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tv   Bloomberg Markets Americas  Bloomberg  February 15, 2018 12:00pm-1:00pm EST

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are making our schools and our children safer, it will be our top priority. partnership. mark: the president did not call platform hasting for any action on guns. more investment behind the brand. florida, a 19-year-old we are planning to grow our identified as nicholas cruz has been charged with something premium brands. counts of murder after a night attack on his high school all to double digits. shery: there is a new year yesterday, and more than a dozen others are being treated for wounds. holiday starting this week. what are you seeing? the department of homeland gilles: we are confident it will security criticized the amendment on backa, a statement an egregiousposal be a good year in china. to in the united states, violation of president trump's ramework.on fine w you are having more trouble when it comes to absolut vodka. mass amnesty as a what are you doing to improve the situation? it to groom 4%, 5% in bill for the illegals that will make it impossible to enforce immigration laws. , a new president the last two years. 4%, 5% in the last two
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was selected although embers of years. an opposition party walked out saying that early elections should be called. i think we are doing the right things. we are creating more units, more jacob zuma finally gave in to innovation. the demands of the ruling vonnie: is what african national congress to step down. his nine years were marked by scandal. pope francis meets frequently happened a little while ago in the beer industry. with victims of sexual abuse, cirac vodka is a competitor to after mounting scandal of a yours. chilean bishop accused by victims of witnessing and ignoring their abuse. you have massive sales of a francis meets tequila brand right now. not only because of george privately with victims several clooney. times a month and faces backlash after dismissing complaints that how do you compete with the new were hit brands that come out -- newer hit brands that come out? chilean bishop covered up the this endorsement grows abuse calling them scandalous. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. the brand, but cannot be the only lever. cannot only rely on
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celebrities to sell a brand. shery: i am shery ahn. we try to be more focused on the brand integrity. vonnie: and i am vonnie quinn, we decided to have a campaign. welcome to bloomberg markets. "absoluit has nothing to hide." ♪ to highlight the intricacies of the production process. shery: the naked employees. shery: from bloomberg world i love the advertisement. gilles: it shows we have to be headquarters, here are the top audacious. stories that we are following. shery: are you going more equities continue to bounce back high-end? gilles: we are. as u.s. stocks look to extend shery: you have a premium vodka. gilles: yes, it's superpremium. the global rally and the 10 year yield hovers around 2.9%. ewing proposals we are trying to go up in the price letter. -- price ladder. to protect dreamers. ceo is calling the the higher the price, the higher the gross. vonnie: shery is making sure you recent volatility in the market, don't have one -- a top one part of our conversation with them at this hour. at the markets, we beyond the top. are midway into the session and their gaining momentum. you are going onto the acting
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after earlier we saw stocks continent and europe. what will your priorities be for go in the negative, now they latin america? gilles: i have been there have turned higher, and that is before. energy stocks. there is a lot of growth -- down byhe sector still growth potential. people like brands and imported business. in brazil and mexico in 1.5% yuan as we see other sectors gaining in the session. particular, we can grow with crude oil has turned chivas and absolut. higher, declining by more than bright prospects. shery: we like tequila in 1% earlier in the session and made a dramatic comeback as you can see. lower, gas remains bolivia as well. are you seeing any changes as to having a rough couple of weeks, what people drank? -- people drink? gilles: we will be different in and chevron and philips among the stocks that are limiting the gains that we might otherwise see an overall averages. china, latin america, the united if we do gaining by days end, states. that would be good fixed rate let's say they want to have session, and would also be the quality. they want connection. biggest five-day game going back we are working hard on those to october of 2015. drivers to be relevant. we're are also looking at a big weekly gain, then you don't happens tomorrow. our brands come from ireland,
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two weeks of the kleins for the essence the 500 -- two weeks of sweden, france. for the s&p 500, and is what we want to capitalize upon. usry: thank you for joining then finally some of today's earnings movers. today. a very interesting conversation. i have to learn what we drink in the u.s.. third quarter results and fourth vonnie: everything. quarter forecasts of missed shery: good to know. estimates, goldman sachs calling underwhelming and having ahead, warren buffett hasn't sold the majority of his stake in ibm. weaker gross margins. operator of data centers also missing shares as they fall 7%, ofhas assaulted the majority his stake in ibm. and finally omnicom, this is in this is bloomberg. ♪ vonnie: this is "bloomberg that group coming up with weaker earnings, this is contradictory to some of the other numbers would have gotten that have been better than estimated. the company said the u.s. in particular was week last quarter. julie, thank you for that. we have seen equities rebound
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and investors are taking it in stride. last year, rates were already starting to rise and the recent to rise and the recent care, people said this is inflationary and great news, and in yvonne said the world is going to end. >> we are at the point in the economic cycle work they are more volatile, we have seen the lowest of volatility for the cycle. >> it normally takes a. weeks for the market to stabilize and have another advance. suspicious that this rebound we have seen in the last couple of days is lasting. vonnie: let's bring in quincy krosby. manages $1.2 trillion, quincy, you trust this recovery? you cap, because you
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have to think that how quickly that downturn hit everyone. we saw a lot of money coming to the market just before that and wondering if that money sitting there waiting to get out and to recoup some losses. normally you have to be suspicious and you have to think sellers are sitting and waiting to pounce on strength. not to do that is being naive. shery: what does that tell you? it tells you it is been discounted by the market and also telling you that maybe there is a tug-of-war within the market. markets." buffett'sren maybe the higher rates will keep the fed from not giving us a berkshire hathaway reports he cut his stake in ibm by 94% in fourth rate hike this year, that in and of itself starts to slow the fourth quarter. down the economy. with more is bloomberg's remember that in a period like catherine jim and ski -- k up, and is tracing
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atherine. history dictates that it in the first place, it was sort shouldn't be that easy to start moving up higher and higher. of weird he went into ibm when the fedat some point, everyone was going to these other tech companies. >> it has been an interesting will have to raise rates for a story. he stuck with ibm for a long fourth time or a third time, but time despite people questioning by then, are we seeing picture whether that was a good investment. deficit spending kicking in? last year, we started to see him not just about the go, maybe this is not something i am going to stick with. he started cutting his stake. producer price index, is not just about cpi, it is nearly a trillion dollars that will come we saw he only has about 2 into the market that will actually have to be bought. million shares left. vonnie: is this the end of one of the things will be watching is japan because their warren buffett as america's champion? fiscal year ends in the end of march and they typically take the money back. when it was big blue, it was ok for him to be in ibm. come april we see options in the u.s. and we will see if the getting out of japanese, the second-largest treasuries, these some really technical, old-fashioned companies, and to be the first, but how strong will their purchases be? that will give us an inclination looking in other geographies.
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of whether or not the foreign katherine: it is interesting. we don't know whether it is his binding of china and japan may change that debt of purchases. are going tots influences or worn himself. help firms, and as you can see -- warren himself. on this chart on the bloomberg, he boosted his apple stake this after the correction we saw quarter while reducing ibm. valuations plunge, but when it ands to these analysts maybe warren buffett is trying to figure out how the world is having their earnings estimates, changing and adjusting his they continue to rise. businesses. teva. and the projection for s&p 500 katherine: that was the first companies are up for the year, so how much support will this gift to the equity markets? time we saw that state disclosed. quincy: it will give support, it is a bit of a mystery. the estimates are moving higher. it is interesting to see as to whether the decision is warren or his investing deputies. we will get results next shery: -- quarter, so that is very good, and the tax cuts -- not to teva solve america's mention there is a progrowth and pro-business atmosphere despite the selloffs that we had. drug price problem? katherine: i am not sure they that is going to help dramatically. however, the pace of the rates are trying. they have had a rough go recently.
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is always what the market base their stock has been slumping. attention to. the pace of the dollar moving but with the new ceo, it could be a turnaround. higher quickly, that is what the market base attention to. that may be why warren buffett to answer that, we will have to is more interested. shery: katherine, with the look at the credit markets because that is the area that latest on warren buffett. will tell us whether or not the ahead, the outlook for the equity market can continue moving higher. gop a head of midterm elections if they run into trouble with higher rates and having to roll over that, then you know that act 1:30 p.m. eastern. financial conditions are look backu can always tightening way too much. this morning i started at bloomberg tv . it is the this chart, you will find all of our interviews from the day, and have a little interactive fun. this is bloomberg. investment grade corporate bond ♪ etf's, and last week almost a billion dollars was withdrawn. retail. is that a signal that credit is going to come into pressure soon? volatility -- i don't mean the vix, but just the way the market sold, you want to
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lock in gains wherever you can get it. the high yield market is a good we pay attention to and we will look at the spreads, that is going to give us a very strong clue as to whether or not the equity market is really on solid footing. you have to respect the credit market. where do you expect the yield to go up to? it depends on the material side whether or not the inflation pressures -- everyone leaving or having to do with materials. it is a tug-of-war in the market, and yet global growth is still intact. still in the market and you still have the japanese and european central banks. although that too is going to change this year. shery: inflation faster than expected, should we be worried? quincy: if you want to be
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worried about it, you can, but we don't see it at this point. show onen will have to print after the other of the economy slowing, of the consumer pulling back and corporations not spending. cisco told us and important story yesterday. that is, companies are spending money on technology, infrastructure. that has to do with tax cuts, i think it has to do with the capital expenditure from the tax package. companies are spending money, and when they spend money it could pick up slack that the consumer is holding back. shery: investors are not worried. quincy, thank you so much. under pressure like never before. and it's connected technology coming up, the search for 60 that's moving companies forward fast. votes. e-commerce. real time inventory. the showdown on immigration. virtual changing rooms. that's why retailers rely on comcast business
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this is bloomberg. ♪ to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> it is 1:00 in washington, 6:00 in london, and two a.m. in hong kong. from bloomberg's world headquarters in new york --
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>> welcome to "bloomberg markets: balance of power." shery: here are the top stories we are watching. bracing for a senate showdown. lawmakers are expected to vote on dueling immigration proposals. playbook a different when it comes to hedge funds and banks. approach to sanctioning misconduct is a lot quieter under president trump. and a power exchange of hands in south africa. a new president was sworn in earlier today after president zuma resigned, bowing to pressure. ♪ david: the markets are up today. a little quieter.
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let's go to julie hyman. julie: shery: this is bloomberg markets. vonnie: this time for the latest business flash. airbus close to 2017 with a record number of deliveries but the company is looking at a six point $8 billion charge for transport model planes, and he spoke with bloomberg tv. put your handan into the fire and say this is a once and for all, but what i am
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certain about is that we reached a breakthrough agreement with six government customers plus brings us over the hump. ceo tom therding to freddie mac, rate for home loans is now 4.38%, which brings roughly payments on a $300,000 hollande to about $1500, and that is more than $100 higher than it was in september. maker ise videogame moving to the cryptocurrency space. after theyed announced the push this month. agreement, they
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will create their own digital currency, the atari token. that is your latest bloomberg business flash. competing immigration proposals -- the senate will consider multiple immigration bills but there is no guarantee the trump administration is on board. proposal introduced yesterday as mass amnesty, increasing risk of lawmakers reaching an agreement. joining us now from capitol hill, given the administration's opposition to the spill, we expected to see a vote on this -- this bill. we are expected to see a vote, and to our bipartisan to protect dreamers and includes permutations on board or measures and a wall. this measure criticizing the big
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the big bipartisan hope is unlikely at this point they get the 60 votes. necessaryto get the votes to pass the senate, so we are looking at a situation where they can vote on amendments and vote in failure. time thet the same president has touted this bipartisan group so often, is there a blueprint or some kind of beginning sure for a deal, or is it dead on time the arrival? >> the breaking point in this deal is about legal immigration not a lillegal. the visa lottery has gummed th ings up in the senate. lizzie give them other measures they want -- they want to talk about all of 11 million people rather thanly, and
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the 1.8 million people brought here as children. that is an area democrats will not go and the president is not willing to get on any daca pr oposal. in exchange for border security, and even funding for a wall, the president doesn't seem willing to go there, so we are stuck. shery: even if the senate goes there and passes a bipartisan bill, it is another issue if speaker ryan will consider an immigration bill and whether or not it will pass the house. what is the house doing now? >> the house is watching to see what the senate does and crucially how many votes it passes with. a 60 vote pass will put pressure on passing the senate with 75 votes, and i spoke with the chief deputy who says he is done predicting what happens in the senate but he wants the house to have a position on the issue of immigration. one proposal out there that goes far beyond what president trump has demanded in the area of
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restrictive immigration measures bill, thatalled doesn't have enough support to pass the house. pro-immigration legislation goes to die in the last 12 years council even if it passes the senate, it is not clear passes the house. let me bring up in interesting story you had out, the hawks are a dangerous species in washington, explain that to us. >> president trump signed a $300 billion increase in federal spending just weeks after he signed a $1.5 trillion tax cut. this is a party raising alarms about the deficit and the debt crisis under president obama, and now they're in control they seemed less and less concerned about the deficit. deficit hawks appeared to be that, but is it something a weapon when democrats were in
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the white house to beat down domestic spending measures, which is what republican conservatives oppose. they like tax cuts and military spending. thank you for that. coming up, at&t is taking on an unprecedented step the fight against the merger with time warner. this is bloomberg. ♪
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vonnie: this is bloomberg markets. at&t's battle with the federal government over the merger with time warner has been an intensified. oft is pursuing the strategy injecting politics and questioning what goal the president may have played in the department of justices suit.
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so, we are now hearing that they want to summit the head of the justice department antitrust division, what will that do? >> at&t wants to put the head of the antitrust decision on its list, and the trial -- the lawsuit is set to go to trial in march, and they are looking for communications between the department and the white house. going on isike is that at&t is trying to get evidence whether or not president trump influenced or interfered with the department's investigation into the merger. vonnie: knowing that is what at&t is after, this is unusual already, but is it lawful and legal and can't happen? happen? david: we will be unprecedented
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for a president to interfere in an investigation. i have covered trials and have never heard this issue coming up, but this is a unique trump'sn because of and them of cnn criticism of this deal as president. that has sparked speculation that he did interfere in the review, although there is no evidence about that. vonnie: what i am asking is is this lawful or legal for a company to put somebody like ask on the stand and questions directly about the president? can that person respond? david: it is possible. we should find out tomorrow when there is a status conference on the case and both sides are expected to bring this to the judge. it is possible according to lawyers that he could take the stand if the judge decides in relevant testimony is
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to whether or not this deal is anti-competitive. i think that is a fight that will come out in court. i don't know if the justice department will oppose it or not, but it is possible the head of the division will take the stand and defend the deal. shery: is that the primary risk of the strategy? there ise risk is that no evidence of interference and the head of the division becomes a very good witness for the government. if there iside, evidence of anti-interference, or if the justice department fights against putting the head of the division on the stand, then the potential is that the government justification of
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bringing this case is undermined. is a tricky situation for at&t and the government, and we'll see how it plays out tomorrow. thank you david, at&t right now up about a 10th of 1%, and waiting for this all play out. it is going to take a long time. shery: and we're at&t's testimony at 1:00. we'll bring you part of an interview with blackstone ceo. this is bloomberg. ♪
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vonnie: that is midtown manhattan. and we are live at the first
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world headquarters in new york. >> this is bloomberg markets. let's get a check of the major averages. dow up for tens of 1%. are leadingand tech the gains. the s&p 500 is up 4/10 of 1%. 1%, updaq is up 8/10 of more than 3% year to date. below year yield dipping two point 9%, reversing yesterday's gains. the japanese, strong gains for a fourth session. is no need really for an intervention. the south african currency, gaining 3/10 of 1% after president zuma resigned. bitcoin has broken
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$10,000 for the first time in two weeks. 10,000 -- 10ced at ,080. let's get the first word news. mark: the superintendent of the broward county, florida, school district's he said -- says seeing the bodies strewn on floors inside of the high school was "absolutely horrific." the 19-year-old former student suspect was booked into jail today after being questioned by authorities through the night. he is charged with 17 counts of premeditated murder. students have been reaching out to me, staff, board members and others.
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countryhe time for this to have a real conversation, on gun control. mark: it was the nation's deadliest school suiting -- cap --g since the one in since newtown, connecticut. speaking alongside the lebanese prime minister, secretary tillerson called before florida shooting horrific. a reporter asked him how the u.s. can urge other countries to reduce violence while it is dealing with mass shootings at home. >> i am not going to answer your question on the heels of what many people are dealing with. ning parents, people in difficult circumstances. need to keep them in our thoughts and prayers at this time and have conversations about other things later. secretary tillerson heads
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to turkey, next. appeals courtal has rejected the president's latest restrictions on travel to the united states from six majority muslim countries. the ruling on whether the travel ban is unconstitutional will likely be appealed to the u.s. supreme court. the israeli prime minister said he plans to make the case involvement in the ongoing violence in syria. he is scheduled to attend a security conference on friday, which he calls the most important security conference in the world. israel shot down a drone from iran over the weekend. global news 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. the spike in market volatility hasn't only affected
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stocks and bonds. it could impact mna activity. jayson kelley caught up with the chairman of blackstone group and started by asking about the return of volatility. >> it is pretty normal. world, thisat the world will probably grow around 3%. orcould be a little more less. the stock market is up about 7.5% in one month. multiply that for 12 months. you get stock market performance if you just annualized that. 90%,here in the 80's to with 3% growth. ridiculous. to stop that kind of compounding, or else you will
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have the performance of a whole year in one month. you can only go down in that scenario. you can only go down in that scenario. up and down. it will be a more volatile world. it happens at the end of the day, not our two hour. with the economy looking so good around the world, we will have enough. -- an up. can't be hugely up because we were up last year. >> will there be more dealmaking this year, or less? you usually have more deals when the markets feel that people are confident in prospects for their own business.
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buy someone else's business if your business is having trouble. as business confidence remains high, you will probably see more activity. area you are interested in is china. deals, comes to making there is a lot of activity and interest right now, especially between hna and anbank. are you a buyer? >> i am always a buyer of things that are priced. we are not a buyer at another price. there may be room for those two companies do have more activity because they have bought a lot. >> and to familiarize assets. what we thought were good properties -- if they want to sell them, we will take a look.
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you have set you can get to $800 billion in assets under management at blackstone, almost double where you are now. do you need to go buy something or start a aggressive new businesses to get there? when you keep your own culture, that is always best. it is hard to find things to buy that have the same commitment to type ofest in the world excellence, openness, cooperation, transparency, not everyone operates like that. on our corepromise principles. when when we occasionally -- when we occasionally buy things, it ends up going three times in three years.
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a smaller type of business in a niche that can profit. distribution or relationships in the world. it has to be a special thing. the opportunities for us to , 60% things and grow them of the products we offer to the investment market, it exists. there is also going to be changes in finance. i think it is inevitable. access forwill be the retirement market to our products. >> for the retail market. >> when that happens, the scale
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of what we can do is limited to our ability to find great investments, not by capital. i have never worried about getting capital for our activities. i have always worried about being the best performers in everything that we can with absolutely no risk. vonnie: that was the blackstone group chairman and ceo. let's get to washington dc to the economic club of washington. david rubenstein is having a micersation with the american chairman and ceo. the idea of put backs and mortgages and all the stuff, you only know about now because it happened. it is the theoretical debate. when it came back at you, it was really three aspects. cost of paying off
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the lawsuits. the second was branded damage. the third was operational cost. towent from 10,000 people 20,000 people, all the way back down to 9000 people. think about going through all those people. we had to modify it to milligan mortgage loans. it was a lot of work. when people see the putback lawsuits, that was about the third of the cost. it was not a good deal. we fixed it. >> the great recession -- >> from the standpoint of the country, it was lucky they ended up in the hands of someone who could take the pound and get through. six or 7 million mortgage holders would have been involved in bankruptcy. >> legislation was passed during that time.
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do you support any changes in the dodd-frank legislation? the large banks and industry are trying to say, let's get this thing back into the middle. liquidity, capital, stress testing, resolution regimes. all of those things are very important. we don't want them touched. what is not well understood in isrican society is the fdic a government guarantee for deposits but it gets filled up by the banking system. the large banks have a high interest in getting the regime right. 9.5 percent capital doesn't sound like 100 basis point of 1%. a hundred $60 million more loans than 9.5% versus 10.5%. >> you are not trying to change it. ?hat about the volcker rule>
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>> i don't think it does what we are after. the amount of work that goes in to proving you can do with proprietary trading is overworked. regulators are trying to fix it. it is hard to figure it out. the bear-sterns, the people that got in trouble can't go on. that is good. about the banks it self -- talk about the banks. the four major banks, jpmorgan is the largest. you are the second-most profitable. wells fargo, city. -- citi. is that too much power in for banks?- in four
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brian: the top five banks have 30% of the retail share, less consolidated than most other countries. we have a big economy. because the economy is bigger, not because we are outsized. when banks become bigger than the economy, you have a problem. our country is in good shape. we will always have all kinds of banks. heartike we have multiple stores -- hardware stores, drug local hotels, you always have different ways to attack the markets. it will be a very diverse market. big banks that provide service capabilities that go around the world and do things trying toe while string together small banks. small banks have attributes people like. that was the bank of
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america chairman and ceo in conversation with david rubenstein. catch the david rubenstein show. it airs wednesdays at 9 p.m. in new york. it is time for the stock of the hour. shares are sharply higher on the news that warren buffett's berkshire has bought a 1.8% stake in the company. abigail doolittle is joining us with more. : it never ceases to amaze. when a legendary value investor gets into a stock, the shares jump. investors want in it. -- want in. seen is a $3alue billion turnaround plan that cuts expenses by the end of 2019. that could offset complete
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losses of their drug that has been pressured by generic. fears around that drug have started a big crash, or pullback. a sharp decline. if we hop into the bloomberg, we see teva was a more than $60 stock. it dropped to $10. this could be a bullish congestion here, suggesting that buffet's bet may pay off. the stock is confirmed to go around 30. shery: what is the role of the new ceo? abigail: he as a premium to this story. -- adds a premium to this story. he gives conservative guidance. he is a research and development guy. their strategy is about cost-cutting right now.
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that could be another boost for the stock. there is lots of positives at work. shery: abigail, thank you. teva is the stock of the hour. vonnie: this french wine company is pushing shares higher after it reported earnings last week. the company is in the mix of a management reorganizing and is capitalizing on demand in china. what do the chinese like drinking of your stabler drinks? >> they are extending their repertoire.
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