Speaker 1: A moderation and a bringing together of people in terms
Speaker 1: of a common mission and and thoughtful disagreement. While we're
Speaker 1: talking about the thoughtful disagreement, if you could work your
Speaker 1: way through to get at the right answers, UM, then
Speaker 1: this is all manageable. UM. So that's so politics does matter.
Speaker 1: And answer to your question of how we deal with it,
Speaker 1: we measure what their actions are and based on their
Speaker 1: actual actions, then we make our responses. Ray, I want
Speaker 1: to thank you very much on behalf of Bloomberg television
Speaker 1: doers radio listeners worldwide. It's been such a pleasure here
Speaker 1: at the University of Texas. Ray Dalio. He is the chairman,
Speaker 1: the founder and co c i O of Bridgewater Association.
Speaker 1: Chessker with it, Ray Delio, an extended conversation. We do
Speaker 1: all that around the market opening. You're the bell in
Speaker 1: the background. There was a bell in the background as
Speaker 1: Ray Delio was speaking our opening bell brought you by
Speaker 1: s c I. Today's competitive marketplace requires asset managers to
Speaker 1: become more operationally adapt Imagine transforming your business. That's the
Speaker 1: I's global platform. Do that at SEI see dot com
Speaker 1: slash imagine se i C dot com slash imagine right
Speaker 1: on the screen. It's been a goofy day, markets all
Speaker 1: over the place waffling. Maybe tomorrow's jobs report negative twenty
Speaker 1: four is a first print on the Dow SMB down
Speaker 1: two points. We do have a print in the VIX
Speaker 1: a little bit higher after a good couple of days,
Speaker 1: seventeen point to five. I'm just gonna mention one stock
Speaker 1: because we've got so much to talk about, and that
Speaker 1: would be Herbal Life. We do have an opening fifty
Speaker 1: three downs three dollars thirty three dollars thirty eight sets
Speaker 1: on Herbal Life. We'll get to that, uh here in
Speaker 1: a moment. We look at equities, bonds, currencies, commodities. Let's
Speaker 1: look at the four X report right now, and that
Speaker 1: brief brought you by Interactive Brokers, winner of f X
Speaker 1: Weeks two thousand fifteen award for the best Retail for
Speaker 1: X training platform visit ib at, I, b k R,
Speaker 1: dot Com slash four x, and we think them as well.
Speaker 1: For support. We look at equity markets with SEI and
Speaker 1: the opening and Interactive Brokers assisting us with our FOREX brief.
Speaker 1: The Euro a bit stronger fractionally, I wouldn't elevated dollars
Speaker 1: through the day. Michael Purvis fascinating this morning on a
Speaker 1: weaker Asia currency call away from Japan, UH with an
Speaker 1: attendant dollar strength. We was that's one of the big
Speaker 1: mysteries going into this year. UH sterling near one on three.
Speaker 1: And we'll leave the foreign exchange at that um as well.
Speaker 1: Michael McKee and Tom Keen. And now we need to
Speaker 1: chat on herbal life with someone who's followed the soap
Speaker 1: opera and actually the serious accounting business behind this. Creigiomonis
Speaker 1: with Bloomberg News. Good morning, sir, good morning. You know
Speaker 1: I saw the headlines. I did a shot out on
Speaker 1: Twitter to Herb Greenberg, who works at a private capacity
Speaker 1: and helps the NBC out as well. Herb focused as
Speaker 1: I did, on the actual accounting ballet. So let's talk
Speaker 1: about that. These are not gap questions in these headlines
Speaker 1: this morning, right, That's right, nothing to be restated. It's
Speaker 1: not a number that analysts, some analysts even having their models.
Speaker 1: It's not something to do with the SEC. It's a
Speaker 1: it's a mistake. It's an embarrassing mistake. It's not good.
Speaker 1: But it's not an issue of being restating results. It
Speaker 1: is a mistake. Of of things that would be in
Speaker 1: the annual report. New members, new accountability, and that obviously
Speaker 1: a market reaction, but it does fold into the top
Speaker 1: line revenue, which is price and units. How do you
Speaker 1: take non gap miscounting of new members and bring that
Speaker 1: over to the revenue line. What questioning will you have
Speaker 1: in the next few days. I mean, I think the
Speaker 1: big thing for them is sort of the psychological impact.
Speaker 1: This is a company that has a cloud over it.
Speaker 1: There's suspicions. There's people on both sides of this issue,
Speaker 1: but obviously high profile questions from Bill Ackman, who's made
Speaker 1: a three year battle with them. So this is a
Speaker 1: company that has suspicions around it. They've made a mistake.
Speaker 1: That's That's what I think people are going to focus
Speaker 1: on as far as how could this happen? This is
Speaker 1: eas a big you know, it was down to thirty percent.
Speaker 1: These weren't sort of rounding errors. These are big mistakes
Speaker 1: that they made. But like you said, not a gap question,
Speaker 1: what's the time period involved? Because if you have fewer
Speaker 1: new members, it would imply for an investor that your
Speaker 1: sales may be lower and you make less money. But
Speaker 1: if these are old numbers, were we would would we
Speaker 1: already have the sales figures for the period, right, So
Speaker 1: it's fourth quarter numbers they And the other interesting thing
Speaker 1: here is that they only started reporting these metrics in July.
Speaker 1: These are new numbers that they have just started to
Speaker 1: put out. So some analysts are saying, you know, maybe
Speaker 1: we're gonna make excuse them. It's an honest mistake. That
Speaker 1: database just isn't up to what it should be. But
Speaker 1: so these are newer numbers, and it's dealing with the
Speaker 1: fourth quarter, so it's hard to draw an implication yet
Speaker 1: as to what it means for future sales, leaving aside
Speaker 1: the accounting questions, but for future sales, that's right. I
Speaker 1: had one analysts say that, you know, these numbers aren't
Speaker 1: even in my model. If they had put the numbers
Speaker 1: out correctly, it would not have changed my view of
Speaker 1: the stock. That's how one analysts put it. But again
Speaker 1: there's a psychological issue here because this is a mistake.
Speaker 1: These are big gaps. I mean, I my amateur take
Speaker 1: is first quarter is the first quarter of fifteen January
Speaker 1: through marchers at a different calendar, that's right, So it's
Speaker 1: January through March. Not much change but then there were
Speaker 1: big changes through the summer. You're telling me the cell
Speaker 1: side can ignore that, you know, that's it's a very
Speaker 1: it's a fair question because he said, like I said,
Speaker 1: these were not rounding errors. This is one number was
Speaker 1: they said it was actually more like thirty. One number
Speaker 1: was sixteen or seven? They said it was more like three.
Speaker 1: So big, big questions about what's going on at this
Speaker 1: company that they would be out on a conference call
Speaker 1: with those kind of discrepance. Do we allow somebody with
Speaker 1: a Bowden tie to come into the studio? I mean,
Speaker 1: I don't know if that's part of our agreement here.
Speaker 1: Did anybody sell this stuff up at Bowden when you
Speaker 1: were there? That's right? Well, I am representing a boding
Speaker 1: college proudly today as always with I'm glad you noticed
Speaker 1: that. That That was But but but did anybody drink this
Speaker 1: stuff or eat this stuff at Bowden when you were there? Mike?
Speaker 1: Have you ever tried it? Uh? No, I have not
Speaker 1: tried it. Um, there's some in the kitchen captain at home.
Speaker 1: I'm going home today, he said, try herbal. I've never
Speaker 1: tried it. All right, we'll get a full report for
Speaker 1: the is you mentioned? Um, there there is this other
Speaker 1: accounting issue going on, and it has been for some time.
Speaker 1: For those who only dip into the news every once
Speaker 1: in a while when somebody makes an outrageous claim one
Speaker 1: way or the other, what's the status of that. So
Speaker 1: the stock before today was up for the year, and
Speaker 1: it surged like last week when they put out in
Speaker 1: a filing that they were nearing a resolution with the FTC.
Speaker 1: So interesting word resolution. The market took that as a
Speaker 1: positive that maybe they're going to get out of this
Speaker 1: without you know, major implications. But we've also heard from
Speaker 1: people saying they said resolution, they didn't say one way
Speaker 1: or another. It was purposely vague statement. So we really
Speaker 1: don't know. There's some sense that they're nearing a quote
Speaker 1: unquote resolution with the FTC. Whether that's good or bad,
Speaker 1: we really don't have an indication. I want to be
Speaker 1: clear before we let you go. Price Waterhouse is their
Speaker 1: auditors are not involved in the headlines. We saw this
Speaker 1: more that's correct. They're not restating anything. These are just
Speaker 1: a mistake that they made bad numbers on a conference call.
Speaker 1: But this is not an issue of gap or SEC
Speaker 1: and they're not restating. Forcing me to try herbal Life tonight.
Speaker 1: Thank you. I think, thank you, thanks so much, full
Speaker 1: report tomorrow if I survive. What's it gonna do for
Speaker 1: me herbal life? Does it let you lose weight? Or
Speaker 1: is it gain weight? What's it? Do you know? Nutrition?
Speaker 1: Health and wellnesses? Uh is the pitch. But I think
Speaker 1: like you raise a good point, which is this issue
Speaker 1: of customers. And you know, you say you haven't met
Speaker 1: anyone who's tried it, and there's a lot of people
Speaker 1: out there that say where are all these people that
Speaker 1: have tried it? That's obviously the big question that Acman
Speaker 1: is raised. Customers, thank you so much, Thank you on
Speaker 1: herbal life and will follow us. Fifty it's solf here,
Speaker 1: it's it's moved south. In the last ten minutes, fifty
Speaker 1: three handled down to fifty two and five eights. I'm
Speaker 1: quoting eights this morning. Michael mcgld school. Roger Altman was
Speaker 1: in earlier talking about Sterling Hole. Max talked about a
Speaker 1: name for the past and uh, if Mr Altman can
Speaker 1: talk sterling home X, we can quote in a Bloomer
Speaker 1: surveillance this morning in quarters eights or sixteens brought to
Speaker 1: you by Interactive Brokers and same group. If you're looking
Speaker 1: for global futures contracts with low trading costs, look no
Speaker 1: further Interactive Brokers. As the Industry Leader learned more at
Speaker 1: Interactive Brokers dot com slash sam group. That was very good.
Speaker 1: He was very good on some of the new ones, gifts,
Speaker 1: good impression of what's going on. As you say, it's
Speaker 1: a it's a story stock for most people, it's just
Speaker 1: you defended out based on the headlines. So Herb Greenberg
Speaker 1: has been nant out on Twitter this morning on taking
Speaker 1: this from the gap hysteria and the accounting hysteria over
Speaker 1: to what we heard from Craig gm on, very very good.
Speaker 1: I'm smarter on herbal life. Unlike the last three years,
Speaker 1: I sort of ignored the entire topic. That ten you
Speaker 1: yield one five percent West Texas South, thirty seven cents,
Speaker 1: thirty four dollars, twenty cents of barrel brent two dollars
Speaker 1: a way, thirty six dollars, forty nights cincer barrel gold
Speaker 1: pulling back up three dollars up one dollar. Just sort
Speaker 1: of a back and forth job. Stay tomorrow. Bill Gross
Speaker 1: will join us and is always from Princeton. Alan Krueger
Speaker 1: time to check in out with Michael Barr and get
Speaker 1: the latest world in national headlines. Mike Tom, thank you
Speaker 1: very much. Donald Trump is firing back at Mit Romney.
Speaker 1: It is in response to the former Republican presidential nominee
Speaker 1: planning to give a speech later today in Utah calling
Speaker 1: Trump a phony, a fraud, and a boon to Democratic
Speaker 1: candidate Hillary Clinton. Trump made the rounds on the morning
Speaker 1: news shows on NBC. Trump says Mitt Romney is a stiff,
Speaker 1: adding he got killed and decimated in the election. On ABC,
Speaker 1: Mitt Romney was a failed candidate, should have beaten Barack
Speaker 1: Obama easily. There will be only four podiums instead of
Speaker 1: five at the night's Republican presidential debate in Detroit. Ben
Speaker 1: Carson will be a no show, having ago that he
Speaker 1: is on the verge of officially ending his campaign. Malaysia
Speaker 1: will be sending a team of aviation officials and investigators
Speaker 1: to Mozambique, the prewashed shore there over the weekend. There
Speaker 1: is speculation it could be from a Malaysian Airlines Boeing
Speaker 1: seven seventy seven had vanished two years ago. Astronaut Scott
Speaker 1: Kelly got a hero's welcome overnight. Kelly returned to the
Speaker 1: Johnson Space Center in Houston a day after landing, and I
Speaker 1: I saw you use spacecraft in Kazakhstan. Kelly spent three
Speaker 1: hundred forty days in orbit in the International Space Station.
Speaker 1: Global News twenty four hours a day, powered by ours
Speaker 1: twenty four hundred journalists more than one hundred fifty news
Speaker 1: bureaus from around the world. I'm Michael Barr, Mike, Michael,
Speaker 1: thanks so much, shut out to Brendan, emailing in today,
Speaker 1: listening on Washington FM, Bloomberg FM in Washington. Thank you
Speaker 1: so much for your support in our recent to day
Speaker 1: visit from New York. Today Michael McKee and Tom Keed
Speaker 1: and Bloomberg Surveillance. Bloomberg Avalance is brought to by Bank
Speaker 1: of America Marri lynches global cash management solutions, helping you
Speaker 1: manage to protect and invest your global cash, whether where
Speaker 1: the road to glob growth leads the power of global connections.
Speaker 1: Bank of America North America member ft I C