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tv   Bloomberg Markets Americas  Bloomberg  April 30, 2018 2:00pm-3:30pm EDT

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very critical of their nuclear program. i wanted to ask if you have made up your mind to pull out of the deal, and if you do pull out, do you think -- do you worry the wrong message to north korea as you seek to enter nuclear talks with kim jong-un? pres. trump: i think it sums the right message. in seven years, that deal will have expired. iran is free to go ahead and create nuclear weapons. that is not acceptable. seven years as tomorrow. that is not acceptable. now, if anything, it has proven right what israel has done today with the news conference. prime minister netanyahu is gave a very -- i don't know if anyone has seen it, but i got to see a little bit of it. that is not an acceptable situation. i have been saying that has been happening to her they are not sitting back ideally. so we will see what happens. i am not telling you what i'm doing. let people think they know your
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for the 12, we will make a decision. it doesn't mean we won't negotiate. you know, the agreement was not approved by too many people. is a horrible agreement for the united states, including the fact that we gave iran $150 billion and $1.8 billion in cash. nigeria would like some of that. $1.8 billion in cash, and $150 billion. and we got nothing. we got nothing. --t doesn't mean i would not a newnot negotiate agreement. we will see what happens. but if anything, what is happening today and over the last little while, and what we have learned, has really shown i am 100% right. a new agreement. we will see what happens. but if anything, what is happening>> you are the first lo visit -- divisive president from here in the white house from there. you use folder language describe african nations?
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with theery careful process. they are not sure about the the best thing is to keep quiet. trump: we didn't discuss it. some countries in some countrid shape and very tough places to live in. we didn't discuss it because the president knows me and he knows where i am coming from. i appreciate that. we did not discuss it. you can ask a question. >> thank you. my name is julianna. nigeria --e to know,
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two -- to enable the country -- how soon will you be visiting nigeria? president trump: i would like very much to visit nigeria. it is an amazing country. theertain ways, i hear from standpoint of the beauty of the country, there is no country more beautiful. i couldn't hear what you were saying. .o ahead helicopters cared we helicopters. he likes it more than i do. they are buying a lot of helicopters. very soon, we are getting it approved. the problem was we were allowed to buy helicopters in the country in now we are.
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now you can buy the helicopters you want to they were not ourwed to buy the ones in country for various reasons which frankly were not good reasons. we make the best military equipment in the world. our friends can now buy that equipment. mr. president. did you have a question for the president? thank you. >> it is one of the major achievements presented to the world. the united states of america is one of the major is one of the major's editions of countries from nigeria. to cut down funding for terrorism. to reduce immigration from
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nigeria to your country. president trump: we have discussed all of the topics at length over the last time. in terms of corruption, nigeria has a reputation as you for massive corruption. i noted the president is able to cut that down substantially. they have made a lot of progress and i think they will continue to fear is -- continue to. cutting down on that, the president is able to do that.
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the progress made is such a material for us. thank you. we have certain barriers that do not allow that to happen. for the good of u.s. farmers and important tos very sell a product into nigeria and
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that will happen. thank you all very much. thank you, everybody. thank you. collect that was the u.s. president, donald trump. let's continue to listen in. we are alsoump: talking about the possibility of the dmz. the freedom house, something i thought was intriguing, i think some people may be do not like the look of that in some people like it very much. i threw it out today as an idea. i told president moon and through him, we connected with north korea. there is something i like about it because you are there. you're actually there. if things work out, there is a great celebration to be had on
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the site and not a third-party country. we are looking at the possibility of doing it. other looking at various countries, including singapore. the good news is everybody wants this. be a bige chance to event. the united states, i talked to john bolton about this a little while ago. the united states has never been closer to potentially having something happen with respect to the korean peninsula which can get rid of nuclear weapons, can create so many positive things, and peace and safety for the world are we will see what happens. i often say, who knows? maybe a lot of things change. kim jong-un, who has been very open and straightforward so far, i can only say again, so far. but he is talking about getting talking about no
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research, no launching of ballistic missiles, no nuclear testing. he has lived up to it for a long time. longer than anybody has seen. we are looking at that us potential site. it would be interesting. it would be a great celebration if it works out well. if it does not, that is the way it goes. >> are you still confident the summit will happen? president trump: yes it we would certainly like to see it. i think the summit will happen and i think it will be a success but we will see. toit is not a success, got get rid of nuclear weapons. i wills not a success, respectfully leave. it is very simple. thank you very much. thank you. >> president trump again reiterating his stance on north is veryaying he
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confident that the summit with kim jong-un will happen. and if it is going nowhere, that he will respective -- respectfully leave. he made that comment earlier. also talk about where he would hold the summit, including seminal -- singapore. holding the summit in the summit d.c. --piece house on the u.s. can vouch for and iran -- one hundred percent right on iran -- iran. messageld be the right to send to north korea or for more analysis, let's playing in
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bloomberg national security from the white house. let's go to bill first first of all because president trump talking about they are open for a real agreement. the iran nuclear deal p are not saying whether he will stay or leave. mean?ould that >> he offered some praise for the prime mister netanyahu positive presentation about the files they found. he did open the door to try to talk about a better deal. leaders have tried to convince the ministry to stay in the iran nuclear accord. thatt on initial agreement would perhaps satisfy the president-elect's complaints. it is not clear if he is talking about that or a broad agreement. the iran nuclear deal, we never call it a treaty. it was never authorized by the senate.
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it was something that was presented without congressional approval. ae president may talk about deal that he can get to congress as will -- as well. it is not clear with the details are but he is opening himself up to some sort of a different on iran. >> we know netanyahu on sunday met with a new secretary of state, mike pompeo. how in line is the team on iran right now? >> secretary of state mike pompeo also appearing at the saudi arabia and foreign minister addressing the issue of a sponsoralling them of terrorism president trump speaking yesterday with the prime minister benjamin netanyahu. the president in the press conference going as far as to say a lot of people think they know what his decision will be may 12 about whether or not to pull out of the iran nuclear
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disarmament deal. he has been incredibly critical of it consistently for quite some time. he also confirmed israelis did provide the intelligence information to the united states. israeli prime mr. netanyahu saying iran lied about that. the other big development is president trump going down on the assertion that he is open to the idea of going to the nuclear site on the korean peninsula to hold the summit, should north korea dictator kim jong-un be willing to close it down. it would be a remarkable development. president trump has been consistent in saying the only outcome he is willing to accept his for north korea to get rid of the weapons.
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>> kevin, thank you for that. both -- to youu both. still ahead, we continue our live coverage from the conference with live interviews from the former u.k. prime minister tony blair and ceo david. this is bloomberg. this is bloomberg. ♪
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does credit still leave right now? equity how credit and investors are seeing assets. discredit lead at the moment? of think it is a complicated question. it is so geographical this point. clearly, what are credit spreads telling us? they get tighter and tighter and the system gets tighter and tighter. go, it has not gone back and that is the story. i think coming out of the great recession, the recoveries were
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globeferent across the that we see different cycles in europe and asia and the united states. thatot entirely certain whatever cycles we see going forward will correlate exactly the same way. sitting onut what is my desk right now. a finance company in italy to india, a private loan in the united states and everything in between. think about taking risks and where you want for most risk and word you want to pull back on risk? depending on geography? >> i think in the united states, the biggest market, i think you want to keep it in the middle of the fairway now. the risk curve is quite flat and i do not think you're getting
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paid as much as he should bp or they're all sorts of arguments the economy is doing well and therefore the risk to the united states is inherently lacks. at the end of the day, i do not think you're getting paid enough extra to take extra risk in the united states. overseas, there are a lot of situations you can bring value through thetment collection through restructuring and helping private loan in countries that do not have the same inking system. there is a tremendous amount of opportunity and those are the situations where you are bringing a skill and more than just capital. >> you have to be an active participant adding value to the situation rather than watching it and saying hey, this is time for me to get in. wherese are not markets
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you are dissipating and data. >> got it. hello does it take for these investments to produce the return you're looking for? think it is twofold. some investments can take six months to a year. that is not used to in the united states. we work on these investments for a long time. you have to have high conviction and a team structured to be able to put resources against those investments. some of them could be a five-year journey and you have to be sure your pricing the time and the effort risk risk of it not getting done. >> obviously, there is a troubled relationship now between china and the u.s. know wherewe do not it is headed. does that give you pause in terms of dealmaking?
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do you hold back on what you're willing to do, do you wait and see? >> no, i don't think so. we as an institution have a big commitment to asia and china in particular. we have over 80 people in the region. as an element of trying to understand not just what is happening locally, but we have to think about what our government is doing as well. i believe it will be worked out. i know secretary mnuchin is going over on thursday and we hope progress is made. it as another level of things to think about. long-term thinkers look needay, both countries
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each other as trading partners and both want a trading i hope that isd what prevails. >> you might be a long-term banker but so many aren't. market, seen the equity the bond market, struck off a lot of bad news and become numb to it. why do you think that is? the case, that is what it is spirit what happens when you eventually get a situation where investors treat bad news as that news? >> it is one of my biggest concerns. that would be a surprise. fighting in syria did not seem to bother anybody. trade war's do not seem to bother anybody. the definition of bad news, you could pick almost anything you have read on the front page of a newspaper for the last four years, roll the clock back 15 years and any one of them would have caused a major market collapse.
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side and a bad side. people are reacting more rationally two, what is the real impact, and the downside is, people are using the fact that the market is trading up as justification for why not to worry about these things. --rt-term news is leading to ignoring short form -- short-term news leads to the markets up in the short-term. i do not know what the piece of news could be. but i worry it could be something no one could process or a majorr hack terrorist event or a computer going awry. will happen is the overreaction. people will take the sum total of everything they wish they did not ignore and may be moderate it a bit and feel like they got
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caught with their hand in the cookie jar or markets are resilient and they correct themselves and then continue to move forward. jonathan, thank you so much. 30 minutes or so, i will get another perspective on the markets. up fromre is coming beverly hills. >> think you for that. time for a look at some of the biggest is the stories in the news right now. elliott management becoming an loanr of collateralized obligations according to people familiar. the hedge fund is building a team to assemble deals and has listed consultants to help with efforts. in the first quarter, sales totaled a record $37 billion. that is 100 18% up from a year ago. the largest warehouse owner will get even bigger.
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$8.4 billion in the stock and debt deal. amazon and other e-commerce. wanting to use blockchain to fight the opioid after -- epidemic. they were track pills for many factors to patient homes and find when a patient takes up multiple prescriptions from doctors. this is scheduled for spring. that is business flash update. coming up, better prices. that is what the t-mobile ceo said when we can expect his new super carrier. we will hear from him next in the deals report. a quick look at what is going on the market the session today. a snapshot for the s&p 500, you, pressure by
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pharmaceuticals and the tech stocks once again weighing on the border market now. talking apple earnings the trade. keep in mind as far as the dollar index is concerned. a pivotal week for the broader data. moving to average level not seen since 2017. oil also the topic du jour today, higher by .4%. israeli prime minister saying his country has half of iranian documents outlining intention of the iranian nuclear deal. huge news today. from new york, this is bloomberg. ♪ we use our phones and computers
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the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get up to 5 lines of talk and text included at no extra cost. so all you pay for is data. see how you could save $400 or more a year. and get $200 back when you sign up for xfinity mobile and add a new line of unlimited. xfinity mobile. it's a new kind of network
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designed to save you money. click, call or visit an xfinity store today. >> this is bloomberg markets and i am julia chatterley. let's get an update on the news with kaylee.
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israel's prime minister says his government has obtained half a ton of secret iranian documents, proving the iran government has had a nuclear weapons program. call it a great intelligence achievement, benjamin netanyahu showtoday the documents iran lied about nuclear ambition before signing a 2015 deal with world powers. president trump is to decide by may 12 whether to pull out of the deal. about 200 asylum-seekers are not being allowed to turn themselves into u.s. order inspectors for a second straight day. customs import a protection say the san diego facility has reached capacity. mexican authorities allowed about 50 people to cross a long bridge leading to the facility on sunday but authorities in the u.s. told them to wait. britain's new home secretary vowed to find a solution to the immigration scandal that led in part to the resignation of his predecessors. decision need addressed
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lawmakers in the house of commons. >> i want to start by making a pledge to those from the generation who have been in this country for decades and yet have struggled to navigate through the immigration system. this never should've been the case and i will do whatever it takes to make it right. >> stepped down after reportedly misleading lawmakers on the immigration targets and in the wake of the fallout after caribbean to lead in britain for decades, refused medical care or threatened with deportation. the first politician from an ethnic minority to hold one of the first top jobs in the british government. the adult film actress who claims she had an affair with president trump is escalating her fight. defamation. stormy daniels filed a complaint today and is seeking a jury trial in unspecified damages.
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global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kaylee and this is bloomberg. >> thank you so much. they are shaking their heads on that one. to partners, bert -- agreeing to merger $145 billion. on antitrust concerns. -- on quinn spoke with why he is confident the deal will get done. listen. it getnow and will approved? that is my job starting day one. i'm confident in the plan. i will be there and after we
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finish, i will go there to be there quite a bit. we have got three points, and what is different now? silent -- 5g is after we finish, i will go there to be there quite a bit. imperative, the nation's capital should that 5g at stake and t-mobile and sprint to gather are the only companies that can change that. 5g is critical for the country. we will change that. thend, we will supercharge un-carrier. the country will look forward to a broader range of service, lower prices. the three, jobs will go up. >> ed, an interesting deal. fast forward a few years. talk about the prospects of this getting done. the share price is not convincing today. ? it does not think it will get done. or at least much better than a 50% chance of getting done. both companies have really tank. you see sprint is down about 15%.
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the merger has spread is about 10%, which is huge if you consider that normally, you would see t-mobile up slightly. the market saying you have tried to still before, they tried it in the last time they tried it, the government got out ahead of them and said, if you try this, we will get head of it anyway. i do not see a good chance of getting it through. >> we are talking about number three and number four of wireless carriers tying up. what is their strongest argument to say actually, this will not result in less complication and consumers versus the opposite. >> i am not sure about the buted -- the supercharging the 5g is the huge argument. >> why? >> if you flip back to months when you saw the u.s. government and she said she would come out
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qualcomm -- they did not believe it would be a big investor in 5g. what they're saying is if you come together, the investment will help to keep america at the forefront. also interestingly, because of the money they want to qualcommd invest, largeill force the two incumbents, verizon and at&t, to a significant increase. >> sensitive in the united states about ownership and this is more complicated than many others. we have the softbank involvement with sprint and t-mobile. what difference does it make and to perhaps other deals we have cut going on being blocked. why could this be different?
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>> i do not think the ownership to perhaps other deals we have cut going on being blocked. struggle is two different. the fully complication us. it took a while getting to the point with companies agreed to a deal. his son who ultimately controls softbank was very reluctant to give up. but he needed to. the other thing is you have two ceos who fall over the right direction. they have been critical of each other. critical of almost all of this on a daily basis. social issues are bringing this together. it will be much more on the merits of whether this hurt the u.s. consumer. >> what else would you say about the environment in 2018 compared ?o back what it was compared to even the provision content providers and the
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landscape shifted, whether it is deals or big tech guys adding to the market queue, do they have other arguments to pull in? at the 5g she is by far the biggest argument. we are really pushing into that and that is something the government has identified so that is obviously a big part. the market has gone through structural changes. other areas, you have the likes of amazon, it has not really played out here yet but there are shifts in the market and consumer habits. i think a crucial area is you have an unpredictable government here know knows what they will come out and say or whether they will block something. no one thought that would get blocked tear the boj came out and tried to stop it. it looks like it will go through now but you never know. >> we will continue to talk about this, no doubt. thank you as always. coming up, returning as the ceo for the world's largest money
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managers. from new york, this is bloomberg. ♪
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from better -- scarlet: from beverly hills, the world's conference. , we areu this morning talking markets, of course. one of the great things, it gives everyone an opportunity to step back to take a look at the big picture. how much conviction do you see across asset classes rate now?
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there are diversions is of opinion which set it apart. how about we start with you? >> i think it is true. we saw in the first quarter volatility was spiked. it was striven by technical factors but the reality is we have got tax reform. look for signals and in the meantime, we get negative comments and see that sector trade off. equity markets are after a pretty sustained run and are starting to step act is little which is probably not a bad thing. >> we would say there is real confusion between risk and volatility. they are not the same thing. most of our investors are long-term investors. a little volatility is no bad thing. last 26looked at the spikes in volatility.
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back with ancame average of seven months. in market where, everything is richly priced. they are looking to take avenge of volatility so over the the assets are not a big issue for clients and volatility can be a positive for them when used appropriately. >> is it a good entry point now? is this a good entry point right now? >> we are deftly closer, without a doubt. we have been of the belief for a years that this will be low. we do not believe will go back -- we were -- we are adding to the portfolio. credit,you think about
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you might want -- not want to be too long in duration. you start correcting credit like high yields. little without a the trade-off in the first quarter. we do not try to time the markets so much credit. look -- you look at the fundamentals in credit. you see the races being very low. >> we would agree. the big event is the flattening of the curve. we can argue about exactly the level of hits but we have been betting on a flatter for the last year and we think that will continue. i think investors should .osition themselves for that the big question is if we get to one -- >> d.c. that happening? mattis much on the curve, we are heavily weighted to taking the credit risk but i would
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agree with david that we don't rates materially spike. i think they're trying to find a new level and the curve will clearly be flat. is ae thing that happens lot of dealmaking on the sidelines. there are a lot of conversations taking place. in yearsobserving that past, a lot of conversation with federal reserve, whether it is raising interest rates too quickly, the ecb raising. the conversation is different and focused on political risk. >> it has been remarkably different. the last three have been very much more about the macroeconomy and the fed or ecb or bank of japan policy and i've heard in yearsne of past, a lot of conversation with
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that with this
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topic. people largely know where the fed is. the general macroeconomy is obviously very good. with this topic. people largely know where the fed is. the general macroeconomy is obviously very good. so the focus is around trade risk, brexit and how that begins to play with this topic. people largely know where the fed is. the general macroeconomy is obviously very good. so the focus is around trade risk, brexit and how that begins to play out, the korean peninsula. the political dynamics have really taken a much more prominent role. u.k. what was the real estate holding? , a countries depended on
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trading with the u.k.? helping people to disaggregate portfolio into the country risk is not easy but when you do it, you can see significant levels of risk people didn't even know they had. >> you are looking under the hood and basically breaking it down. >> and i add another element, which is why i say the risk is president bush was able to bring together the g20. they dealt with the global crisis as a group. facedot know, if we were with a similar crisis, if you have that kind of cohesiveness in a global community, that is an unforeseen risk. >> given the political risk from developed nations, should developed nations -- those places where political risk run rampant all the time. >> i think it is a great point and you see that the most in the foreign exchange market. the one place that really did -- i think you
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saw that and will see that again as we look around the world and we have these events. .ou will see sudden moves >> i agree. i big a lot of pricing at times with them are the emerging markets paragraph now, we would probably mean -- be more constructive with emerging markets. we see the fundamentals playing out in the next three years. the economyizing and some of those paradigms are breaking down. i do not know if the marketplace always reflects that. greathink that point is a one, that the emerging markets are very different than they were. the amount of trade happening within them and rather than between, it is growing much more rapidly. however investors are looking out over the next 10 years.
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>>'s value call a high production trade right now? >> a high conviction trade overtime. the problem is when to get in. i think we are not yet there, but we will be before long. to happen for that moment to strike? for the time to be right to get in? itwell, again, i think depends on what is the stimulus for it. you saw in certain markets in the first quarter one credit markets came up a little, they did not trade as much as equities. continue to evaluate the fundamentals, and sometimes your entry points have nothing to do with the broad industry and the value of certain company or even emerging countries. >> and it could the technical as well. thank you so much for your time,
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gentlemen. great to have the conversation here at before i send it back to withjulia, i will speak tony, forney -- former u.k. prime minister. we will discuss what we have in discussing right here. all of these developers along with his take on populism. >> taking home the iranian nuclear situation as well. up, by the payment protesters heading for its best day ever. we will discuss. this is bloomberg. ♪ ♪
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julia: this is bloomberg markets. on strong earnings, first data. the company is heading for its as the firstecord quarter adjusted eps, numbers that the estimates. daveng us now is columnist
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wilson, great to have you want. looking through the earnings, and as great as they are, i am not sure what we're seeing as far as share price today. hadmong other things, you revenue for that latest quarter that beat analyst estimates in the survey here at number i more than 4%. that hadn't happened since the company went public in 2016. the first day, taken private head of the bull market in 2007, then the private equity confirm zone company decided to take it public again 2.5 years ago. today, it popped up above the price. quite sit has underperformed, peer groups as well. part of it as you said is recapturing the ground as you said. the emerging segment, some really positive signs were there. >> they are trying to build out
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up ad banking and they set system so if you are in a restaurant, the leader pulls out the little terminal and processes the payments at your table, that sort of thing. they are pushing into other areas as well. it is paying off for them and there is a shift going for them. their specialty is the hardware we put interminals with your credit card and that sort of thing. a lot of it has moved into software, an area they are building up and it is paying off. >> great to get context from you, dave wilson. time now for the bloomberg business flash, a look at some of the biggest is the stories in the news now. --gan stanley wants to the bank will raise salaries for most investment banking by 20-25%. the first big race for associates in almost four years. wall street banks have been reducing pay and perks.
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panasonic will pay to end the u.s. corruption probe. 140 $3 million will go to the securities exchange commission which claims executive consultants for doing little or no work. $137 million will go to the justice department. the company reported sales payments between 2007 and 2016. shares of fitbit are rising. the company agreed to use google cloud services to integrate wearable devices into the health care system which will allow data to be combined with electronic medical records. coming up, we speak with tony blair about tensions between the west and iran. announcement of prime minister netanyahu, they have got all sorts of information regarding iran path his intentions.
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this will be a fascinating conversation. from new york, this is bloomberg. ♪
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julia: i am julia chatterley. ♪
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scarlet fu will join us in just a few moments. joining us live at the global conference in beverly hills but first, a quick check on where equity markets are trading with abigail doolittle. abigail: a reversal of gains earlier. the doubt, the s&p 500 and the nasdaq all solidly below near session lows. a bit of a risk off tone. the nasdaq 100 at the highs up at the lows. and see it is true in the s&p 500 and going in the bloomberg and looking earlier today. 11 sectors hire now. higher with sympathy.
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telecom lower and a lot of weakness is here. tech had been the top sector earlier. let's look at big movers. now up about 1.5%. microsoft, the big tech names being sold off. >> thank you. breaking news on the burgeoning borrowing needs. >> with the spending bill and tax cuts, we will have to build in the reek it -- in the quarter coming up, 75 billion dollars per they had seen 176 billion in part because they borrowed so much in the first quarter. january to march, that is a record.
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up in theit billionarter a $273 july to september. it is in the face of deficits that are supposed to be at $1 trillion in 2019 and beyond. you will see this continue to rise. question is will in what do they put these auctions? whether question about you continue to go short or are you taking interest-rate risk as the fed continues to raise interest rates and the treasury has to make their announcement before we get the fed decision wednesday. >> we had obviously been expecting this. a significant round of spending for the reasons you mentioned. look and sayill actually, we are really uncomfortable at this. the question. when do people start to think they are not getting paid enough in interest rates start to rise? we have not seen the signs yet that given a forecast, it is likely to be sometime next year. we all worry about what china
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and japan is borrowing, will they continue to buy u.s. treasuries and at what price? concessions into auctions. thank you for that. to that of early hills of the global conference. fu is there with the voices on global politics. .aken away scarlet: thank you. i'm there to share with tony blair -- tony blair. a lot of changes happening globally. i need to start with iran, of course, and the latest headline from israel where netanyahu said israel had evidence iran had a nuclear, a secret program to build nuclear bombs. knowing what you know, what is your thinking on it? >> you obviously have to examine it very carefully.
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these are the investigators for whether they constitute the breach of agreement. the further ratcheting up of pressure for the president makes the decision. >> the president will make the decision in about 10 weeks on pressurewhether president trumpd pull out of the nuclear deal. what do they do next? how do they fortify the argument? to examine what comes out of israel and see what impact that makes. >> any kind of result? ofyou have a clearer idea whether the document and those impacts -- the majority would be to keep
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in the realt problem is all over the region, an additional issue with the nuclear program. region, the destabilizing effect, whether it has been syria or iraq or yemen or the pressure put on the gulf state. is obviously the nuclear deal and the other question is how do they build a strong enough eli and between the u.s., europe, our allies including israelis and saudi and others, pushing against the power in order to have stability. >> we have seen it taking place in the middle east. what does it mean for the dynamic of syria?
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>> it places a greater emphasis on the need to have the alliance , which today would include not state, but the muslim state in the region. is how you achieve religious tolerance in society, and howbased economy, to transition the government to a people really want. i think there is a real alliance between the u.s. and europe and these other countries. its greatest awesome -- obstacle is the willingness of iran to fight very hard in the region. >> a tall order and a lot more suspicion of multilateral agreements that used to be peerless talk about brexit. as recently as late march, you said it is not too late to stop exit.
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do you still believe that? how would it happen? >> it is a good question. the answer is what we have isrned since the referendum this negotiation is much tougher than people thought and essentially, there is a central that is not yet resolved about our future trading relationship with europe. we could arrange close to europe in which case we will abide by a lot of rules, in which case, a lot of people say why are we leaving, or alternatively, we will have a clean break, go our own way, in which case given that half the trade will be -- once the government resolve the there will be a vote to parliament and in that, last
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june is a general election, i think they will find it very tough. gridlock, it is simple to say it should go back to the people for the final decision. rerun but a be a different vote. >> clearly, the government wants to move forward and not have a gridlock in the other referendum . >> the devil is the government .tself is fundamentally divided >> things have not helped with the recent resignation as well. one of your organization's missions is to revitalize parties. to find a way to occupy this case that you want to. what is your involvement in the new party? talk a little about that? >> i am not involved in any
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party. in talking about that in a realistic way the u.k., it is not something i'm involved in in event. the truth is if you end up going into a heavy, nationalist position, and the left wing goes , to the socialism from the 1960's, i only say it does not matter what i think or anyone else thinks. if you believe that in politics, they backed you. the key is to get the policy work on tohat we allow us to deal with the challenges of the modern world. migration for these countries is essentially a good thing. the left goes on antibusiness, undermine at the challenge is what will we do about the technological
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that will change the way we live and work and how do we prepare people for it and access the opportunity and mitigate the risk? it is not just about being in the center. it is about reigniting optimism about the future and showcase the way to navigate. >> speaking of immigration, you have proposed radical change in part by using technology to replace official id cards with that identity system based on computers, and encourage immigration. >> i think it was a big reception amongst the p o. immigration can bring fresh energy and fresh ideas. the other hand, people want the control and they do not want
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to just feel it happened. they want to feel immigrants who come into the country and understand our values, share our values, and will abide by our values. we need to create technology, which allows us to do this, create a situation in which we know who should be here legally arenot legally and where we pursuing politics of immigration, at the same time, people can do whatever religious things they want for example, and also knowing the shares around democracy, those are things we have to share. i'm trying to get to an immigration policy. it is not they problem but allows us to have immigration. that meets the general anxiety. >> tony blair, a pleasure to speak with you. founder of the tony who -- tony
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blair interview. --ill speak with a lot of news out of europe and how that changes the competitive landscape. >> a fantastic interview. alibaba on the attack and we speak with the cofounder of the internet giant about the company's expansion plan. from new york, this is bloomberg. ♪
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julia: thousands of tech executives, the global conference is in beverly hills. emily chang is also there and was joined.
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emily? emily: i'm here with the alibaba executive chair and cofounder of alibaba. we were talking about the current relationship with the united states and china. if you kill jobs opportunities -- what do you think? >> very much what jack said, this would fill a lot of jobs in america because the tit-for-tat will cause a china, theyand in put a tariff on soybeans and it will hurt american farmers. wherek we're in a context we see a huge market in china and it is ironic the u.s. administration is putting on trade war right now because a
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lot of consumers in china. president gigi and paying -- president ping, it billion dollars worth of goods. because of the trade war, they put the dates down because of retaliation. to close off a lot of opportunities for producers in the united states. >> it may not happen -- if the trade war moves ahead, are you pulling back on that? ?ill the jobs not be created >> jack has said we will not create a million jobs. we will possibly create 10 million jobs if they are open. if there are trade war's an opportunity for small businesses because there is
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a trade war the consequences could be quite severe. will not bebs created, that is what you are saying? >> i am not an economist but certainly, creating zero jobs rather than no trade war. this is an important issue for us. in the longer term, we do not think it will affect our business p or we're focused on some of the markets we are in in china and southeast asia and we think there are tons of opportunities in south east asia where there are 600 million consumers we could tap into. economicis a pause in relationship between china and we will waitates, and see but we do not think this will be adversely affecting us.
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>> how many companies, u.s. companies, is alibaba investing in at this point? >> we have invested in a few and we have made successful exits. the reason we're hearing in the united states, investing, is we want to work with entrepreneurs and we want to talk to them about new product ideas and innovation. and also share some of the experiences in china. what areas are we continuing to invest in? >> anything that is a new product area related to the core business, e-commerce logistics and potentially cross-border. having a lot of merchants and brands selling into china, they will need logistic support. a sweet you consider evaluating and making effort? >> we are playing a long game.
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the capital available to launch of a norse, regulatory constraints is another matter. we are aware there could be approval costs that could take a for us but we will not pull back. it -- how is alibaba set up for that. you're thinking about a worse case scenario, so what are you doing to prepare for that eventuality? >> there is always the regulation in every sector you are in. right now, as the business grows the regulatorrse, will look and say, this is an area and we are fully prepared to do that.
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they want the same level of transparency. ourhat they can understand business. china areegulators in forward-looking and want to learn about behavior and the innovation markets so they can create reasonable regulations appropriate for the circumstance. >> all right. >> what we are ahead, treasury secretary steve mnuchin, that is coming up at 5:00 p.m. eastern time. from new york, this is bloomberg. ♪
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scarlet: i am in beverly hills,
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california, at the conference. here with me now is the chairman u.s.eo of the biggest supermarket chain. it is a pleasure to speak with you because it gives an talk withy to something we do not get a lot, a focus on credit markets. it is a competitive landscape for markets in the u.s. and it is challenging. it is changing a little bit this morning with them announcing their by walmart in the u.k. what does a walmart that has a smaller international -- and a sharper focus on home markets, mean? >> continually changes and it changes a part of who we are. based on their return. is a great competitor
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and will continue to be. us, we really focus on how we deliver against the needs. >> are the customers not for filled by walmart? >> we -- over 9 million people a day come into our store and we are focused on those 9 million customers. >>clearly, they want something more natural and organic and that is a product that has been growing for us for several years. if we look at our own brand on simple truth, five years ago, we and it is in over $2 billion category today. everything we do, we personalize it for the shopper individually from inspiration standpoint so
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it is not so much what someone else does but completely focused on the customer and the household and how to better serve the needs for their values nine terms of ethics but the value equation for them. >> how does getting bigger help? there were reports that were denied of course. talk through the mechanics and the benefits? there are scale benefits. does it solve the fundamental problem of providing the value? >> on any type of merger we look at doing, we are completely focused on, the two companies together create capabilities a new one of us would have independent of each other. that the scalegh is not what we need for merging with someone. >> so it has to be strategic as well. cart -- u have is to
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insta-cart. do you need to build out your or is it withrk whom you can expand your partnership? >> the customer really wants to engage as in multiple ways. physically in the store, online in terms of pickup and deliver. to gohe customer start online, they still physically go in the store. itn a customer wants to do on our terms, -- >> what you want to own those terms? toys are use outsourcing and e-commerce it never really recovers from that. decide when to do it ourselves and when to do a full party. >> and acquisition at this
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moment. $400 million offers. >> you should assume that anybody who at this accelerates where we're going. moment.out specific -- we never talk about specific was but we tell investors, you know or we're trying to go in terms of serving the customer on our terms. we're looking to serve the customers on our terms and anyone can celebrate the journey and partner in multiple different ways and not just merging companies but sometimes, it is a relationship. >> you are open to all and any conversations. got it. we need to a dress issues. inflation is one that you are look at. we're specifically are looking at costs?
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for>> you are open to all and ay conversations. got instance, fresh produce or package goods? >> if you look at wage inflation, with entry-level pay raises,lebrate especially for beginning associates, and we also use our program. it will always work on process andges and wage increases that is something they have been doing for the last 15 years and always will be. the other question was like produce. so you will have a tremendous amount of inflation. future, you have plenty of produce. it looks like a flat line.
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from a trade perspective, our competitors will have to deal with the same thing so we leave it up to government officials because there is a lot more knowledge than what we would. >> how much taller is it among customers for higher prices question mark how concerned are you that you are not able to invade prices in the competitive market? >> the customer always wants the value. if you think about something that has a lot of convenience or incredible pace. -- something right from the farm, delicious taste. someone is more focused on the taste versus trying to find a
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>> final question for you, what is the most interesting problem we've had on the sideline fascinatingilk is and i think there is a lot of people we can partner with two help america eat healthier. i have met several people who have been so running that journey. ceo. is chairman and let's go to kelly for the first news. word >> president trump says his meeting with president trump looks like a


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