tv Bloomberg Markets European Close Bloomberg October 17, 2017 11:00am-12:00pm EDT
bloomberg markets. ♪ mark: here are the top stories we are covering from the bloomberg. u.k.,ion heats up in the reaching 3% for the first time in more than five years. should credit suisse be doing more to create value for shareholders? aswill hear from both sides the banking giant makes slow progress on its turnaround plan. we are going to hit the road with the president of general motors, dan ammann. automaker is making a push into autonomous vehicles and ridesharing. when will they see a pair -- a payoff? have a look at where european equities are trading now, 30 minutes until the end of the tuesday section.
liv-ex is higher three quarters of 1%. all these currencies are falling on the second column against the dollar. the u.k. five-year yield is lower by five basis points. climbing in the u.k. to its highest rate in five years in september, boosted by the cost of food and transport. 3%, the prices rising fastest pace since april 2012. the increase in tense of five the squeeze on households. could strengthen the case for the bank of england to hike rates next month for the first time in more than a decade. that view was given some backing by governor mark carney earlier in testimony. he reiterated his views that a rate hike may be coming. let's stick with the u.k., the year we officials have convinced economists a rate hike is
imminent. more than three quarters of analysts expect the boe to raise in november. up from one in five last month. they predicted that could be the bank's last move for some time. the green line is the new forecast trajectory. the blue line is the previous forecast trajectory. i just want to get back to corporate earnings, richemont says estimates -- earnings beat estimates. illustrating how much the market has changed since last year when richemont was buying unsold cartier watches to reduce the glut in the market. richemont last year began a widespread overhaul in which the chairman abolished the group's chief executive position. they shuffled heads of various brands. richemont mayd
announce further changes . shares are down by about 1/5 of 1%. julie, you are looking at the currencies in reaction to some news from the likes of mexico and canada on nafta. julie: we had this report earlier that we were talking about, canada and mexico were said to reject the u.s. proposals on nafta. it looks like that is not a fresh headline. it has been previously reported. we did see the dollar spiking, it came back down and now it is heading back up. nafta talks are ongoing so we will see choppiness in volatility in the currencies. the canadian loonie is remaining dollar. -- remaining higher. we will bring you any further currency reactions. getting back to stocks in the u.s., very little movement, a mixed picture for the major
averages as investors are more focused on individual stocks and earnings. coming off another day of records for u.s. stocks. take a look at the bloomberg, we had a story out today that looked at what happened if you invested $10,000 in u.s. stocks versus other assets -- not just u.s. stocks, stocks globally, that is the white line. compared to things like the u.s. dollar and oil as well as bonds and gold, so obviously stocks have done better as we see this big risk on push. risk on is actually happening when it comes to earnings. spirit airlines came out and set its traffic in the third quarter fell less than anticipated and also that it's adjusted cost per available feet mile excluding the effects of fuel likely fell less than estimated in the third quarter. unitedhealth group is seeing a loaded -- lower cost.
its medical ratio lower than estimated in the last quarter as it is saying basically its customers spend less. harley davidson, investors are looking on the plus side of this one, the company standing by its annual shipment forecast even though worldwide retail sales were down 4.69%. a check on lululemon and alibaba , women's wear daily is lululemon ceo had preliminary talks with alibaba executives, including jack ma, on lululemon's role helping alibaba with its new retail, bringing a digital strength into the real world, into the bricks and mortar world. lululemon would potentially have some sort of role to play. lululemon is up 2.5%. credit suisse is facing restructuring presser from activist investors which rudolph bali is pursuing -- or pushing
for credit to be split into a tumbling unit. associates of harris dismissed the activist call. >> the reason why the activist is going after this inc. in particular is because it is undervalued. there is substantial or upside -- substantial upside. management has a plan in place that overtime should release value. mark: joining us from our is bloomberg's jan-henrik foerster. he want and why does herro disagree? >> obviously, they have different interests. thinks credit suisse is on a good path and the restructuring is gaining momentum.
the bank had flash costs and results are becoming better. the thing that emerged yesterday he hass activist shell, a small fund that he is managing, 3 million under the management. yesterday it was reported that he has taken a 0.2% stake in credit suisse and he thinks the bank is undervalued, and especially to complex. complex. business, and his big notion, the big notion he wants to bring across is that the path of the some is more valuable than this big, complex bank. this is what he is trying to find support for right now and he will speak at a conference on friday. task investors, shareholders, to
join his campaign. credit suisse put out a statement and they said, we stick to our strategy. mark: really quickly, is there a view that among the investment community that the plans put in place by tijane thiam are slowly bearing fruit? i think the stock has been rising about 10% this year. we saw a flurry of analyst and i guessently, that is kind of the overall investment perception at the moment, he still needs time to turn the ship around but the overall strategy in play is gaining momentum. there are also still critical voices who would say he needs to do it faster and the share price is undervalued. this conference on friday will isbably show whether bolli
gaining traction, and he needs to come with more concrete proposals. there are still many regulatory questions he would face. mark: great to see you, jan-henrik foerster. i think we have a new record. vonnie: we were so busy focused on everything else we just realized the dow topped 23,000 for the first time, another line in the sand. we appear to be making lots of lines in the sand, up 2/10 of 1%, bringing it above 23,000. the top performers, unitedhealth group, the top insurer in the u.s. and they are saying they are excited about potential alternatives to the affordable care act. up 2.5%,son & johnson helping to breach the 23,000 mark for the dow. let's check in on the first word news. courtney: islamic state's
self-proclaimed capital in syria has fallen. .he city has been liberated the fight for the city began in june and left thousands of civilians and fighters dead. much of the city is in ruins. president trump's choice to be withdrew his name from consideration. tom marino had pushed legislation making it harder for the drug enforcement agency to fight the opioid crisis. dieverage of 91 americans from opioid overdoses each day. despite a plea from president trump, steve bannon will not abandon his war against congressional -- republican congressional incumbents. he will keep backing insurgent candidates. truceesident is seeking a that could salvage plans to overhaul the tax system. stanford university economist john taylor appears to have boosted his chances of becoming chairman of the federal reserve.
that'smake a phone favorable impression on president trump after an hour-long interview. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. vonnie: automation is in the driver seat. gm's self driving plans have given the automaker a boost, up 45% over the year. bloomberg tax emily chang joins us from the wj sd live conference. emily: i am here with g.m. president dan ammann. thank you for joining us. dan: thank you. you are releasing another fleet of self driving cars in new york city.
why? was a reallycisco complex environment and we are doing really well there so it is time to go to the next more complex environment, new york city. the more complex the environment, the faster our cars learn. emily: you have 180 cars or so? up. we are ramping how fast you think you will get this from testing to scale? dan: everything we are doing is about getting the vehicles from the right performance from a safety perspective. then we will be able to take the driver out. emily: how profitable do you think a self driving riot hailing business can be for -- ride hailing business can be for gm? dan: we think it can be a big business over time. right sharing is just at the
beginning of what we see as a big transformation. emily: what kind of margins do you think you can make? dan: i think it is too soon to tell but it can be a significantly more profitable business than we are in today. emily: would you plan to sell the taxis or operate a self driving taxi ride sharing business? lots of different alternatives and how we can go to market but we see ourselves operating the fleet. emily: we just mentioned the deutsche bank analyst who suggested you could spin off mobility business and that could be up -- worth up to $30 billion. what would be included? of the big advantages we have is everything is integrated under one roof. the vehicle engineering and fracturing, and to move as quickly as we are having all of that capability under one roof is giving us a speed advantage. spinning outu say
the mobility business is not an option? dan: we are focused on moving as fast as we can to get to come partial -- commercial deployment . we believe the best way to do that is having all the capability under one roof. emily: investors are starting to realize gm's ability to diversify, perhaps better than other automakers. these things are still fairly far out into the future. how do they come together for you, and when? dan: there is a lot of linkage. you think about autonomous, we believe autonomous vehicles will be electric vehicles so there is another intersection with electrification. in terms of having all the capability we have under one roof gives us an advantage in how fast we are moving and how quickly we can bring this technology to freshen, and get it deployed. emily: your of made a big strategic -- you have made a big
strategic investment in lyft. lensthat has given us a and perspective into the ridesharing business. we think it is really at the very early stages of shared mobility, the intersection of autonomous. there is much more to come. emily: uber has obviously had some struggles over the last several months. do you see opportunity there? dan: in one sense -- in what sense? emily: to take advantage of some weakness. dan: autonomous and ridesharing, that is how the big opportunity comes together. ridesharing now accounts for 1/10 of 1%. .t is really early days we think the autonomous technology we will bring to fruition is key in unlocking that next set of opportunities. emily: what is the likelihood of increasing your partnership with left or buying it out right --
lyft or buying it out right? dan: we can go to market through different partnerships so all options are open. emily: how do you side which is the best? -- howdy you decide which is the best? dan: i would say the closer the technology comes, the more clarity will come. emily: when it comes to electrification, what battery costs will make it possible? dan: we can talk about cost per kilowatt hour but what really matters is to get the total vehicle profitable. an electric future and in order for that to come to fruition, we need to get the costs of better electric cars to be in line or better than combustion engines. we want to make sure we have the technical capability to solve that. emily: how close are you breaking -- to breaking even? dan: we are close. about thegm concerned
u.s. pushing for stricter rules for the amount of content in its cars that needs to be produced in this country? in the are engaged dialogue and are making sure that as people are making really important decisions, the full ramifications of those decisions are understood and whatever decisions get made get made in the best interest of the economy. emily: what are the risks of the , of your cars, of jobs plans in mexico and canada? situation,a complex set of rules, set of negotiations. we want to make sure everyone has the right information in hand as they think about the implications they have made so we can put the economy industry in our that's in the best position. -- in the best position. emily: when it comes to self driving cars, gm has been able to move faster than a lot of
people might have expected. when you say they will be on the road in larger numbers in a few years, what do you mean by "in a few years?" give us a timeline. dan: i cannot get more specific than that, but things are moving very quickly. we think we have an interesting approach in terms of getting all the technology integrated. we feel we have an obligation to bring the technology to commercial deployment a sin as possible because of the significant effect it can make on improving road safety. emily: is my five-year-old son going to need to get a license? dan: i do not know, but he will probably want one. emily: vonnie, back to you. vonnie: thank you, emily chan. governork of england mark carney setting the stage for the uk's first rate hike in over a decade.
♪ live from bloomberg world headquarters in new york, i am vonnie quinn. mark: live from london, i am mark barton. we are nine minutes away from the end of the session, inflation climbing to a five-year high. mark carney says a rate hike may be appropriate in testimony earlier today. he indicated inflation may peak soon. >> it is more likely than not that i will be writing on behalf of the mpc a letter to the chancellor. we expect inflation will peak in around the october, november
figure. peeking potentially above the 3% level. mark: joining us, john roe, legal investment management, head of multi-asset funds. quick peek at this chart, sixthr milestone, the milestone in six months. the 1000 point climb from 22,000 took 76 days. there are some stats. where does it end and when? john: when is obviously the killer question. this year has been a supportive year. a good job.ne the u.s. is not the top-performing equity market. emerging markets probably 10% higher this year so even though you have had all those milestones it goes to show what can happen if nothing goes wrong with european politics.
inflation does not really pick up so there is no pressure on the fed to raise rates more quickly. mark: can we see a u.s. earnings recession without inflation spiking up first? john: that is a key question, because otherwise you can used -- use inflation to hedge yourself. we have been looking, it theened twice before, in 1980's and a couple of years ago with oil. and you get a margin squeeze that causes investment to backtrack without a broader kind of growth shock? it is possible. people talk about elevator margins in the u.s. if you take tech at of the s&p, margins are just above their 10 year average so they are not as elevated as people make out if you take out the big winners. as those get squeezed you can get a backtrack in investment 1986 kind of
situation or 2015, caused a sharp appreciation of the dollar and oil selloff. ,he dollar has been very kind but if they keep raising rates in the face of low inflation that could go in reverse. vonnie: we might be looking at a tighter monetary past in the u.s. if it is john taylor that comes in to the fed. the president did praise him. what would happen, what taylor become extraordinarily tight, if you like? his rule would suggest three and three quarters percent is the number he would like to be at now or might he be more pragmatic? john: we would expect him to be more pragmatic, especially considering who his interviewer is. be thetrump plans to best president ever, great for markets, and it is clear to him
what will happen if interest rates are raised to bring quickly. the interview of was stemmed around, the taylor rule, you will not be sticking to that if you get the job? focus ond not just inflation, you need to look at broader financial conditions. i think that letter was partially written to try to himself.e him to trump i would not expect a change in policy. vonnie: interesting. in termsyou banking on of tax reform or other fiscal changes in the u.s.? john: we are expecting a call to half a percent at a time the united states is not need it. we are getting very close to the magic 4% unemployment number, well below what people thought the narrow is. we think a quarter to way half percent at the wrong time in the cycle should stoke wage inflation. we saw a similar path in the
mid-1960's with the onset of the vietnam war. low unemployment and inflation and there was about a 1% stimulus of gdp as a result of the vietnam war, and a cpi.t -- rapid pickup in that might give an indication of the danger in stimulus when the economy does not need it. mark: john roe, stay with us. look at what is happening with european equities, we are four minutes away from the end of the tuesday session. i will leave you with the currency board as we approach the close. this is bloomberg ♪.
since june 19. a busy day on the economic front . stocks rallying, data signaling that europe's biggest economy is on track for a solid expansion in the second half of the year. the index climbed to 17.6 in october from 17 in september. the estimate was for 20. after a bit of a lull at the start of the summer, germany's economy picking up pace. the dax index at or near a record high. the euro showing signs of stabilizing. busy get to spain, a couple of weeks since the catalonian referendum. a chart showing you the italian -german ten-year spread, the spain-germany spread. was spainws today cutting its economic growth forecast next year,
acknowledging the impact of the escalating crisis that led the court to jail two leading catalan separatists. catalonia accounts for 1/5 of spain's output. interesting things happening in japan. the nikkei on an 11 day winning run, the best since a 12 day streak ending june 2015. before that we had a 15 day run nearly 30 years ago, overseas investors buying in at $5.9 billion of shares in the first week of october some of the most in two and a half years according to the latest data. that is room for more fund flows because many foreigners are underweight japanese stocks. 5237 is your g #btv. you better get to the dow jones. vonnie: got to talk about that
23,000. 18,000ar we hit the milestone. we have done it six times since last year. her fresh and not investors do not care so much about these round figures, but it is a sign the bull market continues and we are grinding higher. today it was united health and johnson & johnson that pushed the dow over the 23,000 round number figure, but some of the stocks responsible for driving the index higher from the 22, , boeing, caterpillar, and 3m. interesting things happening in the market, the dollar-yen, a little bit of risk sentiment, 1 112 .31. the john taylor news was good for a few basis points curve flattening. down.oil
we are getting some iran headlines and that is helping the price in the last little 51.35. i want to point to the mexican peso as one of the two currencies that are top of mind with nafta fourth ground negotiation's -- fourth round negotiations. the ftse is still above the 19, weaker versus the u.s. dollar. mark: the global growth has broadened. investors may not see a big effect on equities. the central bank has moved toward shrinking its balance sheet. let's bring in john roe. i did ask you in the break, what would be your biggest worry? he said multi-asset funds accelerating inflation, a very simple chart showing you the imf world cpi, the blue line, the average is the yellow line, and
the surprise index showing on balanced inflation is missing forecast. what we see runaway inflation, and how are you protected? john: the reason it is such concern is because within multi-asset you own equities and bonds. you can see the bonds selloff and undermine the growth in your equity performance. that is why we worry about it. in terms of where we see it popping up, the u.s. has the strongest signs. still a few percent above precrisis unemployment levels whereas the u.s. is at 4.2. that is why we are focusing the protection, also because you can get in well below the fed target rates. they break even in the interest rates 40 to 50 basis points below their targets. in europe, similar discounts to their targets. a much tighter job market.
we have trump and his protectionism, the effort to bring jobs home. orthere is no one to do them if you expel immigrants and there is no one to replace them, you push down unemployment and push up wage inflation. that feels like the nexus where we should be focused. where we do not go is the u.k. mark: we have inflation and some would say we have it from a position of weakness and it will fall to the central banks to raise rates. how do you invest around that? john: we try to stick with the pound and the reason is the u.k. inflation market is dominated by u.k. pension schemes. if you want to buy those assets to match their long-term liabilities, they have been doing it for a decade. huge buyers. it is the only developed market where you pay a premium to hedge your inflation. you pay 60 basis points above the target to hedge medium and
long-term inflation, and that is where it stands out from the broader market. we are not matching liabilities, just focusing on client outcomes and we tend to stay away from it . if we take positions, it tends to be short. it might be too elevated relative to the global outlook. to the i want to point bloomberg chart library that illustrates what mark was talking about, the white line is u.k. cpi and the wage growth is the blue line. how far away are we from a very dangerous position where we are looking at stagflation or some kind of recession? john: it is a very difficult situation. this initial one, we will see inflation peak and it will fall back down and go back up in a few years. the u.k. has quite a slow pass-through for changes in the pound. dipped and go
back up again, so there is going to be this continued real income squeeze for the u.k. you have got to be conscious about the fact there is a decent amount of mortgages floating on interest and we are more impacted by interest rate hikes than the u.s. in the u.s. nearly all of it is based on 30 year interest rates which are much less susceptible to short and changes. at least all that purchases of housing over the last decade the change in interest rate deductibility and the increase if you buy and keep two homes, for all those reasons we see a 3% to 5% fall and we see the risk of a bigger fall. it is a delicate balance, which is why i think they will wait to see after this initial rate hike that may come in november, they will give it a decent period to see what else is happening on the economy before they commit to further hikes. vonnie: if you are staying out
of britain entirely and still looking at europe, what does the face of global trade look like? what is really positive is it has picked back up again. global trade has gone through this pause. it is not accelerating in the decade before the financial crisis but that was around china and the wto, but it is moving forward. risk is trump and similar tit-for-tat metrics in europe. we have seen these around islands and their treatment of taxation. the hope is that it will, that it is starting to pick up again. we may see one or two nations try to become isolationist, but actually the rest of the world tries to power on without them. you almost get people left out of globalization but without actually destroying it. mark: let's finish with japan,
as i did on my chart. this is the nikkei. we are at levels we have not seen since 1996. this goes all the way back to 1980 -- 1980. you like japan, you like equities. how long does it take to get back to 1989 levels? john: you would need a huge irrational exuberance scenario. what is helping japan is the yields on the 10 year has been successful. they have benefited from a generally weaker currency and are locked into the global manufacturing and trade cycle. it is those kind of reasons, coupled with the fact that we again,t abe and kuroda nice stability to continue their policies. they have achieved no change in inflation expectations and abenomics is back where it began. all they did was pump up prices
little. -- abigail doolittle. abigail: shares are down and they put up an excellent third-quarter, they beat adjusted earnings in beat in a big way on domestic and international subscribers. what investors may not like is that fourth-quarter subscriber is in line. that probably reflects the price increases. they are a winner in the race for content and amazingly, over the last year if you can believe how much the stock is up, more than 100% relative to apple, facebook, and alphabet. just winning against some of the others in a massive way. it is extraordinary this large-cap company is up so much. vonnie: the idea that they will spend a lot of money, is that impacting trade? julie: that could be a piece of it -- abigail: that could be a piece of it. we see that risk in the chart.
this is an extraordinary chart representing that extraordinary 100% gain. chart,look at this flatlining for a long time and around 2011 or 2012 starting to get big. and 2017, look at that parabolic. if the cycle ends were programming is driving subscriber growth, that could become an issue but it seems like the fundamentals are in tact but the stock is up so investors are taking some chips off the table. we are in line. vonnie: abigail doolittle, thank you. the chinese communist party congress gets underway tomorrow and leaders in beijing will grapple with things like economic growth, structural reforms, and so on.
double investors eager to see how china will deal with the linning corporate debt. with more, let's bring in john tan, head of financial markets for greater china and north asia, based out of hong kong. john: good morning. vonnie: we had a little bit of a preview at the weekend when the central bank governors -- the first time the china pboc says there was a little bit of worry about the amount of leverage in china and the amount of debt. will that come up this week? john: i think this party congress may need to consolidate power by appointing more presidencies and key leading positions. what that means is that it would be more efficient for him to execute his policy. also, he might start to do more difficult reform in the next five years such as the property tax reform, the land reform
appeared overall in terms of economic policies he will maintain its stable. we could look at a few areas. , i think china will finish the year around 6.8% gdp growth and next year we believe it will be 6.5%. 6.5% already gives enough. the bottom line is actually 6.3%. they promised the people of china that the gdp will double from 2010 to 2020, and basically 6.3% will do the trick. number two, i think what they will do is after the party congress they will make it more flexible in terms of rmb foreign-exchange movement. in the past two months, we have seen to volatility in the rmb exchange rate. it does not create any market panic and that is why be believe after the party congress a will speed up the whole reform and it
will be even more volatility on both sides. number three, the key agenda or the china government right now theo encourage inflows in market and control the outflows. that is why in july this year they started upon program in hong kong. that is a very exciting program that has triggered a lot of private side investors to register. 184 foreign entities that have already registered under this program. we believe by the end of this year we will see about 400 and two into this market. -- entering into this market. mark: there is obviously a lot plate, amending the party constitution, outlining his long-term vision, there is a lot to discuss. financial the s so we and fiscal reforms could they are important. john: the reforms will mainly be
on consolidation, on mixed ownership, but privatization is not on their agenda. that will be the key direction on their front. the leveraging -- deleveraging will be another key topic. it started last year and will continue. the china government realizes that deficit in the economy is too much. overall, i think the biggest key scheme going forward in the next five years is still opening, china opening in terms of the capital market opening as far as to encourage some of the investment into the belt and road. vonnie: just to illustrate what you said about leverage in debt, we have a great chart and the bloomberg library which shows corporate debt is by far and away the most troublesome, followed by household debt, and bank debt.
these are a little fluid, i imagine. beijing?city outside john: this is a very major project for our presidency because as you know, we are talking about china during. that is all about rejuvenation of the nation. basically they set a target date of 2049. that is the 100th anniversary of the set up of the people's republic of china. by then, china wants to be a dominant global economic power and to do that they have to have interests around many countries. countries.oss 60 it is important to make sure china has enough inflows. vonnie: will we hear anything the 24th or 25th of october about foreign policy, where a alliance's are to be made, how china will deal with the united
states and changing trade relationships? john: i am not an expert so i cannot really comment. i think the economic policy will continue to be very stable. i believe that for the u.s. investors, we need to make sure it should not be a one-sided bet on the currency. there will be two-sided volatility. there is a very big market coming up. people in the u.s. could assess the chinese bond market. it is the third biggest bond where in the world but they will become the second, we are talking about 10 trillion u.s. dollars. we think within the next 12 months it will be included and one of the major bond indices in the world. if that happens, roughly about $220 billion to 240 billion dollars inflow into china will happen because of that. vonnie: john thain, please join us again.
♪ mark: live from london and new york, i am mark barton. vonnie: i am vonnie quinn and this is the european close. let's get the latest on the fourth round of nafta talks in washington. seems like negotiations are stuck, canada and mexico rejecting proposals by the u.s. joining us are eric martin and josh quinn growth -- josh when growth. it sums like we are completely stuck and will be having this press conference in the next few hours. are you hearing anything about
candidate stance? >> the markets moved today on a report that to be perfectly frank, did not have any new information. proposalsve core u.s. , zero progress, things like cars, cows, the sunset clause, that kind of thing, and a bunch of others where there is progress. negotiations. people have downplayed the effect of rejecting independent proposals but canada and mexico have repeatedly said what the u.s. proposing will not fly. vonnie: the mexican peso has been moving on the idea that these are demands that have being hammered into the mexican economy. will mexico outright say no? >> what we are seeing is the market over the last several weeks pricing in a greater chance of failure to these nafta talks. mexico's economy minister has been making clear that there
are, may be a half dozen very contentious proposals and that despite the progress being made elsewhere, any of these proposals on their own could be enough to derail the negotiations because mexico is not going to accept a deal that is bad for mexico. they are of this mindframe needs to be a win-win for all three countries. things like reviewing the agreement after five years and limiting the opportunity of government procurement, or things mexico has said is a nonstarter. vonnie: we had congressman bill quest call -- bill pascrell on earlier who said the trump administration has not been particularly open the open of the substance of these talks and some of this depends on congress. how do you imagine this? the latest estimate is that the talks will go on into the spring.
they have seven rounds scheduled through the end of next year. no one thinks things will be done by then. the former usc are in washington warned the congress piece is being under looked because congress has two roles to play, to pass a deal and they are not sure they would have the votes. they could also intervene to stop the collapse of a deal. either way, the ball could be in congress' court. vonnie: we will continue to check in with you throughout the day. rove an error carter. alexis tsipras will hold a news conference at 1:30 eastern. ♪ who knew that phones would start doing everything?
from bloomberg world headquarters in new york, here are the top stories on the bloomberg and from around the world. financials, morgan stanley jumped after its wealth unit cushions the blow for declines in bond trading revenue . goldman sachs follow suit as its bet on lending pays off. we speak exclusively to media and wellness mogul arianna huffington from laguna beach with what she has to say about how to approve -- improve workplace culture. major developments in the fourth round of nafta talks, what we are learning about canada and mexico's response to the latest proposals from the u.s., and what it means for the future of this trade deal. details just ahead. julie hyman joining me, the dow what one point surpassing 23,000. not anymore.