Look at the imap on the bloomberg, you will see energy in the top spot as oil prices are higher today following an inventory report and the news from algeria that the informal opec meeting my turn into a formal one. Real estate allegra today as we watch rates. The various strategies we are seeing, this looks at the Inflation Expectation in the breakeven in these various countries. Heres the 2 target for all of these various areas with that yellow line. We are still below 2 . Well below it in japan. Despite the best efforts of the various Central Banks around the globe. Matt has there been any affect of the news of the charges from the sec versus leon cooperman . Julie weve been watching cooperman holdings. Do as lng filing, look up up afilings and look mega. Omega. If you look within the financials, couple of those stocks are being hit. First data is the largest financial holding. Lets take a look at those stocks and see how they are trading. Targa shares still higher. After therop headlines first came out, but Still Holding onto a gain of more than 2. 5 . Naviaeing declines weve been watching, first data weve been watching, and Aircraft Leasing financing company, all of these turned lower after these headlines first came out from the sec regarding cooperman, regarding Omega Advisors here. These stocks have not been recovering even as cooperman has come out vehemently denying these charges by the securities and exchange commission. Matt julie hyman with a look at stocks. David Mark Crumpton in the newsroom. Mike a new Bloomberg Politics an alarm for donald shows the survey Hillary Clinton narrowly leading trump among voters with Household Incomes of at least 100,000. Election, mitt won that demographic by more than 10 points. Sheldon adelson and his wife contributed 10 million last month, according to the latest federal election filings. He may only contribute 5 million to trump. He was the biggest donor in 2012. We are learning more about the life of an unarmed black man shot to death in tulsa, oklahoma. After a long history of runins with the law, he was turning his life around. The shooting was captured on d ashcam video. Five Staff Members have been killed in attack on a facility in syria. They leveled a medical triage point outside of aleppo. The reports on who was behind the strike. No reports on who was behind the strike. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im Mark Crumpton. This is bloomberg. Matt should investors start preparing for the end of the credit cycle . Our next guest says the answer is yes. Oversees 195 billion in assets. He joins us from los angeles with more. Thank you for coming on the program. How do you foresee this happening and when . That the view of the last 25 years more or less tells you how this will ultimately end. What weve experienced over the not soof this time is much a traditional Business Cycle as an asset price cycle. The fed lowers rates, you get a disproportionate increase in asset prices. You dont get the same type of gdp or growth response. By virtue of the fact that you have a condition in which the higher asset prices have facilitated an increase in ratios. Nd leverage ratios. The increase and leverage is not sustainable. Inevitably, the collision comes and ends in tears with a significant decline in asset prices and a broadbased deleveraging. How are you building defensive positions in your portfolio right now . It is important for active managers and investors generally to be thinking exactly along those lines. This is the time of the cycle to be building a defensive portfolio. If the story of every business sycle is that 80 i characterized by deleveraging, it is during that when you adopt a defensive strategy. Preidentify breakable assets come assets that may give you permanent impairment of principal and you try to keep them out of your portfolio. Add an open mind and try to socalled bendable assets, including investmentgrade credit, aaa rated assetbacked securities, aaa rated Mortgage Backed securities. Thiit mean there wont be an adverse price response. Securitiesthere will. But these will live in the next cycle. If i look at u. S. Ag come over the past five years, it has gone from 11750 to 2000. Companies are much more leverage now but the act continues to climb. Continues to climb. Look at the whole aggregate come it is a very broad index. Theres a lot of forces and factors that are influencing the pricing. Fostered an environment in which all yields have come down, including the corporate yield. You mentioned the increase and leverage in the investmentgrade sector. It is a warning, a red flag. If you look at the gross leverage ratio of the investmentgrade credit, you are running a bubbles are more like from theimes investor point of view, recognize you have certain sectors of the marketplace that have become dangerously exposed at this point. They have created lots of leverage without an extension in income. And there so the case corporate sector when you recognize that we are a good five quarters or so into a relatively broadbased earnings recession. We have experienced yearoveryear declines of earnings in the corporate sector. More leverage, less earning. End . Does it all not well. David is that part of tighter credit restrictions as well . Tad so much of the dialogue of the last five or six years has the pointbesides discussion of whether rates should be higher or lower. As if economies dont know how to grow unless the Central Banks tell them how to do it. The traditional way we have grown is by allowing allowralized forces, individual businesses and workers to find better ways to do their jobs, to up their game to make their contribution more valuable. Traditionally, the way this was done was by allowing the free market to do what it needs to do, to allow a measure of discretion, deregulate it, to lower taxes. Not feet in subsidized cheap credit. This idea that cheap credit is somehow better than a higher price is kind of a ridiculous idea. You want prices to reflect proper market level so that you get an efficient allocation of resources. No one wants to hear what my prescription is. You want prices to reflect proper market level so that you probably that we will have to wait for this regime of zero rates, negative rates for all these various contortion that the central guys are going through for people to feel we have to try something different. Of tcw group. Lle we will bring you interviews and bill gross, albertas addus and alan blinder. David , we will hear from Margrethe Vestager. Up next, we will hear from Margrethe Vestager. This is bloomberg. Matt this is bloomberg markets. David time for the Bloomberg Business flash. He was has given airbus to go for what will be a record deal with iran. Maker hasircraft received two u. S. Licenses allowing it to sell iranians the first 17 jets in the deal. Airbus and boeing have agreements to sell iran more than 200 planes. Theres a report that apple is in talks about potentially buying mclaren. Apple is considering either a full takeover of the company or a strategic investment. Apple has been developing a self driving car for more than two years. In the uk, more feel is being added to the debate over immigration and brexit. The uk is not attracting more trade and Technology Specialists and engineers. That is your business flash update. Africas most industrialized economy but it has been mired in leadership turmoil and economic stagnation. Has been hit by collapse in commodity prices, tighter Monetary Policy and political uncertainty. How can south africa get back on track . Theie quinn sat down with coceo of africas largest lender, Standard Bank at the u. S. Africa business form. She asked him about the role of the Standard Bank in maintaining political stability. As a universal bank, we are is ourpurpose is africa home for growth. The cost of capital is determined by what happens in a country. The minister of finance the Labor Movement and the government in africa working together. A tremendous amount of work is happening and that work is consistent with the nine point plan announced by the president of south africa. Its all about the Structural Reforms that are needed to shed share growth in the country. Is a constitutional democracy with a rule of law applied. One would hope that the country continues to execute its fiscal policies without hindrance. One also hopes that the laws of innovate in all the organs of african society. That jacobct quote zuma has to go. South africa is a modern democracy. It has separation of powers. The ruling party is a strong ruling party. It gets to determine who is leadership are. Our role in business and my role is to argue for and i will continue to argue for the space create a third the timing is important. We were speaking with one of the largest lenders to the South African government quite recently on Bloomberg Television and he is saying that they will not lend right now. If the outlook is to muddy too muddy. To the extent that south africa does not execute rational fiscal policy, to the extent that the debt to gdp ratio deteriorates to the extent that population growth is higher than gdp growth, south africa does run the risk of we have to do everything in our power to avert that. This is what we are doing. Quinn withwas vonnie the coceo of africas largest lender, Standard Bank. David still up, the sec charges was insideroperman trading. We will discuss that, next. This is bloomberg. David you are watching bloomberg markets. Matt leon cooperman is being Insider Trading by u. S. Regulators over his buying and selling of asset shares heore material events used to status as one of the largest shareholders to get access to confidential information about those events. For his part, cooperman disagrees with the sec saying he has not engaged in any unlawful conduct. Ise with me for more insight that he oversees Hedge Fund Investment at merrill lynch. He was responsible for managers investing in international and domestic funds. And still advises hedge funds as well. Cooperman is legendary. He worked at Goldman Sachs for 25 years. Have big a deal is this . How big a deal is this . Votto it is an embarrassing situation. Names,een the top multibillionaire managers at banks inccounts the middle of nowhere. Thatreads the notion finance is corrupt across america and that is a shame. David in line with what were is by in the complaint phone come in person, yet close relations with a lot of executives. Bio this is where it gets challenging for them. The traditional situation is what you saw the famous phone call between mark and stevie cohen. Some 700 million in stock and have a phone call on a sunday and suddenly, the next day, they are short hundred million. 300 million. In this instance, the socalled executive one, cooperman receives a subpoena and according to the government, he then calls executive one and says lets make this story up. That creates this element of guilty mind that cohen was in phone the matt this is what the executive was telling the sec as well. He was shocked and angered that leon cooperman would trade on insider information. Also on the is board of publicly traded funds. Thats what makes it even worse. The way Martha Stewart had challenges she did have her series seven back before many brownies and cookies this is a woman who should have known. Board of aon the publicly traded company, it is a challenge to say i had no idea. Liam cooperman scheduled to talk to investors at four clock p. M. On an investor call scheduled torman talk to investors at 4 00 p. M. On an investor call that she has denied the commissions allegations. There are many allegations here. Call. Estor he has denied the commissions allegations. The complaint alleges cooperman took steps to cover up misconduct. To try to gain assurances they would not reveal his misconduct. In addition to the Insider Trading claim, the commission charged cooperman with violating the provision of the federal security books. Matt it sounds like a serious sting operation was under way at the sec. How intends to the investigations get . Intense to the investigations did the investigations investigations e investigations get . Was it actually inside information . Or was it something that he could have said was normal color he would have received on the phone at anytime . Report, you might have just been late in reporting a position. I dont think it will be a pattern. Since 1992, they have produced 14 a year. Wellrespected, i give him the benefit of the doubt. Matt thank you very much. David coming up, Margrethe Vestager. This is bloomberg. And bloomberg World Headquarters in new york, i am david dura. Matt and i am at miller. Mark tensions remain high in charlotte, North Carolina after a night of violent protests over the Fatal Shooting of a black man police. At least 12 officers were injured with demonstrators who blocked highways and set fires. Authorities say the man was armed and posed a threat and the family disputes the claim. Both the Police Officer and the victim were africanamerican and the Justice Department is reviewing the shooting. The fbi has released a shooting of two men who took a suitcase holding a bomb that did not explode in new york city. Rahami has been charged with setting a bomb in new jersey and two in new york city. The men were seen removing the bomb from a piece of luggage and leaving the device behind while taking the seat suitcase. The two men are being thought as witnesses, not suspects. President obama meets with the today, Prime Minister the white house says it will probably be the last time they will get together before president obama leaves office. The meeting comes after the u. S. Agreed to a 10 year military assistant deal with israel. Donald trump and gary johnson are virtually tied among military voters. A new military Times Syracuse University survey finds trump with 38 and johnson with 37 and Hillary Clinton is third with 16 . 87 described clintons honesty and trustworthiness as poor and 68 of you trumps temperament poor. Global news 24 hours a day, powered by more 2600 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Matt quick check on stocks right now. U. S. Equities little changed even as global risk assets rose at the bank of japan meeting. We are waiting for a fed meeting and volume is low, you see the dow almost completely unchanged. The s p up. 1 . The nasdaq is down and i want to go to Abigail Doolittle at the Nasdaq Market site with more. Abigail this is the second green to red reversal in three days. We have investor jitters ahead of the fed decision. Lets start with a bright spot, adobe systems. They put up a raised quarter. This was described to saying that adobe is floating like a butterfly and the fact that revenues are growing and they finally learned how to sting like an adobe. Margins and earnings are growing as well paying homage to muhammad ali in a famous quote and it has a street high price target of 130 per share this stock could rise even on the big gains with the stock at a record this high. An adobee,like it took me a sec. Why do we see a red arrow down there . Abigail the secondbiggest drag , havingix, down 4. 5 the worst day in two months after there was a real ax on the his work said suggested there is a big churn in july and august and he took his Domestic Subscriber additions for the Third Quarter down to zero, well below the street. Investors are paying attention to this call, the biggest drag on the nasdaq is apple and the session stock is near lows. The big 11 move higher last month as reactors investors reacted to positive reports around the iphone 7 and we have the Financial Times reporting that they have approached mclaren on a potential acquisition and they would see a strategic investment. Perhaps investors do not like that idea. What do you think about that as a car guy . Matt for me it is amazingly exciting because more than half a billion people watch formula one every weekend and mclaren is active in formula one and i love 675 toom the p1 to the gt. 570 if i had one and a half Million Pounds i would buy mclaren as well. That as a gearhead, not a business judgment. Members of the u. S. Senate Banking Committee are demanding clawbacks from Wells Fargo Bank executives who were in charge during the fake account scandal. Accountability. You should resign, you should give back the money that you took while this scam was going on and you should be criminally thestigated by both the department of justice and the seared Security Exchange commission. David clawback policies have exploded in popularity and they are rarely used an expensive to implement. I want to pull up on the bloomberg the john stumpfs compensation, since 2010 75 of banks have a clawback policy or procedure in place, fair to say not many of them have used it. Employeeied to go into bank and brokerage accounts is difficult and they do not