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tv   Bloomberg Best  Bloomberg  August 26, 2017 2:00am-3:00am EDT

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♪ julie: coming up on "bloomberg best," the stories that shaped the week in business around the world. president trump is investors plenty to think about. >> our support is not a blank check. >> i don't think this is going to have a big effect on financial markets. julie: and perhaps to worry about. >> if we have to close down our government, we are building that wall. >> plenty of investors are concerned president trump has termed the way things are going. thee: a big deal rocked energy sector. samsung gets a good deal of attention and carl icahn deals a big low to his rival bill
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ackman. >> not the best return on a short position. julie: ireland's prime minister wonders what great britain is looking for granted talks. kingdomdoes the united want with the european union? >> we sit down one-on-one with two fed presidents. >> i think you have to be too careful -- careful on the estimates as opposed to the broader trends. >> we should be moving accommodation but it should be done patiently. julie: a roundup of the week's most intriguing earnings report. >> we had a high quality set of results. we have to be patient, we know what our businesses are worth. julie: it is australia head on "bloomberg best." julie: welcome, i am julie hyman. this is "bloomberg best."
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your most important analysis from bloomberg television around the world. start with the day by day look at the top headlines. the week began with a major deal involving imperative european energy companies. another sign that m&a activity in the energy sector is picking up today. oil how agreeing to buy the and gas unit, the price a little over $1.9 billion in cost. told took how was the right suitor for their company. options like very ipo and other possibilities from selling -- to selling business -- our business and it came down to the offer from total being the most attractive value point of view and also the commitment to how is making to develop -- total is making. >> during a conference call with
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reporters, the fact he was actually acquiring very good operational expertise and this is something you just don't get like that unless you buy it, and this is what he is doing. both interested in iran and africa. it looks like a very good deal in that respect for total. >> president trump announcing an open-ended commitment to afghanistan that would put more american troops into the longest lasting conflict. he pledged to put forces there as long as it takes to deny terrorists a haven and bring about a political settlement with the taliban. >> our commitment is not unlimited and our support is not a blank check. >> he will add about 4000 troops troops oneady 8600 the ground in afghanistan. this is something he had advocated against on the campaign trail but said he
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ultimately went against his instincts and decided on this after carefully studying the situation. >> i don't think this is going to have a big effect on financial markets. small lift of troops, it is not trillions of dollars as we were spending some years ago. i think it was a good speech and it is a good foreign-policy decision. >> we have gone back to the 1930's according to ray dalio. -- but in a manner broadly similar to 1937. he says he is tactically reducing risk on concerns of government efficiency. putecommended the get -- five to 10% in gold. >> there is no doubt coming into this year, there was a lot of expect nation that we were going to see some sort of tax reform, maybe regulatory reform and fiscal spend, and that -- that
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would be an impulse to the u.s. and global economy. all of that seems to have dated, but the market has shaken it all off. >> president trump was back in campaign mode last night with a fiery speech to thousands in phoenix, arizona in which he took down everything from the nafta to the media that the two republican senators from arizona. what may have got the markets attention was his threat to shut down the government over the wall. >> if we have to close down our government, we are building a wall. >> a lot of people thought it was going to be hard enough to keep the government open without the president weighing in. he is now saying, let's loaded up with a border wall. >> that is right, he is throwing a wrench into the process that the republicans are preparing to come back to washington with a number of things on their plate, including passing a budget and raising the debt limit and now the president is drawing to redline saying in order to keep the government open cast have funding for a walk.
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there is no consensus in congress about how to pay for a wall, let alone how to pass a budget and raid the debt -- raise the debt limit. be something to difficult for the republicans to do and the president made it harder. >> as far as markets and investors are concerned, they fully understand the president's legislative agenda is stalled, that has been priced in, but there is also the rising existential risk for the u.s. presidency and many investors that i have spoken to are worried that maybe president trump won't see out his term the way things are going. it is going to be a bumpy ride going through september on the fiscal side in i think market volatility will inevitably rate -- increase. >> after threatening a government shutdown, donald trump blaming the debt ceiling mess on gop leaders in congress. he tweeted, i requested that mitch and paul tie the debt
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ceiling into the popular v.a. bill for easy approval. they didn't do it so now we have dems holdingth them up on debt ceiling of her will have been easy, now a mess. >> this is complicated politics right now but there are two storylines to watch. one is what is the president's desire on the debt ceiling? the second one is, what is going on with the infighting in the republican party, particularly the fight the president has been picking with republican leadership. that is not the only tweet this morning. whichis also the one in he said, the only problem i have with mitch mcconnell is that after hearing repeal and replace for seven years, he failed. yellen about to speak in jackson hole and let's get the details from bloomberg's michael mccain. fingers off the trading button, you won't be trading or selling on this one. this is the boring janet yellen. her speech largely a recitation
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of the history of the financial crisis and regulatory failures and how things have improved since then. she admits there is room for improvement and that other tweaks could be made to dodd-frank regulation, but in general, this is a speech about federal reserve and success in regulating the financial system since the crisis and not at all about the economy. draghi took this occasion not to deliver a policy message, not to signal what the ecb does or does not do next or when, he took this more as an occasion to talk about what the big challenges are globally. he is especially concerned about is concerned about protectionism. he is concerned about how to make multilateral cooperation sustainable, fair, equitable. when it comes to the currency, what you can take away is that
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either mario draghi is not concerned about the euro, because he did explicitly single it out. by not singling it out, you could say he is not worried. on the other hand, you could say mario draghi doesn't want to maybe fire up the euro holes but -- bulls by indicating he will slow them down. julie: still ahead as we review ,"e week on "bloomberg best ireland's minister weighs in on brexit. plus, two size up mario draghi's assessment on qe and two fed president's share their outlook from jackson hole. coming up, more of the week's top is this headlines. samsung unveils its latest galaxy note phone, hoping you can erase members of the previous model. >> it has a very large screen, large display. it is the biggest phone yet. julie: this is bloomberg. ♪
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♪ ,"lie: this is "bloomberg best i'm julie hyman. topking our tour of the business stories with a clash of investment titans. karo i can -- carl i can and bill ackman on herbalife. that has be the stock the highest ratio of mentions the market cap of any public traded company in the past few years and is back in the news today with an announcement to do a buyback of a good portion of its stock in a reverse dutch auction and the major shareholder carl icahn has agreed to limit his holdings to know more than 50% unless he wants to buy the whole company. this is a victory certainly, in his fight with double ackman -- bill ackman in the stocks. bill ackman took a short incision in 2012. >> where was the stock trading then? >> about 50% lower than now.
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not the best return on it short position. >> what does all of this back-and-forth between i company, what does this tell you about herbalife right now? the fact there is some interest is positive from an equity firm. i think they will go back to their ultimate peak of sales was a few years ago at $5 billion and i think they will in you to grow at the historical rate of 8% and grow to a significant level from there. julie: a new player in the sempra istle, outbidding yorkshire halfway -- hathaway after elliott management triggered a public battle for the company by announcing the intentioned to rival the bid. probably moret is
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to do with paul singer than anything else. >> why? >> as you recall, elliott ofagement owns the bulk their unsecured debt and didn't agree with the terms of the buffet bid. so they opposed it. now we have obviously got a d that addresses some of the issues they had with unsecured debt and how much they would get paid. it looks like they will get about $.45 to $.50 on the dollar as opposed to 18 from buffet. mark: the bar for the iphone is set high. investors eagerly await the latest device. the features of the phone as it coincides with the 10th anniversary of the iphone. is the new superduper -- is the new iphone the superduper version?
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will it be a demonstration of the apple philosophy, let's not be first, let's be best? , the sharper it contrast screen that shows colors more vibrantly, bigger screen and the smaller form factor, these are all ideas that have been tried before. we had the essential phone launch last week on another samsung phone launch earlier this year. this idea they are going to put a really big screen on a really small phone and that is exactly what apple is going to do with this souped-up version of the iphone. they are going to have this 3-d feature. instead of using your fingerprint to log into the phone, you will be able to scan your face. they will know it is you using the phone. looking at the phone, it will know to stay unlocked or to unlock the phone or approve image -- payments when it is you using the device. >> samsung's mover has launched eight stepping up
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the fight with apple. the largest samsung phone yet, possibly its most important. phone since latest the last one was scrapped after reports of catching on fire. a flashy event here in the park andry in midtown manhattan, they revealed a lot of the details about the phone, which i am holding in my hand. some of the main differences are it has a large screen, large display, it is the biggest phone yet and another plus is the stylus, which is skinnier and more pressure resistant than before. that, they also have a dual camera lens in the back, so talking to people here, it seems there is a lot of excitement about these improvements but we're still going to have to wait until they bounce back from the problems of last year. british prime minister theresa may wants to take back control of the country's boards of europe. her government is willing to expect -- accept a cooperative
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relationship with the european court of justice. u.k. is open to a biting bypassed ecj rulings and even referring decisions to it. >> is it a red line that has been scrapped or diluted a little bit? >> a red line that has become more weekly, perhaps -- wiggly, perhaps. it was of huge importance to the brexiteers. , leavingeant, she said the ecb, what it means now is leaving direct jurisdiction. they are open to a biting bypassed decisions of the ecj and as one of the ministers said this morning, they would keep an eye on it. >> securities and exchange commission's have signaled to financial firms it is working on a fix to allow u.s. brokerages to sell the market analysis to european money managers. the practices under threat from
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two regulations that come into effect january the third. europe, new rules in the wall street banks wouldn't be able to bundle their free research with other services they offer. did, they would come across new rules in the u.s., additional rules they have to asset managers. it could be costly, open them to legal risks. what they have been doing is pushing to compensate some way were the rules could between or d and continue to operate as they still do while complying with european rules. seems to behe sec picking up the pace to come up with something. but the clock is ticking. >> paris or frankfurt? that is the big question buzzing at bank of america. executives are divided over where the european trading hub should he after brexit. showingporting is
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inside bank of america there are deliberations coming on to figure out where should we go after brexit? where should are trading headquarters be? what i in hearing from people's we have three cities on the list at this point. there is paris, frankfurt and dublin in the mix. it is a possibility for bank of america to choose multiple locations. some of our reporting was showing they may end up having equities in frankfurt and splitting off fixed income in paris. or you can see parts of fixed income itself eating split amongst those two cities as well. differentt is there debating ideas that have been floated. president donald trump has been promising to ease financial regulations in a piece out from bloomberg today, proposals under great cash consideration could raise profits 20% to six of the largest banks, adding $27 billion of gross profit.
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jpmorgan chase and morgan stanley could benefit the most. where is this money coming from? leverage constraints. >> these are the rules that banks have complained as they were being implemented. dragged intong these things, they always said no, this is going to hurt us, and of course, the earnings and muted over the years. but slowly they have in improving and these were in some -- relaxationa of the rules would help by more treasuries, by more municipal bonds, all of these kind of things and they make or money because they don't have to hold more cash. the liquidity doesn't have to be as much. these are small tweaks, but when you add them all up, it is good money. start cutting prices at whole foods market on monday, the same day 13 $.7
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billion is set to close. grocery stocks did slip on the news. investors think amazon is going to come in and do something with whole foods and reshape the gauche -- grocery stage, is it possible? >> we knew they were going to do something, but it is surprising how fast. this is monday. we were calling whole foods stores, managers are saying i don't know what you are talking about. they haven't even got the message it. perhaps a pr gambit here, but it takes time. amazon is going to a sector they have never been in. changing prices and doing that usually takes days, we for a traditional -- weeks for a traditional grocery to do. they are saying, no, we are amazon. eggsrice of chicken, kale, are going down.
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they are throwing it at an industry that has never experienced it before. jay y. lee has been sentenced to five years in prison after being found guilty of perjury, embezzlement and bribery. his lawyer has said they will appeal. >> he has been found to be of embezzlement, perjury and bribery. four other executives in the court with him were also found guilty. suspendedtwo got sentences. the court found him guilty of currying favors, giving money, bribes in order to consolidate his power in samsung. the her just a few minutes ago from the current president who said the samsung ruling would end government business collusion.
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julie: welcome back to "bloomberg best." and julie hyman. as theresa may tries to negotiate the brexit, it has been slow going. while visiting canada, the irish prime minister spoke with bloomberg about his frustration with the process. you get the sense the eu is pleased with the progress it has seen so far? think i be right to say on behalf of the european governments that we are not satisfied with progress made so far. however, we will continue in the ongoing talks. michelle barnier, david davis, we will let those talks continue. we hope for progress can be made and it will be sufficient when we meet in not over -- october, but at the date, the progress has not been sufficient.
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in ireland, there has been some progress. we are satisfied we will keep the travel area, british citizens will move freely between the two islands, work him a live, access health and education as we do now. commitment byng the british government to fund peace building measures in northern ireland, but an area i feel very strongly about is there shouldn't be a trade border and we don't yet have progress on that. >> say the u.k. doesn't get traded doesn't -- wants with the eu. how concerned are you they say we put in a hard order between the republic of ireland and northern ireland? >> where we are confused and puzzled is very much the premise of your question. what trade agreement does the u.k. want with the eu? at the moment, they have the best trade deal imaginable, which is a customs union and access to single european markets and the european economic area.
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for seem to be suggesting the last 14 months now, they want to have all of the advantages of being in the eu, but none of the responsibilities and cost. edition.ot a realistic we are waiting to see what they would like to see. we think that really strikes me being here in canada a month from today, the canadian european trade agreement will come into force when britain leaves the eu, it is not only leaving the, it is leaving the trade agreement europe has made with countries like china, japan, south korea. it is not yet clear to us, what are these better deals the british government wants from europe and other countries? i think more clarity in that area would be helpful. julie: coming up on "bloomberg best," more of the week's most compelling conversations. talk about qfii. and we talked with a fair a --
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fed presidents and jackson hole. >> we are close to the neutral rate and people might think. julie: this is bloomberg. ♪
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♪ you're watching "bloomberg best," i'm julie hyman. the ecb president mario draghi was a busy man -- this week. before delivering his best before delivering his speech at jackson hole, he addressed the economic sciences before an audience that included 17 nobel prize winners. two of those laureates spoke with bloomberg television about on monetaryments policy. >> obviously they have a problem, in the sense that quantitative easing was an experiment in our modern times. quantitative tightening will also be an experiment in our modern times and, that means that they have to decide what rate and how to reduce the large balance sheet that they currently have.
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secondly, how that interplay's with increasing rates. i think at the current time the markets tend to be saying in a sense, let us wait and see and watch them evolve, that process of reducing the balance sheet and increasing rates. my view is that the threat of inflation tends to be muted and that gives them more degrees of freedom to experiment, and to see how to reduce the balance sheet size. and not do it precipitously or with the great threat associated with inflation hanging over our heads. >> after mario draghi's centrist speech, it seemed like the trade went through -- they wanted to buy european equities. it was a trend that played out in the u.s. over the last few months. is it the smartest way to go in into friday's speech?
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>> not really, in my opinion. i think that basically after the trump election, united states, there was a great belief in the changes in policy for capital investment. and deregulation changes and tax rules, infrastructure spending, which is actually a growth in -- impetus for the market. maybe then, a steady increase in rates, and obviously, we have seen over the last. -- over the last period of time, rates have tended to fall off and the view is that the united states might be in a weaker position than is europe. the market tends to be signaling strength in euro and yen and a weakness in the dollar at the same time, looking like there could be an increase in rates within the euro to a greater
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extent than in the u.s.. it is really more so, that it will be a headwind for equities but not necessarily a huge downdraft at this particular time. >> there has been a lot of conversation, in the u.s. in particular, about passing the baton for monetary policy and we have seen that handoff fumble a bit here in the last few months. how do you ensure it happens most efficaciously? >> i think it is very difficult. it is a little hard to understand why the reaction of politicians and even the public, to a crisis tends to be fiscal contraction and concern about deficits. when in fact, appropriate -- the appropriate response would be fiscal expansion when our inflation rate is too low. i think what has to -- we really need to have a willingness on
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the part of policymakers and even central bankers to talk about the extent to which their ability to control inflation depends on cooperation from fiscal authorities. >> what did you make of the comments that president draghi made this morning about the way -- forward guidance and the way that central banks communicate and how they intend to do it? how much of the deficit do you feel as to the way the central banks communicate their thinking? >> i think it is true. they have, they tried to communicate their willingness to keep interest rates low for a long, and that one of the ways -- one of the ways that unconventional monetary policy had some effect was by demonstrating that they really had a commitment to expansion. that helped to back up their assertions about long periods of low interest rates. i think that communication did work, and did have some good
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effects. >> but the main event for central bankers this week was undoubtedly the jackson hole economic symposium. bloomberg reporter kim was there and he set for interviews with two top federal reserve officials. starting with kansas city fed president esther george. esther: so when i think about inflation him up mike think about our mandate which is price stability. relative to an economy that is growing at 2% and adding jobs, i think you are in a pretty good place and we still have very accommodative monetary policies. it tells me that we should begin to gradually remove that accommodation. as long as the outlook supports that we are moving in the right direction, and i think we are. >> so that suggest that you are in favor of yet another rate move this year? esther: that was my last forecast and each year we put those together, a new
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opportunity to look at the data. i will be looking at the data in the next few weeks as we get ready for the september meeting and see whether it makes sense. based on what i have seen today, i think there is still an opportunity to do that. michael: so by the end of the year? not necessarily by the end of september? esther: no, not necessarily -- i do not consider a right past a commitment, i do not make the meetings. michael: to what extent is inflation a lagging indicator, something that fed officials have argued for a long time? in other words, is the phillips curve broken, or lower than it has been in the past, what has happened to inflation? esther: i don't know if i have a good answer for you there, many people are studying that very issue. things i look at when i look at inflation, the price of goods, that has been falling. maybe that is due to technology. there are a number of factors which i think have been pressing down. when you look at services, which is two thirds of the economy, ec those rates have been saying
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-- those rates have been saying at 2% and higher. in the context of the economy we have today, i think you have to be careful getting too focused on point estimates as opposed to the broader trends that you see and the expect haitians that are out there. -- expectations out there? >> i have been a strong advocate that we raised the trends that the interest rate this year. that gets us to 125. my own judgment is that we are making progress on reaching full employment, gdp should grow an extra 2% this year. we are obviously not meeting our inflation target, but the bigger thing i would say is, we are a little bit closer to the neutral rate and people might think. 10 years ago i might have said that the neutral rate, the rate at which we need to not be -- we need to be restrictive, would be at 5%. today, i think that number is closer to the mid-two's. maybe 2% or 3% range. when he to be a, dated the not -- that means we are accommodative, but not quite as
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accommodative as people would think. i think there are structures in the economy creating a muting effect on inflation so i think we should be removing accommodation and it should be done gradually and patiently. i think we look forward to do it gradually and patiently which is all i have been advocating. i want to be patient and see how these forces unfold regarding inflation and i think we can afford to be patient. and does not mean we might not raise it one more time this year but a need to see more data that we are making progress on our inflation mandate. i think we have the ability to that. -- to do that. >> if inflation stays above where it is, does that will out the summer for you? >> i still believe that the cyclical forces, as we are removing slack from the labor force more people employed, we are creating some wage pressure. we are likely to great some price pressure as well, not the way we have seen historically. i do not think it will be as binary as inflation is moving, i think inflationary pressures are
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moving, i just think they are moving gradually and the fed can afford to remove accommodation gradually and patiently. >> if you leave the rates where they are, is that actually going to help bring inflation up? >> i think the key judgment you make when you're talking about this is whether we are accommodative, and i think we clearly are. today it is in the mid-2s, and we are 125, we are still accommodative. i think that is where we are, and i think that the performance of the economy is consistent with that view. ♪
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♪ julie: this is bloomberg best, i'm julie hyman.
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earnings season is winding down but investors to have plenty of quarterly results this week including from the commodity sector. some important news was shared. >> the company reporting a miss on underlying profit, coming in at 6.7 billion dollars, a dividend of $.83 per share. the headline grabber though, was the company's plan to sell its u.s. shale unit area -- unit. what is your preferred strategy to make a clean exit? >> for now our prepared strategy is to make a small number of trade sales. we are keeping other options so that we can proceed with a reasonable amount of pace but for now, we think a trade phil -- trade sale would work best. >> how quickly are you planning to complete an exit? >> it is too hard to say, we have to be patient, we know what our businesses are worth. we will continue to add to their value through our technology and some modest investment. but on the other hand, we don't want to lack urgency which is what we have other options in
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wings if trade sales are too complicated and too difficult to execute. >> it is the world's fourth biggest iron ore exporter and it -- out with its report. double, theyhan are trying to slash costs. talk us through the numbers. >> we had 174 million tons of product shipped. that is an all-time record for fortescue, one million tons over last year, because we have been focused on creating growth and value for our customers and the company. costs are down a further 7%, following our focus on productivity and efficiency to make sure that we have long term sustainable costs across the business. further $2.7a billion worth of debt with the cash flows we have been generating.
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as you mentioned, we have more than doubled net profit after tax to $2.1 billion. that has followed on with a dividend of $.25, a final dividend of the year. anna: antofagasta in the mining sector, numbers coming in at 1.8 billion dollars,. corporate production is up, and the outlook is positive. talking about the outlook being positive. flesh that out for us. positive on the market and i think the strength of the company, on the back of the first half talks to a good outlook in terms of performance. we had a very good high quality set of results in the first half of the year and production is up 7%, sales up 14%, costs down 2%. this has enabled us to capture a increasing copper price which we had in the first half of the year. manus: are the prices
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sustainable and the you see a deficit in 2018 and 2019? >> in the copper space, i think the outlook and the emerging markets, especially in china is much more favorable. we are seeing sustained growth in copper demand leading to a -- link to urbanization and the move extra in is doing to the consumer economy is much more intensive in copper when it comes to electronics and the likes. we are also seeing a very significant change or disruption technology wise with electric vehicles in the space of clean energy and clean transport. which is amazing. >> south32 reported earnings which jumped eightfold, the underlying profit rose to $1.15 of june.n the 12 month how much of it was because of the recovery we have seen in commodity prices? >> a very large part of it can be attributed to that, betty. pretty great results from south32. we were expecting a little more in the profits come up closer to -- still a mess at 1.1 5
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billion, they were closing a little closer to 1.18 billion but that is not had. it was about the recovery in the coal price, important to south32 and manganese, south32 the world's largest producer of south manganese. >> commodity prices continue to -- introng and that is china, economic development has been stronger than expected and this has led to dramatic shift in the next 12 months. >> salesforce reporting that are -- better than expected second quarter earnings. they raised their revenue forecast for the fiscal year but shares are falling in extended trading, down about 2% right now. competition is ramping up from companies like oracle and microsoft is rising. what is the take away when you look at the numbers now? >> overall a very good quarter, you will see that overall all divisions did very well, even the large division sales.
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i think there is some billing guidance for next quarter, and this quarter, it came to around 27 or 28% and i think next quarter it is not as strong. but if you look at a company like salesforce, there's a lot more seasonality in business, like any large software company. thet more deals close in fourth quarter with larger clients and i think you will see , a shift in revenue, which is what you are seeing here. >> the chinese delivery giant zto reported earnings that missed estimates. as well as third-quarter revenue forecast, even below analyst predictions. what do you do about getting yourself weaned off of one company, and i am talking about alibaba. 70% of your volume is from that company. how do you diversify from that? >> that is a good question. we have been a very long-term and very strategic partner with alibaba.
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actually, our exposure to alibaba platform has been declining over time. last year it was about 75% and now it has declined to about 71 or 72% this year. we think we share a common goal with alibaba, because our common goal is to improve the service quality that we provide to the many merchants and consumers at the alibaba platform. so that we can attract more merchants doing business through the alibaba platform and also attract more consumers to and on -- that spend on the alibaba platform. everyone will benefit from that process. >> the shares in wpp has plunged this morning, after the company cut its fourth -- full-year revenue forecast to slash market spending particularly in the consumer goods sector. >> there have been concerns about wpp, earnings going down, a real confirmation that
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the pressures people feared, such as cutting back on spending on its biggest clients. that is starting to hurt wpp. mark: the ad market has been hurt recently because of brexit, and the u.k. is one of your strongest performing regions in the last quarter. how are you weathering that. >> welcome, i think that maybe something to do with more the micro level -- we had a strong market share, a lot of good people, doing a very good job. that is one thing, maybe the other thing is -- and this is just a hypothesis, that with the answer to around, fixed -- uncertainty around, fixed capital investment, there is a lot of pressure. there are signs indicating that it is under pressure and the brand innovation, in the context of this uncertain environment, as we may or may not go through a transition, in brexit after march, that could be putting more pressure on and people could be taken the other route -- could be taking the other route of investment in marketing.
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>> bringing fresh produce from rural farms to urban tables can be a challenge. but it has also crated opportunity in the growing industry of urban farming. >> isand greens -- building greenhouses on rooftops in major cities using technology to make it possible to grow food year-round. the cofounder and ceo tells us his story in our latest edition of "small to big." ♪ >> we operate high-tech greenhouse facilities for fresh vegetable production in the city. i was working in the field of sustainability and environmental engineering and i became fascinated with the technology that was available to be able to grow crops using a small fraction of the resources compared to conventional farming. at the same time i started to recognize the growing trend in the marketplace for consumers wanting more local and regionally sourced foods. that is really when the lightbulb moment went on.
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we cobbled together some funding and built a 15,000 square food rooftop greenhouse in the greenpoint neighborhood of brooklyn. in 2011. we started pitching market chains, restaurants, inviting chefs into greenhouse facilities and within three months we were completely sold out of produce. realized we were onto something and could probably expand. then a really compelling partnership opportunity came on with whole foods which has been our largest customer. we crafted an idea to design and build a commercial scale greenhouse in the roofs of one of their new supermarkets in brooklyn, new york, that was almost double the size of the first one and provided our brand with a lot of visibility. lo and behold, within a few short months of opening the second greenhouse facility, we were yet again sold out of the produce. so we started to look at chicago, which is also a city with a thriving food culture and consumer base demanding
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high-quality fresh produce and that is our largest to date, -- and the facility there is now our largest to date. about 80,000 square feet, about two acres, the equivalent of about 50 acres of farming. this form of farming known as controlled environment agriculture is a combination of horticultural science as well as environmental engineering. it was a challenge finding people with a very unique skill set. we conceived of an idea to establish a in-house training program. we call it gotham greens university. we are able to take young graduates from university who focus on science and biology and design facilities and operate them. our company has built for -- four greenhouse facilities across two cities and we have about 150 employees. we have experienced about a 20 x growth rate since inception. in our first year of operations we grew about 500,000 heads of lettuce and leafy greens. last year, we grew over 20
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million heads of lettuce and leafy greens. in the future we plan to expand to other cities across the united states, expanding in new product and new product development. our motto is to be able to harvest and deliver within 24 hours, to be apple to provide consumers with the freshest possible product and the best tasting product. ♪
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♪ >> i am looking at a chart of an intraday california solar production. this is the last three days, try to spot the moment when the sun was blotted out by the moon. actually, i highly did -- highlighted it, it is cheating. julie: there are about 30,000 functions on the bloomberg app and we enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is one that is useful, quic go which leads you to our quick takes. you can get important context and fast insights into timely topics. here is a quick take from this week. ♪
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♪ julie: that was just one of the many quick takes you can find on the bloomberg. you can also find them on as well as all of the latest business news and analysis 24 hours a day. that is all for "bloomberg best" this week. thank you for watching, i'm julie hyman. this is bloomberg. ♪
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so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. >> from new york city and to
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our viewers worldwide, i'm jonathan farrow. 30 minutes dedicated to real fixed income. this is bloomberg "real yield." ♪ jonathan: the world biggest central bankers gather in jackson hole and they hear from mario draghi. janet yellen offers a broad view of the rules and they look at the height of concerns over the u.s. debt ceiling. we begin with a big issue in jackson hole, little about yellen and maybe more about draghi. >> i'll be paying more


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