tv Bloomberg Best Bloomberg June 19, 2016 5:00pm-6:01pm EDT
>> coming up, the stories that shaped the week in the business world. disney opens the gates on a whole new world and shanghai, and central banks weigh delicate decisions. >> lower for longer -- i repeat -- lower for longer, everybody. shery: oil prices sink again, but as the market tottering towards balance? with a brexit vote days away, the financial vote -- the financial world braces for impact. >> short term forecast have already been partly very wrong. shery: plus, former president
bill clinton responds to the shooting in orlando. it's all straight ahead on "bloomberg best." hello and welcome. this is "bloomberg best," your weekly review of the most important is this news analysis and interviews from bloomberg television around the world. this week began with a block west tech story as two of the industry's most prominent companies agreed to team up. >> it is merger monday, guys. microsoft buying linkedin, valued at $26.2 billion, $196 a share, a 50% premium to friday's closing price. you are iron up. you were totally shocked at the
steel. >> absolutely. one would have thought they would go after salesforce or a traditional software company, but this was truly out of left field. >> microsoft, next to amazon, has the biggest operational cloud infrastructure, tons of data centers all over the world operating at very high efficiency at very low cost and used by all kinds of businesses around the world. linkedin is very much a front in of a cloud application, something people actually do with a cloud software product. yes, they put their resume up and yes, people -- hr people will use it, and more important like, sales use linkedin to find people to sell stuff to. microsoft is getting a front end to their backend in terms of using business-focused software. it's very interesting what they can already do with that right off the bat and what they can develop over time.
emily: what will that process be like, and having to you make sure this does not turn out like a new kia -- like nokia or to some extent even skype? >> this is writing the technology wave of the future. this is something that we can differentiate, and when i look at the different -- at those dimensions, this checks all those boxes. >> polls from three companies all place the leave campaign ahead and come on the same day as "the sun" newspaper, u.k.'s best selling newspaper, backed the brexit. which numbers should we believe and which should we not? >> it seems clear, but numbers move towards leave. we are looking at polls, and about 48.5% for remain and 51 point five for leave. it's not a large percentage, but
it is there. even the firm polls are narrowing. >> they are starting to clear the possibility of a brexit a little more. >> the concerns are finally beginning to climb through -- come through. that is showing clearly and developments and currency markets, primarily, but also bond markets. >> the 10-year, again, to compare and contrast with a german-10-year, and seen, which has moved mightily in the last 60 minutes -- there is -0.02 -- that's not the two-year, that is the 10-year. francine: this is key to psychological impact, the first time the german negative. a reminder, it is the 10-year. it is not supposed to go into
negative territory. i know we were expecting it, but again, this is in none of the textbooks. >> no, but go back a few years and negative interest rates were not in the textbooks. as an economist, it is interesting to see how the world and our understanding of economics is changing quite rapidly. in a low-inflation world, bond yields, even long term will be lower, and it will therefore not be unusual for them to slip from time to time below zero. >> no change in interest rates. i repeat -- no change in interest rates. the fed in a unanimous decision is holding. what is more important is the outlook, the outlook for rate increases, the jobs, if you will, and another big shift by the fed to lower for longer.
i repeat -- lower for longer. a majority of the fed voting members still anticipate two interest rate increases by the end of the year. six now favor only a single 25 asus point hike. recall in march the last time we saw them, only one member of the fomc was that dovish. plus, the committee now expects to raise rates at a slower pace in 2017 and 2018. >> the longer run fed funds rate was cut to 3%. is this an admission that the cycle we are in right now is different than what we have seen in the past and that interest rates overall will not return to what we think of as normal? >> that is absolutely the case. this is an enormous
acknowledgment by this fed. in 2002, when they started, it was at 2.25. it is now at three. this is what we called the new neutral for monetary policy. >> numbers have just come through. no change in the annual rate and monetary policy, staying with that ¥80 trillion stimulus program. this is probably essentially what the market was expecting. because of the fact that we had the fed meeting this week and, of course, the brexit vote next week, many were expecting the governor at the bank of japan would hold also. it looks like they have been keeping that stimulus rate at ¥80 trillion. >> the thinking among economists we have spoken to his there's reasons to delay both internally, given that they are trying to allow the negative rate policy -- to gauge the effect of an negative rate policy on the economy, and secondly, there is an election coming up in july here. there's also the global market uncertainty, and with the brexit vote next week, there's thinking that if the doj were to ease today, the effects of the measures could have been undone
by a brexit vote that then caused the yen to strengthen. >> just got the bank of england rate decision. i want to bring it to you. unchanged on the asset purchase program but so much detailed to get through. the bank of england continuing to warn about the risks of a brexit, saying it could affect the economy, push the power down sharply. that's the headline. we've got the minutes. as you say, no change. .5%. it says it does have the stability tools to deal with a brexit, to protect the banks. investors are asking if sterling falls and inflation shoots up, does the bank of england have to hike rates? it is improbable. a cut is much more likely. it is possible a brexit could cause adverse spillovers to the economy. >> still digesting the killing of him.
-- of mp andrew cox. >> both campaigns have taken the sidelines today. the imf has delayed a report, so tonight, a couple of polls that we do today have been pushed into tomorrow. maybe over the weekend. david cameron is scheduled to appear on tv sunday night for a look at the sunday morning news shows. i expect over the weekend we will see a slight return to campaigning but probably not campaigning as we have seen to date. >> the st. louis fed president saying he is the missing. -- the missing dot we have been worried about.
in a statement, bullard says the st. louis fed is switching to a new forecasting style that does not incorporate a long-run interest rate rejection. does this make a difference? >> i think it is a remarkable admission that growth is going to be low as far as the eye can see and inflation is not going to be a big threat. all along the lines, particularly last year, there has been a debate -- is the market right? is the fed right? it looks like the market has been right for quite some time. to an half years out, he is admitting they really have no predictive power over it, so stop pretending you do. they have been serial overestimating growth, inflation, and the path of interest rates, so perhaps it would be constructed to say let's stop pretending we know things we do not know. >> still ahead, a silicon valley legend sees more tech mergers in the pipeline. up next, a business spectacular comes to shanghai. plus, the bigger picture for yahoo! comes into focus. ♪
shery: this is "bloomberg best." our global tour of the week's top as news headlines continues in china where investors and government of the chills waited to learn if msci would add mainland global indices. >> chinese stocks have been denied entry and a sign international investors still are not entirely comfortable with mainland markets. was this a surprise? >> it was certainly a decision that divided investors in the run-up to it. we did have goldman sachs describing a 70% chance this was going to happen. there's no doubt that china have increasingly taken more and more steps to try to address some of
the issues, but at the same time, i do not think that to live through the intervention and everything that happened in china's markets over the past year -- it was hard to imagine that could really be forgotten by global investors and the such inclusion would be accepted this time around. >> there's still a lot of concerns. >> yes, there are still accessibility issues. there's limits on the amount of redemption that investors can do on a monthly basis. that is something that, you know, we expect china to do more about, but i think the broader issue is the credibility one. it is a time when global investors are not comfortable with being compared and that could hurt their reputation. >> the u.s. supreme court has struck down puerto rico's debt restructuring law. the law will not let puerto rico public utilities restructure their debt over the objection of
creditors. some justices did end up coming down on the side of the bondholders, but they've not necessarily say that was the motivating factor in their decision. >> this is the question of federal bankruptcy law. the court was deciding if congress let's puerto rico enact the recovery act. if puerto rico were a state, they would be no question it could authorize its municipalities, including municipal utilities, to file for bankruptcy, but the supreme court says puerto rico does not have that kind of flexibility. >> where are we when it comes to legislation progressing in congress? you have this federal oversight board. what is happening? >> the house has passed legislation that includes that board, and now it is a matter for the senate to take up. had the supreme court ruled the other way, that might have rattled that process a little
bit and changed expectations, but now the bottle's tote -- the ball is totally across the street in congress's court. >> fanduel and draftkings are said to be in talks for a merger. do we know how long the talks have been going on for? >> there are reports talks have been going on for about three months, but you are right -- this has been a long rumored and discussed merger sort of behind the scenes, but things have gotten more serious. these companies have been in the news a lot over the past year or so. first, all the publicity was very good. both of these companies valued at over $1 billion. they are unicorns. then things fell apart after government darted looking at both sites as potentially illegal gambling sites. these companies now have lost quite a bit of valuation since they have gotten into some potential legal trouble. those troubles are still working
their way out here. however, part of the merger talks would have to be that maybe they are in stronger company as one. >> alibaba has proved its first financial forecast -- or provided, i should say its first financial forecast as they went public and predicted growth to rise a whopping 4%. how achievable is it for a company which is so huge already you can >> it's absolutely achievable. china's economy, of course, is slowing down a little bit, as we know, very big, and they got their fingers in a lot of highs in the economy, but what really makes it achievable -- this is an estimate or forecast from alibaba that is ahead of what analysts actually expected.
the way they get there is they are sitting on buckets of cash. if they want growth, they can go and buy growth, to put it bluntly. if they want to reduce the numbers and get topline growth out, all they have to do is pull at the check book, by some company that can give them growth and they will get to whatever number they want to get to. >> let's turn to the bidding war over yahoo! now. private equity firm tpg said to be among three groups competing for the company. are any of these surprising to you? >> yes. who are sycamore and vector? these are names that have sort of come out of the blue, but i have been able to piece it together over the past 84 or 48 hours. they are unusual names, not just because you may have never heard of them because they have not been reported before, but vector, really -- their expertise is middle technology firm. yahoo! is a huge bet with them. and to come are usually does retail deals, so it is a little
unusual that they are still in the mix here. i am told that they are a long shot, but all of the bids that have come in our between almost $4 billion and $6 billion, meaning that they are there. along with advent and tpg. >> do you expect it to accelerate? could we see something of a bidding war erupt now? >> i think it strains credulity to some degree that you would see a wild bidding war break out, but you have at&t and verizon still here. i have said all along if verizon wants to buy yahoo!, verizon will buy yahoo!, so in the end, a lot of this could he seen in a lens of there's a bunch of readers out there to try to get to a point where yahoo! is comfortable with verizon. will verizon buyout for that price? if yes, verizon wins. if not, one of the others wins. >> at the cost of $500 billion, disney finally unlocking the gates to its shanghai version of
the magic kingdom. this looks like -- well, i'm not going to say it is a surefire hit for disney, but it is certainly at the moment pulling them in. >> 600,000 visitors they have had already just in the test run days. they are hoping to get 10 million, 12 million visitors a year. i am in the pirates of the caribbean theme section. the ship behind me complete with noise affects and canons. the kids love that. just behind me that you may be able to make out, the disney castle. they are very proud of it. the biggest and most interactive castle they have ever built. my producer tells me they have all the princesses in that one castle, which is apparently very exciting. there are 16 parks and also themed areas of the park and also the fastest roller coaster disney has ever built called tron, and a tricky "alice in wonderland" area as well.
bob iger says this is him putting a stake in the heart of the market here. you can expect it to double by 2020. >> volkswagen's chief executive is laying out his grand vision for the company as it tries to recover from the emissions cheating scandal. what do we know then about this big strategy overall? >> some of the hard numbers volkswagen has given us our in for example returns on sale. the plans to boost that, not a huge game. it also plans to put out more electric vehicles.
30 by 2025. and it wants those electric cars to be about a quarter of all of its total sales by that year as well. it does not even have one electric vehicle from audi today. investors are that nonplussed, i would say. the other part of the plan is it will cost about 10 billion euros to pull up, so they are already dealing with more than 16 billion euros in cost to deal with the diesel cheating scandal. they say they will spend another 10 billion to switch over to a ride hailing self driving electric car sort of future tech mobility services company, but the one cost they will really scale back on is in research and development, which really boggles the mind if you are looking to make headway into new technology. ♪
investors and analysts search for signals that the market is finally headed towards balance. with the outlook for oil? let's check out the discussion throughout the week on bloomberg television. >> new york trade in crude has fallen for a third day. the number of rigs has really broadened in the u.s.. what exactly is going on? iran says it plans to boost production by nearly 7 billion barrels a day. is it down to the u.s. numbers or the iran story today? >> that's a very good question. it seems like on the demand side, things have been holding up reasonably well. we've seen good demand from china and good demand from
india. we've seen u.s. drivers returned to the highways and all go on summer road trip vacations, but we do have two major forces. we have seen iran restart production faster than a lot of people expected. they are now making something like 3.8 million barrels a day, which is, of course, feeding into supply. there is some debate over the accuracy of those figures, but bear in mind, they have come on board faster than a lot of people anticipated. when it comes to u.s. shale, with oil over $50 a barrel as it has been, we have seen some of those rigs come back on board, and this is a big test case for the theory of u.s. shale as the new spring producer. so far, it seems like that. as bearing out, based on at least the slight uptick. we will have to see if that continues. >> francine, you have breaking news. >> yes, this is out of opec. it kept estimating for supply and demand unchanged in its monthly market report, but opec
predicting global oil markets will be more balanced in the second half of the year as demand rises. this report is interesting because it comes ahead of that all-important iea report. >> yes, opec is giving us a final preview of how the year is looking, and they are seeing a more balanced market. it is moderately bullish, i would say. a balanced market toward the end of the year, but the key will be tomorrow when the international agency releases a first estimate, and that's probably when we will see non-opec supply potentially next year having a big impact. >> i would assume the history of opec guesstimates is a little shady. our markets clearing? >> know, the markets are not clearing. i would say opec has actually a good track record. usually, they are very concerned -- conservative.
they usually take a very conservative view of demand. usually, they forecast on thing lower than actually happens. basically, the market is going to get balanced. what is happening at the moment, certainly, we need a tough voice and higher oil prices because demand is accelerating in the united states but also in india and certainly at $50, we're not going to create enough supply to meet the demand when we look forward in 2018, 2019. >> oil has climbed as a global glut is trimmed. what does more balanced mean to you? are we at equilibrium now? when will we be at a deficit? >> i think we will be at equilibrium pretty soon. for the third quarter, we are expecting a deficit or an
inventory drop. we expect that four out of the next six quarters are likely to see inventory growth. the market is absolutely coming to a balance, and it's coming to a balance as you just said, more quickly, as a result of a rash of supply disruptions from some expected and some unexpected places like canada. >> what does that mean for u.s. production? how much more production from shale will we see? >> we think at $50 a barrel, $50 to $55, we will see an increase in the completion of drilled but uncompleted wells. we think that will slow down the decline in u.s. productions but not reverse it. >> last week, we saw something pretty amazing. u.s. production actually moved up by 10,000 barrels a day. it's not the craziest thing in the world, but my point is when we see these rallies, our producers responding? >> again, what is the price
point at which it does respond? at what point does the investor really start to wrap up? >> around $50, people start to hedge. everybody is stuck -- is struggling with the question that you have such a big hit, what has happened to the service people, the people working in the industry when they come back. in that $50 to $60 range is when you start to see u.s. supply going up again. we are down now basically one million barrels a day from where we were in april 2015. >> we're talking a lot about supply but the big question mark appears to be demand. shale only produces 5 million barrels a day. demand is over 95 million barrels a day. what long-term price do we need to see to meet that strong demand? >> i think to meet demand growth, it's not going to happen with $50 and probably will not happen with $60. for investment to really get
going, it probably needs to be $70 or $80. between now and the end of the decade, we are looking at world oil demand to increase by 5 million or 6 million barrels a day, and you have to replace decline, so you need a lot of investment. at these levels, you are not going to get it. the bottom line is that two years from now, the oil market could look quite different than it does today. >> iaea cutting the estimate of oil oversupply, seeing the markets balance in 2017. remember, a lot of economists just six months ago were expecting the market to rebalance in the second half of this year, so the iaea in this latest monthly report for the first time that we hear about 2017 sees the market balanced in 2017 and cuts the estimate of oil oversupply. >> we share the idea that the rebalance will be there. our projection, our plan is still conservative. we're talking about 40 this
year, 50 next year, 60 2018 and 65, but we feel this rebalancing going on. >> this basically shows you in what the u.s. recounts the number of bricks that have come back online and the white line is the price per barrel between 50 and 65. is it stuck now? >> it is possible. but the rebalance is there. this is the good news. >> the last time you really weighed in on the oil market, you were talking about how we had swimming pools full of oil and that would weigh on prices. has anything changed? >> i think it's getting close. i think it will be by the end of the year we will get back into a supply and demand balance on a daily basis.
that will firm up the volatility somewhat, and we will still have stocks we need to work off in the next few years, but there is a big difference in what they are continuing to fill versus starting to drain. >> at what point does shale continue to come back online? >> shale is shale. in the heartland, they can produce economically 30's and 40's and 50's, so it is not an exact on/off switch. >> we do you see oil prices by the end of the year? >> the big variables are geopolitically, but based on the fundamentals, i think we will be 50 at the end of the year and next year, 50 to 60. shery: coming up, some of the week's most interesting and contentious conversations about brexit. plus, a former president discusses what can be done in the aftermath of the orlando shooting. you are watching "bloomberg best." ♪
shery: this is "bloomberg best." this week on bloomberg television, we heard many competing opinions on what the brexit decision could mean for the british economy and global financial markets. let's begin our roundup with the u.k. chancellor who made the case for staying in the eu to bloomberg's london chief, simon kennedy. >> obviously, there will be investor concern if the population votes to quit the eu. it is very important that people understand that written is stronger being part of a big international single market as we are as part of the eu.
>> despite those declines in the polls we have seen in recent days, there still seems to be uncertainty and markets regarding if the brexit will actually occur. there are some views that it is unlikely britain votes out. is there still a sense of complacency? >> first of all, this is obviously an important referendum where every vote counts. whatever the markets say, in the end, it will be the decision of the british people. people or businesses who are concerned or investors who are concerned about the prospect of written quitting the eu should speak up. british telecom have done so today. many other businesses have done so in recent days, so this is not a moment for businesses to sit it out. people should speak out about what they see as the risks of quitting and the huge opportunity that britain remains in the eu. >> do you think that george osborne's budget predictions are a threat to brexit voters?
are you saying you think it is irresponsible of him in his position? >> i think there are forecasts -- the 2030 forecast in particular is absurd. most people do not believe you can predict what the economy is going to be like in 2030, and if you can, you should at least get the arithmetic right and used the correct numbers, which the treasury and mr. osborne failed to do. they have already been partly wrong because they have tried to talk interest rates up and the pound down over the last six months, and we have seen instead that the government interest rates have actually fallen. the brexit has not been there and it has not made british interest rates go up in the way that the treasury and mr. osborne were forecasting a few weeks and months ago. >> people were buying because they see it as a safe haven,
though? >> the point i'm making is the brexit is not the only thing going on out there and the brexit or's is not strong enough in the way that treasury said it he. so they were wrong about that and they are going to be wrong about the other elements of their forecast. they have not even been right about the pound. even after the speech shift in the polls, the pound is still higher today than it was then. >> across the firm, we are kind of brexit wimps. in one other way, we are explicit wimps. while we do not make a lot of big forecast, we do actively manage risk, and we have through our model raised risk estimates, as i think anyone would. no matter what position you have on, you might expect it to be more volatile and have much larger outcomes in the next few weeks.
i will not be able to tell people which way to that, but i will tell them to that carefully because someone is going to win and someone is going to lose big. the election is a whole separate topic. but i would say in the short-term, the odds of something big -- not even a certainty, but the odds of something big go up. if your conviction does not go up with it, you should take smaller positions. >> a week before britain votes on leaving the european union, polls show public opinion is too close to call. the market providing a little bit of a different view, a consistent expectation that the u.k. will remain. when markets and polls point in different directions, markets tend to be superior indicators. matt winkler, looking at volatility, judging the risky currency so far this year, and we can bring up the chart on the bloomberg. dan doubt, absolute return,
absolute move in implied volatility. the pound, the pound, the pound, the pound -- what does it tell you? >> it is telling you that the pound right now is riskier than the russian ruble, riskier than south africa, then brazil, then everything because markets do not like uncertainty. right now, a week before this vote, there is a lot of uncertainty. >> in the near term, this uncertainty -- and this is your point because the second chart i want to get to, one month implied volatility versus one year implied volatility. the one-month, of course, captured the big event risk, and that is the blue line. the white line is one year volatility. one year volatility has picked up, but compared to one month, there is a huge spread right there. what is it telling you? >> uncertainty versus certainty. one year, they are certain things will be just fine. there is no turbulence in the months ahead. you cannot have both at the same time, which means the market is saying there will be a vote, and
it will be to remain within the eu. if it was not that, you would see far more volatility in the months ahead, and that would be reflected in the one-year measure of volatility. >> when we look at the campaign and the fact that it has been suspended for a second day, will the tone shift because of that horrendous murder yesterday? >> we do not know all the fact yet, so we have to see how that will play out, but we are seeing a bit of introspection. everyone is recognizing this has been a very aggressive, very angry campaign so far, and this tragic event will give people cost to think about that. >> will that change the way -- how many people are still undecided? will that change the way we talk about the referendum?
>> i think it will change the type of message the campaign is making in the final few days. it will maybe be a bit less negative, less aggressive, less apocalyptic on both sides, but i think a lot of the are still undecided, do not have the information. but the question is if these voters will bother to go to the polls on referendum day or just stay at home because they cannot decide given the nature of the campaign so far. shery: another topic of serious discussion this week was the mass murder in orlando, florida. david westin sat down with bill clinton for an exclusive interview. the former president shared his thoughts on how the nation should respond to the attack. >> you have been in that job when there has been tragedies -- huge tragedies -- in the country. what can we do to avoid this going forward? president clinton: first of all, we need more help with intelligence work, with federal
and local law enforcement, with people who may be lone wolves. this is something that you know, you can go down to your friendly store and get an ar-15 and wipe out a bunch of people. we need tighter security on that. the other thing, which hillary said in her speech yesterday, is accurate to things we can do to harden our defense at home and increase our efforts around the world to include isis and other groups, but i was glad to hear the fbi director saying he was constantly asking himself if there was something else we could have done. that is what every american should ask, and we just have to all be on a higher alert. you cannot ignore someone you think is ranting and raving. it may be serious. ♪
shery: you are watching "bloomberg best." the day after microsoft announced its purchase of linkedin, bloomberg interviewed mark andreessen on stage at the bloomberg technology conference in san francisco. emily chang asked about the possibility of more m&a activity in the tech sector. >> a lot of public companies just sat back and watched all the drama play out on the valley and sort of the constant drumbeat. there's a lot of acquisitions that should happen that just did not happen. now what you find our big companies, which, by the way, most big tech companies have done quite well in the last five
years. they piled up lots of cash. they have to go shopping because they have to fill in gaps in their portfolio, and they can go shopping. there are not many better this big, but there will be a whole bunch. i think a lot of the big standalone -- for sure, american -- companies are in a good position to buy. the other thing is we are seeing a lot more of what we call nontraditional buyers, so a lot more fortune 500 outside of tech that are now going shopping. there have been a bunch of transactions and companies in the car industry have gotten inquisitive. clothing companies have started buying tech companies, so i think there will be a lot of acquisitions of tech companies by nontraditional buyers. we like to say that a big part of how we think about our
business is what a friend of mine calls the new york palo alto arbitrage. i think the new york view is that it linkedin gets bought, it makes twitter more likely to get bought. the palo alto view is probably the opposite, which is if microsoft is buying linkedin, they are probably not going to turn around and buy twitter tomorrow, so there is one fewer buyer. again, i think that -- i am positive there are big companies thinking about it. i am positive twitter is thinking about it. it will just depend and he who steps up. shery: this week, bloomberg television also turned spotlight on a fast growing young company that is taking advantage of the growing demand for activewear. the ceo of the company described the company's journey from small to big. >> we thought that activewear and the clothing that we work out in should not just be what we wear to the gym. it can be what we wear in life
and still look good and real good and perform as well as anything else in the market. relative to other brands, we are one of the few that focuses specifically on men's activewear. we wanted to live in a space that was not just active or lifestyle but really put them together. some people call that leisure. some people call it street sport. it is product at can transition from the gym and working out to your everyday life. we launched as a direct to consumer channel. when we decided to launch our wholesale retail business, we knew we only wanted to work with the best stores. part of that is because we really wanted to protect our brand. it is a challenge when you give someone else the ability to represent the brand for you, so we went to retailers that we trusted, that we knew, and that we shopped at. these are retailers like bloomingdale's and equinox in all 70 locations and nordstrom. those kinds of stores that we
know take good care of their customers, take care of their products, they represented the brand the same way we were. by the end of 2015, we had built a great is this that on a contribution basis could flow money to the bottom line faster than direct to consumer with. we do not have to have acquisitions and growth market and web development, so we were able to build a robust approach that encompasses wholesale, direct to consumer, and our own retail that we started to spend a lot more time on. we have done really well in our direct business, which is growing and is still kind of the bread-and-butter of what we do. our wholesale channel is great. we work with the best partners. we are launching a new category of textile technology that will revolutionize the way active performance performs in the gym and in general lifestyle. talking to .5 times recruitment and bacteria and odor protection over our existing technology, which has already won awards.
>> this is the call them i want you to look at on our global macro movers, a day of red for the fifth consecutive day. what we're looking at here, opening up 1.25% for a sharply softer open for the european equity markets is morning. shery: keep watching bloomberg television to learn more about our favorite functions on the bloomberg. here is another function you will find useful -- it will take you straight to our commentary section, gadfly.
when columnist tells us what she would really like to hear from janet yellen and the ed -- one columnist tells us. lisa: u.s. central bankers talk a lot these days. even their formal statements are almost six times longer than they were a decade ago, but there is one thing janet yellen and cohorts have been dancing around, and it's time they say it -- to meaningfully raise borrowing costs, the fed needs to openly coordinate with other central banks. in the past, the fed has had -- has never had to coordinate with peers around the world other than in times of crisis, but this is a new financial era where a lack of communication could set off a market tantrum that damages the global and u.s. economy. for that reason, the fed has been paying more attention to the rest of the world than ever before. after its march meeting, central bankers admit even though the u.s. looks pretty good, global
economic expansion development continues to pose risks. where are these risks? start with japan where people seem happy to pay for the privilege of lending to the government. then there's china, which cannot even reliably quantify its debt. then there is europe, which cannot seem to jumpstart growth, and the brexit vote is the risk that the european -- that britain could exit the european union. nations are pumping as much stimulus into their economy as they can and sometimes cannot afford to lower borrowing costs. results have been that the interest paid by government bonds has almond to record lows. it has never been cheaper for developed nations to borrow money, which takes us back to the fed, which moves us in the opposite direction. clearly, central bankers communicate to some extent, but it will be important for economist to have some sense of how these meetings take place. the u.s. cannot go it alone. the fed needs some coordination and support from fellow central bankers.
it should not be afraid to just say that. shery: you can find plenty of fast commentary on timely topics in the gadfly section of bloomberg.com along with all the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching bloomberg television. ♪
♪ emily: i am emily chang and this is the "best of bloomberg west." microsoft adds linkedin to the professional network and we speak with the ceo about one of the largest acquisitions in tech history. apple's blueprint for the next generation. the tech giant renews its commitment to the tech giant at the conference and ask developers to get in on siri. and the must watched moments from the bloomberg tech conference.