Transcripts For BLOOMBERG Bloomberg Best 20171126

The war of the rich on the poor is astounding. Not everything in here is a bad idea. Ramy it is all straight ahead on bloomberg best. Ramy hello and welcome. I am ramy inocencio, and this is bloomberg best, your weekly review of the most important business news, analysis, and interviews from Bloomberg Television around the world. The week began with a political crisis in a european nation that has been a rare model of political and economic stability. German chancellor Angela Merkels negotiations to form a Coalition Government suddenly collapsed on monday. Matt chancellor Angela Merkel attempts to form a new government. Those have collapsed with the Free Democratic Party Walking out of Coalition Talks last night. The breakdown of discussions throws the future of her fourth term into doubt and raises the possibility of new elections in germany, something which would be completely uncharted territory in the postwar period. As acting chancellor, merkel says she will consult with the countrys president later today. Ms. Merkel it is a day of deep reflection of how to move forward in germany, we will do Everything Possible as transitional chancellor to ensure this country will be well led through these difficult week. Matt what exactly happened that brought these, at the final moment, to a collapse . Rainer it was clear at the end that the whole package of things that they have negotiated was not good enough for the ftp. Immigration was a sticking point. They could not get their solidarity to charge through. Looking at the whole package, they decided it was not good enough. Matt we are seeing the euro gain against the isnt this bad dollar. News for europe . Marc the markets are telling us this is a local issue that will be quickly resolved, and that means without much fanfare. This is important because right now, the key to europe and brexit talks and further progress of integration hinges on strong german leadership. Emily the u. S. Justice department is suing to block at ts 85. 4 billion takeover of time warner. This deals a major blow to the carriers bid to create a media and telecommunications empire. Randall the bottom line is we cannot and will not be party to any agreement that would even give the perception of compromising the First Amendment protections of the press. Any agreement that results in us forfeiting control of cnn, whether directly or indirectly, is a nonstarter. Jennifer it is unprecedented. It is very odd coming out of the Republican Administration generally considered friendly to vertical deals, friendly to big business and mergers. We have no example. This went to that court was 1979 and the department of justice lost. David the department of justice will have to demonstrate that consumers will be harmed. There are a lot of things in the complaint that would raise concerns for competitors of at t, the question is, will consumers be harmed . I think the doj has a daunting case a daunting battle in front , of them. Kevin the white house trying to signal this is not anything to do with politics, despite the president s complete assertion against cnn. That said, i can tell you that the department of justice has largely taken a cautious approach, and everyone is weighing in, including mark cuban. He has suggested that when it goes to trial, it will ultimately the bad news for facebook, google, and silicon valley. The argument being that the vertical merger is a signal for them to play with tech titans. Mark the u. K. Government says Economic Outlook is getting worse. The chancellor issued a warning as he delivered a speech in parliament today. Mr. Hammond we have already invested almost 700 Million Pounds in brexit preparations. And today, i am setting aside over the next two years another 3 billion pounds, and i stand ready to allocate further funds when and if needed. Speaker, no one should doubt our results. Anna he gives us 3 billion pounds to deal with exit uncertainties. Is this to deal with the situation of no deal . Is that what the 3 billion is for . Because chancellor hammond had said previously he did not want to set aside money for a no deal scenario. Ms. Truss weve already allocated 700 million to prepare for all eventualities, and that includes no deal. It also includes the preferred option of a transition period plus free trade deal. Thats what the 3 billion is for. Money we will need to spend to get ready for leaving the European Union. In fact, quite a lot of things we would need to do in a no deal scenario, we would still need to do in a deal scenario. Period. A transition it is right that we make the preparations, and i think people will expect the government to stay on top of that. Haidi janet yellen isnt the only fed official expressing more doubt when it comes to inflation moving higher. The minutes of the november meeting show a deeper than ever divide between policymakers. Kathleen the november minutes are interesting, it has a lot to do with the words the fed uses, many, that is more than half, a strong consensus. They are ready to hike. But again, the division over inflation puts the rate hike is march in question and the pace of hikes next year. We saw that discussion as well. A few, that is not even half, but probably a few significant doves said inflation has to be rising on a sustainable path toward inflation before they will look for a rate hike, and they say the fed will have to monitor inflation developments closely. This data dependent fed. Overall, a lot of consensus on the economy doing better, but there is deepening concern over inflation, which is not playing along. Jonathan the ecb has released minutes of its october Monetary Policy meeting and they are learning that officials expressed concern about a firm date for the end of quantitative easing. Have we learned a little more about the divide the currently dominates the council . Jana a few things here and there. At the last meeting in october, when they decided to extend quantitative easing but at a slower pace, they did discuss how they want to implement that, first of all. They also discussed how they can change policy guidance, or whether they should shift policy guidance, because at the moment, progress on inflation is very much linked to asset purchases. Now, of course, if the ecb decides to end that program at some point next year, that will have to change, and that is what they discussed. Jonathan days after talks collapsed around Coalition Talks with german chancellor Angela Merkel, they may be coming to her rescue. The social Democratic Party said it is open to discuss a government led by Angela Merkel. Support could offer a way to restore political stability. How close are we to breaking the political deadlock in germany . Tony well, jon, the speculation is growing, of course with this move today, that Angela Merkel and Opposition Leader Martin Schulz will meet, it is pointing us toward a rerun of the government germany just had for four years. The social democrats are still very much hedging their words, but then of course there is the overarching issue of german stability, and there will be appeals to that in the days going forward. Abigail it is black friday. Everybody is focusing on retail sales. Spending is very strong, off to a good start. In fact, by 5 00 p. M. Yesterday, up 17 yearoveryear according to adobe analytics. Black friday actually began yesterday. What response have you seen from shoppers so far . Jeff a strong start to the fourth quarter, and yesterday during black friday, we saw that. It started well online and we opened our stores at 5 00. Last night, in a lot of our stores, it is tracking quite well. One of our hallmarks is the ability to transact online, on a mobile device and instore. Black friday is a national pilgrimage, and having great value but also being where shopping is happening in stores. 70 of america shops during the black friday window. Not all of your stores are like harold square. You have been closing some stores. You still have a fleet of about 600. The ceo said if macys was starting again, the magic number would be more like 245, it was said. Could we expect more closures . Jeff we announced we were close 100 stores. We have closed 70, so there are more 30 more to go. , there might be properties here and there we will be closing, but we serve nationally as a macys brand. The interplay between the Online Business and bricks business is really important. Our calling card a\is we are a national on the channel retailer, and that is important. Expect us to weigh that very carefully. Ramy still ahead as we review the week on bloomberg best, a bold call on bitcoin. Plus, thoughts on the gop tax reform bill from paul krugman, among others. Up next, more headlines. A chinese automaker aims to bring its brand to the u. S. Market. Feng at the current stage, our internalization process is just taken off. Ramy this is bloomberg. Ramy this is bloomberg best. Im ramy inocencio. Lets continue our global tour of this weeks top business stories. Next, in the United States heartland and another chapter in a controversial saga with the keystone pipeline. Julia transcanada has cleared one of the last hurdles for building the keystone xl pipeline. Shares of transcanada rising on the news and has given that nebraska has been given permission to build across the street. Nebraskas Public Service Commission Approved an alternative route for the pipeline, throwing some degree of uncertainty into the mix. Tina the commission did not get exactly what they wanted. What the commission did get is a proven alternative to what the company had proposed, that there were three alternatives that they were looking at. And this is one of the ones that i want to continue with the project. Is the alternative going to make a economic going forward. Rachel it is certainly a good first step or a good next step in our goal of getting more Energy Infrastructure to be able to ship our products more efficiently, less expensively, and more safely. Tom we do not need that energy, that will turn out to be an incredibly stupid decision, whereas we should be spending our time creating good paying jobs all across america. In every single rural and urban community to build the kind of sustainable infrastructure that will let our country be healthier and richer. So this kind of decision that will lead to the oldfashioned kind of pollution is incredibly shortsighted and just plain dumb. Emily uber covered up a massive hack attack covering up 57 million accounts. In hackers stole the personal 2016, data of 15 million customers and 7 million drivers. Uber, including travis kalanick, kept the breach concealed for a year rather than report it. Rather than report it, uber paid the hackers 100,000 to delete the information. Eric it is so crazy. More than a year ago, uber heard from the hackers the day it found a way to get information, names, telephone numbers, that sort of information on 50 million riders. And then information on 7 million drivers. Most importantly, drivers license numbers for 600,000 drivers. The concern here is that is information that uber was required to disclose and did not. So now, more than a year later with a new ceo, dara khosrowshahi, the company is deciding to come forward and say here is what happened. Betty toshiba planning to raise money for its assets to avoid being delisted from the tokyo stock exchange. They are raising more money. What kind of pressure is toshiba facing over this delisting . Peter well, toshiba has been in trouble for a while because of the Nuclear Assets in the u. S. This is the westinghouse business that it bought a few years back. They had a very troubled foray into this business. A multibilliondollar losses. Because of that, theyve had to raise capital. Right now, the shareholders equity is negative, and they need to move that back in a positive territory by the end of the fiscal year, which is this upcoming march. They are in a process selling the chips business. They have a tentative agreement to do that. But now they are saying that the Regulatory Approvals may take longer than that date. So they want to raise capital separately from that, so they go through the process of raising, as you say, about 5. 5 billion to be able to fill that. David looking to build itself, Marvell Technology doing so by buying a rival. The company will pay about 6 billion in cash and shares how much of this is triggered by what we have seen with the broadcom deal . Ed there was a lot of consolidation in the semi space. This deal is different in terms of putting too Semi Conductor companies together. You have on the one side marvell, who makes chips for , hard drives. And on the other side, cavium, which is networking processes, is much faster growth and it will take marvell into a different direction than what has specialized in a traditionally. Yvonne guangzhou asking Fiat Chrysler to deepen the tie to try to relax some regulations. Speaking exclusively to our china correspondent, the president said the company is poised to enter the u. S. Market. Feng at the current stage, the internationalization process has just taken off. We have laid down all of the groundwork and carried forward our car sales and Service Options in 14 different overseas countries this year. Entering the u. S. Market will be a huge breakthrough for guangzhou. Tim there are cars manufactured in china and sold in the u. S. Volvo does it, gm does it as well. If they succeed to do that in 2019, it would be the guangzhou brand. Branding will be crucial, of course. Possibly, they may have to theye the name, a name came up with about a decade ago. Downnet yellen will step upon the confirmation of the new fed chair. This is not unexpected. Michael it is not unexpected, but it was not out of the question because Janet Yellens term on the fed as a governor runs until 2024. So she could stay on. It has been done once before. But today, janet yellen is making it official. She has submitted the letter of resignation effective on her successors swearingin. What it does do is put pressure on the administration to try to hurry up and name some additional fed governors. A lot of work to be done. Lets talk about this, one of opes Biggest Airlines revenue for the full year, bang and line with what analysts estimated. 5. 01, and this is a very fluid changing landscape. Got the have dissipation of monarch and air berlin, theyve got a busted flush going through for them. Carolyn you can see in the statement weve made today, that the Forward Momentum is strong, the is looking extremely first half positive. And that is a direct result of the dislocations in the market. Out of softas come one, they have taken some capacity out as well. We have benefited from air berlin. ,n fact, parts of air berlin parts of consolidation. It is very good news for easyjet, and weve come in at the top end of guidance. And the forward outlook is good. Scarlet the hpe shares after the company said it that after february 1, we will see meg whitman step down and be replaced by antonio neri. Whitman tried to do is try to split the business, spent billions and billions in acquisitions and it is not working. She hasnt been able to turn that trend around. Despite using all the strength of the Balance Sheet and reorganizing these businesses. The onetime restructuring charges for this company was over a week right now. 10 million 100 million in this quarter alone here. I think when we look at what going on, its not so much that shes getting pushed out. Shes not delivering the results that she had hoped to four r hewlettpackard and hewlettpackard enterprise. Joe more rollbacks of obama era policy. The fcc chairman announcing plans to overturn Net Neutrality rules, calling the measure imposed, heavyhanded, utility style regulations. Practically, what would we see as ramifications from the fcc and rolling back these rules . Matthew as a practical matter, i dont think, in the shortterm term, you will see changes. In the longterm, what you have the possibility to see is changes in how Internet Service providers operate. Currently, there are three rules is it bars them from prioritizing traffic. This fcc is talking about wiping away all those rules. They said dont want to do that, but this would allow them to do that if they wanted to do it in the long term. Ramy welcome back to bloomberg best. I am ramy inocencio. Bitcoin began the week on a roll, hitting a new alltime high on monday. But then safety concerns dragged on cryptocurrencies after tether, the Company Behind another digital currency, suffered a hack. How can investors keep these swings in perspective . Mike novogratz is starting his own cryptocurrency hedge fund. He discussed the principles and practicalities of the market on bloombergs daybreak americas. Mike this whole revolution came out of a breakdown in trust. You know, it came out of the financial crisis where people said we no longer trust , Financial Institutions or governments. And in parts of the world, it is hard to trust central bank. So the decentralized revolution that bitcoin is the poster child of, its a response to the breakdown of trust. David is it an investment, or is it a trade . I ask because overnight there was a cryptocurrency i never heard of, called tether. And it there was some theft of that and it drove bitcoin down. It has come back since. But there seems to be an awful lot of volatility. Mike were in the second or third inning of this revolution. These are very young experiments. Each of these coins are individual ecosystems. With their own use case. So bitcoin, the largest, is really a decentralized system of money, or wealth. But there are thousands of other coins, 30 or 40, easily, that have their own system. Because prices move so far, like anything, people are nervous. And so you have made a whole lot of money and there is news and maybe you want to book your profits and get out. Alix to be fair, people have lots of money that they did not get back. Mike the total market cap is about 250 billion. 30 million got hacked. Stolen. So it certainly gets people nervous. We spend a lot of time thinking about security of our coins how , to keep them safe. Two years ago, when i had a smaller amount invested, i had a lot less time. What is your call for 2018 . So i think we end the year at 10,000. It is a decent move from there and we end it close to 500, in this area. Ramy still plenty left on this edition of bloomberg best. More compelling conversations coming up, including the need to resolve the brexit impasse, and the republican tax bill may soon come to a senate vote. The debate over what it means to the economy got pretty fiery this week over Bloomberg Television. Jeff how we start off with the idea that we can make a gift of 1. 5 trillion for the superrich for the heck of it is really shocking. This is bloomberg. Frankly, the possibility of having u. S. Back on tpp soon is quite low. But japan would like to make a persistent effort to persuade the u. S. To return. I believe the fact that 20 items are put on hold will encourage the u. S. To come back to the table. Ramy that was japans economy minister speaking exclusively with bloomberg about the future of the transpacific partnership. Meanwhile, in europe, continued negotiations for a separation. Talks continue to creep forward on issues related to the u. K. s divorce from the European Union. Anxiety is rising over the slow progress. Especially in the financial sector, where new rules and conditions await. We discuss the state of play this week on Bloomberg Television. When youll get brexit, is there anything the u. S. Can and should do now to break the impasse . What i think confuses the ideas of the British Public opinion is what is out there on all the attention is the amount to be paid. I understand that today, the government may authorize the Prime Minister to substantially increase that amount, but this may give the Public Opinion the impression that it is a market negotiation, a dealing about the amount of a penalty that has been inflicted to the u. K. For having decided to go its own way. This is absolutely not the case. This is not a fine on the u. K. This is just what happens when there is liquidation of any company. The different shareholders take on assets and liabilities. Much would have been preferable if these sums had come out about of a fine is going onof what about how much objectively the u. K. Has to pay. And then there are the other negotiations on the many other aspects. It is a pity, i believe. If i was a brit, i would be a bit offended that there is a price out there. I guess it is emotions, and that is kind of what you see. We heard from brexit secretary good politics is to dominate emotions, basically. In an ideal world, brexit secretary david davis says there is a 5050 chance that there will be an agreement at the december summit. Do you think it is higher or lower . He is well informed, better than me. I believe there might be a 50 50 probability. Germany is not in a political vacuum. There could be more elections. We could have a reduced chancellor, a reduced strength in germany. Could that hold back reform within europe . Is that a risk you are no considering . The European Union is a union of 28 democracies. So there are always elections somewhere, there are always coalitions building somewhere, it does not always go smoothly. This is something we need to live with in the European Union. It does not mean our work is therefore stopping. On the subject of brexit, we might see the relocation of some clearing businesses. Some investors are concerned about the higher cost of raising e. U. Based businesses. Is this something that concerns you, the higher cost of funding for European Business . We are still not in a stage of brexit negotiations where we are discussing the future relations, we are still discussing the first set of issues, citizens rights, budget settlements, the irish border. Only then can we start discussing future relations. As to the question as far as impacting business in the eu, the u. K. Is going to be a part of those conversations. But in any case, it is clear that the brexit model the u. K. Has chosen, leaving also the eu single market, Financial Institutions based in the u. K. Will lose eu passports. So they will need to rely on other forms to continue to provide business in the e. U. Ramy meanwhile in washington, the u. S. Senate is preparing to vote on his version of the tax reform bill. Guests on Bloomberg Television have plenty to say about the proposals under discussion, starting with nobel prizewinning economist paul krugman. Paul there is a case that the marginal tax rate has the two highest tax rates. The actual collections is not too high, but 35 is too high at the margin. A true tax reform that broaden the base and brought it down, actually, paul ryans original proposal was a pretty decent proposal with a lot of bipartisan support. It died because of republican opposition, but that was ok. One of the most contentious parts to this whole debate, the tax breaks that uppermiddleclass people, particularly in blue states, enjoy. Homeowners were talking 401 k s, that fell out, and of course the state and local tax elections. Is there an argument that the tax reduction that people feel like they have a right to, or sacrosanct, it is time to get rid of them . Is there something unfair about them . The mortgage Interest Deduction is not a good thing. If we start from scratch, it probably shouldnt exist. State and local governments are there for a reason. They are raising taxes to pay for Public Services, remember what state and local governments mostly do is education. Do we really want to discourage states from spending on children . That is not a good one. Not everything in there is a bad idea. But the point is, of course, it is very selective, and somehow it only goes after not so much blue states, but good things people do. Meanwhile, they are saying lets repeal the estate tax. If you look at the middleclass tax cut, do i like it . No, it increases the deficit and doesnt increase growth. The middle class already consumes more Government Services than they pay in taxes. They are going to increase their demand for Government Services. Do i like that piece of it . No. When you look at the income taxes, do i like shifting it from professionals to job creators . Yes. I do not think that blows a hole in the deficit, but it really comes down to the Corporate Tax. How are the tax cuts going to increase the consumption of federal help by the middleclass . You will slowly over time, because you are paying less for Government Services than you are receiving, you tend to want more Government Services. You will vote for increases in Government Spending if the taxes dont go up proportionally. So what you would like to keep the system and equilibrium is to charge people for the Government Services they consume and then they will want to consume less because they cost a lot. I think the real issue is when you lower the Corporate Tax rate to 20 , what impact will that have on growth and how is that distributed to the rich versus the poor . Right. I think most serious conservative economists would say it is going to cost 500 billion in tax revenues over the next 10 years. But a small change in Capital Investment can have a large impact on productivity and wages. This war of the rich on the poor is really astounding. On top of a huge budget deficit, unprecedented inequality in america, the largest wealth is soaring at the top, they want more and more and more. If you were sitting with republican senators today on the fence, what would happen in the happen in the senate and the house . Collins, mccain, flake, mr. Corker of tennessee. What would you advise them about the longerterm picture versus the medium clinical needs . Patriots should oppose this because our budget deficit is already huge and rising. This is pure populism. An unusual kind of populism, populism by the super rich. But it is pure populism. We cannot afford tax cuts. The idea has somehow gotten into our heads in recent weeks that oh, 1. 5 trillion, that we can give away it is unbelievable in any serious country. Unfortunately, we are not seriously governed right now. Governance is flaky in this country. How you start out with the idea that we can make a gift of 1. 5 trillion to the super rich for the heck of it is really shocking. Effective tax reform means you get the rates down in exchange for illuminating deductions and exemptions. You have to step on a lot of toes to do that and do it right. This congress and this president isnt inclined to step on very many toes. That is pretty obvious. The failure to take on the real drivers of the deficit, which are medicare, medicaid, and Social Security. More items need to be categorized as investments. How accurately does the budget deficit represent the fiscal situation here in the u. S. . The budget deficit is a serious problem and it will get worse. We have passed the rubicon where basically, there is a generally accepted belief that it is very hard to pay back your debt. That is when you get debt to gdp ratio of over 60 . We are at 72 , 73 range. We are headed toward 90 . There is nothing on the horizon that looks good in the area of reducing the deficit. Basically, it is primarily and almost totally driven by the Health Care Needs of the baby boom generation as it retires. That generation, which i am not a member of, is just starting to draw down on the health care accounts. It hasnt even hit the longterm accounts that are even more expensive. So there is no good news on the horizon relative to deficit unless this congress and this president want to step up and do something constructive, which they clearly are not willing to do. Took medicare and Social Security off the table a long time ago, and this congress doesnt have the courage to put it back on. Ramy you are watching bloomberg best. I am ramy inocencio. Lets return to our review of this weeks top stories. The Cabinet Meeting a few moments ago has ended with the president saying he is going to be designating north korea as a state sponsor of terror. He said tomorrow, the Treasury Department will announce additional sanctions. A quote, very large one against north korea. At this Cabinet Meeting, this statement that they must cease all support for international terrorism. Is this the first time north korea has been on this list . And i believe it is. It will be the fourth nation back on this list. North korea has already probably the most isolated nation on the planet. It does have extensive trade ties with china, but by and large, it is restricted from trade with most nations. The Un Security Council has passed two fresh rounds of sanctions this year, so it is not entirely clear how many new avenues of finance this really cuts off for north korea. I think from the u. S. Perspective, it probably does add a little heft to their argument when they meet with the other countries that still do some trade and allow north korean workers in their countries. Zimbabwe, waking up in the nation this morning to a new postmugabe era, who resigned as president yesterday, ending the 37year rule. We have the Vice President due to return to the south african nation on wednesday to replace mugabe. It is an absolute certainty, to actually be sworn in as immediate or interim president of zimbabwe today. To hopefully lead a more social economy that will allow former leaders of the ndc, the opposing party as well to come forward in securing a Better Future for the economy. There is hope, but how big it is will only be seen in time. Ramy lets get to turkey as the Central Bank Moves once again. What did the central bank do, and why are investors giving the central bank the thumbs down . The central bank reacted to the slide, liras slide this morning. Lira split to a record low and bond yields spiked. So they cut off chief funding that banks had access to. It pushed up bank funding costs by 25 basis points, effective as of tomorrow. So the move helped trim some of the losses for the currency, but a lot of investors still remain unconvinced, unimpressed. They believe the central bank needs to push Interest Rates up higher to combat accelerating inflation. Essentially, they believe that Monetary Policy remains to loose too loose. The fifth round of nafta talks will draw to a close tomorrow but without much progress. Canada and mexico were Standing Firm on the resistance of one of the headline demands from the u. S. Meanwhile, american officials are waiting for the two other countries to bring alternatives to the negotiating table. They wanted this to be a lower key negotiating session to make progress on some of the lesser issues they felt could be moved forward. But it does not appear they are getting very far on that desire either. The u. S. Demands for the rules of content for automobiles, dispute settlement, and the sunset clause where nafta would end after five years, they unless they would agree to continue it, those proposals are sticking points. The canadians and mexicans have said we cannot really move forward because it appears the u. S. Wants to scuttle these talks. Until we know where they are going, it is very difficult to reach agreements. Oil prices have climbed to the highest in two years as opec ministers prepare to meet in vienna next week. Bloomberg first reported opec and russia have crafted the framework of a deal to extend production cuts until the end of next year. Have we essentially priced in opec production cuts here . Are they going to deliver them when they are made . I think the market price, an extension of this agreement to the end of 2018 several weeks ago, in fact. And opec is now on the hook to deliver this. If they dont, i think we see a repeat of what happened in may, perhaps even a stronger downward correction than we saw then. The market was disappointed, prices fell 2. 50 on the day of the meeting, and i think that is why everyone is working so hard to get everyone on board, including russia, to agree not just to an extension, but to announcing that extension on the 30th of november. That has always been the sticking point. Ramy a former United States treasury secretary, jack lew, is adding his name to a list of government officials settling in at buyout shops. It becomes not is he going into finance . But what finance firm, and there are little bidding wars that are going on and a lot of meetings that go on in the lunch circuit. They go to the new four seasons, Something Like that. But jack lew is a fairly understated treasury secretary. Going to lindsay goldberg, this is not one of the mega buyout shops that we know, blackstone, kkr, those who have hired big former government officials. This is a more traditional mainline private equity firm that does familyowned businesses and that sort of thing. Ramy uber bought several suvs, and planning to modify them to permit autonomous driving. It is a private Company Owned by a chinese firm not affiliated with volvo ab. Why go for volvo . One of the things although volvo has going for it is the cars are quite reliable and quite safe. They have kitted out with lots of things so they can drive on the road, but they have had a backup person sitting in front just in case something goes wrong. So far, those tests have proven pretty positive. The fact they are buying 24,000 cars suggests that they are reasonably happy with how the test went. I think they had 100 of those for those initial trials. So that is what they are doing. Nestle could be going shopping, this was based company swissbased company said to be expanding into healthier food through a potential purchase of hain celestial, a maker of vegetarian foods. They may not be alone in the interest. It is one of these companies, a lot of interest in a little bit of the company. Really attractive assets. We do not know if they are going to do the whole Company Transaction or if they are going to cherry pick brands . But will hain be interested . Youre not going to selloff your crown jewels and be left with a less profitable company. The Equity Company to take out the whole of the business and then divide up who gets which assets. Take a look at the bloomberg, we have the function that shows Short Interests. It particular, you want to Pay Attention to the percentage of float that is shorted for this company, 17 . A pretty high number here, even though Short Interest has been trending lower. Ramy there are about 30,000 functions in the bloomberg and we always enjoy showing you our favorites on Bloomberg Television. Maybe they will become your favorites, too. Here is another function you will find useful, q uic go, where you can get quick takes where you can get important context and fast insights into timely topics. Heres 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 is supposed to be the case. Today, about 90 of the worlds fishing grounds are being fished are at maximum sustainable rates or are overexploited, risking total collapse. Fish account for nearly 20 of the Animal Protein consumed by people all over the world. Here is the situation. United nations food and Agriculture Organization concluded that fish stocks in the worlds oceans and seas have continued diminishing since the 1970s. And the situation in the mediterranean and black seas is alarming. Catches have fallen by 33 since 2007. And 59 of stocks are overfished. Advances in Technology Like sonar and satellites used to locate fish have sent catch rates soaring, and commercial trawling nets have left pockets of the ocean practically vacant. And there are countries like china which has overfished waters near its shores. They now send boats that encroach on the traditional fishing grounds of other nations. Here is the argument. Fishing regulations can only be set by governments and their exclusive economic zone, which extends 200 nautical miles from shore, but they have been mostly ineffective. The seasons dont seem to curb the stress put on the fish population. Another approach that has been more successful is a catch share programs. These grant a portion of total allowable harvests to individual fishers, communities, or companies. They can use those rights to catch fish or they can sell the rights. Since fishers want their shares to rise in price, they have incentive to maximize the value of the catch. Fishing when demand is highest, then slows down during spawning season, and therefore, limiting damage to the fish stocks. Another potential fix is agriculture, or fish farms. In 2014, farm raised fish have surpassed wild caught fish as a source of food for humans. But this solution may come with an environmental price. Critics are concerned that they are damaging coastal ecosystems by releasing pathogens that harm wild fish populations. Relocating the farms further inland and using systems to remove harmful contaminants are being experimented with as potential solutions. With worldwide demand for fish increasing, for once it is fish not being around that is starting to stink. Ramy and 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 of the latest business news, analysis, 24 hours a day. 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