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tv   Bloomberg Best  Bloomberg  September 10, 2016 12:00pm-1:01pm EDT

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♪ erik: coming up on "bloomberg best", the stories that shaped the week in business around the world. apple rolls out some sleek, if unsurprising, new products. saudi arabia prepares to roll back some costly projects. and the ecb's era of stimulus rolls on. >> we know they will have to . extend out the program. they have said that. >> we know investors love stimulus. it is a candy they cannot get enough of. >> central banks keep taking more action, but can they get a reaction from the markets? >> markets essentially are now ready to ignore the fed. >> negative rates are turning from being part of the solution to part of the problem.
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erik: and there is plenty for you to react to in our best interviews of the week. >> u.s. banks are more resilient than they have been in decades. >> i don't view china as the adversary. >> i think you have to talk fully and frankly about human rights. erik: >> it is all straight ahead on "bloomberg best." ♪ erik: hello and welcome. r.i.m erik schatzker. i am erik schatzker. this is "bloomberg best." your weekly review of the most important business news analysis and interviews from bloomberg television around the world. the week began with positive data from great britain. in a report that challenges the expectation that brexit will be disastrous for the u.k. economy. ♪ >> the u.k. services pmi numbers have just been released. a blockbuster number.
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we went from 47.4 to the 52.9. composite is 53.6. checking the manufacturing pmi , which was the biggest rise ever paid you have this gauge of u.k. services rising the most on record as well. >> i just don't know if i have learned anything at all. , the size of the fall we saw starting in june, nita lowey -- immediately after the referendum vote, followed by a bigger balance now, where does that leave me? that tells me the effects of leaving the referendum will come through after a long time frame of uncertainty while we try to hash out a deal. and we should not expect anything that happens in the first three or four months to tell us that anything. mark: should we tweak our forecasts for the current economy? it is adjusted the economy will contract and be pretty much flat in the fourth quarter. >> it does not feel like the
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economy will be heading into , the third quarter, negative territory. we just have to get away from the month to month volatility. we are learning more about the pmi surveys. they tell us something about direction, but the magnitude of the move in pmi does not correlate with the magnitude of the moves in the economy. >> bayer has increased its bid for monsanto. it is up to about $6 billion. it will be around $2750 a share. while it is well above its share price, there appeared to want more. it is about a five dollar pickup from the last bid, the original bid. >> from the original. vonnie: the share prices dropped, so it is more attractive even. what is stopping monsanto? from saying we accept? >> they have made it clear that they will not negotiate -- they
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want a 130 minimum to get to the table and try to get a proper deal done. so it is interesting as a playbook. >> is there any discussion about a hostile takeover? ed: there is some conversation. i think there is a low probability of that happening. bayer does not have a history of doing this kind of aggressive deal. and the other thing here is a would just be a difficult one to sell. there is a lot of regulatory stuff that could come up. it would be a mess. i think it would be hard for them to execute on that. >> let's talk about apple. the company rolled out updated products and features at an event in san francisco today. thatly, the new iphone 7, boasts an improved camera, faster processor and gets rid of , the headphone jack. the apple watch also got an upgrade. it's water resistant. it has gps tracking.
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but are these new product features, and even mario, enough analysts, investors and consumers? , >> the name of the game for this company is selling iphones. and they have developed an iphone that is a pretty solid upgrade. if the processor is twice as good as two years ago. if the power performance is twice as good as two years ago. the subtraction of the headphone jack gives more space for the battery. so the battery life is expected to be a lot better for this phone. it will have an adapter, so people with headphone jacks will be able to use that, and that will ship with every iphone. but no one will lose access to the accessories they already have. what we are really looking at with this device is a solid upgrade, which apple needs to do to stay the leader in this market. i think when they refer to themselves as the gold standard of smartphones, i think that is a fair statement from apple in terms of their technology, let
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alone the way their balance sheet or even income statement looks right now. they make so much money on these phones. that is what is so important. jonathan: expecting the rate decision any minute. the refinancing rate remains at 0%. the deposit rate remains at -40 basis points. and the marginal lending facility remains unchanged at 0.25%. the ecb saying qe will run for mark streit 17 or beyond, if needed. they say the qe is consistent with its goals. we were wondering whether we would get a firm signal from draghi and the ecb of a, extension, and b, will they widen the pull of assets? what do you make of that? caroline: maybe he wants some breathing space. maybe some risk diversion. at the moment, the data has not looked pretty. at the beginning of the week, we saw a 19 month low for eurozone
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growth. inflation still paling into insignificance. still, biding time, allowing himself to extend quantitative easing perhaps later into the year. 80% of the economists we spoke to do think we will see an extensive and -- an extension of quantitative easing this year, but clearly, not this time around. >> let's go to the bond market, shall we. the dominant story in global financial markets. yields higher, up five basis points. let us cross over to guy johnson in london and talk about the post-draghi fallout. guy: i think one mario draghi is doing, he is listening -- the ecb is listening to what is happening in tokyo. the boj is having a review. the boj is rethinking what it may do. the curve is steepening up. this is what we will focus on. we saw a wobble a few days back
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when there was the idea that may be the boj would not find the back end of the curve he of the curve started to steepen, and maybe this is what mario draghi will deliver as well. you effectively deliver a rate cut. you buy the front and/or push rates a little lower. great for the banks. let me turn to my terminal and show you what is happening on my bloomberg. this is the gr function for the stoxx 600. as you can see, the banks are really trading to the upside. the banks are outperforming. and look -- we have got, average at the same level of the european banks. the moving average is at the same level as the european banks. the banks could be a big day in here. that is what europe needs because this is the transmission mechanism over here. erik: we will dig deeper into some of these top headlines later in the program. what is ahead for apple, and what do the world's central banks have left in the toolbox?
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but up next, more business news from around the world. anhas been a rough week for asian shipping giant, which finds itself struggling in troubled waters. this is bloomberg. ♪
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♪ erik: you are watching "bloomberg best." i am erik schatzker. let's continue our global tour of the week in business with the meeting in china between russia and saudi arabia. these two countries pledged cooperation to stabilize the oil market, but that is easier said than done. >> saudi arabia and russia have agreed to work together to ensure oil market stability. but the leaders of the world's two biggest crude producers stopped short of offering detailed proposals. this is something being watched closely in the kingdom. the reality is as much as there
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try to diversify away from oil this is an economy that still , depends on it. the meeting between the deputy crown prince and the russian president vladimir putin clearly offering some support that they will look to further cooperation. at the end of the day, what the deputy crown prince was saying is that russia and saudi arabia are the two biggest oil producers. they need to cooperate if there is to be stability of the market. it comes down to iran. the russian president made it clear iran should be exempt from an agreement until it reaches the pre-sanction level of output. erik: you probably know saudi arabia is the world's biggest oil exporter. what may surprise you is it also has the largest budget deficit of the world's largest economies. it is intensifying efforts to shrink that budget deficit including canceling $20 billion in projects. put this in context.
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how much work it will be for this country to get out of. >> the budget deficit is huge. it is 50%. people are talking about trying to reduce it to 10%. that is outside even the european deficits. saudi arabia is a bit like a family that has been on a wild bender. the way you read about a footballer who has been paid several amounts of money and has never taken account of where it has gone. they have $70 billion worth of projects. they reckon they can get rid of $20 billion. every time the government talks about waste, they are often wasting their words. because there is less waste than imagined. in this case, the guess is there is quite a lot of waste. >> now hanjin shipping shares are having a rough time. the company of course the biggest container line in south korea. it has disrupted the consumer supply chain there, all ahead of
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the busy shopping -- the busy christmas shopping period. what is the outcome of this? >> we have had a lot of ships being stranded at sea, because the port is not allowing them to come in, or some of the vessels have actually been stranded at the port itself, because the vendors are demanding money. >> what is the government doing to help these disruptions? >> the government today announced that they are going to provide some sort of funding support to some of the vendors here in south korea, and also extend some of the maturity on some of their debt to provide some sort of ease in the financial restrictions. the company itself has also started to apply for court protection on its assets. outside of south korea. so hopefully, when these come into effect, some of these vessels will be allowed into the port to unload. >> hanjin shipping is jumping on
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news of assistance from the korean government. and its parent company p there are conditions attached to this helping hand, of course. >> we we're hearing from the thatg party in south korea the company could get 100 billion won in loans, more than $19 million, from the south korean government, but the parent company needs to provide collateral for that. there is an estimate that the company immediately needs 100 million won. but if you add in the unpaid cost, which includes, for example, fuel, hanjin needs around 600 million won. >> it is searching for a second session after it won credit protection. >> they want interim protection in shipping. what happens is that hanjin
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shipping's lawyers need to find more documents ahead of the final hearing on friday. this should mean that u.s. creditors cannot seize cargo or contents of hanjin shipping ships. they should be able to dock at u.s. docks. so the news of this temporary court order from the bank of secor is helping hanjin. mark: vw will buy a stake in foothold ingain a the u.s. trucking market. they are also attempting to refocus after the emissions cheating scandal. >> the truck business, the market overall is changing globally, dramatically. you have to be on a level to generate economic of scales and -- in a different field of technology. this is what we are doing. >> this is a real opportunity. we have made ourselves into a leaner, better run company. what we need now is scale. this alliance will give us access to that scale. >> is his move a good part on
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the side of volkswagen? >> yes. they have said they want to get away from all of last year. the truck business was one that was not really affected by the scandal. but navistar has had its own problems. problems with industry standards. they have not had profitability in a while. mostlast quarter was their profitable one out of 13 or 14. th we will have to see how this plays out. for now, they are talking about 500 million in synergies for the next five years. those numbers look good. >> chipotle is back in the news. -- quare it wants to talk to management about ways it can improve its performance. >> the idea that ackman is now taking a stake in the company, will that ease investors' concerns? >> he has had a tough year.
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this is the ultimate contrarian plot. everyone hates ackman now, and everyone hates chipotle. there are still a lot of questions. >> a lot of criticism has been levied at the composition of its bod. we have any idea what bill ackman and pershing square want to do? >> we do. calpers and the new york city pension have already weighed in on the subject. they think investors bet on 3% or more, and they should be able to elect up to 25% of the board. we think bill ackman could look to add a few seats on the board and get some operators in there. emily: shares of hp enterprise are not doing much on the back of the company's third-quarter earnings report, out after the bell. staying true to meg whitman's pledged to shrink, they are
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looking at micro focus. valued at $8.8 billion. tell us about what her message is this quarter, and what is hpe after this? >> hpe is really focused on infrastructure for the enterprise. if you take a look at what hpe have done over the last year or more, they have gotten out of businesses that were not strategic. look at the emphasis, the divesture they did from the old eds. then look at the merger. a lot of people, most of the people hpe had laid off, were associated with that services business. what hpe will be going forward is a company that is about $28 billion, focused on driving up either private cloud or serving the needs of the public cloud or serving the needs of enterprises across their campus, their branch office, and their data center.
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that means that hpe is about one word -- scale. >> the world's oldest bank has asked the ceo -- investors are seeking a change in leadership. to avoid a bailout. what exactly is going on? it has been a mess since day one. >> absolutely. the bank is at a critical last-ditch juncture. the issue is credibility and confidence. it looks like this came from potential investors themselves. and investors look and see someone new to carry off a risky capital increase they are trying to pull off. the risk has increased. but it is a catch trying to pay the risk has increased. francine: what kind of person can lead this bank? >> this is a real crisis it shoe -- issue. urgent. you need someone with good connections politically, a good investment ace. it is not just experience, it
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has to be someone who is a good operator and who has the faith of investors the next few months. ♪
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♪ erik: this is "bloomberg best." i am erik schatzker. are financial markets growing resistant to central bank stimulus? if so, where do we go from here? two highly respected economic thinkers discuss the credibility and effectiveness of central banks right here on bloomberg television this week. >> in the words of a european think tank, when markets do not trust central banks the central , bank needs to do less to the literate. that quote has captured the debate perfectly.
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markets do not buy it anymore. >> that is clever. i wish i had thought of it. it gets to the essence of the key driver of inflation is inflation expectations. if people believe central banks create inflation, they need to do less. you can interpret the fact that if they do a lot, they are fighting against the public's lack of faith in central banking right now. johnson: how will the -- jonathan: how will the central bank change the market expectations for inflation? >> we had a couple of things in the last few years including the decline in oil prices, the surge in the dollar -- that lowered inflation in the u.s. and lower oil prices. now that oil prices have probably bottomed out, then headline inflation will start to pick up. central banks are hoping inflation expectations will rebound on that as well. david: are markets as sensitive to central-bank statements as they were a year ago? richard: that is a great point. i think they are less sensitive,
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because to be honest, the fed has been all over the map. markets, now, essentially are in the mode to ignore the fed, largely. not completely, but now you are looking at low rates, support of monetary policies and markets spend less time trying to reverse engineer fed statements. you, yellen quote has been rather passive at times. if you lose the market and you are the federal reserve and you desperately want to do something, how dangerous is that? david: i think it is dangerous. i think the fact markets are doing well by ignoring the fed may feel good in the short run. but is not a good strategy to take the other side. ultimately, there is a price to pay if the fed continues to wallow in uncertainty. >> is the fed losing some of its cloud, interns of influence -- clout, in terms of influence?
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and not just the fed, but also the boj, the ecb, the bank of england. mohamed el-erian: in general, the central bank community is becoming less effective but within that, there is a huge variation. on one end is the bank of japan which in my view is not only ineffective but also counterproductive. and on the other end, the fed which is still effective but not as effective as before. they need that the bank of england and ecb in between those two. jonathan: let us talk about the boj. how so and does that change? mohamed: it takes interest rates negative and it sees the currency appreciate. why? it is starting to trigger the counterintuitive reactions of individuals and companies. and that tends to happen at extremes. so negative interest rates, at some point, they encouraged savings. how do you get that counterintuitive reaction without going too far? jonathan: this does not just
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have to apply to the bank of japan. low interest rates, is that the problem is no longer the solution. there's any to be a complete central-bank rethink on the effectiveness of low rates in this environment? mohamed: yes. ultra low rates are now part of the problem. in some countries, they are a problem already. japan being one of them. erik: coming up on "bloomberg best," more of the week's interesting interviews, including a conversation with canadian prime minister justin trudeau. this is bloomberg. ♪
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♪ you are watching "bloomberg best." i am erik schatzker. among the week's most provocative interviews on bloomberg television, the oecd
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pleads with g-20 leaders to employ different fiscal policies. and mike mayo assesses the level of panic at u.s. bank. let's begin with strong words from the canadian prime minister. justin trudeau wants to buck the populist backlash against free trade. he told our angie lau doing so will not require of access bill -- on acceptable trade-offs. trudeau: canada is a country that needs to draw in foreign investment. we need to draw in global investment as a way to be able to properly develop our resources in a way that will create resources in canada. we need to think about it in terms of the benefits, the labor standards, the environmental impact. we need to analyze every deal and have a high degree of confidence that it will be mutually beneficial. but i do not think anyone can
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imagine that we would do better by closing ourselves off from the world. angie: how do you engage that balance? because human rights is very much dear -- near and dear to the hearts of canadians and the global community to many of us, and that it is part of our social heritage and our social roots. at the same time you are trying , to engage with china more in economic interests. how do you balance that? is there a trade-off? p.m. trudeau: i don't know if i like the word "balance." because balance makes it sound like you are making a trade-off. say ok i will pull back on human , rights to be able to do this -- i think you have to talk fully and frankly about human rights and engage and talk about the challenges. angie: did you do that in beijing? p.m. trudeau: i certainly did. i do that in private and public. friendly,as part of,
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canada's identity and appeal to a certain sense, we are very frank about our positioning and our strength on the values that make us successful. values of openness, inclusion, creativity, different perspectives. all of those things are a strength. and at the same time, we are looking forward to engaging in ways that are mutually beneficial. and i do not think you have to choose. what is working in the u.s.-china relationship now what , is not working that you would try to change as president? >> well, i think we need to join arms with china to deal with north korea. so diplomatically, that is something we have to push for. free trade. i absolutely believe in free trade. i believe tpp does not include china, but i do not view china as the adversary. i do not view them as an adversary. >> do you view them as a military threat at all? the current government?
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>> no, i would not see them in that respect. i think it is an interesting time because of where xi jinping is. i was thrilled that he is not a from theuide, coming reformist government, coming from a more maoist guy. i thought xi jinping would want to steer the country in a more western orientation for economic purposes. i still think that. but along the way, he has decided the communist party is number one. it has to be protected at all costs. so we have the huge anticorruption probe and being responsive to what the people want about the smog in beijing. those are two things he is pushing very hard. so i think there's a lot to work with in terms of making him look good. and i think we can engage productively on that basis. >> i think we are seeing the tip of the iceberg, also, in
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government controlled economy, and it will just get a whole lot worse not better. >> there is a, today, much greater awareness of the fact that one way to get out of this very mediocre, very undesirable outlook for economic growth is to use what we call the fiscal space and spend more, as long as that expenditure is done on investments, which are carefully chosen, which will have a big multiplier effect, which will create better productivity, and which, eventually, after going through a period of more public expense, will generate a lower debt to gdp ratio. >> who is doing the fiscal side right? angel: today, you have, among
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china, the net's states. you have japan, canada. just to name a few, the u.k. itself, which has decided that, using the fiscal space they have, they can move ahead. shery: how does brexit complicated the slow growth environment? angel: a complicated indeed. record in april, saying that this will have severe costs and consequences, mostly for the british. it is turning out to be like that exactly. it is also having impact on uncertainty in general, because, you know, the u.k. is a large economy. ag 20 economy, g-7 economy, etc. it is also because it have to do with the broader concept of europe. what kind of deal is struck with europe going forward including , negotiations with the u.s.,
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which become more complicated when the u.k. is considerably no -- conceivably no longer going to be a member of the eu after 2019. tom: what is the level of panic, michael? i want to know right now. we are back on the labor day, we need to figure out next year's budget. we have to go to bonuses in february. do not kid me. they are sweating bullets at the too big to fail banks. don't tell me they are not. michael: there are different ways to sweat bullets. on the one hand, the banking industry is healthier than it has been in decades, based on the strength of their balance sheets. no one is sweating about anything failure of u.s. bank. tom: agreed. michael: on the other hand, you still have the worst revenue growth in decades. worst revenue growth in 80 years. if you are not making it on the top line, the only way to make it on the bottom line is to better control expenses, which is reduction in headcount,
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reduction in compensation. tom: you have done the math. bring up the charge here. the two sets of two big to fail banks. you have jpmorgan and wells fargo. wells fargo in yellow. jpmorgan in white. down at the bottom are the laggards. bank of america, citigroup. will that ever narrow, or will this go on and on, this massive difference in performance? michael: we are much more positive now on the large banks. once again the banking industry, , the u.s. banks are more resilient than they have been in decades. they have more utility-like outcomes. tom: but the revenues are not there. they have to cut costs. right? michael: but they are making headway piece by piece. anything with outcomes like consumer staples or treasury bonds, those valuations have gone up. the banks are starting to get credit for the reduced risk profile. the improved risk profile. there are two sites.
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one side is less revenue, and the other side is dramatic risk reduction which should give , banks higher valuations. ♪
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♪ erik: welcome back to "bloomberg best." i am erik schatzker. let's return to one of the week's top stories. apple's introduction of the iphone 7 and series two of the apple watch. are they worth the upgrade? you decide. here a bloomberg television we , focused on the bigger picture at the world's largest company. >> where are we in the cycle? you have talked, and your commentary, about there is a gloom and doom cycle that has engulfed apple's story for a while. there is increased seasonality around the iphone. where does apple see us situated? >> i think what we saw was a solid upgrade. i think there will be a nice
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upgrade cycle here. it will not be the size we saw with the iphone 6, in terms of the growth, in december .14. we are looking for growth in the second quarter of fiscal 2017. we are looking for iphone unit growth as well in fiscal 2017. >> do people buy this time and the next time? i have been asking this all day, because i find it fascinating. this is the time to upgrade you , are going to want to buy one next year, most likely, too. brian: with technology, this is the issue we always have. we could always wait and get the better product next year. and it is the 10th anniversary, so iphone 8 will probably be a big deal. but a lot of people have a we cannot wait. remember, apple saw a 7% growth in iphone units in 2015. if someone rushed in i think 2014, there is an upgrade cycle. i think we are looking for 5% growth in fiscal 2017 and growth and iphone units.
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we are not looking at 37% like we saw in fiscal 2015. emily: will these updates be enough to reverse two consecutive quarters of decline? >> there are a lot of installed base on the iphone 6 and iphone 6 plus. if they hold true, they are in line for a upgrade cycle for the next two months to seven months. it is a big upgrade. the other thing is the installment plans. it is a big thing they are bringing the installment plans to china and the u.k. that is a significant move for a lot of customers in these markets, who have now seen year-over-year increases and think it might be time to join this program, and that this program makes sense. >> is a going to be enough to play out favorably when it comes to the chinese? how will the subtle redesign play out there? >> the chinese consumer likes whizbang. the iphone is not just accumulations tool. it is an accessory. it is a statement, of sorts, of
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your wealth. will chinese consumers pay the premium for a phone that looks the same but is a little better on the inside? probably not. there are more phones that have basically the same features but sell for much less. i think, within the overall issue with the new iphone, the bigger challenge is going to be in china. >> super mario was also featured at the apple event, and that was almost a bigger deal than the iphone itself. >> it is a huge deal. nintendo -- not a lot of people realize this, but they don't have any mobile phones. nintendo likes to keep control of its software and hardware. that is why you have not seen super mario games for smartphones. that has just changed overnight. super mario is coming to iphone. and so that is definitely something to watch. >> obviously, apple is making
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big moves into india. do you see india picking up the slack? abouto india be as big buyer of iphones as china has been? picking up the slack? -- >> i think it is a competitive market. it will be difficult for apple to make a wide push into india and get major traction. i think it is the lower-priced products that we have seen up until now that will really be the lead product for apple in india. that is a very price price-sensitive ace with a lot of competition. >> did it get done what tim cook needed it to? >> for now, they deliver on the expectations. it is an iphone with some minor improvements. but what they have done successfully with this launch is some differences between the plus release and the other release. they can make the product to the
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upper end. >> if you take everything apart from the jack, which is controversial, aren't they just catching up with samsung and what is already in the marketplace? other people are already doing these things. >> absolutely. we have got to a point in this industry where the technology, where all of these players are moving three to six months behind each other. it is not at a point where we have seen any revolutionary features. which, if you years ago, we would have seen. so at some point, apple needs to deliver around -- a big step up in functionality. at this point, the smartphone market is not a growth market. it is more of a placement market. erik: monetary policy was once again front and center this week with the thursday meeting of the european central bank. while the bank left its three main interest rates unchanged,
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there was plenty to discuss about the economic outlook and the debate over more stimulus. jonathan: for market participants, it is a case of expectation versus disappointments. read between the lines. come on. what is the bottom line? >> it sounds to me more of a situation where they have come to the conclusion that more qe would not help. he kept referring to the g-20 communique and fiscal policy. fiscal policy needs to step up to the floor at this point. at the same time in europe, you have austerity measures dampening fiscal stimulus. i don't think i know where he thinks this growth is going to come from. qe has been pushed back by central bankers around the world as we have kind of done as much as we can. it is someone else's turn. and someone else is the domestic governments. >> draghi made it pretty clear,
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in an indirect way, that the council is not satisfied with the underlying trend in inflation and they will keep , purchasing assets until they see the path of inflation back and a sustainable direction. the direction of the target. so no move today. i think the forecast of 1.6% 2018 -- that2 is not in line with the target. that points to an extension at the december meeting. jonathan: we look at where expectations are. they are somewhere here. and we look at an extension of qe. you look at the statement. is that another round where they can get over the hurdle? >> it looks like there were a few it expectations of actions today, given the small selloff in the market. those expectations will be carried forward into september. it is hard for the ecb -- the ecb cannot control the market expectations.
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draghi is doing a pretty good job at not sending any signals. he is playing close to this -- his chest. they are still pricing in an extension and a cut. i think we will see that. so no big reason to be concerned about what will happen in december. >> they are clearly disappointed the ecb did not extend the bond buying program. yes, it set up committees to address the scarcity of bonds that the ecb can buy. does this tell us that investors are addicted to central-bank stimulus? the euro rising, and stocks falling? robert: certainly. we know that investors love stimulus. it is kind of a candy they cannot get enough of. they also like certainty. i think the term draghi used --
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"study options" -- is incredibly wavering. mark is around the corner when the bond buying program stops, and they are saying no way, he will have to do something else. so words matter. i thought his wavering was not the right approach. i think it is clear they will continue some sort of quantitative easing. anytime you say gdp growth is going to be 1.6% to 1.8%, which i think is the eurozone -- you cannot say wow. based on inflation, you cannot say wow. based on volatility, you cannot say wow. we know something else will have to happen. >> were the ecb right in keeping its power today? >> at least to extend the program out six months to september of 2017, basically change the modality of the bond buying program. we know that some central banks, particularly the bundesbank, have a shortage of paper to buy in the secondary market. that is an issue. we have been here before where the ecb has failed to deliver. what simply happens is you get a
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keynote speech by the vice president probably in the next few days followed by an interview by the chief economist of the ecb. they lay out a grand plan. and they will look at something happening over the >> the fact 20th. that they are setting up these committees to study the bond buying program, does that preempt measures in the next few months? a subtle one. >> it is a subtle one. the pattern has been here before. the ecb is not often ahead of the curve. it is often a long way behind. we know that they will have to extend the program. he has basically said that. it is subtle changes around the edges. they can delay any major decisions until the 20th of october. on the day, slight disappointment. we have been here before. the program will be extended out. and he will be doing other things as well. ♪
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♪ >> we have a function on the bloomberg. it shows 79 of hanjin's ships, 61 container ships. it shows where a lot of these are located. the clusters, when you zoom in on them, they separate out so you can get more detail. exactly where these vessels are sitting. erik: there are about 30,000 functions on the bloomberg. of course, we always enjoy showing you our favorites here on bloomberg television. maybe they will become your favorites. here is one function you will find useful. go. it takes you to quicktakes, where you can get important context in timely topics. vonnie: immigration in the u.s. is broken. in a politically divided capital
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where democrats and republicans agree on little, they do agree on this issue. the question is what to be done about it? here's a situation. ut 11 million people liveillegally in the united states after crossing the border or remaining in the country after their visa has expired. in june, the u.s. supreme court was divided over president barack obama's executive order, that would have shielded as many as 4 million unauthorized immigrants from deportation. there was an appeal for ruling, that said obama overstepped his authority. in the presidential race, democratic nominee hillary clinton says she would enforce existing immigration laws and provide a pathway to citizenship. republican nominee donald trump has proposed "real immigration reform," including building a wall between mexico and the united states. here's the background. ronald reagan was the last president to win passage of major immigration reform. in 2012, republicans focused on
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-- republican candidates focused on deporting the undocumented, numb a candidate opposed a path to citizenship. 71% of undocumented immigrants cast their ballots for president obama. here is argument. democrats are more or less united, while republicans are split. the highlight -- border security is the only thing that needs to be addressed, but there are conservatives who approved of offering have to legal status but not citizenship, said paul ryan. immigration will complete the alienation of the growing number of hispanics. -- hispanic voters. erik: that was just one of the many quick takes you can find on the bloomberg. you can find them on bloomberg.com, along with the latest business news and analysis 24 hours a day. that is it for "bloomberg best." thanks for watching. i am erik schatzker. this is bloomberg. ♪
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♪ haslinda: hello, and welcome to "high flyers," the show that gives you a 360 degree view of the world's business elite. today, we meet someone who could truly be called an undercover operator. a man breaking boundaries in a woman's world. our high flyer has taken his family's lingerie business and built exclusive market brand. lets meet christopher karam.

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