Transcripts For BLOOMBERG Bloomberg Best 20170226

The appointments President Trump has made very positive. I think what he had done with the muslim ban was not a brilliant idea. Hes a Big Personality and ds and he is a big job. David it is a barrage as earning season was alarming. Rolls on. We are alarmed but we are confident. I was not called by Warren Buffett in the last 24 hours. David it is all straight ahead on bloomberg best. David hello and welcome. I am david westin. This is bloomberg best your , weekly review of the most important Business News, analysis and interviews from Bloomberg Television around the world. Lets take a day by day look at the headlines, starting on monday, when a proposed food and beverage megadeal collapsed. Kraft has pulled their 143 billion for unilever two days after the approach became public, but the company said targets were reluctant to engage in talks after 3g capital, which only by half decided the negative response made a friendly merger impossible. It all smacks a little bit of a bizarre uturn, doesnt it . Politically, it would be challenging in the obvious way and i suspect that may have been the degree of certain leakage in the public domain, rather earlier than they may have wished. The moment this broke you had , stories telling the government that officials are looking for this and seeing whether they need to step in, and this is one just one jurisdiction. Unilever is headquartered in the netherlands, where they have pretty stringent controls in place, so if the company does not want to get taken over, the company will not get taken over and Warren Buffett has said that they were very clear, we will go where we are welcome. Unilever made it pretty clear that they were not welcome here, so they probably decided why waste all this time going backandforth and get into this ugly war of words when we dont have a friendly conversation. Friendly takeover target . Hsbc shares are falling in hong kong after cut fourthquarter loss and Interest Income and fees decline. Europes largest Bank Reported a loss of 3. 4 billion dollars for the three month ending in december. They also announced a 1 billion share buyback. We are very encouraged by some of the growth we saw coming through, particularly in asian markets for 2016, creating some momentum for 2017, but i would point out over the course of 2016, we managed to hold the revenues flat, despite it being the largest in commercial banking, and they are back in and grew them back in the markets business, which are corporate decline across the network around the world, but i think overall, the progress that the business has demonstrated the commercial business , demonstrated in 2016 has been very encouraging and the growth the Fourth Quarter gets us off to a good start in 2017. Vonnie a little bit more positive about outlook. I think it is because we still do not know when and what will come in terms of growth. The bank has done so much in terms of cost cutting and shrinking, but the vicious circle it is caught in, it has to be covered with more cost cutting so it will take a bit , more in terms of Interest Rate rises and general growth for the bank to start reaping the rewards. Fed minutes released today show fed officials ranging with wrestling with uncertainty of on issues with uncertainty on issues ranging from the Trump Administration to the rising dollar but they express that a hike would be very soon. There was one thing that caught my eye, which was a discussion about risks around the inflation outlook, so i want to read you this part here it , says some saw a risk that Inflationary Pressures might develop more rapidly than anticipated, while several others thought that progress in achieving the 2 inflation target might lag further is the dollar continues to strengthen, so it sounds like you talk about the members of the committee around the table, only maybe two people see the risk that inflation is going to start running away quickly, while others are saying there are all these reasons why inflation may still be slow to rise Going Forward. I think that is telling. If we go inside the terminal and look at where we saw that after the fed minutes were released, there was a tiny move to the upside, 36 to 38 and back down to 36 . If the fed is trying to make no market reaction, they are doing a good job. Would you agree . I think that is exactly what theyre trying to do. David we have been listening to an extraordinary press conference. A series of addresses from secretary of state Rex Tillerson and Homeland Security secretary kelly and its counterparts in mexico. There was a lot of emphasis on both sides about bilateral discussions and doing things together and the need for that. Secretary kelly said listen to this and here it, the press gets it wrong. There will be no, repeat, no mass deportations. Secretary kelly everything we do will be done legally and according to human rights in the legal Justice System of the united states. The u. S. Delegation just finished their trip wrapping up , a meeting in the last two minutes with president penanieto, the meeting that almost did not happen because of the strained session, not trade but border security. Secretary tillerson and kelly getting an earful from the from their mexican counterpart has interior minister said they are not on board with the wall with efforts to expand deportation earlier this week. Underscoring differences today, President Donald Trump at the white house describing the recent dhs rates as military operations, followed by kelly telling reporters there would be no military involved in operation. The agreed they should continue they agreed they should continue to meet but did not set a date, time or place for the next round of meetings. David short time ago, President Trump signed an executive order on Regulatory Reform and policies after he spoke this morning at the the action conference. At the conservative Political Action conference. After getting back from making a big speech he came to , the white house and went to the oval office and signed an executive order on regulations. This executive order will create regulation forces in every agency of government to perform in every agency of government. The idea is for the task force to go over regulations and the federal government, see which ones are duplicative, see which ones can be removed, which have ones the biggest Economic Impact on businesses, so it is a change in the Trump Administration where they are trying to get rid of as many regulations as possible. David we learned that reportedly, hes about to appoint a chairman for the council of economic advisers. Tell us about that. Yes, the president is trying to fill out his top level of advisors, so there will be another conservative speaker at the top of his administration advising him on economic policy, so expect to see more executive more conservative policies as the Trump Administration moves forward. David still ahead as we review the week, i promise ceo a Prominent Oil ceo says 116 month deal may not be enough to bring the market the balance, while the leader of the Worlds Largest Mining Company has concerns and what trump made it a trade. Up next, a political pack gives french bonds of boost, but the a boost, but the relief may be temporary. I think it is too early to take a lot of comfort from this. David this is bloomberg. David this is bloomberg best. I am david westin. Lets continue our tour in europe, where finance ministers met to discuss greeces debt problems and found no solution. Another day passes and another greek bailout deadline is missed. Yesterday, they poured cold water on a dispersal of new payments with athens and creditors, agreeing to pick up discussions in the coming days. More deadlock then, for greece. Yes, this year, the year of the European Group was supposed to be the last chance again for greece with another deadline that completes the second day of review and it is more than one year behind schedule. The only thing the eurozone could agree on is for the return of the bailout over the next two days, probably by next week. Greece is racing against time because you have all of the elections coming up in the netherlands and in france with all the finance ministers trying to play down the Political Risk and the possibility of a forest programforced bailout needed for greece because they have to pay as much as 6 billion euros in debt, reaching maturities in july. Japans january data has disappointed with exports growing bible just 1. 3 from a growing by just 1. 3 from a year earlier against forecasts of 5 . Should we consider these numbers of blip or is it the bigger trend . It is hard to make a judgment now. Looking at the exports of europe and u. S. , they are a lot weaker than what people expected. You saw big falls in car exports. The Chinese New Year happened at the end of january and that has an effect on trade data in february, so on the other side, you saw a big increase in imports in japan, that is much more than expected and a lot of that was oil and coal. It is a bit of a mixed bag not to look at that to get a better picture of what is happening. Call at a discount, of sorts, verizon will acquire yahoo s Internet Properties in a price slash after yahoo s Security Breaches were revealed. The deal is valued at 4. 4 billion in cash. We talked about this price slash. Many people think it is a drop. It is negligible, especially for a buyer of verizons size. It is a tiny, tiny sum. The key thing is not so much the quantum of reduction bit more but more that they agreed with new terms to try and move on to the issue, which has a big problem for both sides. At some point, verizon will own this asset, so they dont want to spend the next six months saying it is a terrible company. They would much rather drop line under it, get the reduction and move on. The other crucial thing that came out was the Statement Today that they decided between them that all the stuff than outcomes out relating to the data breach, in fact, cannot be considered part of what would become a material adverse change, which something that you could turn around and say, right, now well have to redraw the whole merger. Vonnie lets move on to restaurants. Busy day for you. What is going on with the Food Industry and consolidation . Owners ofrning, the burger king brand has announced a merger with popeyes louisiana kitchen, which is a much smaller company. They will essentially own it and it will be one of three distinct brands, which is burger king, tim hortons and popeyes louisiana kitchen. The real thing going on for burger king is that they can plug this in to a huge network with franchisees, very international. Popeyes at the moment is successful in the u. S. Putting it into the existing restaurant brand model can mean means it can grow extremely fast. Vonnie a federal Appeals Court upheld a ruling that does not funds sue over investments with fannie mae or freddie mac. That sent shares plunging. That is a challenge to the 2012 government to sweep all of the profits from fannie and freddie, basically from closing on a possibility that private shareholders could get any of it. They challenged the decision and it got dismissed in 2014. What came today was basically an affirmation of the 2014 decision to dismiss shareholder claims, except for a small part, i guess contract claims. That can still be litigated. The bottom line is the decision today makes it difficult for shareholders to collect dividends from fannie and freddie, which is why you are seeking shares react the way they did. Vonnie south africas finance minister is holding his ground in a feud with the countrys president. In the 2017 budget speak this speech this morning he said , deficit targets allocated no new money for a power plant favored by the president , and they say it falls on fiscal prudence. Some of the key areas of the budget speech, i know one of them was a 45 tax on the wealthy. Quite correct, one was a 45 tax on the wealthy. This getting all kinds of reaction from criticism to support. They asserted that the law remains highly concentrated in the wealth remains highly the wealth remains highly concentrated in the country with 95 of the work in the hands of the population. However, he also did say that the increase is not completely out of the cards. He did say that the state does need to focus on fiscal prudence, reducing waste expenditure and reviving an economy that is not fit to expand 1. 3 this year. We do not do things on our own. We made all the right choices, despite all the difficulties that we have. Lets talk about french politics because the race for the palace is in full swing and things of gotten a little easier for the independent candidate yesterday. He and his centrist rival agreed to an alliance following speculation that he may join him. You are looking at the frenchgerman yield spread during the announcement. This was a decent size yesterday decent size move yesterday, and you see the risk retreating around the french story. I am happy to see this but i think it is too early to get comfortable. I think the message coming from these candidates still relatively weak compared to la pens message, and i think that is writing a global wave and has resonanceesidence with a lot of people in europe and i think it is too early to take comfort from this. Vonnie President Trumps meeting with a new group of ceos to discuss job creation and plans to craft new tax and trade policies. Meanwhile, Steven Mnuchin is making his own headlines in an interview at kevin cirilli. Lets talk about this meeting with ceos. It was billed as a manufacturing ceo meeting, but there was a wide range of corporations there. Kevin they will be working together in a roundrobin table style meetings. This is the image the administration wants to put forward, donald trump the businessman, not the bombastic and brash reality star character, but someone that is able to bring ceos together to craft economic policy. Make no mistake. These ceos differ on key policy areas, whether it is the border adjustment tax or key pieces of gulatorylatory dere policy. All of that comes days before the president addresses a joint session of congress. Mark that interview you had with steve mnuchin, is the u. S. Close to labeling china a currency manipulator . Kevin secretary told me that he the secretary told me that he is not going to issue any kind of guidance on that Campaign Promise from President Trump until at least, and the keyword word is at least, april, when the standard review report is going to come out. It is twice annually published by the u. S. Department of treasury in april and october. They are not going to weigh in, until the april report at least a currency manipulators around the world. Saudi arabia says their giant oil company is worth more than 2 trillion, enough to consume apple twice over and still have enough to have Google Alphabet but they may have to settle for , less. You private estimates are coming under devaluation. Under the evaluation. There are a lot of there are a lot of ways to value an Energy Company and saudi arabia is one of the oldest in the Energy Industry to come in its 2 trillion figure and that is our company is worth the amount of oil we are sitting on. Some of these other private firms like mckinsey say there is more to it. You have to look at the revenue, the taxes you pay, the company has to pay a lot of taxes on Oil Producers to the government because the government relies on oil income. Because the government will still be in control of the company, investors wont have much of a say and we need more of that, that we ship it over with dividends. Private investors may be less willing to buy into aramco then them they would a private company of the same size. Than they would a private company of the same size. It is premature for us to talk about what will happen in the next five months, but all i can tell you is that the level of commitment we have received from all opec and nonopec countries, and we are in regular contact with them, we are going to go for much higher levels of compliance because of the very high level of talks that we have brought over with us from 2016. When will you get to 100 compliance . We hope to achieve 100 in due course. David that was opec secretary barkindo speaking with bloomberg, expressing optimism that decembers deal will effectively reduce inventory and boost prices him up at the head of the worlds fourthlargest prices, but the head of the fourth low jurist fourth largest oil and gas company is not so sure. John micklethwait sat down with the ceo patrick in another exclusive interview and asked to move the sixmonth agreement will have to be extended past may in order to work. I am convinced we will have to do it. It is not only opec but also russia because what happened in november is an agreement between opec and nonopec. It is the driving force of russia so russia for the first , time in history, and the leadership of vladimir putin, accepted to make some cuts. It was the driver that gives the gave saudi arabia the argument to change its policy, so it does not relate opec but opec and nonopec. The market could see inventory going down because it is quite high, and it will be to extend the armed may. Beyond may. Good news for the industry. Do increase your dividends and beat analyst estimates. You just described how it looks like opec will continue beyond may. Do you think it is bad do you think the bad times of the oil industry are over . We are in a volatile market. There is a positive trend, and i think the markets are willing to go up, but you ask about the you have some negative impacts potentially and what do , you want, u. S. Oil shale increase, and will the country be compliant . Our strategy is to continue to lower or break even. It is an industry, commodity, or where my job is to make sure we are profitable, and the answer is discipline. David we have got more compelling conversation coming up on bloomberg best. Cleveland fed president lays out her thinking on a march rate hike. Explaining why he is stoked to put his money in the stock in the stack. Australias Prime Minister tells us what it is like to deal directly with donald trump. We have had several conversations now. They have been constructive, frank and forthright. David this is bloomberg. David welcome back to bloomberg best. Im david westin. Many of our interviews touched on the global effects of Donald Trumps presidency. Its hard to find a political leader, economist or investor who does not have strong opinions on the impact his administration is making. Here are some of the most interesting conversations on trump, beginning with malcolm turnbull. In an exclusive interview, he told haidi lun about his dealings with the new president. We have had several conversations now, and they have been constructive, frank, and forthright. We have a very deep engagement with the american administration, and every american administration. The australianu. S. Reliance, relationship, is deep, build on over a century of fighting sidebyside in every major conflict. It is an alliance. It is an economic partnership, and it is built on millions of people to people links and family links, some very strong and deep. How do you view him as a man . He is a very Big Personality and has a very big job. Haidi in terms of the added difficulty of decisionmaking, because this is a brandnew world, he is someone who does diplomacy by social media, by twitter, there is an element of than expected, so does that change the way you deal with the u. S. . No, we pursue our National Interest methodically, calmly, consistently. We make our case very frankly and forthrightly when we are speaking to our american friends, but as you would expect with good friends, we are fairly circumspect about what we say in public, so it is important we give very frank advice and have frank exchanges with our american counterparts, but we dont do it, dont lecture them through the media. It is very important i think to be able to talk frankly as good friends should. Haidi in the markets, we have been trying to work out, what is trump the president versus trump a candidate, and a lot of that has come to fruition in terms of pulling out of the tpp, immigration. You think he means what he says . That is a judgment you have got to make. I think as president s are always going to, people always assume president s and Prime Ministers mean what they say, naturally, but in terms of a commentary on u. S. Politics, i will leave that to the collective talent at bloomberg. It is not my job to comment on u. S. Political developments. We have decided to give incentives for companies who employ people who are unemployed today or have been educated in austria, which is not only an instrument for austrian people but for all people who live here and educated here and not hindering people from other european countries. The benefits have accrued on the people who have already past the gates, in austria . Thats true. Can donald trump learned something from austrias immigration policy . No, i dont think so. We have been very generous. If you look at numbers and austria in relative terms, we have received the most migrants in europe, and we are particularly proud on that and have big challenges, spending a lot of money therefore, but this is a different case. Unemployment is our biggest challenge and if we are not fighting consequently unemployment, this will only support certain parties, so our concept is to hinder people who have or share the ideas of mr. Trump in taking power in austria. I was just at the Munich Security Conference and heard a different message from the Vice President mike pence than we have heard from donald trump in recent weeks. Where do you take Foreign Policy directives out of the u. S. . Who is speaking for the u. S. . It is difficult for the time being, and my personal opinion is we have to judge mr. Trump by his actions. I think what he has done with the muslim ban was not a good idea to say the least, because we need these countries as allies in fighting terrorism and it does not make sense to say we dont want to cope with you. This is really tricky, but we have to sit down and look at what his next steps are. Judge himter not to by his words. I think that the direction and the appointment that President Trump has made is very positive for the business community, employment, and for growth. If those come together and actually start to happen, i think we could have an optimistic period Going Forward and a lot of opportunity to invest capital in different areas. So where do you see the biggest winners under a Trump Administration in terms of sectors . I think energy is a big winner. I think that real estate is a positive winner, maybe not in the singlefamily house market, but in the commercial real estate market. Again, much impacted by how much supply is out there right now and growing. Obviously technology continues to be the driving force of our economy and it will continue to do that, but with a higher positive attitude, there is more risk money out there to foster newer and more radical ideas. You brought up energy as number one, but Capital Markets are widely open to energy, whether in the debt market or capital market, so give me something else, sam. Dont be subtle. What is a good Energy Investment today for sam zell . We just made an investment in an area called the stack in oklahoma. Oh yeah. And we think the prospects for that are awesome, and we just committed todays ago, so two days ago, so there is a specific example of us taking advantage of what we thought was a very attractive opportunity. David meanwhile in Monetary Policy, the fomc january minutes showed the fed anticipates raising rates fairly soon, so will that translate to a move at the march meeting . The cleveland fed president Loretta Mester was in singapore this week and spoke about haidi with haidi lun about the timing of a hike. Haidi we are still three weeks from the next policy meeting, but we have seen this jump when it comes to what the market is expecting. We have gone up close to 40 in terms of what fed funds futures are pricing in for a move. What would you need to see between now and then for you to become comfortable with a hike next month . No one is thinking we are going to have to precipitously raise rates. If you look at the summary of economic projections, the last version in december, it is a gradual increase in Interest Rates consistent with where we are progressing on our goals, so my view is we are at full employment from the standpoint of what Monetary Policy can do in labor markets. Been moving upas towards our 2 goal, but my forecast is we will consider moving that up gradually over time, so i would be comfortable with Interest Rates moving up, but i want to hear the discussion at the meeting. We will get data between now and the march meeting, and i would like to hear the discussion at the march meeting because different participants will have different views on the economy. Haidi is there a concern with core inflation and cpi inflation growth, we are seeing some seasonality come through at this point . Is there an argument to suggest you might want to wait longer, particularly as the followthrough from the pickup in sentiment since the election has really not played out yet . So even despite the sentiment, if you just look at where we are, the economy is moving closer on inflation. I look at the outlook and whether the data is coming inconsistent with that outlook, and i have a gradual path of increasing Interest Rates over time. From one meeting to another, it is not that important from a macro perspective, but we have been making a lot of progress, and you dont want to delay too long, because then you will be behind. I dont believe we are behind the curve yet, but if we continue to make progress on our goals and keep delaying and then we would potentially get behind. Why is that important . Because we want expansion to last. We do not want to do something if we delay too long and Inflationary Pressure to build up, we want, we dont want to feel we have to raise Interest Rates on a path of that then could put at risk expansion, so again, the gradual path actually ends up with a better outcome overall in terms of the link of the expansion. David you are watching bloomberg best. I am david westin. Time to run through the weeks earnings reports, starting with one of europes largest banks. Barclays just posted the numbers. The bank posted fourthquarter profit that missed analysts estimates as the firm recognized higher cost. Fixed income trading rebounded less than u. S. Rivals. One of the positives you are no doubt pleased with from this report this morning, closing the noncore parts of your business early. Tell us why you are able to do that. Part of the strategy was to accelerate the closure of noncore so we could Free Barclays from the Legacy Assets we want to exit and focus on the transatlantic consumer corporate and investment bank. I think we made a lot of progress getting out of Retail Banking across europe. All the efforts of last year means that in june this year we will no longer have a noncore Business Unit in barclays. In the second half of 2017, this bank will be what it wants to be in the future and able to look forward. We look for to ending the reconstruction of barclays in a matter of months. Shareholders will respond well to that. Mark they quake for u. K. Banker. The of a surprising climbing profit today. It caused shares to jump to the highest level since the brexit vote. How is it weathering brexit so well . That is the difference between the bank income from lending and its cost of funding. It is projected to maintain around 2. 7 next year. That is really good for the banks to say it is able to maintain its profitability given where the u. K. Economy is going. We are quite uncertain into theresa may triggering article 50, but lloyds are not seeing any impact on their lending, borrowers still taking loans, mortgages, so they will maintain that profitability, which is why investors are cheering today with the stock price bump. Rbs laid out plans to cut costs by 2 billion pounds over the next four years as it posted its ninth straight annual loss, saying there will be job losses across the business. We have been quite open today that we think that we have another tough year ahead of us for 2017, provided we can get through issues, particularly u. S. , we think we will be firmly back making profits in 2018. If you look across the franchise, weve taken 3 billion pounds over the last three years, including for the last year. We have announced today we are taking 2 billion out over the next four years. I think that will be broadly spread, but we have a very, very inefficient back and middle office infrastructure. We are going through all of our processes, saying how can we simplify them, delivering Better Outcomes for customers and better cost outcomes. Will that involve outsourcing and job cuts . It will probably not involve outsourcing. I think it means making a process much more efficient. Bhp billiton reported firsthalf earnings that beat analyst estimates. These earnings highlight quite a dramatic reversal of fortune over the past year for this sector. We are particularly pleased with our precash flow number of almost 6 billion after we have invested in a lot of growth projects. The caution is really based on the fact that some prices are now a little higher than we would have expected them to be around now, particularly iron ore and coal. We are not quite sure where the Trump Administration will settle down and what that means for World Economic growth, but we are slightly alarmed around the sentiment of protectionism, because ultimately that will have a bad impact on world trade and World Business commodities when the World Economy grows commended rose when world trade is growing. Intercontinental hotels group has missed estimates as it released fullyear results this morning. At least if you look at the revenue line. The pretax profit line, fullyear adjusted pretax profit line came in ahead of estimates. You say you are confident in your outlook for the year ahead. How much is that confidence based on what you see in your american business, that being such a big driver of your profits . America is about two thirds of our business, but are fastestgrowing and secondbiggest market is china. Actually if you look, we saw growth pretty much across the world. You know, we are in 100 countries and have a pretty good view. We also undertake a longterm view and our business. It takes a long time to invest in hotels and build them up, so there are uncertainties out there, but we are confident, and that is what drove our decision to raise our ordinary dividend by 11 and also return another 400 million to shareholders. Macys and also walmart, two big retailers that beat. Macys closed stores and cut costs to cope with an industry wide slot. Walmart posted its Third Straight quarter of doubledigit online growth. Is this a case of setting expectations so low that any kind of beat would make the industry happy . For walmart, that is true. For macys, that is partially true. Macys would be the first to say we didnt have a great year, we were disappointed in how 2016 went, but they cut costs. You are seeing initiatives pay off. They said they will close stores. There was no bad news that was unexpected and that made the industry happy. Doubledigit online growth for walmart is great, but doubledigit growth from such a low base . And they certainly have a long way to go. This is a big deal and the sense that jet. Com, this big 3. 3 billion acquisition is starting to pay off, now three quarters, so you are starting to see some actual steadiness here, and not only online, but brick and mortar pretty good as well this quarter. The germanbased Company Bayer Fourth Quarter ebitda. [indiscernible] that looks to be coming in ahead of estimates. They say they are confident of closing the monsanto deal before the end of 2017. You have exploding cash flow. You are one of the few European Companies with doubledigit dividend growth. What are you going to do with all your cash so that Warren Buffett doesnt call you after going down in flames with unilever . It is not up to me to comment on Warren Buffetts approach to unilever. We are of course a company with strong cash flow generation, but to be specific in answering your question, i was not called by Warren Buffett in the last 24 hours. Tesla shares climbing in afterhours trading. The company reassuring investors that some of its hyped products remain on schedule. Ceo elon musk says initial production on the model three of electric car are on track for the second half of 2017. The big question, how much of an impact will the acquisition of solarcity have on the bottom line and cash margins . Talk to me about what you see in this quarter for tesla. A couple of questions. First of all, how well have the integrated solarcity and what are the benefits that will come from the integration with solarcity . Are they going to be able to sell more of the shingles . And the second thing is, some of the other services they are talking about, whether it is ridesharing or autopilot, how quickly with those roll out . That is part of what people are looking for. Not just the cost of the equipment for moving the metal, but other services that will be internet and technologybased. Qantas firsthalf earnings drop 7. 5 as overseas competitors rolled out more routes and International Airfares fell. Your main rival in australia Just Announced last week about these direct services from australia to china, hong kong, and maybe even a Southeast Asian city. How do you see International Affairs going now, and how will that impact your yields . We already compete on more than 50 routes. We massively outperform our competitor. Our results indicate that. We have 62 market share, 86 here in australia. Both our qantas and jet Star Business are the two most Profitable Airlines in the australian market. Internationally, our business is producing better margins than competitors, so we are confident in our position on these routes. Hewlett packard enterprise reporting a 10 fall in revenue for fiscal first quarter. 11. 4 billion Company Revenue and a profit of 267 million dollars, but that is unchanged from a year ago despite loads of acquisitions. As if that werent bad enough, the Company Offered a weak profit forecast for the Current Quarter and current fiscal year. As it relates to this quarter, what happened . So what you are seeing is that this is a company that has really cut and cut and cut. And is, you know, it is extremely lean in terms of over all expenses, so as the top line goes, you will see that right away on the bottom line. Now the company experienced a few different dynamics in the quarter. They still are suffering from the impact of fx, currency fluctuations. Commodity prices took a spike, so they saw a 50 increase in memory prices and that flows through to the bottom line. You talk about a couple of acquisitions. I would say those arent that impactful yet. Loretta mester, trying to move this work function, wirp, at 38 . Nowhere near the level the fed would be comfortable for march to be in play. I think there is no chance of a march hike. The two key things she said was they dont want to surprise the market and the fed is not behind the curve yet. David there are about 30,000 functions on the bloomberg, and we enjoy showing you our favorites on Bloomberg Television. Maybe they will become your favorites. Here is another function you will find useful, quic. It will take it to our quick takes to get insight into timely topics. Here is a quick take from this week. I am equally clear that no thanfor britain is better a bad deal for britain. David 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. Im david westin. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Jeffrey good evening. I am Jeffrey Toobin filling in for charlie rose. Democratic state attorneys general have emerged as powerful forces fighting President Trumps agenda. Leading is Eric Schneiderman. His office is fighting the immigration ban as well as President Trump personally in the now settled Trump University lawsuit and his continuing investigation of the trump foundation. Im pleased to have Eric Schneiderman at charlies famous table