What we are seeing now. Nejra wework has issues to work through on its way to an ipo. Investors did not like it. Nejra saudi arabia puts the prince in charge of the kingdoms oil ministry. He has a strong personality when it comes to the market. Nejra Morgan Stanley ceo speaks frankly about the fed. Ive supported the latest federated cut and i suspect they will do one or two more. But then it is time for a pause. Nejra Asset Managers apply unconventional wisdom to a changing financial environment. Investment grade Corporate Bonds are an asset class that provides foreign risk than return. I think it is plain to see that bonds are not a safe place to be. You have 17 trillion treasures at negative returns which is crazy. Nejra it is all straight ahead on bloomberg best. Hello and welcome. Im nejra che pitch. This is bloomberg best. Lets start with a day by day look at the top headlines. The tension between Boris Johnson and u. K. Lawmakers ratcheted to new levels monday as the pm stuck to his do or die brexit plan and parliament came together in opposition. The British Parliament is about to suspend its operations for a month at the request of Prime MinisterBoris Johnson and the order of the queen, but not before enacting legislation barring the Prime Minister from leaving the European Union without an agreement. Does this mean he cannot leave the European Union without an agreement . It means he has to request an extension from the European Union if he cannot get an agreement. Theres some question about whether he will find legal wiggle room or if he will make it so unattractive to grant the extension which needs to be done unanimously by the other 27 members, they would then refuse it. It is not for certain yet that there will be an extension but the law puts a huge roadblock in Boris Johnsons way and the other roadblock is the election that he has been seeking is probably not going to happen. Parliament is set on denying that. The u. K. Prime minister Boris Johnson says he will continue to work for deal while preparing to without one. He was speaking after he suffered a sixth defeat in parliament, this time over another attempt to call a snap election. No matter how many devices this parliament is bent on, i will try to get an agreement in the national interest. Parliament is out of the door for a few weeks, five whole weeks until the middle of october. The Prime Minister last night said he would try to get a deal. The parliament gets back 17th, 18th of october and that is the moment when johnson says the europeans will offer some sort of deal. He said time and again yesterday he will not do what Parliament Told him to do. And asked for this extension. Theres a lot of rhetoric coming out from both sides. It is such an eventful week for parliament. We have five more weeks until Parliament Comes back. Anything can happen. Apple is wrapping up its latest product. Pricing, the bundling of its tv plus prescriptions, and the new apple devices. This was an unusual tactic by apple. For the last few years, they have been steadily increasing the price of their phones and setting new benchmark prices for the entire industry. The 1000 smartphone is now a barrier that apple has crossed. The iphone xr, which is the least expensive, the successor that apple announced today, the iphone 11 is getting a 50 price cut. Few yearsson to a ago, that is about where highend smartphones started two or three years ago and now that seems cheap. It is unusual for apple to lower the prices of its devices. China has unveiled its first list of tariff exemptions and they are effective from september 17. Corn and soybeans, pork are not the are not on the exemption list. Is this a bullish move or jog on move . On paper, it sounds like the move towards conciliatory grounds towards china, but what they have done is a fairly is removed a fairly narrow group of products from the tariffs. 16 categories in total. You mentioned a few. Fish food and the like, but the big one that remains on the tariffs are pork and soybeans. That goes at the crook of the u. S. Of the u. S. Farming when it comes to tariffs. It could be viewed as a positive gesture, but a way to go. President trump delaying his tariffs on chinese goods, tweeting that the decision is made by the request of the chinese vice premier and out of respect for the 70th anniversary of the peoples republic. The u. S. Was set to raise tariffs on 215 billion worth of goods on the first of but that october. Has been pushed back by two weeks. Two weeks isnt in very long. Moving it away from that holiday is very important. It is a big event for xi jinping. 70th anniversary of the founding of peoples republic of china. It is very important to him and also, if you compare this to earlier in august when we had both sides raising tariffs under the dollar, by contrast, this is much more optimistic what we are seeing now. The fullscale of the damage of a no deal brexit could cause u. K. Has been revealed. Boris johnsons government published its worstcase scenario last night. A document codenamed operation yellow hammer. That it had tried to keep see keep secret. It warns of Food Shortages and disruptions of the supply chain intense disorder, pressure to return to the negotiating table if the u. K. Crashes out of the eu. Incredibly startling, something coming out last month. If you put it all together, in in a document that dont that borst johnson did not want Boris Johnson did not want revealed, in fact one part of it was redacted, it looks pretty start and it undermines his assertion that a no deal brexit would not be the equivalent of an apocalypse and will actually be ok. The European Central bank cutting Interest Rates 10 more basis points to 50, now nothing now announcing plans to start openended bond purchases. Did mario draghi deliver more than what economists were looking for . In some ways he did because the quantitative easing or the Asset Purchase Program and he is reinstating is openended. He will buy bonds november 1 and theoretically could go on forever if we see a real continued japanification of europe. Tearing what the banks have to pay in terms of their excess reserves. He is also lowering their rates on the lpr, especially if they exceed the market lending. It does look like hes doing a lot, the question is if he is doing everything it takes. The answer from the markets of far is no. Mario draghi delivered his stimulus package after overcoming an unprecedented revolt. Would you say the members of the council left thinking maybe we made a policy mistake today. We should not have done this . Im sure this idea crossed their minds. It definitely crossed my mind. If things change, the forward guidance, not after tomorrow, but i wouldnt think it is therefore the next two decades. David bloomberg reported yesterday that the Trump Administration is considering a ceasefire in its trade war with china. President trump it is something we would consider, but we are doing well. We are doing well. David china announced it would exempt pork and soybeans from additional tariffs. I think as we go towards the i think that points toward a atter moodi as we go to high level between both sides. But there is a word of caution in all of this. When the news came outhchina hae market, they need more porktulaf outbreaks of swine flu. They made noise about protecting the ip in the past. On the one hand, theres certainly evidence of goodwill gestures going on, but no signs of a major breakthrough just yet. Global bonds selloff, sending the 10 year yield to the highest in six weeks. There was not a ton of new news today, except we have retail sales better than expected. We also got a sentiment number better than expected, plus not terrible news on the geopolitical trade front and that is causing a very intense selloff. Nejra still ahead as we review the week on bloomberg best, an exclusive conversation with Morgan Stanley chairman and ceo james baldwin. Plus, one of the most influential voices in Chinese Media shares thoughts on the latest developments for trade. The possibility of achieving progress is greater than before. Nejra and up next, more of the weeks top headlines. John bolton becomes the latest white house advisor to lose his post. There were issues we would that the two were never going to ci to ion. Nejra this is bloomberg. Nejra this is bloomberg best. I am nejra cehic. Lets continue our global tour of the weeks top business stories in china, were the where the latest trade data puts more pressure on the government to increase stimulus. Bonds reacting to the bad data we had, in part of trade numbers from china, shrinking last month. Shipments to the u. S. Plunging amidst the escalating trade war. Exports fell 1 . Imports slumping 5. 6 , almost 35 billion. You are looking at contraption and exports iran year. Down 1 . The forecast had been you would see growth in august. Exports of 2. 2 . The bad news from the Manufacturing Sector is you have additional tariffs on the pipeline. You look at chinas Major Trading partners, and the pmi data suggests it is in contraption and external demand will continue to remain weak. The pressure remains. China removing one more hurdle for Foreign Investment into Capital Markets, scrapping the current 300 billion cap on overseas purchases of stocks and bonds. Whats the significance . It is significant in that china is opening up more Capital Markets to the rest of the world. But the immediate consequences will be small. The state administration of Foreign Exchange says Global Investors no longer need approval to buy quotas or to buy chinese stocks and bonds. They have lifted the 300 billion cap on that. Foreigners had only used about 111 billion dollars of the 300 billion through august. Analysts think that while this might have longterm significance, it does not really matter in the short run. Saudi arabias king summoned king solomon has installed a royal Family Member in charge of oil policy for the first time. The prince, a longtime official, and his older halfbrother, takes over after the removal of another over the weekend. The market is driven by negative sentiment. Emanating from negative use. I dont believe that demand i think with the personality i now, of the prince, he is very decisive, has a strong personality when it comes to the market and he understands the benefits to all of the producers of that leadership and im not expecting changes. I think it will be a continuation of the good work that they started. They met and out we dobby to discuss the strengths of demand. E supply and demand are defined now. Been any discussion of further cuts will wait until december. The first big take away from the oil markets was that there is no change immediately in the opec policy. There is continuity there. But the real problem was revealed in a report that the next year they will have a mountain to climb. You have demand growth softening. You have a trade war going on. You have economic turns all over the place at the same time. Output continues to expand, so opec probably going to have to come back in december to release to at least make the right noises. President trump says he fired john bolton because he disagreed strongly with many of his positions are the move ends a to mulch with march with several step acts. The announcement comes days after the president abandoned and plan to bring taliban leaders to camp david for peace talks. We dont know if there was a final straw between donald trump and john bolton. We know broadly that john bolton came into the white house with decades of very wellknown, hawkish views about Foreign Policy issues, whether it was iran or things like north korea. He was not the type of person to bend to the presidency views or or theidents views white house consensus on those. He came in with certain opinions and stuck to those. I think john bolton tried to influence the president in a lot of ways. He had a lot of success in some ways. There were some huge issues that i think the two of them were never going to see eye to eye on. David bloomberg has learned the president has discussed easing irans sanctions. That counters john bolton. How likely is it likely that President Trump may be changing his position on iran . I think the big question is what the president s position was in the first place . He has always wanted a meeting with the iranian president because that plays into his brand of personal diplomacy in believing that inserting himself into these negotiations and looking a foreign leader in the eye can produce breakthroughs. I dont think what you would be seeing is a whole wholesale listing lifting of it. Despite the talk of the underpinning of the u. S. Approach toward iran, that this maximum Pressure Campaign engineered over the last year or so is exactly the thing that is going to persuade iran to come the negotiating table. To come to the negotiating table. Germanys finance minister, fixed sticks to the balanced budget, while providing insurance in case of a crisis. He said it is essential that we are in a position with the fundamentals we have two respond have to respond with many billions if indeed an economic crisis a wreps. Crisis erupts. Does everyone agree with him or there are other factions pushing for more stimulus earlier . The stimulus debate has not started in germany. It is more international because everybody wants to get the economy, especially in europe going. In germany, it is more the feeling of our economy is still doing well, domestic demand is strong, until there is no domestic demand decline on a considerable scale. The German Government is unwilling to give up a balanced budget. While he has been saying we are ready for it and we have billions and billions of euros ready, but at the moment, there is really no crisis and at the moment, we are not doing anything. It has been a double dose of good news. That is because the mortgage giant scored an important legal victory. And positive comments from steven mnuchin. Seemingly, billions of dollars of Company Office currently go to the government could end up winding to be happy hedge funds. Yes. The policy that these hedge over ise litigating that billions of dollars of profits in every quarter go to the u. S. Treasury. The federal government. This was basically their first legal victory for the hedge funds. Up to this point, most courts have shot them down, so it is a win, but a lot of hurdles to get across because there are several Court Decisions out there that said it was perfectly legal for the federal government to take all their profits. So now you have an outlier and that is going to have to sort its way to make it all the way over to the supreme court. Scarlet President Trump is taking aim at one of his favorite targets and that is the Federal Reserve. In a couple of tweets earlier today, he urged the Federal Reserve to take rates down to zero or less. He called jay powell naive and referred to policymakers as boneheads. Today, he had a new argument, lower the cost of the federal government which was the framework of someone in the private sector and that meets the description of donald trump, but what is right for the Trump Organization is not always right for the United States. The Federal Reserve, the treasury together if you want to think of them, are trying to set Interest Rates at a place that is healthy for the u. S. Economy for businesses and consumers, which is different than trying to minimize the cost of the federal government. Nejra this is bloomberg best. I am nejra cehic. This week, Morgan Stanley chairman spoke exclusively with bloomberg about these rate of the economy, that policy and the global trend towards negative Interest Rates. He joined jason kelly and carol massar on the council of Columbia Business School in new york. It is a conundrum. At one level, we have record low unemployment and we still have mobile growth. The u. S. Economy is performing strongly. China is performing strongly. Europe is obviously mixed, but has been mixed for two decades. On one level, it is quite strong. At the other level, the sense of confidence, there is a sense of inevitability we are at the end of a cycle. It doesnt have to be statistically, there is a recession every seven years, but it doesnt have to be. In australia, they have not had a recession for 28 years in a row. Why then, so much pressure on the Federal Reserve to continue to cut rates . Does that make sense . Because the economy is slowing. The economy is slowing and the job of the fed is to balance Monetary Policy with Economic Outlook and fiscal policy. Their job is to raise rates, slow it down, and the rivers. I supported the latest fed cut and i suspect they will do one or two more, but then it is time for a pause and really absorbed absorb this because the problem with cutting, it is one of the few tools that you have got. If you give it away too easily, what do you have when you have a real problem . When you think about this negative yield world that we are living in, how does that change your view of the market . How does it change the way you deploy some assets and your teams around the world . Ia would be very supply i am very surprised with where the rates are. I would expect the 10 year by the end of the year would be around 3 . I was dead wrong. Curve has beend historically highly predictive of it. As janet yellen said, it is not necessarily so. It does not necessarily lead to a recession. How does it change our business . It doesnt. We run our business on how we see going on for the broader economy rather than any particular day. I think of the last week, you have seen the 10 year recover 10, 15 basis points. We will see. Nejra we have more compelling conversations coming up. The editorinchief for chinas most prominent state run newspaper offers insight into beijings trade policy. Strategy. Plus, noted investor explains why he is staying away from Corporate Bonds. Forthe market is clamoring fed cuts but he wonders if it will make a difference. It seems to think the lowest rates and everything gets better all of a sudden. It does not work that way. Nejra this is bloomberg. In the end, no knows what is coming next. This transformation for the industry is going to be a challenge for many. Flexibility is clearly one of the areas in particular in production we most focus on because we know from the past that markets are volatile. Because of the trade war, the market is preparing for a recession. We are prepared for that we have transformation going on. Its going to be a kind of darwinian service to the industry. We are ready for it. Nejra those were comments from top european Auto Executives speaking this week at the frankfurt auto show about the uncertainty and volatility currently shaking up their industry. Uncertainty and volatility have certainly beset Financial Markets recently as well and this week several prominent investors discussed ways they are adjusting in conversations with bloomberg television. We begin with the former president of Guggenheim Partners who now runs eldridge industries. He told Erik Schatzker why he thinks investmentgrade bonds are now a bad deal. One of the things i think we are going to continue to see is that the american demographic will continue to age and as it continues to age, its going to want more and more certainty with what to expect in the future. We believe that Annuity Companies are very wellpositioned for that. Obviously, we have to take that money and put it to work. We sit back and say, what are the strategies that we can be employing in order to put that Balance Sheet to work . Providers annuity would buy Corporate Bonds. Todd we believe that investmentgrade Corporate Bonds are an asset class that provides more risk than return. We dont think that theyre going to implode and if you look at the top 10 triple the triple b companys out there in the world, there is approximately 1 trillion of equity value in the aggregate supporting their depositions. We think those people are alarmist a little bit about the triple b. We also think that 3 or 3. 5 isnt a rate of return that we are happy with. So therefore, we have to go find other ways. We actually think by originating and sourcing that, experienced Management Team that are experts in what they do, and ultimately have access to lots of Market Opportunity in a very diverse way, its the best way to be building a diverse abide diversified asset base for security benefits. The idea that we are still only looking at a modicum extra of inflation by 2021, even with all of these measures. Its actually pretty said to sad to say for a few reasons. Number one, all this is doing is putting treasuries in europe and around the globe at further negative rates. You have 17 trillion treasuries trading at negative returns which is crazy town. Number one. Number two, its doing nothing to stimulate aggregate demand. To stimulate aggregate demand. Look at germany, for instance. Slipping into a recession of zero growth. The u. K. Slowing as well, and much of europe in what is a very slow economic environment. Number three, the equity markets, in terms of aggregate demand and what it does to earnings is not responding, either. And so, we think this is nothing more than financial repression, a way of governments around the world able to borrow very negative rates and finance their big deficits and have a the a and it be a tax on savings. Vonnie how do you think about corporate europe and that kind of environment . Is it investable if these Zombie Companies are getting more and more money for less and less interest . All this does is create more of a debt bubble. It allows companies to borrow at very cheap rates and it does nothing to stimulate aggregate demand. We think its a monetary trap being created, actually a very unhealthy environment being created. For the time being, the markets are stable, the markets will do well, but at some point, it creates this big hunger games. Where does one with capital go to earn return when you have trillions and trillions treasuries and more trillions by the month with more negative returns . Bonds are kind of complicated by the fact that they have these crosscurrents going on. When rates are low, they raise the net value of things like stocks. At the same time, theres a historic link to quality. There are these informational crosscurrents and its not clear what were going to see. Of course, the rates what they are today are an abomination. I think its pretty plain to see that bonds are not a safe place to be. Certainly not a good strategy from an investors point of view. There are a number of ways of looking at this. You should be concerned about the risk you are taking relative to the reward you might get. Some people are just looking for returns, and they say a year ago the 10 year treasury was yielding 3 . Today it is yielding 160. Some people think it is headed negative. If thats the case, i just need to hold and im going to make a lot of money. Thats a great point. I cant argue with that. You make a great point in that we need to think about a trade like that. We need to think about investing as much more a tactical allocation as opposed to a strategic one. A tactical one would be, you got to make this call, you are making this macro call. You had better be right. A strategic one would be more about how you structure your portfolio for the long run, how youre going to balance and raise your portfolio based on how all these pieces move together. Its important that people understand when they are putting all this money in bonds, this is no longer a very good strategic allocation, but it might be a good tactical one, i dont know. Steve eiseman brought another perspective from wall street this week. Like many analysts, he sees a global slowdown that could signal a coming recession. He discussed his outlook on bloomberg surveillance. Does a recession happened happen even if the u. S. China trade concern is dealt with . If we have a deal, we will still be in a partial recession. The industrial slowdown was taking place before the trade war. There are two major issues. One, is there going to be a deal between china and the u. S. . I have my doubts, but i dont have any more insight than anyone else. The more interesting to talk about is what the global Central Banks are doing including the fed, and how long that will take to work, or whether that will work . The fed started lowering rates in june. Any economist will tell you that transmission mechanisms take at least a year. The earliest that the u. S. Economy should start to pick up is next summer. That seems to be missing from peoples analyses these days, they seem to think everything gets better all of a sudden. It just does not work that way. The more interesting thing to ask is does the normal transmission mechanism of the fed lowering rates work at this low level of rates . And im starting to have my doubts about that. I think the problem is, and this doesnt need to be discussed, at this low level of rates, money has become free. Every deal has been done, every project has been funded. Every stock has been brought back. Every deal has been done, every private equity deal has been done, every startup has been ended. Funded. What free money has done is create global overcapacity, so why lowering rates should solve that, i have my doubts, i really do. Nejra finally, to another bloomberg exclusive, editorinchief of global times, chinas most prominent staterun newspaper sat down in beijing with tom mckenzie and shared his thoughts on the u. S. China trade dispute. I think the possibility of achieving substantial progress is greater than before. Why is that . I sense that the u. S. Side is also anxious because the trade war has caused adverse effects on the u. S. Economy. I can see a substantial reason why the United States will continue to fight the straightforward china for a long the trade war with china for a long time. Tom china has announced its going to make some exceptions to the tariffs that it imposes on u. S. Goods. Should we see that as a concession from the chinese side ahead of those talks in october . Hu lets not think of it as a concession, is a goodwill it is a goodwill gesture. In my opinion, goodwill shows psychological strength and selfconfidence. Its different from a concession. Tom is there an argument for debate going on within the government about trying to wait out President Trump beyond 2020 . Is that part of the discussion . Hu someone may say this on a certain occasion, but this is not a serious strategy. China has always hoped to make an agreement sooner, which would be best. If the United States continues to apply maximum pressure, with a bullying attitude trying to force china to accept conditions it cannot accept, then whoever will be elected the next president is not a very important factor and china will continue to hold its ground for a long time. Nejra this is bloomberg best. I am nejra cehic. Lets review more round up of the top stories in business and finance with a potential megadeal involving Stock Exchange operators on two confidence. Continents. Hong kongs Stock Exchange has hong kongs Stock Exchange has made a surprise 36 and six 36. 6 billion offer for the london Stock Exchange group. Any deal would upend. It remains committed to the deal, but it will consider the unsolicited proposal. To put this deal into context, it would be a massive deal on the part of an Exchange Operator in business for decades. To call it a politically sensitive situation would be an understatement given what is going on in hong kong and the protests at the moment. The Hong Kong Exchange has tried to position itself as a more Global Player rather than a hong kong or a chinese one, and that is something that they really need to consider. It could really suffer the deal stopper the deal as the steel with hong kong would be contingent on the deal to refinitiv. The parent of Bloomberg Intelligence and Bloomberg News meant to provide financial news, data, and information. The the board of the london Stock Exchange group has unanimously rejected that bid by Hong Kong Exchanges and clearing in rejecting the bid. The london Stock Exchange board said it had fundamental flaws it rejected claims that it can be completed swiftly and with certainty. They also rate regulatory concerns and some concerns about the uncertain political environment of hong kong and how that would impact the share portion of the bid. Nevertheless, it may not be the end of the story. A number of market watchers say they expect hong kong to bed once again for the lse. Concerns of a stored ipo are stalled wework ipo are continuing to flare. The rental company, apparently pushing the company to post its offering amid concerns about evaluation. A drop in valuation. The problem is that once other investors got a look at the Details Behind wework and its perspective, they didnt like what they saw. They saw huge losses, 690 million in the First Six Months of this year alone. They saw very competent and complicated corporate structure, they saw all kinds of potential conflict between the ceo and the company and investors just didnt like it. Wework has picked the nasdaq at the venue. The Office Leasing startup is also making changes in its corporate governance. Are there enough changes to be made to satisfy investors . That is the main question this morning. Theres clearly a bounty of changes. One, a lot of investors do want to see the shrinking of the multi class structure. We have not seen that. Weve seen a bunch of other things including adding a lead independent director. The board will have the ability to remove the ceo if it so wishes and his successor is now going to be chosen by the entire board. Not just what was previously construed as two directors and his wife. Saudi aramco is set to take as many as nine banks for lead ipo roles. Among them, bank of america, jp morgan, goldman sachs. Do you have an idea of timing now for saudi aramcos ipo . What we understand is that they really try to accelerate this process. Its important to know that this is going to be, and the first in the first instance, a listing in riyadh only. The International Part which has been long suggested, its not clear when that will happen, but it seems that the saudi government is determined to get the local part of this done in riyadh late this year or early next year. This morning, shares is debuting in amsterdam. The Group Includes assets from south africa and includes its 31 stake in tencent. The firm is the netherlands thirdlargest listed company. The main purpose is really to facilitate our next wave of growth. We have become, over time, a really substantial part of our original exchange where we are now closer to 25 of the index. What we realize as a company, we are still growing fast. We have organic growth rates in the 30 range, so that means we are going to keep growing and we need the right place to keep growing from here. The ipo is back on just two months after it was shelved. Bloomberg has learned the company is aiming to raise about 5 billion in hong kong by the end of september. What do we know about the deal so far . The company is now looking to raise 5 billion u. S. Dollars instead of 10 million u. S. Dollars. Actually, i would say it would be a boost for the market in hong kong because the market has been subdued for a while after u. S. Trade wars and also ongoing protests against the government for a while. So, investors in market has been really excited about a deal coming through. Smiled direct club. Shares sale sailed. You cant find a company of this size having this type of oneday drop. The offering was many times over subscribing to the teens, which is why they were not able to price above the range. To do that, you need to be really confident youre going to trade up because its really embarrassing otherwise. Its a bad look for them, its a bad look for jp morgan. I think its a good lesson for i for ipo s that are going to come about with price. Even if you feel like you got strong demand, maybe its better to be a little bit conservative rather than going for gold and trying to get that money off the table. Perhaps it is better to leave some on the table for investors. Less than a year after the fall of carlos ghosn, losing another leader. They are asking the ceo to step down following a scandal about his pay. How big of a setback is this . This is really big. From the beginning of the break of this scandal, you had questions raised about how long he would be able to stay at the top of the company. They are now in a process where they have to select a new leadership. That slows down all the forms the reforms that they had been planning to make at company and implementing changes, including their partnership with renault and Mitsubishi Motors and possibly forming other alliances, which is the big issue in the car industry in general, boosting up the capacity by forming these alliances that are necessary to compete in todays automotive world. Shares of at t higher today. This, after Elliott Management disclosed a new 3. 2 billion plan divesting assets including satellitetv provider directv. The plan is to boost stock by 50 , quite a bit to boost it by, but they suggest doing it by divesting. Theres really a multipart plan, and we have an outline of that. Part of it is to explore divesting assets such as directv, some of the landline businesses, basically the businesses that are not helping them out. Run a more efficient operation by cutting some of those costs. And stop making the big m a purchases. They are also saying that they could recommend some candidates for the board, but overall, the case here is that the idea that this stock is undervalued relative to the s p 500 over the decades and if they make changes, they can boost the stock higher to perform in a better manner. Theres a growing risk of a strike at gm. Union leaders from across the u. S. Flying to detroit this weekend to debate the latest contract. They have to decide whether to submit the deals or go on strike. What do they want, and what is gm prepared to offer . Thats what is going to really get down to the brass tacks in the next two days, because it got a deadline saturday night. There are a lot of problems with this contract. On one side, you have a union that has said we have seen four years of prosperity that we did not get to participate in fully because the old contract was done before then. Gm is saying, not so fast, things are not so bright. We had to cut. The big issue will be jobs. As we know, gm has plans that they put on what they called unallocated status which means they are probably going to close or are being threatened with closure. The union wants products in those plans that guarantee jobs. That will be the big fight over the next few days. Enough careers for a halfdozen people, in reputation as a corporate raider. A billionaire editing investor and a tv pitchman for wind and natural gas power. Yesterday, he died in texas at the age of 91. I am sorry for your loss, i know that you were actually quite close friends. What is going to be the biggest thing that you remember about your relationship . We are going to miss him, it makes me very sad. He had a life to celebrate. He exemplifies the very thing that i got involved in this industry for, and that was the legacy of giving and generosity by so many very highly successful people. Hes going to be remembered for that. And what he has done, particularly with the school that he loved, my home state university. Nejra dont forget, our interactive tv function. You can watch is live, catch up on past interviews, as well as dive into any of the securities or bloomberg engines that we functions that we talk about. You can also become part of the conversation by sending us instant messages during our shows, you can tell us whether or not you agree with trumps sentiment about the fed being a bunch of own heads. Boneheads. Nejra there are about 30,000 functions on the bloomberg, and we enjoy showing you are favorite on showing you our favorites on bloomberg television. Maybe they will become your favorites. The function rich go will take you to the bloomberg built in her index where you will find chinas wealthiest man who stepped out with the executive chairman of alibaba, handing the job over to the new ceo. The company has revenue of more than 56 billion in the last Financial Year and has given its founder a net worth of more than 40 billion. Bloomberg took a closer look at jack mas remarkable life and career. Jack ma started off teaching english more than 20 years ago for just 50 a month. 15 a month. In 1999, he jumped on the internet train, setting up a platform for businesstobusiness selling. That was alibaba. After that, he took a net ebay which let individuals trade with each other. 2007 was a milestone alibaba listed in is this division in hong kong only to the list five years later as delist five years later as performance sagged. However, the company made a big comeback in 2014, with 25 billion in new york. The worlds biggest ever ipo. Everybody should have a dream. What if that dream comes true . He leaves an empire that has expanded aggressively with news media the name quite a few. The challenge ahead, in the face of growing competition and the slowing chinese economy, maybe sustaining that growth. He has warned about the u. S. China trade war saying the impact could last decades into the future. He also encouraged for growing businesses to find opportunities from it. Jack ma has not forgotten his roots. December 10 is teachers day in china. Nejra that was just one of the many videos you can find on the bloomberg. You can also find them on bloomberg. Com along with the latest Business News and analysis 24 hours a day. That will be it for bloomberg best this year this week. Thanks so much for watching. This is bloomberg. Carol welcome to Bloomberg Businessweek. Im carol massar. Jason im jason kelley. Carol this week, building on the franchise of Bloomberg Businessweek magazine and its ranking of the top programs, we went to one of the top schools in the world. Jason we got to have class outside over at Columbia Business School. We heard from faculty driving the program. Carol so much fun on college watch, we also talked with highprofile alumni who continue to shape the bune