tv Bloomberg Markets Bloomberg October 14, 2015 2:00pm-3:01pm EDT
1000 facing people. we let people out of the company. erik: if i compare bank of america to some of the other thes in the industry, comparison could still be more favorable. wells fargo has an efficiency ratio on interest expenses in a percentage in the order of six or 7% are you are in the order of 60. brian: there will be differences in business mixes. hours should be better and that will come. one of the issues is our income is compressed because of the thing we have to do a portfolio in the last few years. a second reason is we are still carrying 900 and a quarter of costs, legacy stuff.
it is the cost of doing great stuff and modifying mortgages. the others, as you shrunk the company and getting the stuff out, that takes time and we need to drive that down by 500 basis points by combination of revenue if we keep growing the balance sheet. then continue cost take-out. that is the goal. if we stay lower for longer, you think we could get the ratio in the 50's? brian: no, 60's. about half of that would be driven by cost management. we have said it is run at 900 and a quarter. we have got a plan to get it down to 500 p are not good enough to down a quarter there.
the corekey is on expense basis how you keep investing growth and not have your cost go up. that is incremental efficiency easy quarter after quarter, we 212 eight inseven court costs and we are able to keep it there for investments. product, improving our company. incremental ideas and any of them. can you do it without bringing down headcount further? brian: we are 60% people cost. .ou cannot save money there are not a lot of other costs to save money credit question is how to do that. we had to do that very quickly for a while. tohad 68,000 people down 12,000. another area is our retail system, six or seven years ago with more salespeople. is for 5000.
and someone's job comes up someone leaves for whatever reason, a lower attrition rate on 250,000 people. we basically said we need to replace the job. a lot of jobs you do a lot of jobs you don't. erik: what do you do with the economy slows again? brian: the u.s. economy is still running way below trend. we are seeing more card production, more mortgage production, so as long as we keep producing, we than kind of run and keep operating. he said, what was going on in the economy caused businesses to -- the strategy is really straightforward. number one in pick your product or number two across the board.
he keep driving across customers. just says, how many more financial advisors in merrill lynch. people look at bank of america and say this is a company that is supposed to be a leveraged bet on the u.s. economy and they see revenue not growing but shrinking at a time the u.s. is the fastest-growing economy in the industrialized world. what is wrong with the picture? brian: the issue is the rundown revenue have a lot to do with assets.d other we ran those down. that pretty much hit equilibrium. we see in spread revenue. spreading revenue has basically been flat. we had a one-time adjustment basically flat. that is starting to grind up.
of loans in the portfolio has grown to quarters in a row. can outgrows is we it. when we had $175 billion of credit loans, it was hard to outpace that growth. we probably hit the bottom and now we can grow that back because it can keep up with it. question, it happens a lot faster, but we still can drive the reverend r country despite good and hard work even in a low environment. four is you measure yourself, return on assets and your efficiency ratio. you want to get to 60. what is an acceptable are only for the bank? brian: we told people that at seven point five
come almost 3% ratio come we think 12%, a 1% return on assets divided by eight, that level gives you 12. we used to say 14. what happened was we had to change it pick up more equity. this quarter around 10. the cost to capitals probably anered and that is interesting philosophical debate. the reality is that we are at 10. with the work ahead of us, we have got to push that up. it is all linked together. the efficiency ratio, core revenue growth and if rates we should getaid, 12% over the next two years. if rates rise, we will get there faster. erik: great talking with you. david, i know you are back in new york city. i'm handing it to you. david: thank you so much. studio by here in michael moore and brian charles
who covers bank of america. thank you both for sticking around. let me ask you, about what he said at the top of the show. what we're seeing is the core earnings power is always there, starting at the beginning of his tenure. >> i believe him when he says it was always there and it was covered by so much noise and for a little while after the merrill lynch acquisition that was hard to detect. -- been a growing part of the story. it is now starting to manifest itself. i think there is a potential for growth but it would like to see how the bank will manage an interest rate environment if the rates stay low. they talk about the interesting drive. if they do not rise, he mentioned that margins and earnings should drive -- drive up. i wonder to what extent he is expecting rates to rise. portfolio, loan
portfolio, i wonder how he will manage different rate environments. few talk about how you would hope to hear more about stress tests and capital ratios. did he say anything newsworthy to you? >> not really on that aspect. on the efficiency ratio, that was interesting being half the growth and grinding of those expenses. it was more about that than the capital stress test. they set earlier today on the call that they are waiting on the fed. the fed has 75 days from the end of the quarter to rule on that. it is in the fed's court at this point. -- were youabout satisfied with what brian moynihan had to say about that? >> i think so. it is always a matter of judgment. he does not want to cut into bone. you just want to cut fat.
they will continue to save as that continues to run down and i see that. basically backing up what he said two years ago. areasset servicing issues behind them and i should be down to at least $500 million a quarter. it is good to see him back that up again. they can garner improvement from it. when all is said and done, i'm relatively satisfied with the way he is approaching cuts. >> you mentioned these core businesses. increasing productivity even more. i'm curious what more he could do and do you see more growth? it, he has had constraints. you talk about interest rates. this pointbeen to and going forward, he is somewhat constrained by the capital market environment. trading revenue is down and interest market was down again.
as much as they are doing things internally to try to move the ball forward, a lot of it depends on the broader market. >> he had the votes a couple of weeks back. people saying they want to strike them of the title. does that make a difference or liberate him in any way? >> to a certain extent. he has got confirmation he needs going into the vote and it removes the doubt in the market going into the vote. so yes, it is a nice boost for him. us arhaps you could give sense, he talked about his strategy going forward. is he making it any clearer what the strategy is going forward? >> this was clearer than i heard it in the past. it is fairly straightforward. largelym to be built around the u.s. economy. i think a lot of it is about simplifying the business. they bought so many things and got so many businesses before the crisis. i think they slimmed that down.
the problem is every bank similar in this way. if you do not have a lot of growth in the economy, they are kind of cannibalizing each other. we see a lot of competitive environment in a lot of areas. can they beat out at j.p. morgan , citigroup, and wells fargo? >> thank you. let's head to the markets desk or julie hyman has the latest. julie: we just heard from doug macmillan. a drop of six to 12%. going into fiscal 2017. this has had a very negative effect on the stock. really seeming to shock investors. of 9.5 percent right now and a closing basis. it is the worst one-day performance climbed back to 1998. it is really extraordinary and reflecting the shock and
surprise that is being felt on the part of some investors. you just heard her asking doug macmillan about her margins of the company. one of the reasons for the forecast is that walmart will spend more money on things like vivax and dividends and wages. also keeping prices low. i want to look at the bloomberg terminal gross margins versus target. it is something i have been walking -- watching here. gross margins are relatively low. lows margins are relatively because of the pressure that walmart puts on itself to keep the margins low. if you look at it at and you did market basis, it is more competitive because it brings operational expertise into play. investors ake gave look at its future. the company announcing a new enter at its investor day in oregon. it will start that lab there.
the company expects $50 billion in sales by 2020. stephanie ruhle is keeping busy, standing by to interview the ceo at the new york stock exchange. stephanie: welcome to bloomberg this afternoon and let's start by going global. nike has been killing it but we have got to look at china. this is a greece growth story for you but the headlines are negative about the chinese consumer. do you think we will see a slowdown? seeing it.t in china, the brand is incredibly strong in the market is good for us in terms of sports participation on the rise. it is a mobile he connected community digitally and that is good for us. the digital platform is actually doing quite well. over the last couple of years in china, it has proven to be initful for future growth
china. consumers want authentic rands and they are voting every day and nike is actually doing quite well. we expect the pipeline of innovation that we have coming and the work we have done to get the operational foundation set for years to come, it has put us in a great position in china. stephanie: since so many consumers love that nike brand, do you see yourself selling off those labels? >> know, we, i think the strength of our portfolio is the byersity we have by brandon category, gender, price points, channels. a good spectrum of brands. the brands are strong. converse. jordan and early, i think it has got potential as well. certainly nike. it is a great portfolio. for jordan potential
to expand the on the footprint they have today is tremendous. we are excited about that. we talked about that in the investment conference here. thehanie: let's talk about expansion plan. you are looking to take that brand, clearly iconic. outside basketball? >> actually, with limits product today, the opportunity is in expanding the product offering, diversifying the jordan product. training is a natural extension. i think a new position and running is it that extension. you can see that michigan is wearing a football uniform. we will see jordan showing up in multiple sports at michigan. that program we think will continue to grow and eve off. brand and has been
one-dimensional in the sense that it is largely footwear, largely male and us-based and we think the opportunity to give the consumer more choice in that brand, carefully, we have got to make sure we're doing it the right way, but we feel there is tremendous opportunity with jordan. you mentioned michigan. we have not had to pay top dollar for college teams traditionally print $159 million, is it just competition now? other brands are pushing the prices higher and is it worth all that money? i interviewed tom brady last night and i said, what do you think of nike again and he said, bad decision. >> there is a premium on the great sports marketing assets there. nike had a relationship with michigan and we feel it is a for us to notity only bring the best of nike and
jordan to michigan, but really grow the program and recognition around the great school. the athletes want nike and they that we have to bring. jordan is particularly attractive to the athletes as well. they are proud to be the first team wearing jordan. we are excited to deliver and i think you will see exciting things. are you prepared for the price war we are having in the competition in terms of maintaining or winning the team come on you talk about athletes last year that you really had to pay up for, or the step up from michigan, these are big numbers. you're not concerned this is almost a race to the top? >> we are competitive. we are incredibly proud of the roster of athletes and teams and relationships we have. i would not traded with anybody.
we know there is a premium attached to that. it is all in what we do with those properties. it is not just a real estate grab for putting more exposure for our brand out there. do to turn them into real innovation and that is a writing to us. stephanie: this will be a big deal. university of texas. like taxis so we will see. stay tuned. us an idea.ive >> i cannot really say. we have been talking. i am hopeful. it's talk about the innovation lab you mentioned earlier today. in beaverton, 135,000 lap or you will focus on 3-d printing. this is obviously super cool. you are a design guy. let's talk about selling sneakers and athletic apparel. you need to make a very expensive investment and get in
3-d printing to help your business move the needle when you need to? is super cool and it is big. another pillar of innovation for nike. the fact that we were actually have product creation and manufacturing revolutions taking place under one roof, exploring and expanding the work we have already done in 3-d printing for example, customization and moving to the market quicker and printing applications, knitting machines to really create the you'reof climate for me, right. we are innovation and all about product. this will turbocharge our already incredible innovation efforts. i am very excited about it. are you going to move your office into the middle of innovation lab and will i be able to come visit? be able to come visit and i'm happy to show you around. i will be in that space probably as i am today with
advanced r&d and the kitchen. i love spending time. stephanie: how about manufacturing? we have talked about bringing it back into the night states. some of your competitors are very focused on it. the last time we sat down, president obama was there. how about truly building and making your product here in a more significant way? committed to bringing u.s. manufacturing into the forefront. we think if ttp can pass, then we are hopeful it will, then we will accelerate our efforts around advanced manufacturing. it is in service of the consumer, giving them a better product faster with a more personalized product. this will help us accelerate those quite a bit and we are hopeful. to talk aboutant
digital. you mentioned it. you got out a year ago and we have seen fitbit go public and crush it. will you change your attitude? or strategy? >> no, it is one of the most important initiatives in nike. we are investing heavily and we see this as an accelerator and enabler. really from product relation to how consumers connect with the brand to how we service consumers around the world. every day, every minute of every day, everywhere around the world. big and we have scale that we want to be personal and nimble and digital is an enabler for that purity will see it in the product and new relationships that enable us to create a broader ecosystem of services, personal services and that will be accessed from one mobile point. youranie: the mean
relationship with apple? apple, yes. i'm excited by what we have done and what we're doing and what is in the works. we do not have anything to announce today. but partnerships in general. future potential to innovate, it will be largely based on the ability to make the right partnerships, to work with teams that are really good they are doing and add them to the teams we have two great things people cannot imagine. that is what excites me. given your relationship to apple, are you wearing an apple watch and do you consider that your wearable? >> i do. i wear an apple watch and a band and i will continue to do that. i'm excited about where the avalon just going to use priority for the company. we will see that grow and develop more and more and nike wants to be a part of it. before we go, we have
got to talk women. i am in my leisure gear all the time. but it is a competitive market. many start of rants are sold exclusively to women. where are you in that right now? what is your game plan? >> just to take a more macro view of that for a second, we see this as not a fitness trend for women that it short term like a fashion trend, but we see this as a lifestyle shift. for women around the world. we think active apparel and sport and performance-based active apparel will be here to stay for years to come. we are part of not only concert -- not only serving that consumer and that desire, but we are creating it. we are bullish on women in general. i will say we expect our women's business to double over the next five years. are incredibly bullish on where we are today and we have made great strides.
be one of thewill more important areas for the company over the next time of three to five years. do you thinkere women's growth will come from? you will be point businesses away from the like of adidas or under armour or, is it like h&m of bloomingdale's? >> i think we will take some market share of their. a lifestyle shift takes place in war countries around the world but also we will create a larger market at the same time. our goal is to gain share and actually expand the market at the same time. i feel really good about the performance products that we are creating. go, what isefore we your number one favorite nike product right now? >> oh, gosh, i love them all. the one. oh gosh. shoe, the soccer boot
that we have. it is incredible. inhink it is a game changer the world of soccer or global football as we call it. that to me is symbolic of the transformation us were through design. that is right up there for me. stephanie: i would have gone with socks. good day. congratulations. sorry we cannot be there in beaverton. we just launched "bloomberg ." we want you on set. mark: thanks. stephanie: congratulations. thanks, stephanie. a lot of these exclusive ceo interviews today. a quick check of the markets with julie. julie: let's check with walmart. steep decline after coming out with the forecast, disappointed investors it looks like the biggest drop in 17 years.
it has a ripple effect. at target, we are seeing declines today as well even though some analysts are saying these are walmart specific issues at least in part. some of the other discount and consumer staples retailers like costco and dollar tree and dollar general have been falling today although i did see, i know charles grahn, saying you should actually look at buying these stocks today on this particular weakness. a check on the averages. a bit of a mixed picture. on thetocks are falling s&p for every two that are rising. >> thank you. we will have more from doug, the ceo of walmart, in a minute. ♪
mark crumpton has the news. the european union is taking members to task, saying they failed to produce promised funds to address the continent's refugee crisis. havethree of 28 nations pledged a total of $13.7 million to a fund to help african nations better manage their borders. there is also a big shortage of officials to fingerprint new arrivals and help decide if they are eligible for asylum. says theiated press death toll from the stampede exceedshe last month the official number. over 1600 worshipers died during the religious pilgrimage. the saudi's put the death toll at 769. security measures to stem palestinian attacks include
giving a local authorities permission to close off local neighborhoods in jerusalem. seven israelis have been killed in shooting this month. the palestinian authority released a statement warning what it called a deterioration of the security situation. in the russian relationship with nato and the u.s.. hacked, the new york congress and the u.s. congress. bernie sanders was the most repeated candidate in last night's presidential debate. sanders was the subject of 41% of debate talk on its social media site. sanders most tweeted message -- senator sanders: that may say something that might not be great politics, but i think the secretary is right, and that is that the american people are sick and tired of hearing about your damn e-mails. mrs. clinton: thank you.
me, too. me, too. [laughter] senator sanders: enough of the e-mails. let's talk about the real issues facing america. mark: hillary clinton was second with 39% of twitter's debate conversation. we will have more on the presidential debate coming up in just a few minutes. that is a look at the first word news right now. you can always find the latest news on bloomberg.com. david, back to you. david: thank you, mark. let's look at movers and the commodities market as prices settled in the new york trade. gold touches a three-month high on further signs of tame global claimion, weakening the of inflation. nymex crude is at a one-week load -- low. this is the refrain for many oil and gas companies -- everything must go. it is no secret they face continued challenges from the commodities route. averaging $51 a
barrel, some in the industry think asset sales will continue through 2016. tina davis joins us now. talk to me a bit about what is force-out. what is on the block? tina: everything that cost a lot of money to produce. everything that is not in the sweet spot -- with low oil and gas prices, everyone is selling the more expensive things they have on offer. david: everything and anything around the world, or confined to certain regions? -- tina: it isg everything. seen two producers in areas with higher costs. you are seeing people try to take advantage of struggles people are going through right now. david: there is an article on the terminal about how many assets are for sale. pace you are seen at the of sales have increased since
last year. everyone was thinking the oil price collapse might not last for long, but reality is starting to set in and they see the reality take the form of for-sale signs. david: when you look at this with historical breath, how synonymous is this -- do we have the yuan that it is time to get rid of assets like these? tina: everyone wants to finance an oil company when oil prices are over $100 a barrel. it is harder when they are half the price. it is part of the overall cycle we have seen. the commodities on a broader extent. it is the family time for sellers to get rid of anything they cannot make a lot of money on quickly. david: are sellers doing this quickly? tina: eventually, they will start selling the things that are valuable to them and you see the distressed companies that
are taken on a lot of debt and have traditionally been negative cash flow, they will have to start selling out entirely, and .e have written previously they may offer shares and by people out while in distress. david: you mentioned exxon mobil. who else is looking to buy? basically anyone that can finance themselves. a lot of these producers exist for a long time with negative cash flows. they do not have a lot of extra financing to throw around. down, negative cash flow is not going to be viewed very nicely by the market. majors, also, obviously, through the foreign, nationally owned oil companies, they will be eager to snap of assets. david: lastly, how long does it last -- how long will the market be good for buyers? tina: when you tell me when oil is back at $100, we will be able
to say with some certainty. david: i was going to go to you with that. thank you for your time. tina davis. coming up in the next 20 minutes of the bloomberg market day, walmart shares are plunging us of the retailer said its profit could fall as much as 12% next year. we will hear more from walmart ceo doug macmillan. hillary clinton came out strong in last night's democratic debate, the first of the 2016 campaign, but the former has many hurdles ahead of her. we will hear from a former senior adviser to her campaign. continuesr's new ceo to shake things up. this morning jack dorsey picked googleeo, and he is a veteran. we will tell you what you need to know. ♪
david: welcome back to the bloomberg market day. i am david gura. it is time for the bloomberg business flash -- a look at the biggest stories in the news. the bond market growing more skeptical that the fed will raise interest rates soon. trader bets have fallen to less than a one in three chance. the probability for march has now fallen to about 50%. has fired itsoup first indonesia-based dealmaker after he was sanctioned for insider trading. the managing director agreed to pay a civil penalty of one thread of $100,000 without court action to the monetary authority of singapore. 2012.urred in carlisle is said to have been unaware lewis was under probe. here is something off the menu
at danny meyer's restaurant -- "the new york times" says all 13 establishments including the union square cafe and gramercy tavern in new york will eliminate the practice. covey says it is part of a sweeping change in how employees are -- the company says it is part of a sweeping change in how employees are rewarded. you can always get more business news at bloomberg.com. back to the markets desk, where julie hyman has the latest on a day with a lot of earnings reports here it julie: -- reports. julie: yes, a lot of earnings reports, but that does not seem to be moving the market on a macro basis. overall, we see declines across the board. we have worse than estimated economic signs, and that seems to be putting pressure on thanks -- retail sales and wholesale inflation data coming in worse than estimated. we arestocks down, and
also seeing once again that there is a lower likelihood of the fed will raise rates. take a look at my bloomberg terminal. we're looking at interest rate futures here through this chart, and just seeing the declining chances of increases at the following meetings. december, 2015, that chance has gone down to less than 30% at this point. arearch, 2016, the chances priced in at about 37% likelihood of an increase. in march, it is just dipping -- 49.9%, excuse me, you can see the likelihood go down and down as we get more economic data. if you look at the 10-year as well, we see the biggest gain in price thus far this month. that means once again, look at that -- below 2% on the 10-year note, again reflecting the perception the federal remain on hold for longer.
the dollar seeing similar action. it is falling to a seven-week basket --.8% verse a versus a basket of currency. gold is going in the opposite direction, as you might expect here with the idea that the fed is not raising rates. david: julie, thank you very much and julie hyman at the markets desk. let's look at biggest mover -- the biggest equity mover -- that is walmart. shares are suffering the worst decline in 17 years after the retailer announced profits will drop as much as 12% in the next year. and hour, stephanie ruhle david westin spoke with doug macmillan and stephanie asked why wall street should own walmart stock. mr. mcmillan: we started to announce wage investment and they are big numbers. we started -- raise our starting rate -- starting wage rate to nine dollars, and extra we will be at $10, and that is a big
pressure point. what we did today was described how we're going to win in the future, how we win bringing it all together. -- if ie: three years am investing today, why do i want to do something where it will take three years to get a payoff? mr. mcmillan: next year is where the pressure is. we have to get this position to serve customers in the longer term. we are building a technology company with an walmart, creating an additional company with the additions we have. w.: were you surprised at the reaction? mr. mcmillon: not really. question would be was the math in the multiple, and time will tell, but it was information that was out there. stephanie: if next year is a
pressure point, why would i buy your stock today? why wouldn't i wait and see how you do on this improvement plan? david: we announced a $20 billion share repurchase --mcmillon: we announced a $20 billion share repurchase plan. we believe our stock price. david: that was stephanie ruhle and david westin speaking with walmart ceo doug macmillan at the new york stock exchange. turning to politics, a big test for hillary clinton and her performance has earned her a lot of praise. she has a lot of momentum as she faces her next test. she is scheduled to testify before a congressional panel next thursday about her private e-mail server, and the assist from kandi bernie sanders that not heard. lewis, me now is ann former senior adviser to hillary clinton. we have the infamous remark from senator sanders. and we moved on, or a way past that now, do you think?
hope wehink people moved on. what you see from the response i'm seen in the press, tweets, facebook pages, yes, it is over -- can we start talking about the issues that we care about, stop talking about e-mails? let's talk about the middle class and growing middle-class wages, our children going to college, and will be need to do to afford those college bills. those are the kinds of issues hillary wants to talk about, that she has been hearing from people on the campaign trail, and i very much hope, as i know she very much helps, but after tonight we can get on with the issues the campaign should be about. david: i was watching the debate and i heard bernie sanders saying a lot of what you said -- he seemed to be speaking the most about the problems facing the middle class, the shrieking middle class. has she done enough to address that last night and on the campaign trail this far? lot more to say.
if you listen to her for any length of time you can hear talk about how to grow middle-class wages, making investments in its structure, clean energy, scientific and medical research. those are the investments that grow the private sector. what is it we can do to support small business? how can we work with small business to get access to capital? community banks -- how do we help them expand markets? hillary's dad was a small businessman. she is very conscious of that. if we can grow middle-class wages, supporting small businesses, and then how do we reduce the costs squeezing middle-class families like college costs, drug cost -- she has plans for everyone of those. she has ideas on how to pay for those, how to put them into action. the more she campaigns, the more people hear from her, that is what they're going to know. important me ask how
debates like last night are to hillary clinton. she has released a lot of plans for regulating wall street. it is the debate the best format to introduce the plans to an audience? last night she was able to get at some of that. there was talk about foreign policy, the e-mails. is she able to make the case of the policies she wants to get out? ann: what a debate enables you to do is reach the largest possible audience, so you will not have as much specificity on any single issue, but we are now hearing 15 million people, perhaps, watched last night's debate, more than you will get in any hall for a speech. it gives you a chance to talk to millions and millions of people and say here the issues that i care about and what people heard from hillary clinton is someone ideals, smart, solid, who is passionate about making a difference, and, again, thanks about, cares about the families she has been meeting. by the way, she can be funny,
too. she has a sense of humor. that comes through in the debate. that is why people tune in. they know it is a chance to see the candidates for themselves. to make up their own decision about candidates -- there is not if you willcreen, excuse me, david. so many interviews involve short clips, a few seconds at a time. here, people get to talk to -- excuse me, not talk to, but here from the candidates in candid, unscripted ways for much longer. it is very important. david: let's play one of those clips. you had the two main candidates talking about capitalism -- really defining capitalism. let's hear what hillary had to say. mrs. clinton: i plan would have the potential of actually sending the executives to jail. nobody went to jail after 100 billion dollars in fines were paid and would give regulators the authority to go after the big banks, i'm telling you, i
will say tonight, if only you look of the big banks, you might be missing the forest for the trees. we have to look at all financial institutions. senator sanders: i will get to you in a second. in my view, secretary clinton, congress does not regulate wall street. wall street regulates congress, and we have to break up these banks. moment, i think both of you will agree, for both of the candidates. bernie sanders getting the one-liner in at the end, and hillary clinton making a strong point about regulation. ann: i think that is what people heard. world.in a new we have new kinds of institutions, a shadow banking system -- we have a lot more work to do. that is why as she talked about what it is going to take to keep financial reform going, we have to hold on and strengthen, for example, dodd frank, add to the
regulations that we need. i have to declare a conflict of that my, perhaps, brother is barney frank, so i think dodd frank is a terrific bill and i am glad she is supporting it, but you have to go like bernie, like gary gensler, who had a great career on wall street, went to work for the comedy's future commission, and they understand the markets, how the financial system -- commodities future commission, and they understand how the markets work, how the financial system works, not imposing old rules that are outdated, but here's a way to move forward so americans can be sure they have trust in the financial system. wis.d: that is ann le i want to note joe biden was not at the debate last night, but he did say to margaret talbot this morning that he was proud of how the candidates performed and they all did well. one day after announcing job
david: welcome back to the bloomberg market day. i am david gura. more headlines from twitter today -- the company announced it named omid kordestani from google as its executive chairman. ceo jack dorsey said he will help me in our leadership and help recruit the best folks to twitter. emily chang joins me from san francisco. he is the 11th employee of google, a guy google has to be sad to see go, emily? emily: he actually left in 2009 and came back. he is a close confidant of larry page.
larry page one said there is nothing about google that omid kordestani does not know. he was a guy that google's business, the sales force and the ad team that turned google into a massive organization. he has nurtured people like sheryl sandberg, for example. this is good news for jack dorsey in that omid kordestani brings in deep business chops. he will help them with strategy, recruiting, which is key. jack dorsey followed up in a tweet saying a great chairperson is the first step toward making our board one of the best in the world and purpose-built to serve twitter. of course, jack dorsey will be doing two jobs -- ceo of twitter and ceo of squared, and he will need a lot of help. it is interesting, omid kordestani has not tweeted very much. knocklly that would be a against him. he announced he would be joining twitter in his ninth tweak ever, but the other way you could look at it, he is the casual person
they are trying to reach, trying to reach people in the mainstream. david: have we heard much from jack dorsey? do have a good sense of what he wants the board to look like? what does he hope the board will look like versus what it has looked like? i think he wants people that understand the product. i mean, this is a board that has been very embattled from the beginning. there has been a lot of turnover on the board. i think he wants a board that is going to support him. he was kicked out as ceo of twitter back in the day. the same thing then happened to evan williams, the other cofounder of twitter, and then, .f course, dick costolo it reminds me of what steve jobs did when he came back to apple in the late-19 90's. he basically change the entire board. he will want a lot of people that are seasoned and could give him the executive coaching that he really needs. david: finally, we were talking about the problems twitter faces
-- the mom phenomenon, someone gets on twitter and gets all fast. when you look at what he has done from google, are there analogs to correct problems like that? emily: it is interesting. omid kordestani is not necessarily a product guy. we have been speaking to sources about him. he does not necessarily bring consumer product chops, but he brings deep business expertise. he can help jack dorsey, and help coach him into a grown-up ceo. jack dorsey, as he says, has a lot to learn. david: emily, thank you much. that is emily chang of "bloomberg west, which you can watch later today. elman.e josh ♪
welcome to the bloomberg market day. from bloomberg world headquarters here in new york, good afternoon. i am betty liu. here is what we are watching this hour. walmart gets whacked as a surprised profit earning shot -- stuns investors. can the retail giant find new areas of growth? markets see red on the back of walmart and the poor retail sales numbers that came out this morning, however the lack -- the lackluster numbers are boosting bonds, and that's the fed will hold off interest rates raising. benefitingcandal other carmakers like general motors? we are one hour from the close of trading now. i want to head straight to the markets desk where bloomberg's julie n