets this week with ubs chief executive sergio ermotti. julia chatterley and joel webber asked where investors are focusing their interest and whether he is worried about complacency? >> across all asset classes to be honest. more remarkable is critics across the board. credits -- more remarkable is credits across the board. in corporate credits, across the junk, it has been great. i see a lot of complacency in the level of risk that investors are taking. julia: enough to cause alarm? >> not alarm, because to be
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honest, trends seem to last longer than we expect, and therefore, it is too early to say that if this is alarming are not. so of course we have to pay , attention to that. >> what are you hearing from clients right now? what are they asking for? little bit we see a more willingness to deploy cash, but that has not really changed from the beginning of the year. we measure a little bit. our indicator is the cash balances the bank. and you know, we had been drumming for the last four or five years in the high 20's. now we are going down to the mid- that is good news. 20's. a little bit more willingness to deploy money and invest money in equities than in bonds or any other asset classes. still looking for that diversification. the conviction level is not that high to be honest. michael: the trump
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administration's tax reform plan was a topic of conversation throughout the week. lead to proposed cuts huge deficits or generate sustainable growth to pay for themselves? three economists addressed those comments on bloomberg television. >> cuts in the corporate rate will increase investment and productivity and wages. the tax cut will not pay for itself though. there has to be base broadening as well. growth will pay for part of it, but not all of it. so i think the two site are talking past each other -- two sides are talking past each other, but the center of the debate needs to be growth and wages. lower corporate tax, higher wages. david if it is driven by capital : investment, how can it be that corporations are waiting for tax cuts? the cost for capital for companies has been approaching zero for a long time. if they wanted to invest, they wouldn't they be investing right
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now? >> i think a lot of companies are confused about the future state of growth in the economy. tell me about growth and i can tell you everything. businesses are afraid the economy is stuck in a slow growth mode. tax reform is one of the few things that can change that expectation and contains a climate for business investment. as well as the location of that investment inside the united states instead of abroad. john their message in d.c. is : that we can get up to 2.9% over 10 years. that is how they think it will pay for itself. now you said, it will not pay for itself, but where do you think gdp can get to sustainably over 10 years, given the difficulty forecasting the next six months? >> i think it is quite possible that gdp growth could get to that level, but it would require more than tax or form. you said that demography was destiny. i don't agree with that. the bureau of labor forecast in
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2006, only a modest decline of labor force participation over the next decade. they certainly knew what demography was. we have seen a collapse in labor force participation. better policy can fix that, but that is more than the tax bill. >> the underlying growth rate seems to be lower than it was before the crisis, and we don't understand exactly why, but we are not going to get 3% growth anytime soon. >> the idea that we cannot get back to 3% specifically around u.s. gdp, we have an administration that would like the tax cuts to pay for themselves and generating growth over 10 years. are you basically saying that is not possible even with what you have seen in the tax plan? >> nearly anything is always possible. is it is unlikely? no, it is not likely. the big issue in the u.s. and elsewhere in europe is that productivity growth is low. so you add aging to this and
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, this gives you growth rates , which are far below free. there are miracles. sometimes on activity which , causes it to pick up for reasons we don't understand. it could happen. i don't believe that tax reform that is on the table would generate this, but it could happen for other reasons. but it is very unlikely. reasone is very little to think tax cuts would matter one way or the other for underlying growth. the base would have to cut taxes you cut tax collection. , >> if you are arguing the financing will be provided by higher growth as a result of the tax cut -- >> you might as well assume unicorns will come and deliver packages of money, right? there is no reason to believe this. >> on the corporate tax side, are there ways you think it can be a way that is more efficient? more logical?
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>> the reform paul ryan floated this year, that destination-based cash flow tax, which included the border tax adjustment, was a not stupid idea. in fact, it was one of the few things i have seen from paul ryan -- >> this is a big moment where paul krugman is praising something from paul ryan. [laughter] fact, it enhanced bipartisan support among members. -- among tax experts. people are saying that this is a good idea. it is the one thing i have seen from paul ryan that was not a terrible idea, but it died instantly in the political arena. without that, without the border tax adjustment, there is no way to make a significant corporate cut in marginal tax rates that doesn't explode the deficit. michael: the minutes of the fomc september meeting answered some questions about the direction of monetary policy, but further insight came from the one on one
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interviews we can with fed officials. let's start with manus cranny's conversation in zurich. with chicago fed president charles evans. charles i'm thinking it will : take longer to get to 2% and we might need a continued , accommodative stance. accommodative now. from here on out, every rate increase will get closer to that line where we are not sure if it will lead to inflation moving up. and so, i think those are judgments we have to come to the for the next rate increase. manus: from the data you have seen so far, where do you stand on a december hike? charles it is too early to say. : i think the inflation data has been disappointing. i understand, i have read the arguments, and i heard that it is likely due to transitory factors. are certainly -- there certain we have been a number of those
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in the u.s. low inflation is a global environment, and the whole world is dealing with transitory effects. thatok, i'm sure some of is true, too. i am really nervous that inflation expectations are low. they have been low for quite sometime. our fomc state back in october 2014, we have regularly been calling out that market measures of inflation expectations have been moving down. they continue to be moving low even though they bounced back after the election. i think survey measures are also weaker than in sometimes we talk about. >> is it like waiting for godot currently? where is it going to come from? >> what we have seen in the last couple of months is a lot of tightening of labor market, and i think that will eventually put upward pressure on wages. once i start to happen, we will see prices move across the board. we have done a bunch of
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research, and our analysis suggest that the labor force participation rate in those segments of the market that are usually the last become back in response to ever session, have really started to pick up. we are at the end of any sign of slack in the marketplace. >> when you get inflation a few months after the thing that caused it, that is what you are suggesting? >> exactly. >> now, with that in my, will the fed go in december? >> so, i don't know. you know, one of the things that we try to do in advising our colleagues is let the data tell me what the marketplace is doing. for us right now, because of the storms that of racked a lot of my district, there is a lot of noise in the data coming out. one of the things i'm going to try to do is to go out into the field, talk to my business contacts across our district, and get a sense of how disruptive it has been. from there, draw conclusion on what i think we should do in terms of monetary policy.
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>> a year ago, eric said to bloomberg news we will be close to our 2% inflation target by the end of 2017. i am not picking on you, but that is the kind of forecast questions,awn some shall be say, on global wall street. >> right. if you look back to march, we were still expecting 2% inflation. in one of the temporary things that occurred at that time was the wireless pricing change, which had an impact on the current numbers. but we are trying to do was get the underlying trend on prices. there are relative prices which could change a lot. that is one reason why we focus on core inflation rather than total inflation. because sometimes we get spikes up in oil that are not predicted.
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+++ well. we are not trying to address the relative price changes in the economy. we are trying to get the underlying rate. and so, the report inflation is quite low, but i think it is partly a reflection of temporary factors. we are about to have more to pray factors. the hurricane is like to have had temporary effects on inflation as well. that is not something we should react to either. we can have periods we get relative prices that go up or down. we want to get that underlying inflation rate. my expectation is that we will get an underlying inflation rate relatively closer to 2% over the course of next year. ♪
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michael: you are watching "bloomberg best." i'm michael mckee. let's return to our roundup of the week's top business stories with a pledge from saudi arabia to significantly cut back its output of oil. >> saudi aramco is planning to make the deepest cut in oil supplies in november to reduce global inventories.
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they are cutting 516,000 barrels a day despite the fact demand is holding up pretty strong. i found this really interesting at a time when exports are increasing, and they are gaining market share. >> yeah, i think they are trying to keep that rhetoric stable. what opec has tried to do is to have predictability for the demand side of it. so they can control supply, but they cannot control demand. so they do this kind of action. it is really know about consolidating the trust that they think they have built up with the market over the last year or so. and they are showing they can act when they want to, they are willing to act when they want to, and that is why the price today is justified. jon: tensions between the u.s. and turkey are rising, both sides suspending visa services to citizens. this comes after turkish president erdogan arrested a person who works at a national consulate.
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the dispute is taking a toll on the lira as well as turkish stocks and bonds. >> late sunday evening, the u.s. announced it was suspending nonimmigrant u.s. visa services across turkey effective immediately. now, turkey released a similar statement, saying they were doing the same for american citizens. the reason behind this move is because, leslie, turkey arrested a turkish national who worked week, turkey arrested a turkish national who worked for the u.s. consul here in istanbul. turkey says he is allegedly involved in the coup attempt last year. >> they gave a brief remarks in kiev and the most interesting parts of that remarks is that he laid the blame on the u.s. ambassador, and not on the administration, which is perhaps his way of leaving the door open for some sort of reconciliation, direct president to president. mark a cofounder of two hedge
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: funds is planning to start two new funds according to bloomberg sources. why now? >> well, investors are leaving hedge funds. but some of the traders who in the fund have a track record. if they market their performance, maybe there is a high probability that some of those investors can invest with them, and this can arrest the decline. they have lost, they have now managed more than $12 billion, which is down from four years $40 billion ago. mark: what gives them the confidence to offer more products of the fund if they are not doing well? >> macro is making a comeback, maybe it is a small comeback. it seems that things are turning positive for these macro managers. >> billionaire activist investor
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bill ackman spoke exclusively with bloomberg on a wide range of topics. it is his ongoing battle with adp that is front and center. he is not point to settle for one board seat because he wants a mandate for change. >> not at this point. he said the board would have a change of heart to make a settlement. he said if they are willing to implement his plan and push through the changes he wants, maybe one would be enough. but as it stands right now, he sees no room for compromise. david: general electric has a new ceo and now a new director. ge boardn joined the yesterday, and nelson peltz has been pushing ge to get off it's profits up since acquiring a stake in 2015. as part of the announcement, mr. garden said he is disappointed about the recent performance of the ge stock, but he believes in the attractive long-term investment opportunity.
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is this basically conceding? >> at first, they said they have a good plan and we will lead you -- good plan and we are going to leave you alone. now, i think they are forcing their hand. also, another board member is leaving. the timing worked. but the stocks have been terrible. there was first euphoria, change of guard, then there was a -- this was a $15 billion company. it will be multiple years to get this thing reached. it has been restructured, what to turn cash flow and other things around. >> the continuing saga of uber's legal troubles. the company facing to a to additional criminal -- the company facing two additional criminal investigations. there are now five ongoing probes in the world's most valuable startup. >> quickly, we first have bribery. the rest are fancy acronyms. there is the legal fight with alpha and their self driving car.
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and how they obtain, and whether they obtain trade secrets there. we got sort of pricing. are -- and then ball. whether they received proprietary information unlawfully. we also have some pricing disputes. >> aside from brexit, prime minister theresa may is grappling with fallout over trade disputes across the atlantic. how will this end? this has turned a little bit ugly. this threatening jobs at the all fast -- at the belfast plant. what is the next threat? >> boeing are the king of corporate welfare in america. they are subsidy junkies, and this is the most egregious hypocrisy i have seen in international trade in many years. in they need to understand the
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way in which they are playing this does not sit well with u.k. parliamentarians. the way in which they sold at least back the planes to monarch airlines is something that i am now going to be referring to the e.u. commission to look at whether there is an anti-dumping case there. >> here is boeing's response. the case in the u.s. is about compliance with laws. they say that boeing complies despite recent rhetoric. regarding these proceedings, this case continues to focus on preserving a level playing field in the aerospace market. mark: ecb could be inching closer to making a long-awaited change. we are learning that central bank officials are considering cutting the monthly bond buying by at least half. starting in january. policymakers could reach an agreement on just how much debt that the central banks will buy at the ecb meeting. is there a need to stipulate a little end in september? is causing some division within
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the ecb? >> it is quite clear that a decision will be reached and it is quite clear that no matter 'hat the hawks or the doves opinions may be, everybody is an quite agreement, it seems, that they want to exit the program very gradually and very carefully. the report has shown is that this compromise might lead the program for nine months at the pace of 30 billion euros per month, which is half the pace of how it has been happening so far. ♪
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♪ >> this is the splc function supply chain. you can see shinzo corporation at the top, mitsubishi, toyota, general motors, nissan, honda, these extended to vehicles on the road. >> there are about 30,000 functions on the bloomberg, and we always enjoy showing you are favorites on bloomberg television. maybe it will become your favorites? here is another function you will find useful, quicgo. it will lead you to our quick takes, where you can get important context and insight into timely topics. here is a quick insight from this week. >> more maximum protection from
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polio. the second given not less than three weeks after the first. >> the minority of parents believe the most life-saving medical advancement in history is doing more harm than good. this group undermine progress against disease in europe and the u.s., and health officials worry about further setbacks. pres. trump: two years old, two and a half years old, a child went to have the vaccine and came back, and, a week later, got a tremendous fever, got very sick, now is autistic. >> here is the situation. the vaccine backlash took off in 1998 when a medical journal turned out to publish a fraudulent discussion linking it to autism. the journal retracted the study in 2010 and u.k. authority stripped its author of his medical license. but the idea still took hold. preventable diseases are on the rise again in the u.s. and europe. the u.s. was measles-free in
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2000. the number spy to 667 -- the and 2014.ked to 667 in 2014. however, it is worse in europe. whooping cough has remained at elevated levels since 2012. the choice not to vaccinate doesn't just affect individual children. because kids live in clusters, groups can lose their collective community. the pathogen dies out in that area. if communities lose it, those who can't be vaccinated for medical reasons or are too young, become susceptible to infection. so to those who were immunized because no vaccine is 100% effective. here is the argument. in the u.s., they have said vaccine requirements for school exemption. many states offer exemptions for parents who cite religious or personal beliefs. some public health specialists support eliminating these waivers, and in some cases, some courts have agreed. in a striking down a religious
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exemption, mississippi cited public interest in keeping children healthy. others worry that making vaccinations more compulsory for school attendance would harden the opposition. ♪ michael: that was just one of the many quick takes you can find on the bloomberg. you can also find them at, along with all the latest news and business analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i'm michael mckee. this is bloomberg. ♪ is this a phone?
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♪ david: when you told people you would raise a $100 billion fund, did they tell you you were crazy? masayoshi: some people said. david: did you suffer discrimination in japan? masayoshi: that made me stronger. david: how did you feel losing $70 billion of net worth? masayoshi: i was so close to fall down from the cliffs. we almost went bankrupt. . we almost went bankrupt. somehow, we survived. david: people would not recognize me if my tie was fixed. ♪ david: i don't consider myself a journalist.


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