Transcripts For BLOOMBERG Bloomberg Best 20170318

Erik in the midst of political turbulence, financial leaders seek solid ground. The key is to maintain as much as we can, functionality. Erik mary barra sees positives in new policies for u. S. Automakers. This is something we can do to be more effective and efficient. In the end, it will have a bigger impact on the environment. Erik it is all straight ahead on bloomberg best. Erik hello and welcome. Im erik schatzker. This is bloomberg best. Your weekly review of the most important Business News, analysis and interviews from Bloomberg Television around the world. Many of this weeks most important events have been on the calendar for months. On monday, political surprises were the order of the day. We have some breaking news, because the Congressional Budget Office has released its scoring its assessment of the house gop alternative to obamacare. Some of the big headlines out right now. The bill would reduce the federal deficit by 337 billion. 14 more it would cost Million People to be uninsured in 2018. What is your snap judgment . This is a win. The fact that it is saying it would reduce the federal deficit by 337 billion is definitely something this white house is going to be pushing for. Again, the fact it would increase the number of people who are currently insured, and they would be now uninsured, thats a number the democrats are going to pounce on. Without question, the fact they say it would reduce the federal deficit is a take away from this white house. You rollback federal subsidies for Health Insurance by a lot as this bill would, there are two natural consequences. One is you were people have Health Insurance. The other is the government saves money. Cbos estimate should not be surprising to anyone. Scotland heading for another vote on independence. Opening a new front in the brexit battle. I can confirm next week i will seek the authority of the Scottish Parliament to agree with the u. K. Government the details of a section 30 order. Massive sized deal, mediumsized deal, are not that big . Its a big deal for the u. K. Because sturgeon is nothing but not a politician. She will not make that call on unless she is confident she can win. For may, it will not stop brexit or triggering article 50. It could complicate things significantly for her. For one, it will give the European Commission a little bit of ammunition to say, well, look at the divisions in your own country. This is a lot more than just an empty threat. The Prime Minister is preparing to trigger brexit in the last week of march. Thats according to officials familiar with the plan. Parliament passed legislation to invoke article 50 of the lisbon treaty. We remain on track for the time table i set out six months ago. I will return to this house before the end of this month to notify when i formally triggered article 50 and begun the process which the United Kingdom will leave the European Union. Bloomberg has been told by officials familiar with the plan that the end of the month is still on track. One official said the most likely dates are between march 27 and march 30. Note this bill is going through unchanged. The 137 word bill is going to with no amendments because the house of commons rejected the amendments put forward by the house of lords. Lets go to Kathleen Hays at the Federal Reserve in washington. The Federal Reserve raised its benchmark rate by a quarter point to 0. 75 to 1. 0 . The president of minneapolis said thats the median estimate for this you remains three rate hikes. However, it is a stronger consensus. We continue to expect the ongoing strength of the economy will warrant gradual increases in the federal funds rate to achieve and maintain our objectives. What did you learn in the press conference, mr. Gross . Not much. We learned janet yellen is a perpetual dove. Even when conditions are rather hawkish in terms of stock market at alltime peaks, employment growth, she still proceeds at a gradual rate. I dont think thats inappropriate. I think its a high leverage in the u. S. Economy and Global Economy for Central Banks to proceed in a gradual way. She is a dove, and thats why the markets reacted as it did. The bank of japan kept its monetary easing Program Unchanged today. The rates are kept at current levels while maintaining the rate of asset purchases. How much more creative kenny actually get can he actually get . Last year he gave negative rates a couple of weeks after saying he would not go to negative rates. Then he decided to cap 10 year yield. He probably feels the ball should be on the corporate side and not his side. Hes not a magician that can bring out rabbits all the time. Although they deny it, i think they are deep pocket or they are pretending to have a deep pocket. It is not there as much as it used to be. You get see the effect and reactions of the financial market. Its showing signs that boj is running out of cards. The ftse is a record high. We are just numbers with the bank of englands Monetary Policy decision. That drops right now. A decision that leaves rates unchanged at 0. 25 , and asset purchase program, the Corporate Bond target at 10 billion. Kristin forbes said 25 basis point hike. Im surprised from these minutes. The discussion about the survey evidence of activity was almost glossed over. It was almost like they were saying there has been no survey evidence to show, but we know there has. We have seen Business Investments and intentions falling off quite sharply. Not as much as we thought they would. I think we would see this data start to roll over. Historically deep cuts, thats what President Trump is proposing in his budget. The president s socalled skinny budget was released overnight and will touch on most every federal agency program. Bottom line is this, President Trump is trying to boost military spending by 54 billion. As a result, he will look to offset that by cutting several key agencies including the Environmental Protection agency. It is a matter of where you want to focus your priorities. We will move away from some of the domestic priorities. Again, our president set is from day one of the campaign and im certainly not surprised by it. This to me is a very shortsighted budget. Mick mulvaney said he got this from President Trumps campaign speeches. And is what he got out of the campaign speeches, he ought to be a translator, because i do not and anyone got this out of what trump campaigned on. President donald trump and Angela Merkel are meeting for the first time in washington, d. C. Top of the agenda are concerns about the u. S. Shift towards protectionism. The discussion will be on economic policy, trade agreements, and immigration. You could not have two more polar opposite Global Leaders in terms of immigration and global immigration regarding the middle east. A lot of focus on trade policy and immigration. I think her main message really is dont look at trade as a zerosum game. She said this in various ways in the last few weeks in the buildup. Ever since trump won the election on what germany sees as a protectionist agenda. Its a clever move to to bring the field of bmw, they stand for companies and German Investments in the u. S. That up to more than 600,000 jobs in the u. S. If you start to impose a border adjustment tax or any other measure, you also risk losing a good chunk of that tradition. I think that is language someone who is constantly bragging with his business skills would probably understand. Still ahead as we review the week on bloomberg best, an election in the netherlands flips the script on european populism. Another candidate stumbles in the french president ial race. Plus, weber talks about what hes expecting a brexit. And more of the weeks top business headlines. Autonomous cars and coming down the pipe. Intel hits a premium to into the fast lane. This deal is immediately accretive to our earnings share. Erik this is bloomberg. Erik this is bloomberg best. Im erik schatzker. Let us continue our global tour of the weeks top business stories with a big deal. One of silicon valleys stalwarts went shopping in israel. In a move to dominate the technology for self driving cars eye in acquired mobile a deal worth 15 billion. The shares of the Israeli Company up 29 . Is this a good deal . It is insanely excessive. 350 million in revenue is paying 15 billion for. Free cash flow company, no snapchat. They are paying through the nose for this company, because it is a leader in this emerging field of automated driving cars. Self driving cars is the fantasy this might lead to. Very high price tag for this company. That is what intel think it has to do, jump start their efforts. We knew this was a hot space. Gathering of these technologies and building this platform was important. Also this deal, although large, is immediately accretive to per share and Free Cash Flow for the company. It is a good deal from that perspective as well. Hsbc named mark tucker as its chairman. Starting from october 1. What has been the latest in what know at this point . He will be the first external hire to take on the role of chairman. He started on the first of october. They were looking for a person approaching the end of his term who they said would be an external hire. He knew that was what they were looking for. He was a ceo for seven years. One of his tasks will be to find a replacement for the ceo stuart gulliver. He is also on the way out as well. We are talking about the deluge of data. Retail sales, investment and factory production. Moore surprises from the china data. Retail Sales Numbers increasing 9. 5 from january to february. The estimates have been for an increase of 10. 6 over that period. Missing substantially on the retail sale. Growth but it compares to a number of years three had at least doubledigit growth in retail. Do you think we are starting to reach the peak of chinese growth stabilization stories . Not when it comes to the growth story, but when it comes to ppi, yes. I dont think it will rise much further. Because of what is happening with global commodity prices. It will probably peak in q2. They will raise Interest Rates further but we are not far from the peak. Lets talk about toshiba. They are considering selling a majority stake in Washington Heights Nuclear Political unit. A gain approval to the delay release of thirdquarter earnings for a second time. Remind us what is happening what is causing this delay . Today was supposed to be the day that the Company Finally reported its earnings for the quarter ending in december. Instead, it said it can produce those also and is started an extension of they can always to calculate the numbers. It said is looking to sell a majority stake in his westinghouse unit. The problem is that toshiba is trying to get their hands around how they the problems are with the nuclear unit. It is struggling to complete a few projects in the United States. They are years behind schedule right now. The company said it will probably need a breakdown of about 6 billion but it could be bigger than that. At this point, its auditors will not sign off on the books. The company is investigating whether management at westinghouse had undue pressure. They have some pretty deep problems there, and they are try to get their hands around it at this point. Bank of england governor has quit in the last half an hour. A Parliamentary Committee says he did not meet the standards required for the role. Lawmakers were required she did not disclose that are brother works for the bank of england. Especially from a pr perspective its a comfortable and embarrassing. This is a case where is more impression of conflict of interest. They do not believe they deliberately misled anyone. There has not actually been a conflict of interest while shes been chief operations officer. Now she is taking on the new role as Deputy Governor for markets and banking. The standard they expect for the position, and she has not met those. Thats why they said she does not meet those standards. Will this change for Governor Carney or she was essentially his fix. Its definitely a case of she was an appointment by mark carney. Mark carney is losing a close and loyal ally. Valeant shares are down in the premarket. Bill ackman cut his losses and sells his stake in the embattled drugmaker. It is making the embattled companies, locations even more difficult. He sold his entire stake in the company as A Los Angeles and the board. How much is about bill ackman the person, the way he does business, and hedge funds were broadly . I think it is both. Bill ackman, he is one of those really polarizing figures, even among activists investors. He makes these very big thats. Big bets. He is very outspoken. There has been a number of situations where hes been criticized for just holding on to long, or maybe letting his ego get in the way and i wanted to give up on something that is arguably shouldve been given up a lot longer ago. I think valiant might be another one of those situations. The u. S. Government is pointing the finger at russia for another highpriced cyberattacks. They charged to hackers in a scheme that cause the 2014 breach at yahoo . Russianis sort of the equivalent compared to against the chinese pla hackers. It is their effort to paint a picture of how russian intelligence is cooperating with criminal hackers that help them hide intelligence gathering operations, but also help them be much more effective than they might be on their own. Its a devastating picture of what happened inside yahoo these guys got access to internal systems that allow them to basically create encrypted cookies that go on to machines and access any of the users actual email accounts anytime they wanted over a period of years. President trumps second travel ban has been blocked in a court in hawaii. This is the second in another defeat. One of the core tenants of President Trumps campaign. What led up to this ruling in hawaii today . The attorney general, supported by a number of other leaders in hawaii, ruled this travel ban is not constitutional because in spite of the revisions to the executive order, it remains rhetoric from the campaign, the president s campaign were he called for a muslim ban and registry. The questions raised by the judge were why he should consider those arguments. It seems the Justice Department was not able to sway him to ignore them. Lets turn to the g20 meeting. Finance ministers and central bankers in germany. Trade the top of the agenda. Of finance ministers and central bankers gathered here trade is not usually essential to the agenda. But its become the major sticking point. We assure markets the g20 remains a cohesive group. We are told the u. S. And chinese in particular have faced off over the word fair. Fairobal trade should be or just open and free. The chinese dont want fair. So far, no one has agreed on anything. They say it will be a major topic of discussion this afternoon. The man at the center of everything, steve mnuchin. How is he doing . He seems to be doing alright at least in public. He has done all the right things. He has talked about cooperation and getting along with his colleagues. We have heard other finance ministers describe negotiations between their deputies and u. S. Officials as extremely difficult. Erik welcome back to bloomberg best. Im erik schatzker. At a meeting with Auto Executives in michigan this week, President Donald Trump announced he ordered a Midterm Review of industry regulations including fuel standards put in place by the obama administration. Bloombergs david westin discussed the implications with gm chairman mary barra. Mary i think its so important the changes at all that have been made in the last five years and technology. How Consumer Trends have changed and the whole environment. We can do things that are going to create jobs, strengthen the economy, but do the right thing for the environment. This is not at odds. This is something we can do to be more effective and efficient. In the end, i believe it will have a greater impact on the environment. David this is something you and your colleagues asked for. That is to say, lets go back and take another look at this. Regulations go towards 2025, a long way. At what point have a not changed with gm act to change the way its doing business . Mary we would not be a give customers the choice we give them today. They choose if they will buy an suv or a small car or an electric vehicle. We are full range. We are continuing to invest in the chevrolet, volt ev. We are very proud of it and is doing well. We are making investments to have the right products. There is more change happening now in the industry that has happened in the last 50 years. This legislation was done five years ago before we were even talking about autonomous like we are now. To take a pause, be data driven, and ask what of the standards and how can we improve the environment in the most effective way, its a well we all agreed back in 2012. David is there a version the General Motors could live with . I think your point is it depends what exactly is it, and we dont know. What we know is a long lead, high Capital Investment business. We need to understand with the requirements and the rules are going to be so we can make smart investments. Sometimes, the investments we put in place are 10, 15, 20 years in position. We need to make sure we understand it. We have voiced what our concerns are to make sure we can support our company. I think there is a lot to be learned. We are waiting to understand it. Erik coming up, more of the weeks compelling conversations. European immigration is still at risk. A mexican president ial contender holds nothing back and talking about donald trump. Plus, as scotlands towards another vote towards independence, a leading politician says its economy should hold up well on its own. It is based on brains. Erik this is bloomberg. The issue on Housing Affordability in australia is the mismatch between supply and demand. It is not a busted credit bubble. They are real prices and values. What we are looking for the government to do is to put downward pressure on those prices by addressing the supply challenges that are out there and working to achieve that. In terms of creating the right conditions where more supply comes on . That will be outlined in our budget as it comes down in may. We are outlining did he write across the Housing Affordability spectrum. Erik that was australian expert Scott Morrison discussing government efforts to stabilize his nations redhot property market. It was an exclusive interview with Bloomberg Markets asia. Now as scotland considers a referendum on independence, its leaders must evaluate prospects for economic success outside the United Kingdom. Guy johnson discussed that topic this week with former Scottish First minister alex salmond. There is an underlying economy in the scotland not based on just natural resources. It is based on brains. Scotland has more universities in the world, the top 200, than any other country except one. Are you certain scotland as an independent country could rejoin the European Union . Yes, i am. I think what youll find is over the next few months a very distinct perspective for scotland and europe will open up. You will exactly how scotland can secure its position. And then, we will ever from the perception across europe. Scotland has many, many friends in europe. The u. K. Has virtually none left. This is a big transformation from 2014. As the spokesperson for the Scottish National party, a long meeting with jeanclaude yunker, a total difference in attitude towards scotland, because people are cross. People basically know that scotland is proeuropean. They are thoroughly exasperated with the government in london. What did he tell you about whether not scotland could join the euro . Those are private discussions. We did not discuss Scotland Join ing the euro, because we know the facts. Sweden is in the European Union but not in the euro. The rules are you got to be an Exchange Mechanism for two years before you can even apply to join the euro. To begin the Exchange Rate mechanism is a voluntary act. That is why sweden is not in the euro and that would apply to scotland and nine other countries. You would not expect scotland to join in the single currency . Correct. Is a going to be full membership, transitional membership . A period where you are not a member of either union . The logic of having referendum on a timescale as outlined is you can compare the hard brexit plans with what emerges as the perspective for scotland and europe. I am certain the negotiations will be a good deal easier than the negotiations of london and brexit. Erik financial leaders from across the eurozone came together this week at events around the meeting of g20 finance ministers. We caught up with several of them. Lets start with ubs Group Chairman who spoke exclusively to bloomberg from the iif g20 conference in frankfurt. European integration is challenged at the moment by brexit. That is the first data point where the market was concerned. There was a lot of uncertainty and strong movements and volatility in the market. That will continue. Europe will be played by Political Uncertainty the entire year. Even greece is looking for another nation, might come back as a problem over the summer. Plenty of political risks that might materialize in europe. The market will react with volatility and caution as the data points materialize. Hints of early elections in greece now as you bring that up. Lets talk about brexit. You mentioned you are thinking about 1500 jobs moving from brexit. S a result of are you making an assumption that we will see a hard brexit . I think what we need to do is manage risk. We need to manage tell risk. We have to be prepared for every eventuality. In terms of our planning, we need to look at these options. The key for us is not to take a certain decision. The key is to maintain as much as we can, functionality. We do not want to make decisions we regret, but at the same time we cannot afford to wait for the political dust to settle. For us, a key point will be the triggering of the article 50, which at that point makes the exit of britain almost and under almost and on reversible unreversible trajectory for the next few years. Then we will look at how hopefully can be that Market Access to european markets will continue. I think its not going to continue on the basis of the old arrangement. Any step completely new arrangement with the eu. A father reading is and not in my expectations. How likely is it we reached an agreement on the basel iii agreement. When do you expect that to be . Lots of questions but most importantly let me state it is my understanding in my feeling baselthese meetings in that we keep on meeting, we keep on narrowing and discussing things. All this meetings have progress. It is important that we have a global it would be good for the banking industry, the banking industry. One clarity, when uncertainty with a have to face. I think we as regulators are clearly under pressure to reduce produce over time an agreement. You need to compromise and look for Common Ground from a german perspective. We are very much looking for Common Ground with everyone else. We are under no time pressure. As the u. S. And mexico navigate delicate diplomatic challenges, the early frontrunner in next years president ial election had some harsh words for donald trump. I sent them with Andreas Lopez obrador and he blasted Trumps Campaign of hate against immigrants. He is very authoritarian but also confrontational. That policy is not good for the United States, and it is not good for the world. And it is not good for him, because, if he continues like this, he will lose the next election. He will not be reelected. With that type of president , how can mexico renegotiate the Free Trade Agreement . With clearness, without being disrespectful to the president of the United States, donald trump. Acting with independence with sovereignty. Mexico is not a colony of any foreign government. Erik but if President Trump insists on imposing tariffs on imports, how should the Mexican Government respond . We have to appeal to the International Trade bodies. If donald trump continues with his hate campaigning against the mexican migrants when those things happen, we will go to the u. N. And report United States government for violation of human rights and Racial Discrimination erik you are watching bloomberg best. Im erik schatzker. Britains brexit negotiations were not the only important political story in europe this week. Investors paid close attention to elections in the netherlands, as well as drama in frances president ial campaign. Lets talk a bit about france. In france, one candidate was charged with misuse of permanent funds, casting a shadow over his bid to become the next president. They have announced the investigation as a plot by his opponents to undermine his candidacy. We knew this was coming. This news should have broken today. It came out yesterday. About 10 days ago, in a press conference where he said he was summoned to be interrogated by judges and hiring family members for parliamentary aide, he expected to be charged after the investigation. I think the damage probably has been done. He was the front runner several months back in january before the revelations about the affair broke. He has fallen back quite a bit. He is now in third place. I do not think he would make the may 7 run off. He just has the these revelations behind him. It is all we have spoken about the past month his affairs. Liberalism has won the day against the populist vote for populist vote. When it comes down to the numbers, you saw a near 80 turn in the post and this very high relative to 2012, relative to 2006. The liberals are the victors here. We expect them to try to start the formation of a government. It could take up to 200 days. Liberals, their vote was up to still barely 12 half of the vote. The greens did well and nearly quadrupled their seats in their parliament, up to 15. It could be that is the rainmaker. The question for markets is how did the dutch built this farm . Firewall . The people have drawn a wall up against this populist wave. This dutch election was always going to be a good test to see which way the populists winds were blowing in europe. It is the first real test weve in 2017 in the region. It looks like the populist wins are not quite as strong as we thought they would be. That is helping the positioning of the euro. As the political missed clears, and people realize they were perhaps too worried about the risk of populism in europe. The euro is likely to grind higher over the course of the year. We may start seeing ecb time tightening what the political cross begin to take shape. More of an uplift to the single state. What are you seeing in the bond market . A sigh of relief kind of day . A bit of a relief in holland. But i think when you try to extrapolate this and transfer it to france. It is usually very different. I think it is a bit of a release today. The market will really set the focus on france again. Certainly investors have learned from brexit, the u. S. Election. The risks are alone in you to focus on health risks as well. Relations between the u. S. And asia was also in the spotlight this week. Rex tillerson making his First Official trip to japan, south korea and china. And the rhetoric ramped up before he even touched down. President trumps trait pick trade pick has been questioned as confirmation hearing. He said he agreed with the assumption the u. S. To do better negotiating deals. He mentioned china as a key issue for the u. S. As well. Donald trumps pick had plenty to say about china. The country that canceled with half of the u. S. d 500 billion trade deficit. Viewsres many similar about china with trump. This is what he said. Between now its time i leave, you will save bob, you are right. He is going to change the paradigm on china. If you look at our problems, china is right up there. He also said the u. S. Needs to have Imaginative Solutions on trade negotiations. Wto is not set to deal with chinas policy. He is recalled the hammer before, a tough negotiator. Is he does get confirmed to this position, it will be an interesting argument between him in china and china on how things will pan out because of trade. The chinese premier speaking right now at a press conference in beijing. He is wrapping up two weeks of political pageantry. He was speaking about chinau. S. Ties, saying china and United States should expand in mutual interest. They tend to have inevitably agreements and disagreements, but there are strong prospects when it comes to building u. S. China relations. It is interesting he highlighted the one china policy. He talked about this being the foundation. It points to a sigh of relief over the phone call it in the where trump did say he would support one china policy after previously questioning whether or not that should be part of the bargaining chip for the u. S. When it approaches trade with china. Trump came out and said he will stick to the one china policy. Everything else they can negotiate and work on and move things forward. Secretary of state Rex Tillerson is in talks with Prime Minister shinzo abe. We are outside the guesthouse which is part of the ministry of Foreign Affairs where the talks with his japanese counterpart will happen later this afternoon, as well is a meeting with Prime Minister shinzo abe. North korea will be a top the agenda. Also issues with china. Dont forget about the issues with japan the United States is withdrawing from the transpacific partnership. There have been calls by President Trump for japan to shoulder a bigger load or its defense bill. Today, in a finance meeting with japan, secretary tillerson addressed how japan could rain at him. We look to china for them to fulfill their obligations and what the sanctions any u. N. Resolutions. We look for to having further interactions with china. It would behold to bring north korea to a different attitude about its future need for nuclear weapons. What is he proposing here . How big a change in tone and policy towards north korea . Frankly, i do not hear anything different. This is standard u. S. Policy. We talk to the chinese a lot. We put pressure on the chinese a lot. We think the chinese have the most leverage on north korea, but nothing has happened. Now, north korea is a major headache for this region. What needs to be done that is different . I think the policy options for the United States are very limited other than trying to apply leverage on china. We are not going to see any significant breakthroughs. This is a factfinding mission. Cautious, careful, and try to establish parameters of the u. S. China relationship. Secretary of state Rex Tillerson got a look at north korean today and had a warning for kim jonguns regime. He visited the Demilitarized Zone between north and south korea during he said the u. S. Is looking at alternatives. He did not rule out a nuclear strike. All of our options on the table. We dont want things to get to a military conflict. We are quite clear about that. But obviously, if north korea takes actions that threaten south Korean Forces or our forces, they will be that with an appropriate response. Lets talk about the weather. You know what is pretty cool . The bloomberg has all kind of different tools to examine the weather, including whut. That includes all different types of weather maps. You can toggle between temperature, precipitation. There is going to be a lot of it in our area. All kinds of different ways of exploring these massive storms. If youre stuck at home or the office and you are sleeping on your desk, you want to see what is going on with the weather type it in. Erik there are about 30,000 functions on the bloomberg. We always enjoy showing you are showing you our favorites on Bloomberg Television. Maybe they will become your favorites. Here is another function you will find useful, quic. You can get important insight into timely topics. This weeks examines the republican proposal to replace obamacare. President trump it is an unbelievably complicated subject. Nobody knew health care was so complicated. President donald trump and Republican Controlled Congress rolled in on day one with an imperative to repeal and replace the Affordable Care act, or, as the rest of us call it, obamacare. 45 days in, the House Republicans took their First Health Care plan. They call it the American Health care act. This is the American Health care act. Or the worlds greatest Health Care Plan of 2017. While paul ryan certainly expected the bill to cause a rift with the democrats, he is experiencing one with republicans as well. Heres the situation. The Affordable Care act was signed into law in 2010 into full effect in late 2013. Under obamacare, 20 million gained coverage with the largest edition coming to the expansion of medicaid. The uninsured rate fell by about half and the number of people signing up to the exchanges keeps growing. It was not until Trump Took Office and republicans moved to repeal it that obamacare became more popular than not in america. But to many conservatives they are looking less like repeal and replace. The bill keeps the popular under 26 provision and preexisting conditions policies. Certain republicans are limited by the continue saving tax credit to make insurance more affordable. Although, they would be based on age and income. They at least Medicaid Expansion place for 2020 democrats object to any rollback. Millions of americans dont like what they see. The granddaddy measure of them all is the repeal of obamacares least popular provision, individual mandates. The tax has been such a burden on many americans. Here is the argument. A main pillar of obamacare, the individual mandate, requires every individual, sick healthy alike to qualifying Health Coverage or face taxes. The new plan would do away with the individual mandate and instead replace it with continuous coverage. People can choose not to buy insurance and set up a higher premiums if they choose to buy it later. By eliminating the individual mandate, it can produce a very death Spiral Health care that many republicans feared. An insurance death spiral is a is when the healthiest people are permitted to drop out, and they leave behind a slightly population that is left to take care of itself. The Congressional Budget Office does not predict a death spiral but still estimates that 24 million americans would Lose Health Care by the end of a decade. Many obstacles remain in the passage of the aca. President trump is working to get republicans in line for what is likely to be a bitter fight for approval. Erik that was just one of the many quick picks you can find on the bloomberg. You can find them at bloomberg. Com along with the latest Business News and analysis 24 hours a day. That will be all for bloomberg best. Thank you for watching. Im erik schatzker. This is bloomberg. David your last name is krzyzewski. It took me a while to learn how to pronounce it. After three years, you had a losing record. Mike a lot of people were calling for my firing. David you won the national championship. Mike i said we were going to win. We ended up winning one of the greatest games in the history of college basketball. David last year, you won your third gold medal. To have the National Anthem being played, there is Nothing Better than that. David what are the most important lessons of leadership . Mike at west point, i learned that failure is not a destination. Would you fix your tie, please . David well, people wouldnt