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address the issue with reporters today. >> we are looking at all options when it comes to closing the different ports of entry. what that looks like and what the impact will be, they are doing a number of studies on this. mark: delays at entry points are already mounting. as many as 2000 border officers normally assigned to check trucks and cars are being shifted to do with migrant crowds. the white house security office says dozens of aids were granted security current lances despite red flags in their background checks. those include concerns about foreign influence, drug use, and criminal conduct. one official said she compiled a list of at least 25 officials initially this -- deny security clearances last year but senior officials overruled those denials. the allegations were detailed in a memo released by the house oversight committee. blocked aocrats have
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republican disaster aid bill, saying more money is needed to help hurricane ravaged puerto rico. but the president opposes additional funding. he contends the u.s. territory is getting more money than some states. the senate may now look to pass a more narrowly drawn bill to bring to get the issue into a house-senate conference committee. it's gone from that to worse for people living in the venezuelan capital. hasnational power crisis stretched into a fourth week and is now hitting water pumps. that has force residence to scrounge for water or wait in long lines to build barrels. the venezuelan government blames attacks on the electrical grid. it is ignoring accusations of mismanagement and incompetence. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. it is 1:00 in new york,
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6:00 in london, 1:00 a.m. in hong kong. i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories from the bloomberg and around the world we are following. another pivotal day potentially for brexit. theresa may will make a statement from number 10 after a marathon cabinet meeting. more on that and analysis next. home sales in the big apple are on the decline. we explain why, along with jonathan miller. joinie battelle will us to discuss his acquisition of serviceouse, a delivery of marijuana products. we are halfway through the trading day. romaine bostick is with us. we have a mixed market.
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>> it's been a mixed day all day long. the dow and the s&p taking it the worst, down pretty hard by that surprise announcement we got from walgreens. as far as the nasdaq, that has been bouncing back in between gains and losses. we see some strength from the biotech companies keeping things of float, but pushing things down our tesla, some of the other tech stocks, netflix, amazon. take a look at some of the individual movers we are seeing. facebook having a good day today, up 3%. there was a note out this morning at deutsche bank saying the move on instagram, to move to a payment system, e-commerce type model, that could be a good upside for the company. inc. which was spun off from .own dupont today, up .4% marathon selling off their auto loan business to focus more on both management. investors are liking that,
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getting a pop of 3%. the company will gain about $1 billion in cash to do what it wants to do. on the flip side, we see some stocks moving down. snap down again. down about 2% today. one of the big ipos from last year, that is down about 1%. down 21% from the high in march. theourse, we have lyft, stock below $70 a share. at one point, it was down to 66.10. investors not convinced about the growth story we have going. who knows how this will shake out, but right now we see lyft in the second day of trading in the red. vonnie: thank you, romain. , all eyes on brexit at the moment according to vers theresa may will be
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speaking in a few minutes after a marathon cabinet meeting. duringforth, our next guest says avoiding the mecca stilley -- domestically focused u.k. companies. the portfolio manager at newberger norman. we look to be in the middle of another pivotal day in brexit. what is your base case, having seen on the imaginations over the last week? wei think the base case is don't know. to give some context around that, if you backup three now,'w this whole brexit thing would play out. when we did know is that it would take decades and decades for the u.k. and europe to come toth harmonize laws, customs, regulations, and it will take a long time to pull that apart. means slower growth. most importantly, it means uncertainty. just as the market does not like uncertainty, ceos, cfos,
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investment decision-makers at companies, that allocate capital , also don't like uncertainty. they have been awaiting to invest the capital for their businesses. making any positive trades, taking any active positions based on this uncertainty? >> we've been focusing very much on multinational businesses. the sentiment both on the u.k. and europe is very low. but there are a lot of multinational businesses in both of those regions that compete on a global scale with the likes of s&p 500 companies with similar geographic exposure. havect european companies been dealing with slower growth for quite some time, so they have expanded more aggressively into faster growth areas. to stopwe are going there and listen to prime minister theresa may. chairingust come from
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seven hours of cabinet meetings focused on finding a root out of the current impasse, one that will deliver the brexit british people voted for and allows to move on and begin bringing our divided country back together. i know there are some who are so fed up with delay and arguments that they would like to leave with no deal that sweet. i have always been clear that we could make a success of no deal in the long term. but leaving with a deal is the best solution. so we will need a further extension of article 50, one that is as short as possible, and which ends when we pass a deal. and we need to be clear what such an extension is for. to ensure we leave in a timely and orderly way. this debate, this division cannot drag on much longer. it is putting members of parliament and everyone else under immense pressure, and it is doing damage to our politics.
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,espite the best efforts of mps the process that the house of commons has tried toso today, 'o break the logjam. i'm offered to sit down with the leader of the opposition and to try to agree a plan that we would both stick to to ensure that we leave the european union , and that we do so with a deal. any plan would have to agree the current withdrawal agreement. it has already been negotiated with the 27 other members, and the eu has repeatedly said it cannot and will not be reopened. what we need to focus on is our future relationship with the eu. the ideal outcome of this process would be to agree an approach on a future relationship that delivers on the result of the referendum that both the leader of the opposition and i could put to the house for approval, and which i could then take to next week's european council.
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however, if we cannot agree on a single unified approach, then we would instead agree a number of options for the future relationship, that we could put to the house in a series of votes to determine which course to pursue. crucially, the government stands ready to abide by the decision of the house, but to make this process work, the opposition would need to agree to this, too. the government would then bring for the withdrawal agreement bill. we would want to agree a timetable for this bill to ensure it is passed before the 22nd of may, so that the united kingdom need not take part in european parliamentary elections. this is a difficult time for everyone. passions are running high on all sides of the argument. but we can and must find the compromises that will deliver what the british people voted for. this is a decisive moment in the story of these islands, and it requires national unity to
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deliver the national interest. there you have it, prime minister theresa may being very decisive, saying this is a decisive moment for these islands and it requires national unity. what she is recurring to is perhaps a new approach of cross party talks. she said she would sit down with the opposition leader and ensure a plan that we both stick to. any plan would have to agree to the current withdrawal agreement, which we know as her agreement. she says she wants an agreement in time for next week's european council meeting. let's bring in rosalynn matheson from london. what is different here? she obesity done with jeremy corbyn because she needs labour 's vote? interesting, she repeated a lot of the things that she said before, having a cross party solution to this in the u.k. that she can take europe. -- can take to
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as she said, sitting down with a jeremy corbyn to come up with a compromise that both sides can agree to. her goals remain the same, which is to get a deal to leave the eu before may 22, before the european parliamentary elections. she is saying she wants to be decisive. quite a, however, is bit warmer than it has been in previous weeks, even if in reality or rhetoric is not that different. she is not saying anything new, there were no specific announcements in her comments just now. vonnie: certainly, even the british pound came back a bit, just a 10th of a percent weaker versus the dollar. she did not soften the town in terms of agreeing to a customs union or anything like that. all she said was that we would need a shirt -- a short extension. it begs the question, will there
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be more people leaving the tory party after today? she clearly wants a fourth vote on her agreement. it is interesting, she is possibly maneuvering to have that forth a vote on her agreement before the summit next week with the european leadership. she might put that to a fourth vote. the question is what she can do in the meantime to amend that agreement. at the least it probably means a customs union is on the table because the thing the labour party has been most supportive of in recent days is that softer approach to brexit, having a customs union. it might be that is the way she has to go to get a deal through rather than going through a hard line with the brexiteers, going to other way now and trying to run up with labor to get a customs union through. she was again very strong and specific in those comments. thank you so much for joining, rosalind mathieson. let's welcome our coanchor guy johnson. we talk about this every day but today is another pivotal moment.
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stirling is rising just a little bit, still weaker versus the u.s. dollar. the prime ministers saying nothing. is she going to make jeremy corbyn make the offer so that she can say this is what we need to do? guy: labour i think the ball is definitely now in labour's court. we have to figure out what labor wants. labour has indicated it would like a customs union. what less clear on exactly the single market access story would look like. the other interesting aspect as well, it is official labour party policy to have some sort of a referendum on the result as well. you wonder if we could find ourselves in a situation where there is theresa may's deal but also to include a customs union. the big change is it could be put back to the country, that we see some sort of referendum coming through. lessis point, that looks likely because theresa may is
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indicating she doesn't want the country to take part in the may elections that the eu will be holding. the timeline could be interesting in terms of what labour wants and what the government wants. a break from her own party. you guys are not helping me on this even a you said this is what you wanted, therefore i'm turning to the opposition, which would really stick in the throats of many tories. also she said that there would .e a small extension the most recent reaction to that, the irish prime ministers saying an extension cannot be a recipe for a decision. is that what this is? guy: i think that is what she is trying to avoid. she had decided the only way to break out of this impasse is to reach out across the aisle to, with some sort of agreement that both sides of the house of commons can agree with. it is certainly something that the conservative party does not want to see happen, taking part in those may elections. i wonder if the labour party
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would take a more relaxed attitude toward that. at this point in time, which he has indicated this evening is the conservative party is not capable internally of finding compromise. as a result, to get some sort of a deal over the line, she needs the mps on the other side of the house of commons, namely the labour party, to get a deal through. basically, i think she has reached the end of the road with her own conservative party. she has agreed to step down after the brexit process has been completed. in some ways, as soon as this happens, she is done. had alreadyur objected to her withdrawal agreement, so it will be interesting to see how she plans on getting around that with labored to get it to a fourth vote. also interesting to see the dup reaction, also if there will be more resignations. are we getting any response from i thinkuestion guy: europe will try to play this one coolly at this stage.
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as you have indicated, there is a strong sense from around europe, and you mentioned the irish response earlier, that any kind of delay has to generate something meaningful, something that can become actionable for the united kingdom. i think they will be delighted finally to see a cross party effort being made. there has always been this sense that theresa may's deal should form the foundation of an arrangement with the eu going forward. if it were to be softened further to include a customs union, which would deal with significant portions of the irish backstop issue, i think that would probably please the eu. uk'snk they will grant the some latitude in this, and the fact that theresa may only indicating she wants a short delay at this stage, probably making that a little more palatable. i think there are many in the eu that will not want u.k. to take part in those elections, simply because the u.k. may
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decide to return some strongly anti-eu characters in strasburg and brussels. this may suit all quarters, as far as the u.k. looks like they are finally making some sort of cross party arrangement to get a deal done. vonnie: just a little bit anti-climatic after she described a seven-our cabinet meeting, and this is what she came out with. i cannot imagine that was a pleasant meeting. right now, sterling is flat on the day. we will be speaking about this tomorrow morning on the european close. our thanks to you. cohen.et back to elias focused on u.k. companies but not those turning inward, but outward. give us a couple of examples. a multinational home products company, consumer health company. they compete with the likes of procter & gamble, church &
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dwight. they are investing heavily in innovation and driving that consumer health business. in that company at a significant discount to the u.s. peers. i heard more of the same out of prime minister may hear. what that means to me is more uncertainty, more volatility, and for us on the newberger berman international fund, where we focus on investing on quality businesses in the long-term, it provides us the opportunity to get in, when the price of the stock disconnect from the value. rentokil is us why such a good investment? would competel with the u.s. company rollins. extermination is a great is this. year after year it grows 2%. these larger players take market share every year, so they can grow in admit to single-digit range.
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it is also a anti-cyclical, very defensive. for halfwn rentokil the valuation that rollins in the u.s. is trading. very excited about that investment. vonnie: we will have to have you in on another day so that we can go through more of your opportunities. there you have it, a big day for brexit potentially. he was good enough to join us. elias cohen, newberger berman. manhattan home buyers are in no rush to make deals. inventories continues to climb. jonathan miller is next. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i'm vonnie quinn. record $238 million contract for a month condos skewing city prices higher. in the number of sales manhattan seeing the second-longest streak of declines in 30 years, according to a report.
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statistics with a miller, president and ceo of miller samuel. prices dropping for a sixth straight quarter in q1. what is going on in manhattan? >> we have this layer of uncertainty. it began with the tax law in january 2015, and has continued with this past quarter. state -- introducing a very onerous tax. that helped dampen demand as well, a lot of uncertainty. that has been repositioned as a mansion tax and that which is wetll a what blanket -- blanket on a already weakening market. 2019 will be a year that is probably weaker from where we came from. vonnie: tax uncertainty aside, why is it so weak, given employment is booming? we have rates that are on the
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decline and it seems like there are more people in the city than ever. what else is going on? it cannot just be the tax situation. think a lot of it has to do with the threshold of affordability, really reached in the last couple years. nationally we are seeing the same thing, too, where we see a decline in home sales on a year-over-year basis. the new york metro area the last year and half has seen a slowdown in sales. bycing tends to follow sales a year or two, so i would anticipate more weakness ahead. vonnie: prices fell in all five categories, is that a first? jonathan: the first in many years. it is not the only time it has ever happened, but it is symptomatic of the entire market experiencing a cooldown. shift away from the high-end the market. what is really interesting is, ,ver the last five quarters
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most of the inventory growth in manhattan has been in the studio, one-bedroom market. initially the reason was that because interest rates were beginning to rise in early 2018. even after they began to fall again, now they are the lowest they have been in 14 months, we are still seeing inventory growth in the starter market, which means less demand. so i think the muscle memory of that market, i think people are pausing and holding off, until they get comfortable with what is going on in the market. vonnie: it is such a strange market, the manhattan market. at the moment it would take 9.4 months to sell all of the homes on the market. that is a full month longer than it would have just one year ago, even though everything seems to be getting better, except for this tax situation. you say people are moving sideways as well.
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is that because of a lack of incentives? jonathan: if you look at the market splitting it up between them, the resale market only accounted for 70% of sales. development represented over 50% of the transactions for three of the four quarters in 2006. so it really is a shift in the emphasis in the market. , from ale market pricing standpoint, is moving very modestly in terms of pricing. on the new development side, we have seen a significant correction. vonnie: you have a few years of experience in this. from your vantage point, when does the shift? jonathan: i think we are already in the middle of it. and what looks8 like the continuation into 2019 as a market reset.
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we have had some heady times for the prior 3, 4 years. we are coming off of a very brisk period. in many ways, i know it sounds given the metrics, but in many to awe are returning longer-term normalcy, if we know what normal means anymore, something that is more sustainable. vonnie: jonathan miller, always fascinating to chat with you. our thanks. sterling trading flat right now versus the u.s. dollar. just want to recap to reason they made a statement, saying that she is offering to sit down with the leader of the labour party for a cross party approach to ensure she has an agreement in time for next weeks european council summit. ♪ want more from your entertainment experience?
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just say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that.
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welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome. mark: i'm mark crumpton with bloomberg first word news. suggesting hep is will defer after 2020 his push for a republican health care plan to replace the affordable
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care act. the president tweeted monday that congress would vote on a republican health care plan after the elections "when republicans hold the senate and went back to house." republicans seem to be caught up our last beat when the president claimed the gop would be the party of health care. the party doesn't yet have a copper handset plant to replace obamacare. a mile, house and senate democrats took their case to protect the affordable care act to the steps of the supreme court today. >> this is so interesting because the president has been trying to do away with the affordable care act, we know that. and the way it was protected was not just by our inside maneuvering. it was because of the outside mobilization of so many groups, many of whom are present here today. 10,000 events. events around the country. mark: senate minority leader chuck schumer said in a news
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conference the plan to repeal health care in the courts "reeks of desperation." democratic presidential candidate who in castro wants the u.s. to decriminalize illegal border crossings. the former san antonio mayor unveiled the first policy rollout of his 2020 campaign. castro is also calling for the immigration and customs enforcement agency to be split in half. he wants some of the enforcement duties to be redeployed elsewhere away from the u.s.-mexico border. british police are investigating to attempt to sabotage real where lines believe to be linked to brexit. transportation authorities say two so-called malicious obstructions hit sections of rail lines in central and eastern england last month. in both cases, the devices are attached to the tracks and were intended to disrupt services. both attempts failed. or have been no arrests. -- there have been no arrests. global news 24 hours a day, on-air, and @tictoc on twitter,
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powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. shery: live from bloomberg world headquarters in new york, i'm shery ahn. amanda: live in toronto, i'm amanda lang. welcome to "bloomberg markets." we are joined by our bloomberg and bnn bloomberg audiences. here are the top stories that we are following around the world. u.k. p.m. theresa may is calling for unity and compromise, asking for a fresh brexit delayed to break the logjam. blackrock shakes of its management lineup. the world's largest asset manager is promoting a new batch of execs to lead its alternatives business. and we talked to head of the
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ontario teachers pension plan, one of the world's biggest retirement funds. how his fun was had by volatility that unnerved global equity markets last year. let's get a quick check on the major averages here. we have some of the same uncertainty hanging over markets as they have been in recent days. brexit is front and center, china-u.s. trade talks kicking off tomorrow. the s&p now in negative tory, have been positive, but mildly. they saw the golden cross yesterday. average, it indicates a 14% gain for that market. across the board, energy playing a role for the potter market. walgreens and dow, two companies we are keeping an ion. at the bottom of the screen, the pound seems to be moving around a little bit. we have some volatility, as there was an expectation that may would speak.
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we will see if the pound has a reaction to what she said. shery: given all of that uncertainty, no wonder the central banks dovish turn around the world has helped markets, and has helped to keep the s&p 500 supported from the beginning of the year on the feds dovish turn. we have seen those implied that easings moveed investors to two rate cuts by 2020, but given that recent stock rally that you mention, in fact, we are now seeing those easing bets diminishing, but that risk is always out there. whether we get a trade deal between the u.s. and china, not to mention these latest headlines with brexit. ongoing discussions, votes, debates on all sides. it seems to twist and turn by the day. we do have these comments from prime minister theresa may from a short while ago.
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she is trying to end the stalemate with parliament. >> i am taking action to break the logjam. i'm offering to sit down with the leader of the opposition and to try to agree a plan that we would both stick to, to ensure we'll leave the european union, and that we do so with a deal. of course, that's the big question, is there a no deal exit, can that be warded off one way or another? does that offer a cross party approach to brexit mean? a customs union, softer brexit? let's turn to another u.k. story. stephen armstrong told david westin he would have to rethink the company's british footprint in the event of a new deal brexit. >> we love our business in the u.k., it's an important part of ford motor company in europe, and we want to continue to have a big business in the u.k., but
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anything that would impact our competitiveness in the u.k. would cause us to think again about our future footprint and where we would make our investment. shery: for more, let's welcome the barclays auto analyst. brian johnson, great to have you with us. how exposed is for to brexit? ford is the most exposed, given it has a good auto ranchise in the u.k. hence, anything that it brings cost of little bit of set. gm is fortunate in that it is out of europe. fiat chrysler, italy is a bigger market within the current eu. amanda: in terms of where we see these companies hit, has it already been absorbed in your view, as they move ahead of brexit? has been vocal in their
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warning. as we pointed out last week, we think european investors are worried about brexit. there are also worries coming about another in missions testing changeover, as well as, for the german manufacturers, potential import duties coming into the u.s. this is one of those trios of exit of black swan risks that the auto sector in europe faces. shery: how much of the problems in the u.k. for these auto companies are directly related to brexit? how much of it is just the end of the cycle for auto demand in the u.k.? >> currently, the sales rate is a little above. it is hard to say how much brexit overhang is on the u.k. consumer. if there was a hard brexit, you would have tariffs and potential customs disruptions. amanda: what is the outlook for this whole group in terms of adjustments to earnings for the full-year? you are considering they have to
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come down or are they safe on their outlook? when you consider the weakness in europe, ongoing weakness in china, even with h radio, we don't think that changes the current negative trajectory of chinese autos. describing and eroding plateau in the u.s. guides given the in january will be, in some cases, depending on how conservative companies are, will be coming down a bit. china, taxmentioned cuts, loosening of the secondhand car market. and the u.s. might be doing a little better. can all of those reasons offset the week is coming from europe? >> it depends on how big the weakness is. yes, if china improves and the u.s. improves and europe is a soft spot. no, if there any till risks
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materializing. the best thing you can say about the market through march is it is bouncing along the bottom as opposed to deteriorating further, but no signs of it getting better. amanda: we watched closely consumer debt levels. these companies play in a we have seen a lot of leverage, some concern about the credit quality. is there a knockback effect to them if we saw a recession that tests that part of the market? if you have a recession, sales go down, the consumer goes into his or her show, stops buying cars. if you look at credit overall at least in the u.s., the weakness is primarily in subprime. on a percent basis, that is actually doing ok in terms of performance. that is really a used car market issue. where it comes into the new car market is pricing due to trade-ins, less so than the absolute volumes. to leave itave there. great to have you with us,
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barclays brian johnson. mock,r, i spoke with ron the president and ceo of the ontario teachers pension plan. i started by asking him what keeps him up at night. >> managing the risk when you are investing in private asset is really about your talent. your talent has to be on the ground, they have to be experienced, they have to understand the sectors and businesses they are investing in. in fact, they have to be specialized. if you are going out to buy an airport, you need to send people who are involved with airports, have invested in them, sitting on the boards of airports. you will not send the same people out to look at manufacturing or cookie companies. specialization is key. having boots on the ground in the regions is critically important, and allowing those boots on the ground to have some autonomy. of course, we have processes
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internally that we manage the risk. the risk does not exist until you acquire an asset. once you acquire the asset, then the skill set to manage it through its cycle becomes critically important. and that is acquired over time, and has been for the last way seven years. as a learning organization, we are always investing in. it is about our people. amanda: what would you consider top of mine, what keeps you up at night, the risks in the world, or the opportunities? what is on your mind when comes to thinking about what you're up to? ron: for us, it's making sure the portfolio remains balanced. whether we are leading to inflation or much lower inflation, equities heading up or down, we need to know that we have got a core, balanced portfolio. we worry about getting that right.
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rates have been rising over the last 18, 24 months. i think they started to bite as a consequence. real rates have been going up effectively, and that is like slowly taking your foot off the accelerator and putting it on the brake. as a consequence, what we saw last year, what it did to equity markets, growth in commendation with tariffs and other trade issues out there. we watched these closely and carefully to see how they but by the same token, we have to have a real sense of confidence around the underlying economics that are driving many of the countries we are involved in. the things that would keep me awake, and do a little bit, actually, is policy mistakes. interest rates being pulled higher when, clearly, this is not the time to be doing that.
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irrational trade moves are not something that you want to see. things forany someone like myself to have to worry about in this role. ron mock is president and ceo of the ontario teachers pension plan. coming up next, thinking beyond indexing. moneyrld's largest manager is sharpening his focus on alternative investing in an effort to boost growth. this is bloomberg. ♪
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shery: this is "bloomberg markets." i'm shery ahn in new york. amanda: i'm amanda lang in toronto. blackrock is launching its
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biggest sweeping organizational overhaul in years. so what is changing? anie, a couple of things going on here. paint the picture. people are so fascinated in part because we are all fascinated about who will replace larry fink. is this seen as a piece of that puzzle? >> it is a big question who will replace larry fink, who is 66 now. once he leaves the firm. for a long time, you have seen this stable, different, potential successors emma some of whom are in play in his leadership reshuffle that we see today. shery: how much of the leadership changes that we see today reflect the actual challenges that blackrock is going through? >> like many asset managers, blackrock is facing this question of how to expand globally. a lot of the changes we see today are in keeping with that being. theou have seen for example
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firm making sure that it's institutional client businesses will report to regional leaders. that is one pillar in their effort to serve clients globally. there is something ironic in the fact that blackrock helped piner the move to the low-cost investing that is really hurting the wealth industry at the moment. even they look like they need to cut costs. announced layoffs a little while ago. is it also feeling the need to realign a little bit? annie: this is a theme we have seen across the industry, fee wars. they are absolutely feeling some of the pressure on fees that they and others in the industry are seeing. one other piece of the
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leadership reshuffling from today is bulking up the alternatives business, which is typically a higher fee piece of the business. that has been a big effort for blackrock expansion wise in recent years. shery: who is in the running to replace larry fink, have they been shuffled around this time, too? macomb has a new role as chief client officer that was newly created, but there have been some other major names floated. mark wieden and is another name. his role has expanded a bit today to include latin american oversight. earlier this year, he took on this expanded international strategy role. have beenamong others floated out there as potential successors. shery: thank you so much for that, annie massa. coming up, lyft extending its
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bumpy ride. why shares of the ride-hailing giant are still hovering below its ipo price, and what it means for other unicorns going forward. we will dig into the details next. this is bloomberg. ♪
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amanda: this is "bloomberg markets." i'm amanda lang in toronto. shery: i'm shery ahn in new york. it is time for the bloomberg business flash. american express has renewed its 23-year partnership with eltel airlines for another 11 years. it's a big win for the credit card issuer which counts delta as its largest cobra and partner. analysts say the deal increases the chance that warren buffett's berkshire hathaway buys the airline. but that is the biggest delta andr in american express. and their prize financial has
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agreed to sell its auto and home unit to american family insurance for a little more than a billion dollars. the deal will help on their prize focus on wealth management and asset management. portfolio ofby a residential mortgages and unsecured loans from the british government's bad banks for a price of $6.4 billion. that is a major step for the government offloading the assets it took on during the peak of the financial crisis. ride-hailing company lyft extending its slump today with shares hovering below its $72 ipo price. we are joined by our technology reporter eric newcomer. how much can you read into the first days of trading? eric: with this company people are particularly attuned to it because people don't know what to pay attention to you. on the one hand there has been this transformational story, on the other hand, these huge losses. there is a lot of scrutiny.
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then you add onto that all of the unicorns looking to go public and seeing how this ipo goes. i think we are reading a lot into it because people care about what will happen. in the long term, facebook had trouble in the beginning, other companies pop and then go down. there is a limited amount that you can read for the long-term about lyft and what it will do based on early trades. amanda: one thing that you don't like to see, because it can cause trouble for others, if the banks is priced it, if you didn't leave enough on a table for the aftermarket. is that the case or will this always be volatile and we have to see? eric: that six at two dollars to 72, ande, moved up to then went up to $72. they sort of made their lives harder hereby going above their .riginal range clearly, they got buyers at 72,
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which means they are not leaving money on the table, but playing the expectations game, it's made life more difficult for them in the first few days of trading. hasda: of course, what lyft in common with the other unicorns coming, they are losing money. , forit be harder for uber well,ce, among others as because of the financials? will this make it even more difficult? eric: i'm excited to try and slice and dice uber's losses against lyft. it will be interesting because they have all of these acquisitions and sales that change how their financials look. given that it has burned so much money for its size, $911 million, could end up letting these other unicorns look a bit better. if you are a software company, you are definitely not burning anything like that.
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even uber will say, you are losing money, but spread that over our global footprint. to some degree, the other unicorns have to be thanking are setting the expectations for losses at nearly a billion dollars. even though uber will be big, they can say on a revenue basis, our losses make more sense. shery: what surprised me about lyft was help as they blew through the ipo price. this is something that everybody knew. high growth, they tend to burn cash fast. what was the issue with lyft? eric: if you had asked me before, i would say there is so much retail excitement, able know the brand. riskg out of the gate, the goes super hot, and then over time pulls a snap. was the model when people were talking about the skeptics of the company. given the enthusiasm during the
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roadshow, given that it was oversubscribed between 62 and 68, that they could not sustain that appetite after the high open price. it's been sort of a surprise, and that is the beauty of the markets. they are mystically figuring it out, and that is why people have been excited to move from the private markets to this very managed process, to a more organic system. amanda: we have to leave it there, thank you, eric newcomer. a quick reminder to our viewers, you can catch all of our interviews on the bloomberg with the function tv . from toronto and new york, this is bloomberg. ♪.
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mark: i am mark crumpton with bloomberg's "first word" news. british prime minister theresa may has asked opposition party
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leader jeremy corbyn to work with her on a new brexit deal as she tries to bypass her party's hardline eurosceptics and put together a parliamentary majority to avoid crashing out of the european union with no deal next week. the prime minister announced the plan from number 10 downing street. this is a may: difficult time for everyone. passions are running high on all sides of the argument. but we can and must find compromise is that will deliver what the british people voted for. this is a decisive moment in the story of these islands, and it requires national unity. mark: prime minister may announce the move following a marathon seven-hour council meeting. donald tusk is urging the european union to be patient as it considers its response to the prime minister's offered to compromise on the divorce deal. he was air force

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