i'm erik schatzker. this is open quote bloomberg best," your weekly review of the most important business news, analysis and interviews from bloomberg television around the world. this was the week prior minister -- prime minister theresa may promised to trigger article 50. starting britain on its long and potentially painful breakup of the european union. but on monday, a multinational merger took an important step forward. >> the european union approved the proposed $77 billion merger of dow chemical and dupont saying the companies have , addressed its concerns. what sort of concessions to the -- concessions did the companies have to make to get the stamp of approval from the e.u.? >> the concessions are pretty big. dupont is selling most of its global pesticides business and its r&d business. dow is selling petrochemical as well. and the r&d angle is a surprise. it is quite extensive. the european commission explained it was concerned with innovation in the market. there are few companies that can dis

he is here with erik schatzker. erik: thank you. it is great to have antonio back. let's start with the 2016 bordeaux, how good are the ones? antonio: they are fantastic. great fruit, great intensity. it has this great freshness. this is a vintage you can enjoy at all quality levels. we will see a couple of iconic superstar wines that we will read about in 20 or 30 years. erik: the term vintage of the century gets thrown around a lot. is this the vintage thus far of the 21st century? antonio: it is too early to say. we will see as they get bottle. there is a lot of promise. erik: does it feel to you that

he is here with erik schatzker. erik: thank you. it is great to have antonio back. let's start with the 2016 bordeaux, how good are the ones? antonio: they are fantastic. great fruit, great intensity. it has this great freshness. this is a vintage you can enjoy at all quality levels. we will see a couple of iconic superstar wines that we will read about in 20 or 30 years. erik: the term vintage of the century gets thrown around a lot. is this the vintage thus far of the 21st century? antonio: it is too early to say. we will see as they get bottle. there is a lot of promise. erik: does it feel to you that this has as much promise as the 2009, 2010, or even 2005? antonio: this will play in the realm of the elite advantages. erik: the scores you have released on the 2016 bordeaux futures are a big deal for you personally. why? antonio: this is a region i love. five years ago, my former boss asked me to be ready to review these when he retired. these are big deal for me personally as i spent a lot of time heading to know the region and getting to know the area. erik: le

joining us is erik schatzker in buenos aires. he has a special guest. >> he is the ceo of -- you have built an integrated argentine energy company with refining torom generation to transmission to distribution. are there still pieces of the puzzle missing? >> when you are a businessman and entrepreneur, you are always going to grow and generate employment. on that acid-base we have invest.ted a lot to we recently bought a construction company. the number two in the country. the infrastructure is a key part of the presidency plan. >> beyond that you go >> we have a to 10% of all the surface. we have a percent of that. then a first formation. >> tremendous potential. it has been hard to develop. there a learning curve. through that formation. in the states it took several years and many thousands of -- we already have experience. >> you are selling some gas stations. >> are idea is we want to focus more on the production of gas. >> have you found a buyer for those assets yet? how long do you think it will take? >> it'll take anothe

he was a senior treasury official in the bush administration and erik schatzker asked him back in 2015 what he thought about policy. >> i am all for transparency and i think the fed has that right. what is wrong is it continued -- it continues to believe it should not follow the rule. if you are going to be transparent, you have to be moral rule-based and what you are doing. us now is erik schatzker who conducted the interview and also michael mckee , economics reporter on the fed. york bureau chief who knows a lot about randall's background. like he is happy to do .he job and is qualified eric: you get as much as you need into how he thinks and his appointment to the fed would be with the history of the financial legislation under the obama administration. he believes in a rule-based approach, much like what we heard at the house financial services committee p he also believes fannie and freddie should not exist and he believes rules should be -- -- he believes some of the things that were done in the post crisis period were poorly thought out and put a clean motivated and left us wit

oliver: thanks to erik schatzker with mercadolibre ceo marcos galperin. hearet: coming up, we will what the hyperloop one ceo says about building a system in the middle east. ♪ oliver: rex tillerson is making a statement in florida. himetary tillerson: to join here at mar-a-lago. he will spend time with their chinese counterparts. it will be very useful to all of us. it is an honor to receive the chinese delegation at mar-a-lago and build on the dialogue i began last month in beijing with president xi and other leaders in china. in the past 40 years, the united states and china have developed deep ties. this administration is committed to ensuring these ties for the next 40 years. we do desire to establish policies that maintain a constructive, cooperative and results oriented trajectory. high on the list of our priorities is an economic relationship that is fair on both sides. today will be a time to exchange candid views on the u.s.-china relationship and we look forward to additional discussions in the future on topics of mutual importance. as presid

matt: that was erik schatzker with the president of argentina. we will bring another exclusive withview later today, former u.s. treasury secretary jack lew at 6:00 p.m. u.k. time. mission to mar-a-lago. andese president xi president trump hold their first face-to-face meeting today. it will cast a long shadow over the meeting. in the wake of american protectionist rhetoric, president xi has cast himself as a champion of free trade and globalization. it's a delicate time for the chinese president and what is the equivalent of an election year and one party china. how can both leaders save face and leave the meeting with a win? economics isad of still with us, do you think is more important short-term at orst then the fed minutes what we hear from mario draghi? michala: i think it's an incredibly important meeting because it will tell us about the status of the world's two largest economies. it will be key in shaping what happens to global growth over the medium term. how much we see out at meeting today is another big question, but there is room

i am erik schatzker. this is bloomberg. ♪ >> he uses cutting edge technology to weave together sound design and sculpture. >> all of his work operates in a nebulous region between fact and fiction. was complicated for me to declare being an artist. to an artist is using objects. we are interested by ideas. >> i think all of his work operates in a very nebulous region between fact and fiction. >> he is not asking you to understand. >> his work is the opposite of an instagram photograph. he actually takes it three-dimensional. announcer: "brilliant ideas," powered by hyundai motors. ♪ >> ♪ i-d-e-a, ideas ♪ narrator: tate modern in the heart of london. at its core is the turbine hall, the most challenging exhibition space in the world. each year, the prestigious hyundai commission allows one artist to take on this vast space and make it their own. this year it is french artist

erik schatzker travel to argentina for an exclusive interview with president mauricio macri. argentina has a cordial relationship with united states, but now mauricio macri must establish ties with the new administration. he ask them what will be on the agenda. >> discussing about the future relations between both countries. have startedhat we with the obama administration. it is the base. believe we have a space to deepen relations and find out ways of mutual benefit and future cooperations. erik: he is a protectionist. you are a free trader. >> i leave him globalization. ways toe we can find increase relations between argentina and the states a lot, because we have very weak relations. erik: where does argentina fit in and america first foreign policy? spite of relations between argentina and the -- es, we have to talk erik: so you need to have a united front? >> we need because we are members, so we will work together on future relations. i expect we will find a way to improve and increase our commercial relations together with any other space of cooperation. for example,

he spoke with erik schatzker to discuss brexit and the french election. larry: i would say from our fears of the third and fourth quarter going into the first quarter, the fears have abated. we still do not understand what brexit will mean for the u.k.. i have been in constant dialogue with the administration and they asked us what our intentions are. we will stay pat and watch, until we understand what brexit means related to europe. what are the key elements that people have not talked about? europeans have been discussing items like, we want you to manage all european liabilities in europe. most firms use london as its platform for that. if they can find a way to force that type of behavior change that you have to manage, so you have to have your traders, portfolio managers in continental europe. that is the key, because if we have to move to europe to manage it, then the banks move their , iting desks and everything can be quite disarming and difficult. so until we know where that stands, it is pretty anti-trade. that is a real severe issue but a pivo

schatzker where her credit investor can earn a decent return with limited downside. are in the seventh or eighth inning of the credit cycle. >> in each market, you have to in the better credits hope that you can get them at a decent yield. but you can't. yes, it's very tough. get those and it's hard, which you emphasize, better credits were good yield? i think it's more important to emphasize the better credits. so you sacrifice return. >> exactly. i wrote a memo that said the market is what it is. you can invest in it and say i will not but the one thing you cannot say is i want a different environment. you can't make that happen. where stuck with this one, it's a low return world. how an investor functions in a low return world is very challenging. erik: after listening to the where yournings colleagues used the word harvest on a number of occasions. is now the time for oaktree to harvest but who is on the other side of those traits? be differently, who would dumb enough to take market risk in credits right now? about market risk, we sold an asset this week as you

vonnie: that was larry fink, ceo of blackrock speaking to bloomberg editor at large erik schatzker. time for our latest bloomberg business flash, a look at some of the biggest stories. jpmorgan has agreed to sell a portfolio of student loans to navy yet. --navient. the bank no longer makes student loans. navient is the largest servicer of you -- student loans in the u.s.. -- according to a goldman sachs study, victoria's secret and others rank among the highest among young shoppers with online presence playing a significant role. nike is second with technology determining a grand popularity. amazon was determined the favorite for men. that is your bloomberg business flash update. some headlines from the white house press secretary sean spicer's press briefing, he is holding it now. these are live shots. he has told us the president will host the palestinian authority at the white house on may 3. he is talking about the democrats going all in on the georgia race, and there is a runoff and a big loss for democrat. at live go on the bloomberg. this is bloomberg. ♪ ♪ surged asrgan s

later today, more on latin america, erik schatzker interviews the president of argentina at 3:30 new york time. tomorrow at 1:00 p.m. eastern time at 6:00 p.m. london time, david gura will have the first exclusive interview with former treasury secretary jack lew since he left the post, tests that on bloomberg television and radio. cannot wait for that. this is bloomberg. ♪ vonnie: steve bannon has been removed from the national security council, dan coats, and the german of the joint chiefs of staff chairman of the point jesus that back at the regular meetings of the nsc's principals committee. we will keep on reporting this story. let's get a check of the european market. nejra: stoxx 600 ending the day for it again, pretty much flat after some modest gains in between. how currencies and bonds are doing with sterling climbing for the first time in three days after u.k. services and pmi data , the 10-year gilts yield up after questions of the rally being overstretched. attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retir

my colleague erik schatzker troubled of when is on ice -- buenos aires for an exclusive conversation with the president. -- president of argentina. they face large fiscal deficit and high inflation. while argentina has a cordial relationship with the united states, they must establish ties with a new administration. erik asked what will be on the agenda. >> discussing about the future relations in both countries. when we talk on the phone, he believes we have started with obama's administration, is the base, and we should be be -- we should believe we have a space to deepen our relations and find out ways of mutually benefiting future cooperations. erik: he is a protectionist and you are a free trader. >> i believe that we can find ways of increasing the relations between argentina and the states a lot, because we have very weak relation. erik: on what basis, where does argentina fit in and america -- in an america first policy? >> in spite of what we can talk in terms of the regular relations between argentina and the united states. erik: you need to have a united front. >> we are g

erik schatzker sat down with henry mcveigh and how it marks to get some expert insight. >> let's talk about european growth. based on what you have seen, why is it surprisingly positive? >> we do a lot of quantitative models and on the ground research, it is the monetary policy. when you look at the ecb with the zero interest rates it has a stimulus effect on the economy. we saw a similar picture in the u.s. a couple of months ago were the monetary policy was moving forward but there is no cyclical ignition to drive the growth until housing picked up. that happened in the u.s. and in europe right now we see the house prices go up but not a lot of consumer lending activity, so the transition investors should look for is monetary policy with cyclical parts of the economy, including housing. right now, monetary policy is dominating but the base of you is that the cyclical components will pick up. >> what about fiscal policy and structural change? we lived through gridlock in a time of monetary stimulus. are the europeans doing a better job of governing? >> i am glad you asked. another th

coming up later, bloomberg's erik schatzker in buenos aires with the president of argentina later today at 3:30 p.m. eastern time. you can catch all of our interviews on the bloomberg with the function tv . this is bloomberg. ♪ [ engine revs ] [ screams ] [ shouting ] brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] [ [ screams ] ] [ shouting ] brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] i am scarlet fu. we have breaking news. the fed will be releasing rates at the top of the hour. at the last meeting there was not much said by chair yellen. we waiting for the headlines to cross. by 0.7%.00 is higher most investors saw reinvestment shifts warranted later in the year. let's check in with gina smiley at the fed. mentioned, theu key headline from these minutes sawthat most fed officials stopping reinvestment is appropriate. that resolves a couple of big questions. it involves nds,

mauricio macri spoke to erik schatzker. >> we are financing the fiscal deficit, bringing in dollars. obviously in a flotation --hange market you will have the more you borrow, more dollars come in, you lower the dollar local price. that's why we need to reduce the fiscal deficit. there's no other way. >> in a perfect world, you would have less inflation, lower interest rates, a weaker peso, and stronger growth, but you can't have them all at the same time. that me ask it this way. what's more important right now, stimulating growth were fighting inflation? >> you have to do both things at the same time. with lower inflation, we have bigger chances to grow, and you are defending the salary value of the workers. that's my name compromise. i need to defend the salary of the workers. that is reducing inflation. reducing inflation will accelerate growth because you will give more certainty to those ones that have to invest. >> what about that six-month period between now and october when everybody has to make a ,ecision about how they feel are wages rising, are they getting the jobs? >> t

the ceo, larry fink, sat down with our erik schatzker. we are fortunate to have larry us for shorter version of that interview. k: i will not submit larry to that revealing q and a. as david mentioned, black rock poster earnings. adjusted earnings per share, five dollars and quarter. looking for $4.89. perhaps, you have had long-term inflows of $80 billion, as david mentioned, revenue was short of expectations and so did operating income. there are people who wonder if it is a red flag. larry: i do not think so. and an fees, in line operating income, we had special charges where we prepaid a bond we noted was a $14 million expense in the quarter. charge we took that we pronounced with a restructuring of the equity area. we were very excited about the quarter. in anllion in inflows industry there predominately had outflows. what was great about the quarter was pretty broad-based. $44 billion in inflows in equities. $33 billion in bonds. both multi-asset and about $1.5 billion in alternatives. it was a pretty broad-based inflow, it was glob

oliver: erik schatzker is standing by where he will be introducing -- interviewing the president in just over a half hour from now. eric, what is on the agenda. just as the rest of the world is getting used to the idea of populist governments, argentina has had more than its fair share. 12 years under the administrations of nestor kirsner and cristina fernandez. was supposedmacri to be leading argentina out of populism. they say he has had some success , marketon a reformist oriented path but with midterm october, heoming in has had some obstacles. growth isn't fast enough and inflation is high. that is causing discontent and you can see it manifested in demonstrations. unions are coalescing about this idea that macri has not done enough it is in producing enough in the way of results, jobs and higher salaries. is one thinghere the president of argentina needs or that would help him, what ?ould that be >> the one thing he would love .o see are lower interest rates interest rates are high because the central bank is fighting inflation. if there is more it would stimulate growth, economic

here with the latest is erik schatzker with an exclusive interview with the president. erik: thank you very much. nice to see you again. mr. macri: i'm very happy that you came back to argentina. erik: thank you for having me back and thank you for having me to the presidential residence. what begin by asking you we will see tomorrow. the country will be paralyzed in some respects by a national strike. as you know, the rest of the thought that you were leading argentina out of its populist path. this looks very much like populism. what happened? we are leaning: toward being toward a countryble and reliable , but in the process of a , we still have minorities thinking that in the past things were better. the important thing is what saturday.n people have gathered around their homes to express that they really believe in what we are doing. they want to modernize the country. they want to be part of the world. have an intelligent approach to be part of the conversation, so we are feeling great support from the citizens and looking around at what is going on, not only in th

he spoke to erik schatzker. they: from our fears of third quarter going into the first quarter, we still don't know what brexit will mean for the u.k. i've been in constant dialogue with the may administration. they ask us what our intentions -- our intention is to watch. until we understand what brexit thes related to europe -- europeans have been discussing items like we won't do to manage all european liabilities -- most firms use london as their platform for that. -- you havemanage to have traders and portfolio managers in continental europe. that is the key element. if we have to move to europe to manage it, the banks will move itding desks to europe -- could be quite disarming. and difficult. until we know -- they are pretty and titrate -- anti-trade. that's a pivotal issue. beyond that, brexit is a wait and see issue. i think the prime minister is doing a very aggressive thing. the popularity of the party is very strong. andhe polling is correct there is an overwhelming win come it solidifies herself as t

was blackrock chairman and ceo larry fink in an exclusive interview today with erik schatzker. the u.s. equity indexes had the session lows and we still look at the nasdaq up by a hair. almost eight points. the dow and s&p lowered by about .3%. most major industry groups are down with only health care, industrials, and consumer discretionary positive. even there, it is barely positive. one of the big stories is the plunge in oil prices. huge collapse there. day, and in the afternoon. a big drop on inventory. that is dragging down the energy. out at: bill o'reilly is fox news. what does this mean for the the profitability of 21st century fox? we will explore. this is bloomberg. ♪ joe: fox news has announced the departure of bill o'reilly, bringing an and to a decade run at the tv network. paul sweeney talks about what it means for 21st century fox. and of itself, his show is the highest-rated show and generates the most revenue. 1% of the entire company's revenue stream. in itself, it is not that big. but if you step back and look at the cable business for 20th century fox, th

abigail: that was the cochairman howard marks with an exclusive interview with erik schatzker this morning. scarlet: it is time for the business flash, taking a big look at some of the stories in the news right now. this is cap into your battle of a culmination to complete the merger of the two biggest u.s. health insurers. according washington held up a lower court ruling by a 2-1 vote issued today. and ticker clb are shares were placed at $15 each, waving 225 million dollars that will go towards working capital, and other corporate purposes. they are backed by intel, which will retain a 19% stake in the company. airbnb is looking for professionals starting on monday. searchers can use a new tool to post or find apartments. abigail: and commodities coming to a close, we will take a look at oil and energy. this is bloomberg. scarlet: we have commodity markets closing in new york, celebs get started with sugar, which is higher today, but down for a 12th straight week, the longest losing streak since data on the contract began in 1961. been --agers have because of market surplus. meantime, o

here he is speaking with erik schatzker on why he is so positive on europe. we do a lot of quantitative models, on the ground research. just the monetary policy. when you look at the ecb with zero interest rates, that has a huge stimulus affect on the economy. a very similar picture in the u.s. a couple years ago where monetary policy was moving forward but there was no cyclical ignition to drive growth, until housing picked up. that happened in the u.s.. in europe right now we are seeing house prices go up, but we are not seeing a lot of consumer lending activities. the transition investors should look for is from monetary policy to the cyclical parts of the economy, including housing. right now, monetary policy is still dominating but if the cyclical components -- but our view is the cyclical components will go up. erik: so is it safe to say europe is two years behind the u.s. recovery? henry: that is fair to say. one thing we have seen also around the world is this trend of consumption over trade, and within consumption, a real focus on experiences. we hav

let's head -- had things over to erik schatzker, who's in washington with a central player in brazil's future. erik: few men could be more central to brazil's future than the finance minister, who is here with me in washington. thank you very much. good to see you here in d.c. welcome back to the united states trade let's begin with pension reform, and issue critical to result was future. you and the president are working hard to catch this -- pass this pension reform bill. event to make concessions to win support -- you've had to make concessions to win support. savings are now lower than they would have been when it was in its original form. if the room to make further concessions it necessary? when we present the reasonable proposal, we already dutchans to have some what you are mentioning as concession. actually it is changes proposed by congress. that, market was already priced in something like fiscal benefits of the outcome in proposal of about 70% of the reasonable proposal. as it is today, according to us being proposed today to the commission. 75% over 10out originaliod of th

i am pleased to say that erik schatzker joins us now for an exclusive interview. erik: i am delighted to welcome .ack howard marks good morning. this is what has been on my mind lately. if years or -- a few years ago, leon black of apollo famously declared that it was time to sell "everything not nailed down." is now one of those times? howard: you know, a lot of stuff has appreciated a lot since that statement was made. direction,atement of at any point in time, it is unlikely that you can get great prices for the things you want -- and buy buy that the things you want to buy. usually at any point in time it is better for one or the other. it was better then for selling and buying. it is still better for selling and buying. that for selling than buying. point, you can tilt in either direction, but now and then it tilts to the extreme. that is what i am trying to discern. are we close to or at the extreme? in other words, is there still room for assets in credit markets to appreciate further? if so, how? howard: since the crisis, i have been asked, what inning are

francine: erik schatzker will interview larry fink in about 20 minutes. their revenue missing estimates in the first quarter. much of the debate in europe over greece's debt crisis is the involvement of the imf. there's another institution, the urine debt european stability -- europeantablish stability mechanism established in 2012 to help troubled countries and the bloc. 2015 to theout in tune of 86 billion euros. we are joined by a stability mechanism managing director, klaus regling. thank you for speaking to us. how do you see greece unfolding? when will it have a near final resolution on greece? klaus regling: good morning. greece is an ongoing story. greece has received loans from european partners since 2010. we have always dispersed 190 billion euros to greece. in the third program which is 86 billion euros. we have dispersed and this program, 31 billion euros. we have another 15 months until august of next year. we are in the middle. we are talking about the next disbursement and the imf is looking at the situation and we are hoping there will be

guy: coming up later today, erik schatzker system with the argentinian president. live on bloomberg, live out of women's rs. bit -- buenos aires. this is bloomberg. ♪ ♪ guy: i am guy johnson in london and tom keene is in new york. in south africa, the rand starting to move, the dollar is up. president jacob zuma survives calls for his resignation. the party is circling the wagons. maybe now is not the right time ,or the amc to split up following the sharp firing of the finance minister only a couple of days back with set the story in motion. let's go to johannesburg. our economy and government reporter. why would the amc do this? >> they said that they will not be part of a campaign to unseat their own president. the party members are rally around jacob zuma, even of his cabinet reshuffle since the rand tumbling after it was the top currency in the world a week ago. borrowing costs are soaring. they said there was a breakdown in the relationship between the former finance minister and the president. theyis why he was fired are not enough of a reason, they said,