Transcripts For BLOOMBERG Bloomberg Best 20170902

And a job number that is very good. This is a weak report. Conversations on markets across the globe. Good but i dont think growth can be sustained. Largerrtainty dampens m a transactions. Warren buffett raises his stake in bank of america. We will be getting 30 plus Million Dollars more annually from owning a common than a preferred. Speaks aboutihan the high stakes of regulatory reform. Capital liquidity is important. All straight ahead on bloomberg best. Hello and welcome, im julia, this is bloomberg best. Your weekly review of the most important Business News, analysis and interviews from Bloomberg Television around the world. Last weekend Hurricane Harvey began to batter the u. S. Gulf coast and the city of houston. On monday the big storm was the big story. Floodwaters overwhelmed a swap of houston as harvey continues to inundate theheastern texas leaving fourth largest city in the u. S. With an unprecedented level of rainfall and crippling the energy industry. Give us some perspective on how big this is for the industry . Unprecedented. We are seeing places flood that dont normally flood. If you are familiar with houston that is a place that does not take water on well. In terms of the industry itself, we started to see the refinery outages rampup. Are after harvey hit we seeing more shutdowns as the storm moves from west to east and hits the major infrastructure in the region. What we are looking at is a production, demand, and refined product impact. Time, since the shale boom, we are seeing this impact a key export hub for products in crude. I have a chart on the bloomberg looking at gas prices. A surge as the storm rolled in, we now see a twoyear high. A lot of the refineries have been taken offline. That is where you a c gas prices spike in the days and weeks to come. The japanese Prime Minister shinzo abe saying north korea has fired a missile that passed over japan airspace. It appears a north Korean Missile has flown over japan. We have began to gather information and analysis and will do our best to ensure the safety of our people. The government sought to assure citizens, it is aware of the situation. It made a decision not to shoot the missile out of the sky because it determined it was not headed for japan. It has also tried to assure thele that they were on same page with the u. S. And south korea and in touch with leaders. The government has stepped up pressure on china and russia to take a greater role in trying to tame north korea. Jonathan moments ago President Trump released a statement. This regime has signaled contempt for its neighbors. For minimal standards of international behavior. This only increases thr isolation. All options are on the table. I dont think a military response is on the table. Or ar as sanctions financial response, all of that is being examined. We have breaking news out of china. ,he foreign minister saying china does not favor unilateral sanctions against north korea. He is saying that china is working with the United Nations on responding to north koreas missile test. Aof a collectible collective response is what china wants to see. An emergency session about how to respond to the latest test. The toughest sanctions yet on pyongyang. The world is united against north korea. There is no doubt about that. They admonished pyongyang today with strong words but with a back that up with strong actions . Reported the newspaper , that japan and the u. S. Will be pushing the un security an oil embargose or strict Oil Sanctions on the north koreans . President trump kicked off his campaign to overhaul tax policy. He just finished speaking in springfield, missouri where he pushed congress to reach a deal on taxes. Toim fully committed working with congress to get this job done. I dont want to be disappointed by congress. Do you understand me . Did we learn anything from the speech about the direction of tax reform or was it just a speech . It was just a speech. It got the ball rolling publicly. Republicans have been working on tax reform for quite some time but this is going out in public and making the case. Theails are not details are knotty. We are going to cut taxes and that is a tough sell. Lets focus on the cost of harvey. New analysis from a risk damages firm focuses on from inland flooding. They say it could reach as high as 90 billion. The storm made landfall as a conventional hurricane and wandered over to houston and it has become the largest metropolitan flood in u. S. History. A momentent trump took to offer support for texas and louisiana. There has never been something so extensive in our countrys history. That moment revealed how the storm may add new limits to trumps goals of historic tax cuts. When lawmakers come back after august recess, many want to attach relief to a shortterm spending bill and or to a debt ceiling extension or expansion. As you recall, President Trump had talked earlier of forcing a government showdown shutdown, it is not met. There are fiscal conservatives who want any spending increases to be offset in some way. We have a new dynamic entering the mix. Chances of ace the shutdown because of the optics and the reality of lawmakers not wanting federal services to be suspended. Also adding more cost to the mix. They have to be offset from somewhere. It is jobs day in america. Of the past four months, august results have missed for the past six years. Jobs wereare 80,0 added to the economy in august. Michael mckee is at the labor department. Another disappointment. To Unemployment Rate rises 4. 4 . That is not all. Earnings up 1 10 the annual rate , unchanged at 2. 5 . Inflation, is increasing only at 1. 4 and it is down from 2. 1 only six months ago. I think the fed is focused on wages and inflation. To the extent that it is reflected in that. This is a weak report. If you look at the data this week, we had a gdp number of 3 . A jobs number that is still good. If i would have told you at the beginning of the year or at inauguration day, we would be a 3 gdp and 4 unemployment you would have said those are good numbers. That would be an amazing compliment by labor day. Byrall we are very pleased where we are in the economy and the cycle. There is still a lot of work to do an upside and the president is focused on that. That is why we launched the tax agenda this week because we think we can grow the economy much further from here. Still ahead as we review the week on bloomberg best, conversations with Brian Moynihan and the banks biggest shareholder, Warren Buffett. Exclusive from jackson hole and up next, more of the weeks top business stories. Largest Energy Company in china. The total assets will be in the billions. This is bloomberg. Julia this is bloomberg best. Lets continue the global tour of the top business stories. In Silicon Valley where uber found a new ceo. It is official. Expedias chairman confirming. To lead been tapped uber. Kallick, leftvis the company. Travis and his allies were ceo,ng for a former benchmark and its allies wanted atceo and they were loggerheads. The dispute has turned to litigation with benchmark suing travis in court. Dara is a great pick. This is a sign that perhaps, it will be his first job, to repair divisions on the board. Met withng ceo dara employees wednesday and he thinks the company should go public in the next 18 to 36 months. That seems far to me. It is a distant thing with lots of hurdles in the interim but this is a guy, who ran a Public Company for a long time. He understands the importance of going public at some point. Whole foods just got cheaper. Amazon completed the purchase of whole foods today. Prices on items from fish to produce have seen prices slashed. Theyre down as much is 43 on certain items. They particularly markdown produce like avocados, apples, bananas, things like that that people think of as whole foods staples. One major changes when you walk in the door there is a whole stand of amazon echoes. They are now selling echoes inside the whole foods in manhattan. The biggest deal for a Breakthrough Cancer treatment that will help diversify the company. To an extent. They have been saying for more than a year that they need to go out and do something big. Planning on taking billions of dollars in cash which they earned from hepatitis c drugs and seeing how it would diversify the company. Did we expect it would be kite . It is one of many names that has been talked about as a potential takeover for someone. To an extent, yes. Today, the announcement surprised a lot ofeople. The Worlds Largest Energy Company, merging the company the countrys oil company with power generators. This is an enormous scale. This is huge. We are talking about an opportunity between the countrys top coal miner and the countrys largest power generators. In terms of the size and scale, total assets will be 271 billion. They will be generating revenues, the second largest amount in terms of Power Companies in the world. In terms of capacity, they are number one. What this points to, this merger, is a new direction for soa reform. Merging state owned enterprises within sectors to create synergy. This is an example. We expect more in the power sector going ahead. Apple is planning to change the way you use your phone. We have less than two weeks from the unveiling. A major feature is missing. The home button. Ahead of the release they touched another record high yesterday. Walk us through what we have learned after viewing this . They have seen images of the new phone and the biggest thing that people will notice is a lack of a home screen. There will be a gesturebased way in which you turn on the phone as well as cameras to have facial recognition. Your phone will see your face and open. More real estate for the screen to be bigger, it is also supposed to be thinner and be faster and have an improved camera. Apple is joining the battle for toshibas chip business. We heard rumors that apple might be in the mix, what is the latest . What is behind their interest now . There are as many plot twists as game of thrones. The shiva has been trying to selloff the chip unit four months. They desperately need the cash. Toshiba has been trying to sell off the chip for months. Apple is jumping in. Is still in flux according to sources we have talked to. Past, it was 19 billion for the unit. They need to figure out what they will do about western digital. They are a partner with toshiba and have taken to the courts to assert its rights in deciding who will get this company in the end. The signs of strength for the economy in china. The official factory gauge rose in august compared to the forecast. The latest indications including the pmi and a range of indicators suggest it is steady as she goes for the chinese economy. The official pmi beat expectations. August,n at 51. 74 pointing to acceleration and growth. Digging into the details, the underlying indexes were positive. New orders picking up. China corporate up ins, we will see a big input and prices suggesting the industrial Profit Growth story could be sustained for a few months longer. Mario draghi may need to act with caution. Discussing the stimulus plan. Inflation in the area picking up more than forecasted, underlying cost pressures failing to accelerate. Is it the core rate of inflation, david, that we should be focusing on ahead of the ecb meeting next week . The core rate of inflation was steady at 1. 2 and the headline number was entirely driven by fuel cost us. Fuel costs. Contrasted to august of last year, that caused the increase. Little interest to policy makers because they have to look at domestic regenerative cost. Brexit, the latest round of talks has ended in a stalemate. Both sides deadlocked on the divorce bill. U. K. Is clear that the does not feel legally advised for the obligations after departure. Continue to Work Together constructively for people about the process. Weeky progress made this in round three of talks . Not at all. There were technical words and progress made on some of the complicated stuff but when it comes down to the politics, these sides are as far away as they have ever been. The Biggest Issue is this bill, the financial settlement, that the eu wants the u. K. To p which could be as much as 100 billion euros. The thing is, it is becoming notr today, the u. K. Is thinking it owes anything. To try to bridge that divide is almost impossible. Lets get to a bloomberg exclusive. The ecb meets next week to begin , but a discussions final decision could be delayed until december before the current plan expires. They have a lot to do and not much time to do it. Next wednesday and thursday, the bondolicy meeting, the purchase program, not just that. In the context of the wider stimulus measures, suggest there is little chance of a deal in september. The people we spoke to said the complexity of this means you cannot rely on october 26 either. The policy meeting of december 14 maybe the one where he where the final details for 2018 get to be announced. Julia you are watching bloomberg best. Im julia chatterley. , buying 700tt million shares of bank of america, locking in a gain. David westin spoke with Warren Buffett about the decision. The dividend we will get now, bank of america has increased their common stock dividend and now will get, we will be getting 30 plus Million Dollars more annually from owning the common rather than the preferred. If the dividend on the common got to where it exceeded the preferred we would exercise the warrant. It was fairly automatic. Is this consistent with your overall philosophy, finding management you believe in and investing . Management we like. Book on bank of america that years ago and it has an amazing history. They got in trouble. They made acquisitions countrywide that caused them trouble. They were insignificant trouble but that is like a great athlete eating in the hospital for an accident. Accident forout of a while but you have to get him back in shape. I came in at a time when people were critical of the institution and the management and i believed they were wrong. I got the idea in a bathtub in 2011 and i called Brian Monahan and we made a deal quickly. David bank of america is dependent upon the rates. They are in the retailconsumer banking business. Do you think, where is that going . You are right about what you say but they are doing fine currently. They had troubles from the past. Brian, whether those one by one and some were very expensive to solve and some were timeconsuming. I knew he would get the job done. It took years. It was a tough job. They are a retail bank. Compared to jpmorgan or Something Like that. It is quite an institution and it will do better earnings wise if rates move up. It is doing well now. It has been doing better quarter by quarter. David you own 7 of common stock shares. Take it out five years, is it more likely to be 10 or 3 . It is likely we dont sell any. They have a history of repurchasing shares. Will go up if they repurchase more shares than they issue. I would guess our percentage interest would be higher, three years from now. Coming up on bloomberg best, exclusive interviews with Brian Monahan. Thorny issues like bank regulations. Volcker is too complex by everyones admission. This is bloomberg. Julia welcome back to bloomberg best. I am julia chatterley. Last week, central bankers gathered at the jackson hole economic symposium. In addition to speeches by janet yellen and mario draghi, plenty of conversations on the sidelines. Lets start with boj governor haruhiko kuroda. He sat down for an exclusive interview with our kathleen hays. In the u. S. And in europe, inflation rates are actually close to their target, close to 2 . In japan, the inflation rate is still 0. 5 , far away from our 2 target, so there is some difference between u. S. And europe on the one hand and japan on the other hand. Wages are not rising so fast, that is true. Mostly in japan, but prices are not rising. Here there is some kind of differentiation in the mindset, strong among business leaders, labor union leaders. They tend to be cautious in raising prices. So what companies are doing is they are heavily investing in labor, equipment, and so on and so forth, and also they are changing the Business Model so as to reduce labor content. By so doing, despite some wage increase, it has not been rising, so they are not required to raise the prices. Kathleen but they are doing well. Gdp growth up six quarters in a row. That has not happened in japan in years, you are exceeding on growth, and maybe something has changed to the degree that does inflation matter so much . Japanese households like low inflation if you have the growth. Two things, one, 4 growth is good, but i dont think 4 growth can be sustained. Probably around 2 growth we can attain this fiscal year, and even in the next fiscal year, close to 2 may be possible to attain, but 4 growth is somewhat unusual, but i am quite sure that this 1. 5 to 2 growth can be sustained in the coming years. I think we have been consistent on the strategy of looking at the economy, our medium run outlook, moving a little preemptively in terms of we dont want to wait until both of our goals are met. We have learned over time that is not a good strategy. We have been gradually moving. I think the gradual part is very important. We are well below what a taylor rule or other rules might tell us where we would be at this point, so we have been patient, gradual, and i think it has done pretty well for the economy. Do think the pace has been appropriate . Do you see any reason it would take up . There has been some concern, Financial Stability concerns expressed, prices of assets elevated. Do you see any reason why you would want to move faster . We will always be concerned about Financial Stability. That is a lesson we have learned. These issues loom large, especially as Interest Rates have been as low as they have been. You are right, there are some pricing in the equity markets that look different than historical values. I think part of that is generated by earnings, but also because Interest Rates are low, so we are focused on that. Right now, i do not think that is a significant risk, but that is another factor that feeds into my view that a gradual reduction in accommodation is appropriate for where the economy is now. Julia Interest Rates were just one issue. Several investors discussed the state of Global Markets on Bloomberg Television. David westin spoke with ever core cost evercores ceo on the impact geopolitical issues have on m a. The hardest thing to measure in the propensity to do m a is the confidence or what is sometimes referred to as the animal spirits of corporate leaders. Easy to measure is equity prices are good today, debt is accessible and reasonably priced, the economy is growing at a reasonable pace, so all of those things support m a activity. The one critical component which there is no governmental statistical measure of is how confident do ceos feel and how predictable do they feel the next 12 months. Nobody wants to do a deal right out of the gate that looks, why did you do that . David [laughter] and so, uncertainty definitely dampens particularly larger m a transactions. David so there is uncertainty and valuations. To what extent do they say valuations are high and they look like they paid too high . By the rations, you have to remember of the valuation of the buyer stock is also high, so some of these transactions are done on a stock for stock basis, so you are trading one fully valued currency for another fully valued currency. Second of all, debt is very available and very cheap. Literally any transaction that a company does for cash, for debt, is accretive and pretty strongly accretive. That is not the way i believe you should measure a transaction, but in the short run, it does have a very positive effect. Are passive instruments and etfs in particular distorting the stock market . I think they are temporarily distorting the market because they are distorting individual securities. People by the same names that are the big weights of the index and push them higher and higher. That will not be able to last for the longterm, which doesnt make sense. Is this why value is out of favor as a style . For sure. The value stocks are what i call orphans these days, just left out and become smaller parts of the index, less and Less Research being done on these companies. They are neglected orphans. What about the fact that value managers are underperforming . That surely has to play a role. Right, it becomes a selffulfilling prophecy in the short term. We have learned over these years, that once everything becomes a common trend, everyone believes in, everyone thinks these orphan value stocks will underperform, once that becomes conventional wisdom, it never plays out that way. You have been at this 34 years at ariel, and longer if you include your career before that, relative to what you have seen, john, how would you characterize the stock market now . It is an interesting time. I think there are some pockets of opportunity that are really special. You do your homework now, it really can pay off and you look for these names where they have been neglected, misunderstood, and left out. I think this is a fun time to be doing research, thinking about industries and sectors where there can be some hidden gems there. Julia lets revisit erik schatzkers exclusive interview with bank of america ceo Brian Moynihan. They sit down on the day that Warren Buffett became the banks largest shareholder, and the conversation began on that topic. Erik what kind of input are you hoping to get from Warren Buffett . I think you would say the same thing, he has owned our stock for six years. It is not something he did in the last 24 hours. He has been a big shareholder and a contingent interest. I talked to him once in a while. He likes how we are running the company. Erik he said that to david. I dont think he would invest if he did not like what we are doing. Our job is to continue doing a good job. Erik the Treasury Department has proposed regulatory reforms for banking. A lot of those can be accomplished without congress. If secretary mnuchin were to get everything done that he wants to get done outside of legislation, what would it mean for your bottom line . It would be good. I dont have a number for you. It would be good. If you think about, and there are three or four things that are important with what is going on. Number one, the leadership in the agencies, there have been proposed people. Second, there are rules that have been pulled back or rethought. Then there are rules that have to be changed and tax legislation. What the secretary did is get input from investors, analysts, companies, advocates, professors, and so here is the set of principles we have to fix. The key one for us would be capital, liquidity requirements and Technical Rules in capital, and allowing more access to our capital account when we have 20 billion excess after the stress test. Let us put that back in the market so somebody can use the capital because we dont need it to grow. Those of the most important things for us, capital, liquidity and things like that. Erik oversight . Voelker is too complex by everybodys admission. The question is what would that principles preventing and can you make it a straightforward execution . You have fivesix agencies working on different sets of principles. They all know it is too complex. The question is how we will go about it . He has proposed how to make it simpler, and now we have to figure out what we mean by that. We dont have proprietary trading. That is what we are not supposed to do, and we are not doing it. The question is how many times do we have to prove it . Thats where it gets a little bit tricky. Julia you are watching bloomberg best. I am julia chatterley. Lets return to our review of this weeks top business stories with earning reports from companies around the world. The Worlds Biggest Oil refiner sinopec trading lower,. 5 , this after posting a 40 jump in firsthalf profits. Another leave from a Chinese Energy giant, but you have to say this is down to downstream operations. Clearly, rish, yeah. The stronger oil price around 53 a barrel, up 30 from last year, is a key part of what we are seeing in the positive results across the three big major Energy Producers in china. Sinopec joining the others who reported last week stronger earnings. It is the best profit in the first half for sinopec since 2014. Net income up 4. 2 billion, so the chemicals unit in sinopec that is driving and has driven the firsthalf profits. And that stronger crude price. Vonnie shares in best buy down as much as 11 , facing the biggest reversal, the biggest intraday decline since january 2016 despite earnings that show the best sales growth in seven years. Earnings for best buy were actually very good. You mentioned they posted the best sales growth in seven years. If you look at my terminal, it shows that there. Sales growth of 5. 4 was double the forecast last quarter. The company also increased its forecast for fullyear profit and revenue, so we initially saw shares rising,ut when the ceo got onto the call, he sounded very cautious. What he said was todays good results cannot the scene as a that new normal, and the level of growth may not be sustainable, particularly the Fourth Quarter around the Holiday Season when we see a lot of promotional activity. It is very competitive. It was the ceos comments on the Earnings Call that sent the shares tumbling today. It appears to be another nail in the coffin for athletic leisure. The latest warning sign comes from finish line, which cut its annual forecast. Shares at one point falling the most on record. You are looking at a spillover affecting Companies Like nike and under armour and foot locker. That has been the bright spot, athletic apparel. The fear is that if that goes away, what will replace it . Is there going to be a big fashion trend . For the Sporting Goods guys, this is a big problem because theyve gotten used to inflated sales, and going back to normal will not be good enough for investors. For everybody else, it could mean we have to find a new trend. To what extent do you think retailers were caught off guard by this . That they were not positioned to take advantage of this change in brand . I think it is a big problem for retailer across all apparel retailers, they moved too slowly. Chinas biggest banks beat earnings for the Second Quarter, benefiting from resilient Economic Growth and the governments deleveraging campaign. Bank of china was leading the pack. They saw net income increased by 23 in the Second Quarter. They are one of the top four banks. The other three all saw an average net income increase of 3. 5 . The strong, robust economy has helped, but it is the net interest margins that have been pushed up, particularly as a result of interbank lending. These four lenders are lenders into money markets. Those rates have been pushed up. Benefits of big banks, not so much the small banks. The other point of interest was Wealth Management products. Those have fallen off, but more traditional loans have picked up strongly on the flipside, suggesting the government is having some success in deleveraging but giving credit to the real economy. Jonathan gas over d so. Porsche released a model with improved fuel economy. The car company will also offer a plugin hybrid version. The question now is the future development and you said the so the use of d so feel in technology diesal fuel and technology. We will have to see now, but the Diesel Engine and Combustion Engine will be important for a long time to come. One should expect the Combustion Engines to stick around for a while and to set a date for when these engines might no longer be there is too premature. Diesel is important for maintaining Carbon Dioxide levels. We would not be able to reach the lower thresholds without it. That is why they will always be a mix. Matt it seems like they are phasing out diesel to some extent. They said it is not important to their dna as a company. It is important to the larger industry, their Parent Company volkswagen, as well as mercedes and bmw, but to porsche itself, diesels only make up 15 to 20 14 to 15 of their sales worldwide. They were easily able to raise them out of the u. S. Market in phase them out of the u. S. Market in 2015. It looks like they will be able to do that here, as well. If you are driving this weekend, get ready for higher gas prices. The pipeline that runs from houston to new jersey, they shut their supply down because they dont have the supply. The blue line is the Colonial Pipeline. The red dots are the inverted spread between branded and unbranded gas. It basically means yellow dots show unbranded gasoline is now pricing higher than branded gasoline. Talk me through the supply issue. What is not getting to Colonial Pipeline and how long will that last . The main problem is a lot of refineries are down in texas. That is the main reason why the Colonial Pipeline cannot supply. It does not have enough gasoline to supply the whole area from florida to maine. The main areas of risk are florida, north carolina, south carolina, virginia, and georgia. Those areas really rely on the pipeline. The situation is not as bad as it was 10 years ago when katrina hit because inventory levels in the region are much higher. Indias economy grew at the slowest rate in three years. Companies and retailers spending ahead of the nationwide sales tax rollout. Fifth straight quarter of slowing growth. It has been difficult for Prime Minister modi to stimulate growth. Gdp in the Second Quarter at 5. 7 from a year earlier. Economists were looking for 6. 5 . It was 6. 1 the quarter before. The main reason has been uncertainty over gst rates. That affected the Manufacturing Sector badly. Remember, this was the Second Quarter performance after gst kicked off on first of july. Companies in the manufacturing space were destocking goods and products and not producing because they were not sure about the tax rates applicable under gst. Added to that is the lingering fact of demonetization and how that would play out as well. This is not good news. And economists say this is disappointing. The growth has fallen when they were expecting a rebound. Interesting to note is the function for all our bloomberg subscribers out there, ratt. This is bloomberg Credit Ratings trend function. I typed in fitch, the region china. Take a look, it has upgraded 17 chinese companies, downgraded 14 this year. Vonnie another great function is refo , refinery outages and events. You can see in the bloomberg is you type in u. S. Gulf coast, almost 2500 are out. Julia there are around 30,000 functions on the bloomberg. We enjoyed showing you are favorites. Maybe they will become your favorites, too. Here is another function you might find useful, quic. It will be due to our quick takes, we can get important takes from this week. Here is a quick take from this week. Fish are a renewable resource. Large numbers can be caught with little or no effect on the population because of natural reproduction. At least that was pposed to be the case. Today, 90 of the worlds fishing grounds are being fished at maximum sustainable rates, or overexploited, risking total collapse. Fish accounts for 20 of the Animal Protein consumed by people all over the world. Here is the situation. The United Nations food and Agricultural Organization concluded fish stocks have continued diminishing since the 1970s in the worlds oceans and seas. The situation in the mediterranean and black seas is alarming. Catches have fallen by a third, since 2007, and 59 of stocks are over fished. Advances in Technology Like sonar and satellite used to locate fish have sent catch rates soaring and commercial trawling nets practically vacant. Then there are countries like china. It now sends boats that encroach on traditional fishing grounds of other nations. Here is the argument. Fishing regulations can only be set by governments in their exclusive economic zone, which extends 200 nautical miles from shore, but they have been mostly ineffective. They dont seem to curb the stress put on the fish population. Another approach that has been more successful are catch share programs. These grand a portion of the allowable harvest to individual fishers, communities, or companies. They can use it to catch fish or sell the rights. Since fishers want their shares to rise in price, they have incentives to maximize value of the catch. Fishing when demand is highest, slowing down and spawning slowing down during spawning season, therefore limiting damage to fishing stocks. Another potential fix is agriculture or fish farms. In 2014, farm raised fish surpassed wild caught fish as a source of food for humans. This solution may come with an environmental price. Critics are concerned that fish farms are damaging coastal ecosystems by releasing pathogens that harm populations. Relocating farms further inland and using a system to remove harmful contaminants are being experimented with has potential solutions. With worldwide demand for fish increasing, for once it is fish not being around that is starting to stink. Julia that was just one of the many quick takes you can find on the bloomberg. You can also find them at bloomberg. Com, along with all the latest Business News and analysis 24 hours a day. That will be all for bloomberg best this week. Thank you for watching. I am julie chatterley. This is bloomberg. David at one point, your father left your mother. Ginni it was sudden, and my mother found herself with four kids, no money. David lets talk about ibm for a moment. Ginni we are the champions for business. David when you are meeting with a president or other president s, do you see ceos willing to say, mr. President , that is not a good idea . Ginni people are respectfully honest and give their opinions. David do you feel a certain responsibility . Ginni women do need role models. We are still a small minority that runs these companies. David you stay in the fit category. Ginni i do box with a person. He does not get to hit me. [laughter] would you fix your tie, please . David people wouldnt recognize me if my tie was fixed