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tv   Bloomberg Best  Bloomberg  August 26, 2017 12:00pm-1:00pm EDT

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♪ julie: coming up on "bloomberg best," the stories that shaped the week in business around the world. president trump gives investors plenty to think about. pres. trump: 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. pres. trump: believe me 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. julie: a big deal rocked the energy sector. warren buffett sees a big duffel apart. samsung's new phone gets a good deal of attention, and carl icahn gives a big blow to his rival, bill ackman.
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>> not the best return on a short position. julie: ireland's prime minister wonders exactly what great britain is looking for in brexit talks? >> what does the united kingdom want with the european union? julie: central bankers take center stage at jackson hole, and we sit down one-on-one with two fed president. >> i think you have to be careful on the estimates as opposed to the broader trends. >> i think we should be riggelman accommodation, but it should be done gradually. julie: plus, a roundup of the week's most intriguing earnings report. >> we had a very high quality set of results. >> we have to be patient, we know what our businesses are worth. julie: it is all straight ahead on "bloomberg best." ♪ julie: hello, and welcome. i'm julie hyman. this is "bloomberg best." your weekly review of important
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analysis from bloomberg television around the world. let's start with a day by day look at the top headlines. the week began with the major deal involving a pair of european energy companies. >> another sign that m&a activity in the energy sector is picking up today. agreeing to buy oil and gas unit. the price a little over $1.9 billion in cost. toldhief executive bloomberg surveillance that total was the right suitor for the company. >> we looked at the various options, everything from ipo and also possibilities for selling businesses to other parties, and came to the conclusion that the offer from total was the most attractive both from a value point of view, and also the commitment that total is making to develop the business in denmark and elsewhere. >> during a conference call with
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reporters, emphasize that he was actually acquiring very good goodation all -- very operational expertise and this , is something you just don't get like that unless you buy it, and this is what he is doing. they were both interested in iran and africa. so, 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 keep u.s. forces there as long as it takes to deny terrorists a haven and bring about a political settlement with the taliban. pres. trump: our commitment is not unlimited, and our support is not a blank check. >> he will add about 4000 troops to the already 8600 troops on 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. lift, this is a very small 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. john we have gone back to the : 1930's according to ray dalio. politics more prominently will play a greater role in the financial markets then we have experienced in any time in our lifetime. but in a manner probably similar to he says he is tactically 1937. reducing risk on concerns of government efficiency. the recommended that they put 10% of their assets in gold. >> there is no doubt coming into this year, there was a lot of expectation that we were going to see some sort of tax reform, maybe regulatory reform, and fiscal spend, and that would be an impulse to the u.s. and
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global economy. all of that seems to have dated, -- all of that seems to have faded, but the market has shaken it all off. david 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. >pres. trump: believe me if we , have to close down our government, we are building a wall. david: 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 -- let's load it up with a border wall. >> that is exactly right. the president is throwing a wrench into the process. 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. now, the president is drawing a line, saying in order to keep the government open cast have funding for a walk. there is no consensus in congress about how to pay for a
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wall, let alone how to pass a budget and raise the debt limit. this is going to be something difficult for the republicans to do and the president made it harder. as investors far are concerned and markets 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, many investors that i have spoken to are worried the many 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. and i think market volatility will inevitably increase. >> after threatening a government shut up, president donald trump blaming the debt ceiling mess on gop leaders in congress. this morning, the president tweeted, quote -- i requested that mitch and paul tie the debt ceiling into the popular v.a. bill for easy approval.
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they did not do it, so now we have a big deal with dems holding them up on debt ceiling of her will have been easy, now a mess. >> this is really complicated politics by now, but there are two widow storylines -- there 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. there is also the one in which he said, the only problem i have with mitch mcconnell is that after hearing repeal and replace for seven years, he failed. >> janet yellen about to speak in jackson hole and let's get the details from bloomberg's michael mccain. >> everybody, take your fingers up a trading button. you will not be trading are selling on this this is the one. boring janet yellen. her speech largely a recitation
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of the history of the financial crisis, and repertory failures, and how things have improved since then. two dozen that there is some rope for improvement, and that other tweaks could be made to dodd-frank regulation. but in general, this is a speech about federal reserve and government success in regulating the financial system since the crisis, and not at all about the economy. >> mario 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 openness, and is concerned about protectionism. and he is concerned about how to make multilateral cooperation sustainable, fair, equitable. but when it comes to the currency, what you can take away is that either mario draghi is not concerned about the euro explicitlydid not
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did not 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 bulls by indicating he will slow them down. julie: still ahead as we review the week on "bloomberg best," ireland's prime minister weighs in on brexit. plus, two size up mario draghi's pronouncements on qe and two fed 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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julie: this is "bloomberg best." i'm julie hyman. let's continue our global tour of the week's business stories with a clash of investment titans. carl icahn and bill ackman on herbalife. >> herbalife. this may be the stock that has 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 that the major shareholder, carl icahn has , agreed to limit his holdings to know more than 50% unless he wants to buy the whole company. is this a carl icahn victory? >> certainly. in his fight with double bill ackman in the stocks. bill ackman took a short position in 2012. david where was the stock : trading then? >> about 50% lower than now.
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so, you know, not the best return on a short position. >> what does all of this back and forth between carl icahn of the company, and what does this tell you about herbalife right now? >> well, the fact that there is some interest is positive by a private equity firm. i think they will go back to the ultimate peak of sales, which was it. -- which 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. >> a new player in the energy battle. sempra is outbidding berkshire hathaway after elliott management triggered a public battle for the company by announcing its intentions to rival the $9 billion bid.
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>> i think that is probably more to do with paul singer than anything else. onnie: why exactly? >> >> well, as you recall, elliott management owns the bulk of their unsecured debt and didn't agree with the terms of the buffet bid. so they opposed it. and now, we have obviously got a raised bed that addresses some of the issues they had with the unsecured debt, and how much they were going to 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 spotlight is on the features of the phone as it coincides with the 10th anniversary of the iphone. , thee new iphone superduper version of the iphone, will it be a demonstration of this apple philosophy -- let's not be
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first, let's be best? >> yeah, you got it. the sharper contrast screen that shows colors more vibrantly, bigger screen and the smaller form factor. these are all ideas that have been tried before. we have the essential phone launch last week. we have another samsung launch earlier this year. with this idea that they are going to put a really big screen in a really small phone. and that is exactly what apple is going to do with this souped-up version of the iphone. they are want to have this 3-d sensor. we describe it as the crown jewel of this iphone 8 phone. instead of using your fingerprint to log into the phone, you will be able to scan your face. it will know it is you holding the phone and looking at the phone, and no to stay unlocked or lock the phone or prepayment when it is you actually using the device. lost aung cost mover has
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new galaxy note -- samsung's mover has launched a new galaxy 8, stepping up the fight with apple. the largest samsung phone yet, possibly its most important. >> it is the latest phone since the last one was scrapped after reports of catching on fire. a flashy event here in the park armory in midtown manhattan, and 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 very large-screen and a very large display. it is the biggest phone yet. and another plus is the stylish -- is the stylus, which is skinnier and more pressure resistant than before. on top of 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 are still going to have to wait and see if they bounce back from the problems of last year. >> british prime minister theresa may wants to take back control of the country's boards -- lords of europe. now, her government is willing to accept a cooperative
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relationship with the european court of justice. a new positions as a 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? >> yeah, it is a redline that has become wiggly, perhaps. a bit more wiggly, perhaps. it was of huge importance to the brexiteers. theresa may had said in october that brexit meant leaving the jurisdiction. now it means leaving direct jurisdictions. they are abiding by past 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 their market analysis
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to european money managers. the practices under threat from two regulations that come into effect january the third. >> under new rules in europe, the wall street banks wouldn't be able to bundle their free research with other services they offer. if they did, they would come across new rules in the u.s., additional rules they have to register with asset managers. it could be costly, open them to legal risks. so what they have been doing for months is pushing the sec to compensate some way where the rules can between, or continue to operate as they still do , while complying with the european rules. is that the learned sec now seems to be picking up the pace to come up with something. but the clock is really taking. >> paris or frankfurt? that is the big question buzzing around at bank of america. executives are divided over where the european trading hub should be after brexit. >> my reporting is showing
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inside bank of america, there are all of these deliberations going on to figure out where should be go after brexit? where should are trading headquarters be? what i in hearing from people's -- what i'm hearing from these people is that we have three cities on the list at this there point. 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 being split amongst those two cities as well. a lot of it is there different debating ideas that have been floated. >> president donald trump has been promising to ease financial regulations in a piece out from bloomberg today. these are polls under great cash consideration could raise profits 20% to six of the largest banks, adding $27 billion of gross profit. among the banks that could benefit the most -- jpmorgan
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chase and morgan stanley could benefit the most. where is this money coming from? leverage constraints. >> right. these are the rules that banks have complained as they were being implemented. they were being dragged into these things. they always said no. this is going to hurt us. and of course, the earnings have been muted over the years. but slowly they have in , improving and these were relaxing some of the rules. they could help by more treasuries and 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. >> amazon will start cutting prices at whole foods market on the same day 13 $.7 billion is monday. set to close.
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whole foods will lower prices such as chickens, eggs, and some vegetables. grocery stocks did slip on the news. investors think amazon is going to come in and do something with whole foods and reshape the grocery space. is it possible? >> we knew they were going to do something, but it is surprising how fast. they are doing this monday. we were calling around this morning to whole foods stores. managers are saying, i don't know what you are talking about. [laughter] they did not even get the message yet. >> 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, weeks, for a traditional grocery to do. amazon is saying, no. we are amazon and we are going to do it monday. in the price of chicken, kale, eggs are going down. they are going to build a dynamic pricing algorithms at an industry that is never experienced than before. samsung heir jay
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, 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. the other two got suspended sentences. the court found him guilty of currying favors, giving money, bribes in order to consolidate his power in samsung. you heard just a few minutes ago from the current president who the samsung helps ruling would end government business collusion. ♪
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♪ julie: welcome back to
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"bloomberg best." i'm julie hyman. as prime minister theresa may tries to negotiate the brexit, it has been slow going. the economic path forward is none too clear. a visiting canada this week, irish prime minister spoke frankly with bloomberg television about his frustrations with the process. >> do you get the sense that the e.u. is pleased with the progress it has seen so far? >> no. be right to say on behalf of the european governments, that we are not satisfied with the progress that has been made so far. however we will continue in the , ongoing talks. michelle barnier, david davis, we will let those talks continue. we hope the more progress can be made, and that the progress of the sufficient when we meet in october, to allow the tops to continue. but to date, the progress has
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not been sufficient. 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. access to health, education as we do now. , also the ongoing commitment by 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 on the island of ireland. and we don't have sufficient progress on that. >> say the u.k. doesn't get that doesn't get the kind of trade it once with the e.u. how concerned are you they say we put in a hard order between the republic of ireland and northern ireland? >> i suppose where we are confused and puzzled is very much at the premise of your question. what trade agreements does the united kingdom what with the european union? at the moment, they have the best trade deal possible and imaginable, which is a customs union and access to single european markets and the european economic area.
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what they seem to be suggesting all along, really for the last 14 months now, if that they want to have all of the advantages of being in the e.u., but none of the responsibilities and cost, and that is not a realistic position. we are waiting to see what they would like to see. we think that really strikes me being here in canada is that a month from today the canadian , european trade agreement will come into force when britain leave the european union, it is not only leaving it, but it is leaving the trade agreement europe has made with countries like china, japan, south korea. not yet clear to us what are these better deals the , british government wants from europe and other countries? i think some more clarity in that area would be helpful. julie: coming up on "bloomberg best," more of the week's most compelling conversations. a couple of noble economist talk about the ecb and the future of qe. in the caught up with a pair of fed presidents and jackson hole. >> clear closer to the neutral
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rate then people might think. julie: this is bloomberg. ♪ [laughter]
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♪ julie: you're watching "bloomberg best," i'm julie hyman. ecb president mario draghi was a busy man this week before delivering his anticipated 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 his remarks on monetary policy. >> obviously they have a problem, in the sense that as quantitative easing was an experiment in our modern times, quantitative tightening will also be an experiment in our and that means that they have to -- modern times and that means that they have to decide what rate and how to reduce the large
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balance sheet that they currently have. second is how that interplays with increasing rates. i think at the current time the markets tend to be saying in a sense, lets 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. but 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 was on a short bund and with the trade that played out in the u.s. in the past be months, as well. 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 in united states, there was a great belief in the changes in policy for capital investment. and deregulation changed and tax rules, infrastructure spending, which was a growth impetus for the market. and also the debt. inflation maybe a steady increase in rates, and obviously, we have seen over the last period of time, rates have tended to fall off and the view is that the u.s. might be in a weaker position than is europe. so that the market tends to be signaling strength in euro and yen and a weakness in the dollar at the same time, thinking there could be an increase in rates, the real rate within the
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euro to a greater 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 from monetary policy to fiscal policy. 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, 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 the part of policymakers and
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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 forward guidance and the way that central banks communicate and with how what they intend to do? how much of the deficit do you feel as to the way the central banks communicate their thinking? >> i think that it is true. they tried to communicate their willingness to keep interest rates low for a long time, and 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 effects.
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julie: but the main event for central bankers this week was undoubtedly the jackson hole economic symposium. bloomberg's michael mckee was there and he sat down for interviews with two top federal reserve officials. starting with kansas city fed president esther george. esther george: so when i think about inflation, i think about our mandate which is price stability. relative to an economy that is growing at 2% and adding jobs, i think we are in a pretty good place and we still have very accommodative monetary policies. that tells me we should begin to, as indicated, gradually removing that accommodation. as long as the outlook supports that we are moving in the right direction, and i think we are. michael: so that suggests you are in favor of yet another rate move this year? esther: that was my last forecast and each time we put those together is a new opportunity to look at the data. i will be looking at the data in
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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 in september? esther: no, not necessarily -- i do not pick a meeting and i don't consider the rate path a commitment. michael: to what extent is inflation a lagging indicator, something fed officials have argued for a long time? in other words, is the phillips curve broken, or neru 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 i think maybe pressing down. when you look at services, which is 2/3 of the economy, you see those rates have been saying at 2% and higher. in the context of the economy we
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have today, i think you have to be careful getting too focused on a point estimates as opposed to the broader trends that you see and the expectations out there. >> i have been a strong advocate that we raise the fed fund rates twice this year, and that gets us to 100 to 125. my only 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 then people might think. i think 10 years ago i might have said that the neutral rate, the rate at which were neither accommodative or restrictive, maybe 4% or 5%. today, i think that number is closer to the mid-two's. maybe 2% or 3%. that means that 120 to 25, we are accommodative, but not quite as accommodative as people would think.
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i think there are structural forces in the economy creating a muting effect on inflation so i think we should be removing accommodation but 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. that does not mean we might not raise it one more time this year but i would like to see more data that we are making progress on our inflation mandate. i think we have the ability to do that. michael: if inflation stays above where it is, does that roll out december for you? >> i don't want to prejudge it. 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 create some lag with price pressure, not the way we have seen historically. i do not think it will be as binary as inflation is moving, i think inflation pressures are moving, i just think they are moving gradually and the fed can afford to remove accommodation,
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therefore, gradually and patiently. michael: 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 if we are accommodative, i think we clearly are. let's initial rate today for , example, it is in the mid-2s, and we are 125, we are still accommodative. i think that is where we are, all things being equal, 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. earnings season is winding down but investors still have plenty of quarterly results this week, including from the commodity sector. along with its numbers, they
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shared some important news. >> reporting a miss on underlying profit, coming in at $6.7 billion, with a dividend of 83 cents per share. the headline grabber though, was the company's plan to sell its u.s. shale unit. what is your preferred strategy to make a clean exit? >> for now our prepared strategy is a small number of trade sales. we are keeping other options there so that we can proceed with a reasonable amount of pace but for now we think a 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 why we have other options in the wings if trade sales are too
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complicated and too difficult to execute in a reasonable time. >> it is the world's fourth biggest iron ore exporter and it is out with its annual reports. profit more than double, they are trying to slash costs. talk us through the numbers. >> we had 170.4 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 making sure we create growth value for our customers and the company. costs are down a further 7%, and in cost terms, that is following our focus on productivity and efficiency to make sure that we have long term sustainable low costs across the business. we paid down a further $2.7 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 followed on with a dividend of 25 cents, a final dividend of the year. anna: antofagasta in the mining sector, numbers coming in at $1.08 billion and corporate production is up, and the outlook is positive. flesh that out for us a little bit. >> we are very positive on the copper market generally. i think the strength of the company on the back of the first half also 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%. all of this has enabled us to capture an increasing copper price which we had in the first half of the year. manus: are the prices sustainable and do you see a deficit in 2018 and 2019?
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>> in the copper space, i think the outlook in the emerging markets, especially in china is much more favorable. i think we are seeing sustained growth in copper demand, and this is linked 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 that jumped eightfold, the underlying profit rose to $1.15 billion in the 12 month of june. 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. very good results from south32. and a full increase in profits. $1.15 billion, a little bit
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closer to $1.18 billion but that is not had. it was about the recovery in the coal price, important to south32 and manganese as well. south32 the world's largest producer of manganese. >> commodity prices continue to hold strong, and i think that is predominately fueled by what we are seeing in china where 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 microsoft, oracle and cloud services. what is the main 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. i think there is some confusion about billing guidance for next
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quarter, but you look at it, 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. a lot more deals close in the 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 below analyst's lowest predictions. what do you do about getting yourself weaned off of one company, and i am talking about alibaba. 75% of your parcel 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. actually, our exposure to alibaba platform has been
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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 help improve 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 a lot more consumers to spend on the alibaba platform. everyone will benefit from that process. >> the shares in wpp has plunged this morning, after the world's largest revenue company cut its market spending particularly in the consumer goods sector. >> there have been concerns and there is real confirmation that the pressures people feared, such as cutting back on spending on its biggest clients.
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that is starting to hurt wpp. mark: the ad market has been hit recently because of brexit, but you whethered that. the u.k. is one of your strongest performing regions in the last quarter. how are you weathering that? >> well, i think that may have something to do with more the micro level and 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 , thanksnty around capital investment is under pressure. brandand, innovation and in context of this uncertain environment, as we may or may not go through a transition period in brexit after march, that could be putting more pressure on and people could be taken the other route to invariable investment in marketing. julie: bringing fresh produce from rural farms to urban tables
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can be a challenge. but it has also crated opportunity in the growing industry of urban farming. gotham greens builds and operates greenhouses on rooftops in the heart of 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." ♪ >> gotham greens is an urban farming company. we develop 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 moments went off. we cobbled together some funding
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and built a 15,000 square food rooftop greenhouse in the greenpoint neighborhood of brooklyn. we started pitching market chains, restaurants, inviting chefs into greenhouse facilities and within three months we were completely sold out of produce. that is when we realized we were onto something and could probably expand. then a really compelling partnership opportunity came on with whole foods markets, which has been our largest customer. we crafted an idea to design and build a commercial scale greenhouse into 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 high-quality fresh produce and that facility is our largest to
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date, about 80,000 square feet, or 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 an in-house training program we now call gotham greens university. we are able to take young graduates out of university who focus on science and biology and train them to design facilities and operate them. our company has built 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 million heads of lettuce and leafy greens. i believe the future will have us expanding to other cities
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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 able 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 highlighted it, it is cheating. julie: there are about 30,000 functions on the bloomberg, and we enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another you will find useful, quic 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 bloomberg.com, along with all of the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thank you for watching, i'm julie hyman. this is bloomberg. ♪
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so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver.
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♪ david: at one point, your father left your mother. ginni: it was sudden, and my mother found herself with four kids and no money. david: lets talk about ibm. ginni: we are the champions for business. david: when you meet with a president, are they willing to say mr. president, that is not a , good idea? ginni: people are respectfully on a singular opinions. david: do you feel a certain possibility? ginni: women do need role models. david: in the stay fit category. ginni: the difference is he does not get to hit me. >> would you fix your tie, please? david: people wouldn't recognize me if my tie was fixed. just leave it this way.

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