Transcripts For BLOOMBERG Bloomberg Best 20240713

Neede consensus shows no for a rate move next year, either. Erand the Christine Lagarde gets ready at the ecb. The worlds biggest ipo opens with a bang. Is or isnt saudi aramco worth 2 trillion7 some major banks announced changes and cutbacks. They have to meet their efficiency targets they set. Rosalind the eu unveils a plan to go green that has some businesses seeing red. You see there is pushback. Taxation does nothing for the environment. Rosalind its all straight ahead on bloomberg best. Rosalind hello and welcome. Im Rosalind Chin and this is bloomberg best, your weekly review of the most important business news, analysis, and interviews from Bloomberg Television around the world. Lets start with the day by day look at the top headlines. Another week began without a trade deal between the u. S. And china, and fresh data released on the weekend showed the trade balance shifting between the two superpowers. Chinas exports unexpectedly fell last month as Global Demand continues to wane and a trade deal remains tantalizingly out of reach. What happens with trade data when it comes to a trade deal . It is a reminder how punishing these tariffs from the u. S. Have been on chinas manufacturing sector. We just had that highlighted again with the trade sector over the weekend, so exports overall from china falling 1. 1 percent. To the u. S. , exports were down 23 . That was a 12th straight monthly decline. The expectation is that retailers and companies will be loading up on goods from china ahead of the Christmas Shopping season, but that does not really seem to have played out. Bloomberg reporting u. S. Tariffs that take effect on sunday will be delayed according to chinese officials. Meantime, House Democrats said they will back the usmca trade deal at a vote next week. Theres no question this trade agreement is much better than nafta. It is a remarkable day in what is a highly partisan washington when we see a bipartisan agreement on a trade deal. Trade politics are always tough, and democrats today backing donald trump, although insisting they really fixed the trade agreement that they called fundamentally flawed when trump brought it to them. The second piece, though, is the more market moving news that we have seen, which is the chinese tariffs. We do know the president , we are told, has not yet made a decision on this. He, for a long time now, has been looking for a way out of these tariffs. He has a lot of advisors around him and a lot of people in the Business Community warning these will be a huge disruption for the u. S. Economy going into an election year. House democrats unveiling two articles of impeachment against President Trump. One on the abuse of power, the other obstruction of congress. Walk us through what happens and how quickly this could all unfold. Very quickly. The next step would be what is called a markup either tomorrow or starting thursday where the Judiciary Committee members would actually write up the forms of these articles that would go to the house floor for a vote. It goes to the floor next week perhaps as early as tuesday for a historic vote. Saudi aramco jumped 10 and the daily limit in its trading debut in riyadh. Shares advanced, giving the company a market value of 1. 8 trillion. What were the highlights today7 . We reached 35. 2 saudi currency a share. Its a big jump, getting us closer to arguably one of the most controversial topics of the last year is or isnt saudi aramco worth 2 trillion . The government has tried very hard to get it in the right direction, so part of that includes just not offering as many shares as originally thought. So just 1. 5 of the company is being offered. There is still potential for upside. Goldman sachs has an option for 450 million shares that they can exercise in the next 30 days, and that is going to be absolutely critical, francine. We are awaiting the final fed decision of 2019. The Central Banks fomc is expected to keep its Interest Rate unchanged after three straight cuts this year. As boring as forecast, no change in rates today. The dot plot shows no need for a rate move next year as they stay on hold through the 2020 election. Nobody is calling for a rate cut next year and only 4 of 17 see the need for any rate increase. Of course if developments emerge that causes a material reassessment of our outlook, we would respond accordingly. Policy is not on a preset course. This is a fed that is increasingly confident that three cuts was the magic number. They are going to sit back. The hurdles are high for additional action, even though the dot plot shows the next move will be a rate hike. In fact, at the current time, the hurdle for a hike is actually higher than additional easing. So what the fed told us today was we will see you on inauguration day. The ecb leaving rates and policy unchanged. Christine lagardes first meeting as the head of the central bank, delivering a positive message about the euro zones economic slowdown. She was optimistic. She said there are still risks to the downside, but they have lessened. The uncertainty, she said, has loosened. She seemed to be more optimistic about her Inflation Expectations as well, even if it is not still at the target she wants to hit. Also, she talked a lot about the review they are going to do, this strategic review. She said its about time. Theyve had 16 years since the last one. She knows they were very busy previously, but now is the time to do it. She says it will not take that long. She wants to start in january at some point and be done by the end of 2020. The president tweeting a little bit earlier on the following, basically indicating that we have a very big deal on the way, getting very close to a big deal with china. They want it, and interestingly enough, so do we, and it is that last bit that i think is quite important. Stocks moving on the back of that. It sounds like we have a deal. It does, and markets have been positioned for delay in tariffs that are due to take effect on sunday, but when trump tweeted about a deal, that sent a signal that the most bullish scenario for investors might play out. By the looks of things, any escalation in the trade war will be put on hold and a deal will be announced. We have the market closing, the s p and nasdaq closing at new alltime highs on the hope that there will be resolution to a phase one trade deal. U. S. Negotiators have reached the terms of a phase one trade deal with china. That agreement awaiting approval from President Trump himself. We know President Trump signed off on the deal. We know they have an agreement. We are still waiting for the deal to be codified into legal text. We are still waiting for the details. Hugely significant that President Trump has signed off. December 15 tariffs have been held back, at least for now. It is official, the conservative party enjoys a majority in a historic u. K. Election. Boris johnsons victory will allow him to carry out his main promise to get brexit done. The pound has jumped the most since 2017, also hit its highest since may 2018 against the dollar. With this mandate and majority, we will at last be able to do what . Get brexit done. What a night. British politics upended in this election. We got a conservative majority, the likes of which we have not seen since the heyday of margaret thatcher. A disastrous night for Jeremy Corbyns labour party. He announced he will be stepping down. Mr. Johnson now the most powerful politician and the most powerful conservative leader, i should say, for a generation. Of course he will get his brexit deal done by the end of january. He has to get it done, then he has time to negotiate, the arrangements, the practicalities being outside the eu. If you get to the end of the deal, he has only got to crash out and we are back to no deal brexit. How will Prime Minister johnson how will his new government he greeted by brussels in the coming weeks . The sense here is really relief now that he finally has that big majority. He promised he was going to deliver, and the europeans are expecting that he does deliver. This is not about boris johnson. This is not about europeans magically liking boris johnson. This is purely pragmatic reasons. They feel that with him they are going to get that orderly brexit and they are going to avoid chaos. Europeans, of course, do not want to be undercut by a u. K. That does not play by brussels rules. Chinese officials saying we have reached an agreement with the united states. The sides agreed to complete the last stages of the phase one deal. The sides will work out the details. The chinese said the u. S. Will remove some tariffs on chinese goods in phases. This is really the first time we have seen President Trump, who has called himself tariff man, roll back any tariffs, and that is a pretty big confidencebuilding measure here. The big problem with this agreement, and we are already seeing folks point to it, including chuck schumer, the Senate Minority leader, and that is this does not address some of the big longstanding american complaints about the chinese economy, and that is things like industrial subsidies. President trump says the tariffs that are still in place will give him the leverage for phase two of the negotiations, but we do not know when that phase two is going to start and we have a lot of folks telling us they do not expect phase two to conclude any time before the 2020 elections. Rosalind still ahead as we review the week on bloomberg best, deutsche banks ceo says his firm is prepared to deal with Interest Rates that stay lower for longer. It is mitigating measures. And it shows us there is potential to offset. Rosalind plus, the wework cleanup continues. Goldman sachs is now involved. Next, more of the weeks top headlines. The report on mayhem in the repo market. The findings are alarming and so is the timing. The fact this is coming in december is going to make people a little more nervous. Rosalind this is bloomberg. Rosalind this is bloomberg best. I am Rosalind Chin. Lets continue our global tour of the weeks top stories in europe, where the new head of the European Commission rolled out an ambitious plan to combat the climate crisis. Ursula von der leyen will present her green deal in brussels today, including a timeline for various laws to be put forward between now and the end of her term. What do we expect today . This could potentially be huge. We are talking about a green deal that could change the way Many Industries in europe operate. We know she has said said she wants to make europe climate neutral by 2050. The goal is ambitious. The deadline is tight. It could change many aspects of the european economy, the way carbon is priced, the way some of the taxation is being implemented, and she has also promised one trillion euros to pay for this. She is going to need Public Investment and also companies, European Companies to play along , and that is really the question at this point. Already there is pushback from a number of industries. This is not going to affect everyone the same way, and you see the European Commission saying this is something they strongly believe in and they are going to go ahead. Hong kong, protesters calling for a general strike after the biggest prodemocracy march in months on sunday. 800,000 people is what the organizers say. This went from Victoria Park all the way here to the Central District and it was very much like a deja vu where families showed up as well. And perhaps they were prompted to come out after police for the first time approved this rally , for the First Time Since august. There were some nerves headed into this event, but overall, pretty calm. Chinas consumer inflation accelerated to a sevenyear high last month, fueled by a 110 year on year surge in pork prices. Core inflation, which excludes food and energy, came in at 1. 4 . Meanwhile, factory gate prices extended their run of declines, complicating the pbocs efforts to support the economy. Walk us through the divergence that we continue to see. Manufacturing deflation versus food price inflation. 4. 5 for november, inflation well above the forecast. Its the highest number, as you said, since 2012. The flipside, the producer prices, they dropped 1. 4 for the fifth straight month. So the question is does this central bank look through this, looking at core inflation, which you say remains relatively stable once you strip out food and energy prices, or do they bind their hands and make it much more difficult to enact aggressive stimulus should the economy continue to slow . Saudi arabia released its latest budget. What did we learn about spending as well as revenue increases . The kingdom is embarking on three years worth of spending cuts, which is a bit of a uturn. They are confident enough they can start relying on the private sector to pick up the slack. The folks at Bloomberg Intelligence and our chief economist for the region has crunched the numbers, and he says this budget is a little more realistic down from 85 a barrel from the budget basis assumption to about 61 a barrel. Just above that key mark going into 2020. The bank for International Settlements says september s mayhem in the u. S. Repo market was not just a temporary hiccup. We know that repo is more of an issue in the calendar year end when there is windowdressing around Balance Sheets and therefore more demand for cash, and that means people are already sensitive, worried about what might be the squeeze, and suddenly we get this report saying that there is a structural problem and that maybe the temporary hiccup we saw in september will not be fully resolved with the feds recent operations in the repo market. One of the conclusions of the report is that people were less familiar about managing these transactions, the banks were less well staffed and experienced for handling these type of transactions. Also some views from the banks themselves. Jp morgans ceo, jamie dimon, said it is actually regulations that prevented his bank from moving in to provide more liquidity when we did have problems in september. There are a lot of issues contributing to this. I think the report is coming out, even though it was a report that could have come out any time of year, it wasnt necessarily time sensitive. The fact it is coming out at the start of december is going to make people a little more nervous. In turkey, a surprise from the central bank. It cut its Interest Rate when policymakers were emboldened by the stability of the lira. Plus, they were egged on by turkeys president erdogans calls for more aggressive easing. The lira has enjoyed the past six months. Erdogan has sacked his Central Bank Governor in early july. Since then, the new one has overseen a whopping 1200 basis points of rate cuts. The Central Banks wording did suggest that it will slow down the pace of easing now, and the real base rate, taking into account inflation, is now down to 1. 4 , so if you look at that, it does not seem as if the central bank has that much more room to cut rates. Unless it can pull down inflation. Another central bank chief has unleashed a staunch defense of negative Interest Rates. The president of the Swiss National bank insisted the controversial policy is the only way to keep the franc in check and help the economy. The current monetary foundations are adequate, so we have no reason to change Monetary Policy. If you look at our inflation forecast, it is very low. Almost zero. We have a gross rate that is roughly 1 . Next year, maybe 1. 5 to 2 , so we have no reason to change this Monetary Policy. Israel heading to its third election in less than a year. Thats after Prime Minister netanyahu and his main opponent benny gantz failed to form a majority. Polls signal another election might not resolve the crisis. What is at the heart of this political impasse . Well, at the heart is the Prime Minister himself and the indictment that he is under now. So the Opposition Party is basically saying they would like to go into coalition with the ruling likud party. And netanyahu is saying we want to do this coalition, but the issue is the opposition leader, gantz, is saying not as long as netanyahu is under indictment. They dont want to do the deal then. And at the same time, the party is saying, basically sticking to netanyahu as their leader. Rosalind you are watching bloomberg best. I am Rosalind Chin. Deutsche bank told shareholders this week its latest Restructuring Plan is on track. The german lender said fixed income trading is up from last year. It also announced the ecb has reduced its capital burden for next year. The ceo told bloomberg the bank has acted decisively to reduce the impact of negative Interest Rates. We took swift action in terms of passing on negative rates to our clients, particularly on the corporate side, but also the High Net Worth wealth management. We see from the first five months in this bank how much potential is there on the revenue side, but also on the cost side. All in all, looking down the road for the next three years, that gives us, we are hitting all the goals. The comfort that we can achieve despite these challenges, our 8 return on equity in 2022, so therefore we are confident that we can achieve that, recognizing clearly the challenges, but with the track record we have, we have seen no reason to adjust. You talk about passing on the costs. And in the release, you say you have taken substantial measures to offset negative rates. Can you elaborate on what kind of measures those measures are . On the one hand, as we set already three or four weeks ago, we started to pass on negative Interest Rates to certain client segments, be it on the corporate side, be it on the ultra High Net Worth, but we focus far more on and even optimized advisory for our clients to change deposits into other investment funds. A lot of good work has been done in the private sector, also to really make sure that clients are benefiting from that. We do get a benefit from the ecb, there is no doubt, and we have also in a conservative way started to increase the one or the other loan books segment in order to offset, so it is a flower of mitigating measures, and it shows us there is potential to offset. Can you imagine Interest Rates staying negative . Are you prepared for Interest Rates to stay negative the next five or 10 years . I think we have taken the conservative outlook on the Interest Rates. Therefore in this regard, we also changed our underlying planning. You know, i think we have, and that is in part on my side, we have been lower for longer. Thats part of our overall plan, so we have prepared for that and we need to adjust our interest model, and you know what . We started to do that in july. Rosalind coming up on bloomberg best, more news from european banks, including a profit warning from Credit Suisse. Plus, reaction to the eu commissions new Climate Policy plans. And more on the outlook for Monetary Policy and the eus new climate plan. The efficacy of further negative Interest Rates i think is questionable. Rosalind this is bloomberg. Rosalind welcome back to bloomberg best. Time now to revisit more of the weeks top interviews. Lets start with eight interview a conversation about risk and return. Diamond asia capital putting almost a third of its Flagship Fund into a fund that can profit from socalled black swan events. Erik schatzker spoke exclusively cocio, who thinks markets are underpricing risks. Easing ofmoment the china on the rates front has been very small. I think it is partially because china wants to maintain a stable renminbi for the moment. View isollows fails, my china needs to cut aggressively, do stimulus aggressively, come up with the equivalent of the five arrows in terms of reforms and fiscal policy, even quantitative easing. And i think that would lead to a weaker renminbi. Eric are you already positioned in that capacity . . Re you short renminbi7 danny i am very bullish on the chinese economy. When china cuts rates more aggressively and does more on aggressive fiscal stimulus, i will be bullish on chinese equities and fixed income, and that will also in time lead to a weaker renminbi. Eric what percentage of your portfolio is positioned in that risk dislocationhunting investments at the moment . Danny i would say about 30 but it varies. There are moments where it could even be higher. In the past, you see dislocations maybe twice a year. But now, it may end up being more stretched out where it will be two or three years before you see a big move. If and when that happens, my belief is it will be a lot larger than it used to be as well. The incidences are less but the magnitude is going to be more. Eric as big as the last crisis . Danny in 2009 . I would say it depends on what the trigger will be, but i would not rule it out. Because everyone is long right now. Rosalind European Finance was the focus of bloombergs exclusive conversation with the vice chairman of blackrock. Francine lacqua asks if he thinks the European Central bank might take negative Interest Rates even lower in 2020. They could. I think there is some room left in theory. I think they would prefer not to do that for many reasons. The efficacy of further negative Interest Rates is questionable. Certainly, the side effects we know are significant. I suspect it will not be required at least in the baseline scenarios. I think the preference would be to certainly not to have to do that. We will see what the macroenvironment provides. The outlook is not terrible. The market is probably too pessimistic, particularly on price pressures and even on inflation, including in europe. Francine would you worry about for 2020 . I know there is concern about liquidity in the markets. Especially the end of the year. What about 2020 . Phillipp the biggest risk in 2020, what i worry about most and what we worry about most, it continues to be political surprises. Big political shocks. Trade risks manifested themselves in actual risks. It began to influence the markets and economy in 2019, so we hope we can at least move that sideways. If we can stay away from big political risks materializing, that would be positive. My sense is the market is underestimating that inflation could become a story. Nothing dramatic. But basically, you see it in the nonfarm report. Wages are coming up. Even in europe, inflation is seeing some signs of life. I think from a banking perspective, that could be a positive. Rosalind there was much discussion of the green deal, the new program put forward to buy the European Commission to make the eu Carbon Neutral by 2050. The proposal would have an impact on national government, investors, and Many Industries including the Airline Industry which will face higher taxes to offset its emissions. The ryanair ceo said exactly what he thinks about that aspect of the plan. Taxation does nothing for the environment. We have explained to the new commissioner of transport this morning that the European Airlines are investing 170 billion over the next decade, buying new aircraft which will carry more passengers but burn 20 less fuel. So we are already investing very heavily as an industry to deliver growth and a much more sustainable way, in an environmentally sensitive way, and taxation would set back that agenda where we are already delivering. Thats great, but i would imagine the eu response is that thats not enough. The Airline Industry is threatening to overtake power and utilities as the biggest emitters, and unfortunately, ryanair is one of the biggest emitters among the airlines. What do you think the industry can do to absorb higher taxes . As well as research . Michael i think there is a lot of misinformation. First, the air industry is if anything one of the most efficient industries. We account globally for less than 2 of co2 emissions. Shipping accounts for 5 . Yet for some reason, nobody says to tax the ferry. Despite the fact that we account for 2 , we are investing heavily to further reduce those emissions. By investing in new aircraft, new engine technology. These technologies are very much at the formative stage. It was one of the issues we discussed with the commission this morning. The commission needs to step up to do more. We ourselves as an airline, we pay 630 million a year in aviation taxes. What is that being spent on . It has been trousered by european governments. We want to bring forward the supply of Sustainable Aviation fuels and to increase or improve the Battery Technology that will help us lower the Carbon Footprint of air travel in europe from the already low figure of 2 . How should the Asset Management industry view big oil, as a gateway to renewables as some try to tell us or to avoid them entirely . If we look at how human activities lead to Greenhouse Gas emissions, oil is one big part of that, also coal, and some parts of the Energy System are easier to decarbonize than others. We have technologies leading to odwer carbon power, a go achievement, and there can be more focus there. But even in a world heading toward net zero omissions, in emissions by the mid century, in line with what scientists tell us is necessary, even in such a scenario, we can use oil and gas for some sectors. Some sectors are much harder to decarbonize. We dont have the technology yet. Things like aviation, that remains difficult, and maybe for petrochemicals. Some other sectors as well. We can still use oil and gas. But whose, shares in which companies we want to hold. We look at things like the operational emissions efficiencies of those companies and how much they are transitioning toward alternative energy in their mix. You can differentiate between some of the very Large Listed Companies on some of those metrics. An esg investor or manager of a fund would want to be thinking how much that would want to align their assets with two degrees, or indeed 1. 5 and then taking a view of how much oil and gas we need in such a world. Rosalind this is bloomberg best. Lets resume our roundup of the weeks top news in business, politics, and finance. Some of the worlds biggest banks were in the spotlight this week, reshaping their businesses. Hsbc kicks things off with a sweeping overhaul of the csuite. Ceo shakingrim things up a little bit. They are replacing their Top Investment banker, chief operating officer and chief risk officer, a confident mover for a man who is interim ceo. It hints at the idea that he is confident he will be able to drop interim pretty soon. Pretty forceful move, for somebody brought in as the interim guy. So maybe speculating hes putting a stamp on it. You cannot rule out one external candidate mentioned quite a bit stephen byrd formerly of , citigroup. He has left in their most recent shakeup of that bank. He has long asiapacific experience, but so does noah quinn. He ran the commercial bank out there for hsbc for several years. Scarlet Morgan Stanley is tightening its belt. Eliminating 1500 jobs globally. Is their strategy here or is it just about reducing headcount overall . The strategy is they have to meet their efficiency targets that they set. Whats interesting, they called out that it is folks in the operation and Technology Units of the bank. We have been seeing banks invest in automation and other technologies. We always kind of knew that some of those back office jobs would disappear. This is the first time we are seeing a bank say this is going away. Credit suisse this morning in focus, casting its main target for this year and the next. Trade tensions and negative Interest Rates weigh on the bank after a threeyear restructuring. How much of a surprise is this news from Credit Suisse . Analysts have been hinting at this for a couple of weeks. I still think investors are going to be a little bit surprised, but most of all, disappointed. Credit suisse has cut back its main profit target. On the plus side, the capital returns, the share buybacks and dividends, they are safer now. You never know what is going to happen in the next couple of years. Deutsche bank considering deep cuts to bonuses for this year. Bloomberg has learned they could be cut as much as 20 . The ceo is trying to eliminate billions of dollars of costs. If that happens, doesnt all the talent leave . Deutsche bank and obviously they have been trying to turn around this Investment Banking unit. The real challenge, how do they retain talent while also cutting that bonus pool . And they are still considering this plan. They may choose to pay their top performers as much as they can so they stay on board for them. What the Investment Bank looks like a year from now will be an interesting story. Westpac chairman Lindsay Maxted says there is truly sorry after he may have expose people to harm after the Australian Financial Crimes Agency failed to detect transactions linked to child abuse. The bank is also reeling from of money laundering. A scandal that has wiped 5 billion off of the lenders market value. However sorry they are doesnt alter the fact in the minds of many shareholders that this happened. Today we are currently at the moment of shareholders questions. These are mainly from small , retail shareholders. Not the kinds of people who normally get to have their say at management. And there has been shareholder one after another demanding to know what was wrong with the culture that allowed these mistakes to be happen and not be reported to senior management. Did somebody miss something . Was there not enough investment in technology . Just what happened . The bank is making a start by saying sorry, but they have to get a lot more precise to make shareholders happy. We are learning softbank is tapping Goldman Sachs for new financing to help revive one of its biggest bets wework. ,goldman will arrange a line of credit for 1. 75 billion. The keyword is softbank. It is effectively a wework loan. But softbank is on the hook. Thats the interesting thing about the structure of the loan. It is a 1. 75 billion letter of credit, and we are reported that goldman has reached out to other banks on wall street to see if they would be interested in participating. What is making it more tenable is that softbank is the borrower wework is the coborrower. Anybody who might think wework is a hairy name, they have softbank as a guarantor. Nestle is selling its ice cream business to a joint venture with private equity firm dai partners. It is valued at 4 billion. The deal aims to create a stronger challenger to unilever. Take us through first off how the deal works, because they are selling u. S. Brands to eight joint venture that already owns some european brands in order to take on unilever. Correct. Westernsold the european businesses in a joint venture 10 years ago and formalized that in 2016. If you looked at the global ice cream market, they were number two and number three. Putting the u. S. Business will give them a 10 share and it gives them a chance to compete and bring out new products in that market to compete with unilever. Shares of boeing lower today. The certification of the 737 max will extend into 2020. This is something the company has repeatedly had to deal with. They have set goals and they have missed them. The most recent update was they thought the faa might give them leniency to start delivering the max by the end of 2019 even if the airlines couldnt technically fly them yet because the faa was working on Pilot Training requirements. The messaging today leads me to believe that will not be the case. The reason that is problematic, if you are not delivering planes, you are not getting paid for them. After days of strikes, the french crime minister has laid out his governments new public pension system. The government says the full retirement age will now be increased for the countrys youngest, but after a series of concessions. Labor unions say the plan will basically not do enough. And they are going to keep up the heat. What is going to happen now . We have 42 different systems for the pensions, and the french crime minister has said i just want one universal system for everyone. He said thatday, to actually get the fullest pension you will now have to work in france until 64 years old when the official age at the moment is 62 years old for full retirement. So the question is of course weather with the details of the pension response, if this will make the French Public opinion switch either side before the Prime Ministers speech. Public opinion in france was almost equally split. The World Antidoping Agency has banned russia from the olympics and other International Competition for four years now. In a email statement, the agency said russia was afforded every opportunity to get its house in order and rejoin the antidoping community for the good of its athletes and the integrity of sport, but it chose instead to continue deception and denial. It was clear russia as a National Team cannot compete over the next four years including the summer olympics in tokyo. The Winter Olympics in beijing. And the world cup in qatar. And only those individuals who can demonstrate they had no association with any of the doping scandals will be able to compete and then under a neutral flag with no russian officials permitted to attend at all in the next four years. Saudi aramco jumping for a second day, pushing the oil giant value beyond the 2 trillion mark. What has been driving the stock, and how likely is it that the gains will continue . A lot of people expect to see Government Funds coming in and supporting that. You have hedge funds that are likely coming in and betting on the index inclusion story that will happen in around another year. If we have a few days of this kind of limit up 10 each day, we will see some of the Retail Investors looking to cash out of the stock. That could start a bit of downward pressure on the aramco price going into the new year. Paul volcker has died. The former Federal Reserve chairman led Barack Obamas bid to rein in proprietary risktaking at commercial banks, in what was described as the volcker rule. He passed away yesterday at the age of 92. What did he invent in terms of Monetary Policy . He changed the way the fed went about carrying out Monetary Policy. Instead of targeting Interest Rates, they targeted the level of money supply which created a whole new class of employees at wall street firms. Fed watchers who had to figure out on a week to week basis as best they could where they thought the funds rate would be trading from watching the money supply as well. That was a different way of doing it. It ended of course when volcker left, and they went back to the old system, but that was his contribution to the mechanics of Monetary Policy. The bloomberg mliv asset survey is now open. We are looking to see where you think nine different Asset Classes end up around this time next year. You can visit the website to get your forecast in and put your reputation on the line. Rosalind there are about 30,000 functions on the bloomberg and we always enjoy showing you are our favorites. Here is another you will find useful. Quic. It will take you to our quick takes where you can get insight into timely topics. Heres a quick take from this week. Chitty chitty bang bang, and blade runner, and harry potter, all feature something people have been dreaming about for decades flying cars. Now that Autonomous Vehicles are being tested, it is natural to ask, are flying cars next . Although jetsons style family flight is probably decades away, air taxis could be in wide use by 2030. Those would be less like a flying car from the movies and more like a hobbyist drone that has been enlarged to hold half a dozen people. They are designed to be lighter, quieter, more environmentally friendly and crucially less expensive to operate than helicopters. A major difference is they will run on electricity. They will not to be used like a typical ondemand taxi in the beginning, more like a ferry running on a schedule between two points like an airport and downtown, for example. As Technology Regulations and popular acceptance advance, they could be operated remotely and eventually autonomously, driving down costs. There are more than 70 companies that have projects in development. Some are working prototypes. So far, the biggest technological hurdle is batteries. They are large, heavy, and do not last long. Thanks to the development of electric cars, Battery Technology is improving rapidly, taking us closer to our flying vehicle dreams. Of course, there is still a lot of regulatory hurdles. Airspace would quickly be crowded if just about anybody could become a pilot. In the u. S. , federal Aviation Administration can take years to certify a new helicopter and the air taxis could take longer. First regulators will be especially cautious about pilotless flights. But test flights could begin soon and uber elevate hopes to connect major American Cities to their suburbs by 2023. In the meantime, Driverless Cars are expected to reduce traffic and take passengers doortodoor , potentially diminishing demand for flying vehicles before they have even taken off. Rosalind that was just one of the many quick takes you can find on the bloomberg. You can find them at bloomberg. Com along with all of the latest news and analysis. That is all for bloomberg best. Thank you for watching. I am Rosalind Chin, and this is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Carol welcome to bloomberg businessweek. Im carol massar. Jason im jason kelly. Carol this week, Silicon Valley is listening to you. The humans behind smart devices, they are hearing more than you think. Jason and taking a bite out of lululemon again. Investorrivate equity returned to help fix it