We have his a take on the economy and tells us where he sees value right now. In two hourslose time. Lets take a check on where stocks are trading with abigail doolittle. Abigail were looking at a bullish day here with the dow, s p 500 and nasdaq all higher. Up. 1 afters now flipping between small gains and losses. , the techbest day heavy nasdaq carving out another record day. Chart withongterm the nasdaq relative to the s p 500. , the nasdaqcases outperforming the dow and s p 500. Up dow and s p 500 only about 6 or 7 on the year. Relative to the tech heavy other big averages are lagging to some degree. One stock helping is apple. Apple is up in a big way. Hitting yet another record high. Apple does report tomorrow after the bell. Investors are looking for earnings of 2. 02 on 53 billion. One of the big things investors will be looking to see is the cash position. Some are expect things to hundred 50 million 250 billion. Here forood stuff apple. Turning back into the bloomberg on apple, this is a great chart using the chameleon indicator. The chameleon indicator is one that combines lots of technical indicators and makes it super simple. The mixed colors show a bit of a change. With the exception of where we of theeen, the rest chameleon indicators have been pretty bullish. I just spoke to that specialist to set this chart suggested we. Ould keep going good stuff here for the nasdaq and apple. To bloombergsrn news breaking interview with President Trump in the oval office. Lets start with the big headline about the banks. We have a little tape from your interview. Lets get what the president had to say about the prospect for perhaps breaking of the big banks. Looking atwe are that. Some people want to go back to the old system. We are looking at it right now is going to be seriously changed so the banks can go back to loaning money. David you were traveling on the campaign with President Trump. How different was what he said today different from what he said on the campaign trail . Guest hes arguing very Different Things now that he is in office. I dont member exactly what he said but as he has gotten familiar with the oval office and different people are devising him and hes taking advice from different positions. He says more than 84 Business Ceos advising him on what to do, hes taking advice from the Business World and that is helping color his thoughts on this. He talked quite a bit about wanting to do what is right. He talked about doing populist things. The gas tax is one of those cases where we were surprised to hear him say he wants to increase the gas tax. Thats definitely a contradiction from where he was on the campaign trail. Something that would hit people in the pocketbook. Thats one of the biggest headlines, i thought, out of this interview. David where is he getting that advice . He has had a conversation with many advisers. Where thosea sense conversations are happening . Not say exactly where. He says he has all of these. Usiness leaders he relies on steve bannon and jerod kushner. We talked a little bit about advisers and the people he leans the advisers he leans on the most. Its just a general feeling about what his instincts are right now. He knew he was making news on several different topics and deliberately putting these positions out there to see how the country reacts. Gas tax andve that the possible breakup of big banks. What did he say on health care . What did trump have to say . Guest we were pressing him about the existing conditions and he was talking about how this is not the final bill. He said i want to take care of people. Thats one of the popular things he has been focused on. We said listen, you want to cover people with preexisting conditions, but if sick people wee to pay more money, as pressed him on that, he said this is not the final bill. I want to take care of people, lets see how it turns out. Is a question over what he said on the weekend as well. Some contradiction there. Lets go back to the Milliken Institute global conference in Beverly Hills am a scarlet fu joins us with the ceo of the Global Investment firm that oversees 275 billion in assets. Scarlet im here with the chairman and ceo of fairings llc. Lots to talk about here. Lets talk about the data this morning and get a sense of where we are. We have personal income and personal spending coming in lighter that expected coming on the heels of the week First Quarter gdp report. Where do you think we are in this Economic Cycle . Guest i dont think you can read too much in it. I dont think we are at the end of an Economic Cycle. I think we are a seventhinning stretch, maybe. Theres a lot coming forth this businesstimulate investment and consumer spending. A lot coming bishop could be fiscal policies. A party where the treasury secretary was speaking. Whats on his timeline. Is going to put a data out there that we want to have there are two priorities form, andare and tax those are two priorities that are going to dictate the process. Thats the important part. Youre just starting. I look at that as any other business negotiation. You start with ideas and then you engage. Remember theres a process to get legislation accomplish. Page,t based on that one is there enough to sustain the rally we have seen in equities . I think we will see the view of it back to europe with the finalizing of the French Election and german election. If its meant to sustain the market rally itself. Right now, its a bump to the market, a little advance low. When it comes to the repatriation of overseas cash, that is something investors have been talking about for a long time. The white house wants companies to put that money into investment and hiring in the u. S. Whats the best use of all that cash . You can say the money comes back and gives a shortterm stimulus and that is what we really have to recognize is we are in a global economy. Apple is going to be selling all over the world and thats not changing. Base we get to a territory , we are going to continually be behind in bringing corporate profits back home. I think the important thing is that changes longterm. Scarlet if there is a one time tax repatriation holiday, is that sufficient to get angst going . Worst you have the situation now. No one knows what the change is. Some police have not been able to plan to bring the money back because they didnt know what the impact was going to be. Clarified willat bring some back. Just how much, we will see. Get tax reform in the market will see that favorably. It plan out a little more singly as it relates to their foreign operations. Scarlet one thing that did not come up in the conversation at all was the Federal Reserve and Monetary Policy. Were not talking about Monetary Policy dictating everything in the market. The fed meets this wednesday and likely nothing will happen but does the Federal Reserve move more slowly because of all the things in the offspring what in the offing like tax reform . Guest i dont know that they move more slowly. I think they keep in here with the way they are looking at it. You want to hear some discussion about normalizing the Balance Sheet over time, so they are edging in a certain direction of normalization. But barring something happening, and unexpected event from a certain change in the economy, i think they stay on message for a while. Aboutt we were talking the seventhinning stretch, but where do you think we are in the credit like all . Guest we are definitely on the backside in some ways. We are i dont think heading into recession tomorrow but i would look at this its lot int where we do a asia and europe. You need to be doing your homework on companies not just because of cyclicality, but whats happening in the industry. You look at retail in the impact of amazon. Itwill see some stress but can help with your portfolios. Scarlet lets talk about your industry, the Asset Management industry. What is driving the consolidation . Like a lot of industries, we have to be more efficient. The effects of scale, the effect of enhanced use of technology, you need to be more efficient and our sector and the big institution, you have seen they want to work for fewer managers and wider capabilities. That will do a lot to bring the new bearing together. Our relationship, the biggest asset allocators and owners out there is driven by more efficient servicing. You will see certain management come together to build those capabilities. Scarlet how many big players would be left . Guest there are thousands of managers out there and i think theres a place for the boutique but the numbers will shrink and become more efficient. Ago andy it was years it was a big thing when black rock went over a trillion and now they are 5 trillion. So overtime it is scale. Scarlet scale seems to trump everything. Guest scale is one way, but it is also efficient. Scarlet back to you, david. We have more ahead from the Milliken Institute global conference, including a rare and exclusive interview with can griffin, funder of citadel. This is bloomberg. David this is bloomberg markets. Im david gura. Julia im julia chatterley. Lets get a check on the bloomberg first word news with mark crumpton. Mark more now from President TrumpUs Oval Office interview with Bloomberg News. The president did not rule out a face to face meeting with north Korean Leader kim jong in. North korea has in the president s most Urgent NationalSecurity Threat and foreignpolicy challenge in his first 100 days in office. Under the right circumstances, i would absolutely meet with him. People wouldl never say that, but im telling you, under the right circumstances, i would meet with him. Mark the last top u. S. Official to meet with a north korean official was Madeleine Albright who met with cams father in 2000. House and Senate Negotiators reached a budget deal that rejects most of the president s wish list stop the 1. 1 trillion agreement would keep the government in operation through september. Republican leaders bowed to democratic command the mans to limit hundreds of restrictions aimed at curbing regulations. Notmeasure also does include money to Start Building a wall along the border with mexico. British Prime Minister theresa may is not backing off her position on brexit talks. She insists britain should be able to line of the free trade deal with the European Union at the same time it negotiates its exit. Eu leaders suggested the prime thesters ambitions for upcoming talks are unrealistic. Global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Thea lets dig deeper into Bloomberg News making interview with President Trump. The president got wall street buzzing when he said he was considering breaking up the big banks. Joining us from our d. C. Bureau is our analyst. We have heard trump talk about this before. We have had gary hint about it. How serious a proposal do you think this is . Is a i dont think it serious proposal. I think its similar to the tax basel that came out last week. Its just an idea and it is very high level. Not seen anything actionable on it. They want to say we are going to bring back a tweet for sentry glasssteagall act but they have not explained what this is. Few things to watch out for the treasury secretary is expected to come back with a doddfrank plan in early june and what are the up claimants they are going to make to the Federal Reserve question mark are they going to be populists or more moderate, establishment figures . I think we will get a clearer picture but right now, i dont think it is going to be very much. Know about do we what the white house thinks of this legislation, this financial. Hoice act is the white house and embracing it . Are they planning to do something on their own . Guest and has been pretty quiet. German had selling has said all the way back that he has met with the president and is working with the white house on this plan. Its an act that essentially gives large banks a choice. Bank is around 6. 5 , so the eighth largest u. S. Banks would have to put up 420 billion in capital. It is a high price to pay, so its going to be interesting to see how the white house embraces the act once it has its markup hearing. We will see by june whether the white house will fully embraces plan or plan to pursue other efforts. Julia this is an interplay between two potential options. If we go to bringing back some sort of glasssteagall, who was in the inner circle here that would fight it . One who said this is essentially an option. When he was pressed by Bloomberg News, he said i think its going to be more tiered regulation, less regulation for smaller banks. Its going to be the populist wing of the white house versus the establishment wing. The key players to watch our treasury secretary Steve Mnuchin and gary cohn i would look at Vice President pence. One of his advisers is wellversed in doddfrank and we will see what plan comes out of that office to roll back doddfrank. Julia great to chat with you. If we are having a tiered system with the likes of jpmorgan. David we will see how all of this evolves. Still ahead, a rare and exclusive interview with the Millionaire Hedge Fund manager of sit. This is bloomberg. Since dell. Marketshis is Bloomberg David , im julie chatterley. Time for the Bloomberg Business flash and a look at the biggest stories in the news right now. Ups, the Package Delivery service would ask retailers to pay for part of the cost for surplus workers when retailers failed to ship the planned number of packages. Its part of a broader negotiation overpricing during the busiest time of year. The money manager that oversees almost half 1 trillion, peter prowse has been fired. As ceo. Will take over they just said it was time to put new leadership in place at the company. Space expiration technology, plans to make space travel more affordable is evolving. Arocket blast off during classified payload for the u. S. Military and landed on earth. They first accomplish the feat relanding rockets is key to the companys longterm vision. That is your Bloomberg Business update. Ahead, much more from the milliken conference, including a rare interview with ken griffin. That is coming up next. This is bloomberg. David this is bloomberg markets. Im david gura. Chatterley. Ulia but get back to the Milliken Institute. Erik schatzker is set is standing by right now with a special guest. Welcomem delighted to ken griffin of sit it out to our set here at the milliken global conference in Beverly Hills. Great to see you. This is where i would like to begin our conversation. Your industry is under pressure. Hedge funds are closing at the fastest pace since the financial crisis. Are inunds that survive many cases retrenching. Or returninging in money to investors. How do you see it . Ken ive been in the space for almost 30 years now. Its almost an explosion the size of the industry. The number of funds 3 trillion of capital, its an unbelievable growth story. Dynamics, theres more competition, theres a lot of people in the marketplace and this is causing secondtier players to fall by the wayside. You can see secondtier firms that do not have a competitive advantages. You have to call it a day and move on. Erik why is it so hard to generate excess returns . Ken excess returns come from market inefficiency. Use news, data and information means markets are mutts more efficient in the short run. Is there less output to be had . Ken because the markets are efficient, theres less output to be had. Today, earnings will be analyzed and companies will analyze we are going to do this. Literally within seconds of the earnings announcement, you see tock prices move and just reflect all the news we have. Quarter timeed when you are looking at data that comes from credit cards giving you insights. All of these dynamics are making the money move making the markets more efficient and more it reduces the amount of alpha available as a community. Would you describe your position as offenses were defense of . Ken offenses in the quest for talent. There are a number of talented individuals. Firms are shutting down. There are a lot of good people we want to bring into pseudo. Theres a chance to bring good people into said it all. Sue dell is built on one simple equation, the belief that super talented individuals working together as create extraordinary results. Strategiesinvestment or approaches do you believe would be most successful in this environment, the one you just described, and the way you see markets evolving . Ken what i find works well overtime is having a deep expertise in the areas in which you are participating. I think about investors that want a big u. S. Look and they are driveby or tourist investors. That investor is almost andainly not going to work they dont understand the company, the country, the pricing dynamics and what is relevant. For us, the core belief we have ,s deep expertise is rewarded so we organize our affairs where people specialized, they are a Health Care Expert or expert in industrial size. It is that deep specialization we think drives differentiated and superior returns. Erik of the stuff you are doing, what is working well and what will continue to do well . Ken we have been successful across the bat across the vast majority of our strategies. It com