tv Bloomberg Best Bloomberg November 22, 2015 1:00pm-2:01pm EST
♪ erik: coming up on bloomberg best, the stories that shape the world of business around the world. the paris terror attacks changed the questions around global security. our coverage offered significant answers. >> this is the shape of things to come -- hitting soft targets and places that cannot be defended. erik: two retailers join forces and analysts say that things are looking up. and the outlook is not looking bright for casinos. we get a legendary oilman's thoughts on a slumping market. >> i feel like a guy who fell off a 10 story building and
who went by the fifth floor and said so far so good. erik: all this and much more on "bloomberg best." ♪ hello, i'm erik schatzker. welcome to "bloomberg best," a week and look at the most important business news, and interviews from bloomberg television around the world. they reverberations from last friday's terror attacks in paris were felt all week long. bloomberg reporters are on the scene in paris and across the globe as the story develops. a major concern in the wake of the attacks has been security. we are getting idea who have -- may have been involved in how they got into the country could where they born in france or belgium?e they from i think that will have a beer
big bearing on what will .appen politically >> why couldn't french security stop the attacks on happening>>? >> one of the guys was under aurt supervision and they had warrant out for his a vested the guy under court supervision they lost effectively. there are so many radicalize young men and women who could content shall he be coming back from syria, making it impossible to track all this. i think it is a legitimate question that needs to be asked. the french resources really matchup to the scale of the task in front of them? that comes back to the political story -- how our politicians going to square that story i had the elections that take place regionally next month? that i wasvidual just discussing was under surveillance. he was one of the five attackers that much authorities have identified. he was under surveillance starting in 2012. he obviously split that net.
foreignthe chair of the affairs committee and her response was that they have over 700,000 potential people they need to monitor. there just aren't the resources to monitor every one of these people. she did talk about having a longer databased that has a longer shelf life. it is wiped after one year, but it will continue to track people that could potentially travel to syria. >> william cowan joins us now from washington. >> this is the shape of things to come -- hitting soft targets, places that cannot be defended, weaknesses in our intelligence and defense policies being exploited. we can expect more will come in europe and even the united states. it will be tougher in the united states for them to penetrate it, but it will not be impossible. we have to have a very long-range strategy and work very closely with our allies. here i would add russia. erik: michael chertoff is the
former secretary of the department of home insecurity and he joins us from washington. of whether this is another one of a lot of attempts that have been foiled or is this different? is is a different one or just another that happen to make it through? >> this is actually relatively sophisticated. it reminds me of the mumbai attack back in 2008 where you had multiple active guns around the city. ability to do cross-border planning and sophistication, which we have not seen much of lately. it is alarming. if you put next to what we saw with respect to the airliner being down and the bonds in beirut, it suggests that isis is now working on a pretty robust outside the area of its immediate operations to carry out terrorist attacks. i think we're going to see more these. >> one-off attacks might not have global impacts on business
oftentimesomy, but they are recording tools for bigger organizations like isis. is that what we could see happen here? >> i think that is exactly right. toelevate their brand is have worst terrorist of around. >> brendan greeley is in paris and he joins us now live. the state of emergency that has been imposed. president francois hollande is seeking to change some of the laws governing the state of emergency. tell us how those would impact the search right now. >> what you have right now is a state of emergency that allows searches without a warrant and approval from a judge. what he is looking to do is something that was proposed my the last government, the father nicolasvernment of mccolliste
sarkozy, combining a state of siege and a state of emergency. fight extended powers to what he calls a new kind of war. what you have seen tonight's news of small acts encourage all over the city. parisians have agreed to defiantly sit and cafes tonight -- exactly what they were doing on friday night when the attacks began. you are seeing effects on commerce. people are going to work. it is funny of traffic around me. you heard and amulets moving by. larger events have been canceled. sony and airbnb have all canceled events in the city. we are just beginning to understand the longer-term effects that these attacks will have on the economy. us.auline neville joins she joins us now on set. >> the french government declared in the parliament agreed to a three-month state of emergency. i think two things probably are
happening. go afterat they will all the people when they have uncovered the evidence that plotted the conspiracy and outreach that we are seeing place. given that the law is now relaxed about the way in which police can go off to people, they will seek to clean up so we will see a rest of a large number of other suspects or people who have been involved in conspiracies. they have not been able to pursue them or haven't got the evidence. they will not take them into custody. yesterday we got these statements that france was going to use european law and the european corporations. it did not european military action, but might more european intelligence being shared. you can always increase your level of intelligence sharing. i think the level of
welcome back to "bloomberg best." i'm erik schatzker. financial systems, political alliances, humanitarian concerns it to are brought in t focus this week as the nation responded to harass terror attack. it sparked a conversation on bloomberg television and spark a change for the meeting of world leaders in turkey. >> yesterday was almost entirely consumed by what happened in paris and the conversations about terrorism, syria, the migration crisis. it was actually the official agenda for the leaders dinner last night. does that mean that the world leaders were distracted from the normal bread and butter issues that they discuss? no, it does not. it is a question i put to the canadian prime minister. have a listen. >> the events in paris are on
everyone's mind. how we continue to work forward across theerstanding g 20 nations is going to be an important discussion that we will continue to have. >> we just had the russian president meeting with the british prime minister. you know how acrimonious relationship has been between ukraine and russia before, but a real change perhaps in the tone of the relationship with the british prime minister saying the two countries need to work together. their thinking for intelligence that britain provided after the russian jet exploded in the skies of the sinai peninsula. it shows you a couple of things -- one how the russian president has gone from pariah to player at the g-20 last year. he had lunch by himself and he cannot meet with anyone. it also shows you how irrespective of their differences, we are seeing leaders come together to work on terrorism despite the fact that the g-20 is nowhere where they discussed economic issues.
>> the major concern is that we end up delivering what the terrorists want, which is we end up slowing down our economy by overreacting. the next thing we know, we triggered a series of tipping points. we have to be really careful of how we respond to this crisis. for example, let me take an extreme. down the french economy completely because they are so worried about any event, what is good to happen? trade collapses. tourism collapses. the french are worse off. >> nobody is proposing doing that. what we are seeing is a long overdue crackdown on the thousands of supervisors -- sympathizers of the islamic state inside prints. the financial markets do not always get the future record what we have is a threefold crisis and a massive escalation of conflict in the middle east, right next door to africa, which is right next door to europe. secondly, a massive influx of people in the millions moseley
heading for northern europe, some of them are probably terrorist sympathizers, and emergence of a fifth column of supporters of extremists. >> this is a critical point. if francois hollande become more anglo-saxon off of your book civilization, did they become more anglo-saxon? >> i would like to see the united states get a little more french. the french have been eager to intervene effectively against the islamic state. it has exited in britain and the united states that have been holding back. i think we need to get more french. the french were highly effective against al qaeda in mali. the have the right attitude, which is that you have to smash these people. they have to get after it domestically. the french and the belgians have been slow on the uptake. very sterling blame president obama and his lack of action on
what caused these terrorist attacks. is logistic to say that in his presidency barack obama has made no bigger mistake than over syria. inis the one who held back 2013. he driven line and it blinked and it turned into a pink dotted line. he had responsibility for chemical weapons to the russians. he has let the russians back into the middle east with more of that in the region since the 1970's. this has been the biggest mistake of his presidency. it has cost more human life than bush's intervention in iraq. it has been a bigger disaster than bush's intervention in iraq. both mistakes, but two sides of the same coin a bungled for an american policy. >> the security pact is more important than the stability pact -- the words of francois hollande yesterday. he is prepared to sacrifice deficit reduction in the name of national security. were reinforced by the prime minister this morning,
saying that france will breach the european budget rules that demand a 3% of gdp cap on deficits. i want to bring in the bloomberg team now to get the latest from brussels and paris. hans nichols is first and guy johnson in paris. you look at this line coming out of paris in the last 24 hours and you wonder what takes precedence and importance in the hierarchy of issues for the government. at thes like security sacrifice of financial stability. is that the direction that france has an and the rest of europe -- heads in and the rest of europe? >> it is very clear a number of countries will go down that road. i think you have answer when it comes to france already. the number was meant to be 3.3 next year. it is meant to be 2.7 after that. the president and prime minister and making it very clear at this stage that those numbers will not be hit. the numbers they intend to hit though are more police. 1000 new customs and 2000 more prison guards. some would argue that europe
needs a fiscal impetus at the moment. maybe this is one way of actually achieving that. you could argue that you get to for the-- two pe price of one. you get a boost to the economy that needs it and a boost to security that it ultimately needs. paris,in for those in but not those in brussels. >> hans nichols in brussels. you listen to the debate on security spending. let's be clear. france is not singling that they will throw in the towel, but on security spending, how is brussels and how does the eu accommodate what the french want to do here? >> that have the means to accommodate. whether or not they have the will or the sympathy, we will not know. we will hear from the eu deputy commissioner in charge of budgetary matters.
you can listen to what he had to say about the refugee crisis especially in greece, saying potentially it was an extraordinary event. all right as that can trigger the suspension of those eu budget stability pact rules. that is one side of the question. i was just over at the commission and i saw a bunch of generals come in. the eu defense ministers are meeting in brussels today. for so long, that conversation has been on the other organization in brussels. there is a criticism that nato countries are not spending their gdp on defense. that has usually been the criticism lobbed from the u.s. and the u.k.. yeyou have those two sides of the story. >> in the wake of the paris attacks, 20 governors have announced their opposition to the wave of syrian refugees to the u.s.. joining us now is the president of the international refugee committee, who believes that it is the u.s.'s duty to help those in need. the firstis
consideration that sits alongside any determination of entering the refugees. refugee resettlement has been a success story because there are security vetting processes in place that involve the fbi and department of homeland security. over 12 different government agencies. the reason that this country has such an incredible history of refugees coming in and becoming business and political leaders of this country speaks not just to the humanity of this country but also the competence in running effective security systems. the suggestion that we can substitute the word terrorist for the work refugee is really right wrong. the truth is that there are effective systems and place. america is insulated an extraordinary way by the benefit of the art of you from the externa convulsions in the middle east. it would be a terrible sadness, i think, if one of the consequences of the paris attacks was for america to close down. after all, this is a country that can show the world how to bring in refugees.
company and we spoke to people on both sides. >> the hotel world is buzzing today on the news that marriott and starwood are going to be coming together. let us had to stephanie ruhle and she has the ceo of starwood capital with her. take it away. >> who better to opine on the subject? you started the starwood hotel business. what do you make of this deal? it is like watching your child grow up. >> and disappear. i think it's an interesting merger for both copies. i think the stock was overvalued. i had a lot of calls from hedge fund friends of mine. i think it's a smart transaction for them because they used stock and a job training on low multiple timeshare business. there were enormous
interest in a trade to a play. i thought both initially, but interest play their down. i think it's good for starwood. i think the world is going to sway and skill. while i hate to see the company not be around anymore, i also did not want to see them flounder. you want to see a kid grow up and find a good partner and get married. lots of low grand babies. arnie has done amazing job at the company. marriott shares are up this morning following the starwood deal announcement. that starwood hired bizarre, you are not interested. what change your mind? >> we got a data room and we chat to study the company. it looked like it could be both expensive. it was just a huge bit of work. >> that is something you definitely would want to buy --
expensive and too much work. >> initially we pulled away from it. our stocks moved in our favor by 15%. so the economics of the deal became meaning we -- meaningfully marchex appeared and you think about online travel agencies acquiring other companies like google making hotel reservations. you think about alibaba and companiesall these investing money in the travel business. with up by being bigger that we would not have the support as utilities like systems and we could spend hundreds of millions of dollars more on consumer facing technology and other entire relations. >> the thing that appears to be the growth opportunity is airbnb and growth platforms like it.
why would you want to make a move staying in the traditional universe, which seems to have lost its group is little bit. ? >> the product that we offer is a great product. there are still a vast majority of travelers who will stay in a hotel as opposed to take the uncertainty of staying in someone's apartment. we think that will be the case for many years to come. > gnc global has agreed to by cable and a pound deal. there will be a share of dividends when the deal closes. subject, i'm pleased to say that we are now joined by the ceo phil bentley. he joins us for an exclusive interview today. also joined us on set. welcome both of you to the program. congratulations on the deal then. are you least at the price that you have managed to achieve? have you always wanted this kind of price?
the dda. 12.3 times we joined forces with liberty global, which is the largest international cable play and the world. they bring a lot of content to us and they bring skill to us. i think it will be good for our people. they can develop more in the region. it's also good for our u.k. shareholders as well. the market capn go to 3.6 on the back of this deal. >> you have talked in the release about liberty global being outstanding for the business. does this sound like a deal for keeps? >> i think they take care of their business. i think they share a lot of the usedsophy that i have which is enjoy the work that you do and be passionate about your customers and investment technology and content. >> retail giant walmart
releasing the third-quarter results with stronger the expected earnings. for a brandod news that has seen its shares plunge. the person whois covers walmart and retail for bloomberg. what was behind these better numbers? >> for one, nothing that happened. we have seen disappointing results and expectations coming out of walmart as far as the forecast and earning guidance. there was maybe a sigh of relief from investors that maybe it was a normal quarter. they beat by a penny the same store comps. sales are growing. it is not great. it's not amazing. when you look these other retailers like julie was just talking about, as we have seen with macy's and nordstrom, these are ugly numbers coming out. walmart failed to say that things are little bit better than expected. we have growth going ok. that was enough to give
investors a little bit of confidence in the stock. >> easyjet has posted a record for your profit in a boost of summer ticket sales, more than made up for disruptions earlier. joining us now is carolyn mccall , the ceo of easyjet. thank you. can you give us more detail around your guidance. ? you still don't want to steer the market and adjustably different direction, but you look positively at the long-term outlook. >> i think that's absolutely right. are very good and brilliant to the people at easyjet. that are also for our customers. and driven by non-revenue. ticket prices are down your on your. non-safee up of
>> indeed, the declines have been going on or some time now. october, another month of decline. the 17th straight month of decline. not a huge surprise to know that it will continue into next year, especially because factors remain that are causing the decline. the chief executive came in at $25 billion. next year. this year, in the first 10 months already we took $24.5 billion of revenue in the cow. -- macau. as you can see, definitely a drop coming up next year. the chief executive says that they will take a closer look at several issues and the next few years which could affect what further casino companies are taking them. if it drops to $25 billion that would be the lowest since 2010. that's really a fair drop. the factors causing it is the continuing crackdown on excess and consumption in china and the slowing economy. a big factor there. those are not going away. we will see this continuing. downturn in macau. ♪
will begin around up of the week's best interviews at the robin hood investment conference in new york. stephanie said, keeping pickens. stephanie: we have to start with oil prices. the last time that we sat down you said by the end of the year we would be looking at 70. santa claus is knocking at our door and that is not what oil prices are. >> this is not the end of the year. stephanie: so in the month of december, you think we will see a huge recovery? >> i feel a little bit like the guy who fell off of a 10 story building. when he went by the fifth floor, he said so far so good. the other guy that fell at the same time said i am not dead yet. ok. that is where i am. trying to make a joke out of maybe a bad call. if i am off, i may be off by six months. stephanie: can you hold tight until then or are you willing to and say that this is a bad call and i'm going to sell or are you
going to hold tight? >> we have reduced positions. we are in a mode where we still have power. we are out of the market right now. stephanie: hold on. you are on the market right now. erik: meaning what exactly? no exposure to oil prices. >> wti. erik: if people see is selling as they did in some cases from your investment vehicle. should they interpret that as capitulation or something different? >> i had it right. we shorted at $98 and then we had it wrong. we believe that we saw the bottom. we did not see the bottom. we went back in and took losses and now we are outweighing that's waiting for niche report
again. >> the recovery. that is the view of the executive board member and i spoke to him exclusively at a central bank headquarter and frankfurt. >> you could turn the argument the other way. i think what we communicate is our view of economic conditions in general and where he clearly said that risk would increase. you communicate that and then you get the reaction which is the telling of your assessment of the situation. markets do the reasoning. who leads to? -- who? i would turn the argument the other way. of course, their own analysis about the situation. i think the market behavior is also reading about the mandate of the central bank. the reaction function and the assessment of the situation.
i would not say that -- people say financial dominance of -- or central banking dominance. i think we communicated our assessment and our reaction function. nor the assessment, we also said, would have to be done in december. a thorough assessment based on projections. basis of the recent resolution. also, any assessment you look at the flaw of data. the flow of data. you also have to look at how this whole adjustment to the ce sheet, this long adjustment process, how is it happening? where are you in this adjustment? i think there you have to absolutely make sure that you -- your inflation expectations remain anchored, because that
would complicate dramatically if markets would revise structuring. downwards in long-term expectations. a balance sheet concession, when you revise the markets, households and corporations revise long-term expectations in terms of nominal growth. we have the inflation will -- , it complicates the whole balance sheet adjustment process. that is clear. >> in china, you have been in that country for over 100 years, i imagine you will be there in the long run. which areas would be pushing aggressively into? >> we will stay focused on infrastructure because we know that there is important needs for that to be served in china. we will also focus on working with chinese companies outside of china.
asian infrastructure investment bank, these initiatives are important to china, important to chinese company, and frankly they will be important to companies like ge as work with our chinese partners to help make this a reality in 50 or 60 countries around the world which are touched by the initiative. >> we will likely get an update. the war against dilution. -- dilution. you're in a fairly unique situation. you have a unique perspective. we know the headlines. what are they actually doing? >> they are doing a lot. from a standing start 10 years ago, they have the world's largest wind industry and they have invested in renewables. yes, there is still the need for coal and coal-powered generation, because it is impossible for china in the short-term to avoid that. in the long run, i see a lot of focus on environmentally responsible -- >> how quickly will he be able to shift the energy? that is really key.
>> it will take a while. i don't think anybody in china is confused about the need to and waterir quality quality. how much they can do over what span of time is the operative question. >> they took a big steak and -- in lyft earlier this year, what kind of investor has he been and how active has he been? >> it's good. i saw him last week. the idea was that we had approached them. they have been disciplined investors and they make good noise about the truth behind our business, which is what we want to tell people about today. about the 40% share in san francisco. the $1 billion runway. this is a massive opportunity. lyft is growing faster than any other player in the u.s. we are taking share because of that. >> cases where the u.s. is not directly hit, but where american interests are implicated, what is the jeb bush doctrine for when and how you commit american troops on the ground overseas? >> you have to have a compelling national security interest.
in the case of islamic terrorism, we have it. this is a unique circumstance, not seen before in history where you have a caliphate that has been formed whose energy is maintained and strengthens by its existence and its ability to provoke acts of terror around the world israel. it's real. i think this is a direct threat to our national security interests. >> you said you want to declare war against isis -- >> they have declared war on us. ♪
♪ erik: welcome back. i'm erik schatzker. my colleague emily chang interviewed two of the most intriguing and influential figures in tech this week. first, linkdin founder reid hoffman. he is not the newer has become a venture capitalist. he invests in both airbnb and facebook. emily put the question to him simply -- are we in a tech double? >> in some ways we are in a bubble, in some ways we are not. what is key is that it tends to be a private market bubble and the private market bubble does not have as much public market impact, so i think that it is
not something that when you hearken back to 2000-2001, you worry about quite as much. emily: we are in a bubble in the private market but not the public market? >> a quasi-bubble. emily: i talked your colleague who said something similar, and someone else that we are headed toward catastrophic events. mark andreessen also says that we are in a long-term best. tech is undervalued. why is there such a diversity of opinion? >> the question comes down to --how much do you believe that new things will be invented that will be solutions to the problems that are not invented yet? inherently, you could build companies from essentially an idea to something really globally relevant and three years or four years or five years. you look at uber or airbnb or dropbox or these new companies and they can move very fast to global relevance. and they can be important to affect all industries. that is the case that says we will create more of those.
it will be part of the solution not the problem. that is should focus on. on the other hand, a lot of investors are betting on this very broadly so you get valuations we look at a specific valuation and you go why it is that way and the answer is people are not really distinguishing very sharply between which companies really benefit from a globalized network age and which companies do not. that is the key issue where it breaks between the bulls on the bears. emily: this is my question. i will push a little bit. is it really subjective whether or not we are in a bubble? 1999, no one would dispute, in retrospect. >> no one ever disputes bubbles
in retrospect. that is not actually the test. clearly, that was artificially inflated and had a wee -- redirection -- recorrection. i think the question comes down to -- some of these valuations are high especially on the private market side. you can pinpoint specific companies which i will not do because i think it is impolite. to say that one seems a little crazy. you can see things where private valuations have been much higher than when companies go public. but that means the public market is not being as affected as much. you get those kind of things where you say look, there is clearly some elements of a private bubble. however, the key thing comes down to i think we will see more of these companies that go from zero to one billion members and less than a decade that actually have global impact. emily: are you seeing down -- down rounds. >> not privately yet. >> but we are seeing them publicly. square is going public later this day. -- week. if the ipo the new thing? >> if private market valuations continue the way they are in the
later rounds, we will see more of this. the inflection point you see is essentially like protection. those investors have said that they get protection because they invested at the current price however many years ago and then the other one is when you choose the companies that are actually going up, you win on those. erik: speaking of square's ipo, it happened. the stock began trading thursday morning. emily went to the floor of the new york stock exchange shortly after the debut to interview square ceo jack dorsey. emily: how do you think where -- square did today? jack: it is a moment and i'm really excited. it is something that has been a long road and is a milestone. this is not something that you go around. this is what can accelerate us as a business and this is what can help us build the tools to
serve our customers in the right way and that is what it is about. i'm excited to get back to work. emily: do you think square is a technology company or payment company? jack: i think it is both. we build technology to make payments easy. emily: a lot of people are looking at square as an example of private tech unicorns being overvalued. what you think? jack: i don't know, i'm not an economist. we have one on our board. maybe we should talk to him. emily: what do you think about this idea that square was not able to live up to the valuation that was set in private market? jet: our expectations are serving our sellers. that is what it is all about. this is a fundraising event for us. we have money to continue to build the business and make sure that we're serving ourselves better. emily: where we focus that money? >> we will focus on not on our new reader. we want to see it on the side of every transaction which enables anyone to accept all of these different bae systems without having to think about it. it is in the market. my mom opened the markets today. she bought some flowers with her
watch. it was amazing. really proud of her. she is around. we want to see that on the other side of every transaction because it is fast and easy and as you add more technology and security to the system, more of the fraud and risk potential goes down. we want to see this everywhere. we think we have an amazing opportunity to represent the daily because these are the places that you go to every day, the coffee store, the lunch place, the food truck. if you see that everywhere, you know that you can pay with your phone when you see the square logo. it is amazing. we want to make sure that we have that logo representing. emily: we have talked a lot about your executives. do you think you'll need to hire a president or a coo? jack: we have a significant bench. the function of coo is spread to the entire leadership team. i'm really proud of our dynamic. i'm really proud of our team.
also our board. i think we one of the best boards in the world. our focus is on what we need to go forward. larry summers, david, mary, it is a great team. emily: is there a public company ceo out there who inspires you? jack: bob iger. i learned from him every single day. emily: what specifically about him? jack: he is not only a great ceo but a great leader. is one of the best leaders have ever seen. he runs a business that has multiple parts to it. the folks in that business feel empowered. it is diversified. it is a true ecosystem. they have really stuck to the purpose of how the company was founded. everything that will -- walt
started is still in the company today. it is something that we can all learn from. to build a company that lives generation after generation after generation, walt disney was the first technology company and the first ecosystem company. and really focused on is your answers and it is fantastic that it endures. ♪
♪ erik: welcome back. i am erik schatzker. as we wrap up this edition of "bloomberg best", let's look at charts tell the story of the week in business. scarlet: walmart has been a lacquer this year in part because margins remain under pressure. what we can show you is that the yellow line here is below its overall. it is below 5% which is something that people fixated on. both of these are declining. doug macmillan's push to modernize walmart has eroded profitability. still, the forecast for revenue growth over the next 3-4 years at 3%-4%. at the bottom part of this, it
is stagnant. growth will be international. the orange part will drive everything. when it comes to international, he is talking about china and not brazil where nats sales continue to suffer. there is no consistency here. down for tenths of 1% in the past quarter. >> i want to talk about what is going on with russia and the ruble. if you check out this chart, russia is in large part and oil driven economy, the collapse in oil prices have slammed the currency. in recent days, there has been a bit of a disconnect between the ruble and oil. after basically the ruble has gone up and oil is going
nowhere. this is oil. there is a believe that thanks to the common enemy of isis that perhaps there will be a thought -- thaw between russia and the west and that they can perhaps lift sanctions eventually as they pursue this kind of enemy -- this common in many. investors are betting that will be good for russia. as you can see this divergence. >> what are the inflation expectations? u.s., germany, japan. this is the difference between government that and inflation linked bonds? it is the way of gauging inflation expectations over the next 10 years. as you can see in the u.s., inflation expectations have been rising since september. in germany, they have been rising since august. what has happened in japan since may, inflation expectations have been coming down.
the breakeven rate is now at .78% which begs the question, why isn't the bank of japan adding to stimulus? today it kept policy rates unchanged. by the way, goldman sachs says that u.s. 10 year breakeven rates, what is the trade of 2016. >> that is it for "bloomberg best" this week. remember, you can get more news at bloomberg.com. i'm erik schatzker. thank you for watching bloomberg television. ♪