tv Bloomberg Markets Balance of Power Bloomberg August 30, 2019 12:00pm-1:01pm EDT
headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, jonathan 11 from miami on hurricane dorian headed to the east coast of florida. emma kenny onn, what the narrowing lead of kenneth were president means, and teslas lead in china. let's go to you down in miami. what we expected to hit land. >> looking at labor day at this point. it is a slow moving storm and the schedule has been changing constantly. this could end up landing as a category 4 storm which is no joke. winds, even aour place like south florida which is compared for this kind of thing, constantly preparing for something like this, you can never be ready. david: we will come back to you and talk with that might mean for florida. in the meantime, let's go to emma in washington.
we lost kristen gillibrand yesterday. how many more do we have to lose? emma: nine more will not make the debate stage out of the 20 candidates. that is what i wrote about today. david: we are looking forward to the debate. can people remain in this race if they do not make it onto the debate stage? they can but it will be hard. if they do not make it this debate in the october debate, it will be very difficult. being on the debate stage is more than just debating off other candidates. it is about showing you are a viable candidate, expressing your platform and getting our message out. if you are not on their, it is going to be difficult for donors and primary voters who matter a lot at this stage to see you and feel like they should continue to support you. vonnie: you said the magic -- david: you said the magic word,
donors. when you have john delaney who has money in his own pocket and says he will stick it out and i will, who is best positioned and who is weakest on the money? emma: they have not released to the next quarter fundraising, it is hard to say at this moment. if you look at their fundraising emails, it starts to be quite obvious who needs more money than others. besides that, if you're looking at people like john delaney and people like sestak -- palms buyer, who is a billionaire -- and has enough money to make it through the race. that is someone with enough money to stay in. he got the donor count to make the third debate. he was just one pull away from making the debate stage. he is another one who we should watch. david: and as you say, if anyone has the money, it is tom steyer. now let's turn to craig trudell
in new york. a break from china today. craig: this is significant. we are not talking about import taxes. we are talking about purchase tax. when people are buying their in china, they have had to pay a 10% tax on their purchase. they no longer have to do that. if you make their electric vehicle in china, you know tesla is poised to do that at a plant outside shanghai. this is a nice sweetener for them before they get that plant up and running. vonnie: -- david: that is tesla. gm did not get a sweetener from president trump today. craig: this is a response to gm uaw represented workforce has now slipped to number three behind fiat chrysler and for. this is a huge development.
this is the company that decades ago was not only the largest employer in detroit but the largest in the country. now it is number three. trump taking note of that and coming after the company, saying maybe they need to move back to america. david: deliver on those jobs he promised. thanks to craig trudell. now let's go back to jonathan live in in miami. there are a lot of orange groves in florida. jonathan: there are, indeed. as much as 60% of orange groves could potentially be affected by this. we have seen the reaction in the price of orange juice. this could also be a huge real estate story. some of the highest value real estate in the united states is right here along the east coast of florida from miami up to palm beach, and right on up to jacksonville. we have to see where this hits
and assess the damage. david: there could be a lot of property damage. a lot of insured homes down there. we saw movement in the stock of some reinsurers on this news. if it is a monster, the way president trump describes it, what level of property damage could we be looking at? jonathan: overall, we have been talking about damages on the order of $10 billion. there is so much uncertainty about this storm at this point. we cannot say exactly when it is going to arrive and the governor of the state of florida continues to be on the airwaves saying we have no idea where it is going. it could be anywhere from miami up to jacksonville. david: thank you so much, jonathan. that is great. now let's get a check on the markets and for that we turn to abigail doolittle. abigial: stocks are a bit wishy-washy, the dow, s&p 500, nasdaq, markets are mixed.
the dow unchanged. it had been slightly higher, earlier slightly lower. trooper the s&p 500 slipping between small gains and losses. the nasdaq is underperforming. it is not clear what is behind this action. earlier the s&p 500 had been up .5%. a continuation of the volatility we have seen in august. the friday before a long holiday weekend. some traders taking advantage of that. it is not a risk off day. bonds are trading lower. if we take a look at the s&p 500, it is an up week. first up week in five. the s&p 500 putting in nice gains both wednesday and yesterday. here is today's multiplying, the wishy-washy -- here is today's small decline, the wishy-washy action i was talking about. as for some of the stocks moving , campbell soup up 10%, on pace for its best day since 2000,
beat both sales and earnings estimates, lots of hope there could be a turnaround for the beleaguered consumer staples stock company. investors buying in and united health and caterpillar trading higher. not for specific reasons but investors buying high-quality names. this explains why the dow is outperforming to some degree. for the quarter, we are at the end of the month for august, and we had do have a down month for stocks in august. for the quarter, let's go for a broader perspective. starting off in the beginning of the quarter, the s&p 500 and purple, we have gold and blue and bonds in the yen in white and yellow. we see into the fed meeting on july 31, all trading flat to slightly higher. after investors were disappointed by the fact it was not more dovish, we see stocks declining, gold taking off, we have yen and bonds higher. this is a quarter of havens and when he threw the trade
uncertainty in their, it does make sense that the third quarter is tracking a bit risk off. much of it coming in the month of august. david: thank you so much to abigail doolittle. coming up, hong kong crackdown. the police arrest prominent activists. we head into what could be the next -- the 13th week of protest. we get an update from reva goos on, next. this is bloomberg. ♪
>> florida is bracing for hurricane dorian. the category 4 is expected to make landfall earlier next week. florida governor tells residents to be prepared for what could be a multi-day events. dorian has already called blackouts in the u.s. virgin islands. consumer sentiment has fallen to its lowest in six years, and 8.6% job from july -- dropped from july. the economic outlook for the next 12 months is down to its lowest since january. the russian military says syrian government forces have begun a unilateral cease-fire in the northwestern province. the cease-fire began at 6:00 local time. this comes after week of intense defensive actions in rebel held areas. more than 100 and 50 -- more than 150 african migrants entered a spanish enclave by climbing over fences and walking
across a border mode that separates the territory from morocco. some climbed to the top of a 19 foot fence four hours until law enforcement officers brought them down and arrested them. video showed the migrants cheering and shouting victory in their language as they ran toward a migrant protest center. moroccan officials say they have broken up over 100 human trafficking networks and stop more than 150,000 crossings this year. 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'md of the group to ritika gupta, this is bloomberg. david: hong kong police today arrested several prominent activists and now they are warning of more arrests to come if protesters go forward with protests planned for a 13th straight weekend. one arrested today was joshua wong, 22-year-old, also one of the leaders of the umbrella
movement in 2014. the arete -- he addressed reporters today after he was released on bail. >> we shall not surrender. i urge the international communities to send a clear message to president xi. using emergency ordinance is not the way out. we will continue our fight no matter how they prosecute us. david: we welcome reva goujon. welcome back. give us your sense of where things are in hong kong and more particularly is beijing ramping up the pressure on the protesters or they just trying to maintain where they are? reva: i think this weekend is going to be a very big test of that, notably the human rights front which was planning a big march 4 saturday. authorities said that march was that hasrized, and so officially been canceled. there are still calls for people to, out, that means -- for
people to come out, that means more radical elements could still take the lead, there is still opportunity for things to turn violent, and beijing has been signaling and intervention could be coming. we stopped to look at the lead up to the october first anniversary of the people's republic of china. beijing does not want to stain that anniversary date with a messy crackdown. if there is an intervention, it will have to come sooner rather than later. david: we have to turn to iran and what is going on with the nonexisting talks. there is a report in the new york times that says the top regime in iran is changing its view. it says the idea is taking hold that iran must eventually negotiating with president trump. the regime has concluded president trump can be reelected, and the country cannot withstand six more years of the sanctions he has imposed. is it possible iran is changing its position, that it may sit down at the table with president trump? reva: are they -- i think they
are feeling out options. iran is looking at the lead up to 2020. it has been exposed to that trump does not want war in the persian gulf in canceling that strike. that was out in the open. iran has established a military threat in the strait of hormuz. now that it has that end has been increasing its nuclear activity, it is trying to see what it can do in terms of extracting concessions, particularly when it comes to sanctions easing. now that emmanuel macron has come out with this idea of a credit line that by oil exports, iran wants to see if that can happen. trump has somewhat green lit it, at least in one statement. the test is coming soon. around september 6 is when iran is supposed to take the next step in increasing its nuclear activity. if we see restrained by iran, that could be a signal this negotiation is moving somewhere. it will not be the comprehensive negotiation trump is looking for
but it is at least a potential de-escalation. much -- we heard talk about runaway inflation, a lot of domestic inflation, how much pressure is the regime feeling? reva: the economy is under a lot of pressure. when we look at a downward contraction of anywhere between 5% and 10%, that is possible for iran in the coming year. the iranian economy is not spiraling, either, and we are seeing the government taking harsh and effective action against price arbitration, making sure we will not see runaway inflation for now. they are keeping a good lit on it given the circumstances. -- i do see this eyes not see this as iran capitulating in a negotiation with the white house, but they have established that military threat they are trying to see what they can get out of it for now.
with the french actively trying to mediate and offer a credit line, that is worth entertaining. we have to see if the moderates in the league on the diplomatic front be able to pursue that to its logical end, or are we going to start to see more political frictions in iran, especially in the lead up to parliamentary elections. one more place of geopolitical uncertainty is italy. this morning we woke up to hear wanted to comply with eu rules in the budget, and then later on we hurt maybe the coalition is not holding together. italian bonds have responded both ways. reva: we will know in the coming days. one of the bigger test is seeing what is happening with the five-star online vote on approving a new government and how that is shaped. this is a very populist party platform, and these online votes are important to stay the five-star movements are acting on the will of the people and
its supporters. if it gets that endorsement, that would give us much more confidence the coalition will last. five-star wants to avoid an early election. the democratic party is divided, but right now the motivation is avoiding an election that could reward the league. there is still potential to hold us together, but want to watch closely. the italian government does not have a precedent for lasting long. david: thank you. that is reva goujon, vice president of global analysis for strathmore. .- four stratfor our stock of the hour is next. this is bloomberg. ♪
are watching "balance of power" i am david westin. shares of uber have been under pressure since the company went public. twoy chang spoke to the ceo years after he took over from the cofounder. here is what he had to say about changing cooper's culture. culture.ng uber's >> you need different management for different times in the company. every manager has their faults, and every management team has their faults. the fact is we built a great company and now they have handed it to me and i have to take that great company and make a greater. i think i am up to the job, and while they made a mistake, they built a great brand that had weaknesses but has incredible strengths. emily: the guy who land the trucking business -- who ran the trucking business uber bob was charged with stealing self driving technology from google,
stealing trade secrets. what do you make of those charges? here when weot brought anthony on board. what i do know is we went to incredible depths to make sure any information that anthony might have acquired from google, and it sure looked like he did, did not make it over to our company. that was our responsibility and i think we are incredibly diligent in making sure that we were not guilty of anything that could be nefarious one way or the other. we think when you built, you have to bill the right way rate anthony is a talented person -- the right way. anthony is a talented person, and i think we did the right thing good emily: the person who was here and cost you credibility is already on the board. travis kalanick. i asked you this on ipo day. you question his position on the board?
dara: i am going to live in the here and now. travis has an incredible amount of historical knowledge about the company. he is incredibly bright, as are our other board members. i use him at the board. he is a strong advisor and his background is incredibly useful. we are a public company and the shareholders are going to get to pick their own or. -- their own board. emily: so you talk to them often? dara: i talked to them during board meetings and off-line, absolutely. emily: he is on the board for now? dara: he is on the board now and he will be on the board tomorrow. vonnie: that was uber -- david: that was uber ceo talking to emily chang. of smith &the maker -- i amandguns cut
surprised tariffs are affecting them at all. kailey: they took down their guidance for four year earnings. the highs they are seeing is $.78. that is because of a $5 million cost they have to take because of these tariffs. those will ramp up in the back half of the year. they said they been trying to shift some of their supply chains out of china but it has been hard because the supply chain is not that sophisticated, and some of the components required for this manufacturing are not the same as they are in china. they are struggling to do that and that is an issue a lot of these companies are facing when it comes to china. david: what about on the revenue side? a lot of the gun makers are struggling because the stores do not want to sell them. kailey: that is a huge issue. in the fiscal first quarter their net sales were down 11% year on year. only $124 million.
when you compare that sales to a $5 million tariff charge, you can see that is not insignificant. gun sales have been falling. 2016,as down 16.5% from which was a record year for firearm sales because of the election. this is about the general political environment. when you had a democrat in the white house and constant fears of more strict gun measures, sales were ramping up. under trump, they are falling. david: when there is more control about gun control legislation, sales go up. this time it does not seem to be happening. there's a lot of talk about background check and things like that. kailey: there has been a lot of talk, but not necessarily action to follow up, especially when you have a pro-second amendment president. that fear is not there in the same way as when you had a democratic president. as all of that is happening, you have a broader sentiment shift on guns. you have the likes of dick's sporting goods no longer selling
guns to people hundred 21, phasing out the hunting section entirely at many of its stores, and places like walmart under pressure to stop selling guns after the el paso shooting at a walmart. sentiment is shifting around a lot of the things. in addition to that, now you at tariffs and the macro environment not a pretty picture. david: it is fascinating. i did not know about the important issue. that is kailey leinz. up next, sunday marks another increase in tariffs on chinese imports. we talk with the former u.s. ambassador to beijing in a longtime senator. if you have a bloomberg terminal , you can interact with us directly. on your terminal. live from new york, this is bloomberg. ♪
step in the ramping up of tariffs against china as the on. imposes higher tariffs more goods, and china often responds. to put the latest move into context is kailey leinz. >> the u.s. is imposing a 15% on 110 billion dollars of chinese products, while china is putting a 5% tariff on oil, soybean, and farm products. the president pushing back on tariffs on toys and electronics to december. but 70% of home textiles and half of the footwear products on that list are coming on sunday, so that affects all of the goods that you see here, anywhere from 23% to 53% of goods coming from china. prices could be higher or the u.s. consumer going into the holiday season. on china's end, that means exports go to slow.
shoes and clothing exports will slow into the u.s. 53% in the back half of the year. we are already seeing shipments from asia to north america falloff. we had a built in 2018 as companies build up their inventories, but that could slow. ofna is not a huge buyer u.s. crude, but it is the biggest purchaser of soybeans, and we have already seen those imports falloff. far moreorts agricultural products from the u.s., $5.6 billion so far this year, than it exports, about $3 billion. that suggests any agricultural tariffs will hit the u.s. harder than china. perhaps china has a bit of an upper hand. according to bloomberg, there has not been a lot of trade displacement. the white line we are looking at our imports from china. the orange line is imports from everywhere else.
countries have not picked up the slack. that suggests u.s. companies are struggling to find replacements for chinese goods. china is the dominant supplier in so many products. david: indeed, thank you to kailey leinz. we want to welcome now max baucus, former american ambassador to china under president obama, following his 36 years in the u.s. senate. he comes to us today from bozeman, montana. i am jealous. max: you should be, it is gorgeous here. david: give us a sense of where we stand here. you and i have talked about this over the months. are we any closer to a resolution with china today than we were 18 months ago when we started this? max: my discussions with chinese and american friends in china is looking more and more likely are not any closer. it seems china has begun to hunker down. china has begun to wait this
out. china thinks that they can weather the storm more easily than president trump or americans think they might. china is beginning to look at other markets for their exports, doing a pretty good job that. there is also a sense that this is becoming more political than it is economic. ist is, president trump timing a potential deal closer to the election, rather than earlier, that is the next three weeks. people are starting to adjust to all of these changes. the trouble is there is still immense uncertainty. ,hen president trump says orders companies to leave china, that is even more uncertainty. the inability to put a deal together on both sides is creating uncertainty. my friends, chinese-americans tell me it is my judgment, we are in this for a few more months. hopefully it will break, but i don't see any action. areas that you know
about, china and u.s. politics. you won quite a few elections in your day. does president trump need to have some tangible progress in this situation before november 2020 in order to make sure he is reelected? max: there is no question in my mind that a lot of american farmers, producers, certainly soybeans and other cultural products, companies, they feel the pain. no question about it. are adding additional cost to american business and consumers. president trump clearly understands that, and that is why he has put so much pressure on the fed chairman. he wants him to lower rates more, cut off some of the pain that american businesses are facing. ono think he has his eyes november 2020. from the chinese side, the
chinese are beginning to think they can weather much more of this than was thought. the chinese can endure pain. a lot of this does hurt china even more than perhaps the united states, but if you look at chinese history, there is a phrase, eat bitter. p.sically, tough it u the culture in china is tough jinpingand i think xi will try to wait on president trump as long as he can. both sides want a deal, no question about it. you are is a deal, that will help the economy, the united states as well as china. is president is
trying to get china to push for structural changes, forced transfer of technology, etc.. i think it will be difficult for trump to get that result. the final deal i suspect will be a rollback of tariffs and then a fig leaf on structural reforms in china. inject one other item that is on president xi's agenda with hong kong, 13 weeks of demonstrations there. there is a concern of a possible crackdown. we spoke to one person who was specific that there would be a crackdown. listen to what he told us. as we get closer to october 1, which happens to be a very important day to china, the 70th anniversary of the communist party, i think you'll see the chinese melissa -- military move in and brutalize the protesters. david: do you think he has it right?
max: no, i don't at all. first, i have heard a lot of comments from commentators pointing out the importance of october 1. it is important but those statements are overstated. there is no way in the world china will send in troops. there are troops in hong kong, but they have been garrisoned off to the side. pla will not be used by china to suppress this protest. rather, china will use the police in hong kong to stop the protesters as much as possible. there were some arrests yesterday in hong kong. i have been a couple of times the last couple of months. i can tell you things are getting really tense. this generation are much more aggressive than 1015 years ago in hong kong. the approach of china is attrition, wait it out. of course, the protesters know
that could go two ways. there may or may not be protests again in hong kong. we know on sunday there will be tariffs placed on chinese imports, specifically consumer goods. if you were the there may or mae protests again in hong kong. chair of the finance committee again, how concerned would you be about the effect on consumers? you talked about businesses and farmers, but what about consumers? could this drive us into recession? max: clearly, consumers will pay more. they will not have the products available than they otherwise might have. i don't think we will be pushed into recession. the funny thing about a recession, we all know there will be one at some time, we just don't know when it will be. i don't think it is around the corner. many thanks to max
baucus, former ambassador to china. thank you for being with us. for bloomberg first word news, we go to riddick a group that. >> florida's governor has expanded a state of emergency to nearly 70 counties as the hurricane approaches. it's expected to make landfall in the state next week as a category four storm. president trump says it could be monster.te he compared dorian to hurricane andrew which devastated south florida in 1992. monster. he comparedhong kong activist jg is valid to keep on fighting. the process organizer spoke today shortly after being released on bail. we shall not surrender and i urge international communities to send a clear message to president xi. sending troops or using emergency ordinance is not the way out. we will continue our fight no matter the outcome. he and fellow activists
are due back in court in november. they along with a third protest leader were arrested today. police warned more arrests could be coming. officials banned a mass march scheduled saturday. it is a sign the government is taking a harder line against the protest movement which began in june. u.k. lawmakers have been dealt a blow in their efforts to block administered orest johnson's plan to suspend parliament. a scottish judge has rejected their argument that johnson's plan will not leave a plan to avoid a new deal brexit. the judge held on granting an emergency injunction, saying there is time to hold more hearings on the issue next week. 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 ritika gupta. this is bloomberg. david: thank you. coming up, the university of michigan has spoken and consumer sentiment continues to soften.
david: you are watching "balance of power." i'm david westin. u.s. consumers are growing wary of president trump's trade war. consumer sentiment fell to the lowest level in a trump presidency. the director of that survey said "the recent death decline is due to negative references to tariffs which were spontaneously mentioned by one in three consumers." through thetake us issue is jennifer kerns. down in washington we have jason green.
he is the cofounder of skillsmart. welcome both of you, good to have you here. i will start with you, jenn. don't you get nervous when one out of three consumers volunteers, i am worried about the tariff situation? >> i get nervous when president trump tweets about the tariffs. i think the numbers will go back and between now and 2020. what is interesting are some details in these numbers. the numbers only fell slightly, and less than analysts predicted. so we are ok there. you look at consumers, how they feel, and as someone who is a political consultant, i can tell you, it is more important how consumers feel their lives are going. say they still feel good about jobs and very good about their rising wages, which finally came along. that was the last of the job
numbers to come along in the trump administration. number of people who said they had a hard time finding a job went to the lowest in three months. those trends are on the up. i go back to this area of president trump -- he has ways of communicating that prior presidents did not have. he has twitter, he has his erslies, and he has his press by the helicopter, where he educate the american people. david: twitter as an educational tool. take your will consumer sentiment and i will beat you with jobs. is she right? jason: this is the conversation that needs to be had right now. too often the conversation is being had at the ceo level, whether or not they agree with the policies. , whoeal question is voters connect to the economy as
consumers, are they going to stand with president trump? what we are seeing now -- jen says it is not significant -- but there is a loosening of what has been a pretty solid support for president trump both on his policies and others. it is not just the conversation being had about the trade war, it's also about the broader economy. consumers, voters in the heartland are starting to see not only do they not like where the economy is going, but they think trump's policies are hurting the economy. i agree over the next couple of years you'll see these sentiments change, but the fact that we are seeing a loosening and what has been a solid base for president trump, is significant. if they are not going to stand with president trump on the economy, who are they going to stand with on the democratic side? up with a plan that says i can address your concerns? as you say, not the ceo concerns, but the worker
concerns. jason: great question. as we look now, we are having this winnowing of the democratic primary, looking to the next debate. that is the question we should be asking for the debate stage, but also as these candidates are engaging in battleground states across the country. four and half years in the obama administration and am now a business owner myself that works across the country to help ensure economic development benefits the communities were that development is occurring. what i hear from small businesses and from those individuals, employees, which translates into votes, they want to see somebody meeting them where they are. there is a significant challenge -- jen mentioned for the first time that people have been frustrated about finding work. but we still see a challenge of employers trying to find workers. when you think about how we will
build the capacity of our workforce and build a small business infrastructure necessary for an economy to grow, we have to look at those candidates that will meet these policies in the heartland. david: we know that you like the red team, jenn. is there anybody on the blue team that you think may say something sensible about the economy? jen: it is hard. if voters don't like trump's policies on this, imagine elizabeth warren. president trump could make the case here against the establishment of wall street. these are the same analyst and networks who predicted the stock market was going to crash within three days, 72 hours, that they would crash, would set up a global contagion it donald trump was inaugurated. that did not happen. president trump could make a populist move, and he has started to do that, saying these guys want me to fail, they want the american economy to fail. that hen make the case
wants americans to fail, he will right. it goes back to that hillbilly eligy thing. david: that sort of thing you think the white house will righ. it goes back to that hillbilly pull, payrolls? ago we talked about 10 days about this. now congressmen are asking, should there be another stimulus? i think we need another stimulus going into 2020. the holiday season could be rough with the china tariff war, will, just the nose in time for the president's reelection. david: jason, you mentioned a winnowing. who should get out next? jason: we have 10 candidates on the debate stage. david: jason, you mentioned a winnowing. what is interesting out the procedure, just because you cannot participate in the debates does not mean that you are out of the primary.
if you are going to not be able to participate in the next two debates, that probably means the opportunity to accelerate through this primary has passed. but what is interesting is this is an opportunity to show what their campaigns are about. i wasolks have an all strategy, new hampshire strategy. one of the biggest controversies bbed at theng lo democratic party now is the process by which this was undertaken. how do we go about winnowing this candidate population for the debate stage?i would have liked to see that polling be on equal standing, as the broad-based support and donor fundraiser numbers. you can demonstrate you have support on the fundraising
side or on your grassroots and groundswell campaign side, both of which are necessary to build a broad base. point.at is a great the democratic party being not so democratic in their process. side or on yourthe real sleepere hillary clinton. she announced a few days ago she is going to hold a conversation, high dollar fundraiser per plate -- this could be listening to her 3.0. there is still a lot of time left. still five months away from iowa. a year or more away from the general election. what we can be certain of is there is much uncertainty. david: any chance hillary clinton gets back in the race? jason: she does not return my she once did, so i cannot make any predictions. jen: her staff still returns my texts. david: whatever that means. this is bloomberg. ♪
warren is known for her strong positions on taxing both and redistributing income and progressive social policies. so it may come as a surprise that she wrote a book called "all you're worth" about personal finance. rhinebeck worth is here to tell us about this. i just learned about it this morning but it sounds like a pretty good book. >> i spoke with a number of people who had used the plans in the book to get their finances under control, and it takes a different tack than the other personal finance books out there. instead of trying to get you to give up coffee every day or cut back with the small things, it says don't worry about the details. look at your big picture. so you set aside your budget that 50% goes to the things you absolutely have to do?
30% goes to the things that you like to do, and that includes your cell phone. you don't need a nice cell phone plan. 20% goes to paying down debt and saving up for the future. people who use it say it work for them and also allow them to be happier because they could keep getting a cup of coffee every day. david: it was written 14 years ago but it is interesting to read it now. even in retrospect, it is fairly consistent with things she is saying now, for example, the big banks are not necessarily your friend in helping you get ahead. >> the book is like a preview of her campaign. she advises paying off your credit card debt and prioritizing that. her campaign says let's pay off your student loans with a government program. asidesk talks a lot in about how the system is not working for everyday americans but also has an optimistic tone, unlike bernie sanders.
it says the system is not working for you but we can beat it, and here is how. i think her campaign follows a similar tone. david: about 6500 copies in print. still pretty respectable. >> probably more of a cult following than other personal finance books which you are familiar with. 50 3020,u look for you'll see a lot of references to personal finance sites, people on twitter writing about how they use that plan. david: thank you so much, ryan. coming up, "real yield" with jonathan ferro talking about the latest moves in the bond market. this is bloomberg. ♪ ♪
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jonathan: from new york city for our audience worldwide, i'm jonathan ferro. bloomberg "real yield" starts right now . coming up, closing out a chaotic august, following a big month for government bonds. growth anxiety lingering with another round of tariffs set to hit next month. president draghi facing down the central bank horse. we begin with the big issue, a month to month for government debt. >> you have a big rally. >> huge rally in the bond market.