tv Bloomberg Best Bloomberg October 21, 2017 8:00am-9:00am EDT
mark: coming up on "bloomberg best," the stories that shaped the week in business around the world. >> it will continue to be on china's terms. >> political chaos reigns in spain as madrid contains a crisis. >> it is doing exactly what madrid told him not to do. mark: brexit talks continued his sputter, continue to while negotiations simply stalled. >> we don't know where they are going with this. >> automation arrived on wall street. >> some of the highest-paid jobs are increasingly under threat.
>> conversations of consequence with leading investors and executives. >> what's going on in the market right now is a lack of alternatives. >> big banks had up a parade of -- head up a parade of earnings reports. >> the best way to get shareholders back on board is to show our plans get graduate. >> our transformation is a journey. >> it's all straight ahead on "bloomberg best." ♪ mark: hello, and welcome. i'm mark barton. best," youromberg weekly review of analysis and interviews from around the world. the week began with another development in spain's ongoing political drama over catalonia's quest for independence. >> the president of catalonia
has failed to clarify his position on independence. defining a spanish government demand. he simply repeated his claim that he has a mandate from voters to act, but his decision to suspend the move has a left the country in a state of confusion. >> they are doing what madrid told him not to do. we need a simple yes or no answer. did you declare a republic or did you not? it is a four-page letter where he says he has a mandate and he is willing to act upon it, but he will engage in talks with the next few months. what is madrid going to do? this is what the government did not want. they were very specific about this. you have to answer in terms of yes or no. if you answer in any manner that is not a simple yes or no answer, article 155 will get triggered. madrid has all the grants to
-- grounds to trigger this article. >> two more wall street giants posting quarterly reports. -- third-quarter results. continued weakness in fixed income trading units, toy 6% 26% decline a . it >> i thought the results were ok at both firms, better at morgan then goldman, although they were starting at different points. morgan starting at a higher point, things have been going well for them throughout the year. i thought most of the encouraging indications were out of wealth management. on the goldman side, they've been lagging on fixed income. this quarter, they look more in line with the pack. i thought that was encouraging. next step is moving forward with
growth initiatives. >> ministers from canada and from mexico rejected what they see as proposals by the u.s. in hardlineline -- as proposals by the u.s. in the fourth round of nafta negotiations. >> they plan on having a longer intersessional period before the next negotiating round to assess proposals. >> let's take the next month to continue intersessional work and meet in mexico with fresh creative perspectives. >> none of us want to end this process empty-handed. there is no reason. >> we don't know where they are going with this. they want to make progress. donald trump keeps saying it's a bad deal and we need to do something else. light eyes are -- robert lighthizer highlighted the problems the administration sees with the deal. but the non-starting proposals
seem to be coming from the united states. while they are saying that things about each other, they feel in of hope that their scheduling negotiating sessions father down the road. -- further down the road. >> we are coming down to the start of china's party congress, where president xi will give the opening address. he will lay out his reform agenda. >> our government is in a great situation. our prospect is bright, but our challenge is also tough. >> this is about recapping some of the achievements as the other party would see them and then highlighting the areas of focus. a couple areas that stood out, president xi talked about foreign exchange and it u.n. -- and interest rate reform on
the back of the comments of the pboc governor of his desire to see a greater market. also his comments about the greater role for state-owned enterprises and mixed ownership structure. >> he has reinforced and brought the hammer down on the political economy you expect in china. even though he is speaking about reforms and liberalizing the exchange rates, allowing foreign investment, it will be on china's terms. that will be at the center of everything. there has been a reinforcement of that central message coming out of president xi that it will be on his terms in terms of how china's economy develops going forward. >> the spanish government has announced an unprecedented decision to move forward with suspending the powers of the catalan government. after the president refused to drop his claims for independence. >> the catalan president is as affiant -- defiant as ever. he is insistent he has the mandate and the reaction from madrid is article 155.
the government said they will meet on saturday and come up with a number of measures to present to the senate. we will get an indication of who will replace the president and for how long. >> the senate passed their version of the budget resolution, putting the ball on the house side with possible action as soon as next week. how difficult will it be to get the house to agree with the senate on this resolution? >> not that difficult. i was talking to some after the vote last night and they were will behey think this less controversial than the media has made it out to be and they are anticipating it to advance the first half of next week. that's good in terms of tax reform timelines the end of the year. >> president trump is expecting
to and ask his decision on who announce his decision on who will lead the fed. we were told to get a decision next week. what will the decision be? >> he is testing the waters by letting these stories drift out of where he is leaning. i think republicans in general want continuity, so that points to janet yellen or a continuation of that regime, which if you want a republican continuing the regime, it is jerome powell. kevin warsh is qualified for the job, but i don't know they will pass the trump litmus test, not impeding the trump fiscal agenda. interest rates are the throttle for the economy. low rates will help the economy ultimately accelerate. >> still ahead as we reviewed best,"k on "bloomberg
oil executives tell us where the crude could creep up to $60, plus a look at how automation is disrupting wall street. we will also comb through earnings reports and up next, we will continue the top is this businessek's top headlines. they may get a reprieve from the fcc. >> the fcc is close to saying, look, it is fine if you violate u.s. rules. we will not punish you for that. mark: this is bloomberg. ♪
went for youth in the national election. >> the 31-year-old foreign minister has claimed a victory as austria's next chancellor yet protections put the nationalist freedom party within reach as second-place. manus: what do the results from austria mean for the rest of the european partners? michaelmatt: for starters, it 't be terribly anti-e.u. this right-wing party, the freedom party and austria, has has been anti-eu in the past. but they changed tact before the election to gain ground. because sebastian kurtz, the leader who has been elected pretty overwhelmingly, has said he will not form a coalition with anybody against the idea of europe and deeper unity in europe. the freedom party has got to conform to his ideas of europe to get together with him, or he could form still a coalition with his current coalition partner, the social democrats.
>> airbus agreed to acquire a majority stake in the c-series program. the jetliner will be assembled in the u.s. and opens a new front in the battle with going -- boeing over global aircraft sales. airbus walked away from a similar deal two years ago. what changed? >> they broke this announcement in the middle of the night to us and the conference call with the ceo. he said times have changed. two years ago, this is serious -- the c-series wasn't certified, wasn't flying, and we didn't know if it would be popular with customers. now, we have more data points on this. they tried to sell a trained business and didn't succeed. -- train business and didn't succeed. the c-series is a troubled program even though it is popular, so they felt the longer we wait, the more paint the bombardier will have to find a partner.
>> you see the pipeline right there that runs to turkey to reach foreign buyers. 600,000 barrels a day can go through that pipeline. >> inflows into that pipeline have been reduced considerably. our latest intelligence shows far from pumping 600,000 barrels a day, it is now pumping 220,000 barrels a day. they are hoping this will be temporary. both sides have an economic interest in keeping the flows going. this pipeline is the only way of exporting oil from northern iraq , and so it is the only way of generating foreign currency income from that production. >> the swiss activist investor
target, credit suisse. according to person with knowledge of the state purchase, he has taken a .2% stake. >> his main rationale behind the move is the share prices around credit suisse. he is saying it is undervalued, which is something other investors would say. the big restructuring the bank was going through and the capital raising, shares have been up so far this year, but since the co has been taken over, it is down quite significantly. he's saying this needs to be changed . this is why he took a stake in credit suisse. >> the u.s. securities and exchange commission is preparing to give wall street a reprieve. they will tell financial firms they will not have to overhaul operations to comply with europe's regulations. >> among the complicated issues
with mifid, the most complicated is the sec rules. the sec seems close to saying, look, it is fine if you violate u.s. rules to comply with mifid, we are not going to punish you for that. it is hard to see a world where wall street will make more money selling research than it has through trading. wall street has benefited for a long time. there will be a lot more issues down the line as clients go as far as revolting and say, we want what the europeans have. we don't want a conflicted arrangement. we are paying you one fee for everything. we want to pay the firm who does something the best to get that service separately from them. >> president donald trump wrapping up a joint news conference with the greek prime
minister in the rose garden. it is a concept that doesn't work. insurers have made a fortune since obamacare began, and yet, it appears we have a short-term deal. >> in congress, they say they have reached a deal xlv, which attracts health-care shares, getting a boost on that news. health insurers, those involved in obamacare, getting a boost, as well. >> bloomberg news reported that there was a deal between lamar alexander and patty murray to restore the csr payments, the payments that help offset costs to middle-class people buying insurance. they removed it a few days ago and we basically did a 360 degree about-face and we are back to where we started. >> mixed messages from washington.
only a day after senators lamar alexander and patty murray presented a bipartisan fix, you have house speaker paul ryan and donald trump coming out against the plan today. >> i won't do anything to enrich the insurance companies. >> he is against some of the things that are contained in the fix, but he has made it very clear he wants to see some sort of bipartisan deal get done that prevents people from feeling pain and frankly, i don't know if that's possible. >> china's robust factory output and consumer spending kept the economy humming in the third quarter. gdp rose 6.8%, giving president xi power to shift to more sustainable growth. despite this, markets have not reacted positively. they are reeling from the governor's comments on high corporate leverage. >> comments from the governor of
the pboc, we heard from him again. he was meeting with regulators and he flagged this issue of high corporate leverage and household debt. he was also pushed on the question of yuan reform. let was something that came up -- thepresident plus president's speech yesterday. the pboc governor said this is a long-term process and he sees no immediate need to change the trading band for that you went. that was another issue that came up. it doesn't seem like much for the markets to hang their hats on. yes consumer spending is up. , you have a lot of infrastructure spending as a result of this credit push. >> lyft, the ridesharing company, is raising another round of funding. they were in talks a month ago and the cash infusion, $1 billion, a total game changer for lyft, whose main competitor is uber.
>> it might be a shift. google alphabet was one of the early investors in uber and now they are putting $1 billion through google corporate for their private equity arm. i do know they are excited about this space. they were an early investor in uber, and now in lyft. they are talking about using ridesharing with self-driving cars. >> the divorce talks one succeed -- zero chance the divorce talks won't succeed. she wants to see an agreement rather than an unpredictable resolution. >> the eu said it has given the green light to start making preparations to move the talks to trade in december, but no guarantees. we heard from emmanuel macron in the past hour. he said the ball is in theresa may's court. we are not halfway there on the
financial settlement. what's more, people familiar with the matter that they told bloomberg there might not be a final number published on this divorce bill because they will break it up to make it more basically palatable politically. i thought that was interesting that bloomberg news managed to get that. even though you have the eu president donald tusk saying there has been progress, that is not accurate and i'm hoping to move on to trade talks by december. hope it doesn't always translate that hope -- hope doesn't always translate to reality. ♪
mark: welcome back to "bloomberg best." i'm a mark barton. automation has changed the nature of many industries around the world and now it is changing wall street. in a series of reports, bloomberg examined the revolution overtaking financial institutions and what it means for the people who were not
there. >> some of the highest-paid jobs, some of the jobs but if -- where the people are literally making millions of arears to do these jobs increasingly under threat of automation. jobs like trading on both the sell side and the buy side, hedge funds and asset managers. everybody on the portfolio site, to the order taker on the trading floor, to the legal department that is determining whether that swaps document is valid or not, there are technologies able to do those tasks and while it is not clear they will be able to do all of it, it is still early stage, this is being actively tested and rolled out at wall street firms around the world. >> what areas of wall street are already using automation? >> they are already experiencing best experimenting -- they are
already experimenting with ai across the region of trading areas. the thing i learned about this , when you are able to use machine learning algorithms and apply that to augment a lot of features. they are looking at hedging and market making that as well. credit is another area they are exploring. >> how many jobs could potentially be lost? >> what you hear often is 30% of jobs over the next five or so years. you think about that, how many hundreds of thousands of people are actually employed by these banks? many of them doing chemical things does not seem to be an overestimation. a lot of the wall street is -- >> a lot of wall street is taking traders trying to bring them into the 21st century. at goldman, they are taking engineers and trying to give
them some ability to be traders. for a long time, they had these, what they call internally as "strats." they settled next to traders. basically combing through the data designing algorithms and -- they now have 2000 strats at goldman. >> as you look at the world of ai, what is the piece of technology in ai that is the most promising? >> we have ai that listens to every single conference call from company management and is -- it'sg through four decided what words are the most interesting ones. the ones you would expect it to
look for, words like "challenging" or "difficult" you would think would mean that bad news. those words are clear. it's actually subtler words that machine learning is good at picking up that are the things that are telling you, while it says at this in the headline, this is really what the person thinks. maybe one day, they will be able to judge by the way i twitch or blink at the wrong moment, but they are not doing that today. just the use of certain words does tell you what somebody really thinks about what's going on. on --mark: coming up on "bloomberg best," the week's most interesting interviews.
♪ >> when you survey the ceos, are they worried about the world at large? worried about politics here in the united states or overseas? >> honestly, no. their day-to-day, they are going all out. now, will you look at the supply chain and make sure you don't have a snag in the korean peninsula that will stop your business? of course, you look at those things, and you prepare for those things.
as a portfolio management job for us, we have to make sure we are on top of subjects like that. doesn't mean it will happen or we worry about them, but we plan for outcomes in case things happen. mark: that was blackstone, head of private equity portfolios. david calhoun discussing the confidence among chief investors. how are investors feeling these days? bloomberg's jason kelly sat down at the robin hood investor conference with the heavy hitter internet associates founder and chief executive ken lancome. >> what is going on in the market right now is a lack of alternatives. you look at the stock market and bonds, you know this -- a 10 year, 2.25% bond, if the fed takes rates up next year 100 basis points, you know a 10 year bond is going to have a negative -- a rising yield and a reduction in value. i like the idea of companies that have shown the ability to grow. that are generous in sharing their success with stockholders and dividends. i'm more focused on dividends and buybacks.
i consider buybacks an on or off kind of thing. i'm sensitive to balance sheets. if there is a stress event out there, these companies have to be able to stay the course. jason: how healthy are balance sheets? >> there is enormous liquidity in the market. enormous. as the fed sops up qe, the liquidity will go away. but i look at the banks, the banks are in the best shape they have ever been in my entire life. in fact, i think the excess of regulation out of washington gives us opportunities to say, regulation is more reasonable, i think this is going to be good. for example, i think the fed probably is nervous to have a big payout more than 30% of its earnings in dividends. they will let you buy all the stock you want, because that can be turned on and off.
i would like to see some flexibility on the upside of dividends. look at jpmorgan, for example. i love the bank, and i love jamie. i tried to get jamie to run home depot when he was out of work. i wish i had gotten him. i honest to god really, really believe the banks today are a whole different kettle of fish than they were in 2008 or any time in the past. mark: the week began on a positive note for oil prices with crude holding above $50 amid signs of healthy demand and geopolitical tensions could -- which could affect production. manus went to the oil and money conference in london and asked chief executives where the market was heading. manus: what does it take to get us through $60? what does it take to break the new bandwidth in crude? >> i think, we have a solid demand, and it seems to me that it is relatively stable for quite some time. the demand picture is obviously going to be important.
the shale, how responsive that will be at various levels. i think we might have been a little bit surprised it is growing, but not to the extent some might have expected. that would be a critical factor in this equation going forward. manus: do you think that shale -- i see they are at peak production in the last month. is that my read from what you just said? are we hitting peak shale? >> i don't think we are heading towards peak shale yet. there is large potential within shale. what we might not fully understand is what kind of hurdles, bottlenecks are facing -- are we facing with shale and how does it work? what does it take to kick off those options? ♪ manus: you say with the kurdistan issue, we could see a provocation above $60 in the near term. opec, not opec, do they need to
extend -- they were saying, yes they do. needs to be a two-year deal. >> i think if they want to see the markets moving up, it would -- they would probably like to extend. it will be increasingly difficult for them to extend, because of the upward pressure on production in many of these countries. for the price to continue moving in a northerly direction, they need to extend. manus: finally, the frackers. they are pesky, aren't they? do you think they will cap out the market? your view very briefly on frackers in the state. >> yeah, that is probably one of the biggest downsides in the market. of price, we still see a huge amount of production to come on from the states. we are still moving a lot of
oil, even more oil from the u.s. to the far east. that will have an impact. yes, that is one of the reasons in the short-term, it can be bearish. mark: this week also marked the 30th anniversary of one of the days in wall street history, black monday. for some investors, the memory is still fresh. we flashed back to the crash in conversations with bloomberg television. >> i had a really interesting vantage point for black monday. i had made plans to travel to texas to do marketing for my hedge fund, and i was in dallas on the day of the crash. what was so fascinating was the hotel that i checked into had alan greenspan and margaret thatcher in attendance for some sort of awards thing -- i don't really remember what it was. the vivid memory i had was trying to call new york from my hotel room that evening to find
out more about what was going on and not being able to call out because they had monopolized the switchboard. the federal reserve and british government had monopolized the switchboard. so, it was this odd, bizarre vantage point to be where they were physically the day of the crash. so, it was a frightening week, more frightening than any week in 2008. >> actually, it is not the date of the crash that was the big trading day. it was the next day. overnight, greenspan lowered interest rates by something like 275 basis points, and the futures rallied by 375 basis points on the open. they didn't know what was happening, and they thought he would ease even more.
i remember the bonds, there was a bonds future that was locked , because it could rise above a certain level, and it was locked in. you consume the bond, the one trading in the market would be up about 10 or 11 points. at the time, that was a huge move. the largest move was not a statistical move, the largest something the models could not predict assume was in the realm of possibility, or abnormal but within that model, was euro-dollar. i remember, the stock market --ed something like several it was a few variations of 20. -- above 20.
♪ mark: you are watching "bloomberg best," i'm mark barton. let's return to a roundup of the week's top stories. it was a busy week for corporate earnings reports, starting with impressive results from netflix. >> it was a blowout quarter for the world's largest online tv service, netflix reporting an increase of 5.3 million debt
subscribers in the third quarter, plus a beat on the top line, the company saying going to spend as much as $8 billion on programming next year. what do they spend that on? >> this is incredible. that's $1 billion higher than the market was looking for. they keep adding billions of dollars every year to their programming, and they are producing more original programming, relying less on a traditional hollywood studios . some of the studios like the walt disney company are pulling back on the content they license to netflix. what we are seeing netflix do is really stake the future of the company on original programming. they believe that drives the subscriber growth and will drive revenue and cash flow to ultimately pay for these incredible programming obligations they are incurring. >> johnson and johnson announced its third-quarter earnings and they beat estimates on on earnings per share and revenue for the quarter. on top of all that, it up estimates going forward. we heard from the president in some detail yesterday about how he wants to reform health care
and he addressed the question of drug prices. are you feeling the forecast of washington on your business? >> the overall discussion about overall health care cost is a good discussion to have. the focus on drug prices is a little bit narrow. the overall impact on drugs, drugs are about 14% of overall health care budget. what is lost is the discussion about the benefit of the overall drug program to the health care system. we think the focus is a little too narrow, the broader discussion should be about the overall health care costs. >> akzonobel has missed estimates, so our earnings before taxes dropping 13%. the forecast is thought to be in line with 2016. this is a business that has been through many challenges and recent changes at the top. how do you go about rebuilding trust with shareholders?
what is the most important task? >> the most important task, i think for shareholders, is beside the dialogue that stepped up massively to explain what our plans are and what the future steps are. the other step is to deliver. in that sense, the third quarter is kind of a mixed message, one encouraged by the forward momentum. the positive turn on prices we see in the markets at the same time the third quarter, as you have seen from a variety of industry announcements, everybody else is in the same boat. a number of very natural disasters, hurricanes, earthquakes, all sorts of items happening that have made it in it a bit more muddled in the third quarter to prove that, that is the best way to get shareholders back on board, to show how the plans get gradual granular in 2020.
-- plans granular in 2020. to show the steps to get in that direction. >> the company says it's on track to reach its outlook for 2017. if investors are concerned the revenue number in the third quarter looks a little bit light compared to estimates, should they be concerned? >> q3 is a good quarter. the company is growing by 1.3%, in line with our commitment. this is coming from the energy-based activities that have been growing 22% during the quarter. at the same time, the growth is profitable, because we have continued on improving our operating margin by 50 basis points. it is now around 10.5% for the quarter. you know, our transformation is a journey, and i am happy to see the rigorous implementation of our strategies paying off. >> nestle reported weak sales today, and the culprit is the weather. a summer of hurricanes in the u.s. and rain in europe.
what went wrong? >> the weather is part of the story, but what you are seeing is a longer term trend. people are not excited about mainstream big brands like they were for decades. it used to be about keeping up with the joneses, and a big brand is what you wanted because that's what jones is had. -- that is what the jones' had. now, it is about differentiating jones'. from the these companies now have to spend on the dime and bolster their growth. they are doing that, but it is tougher to do it. >> adp handles payroll for roughly one in six americans. we regularly site their high for -- high frequency data on labor markets on bloomberg, recently, the company has been in focus because of a proxy battle. investor bill ackman has been pushing for three boards seats at the annual meeting in three weeks. adp with a letter to urgent to
reelect the current slate of 10 directors. >> we make progress, and we have plans to continue progress. in the last six years under my tenure, the margins have improved 580 basis points, and we guided to another 500 basis points in the next three years. we have, over the course of six to nine years, have been able to accomplish the same thing. i think it does come down to a difference in opinion about pace and risk. >> united airlines ceo oscar munoz had a bad day yesterday. he had some disappointing third-quarter earnings which hurt the stock quite a bit. then, he got on his earnings call. by the end of his talking to analysts, the stock was down the most it has been in eight years. what went on in this call yesterday? >> i think analysts were looking for more clarity on how united will enact their vision on improving their yields, which are the shares they get paid in
the u.s. market as they try to close that with delta and with american. that is the secret to more profitability at united. he didn't give that many great details on adjusting their models and figuring out how the company will turn things around. >> a not pleasant start for new general electric ceo john flannery. flannery is dealing with one of the deepest slumps in ge's history. the company has lost a quarter of its market value in 2017. >> on the top line, the power business was much worse than expected. it has been really bad and margins fell 700 basis points. i looked for restructuring, and it wasn't in there. oil and gas was also bad. there was a little bit of non-restructuring, but still down more than expected. organic growth was worse than expected. they were down 1% should they have been down for the -- they
were down 1%. they have been down for the year. one thing people were most concerned about is cash flow from operations. they were guiding 12-14 for the year, now they are guiding seven. there are a lot of questions and part of it is he is trying to clean the decks. he is going to reset the company, the expectations, and let's just get it in front of us. >> we have just looked at earnings from a host of big companies. let's turn the spotlight on a company not on that scale, but growing fast. in eight years, food 52 blossomed from a simple website into a thriving content and e-commerce destination for food and home products. the cofounder tells the story in the latest edition of small to big. ♪ >> our mission at food 52 is a to inspire people to eat thoughtfully and a live -- and live joyfully.
we are a comprehensive resource for kitchen and home enthusiasts, meaning we offer both content and commerce and then community as the tie that holds it all together. my cofounder and i come from traditional print media backgrounds. we were editors and writers. we saw this opportunity to create a brand around kitchen and home that lives online. we went out and got a book deal and got $100,000 advance and used the advance to pay for the building of the initial website. in 2009, when we launched, we started with recipes. in 2010, we raised an angel round of $750,000 which we used to invest in building out our own e-commerce platform. e-commerce represents 50% of our top line revenue, and ad sales is the majority of the rest of . with a very small percentage being cookbook sales. the majority of advertising is made of advertising and branded content. events are also a key part of all of our business.
we do a lot of events with brands on the ad sales side. we also have our own events on the commerce side. they are ticket -- typically pop up where we are showcasing products which you can typically only by online. -- only find online. last year, during cyber weekend, we had an outage where the company that calculates our sales tax was down for over 12 hours. we had a total backup. what we decided to do was to remove the sales tax functionality completely from the checkout process, so orders could get through and turn it to our advantage by making it a promotion. we followed up with an email and said to everyone, we will cover the sales tax for the rest of the weekend. when you have a community you are talking directly with, it enables us to have a direct conversation with people. this is what we are going to do. we are going to turn it around to your advantage, because you
are that important to us. right now, we are touching 12 million people on a monthly basis. our unique visitor growth has been 65% over the past year. we are talking to amazon alexa about a partnership. something we talk about all the time is, what does the food 52 presence look like off-line? a brick and mortar presence? we are looking to profitability and it is one of our key focuses for the next 18 months, to become a sustainable business. ♪
♪ >> take a look at the bloomberg and anr, you have the largest chunk of analysts have hold ratings. that's the beige bars in the middle. there are 10 buys still, 20 holds, and five sell ratings. a lot of folks were more optimistic than they should have been on snap. mark: there are about 30,000 functions on the bloomberg. we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function you will find useful. quicgo will take you to important quick takes.
they can give you fast insight into timely topics. here is a quick take from this week. >> it is impossible to ignore america's opioid epidemic anymore. the numbers are staggering. nearly half a million americans say they use heroin every day. heroin overdoses have tripled between 2010 and 2014 and deaths from opioids are approaching the number of deaths from car crashes. how did we get here? pain. here is the situation. there is a grim connection between opioid painkiller addiction and heroin addiction in this country. in the 1990's, doctors turned to vicodin and percocet to treat widespread undertreatment of chronic pain. the number of opioid prescriptions filled in 1992, 79 million. by 2012, the number rose a lot to 217 million. the federal government forced
drugmakers to make perception pain medication harder to abuse. at the same time, heroin from afghanistan and mexico became a cheaper and more readily available alternative. the result is four or five new heroin users in the u.s. who have said they missed used prescription pain relievers. here is the argument. president donald trump appointed a commission that advised him to declare opioid addiction a national emergency and rapidly expand treatment capacity among other measures. pres. trump: it is a national emergency. we will spend a lot of time and a lot of effort and a lot of money on the opioid crisis. >> but trump said he is focused on cutting off the supply of drugs rather than expanding treatment as his commission recommended. the health care bill passed that trump supported also withdraws the requirement that drug treatment be covered by medicaid. nearly every state has enacted laws related to opioid abuse including targeting doctors and pharmacists who overprescribed
pills. t governments have made the opioid naloxone readily available, reversing overdoses between 1996 and 2014 could leave those who truly need opioids in needless suffering. mark: that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com with the latest business news and analysis. that will be all for bloomberg best this week. i'm mark barton. this is bloomberg. ♪ who knew that phones would start doing everything?
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♪ david: when you told people you would raise a $100 billion fund, did they tell you you were a little crazy? masayoshi: some people said. david: did you suffer discrimination growing up in japan? masayoshi: that made me stronger. david: how did you feel losing $70 billion of net worth? masayoshi: i was so close to a fall down from the cliff. we almost went bankrupt. somehow, i survived. >> would you fix your tie, please? david: people would not recognize me if my tie was fixed, but ok. just leave it this way. all right. ♪ david: i don't consider m