tv Bloomberg Markets Bloomberg September 15, 2016 12:00pm-2:01pm EDT
trump is speaking at the gamma club of new york. let's listen in. donald trump: every last american job and every american company, which a lot of american companies in this room, let me tell you, we are going to be fighting for you because you are bringing the jobs. that paved theon west, dug up the panama canal, and won world wars and put a man on the moon. it's time sister thinking big once again. that's why it's time to establish a national goal of reaching 4% of economic growth. and my great economists don't want me to say this, but i think we can do better than that. now they are upset. they will be very upset. i think we can do substantially better than that. working with my economic team, we put together a plan that puts us on track to achieve that goal over the next 10 years
the economy will average 3.5% growth and create a total of 25 million new jobs. you can visit our website. just look at the math. it works. this growth means that our jobs and plans, including our child care reforms that ivanka trump, my daughter, are so involved in will be completely paid for in combination with proposed budget savings. it will be deficit neutral. if we reach 4% growth, it will reduce the deficit. it will be accomplished through tax,plete overhaul of our regulatory, energy and trade
policies. right now, under the obama/clinton policies, the economy grew only 111% less order your and number that was shocking to people that do this professionally and for life. it translates into millions of lost jobs and certainly millions of lost good jobs. because we don't have good jobs anymore. those jobs are gone and going. this is the weakest so-called recovery since the great depression. over the last seven years, the economy only grew 2.1%, the 7-0 -- period in 70 -- 70 years. under reagan, it would have meant 10 million more jobs.
perhaps most shockingly, one in six men aged 18 to 34 are either in jail or out of work. meanwhile, another 2 million hispanic americans have been added to the ranks of those in poverty. on top of it all, the obama/clinton policies have doubled the national debt. it took more than 230 years for the united states to accumulate its first $10 trillion in debt. it took president less than eight years to add another $10 trillion. now, it would be one thing if that money had been used to completely rebuild our nation, our military, our infrastructure. but that didn't happen. instead, the opposite happened.
and, ined our debt return, we have dilapidated infrastructure, failing schools, a badly depleted military, greatest people on earth and they have a badly depleted military, its equipment old and tired. and another 14 million people who have left the workforce. soer has so much money but poorly and so unwisely. but we are going to turn that all around and here is how. it begins with bold, new tax reform. don't worry. they are going down, not up. they are going down. people were concerned they were going up there it -- going up. deeply code would be reduced and reduce the tax
brackets from seven to three. the new brackets will be 12, 25 and 33%. playncome americans will -- will pay knowing come tax at all parent our plan will remove millions and millions of workers from the income tax role entirely so that all of that work that we do in washington can be discontinued. tax, but they will pay tax when they start making a certain amount of income. , streamliningtes deductions, and simple find the process, we will add millions and millions of new jobs. in addition, because we have strongly capped deductions for the wealthy and closed special-interest loopholes, the tax relief will be concentrated on the working and middle class taxpayer. they will receive the biggest benefit and they won't even be close.
they have been forgotten. we are not going to forget them. they have built our country. we will not forget. thank you. this is a working and middle-class tax relief proposal. relief for these workers will be expanded by my child care proposals that i have worked on with my daughter ivanka. these proposals are central and are very, very powerful central element of our company tax reform and economic growth plan. be able to fully deduct the average cost of childcare from their taxes, including stay-at-home parents. because this deduction is capped , it will be disproportionately and it will benefit working and middle-class families. got to take care of our middle-class families.
largers you make, the share of your income you can exclude from taxation. parents will also be able to enroll a tax-free, dependent care savings account for their children or elderly relatives. low income households will benefit from both an expanded earned income tax credit in the form of childcare rebates and a matching $500 contribution further savings account. a married couple earning $50,000 per year with two children and 8000 dollars in child care expenses will save 35% from their current tax bill. that is a tremendous savings. and they'll have a better life. a married couple earning $75,000 per year with two children and $10,000 in child care, expenses will receive a 30% reduction in
their tax bill. by contrast, someone earning $5 million, like the people in this room, will receive virtually no change in their tax bill at all. one of our greatest job creation our 15% is going to be business tact rate, down from the current 35% rate, a reduction of more than 40%. i know that is what you people have been winning four. in explosion of new jobs. amazing.e you watch. it will happen. we will allow united states-based manufacturers to fully expense new plants and
equipment. big, big deal. on top of that, we will bring back trillions in business wealth and this is wealth that parked overseas -- overseas. no one knows how much it is. some people think it is $2.5 trillion. i think it is more like $5 trillion. they will be able to bring it back at a rate of only 10% instead of 35%. and who would bring it back at 35%? obviously nobody, because nobody is doing it. i think it is going to be something that will be so phenomenal, far beyond what people even think he erred by taxing it at 10% instead of 35%, all of this money will come roaring back into our country and lots of good things will start to happen. we will turn america into a new magnet for new jobs and that means jobs in our poorest communities.
so important. companiesnow, we have leaving the country because taxes are too high. but we actually have countries leaving -- companies leaving the country to get their money. and that's a first. nobody believes it, but that's happened. next, regulations. one of the keys of unlocking growth is scaling back years of disastrous regulations, unilaterally imposed by out-of-control the aircraft. regulations -- out-of-control bureaucrats. the regulation industry is one business i will absolutely put to an end day 1. in 2015 alone, federal agencies 3300 final rules and
regulations, up from 2400 the prior year. every year, over regulation costs our economy two dollars trillion a year and reduces -- $2 trillion a year and reduces household wealth by $15,000. i propose a moratorium on new federal regulations that are not compelled by congress or public safety. and i will eliminate all needless and job only regulations now on the books. and there are plenty of them. this includes eliminating some of our most intrusive borders of, like the the u.s. rule. it also means scrapping the epa so-called clean power plan which would cost $7.2 billion a year. obama/clinton directive will show done most, if not all, coal-powered electricity plants.
all over the country, they are shutting down. hillary clinton said. she wants to shut down the minors, just like she wants to the steel mills and the steelworkers and we are not going to let that happen. we are going to put our great miners and our steelworkers back to work. energy reform is central to our plan as well. according to heritage foundation, by 2030, president obama's energy restrictions will eliminate another half a million manufacturing, reduce economic output by $2.5 trillion and reduce incomes by $7,000 per person. you have workers and i see them all the time and i meet them all the time and they are part of this massive group of people that have just come onto the -- to this movement to that you have workers making
less money today than they made 18 years ago in real wages. working much harder, oftentimes because of the disastrous obamacare that we are going to repeal and replace. oftentimes, they are working two jobs. so they are working harder, they are older, and they are making less. like me. i'm working harder than i've ever worked also. but nobody cares about that. who cares about that? hillary clinton wants to go even further and her plan could cost the economy $5 trillion. a trump administration would lift restrictions on all sources .f american energy production according to the institute for american energy resources, this by morerease the gdp than $100 billion annually. add over 500,000 new jobs annually to increase annual
wages by more than $30 billion over the next seven years. increased federal, state, local tax revenues by almost $6 trillion over four decades. increase total economic activity trillion over a 40-year period. in addition, we will streamline the permitting process for all energy infrastructure projects, which are desperately needed, ofluding the billions dollars in projects held up by president obama currently being held up. he just won't approve anything. creating callis more jobs in the process. finally comes trade. the foundation for everything. america's annual trade deficit with the world is now almost $800 billion a year.
who's negotiating these deals? anybody in this room negotiating these wonderful deals? think of it. deficit ofe trade almost $800 billion a year. that's going to change so fast. between world war i and the year 2000, the united states averaged a 3.5% growth rate. but after china joined the world trade organization, our average growth rate has been reduced to only 2%. practices,rade product dumping, currency manipulation, which is a big one, and intellectual property theft have taken millions of jobs and trillions of dollars in ,ealth right out of our country right out of our country. so sad that we allowed this to happen. politicians were not watching and the ones that were watching were taken care of
in some form because this should have never been allowed to have happened. it is no great secret that many of the special interests funding my opponent's campaign are the same people profiting from these terrible trade deals. they are terrible. they are terrible for everyone. the same so-called experts advising hillary clinton are the same people who gave us nafta, china's entry into the trade world organization, the job killing trade deal with south korea, another disaster, and now the transpacific partnership that they are pushing so strongly. the verdict is in good all of the special interest that the media race to comment and just raced to commentate get comment get comment on, every single deal their primitive, every lie and every prediction has crashed.
it just crash. wronge been so absolutely and they've been so bad for our country. our manufacturing base has crumbled. communities have been hollowed out. wages have declined and households are making less today than they were in the year 2000. a detailed plan to reform our trade policies and bring vast new jobs and wealth to america. -- we do not have wealth. we are a debtor nation. this includes the following steps. i am going to direct the secretary of commerce to identify every violation of trade agreement that a foreign country is using to harm our workers.nd our that is what's happening. they are being harmed and our country is being harmed.
every tool under american and international law to end these abuses and i will use our greatest business leaders and finest negotiators -- and i will tell you, some of them are in this room right now -- not all of them, but some -- and, know who you are honestly, we are going to be calling on you because we have people negotiating the biggest deals in the world, far bigger than your company deals. little byny deals comparison to its true. you look at some of these trade deals, hate to say it, but your openings are peanuts. but we are going to use our best. right now, we have political hacks negotiating the biggest, most important deals in the world. we are going to start with nafta, which is causing so much damage to our country. entirely renegotiate
nafta into a deal that will either be a good one for us as a country and for our worker or we will terminate it until a brand-new and productive deal can be signed. [applause] to, we also and we have are going to keep america out of transpacific partnership unless we can do something that is phenomenal and i am not seeing it right now and i can tell you that. . am not seeing it ver i'm going to instruct my labor secretary to label china -- i like china. they are my tenant. they buy condos all the time. they are just fine. but you know what? they are a currency manipulator and we are going to apply tariffs to any country that
devalues its currency to gain an unfair advantage over the united states. they are a manipulator, grandmaster level. have beenllow it to and are people and our representatives and our politicians don't have even a little clue as to how to play the game. we have a trade deficit this year with china of approximately $500 billion. what kind of a deal is that? and this has been going on for years. 200 billion dollars, $300 billion, $400 billion -- for years. i'm going to instruct the united states trade representative to bring trade cases against china. china's unfair subsidy behavior is prohibitive by the terms of its entrance into the wto. and i intend to enforce the rules. and i'm sure we'll make a deal somewhere along the way. but they are not laying fairly
and our politicians don't understand how to play the game. [applause] it is china does not stop its illegal activities, including its theft of american trade secrets and intellectual properties, i will apply counter mailing duties until china ceases and assists. you know -- andy cysts -- ceases and thdesists. you know what that means. to the united states international trade commission, improved protection of america's internet -- just think of this -- improve protection of america's intellectual property in china would add 2 million jobs he year within the united states every single year. and we do nothing. we allow them to get away with
it. who can blame them and i don't blame them at all. if you can get away with it, they are going to get away with it. we are going to stop a outflow of jobs from our country and open a new highway of jobs back into our country. here's how the plan adds up. we are proposing a $4.4 trillion tax cut that will score as a $2.6 trillion under dynamic growth models, which is how taxes should be scored. [applause] this includes the child care plan that we announced the other day. our economic team has further growth-inducede savings from trade, energy and regulation reform wealth's -- will shave another $8.3 trillion off the remaining debt.
this money can all be saved through simple common sense reforms. save one penny of each federal dollars spent on nondefense and non-entitlement programs, we can save almost $1 trillion over the next decade. one penny. we could all do that. a trillion. again, this is spending that does not touch defense. build up ourve to military, which is so terribly depleted. and that does not touch entitlements. 3.5%r plan exceeds the 10-year growth average, then our jobs proposed will actually reduce and start really, .trongly reducing the deficit
savings will become pounded by the fact that people who are currently receiving unemployment or welfare will finally be able to find jobs. progrowth, most pro-jobs, profamily plan put forth perhaps in the history of our country. this is what our new future will look like. i'm going to lower your taxes very, very substantially. i'm going to get rid of massive amounts of unnecessary regulation. are inthese regulations your business and in your life. i'm going to unleash american energy. i'm going to repeal and replace obamacare. i'm going to appoint justices of the supreme court who will follow the constitution. [applause] i'm going to rebuild our depleted military and take care of our vets who are treated so badly. [applause]
cases, our vets are treated not nearly as well as people who come into our country illegally. we can't have that. i'm going to save your second amendment, which is under sees. i'm going to -- under seas. -- under siege. i'm going to end illegal immigration which is poisoning our youth. a tremendous problem. and yes, we will build the wall. the wall will be billed. in case you were worried about who was going to pay for it, mexico is going to pay for it. totally serious about that. mexico am a we look at the trade deficit with -- we have with mexico, it is massive. the wall is peanuts compared to what we are talking about. mexico will pay for the wall. and i'm going to renegotiate our disastrous trade deals, especially nafta, and we will only make great trade deals that
but the american worker first and put the american worker back to work. [applause] our iners -- our miners and are still workers. they're going back to work. ourill rebuild our roads, bridges, highways, airports, schools, hospitals. we will rebuild everything. american cars will travel the roads. american planes will soar the skies. an american ships will patrol the seas. american steel will send new sites -- new skyscrapers into the clouds. american hands will rebuild this nation. , harvestedn energy from american sources, will power this nation. hiredan workers will be to do the job. metall put new american
and new american steel into the spine of this country. jobs will return, incomes will rise, new factories will come rushing back to our shores. we will make america wealthy again. we will make america strong again. and we will make america great again. thank you very much. bless you. thank you. thank you very much. thank you. that was donald trump wrapping up his comments at the economic club of new york. among the headlines -- matt: i should point out that tom keene is on the other side.
we've got it covered. , the billionaire hedge fund manager made so much money on the downfall of this , is going tonomy be doing the questioning are starting out the questions here. there will be a q and a session. we will take all of it and give it to you as well. we have steve and michael mckee. some of the things we heard from donald trump -- were there any surprises? we heard a lot of the same things that we have heard. the wall that will be billed come attack scouts, childcare will now be tax-deductible. steve: not a lot of surprises. this summer, truck put out a load of his tax plan -- trump put out a lot of his tax plan on
his website. his team to get down. this is the second take. he kids to come doubt that's come out -- he gets to come out and says this is how we get to pay for and is in my room plan. this is trump's redo. on the nightly news, what will voters here? trump proposed a tax cut for you and he is going to pay for. now onto traffic and weather. matt: he says come as long as we have 4% gdp growth -- michael: then he goes back to the old republican shift. will increasethat growth and that will pay for the tax cut. no evidence that would actually work. oft: we had two decades prosperity after that started, right?
michael: no way we can get to 4% growth under current situations. scarlet: let's listen to the q and a. donald trump speaking with donald paulson. mr. trump: it is like they will have a revolution. and they start evaluating, and evaluating. they do also to things and they get back on track. i've had friends come to me that have been devastated, manufactures, great manufacturers, successful people, but they have become less and less successful because they can't beat the system. in this way, too, it is a rigged system. they are almost doing well and then there is a massive devaluation in china or other countries and there are plenty of other countries out there -- some are actually hurting china now. , when they have 7%, dropped to 7% or 8%, they consider it a disaster
and we are stuck at 1%. perhaps the real numbers 1%, but , and we try 2% to live with it. so we are going to unleash tremendous opportunity and we are bringing back the trillions of dollars that doesn't come into this country. that does really bring a lot of companies out. they want to get their money. they leave to get their money. so we will unleash a lot. we will unleash a lot with the regulations. surprised met most in going around -- because i've been everywhere. i have been working. this started on june 16. who knew this was going to happen, right? but it started on june 16 and it has been an amazing thing. but from a business standpoint, i speak to the biggest as this is in the world but i also speak to the small business people and the farmers.
if they had their choice between this massive tax cut from 35% down to 15% or regulation relief, they would take a most 100% regulation -- the regulations are a disaster. they are killing the farmers. they are killing the energy folks. they are killing the mines. has gotten so crazy and it has gone so excessive that they would take that over taxes. so we are going to another -- going to unleash tremendous number of jobs. fraud, abuse. with of the penny plan -- just a penny out of every dollar. i know you can do that very easily. but we have to appoint people to head these massive, massive agencies. if they were companies, they would be very large companies, some bigger than any other companies. penny, a penny off
the dollar and you do that for a number of years and all of a sudden really great things start to happen. we spend a to that, tremendous amount on military, which we are going to increase. we have no choice. but we also defend other countries. and those countries are not paying us nearly what they should be paying us. ,e are losing tremendous billions and billions of dollars on defending other people, some of them don't even appreciate the fact that we are defending them. and many of them don't pay us. they don't pay us. why? we don't ask. i'm sure, will, start to pay for defense, but it a a fantastic -- it is fantastic number. it is a very, very large -- it is a shocking number. i will just finish with saying this. respect for japan.
but as you know, we defend japan. we defend germany. we defend saudi arabia. we defend south korea. these are economic and he myths, but he myths -- economic behemoths, behemoths. doesn't mr. trump know that japan pays 50% of the cost of its defense? i say, oh, why don't they pay 100%? the numbers you are talking about our massive. ,hen you add it all together lighter things are going to happen. corporate tax rate, a cornerstone of your policy is the rate. secretary lew proposed a 28% rate. the u.k. is at 20%. ireland is at 12.5%.
how did you settle on 15% of the target for the u.s.? of that has tot do with the cutting because we are going to be cutting costs. i think we are going to unleash something that is going to be so amazing and a lot of it is competition. you look at ireland being the lowest. we are not the lowest, but we are getting down there. ofht now, we are the highest the world, certainly of the industrialized countries. and we said it from a competitive standpoint and we added to that and very importantly added to that the cost cutting. and there is tremendous fat. it's interesting, when all of us and so many in the room do this, when we buy companies, we like to buy companies that are poorly run, right, because we have so much room to cut. we don't want to buy a perfectly running machine where we can do too much. but we are not a perfectly running machine. we have two minutes waste, tremendous abuse. our military orders equipment
that is politically motivated because they will buy a comment that is not as good as they want. thethe claimant that generals want is better and less extensive. -- and the equipment that the generals want is so better and less six and said -- less expensive. we are going to make america great again. > now it's time for> martin feldstein who is on our board and chairman of the department of economics at harvard. part of the issue in reducing tax rates is being tacked on the deficit. proposesets would you to compensate for the reduced revenue. you mentioned in your speech that come over time, it can be revenue neutral. mr. trump: eventually with time, this is going to work out.
but the big thing with neutrality is the amount of business we generate, the fact that companies will no longer be living -- believing. you have to look at the companies -- i told you before that ford motor company, this is a massive amount of business. they are taking all smart -- all small cars and make them in mexico. it is devastating for michigan and areas of me that have to go through this. we are going to keep our are leaving us because our taxes are so high because they cannot bring their money back in. our companies are leaving us because of regulation. the regulation is so massive that our companies are leaving us. they are not going to be leaving anymore because they will have a better deal than where they are looking to go. coupling that with cutting costs, cutting budgetary
costs and lots of cost. there will be many costs that we will be cutting. and we will be enhanced by many things with the military and the defense of other countries, which a lot of people didn't even know. too many people even in this room until a study speaking i don't a year ago, think many people knew that we defend germany and japan. were defending south korea. saudi arabia as an example, saudi arabia we know, lots of wealth, lots of money. they don't pay us very much for what we do. and you could ask yourself how long would saudi arabia even be there if we weren't defending them? and i think we should defend them. we have to be compensated properly for that defense. i'm sure they will be thrilled to hear that. [laughter] >> one issue that came up was the potential for
default on the u.s. debt. the u.s. has a perfect credit history. is there any scenario you would consider defaulting on the u.s.? mr. trump: debt no -- on the u.s. debt? mr. trump: no. this isn't like building a real estate project in the market crashes and you have your shot at a bank. i love those days, you know? i love that. [laughter] somebody said i am one of the great in the world. i love buying bank debt. bank debt.tiating you can discount. we can do things. but the debt of this country is absolutely sacred, absolutely 100% sacred. you have to be. regarding regulation, you
said that we have too much regulation and that excess regulation impedes growth. what would be your strategy for reducing excessive regulation? mr. trump: i go back to the heads of the various groups, agencies, all of the different parcels of government. i would put in very top people to negotiate. honestly, we put political people and to negotiate. we put people they gave contributions, people that work the system, people that shouldn't be there. you cut 1%u say can off your budget, they look like this is impossible. whereas people in this room, because i know a couple of them are total killers -- i will call them out -- they hear one can getthey say, don, i it done in one year. i say take it easy, just relax. [laughter] but there are people in this
room who would say that so when you say 1% a year for 10 years, that's a massive difference emma 1% for 10 years. i would really have it done at the level of the group running what ever individual thing in government they are running and they will be able to do it if they have the right people. we don't have the right people. we have people who shouldn't be doing what they are doing. we have people under them who are far, far more confident than they are and they lose those -- those people lose respect for the system when they see what is coming in. tell you how strongly i believe this. the trade deals are so bad. nafta has destroyed this country. nafta has destroyed the manufacturing leg of this country.
days. he will do very well. we have the greatest negotiators in the world. we have to use -- when china enters the negotiation, they come in with 20 people that are the toughest, smartest, meanest -- they don't say good morning, is it a lovely day? isn't it wonderful how the yankees do last night? there's no talk. we get down to business, boom. no games. we get people in there who do not know what they are doing. ofs is why we have deficits $500 billion with one country. we rebuilt china. and i say that with respect with china. i have a great relationship with china. -- i haveto tell me many friends from china -- the biggest people, the richest people, they cannot believe what china gets away with. they say, we can believe it. i washen i announced that
running for president, they say, will we did not mean that. they did not know this was to happen. and the good old days, they used to say we don't believe. your government is stupid. but now they deny they ever said that. [applause] >> on staffing, how would you run a government to make it more effective? what would be your criteria in choosing the senior administrators. mr. trump: track record, great confidence, love of what they are doing, how they are getting along with people, references. no difference than when you're are running a company then when you hire top people. it would be no different.
you need people that are truly, truly capable. and so much has to do with past history. how they've done. how's it all worked out. you understand what i mean by that perhaps better than anybody. and we have to get the best people. we can no longer be so politically correct. we do things today -- we are so politically correct. people are so afraid to walk. they are afraid to talk. they can't speak. they are afraid that they will say the wrong word and they will be shunned from society. that's ok, it will only last about a week if that happens. not that bad. but we have to be -- but we don't have to be so politically correct. we need the finest. i'm not saying this because it's myself. this is the last time, this is going to be the last election we have a chance to make this country great again, to really make it wealthy again, make it strong again, make it all of the
things that we want to see. but i really believe this is the most important election that we have been involved in for many, many, many, many, many years, many decades. because it's going down. the supreme court justices i told you about before, i mean, if they put certain people onto the supreme court, our country is going to be a whole different country. we will be a large-scale version of venezuela. we will be a totally different deal. and this is the last chance come in my opinion, our country has to get better, to get well. and i just think this election is so important. because of theut ideas, the ideas that we have, the ideas and we need to do what we have to do. suchhat's why we're saying enthusiasm. we make a speech, john, and we have people showing up, 25 --
25,000 people show up and 30,000 people show up and we announce one day. we had one in pensacola the other. we had massive, tens of thousands of people. we announced a couple days before on twitter. we don't even take ads. people want to see great things happen to this country. people really love this country. the people of this country really love this country. even other countries want to see good things happen because it is so important. i just think this is going to be the most important election we've had for many, many decades. and i'm not sure we will get a second chance at it. [applause] jobs, whatd, on industries do you expect to benefit from your economic plan to create high-paying jobs going forward? mr. trump: i think h&r block
will be a disaster. [laughter] because we are simplifying -- how about people -- it's so complicated. you need 180 iq to understand it. and people are making frankly a small amount of money. they have to go on how their tax returns done by people. by the way, when they are done, you will have 10 different tax people and 10 different answers to the same person. the whole thing is crazy. so that will be one industry that wouldn't do well. but i think a most all industry -- i can tell you an industry that will do well and an industry we can use and i know prices aren't -- are low now, the energy industry. we have amazing people in that industry and they are just being decimated area -- decimated. there being absolutely decimated. we found out, because of the new technology, whether it's
tracking are many other things, we have more than just about anybody in the world. our land has turned out to be so valuable because of what's underneath. we have to be careful. we have to be environmentally sound. that's very important. but it's incredible you look at what's happened in the last five years. which be self-sufficient, we have to become otherwise we will be stuck in the middle east forever. we have to get out of that world. we have to knock out isis. i did not want to be in that war . but i wasn't a politician. nobody really cared. i didn't want to be in that war. everybody wanted to get out so quickly and not leave anybody behind. you see the atrocities they committed. yesterday, it was 22 or 24 people hung from racks of a slaughterhouse like a slaughterhouse. and then throats cut. this?, can you imagine
nobody has ever heard of things at this before. and then we talk about waterboarding. . it's an incredible thing. we are not playing on the same playing field. if you look at the atrocities committed just yesterday with the meat hooks, we have no choice but to totally decimate isis. we have to do it. we have to do it rapidly. [applause] and then we have to get back to rebuilding our country. we have to rebuild the infrastructure of our country. we have to rebuild our country because it is a mess. john: last question. if you would advise the fad, what would you advise them to do regarding interest-rate policy? mr. trump: as a real estate person, i always like low interest-rate, of course. you are going to have them until january 1 because obama wants to go -- he wants to play golf and he was to leave and he doesn't want to have any stock market
disruptions. i think the fed is being totally controlled politically. they are not raising rates. and they are being controlled politically. i think they are going to be low until -- i don't even know if they are going to have a raise. but they will be low until the end of the year. i don't think obama -- he wants to go out -- shouldn't be working this way. shouldn't be discussing it. i think it's a terrible thing that is happening because we are doing it for political -- i think the fed is very political. it's become very political, like many other groups in this country. beyond anything i ever thought possible. i think you're going to have low interest rates until the end of the year, maybe no increase at all. and the market will stay artificially high and then we will have to see what happens after that. but they are not doing the right job. with all of that being said, all my life, i like low interest rates.
can you imagine, because i'm doing this, i can't even take advantage of it, but that's ok. is become, in my opinion, the fed has become extremely political third. -- political. is a political decision or a right decision, they will go with the political decision every time. john: that concludes our far side chat once again. on behalf of myself and everyone here, -- matt: that was speaking at the economic club. we do have bloomberg economics editor michael mckee. i'm matt miller here on bloomberg markets. donald trump saying -- and he does notthat he approve of the fed' us job in the recent past. at that they have become our political than he ever imagined. in what sense do you think he means that? michael: he has recently accused janet yellen keeping rates low
to have a rock obama and hillary clinton. it doesn't make sense what he said. matt: so it's a conspiracy theory. he is seeing this behind the minutes, not anything we see published. michael: he is suggesting this is a political effort to help elect his opponent. is arguing that the economy can withstand higher interest rates and that the government is keeping rates low to boost obama's legacy. also argued that unemployment is 40% to 45%. it is hard to say have gets his economic information or where it comes from. much.t: thank you so we have some other news for you. u.s. senator elizabeth warren m. is ofhing an investigation those involved in the financial crisis. she points to more than dues on it -- two dozen individuals and companies for possible criminal prosecution by the financial
crisis inquiry commission. robert rubin, daniel mud, and chuck prince. doj letter, she rates the record on these individuals nearly six years after the referral is abysmal. david gura spoke moments ago with elizabeth warren. senator warren: statute of limitations on most of this is 10 years. and i think that means we need to see about holding people accountable. that is what this is all about. all caps on accountable who broke the law. david: your staff went through thousands of documents. what is the sense that you have that these lines of inquiry were not pursued further? senator warren: that is what is so frustrating. the financial crisis commission
holds hearings for months. this is a bipartisan inquiry commission. republicans and democrats. testimony. they dig through documents. they look at all kinds of financial records to and then the issue this huge report. and then they seal up the rest of what they've done. so the rest of us just don't know what has happened. and it's only afterwards, when -- wetional archives started digging through their documents and find out the have made her referrals directly to -- department of justice this is not just why did the justice department not get out on its own and find it? the people they gathered the most work ended the? theence and was charged by government to do this made
referrals to the department of justice to investigate and prosecute individuals and large financial institutions. and nothing happened basically. letter, line from your you say that not every company -- you acknowledgment that perhaps these could have been dead ends. senator warren: absolutely. adon't expect them to bat hundred. will that not everybody end up ultimately with enough evidence for a prosecution and eight. prosecution and conviction. but nobody? i want to hear more information about what happened within the department of justice. david: you make a clever case here. you say there is precedent here because the fbi really so much about their
investigation with hillary clinton and her e-mail server that they should release more here. are you comfortable with the precedent to their that you are satisfied, that was within the fbi grounds to release information? senator warren: you have to have a level playing field. the fbi for decades have taken the position that, if there is no indictment, they are not going to release the nose for investigations and their documents and they will not talk about it at hearings or have a press conference. i get it. they clearly change that standard when they released all of the information about their investigation of hillary clinton , even though there was no indictment. he stood up and had a long press conference about it. and then went in and testified about it. was he did standard that, he said, because there was thatse public interest in topic and that is what happened with hillary clinton's e-mails. let me tell you.
i believe there is intense public interest in who caused andfinancial crisis of 2008 why none of the large banks and none of their top executives were ever held accountable for it. david: on the subject of executives being held to account, the ceo of wells fargo the news right now, from what you understand what happened at wells, do you think it is appropriate for him to keep his job as the head of the company? senator warren: let's have a little personal responsibility here. what troubles me about wells fargo right now is either he there know, in which case was a massive, long-term fraud on his watch. does that mean this is just another bank that is too big to manage? is one of the banks that could threaten our economy. this is one of the banks that just failed its living will test, meaning could it be wound down without taking out the rest of the american economy?
either that is the case or it's the case that he actually did know what was going on, that he did have an idea that there were criminal activities within the bank. either way, he needs to be held accountable for this as does the rest of his senior management. david: doesn't mean step down as you see it? senator warren: you should not be able to keep your job and keep raking in millions of dollars in bonuses. look also at this woman who ran the whole consumer division. that she could be in charge of this division, get yearly bonuses based on how much fraud was occurring in her called acrossey selling, but in this case, we now know fraudulently opening a million and a half checking accounts, more than half a million credit cards, that she was getting bonuses all along
and now she walks away with $125 having bonus for presided over a division that systematically broke the law and cheated customers? this tells me that something is badly broken at that bank. it tells me that, notwithstanding everything that we talked about following the crash of 2008, that the culture at this joint bank is still about profits, even if it means cheating people and breaking the law. that's bad for their customers. that's bad for the rest of the economy. david: investors have called for clawbacks. we have not heard from wells fargo about those. do you think it is appropriate we should see some clawbacks? in light of this story, what changes about your argument for breaking up big banks? >> the argument just gets
stronger. the big banks have tried to say they changed. they are bigger than they were in 2008. we need strong oversight of these thanks. it raises a serious question, when a bank gets this big and poses this kind of threat to the economy, can it be managed? is management really committed? i'm not hearing that from wells fargo. >> can you give us a bit of a preview what you might be interested in asking him on tuesday? >> there's a lot and want to ask him. unfortunately the limit is to 5 minutes. i have a lot of questions about accountability, about how this bank has behaved.
this isn't one blip on the screen. than 5000 more employees. there had been little pieces that have cropped up that this has been going on for years. he presided over this bank, given the ok's of flowers to the decision that was actually cheating wells fargo customers. i have a lot of questions for that man. >> you will be in cleveland campaigning for hillary clinton. i want to ask you about the latest poll in ohio that shows she has fallen behind donald trump. when it comes to trade, many people have voiced support for trump versus clinton. what is the case you're going to make to voters in ohio? >> my case is that hillary clinton has run on a very aggressive agenda, and made very
trade, c onments on the cost ofollege -- on the cost of college, on investing in infrastructure, on the things that will help rebuild infrastructure in ohio and across the country. has said he wants to roll back dodd-frank regulation and get rid of the consumer financial protection bureau. he's made big promises about other things he will do in the his tax plan is to cut taxes again for those of the top and leave most of the burden on middle-class america. donald trump taps into a genuine anger in america. people are right to be angry about what's happening in this country. we have built something terrific
and yet now we have a washington that works only for those at the top, those who can hire armies of lobbyists and lawyers. donald trump's view is to make that problem worse. out and talkgo about how you build an economy going forward, how hillary clinton has the vision to be able to do that, she has the right kind of, the sober reflection that we need for a leader of america. >> donald trump is speaking today at the economic club of new york. he continues to hammer on that if you elect hillary clinton as president, it will be a continuation of barack obama's policies. can you make the case to them that a hillary clinton economy will be different than a barack obama economy? is that a case you want to make? warren: you bet it is.
i think the banks have not been accountable enough. hillary clinton has said very explicitly that she's going to stop the revolving door between wall street and the federal government, so these guys don't get to run the big banks and then come in and run government to help the big banks for a while and then go back to the big banks. that's important and specific. she's willing to break them up. donald trump wants to go back to saidays before 2008 and
that these banks do whatever they want to do. hillary says we need to ratchet down harder. we need more protections for the american people. he wants the people at the top to pay less. she wants the people at the top to pay more. goes to a question about transparency. she's put all her taxes out there for years for everyone to .ee donald trump will release his taxes. you keep wondering, what is he hiding. and now people are starting to withver he has ties foreign governments, business
ties, financial ties. he has had russian oligarchs who have financed some of his business operations and he wants to reveal none of that. this is a man who has put his own interests ahead of everyone pretty much his whole life and now he doesn't even want to tell us where his business interests lie. the differences between hillary clinton and donald trump are ext reme. that's why i'm in the race all this way to help get hillary clinton elected. >> that was senator elizabeth warren of massachusetts. spent a lot of time talking about wells fargo and the scandal taking place, questioning the big culture that allowed for this kind of behavior and saying she was looking for to the hearing next week when the ceo will be having to testify and explain what happened. >> she made a point of the fact that not only did she think john
stumpf should be out of his job for all of the crimes allegedly committed under his watch, but executiventire senior team should be held accountable for that. we are halfway into the trading day. all of her renick has the latest about what's going on in the market. oliver: we are seeing a decent rally take shape throughout the latter half of the day. what you're looking at is strength across the s&p 500 as well as the dow jones. really a lot of the gains are coming from the tech sector as well as the nasdaq. this is a pretty big move after a morning that started off pretty flat. you had economic data that came in, retail sales, pbi. mind.ors don't seem to let's take a look at what is going on with apple. you are looking at a company here on a four-day rally, the biggest since 2014. that's an additional $70 billion in market cap.
is not just beating the other components in a technology group, it is raising its suppliers so they beat the group .s well there's also a note on sky works basically saying they have a pretty good market positioning. so far chip orders on the iphone 7 coming in better-than-expected. i want to look at what's going on with the oil space and related energy companies. a lot of focus recently on this group, it continues to move the s&p 500 throughout these children days when other things are pretty quiet. whatyou are looking at happen in some of these oil companies, these are both now basically in bull markets. 20% of its most recent low and finally to close things out. look at the bloomberg dollar real quick.
you are seeing a little bit of strength, not a huge move in the u.s. dollar, but seeing a little bit of strength today. when other stock and want to throw in the mix is alibaba. the on a big move as well, highest in quite some time. there's not a lot of news to back it up. a pretty interesting story about some of its employees getting fired because they hacked the company to get some extra moon cakes. matt: all of her run exam rundown of the markets. scarlet: chris heisey is the cio of global wealth and investment management for bank of america. the dow's move is now a triple digit point move for the fourth time in five days. we've seen at this return of volatility, across asset classes -- what is driving it, chris? is it obsessing over the exact timing of the fed's next rate hi
ke? >> it's the latter. there's so much exaggeration going on as to whether it is september or december. allocators actually don't really care that much about the timing. impact, andhe what's the narrative. you had weak economic data in august. why would they do that during an august week. ? if they have to think about the and two or three years, when the window opens, they go. the window is not open right now. the latter point about rates, that is where the angry clown is , this drift up in the back end of rates right now.
the bank of japan is someone driving a good portion of this. u.s. 10 year up almost 20 basis points in the last couple of weeks and if the fed will not raise rates now, it seems odd to see that much selling in the bond space. >> the real action is in the asset classes themselves. >> the asset allocators are pulling down on the fixed income handle. when you look at oil down, gold down, stocks down, and bonds daysas they were a few ago, that is telling you this is a massive recycling of repositioning. it's also getting ready for the fact that central banks told us for a long period of time that we want the hold curve to shift down.
might actually start to release buying. scarlet: a letter traders speculating that the bank of japan wants to stephen the yield curve. talk about the effects on u.s. assets. >> from the standpoint of what people should think about, third and fourth quarter. when you start to see the data pull through, august was weak. we are not talking about gang buster growth here. they are spending at a decent clip. and you factoring is going to look better as we close the year out. -- manufacturing is going to look better as we close the year out. 2140 on theound s&p, in our opinion, is equilibrium. 17.5 times 122.
where do you go from here? it's about being risk neutral, looking at more dividend growth areas. scarlet: does that mean technology? be thenology happens to area where the pool that has most of those characteristics, health care as well -- if you had to mix in some areas that were undervalued, it happens to be some of the economic sensitive areas. matt: what do you think about earnings growth going forward? it is been so bad for the last five or six quarters in a row. -- sister to get healthy does it start to get healthy? >> the likelihood of that pulling through his 50/50. it will be somewhere close to that. the thing double impact earnings on a go for the basis that did
not happen previously his margins. margins will likely narrow because of rising wage costs. however, salese, growth should actually get better as well. capex might come back. matt: is the consumer going to show up? saysere is a debate that the retail numbers are picking up what real retail is. a lot of it has to do with what's going on online and other things. i have a funny suspicion that the hot weather in august plus the rainy season in august pulled a lot of that back. matt: really appreciate your time. of globaley, cio wealth investment management at bank of america. scarlet: stephen schwartz will be joining "what'd you miss?" later today. this is bloomberg. ♪
scarlet: this is "bloomberg markets." i'm scarlet fu. 250 positions in the consumer products and interactive media unit at disney have been eliminated. that is 5% of the divisions total employment. disney shifts to licensing characters and videogame reducers rather than making games itself. about half of the lost jobs are in the seattle area. tesla motors has filed a lawsuit against the man it says tried to impersonate elon musk in order to get nonpublic information about the automaker. the suit says the man sent tesla's finance chief an e-mail from the address elontesla
@yahoo.com, requesting reported detail -- financial details. immediately respond to a request for comment. that is your bloomberg business flash. --ll ahead, staying on cap on tech. talking to bill harris about how some tech companies are affecting markets and the fans are ignoring. this is bloomberg ♪.
radio and tv. you have been adding in size. talk about how much assets you have added in the past year or so, and how that is going. march 1 we hit $2 billion under management. , 3 billion. 1 we are growing at an annualized rate of 125%. typically it flows. this is actually on the upswing. >> is this a function of the low fees? you see companies like goldman sachs and j.p. morgan and others with this.ng >> i think we represent the future of the investment industry. the things we are doing combining digital with human
advice is unlike anything anyone else is doing. >> carol masser here. is this from individuals already invested somewhere or non-invested assets? >> we typically see people other relationships. the people that we serve on average have $300,000 with us, and they have complex financial and often consolidating investments from elsewhere to us. >> what about the demographics? >> it is right in the middle. traditional investors are anding at millennials people in their 20's. an average per client of $20,000. up theconsiderably
scale. $300,000 average. an entire one third are over $1 million in relationship. so then the demographics. people in their 30's, 40's, and 50's. cory: is it because the business is so automated up the scale. $300,000 average. ? if it was a hands-on approach, having fewer class -- assets would be great. >> we mix -- a classic robo .dvisor is computers only that is fine for someone just starting out with very simple finances, but we try to do full financial planning, investments and the rest of your financial life, and it requires the , andcial we have got planning and management technology, and a human advisor. our clients have dedicated human advisors. we do not have storefronts all around the country but we have human advisors to work with each player. >> do you feel like there is
anything holding back the growth ? anything that you think is preventing some folks from switching to an advisor like yourself? >> yes. it is simply awareness. even though we are growing quickly, we are still relatively in this space. because we do not spend hundreds of millions of dollars per year on television, relatively few people in this country who could benefit from the service are even aware that we exist. more and more people through and otheruth mechanisms are figuring out who we are and what we offer. cory: do you feel in the long term for advisor business will turn into the travel business? a crucial part of some point and then goes away? >> quite the opposite. i think what is happening in is money is so
important. have shelter, health. love. and money. it is too important to ignore. what the tools and digital delivery -- delivery allows us to do is to put sophisticated advice into the hands of many more people at a significantly lower price. bill harris, thank you for your time. back to matt miller. matt: thank you very much. with bill harris and carol massar. more of the interview on radio or with radio plus app. to be a a tough time hedge fund. we will discuss. this is bloomberg ♪
mark crumpton has more on the headlines. mark: donald unveiled his economic plan today, one that promises to lower taxes, cut regulation, and create jobs. critics have warned such proposals would stifle the u.s. economy. mr. trump promised to strengthen the economy by 3.5 percent, well above current projections, including 25 million jobs, something he says hillary clinton will not be able to do. she's got single idea will create one net american job or create one new dollar of american wealth for our workers. the only thing she can offer is a welfare check. that is about it. mark: the heart of trump's plan includes a tax code.
a major drop from the current 35% corporate tax rate. hillary clinton is back on the campaign trail today after being sidelined with pneumonia. she is focusing on uplifting families and children as they campaign tries to break through with them more positive message. she will hit greensboro, north carolina, and will address a roof in washington. seven years after an airline captain saved 155 lives by successfully and -- successfully making a landing on the hudson. said most of the safety regulations following the quote merrick on the hudson are being ignored. only six have been successfully completed. the united nations is facing problems and shipping
humanitarian aid in syria. humanitarian aid flow has not followed. news 24 hours a day in over 120 countries. months of tranquility disappeared when the s&p 500 suffered the worst selloff since for the brexit vote. now and as measured by the volatility index is making a comeback with investors asking if we will see any more major pullbacks this year. the next guest says do not write up hedge fund strategies. a global consulting to hedge funds joins us. of a major pullbacks has climbed.
at least we know that volatility is back. managers totill use hedge against that risk? it does not seem they are really hedging anything lately? a significant portion of negative interest rates. equities are trading at how you asians. the reason is because rates are so low. equity correlations are going up. these are structures of a lot of different strategies. this is the trade unwinding now. explain what this is. how prominent of a trade was it?
in highly positioned was it the midst of the somersault -- summer slowdown that we saw? >> i think what is more important is focusing on reassurance, direct lending, volatility and direct lending. >> this parity trade unwinding right now, is it driving into the ultimate strategies? alternate strategies. >> i think it is. this is going into direct lending. at the hedge fund industry, there are very different return characteristics based on strategy. a lot of other strategies have struggled. crowded tradesof that are increasing volatility.
a commodity trading account. they are systematic and nature. they really do not care about fundamentals. most markets during the market selloff, the correlations are closer to one or the relative movement increases. they can short markets as they trend down. we've seen a return to volatility. doesn't matter why it has returned? >> there are inefficiencies with volatility. that is basically selling options. if volatility spikes, you are going to get killed. when volatility spikes, that ask as a hedge for your portfolio.
>> you are seeing all asset classes rising. ofin 2008, there were a lot pension funds that the they were diversified. a lot of different fixed income managers. what they found was correlations one to one. what they typically do is look at the expected return and the correlation in the portfolio and that is how they build proficient portfolio. what you are saying is basically there are hedge funds you can use to hedge against kind of risk, but many use different strategies. which are the best hedge funds, the best strategies or funds to use in order to diversify in a safe way? there is an is an
efficiency and direct lending. reassurance. is to collectept premium, pay claims. no correlation to the overall markets. this is market neutral. most managers are biased. find this through stock selection on the long and short side and not exposed to the overall marketplace. relative value fixed income is another. they are buying and expects a inexpensive -- fixed income securities. >> no doubt they are not performed well over the sheer. he is the pioneer of an industry. challenge that they face. >> there are more and more, and
there is only so much undervalued securities. so much price discovery to take place. economically, and the more participants, the more difficult it is to differentiate yourself in a positive way. funds beenugh hedge washed out? >> i think the amount of assets in the hedge fund industry is a huge issue. it has gone up 500%. it is 2.7 trillion. this affects different strategies differently. what is also a factor, different hedge funds have big hedge fund money. average hedge funds are of 3.5%. hedge fundeighted index is up .5. if you want to generate returns
in the hedge fund industry, you have to focus on smaller managers able to take advantage of the inefficiencies. hot topic right now, so we love to get your take on it. founder of age cropped partners. a new store will reopen after a long and unexpectedly of renovation. we eat to the ceo of cartier with america. this is bloomberg. ♪
sing a mosh to the past. mansionthe refurbished with cartier from the gloom weighing on the luxury industry you go with us now is the ceo and president of cartier north america. here all day long on companies in the luxury space that are under a lot of pressure recently. -- why makem and is the decision to spend the money to renovate his flagship mansion at a time when luxury mansions -- luxury brands are getting hit go >> us, this is just another reflection of the investment long-term. we have always had product and exceptional design that clients look for to keep for now and the future, and this renovation as part of that. i have been into the store a few times. watchtely a mecca for
lovers, but also, a huge tourist component to it. just because of the location, if not because of the brand. do you see a slowdown to that? is the spending severely affected by the dollar? it is an attraction for everyone. international tourist and business travelers. for us, new york is a very strong place no matter what is going on in the world. with this mansion, and now gives clients an additional reason. , iwhen i think of the brand think of the watches because that is where my interest lies. a lot of women think of the red boxes containing something else. do you get the lion share from the jewelry or do they make a dent? not report out by
product line. we started as a jeweler and we were known as the jeweler to kings. as well as accessories. i went -- i wear and leather goods and handbags for ladies as well. matt: bloomberg has a story about the foray into the more complicated pieces. cartier started out, louis cartier was designing a watch for a pilot. brand? key to your rather than the
complicated? >> the great thing is a good to be exposure and experience to see everything we offer. we have complicated pieces, and we also do have the watch you mentioned. we were commissioned to design the first wristwatch for him so he could fly and keep his watch intact. the great thing about the complicated? >> the great thing is a good to be exposure cartier's we continue to design the pieces relevant for the clients now and will be timeless for the clients in the future. i believe it was like 1904. the diamonds -- that is the big ticket item. if you have a big diamond, that is a priceless piece. those prices swelling and times when people need to >> cash other places? normally clients come to us for the beauty and design and to mark milestones such as an butgement or anniversary, what is also wonderful is clients are seeing there is an attached to the
creations. when you see the result in auction, you see there is a bump on something that is a cartier piece. we have clients such as elizabeth taylor and grace kelly . see the result in auction, you see there is a bump on something that is a cartier piece. we have clients such as elizabeth taylor and grace kello look for us for things they will enjoy now and in the future. attract graceou kelly so she think i have to buy a cartier diamond rather than product? from another is that the setting, the demise -- design, choice of the stone? >> it is a little bit of everything. we are very discerning in the quality of the diamond, setting. , the experience of being part of the cartier family as a part of the history. we often say the creations up today will be the archives of the future. this mansion has been designed
to attract people in and allow them to become part of the family. it was a private home at one point. it is a great metaphor for what our clients come to expect. it was actually a private home. traded the mansion for a double strand of pearls. the owners wife really wanted a curled necklace, and they made a trade. matt: it would have to be a pretty serious set of pearls these days. i know that you are running the north american market, so you do not have experience in the asian or european business, but you still must deal a lot with those clients. to important is i don't want say tourist but outside money coming into the u.s. for cartier? >> we do not report out differentiation by market or demographics, but i went right
that new york is such a mecca for everyone in the world. we're fortunate that we have strong and local clientele in the u.s. as well. matt: so new york is up there with paris and london? >> one of the 35 leading cities in the world for us. steppingook forward to into the newly renovated mansion as soon as i can. you can read more about luxury at bloomberg pursuit. the destination for finer things in life. just head to the bloomberg. scarlet: more on navigating high volatility and low rates. the ceo on how his company whether the most turbulent of financial times. this is bloomberg. ♪
i am matt miller. scarlet: i am scarlet fu. the fed decision next week on whether to raise interest rates arounded for businesses the world, including the insurance industry. here now is roger crandall. during his tenure, massmutual has gained more than 5 million customers and reached a record assets.ion in great to see you. gaining a greater share of the life insurance market ever since the financial crisis in 2009 and 2010. gaining a greater share of the life insurance market ever since the financial crisis in 2009 and 2010. wife insurance has not exactly offered great returns because of that we have seen. give us an update on the state of the life insurance market for massmutual. >> the name means we are mutual company effectively owned by the policyholders. returns may have
been low, they have worked pretty good compared to other financial returns. it is starting to really become a big number. we have grown 20% per year for the past five years. we are seeing when people have the opportunity to understand how the product can help them and their families, people are interested. returns youind of need to see in order to persist and a happy way for all the members? >> we would love to see interest rates get lower. for example right now, we get prayed pretty good illiquidity premiums to buy illiquid asset type products. the other thing we have been able to do is we own businesses, not just portfolio stocks and bonds.
-- own oppenheimer funds. insurance companies in asia. they have not correlated with the level upon dear, which allows us to pay a better dividend. like everyone else, we like to see rates go up a little bit. is an investment strategy. you work your way through what you have right now and work to be more efficient as well. will you be making more acquisitions in the months ahead? -- it is hard to say. it is a very fragmented industry, and we have two great ballotes with strong sheets. so we have made acquisitions. we recently acquired a distribution company from metropolitan. we picked up 3500 new advisors. and almost doubled your
network? >> yes, it was a big increase, one that does not happen all that often. it happened quickly, and we are in the midst of putting that together right now. metlife a time when wanted to get out of the business because regulation is just killing them, making it a tough business, how was it a you? >> at the core of what we do, we sell life insurance. it is not just a business. if you think about how we will comply with the role next year, i would much rather have 9300 advisors to spread the cost. so we think the role will be a challenge, but we will absolutely be able to work with it, and it will not change the 3500 families% -- have no coverage whatsoever. we are trying to invest in technology in order to help advisors help people and make it easier to do business with.
we are very optimistic about growth perspective as well. scarlet: massmutual is looking at deals with employers to take off pension risk. this is something becoming much more lucrative. tell us more about your appetite for this kind of deal. what are the possible risks? >> the pension buyout business, there are a lot of companies that have pension plans on the books that are defined benefit plans. it is hard to say the core competency is manning a plan like that. the risk we bear are frankly different than the risk we take in the life's nest. actually hedge each other pretty well. we think longevity is a good complement to the mortality business. that said, there is a limited
amount of that business that we will do. we tried to diversify. it has been a good business for us, and there he nice to know you will get a check for as long as you live from massmutual. scarlet: roger crandall, thank you for joining us. very interesting stuff. still ahead, a ton of newsmakers. billionaire distressed investor wilbur ross joins us for his thoughts on donald trump's economic remarks earlier. he is an advisor to donald trump . then, larry summers, former u.s. treasury secretary -- not an advisor. we could equally say on the other side of the fence, harvard president. he will join us on his latest paper about stricter regulation. this is bloomberg. ♪
david: we are live in bloomberg's world headquarters in new york for the next hour, covering stories out of san francisco, washington and china. speechtrump delivers a outlining his economic vision saying he will create 25 million new jobs heard how realistic is that plan? reaction from both sides of the political aisle. ismp advisor wilbur ross here. we will also hear from democratic senator elizabeth warren. plus, oracle reports earnings after the bell. can the software giant make more progress in the cloud? markets close in two hours. stocks are hovering around session highs. close to the highs of the day, a pretty big move here. a bit of a risk only