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tv   Bloomberg Best  Bloomberg  February 20, 2016 8:00am-9:01am EST

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>> "bloomberg best coming up on "bloomberg best, -- >> coming up on "bloomberg best ," the stories that shape the world. a production freeze interrupts the oil route, but for how long? >> i would like to stay in the market. that is it. shery: and the fed weighs in latest set of minutes. >> they said let's wait and see what happens. shery: a pain for some, joy for others. >> you are right, we crash it. banks while european
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cope with a nightmare. and some of the business -- biggest names in business suit from the hip. >> in silicon valley, they are in their own world. >> this is a litmus test. >> they are scaring the hell out of people. plus, conversations with highflying executives at the singapore airshow. it is also an ahead on "bloomberg best." ♪ hello. i am shery ahn. alcome to "bloomberg best," weekly look at the most aborted businesses, analysis, and interviews from bloomberg television around the world. let's begin with a day by day review of the week's top headlines. on monday, trading resumed in china following the lunar new year holiday amid new concerns over the stability of the yuan. a day of dramatic headlines
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with china dominating the news. the governor broke his long silence. what did he say. what was significant about it? >> i would not call it officially new. he said we are not engaged in competitive devaluation. but the fact that he said at all is quite interesting. he has got his key message out of it, that we are not going to push the currency down just to find export competitiveness. volatility along the way. we can only take him at his word, but there is a central message coming out of china that it is not about devaluation. shery: that is what a lot of asset managers said, the fact that he said anything at all was a sign of support. we also saw the sign report in the yuan fix today. >> that is right, this poor set of data that we got today on the
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it doesont hints that not make too much sense for china to maintain a strong currency. trade data suggests that they would kind of like a weaker one. vonnie: the meeting ended less than an hour ago. so we have an agreement between saudi, russia, and two other opec countries. what does it mean? the markets were disappointed. it was too much for the first meeting of these two countries, at least in eight months. were onlyt where we three months ago, where we are today. the market seachange in the situation. three months ago, saudi arabia and russia were writing or market share -- were fighting for market share. moscow was trying to do the same in china. over that, both countries were fighting a proxy war in syria.
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today in doha, the ministers of both countries -- i do not think they keep the subset, but they really reach a preliminary agreement. i think that is quite significant. francine: they have a floor, they have a price they do not want the pleasur threshold to b, and that is $30. that's $30 price level -- these deep-seated negotiations. erik: transcripts show policymakers expressed concern following commodity prices. isning us from washington bloomberg economics editor mike mckee. mike, there has been a residence on the part of the fed for them to say what the risks are. do you read any more understanding out of this document on where they see the
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risks are and whether the balances are negative or positive? mike: we know where the risks are from the fed minutes, brendan, but we do not know whether they will actually come to pass. remember, this was back in january. it has been a month. since that time, janet yellen has testified again on capitol hill. the minutes clearly shows that officials were struggling to understand the implications of falling oil prices, a stronger dollar, chinese growth, and volatile financial markets all at a time when consumer spending was hanging in and the labor market was remaining strong. in general, the minute say, many 's all those developments increasing the downside risk to the economy, although they really had no framework for how bad those risks would be. here is a key quote -- a number of participants noted the large magnitude of changes in domestic changes was difficult to reconcile with incoming
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information on u.s. economic development. if things were so bad, why was the data coming in ok on the labor market in particular, brendan? they did not know, so as you say, they punted. they said let's wait and see what happens. shery: walmart stock is falling in today's session, nearly wiping out its for 2016. the world's largest retailer lowering its annual sales forecast to "relatively flat." walmart is the biggest laggard i today. we knocked outen current feature you have got to factor in currency. why walmartning, so at this point? we were talking yesterday about the stock performance. people kind of looked at it as the flight to safety, the safe haven. if there is a recession, an assumption that people will trade down to walmart, and we have seen wages going up at the bottom end with minimum wage increases. i think today is a reminder that
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there are still issues with this company. why have your money in walmart and amazon? alix: does e-commerce decline? someone will have to answer to that with 8% e-commerce growth in the fourth quarter. what do they do about that? shannon: they are blaming outside markets. brazil, china, the u.k. -- which they are seeing increased competition there. there is always some reason. amazon -- fourth quarter retail sales are up. do, they that has to have to spend in that area. it will be expensive. they spent almost $1 billion last year online. they will spend almost $1 billion more this year. >> breaking news today -- yahoos board has formed an independent committee to explore strategic options. it is seldom -- it also says separating its alabam alibaba six is critical. -- stakes is critical.
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>> they want to show the market they are taking very seriously this desire for them to find a buyer. if the concern was that marissa mayer in management and the board were on two separate pages. concern for the buyer is morris and management were behind the idea of a sale. they are committed to working on yahoo! what the board meetings show is that we really want to make this thing work. david: two days ago, they were shutting down their verticals, they are laying off people, shutting down offices. and the lord is saying, wait a minute, we are thinking about selling it. it is not to say we are desperate, find a buyer, it is options, right? so isn't that a thing to think about? tom: she has also that to think about morale among the staff. she has retained people to run
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the business. no matter where marissa goes when this deal goes down coming any need people to keep the trains running. more you're talking about look, we're going to close down shop, and up in the hands of private equity, verizon, whoever it is, the more people are going to be like -- well, what are we doing here? shery: later in the program, we will focus on two sectors very much in the news this week for different reasons. optimism around global aviation at the air show? the outlooks are not so sunny for european banks. "bloomberg best coming up on"bloomberg best -- coming up on "bloomberg best," a roundup of company news from around the world. ♪
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shery: welcome back to "bloomberg best." i am shery ahn. the commodities crunch forces a mining giant to scale back while
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an upstart wireless carrier promises to keep growing. those are just a couple of the most interesting company stories we covered this week on bloomberg television. here is a look back at a busy five days. a watershed moment in a long silicong debate between valley and washington. apple is rejecting a court order to help investigators unlock the iphone of one of the shooters in the san bernardino terrorist attacks. ao tim cook framed it as chilling attack on civil liberties. what do we know now, and how does this play out? >> the government has come to apple with a court order trying to compare them to give them the ability to unlock an iphone. apple is pushing back. there is no sign that any site is going to stand down. this will be a labor case that will play out for a well. resistink apple should the order. it would set a precedent. it would mean the fbi to go to apple and demand that apple
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unlock any phone the matter what operating system it has. it would go then to apple and say well, if you can give us access to phones, how about computer seattle and then it would -- how about computers? and then it would go to other providers and demand the same thing. emily: byron, you disagree. explain. not agree with giving blanket access to the cohortsgies, as my two have stated, but i do believe that given the situations we have today, i think apple should participate in the process. that would require the government to change their rules and how they investigate situations, who is involved in that, but i do think apple should be directly involved in that and not have to be compelled to give up the keys to the kingdom, if you will. surging, upank is nearly 14% after saying it is shareto shore up its
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price and spend a record amount by a backstop. this could be -- buying a backstop. this to be worth almost $4.5 billion. how does this compare with their past purchases as well as with others? >> that is right, at $500 billion yen, it would be worth about 14% of the company's outstanding shares. comparison, softbank's biggest rival in japan has announced a $350 buyback earlier this month. the stock has been clobbered this year, falling 28% yesterday before the buyback announcement. this puts the company's market valley below the some of the values of its shareholders, which includes sprint, alibaba, super cell, as well as yahoo! japan. one thing that helps the investment is it will not borrow more money to pay for the buyback. it is good news because the company is already $100 billion
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in debt. instead, it withdrawing its cash holdings as well as asset sales to pay for the acquisition. $5.6 billion loss, a massive overhaul to operation. rating was cut to jump yesterday by moody's. what you think investors are convinced about the strategy update that we have seen this morning? it seems the plan outline -- what we saw this morning, a complete exit from iron ore, coal. they want to get away from consumer. it is quite a significant change of strategy exit. exits have thef outlook for those commodities much worse than other commodities we are talking about. getting out of bulk, focusing on consumer. some would call this a firesale. stripping backs
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to the core, rebuilding the base, going forward to the most positive way we can. changes of theng last 10 years that have been incremental. i think it was time for a bold step out. we have been working on that strategy over the last couple of years, and i think in this market, the opportunity is there to reset and start with a very different looking portfolio and making some bold moves. brendan: corporate bond sales are seeing sales. apple and other tech companies are seeing a resurgence after issues were frozen. there are concerns about global turmoil, global growth, to finally you are starting see the safest, most respected companies come to market -- apple, comcast, ibm, toyota. the four trips balance
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sheet-type companies coming out with real big issuances and saying, you know what, let's take advantage. yields are still pretty low. rendan: like the outage in home finance -- you can only get a mortgage when you do not need one. >> they have got $38 billion in cash in short term. they have got $78 billion in annual revenue. the debt is pretty miniscule in the scheme of things, so they are piling it on in my mind as we look at this. there is the closure to higher risk companies that process. -- that persists. the pace is the slowest since 2003 for this period this year. but you are seeing safer debt. for what? who knows, who cares, right? industry is notoriously
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fickle, and people are not getting paid all that much, but this is received as safety. groupon shares surging for a second straight day after a significant investment by alibaba. the stock has jumped some 83% in just two days. those shares are down about 50% over the last 12 months. what anyone can alibaba do for groupon that justifies a huge stock like this? >> it is really what groupon can do for alibaba. remember, alibaba is a company that thinks in decades. jack ma says he wants them to be around for three centuries. that is how he sees entry into the u.s. market, a long-term and parent if you're what he is planting seeds, jet.com, box, lyft, snapchat. he wants to learn about the u.s. market is that when the invasion is ready, they will be prepared.
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emily: how optimistic are you about groupon's long-term future? gil: they are not going to 0 because alibaba took a stake. brendan: t-mobile reported rising profit and predicted as many as 3.4 million new subscribers this year. stephanie: dare i say -- you crushed it. what did you do inside his company? >> you are right -- we crush it. we added 8.3 million customers in 2015. postpaid0% of all the growth in the industry. in 2015, t-mobile added a 3.5 million postpaid phones drivers for at&t, verizon, and sprint together -- -269,000. stephanie: what are you making money doing it? you started the price were a couple of years ago, so it is great for consumers, but how about you?
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john: the model is working. what does that mean? that subscriber growth is leading to revenue growth. ebitda growth -- we grew 32 5. adjusted cash flow was up 800% year-over-year, so the model is working. solvinging it by customer pain points. it sounds cliché, but the uncarrier stands for fixing what was a stupid, broken, arrogant industry for the most important thing in most able's lives -- in most peoples lives. ♪
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shery: you are watching "bloomberg best." i am shery ahn. at deutscheroubles
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bank raised a serious questions of the health of one of europe's largest initial i institutions. this week, is there a crisis brewing in european banking? it is a topic that sparked debate throughout the week on bloomberg television. >> the fall of lehman brothers ofseptember 2008, each europe's biggest banks have mass layoffs, billions and lost hundreds of billions of market value. a banking nightmare, define a banking crisis, if you could. it certainly feels nerve-racking, covering it on a day-to-day basis. >> in the short-term term, at least a banking crisis. et al.he bank, at saw massive defaults webster. we saw a lot of fear in the
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market, but i would argue that after a kind of short-term feel, that was last week -- in the long-term, what we are seeing is the next chapter in a transformation of this industry. i like to look back to last may, 21st, when deutsche bank stockholders, you know, up to 40% of the basically gave a vote of no confidence to the co-ceo's at that time. they basically said the strategy of trying to preserve the core theour investment bank and way that existed even before and immediately after the crash, that is just not going to work in this environment anymore. something more radical has to be done during that is what the market was basically saying to european banks at that time. >> we see some of the leadership changes to reflect that, haven't we? edward: yeah, and what we saw last week, the restructuring seems to go on and on. this is like mark three for deutsche bank or mark two for
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credit squeeze. get a plan, we know it will take years to execute this plan, and all of a sudden, you have that process going on, and then of course when china slows down in august and the markets start to get turbulence, that throws fuel on the fire. >> to what extent has this been crafted by regulators? we are still dealing with the changing regulation imposed on the market post lehman brothers. u.s., banks were clearly kicking and screaming about dodd-frank. anus: they got rid of their toxic assets day one, didn't they? edward: it happened fast. dodd-frank passed in 2010, started to impose, implement rules and regs. look at j.p. morgan chase's record earnings last year. >> it is really good news and banking. >> i think the good news is that
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is hard to see it getting worse. reality abouthe banks is known. but we have risks. we have a ridiculous situation where banks are having to pay to deposit money with the ecb, and the result of that is they will charge more to lend to their companies, which suggests the amount of customers borrowing and already depressed europe. so we will see mpl's already higher than they should be and will get worse. we have the potential shop coming in from market events. i go along about these weapons of mass destruction, the a-t1 bonds. i think there is a good chance we will see other cocoa bonds. that will generate a wave of negativity. at the end of the first quarter, we will see a lot of holders of who wake up they are
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no longer price at par but some of them all the way down into the 70's, and they have to sell them. so you get a wave of selling hitting the market, and that will have a bank impact. the question -- is this separate between banks and buybacks? no, it is not. >> it was all about distance to trigger. little that there will be anything trigger. willoughby honored? -- will it be honored? deutsche bank, the liquidity coverage ratios, massive term,ity, so in the short i do not see it because we are nowhere near the triggers. will writing in the "financial times" talking about the banking system. are undoubtedly right to do so. erik nielsen, the banking sector or been battered -- undo so
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rightly so? so, but there is barely smoke if there is no fire. martin says correctly in the "ft," financial institutions are complex animals, and we have been burdened from business, regulation -- the natural change we have to go through, commit to as asia and and what have you, and then we have a flat curve. you follow short and then longer , but the curve has been set for 5, 6 years. guy: the possibility of further negative rates seen as a real possibility to we are bashing the banks at the time we need them to do real work. erik: that is right, and it is a problem. >> something that may be appealing to activist investors, they are nowhere to be found.
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you had an article about this out today. why are activists shunning european banks? seems like it would be attractive for them given that you could maybe be involved in push management, make some tough decisions that they have not taken yet. the problem is that activist investors are not really sure who is in control of the european banks -- is it the regulator? is it the european central bank? even if you have directors on board, will you have the regulators and other shareholders on board as well? there are so many complexities and difficulties pushing banks in a particular direction that for now they are staying away. alix: can you compare the activism in u.s. banks versus european banks? morel: i think there is activism in the u.s. in general. again, the european issues are for more complex. we have a lot of regulators and
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a lot of strategic issues that have not been worked out with the same of aggressiveness. we have balance sheet that need to be cleaned up, business lines that need to be sorted out, and again, even though you would think this would attract aggressive investors, there are so many unknowns and so many future losses that could hit these banks that activists are, in europe, staying away. we hear whenat european banks are at risk is oh, no worries, mario draghi has your back some of the ecb will help you, there is a lot of liquidity. profitability, mario draghi cannot help them with that. >> you're right. lloyd blankfein was speaking at a conference, and his words have the european banks access to ample amounts of funding, and he was more worried about the counterparts, the suggestion of that, the share price performance. european banks in most cases have got a long, long way to go
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until they actually get way studies eight u.s. banks are injured as you know, a lot of u.s. banks buffer the cost of capital at the moment. alix: exactly. what is the next wave of trauma for the european banks? chris: i suppose it is whether or not the ecb will take rates down further and there will be more, sort of, soul-searching about what do negative interest rates -- if the ecb suggests a goes down, what does that mean for profitability, and does that have another negative impact? is there any growth out there, which will start -- if you want to alleviate that problem? shery: still ahead, the best interviews of the week. mark cuban on silicon valley, bernie sanders on the supreme court, and the fed president who thinks big banks should be broken up. that is coming up on "bloomberg best." ♪
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shery: welcome back to "bloomberg best." i am shery and. it has been a week of controversial conversations on bloomberg television. bernie sanders describes his ideal supreme injustice. minnesota fed president neel kashkari explains why he is open to breaking of the biggest u.s. banks. let's begin at the nba all-star weekend where stephanie ruhle went one-on-one with gallus mag writes -- with dallas mavericks owner mark cuban. mark: in silicon valley, they are in their own little world. they have insulated themselves, they have lost touch with reality. kids get an $8 million valuation, they raised $2 million, keep 75% of the company
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-- it is ridiculous. stephanie: what is going to happen? mark: they are getting written down to nothing. if you invest in 95% of silicon valley coming out, the minute you write that check and it clears, you should write it to $0 because that is what it is worth. they have no chance. some companies are good, but 95% are done before they start. 5% will be amazing. stephanie: marc benioff has been outspoken saying stop avoiding the public market. public,ave a lead, go get testing. mark: i have a neighbor, -- i have been a proponent of that for a long time. what is happening in the market right now -- there is a dearth of high-growth companies. we look at facebook, netflix, google as hypergrowth companies when their hypergrowth is behind them. they are still growing quickly. what is happening now is the
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hypergrowth in private companies is being bought out by private investors, right? i do not know that uber will accelerate their growth. in their growth rates are probably going to decline. stephanie: and early investors cannot get out. mark: they are stuck. stephanie: when you think about all of your businesses, when you think about what you are most concerned about, what is it? especially being from detroit. ert: the biggest concern is the overreaching power of the federal government and the kinds of things they are doing today that we have never seen before, at least not in my lifetime. it is very disconcerting to businesses. ceo'scalls every day from , public companies, private companies just with stories that are not even out there of stuff going on. so that's a me of the biggest concern. that companiesf
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and corporations are evil across the board. shareholders of public companies -- shares are owned by pension unions, this is america. we create wealth through shareholder value. arehe path that some folks telling that the system is evil to me is the biggest concern. -- are we not stefanie: are we not promoting entrepreneurship as much as we can? is the government? absolutely not, currently to not think they believe in it. subject of thehe replacement for justice scalia. you said anybody you appoint would have to be an opponent, would be in favor of overturning citizens united. basically the litmus test, essentially, i think, so how is litmusfferent from the
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test that republicans apply, we will only appoint a supreme court justice who is for overturning roe v wade? i'm not a great fan of litmus tests. this issueaying is of citizens united is so significant, is so fundamental to the future of this country -- this is democracy, and right now, what we are seeing in this campaign are people like the koch brothers, wall street, and other billionaires buying elections, and if we allow them to buy elections, then every thing else does not matter because you do not have a democracy, so this is one issue that i am saying yeah, i want my nominee to be loud and clear that he or she would vote to overturn citizens united. it goes without saying that i am pro-choice. not terribly likely that i will be nominating somebody who is anti-choice, etc. to meis is a litmus test
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because i'm worried about the future of american democracy. crisis,l remember the 2007, 2008. i was in the middle of it. we hated that we had to develop the banks. i think americans across the political spectrum hated that as well. we see the anger of the american people still today. none of us want to be in a situation again, so dodd-frank was passed very quickly because -- which i supported. but the more transformational measures were taken off the table, things like breaking up the banks or putting so much capital and big banks that you turn them into utilities, so they virtually cannot fail. there are a number of other options. here we are six or seven years later, and in my view, we have done some good. the banks are safer, they have more capital, deeper liquidity, but we have not taken the risk of a bailout off of the table. if a number of banks run into risks at the same time, policy makers will have to bail them out. as stephanie: you never take risk out of the system.
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be left holding the bag. it is those investors who have risky assets. insurance companies, 401k's, so it is not evaporating -- it is going somewhere else. neel: i agree. in the late 1980's, 1000 savings and loans failed. there was terrible for those firms, but there was no crash. late 1990's, we had the crash, devastating for silicon valley, but no risk of an economic collapse. that is where we need to be. is normal, fits of volatility. i wrote a memo recently where i talked about my friends, sandy, an airline pilot who describes his job as hours of boredom punctuated by moments of terror. stephanie: hours of boredom punctuated by moments of terror. howard: i think that is right. this is one of the last six weeks in the stock market have
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been one of those moments of terror, but it is normal. the reasons are not quite normal, but we have kind of one-off. i think people have gotten used to dealing with normal economic cycles -- recession, recovery, now kind of have cosmic issues that people do not have any experience with and do not know how. terrorism aretes, just for example is. stephanie: is the fear exaggerated or peng shuai by the presidential election? -- or punctuated by the presidential election? when you see donald trump putting fear in the economy, speaking and declared a statement, does that affect the market? howard: i cannot tell you definitively because i do not have any research on the subject, but i would guess so. they are scaring the hell out of people. donald says the chinese are killing us.
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us, thecans are killing japanese are killing us, but we are going to get the job back. then the others compete to be equally fearful and dramatic, they cannot -- it is very hard for them to compete with them, saying no, the latest information from the commerce department says -- they do not want to hear that. ♪
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shery: you are watching "bloomberg best." i am shery ahn. this week, the singapore airshow brought together the biggest players in the aviation industry from top airline executives to manufacturing ceo's. aminlleagues has haslinda and stephen engle were there to cover it from every angle. haslinda: airlines enjoyed the
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most profitable year in 2015, expect further gains. tony joins us this morning. such optimism, tony. we are forecasting airline profits globally for the morning. billion dollars over last year. that forecast was made last december, and we will be updating it in june. a lot will happen between december and june. as auel price coming down large part to play in that. haslinda: china is going down. why isn't china a risk to the aviation sector? tony: you are right, china's economy is slowing down, although air travel is not slowing so much because the economy is reshaping itself, restructuring itself, and consumers are spending a bit more, and they are spending on travel. it as suchot seeing
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a big factor at the moment. >> i think we are firm. the board will be above one, and it means we will consult it a backlog of 6800 aircraft. low-cost carriers in this part of the world, what are you seeing? fabrice: many people talk about it, but we do not yet. the reality is we have customers, so profitable, so it is true as well that the segment is very dynamic, so there is a lot of growth. there is a big surprise among some competitors. confirmn all, i can that we see it and for a simple reason. asia accounts now for 40%. so this is the area of growth,
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and it will continue, except if everything collapses, but this is not the prediction. airlines undergoing a massive because of massive losses amounting to more than $1 billion. most of the european group. we are refocusing on emerging economies, strong gdp growths, and creating new relationships between malaysia and those countries, the most prominent being china. no more cuts to be expected. we will change it every year, like every airline. we did not have enough work for all the people we employed, so that was very unfortunate, but
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also that is over. how does it look in asia? what does it look like? >> globally, we expect about 350 aircraft in space, 25% of that is going to come from asia, including china. so it is an enormous possibility for a spirit we have 20 customers in 11 countries with over 200 aircraft flying in the region. we have a lot more work to do in this region. a big operation in beijing. we are committed to the region we want to grow here. increasingwill face competition. japan's mitsubishi aircraft trying to get into the space you are in. you have dominated this for a long time, but competition is heating up. john: those competitors book and where we are. they are at the low end.
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competitionview on is we take them all seriously whether they come from russia, japan, or china. there is no arrogance or hubris when we think about our competitors area what we can do to address the competition is try to improve our offering on a can distance -- on a consistent basis. haslinda: the regulations and orders amounting to about $1 billion. >> thank you very much. haslinda: so your orders so far from japan, the u.s. -- how about the rest of asia? what are you doing to gain? asia is the most expanding region, and we are doing our best in this region, and we feel it very strong potential. theinda: how do you view competition, because you have to break the duopoly. are you prepared for that?
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can you do it? first of all, we are the newcomers. we have designed aircraft that has a huge advantage compared to the existing product. so with these frank, strong -- ts, haslinda: what is your competitive advantage, and houston can you make -- how soon can you make it? yugo: our product is pure consumption. our product will have better consumption by more than 3%, and this will save the field last very much -- the fuel costs there he much for airline customers. >> i do not think it is a good idea for oil prices to be below $50 a barrel. it is not good for the economy is, it is not good for airlines. it is not increase the bottom line is much as i would like to because as i said earlier,
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because people travel less, and of his same time, because people we haveeling less, capacity. there is competition for this capacity, so it is downward. >> how are you hedged? akbar: we are hedged only a small amount of fuel, but at a very high price. i hope that we will be able to hedge waiting for the oil price to go, and it needs to be below $30 a barrel for me to take a hedge against that big amount. stephen: do you expect it to? akbar: you never know. so much.xur fluctuating either it will go this way or that way, but we hope it will increase because we want businesses to increase. people expect because of lower oil prices we're going to reduce our affairs. -- fares. giving have produced by
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passengers the fuel surcharge we used to charge, but they should not expect too much becausen in fares, when oil prices reached nearly $150, we did not increase our fares 150%. this was encroaching on our bottom-line and our margins. ♪
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shery: as we wrap up this edition of "bloomberg best," let's take a look at some of the week's most interesting and entertaining charts. bestlet's go to our single chart. i did not know what this chart would look like when we made it, but has to do a lot with education matters. going back 25 years, that is the ofwth in employment love
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those with a college degree versus those without a single bit of college as well. the starkness of that -- you can see the tensions of 2007 and 2008 -- everybody flattens and rolls over, and the college degrees, professor porter, just take it right up. porter: scale is powerful, and people with scale are doing well in america and other parts of the world. the college degree has in the ticket to that definition of being scaled and being educated. today, we will play the game called guess the european periphery economy. right here, we have got gdp growth. it looks reasonable, up at 3.9%. anybody would dream about that kind of growth right now. correspondingly, this is the spread against german bund going good gdpn, growth, things are looking
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great. something happens, however. right now for the last two years, that has been rising. someone tell me there is a clue in the colors. is supposed to give us a call? brendan: that is red and white, the colors of russia. you are supposed to figure it out. >> that stumps the judges. poland's justice party, you have good economic growth, bad -- >> so taylor swift wins three grammys, won album of the year for "1989." is the year she was born. what if you had invested as her parents in various assets the day she was born december 13, 1989? came up with.
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they had, of course, being americans, would only invest in assets and the dollars. you invest in the s&p 500 are you are sitting on returns of 446%. you decide to put your money into gold. you are sitting on returns of 190%. the dollar index gives he returns up 2%, and the yield on the 10-year treasury has come from 7.8% to 1.755. so if you are mr. and mrs. smith, you're not only happy that you produce taylor, but your portfolio of usn dollar assets has done remarkably well. well done, mr. and mrs. swift. shery: that is it for "bloomberg best" this week. remember, you can always find the latest business news from around the world at bloomberg.com. i am shery ahn. thank you for watching bloomberg television. ♪
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mark: i am mark halperin john: i am john heilemann. mark: and with all due respect, i am with hillary. ♪ john: tgif sports fans. although some candidates are dreading what comes this weekend, we are in south carolina, in columbia. this is our last day here on the eve of two presidential contests. the games are underway for the

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