Transcripts For BLOOMBERG Bloomberg Best 20160508

To put our content everywhere as long as we are paid for it yvonne we are all over the global conference with expert insights on the state of investment. Companies are not avoiding paying u. S. Taxes at all. Its off the table . Yvonne its all straight ahead on bloomberg best. Yvonne welcome. This is bloomberg best, your weekly review of Business Analysis from around the world. Lets start with the daytoday look at the top headlines. The week began with a bang as a huge merger imploded. Halliburton will have to pay 3. 5 billion after they call that their proposed merger. In the face of fierce resistance of u. S. Regulators and the justice department. For baker hughes they are going back to the drawing board and how they are going to go ahead. They are doing a 1. 5 billion stock buyback. I think the question now about them cutting costs, they say they can illuminate 500 million throughout the end of this year. I think the plan that management needs to prove to investors is how they will execute on that. And then for halliburton, halliburton dug themselves into a little bit of a whole with a 3. 5 billion breakup. Even though they are taking share in north america, the international portion of the expansion and the market share piece that baker hughes was going to help them out with is now compromised a little bit. The ultimate winner is schlumberger. Now they dont have to deal with a new baker hughes and halliburton merger. A slew of European Bank earnings out this morning. Bnp is the only one whose share price is rising today. We had a difficult First Quarter. The negative Interest Rate environment and nevertheless we have a Strong Capital ratio. A low risk profile. I think the Market Reaction will ease out. There may be a lot of factors that affect market sentiment. Its not the kind of volatility that is translating to client activity. Its a paralyzing volatility. They were concerned about global growth. There were concerns about the regulatory treatment of some subordinated debt. And the labor uncertainties about monetary policies. Francine it seems at all the fears we had for some of the treaty revenue was looking very ugly. You dont have visibility and were concerned about volatility . Absolutely. You can just say it was an objectively bad quarter. Revenues were down. There were no more that is on litigation which is good news. Basically the focus is on cost. Can they execute . And what do they have to protect themselves of it gets worse . Lets turn did last nights surprise decision. What are your Key Takeaways from last night . There is only one key take away. It is obviously clear. Even before cruz decided to drop out, i thought that was clear that trump won by the scale he was on. Cruz just made it official by dropping out last night. We now have a signed, sealed and delivered republican nominee. How does donald trump go about healing the rift in the Republican Party among donors and the elites of the party . John with great difficulty. The people around him recognize that there is a lot of mending to do in the course of the next few days. I think he will roll out some big endorsements, among a couple of people that ran against them in the president ial race. A key element will also be the selection of a Vice President ial nominee, which will be about as much as signaling to republican elites he should be taken seriously. Then there is the money thing. If you decide to be a big player on the republican fundraising side, trying to become what he is not done it also far which is get into the game of raising big dollars to distribute to other members of the party, that will go a long way towards trying to heal the rifts within the republican ranks. Turkeys Prime Minister is expected to step down this month after losing a power struggle with the president. They have seen turkeys stock market plummet over the past few days. As we speak he is meeting with his Party Executive board. How worrying should this be for investors . If you look at the reactions of the lire last night, it was one of the biggest drops in the currency since 2008. That just goes to show you how worried investors are. What is happening here is that some of the contracts he is made of investors has an rattled a little bit. Over the last two years he promised stable economic management. They have been largely happy with the policymakers. In return for that they turned a blind eye to some of his geopolitical in that part of the world. We are seeing part of that contract coming undone. The Prime Minister said at a Party Conference he was leaving his job and not seeking reelection. What has happened in turkey this year so far is that you had after a difficult year with two elections and a lot of lyrical risk and uncertainty, things seemed to have settled down and markets and investors were coming back in. Now you have reversed that trend over the last couple of days. Bond yields have gone right up. The lira is weakening and its unclear what happens now. 200 is the median estimate right here, right now. Down from 215 previously. 5 unemployment previously. Erik 160,000 jobs created in the month of april. Is the weakest job creation since september 2015 and a full 40,000 jobs below the median estimate. Our survey, which anticipated jobs growth of 200,000 for april. There were negative revisions of 19,000 for the previous two months. The net increase is really 141,000 jobs. What is your reaction to the jobs numbers . The suggestion is that the fed is not have to decide now. The market will decide. June is out. Im not sure june is out. We heard from bullard and stan fisher. They all seem to get it. They should be raising Interest Rates in order to preserve a semblance of profitability for pension funds, Insurance Companies and the like. The more you read the details, the more solid the report becomes. I think this report is a harbinger of what is to come in the job market. 160,000 job growth is solid job growth. Wage growth and 2. 5 is good. If you look at aggregate hours, it was a. 8 which is the strongest since march 2014. Yvonne if youre wondering what the fed might make of this latest signal, stick around with her interview with San Francisco fed president John Williams later in the program. We will have an extended roundup of the weeks earnings report. You are watching bloomberg best. Yvonne this is bloomberg best. Major news from Companies Like google. Lets begin with the Central Bank Decision that took many people by surprise. The aussie dollar taking a tumble. Fresh record lows. An unaffected move aimed at countering inflation. Everyone started thinking. Will he pull the trigger . He did. Is there more to come . I think there is. Looking at the statement, they said inflation will probably remain to love going forward. We had quite a few banks and other institutions calling for another rate cut as early as july or august. Its very much on the cards. I think pricing is about 1 in 3 as far as yesterday in money markets. We should not be surprised if we see it again in the summer. Yesterday government kicked off a july 2 election with a double dose of stimulus. Scott morrison delivered a budget he says is focused on jobs and growth just hours after the rba. Cut rates for the first time in a year the government came up with a plan to reduce the deficit to 6 billion by 2020. It does rely on some rather optimistic assumptions about the price of some commodities including iron ore and growth forecasts. Not a lot of money to give away. It was really more of a document designed not to offend in an election year. Puerto rico will default on a bond payment. The consequences, weaving grappling with them. What has happened is the Government Development bank will default on this may one payment. The government made the announcement yesterday in a televised address. Now what happens is there is an agreement with some bondholders but unfortunately the island faces an even bigger payment by the 2 billion. What you think will happen . It will be a lot of negotiating going on between the bondholders and puerto rico. Puerto rico really wants to get this broad, Global Restructuring done with a lower their 70 billion debt stack. Whether they can do that by july 1 is a big if, and what is going to come out of congress . Today pass something that will address this . Fiat chrysler his recent agreement with google to create a fleet of autonomous minivans. What you make of the two parties . Why would google pick Fiat Chrysler and vice versa . Google has talked to other carmakers, specifically about general motors. They wanted to share the testing data the given developing cars, share intellectual property, and develop the actual brains that make a self driving car work. Google really was to keep control of all that because that is what they bring to the party here. Fiat chrysler is not developing their own Self Driving Technology or software right now. They had much less leverage when bargaining. They can basically just go to google to get the technology and google can keep everything for themselves and have yet just make the minivans and basically be the manufacturer. Emily it seems like other european carmakers are not open to this idea of working with google . Google was not interested in building a vehicle. They want to shove their sensors onto a vehicle. And the carmakers in europe, the high and carmakers know thats for the incremental value lies. They dont sacrifice that. This morning we had the announcement that you are in talks with potential buyers to buy the bulk of the golf unit. We said six months ago we take the business and the strategic review, we rebuild it. We are the number one driver on the golf course. We definitely are doing what is right for the brand. This is longterm. That is what we have concluded in our analysis. We will start negotiating with interested parties. For the hardware business. Francine how is important before he joined the company in october . We are looking for the best solution. We will start now getting into talks with interested parties and then see what the best fit for our golf business and company is. Malaysia is to resolve the advisory funds board into an investigation into alleged moneylaundering and embezzlement. This is another step to winding up a fund. How significant is this . With the advisory board, and now he faces his own separate scandal involving 681 million in personal accounts. The attorney general cleared him of any wrongdoing, this missed the saudi royal family. 1mdb now has a skeletal picture. Is responsibility is greatly reduced. The fund itself will be dissolved soon. One thing is clear. With or without an advisory board, Global Investigations will persist. Switzerland, luxembourg and the u. S. So far. Yvonne you are watching bloomberg best. Earnings season is hitting the home stretch. Reports from more than two thirds of the s p 500 companies. Here is a review of some of this weeks big beat and major miss haps. Amjomajor misses. Aig shares are down in the premarket. They reported their Third Straight unprofitable quarter. Seeing their biggest lost in hedge funds and decline in value of other investments. They really did not do well at all. They have about a 10 billion hedge fund portfolio. This is a small percentage of more than 300 billion investment portfolio. But it contributed to half 1 billion in losses. It brought down almost every business line. Property, retirement, life. Unlike a lot of other insurers, they are sticking to their bets unlike a lot of the market. Aig said they will cut holdings by half the hedge fund specifically. Its been contributed to so much volatility. Carl icahn will be joining the board at the next board meeting. What kind of preparations are being made . What discussions have you had with them . Have they had any influence in the last couple of months as they prepare to join the board . Like any new board member, its a period of intense engagement to get them access to information that will make them as effective as possible. We are optimistic they have a large stake in aig. Their interests are highly aligned with management and with other shareholders in building a longterm sustainable value of the company. The second largest french lender climbing after the bank surprised analysts with an undetected boost in firstquarter profits. At jpmorgan, ib not so great. What you make of the numbers . You mentioned ib. They talked about more cuts but it is surprising they posted an increase in fixed income trading which we have not seen at any other banks. They are smaller than some of the others but this was not the story you were supposed to see. Although bigger banks talked about regional players dropping out of that business and allowing them to gain more shares. Here they are kind of making a comeback in that business and always catching up to Morgan Stanley in terms of revenue. We saw that with barclays too. It was not down in a terrific way. Is there a europeanu. S. Story there . We are seeing a mix in the europeans. You have better than expected at socgen and barclays. Deutsche down significantly. Credit suisse next week. They have warned they are down quite a bit with some oneoff losses they are taking. It is hard to get a consistent theme from the europeans. Shell estimates this morning. Its back to the lowest level since 2008. Is this like bp, down to trading . Is the refining sector and the chemical unit. Its been the same trend with bp and exxon. Trading, refining and that is what is saving the day for the companies. Those are pretty variable areas of business. You get the right or horribly wrong. That is probably why also we have seen excel announcing a further announcing cosco today. Cost cutting today. Shell was a guide in the market for 33 billion suspension in 2006. Now is near 30 billion. The First Quarter is pointed at the number could be even lower. Even more aggressive . They said 53. Theuy said 33. They are announcing 30. When we see the companies are spending in the First Quarter it seems youre going to 25 billion. Thats an indication that the companys prefer themselves to leave on low oil prices. Shell, gas is what now really matters. We started the media part of earnings season yesterday with cbs last night and time warner this morning. Both Beat Estimates with higher earnings field by a surgeon advertising sales. A surge in advertising sales. Is advertising back . It is back, particularly on television. Cbs is the most exposed to National Television advertising and put up a huge quarter last night. Their underlying tv growth is up 12 which is a number they have not seen in five years and we have not seen from any Media Company a long time. The tv ad environment is coming back. There is talk to some advertisers switching money out of their digital internet budgets back in the television. When i look at time warner i look at cnn and how much they have benefited from the fact that we talked about. How much has that benefited them in terms of political ad spending this season . Cbs and cnn in particular. Cnn is a tremendous ratings boost over the last six to nine months. Time warner calling out cnn as particularly strong. That will continue through the election. Those that really benefit are the local television affiliates. That is where. The candidates really spend their money at the local stations Companies Like time warner doesnt own independent stations with cbs does. The local affiliates are the one that really make the money of these political advertising cycles. Shares of pfizer rising in the premarket after posting Quarterly Earnings that Beat Estimates. Vaccine sales rose more than expected. This is their First Quarterly reports of the drugmaker walked away from its 160 billion megamerger last month. I think what you see these numbers today is strong growth in the business. There are some factors that play into it. There are some selling days in the quarter and some benefits. When you look at the two divisions established product business is pretty stagnant. There are divisions making it look like its growing but truly the growth is not innovative. I think investors will not seen any other options they have several failed m as, in terms of the largescale deal they want to do. They probably see this as an notable at this point. They are focused of pfizer on margins. Is this a better breaking of the company into two Different Companies . Is that part of the strategy . That is probably whats going to happen going forward. It will include consumer vaccines, oncology, areas where there are r d and growth around the world. There is still a consistent market. There has been talk about if they split into three. I think the best way is for two and its a more real sick way to realistic way to look at pfizer. Global Health Care Company merc topping analyst estimates. As pharmaceutical sales slowed once again what sticks out to you in this report . They are still getting solid sales from their growing cancer drug in they are defending their diabetes portfolio pretty well against some stiff competition from lily. From eli lily. The ceo said theyre looking for business development, meaning deals. In the biotech industry valuations are down a lot since this past summer. I think a lot of big pharma which has cash of the books is looking to spend it and looking to beef up their portfolio. Do we have to worry that sales are slipping just a hair . It is still to be seen. It depends on what they do in the deals front. Lets go to the bp numbers. It is still to be seen. It depends on what they do in the deals front. Lets go to the bp numbers. 2. 08 billion, thats up 14 . In the past, 12 million by 2020. They plan to spend 6 billion on Capital Expenditure over the next three years. This is towards your new target. Is this conservative number at 6 billion . It is not conservative. Its a realistic assessment based on our ambitions. We need to have Regulatory Infrastructure to allow us to do that. Unless we have a degree of regulatory certainty we cannot spend that kind of money. Because i could not look shareholders in the eye and guaranty in relation to the regulatory outcomes. Tesla reported earnings after the bill yesterday with a lost narrower than expected. The big news is elon musk plans on ramping up electric Vehicle Production to 500,000 cars by the end of 2018. People had real doubts about tesla making this many cars like 2020. By 2020. What did they discover to make them move that deadline . They discovered what we call designed for manufacturing. This is something toyota and that the companies have been doing for years and decades. Tesla as a niche start a company that was about making the most excellent car you can and and figure out how to put it together. This one they say they have figured out the model 3. It will be much easier to build. They can increase it. He is not only talking about taking this factory in fremont, california to 500,000 vehicles, which toyota and gm never achieved at that site, and he said he might be able to get into one million. By 2020. Alibaba shares are on the move after it the revenue estimates on betvertter ading sales. Revenue rose 39 in the first three month of the year. Should we be paying more attention to alibaba or its earnings . They are a little bit of a mixed result. They beat on brevity significantly within a slightly missed on etf and slightly missed on net income. I think this is a positive story. It was like investors are already pretty impressed by this topline growth. Its a good story for alibaba, especially in the face of all of the headwinds about the chinese economy. How much of this tell us of of the Chinese Consumer as opposed to alibaba just taking her share from alternative retailers . The thing with alibaba is that it is seen as a proxy for the chinese economy. I think in the shortterm a lot of the investors are going to want to play out their fears of mixed results and the chinese economy in alibaba stock. Only look in the long term the chinese have a growing middle class. In the long term this will be a very big boom for alibaba. So in the longterm its a , positive story for the Chinese Consumer. Yvonne still ahead, a bonanza of bigname interviews. Jack lew argues the u. S. Most of puerto rico through its debt crisis. And blackstones Steve Schwarzman explains why these are very challenging times for hedge funds. All this and more coming up on bloomberg best. Yvonne this is bloomberg best. Time to review some of the most intriguing interviews on bloomberg television. Investors around the world are wondering when the Federal Reserve may pull the trigger on its next rate hike. They discussed that question with San Francisco fed president John Williams. Were you on board last week with the feds decision to not move on Interest Rates . Yes, i was. I think we are in a very dated dependent mode. We want to make sure we have a good reading and understanding of what is happening both in the u. S. Economy in terms of growth, jobs, and inflation. And also make sure we have a good read on whats happening globally. Because that does affect the u. S. Economy. So i am a supporter of the decisions we have made this year. That said, i do also support the statement we put out. I do expect us to be raising the rates gradually over the next couple of years due to the strength in the labor market and where i see things going. What does John Williams have to see when he sits down at the table in june to say, yes, im arguing for and im on board with the rate hike . I think we need to see a continuation of the progress we have over the last year. Underlying measures of inflation continued to move generally up towards 2 . Im not inspecting it to jump towards 2 but to be on the right trajectory consistent with my forecast for the next couple of years. Inflation will get back to 2 . I also went to see continued job gains and size of the economy having good momentum. So im looking for a continuation of what we have been seeing. Not for a big upside surprise, but i dont need to see really strong data to see a continuation of what we have. The june rate hike is a likelihood in your view. And certainly something you would support at the very least . I dont want to say likelihood. We are never supposed to talk about what is going to happen or what my colleagues are going to say. We will get a lot of data between now and then. In my view, yes, it would be appropriate given all the things we talked about to go on to that next step. But you know, a lot can happen between now and the middle of june. Washington is really important. We face a lot of challenges on the international side. One area is the gulf carrier dispute around subsidies. We need washington to pay attention. In the Political Landscape there is a lot of discussion on trade and whether the u. S. Is being taken advantage of. Whether there is International Barriers that need to be erected. We dont believe in any of that but we do believe is that our existing policies and treaties should be enforced, and there is a clear violation happening today. That is one thing i am very vocal on. Erik beyond the objections richard raised in the objections you are going to raise as ceo, what can you do . We need to keep the attention. This will be a longterm battle. There is not an easy solution to this. We want the state department to enter into consultations with their colleagues. We want to make sure everything we have built for the future is dedicated around the opportunity that a growing u. S. Industry not just delta but a u. S. Airline industry that has all the opportunities for a level and fair playing field. We can compete with anybody been given the opportunity. But when you were asked to fight with two arms tied behind your back, it is not fair. The reason we have bankruptcy rules in general is that it is hard to have all parties agree. We have seen what happens when there is not that kind of required participation. Look at argentina. It takes decades to work to the court. Puerto rico doesnt have decades. They have a crisis today. Today in puerto rico you have hospitals that have laid off hundreds of workers, closed beds, closed wings. You have a zika problem developing without the funds to come in and prevent the disease from spreading. You have schools closing. You have broad economic stress. Many people are leaving the island. Almost 100,000 people at puerto rico last year. There are 3. 5 million american citizens, many veterans, american citizens living in puerto rico. If puerto rico does not have a solution, that 3. 5 million americans are plunged into chaos. Thats why the need for action is so urgent. Erik is this one is common in Corporate Restructuring . Is two thirds an an appropriate level . I will not get into specifics in a conversation today. We have been very clear that we are looking to have a workable approach. Violence but it cannot be an approach where at the end of the day there is not the ability to put restructuring in place. You are expecting 1 billion in returns this year coming out of the stations. See growth past 2016 . We have said by 2020 respect that 2. 5 billion in reverse comp fees. You will have the addition of the skinny model plus all access. What we are saying to everybody is we provide cbs and letter how you want to get it. Reentrance, the reverse fees are growing substantially. When you talk about the skinny bundle, what is your concern about cannibalization of some of your existing outlets . We are willing to put our content everywhere as long as we get paid for it. And there is a lot of noise in the marketplace about the skinny bundle becoming much more important. Obviously we live in a 180channel universe which a lot of people do not want to pay for. So the skinny bundle is going to become more and more important at a lower price point and people are going to get to only those channels they want. We are basically staying however you want it, if you want to be the 180channel universe that is fine. If you want a 15channel universe, thats fine. And finally if you want cbs a la , carte, we are fine with that as well. The First Quarter has really been a very unfavorable period in large part because when you hedge equity positions and markets turn and go up, sometimes everything goes up. And you are short and it goes up. And then what compounded that were too few really interesting opportunities that many people were in. When they try to recover their positions stocks went up 100 . 200 . 300 just for technical reasons. Stepping back, the rate of return in the Hedge Fund Business in the Fee Structure has discouraged some investors. It is highly probable that the asset class will shrink a bit. We will find out. For firms like ours, its very interesting. One would think it would be very negative. It stands to reason because we are the largest in the world and allocating money to hedge funds. What is surprising me is we are getting really goodsized flows because what is washing out are a number of our competitors. What is happening is there is a move to quality. A move to performance. And the people who will be left in that business will be very well. The people who are marginal performers will not. In a normal environment 20 of hedge funds go out of business every year. That is a normal environment. What are we looking at now . A slightly abnormal environment. Yvonne those interviews with treasury secretary jack lew took place the Milken Institute local conference. We will have much more from the gathering of the worlds leading thinkers and doers in business and finance. This is bloomberg best. Yvonne you are watching bloomberg best. This week we caught up with some of the biggest names in business, finance, politics and Economic Policy at the Milken Institute global conference in los angeles. From tax reform to the future of hedge funds, the risk of brexit, here is a look back at some of our most interesting conversations. The United States is the only country, the only one of the developed countries that taxes not only when he earned in the United States if youre a taxpayer, but it taxes everything you earn in the rest of the world when you bring the resources home. For Certain Industries that put you in a very big competitive disadvantage to countries who have all the headquarters here and a lot of operations here and can invest the money that they earn overseas back into the United States where a u. S. Domiciled taxpayer cannot. Companies doing conversions are inversions are not avoiding paying u. S. Taxes at all. They will still pay u. S. Taxes and then they will have the opportunity to invest more of their earnings back into the United States. This is one of the most misunderstood subjects i believe in all of and if they dont pursue tax inversion, there are competitive disadvantages . Right. There are some people who say repeal doddfrank in all these things. Other people say we have not done anything. I dont think either is true. I think we have put in place in our area a very good framework for the regulation of overthecounter derivatives. That is pretty much in place today. We have a few pieces left it. A lot of what we are doing is focusing on finetuning it and making sure is focused on the areas of greatest risk and making sure it is not burden commercial endusers do much and too much who use these markets, and also on international harmonization. We are looking forward. Lets not just look back at what is happened in the crisis, lets look forward to concerns like Cyber Security which i think is one of our biggest concerns today. Erik on the list of challenges the markets are going to face in the future, is that number one on the list . To name if i just had one, i think it is. Everyone is concerned about Cyber Security. Its a bit of an arms race in terms of trying to keep up. Warren buffett at the Berkshire Hathaway Shareholders Meeting was telling his faithful to be weary of that you have to be crazy. What you think about that . I am part of the faithful. No one is in favor except the asset managers. What should your fees come down to . If i can figure price, i would love to. As an Investor Capital we negotiate. I have said very clearly that the 2 and 20 model is broken for large institutional investors. Is off the table. We are investigating much lower management and incentive fees. Hedge funds dont have as much as i think they should, but they do hatch. We have had a bull market for seven years. If you compare hedge funds to the market, they will lose an bull market. I think people should yell at they they deserve it, but are yelling at them too much now. Hedge funds dont deserve as much criticism as they are getting . It sounds to me like a catholic becoming a protestant. I know its disappointing when im in the middle of an issue and not being extreme, i like being extreme. But i still think the criticism is still warranted. Erik what is a going to take for m a and Capital Raising to pick up again . All of this has to do with confidence. The volatility we saw in the first part of the year boosted confidence a little bit. Shook confidence a little bit. Very little equity issues for the First Quarter. Ipo activity almost nonexistent in the fourth quarter. And if youre a ceo and youre looking at an environment where there is market volatility and uncertainty, you slow down with respect to thinking about doing something that is giving you out of the risk. Stabilization of that is certainly necessary. In time the activity level will pick back up. How long do they plan to hang back and wait . I think it would phrase it differently. Most ceos in this environment have a target risk they are actively looking at and thinking about. They are pretty evenly matched. Remain or leave . My best sense thinks about this is the country will do the sensible thing and stay in the european union, because of they leaveause if they were to level of economic risk that most people think is a foolish risk to take. I think we will stay. I look at some of the things around the world today and there is an unpredictable state. When the president of the United States spoke recently it seems like he was swaying one way. Do you think that is . If you are rational, the view of the president of the most powerful country in the world and our biggest ally should matter. We have been offended by his language. Mostly we are worried about his thinking. His thinking in relation to trading, in relation to the economy and how it works, his thinking about action. Imports. Duties to this is something that has already happened in the United States 100 years ago. President hoover proposed the same policies. To limit the efforts of corporations to go and invest, to keep themselves competitive. End result depression, the mammoth impression of 1929 was a result of these policies. Yvonne i want to take you to the index. Go into mrargo. That would be the member ranked returns. The top performers on the hang seng indexer oil producers. This is a brutal move. This is usually two standard deviations. I have set it to three. You can do that with bloomberg. I want to show you racc gold. The downgrades we have seen in china for rating actions, 60 so far this year. We are barely in the second quarter. Will keep highlighting our favorites. Maybe they will become your favorites. Here is another function to check out. Quic go. Access to our entire library of quick takes. Lets look at a quick take from this week. Gold. The prices are pointless. Its one of the original forms of money, sparking wars, Treasure Hunt and love affairs. But for todays investors it may have lost its luster. Here is the situation. Gold is a timehonored echo chamber for anxiety about the global conflicts and central bankers. The 2008 financial crisis sent investors leaping. It went to a record 1921 an ounce in 2011. That made one of the best investments in the world for a 12 year run. Investors dumped gold starting in 2013. Bennetts Economic Growth returned in the stock markets rallied it began to tumble. At times of unrest and instability, the appeal of the metal spikes up. Still it remains far from its peak. Here is the argument. Gold bears say they see the Global Economy recovering. A strong dollar and the prospect of higher u. S. Interest rates makes it less attractive. As legendary investor Warren Buffett said gold is high when only the ranks of the fearful will grow. Longterm Economic Growth is far from certain. The supply of gold may have peaked following years of declining investment in mines. Ultimately, goulds future hinges on the hopes and fears of investors. Yvonne you can also find our quick takes on bloomberg. Com along with the latest is this news and analysis 24 hours a day. That wraps up bloomberg best. Im yvonne man. Thanks for watching bloomberg television. Francine the implications of brexit, thats what were discussing today. Were discussing locations on trade business and regular occasions if the u. K. Does decide to leave the eu. We have three who believe they should stay. We have mario monti, jon moulton, carolyn fairbairn, lord norman lamont, and maurice levy