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tv   Bloomberg Best  Bloomberg  June 12, 2016 6:00am-7:01am EDT

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up, the stories that should the week in business around the world. valiant shareholders get another dose of bad news. the field appears set for the white house and the ecb sets uncharted territory. saudi arabia steps up its economic makeover. tensions well with and impassioned arguments for and against brexit. >> leaving the european union would be a terrible idea. >> a decision with seismic consequences. ramy: what data will drive next
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week's fed rate debate? >> she is watching the jobs rate data. >> changes in the fed thinking has been how attention is paid to global offense. >> i'm prepared to be patient. ramy: big name guest dig into the issues of the week. >> i vote for just about any human being against tiller clinton. >> we have a lot of development activity to make disney branded films in china. ramy: it is all straight ahead on "bloomberg best." hello and welcome. best." "bloomberg let's start with a day by day
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look at the top headlines. federal reserve chairman janet yellen give a speech on the u.s. economy and monetary policy. it's for the fed meeting on interest rates and days and fed investors hung on to her every word. that ittinue to believe will be appropriate to gradually reduce the degree of monetary policy accommodation provided that labor market conditions strengthen further and inflation continues to make progress toward our 2% objective. >> basically she is saying the economy is strong. it's a repeat of what she set up at harvard without the date. now we have this wildcar of a weaker labor market, so we want to spread out what our possibilities are. it does mean that june is off the table because she did not endorse the idea, which is what she would've needed to do in order to have that be a realistic possibility, but july could be on the table depending
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on the data between now and then, september certainly. she is thinking the economy is getting better. her frame of reference is an economy that probably deserves higher rates. the question is will the data support that? that is the unanswered question that she posed today. >> shares of valeant are plunging today after the embattled drugmaker cut its 2016 earnings and sales forecast. in a conference call this morning, the new ceo aim to reassure investors that he could stabilize the company. have a listen. >> we try to be realistic it with what we know and we tried to be conservative so that there would not be any overstatements and what we were trying to accomplish. >> investors reacted very despite what that pop-out is saying, trying to be reasonable here. >> there are a lot of new red flags raised on the call in addition to a lot of red flags
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around and investors are feeling just like when we get out of the woods at one point, something else comes out. some of the things that came up on the call and the guidance that they provided puts them pretty close to their maintenance covenants. the whole issue of whether they will be compliant with their data agreements is where we're headed against. . it has only been a month and he has not been able to show a new valeant to wall street. hillary clinton has declared herself the victor in the democratic nominating race, becoming the first woman to run as a presidential candidate for a major u.s. lega political party. the press says it's over, but bernie sanders did not get the memo. >> a historic night for hillary clinton and a historic night for the u.s. as she declared herself the presumptive democratic nominee, the first female and a major u.s. political party.
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you're right that bernie sanders does not appear to have gotten e memo, but that math is the math. hillary clinton emerged last night with the pledged delegates. she is one of majority of the states and population and she is now the candidate the democratic party is good to have the rally around. on the donald trump side, we saw very different donald trump. we saw donald trump on teleprompter, a scripted donald trump. is saying a judge may be unfair to his hispanic heritage. and may man on a leash be and all of branch to the republican establishment in a campaign that looks to be a vicious and brutal cycle with deeply personal attacks against both of each other. it will be fascinating to watch in the coming days.
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>> let's get back to brussels where mario draghi has been calling on politicians to help the european central bank restore economic help. what are you hearing over there from the economic forum? >> they are all talking about the stage two of european integration, trying to make the european monetary union tighter. itis interesting because obviously comes at a time where there is a vote in britain to actually exit the european union. that is really the issue that is being discussed over and over again. on the other hand, mario draghi was here. everybody was happy to take an hour away from brexit and listen to what he had to say. let me give you a little piece of that. >> there are many political reasons to delay structural reforms, but there are very few root economic ones. the cost of delay is simply too high. >> he is talking about the completion of the single market. he wants to get rid of the uncertainty based on firms trying to do business when they
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do not know what is going to happen as far as the brexit is concerned or tax laws is concerned. less ability to move the needle. policymakers need to achieve the goals that they want to. we hear bankers asking for fiscal help, but mario draghi -- that's his main point to the. day. >> russian government bonds showing no signs today. new lows here that raises the question of whether we are heading to negative territory. >> not the u.s., but we are seeing record lows in most countries around the world. you search for yield and what do you get? one trade test buying bonds. the potential for disaster struck to get bigger and bigger. that jobs report -- you are
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buying treasuries. brexit worries -- you are buying bonds and a safe place to park your cash until you know what's going to happen. with everybody moving into the bond market, short term papers are becoming more expensive and harder to get. investors are being pushed out of the yield curve and we are now seeing the impact on longer-term bonds. investors are concerned. bill gross to eating yesterday that this could end very badly like a supernova, a star that is just about to explode. >> part of this has to come partly from brexit. there is the sort of uncertainty. people are try to get ready for this binary move. the markets were not prepared for it and now they're getting prepared. it raises the question of how low they can go and at what point is the lack of income that investors are receiving from their fixed income investment stymieing their ability and
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willingness to go out and invest in riskier assets. >> later we will take a deeper dive into the fed upcoming rate decision with highlights from our exclusive interview with atlanta fed president dennis lockhart. plus, a look at employment data that may give the committee a jolt. europe and theto new level of intensity for the brexit debate. ♪
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ramy: this is "bloomberg best." are global tour of the week's top business stories continues ecbthe eurozone were president mario draghi has embarked on a brand-new kind of expansion to stimulus. >> for the first time today, the european central bank has plunged into the corporate bond
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market. according to people familiar with the matter, some of the initial purchases i the ecb very from european utility companies to a be invest. as the market priced ineffectively this purchase from the ecb? >> i think it has done some of it. when the initial program was announced, there was a lot of discussion about the ecb having -- bonds touff by buy and then econ 101 took hold and supply rose to meet the math. a lot of companies coming from european operating subsidiaries. this could be by the room or sell the news. nonetheless we are going to wait and see how much ecb buying actually occurs. >> what we know about what the ecb is buying? >> sources tell us that the ecb has been buying bonds from continental today and also from orange. interesting was buying bonds from volkswagen. it is not so long ago where they
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cheated on the emissions test. it tells us that the ecb does not mind much with the euro's coming their way in the forms of damages relating to the. at. there but bonds from telecom italia. -- there bought bonds from telecom italia. >> what is the impact? >> it tells us investors are in a lot of corporate debt right now and they're reaching down the high yields. >> the has been a plan to approve public-sector wages as part of the post-oil future. the kingdom sees the debt searching to 30% from less than 8% now. you read through the announcement. what was most significant? >> it is the debt portion of the announcement. it's a grand bargain with the saudi people, which is taking a
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nation with nearly 80% of people working for the government and increasing the debt load from 7% to 30%. it will create a hugely liquid market. the other big piece is of this jigsaw were of the nonoil revenue. they tried to break saudi arabia's linked to oil, but they are talking about nonoil revenue billion reality to 530 billion. this is reform for the nuts and bolts of this come to two numbers. the debt load that you mentioned and the other is going from 45% of the nation employed by the government to 40% employed by the nation. cutting subsidies and boosting the nonoil revenue. that is the key to this deal. >> more now on the news that samsung may be looking to beat apple and the bendable smartphone market.
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sources say it is considering two new models with bendable screens, including one that falls and half because medic compact.osmetic >> they are looking at new displays that he could bend and fold and put into your pocket and can be smaller in your handbag or jacket pocket. they are doing this partly because they can. they develop their screen technology and invested a lot of money. they are working on these new oled screens that have more capabilities than they have had in the past. samsung competes with apple in smartphones and this may be a way to draw an additional consumers for these kinds of phones. they also make screens that they sell to other smartphone makers, so they may be marketing to the rest of the world the other smartphone makers could use these displays and future models. popular mobile messaging service in japan helps to raise up to $1 billion in an ipo next month.
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that would put line corporation on track to become the year's biggest market debut for a tech company. shares had a valuation of about $5.5 billion. >> the timing is pretty significant, isn't it? twohey file further ipo years ago in june of 2014. the question is why now? why are they looking at an ipo now, especially in a. where test ipos have not been doing well globally? anxiousnagement is to get the show on the road to raise funds and push for growth. what is also behind it is that they think they have a pretty compelling story to tell. >> what is that? >> line has 250 million users, but it actually makes money off of them through what everyone knows are popular stickers and even add, etc. the story that management is going to tell when they go out
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and try to sell the shares both in the u.s. and japan is that line can make money. with a little more investment, they could probably be one of the world profitable messaging apps. has discussed a partnership with uber. this is according to people familiar with the matter. it could be announced by the end of the year. uber is holding similar conversations with other carmakers. this would not be of particular surprised. sergio marchionne has always been out there and has been dying to do a partnership with anybody from detroit to the likes of uber for a long time. >> it sparks off the new strategy from sergio marchionne. he first got a deal with google and was the first major carmaker decid to sign a deal with self driving cars. he is trying to make a new partnership with although tech
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giants -- auto tech giants. he is quite active in this field now. decisions with a surprise rate cut from the bank of korea. all.was not expected at everybody thought it would remain unchanged and that 9:00 would come and go and everyone would call it a day. >> everyone but goldman sachs, one economist that did get it right and they predicted this from the bank of korea. while they were the soul forecaster, others were saying it was only a matter of time. if it was not today, it would be sometime soon. we did see some of the bond yields, three-year and 10 year fell to record lows. there is easing coming out from the central bank that would continue and go further. >> the bank governor had quite a dire outlook for the case of the south korean economy. he says there is no clear trend
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in this recovery right now. >> he also said uncertainty to the growth path has increased. the benchmark rate at a record low of 1.25%. >> and another move to cuss --ght, ubs is illuminated cut costs, ubs is eliminating jobs. what are they doing? >> they are rewarding them more to stay with the bank longer. another move they announced yesterday's they plan to reduce the amount of financial advisors they recruit from competitors by 40%. that is a big change as well. it comes after ubs has scooped up a number of advisors in the past year when credit squeeze left the wealth management division and the u.s. they are coming off recruiting heavily last year. they are also cutting some jobs mainly in the middle to senior management levels, including some in the home offices in new york and new jersey. this is really a response to the
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increased competition and wealth management in the u.s. as we have seen a rise in technology and more brokers leaving big banks to set up their own firms. ♪
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ramy: you are watching "bloomberg best." on june 20 third, the u.k. holds a referendum on whether to stay or leave the european union. the so-called brexit. at the start of this week, the election was tightening and that raised the intensity of the debate right here on bloomberg television. sudden gainere a and momentum for the vote leaf ve campaign? >> i have no idea. i think it's want to be very close. we shall see, but i certainly very much hope that the people of britain will vote on the 23rd
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of june to leave the european union. it is right that we should become a self-governing democracy with a global perspective and not a literal european perspective. it is also the best thing for the economy. >> i think it is a little disappointing that there has been this focus on what is called a blue on blue war. what would be better is if we had a proper discussion on what posto's -- on what it leave campaign. what would happen with this campaign and the 2 million british people living outside the u.k. is been a false debate. i call it barely half a referendum. >> prime minister david cameron said today, talking to the leave campaign, that the leave campaign is resorting to total entries to con people into
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taking a leap into the dark. lying toave campaign the british public over the risks of britain staying in the eu? >> my view is that the prospects for the u.k. outside of the eu are incredibly bright and the risks of staying in it are incredibly serious. remain far from the suggestion that it is the safest quota then leave into the unknown, the facts are that the u.k. is the world's fifth biggest economy and that 83% of the world's economies are outside of the european union. the eu is a declining trading block. its economies are almost all going backwards or stagnating. the uk's exports to the eu have flatlined for 10 years, gone down quite significantly in the last few. the single market for services, 75% of our economy, is not completed. even the commission admits it is not completed.
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here we are back in an eu trading area. this is not succeeding in negotiating free-trade agreements with our priority opportunities elsewhere in the world. if we leave, we can negotiate those free trade opportunities and they will be so much brighter for the u.k. >> do you think david cameron regrets calling the referendum? could he have done otherwise actually? > think people close to him regret it, but i think he doesn't. i have some sympathy with that. this was a thing welling up inside authority and with britain. and has been 40 years without any kind of vote. >> do you disagree? think one of the ironies of the prime minister's position has been that until february 19 he had to pretend the campaign to leave the european union in terms of negotiation.
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once that was done, he is quite rightly said that leaving the european union would be a terrible idea and terms of the economy, trade, investment, jobs, collective security, a whole host of reasons. it does beg the question -- if brexit is such a bad option, and i agree that it is a bad option, why has he brought forward the possibility? >> democracy, the vote of the people. >> water under the bridge. he decided to promise it and he won the election on that basis. now he is desperately campaigning against the proposition and the possibility is made real to this promise. onyou have written a piece how you think historians would view this. 300 living historians have signed a letter supporting the remain camp here. the history of europe, you say, staying intact.
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>> the two arguments for europe for remaining in -- i was a skeptic about monetary union. i have been skeptical about many aspects of european integration, but britain's membership of the eu is a good thing. not only economically, but most of the arguments have been economics since this campaign began. i think the overwhelming majority of economists have said that it would be an economic disaster to leave. i think the historians argument goes beyond economics. think about europe's history and how extraordinarily violent and conflict ridden it has been until recent times. one the reasons europe is a much more stable placement it used to be historically is european integration. you cannot attribute the whole story of european peace to nato. i think that is why i've come down firmly on the side of remain because i think as the eu starts to unravel, and brexit would certainly begin that
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process, the long-term prospects for europe are really quite troubling. we have this new report out from the u.k. business secretary saying that new trade deals may cost this country 50 billion. that's a lot of money. why take the risk? >> he's got to come out of the tens and slimy frogs come out of the tabs. sadly they have been wrong. they have cut for budget than last year. >> are you worried about a recession? >> what possible recession? >> if investors pull out money. i'm not making it up. this is what carney is finding. >> a nice impartial man there. we have had this with the euro. this handld about would pull out and what happens? nissan runs the most efficient plate in europe. they're putting in 100 million
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pounds into new plants. i just do not buy this. people buy products because they are a good value and the right price. that will carry on. >> how damaging to the eu a u.k. votedn' leave the eu be? what it be the first of many dominoes to fall if that happened? >> i don't think so. greatgh that will mean reaction from european leaders. in the short-term, definitely there will be an impact. the impact will not be a nice one. happens, andat somehow i'm expecting it not to happen, but if it happens, it will definitely need a very quick reaction.
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europe is sitting on the top of a pile with a large number of issues to deal with, and i hope it triggers european leaders to advance and to do big advances in those discussions. mr. blair: i think we will remain, but of course the referendum, you look at opinion polls, it is very close. >> most of the polls seem to show that they are less likely to vote. mr. blair: i think people do understand that a decision with seismic consequences, economic consequences -- i cannot believe that people will shuffle this one off, and i think we will get a substantially higher turnout they have in a generally election. i may be wrong about that.
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>> are you surprised? mr. blair: i think it has always been there. although, i do think there are a large number of british people are coming to terms with what is it all about, and they find the terms confusing. there is a relatively small group of people who care absolutely passionately. but now the debate has been joined, and of course. it is a debate that concerns the whole country. ramy: remember, bloomberg customers can follow all of the brexit polls by using the terminal function brex . up next, the biggest business stories with interviews from jack lew, mary barra, bob iger, and more when "bloomberg best" continues. ♪
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♪ ramy: this is "bloomberg best." i am ramy inocencio. it is time to play the week's most interesting interviews on bloomberg television. let's begin with david westin's exclusive conversation with general motors ceo mary barra. she runs the largest auto company in the united states. david: it must frustrate you a bit that the stock prices have not kept up. mary: there is an industry effect going on right now. a lot of people, specifically in the u.s. market, a large percentage of our profits are made, there is a big question of are we at peak, or are we heading for a trough? e.m. to that is one of the issues. and i think another issue is what is happening with sharing and autonomous. people are seeing it is a cyclical business, and as we come out of the cycle, what will be different?
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but i think we are starting to really change perceptions because we are really disciplined, and we have been talking to investors to make sure they understand that we are well prepared. it is a very different general motors, and the fundamentals are strong. we understand we are a cyclical business, and we are prepared for it, but we are doing things to get rid of the bottom of the cycle by having businesses like gmf and onstar, to have a profit generation model rather than the core business that fluctuates with the size of the industry. david: to what extent have you anticipated the possibility of a downtown, and what do you make sure that gm can weather the storm? mary: we make sure we maintain a breakeven of a tell my own-11 million market. a 10 million or $11 million
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market. making sure we have a breakeven point at that level i think is very important. david: what do you make of the global reaction, the market reaction to what we saw over the last few months? investors overreacting? sec. lew: first of all, what i think the world saw was something that was confusing and not well communicated, and it gave rise to fear that china's economy was in a much weaker place than it actually appears to be or was perceived by policymakers to be. china's economy is not as interconnected to the global financial system as the u.s. or the european economy. david: that will surprise some people to hear. sec. lew: what is interconnected is the flows of purchases, imports/exports. if you are and exporter from a developing or emerging market of raw materials to china, and you see rates dropping even faster
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than it is, that has a huge impact on what you think the future looks like. i think that the world saw a policy that would, maybe the government here meant to move toward the market or exchange interpreted asas an attempt to drive down the r&d because of fears of economic weakness. as that got communicated more clearly, i think it has kind of settled out. how important it is, one of the two largest economies in the world, china becomes more adept at communicating its policy, path, and analysis of its own economy because the world and markets are hanging on what china thinks is going to be the next step in its economy in so many ways. ♪ bob: in terms of what is going on in china that works to our advantage, clearly moving from a
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manufacturing to a more service economy is very important. we benefit by that, but we also contribute to it. one of the reasons why we got the permission to do this is the nature of the business, the number of the jobs that we create in the service sector directly and it in directly and the message that it sounds. tom: we heard that you might be looking for a firm to produce movies. is that true? bob: it without getting into much detail, we have a lot of development activity right now. to make movies, disney branded films in china. tom: are you able to tell us which partners you have been looking at in china? bob: you know, i am not able to. -- only because i'm not 100% certain on what we're focused on, but we are very far along on this process, including developing ideas, concepts for
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films, and identifying talent already to actually make those films. tom: can you give us a timeline? bob: shortly. [laughter] tom: within the year? bob: we will not have a movie released within a year, but with -- but within a year, we will have a movie in production. at least one. ♪ ryan: what if prices stay where they are or, dare i say, trained lower? what is your strategy? ben: that is a good question because nobody knows where it is going to go. they can say great recovery so far, they can say oil can go go higher in terms of fundamentals, but we do not know when that will happen. looking at oil prices, we have to manage our financial framework, we have to balance our financial framework at every
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price level. we have very important levers that we can pull in order to do that. we will have to continue to pull that hard. actually, low oil prices a great opportunity to reset our cost base. at the end of the year, i want to get to a level of $40 billion of operating cost, which is potentially lower than shale alone, but now with bg in it. so, a tremendous amount of opportunity there. and lower capital investment levels, we will today be announcing that the plan to run our capital investment program, in a relatively tight bend. $25 billion to $30 billion, but today's oil prices are trending to the bottom, if it stays below $50, there is lower leverage in there as well. ♪ betty: are you going to bat? jack: i will vote for donald trump. absolutely.
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betty: ok. jack: just about any other human being the in hillary clinton. betty: what will you do to support him? will you give money? not a big money guy in politics. i have never been. we will see. i mean, obviously i wish he would speak less about things like judges in indiana. obviously, i wish we would not layout -- anybody can beat hillary clinton, but we are trying not to with some of these statements. ♪ erik: when the bear market and credit comes, if that is what is coming, what is it going to look like? 2002, 1998? howard: it will not look like 2008. 2008 was the collapse of the bubble. we do not have a bubble.
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and there was a panic. there is no reason for a panic. we started to get there in january. a lot of things were going wrong -- oil, china, and growth in general. that turned people negative, and that gave us opportunity, but there was no path. -- no panic. erik: so it will look like -- howard: it might look like, well -- 1990, 2002, and 2008 were all panic of some degree. erik: quick question for you, howard -- it always takes a trigger. could the trigger be the brexit? howard: it could be, but i think it is unlikely. because, well, anybody who thinks that brexit has sweeping negative ramifications for the u.s. economy and credit worthiness i think is off the mark. ♪
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♪ ramy: you are watching "bloomberg best." i am ramy inocencio. the federal open market committee meets next week. most economists surveyed by bloomberg doubt that the fed will raise rates. chair janet yellen said hikes are coming but left the timing on that they. -- vague. what impact will the decision have on global markets? we got insight from insiders and experts all week on bloomberg television. ♪ dennis: i think the combination of the jobs report on friday and the brexit consideration justified patience, but i am speaking only for myself. i do not know how the meeting will come out, the committee could arrive at a decision to increase the fed funds rate, but as i assess the situation currently, i am prepared to be patient. michael: what does "patient"
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mean? would july mean a rate increase? dennis: patient for me means getting beyond the brexit vote. seeing how the data come in for the next few weeks. my fundamental view is that the economy remains on a moderate growth track, let us say around 2%, and that it will be sustained for the rest of the year and beyond. so i am not really changing my overall view of the economy just because of the jobs report on friday, however, the weakness of the jobs report is something that i think justifies a little bit more patience. ♪ tom: mike mckee jumps into the jolts survey. what is that? michael: job openings and labor turnover. alaned to worry about what
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greenspan studied. remember that? now it is about janet yellen. we know she is watching the jolts data. it is back to prerecession levels. if you're feeling better about your job prospects, you are more likely to quit and take another job. the good news is, the quit train -- the quits rate is a leading indicator. the quits rate goes up and it polls up average hourly earnings. you can see the movement. in 2013 really started and gathered speed into this year and gradually we are getting wages higher. alix: there are lots of questions about what the labor market is going to be doing. job openings in the u.s. rose to 5.78 million in april. that was the highest level since 2000. this points to pretty strong demand in the labor market. you got big demand in manufacturing, utilities, trade, and on the downside, things like retail did not see a lot of openings.
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so that number was a good sign. joe: if you dig into the jolts report, this is a chart going back to 2007. if we zoom in just the last few months, that white line is the total quits percentage, down to 2.0%, and this blue line is construction quits, so industry-specific, it had been 2.4%, now down to 1.7%.
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the industry-specific one is a lot noisier, obviously, because it is a smaller example size. alix: if you look at -- scarlet: if you look at it specifically, this chart shows the rate of job openings plus available spots. it is now at 3.3%. that is the highest going all the way back to 2000. so combined with the slump in manufacturing this year, this jump here -- it seems like they will have a hard time finding qualified workers. they cannot find the people they need. alix: which you think would get higher pay at some point. you've got to pay the workers to train them to do that. scarlet: theoretically. joe: so many signs of higher wage growth. it take see ♪ david: after last week's low employment numbers, today we got jobless claims that showed some positive signs. americans already receiving benefits tumbled to an almost 15-year low. how big a deal is this? william: it seems to me that as we head closer to higher and
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higher employment, it is a great time to be looking for a job, theoretically. i still personally worry about all of the people who sort of dropped out of the labor force because people do not measure, people who have jobs that they loved it and have exited out of those jobs and cannot really be trained for new jobs in a workforce where they are hiring. so that concerns me, and it is hard to know how to capture that. and there are a lot more uber drivers in the big economy. i am worried about are really solid, long-term, well-paying jobs. where are those going? amanda: has the market started to pay too much attention to when the first hike is coming? ruchir: unfortunately not. it has been hooked to a liquidity issue. i think that to the real change in the fed's thinking has been how much attention has now been
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on global event, and this is something the fed did not do much historically, but they are acutely aware of the fact that they really are the central banker of the world. and the weakness in the global economy, both in the u.s. economy and also something from really getting on with its normalization process. really getting out of china. that is a big factor holding the fed back. david: so what is the exit strategy if you are a central banker? so that you are no longer the center of the world? ruchir: what has happened with the fed really is the donor has never been this widely used -- the dollar has never really been used this widely in the world. so if you look at the prevalence of the dollar in both transaction or you look at it in terms of the dollar debt in the world, the share of the dollar, you put all that together, and the dollar has never been this widely used. this is the big disconnect that the world is facing. the u.s. economy today is much smaller of a share than it used
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to be, about 25% of global gdp. but the dollar has never been this omnipresent. that is really what the fed is dealing with out here. ♪
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♪ alix: ma . i charted the deal count and volume over the last five years. take a look at the terminal, and you can see the follow-up we've seen in the last few months. the deal count is just under
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5000, it was under 7000 before. scarlet: the function, the blue bars -- and the pink bars show the principal payment. ramy: there are about 30,000 functions on the bloomberg, and we always enjoy showing your favorite on bloomberg television. maybe they will become your favorites, too. here is another function you will find useful. quic . here is a quick take from this week. >> swelling, public, private debt, heavy industry, and that is just the start. add an aging population, innovation, environmental deforestation, and corruption, the battle to contend with these corruptions goes over the provinces. it is playing out in different ways from the rich coastal region, no one knows all of this better than chinese leaders. so, here is the situation.
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in 2013, china completed a once in a decade transfer of power. xi jinping became president. he promised to reform into rebalance the economy. and then this happened. the economy ran out of speed. the shift from exports and manufacturing, services and consumption. it slowed to 6.9%. it triggered an ethic bust that that wiped out $5 trillion and caused the government to intervene. so what happened to embracing market forces? here is the argument. on one side, the imf and trading partners says the country needs to loosen if it truly seeks economic reform, and on the face of it, chinese leaders agree. the stock market reveals an instinct to shelve those
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reforms, reining in spiraling debt has become a higher priority in the quest to protect growth. yet, squeeze too hard and the whole economy comes down. ramy: and that was just one of the many quick takes you can find on bloomberg. you can also find them on along with all of the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. i am ramy inocencio. thanks for watching bloomberg television. ♪
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♪ john: hello, i am john mickelthwait. tony blair is the only leader to have won three consecutive general elections. he remains a controversial figure both in britain and the wider world. in an in-depth interview, i asked him at his role, donald trump, about jeremy corbyn, and about brexit. tony: i think we will remain. of course, it is a referendum. if you look at the opinion polls, it is very close.


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