tv Bloomberg Daybreak Americas Bloomberg March 15, 2019 7:00am-9:00am EDT
not straight. it's squiggly. the good news is we think it's northbound. alix: it's a squiggly line. recovery and power unit will be l shaped and multiyear effort. a message to china, i got your back. the chinese leader stands firm behind the efforts to o support the real economy with record tax cuts without relying on monetarypolicy. third time's a charm, theresa may still looking for the brexit deal. if it fails they could be forced to stay in the e.u. for more than a year. david: welcome to bloomberg daybreak on this friday. a very sad day. a terrible incident in new zealand. 49 people dead. 20 people severely injured and two different mosques. it appears to be a coordinated terrorist attack. it is a terrible situation down there. alix: the national security level has been lifted to high from low. they don't have a reason to believe other suspects are at
large. nonetheless with these situation us can't assume the danger has passed. david: they charged one person, they have three other people they have detained. we're not sure the connection can. it makes things worse if possible. they were streaming, the people behind it were streaming it live as it was happening and facebook couldn't get it down. they took it down and said we're sorry about it. it raises questions about the live streaming video. alix: when unfortunately we talk about these attacks, we tend to talk about social media not usually in this way but more how the information is disseminated quickly and how it can be a benefit to law enforcement situation. david: it can be. it's a copycat situation where other people say that and say we can try that. it's alarming. very sad in new zealand. alix: we'll track any headlines coming out of new delapd after 49 people died and 20 injured. moving to the markets.
twad quadruple witching, welcome to the crazy day. a lot of options. volumes could be high. especially right around the close. eurodollar up to .1%. yields here in the us gus nowhere. did you have the 530 spread, highest level in 13 months. and crude flat, goldman sachs out with an interesting call short-term, for oil they see rallying into the 70's. david: time for bloomberg first take. we're joined by mark. big news overnight the end of the national peoples congress in beijing. the prime minister spoke to the press about what was being done and specifically emphasized we're going to have fiscal stimulus, in the form of tax cuts. he means business. >> government at all levels must deliver these tax cuts. there must be no lip service. we will let all market players
test the results of our policies and measures. eventually our end goal is to deliver concrete benefits to all market entities. david: mark, no lip service. they mean business s this going to be enough? mark: i think in the near term it will be enough because you have the stimulus that will come across. if you break it into the different parts of g.d.p., they are coming after and trying to protect the consumer. they are trying to do things in terms of these tax cuts of two more.yun or on the investment side they came back out trying to protect i.p. drive additional private investment. on the government side, we saw 5.3% unemployment. we have seen seen unemployment like this in china. how can the government protect. on the back end you see made in china 2025 off the script. we have seen things that might be seen as a headwind in a trade deal start to get walked back until they can get something
both from either the u.s. and something stronger from the euro. alix: rachel, what do you think? rachel: the last couple weeks have been huge for chinese e.t.f. they have added more china to their indexes. the last week or so i have been watching is ashr traction on the on shore market. i think a lot of people are waiting to see the outcome from m.p.c. what i took away was how they were going to fund these tax cuts. they are going to be breaking in profits from financials. that's interesting. if they do that that can have an impact on suppliers. it can have an impact on lending t will be interesting to see how that plays out. david: it's interesting, rachel's point, they are not going to run up the debt more, they are going to take it from the s.o.e.'s and banks. it wasn't just the tax cuts. april 1 and may 1. also that new investment law
that they passed. they say they can can have $1.5 trillion over 10 years. mark: back to the point about the deficit. you saw they increased their tax cut but the deficit didn't move. they were going to pull in this ability and going allow on a provincial level some of these semiautonomous and government entities to go out and raise capital to bring in additional flow and give additional capacity to invest and help prop up some of these provincial areas that might see these extended unemployment. alix: brexit, third time a charm. there was an amazing piece that compared theresa may this week to monty python the holy grail when the knight was getting cut off. he has no arms and legs, you feel me, right? the idea you just voted twice and vote for the same thing next week and that will make a difference. what do you do? mark: i think vol will continue
to creep higher. chinese with the unemployment came in hire. you have seen exports slow across the board. now you have seen at the end of the day inflation has been relatively stable. the c.p.i. came in line. drag hi can come out and -- draghi can can come out and what will his vote do? we'll most likely kick the can again. at the end of the day you'll see vols creep higher. david: rachel? , chel: keep watching e.w.u. u.c. focus. we can see a spike in trading on wednesday. it's been pretty quiet. i think it will bing interesting to keep watching over the next week. probably going to have a vote march 19. the date for the next time we vote on this. the third meaningful vote. very meaningful. then they go to europe on the
21st. see if we get news after that. may is trying to use a delay. short delay, as an incentive to take this over the long delay. david: we have chuckled about it. i wouldn't rule it out. rachel: there was a good piece talking about game theory. she does have that advantage where time is getting short. david: just where she wants them. alix: third voter one-year extension. david: turn to third story which is general leak trick. yesterday came can out with information specifics on what's going to happen this year and going forward. among that they said their cash flow will be anywhere from negative $2 billion to break even. i got to sit down with the c.e.o. about what that was. he made no bones about it. he's not proud of the numbers. >> it's not a number we're particularly pleased to put out to the market. it's one i think sets a hone tone for transparency and
reality as we prepare g.e. for the long haul. david: mark, transparency and reality, those are two words people would like to associate with general electric. they haven't been recently. i'll put a chart up. the last five years what's happened. general electric is the white line. the blue is boeing. the way they have transposed. in fairness to larry, he's only there five months. it went down and dipped down and coming back up. basically to where they started. you see boeing falling off because of the 737. mark: at this point g.e. is in a good spot. he's done all the right things in terms of coming out saying this is what's wrong. this is how we'll fix it. it's not going to be pretty. we know what's wrong. we know how to fix it. and continue to drive forward. and i think at this point with the grounding of the 737 there's been a concern about what about the deliveries, g.e. engine? the engine, they have 33,000 in
service. they have a ton across the after market. the people keep coming back saying their turbines are fantastic. if you look at l and g growth, their turbines are really some of the best in -- lng growth, their turbines are really some of the best in growth. alix: this brings up the idea when you buy a sector. whether are you looking at g.e. i wonder if that's affected. rachel: if you look at x.l.i., it's inflows. more than 400 million has come into that. we did see a spike in trading when we saw some of that boeing news hit. holding there. if you look at the correlation between industrials and the price of boeing, we found that was at the lowest in 2017. when you do buy a sector, you do get to diversify and potentially avoid some of the company specific risks. alix: thank you so much. appreciate the time.
the securities and exchange commission has sued the german automaker for misleading bondholders over the matter. regulators say they sold billions of dollars in bonds in the u.s. while concealing it's emissions cheating scheme. they call the suit flawed. elon musk has unveiled the newest vehicle. model y, a cheaper s.u.v. that will be available in spring of 2021. base price, $39,000. a longer range version will cost $47,000. he's trying to build on the momentum of the model three, the model 3. and masters builders. david: the nationals people's congress has ended in beijing with the final speech by the prime minister in which he reiterated the government's commitment to fiscal stimulus to address issues of unemployment, that includes reducing v.a.t. taxes by april 1 and sgs contributions by may 1. we welcome on the telephone from beijing tom mckenzie. thanks so much for being with
us, tom. one of the things they are going the fiscal route. fiscal stimulus rather than monetary. will it be enough and soon enough? tomorrow: that's the key question. reaching for the tall kit as the economy starts to sprout. whether that's production or retail sales or the unemployment number. what he said was that they weren't going to inject mass liquidity into the system. he did put the emphasis on the fiscal measures. and we're seeing unprecedented tax cuts. that's the plan. valued at about $300 billion u.s. dollars, they are going to start it kick in april 1 with a 3% cut to v.a.t. that's beneficial to the manufacturesers who have been squeezed not just by demand but the trade tariffs as well. tax cuts are part of it.
in terms of the monetary policy, we may look at additional reserve cuts, we have seen five of those since early 2018. the central bank still has a role. it is the emphasis on the fiscal measures. part would be paid for by taking profits from state-owned enterprises and banks. david: appreciate you being with us. that's tom from beijing. with us is julian, btig chief strategy equity. person after person we talked to if you want to worry about global growth, take a look at china. how important is it? >> very important, no question. and particularly if you look at the impact to confidence, the equity markets, and then of course the soft cuts we're in this quart. all of that is seen through the effects china felt from the trade war which started about a year ago. no question. alix: j.p. morgan had a note out that basically said this was part and parcel of embracing
more risk. looking fundamentals, we believe markets are likely to look to the soft patch and increasingly price in the second half year growth rebound. resolution trade deal. do you agree? julian: we do. what's very interesting is of course there is always this element of wondering whether chinese economic data is what it's purported to be. but if you look at it, what's gone on in china the last year is really much sort of a western-style recession progression. stock market tops a year ago. you start to see stimulus measures announce late third quarter, fourth quarter. presumably you are at an economic -- the data has been very poor the last several weeks. and all of a sudden the stock market begins to rally. discounting what's going to be 12 months from now. 2% 10 year a 2.6
produce as rally in growth stocks? julian: that is the conundrum. what we would say there we have to look at the other place of risk which is europe. and there is no question about the fact that that in our mind in isolation if you are only talking about the u.s. and the potential to resolve problems with china which we do think will happen in the form of 2019, the fact is that european yield are eight basis points right now on the german 10 - year, that's what's holding us down. david: can you get to 3,000 s&p with 10-year below 2.5? one way to put it. bond market is saying one thing. the stock market is saying another thing. julian: in our view the path to normalization, the path to -- a glide path of economic growth in
the fed numbers 2.3, economic consensus is 2.5 that's not where the 10-year yield is 2.5. in our view, 3,000 is achieved with a 10-year yield moving back towards 3%. alix: when you look at the individual sectors, how much exposure do you want to europe? how much exposure do you want to china? julian: the thing is now is that -- particularly if you think about it within the context of the selloff in the fourth quarter, is that basically this whole idea of exposure to europe and china comes through exposure to u.s. cyclicals energy industries and financials. we're comfortable looking at those areas. david: since china is so important, let me give you a choice. fiscal stimulus you are seeing right now, settling the u.s. china trade deal.
which will be more slating for the chinese economy? yulian: -- julian: it's probably equal but i'd say the fiscal stimulus if hi to pick. what are you in is this period of trying to transition. they have been talking about it for years. but obviously sort of the crisis that you have had in china over the last year has caused this to accelerate towards the consumer in china. those measures, tax cuts, all of that really very domestically designed. and part of the manifestation of that is the fact that it hasn't been just china supporting its currency but the currency is strong and that's the backstop for the chinese consumer because the inflation isn't getting imported back into china. alix: great point. coming up, supply losses and demand growth poised to send it above $30. what about global crude market
alix: the iea shifting its tone saying the crude market has enough spare compass to the make up for any shock posed by the crisis in venezuela. then this morning goldman sachs says they say a near term upside for the 70's and demand growth in their constructive expectations for 2019. julian emanuel of btig who likes energy. tell me how and why. what price? julian: think of it this way. when we put our year ahead outlook out in late -- early december, we used what the script was pricing for year-end, $55 in wti. we felt very nervous about being too bullish. we know that everyone's number was lower than that. now here we're pushing $60 again.
and to us it's sort of this perfect storm of things already priced into the market. we know the long-term story about the switch to electrical vehicles. that's a long-term story. we know that norway is die vesting its holdings in energy shares to a certain extent. that was talked about two years ago. that's really sort of a sell the rumor. and the last thing we know is the combination of all of those has caused energy to be 5.5% of the weight of the s&p 500 versus an historical average closer to 10%. it's a recipe for an upside in an environment where if we're right about the china stimulus and right there is maybe even the tiniest bit of clarity on brexit sort of supporting europe, that energy shares really look very compelling to us. alix: on a value basis, but it
feels like the underperformance of energy shares to the oil price has been sticky. there is nothing i see in my reporting to think that might change soon. do you think there is upside un-- even if it isn't -- julian: it's the same psychology that has caused a vast majority of investors that we speak to to essentially been fighting this rally in the broad stock market since december. you take all of these things and combine them, the long-term outlook, the fact that oil prices have already overshot most people's expectations. we do see that there is going to be a catch-up, particularly as the data in the u.s. start to stainlize -- stabilize, confirming our view that the first quarter is, indeed, a soft patch. and the number for the full year g.d.p. will be north of that. alix: a lot of c.e.o.'s i talked to are looking at more
volatility in the oil price but we're not seeing that in the index. you got the move index, and oil volatility. all low. what do you do with volatility? julian: we think in general in an environment where if you look back to the beginning of 2018 you had a number of volatility spikes. are you in a world of geopolitical uncertainty. you have elections in 2020. asset price volatility in general is too cheap. we think volatility moves higher. david: what about the long-term disruption in terms of renewables? julian: it's an issue. but those are the kind of things they are phase-ins. david: over what period of time? years? five years? 10 years? julian: i would say it's measured 10 years, decade-type of thing. alix: when you say talking about volatility, does that mean you want to be buying vol here? selling it?
julian: for us if you think about it in terms of the equity market, we have come a very, very long way. no question about it. obviously with the 3,000 price target for year-end we think we're going further. but options are so cheap that if you are adding exposure right now, you really want to do it by using options. and, look, face it, a lot of people have good profits year to date so far. much better than they would have thought. downside protection. david: julian emanuel will be staying with us. the reset year for general electric, g.e.'s new c.e.o. sets out his vision for the company's path to recovery. my interview with him is next. this is bloomberg. ?
volume will be interesting as we head into the close. we have a lot of options expiring. watch over the next few hours. the european stocks on the upside. dax as well. one out of the outperformers in europe. always watching that cable rate taking a break here just up by about .1%. third time a charm for may getting her meaningful vote number three next week or delay that could last more than a year? is that a question on the table? the 530 spread hit the highest level yesterday. it's real, it's happening. crude flat on the day. if it did rise you would look at the fifth straight day which is its best winning streak in about a month. david: good for crude. it's time now to find out what's going on outside the business world. "first word" news." >> the prime minister of new zealand calls it one of the darkest days in the country's history. police in chris church say shootings at two mosques have at
least 49 people dead and scores wounded. four people have been arrested. one a man in his late 20's has been charged with murder. the alleged shooter live streamed some of the attack on social media. the motivation appears to be racial. north korea's kim jeong unis aving second -- kim jeong une. the foreign minister says the country has no intention to make concessions to the u.s. british prime minister theresa may has won some time on a final push for her rejected deal. lawmakers voted to endorse her motion which gives her time to try to persuade doubters in other own party to back the proposal. it's leanty delay to brexit that lawmakers are desperate to avoid. global news 24 hours a day. powered by more than 2700 journalists in more than 120 countries. david: thanks very much. larry culp has been c.e.o. of
general electric for just over five months. a ture by lant five months it has been. he's confident he has his arms around g.e.'s problems and i sat down with him to talk about his strategy direction for the company. >> if you think about the core of g.e. it is aviation, power, and renewables. that rotating machinery core which has long been the heart of general electric. our health care business, the health care system's business, gives us a lot of optionality in terms of what we do longer term. exceptional business in own right. david: as we think about this sector generally we think about growth. global growth, economic. how sensitive is your plan, your strategy to global growth? we're well into the cycle now. we're looking for g.e. to see recovery in 2020, 2020 it 1. we'll have a recession sooner or laterer.
does your strategy survive? larry: in the short-term we're making progress with respect to strengthening the balance sheet and setting the businesses up to play more offense. aviation tends to be a business, particularly given the way that we're structured with fremmed backlog, in terms of production, certainly very strong service look at business to be a bit immune to some of the short cycle dynamics that could play out. health care, again, one of the more resilient spaces in the economy. renewables on the back of the energy transition, quite strong. and power fortunately is really more of a self-help story. don't want to leave you with the impression we think we're immune from what's happening in the cycle, but we think in terms of the next few years we can power through that. david: if you end up heavily in aviation and power, you suggest that's a long cycle business. both are. do you need to diversify your portfolio so you have short cycle as well? larry: i don't think we need to do that. there may be options over time to put mother leg on the -- another leg on the stool.
but we're a long way from having the right to think about that. first order of business here is to fix the balance sheet. strengthen the businesses, particular-l power. then we get into a mode which i think as the second phase where we're just operating on a more normal basis and showing folks we can do what general electric has ton don for a very long time. then longer term, we'll play a little more in organic offense. that's out there. david: more of my interview with g.e.'s c.e.o. in the next hour. alix: squiggly lines. look at the trials, over the year, it's been tech and industrials leading wait with upside of. do you want to buy? julian: we have been neutral on the industrials. obviously there is clearly a lot ore identified idiosyncratic risk. but broadly speaking the industrials still to us seem to
be they are not overvalued. they are not undervalued anymore. however in general as this inflationary story continue toes take hold -- to take hold, as you think about stock market siblings, they arelike to be in line, perhaps even outperform a lit from here. david: what about china and industrials? does it really track what happens to china whether it goes up or doesn't? julian: no question about it. china arguably is not -- its importance has diminished slightly out of necessity based on events. it's still the critical player in the global equation. alix: what's the growth cyclical sector of energy that you want to be playing in late cycle as we're waiting for china to reflorida state after the run? julian: we like financials. we're absolutely sticking to it. if you look at it, everything that we see whether it's coming from china, because we do
believe renation will work in the second half of the year, or particularly coming from washington indicates that people that are bearish on inflation will be proven wrong. the fed's holding short rates down at zero. actually has the effect, if you look at it, the minute they went to sort of on hold in early january, inflation expectations began rising shortstoply in line with the stock market. as well we've got both sides of the political aisle tripping over themselves to spend more money in front of an election year. david: i'm not the only -- inflation is coming, rates will go up. we're going to be at 3 or above not 2.5. if that's true, financials look attractive. if not, doesn't look good for financials? julian: you have a valuation edge. financials are still trading towards the lower end of the their relative valuations as
well as on an absolute basis. at this point the hit to net interest margins from the flat yield curve is very baked in. given the fact that we don't think there is a recession this year or early next year, we don't see the curve flattening from here. if you think about the risk reward, there is upside to that. alix: technology? julian: technology is neutral. but happily it really suffered in terms of the multiple compression in the fourth quarter. the overhang to us is the regulatory issue. it's not going away. point of fact is the public in our view is still probably a bill overinvested in technology in general. but if you think about a market moving higher, there is no way technology isn't going to participate. david: julian emanuel, great to have you with us today.
thank you for being here. coming up, open for business. new york's hudson yards. >> wow. i actually feel pretty good. aim not eager to go further. david: i'll take you to the tallest outdoor observation deck in the western hemisphere which scared the living day lights out of me. more from my tour of the $25 billion massive development project next. this is "bloomberg."
team leader. >> this is bloomberg daybreak. b.m.w. reported a profit warning from last year that beat a lower target. the german company battled u.s.-china tensions and pressures on prices in europe. it fell from 9.2% to 7.2%. facebook has lost its most important product executive. chief product officer cliff cox is the highest ranking leader to leave since the social network became embroiled in crisis last year. he made the move after they decided to focus more on privacy. meanwhile, the executive who runs the company's web service, chris daniels, is also leaving. and more fallout from volkswagen's cheating. the securities and exchange commission has sued the automaker for misleading
bondholders. regulators say v.w. sold billions of dollars of bonds in the u.s. while concealing the scheme. they call it legally and factually flawed. david: thank you. time now for business week beat. this is where we take a look at one story featured in this week's issue of bloomberg business week. new york's hudson yards. today is the day for the grand opening on the west side of manhattan. vimbiana is there. -- viviana is there. viviana: the day has arrived here in new york city. what can you see fee me is this incredible building with opening decks. incredible architecture, too. in just over two hours is when the kickoff begins. we're going to have some notable new yorkers in attendance. the mayor as well as senior senator from new york, chuck schumer. this culminates 12 years of planning, $16 billion of
construction. and today what are we going to see that opens? the public square and gardens, as well as the shops and restaurants. what is going to anchor the shops and restaurants retail space? migrating from the big d to the big apple is neiman-marcus. there will also be in the hudson yard complex commercial, as well as residential space. just so you know this is $25 billion project. at the center of this is the related group. the restaurants as well that will open today. it's just going to be a lot -- very exciting. you may know as well there is a theater district just a few blocks away. iconic play of course called "the west side story" some people saying a new "west side story" is going to be written today. back to you. david: thank you very much. live from hudson yards. one of the features of hudson yards is it's one million square
feet of retail and restaurants with the flagship neiman-marcus store at the top of the complex. our colleague spoke with the c.e.o. about neiman's first foray into manhattan. >> we have obsess about our customers. we want to bring her what's the best. when you obsess about your customers and you already do $100 million of digital sales in new york, you realize that she deserves, he deserves to have a physical presence. that's why we're coming here is to provide the full experience of online and physical journey. >> new york has a number of high profile, high end, well-known brick and mortar department stores. how is this neiman-marcus going to draw away the shoppers from the likes of sax and bloomingdale's? >> -- sachs. >> the global customer here in
new york, we feel this story is unique because it brings a set of unique brands. a set of unique services that make luxury shopping fund and easy. most importantly, it brings experiences. >> you mentioned you own -- do you have any concerns are you going to cannibalize sales from that store? >> we believe the customer shops for different reasons. so we have different shade of both very much it's going to meet different needs of the same customer or different customers. i think competition is good. even within a group, it forces us to be up a notch and do what's hess for her. >> who will shop here? who do you expect will shop at this neiman-marcus store? >> we do half a billion dollar revenues in the greater new york area from online in the stores we have. we believe that a lot of our customers will come here. we believe that the customers we have in north america will come here. we also very much looking to
recruit a new local customer. and a choice, the highline brings $10 million a visitors a year. that in itself is amazing customers we want to introduce to neiman-marcus can. >> you think they'll spend at a high end store. >> we have entry price points. we have made this an experience that i think is appealing to an engaging for everyone. >> you must have targets for traffic, sales, tell us about that. >> the industry always puts targets on traffic and store sales. and the store manager has a target and she's working hard to exceed that target. >> can you tell us what that is? >> no. that's not how i measure success. i measure the success to say if i look at my customer base baste hi in new york, am i growing? am i having the customer am i acquiring do they come back? if we love them and they love us
back, then we have a customer base that will grow. that's the true measure of success. >> you grow that customer base. >> if they come back. for me the right measure is we delighted you enough you want to come back. that's where i know i have been successful. >> how much time are you giving that customer to come back? >> i think we would like her to come back as soon as she would like to because we're not forcing it on her. we believe it probably takes three years to have reached the critical scale where people know you come back and you have the runway you would like to be. david: that was geoffrey, neiman-marcus c.e.o. the shopping is one of the draws . i got a tour of some of other highlights and high points from jeff, he's c.e.o. of related. developer and owner. >> here we're in the plaza.
what you are looking at here. what we decided to do when we created this plaza, we wanted to do something that was so incredible that every single person that comes to new york would visit us. this will become the most instagrammable moment in new york sitty. there will be wedding engagements up there and proposals. it will be an amazing addition to new york city. david: the set behind you. >> when we were originally designated the right to develop hudson yards, it was supposed to have a durel component. undefined. david: that building opens and closes. it moves. that's an eight million pound building. two motors move this thing. it changes configuration depending if it's opened or closed. it can be a 3,000 person concert all. it could be collapsed back into the building and be a smaller venue. david: how long have you been working on it? >> this is year 11. one thing you learn about construction you have to set a date. we set the date. we're going to be there.
open up on budget. avid: wow. where are we? >> we're here on the 100th floor of 30 hudson yards. this will be our observation deck. we recently announced the name called the edge. this is the showstopper. you have people coming out here. you can see the views from all around. david: wow. i feel pretty good. i'm not eager to go further. but right here i'm ok. >> you are looking down 1,200 feet. avid: this is amazing. >> we're now in the retail. our shops and restaurants at hudson yards. we have seven levels of retail here. first five. we have about 100 different shots. 20 different restaurants.
coffee houses. david: you are cure rating. >> we're here on the second floor. what we do on this floor was try to bring in new, different brands that don't exist in physical locations. we took -- met with a lot of the digitally made-up brands that haven't yet opened physical stores and we helped them create a physical presence and imagine what that would be. about a million square feet. on top of everything, we have neiman-marcus. this will be one of the largest department storesers first in new york, and one of the largest. it's not like a mall. david: that was jeff, related company's c.e.o. and responsible for all that. michael bloomberg, the founder and majority owner of bloomberg l.p. played a role in this project when he was mayor of new york. last night, jeff invited 18,000 of his closest friends to a party. he said he got 18,000 rsvp's, we didn't think all would come. we were there and i think they
all came. this is on the balcony. you can can see there is bill ruden. we had on the program several times. alix: that was the v.i.p. section. david: there must have been 1,000 in that restaurant. milos, fabulous fish restaurant. neiman-marcus, we saw the vessel once again. it was loud music playing throughout the entire retail space. this is the very peak, this is above the observation tower. alix: the one you freaked out about. david: that's up to 1,350 feet. what he's explaining is there are going to be stairs on the outside of that. they will put you in a harness. you can walk up outside stairs with no railings to a perch. you can can lean out over and it will hold you up. alix: i'm guessing you are going to sign your life away. david: and pay a fair amount of money. they are going to charge for this.
they are literally going to have to train you how to do it and put you on a harness. 1,350 feet up. alix: wow. david: you want to book that. alix: i don't. no way. maybe my younger years. david: get the crew down there. alix: ok. what was your other take away? 20 restaurants is enormous. david: steve ross is there as well. they had a debate where they had enough restaurants to eat in a different one every day of the month. they are close to it. it's a beautiful space. the question is will people go? you have to go there. that's what they are creating. he doesn't think it's just retail. alix: like an experience. david: exactly right. alix: great stuff. good package. david: coming up, tpg is said to let investors pull commitments after one of its executives is snagged in the college admissions scandal. that's next. ♪
david: i think a lot of us are watching the college admissions scandal which keeps going. every day there is a new revelation. one of the things that happened yesterday was the one rising t.p.g. the private equity firm stepped down. the firm said he they fired him. he said he resigned before they fired him. he wrote a letter saying he's heartbroken over the whole thing. he has to pay attention to his family. he's accused in the indictment of having discussed $250,000 payment to u.s.c. for his son. it goes on and on and on. we see so much of this. alix: t.p.g. is letting investors pulling money from the fund, too. that surprised me more than the resignation-firing. david: it's more than irony the man in charge of the social fund is caught up. says something about our college admissions process. david: my son is a junior. there is a "wall street journal" report that apparently this whole thing started, this investigation started with a man
named mori towbin, in the financial services industry in los angeles, they were investigating, the s.e.c. was investigating for possible criminal wrongdoing at a pump and dump. i have something else you should look at. and he pointed to this. alix: truly fascinating. also who is implicated is golfer phil mickelson. he tweeted about it. david: he said, we use that consultant out there. understand, had he a legitimate side, too. we didn't pay any money. alix: ok. coming up, sarah will join us. the premere really stands behind tax cuts. what it means for the global inflation trade. this is bloomberg. want more from your entertainment experience?
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>> if this is going to be a multiyear turnaround, the slope of the line is certainly not straight. it is squiggly but we think it is northbound. alix: larry coker thinks a -- the chinesep leader stands firm behind the efforts to support the economy. third time's a charm. theresa may is still fighting for her twice rejected brexit deal. u.k. could be forced to stay in the e.u. for more than a year. david: welcome to bloomberg "daybreak." it is quadruple witching day -- and you could say it is quintuple because it is the ides of march. brutae. tu he is surprised i knew that.
, whichket is quadrupling means we have a lot of options expiring. we have volatility but you cannot take it seriously because it is a one-time event. the dollar rally taking a little bit of a break, inflation in line with estimates in the eurozone. a little bit of buying on the backend with up curve steepening on the five and 30 and crude steepening. from china happen fast enough to save demand? david: first, we will find out what is going on outside the business world. kailey: the prime minister of new zealand calls it one of the darkest days in their history. police in christchurch say two shootings have left 49 people dead and scores wounded. a man in his late 20's was
arrested and streamed some of the crime on facebook. north korea's kim jong-un is having second talks about the disarmament talks and will make announcements over whether the talks will continue. they have no intention to make concessions to the u.s. theresa may has won some time for her rejected brexit deal. she had a rare good day in parliament when lawmakers endorsed her motion, giving her more time to persuade doubters about her plan. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. alix: that is a wrap. china's 2019 national people's congress comes to a close and they and desk approved a new tax
law to support growth. >> and light of the new circumstances, we are going to take a long-term view and do our best to keep china's economy stable and have sound momentum of our economic development. confidence china will remain a stability. what is your reaction? gothat enough to go, let's take on more risk, or does it have to filter through? >> china is in deceleration mode and i do not think this changes the forecast. the growth will come to 6.6%. i do not think we should be , and the by stimulus expectation that we maintain a very trade accord with the u.s.
means china will have a stable year. that is good for commodity demand, emerging market risk, and global growth. a chart upll put showing the extent to which it has declined, the growth rate in china. this is according to retail ,ales, fixed asset investment although investment risk has picked up. what do we need out of china? is it changing the curve? what do we need? kathryn: there has been a lot of concern china will slow because it has been growing at a faster rate than everyone else. the government wants to support growth. understandcult to when a government says, we want to create this many million jobs . how do you do that when you are asking the companies to hire more people?
they are looking at using their reserve ratios and stem us test stimulus policies -- stimulus policies, and it is positive. how much are trade concerns a factor in terms of their own business investment for themselves as opposed to foreign investment coming in? tradeort of resolution on sounds like it is going to be pushed out. that would go a long way to make people feel better, but you want governments to feel like they are being supported. -- supportive. alix: what is priced in? what is not? kathryn: a lot of optimism is priced in. chinese equities are our top recommendation. we expected a trade accord when it was not consensus and now it is increasingly so.
equities are up 30% since december. stimuli, i will take a tackle to the question that david answered, what do they need? they need an opening of the economy. they are talking about putting foreign investment on the same plane as domestic investment, but domestic investment is not the same as state-owned enterprises. because this is a communist regime, we cannot forget that. as unemployment takes up, the social contact the between the chinese authorities and people deteriorates, so stimulus is required because if people feel they risk their job, they need to have assurance it could come in the future if their rights continue to be repressed. david: we talk about the stimulus. ,hat about the investment law
the foreign investment law they adopted? they say they will treat foreign investors even stephen for most everything with domestic chinese investors. will that be a significant opening? foreign investment law which supposedly equates foreign investment with domestic investment, but domestic investment is not on the same plane as government invest in. private enterprise is not on the same plane and is not equivalent to state-owned enterprises. the government will be taking to balance the fiscal stimuli and not blowout the deficit. how much will it have a practical impact on the economy? i do not really see it. the biggest question with china is always, they talk a big game. let's see the execution and implementation. david: china helps drive global
growth. what should we be looking at to figure out which direction it is heading? willpeople think the drop go back or it is going sideways at best. manufacturing pmi's compare china and the united states. services step in and replace manufacturing? ofah: in china, a good deal .he economy is urbanization that is not so much of the service issue yet. i do not think you have enough of a move for services to pick up because so much is manufacturing and so much as for export. the pmi's are still very important and i do not think you are at a point where the services can grow fast enough to offset a decline on the managing side. alix: which in theory will not
be good for risk on assets. ince risky assets price forward-looking fundamentals, we believe the market will look through the soft batch and price the second half with growth rebound. trade, u.s. resolution, what is your take? kathryn: i like risk. if you bought the story that december was pricing in the fear factor rather than reality, then you are up in double digits in u.s. sectors and china equities and emerging markets. the question i am getting a lot is what do i do to protect my profits? do i sell them or realize my earnings? do i protect my portfolio? it is not time to liquidate, that you need to protect yourself by buying risk and assets with a low correlation to market risk.
regulators say vw sold billions of dollars of cars in the u.s. while hiding this scheme. elon musk unveiled their newest , a cheapere model y suv that will be available in 2021, the base rice is $39,000 -- price is $39,000. he is trying to build on the momentum of the model three. oracle is falling after coming out with a disappointing revenue and profit forecast, another setback in their push to become a big player in cloud computing. sales in the current period will be little changed or will fall as much as 2% from a year ago. david: general electric shares climbed yesterday as the new ceo larry culp promised a turnaround in free cash flow after a disappointing 2019, that he
called a reset year. the stock was down the most since the 1970's, but this year the stock is up 41% so far. about their cash flow and ailing powered business. -- power business. larry: as we put the business together, we understand where each of them are. health care and aviation are performing well. as we look at the backlog and some of the operating improvements we are making, we think we get through this year and 2021.better 2020 david: when you realized you would lose money, without a surprise? what changed? larry: it was not so much a surprise as a realization of what our reality would be this year. when you look at the reason we will be negative, there are a
host of issues. two $.5make about billion of investments this year which will set us up longer-term. there are inheritance taxes. that, coupled with operating improvements, set us up. it is not a number we are particularly pleased to put out it sets aket, but tone for transparency and reality as we prepare ge for the long haul. david: it sounds like power was a big factor. how are you losing cash on power? what is the mismatch? larry: one, in the wake of the alston acquisition, we inherited liabilities and project obligations with customers where we will not make money. the timing of those will see us put cash out in 2019. in addition, we are heavily
the business where we see the need for new gas turbines, and we need to reset our cost structure to make sure we are profitable. the team has a lot of work. the numbers in 2019 will not be pretty, but the team understands and is ready for the challenge. for a are you prepared debt review? some of the ratings were based on things that do not seem to be right anymore. larry: it seems like investors understand the deleveraging plan we have in place for the industrial balance sheet and ge capital is well underway. we have announced the sale of our biopharma business. another we have earmarked for sale is worth $12 billion. lab tech is another option. we have about $38 billion of
resources to bring down leverage on the industrial balance sheet, similar opportunities in capital as we make ge capital similar. we think we are on a path to see our deleveraging goals through. david: you do not think there will be a rating review? larry: the rating agencies have their ions you and we are trying on ge and we are trying to communicate transparency. what we have done on both sides of the house puts us on a path to fortify our financials. david: that was part of my interview with larry culp. alix: that to me felt like a yes. you cannot prevent it. to let thely, he has rating agencies do whatever they do and he has to do the job he has to do for the company. the rating agencies will decide what they want. alix: sarah hunt is still with
us. do you buy ge? can wrap ourst we head around the problems and see what the negative cash flow is. some of the concerns prior to this was, you have got a new ceo and someone will come out and say, we need to wrap our hands around the issues. i think you are at that place and directionally, you are in a better place than six months ago. probably, the worst news is out ratingt you have agencies and what will happen in the first quarter's. you have to be fairly long-term and in the short-term you will struggle. david: he is clarifying which sector it is in. it will be an industrials company. what about ge within that? do you invest in industrials and is that a goodbye, ge within the , ge withinod buy
industrials? howh: it is interesting these companies build up all these assets and now we need to turn around and did best these assets -- divest these accepts. that's assets. -- assets. the power and markets will be challenging for a while. a long timeg back that power has been challenging globally. they are deep, cyclical businesses. their aerospace business is very good. david: is the power business just a good business? sarah: there is a lot of aftermarket in the power an investorich as you love businesses in the aftermarket is they tend to be more lucrative.
once you have got a bunch of projects losing money, you chase your tail a little bit. you want to see those get taking care of, and you have great margins generally in aftermarket in big industrial businesses. alix: but none in renewables and renewable energy. that will give you the margins. david: he is betting big on that for the future. alix: ditching facebook, the company just lost its most important product executive. more on the bottom line, this is bloomberg. ♪
were not honest with the bond markets when they borrowed a lot of money because according to the sec, they knew there was problems with their diesel and they got the bonds cheaper than they should have. sarah: i am not sure what you do with that. this is one of the things we were talking earlier. to your point, who is harmed by that? david: if they pay the bond back, who is harmed? maybe the larger question is about what does this do to the auto industry? sarah: the problem for the auto industry is you had a bunch of fantastic years after the crisis because you are coming back, and glowing -- globally it is rolling over at the same time. financing has been so cheap you could argue you pulled forward a lot of buying that you might have not had, and people also termed out loans to five years, six years, seven years. a lot of things are aligning
that are not positive, and this does not make it easier. david: tesla is out with a move -- a new model, the model y, a crossover. sarah: they are interesting and did a great job of coming to market with a fantastic looking product. other auto companies are catching up. the have been issues about polity and some of the newer models. are the other people catching up where, i am introducing x and it will be fantastic, where you have bmw and others coming around with really interesting automobiles? alix: the air pocket in demand is coming earlier than expected. let's look at facebook. waschief product officer front and center with the news feed and he resigned.
he will do private messaging and small group chats as the facebook future instead. there is a lot hanging over facebook. do you like facebook? sarah: they are tricky. they came out with something new and different. there was huge acceptance versus other platforms who could not get that kind of acceptance. if your business model is selling people's information and it can pull information off of apps, what becomes your business model? this is part of the growing pains they are going through, we cannot rely on what we work lying on for revenue. david: larry culp said it is to bank soon to tell. what do you think about boeing? sarah: they had a problem and they fixed it quickly. of, howl be a question
quickly can you fix the problem and what will it cost you to have planes out of service that you need to remunerate airlines for. at softwareto look or different things, that is still an unknown part of the equation. david: and where do you put all of these planes? they are running out of space. alix: didn't that happen with the dreamliner? sarah hunt, always great. how the ultra wealthy grow their money, i will talk about that with ida liu. this is bloomberg. ♪
dow jones futures up 129. european stocks higher. the dax up almost 1%. the highest level since october. in other asset classes am watching what is happening with the cable rate. article witheat theresa may's boat came to monty python and the holy grail when the night gets his arms and legs chopped off and still wants to fight. probably one of the best analogies i've heard. a little bit flatter today. there is a curve somewhere that may be steepening. crude up .5%. goldman sachs says you could see .n overshoot on stronger demand supply continuing to come up in venezuela. david: let's get an update on what is happening outside the business world. callingnew zealand is
it a well-planned terror attack. at least 49 people were killed and dozens wounded on two mosques in the city of christchurch. a man in his 20's has been charged with murder. other armed people up and arrested. it is unclear whether park was. one shooter live streamed the attack and posted a manifesto suggesting it was a racially motivated act of terror. israeli aircraft bombed dozens of sites in the gaza strip. the attacks were the first since the 2014 gaza strip war. israeli defense forces say they intercepted three of the four rockets fired from gaza. president trump is prepared to issue his first veto. hissenate voted to block national emergency to pay for a wall on the mexican border. vote is an embarrassing show of republican disunity with the president. global news 24 hours a day, on air and @tictoc on twitter,
powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. david: thank you so much. parliament keeps trying to kill it at theresa may managed to keep her brexit deal alive, winning the backing of the u.k. politicians to seek a delayed brexit as she tried to persuade members of her party to back her proposal. joining us is bloomberg's anna edwards on the green outside of westminster. talk has been a lot of about theresa may going back for a third vote and a fourth vote. our people underestimating her? is she making progress with brussels and her own party? anna: she is going to bring it back for meaningful vote number three next week, possibly tuesday evening london time. i heard alix talking about the holy grail. i think it is the black knight
in the holy grail who says it is just a flesh wound. that is an interesting comparison. it has been through the ringer and yet it still goes on. -- here votes last time had more votes last time that she had in the first boat. that could be seen as progress. will she be able to convince the northern irish party chair relies on and a subset within the conservative party -- will should be able to rely on those to back her this time around? it seems incredibly tough ask but it is not impossible. david: does she have a powerful ally in the election for the european parliament. forget the march 29 deadline. it seems everyone can agree they do not want britain voting on the parliamentary elections for europe. what she is relying on is there a number of factors that will air the conservative party into backing her deal.
one of those is the looming european parliamentary elections. like thosecomments yesterday from the european council president suggesting a delay could be a long delay. she thinks that might scare part of her party. she has also talked about it for deal fails, she will turn over a day in parliament to lawmakers to give their say of what happens next on brexit. that could indicate something softer on brexit which would steer members of her own party into backing her. nths brinksmanship to the degree. interesting to watch what does seem like farce. we had the brexit secretary standing up in parliament telling everybody they should back the government's motion and voting against it himself. underlying the comparisons with monty python and alice in wonderland. david: i do not know what we
would do without you to explain all this. thank you, anna, coming to us from london. alix: many fed officials and ceos site brexit as a big risk for the market. joining us is someone with particular inside, she advises the ultra wealthy on their portfolios. ida liu. good to see you. happy friday. ida: thanks for having me. alix: when he talked to their client -- when you talk to your client, what is their question about brexit? ida: clients are concerned about brexit and also u.s.-china trade tensions. every -- that is front and center in every conversation. .ou have to stay invested think about risk management in those portfolios. the markets have rallied 20% since the december lows. this year's growth expectations are much lower than last year. how are we going to continue to help clients manage risk in portfolios?
one of the ways is through diversification. not just asset class diversification. geographic diversification. we have seen time and time again that investors tend to have a home bias in their equity positions in their portfolios. way to protect his to at international equities, emerging market equities, build a global portfolio. time and time again global equities outperform single country equities. , wherefor u.s. investor is the biggest blind spot? we talk a lot about china. is it india, is it indonesia? where people just not paying attention to? ida: it is interesting you say people think about china. china represents such a small portion of investor portfolios today. there's a large home bias in the u.s. investor portfolio. intonon-selectively international markets, including china is healthy and important.
alix: what does that mean for protectionism in general? you mentioned india. the prime minister supporting local businesses and making it harder for walmart and amazon to operate their. -- to operate there. how do you make the distinction that you want to diversify? ida: as we look at market downturns in the past decade, global portfolios have always outperformed single country. as diversified as possible in the asset classes and the geographical concentration. in the emerging market, we are specific about opportunities we like. in china, where there is a lot of fiscal stimulus we have seen the loan shoot up to record levels in january. still very high sitting rates -- 40% saving rates in china. an emerging middle class that will be the consumption story in china. sticking with china for one moment. so much innovation happening.
it is important to have local expertise. people know how to invest, know the companies, know the management team extraordinarily well. david: we try to go over this myopia. -- do you take into account how much liquidity is there? the rule of law. how do you take the right discount? it may be a big market, but there may be other things that hold you back for good reason. why we have exactly our local team on the ground that no the company's extraordinarily well. we have investment teams around the world and each of the geographies to help make those assessments. they know the management team, they know the companies well. they understand the environment and the political situation. they help navigate custom client portfolios for clients. alix: the other thing we've been talking about was the rise of
spending for women. we will outlive men and make a lot more money. we will have to invest it. that will have a huge investor pool. are you noticing that trend start to pick up and what does that tell you about where the money will go? -- noense, david could offense, david. [laughter] ida: global growth has low -- has grown in the last year. women currently control 40% of global wealth and are expected overontrol 30 trillion more t the next decade. in addition to everything we do, the core for the female clients, asset allocation, we have also noticed that female clients are focused on socially responsible investing. impact investing. making a difference.
i had a discussion with one of our female clients earlier this week and she was saying i want to invest in diverse companies. the ability to build a portfolio for her that focuses on that. other conversations where clients are focused on environmentally friendly green investments. this is becoming so much more of a mindset. it is not an asset class, it is a feel-good way to invest. david: how do you balance making money with those other values, that is to say we want to do both at the same time? you have to give up some of the yields in order to have diversity and environmentally responsible companies? ida: in fact you can make a better return. you can argue diversity equates to outperformance as do many of the other factors. alix: when you talk to your clients, what is the biggest risk they see? what are the most nervous about in the medium-term? ida: everyone in the world is
wondering what is going to happen with the u.s.-china trade discussion next month. that is top of mind. if we reach a resolution, we could see a nice relief rally in the market. a lot of the increases so far this year, 12% to date, have in thatbeen due to the fact there is an increased optimism around those trade discussions come into a good resolution. i think it is important to note we have had a 10 year bull market. growth is slowing. how can you think about taking some of the risks off the table? insurance?ng, buying those are the discussions we are having with our clients. alix: ida liu, so great to see you. ida: thank you both so much. alix: coming up, shell power push. we will hear from a shell executive on the spending plan for the company. that is coming up. this is bloomberg.
leinz in theailey hewlett-packard enterprise agreement. coming up, oppenheimer funds cio. alix: time for follow the lead. a deep dive into stories making headlines and moving markets with key insights from industry veterans. we look to look at the push for renewables. in houston, shell so they would become the biggest power company within 15 years.
i spoke to shells integrated energy and gas director in houston about the company spending plan for its new energy business. maarten: we are quite focused on north america, europe, and australia. eventually we plan to be funding customers all over the world. it is going to be the more developed countries in the world. alix: what kinds of stuff? shell has not had an amazing past with solar. it is hard to meld your current business with new energy. how do you choose? solar? wind? we find -- alix: what makes the most sense for shell? maarten: we should be able to deal with any customer interest in power, whether it is solar, wind, offshore wind, battery storage.
these are products we understand -- that it starts coming back to a big data center. i want clean power. what is your cheapest solution. and we work it out for them how to arrange the carbon credits. it starts with the wants and needs and we need to make sure we can develop the total package. solar panels, battery in their basement and wants us to optimize all of their energy usage, that is the kind of thing we end up doing. it is also hardware. there is also a software component. alix: being a power company and noticing the same kind of returns as an oil and gas company, what is the shareholder pushback? saying: it starts with we are not interested in the power business because we like what we saw the next 20 -- in
the last 20 years. we are interested because we like what we see in the next 20 years. people charging cars, heating their homes and an intermittent supply with solar and wind. we believed by optimizing and trading around this we can make better returns than the industry is done so far. alix: what kind of returns? maarten: 8% to 12% is the range we've been talking about. some is at the lower end and some is that the higher end at i will be making sure it is double digits. alix: what is your time frame? maarten: we want to prove the hypothesis works. at the moment we are spending between $1 billion and $2 billion a year. in order tosmall, build a business to prove our hypothesis. that 8%eel comfortable to 12% range is realistic, we will still further. alix: how quickly can you do that?
$1 billion to $2 billion sounds like a big number. in terms of the shell capex portfolio, that is not a lot. maarten: we believe we can be the largest electricity power company in the world by the early 20 30's. part of the energy system is going to be the thing that grows the fastest. electrification is the biggest trend in energy because it is by far the easiest way to do carbon eyes energy usage. power market will grow faster than the energy market and it is easier to grow in growing markets. alix: are there certain areas you think the return will be best? maarten: our sense is the returns will be highest at the customer end because customers will want sophistication with solar panels and integration and cars across the country. we think the returns will be be better. we do not think the customers
will want to buy the clean energy from people who do not generate it. they will want to see the real source rather than someone who buys it on the open market. therefore we will want to be integrated. the generation will be at the lower end of that spectrum, but by having the light brand we can get returns. alix: is their business where you are not touching that? transmission is usually quite regulated and often government control with very low return. a stable business. we like business that is higher risk in higher return. we are not likely to get inch to -- to get into transmission. we will not get into coal power generation or nuclear generation. it will be renewables. hydro, potentially. we trade a lot of hydro. there are a few clear upside areas. of mythat is part
interview with the director of shell integrated gas and new energy. these guys are in a bind because they need to spend money now for the future of energy that will make them no money and they do not know when they will be profitable and investors need to get on board. a difficult place for them to be in. david: this is what larry kulp says. a big part of their problem and renewables. alix: they do not know where the markets will be in terms of power. sticking with the energy world, it is a busy weekend ahead for the oil sector. saw a shiftreport in the tone in the global market, saying opec nations have enough supply to make up for any shop posed by the prices in venezuela. joining us from london is bloomberg's annmarie hordern. what is going to be the topic of conversation? annmarie: venezuela will be one of the first things to discuss. the country is facing sanctions
which means they cannot get cruised to the gulf mexico and are dealing with electricity crisis. they have a triple energy crisis. at one point, production fell to 500,000 barrels a day, that is 50% lower than their january. that is trading a tighter market. on top of that, it is not just venezuela under sanctions, it is iran. those iranian waivers granted four months ago, the deadline is may. these countries under these kind of situations will be high on the agenda as they decide whether or not they want to extend these cuts until the end of the year. alix: it is a great point. through the longer-term outlook, what i was struck by an houston is how the energy companies are talking about the transition to renewable, something a lot of the opec members are not in a place to do. they are still dependent on oil for money and how to manage the oil price. annmarie: certainly.
if you look at the middle eastern countries the prices they need to balance their budgets are much higher than what we have now. saudi arabia, bloomberg calculations so they need $80 per barrel to budget what they want to do for 2019 which is part of nbs spending more to try to diversify their economy. they need much higher oil prices. they talk so much about diversifying but have you not seen any of this come to fruition. you're talking about the future of automobiles and energies. it is interesting speaking to show. the director of shell drives two ev's. alix: putting his money where his mouth is. annmarie hordern, thank you much. safe travels this weekend. a new website story. hudson yards open for business. this is bloomberg. ♪
watching. hudson yards making its debut to the public. viviana hurtado is down there. tell us where you are. viviana: you were talking right before the break about a new west side story about to be written. it starts and just about an hour at hudson yards. what has been going on is this lead up to 10:00 eastern when the kickoff event starts. we've been hearing a lot of music. what will happen -- half of this complex will open. we are talking about a public square and garden as well as a residential complex that will be half rental, half for sale. you can also see behind me on the front of this observation deck call the vessel where the public will be able to get 360 views of what is happening over here. the commercial space is another part of the complex being opened up today with global brands, including l'oreal usa taking up shop over here.
the retail space anchored by neiman marcus at the center of this vision is related companies in oxford property group. this is a $25 billion project. that makes it the largest real estate development in u.s. history. back to you. alix: viviana hurtado. we would like to say michael bloomberg did play a role in the development of the hudson yards project as mayor of new york. david: fun fact. it is a mile to climb all the way up to the top of the vessel. one mile. alix: a good workout. that does it for bloomberg daybreak. coming up in the open with jonathan ferro, the oppenheimer fund ceo. this is bloomberg. ♪
, global: coming up equities recovering from last week's losses to his right you signs of an economic rebound. china pledging to resist the urge to engage in largest tales stimulus. brexit delays. parliament voting to push back the split the eu beyond months end. 30 minutes away from the opening bell. here's your friday morning price action. hazen nine points on the s&p 500. euro-dollar stable. treasury yields coming in two basis points on the u.s. 10 year. that is your process a picture. we begin with our top stories. mounting higher despite weakening global economic data. >> i would call this a goldilocks moment. >> we are in a low inflation world. >> a low inflation rate. >> low volatility. >>