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Speaker 1: A moderation and a bringing together of people in terms

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Speaker 1: of a common mission and and thoughtful disagreement. While we're

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Speaker 1: talking about the thoughtful disagreement, if you could work your

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Speaker 1: way through to get at the right answers, UM, then

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Speaker 1: this is all manageable. UM. So that's so politics does matter.

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Speaker 1: And answer to your question of how we deal with it,

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Speaker 1: we measure what their actions are and based on their

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Speaker 1: actual actions, then we make our responses. Ray, I want

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Speaker 1: to thank you very much on behalf of Bloomberg television

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Speaker 1: doers radio listeners worldwide. It's been such a pleasure here

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Speaker 1: at the University of Texas. Ray Dalio. He is the chairman,

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Speaker 1: the founder and co c i O of Bridgewater Association.

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Speaker 1: Chessker with it, Ray Delio, an extended conversation. We do

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Speaker 1: all that around the market opening. You're the bell in

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Speaker 1: the background. There was a bell in the background as

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Speaker 1: Ray Delio was speaking our opening bell brought you by

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Speaker 1: s c I. Today's competitive marketplace requires asset managers to

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Speaker 1: become more operationally adapt Imagine transforming your business. That's the

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Speaker 1: I's global platform. Do that at SEI see dot com

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Speaker 1: slash imagine se i C dot com slash imagine right

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Speaker 1: on the screen. It's been a goofy day, markets all

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Speaker 1: over the place waffling. Maybe tomorrow's jobs report negative twenty

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Speaker 1: four is a first print on the Dow SMB down

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Speaker 1: two points. We do have a print in the VIX

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Speaker 1: a little bit higher after a good couple of days,

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Speaker 1: seventeen point to five. I'm just gonna mention one stock

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Speaker 1: because we've got so much to talk about, and that

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Speaker 1: would be Herbal Life. We do have an opening fifty

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Speaker 1: three downs three dollars thirty three dollars thirty eight sets

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Speaker 1: on Herbal Life. We'll get to that, uh here in

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Speaker 1: a moment. We look at equities, bonds, currencies, commodities. Let's

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Speaker 1: look at the four X report right now, and that

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Speaker 1: brief brought you by Interactive Brokers, winner of f X

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Speaker 1: Weeks two thousand fifteen award for the best Retail for

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Speaker 1: X training platform visit ib at, I, b k R,

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Speaker 1: dot Com slash four x, and we think them as well.

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Speaker 1: For support. We look at equity markets with SEI and

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Speaker 1: the opening and Interactive Brokers assisting us with our FOREX brief.

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Speaker 1: The Euro a bit stronger fractionally, I wouldn't elevated dollars

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Speaker 1: through the day. Michael Purvis fascinating this morning on a

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Speaker 1: weaker Asia currency call away from Japan, UH with an

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Speaker 1: attendant dollar strength. We was that's one of the big

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Speaker 1: mysteries going into this year. UH sterling near one on three.

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Speaker 1: And we'll leave the foreign exchange at that um as well.

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Speaker 1: Michael McKee and Tom Keen. And now we need to

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Speaker 1: chat on herbal life with someone who's followed the soap

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Speaker 1: opera and actually the serious accounting business behind this. Creigiomonis

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Speaker 1: with Bloomberg News. Good morning, sir, good morning. You know

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Speaker 1: I saw the headlines. I did a shot out on

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Speaker 1: Twitter to Herb Greenberg, who works at a private capacity

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Speaker 1: and helps the NBC out as well. Herb focused as

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Speaker 1: I did, on the actual accounting ballet. So let's talk

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Speaker 1: about that. These are not gap questions in these headlines

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Speaker 1: this morning, right, That's right, nothing to be restated. It's

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Speaker 1: not a number that analysts, some analysts even having their models.

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Speaker 1: It's not something to do with the SEC. It's a

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Speaker 1: it's a mistake. It's an embarrassing mistake. It's not good.

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Speaker 1: But it's not an issue of being restating results. It

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Speaker 1: is a mistake. Of of things that would be in

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Speaker 1: the annual report. New members, new accountability, and that obviously

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Speaker 1: a market reaction, but it does fold into the top

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Speaker 1: line revenue, which is price and units. How do you

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Speaker 1: take non gap miscounting of new members and bring that

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Speaker 1: over to the revenue line. What questioning will you have

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Speaker 1: in the next few days. I mean, I think the

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Speaker 1: big thing for them is sort of the psychological impact.

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Speaker 1: This is a company that has a cloud over it.

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Speaker 1: There's suspicions. There's people on both sides of this issue,

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Speaker 1: but obviously high profile questions from Bill Ackman, who's made

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Speaker 1: a three year battle with them. So this is a

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Speaker 1: company that has suspicions around it. They've made a mistake.

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Speaker 1: That's That's what I think people are going to focus

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Speaker 1: on as far as how could this happen? This is

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Speaker 1: eas a big you know, it was down to thirty percent.

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Speaker 1: These weren't sort of rounding errors. These are big mistakes

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Speaker 1: that they made. But like you said, not a gap question,

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Speaker 1: what's the time period involved? Because if you have fewer

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Speaker 1: new members, it would imply for an investor that your

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Speaker 1: sales may be lower and you make less money. But

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Speaker 1: if these are old numbers, were we would would we

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Speaker 1: already have the sales figures for the period, right, So

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Speaker 1: it's fourth quarter numbers they And the other interesting thing

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Speaker 1: here is that they only started reporting these metrics in July.

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Speaker 1: These are new numbers that they have just started to

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Speaker 1: put out. So some analysts are saying, you know, maybe

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Speaker 1: we're gonna make excuse them. It's an honest mistake. That

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Speaker 1: database just isn't up to what it should be. But

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Speaker 1: so these are newer numbers, and it's dealing with the

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Speaker 1: fourth quarter, so it's hard to draw an implication yet

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Speaker 1: as to what it means for future sales, leaving aside

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Speaker 1: the accounting questions, but for future sales, that's right. I

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Speaker 1: had one analysts say that, you know, these numbers aren't

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Speaker 1: even in my model. If they had put the numbers

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Speaker 1: out correctly, it would not have changed my view of

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Speaker 1: the stock. That's how one analysts put it. But again

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Speaker 1: there's a psychological issue here because this is a mistake.

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Speaker 1: These are big gaps. I mean, I my amateur take

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Speaker 1: is first quarter is the first quarter of fifteen January

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Speaker 1: through marchers at a different calendar, that's right, So it's

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Speaker 1: January through March. Not much change but then there were

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Speaker 1: big changes through the summer. You're telling me the cell

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Speaker 1: side can ignore that, you know, that's it's a very

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Speaker 1: it's a fair question because he said, like I said,

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Speaker 1: these were not rounding errors. This is one number was

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Speaker 1: they said it was actually more like thirty. One number

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Speaker 1: was sixteen or seven? They said it was more like three.

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Speaker 1: So big, big questions about what's going on at this

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Speaker 1: company that they would be out on a conference call

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Speaker 1: with those kind of discrepance. Do we allow somebody with

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Speaker 1: a Bowden tie to come into the studio? I mean,

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Speaker 1: I don't know if that's part of our agreement here.

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Speaker 1: Did anybody sell this stuff up at Bowden when you

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Speaker 1: were there? That's right? Well, I am representing a boding

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Speaker 1: college proudly today as always with I'm glad you noticed

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Speaker 1: that. That That was But but but did anybody drink this

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Speaker 1: stuff or eat this stuff at Bowden when you were there? Mike?

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Speaker 1: Have you ever tried it? Uh? No, I have not

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Speaker 1: tried it. Um, there's some in the kitchen captain at home.

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Speaker 1: I'm going home today, he said, try herbal. I've never

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Speaker 1: tried it. All right, we'll get a full report for

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Speaker 1: the is you mentioned? Um, there there is this other

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Speaker 1: accounting issue going on, and it has been for some time.

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Speaker 1: For those who only dip into the news every once

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Speaker 1: in a while when somebody makes an outrageous claim one

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Speaker 1: way or the other, what's the status of that. So

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Speaker 1: the stock before today was up for the year, and

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Speaker 1: it surged like last week when they put out in

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Speaker 1: a filing that they were nearing a resolution with the FTC.

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Speaker 1: So interesting word resolution. The market took that as a

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Speaker 1: positive that maybe they're going to get out of this

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Speaker 1: without you know, major implications. But we've also heard from

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Speaker 1: people saying they said resolution, they didn't say one way

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Speaker 1: or another. It was purposely vague statement. So we really

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Speaker 1: don't know. There's some sense that they're nearing a quote

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Speaker 1: unquote resolution with the FTC. Whether that's good or bad,

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Speaker 1: we really don't have an indication. I want to be

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Speaker 1: clear before we let you go. Price Waterhouse is their

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Speaker 1: auditors are not involved in the headlines. We saw this

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Speaker 1: more that's correct. They're not restating anything. These are just

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Speaker 1: a mistake that they made bad numbers on a conference call.

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Speaker 1: But this is not an issue of gap or SEC

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Speaker 1: and they're not restating. Forcing me to try herbal Life tonight.

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Speaker 1: Thank you. I think, thank you, thanks so much, full

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Speaker 1: report tomorrow if I survive. What's it gonna do for

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Speaker 1: me herbal life? Does it let you lose weight? Or

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Speaker 1: is it gain weight? What's it? Do you know? Nutrition?

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Speaker 1: Health and wellnesses? Uh is the pitch. But I think

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Speaker 1: like you raise a good point, which is this issue

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Speaker 1: of customers. And you know, you say you haven't met

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Speaker 1: anyone who's tried it, and there's a lot of people

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Speaker 1: out there that say where are all these people that

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Speaker 1: have tried it? That's obviously the big question that Acman

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Speaker 1: is raised. Customers, thank you so much, Thank you on

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Speaker 1: herbal life and will follow us. Fifty it's solf here,

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Speaker 1: it's it's moved south. In the last ten minutes, fifty

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Speaker 1: three handled down to fifty two and five eights. I'm

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Speaker 1: quoting eights this morning. Michael mcgld school. Roger Altman was

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Speaker 1: in earlier talking about Sterling Hole. Max talked about a

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Speaker 1: name for the past and uh, if Mr Altman can

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Speaker 1: talk sterling home X, we can quote in a Bloomer

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Speaker 1: surveillance this morning in quarters eights or sixteens brought to

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Speaker 1: you by Interactive Brokers and same group. If you're looking

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Speaker 1: for global futures contracts with low trading costs, look no

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Speaker 1: further Interactive Brokers. As the Industry Leader learned more at

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Speaker 1: Interactive Brokers dot com slash sam group. That was very good.

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Speaker 1: He was very good on some of the new ones, gifts,

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Speaker 1: good impression of what's going on. As you say, it's

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Speaker 1: a it's a story stock for most people, it's just

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Speaker 1: you defended out based on the headlines. So Herb Greenberg

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Speaker 1: has been nant out on Twitter this morning on taking

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Speaker 1: this from the gap hysteria and the accounting hysteria over

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Speaker 1: to what we heard from Craig gm on, very very good.

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Speaker 1: I'm smarter on herbal life. Unlike the last three years,

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Speaker 1: I sort of ignored the entire topic. That ten you

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Speaker 1: yield one five percent West Texas South, thirty seven cents,

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Speaker 1: thirty four dollars, twenty cents of barrel brent two dollars

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Speaker 1: a way, thirty six dollars, forty nights cincer barrel gold

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Speaker 1: pulling back up three dollars up one dollar. Just sort

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Speaker 1: of a back and forth job. Stay tomorrow. Bill Gross

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Speaker 1: will join us and is always from Princeton. Alan Krueger

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Speaker 1: time to check in out with Michael Barr and get

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Speaker 1: the latest world in national headlines. Mike Tom, thank you

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Speaker 1: very much. Donald Trump is firing back at Mit Romney.

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Speaker 1: It is in response to the former Republican presidential nominee

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Speaker 1: planning to give a speech later today in Utah calling

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Speaker 1: Trump a phony, a fraud, and a boon to Democratic

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Speaker 1: candidate Hillary Clinton. Trump made the rounds on the morning

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Speaker 1: news shows on NBC. Trump says Mitt Romney is a stiff,

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Speaker 1: adding he got killed and decimated in the election. On ABC,

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Speaker 1: Mitt Romney was a failed candidate, should have beaten Barack

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Speaker 1: Obama easily. There will be only four podiums instead of

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Speaker 1: five at the night's Republican presidential debate in Detroit. Ben

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Speaker 1: Carson will be a no show, having ago that he

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Speaker 1: is on the verge of officially ending his campaign. Malaysia

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Speaker 1: will be sending a team of aviation officials and investigators

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Speaker 1: to Mozambique, the prewashed shore there over the weekend. There

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Speaker 1: is speculation it could be from a Malaysian Airlines Boeing

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Speaker 1: seven seventy seven had vanished two years ago. Astronaut Scott

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Speaker 1: Kelly got a hero's welcome overnight. Kelly returned to the

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Speaker 1: Johnson Space Center in Houston a day after landing, and I

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Speaker 1: I saw you use spacecraft in Kazakhstan. Kelly spent three

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Speaker 1: hundred forty days in orbit in the International Space Station.

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Speaker 1: Global News twenty four hours a day, powered by ours

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Speaker 1: twenty four hundred journalists more than one hundred fifty news

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Speaker 1: bureaus from around the world. I'm Michael Barr, Mike, Michael,

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Speaker 1: thanks so much, shut out to Brendan, emailing in today,

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Speaker 1: listening on Washington FM, Bloomberg FM in Washington. Thank you

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Speaker 1: so much for your support in our recent to day

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Speaker 1: visit from New York. Today Michael McKee and Tom Keed

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Speaker 1: and Bloomberg Surveillance. Bloomberg Avalance is brought to by Bank

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Speaker 1: the road to glob growth leads the power of global connections.

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Speaker 1: Bank of America North America member ft I C